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Financial Advisor, GTA, Ontario, Canada
Investment, Insurance, Tax & Estate Planning

Wednesday, February 9, 2011

2011 – The year when money starts to die

Many of us recognise the government debt bubble, which ensures that today’s rulers are relieved by the artificially low cost of their debt.  But most of us are unaware of the other bubble, that of the value of money, which is also held up at artificially high levels.  The money bubble is inflating primarily in quantity rather than price, making it easier to deceive the public. There is also a fundamental difference from the usual bubbles, which end with a collapse while money’s value is unaffected: in this dual bubble both  debt and money will eventually collapse together; the former as nominal yields rise and the latter being reflected in rising precious metal prices.