Is Gold The Fed’s Plan B? | https://www.themorganreport.com
In a recent interview on Liberty and Finance, renowned precious metals analyst David Morgan explored the intriguing possibility that gold could serve as a “Plan B” for the Federal Reserve. This unexpected scenario emerged from a discussion on the rise of Central Bank Digital Currencies (CBDCs) and their potential impact on the global financial system.
“I think that you know in in quieter moments maybe even you know behind closed doors that even the FED there’s probably been some whispers about well what if and that what if being if we go to the new system how important would gold be could it be what would it do could it solve the problem would it be better recognized and adopted,” Morgan stated during the interview.
This statement suggests that even within the Federal Reserve, there might be a growing recognition of gold’s enduring value as a hedge against potential instability arising from the implementation of CBDCs. While the Fed has been actively exploring CBDCs, the potential risks and uncertainties associated with this technology remain significant.
Morgan further emphasized this point, stating, “I think that if the CBDC doesn’t float or get the adoption that’s required for the central Bankers to be happy that they have put us into the new system that they have this Ace in the whole meaning gold that they can use as a carrot to push the system forward.”
This implies that gold could potentially play a crucial role in stabilizing the financial system if the transition to CBDCs encounters unforeseen challenges. By anchoring the new digital currency system to gold, the Fed could potentially mitigate risks and enhance public trust.
However, Morgan also cautioned that the current market environment is characterized by uncertainty. “I think the market just going kind of wander back and forth until there’s some clarity to what’s going to happen on the fiscal responsibility,” he explained. “What kind of real cuts are going to be in the federal budget? What kind of difference makes uh is it mostly talk and no action is there going to be a lot of action.”
This uncertainty, coupled with the ongoing geopolitical tensions, is likely to keep the precious metals market volatile in the near term.
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