In this interview I comment on the risks of expecting the large stimulus packages of governments and central banks to boost growth in a supply shock added to a forced shutdown.
All posts by Daniel Lacalle
Is Now The Time To Buy Gold?
In this interview I explain why the fundamentals for gold are stronger each day, and why silver and palladium should not be ignored in the current crisis.
Continue reading Is Now The Time To Buy Gold?Destroying the Economy is not a Social Policy
The economy is the heart of the social body. If we shut down the heart of an organism to safeguard the hands and brain, the body dies.
The data on deaths and infected from the Covid-19 coronavirus epidemic is alarming. Let us remember the deceased, the infected and their families, and applaud the response of civil society, businesses, and citizens.
Continue reading Destroying the Economy is not a Social PolicyDespite Massive QE And Congress Bill, The US Dollar Shortage Intensifies
How can the Fed launch an “unlimited” monetary stimulus with congress approving a $2 trillion package and the dollar index remain strong? The answer lies in the rising global dollar shortage, and should be a lesson for monetary alchemists around the world.
The $2 trillion stimulus package agreed by Congress is around 10% of GDP and, if we include the Fed borrowing facilities for working capital, it means $6 trillion in liquidity for consumers and firms over the next nine months.
Continue reading Despite Massive QE And Congress Bill, The US Dollar Shortage Intensifies