The complacency bubble
“I actually think the Fed has triggered hyperinflation, but it’s not in consumer goods. It’s in asset prices and luxury goods. If a company’s share price increases without an underlying increase in its profits, we call it multiple expansion, but in reality, it’s inflation. With QE, central bankers put vast sums of money into the hands of financial investors, who in turn went and bought financial assets and luxury goods driving up the prices.”
USAGOLD note: And where, pray tell, will this vast pool of capital go now that the underpinnings to the stock and bond market values have begun to show signs of fraying? A strong line-up of analysts – including Jim Rickards, Simon Mikhailovich (quoted above) and Heinz Blasnik – join Ronnie Stoferle to delve into the implications for gold and the global economy.