Chart of the day: Money printing
The case for holding real monetary assets summed up in one chart:
Currency created by central banks
If and when this amount of currency makes it’s way to the real economy, one can only imagine how fast prices could potentially rise. Out of the two scenarios that will unfold (higher inflation or deflation), both should benefit gold and silver investors in the end. Since World debt is at an all time high and thus our financial system cannot survive deflation for long. This should lead to a few possible reaction functions:
- Central banks will have to print trillions upon trillions of new currency and create massive inflation.
- Governments will decide to “reset the system” using gold and/or the IMF’s SDR as an anchor (will lead to massively inflated prices for real assets)
- Central banks and governments do nothing and will watch the banking system, corporations and even nations implode because unpayable debt burdens. Which will lead to bail ins (like what happened in Greece and Cyprus not too long ago).
