Hey There Income Hunter,

Gold may have finally left the triple-bottom at $1,675 behind.

Yes, we now have a series of higher highs and lower lows that signal a new uptrend has begun.

In fact, I’m calling for precious metals to be the best performing asset in 2022.

Here is what gold and silver bugs have to look forward to …

Today, I’ll provide the supporting arguments for why precious metals are setting up for their greatest rally ever.

The Fed’s Only Option 

• It is likely the Fed will have to abandon tightening and commit to unlimited amounts of printing to monetize the debt. This is something I have been preaching for months.

• Taken alone, that path would lead to extraordinarily high interest rates, because it is so inflationary. So the Fed will also have to buy as many bonds as it takes to keep 10-year rates below 2.5% or so. 

• This is what the central bank did in the 1940s and it means sacrificing the dollar’s value in order to reduce debt. Here is what that looks like …

Stealing a Page from FDR’s Presidency

I like to talk about the parallels between today’s Fed mess and the Fed during the Great Depression.

It is eerily similar how both periods’ debt burden reached unsustainable levels.

The reason why FDR was able to engineer a reduction in debt – and this is different from today – is because he owned all the gold.

The dollar was backed by gold at the time (which was genius in itself.) And gold is hands down the greatest store of value in the world. When a country backs it’s currency with gold, it becomes incredibly strong for trading with partners around the globe. 

Not only did FDR have a gold-backed currency, but he also bought up all the gold he could …

At one point the US held 70% of the world’s gold.

And this was where FDR made an incredible move …

He simply set a higher price for gold versus the dollar and instantly devalued the dollar, which meant he also devalued his debt burden held in dollars.

He then told the Fed to go out and buy every bond in existence until rates across all maturities was no higher than 2.5%

The bottom line is, holding interest way below fair value versus inflation destroys the value of a currency and the amount of debt held in that currency.

It also destroys the wealth of citizens. And when they realize it, the economy goes into something called an “inflationary depression.”

As a trader and investor, the only true way to protect yourself in that environment is to own precious metals. Because they are the universal real money and have held their intrinsic value for thousands of years. 

Now, the reason why gold broke out is because central banks are hoarding it. You see, developed nations’ central banks are  jockeying for position in the new global power structure …

And when push comes to shove, everyone would rather trade with a country that backs its currency with gold.

Bring It Home

The Fed will continue to kick the can down the road for as long as they can, but the market has a way of speeding things up.

In my Power Income Trader program, I have a portfolio of longs that perform best in this environment (plus shorts that perform the worst.)

This “paired trade” concept is paying dividends for members, and we’re kicking off a series of Fed Focus events next week

Join us today!

It is going to be a wild and profitable ride …

Live and Trade With Passion My Friend, 

Griff