According to Arthur Laffer, former economic advisor to Ronald Reagan and Donald Trump, tax cuts and tight money are needed to tame inflation. This would increase the supply of goods and services. A recession would not be necessary. If taxes are lowered, then people and companies can produce more, which in turn then lowers prices – and lowers inflation. What the Fed is doing, Laffer said, is "they don’t know what they’re doing." Today, central banks are raising interest rates and selling assets in an effort to suppress inflation.

Opinions are divided, with some believing that a recession is inevitable and others that it is avoidable. Low inflation may well be associated with an economic upswing. The 1920s serve as an example, when significant tax cuts were implemented, and a great economic boom followed. Inflation was also eliminated under Reagan and the economy boomed tremendously. Laffer even recommends imposing a flat 13 percent tax on corporate profits and personal income while eliminating all other taxes. Then the "economy would take off." The Bank of Canada just raised its key interest rate by 100 basis points. This big move caused a stir. According to Laffer, this should lead to a recession, so we’ll see. Whatever theories one may believe, in order to beat inflation, it is worthwhile to invest in gold as a means of preserving value, for example in the stocks of CanaGold Resources or Tudor Gold.

CanaGold Resources – https://www.youtube.com/watch?v=470uITYna_E – owns 100 percent of the flagship New Polaris project in British Columbia. Drilling has returned up to just over 37 grams of gold per tonne of rock. The company continues to generate shareholder value through the sale or option of the smaller non-core properties.

Tudor Gold – https://www.youtube.com/watch?v=HzraSqtoTNA – owns the Treaty Creek flagship project (gold and copper) in British Columbia’s Golden Triangle. Exploration work is in full swing.

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