Extreme Currency Creation Results in Extreme Currency Devaluation
The staggering level of fiat money creation and zero-to-negative interest rate policies (effectively using debt to solve a debt crisis), which emerged after the Great Financial Crisis of 2008, is now beyond dispute. The direct impact such policies have had upon declining global currencies is, again, both self-evident and deeply concerning, despite interim efforts (beginning in 2022) by the US Fed to raise rates and strengthen the USD.
These policies (along with a weaponised USD following the Ukraine War) have only encouraged the BRICS and numerous other nations to slowly but steadily de-dollarize in a global financial and currency setting increasingly marked by competing trade and currency blocs.
In the end, of course, ALL fiat currencies, throughout history, ultimately go to zero, which explains why central banks, since 2010, have been net-buyers of gold. In 2022, central banks in general, and eastern central banks in particular, bought physical gold at levels never seen before in the five decades of central bank gold reporting. The implications of this inevitable, as well as predictable, trend are beyond dispute.
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