Is Hyperinflation Around The Corner?! (And is Gold the Answer?)

HoustonHusky said:

Not hyperinflation, but you will see commodity prices creep up, especially when the current chaos subsides. My expectation is that gold will get to $3,000/oz by end of next year, and then be a shitty investment from there until the next crisis when they start printing money again.

I don't think commodities so much as equities will see inflation. The fed is now in the game of fixing the stock market so expect risk taking, leverage, and speculation to go up up up.

FireCohen said:

UW_Doog_Bot said:

HoustonHusky said:

Not hyperinflation, but you will see commodity prices creep up, especially when the current chaos subsides. My expectation is that gold will get to $3,000/oz by end of next year, and then be a shitty investment from there until the next crisis when they start printing money again.

I don't think commodities so much as equities will see inflation. The fed is now in the game of fixing the stock market so expect risk taking, leverage, and speculation to go up up up.

The HY market is almost back to the pre-COVID levels. 2Q earnings season should provide some interest data and will be interesting how the market interprets that data. I suspect people to panic a little big

That's what happens when you make the money printer go Brrrrrr and go to the extremes of propping up corporate debt despite real economic activity being down.

People are going to be panicked sure, but where's all that fresh printed money going to go?

This is the first instance of an *actual world recession(where everyone is basically in recession at the same tim) with liquid international capital markets. Real economic activity is going to be down and there's going to be deflationary pressure on the CPI while you have every government on earth printing cash and a yuge demand for liquidity and "safe" assets. I agree with @PurpleThrobber that gold will probably go up but I don't see the same case for other commodities. Oil and other inputs are going to be downwardly pressured with all of the decrease in demand and back inventory from the shutdown. It's also hard to settle international exchanges in wheat. No one will want to hold cash long term because of the worries of inflation so where does that leave? US equity markets and non-rental property investment are where a lion's share of QE previously went so someone tell me why that won't be the case in this scenario.