Euro countries need liquidity......they have gold...they are sellors of massive amounts of pm’s right now in search of cash liquidity. When alot of one commodity overwhelms the market......price goes down.
In addition to unloading their gold, European banks are also selling their best, most-profitable businesses to raise capital, which will hinder long-term profitability… The same thing happened during the U.S. financial crisis. For example, Bank of America sold its profitable international credit card business to raise cash.
Helicoptor Ben will make a move to print.....but can it kickstart some inflation.......or just sit in banks investment portfolios again?
“Helicoptor Ben will make a move to print.....but can it kickstart some inflation.......or just sit in banks” investment portfolios again?”
The government and the Feds figure that if they can tamp down the economy through regulation and taxes, overall inflation will be relatively tame as it was during the Great depression (actually deflation). The idea is to depress wealth creation which reduces prices for dicretionary, and high end purchases (homes, gold as jewelry, luxury items). However, staples (food, energy) will continue to inflate because of constant demand. So making people poorer will avert inflation to some extent.
However, the reality is that gold is also a store of value and has functioned that way throughout history even through the most dire times including the Dark Ages (Atilla the Hun liked gold). The one trump card for fiat currency is its legal aspect. That legal aspect could trump gold if there is a worldwide currency snd totalitarian world government.