Hello Tim,

Hope you are doing well! Gold is up 4% in under a month, supported by weakness in the US dollar.

In todays blog, we take a look at the banking system. As we all know, it is difficult to comprehend the extreme magnitude of monetary and fiscal policy over the last three years. It took over 50 years to grasp the Feds role in the Great Depression (a subject still widely debated), and we anticipate a similar timeline for understanding todays policies.

Some ripples have already turned into waves, but overall the environment appears surprisingly calm. Perhaps the Fed really has figured out how to fine-tune the system. However, it is much more likely that the impact of such unprecedented measures have yet to work themselves into the economy through unemployment, bank balance sheets, and inflation.

To solve yesterdays crisis, regulators have sowed the seeds of tomorrows crisis.

Continue reading...