This Has Never Before Happened in History
Posted February 10, 2021
The inflationary storm clouds continue to form on the horizon.
Yesterday I noted that the U.S. is printing money at an extraordinary pace.
The Fed will print $1.4 trillion in the next 12 months. This comes on the heels of the $3 TRILLION it has already printed in the last year.
The Fed is not alone here.
The Biden administration is pushing the “pedal to the metal” in terms of stimulus. It is about to pass a $1.9 trillion stimulus plan. Bloomberg notes that this will be the second largest injection of federal cash in U.S. history.
The only larger cash injection was the first COVID-19 stimulus plan (the CARES act) which was launched at the beginning of the pandemic.
We’re now on the tail end of the pandemic and we’re about to print another $1.9 trillion in stimulus. Bloomberg notes that the Biden administration wants to spend $2 trillion on climate change and $1.5 trillion on manufacturing and childcare.
Inflation-Sensitive Markets Know What This Means
These are staggering amounts of money. Never before in history has the U.S. printed this much money.
Add it all up and the U.S. will print an amount of money greater than the GDP of Japan, the third largest economy in the world.
All of this is going to unleash an inflationary storm.
Commodities have just broken out of a 10-plus year bear market.
Gold was the first to figure this out.
Now it’s oil’s turn.
All of these charts are SCREAMING that inflation is coming. And as usual, most investors are asleep at the wheel.
Those who are properly prepared. however, will make literal fortunes.
Editor, Money & Crisis