The author of the article knowingly or unknowingly mixes public and private debt in the same bowl and thus draws completely unfounded conclusions.
Leaving Gold aside (where is belongs) the guts of this threat is that G20 mental midgets hope to inflate their way out of the current mountain of debt at the expense of their currencies. So what is new. In a prolonged moment of weakness, all Politicians stubble upon this concept eventually. Here is another similar idea. 1 ES point per day on 500 contracts will mean I can toss in my day job. They are one and the same. Just short term irrational thinking. jjf
You can only do it overnight when the currency is backed by a physical asset, which is what Roosevelt did after the great gold confiscation. It takes longer with fiat currencies. Read up on the Plaza accord when the dollar was devalued against the yen. Took about two years.
"The G20 has to inflate their way out of their debt mountain" = BS. There is no universal public debt problem among the G20. Did the US also "inflate their way of their debt mountain" in the 50s? Nope: Tax hikes worked their magic, just like they will over the next 20 years. Taxes = government income.
Yes, all will be devalued to some degree, but not at the same rate. It's the relative devaluation to each other that matters.
.................................................................................. This is an incredibly important point.... In other words ....an equal divisor amongst the total translates into "no change".... The problem in this case is equal distribution of the dilution.... The tab is paid by those who did everything right....and the losers gain at their expense.... In deflation....those who did everything right win through lower prices....This is why deflation is good....and inflation "dilution" is bad.... It ain't right.... The govt. is deciding the winners and losers....not the market....