Taps Coogan – January 29th, 2021

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We’ve featured many articles here over the last year or two making the case for or against a long term shift to secular inflation. While the question is not particularly relevant to markets or the economy on a day to day basis, it is arguably the single most important question facing the global economy on a long term basis.

Why? The valuation justification for ever-rising financial asset prices and the mechanism allowing ever-rising debt levels across nearly every segment of the global economy are both predicated on the assumption of permanently accomodative monetary and fiscal policy. That assumption is in turn predicated on stubbornly low inflation. With debt and asset prices at such extreme levels relative to the economy, a return of secular inflation is likely the greatest existential threat to the global economy.

Within that context, Professor Russell Napier, author of The Solid Ground investment report, recently spoke with Macro Voice’s Erik Townsend about his thesis that the world is headed for a trend of rising secular inflation. The wide ranging and highly informative discussion with Russell Napier’s is among the best arguments that I’ve come across making the case that a shift to secular inflation is going to happen in the next few years.

Enjoy the full discussion below

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