Print More Money to Avoid Bigger Slump Hendry

Fears about inflation and hyperinflation could create another economic downturn, bigger than the one the world went through, Hugh Hendry, chief investment officer at hedge fund Eclectica, told CNBC Tuesday.

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[recessionlover]

This guy's a genius. Just when you think you've got it all sussed and you think you know what's going to happen next, in he comes with stuff that you never even thought of.

[hellevonequities]

At what point in there does Hendry advocate inflating the money supply? I didn't hear him say that once.

[AnniesEggs]

Since he got more and more media exposure his performance has not been great. 10 years ago he was excellent.

[PoGGiE06]

heh spot on at the end. Ponzi schemes are inflationary initially but ultimately deflationary when they collapse. Since Credit derivatives created a ponzi scheme of course one should expect deflation. Moving the problem onto the gov balance sheet was probably the only way to attempt to tackle the problems which are likely to be *enormous* and QE will be insufficient but has bought/buys time.

[proximo20]

just look at what the BAFE did last week. HUGH was right.

[SilverRose09]

Hyperinflation will be use to get rid of the debt but for that will take a few years.

[thomasst2]

I agree. Just about everyone agrees everything was bud up to unrealistic prices and virtually everything is unaffordable. Businesses were started where there was no sustainable or true demand. Yet no one wants prices to fall to levels that everyone can afford and unprofitable businesses to be liquidated so the economy can continue as normal. Trying to prop up the same unsustainable economic structure with money printing and 0% rates is ridiculous and unconstructive.

[Ntone606]

Whilst I enjoy Hugh's views, and am a believer in deflation myself - the last thing we need are 0% interest rates and money printing. Why not embrace deflation? The sooner we let asset prices completely collapse the sooner we'll hit bottom. Our governments need to understand that recessions are good things, and trying to avoid them leads to the chaos we have today.