Jonathan Davis: We Are Entering the Age of Inflation
Tom welcomes back economist and Wealth Advisor Jonathan Davis to the show.
Jonathan discusses why inflation is heading to double-digits and why it is here to stay. Even with fraudulent methods of calculating inflation, it’s still running hot. Shadowstats is indicating more than ten percent.
The Fed is owned by commercial banks and they want to raise asset prices. Don’t fight the Fed is something that needs to be understood. Once everyone is in the markets then the banks will pull the plug. Politicians and bankers are not going to default or cancel debts, they will go with the politically viable route which is to inflate the debt away. Therefore, we will have inflation for many years.
Jonathan discusses the ranges to expect for bonds and why we will see limits of about four percent. Expects this to continue for the next ten to twenty years as all currencies are being debased. Eventually, the dollar will be taken over by a central bank digital currency.
He doesn’t buy into the narrative of an imminent market crash and feels that many equities are undervalued. The smart money understands that tapering isn’t going to happen.
He makes a good case for the energy markets to move higher. He notes that ESG and green energy are only benefiting the East and particularly Russia.
Jonathan is excited about uranium’s potential particularly since Sprott has become involved.
Watch what the smart money is doing and we should probably believe what the Fed is saying. He cautions that investors should avoid China for many reasons including recent events in Hong Kong. Investors’ money could become trapped in the Yuan.
Time Stamp References:
0:00 – Introduction
0:34 – Inflationary Change
10:08 – Inflation Trends
14:29 – Currency Debasement
21:32 – Banks & Busts
24:10 – Bear Narratives
27:12 – Nasdaq 100 Chart
30:20 – Energy Predictions
37:28 – ESG & Green Energy
40:25 – Gold Outlook
47:48 – Sentiment & Gold
50:15 – Sprott Uranium
54:26 – Uranium Plays
58:36 – Wrap Up
Talking Points From This Episode
- Why inflation is here to stay.
- The Fed’s real plans.
- Bonds, currency debasement, and gold.
- Energy markets and uranium.
Guest Links:
Website: https://jonathandaviswm.com
Twitter: https://twitter.com/j0nathandavis
Twitter: https://twitter.com/boomsbusts
Jonathan Davis BA MBA FCII FPFS, Chartered Financial Planner, is the Wealth Adviser. He is a former Chairman of the London Region of The Institute of Financial Planning (now Chartered Wealth Management Institute).
Jonathan has been delivering wealth advice since 1987. Johnathan established the Jonathan Davis Wealth Management in January 2007, where they provide a niche Wealth Management advising a small number of clients. He established this firm in January 2007.
He has over 1000 appearances in the press, radio, and TV. He is often asked to comment on financial issues.