Martin Wolf, chief economics commentator at the Financial Times, is calling for the world’s central banks to start electronically depositing money “to every adult citizen.” Wolf’s not calling on only the Fed to implement this policy but all the world’s central banks, which would mean massive inflation around the world that would send investors scurrying to protect their assets with gold and silver purchases.
Writing in the Financial Times’ February 24, 2016 edition, Wolf says that the “world economy is slowing” and that the “next step is likely to include fiscal expansion,” which would mean more government spending–which, of course, means more deficit spending. In 2015, the United States’ official national debt increased right at $900 billion (which is rarely ever discussed, even on financial news shows).
To support his position, Wolf notes that Ray Dalio, founder of Bridgewater Associates investment firm, says that the world economy is not just slowing but “monetary policy 1” — lower interest rates — and “monetary policy 2” — quantitative easing — are largely exhausted. “Greater boldness” is what Wolf calls for, as in “helicopter drops,” made famous by former Fed Head Ben Bernanke, but originally conceived by the late Milton Friedman of the Chicago school of economic theory and a Nobel Memorial Prize honoree.
Wolf further cites the Organization for Economic Co-operation and Development (OECD) as an advocate of “fiscal expansion.” The OECD had long been an advocate for austerity before coming out with its call for fiscal expansion.
The stage is being set for massive inflation, with the world’s most influential people, publications and media outlets calling for loose monetary policies. Gold and silver will benefit from this dominant thinking. With the metals just off three-year lows, they are favorably priced.