The markets will speak...soon. Will the action of the the government be inflationary?
The answer? Watch what is going to happen to the markets. A decline in the dollar and a rise in commodities (gold and oil included) suggest the markets believe the move is inflationary. It will stabilize the market in the long run, but a bigger and more intrusive government, slower economic growth, and higher than average inflation is the price we will have to pay.
The good news is if instead we will experience a strong dollar and stable commodities. In this case the markets perceive the move as non-inflationary.
Time will tell. Stay tuned.
More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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