Now Comes the Great Money Pump for State and Local Governments

The Trump administration COVID-19 bailouts just don't stop.

Treasury Secretary Steve Mnuchin tweeted out on Monday:

State, local and tribal governments can now apply for the first half of coronavirus relief fund payments a week ahead of schedule so they can get the resources they need!

The amount of debt the Treasury is going to issue for all these bailouts will be in the trillions of dollars. And a large part of it will be financed by Fed monetization---that is the Fed creating money out of thin air to buy Treasury securities.

The price inflation this is going to create will be of the kind we haven't seen in decades---although it may not show immediately in government price indexes since some sectors such as the cruise industry will have to do heavy discounting ( and maybe airlines and hotels) in the face of the generally rising prices.

But it is not an accident that the price of gold is soaring.

  In the EPJ Daily Alert, I am forecasting that gold will spike to record highs, over $2,000 per ounce.

-RW