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When you read this it is chilling. No wonder gold imo is going to soar to unimaginable prices. When uranium was just a few dollars a pound did anyone imagine uranium would soar to way over $100 a pound?
Dear Jim,
The litany of disasters continues. The Fed has only one alternative to improve its balance sheet - get money from the Federal Government. The government can either borrow from the world through debt issuance, or they can print money. Either alternative exercised is very bad for the US dollar and very good for gold. As always you have called it again and again.
Respectfully yours,
Monty
The above at http://www.jsmineset.com/
Has the Fed Mortgaged Its Own Future?
By JACK WILLOUGHBY
The Fed’s highly leveraged balance sheet will make it hard to fight inflation.
IF THE FEDERAL RESERVE BANK WERE A COMMERCIAL LENDER, it would be a candidate for receivership, based on its capital ratios. Bank examiners generally view any lender with a ratio below 2% to be dangerously undercapitalized. The Fed’s current capital ratio, or capital as a percentage of assets, is 1.9%.
This and more at http://www.jsmineset.com/
The full article is at http://online.barrons.com/article/SB122732246735450265.html?mod=rss_barrons_markets
