Monthly Archives: August 2021
The looming stagflationary debt crisis
Project Syndicate/Noriel Roubini
Repost from 7-9-2021
“In April, I warned that today’s extremely loose monetary and fiscal policies, when combined with a number of negative supply shocks, could result in 1970s-style stagflation (high inflation alongside a recession). In fact, the risk today is even bigger than it was then…At some point, this boom will culminate in a Minsky moment (a sudden loss of confidence), and tighter monetary policies will trigger a bust and crash.”
USAGOLD note: Dr. Doom, as he is known on Wall Street, sees symptoms of a breakdown already in motion wherever he looks. He goes so far in this analysis to say that in the end we will get a melding of the 2008 debt crisis and the 1970s stagflation – pretty much a banana republic-style breakdown.
Key inflation indicator up 3.5% year over year in June for fastest gain since 1991
Repost from 8-2-2021
“An inflation indicator that the Federal Reserve uses as its key guide rose 3.5% in June, a sharp acceleration that was nonetheless right around Wall Street expectations, the Commerce Department reported Friday.”
USAGOLD note: The PCE Index including food and energy was up 3.9%. With the typical one-year certificate of deposit drawing 0.6% (at best), the dive into negative real rates of return is accelerating quickly.
Sources: St. Louis Federal Reserve, U.S. Bureau of Economic Analysis
China’s net gold imports via Hong Kong rebound in June
Repost from 7-28-2021
USAGOLD note: Reuters reports a hefty 42% increase in China gold imports through Hong Kong in June. MKS’ Bernard Sin reports “good buying interest” from bargain hunters taking advantage of lower prices. The East buys gold on weakness. The West buys it on strength.