The death of fiscal austerity has major implications for markets
Repost from 2-21-2021
“I know that Paul Volcker did, but Paul Volcker was a man of the moment and he managed to fight and swat away inflation through two recessions that increased unemployment. I just don’t see any willingness to impose pain on the median voter at this point. And so I think that we will look through inflation longer than most investors probably think.” – Marko Papic, Clocktower Group
USAGOLD note: As we noted previously on this subject, what Paul Volcker was to disinflation-deflation, Jerome Powell could be to stagflation-runaway inflation. Papic offers historical context at the link above and stresses that there are significant differences between post-2008 and now.