Har vært innom Hidden Forces et par ganger, og youtube-kanalen Blockworks Macro
Author of «The Solid Ground», an independently published global Macro investment report, and of the book «Anatomy of the Bear». He was a Consultant Global Macro Strategist with CLSA Asia-Pacific Markets for almost twenty years. In 2013, Russell was elected as a fellow of the CFA Institute of the UK. In 2014, Russell Established «The Library Of Mistakes». The Library is a charitable venture and a first class financial history resource for anyone wishing to learn the lessons of the past as a guide to our financial future. He is also the Keeper of «The Library of Mistakes».
Debt to GDP rate is record high and we are now going to need higher inflation. Out debt has to be inflated away, like after WWII.
We permanently have to keep inflation above discount rent. Economists will say «That’s impossible. Lenders will demand compensation for inflation risk.» But sometimes we have moved away from a market economy, and governments have imposed something else. This can lead to misallocation of capital, where pension funds invest in old master paintings, but it would be nice if the invested in productive businesses that hopefully employ people as well.
If you misallocate capital you get stagflasion, not right away eventually. This happened for the first time in 1966. This starts as a warm bath. Wages go up, mortgage rates don’t, and people rather enjoy it. Therefore governments must steer credit towards the sectors where it wants to see increased activity.