Regime change for the global economy?

BloombergOpinion/John Authers/12-23-2021

photographs of Paul Volcker, Ronald Reagan, Jerome Powell and Joe Biden

“With inflation a serious practical problem for the first time in a generation, the assumptions that ‘there is no alternative’ to stocks, or that independent central banks can defend confidence in the currency, finally come into question.”

USAGOLD note: Returning to a theme he first raised in June, Authers asks if 2022 will be the year of market regime change.


From the July 2021 edition of News & Views, our monthly newsletter:

“As the new regime is being deployed, it has become increasingly clear that the Biden policy mix is an attempt to overturn the framework that has been in place since the early 1980s – what the Reagan-Volcker team were to disinflation the Biden-Powell team might be to inflation. Among those early insights from Authers, he offers the following from Alex Lennard of Ruffer LLP. “Volcker said he was going to tame inflation, unemployment be damned. Now it’s the other way around. I don’t think people have quite realized that you’ve had this huge change in the mandate of policymakers.” There is no mystery in all of this with respect to what it means for gold. If we have indeed returned to the 1970s, then gold will play a vital role in the well-balanced portfolio and will be the subject of more than a few financial headlines.”

 

Share
This entry was posted in Today's top gold news and opinion. Bookmark the permalink.