No Matter How You Turn It, The Global System is Already Doomed: Got Gold?
By Matthew Piepenburg
February 8, 2023
Meanwhile, however, you have the math-challenged but psychologically tragic Jay Powell wanting to save his legacy as a Paul Volcker rather than as an Arthur Burns.
Like a child wanting to be John Wayne rather than Daffy Duck, Powell and his rate-hiked strong USD refuses to see the $31T debt pile in front of him which makes it impossible to be a reborn Volcker, who in 1980 faced a much smaller debt pile of $900B.
In short, Powell’s America of 2023, unlike Volcker’s America of 1980, can’t stomach rising rates or a strong USD.
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Yellen or Powell, QT or QE, strong Dollar or weak Dollar, the global financial system is nevertheless doomed.
We either tighten the bond and hence stock markets into a free fall and economic disaster, or we loosen and ease liquidity into an inflationary nightmare.
As I’ve said so many times: Pick your poison—depression or hyperinflation.
Or perhaps both…namely stagflation.
Either way, of course, Powell, and the American economy, is now doomed. And he has only Greenspan, Bernanke, Yellen, himself and years of mouse-click fantasy to blame.
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Gold’s future strength and rise is thus easy to foresee, as gold doesn’t rise, currencies just fall.
It’s really that simple.
Got gold?
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