How today's inflationary environment is similar and different from the great inflation of the 1970s. What are the best assets to protect your portfolio if the next great inflation is here. Topics covered include: Show Notes A Complete Guide to Understanding and Protecting Against Inflation—Money For The Rest of Us Great Inflation 2.0? Lessons from the 1970s by Simon Macadam—Capital Economics When it comes to inflation, how much fortitude does the Fed have? by Sebastion … [Read more...]
338: The National Debt, Inflation, and the U.S. Dollar—What Could Go Wrong?
With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar? Topics covered include: Show Notes Where Did Americans Move in 2020? by Janelle Cammenga—Tax Foundation Velocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. Louis Federal Surplus or Deficit [-] as Percent of Gross Domestic Product (FYFSGDA188S) Chart—Federal Reserve Bank of St. Louis How the CPI … [Read more...]
336 Plus: A Simple Money Supply, Money Creation Analogy
In Plus Episode 336 for the week of March 27, 2021, we discuss some new site additions for Plus members. We also explore an analogy to explain under what circumstances the money supply and purchasing power increase and under what circumstances they don't. We use the analogy to explain what is happening currently and under what circumstances it could lead to higher inflation. Finally, we review why Hoisington Investment Management Company believes inflation will stay low and interest … [Read more...]
336: Own What Is Real
There has never been this much money in the world. Now is the time to own real property. Topics covered include: Show Notes The Power of Gold: The History of an Obsession by Peter L. Bernstein IRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue Service Legal Tender Status—U.S. Department of the Treasury India to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—Reuters Executive Order 6102—Requiring Gold … [Read more...]
334 Plus: A New Inflation ETF, Inverse ETFs, and Excess CAPE Yields
In Plus Episode 334 for the week of March 13, 2021, we analyze the Horizon Kinetics Inflation Beneficiaries ETF (INFL) and how it seeks to protect against inflation including holding royalty trusts. We look at how inverse ETFs work and under what circumstances might they be used. Finally, we analyze earnings yields relative to bond yields including the Excess CAPE Yield, and what conclusions can we draw when stock earnings yields are higher than bond yields and vice versa. 334 … [Read more...]
326: The New Math of Retirement Spending and Investing
How should individuals invest and spend in retirement with interest rates so low, stock valuations high, and inflation uncertain. Why retirement managed payout funds and income replacement funds failed. Topics covered include: How managed payout and income replacement funds compare to immediate annuitiesWhy Vanguard and Fidelity changed the objective of their retiree focused income replacement and managed payout fundsHow fixed annuities workHow retirees should combine annuities with … [Read more...]
316: Paper, Rocks, or Digits—What Makes the Best Money
What are the elements of a successful monetary system. Topics covered include: Show Notes The island of stone money : Uap of the Carolines by William Henry Furness The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison by Ben Bernanke and Harold James The history (and future) of inflation ... by Jim Reid, Craig Nicol, Nick Burns, and Sahil Mahtani—Deutsche Bank Money: The True Story of a Made-Up Thing by Jacob … [Read more...]
312: What the Federal Reserve’s New Policies Mean For Your Finances
The Federal Reserve just updated its policy tools. What impact could that have on inflation, interest rates and your investments. Topics covered include: Why is the Federal Reserve more transparent in its communication than it used to be.What are the Federal Reserve's Congressionally mandated goals.What are four economic developments that has caused lower inflation and motivated the Fed to adjust its strategy for achieving its goals.Why inflation could be higher than the Fed's 2% … [Read more...]
309: Investments to Fight Financial Repression
What are some investments that can generate a cash yield greater than inflation in an era when central bank policies keep government bond yields lower than the inflation rate. Topics covered include: How low are interest rates around the worldWhat have inflation rates been and what causes inflation and deflationWhat is financial impressionWhy are central banks keeping short-term interest rates so lowWhat determines interest ratesHow I-bonds workWhy active bond mutual funds can be … [Read more...]
287: What Causes Hyperinflation and How To Prepare For It
What factors lead to hyperinflation, why it is so devastating, how hyperinflation can be overcome, and what can individuals do to be prepared for hyperinflation. Topics covered include: What causes inflation and how do central banks manage it.How the causes of hyperinflation differ from more normal levels of inflation.What is the biggest challenge of living in a country with hyperinflation.How Zimbabwe and other countries were able to overcome hyperinflation and how Venezuela is slowly … [Read more...]
