Today it was announced that U.S. price inflation hit a new 40-year high in February 2022 of 7.871%.
The Real Federal Funds Rate for February 2022 reached a new all-time low of -7.79%.
The U.S. has now experienced 12 straight months of a Real Federal Funds Rate of less than -2.5%, which is the most in history! On Wednesday, the Federal Reserve will finally begin to hike interest rates, but unless the Fed is extremely aggressive with it rate hikes, the Real Federal Funds Rate will remain at less than -2.5% for at least another 12 months to come!
To put this into perspective, during the 53-year period prior to March 2021, the U.S. only had a total of 33 months with a Real Federal Funds Rate of less than -2.5%.
During all 33 of those months, gold's average price on an M2 Money Supply Per Capita Adjusted basis was higher than gold's average price during each of the past twelve months!
Prior to the last twelve months, when the Real Federal Funds Rate is less than -2.5%, gold averages an M2 Money Supply Per Capita Adjusted price of $3,312.11 per oz!