Fed’s ballooning $4 trillion balance sheet bodes well for gold in 2014

The Fed’s assets rose to a record $3.99 trillion on December 11, up from $2.82 trillion in September 2012, when it embarked on a third round of bond buying. It’s balance sheet has ballooned by more than $3 trillion or 300% since September 2008 when it was at just $0.91 trillion.

The deterioration in the balance sheet of the Fed and most central banks in the world bodes well for gold prices in 2014.

Gold in U.S. Dollars, 30 Days - (Bloomberg)

Legendary investor Warren Buffett has described the U.S. Federal Reserve Bank as “the greatest hedge fund in history.” Buffett is underestimating the risks involved in the radical debt monetisation programme which poses serious risks to the dollar, the U.S. economy and the global economy.

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About the Author
Mark O'Byrne

Mark O'Byrne is executive director of Ireland-based GoldCore.

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