The New CS Board

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Central banks can't tighten monetary policies as global debt rises to 360% of GDP - Degussa : https://www.kitco.com/news/2021-06-03/Central-banks-can-t-tighten-monetary-policies-as-global-debt-rises-to-360-of-GDP-Degussa.html


Excerpt:
"The sky-high level of global debt has severely limited the degree of freedom of central banks"monetary policy. All the more so since in the course of an inflation policy, the benefits (preventing state and bank defaults, maintaining an illusory boom) come first, and the costs of an inflation policy appear later.

Degussa analysts said consumers could start to feel the "cost" more acutely as inflation pressures rise due to declining purchasing power. They said that higher inflation is inevitable.

"Given current developments, it is very likely that soaring inflation will become a rather serious problem, especially for money holders,"the analysts said.

Degussa expects that gold will continue to attract investors looking for an inflation hedge and protect their purchasing power in the current environment. The European firm sees gold prices ending the year at around $2,448 an ounce.