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His audiences know him as THE ”Inflation Guy.” In the inflation markets he is known as a pioneer. He is considered as the Expert to the experts in the world of inflation markets where true expertise is hard to find. In this podcast the Inflation Guy talks about the hidden tax, the insidious assault on your wealth, and how to defend your money. Have a question? Email InflationGuy@enduringinvestments.com
Episodes
Wednesday May 17, 2023
Wednesday May 17, 2023
This week, the Inflation Guy brings another special guest on the set.
Andy Fately is a veteran of more than 40 years in the foreign exchange markets, trading spot, forwards and options as well as running businesses for major US and international commercial and investment banks. He is known as the FX Poet (https://fxpoetry.com/about-2/), but really focused on creating solutions for risk managers for problems as they arise.
Andy and the Inflation Guy tackle the question that naturally follows from headlines like these from earlier this year (links take you to the story):
- Russia embracing the Chinese yuan for much of its global trade
- Saudi Arabia considering invoicing oil exports to China in yuan
- France buying gas from China in yuan
- Brazil and China agreeing to ditch the dollar for bilateral trade
- BRICS countries planning to develop a new reserve currency
- Kenya promising to ditch the dollar for oil purchases
- ASEAN members discussing dropping the dollar for cross-border payments
- India settling some trade in rupees
Should US citizens, or dollar-users in general, be concerned that the sun may be setting on the US Dollar? How would this happen, and is it likely to happen? Andy Fately and the Inflation Guy combine their knowledge (which, to be fair, mostly belongs to Andy) and push back a bit on the 'bear porn' disaster cases by walking through the actual mechanics that would be involved in a de-dollarization.
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Comments (4)
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Two thumbs up!
Monday May 22, 2023
Publicly they treat it like a pet rock, but they continue to stockpile it without much fanfare. Not that I’d expect them to endorse gold, since holding it is essentially a vote of no confidence in their system of fiat currencies and sovereign debt instruments. So either way I don’t think you go wrong with gold. Not unless Powell really is the second coming of Volcker and we are at the dawn of a new era of austerity and fiscal discipline. Let’s just say I’m not holding my breath.
Monday May 22, 2023
Presently only a small percentage of people own gold. The higher it goes, the more people will be interested, the more demand will grow. That doesn’t take us to insane levels, but it could be enough to make levered plays like gold miners/royalties pay off handsomely. Worst case scenario something happens that causes the dollar system to break down (war? another pandemic? profligate spending?). Seems like this tail risk is why central banks are buying gold in record amounts.
Monday May 22, 2023
Enjoyed the discussion. Now as a goldbug, let me make the case for gold whether the world de-dollarizes or not. Best case scenario, the dollar continues to be the cleanest dirty shirt in the hamper, leaving us with the dollar as global reserve currency because TINA. Yet, we will likely be running $1T+ annual deficits for the foreseeable future, and inflation may well stay in the 3-4% range. People who never gave a second thought to inflation will be looking for ways to protect their savings.
Monday May 22, 2023
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