This probably ends how it always ends ...Middle East

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1) Debt and deficits don't matter because of AI

2) We're monetizing

It's hard to believe that in 1971 the US dollar was fully backed by gold. In 50 years it's all come undone, and the currency will inevitably face major devaluation, just like every other currency in history.

If you believe in either of these scenarios, you might invest in the same things. Equities are inherently inflation-protected because companies (at least ones that aren't over-levered) have pricing power. -covid inflationary episode was great for stock markets if AI is transformative, the gains from productivity will be felt far before the costs of unemployment.

Heads I win, tails you lose.

This article was written by Adam Button at www.forexlive.com.

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