MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Why inflation? "THEY killed Milton Friedman" (Wealthion)

Edmond
in Other Investing
One of my favorite YT channels is "Wealthion". That channel provides regular, "long format" interviews on all issues macroeconomic. The format allows a fuller expression of theories/hypothesis of the interviewee.

The link below is one of a 2-parter on our current inflation mess, with a Johns Hopkins academic who had previously predicted we would hit 9% inflation in GDP.



Highlights:
- 40% increase in M2 since 2019.
-continued elevated inflation through 2022 & 2023 (albeit declining slowly during this time)
-Milton Freedman - victim of political "cancel culture"
-Why the Fed chronically under-estimates inflation.
-Why some major economies (China, Japan, Switzerland) are NOT experiencing an inflation problem.
-High probability of recession.


Comments

  • CrashCrash
    edited July 2022
    no surprises. he makes sense. what's missing? The REASONS for the huge growth of M2: pandemic relief, to stimulate the economy. Another way to say that: to help PEOPLE. After all is said and done, our systems should SERVE PEOPLE. Yes, the stimulus was way overdone. Now there is a war disrupting the world, too. .....The Poot-brain has begun a new Cold War with the West, as well as a hot war in Ukraine. China is on board with him, and India. Certainly, North Korea, too. African countries are playing both sides of the fence. Some of this inflation will never leave. Everything is gradually or suddenly being re-priced re: supply and demand, because the Russian (and currently the Ukrainian) supply of stuff is drying up. We are once again in a bifurcated world. Look back to the '90s and the soviet collapse. Western countries should never have so smoothly and easily allowed the new Russia to slide into the UN and mainstream world institutions without major reforms. and now we pay the price. It was too tempting, too convenient. And the politicians did the predictable thing: they went for ease and comfort and expediency instead of the more difficult task of expecting Russia to change and reform and even re-work its own institutions as the price for joining the rest of the world's Market Economy and body politic. Now the lack of their basic materials not being sold to Europe is being acutely felt.
  • CrashCrash
    .....And as ever: the intro and outro musical drivel is shockingly loud. I REALLY need THAT.
  • BaluBalu
    At approximately what minute mark does he talk about lack of inflation in Japan and Switzerland? Thanks.
  • CrashCrash
    BaluBalu said:

    At approximately what minute mark does he talk about lack of inflation in Japan and Switzerland? Thanks.

    He simply mentions those places in passing.

Sign In or Register to comment.