Ronald St??ferle talks to Lobo Tiggre from Independent Speculator. He mentions with concern how emergencies have always been used in history for radical change.
Stability and system preservation.Is it with concern or relief that even people like Jerome Powell claim that our economic system is not sustainable in the long run? In the same conversation, however, they emphasise that this is a problem for the future. Now the quote from Alexander Solzhenitsyn in which he describes that all lie but at the same time all know that all lie comes to mind. But this is the world in which we find ourselves. Everyone knows that it can't go on like this forever. But we don't want to do anything about it either.
A temporary, permanent solutionThe history of the last 100 years is full of these temporary government measures. And why not, it would be a shame to waste a good crisis. One can already imagine which economic or even authoritarian measures that were decided during the Corona crisis will continue to accompany us. For as Milton Friedman said, "Nothing is as permanent as a temporary government programme."
Inflation or deflationAs Lobo mentions, the natural deflationary forces are very great. But this would only be the case in a natural, market-driven economy and cannot be compared to our Keynesianism. The current Aggressive Monetary Intervention prevails, causing inflation to rise and also become a longer-term problem. This is supported by President Joe Biden, who wants to put his stamp on the country, knowing that he does not have much time. It is therefore no longer so important to listen to what the Federal Reserve says, but rather what measures the White House decides to take. For the fusion between fiscal and monetary policy is in full swing.
Precious metals and gold in the starting blocksThe outlook for gold is currently very good. The breather of the second half of 2020 is over. Now gold is trading in a price similar to exactly one year ago. But the big difference is that gold was the talk of the town back then. Now nobody is talking about it anymore. This combination speaks for very good opportunities. We expect new all-time highs this year.
Ronald-Peter St??ferle is Managing Partner and Fund manager at Incrementum AG, based in the Principality of Liechtenstein. The company focusses on asset management and wealth management and is one hundred percent owned by its partners. Ronald manages a fund that invests based on the principles of the Austrian School of Economics.
Lobo Tiggre, aka Louis James, is a legendary speculator and was Doug Casey's prot?(C)g?(C) at Casey Research for almost 14 years, until early 2018. He joined the Casey team in 2004. By 2007, he was writing and making investment recommendations in Casey's flagship newsletter, the International Speculator. Now he brings his experience, his connections and his deal flow directly to you, without the barrage of marketing hype used by larger publishers. He is now the editor of IndependentSpeculator.com.