Inflation, covid, central banks and politics – about half the things to really worry about

Blain’s Morning Porridge/Bill Blain

Repost from 8-25-2021

conceptual drawing of a wrecking ball gravitational potential energy stay out of the way“The central banks are all plugging this ‘transitory’ inflation story – but I don’t think they particularly believe it. Producer and Consumer prices are all expected to edge higher. What are they trying to hide….? Inflation is also a long-term consequence. It has been very much present since 2010. It’s been hidden in financial assets – where the bulk of monetary creation has been hiding – till now. Now it is spreading into the real world.”

USAGOLD note: I like Blain’s use of the term “consequence” in the context of inflation. Cause and effect …… The serious steward of the well-balanced portfolio generally understands the true nature of cause and effect, particularly as it relates to the economy and financial markets, and does not always accept the standard, boiler-plate interpretation. That is why reading people like the sometimes irreverent Mr. Blain is important. He covers considerable territory in the here and now at the link above.

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