Some of the titans of Wall Street, the great billionaire investors who have made a fortune in America’s financial markets, are very worried about how much the US economy has suffered from coronavirus.
American billionaires are usually distinguished by patriotism and a high level of optimism, because this is a kind of commitment to their social position, but, as we already wrote, they are now in a rather depressed state and strongly doubt the bright economic future of their country, at least in the near future .
But now the banker has joined the chorus of sad, and in some places panicking billionaire financiers, who vyingly advise their clients to take a closer look at risks not so much economic as monetary. For some reason, despite the seemingly successful fight against the economic crisis by the Federal Reserve and its dollar printing press, such reputable American banks as JPMorgan and Goldman Sachs would like to recommend their customers to invest in gold rather than dollars.
And the point here is not that the yellow metal suddenly became somehow very attractive (its physical characteristics and universally recognized value as a “stable currency” are a timeless constant), but against the background of unprecedented measures to stimulate the global economy under the pretext of coronavirus, as well as in the conditions of severe geopolitical turbulence, in which the whole world is to live in the coming years, gold seems less vulnerable to American bankers than green bills with portraits of American presidents.
The latest example of such an attitude towards all world currencies is contained in an analytical study of JPMorgan Bank, reported by Bloomberg Business Information Agency:
“According to JPMorgan Chase & Co., the unprecedented monetary and fiscal measures taken around the world can lead to weaker long-term growth and depreciation of the currency, supporting the price of gold.”
Bank analysts believe that the dollar in the event of a massive devaluation of world currencies will be the last to suffer, and this is logical, but they nevertheless point out to customers gold and not the dollar as the main asset, whose value in this unpleasant scenario will be maintained at a high level . And the unprecedented fiscal and credit measures that the bank speaks about are precisely the very efforts to save the economies that materialize in the record budget deficits of Western countries and the galloping level of government debt. In a striking way, mainstream Western economists are confident that these measures will not have any serious negative consequences. However, bankers show a clear disagreement with this assessment.
By the way, another influential American bank also woke up with a sudden sympathy for investing in yellow metal – back in late March, when gold was about ten percent cheaper than now.
It is worth noting that bankers see not only inflationary, but also geopolitical risks associated with the dollar and the vulnerabilities of the American financial system. The same JPMorgan indicates that now competitors and opponents of the United States in the international arena have technological opportunities that threaten American hegemony in the financial sector.
Bloomberg quotes an assessment of dollar and sanction risks: “According to JPMorgan Chase & Co., as the idea of central bank digital currencies begins to gain momentum, the United States should also pay attention to this situation – or they risk losing the main aspect of their geopolitical power.