In 2016, when his campaign for president was gathering steam, Donald Trump raised more than a few eyebrows when he revealed to GQ magazine just what a big fan he is of the gold standard. “Bringing back the gold standard would be very hard to do – but boy, would it be wonderful,” Trump said at the time. “We’d have a standard on which to base our money.” Now the president is about to nominate two people to fill Federal Reserve vacancies who are themselves fans of gold-backed currency.
Is it actually possible the maverick president is setting the table for a return to the gold standard?
- Bloomberg is shedding light on the fact that two of pro-gold President Trump’s apparent selections to fill open vacancies on the Federal Reserve Board of Governors are cheerleaders for a return to the hard-money standard. Former Trump campaign advisor Stephen Moore and former Godfather’s Pizza CEO and noted pundit Herman Cain are gold fans. Cain declared in a Wall Street Journal editorial that “gold is kryptonite to big-spending politicians.” Few believe the U.S. is heading back to the gold standard anytime soon, but watching the Fed would be more interesting if it were to become populated with gold bugs.
- Gold may be seen as an alternative asset throughout the U.S., but no one in Italy seems to view it that way. As ZeroHedge reports, there’s a tug-of-war going on in the “Beautiful Country” between the central bank and ruling populists over the nation’s gold supply. A spate of bank failures in recent years has been blamed on the ineffectiveness of the Bank of Italy, prompting the legislative effort to seize the central bank’s gold and make it the property of the citizenry. “The gold belongs to the Italians, not to the bankers,” said politician Giorgia Meloni recently. “We are ready to battle everywhere in Italy and to bring Italians to the streets if necessary.”
- In a recent interview with USA Watchdog’s Greg Hunter, analyst and financial author John Rubino says not only will there not be any additional Fed rate hikes in the foreseeable future, but the central bank actually will begin slashing rates even though there is no recession in play right now. Rubino suggests that the Washington power structure is so afraid of the effects of the next financial crisis that “they are willing to experiment with monetary policy again in order to prevent the crash that could make them this generation’s Herbert Hoover.” Should that happen, says Rubino, inflation would take off and gold would be the place to be.
- Is socialism coming to the U.S.? A notion that would have been laughed off as recently as a few years ago is now being taken very seriously as young, aggressive and progressive politicians make inroads with a growing portion of the electorate that thinks it’s time for a sea change in the American political landscape. Although there are plenty of people who dismiss out of hand proposed policies such as the Green New Deal and the unlimited-cash-creating Modern Monetary Theory, there are many others ready to give such collectivist ideas a go. If you’re not one of them, it may be time to think about which asset is best suited to helping your portfolio survive the effects of a potential centrally planned economy. To learn more, read Augusta’s latest blog article here.
President Donald Trump is preparing to nominate two gold standard “true believers” to the Federal Reserve, and Italians are ready to fight it out in the streets over that country’s gold supply. For an asset routinely dismissed by the mainstream financial community, gold is certainly getting a great deal of attention and respect these days.
How much attention are you paying to gold – and silver – right now? If your portfolio doesn’t have any of either, the clear answer is “not enough.” Call Augusta Precious Metals at 855-242-4121 or visit Augustapreciousmetals.com.