“Looking Into the Near Future” – an excerpt from Bill Bonner’s Diary, March 20, 2020
The world of getting and spending is shutting down. Without revenue, neither businesses, or households, or the government will be able to pay their bills.
Stocks will rise (“a dead cat bounce,” the old timers call it) on all the “bailout” news, and then give up another 50% of their value.
Business will default on its $16-trillion-debt pile. Millions of people will lose their jobs. The Secretary of the Treasury, Steven Mnuchin, says that upwards of 20% of the workforce could be unemployed.
The feds will print money by the trillions to rescue the situation. Spending will rise. But lower output… and more currency in circulation… will raise prices.