Governments continue to print money, buy their own bonds and other securities. They are making interest rates artificially low. Many people think this is to stimulate the economy, to encourage people to buy housing, and to invest. In reality, the governments seem to be undertaking all of these actions, seem to be in order to allow the governments to borrow more and more, to get more and more in debt.

The more you produce of something, the less value it has. So as governments print money, mainly in the West, their currencies will inevitability be worth less and less. 

It is interesting too that western governments are printing more and fiat currency whilst countries like China and Russia, buy more and more gold, silver and commodities such as steel and coal.

It is also leading to a rise in inflation due to lockdowns causing production to stop or be delayed, and shipping costs to rise. However, even those there are less goods being produced in these countries, the governments are printing money and giving it out to citizens who are in lockdown or unable to work. This has led to massive increases in asset prices from stocks to property to crypto, as well as even everyday goods such as desks, cars and books as people flock to online shopping. Inflation may lead to stagflation and even hyper inflation.

It seems we are heading into another cycle of lockdowns, lost production and jobs, and more money printing. So fiat currencies will continue to decline relative to commodities such as gold and perhaps even the likes of Bitcoin.

Should we buy gold, silver and crypto?

What do you think lies in the future?