An important anniversary is approaching this week. Although it won’t be widely observed or likely even mentioned, it’s the anniversary of the event that led to current economic and investing conditions.
The basic laws of economics and finance have not changed. At some future point, this will become evident with economic conditions emerging that are unpleasant at best. We are already beginning to see evidence of changing economic conditions.
Globally, both in the public sector and the private sector debt levels are literally at nosebleed levels.
Fed leadership and some politicians have insisted that inflation is transitory or temporary and that once the economy fully reopens, things will return to a more ‘normal’ state as far as inflation is concerned.
While doing my research this past week, I found an article published on “Bloomberg” that offered some great perspective on the amount of currency that has been created literally out of thin air since early in calendar year 2020.
The base cause of artificially inflated markets is the devaluation of the US Dollar. Dollar devaluation, stated another equally accurate way, is price and asset inflation.
As I have suggested previously, the economic climate and the policy response to COVID (massive money creation) will change the perspective that many Americans have about retirement.
The sell-off today in the gold and silver market was unadulterated, blatant price manipulation confined to just the CME paper gold trading arena using Comex paper gold contracts.
The leading economic story remains inflation. Whenever money is created literally out of thin air in enough quantity, inflation is the result.
Rather than owning up to the fact that too much fiat currency has been created, the Fed is doing what the Fed has done historically when the economic data gets ugly. The Fed’s playbook is to either change the way the data is reported or just quit reporting the data altogether.