Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

The Fed - No reserve requirement anymore

One thing that is only just coming out, is that the Federal Reserve reduced reserve requirements to zero effective March 26, 2020.

Federal Reserve - Reserve Requirements

As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.

The following content explains the Board’s authority to impose reserve requirements and how reserve requirements were administered prior to the change in reserve requirement ratios to zero.

What does this mean for companies like HYCT?

With zero reserve requirements, any financial company or bank can now lend unlimited amounts of money, since there is basically no reserve requirements restricting them. If this does start to happen, all kinds of money will flood into the economy, causing gold prices to rise. What would really be happening is that the purchasing power of USD would be falling, but it would show up as gold prices rising. At the same time, the USD should fall against other currencies.

Louis J. Desy Jr.