Strategic Intelligence March Portfolio Update
As the debt and deficits grow at an unprecedented rate, the economic fallout has yet to be realized. Jim expects strong deflationary forces in the short run and even stronger inflationary pressure in the long run. The longer the Federal Reserve balance sheet grows and Congress authorizes more spending bills, the less flexibility the Fed will have to react to a future inflation surprise. The Fed won’t be able to defend the dollar’s value without sacrificing either the financial market bubble it has promoted or the easy financing terms it has set for the Treasury. For now, read on as Dan gives guidance on all our open positions in the portfolio.