I think we all know and realize that inflation has been much higher over the last 25-30 years than the official CPI. Not being an insider, I really struggle to understand how financial markets do not reflect this fact, especially the bond market. Is it because the people closest to the the financial system (mother teat), turn a blind eye because it suits their purpose and interests (cantillion effect). Or maybe this set of people earn much higher incomes so they are less effected buy it on a personal level. To me it is so obvious and I am amazed that people with a half a brain cant see it. The entire (current) financial system is sleep walking its way to the cliff. I guess human beings want a mass opiate and need someone to tell them what to believe. When the Fed says it wants to see higher inflation, I would love to tell them to their face, mission accomplished! Very frustrating.
I reread a book I purchased 2 or 3 years ago called “When Money Destroys Nations”. It is about what happened in Zimbabwe. It was a very slow and gradual process and moved along for decades and until a financial crisis in 1997. The Currency lost 75% value in this crisis. That accelerated the process. We are not yet at that point.
After reading this book again, I find myself trying to understand where we are in the process. All HI events are unique for every nation and determined by a whole host of factors. With that being said, I believe we are 2-5 years away from the crackup. I am not sure if being the reserve currency buys us more or less time relative to my guesstimate. I do believe there is vested interest in maintaining the status quo as long as possible do to the gray train, but ultimately it is unstoppable.
Last of all, I am sure that many on this blog are aware of the governments efforts to implement a digital currency to allow faster response to economic downturns via fed injection directly to individuals thereby bypassing the banking system. This allows them to directly control the velocity of money by putting an expiration date on the funds. As this becomes closer to reality, it will no doubt accelerate the move to HI and push us to FG. This will be the lifeboat to the next system. Good work FED, the sooner the better!!!