The Democrats controlling the whole of U.S. government has boosted the chances of more fiscal stimulus, but also reflationary concerns. According to Hill-HarrisX, 75 percent of the 3,787 registered voters surveyed are somewhat or very concerned about the national deficit. The U.S. deficit was $3.1 trillion in 2020 alone and if additional $2,000/person stimulus checks are now written, that will add nearly another half-trillion dollars. The dollar is already weakening and thus helping to inflate commodity values. Inflation is particularly impactful on commodity prices because speculation can add its own impetus. Capital inflows to the commodity markets have been notable of late, egged on by perceived supply shortages but now likely to accele...

TAGS – North America, Macroeconomics