Monetary Tectonics, Gold, And Unintended Consequences

Tyler Durden's picture

Via Acting-Man blog,

Dan Popescu of Goldbroker has interviewed Ronald-Peter Stöferle of Incrementum Liechtenstein AG, co-author of the In Gold we Trust 2014 report, covering gold, Austrian economices, and broad range of other topics...

We are currently on a journey to the outer reaches of the monetary universe. We believe that the monetary experiments currently underway will have numerous unintended consequences, the extent of which is difficult to gauge today. Gold, as the antagonist of unbacked paper currencies, remains an excellent hedge against rising price inflation and worst-case scenarios.

 

The tug-of-war between a deflationary debt liquidation and politically induced price inflation is well and alive. Last year we coined the term ”monetary tectonics” which describes the battle between these powerful forces.

 

 

An excellent indicator for the interaction between inflation and deflation is the gold/silver ratio. One could therefore also refer to the gold-silver ratio as the “deflation/reflation” ratio.”

 

 

The following illustration serves to place the current economic situation in an inflation matrix and to explicate possible developments. It shows possible future scenarios based on different growth and inflation rates...

 

Full Incrementum report below:

In Gold We Trust Report 2014