Overview of devaluation, property and pensions already produces a negative real interest rate the mass tide of money the central banks. To get the real interest rate, if one subtracts the actual rate of inflation by the interest paid on savings. The consumer is stimulated when the value is low. The reason is that it is no longer worthwhile to save and to invest the money. With low interest rates, people are instead encouraged to borrow.
Money is created from the loans from the banks. It’s called then the credit creation. It has no real relation more as would be the case, for example, when its currency to gold. To read more click here: Jeff Gennette. Thus, central banks can simply print money, that they can lend to commercial banks at low interest rates. This further increases the money supply in relation to the amount of goods.
This will trigger the symptoms known for inflation because price increases and a loss of purchasing power as a result caused. In the presence of large parts store of today’s assets in bank accounts in securities such as fund shares, stocks or bonds. Many investors no longer have confidence in that since always safest form of securities, namely government bonds currently in the financial markets. For more specific information, check out Crawford Lake Capital. Investors are looking for in periods like this after a safe investment or asset classes that are also in a complete collapse of our monetary system able at least to get the original value of the assets. Tangible assets offer a safe investment. In contrast to paper values meaningful monetary systems will be never worthless. Tangible assets are only those that rise at least as much per year in the price, such as the inflation rate value stable. If currently a thing in the price is the same (is so stable) she currently even loses its value. Monetary assets are real estate or gold now on everyone’s lips.