Gold: We appear to be heading inevitably toward inflation in 2021

Seeking Alpha/Equity Management Academy

“The Fed has few options to resolve this dilemma. They must print money to keep the economy staggering along, even as they risk significant inflation in the future. They can’t raise interest rates now, or defaults on debt will ripple throughout the economy. No one knows what happens to the value of the dollar if we continue to create US dollars by the trillion. Stimulus may reach $13 trillion or even $15 trillion.”

USAGOLD note:  With that as a backdrop, EQA goes on to label gold’s recent plunge as an anomaly and explain that it is both trading gold as a “speculative instrument” while also “holding it as a hedge against the devaluation of the US dollar, which is happening before our eyes.” EQA ends with a stark warning: The Fed “may not be able to control how fast the dollar inflates, so we could jump from inflation to hyperinflation overnight.”

Repost from 1-12-2021

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