Let it rip!

That seems to be the message from key markets this past week. As you can see, everything was up! There seems to be lots of money sloshing around in the banking system and in the hands of Wall Street. Alasdair Macleod has made the point that we already have hyperinflation in the dollar. The idea there is that, when a central bank can’t stop the exponential creation of money without causing the system to implode, we are already at a point ofno return where you can bank on hyperinflation. And if we are not in a hyper inflationary environment, what can you call the trajectory of money printing (QE) displayed in the chart above after a last attempt at monetary rectitude nearly caused our monetary system to collapse starting in September 2019? Yes, I know there is a bit of a squiggly QE top displayed during the past few weeks. But now that there will not be any fiscal stimulus until Biden takes office, the betting seems to be that with Biden as President, the return to exponential monetary booze for the party is back in play. Market behavior last week seems akin to a crowd of drunken young men among a host of strip-teasers at a bachelor’s party.

The chart above is from Lyn Alden. By popular demand, she has written a very extensive report explaining the mechanics of QE, money-printing, bank reserves, fiscal vs. monetary policy, and inflation vs. deflation in her free report that she provides every six weeks or so. You can download this report at https://www.lynalden.com/money-printing/. I would encourage you to avail yourself of this report before I have her on my November 17 radio show to discuss this report. If you read the report and have questions about it, feel free to send them along to [email protected]

This-coming Tuesday, Michael Oliver will be on my show and one thing I want to ask him about is the dollar. Michael has pointed out that gold has done very well over the past year despite a dollar that has not been in decline. However, Michael’s work has him turning bearish on the dollar. On November 6 he put out charts on the euro showing considerable strength. With the euro making up 57% of the Dollar Index, a strong euro is likely to lead to a weaker dollar, which would put wind at the backs of precious metals and commodities. As of the end of this week, the dollar was at 92.225. Mich

About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.