It’s Time to Stack Gold and Silver!

Situation Critical! It’s Time to Stack

If the Federal Reserve ever had a commonsense handle on US monetary policy – and we think it is evident it didn’t; what it has done to the value of the dollar since 1913 is nothing short of tragic – it certainly doesn’t have control of anything now.  

The Fed is quite literally out of control.

The evidence keeps piling up.  

The Consumer Price Index came in at 3 percent in September.  

That’s 50 percent higher than the Fed’s own target.  Inflation has been higher than the Fed’s own target for 55 months in a row.  More than four and a half years!

Stated plainly, it had lost control.

Would you get to be wrong, fail to hit your assignments at work for four and a half years?  How about an airline pilot?  Your doctor? The guy who does your taxes or fills your prescriptions at the pharmacy?  Can they miss the mark for years on end?

The Fed told you over and over during Biden-time that its high inflation was just a transient thing.  Turned out to be the highest inflation in 40 years.  The inflation rate actually hit double-digits in the Phoenix area.

But it is not just inflation.  

The Fed pretends to be in control of interest rates.  That’s the cornerstone of its existence.  On September 17, the Fed cut its federal funds rate by 25-basis-point (one-quarter of a percent).  

On October 29, the Fed cut rates another 25-basis-points.

What happened?

Interest rates went up, not down.  Wolf Richter of WolfStreet.com tells the story:

The 10-year Treasury yield closed on Friday at 4.11%, essentially where it had been for seven trading days, up by 12 basis points from October 28, the day before the Fed cut its policy rates, and up by 48 basis points since the first rate cut in this cycle in September 2024, when the 10-year yield was 3.63%.

The 30-year Treasury yield rose to 4.70%. It was 4.55% just before the October rate cut, and 3.94% before the rate cut in September 2024.

The Fed has now cut by 150 basis points, and the 30-year yield has risen over the same period by 76 basis points….

Since the Fed’s rate cut at the end of October, the entire yield curve from the 3-month Treasury yield to the 30-year Treasury yield has risen. And mortgage rates have risen too.

Out. Of. Control.

Situation critical!

We think it makes much more sense to own gold and silver, which have a superior record of monetary performance around the world and through the centuries, than to let the Federal Reserve manage the underlying value of your money.

Case closed.  Stack up that gold and silver.