Within the next 12 months we’re going to monetize the asset side of the U.S. balance sheet for the American people. We’re going to put the assets to work and I think it’s going to be very exciting. Well hello there my friends Chris Marcus here with you for our Katie Economics and a quick clip that if you have not seen this yet I think you’ll want to because here are some interesting and certainly fascinating comments from Treasury Secretary Scott Besant and we’ll play that here. Creating a lot of wealth uh Scott maybe you’d like to say something about it and I’d ask also Howard to say something about it.

Yes sir this is very exciting we’re going to stand this thing up. Within the next 12 months we’re going to monetize the asset side of the U.S. balance sheet for the American people. We’re going to put the assets to work and I think it’s going to be very exciting. We’re going to study best practices as done around the world. It’ll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people. So he’s going to monetize the asset side of the balance sheet.

Gee I wonder what assets he could be referring to there. Certainly Gold seems to fit the parameters of what he’s describing more closely than anything else. He says he’s going to put those assets to work for the American people. He also says he’s planning to stand this up in the next 12 months and then the last thing is that he mentioned studying best practices and especially now with Elon Musk in the last few days asking Ron Paul to do an investigation of the Federal Reserve. I wonder if they will come across this quote in their study of best practices because this is from former Federal Reserve chairman Paul Volcker and he mentioned it is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation not less.

The overriding objective is price stability. We did better with the 19th century gold standard and passive central banks, currency boards, or even with free banking. Truly unique power of a central bank after all is the power to create money and ultimately the power to create is the power to destroy. And just in case you’re thinking maybe Volcker is outdated a little bit past today’s day and age here was a paper published by the Philadelphia Federal Reserve last year and they were studying the effects of price stability under a gold standard to which they came to the conclusion while the gold standard exposes the home country to short-term fluctuations in money prices and output caused by external shocks.

It ensures long-term price stability as the quantity of money and prices only temporarily deviate from the steady state levels. Again I didn’t write this one, not me. Philadelphia Federal Reserve and you just heard the comments from the new Treasury Secretary. So I’ll let you decide for yourself what to make of that but certainly fascinating and I suppose if you’re in the gold and silver community and you’ve been through the first couple of weeks of the Trump administration at least in terms of excitement that has not disappointed plenty happening in gold and silver which we will get to this week but go out there have a great afternoon have fun watching the Super Bowl tonight and we will see you again tomorrow.

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