RE: POG Action6 Jan 2022 15:44
Hi swatton, Tapering doesn't eliminate inflation as the extra money is still in circulation and can't be removed. The economy needs to adjust to a new 'value' of cash given this increased circulation. Fortunately for us, the FED, BOE etc etc have been keeping interest rates low as well as printing cash, which in turns inflates assets and lowers yields as all the extra cheap cash gets pumped into things that return a better rate than their borrowing costs. (Hence record high global indexes)
Look at what happened to Turkey, they've only done what everyone else has been doing for the last nigh on 14 years, not to mention the eclipsing value of all the COVID money printing too.
Check out the FED clock, quite sobering really. I particularly like the dollar/gold ratio
Https://www.usdebtclock.org/