Kees de Kort: We are going to lose prosperity due to inflation and sanctions against Russia

In the coming years, our prosperity will decline due to high inflation and the negative effects of economic sanctions against Russia. That's what stock market commentator and macroeconomist Kees de Kort says in an interview with Holland Gold. He does not yet foresee food shortages as a result of the war in Ukraine, but fears that food prices will rise sharply in the near future. That's annoying for people with low incomes, but still a lot More problematic for the poorer countries in the world.

Kees de Kort expects that Western sanctions against Russia will have major consequences. The sanctions not only expose the double standards of the Western world, they also undermine confidence in the monetary system. Freezing Russia's foreign exchange reserves will also give other countries pause for thought, for example China which has more than $3 trillion in dollar reserves. Many countries outside the Western world will now wonder how safe their dollar reserves still are. Confidence in the money system has been fundamentally affected as a result, according to the macroeconomist. The IMF also Warned this week that the sanctions could undermine the dollar's dominance.

According to de Kort, this will ultimately lead to a greater division in the world, with the West on one side and the emerging economies on the other. Several Asian countries have already indicated that they simply want to continue trading with Russia. These countries will form a new economic bloc and may pay each other in other currencies. Will gold play a significant role in this again? De Kort questions this. 

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Kees de Kort on scarcity, hoarding, inflation and the future of the West

This contribution comes from Geotrendlines

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On behalf of Holland Gold, Paul Buitink and Joris Beemsterboer interview various economists and experts in the field of macroeconomics. The aim of the podcast is to provide the viewer with a better picture and guidance in an increasingly rapidly changing macroeconomic and monetary landscape. Click here  to subscribe.