In this episode, we explore the subtleties of how inflation isn't just about rising prices, but is intimately tied to the decreasing value of currency—the invisible hand that rearranges monetary value right under our noses. We'll unpack the complex mechanisms that drive inflation, like quantitative easing and fractional reserve banking, and we'll take a historical journey to understand how this has played out in different eras, from Roman coins to the era of gold standards.
With a look at hyperinflation in countries like Argentina and Zimbabwe, we'll contrast those drastic scenarios with the seemingly desirable 2% target inflation rate. But, is 2% really ideal? We'll challenge prevailing notions and ask if a zero inflation rate might better serve economic stability.
As we navigate through the rising cost of living, government debt, and our increasingly complex banking system, we'll also consider if assets like gold or cryptocurrencies offer a harbour from the inflation storm. Are they the modern-day answer to maintaining your wealth as the value of money depreciates?
Join us as we dissect the true beneficiaries of inflation and the potential for a global currency that could revolutionize international trade.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit sovereignfinance.substack.com