Repost from 7-20-2021
“Is a modest burst of post-pandemic inflation necessarily a bad thing? With the US experiencing brisk inflation (5.4 per cent in the 12 months ending in June) there is growing talk of an inflation Armageddon if the Federal Reserve falls too far behind the curve. There are real risks.”
USAGOLD note: All inflations start out as a small thing that sometimes, but not always, becomes a big thing and in rare cases a very big thing. As Rogoff points out, though – and this is key to understanding why private investors might want to sock away some gold – further setbacks in the fight against the pandemic-related economic slowdown are a “bigger risk.” That, for better or worse, seems to be the prevailing wisdom in Washington.