Alk Chart, page-2205

The attached article from Forbes magazine is calling for a return to the gold standard.

https://www.forbes.com/sites/steveforbes/2024/05/21/the-signs-are-there-the-gold-standard-is-coming-back/?sh=1f128347650a

In my considered opinion the probability of returning to the gold standard is extremely low ie less than 0.000001%. ie it is not going to happen.

Some the facts in the article are incorrect about inflation. There was very strong inflation afterWorld 1 eg 20% pa.

There was also strong inflation after World 2 as well from late 1940s to end of 1960s - similar to rates of the past 2-3 years. Interest rates were held relatively low ie rates were negative ie below inflation. Authorities were able to reduce debt to GDP ratios of well over 100% to much lower levels eg 50% during this period ie inflated away the debt.

The gold standard operated duriNg both the above periods.

Inflation really took off during the 1970s due to larger budget deficits and huge increases in the price of oil from 2 oil shocks after the USA went off the gold standard in 1971.

All this inflation particularly during the 1970s, devalued fiat currencies substantially resulting in a flight into hard assets ie commodities and property.

The only way many countries are going to reduce their current very or extremely high debt levels from 100%+ of GDP is to inflate the debt away through inflation which will be very good for hard assets especially gold.