Inflation on the rise

Drastic measures

The second lockdown is here and it feels almost normal. But how long can it go on like this? If you compare the crisis of the year 08 with the Corona crisis, the figures speak for themselves. If you compare the fiscal stimulation of 08 with this one, you see that Germany spent 10 times as much, the USA four times as much. Western nations alone have raised sums that are 30 times as large as the Marshall Plan. All taboos have been broken and the behaviour of central bankers and politicians regarding public deficits is one of seemingly endless money.

Inflation is getting closer and closer

Many things speak for higher inflation in the near future. Not only do central bankers want it and will do everything possible to achieve it, but many other indicators speak for it. For one thing, radical ideas that were previously only represented on the fringes of the economic profession have moved into the mainstream. On the other hand, we have already seen all previous phases from the model of the Austrian school, inflation in stocks, real estate, art and many others. The next step is consumer prices. Meanwhile, central bankers are reaching deep into their bag of tricks. Digital central bank currencies and other things like the war on cash are always to push through ever higher negative rates. But like QE, the positive effect is getting smaller and smaller. Like a boomerang, inflation will then come down on you.

New Horizons

Central banks, especially in emerging markets, have a completely different view of gold and buy as much as they can. The opinion about gold is changing in other ways as well. They all spread to the moment when there is a big change in the monetary system. That hour will come, because no system lasts forever. Then, it is good to have real reserves that you can fall back on and which provide confidence.

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Source: https://youtu.be/p7sTVBzCjwI