Worldview Investing - Ruminations on the World Economy

President Biden, Jay Powell, Christine Lagarde (head of the European Central Bank), Boris Johnson and Andrew Bailey (head of the Bank of England) all vow to fight surging inflation. None will succeed over the long term. If investors understand why this is the case they will be far better positioned for what comes next. As is often the case, the best indicator of the future is the past. When we fail to take note of history we continue to be surprised by recurring events. History tells us what we need to know about government finance and its impact on prices and markets. Every financial crisis differs in some respects from others, but most have a common denominator. That is excessive individual, corporate and governmental debt resulting from maniacal central bank money printing.