Mike Swanson discusses all the money the U.S. government has pumped into the economy in order to combat the economic effects of the coronavirus, and what effects these stimulus measures are likely to have. Even though an huge increase in the money supply would normally lead to price inflation, Swanson says that the simultaneous deflationary pressures from all the shutdown of the economy could offset any inflation, at least until things reopen and we’re on our way out of the recession. This also means that wages might not rise and progress toward economic recovery could be slow. Just about the only thing investors can do, he explains, is to buy gold and silver, since traditional diversification strategies aren’t reliable right now.

Discussed on the show:

• “Is This a Liquidity Crisis or a Solvency Crisis? It Matters to Fed” (WSJ)
• Big Debt Crises

Mike Swanson provides investment advice at wallstreetwindow.com and is the author of The War State: The Cold War Origins Of The Military-Industrial Complex And The Power Elite. He also works with the Neopolis Media Group, a group of historians, educators, authors, researchers, and free speech advocates who endeavor to provide original and engaging content, including The Ochelli Effect, and The Lone Gunman Podcast.

This episode of the Scott Horton Show is sponsored by: NoDev NoOps NoIT, by Hussein Badakhchani; The War State, by Mike Swanson; WallStreetWindow.com; Tom Woods’ Liberty Classroom; ExpandDesigns.com/Scott; Listen and Think Audio; TheBumperSticker.com; and LibertyStickers.com.

Donate to the show through Patreon, PayPal, or Bitcoin: 1KGye7S3pk7XXJT6TzrbFephGDbdhYznTa.

Podcast: Play in new window | Download