David Collum: Hyperinflation Risk Is Higher Now Than Ever

Video Length: 00:53:01

Today's guest is Professor David Collum of Cornell University to review the markets. He explains why he prefers to write about niche topics.

Actual wealth creation involves making life better, and the 1870s to 1940s are a good example. Since the 1940s, wealth creation has become much more gradual. GDP today does not consider inflation or planned obsolescence from cheap consumer goods.

David discusses the discontinuities that occurred in the early 1970s with the ending of the gold standard. The corrections over the past thirty years have not caused investors to change their behavior. The last real corrections occurred back in 1967 and 1981. Investor complacency today can be traced back to Greenspan’s actions in 1987.

He believes we are living in the “Dumbest Bubble in History.” Bubbles tend to be sovereign-backed and usually have a great story behind them. However, today’s bubbles and the recent real estate bubble are not based on anything but the faith in 12 Fed idiots who supposedly have your back.

He always looks for the counter-narrative, which usually means doubting the experts. The media today has been forced to become prostitutes to earn a living. Stories today are there for a reason. It’s all political and meant to move the needle on some topic.

For David, his lack of faith in central banks and concerns around inflation make gold an excellent investment. 2020 taught him that the Fed has no limits. They believe they can add multi-trillion-dollar flows into the system without repercussion.

The guys counting the inflation are lying to us, and true hyperinflation comes from losing faith. The odds of this occurring are increasing due to political instability and uncertainty.

Energy is a good market because there is always a need, but he is betting against many alternative energy ideas. Today, climate science is primarily about money. Wind and solar are not going to replace fossil fuels anytime soon.

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Disclaimer: This material is for discussion purposes only. This is not an offer to buy or sell or subscribe or invest in securities. The information contained herein has been prepared for ...

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