Retire First Newsletter
July 2020 – Download Full PDF
Follow the Money by Doug Allan
Central Banks around the world have been reacting to the virus-led economic meltdown currently taking the world by storm by printing money; an option that was never available during the 1930 depression. Before the US government dropped the gold standard in 1971, the only way to ‘print’ US dollars was to obtain more gold or change the backing ratios. In the 1970’s, after an initial bout of inflationary money supply, the US money supply tended to trend between 2-5% with occasional spurts due to the events of the times. In those days, the funds would go to the main banks, increasing their deposit bases that would be used for future
leveraged loans.
