The Experiment

Austrian economists feel really bad about the money expansion most of the 1st World is practicing. It's a new experiment. It's clear that if only one country expands its monetary base, it will debase its currency against the rest. But if all of the main ones do it at the same time, is it possible to minimize the negative consequences for them?

The World's GDP is formed by 22.8% European Union, 21.8% USA, 11.5% China, and 8% Japan, as the main players. If we just add EU, US, and Japan, the result represents HALF OF THE WORLD'S GDP (52.6%). These 3 are actively involved in monetary expansion, with their Central Banks perfectly coordinated. Plus, there is another group which has no intention in having problems with the above (Switzerland, Australia, Canada, Norway...).

At the end, nobody is solving the problems, but changing the allocation of wealth in favor of the ones who control the money expansion procedure. This expansion is asymmetric and benefits debt holders and punishes savers from micro and macro point of view.

If an investor understands what is happening, he'll know where to place his investments for the long run.