In this report, I cover the early market action from London on Thursday, October 17th, 2019. I look briefly at the precious metals, the stock market, the dollar, the bond market and the price of WTI and Brent crude oil.
Today I look into the policy of currency debasement that governments and Central Banks carry out by stealth in times of increasing debts and moribund economic growth. I note that despite all the distractions out there like Brexit, Middle East instability and political division in the U.S. excessive credit or money creation needs to continue in order to keep the current debt bubble going.
Even as far back as Ancient Rome currency debasement in the form of coin clipping was taking place and nothing has changed since then as we will continue to see currency debasement in the form currency created out of thin air. The reason that policy is implemented is that if the currency or debt becomes worth less it becomes easier to carry and pay off.
My conclusion is that I do not expect currency debasement to stop as that would take fiat currency out of the system and governments and Central Bankers hate to see that happen as they would lose control of things.
