The Bank of England swung into full financial crisis mode two weeks ago, pushing out an announcement that it was resuming its money-printing presses at “whatever size is necessary” – confirming that “QE To Infinity” was back!
The UK bank’s unusual new round of quantitative easing measures included pausing a program to sell gilts – part of an effort to rein in sky-high inflation – and reverting to buying long-term bonds at a staggering rate of almost $5.3 billion per day.
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The Bank of England’s statement caused the prices of 27 commodities, including Aluminium, Copper, Palladium, Platinum, Gold, Silver, Lumber, Crude Oil, and Natural Gas, to surge to multi-month highs, with many notching double-digit gains within days.
And, just when I thought things couldn’t get any more interesting, the Bank of England dropped a major hint this week, indicating that additional quantitative easing could be on the horizon.
The claim comes as the UK central bank had a secret, closed-door meeting on Tuesday, outlining new intentions to purchase more than £10 billion per day in gilts, with up to £5 billion per day dedicated to long-dated conventional gilts and up to £5 billion per day allocated to index-linked gilts.
The Bank of England’s actions reflect the first major emergency intervention by a G7 central bank to avert a full-blown global financial crisis in this monetary cycle — And it may not be the last!
The Federal Reserve has begun its most aggressive sequence of rate hikes since the 1980s, following criticism that it was slow to identify inflation. In doing so, however, it has drastically boosted the dollar, causing many economists to fear that the U.S. currency may be the next asset bubble to burst.
The current economic climate is extremely dangerous due to the poisonous combination of enormous government debt, speculative asset bubbles, and pervasive inflation.
Eventually, the Fed will have no choice but to emulate the Bank of England by reversing its money-printing machines and injecting enormous amounts of liquidity into an already inflationary atmosphere.
As traders, we are currently seeing “one of the largest wealth transfers in the history of the world.” If you actually desire to amass life-altering fortune, there is no better moment than the present!