By Bruno de Landevoisin
THE ORIGINAL 90% SILVER ROMAN DENARIUS
DEBASED TO LESS THAN 5% SILVER – BY 350 AD IT WAS WORTHLESS
STEALTHFLATION: An intractable economic condition that inevitably arises as excessively issued fiat currency compulsively pursues non-productive wealth assets in a grossly over-leveraged economy, which has been artificially reflated by Central Banking authorities, in a misguided attempt to synthetically engineer economic growth via extreme monetization. (ie: Counterfeit Quantitative Easing & Interest Rate Suppression)
This ill-advised monetary regime effectively prevents the real economy on the ground from realizing the healthy normalization of free market forces crucial to genuine capital formation, authentically derived from bona fide industrious productivity generating actually earned savings, the very life blood essential to inducing legitimate and sustainable growth.
Under the imposition of StealthFlation, asset prices are deliberately inflated in an irrational attempt to elicit a vapid wealth effect, while the generative velocity of money is extinguished. Contrived Equity Markets are pointlessly driven higher by the perverse implementation of impotent stock buybacks. Worse still, the seeds of hyperinflation are sown, as the compromised overtly financialized economy becomes increasingly dependent upon the interminable entirely destructive monetization.