The end of the easy-money era rips the mask off the insolvent zombie economy. The world economy is lurching toward an unprecedented confluence of economic, financial, and debt crises, following the explosion of deficits, borrowing and leverage in recent decades.
This year is the 50th anniversary of America’s decision to scrap the dollar’s link to gold. Until then, foreign governments could exchange American paper for federal government owned metal freely and without limit. Which increasingly they did, building a crisis that forced the US to abandon the dollar’s backing.
The price of gold has surged past $2,000 an ounce and hit a new all-time high. It’s being driven by demand from investors fearful that the avalanche of stimulus by governments and central banks to fight the Covid-19 pandemic, debasing paper currencies, may ignite inflation.
The pandemic hit us without warning and more seriously than any of us could have imagined. It has destroyed some of us financially, damaged most of us, and raised big questions for all of us about our futures.
Nearly a year ago I had a nasty surprise when my annual medical check alerted me to a blood sugar rating that warned I was heading towards diabetes, a particularly nasty affliction.
Britain exits from the European Union today. It leaves what is by far the world’s most important community of sovereign states, with an economy roughly the same size as America’s, to adjust to the loss of one of its key member-nations – one that is both a major economy and a nuclear-armed military power.
Investment markets are unusually confusing. On the one hand, there’s a lot to worry about. But on the other hand, there’s no panic. Investors generally seem willing to hang on, believing that the slowdown we’re experiencing won’t get anything worse than a mild recession…
In this issue: Safety & privacy, Modern warfare, Money printing, Rules for investment success, Vietnam, Socialism in America, Gold, Offshore wind.