We Are on the Cusp of a Massive Crack-Up Boom!
The comments below are an edited and abridged synopsis of an article by Alasdair Macleod
There is considerable misunderstanding over the causes of rising prices and the consequences for interest rates. There are now signs that the official narrative over these issues is misleading at best.
Those who have protected their wealth by investing in financial assets no longer have the following breeze of falling interest rates. Financial bubbles are bursting. Understanding the causes and being able to assess the losses involved is becoming urgent for anyone committed to financial markets.
This article explains inflation in its proper context, which is loss of purchasing power for state-issued currencies, so that current conditions are better understood. It dissects the delusions behind monetary policies over both the causes of rising consumer prices and interest rate management.
We are beginning to experience the worst of two worlds simultaneously. While the financial bubble collapses, in anticipation of and the response to an accelerated debasement of fiat currencies, prices of everything from commodities to finished goods will soar as a crack-up boom materializes.
Up for discussion: The role of money; the economics of sound money differ from fiat money; the fallacy behind interest rates; and now we face rising prices.