Taps Coogan – December 30th, 2020

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Ronald-Peter Stöferle, Managing Partner and Fund Manager at Incrementum AG, and Grant Williams, co-founder of Real Vision, recently spoke with Macro Voice’s Erik Townsend about what 2020 represented for financial markets and the economy, with debasement, gold, and bitcoin in mind.

The wide ranging discussion is worth listening to in its entirety above but the following excerpt from Ronald Stöferle hits the nail on the head:

“2020 will go down in history books as when all the taboos have been broken… When it comes to debt and monetary discipline, nobody cares anymore. Just to give you some comparisons, between the Covid stimulus versus the 2008 financial crisis, in Germany the stimulus was ten times bigger, in Japan nine times bigger, in the US four times bigger. Western European countries alone have allocated a stimulus almost 30 times larger than today’s value of the Marshal Plan… All the deficit hawks have basically been silenced…”

As we set off for 2021, it truly is a brave new world for financial markets and the economy. Whether one wants to or not, we’re all basically betting that ‘printing’ up trillions upon trillions of dollars and distributing it in all manner of new and creative ways throughout the economy won’t cause precocious inflation or other ‘unforeseen’ problems.

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