UK and EU figures show inflation greater than expected. Why? Oversupply of money from QE. Ie Prices rise when demand increases which it does when more money chases goods. Consequence: people will buy more commodities (real assets) such as gold because inflation debases cash and bonds. (Poor pensioners who hold cash and bonds). Expect gold and other commodity price rises. People will in seeking to get inflation beating returns invest in stocks too – boosting markets. US markets up +15percent this year my expectation. Inflation, as in 1970s, wipes debt by increasing nominal wages and decreasing real value of money.

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