Last week, one of Europe’s most high-profile hedge fund managers predicted that inflation would soar in the aftermath of Coronavirus. Governments and central banks have injected record amounts of stimulus into the financial system. At the beginning of May, the US Treasury said it would borrow $3 trillion, over five times the last record, $530 billion from June through September 2008.
The printing presses are running around the world as governments increase the money supply. They can print legal tender to their heart’s content. When it comes to another reserve asset held by central banks,