Melman on Gold & Silver
June 2020 by Leonard Melman
When governments are hit by a barrage of such economic news, they usually react by attempting to stimulate economic activity by spending money, as some might say, “like drunken sailors”…
Anyone seeking evidence that the standard leftist/socialist dogma may not work well need look no further than two western hemisphere governments, Venezuela and Puerto Rico, as both are now being wracked by financial and social upheavals.
One area receiving huge attention is the promised ascension of free market concepts associated with Trump versus the government-dominated Keynesian ideas previously advocated by both President Obama and Hillary Clinton.
Once again last month the world seemed to be tottering uncertainly on the precipice of whether to continue with some manner of austerity in order to begin restoring government balance sheets to some semblance of fiscal conservatism or whether to openly return to the previous eras of wide-open stimulation via debt, deficits and unlimited money creation.
…money creation by central banks… could even accelerate further as governments desperately seek to stimulate some sort of powerful economic growth. Historically, rapid money creation rates have been positive for gold and silver.
While gold’s chart has recently confirmed its short-term negative trend, the intermediate trend remains neutral while gold’s long-term chart is beginning to show some positive indications.
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