ZeroHedge/Eric Peters/9-19-2022
“There’s an assumption that this transition will be disinflationary, but I really don’t think that’s right. Most big transitions are inflationary with a lot of volatility and relative instability. In general, predictability, stability, peace, cooperation, etc. are disinflationary for goods prices and inflationary for asset prices. Instability, less confidence about the future, more combative markets/governments all add extra costs that translate into higher goods prices and lower asset prices,” she said. “Not all transitions are inflationary but transitions that will require a significant rerating of existing capital because of its obsolescence, transitions that create scarcity, transitions that shift power dynamics; those tend to be inflationary.” – Lindsay Politi, One River Asset Management
USAGOLD note: Insights on where we are headed…… Politi does a good job of offering some perspective and food for thought on the profound changes underway in the global economy. “Expecting there to be limits on things like inflation or price movements because they existed in the past will also prove to be very wrong,” she says.
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