The modern debasement trade involves investors moving away from fiat currencies, such as the dollar, in favour of "harder" assets that provide safety from the risk of rampant inflation.
The trade – a hot topic in the markets this month – is being driven by anxiety that governments will not, or cannot, rein in their borrowing by cutting spending and raising taxes. The concern is that politicians may take control of their central banks, allowing them to run persistently high deficits and prioritise debt financing over price stability...
