The world is about to enter MMT (modern monetary theory) - it is an idea that governments with sovereign currency on their own can issue debt (without due regard to fiscal restraint) to fund government policies to hit full employment and cant default as they control their own money supply. As capitalism is starting to fail, the political mood of the populace is expecting the government of the day to carry a bigger burden ; and if implemented we will only see government debt rising faster through bond issues , like more QE and invariably will lead to higher inflation that central bankers desire but without accompanying productivity growth, this can be seen as negative for bonds, equities and cash but will favour one asset class- gold. In that scenario, gold price could even head higher beyond USD2000/oz .
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The world is about to enter MMT (modern monetary theory) - it is...
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