It’s most likely that countries will continue to inflate their debts away because the only other option is to…
Lyn discusses global central bank policies and their effects on inflation. We now have a much different environment than what we had five years ago. The famous Powell pivot of 2018 may have been caused by the credit markets freezing up and not equities. They tried to raise rates until the risk of a recession ballooned.
It’s most likely that countries will continue to inflate their debts away because the only other option is to default. Typically, defaults only occur with countries who are unable to print their own currency. We should expect inflation to continue for some time and purchasing power to decline significantly.
Lastly, she discusses how the gold stock to high flow ratio can make a commodity easier to manipulate. This is because most investors are fine with only having a paper claim to the underlying metal.