Failing global politics and inflation will be a nasty shock

Blain’s Morning Porridge/Bill Blain

Repost from 5-3-2021

photograph of ancient Roman columns“Political failure could well become a mounting crisis for markets in coming years – especially if weak governments come alongside the kind of short, sharp shock of inflation which many strategists and economists now expect. Inflation could fuel union demands for wage rises at a time when corporates remain weakened in wake of pandemic – fuelling the kind of industrial wage militancy we last saw in the 1970s.”

USAGOLD note: What political and economic authorities hope to ignite is one thing. The unintended consequences are another. Blain, as he so often does, raises issues here well before anyone else and often in a unique context. “More than a few market commentators,” he says, “have been drawing allusions between the current fracturing political situation in the West, and the last days of Rome. All the usual themes are there; from the threat of monetary weakness from inflation (which will no doubt fuel cryptocurrencies), rising inequality, a rising sense of everyone in it for themselves, and the masses being ignored.”

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