Money & Markets
Seldom, if ever, has this writer seen anything comparable to the level of hostility, disrespect and outright hatred now being demonstrated across America. If anyone thinks this is an erroneous conclusion, please consider the following ongoing events…
First, in order to compensate for the diminishment of purchasing power that usually accompanies rising inflation, investors normally have demanded higher interest rates on their investment assets. This was particularly true in the 1977-81 era when inflation soared to almost 20% and interest rates rose to roughly the same level.
All in all, these spending proposals, combined with those already approved, could bring total spending for the current budget year to around $8 trillion—by far the highest level ever recorded in America’s history.
How can it make sense to pass legislation to increase the spending power of the citizenry in order to stimulate economic activity and, at the same time, enact a series of new taxes that will diminish spending power?
Well, we are now almost two months into the new Biden Administration (as of our mid-March press deadline) and there most certainly have been some changes in direction from the preceding Trump years.
Another potential problem is the body of regulations imposed by the Paris Climate Accord that President Trump had negated but which President Biden has immediately rejoined.
…this being our January 2021 edition, we offer our forecasts for gold and silver during the coming year. Hint: I hope I am not being overly-optimistic.