Dear Investor,
We’ve seen unprecedented use of the word “unprecedented” lately. So, I will skip a listing of the unprecedented and interesting things that are happening and only focus on our core theme:
The unlimited printing of money will push up the price of things whose quantity cannot be eased.
As economists try to get their heads around the magnitude of this, there has been an escalating series of statements like “this deficit is the worst since 2008”, “…the worst since WWII”, “…since the Great Depression.”
It’s the worst — full stop. The U.S. deficit for 2020 — at 19.2% of GDP — is larger than the widest deficits during the Great Depression and it is larger than the average annual deficits the United States incurred while fighting World War II. (The U.S. deficit averaged 16.2% of GDP during the fiscal years 1942–1946.)
.svg){kind=small}
.svg){kind=small}
.png)
