In order to ‘squelch’ the push in prices, the Riksbank is suggesting that they are willing to ‘give up’ some growth reflation. The latter seems a near certainty in an environment of rising short-rates and an appreciating currency, a problematic combination given that domestic consumption has taken over as the dominant positive contributor to GDP growth, replacing the export sector, which continues to CONTRACT on a relative basis.

Simply, the intensified debasement of paper currencies is CLEARLY evident in the chart seen on the previous page, which reveal a CONTINUING secular bull market in the ‘value’ of Gold relative to the SEK, with Krona-Gold at a new all-time monthly closing high, and, as noted below, we see the SAME thing in Ringgit Gold, which also sits at a new all-time monthly closing high this morning, amid the decision by Bank Negara to leave rates unchanged.



We remain bullish on bullion from a secular macro-monetary perspective.