–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

“The current combination of monetary debasement, populism and social unrest is neither a new phenomenon nor a coincidence. The late Roman empire shaved silver coins as it disintegrated; Henry VIII replaced silver coins with copper to pay for wars against France and Scotland; the British empire allowed double-digit inflation to erode bondholders’ wealth following the War of Independence; the Weimar Republic precipitated an inflation spiral. Comparing these examples to QE may sound extreme. Yet the biggest debasement in history may be the one we are experiencing now under the form of a $20tn central bank experiment, which is de facto depreciating money by boosting the price of all assets it can buy.”

Alberto Gallo
Algebris Investments

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––