Mish in the Arena with Hedgeye: Hiding Out in Gold and Treasuries

-edited

I joined Daryl Jones for the 25th episode of Hedgeye | In The Arena.

I had the pleasure of chatting with Hedgeye's Daryl Jones last week on a number of topics.

Here's a link to the Hedgeye page One-on-One with Mish Shedlock: "I Would Hide Out in Gold & Treasuries" where you can play or download the podcast. It's about 52 minutes long.

Topics

  1. Inflation or Deflation Debate: There is a lot of hidden inflation
  2. Favorite Asset Classes: Gold and Treasuries
  3. Good Reason to Expect Recession: Greenspan doesn't
  4. Rate Cut or Hike What's Next: It's clear what they want to do
  5. Central Bank Independence: I would abolish the Fed in a second
  6. US election.

To spill the beans a bit, the inflation has primarily been in assets.

I propose another deflationary bust is up next.

Mike "Mish" Shedlock

Comments (15)
No. 1-5
Bam_Man
Bam_Man

New highs daily in the stock market, miraculously produced by 1.0% GDP growth. Total stock market capitalization is now growing 23 times faster than the underlying economy. Surreal, unsustainable asset hyper-inflation. Resolution will be BIBLICAL.

bradw2k
bradw2k

Mish, do you see a use case for splitting some safety money out into silver rather than gold?

Tony Bennett
Tony Bennett

NYFRB out with Q3 household debt update today:

"The CMD’s latest Quarterly Report on Household Debt and Credit reveals that total household debt increased by $92 billion, or 0.7 percent, to $13.95 trillion in the third quarter of 2019. It was the twenty-first consecutive quarterly increase, and the total is now $1.3 trillion higher, in nominal terms, than the previous peak of $12.68 trillion in the third quarter of 2008."

Mish
Mish

Editor

Bartering with gold and silver is highly unlikely in the US in the absence of a return to the gold standard where gold is routinely used.

There are occasional transactions now, at coin dealers swapping one coin for another +- cash back, or perhaps an occasional trading a silver dollar for some other object or service, but those so minor as to be irrelevant.

I see nothing more than that.

Scooot
Scooot

The blogg is an interesting listen. Aren't US Treasuries and other bond markets also in a huge bubble caused by Quantatative Easing Purchases? Supporting low yields by purchasing bonds with printed money seems like a disaster waiting to happen to me? Just a question of when? So if bonds and equities are bubbles waiting to burst, and gold is very volatile, there isn't an obvious safe haven. Maybe this is why the bubbles are lasting longer than anyone expected? Who knows!