RE: Inflation is here14 Jul 2021 23:19
As usual, just take the opposite of any narrative put out by the "Central Bankers", they lie for a living.
Fink of Blackrock and Mnuchin have both called out the Fed's very obvious BS today. They'll only do that once they've finished taking the right kind of positions for a sustained hyperinflationary "cycle" of course, as will the rest of the banks, many of which put out relatively poor profit numbers today.
If only the banks had managed to conjure up some "rules" to ensure yet-another bubble for themselves to counteract the bath they're taking on all that burning fiat cash. They have done exactly that of course in Basel III which kicked in for most a couple of weeks ago and will likely result in a booming Gold price - little by little at first then all at once as always.
Contrary to popular opinion, Gold bull markets have little to do with the strength of the Dollar, history shows us this but yes, when both the Dollar AND Gold move up (we've seen this a few times over recent months) then it still helps push the needle towards a likely bull market for Gold, at least in people's minds.
It does, of course, also mean that you can buy more Gold with your Dollar so think about who may be motivated to keep the Dollar strong (via USDJPY manipulation etc), for as long as they can, to increase their purchasing power of a real asset like Gold before they inevitably dump it once they've finished buying - I like DXY @ 70s for instance, eventually.
What really counts is real yields in the bond market and they've been heavily negative for (the few remaining) US bond buyers for quite some time now - yield is everything in a high inflation environment if you're a billion/trillionaire and it's all deeply negative right now.
The Fed will inevitably already be implementing YCC and may at some point come out and admit to that - YCC in and of itself is incredibly inflationary - they deployed it post WWII with the expected results and, in fact, if you want a direct analogy to where we are right now it's post-WWII USA - Number Goes Up (because it has to).
What I suggest people keep in mind is that these are just the initial wobbles in this area - the seismic moves WILL show themselves at some point and you want to be in the right kind of investments ahead of that. I've suggested a $2,500 target for Gold by this time next year but if it hasn't also hit $4,500 within, say, three years I'll eat my hat.
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