Goldman proclaims the dawn of a new commodity super cycle?
Well we know wood products are sky rocking the last six months and soon with all the trillions in debt they are creating then this story could be the next big surprise for the working class to make ends meet!
serf
Goldman proclaims the dawn of a new commodity supercycle I.E. Inflation
Going green, Goldman Sachs contends, “has the potential to create a capex cycle on par with the emerging markets-driven cycle of the 2000s”.
Not only will this directly impact demand for metals such as copper, but it will have a multiplier effect on labor markets and commodity-producing countries.
Meanwhile, the emerging policy consensus around recovery is that what has been a social rather than a financial crisis will need a social fix.
“Policymakers around the world have signaled that full employment, and increased income for low-income households is a key part of post-COVID policy,” Goldman says.
Such redistribution policies are commodities-positive since lower-income households tend to spend more of the extra money they receive.
Financial stimulus after the last crisis benefited primarily higher-income groups where the marginal propensity to consume out of wealth is a meager 3%, the bank estimates. Richer people simply don’t need to spend the extra money on more things, while poorer households will consume just about all of it.
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As long as Biden keeps his promises a significant number of jobs will be lost. His EOs alone have destroyed close to a quarter million in the energy sector. If and when he and the DEMOCRATs bring corp taxes back to the pre Trump era, you can count on up into the millions.
If that isn't enough, corp tax increases in synergy with a minimum wage of 15: The fallout will be a devastating loss of jobs and inflation on an unprecedented scale. Interest rates reminiscent of the Jimmy Carter era.
But wait, there's more: Amnesty for 11 million and opening up the borders to tens of millions.
Might be fake news but I read an article the ole joe had shut the pipe line here and was pouring $$$$ into the middle east pipe lines.
Yep oil at 60.00 a barrel and other other industrial metals are shooting up and The Fed's say inflation is under control!
serf