Since coming off the Gold standard in 1971, there has been massive credit expansion, as the monetary supply has been untethered from any constrained resources. This has lead to asset price inflation, wealth inequality and a massive debt load that is a massive drag on real economic growth. Covid has pushed forward the calls for…Read More
From the US-China trade war to COVID highlighting the fragility of just in time supply chains, many people are calling for the end to globalisation and the nationalizing or at least regionalizing of supply chains. Consensus is that this move would be at least mildy inflationary, as new factories have to be built, in higher…Read More
We are coming to the end of the biggest credit expansion in history. While the expansion of credit has been devaluing for the USD and inflationary in terms of policy action, reflected in higher food, housing, and other asset prices, the net force of technology, too much debt and aging demographics is ultimately deflationary in…Read More
Books from “A Random Walk Down Walk Street” to “The Bare Foot Investor”, all expound the benefits of passive index investing. It is true that a superficial look at historical data for the S&P500 has shown that it has outperformed most active managers. However, a deeper look at other international indices as well as the…Read More
Inflation is always and everywhere a monetary phenomenon” Milton Friedman The historical technical definition of inflation is an increase in the money supply. However, the vast majority of use in both colloquial and academic use is an increase in prices. However even this definition is very broad and can refer to a wide number of phenomena, and these…Read More