Gold, Stimulus, and Basel III

by David Brady
Sprott Money

In my previous article entitled “Everything is Looking Up”, I went through the various tools I use in my process and how each of them signaled that the bottom was either already in place or it was close, i.e. we have just one more lower low to go. Nothing has changed in the past week to suggest anything different. If anything, the bullish case for precious metals and miners has strengthened, especially from a fundamental perspective.

[…] Quick on the heels of its $1.9tln stimulus package, the Biden White House is now doubling down on another $3tln infrastructure package. With tax receipts going nowhere, the budget deficit is set to explode to record highs. Much of the debt issued to finance, this additional spending will likely be funded by the Fed. In order to do so, they will be forced to increase QE and that will probably occur at the same time that they announce explicit Yield Curve Control.

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