Does Anyone Think This Will End Well?

DM

The federal government, and the Bank of Canada, seem determined to repeat some of the biggest and most destructive errors in financial & monetary history. 85 years of the money supply growing by 7.3%. $5 billion growth in 1970. $50 billion growth in 2006. $500 billion by 2021, after 15 months in which the money supply grew by 284% on an annualized basis. If that is looking to you like an exponential chart, you are absolutely correct. And of course, we have to consider the inverse of what this chart means. As the money supply grows, each individual unit of money (each CAD dollar) has less value. So, we would expect to see rising inflation as the money supply grows. And lo and behold, that’s exactly what we are seeing. While the government claims inflation is still low (between 1-2%), nobody believes this. We are seeing the cost of nearly everything rising rapidly, with the value of our money being eroded before our eyes. At the same time, we are seeing a boom in cryptocurrencies, from Bitcoin to Ethereum to Dogecoin. As governments burn out the printing press, more and more people are sensing that the value of their money is falling, and are looking for places to store value.

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