Gold and silver have worst day in decades.

Photo above - Estee Lauder heiress Jane Lauder, with a $2 billion net worth. Standing next to her is little-known future Fed Chairman Kevin Warsh.

Gold bugs have declared “Warsh” on precious metals! Presumptive Fed chairman Kevin Warsh will fix everything which was making people hoard gold and silver? Gold drops 11% yesterday. Silver drops 30% (see link below).

Okay I’d never heard the name Kevin Warsh before this week. Now he’s apparently on track to be the next Federal Reserve chairman. Turns out the guy has credentials out the wazoo: Stanford University. Harvard Law. MIT. Managing director at Morgan Stanley. Member of National Economic Council. His current day job is “distinguished visiting fellow” at Stanford University. Okay . . . I’m sold. Let’s remove Trump, and make Warsh our America's next president.

But why the immediate enthusiasm for the new Fed pick? I’m sure Professor Warsh has a plethora of Instagram posts bemoaning the national debt, and the fact that a Subway $5 footlong now costs $11.95. But current Fed Chairman Jerome “Jay” Powell has also come out in favor of balanced budgets and apple pie. So what stopped Powell from fixing everything?

Despite all the dissing and moaning, it turns out the Federal Reserve has a limited toolkit to tackle these things. Just one, in fact. A hammer. Raising interest rates if you think that too many people are buying too much stuff. If you choke off factory construction and throw people out of work, consumption goes down. People also have their cars repo’d and get evicted. More than half the nation lives paycheck to paycheck.

So, I’m encouraged about Warsh’s credentials. But skeptical that he has a secret plan which have gold bugs scattering for cover. And anyway, Jerome Powell hasn’t even been fired yet. He’s still under virtual house arrest for going over budget on the Fed renovation project. Pretty much the same as Trump is doing with the “worlds largest ballroom” annex being built where the White House Rose Garden used to be.

Come to think of it – going over budget on Fed Headquarters renos, White House renos, and every other fricking thing is the root of all our budget problems. Suppose NOBODY can fix this?

I’m just sayin' . . .


https://www.msn.com/en-us/money/markets/gold-and-silver-plunge-in-worst-day-since-1980/ar-AA1VlYQE?ocid=msedgntp&pc=HCTS&cvid=697e03686676485ebf8e81dd4921831f&ei=76