You Think the Global Economy Is Brightening? Beware: The Big Hit Is Yet to Come

If central banks are not stopped from doing what they are doing—causing booms and busts by manipulating market interest rates downward and relentlessly expanding the quantity of money created out of thin air—their actions will eventually lead to a level of inflation well beyond what we have witnessed over the past year and a half. From this perspective, the sharply contracting real money stock in the world economy is—it has to be feared—the harbinger of a new round of super-easy monetary policy and super-high inflation, even hyperinflation, further down the road.

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Gold Market Isn't Buying Powell's 'Disinflation' Declaration

The bottom line is that there will be no disinflation of the currency supply. Jerome Powell may be partially correct, however, in forecasting price pressures to ease in certain areas of the economy as it softens. We are currently seeing home prices and car prices come down. We could also see downside pressure come to bear on economically sensitive commodities.

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