An interesting observation from SocGen’s Dylan Grice, who in his latest note discusses how currency debasement leads to social debasement:
A similar dynamic seems evident during Europe’s medieval inflations, only now, the confused and vain effort to make sense of the enveloping turmoil saw the blame focus on suspected witches. The following chart shows the UK price index over the period with the incidence of witchcraft trials. Note the peak in trials coinciding with the peak of the price revolution.
Photo: Société Générale
Grice goes on to write that the French Revolution, Weimar Germany, and the fall of the Roman Empire all displayed a similar correlation to that above – as governments lost control of inflation, the people began to turn on each other.
Dylan Grice says he’s more worried now than he’s ever been before. Check out the rest of his latest note here >
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