Monday 8 March 2021

Inflation To Infinity And Beyond.

 Baltic Dry Index. 1829 +50 Brent Crude 70.75

Spot Gold 1707 

Coronavirus Cases 02/04/20 World 1,000,000

Deaths 53,100

Coronavirus Cases 08/03/21 World 117,449,599 

Deaths 2,605,337

And God said, Let there be light: and there was light. 

Genesis 1.

And President Biden said let there be another 1.9 trillion of new dollars: and poof, just like that, the Senate Democrats created another 1.9 trillion new dollars to add to President Trump’s 1.4 trillion new dollars in 2020 and his 900 billion new dollars created in November 2020. 

When facts change, I change my opinion. I now believe we are on the cusp of a return to the 1970s age of inflation.

Though the coronavirus pandemic has distorted most statistics about 2020, as best as I can see, with the latest 1.9 trillion, the USA alone has created 4.2 trillion new dollars, albeit the latest 1.9 trillion aren’t yet issued, to tackle an economy problem that was likely between 1 and 2 trillion. 

Add in many billions more in unpaid private and commercial rents, a mortgage moratorium, a global warming Great Texas Freeze hit to the USA food chain, a new USA Great Western 22 year cyclical drought, and an oil price already back trading in the 70s, and while we might not actually get “inflation to infinity and beyond,” I think we’re going to get close.

Spot gold trading in the 1700s is the bargain of the 2020s. Rather like when Chancellor Brown sold off 395 tons of the UK’s gold in 1999 to 2002 at an average price of a mere $275 per troy ounce. In gold “the Brown bottom.”

Still, silver in the mid $20s might be, for now, the more attractive buy.

Shares falter as tech skids, yields and oil ring inflation alarm

March 8, 2021

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