Entry Submitted Anonymously at 9:32 AM EDT on September 28, 2016
With the massive wealth about to be bestowed on humanity, the velocity of money will certainly be increasing. This means, that the general population of the planet will eventually end up with the new prosperity package and global collateral funds. In turn will driving the global velocity of money higher. Money is like sunlight and water for living plants. The more money, the more projects and things get built and the economy grows.
Everyone is going to want a new car, a new house, new clothes and new widgits. Demand will outstrip supply in the short run driving prices up. Eventually, plants will gear up to manufacture enough widgits to meet demand. How are the BRICS nations, IMF, World Bank etc planing to control inflation?
Unless....now bear with me.
Bloomberg News correlated with Jim Sinclair., the noted gold bug, that if the Yuan actually went gold backed, that the valuation of gold would be $60,000/oz.
What if, the valuation of gold suddenly dropped back to say $500 because China and BRICS revealed massive inventories of Gold? We have all heard of these massive gold vaults that are yet unconfirmed. What if the 209 nations of the world agreed by treaty to set the price of raw materials and limiting output of resources so as to protect the planet from environmental destruction? Wouldn't this fit with the Climate Change agreement? The effect would be to fix raw material prices at a low rate while protecting the environment from strip mining and clear cutting of forests.
In the short run, demand would be greater than supply causing inflation in certain markets. However, pricing could be largely controlled through raw material pricing. The velocity of money will not suddenly increase because these massive funds are given to 20-30 million people while the global population is 7 billion. It will take time, but to be sure, the funds will eventually reach everyone on the planet. The rate at which funds are distributed to the population are regulated by the banks through humanitarian and infrastructure projects.
This is just speculation on my part. Surely the global economists have already thought of everything and could easily confirm or debunk this theory.