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Jan Nieuwenhuijs: Why yield curve control by the Fed will be bullish for gold
By Jan Nieuwenhuijs
Voima Gold, Helsinki, Finland
Saturday, June 13, 2020
On Wednesday, Fed Chair Jerome Powell stated he is considering “yield curve control.” Previously, in the 1940s, when the Federal Reserve controlled the yield curve, it created deeply negative real interest rates. If repeated today, this would cause the gold price to sky-rocket.
Due to the current economic crisis, the U.S. federal deficit is reaching "unprecedented" levels. Preliminary data suggests the federal deficit will be $4 trillion dollars this year, which is more than 15% of GDP. Although, as the crisis unravels, it's likely these numbers will be even worse by year end. Throughout history, only in the First and Second World War deficits of this magnitude have occurred.
... Dispatch continues below ...
Great Bear Drills 30.51 Grams/Tonne Gold
Over 12.40 meters at LP Fault in Ontario
VANCOUVER, British Columbia, Canada -- Great Bear Resources Ltd. (TSX-V: GBR; OTCQX: GTBAF) today reported results from its ongoing, fully funded $21 million exploration program at its 100-percent owned flagship Dixie Project in the Red Lake district of Ontario.
Chris Taylor, president and CEO, said: "The LP Fault continues to demonstrate excellent continuity of near-surface high-grade gold, and has just yielded the highest-grade, widest-drill interval to date. Deeper drilling toward the northwest margin of our planned grid program has also extended high-grade gold mineralization in this area.
"Having completed our upsized private placement, we have over $50 million in cash and sufficient capital to continue aggressive drilling into 2022. Updated exploration plans reflective of our ability to undertake an expanded fully-funded drill program will be provided in the near future." ...
... For the remainder of the announcement:
https://greatbearresources.ca/news/great-bear-drills-30.51-g-t-gold-over...
As GDP is declining and the federal deficit rising, the “public debt to GDP ratio” is escalating rapidly. According to usdebtclock.org, U.S. public debt to GDP is 130% at the time of writing. Just a few months ago this ratio printed 110%. In the chart below, you can see public debt to GDP rising at a pace comparable to when the Second World War broke out.
... For the remainder of the analysis:
https://www.voimagold.com/insight/why-yield-curve-control-by-the-fed-wil...
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with great GATA-label wine
Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.
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http://www.gata.org/files/GATA-4-wine-bottles.jpg
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http://www.gata.org/files/FayJWineryVarietals.jpg
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Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
https://www.amazon.com/Rigged-Exposing-Largest-Financial-History/dp/1651...
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
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