In a recent speech Canadian billionaire, President and CEO of US $ 9.6 billion Dundee Capital markets sees the end of the US dollar standard. He sees a period of that would be “very inflationary” and where “Things are likely to become quite ugly”.
He believes that there is an excellent chance the “US will soon be determined in a recession” which he believes is probably here
Through history political entities (kings emperors or elected parliamentarians etc..) have “used magic money to acquire things or wage wars. And it just doesn’t work”
So far we are having asset inflation. But eventually like Mr. Goodman, I share the view that we will transition to "stagflation". The rest will rely on how the feedback loop mechanism between political actions and market responses and vice versa. (hat tip Zero hedge)
No comments:
Post a Comment