How the Fed Killed the Dollar and Set Gold Climbing
Aug 12th, 2008 | By Adrian Ash | Category: Featured, Financial NewsSince the days of Alan Greenspan, the Fed has been so petrified of a slowdown it has practically killed the value and stability of the dollar, says Adrian Ash in Whiskey and Gunpowder.
But by keeping interest rates below the rate of inflation for three straight years starting in 2002, the Fed created a bubble in the housing market. That bubble has now popped, leaving in its wake a severe liquidity crisis.
Now big banks won’t lend without the backing of government bonds, and the Fed continues to inflate money supply. All good news for gold, says Adrian…