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Foreign Affairs/Sebastian Mallaby/5-29-2020
“Today, the United States and other advanced countries are experiencing the second wave of an especially powerful twin shock. Taken individually, either the global financial crisis of 2008 or the global pandemic of 2020 would have been enough to change public finances, driving governments to create and borrow money freely. Combined, these two crises are set to transform the spending power of the state. A new era of assertive and expansive government beckons. Call it the age of magic money.”
USAGOLD note: The age of magic money means also an era of nearly unrestricted monetary largesse the effects of which remain to be determined. Common sense suggests that adding a debasement hedge to one’s investment portfolio might be a prudent course of action.