Well 2010 was not hugely inflationary. But I think Hugh, as we all did, underestimated the Feds appetite for QE, and probably didn't expect the current spike in certain commodities. You can't predict revolution in the Arab world, but you could predict the Fed's brazen incompetence. You win some, you lose some. Thus is the nature of the hedge. I'm sure HH wins more than he loses.
Yes, that's what I mean. Do you think workers will accept a deal where they earn 2-3 times more salary but if things go wrong, then they will have to work for negative equity. I mean if the company loses money, they lose 1000-2000 dollars a month while they are working because they are also assuming the risks.
It's not like I disagree with you on the fact that most of our economies are phony. And it's not like I disagree with you on the fact that having an economy of only shops makes no sense. I just wanted to point that working, assuming responsibilities and assuming risks are very important for the development of wealth. B/c if we take "only" your vision we will start to develop communism
Services may have value, but they do not create Wealth.
Fair enough in a Fiat system, where wealth can be 'created' out of thin air by the BoE or the Federal reserve printing money at ratio quantities, the profit made on the interest paid is 'wealth', but it is only illusory wealth.
Eventually the debt becomes larger than the 'wealth' created & the currency has to be discarded OR hyperinflationary measures are taken to devalue all the currency held in the system, thus destroying the 'wealth'.
Well 2010 was not hugely inflationary. But I think Hugh, as we all did, underestimated the Feds appetite for QE, and probably didn't expect the current spike in certain commodities. You can't predict revolution in the Arab world, but you could predict the Fed's brazen incompetence. You win some, you lose some. Thus is the nature of the hedge. I'm sure HH wins more than he loses.
Maino88 10 months ago
@gauharjk Biggest deflation for 60 years doesn't = mega deflation?
And 2010 wasn't exactly a hyperinflationary year.
People will go on predicting hyperinflation and the rest of us will continue to make money out of their stupidity.
Myndir 11 months ago
Hugh Hendry's predicted Mega Deflation never came. :(
How could he underestimate the US Federal Reserve and Trillions of Dollars of Quantity easing?!
gauharjk 1 year ago
well ts 1 year on and its still a possibility.
dikkydoo1 1 year ago
Any investment is speculative.
bdc03 2 years ago
Speculators create value by increasing liquidity and making markets more efficient.
Azbx23 2 years ago
Yes, that's what I mean. Do you think workers will accept a deal where they earn 2-3 times more salary but if things go wrong, then they will have to work for negative equity. I mean if the company loses money, they lose 1000-2000 dollars a month while they are working because they are also assuming the risks.
madridisinSpain 2 years ago
I'm an anarcho-syndicalist, not a communist.
Anarcho-syndicalism is a mix of worker owned industries freely associating with small scale sole traders (capitalists with a small 'c').
CapitalistHolocaust 2 years ago
It's not like I disagree with you on the fact that most of our economies are phony. And it's not like I disagree with you on the fact that having an economy of only shops makes no sense. I just wanted to point that working, assuming responsibilities and assuming risks are very important for the development of wealth. B/c if we take "only" your vision we will start to develop communism
madridisinSpain 2 years ago
Services may have value, but they do not create Wealth.
Fair enough in a Fiat system, where wealth can be 'created' out of thin air by the BoE or the Federal reserve printing money at ratio quantities, the profit made on the interest paid is 'wealth', but it is only illusory wealth.
Eventually the debt becomes larger than the 'wealth' created & the currency has to be discarded OR hyperinflationary measures are taken to devalue all the currency held in the system, thus destroying the 'wealth'.
CapitalistHolocaust 2 years ago