RE:Gold price The markets basically had an epiphany moment. The stupid media's reaction was comical as usual. It's like, they all of a sudden just realized the Fed has been lying so they can manage expectations, not the problem itself which is beyond their power to fix. Didn't we all see signs of inflation and the failing recovery?
So when you are driving on a highway, and there's an accident that causes miles of log jam, do you expect the traffic to return to normal as soon as the accident is cleared up? No. You are stuck for hours, miles away from the accident, long after the accident is cleared up. The global supply chain is just like that. It's too lean and efficient. Meanwhile you have cars that are stuck running out of gas. There will be a long time before resources are redistributed or recycled, lots of jitters and lots of profit misses. Businesses all burning gas but going nowhere. STAGFLATION.
Don't taper, sure. Taper away, GREAT. Increase interest rate - yes please I'd like to see that one. Nothing the Fed does matter at this point. No matter what it does the outcome necessarily includes at least a recession that will last as least as long as the pandemic. Do you think we can build back faster than things were destroyed? It's the choice of a crash in the ocean or in Manhattan. Good luck betting on which part of the plane will not explode.