For one thing, it is likely to be causing a flight into gold. But unless gold is remonetised and mining output is stepped up sharply, that trend could lead to deflation and limited economic growth. So a retreat to sustainable safety will not be achieved via that route.
The fact seems to be that the world – or at least the Western world – has lost its compass or common sense and is heading down a path towards economic and moral anarchy unless it abandons its irresponsible obsession with new, faddish and often highly risky forms of finance.
In the world of finance, control is increasingly being separated from ownership of assets. Gone are the days when shareholders felt they genuinely owned part of the companies in which they bought stocks, shares and bonds.
