Systemic Inflation & Euro Wasteland: Got Gold?
The comments below are an edited and abridged synopsis of an article by Stewart Thomson
What lies ahead for the US and the world for the rest of 2022 and 2023? Legendary economist Steve Hanke warns of a major recession in 2023 and suggests it would be happening even with no rate hikes.
Regarding rate hikes specifically, Thomson suggests investors think about a scenario where Fed Chair Jay Powell has watched the US government become the main driver of US inflation with its crazy levels of spending and debt, and Powell is forced to raise rates until the government finally begins to shrink.
The bottom line: There will be an ebb and flow to US rate hikes, but the trend of hiking is likely here to stay for decades, because that’s how long it will take the US government to wean itself from its addiction to debt, spending and global meddling.
If the US doesn’t bend on sanctions, European inflation could spiral to levels seen in nations like Venezuela and Turkey. In turn, that inflation will be imported to the US.
While he sees Americans being impoverished by what is becoming systemic inflation, Powell watches the US government’s insane war mongering and sanctions create a European nightmare, one where millions of people will freeze to death, millions more become sick, and the health care systems of Europe become completely overwhelmed.
Hardcore gold bugs have the luxury of being secure as the US fiat empire implodes and the madness of the 2021—2025 war cycle envelops the world if they follow the mining stock rules of the road.
