The conclusion of the Bridgewater Fund is that in 2020, we are at the end of an ultra-long currency cycle that lasts about 80 years. The continued global monetary easing in the future is a foregone conclusion.
We extended our horizons to 1944, 76 years ago. 1944 is the starting point of our current currency cycle. This year, the Bretton Woods system was established.
The establishment of dollar hegemony has undergone two major changes in the currency cycle from 1944 to the present. The first is that commodity currency became legal tender in 1971, and the second is after 2008.
Central banks of various countries have begun frequent quantitative easing. These two changes are destined to print more and more money after 2020. Let's look at the first change.
Commodity currency becomes legal tender, and commodity currency uses real gold and silver as money. Legal tender means that the law stipulates that paper currency is money, so everyone uses paper as money.
Commodity currency and legal tender are two forms of currency, and these two forms have been reincarnated in history. The beginning of every currency cycle is gold and silver as currency.