You may have noticed the return of inflation recently. Supply chain price increases have turned up in Dunnes and Lidl and at the petrol pumps. This is not a temporary phenomenon. Inflation was generated in the US and imported everywhere else. The Federal Reserve was responsible because it tore the arse out of the Money Supply in 2020 when markets crashed.
So what ?
Central Banks will now try to put smacht on inflation by increasing interest rates and reducing liquidity. Share prices will fall. Speculative assets such as Bitcoin have already fallen significantly.
. It could get very messy.
If you want to make money have a look at gold. Gold prices tend to move up when chaos reigns.
https://www.ft.com/content/aeb0990d-8b71-40f1-8a8c-3dbfc49e1122 "Even after the events of March 2020 [the Covid crash], forgetfulness in the markets always returns, and most people are complacent again,” he says. Now, though, western central banks and treasuries are much less willing (or able) to rescue institutions, markets or investors. There is just too much official debt to manage at a time of high inflation."
