Liberty Coin Service today issued a public alert about the financial risks of the Federal Reserve Bank’s inflation of its balance sheet from March 8 to March 15 by $297 billion (3.56%).  As recently as February 1, 2023, the Fed announced that its monetary policy was to reduce its balance sheet by $95 billion per month through reductions in its holdings of Treasury securities and mortgage-backed securities.

Said Tom Coulson, Liberty Coin Service owner and general manager, “Starting last summer, the Federal Reserve has been reducing its assets on a monthly basis as part of its monetary policy to combat rising consumer prices.  This sudden reversal to ramp up its inflation of its balance sheet (see https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm) by a significant amount signals a likelihood that consumer price increases will soon be much higher than they have been over the past two years.  This change in US government and Federal Reserve policy has been matched by abandonment of another policy since last summer seeking to hold down consumer price increases by gradually reducing the money supply each month, where the M2 money supply in January 2023 once again started to grow (see https://fred.stlouisfed.org/series/m2sl).  Between these two policy changes, it is clear that the government no longer considers restraining consumer price increases as a major priority.”

Tom continued, “Such quick actions by the federal government and the Fed indicate that the US and global banking system is much more unstable than were claimed last week by President Biden and Treasury Secretary Yellen.  In the past week, worried people have been flocking to Liberty Coin Service and other dealers across the country to protect their finances by acquiring bullion-priced physical gold and silver coins and ingots.”