Inflation: Silver Leads & Gold Follows

When combined with rate cuts, QE becomes a deadly deflationary cocktail. Banks have no incentive to make loans, and T-bonds become the asset of choice. The T-bond money is squandered by governments, and money velocity implodes. The bottom line is that bank and government wealth is inflated by QE, and the wealth of the average person is massively deflated. “QE to infinity” is better described as “deflation to infinity”.

Stewart Thomson