So, 3 months ago they were talking about living with high prices to avoid crashing the economy. Now they're talking about a slowing economy with increasing inflation.....commonly know as stagflation.
The US dollar and government bonds are the two main components that cap the gold price; historicly gold is a priority investment in times of uncertainty and inflation.
Stagflation is a brutal beast because unemployment grows while prices still rise.
The main driver of inflation (in this case) is energy costs.
The transition to green energy requires massive government spending, which is hard to budget for when they have less tax payers.
it all seems a bit odd when you consider the labour government just announced record tax income from both private and corporate sectors of the economy, but I guess that's what we're seeing across the world, the summit of a bull run.
