Monetary vs fiscal dissonance and the return of QE

Zero Hedge/Crescat Capital/7-23-2023

“Following the COVID era, we have entered a period of fiscal dominance among major developed economies. Hence, the escalating debt burden is already near historical levels and compounding at an alarming pace. To sustain the current government spending deluge, we believe it is inevitable that the Fed and other monetary authorities reassume their fundamental role as the primary financiers of government debt.”

USAGOLD note: Crescat predicts “capital will divert away from US Treasuries and flow into gold.”

Chart courtesy of VisualCapitalist.com