Inflation Fears Rise On Biden’s $3.9 Trillion In Deficit Spending

Gold and silver markets sprung higher on Thursday as April and second-quarter trading kicked off. After suffering losses in the first quarter, precious metals may now be due for a spring rally.

The U.S. Dollar Index was up slightly this week. Regardless of how the dollar fares against other fiat currencies, investors can expect massive depreciation ahead in real terms. There is no end in sight to the inflationary cycle of spending, borrowing, and printing in Washington.

Image Source: Pexels

This week, President Joe Biden promoted a so-called infrastructure package that comes in at more than $2 trillion. That’s on top of $1.9 trillion in bailouts and giveaways finalized last month.

Much of the proposed “infrastructure” spending has nothing to do with paving roads, building bridges, or expanding ports. These sorts of transportation upgrades are slated to only get $115 billion. Meanwhile, Biden would spend $174 billion on electric vehicle subsidies and hundreds of billions more on various “green” and racial leveling programs.

The bulk of the proposed spending appears to be very much inspired by the World Economic Forum’s Build Back Better agenda – also known as the Great Reset.

Of course, the Federal Reserve will be expected to play its part. Even though the Biden administration and Democrats in Congress are talking about raising revenues through tax hikes on corporations and investors, they will keep spending regardless of tax receipts. They will issue more debt, and the Fed will print more currency to cover it.

Although the news out of Washington is pretty grim these days from the standpoint of sound money, precious metals investors do have a few allies in the halls of Congress.

On Tuesday, Representative Alex Mooney re-introduced legislation that would remove all federal income taxation from gold and silver coins and bullion.

Mooney’s Monetary Metals Tax Neutrality Act is backed by the Sound Money Defense League. It would clarify that the sale or exchange of precious metals bullion and coins are not to be included in capital gains, losses, or any other type of federal income calculation.

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William K. 2 weeks ago Member's comment

Why are so many expecting inflation?? Could it be that in the past few hundreds of years every burst of printing money has lead to inflation? Could it be that many folks believe that the federal bank is at best totally misguided and at worst a bunch of LIARS??? I've been lied to before and I still don't like it.

That new omnibus spending bill once again shows us why all legislative bills should be limited in topic and the size of the wording. Putting his entire agenda in one spending bill that includes a bit of worthwhile stuff and then 329 pages of assorted giveaways is a rotten sneaky trick, often used by those who wish to cram through their ultra-liberal agendas that would never be approved if standing alone.

Truly our new governance has FUBARRED the works. (military definition of FUBARRED intended here.)

Thus those who can move to gold or other precious metals are making wise moves. The one other possible shelter is real-estate, but that is subject to assorted random variables and not nearly as liquid.

Are we doomed? Possibly, most good human creations are not permanent.