Commodity Trade Mantra

Posts Tagged ‘Money and Credit’

Future Prospects for Fiat Currency Money & it's Purchasing Power

The faith and credit-standing of issuers of paper money, and not the known and suspected inadequacies of commercial finance, is the last rotten pit-prop supporting the system. We can easily see how a new round of monetary expansion designed to save the global banking system from its nemesis will lead, not to a Lehman-style outcome, but to a collapse of paper currencies.

An Austrian take on Inflation

Success of monetary policy in achieving its inflation target will itself trigger a crisis. The dynamics of the situation suggest that as soon as the consensus view moves away from expectations of deflation, progression to the collapse of affected currencies could be rapid & the rise in the currency price of gold will be sudden & spectacular.

Can Money Printing Cause Deflation?

Over the last 45 years I have observed that, in countries with high monetary inflation, real wages and incomes have tended to decline. Incidentally, this has also been the case since the turn of the millennium in the US, a period in which there has been a colossal expansion of money and credit.

It turns out you can have BOTH - Inflation and Deflation

People who are severely in debt benefit substantially from inflation. Inflation erodes the principle value of a loan until eventually the entire debt simply inflates away. So who benefits the most these days from having their debts inflated away? Governments & Banks – Neither of these players wants to see deflation.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook