War time spending consistently drives inflation in U.S. history, Lawrence Lepard notes

War time spending consistently drives inflation in U.S. history, Lawrence Lepard notes
US inflation driven by war spending

Lawrence Lepard draws a connection between major episodes of inflation in U.S. history and government spending during wartime, starting from 1776 and 1812. He highlights that both World War I and World War II doubled the price level, with COVID-era government expenditures representing a rare non-war exception that also drove significant inflation.

Lepard raises the question of how future spending will be financed, hinting at ongoing concerns about U.S. fiscal policy.

Lepard has previously drawn attention to market turbulence, noting that the BofA MOVE index was approaching volatility levels seen during major bond market swings. He has also called recent markets "uninvestable," recommending a shift to gold or bitcoin for stability. These observations come as he continues to evaluate the fiscal outlook following unprecedented government spending.

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