Adam Hamilton
Thu, 04/01/2021 – 12:36
AbraPlata Reso…
Thu, 04/01/2021 – 10:37
Project Syndicate/James K. Galbraith/3-31-2021
“The scale of US President Joe Biden’s American Rescue Plan (ARP) – $1 trillion in spending for this year, another $900 billion after that, plus a $3 trillion infrastructure and energy program that has been promised – has spooked many macroeconomists. Are their fears justified?The bank and bond-market economists, having cried wolf before, can be disregarded. A year ago, many of them warned that the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act would incite hyperinflation by massively increasing the money supply. It didn’t happen.”
USAGOLD note: Galbraith says concerns about inflation are overblown and takes Lawrence Summers to task for his criticism of big spend and print programs – an argument among economic liberals. If we do not need to worry about inflation, we should probably consider the dangers of disinflation, possible deflation and major systemic risks, a reminder of which we just received from the Archegos debacle, i.e., the black swan event. As for hyperinflation, we would simply remind that no one in Germany in the upper echelons of government, academia, finance and industry worried about hyperinflation during the 1920s until it struck suddenly and with full force – one of the more devastating black swans in Western economic history.
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Seeking Alpha/Tomasz Zaton/3-30-2021
“Silver is poised to shine in the coming years due to very strong fundamental factors. The most important among them is the ongoing Green (eco-friendly) revolution. These initiatives require huge quantities of silver, which contrasted with the declining mine production, means that silver will be enjoying favorable demand/supply dynamics for many years. … Silver has been gaining popularity among younger investors. In late January, Reddit’s wallstreetbets users targeted silver. The metal saw frenzied activity. Hashtag #silversqueeze hit the front pages of many market publications, and in three brief days, silver prices rallied roughly 25%. Implied volatilities doubled within a few days for the third time during the last 12 months showing that potential for a huge move is there.”
USAGOLD note: The silver price might be down, but demand is not. We are having one of our best 12-month stretches ever at USAGOLD for silver bullion coin sales.
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