I just came across this article which was published a week ago by Bloomberg.   So, money market funds will become less safe for storing cash than they have been. One could see this as the US government wanting to attract billions into its own coffers by issuing 2 month bills that attract the money. Or maybe it's concern over the solvency of large money market funds if things go haywire during another crash. I wondered if you have any insights on this change.

Eoin Treacy's view

Thank you for this article which highlights the continued trend of financial repression where governments, and not just the USA’s, are creating markets for their paper. They have little choice considering the quantity of debt that has been issued over the last decade and the outsized debt to GDP ratios we are presented with. The simple fact is investors are going to help out with the problem like it or not. I covered this issue in relation to another article focusing on the changes to money market fund holdings on August 2nd. 

The safety of money market funds is less of an issue if they hold more government paper since the default rates of the portfolio would decrease but the returns will be considerably less than if they were holding corporate bonds. 

The trend of financial repression represents a compelling reason to hold precious metals. It helps to explain the continued resilience of the gold price during what is the first consolidation following its break of the medium-term downtrend.