The rulers and the ruled in the Western world have long succumbed to a particularly demonic temptation: the replacement of commodity (or precious metal) money with unbacked, state-issued money, known as fiat money. In a sense, they have been seduced by the alluring prospect of securing the power to increase the quantity of money arbitrarily …
Tag: M2
Central banks are creating poverty with real estate, stock and over-indebtedness ‘bubbles’
Due to loose monetary policy (quantitative easing), financial assets appreciate without being supported by proper fundamentals while real estate becomes investment vehicles and the lower income strata are excluded from ownership. Despite what the conventional narrative about the economy holds, central bank monetary policies are a form of distortive government intervention in the economy. Their …
Gold is the only lifeline from inflation – Inflation is implicit government bankruptcy
The money supply (the M2 index) in the US is rising again and persistent inflation is no longer a surprise. Price inflation occurs when the quantity of currency increases significantly above private sector demand. For investors, the worst decision in this currency disaster environment is to invest in government bonds and hold cash. The destruction …
The FED is sacrificing inflation to keep the bond market from collapsing
The US Federal Reserve is in a race to prevent an imminent collapse in the US government bond market. High US debt yields are artificially kept at these levels as the Fed maintains demand by increasing the money supply in the economy – that is, by printing dollars and trying to control the bond yield …