Alasdair Macleod: Price Inflation is Only Just Beginning
Alasdair notes the investment management industry is completely ignoring the expansion in money and the resulting inflation. Price increases are the consequence of this expansion of the money supply. We’ve experienced an expansion by 400% in M1; we are in hyperinflationary territory. Further spending on infrastructure using more printed money won’t make this any better.
Interest rates have to rise or the dollar will tank but raising rates too far will make the debt unserviceable. Ever-increasing deficits are simply inevitable in a debt fiat system.
Alasdair believes it’s a mistake to assign a particular number to the term hyperinflation. The U.S. appears on the verge of hyperinflation unless there is a policy change. Policies appear to be worsening and there is a movement away from free markets. Things are going to get a lot worse before they wake up to the problem.
The energy problems in Europe are both Geopolitical and due to climate agendas. The decommissioning of fossil fuel energy sources and overreliance on alternative energy sources is very problematic. In addition, we’re changing demand by promoting electric vehicles. We’re screwing ourselves by doing away with fossil fuels. He notes that much of the supply issues are due to overreliance on just-in-time inventories.
At some point, there will be a shift from crypto towards physical metals. Especially when one considers the number of cryptocurrencies and speculation in that space.
Alasdair questions what the Fed can do once the taper program again undermines financial assets and bond yields start rising. This is not something the Fed wants to see. If the stock markets fall heavily then they will be pressured to resume quantitative easing but that will end up destroying the dollar.
The European banking system is far more statist-minded and just as inflationary when compared with the United States. He explains the impact of negative interest rates and the banking system’s ability to make profits. The policies of the ECB make it difficult for the private sector to function. The Eurozone is one big failing system of governments and banks.
Talking Points From This Episode
- Monetary Expansion, Inflation, and Group Think Policies.
- Energy costs, climate change policies, and geopolitical risks.
- Cryptocurrency risks and the possibility of a shift to metals.
- Basel III & ECB policy contrasted with that of the United States.
Time Stamp References:
0:00 – Intro
0:45 – Inflation Just Starting
11:40 – Defining Hyperinflation
16:45 – Debt & Today’s Economy
20:00 – Krugman? & Inflation
22:30 – Energy & Supply Chains
29:20 – Crypto Backwash
34:50 – Gold/Silver & The COT
38:30 – Golden Cross & Treasuries
40:20 – Basel III Changes
45:45 – ECB Policies
51:40 – China, Russia & Gold
56:45 – China Policy & Gold
59:20 – Upcoming Article
1:00:45 – Wrap Up
Alasdair Macleod is Head of Research for GoldMoney. He is an educator and advocates for sound money thru demystifying finance and economics. His background includes being a stockbroker, banker, and economist.
Alasdair Macleod started his career as a stockbroker in 1970 on the London Stock Exchange. Within nine years, he had risen to become senior partner of his firm.
Subsequently, he held positions at the director level in investment management and worked as a mutual fund manager. Mr. Macleod also worked at a bank in Guernsey as an executive director.
For most of his 40 years in the finance industry, he has been demystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.