In response to the pandemic, governments around the world have been printing money to the tune of approximately $15 trillion.

But the problem with spending money into existence is that it leads to inflation. And once inflation gains traction, will our central bank be able to control it?

What can we do as investors do to survive a sustained period of hyperinflation?

Graham Summer is the Chief Strategist at investment advisory firm Strategic Impact and author of The Everything Bubble: The Endgame for Central Bank Policy. In the last 15 years, Graham has built a reputation as a highly sought-after investment strategist and expert on the Federal Reserve, and he shares his insights daily through the eNewsletter Money & Crisis.

On this episode of The Wiggin Sessions, Graham joins me to discuss the Fed leadership’s view that policymakers should steer the economy and share his take that they’re looking for politically sound reasons to keep printing money.

Graham explains how the combination of supply shock and the pandemic stimulus are already triggering inflation, describing why the stock market loves inflation (at first) and what the central bank will do when faced with the decision to either defend bonds or strengthen the dollar.

Listen in for Graham’s insight on investing in aggressive-growth companies and learn how he leverages an understanding of politics and Fed policy to help clients develop a winning investment strategy for the emerging economic environment.

Key Takeaways

Graham’s take on the government response to the pandemic and how it was influenced by politics

The Fed leadership’s view that policymakers should steer the economy and Graham’s view that they’re looking for a politically sound reason to keep printing money

Why Graham predicts a stagflation event similar to what happened in the 1970’s in our near future

What will prevent the US from experiencing an economic collapse like that of the Weimar Republic after WWI

How sending stimulus checks directly to consumers combined with supply shock is likely to trigger a nasty round of inflation in the next 12 to 18 months

What we mean by ‘velocity of money’ and Graham’s argument against the idea that velocity aligns with inflation

Why Graham sees the pandemic stimulus as an ethically contentious issue and how it differs from the bailouts in 2008

How stocks love inflation initially—and when things will start to get ugly and trigger a prolonged, multiyear bear market  

The question around when the Fed will finally cross the Rubicon and why they’re likely to choose defending bonds over raising rates to strengthen the dollar

How Graham formulates an investment strategy and why he’s looking at mining stocks, aggressive-growth companies and cloud-based technologies right now

How Strategic Impact analyzes how markets will react to policy decisions and helps clients deploy capital accordingly

Connect with Graham Summers

Strategic Impact

Money & Crisis

Connect with Addison Wiggin

Consilience Financial

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Resources

The Everything Bubble: The Endgame of Central Bank Policy by Graham Summers

Jervois Mining

Twilio