The U.S. Federal Reserve has injected funds into the System for two days in a row. Very unusual and not seen unless there is potential for a liquidity crunch. So WHY?
Odds are it is from the strong reserve drop in Hong Kong and issues within China, at two banks.
This likely will result in a strong US dollar and a strong Gold and Silver market.
This too is not usual activity. Usual activity, is for the US$ to move in one direction and the Precious Metals to move in the opposite direction.
Expect a strong US dollar, a strong precious metals market, and Yes, if the “rubber band”, does not break…. A strong US Stock market. If the rubber band does not break the excess money will go somewhere. Odds are stocks, real estate or precious metal or all of the above. The real question is; “will the rubber band break”? While we wait to see, the only logical choice by people who know what is happening, is to buy Precious Metals. Loss of purchasing power for the US Dollar long term if we skate through this.
See the CNBC interview with Kyle Bass for additional explanation:
