Inflation? Pay No Attention To The Money Behind The Curtain

Corporate Heads warn of substantial price increases coming

Biden: "Intelligent Economists not worried about inflation"

China's massive credit market: The carry trade from hades

Resources Mentioned In Today's Show:

Does Cheating Pay? The Effect of Electoral Misconduct on Party Systems

Election Fraud: Detecting and Deterring Electoral Manipulation

Inflation? Pay No Attention To The Money Behind The Curtain

August 3, 2021

“The reality is, a lax approach to risk management is all too common amongst individual investors because everybody’s riding the wave and nobody’s second guessing gains. That would seem like an emotional or psychological impossibility. I think if you’re making money, you want to continue to make money. Very few people are willing to say, “It’s been a good day, it’s been a good week, it’s been a good quarter, it’s been a good decade. Maybe I should adjust slightly.” — David McAlvany

Kevin: Welcome to the McAlvany Weekly Commentary. I’m Kevin Orrick, along with David McAlvany.

David, last week you were attending a conference that you’ve been asked to speak for since 2015. I know that you’ve attended that conference in Singapore, in South Africa, in San Mortiz, Switzerland, and California one time. Jerusalem was supposed to be last year but they canceled the conference based on the fact that COVID was so prevalent. This year was in Vale, and I know the topic of discussion was really forefront on inflation.

David: Well, certainly that was my topic, and they covered a lot of different bases in terms of social issues that need addressing and economic considerations. So, yeah, because inflation is something of interest for me and the markets, these are things they asked for me to give comment on. It was a great gathering, and I’m always impressed by the attendees and the quality of dialogue that occurs. Declan, my oldest son, has been going to these with me as often as possible since 2016. He was 10 years old at his first conference, and even had some comment and contribution to make then.

Kevin: And now he’s driving.

David: It’s good to see him.

Kevin: Yeah, now he’s driving.

David: Yes.

Kevin: Well, on that subject, last week, while you were at that conference talking, we wanted to play for the listeners two interviews that had to do with the deconstruction of globalism and inflation with Otmar Issing and Harold James. We wanted to do that because sometimes it’s important, Dave, to go back and say, “Okay, what were people saying in 2015 or 2011? What were people saying back in the year 2000 maybe about elections?” And I want to talk about that today because context is interesting. You can see how going back and listening to things from the past can actually enlighten you for current day issues.

David: Certainly. Yeah. Otmar brings a voice to the present conversation which remains important. You’re right. Last week, we wanted to feature an economist with a history of guiding the Bundesbank and the European Central Bank through long stretches, and who, in the present, has concerns that global inflation has far more to do with the structural shifts and the significant increases in money supply, in addition to the supply constraints which are all around us, which he believes, I think we do too, that these will be sorted out with time. But this is sort of in contrast to the White House view that no intelligent economist believes inflation will have a lingering presence.

Kevin: Yeah, so I’d like to hear, while you were preparing for last week’s conference to speak on inflation, what were some of the thoughts that you put into it?

David: Yeah. As I prepared for the conference last week, the distillation of a few ideas on inflation, knowing that the participants would want a view of the financial markets as well. I wanted to include some information that was specific to the U.S.