The gold price's relationship to inflation is all over the map on any period less than 20 years. Dalio's premise is that gold is a currency and currencies go down vs other currencies when you print more of them. In a deleveraging governments create more currency in order to ease the debt reduction process. This causes their currency to go down against gold. Of course as we've seen these things changes do not happen in a smooth, straight line (trying to keep a straight face).
These WRONG WAY PUMPERS of all things gold, silver, and USELESS have been spent YEARS providing PHONY PUMPS of these DYING and WORTHLESS golds and silvers, primarily in service to the gold/silver CALL WRITERS at the oily banks and funds.
I say WORTHLESS since ALL golds and silvers FAILED completely as "flight to safety" investments during ALL recent financial storms and international political crises----and that means they NO longer have one PENNY of genuine value today, NOT ONE PENNY!!!!
IGNORE IGNORE IGNORE the WRONG WAY gold/silver PUMP SCAMMERS!
So you say a borrower of gold can loan it again at a profit within HSBC vault. How so? The borrower will need to pay market interest rates to whoever is conducting this fraud. Are you saying they can re lend the gold at a higher interest rate? Who is stupid enough to pay more than market interest other than you?
So you still have yet to propose how a borrower can make a profit without selling gold. And stop saying hypothecate You don't know what it means
Id say 10% is a little rich based on inflation to date
Deleveraging is deflationary.
I think Dalio agrees, right?
Because of massive USA debt, the debt will increase faster as the USA will owe more money from increased interest obligations on its debt.
Eventually, this will feed more into itself and result in hyperinflation and severe economic problems.
.....google - the CoGwriter - see link....Interest-rates-to-rise-short-and-long-term-ramifications