Golden Vaccines And Dow To Gold Ratio

Things appeared normal, and then everything changed…

U.S. COVID-19 official cases on March 7: 338.

U.S. COVID-19 official cases on April 28: over 1,000,000, if you believe the Johns Hopkins numbers. Exponential growth in sickness, debt, and expenditures are “killers.”

The economic, emotional, and physical scars from the virus will torture us for a long time. Disneyland and Disneyworld are closed indefinitely.

Meanwhile, back at the Eccles Building in D.C., politicians at the Fed accelerated digital “printing” of dollars to WARP (Wacky, Arrogant, Ridiculous, Preposterous) speed. QE4ever pushed The Fed balance sheet beyond $6 trillion, up $2 trillion in a few months.

THE NEWER NORMAL:

  • In 1941, the United States entered WWII. We descended into a global war, and life for millions of people changed.
  • In 1964, President Johnson escalated the U.S. into the Vietnam War via the “Gulf of Tonkin Incident.” Our world was forever changed.
  • In 1971 President Nixon torpedoed the US economy by separating gold from the dollar, allowing the dollar and other fiat currencies to collapse, and inflation to skyrocket. Debt, government expenditures and financialization expanded exponentially.
  • In 2000, the Internet Bubble burst and destroyed savings, retirement accounts and dreams. Many did not recover.
  • After 9-11, the world was more dangerous, and governments became increasingly intrusive.
  • After the virus catastrophe of early 2020, the world became… The Newer Normal.

The Newer Normal in our post virus experience includes isolation, recession, depression, unemployment, business failures, personal bankruptcies, and never-ending Fed and government bailouts. The world changed in early 2020, as it did after 1941, 1964, 1971, and 2001.

HAMMERS AND NAILS:

When your only tool is a hammer, everything looks like a nail.

The Fed’s tools are interest rate policy and monetization of bonds—QE4ever. The economy will be hammered with low rates (already happened) and Fed purchases of Treasury debt, mortgage-backed securities and other debt.

1 2 3 4
View single page >> |

Disclosure: None. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.