- Farewell to Yet Another Failed Monetary System
by Egon von Greyerz, https://goldswitzerland.com/
The beginning of the end of the current monetary system and currency collapse started exactly 50 years ago. In the next few years the world will experience the end of the end of another failed experiment of unlimited debt creation and fake fiat money.
Economic history tells us that we need to focus on two areas to understand where the economy is going – INFLATION AND THE CURRENCY.
These two areas are now indicating that the world is in for a major shock. Very few investors expect inflation to become a real problem but instead believe interest rates will be subdued. And no one expects the dollar to collapse or any major currency collapse at all.
But in the last two years money supply growth has been exponential with for example M1 in the US growing at an annual rate of 126%!
Von Mises defined inflation as an increase in money supply. The world has seen explosive growth in credit and money supply since 1971 and now we are seeing hyperinflationary increases. Hyperinflation is a currency event. Just since 2000 most currencies have lost 80-85% of their value. And since 1971 they have all lost 96-99%. The race to the bottom and to hyperinflation is now on.