By Graham Summers – Re-Blogged From Gains Pains & Capital
The Central Banks are going to go absolutely nuclear within the next 18 months.
In the last few weeks we’ve seen the Bank of Japan, the Bank of England, the European Central and the US Federal Reserve all push for fiscal stimulus instead of monetary stimulus.
What this means is that Central Banks are collectively saying, “We have reached the end of what QE and rate cuts can do, it’s now the Government’s responsibility to juice the system.”
Everyone believes this to signal that the Central Banks are done with monetary policy. They are… but only until the next major problem hits.
The ONLY reason that Central Banks are pulling back now is because the system has calmed down. I GUARANTEE you that as soon as the US is in a confirmed recession, or some other negative issue hits, we will see NUCLEAR rounds of QE announced.
Consider the following, since 2008, Central Banks have announced over 600 interest rate cuts and over $10 TRILLION in QE.
During that time, there has not been a SINGLE month in which there was not at least ONE Central Bank engaged in QE. NOT ONE SINGLE MONTH.
And this was during a “recovery.”
Indeed, consider that as I write this, the ECB and BoJ are engaged in a RECORD QE program of $180 BILLION per month.
And we are not even in another recession yet!
The moment another recession hits we are going to see MASSIVE QE programs announced. How do I know this?
GOLD HAS BROKEN OUT OF ITS MULTI-YEAR DOWNTREND PRICED IN EVERY MAJOR CURRENCY.
Below is Gold’s chart prices in $USD, the Japanese Yen, and the Euro. Gold has BROKEN OUT big time in $USD and Euros. It’s about to do the same in Yen.
Gold has figured it out. NUCLEAR levels of QE are coming. And they will be coming from Every Major Central Bank.
Over 99% of investors have missed this. They continue to focus on stocks. They’re missing a once in 30 years’ event that has begun in the metals markets.
HUGE money will be made from this trend going forward.