In the two months since COVID-19 has begun to make a significant impact on the American mainland, fiscal and monetary stimulus has begun to flow like it never has before. This expansion of the money supply has the potential to stave off deflation, and may be pushing traders to look beyond the virus’ initial impact, focusing on the implications of money that is virtually falling from helicopters flying above. Stocks have already rebounded strongly and a broader recovery in inflation through the end of the year has implications not only for the economic recovery, but gold and the Greenback as well.
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