Is The Fed Buying Gold?
The CBO’s forecast (below) is likely off in my view. Revenue projections are likely too bullish while Outlay and Total Deficit projections are likely too conservative given that Washington is incapable of fiscal discipline. However, let’s pretend that the CBO’s projections are realistic. At the current pace the interest expense on the Treasury Debt will be the Federal Government’s largest expense item - which is why there is no way in hell the Fed will keep its Fed Funds rate at 5% over the long-term. It would be mathematically impossible to have a country and a functioning currency with a 5% rate on a Treasury Debt balloon that will approach $60 Trillion by 2035.
Gold in the meantime continues to rise to new all-time highs. Perhaps the Fed and other Central Banks know that the West’s fiscal deficits are unsustainable and they are hedging with significant physical gold purchases. The Fed isn’t buying bitcoin ETFs, I can promise you. The Fed is likely buying gold and you won’t see it reflected on the Fed’s H41 weekly release because there is little that the Fed is transparent about. I would love to audit the Fed with the power to prosecute.
