11 December 2023
In 2023, optimism for Fed rate cuts contrasts with the rarity of economic soft landings. The substantial money supply increase in 2020 led to persistent inflation, despite recent declines in money supply and rate hikes. This ongoing inflation suggests a continued devaluation of currency, reinforcing gold’s appeal as a stable investment, evidenced by significant central bank purchases. The situation reflects central bank policy failures and foreshadows the likely impact of monetary contraction and the risks of monetary debasement in 2024.