Wednesday, April 22, 2020

Trump: We Are Going To Have a Renaissance, A Lot of People Will Be Working Building Roads and Bridges...

This is just stunning.

Aside from the crony distortions that FDR-style make work projects create, we are talking about even more trillions of dollars that President Trump wants to spend that will ultimately have to be monetized spending. That is the Federal Reserve Board will print money out of thin air to fund the Treasury securities that will be issued to finance the projects.

If a major infrastructure bill is passed of a trillion dollars or more, I am going to up my price inflation forecast for the other side of the lockdown. Price inflation will eventually hit 7% or more within 18 months.

Gold will trade at record highs.



  1. Why would we need roads and bridges if every fall we're going to be in lockdown?

  2. If all this money creation is just going to lead to 7% inflation, I guess I won't worry as much. Besides, although we get screwed, we still get the money firstish and sort of rob rest of world whose structure of production to significant degrees is still geared to sending us stuff I'm sorta guessing. I really hope you are right when you talk about "the other side" ... Cuz it sure looks like there might not be another "side" if we get a mad-max scenario that totally destroys civilization. Let's not kid ourselves, in about 100 years 2 massive world wars, the slightly smarter apes might be due for a Final Disaster. The fact that I see you post so many things that seem shocking to you scares me a bit. Anyway... Let's hope for the best.