Investors must realise the pendulum of history is swinging to Bidenomics

Financial Times/Gillian Tett/6-29-2023

“Ronald Reagan embraced a policy swing towards free-market, free-trade policies. ‘Reaganomics’, as it came to be known, was defined in opposition to the previous postwar consensus that promoted paternalistic government guidance for markets and commerce. Now another Hegelian ‘antithesis’ is taking shape.”

USAGOLD note: We spend a great of time in the financial business talking about Fed policy while overlooking the impact of fiscal recklessness. “Investors,” says Tett, “ignore it at their own peril.” If the pendulum is indeed swinging to even looser fiscal policies, investors would be well-served considering a greater loss of purchasing power and the wisdom of a long-term inflation hedge.