There is a lot of talk these days about deflation in China. We know that deflation is the killer of debt-based fiat money and that the globally exploding mountain of debt has long been insolvent. So the signs are pointing to a storm and an expansion of the money supply to keep the growing debt afloat! A dysfunctional currency area such as the eurozone could not survive 24 hours without control of the yield curve and secret or open monetization of government debt (we already crossed that chasm of moral hazard long time ago).

If we look back briefly to the 1970s, which serve as an excellent anchor, we can say that we are following this path almost meticulously and that we are most likely - the past is of course never a guarantee for the future - facing a second, perhaps even more severe, wave of inflation. Portfolio allocation and inflation hedging are everything as we enter the era of commodity repricing.

And always remember: politicians really do have everything in mind, but never the preservation of Your purchasing power!