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Jim Rickards: Only way out of the death/debt trap is gold-assisted inflation
By James Rickards
The Daily Reckoning, Baltimore
Tuesday, February 9, 2021
I've said the U.S. is caught in a debt death trap. Monetary policy won't get us out because the velocity of money, the rate at which money changes hands, is dropping.
Printing more money alone will not change that.
Fiscal policy won't work either because of high debt ratios. At current debt-to-GDP ratios, each additional dollar spent yields less than a dollar of growth. But because it must be borrowed, it does add a dollar to the debt. Debt becomes an actual drag on growth. ...
... Dispatch continues below ...
Great Bear Provides Detailed New Sections
and Drills Near-Surface High-Grade Gold
at LP Fault: 13.38 g/t over 18.15 Meters
Company Announcement
Monday, February 8, 2021
VANCOUVER, British Columbia, Canada -- Great Bear Resources Ltd. (TSX-V: GBR; OTCQX: GTBAF) today reported results from its ongoing 2021 exploration program at its 100% owned flagship Dixie Project in the Red Lake district of Ontario.
Chris Taylor, president and CEO of Great Bear, said, "In this release we provide highly detailed individual assay level data from shallow drill holes on one cross section at three different scales. With tighter drilling we have observed the same exceptional gold zone continuity at 25-metre drill spacing, both along strike and vertically, as we previously observed at 100–200 metre spacing.
"By the end of 2021 we are planning to have completed approximately 100 drill sections similar to the one contained in this release, consisting of over 400 drill holes in total. All this drilling is within the same continuous gold zone along more than 4 kilometres of strike length, which remains open to extension in all directions, and is present from bedrock surface.” ...
... For the remainder of the announcement:
https://greatbearresources.ca/news/great-bear-provides-detailed-new-sect...
There is actually a way out. It's the only solution left, really. And that's inflation.
Deflation increases the real value of debt. With deflation, the value of money increases, making it more burdensome to pay off debt. This is why debtors hate deflation.
And guess who is the world’s largest debtor nation? That’s right, the U.S. ...
The solution is to increase the price of gold in order to change inflationary expectations. That will increase money velocity and get the growth engine running again. The Fed could actually cause inflation in about 15 minutes if it used this method. ...
... For the remainder of the commentary:
https://dailyreckoning.com/the-only-way-out-of-the-death-trap/
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