Currently, the price of physical gold is shooting through the roof (more so than the price of paper gold!). Is this already a sign of the beginning of a gigantic inflation as central banks and governments release a tsunami of liquidity to cope with the coronavirus crisis? When will cash become trash? “Cash is trash,” Ray Dalio said as recently as January at the World Economic Forum in Davos. But the crash of the stock markets has shown at first: Cash and liquidity are “king”. And this is likely to be the case for a long time to come. Because first comes the deflationary shock: people and companies earn less or no more money and are only kept afloat by central banks/states. But the flood of liquidity will not be enough to compensate for the deflationary shock. Inflation will only come when the coronavirus crisis is largely over and then rising demand meets massive liquidity.
There are three price indicators which always give an idea of the future development of consumer prices (inflation). There are import prices, producer prices and wholesale prices. The other two do not look good either. […]
Yesterday, the stock markets really panicked for the first time – as the massive turnover shows. And today – before the weekend – there is little prospect of this changing quickly! The stock markets, which […]
Paul Kirchhof is not just anybody. He was a judge at the Federal Constitutional Court! Does the ECB lead us into socialism, is the citizen “expropriated”? According to Paul Kirchhof, the ECB is currently pursuing […]