| Follow Alasdair Macleod here: https://twitter.com/MacleodFinance Follow Paul Buitink here: https://twitter.com/paulbuitink Alasdair Macleod is in favour of limited government but in crises like these it's choosing between economic theory and political reality. Countries used to Keynesian economics will not easily accept Austrian school economics as a driving force. Alasdair believes something like a lockdown could have been done too with government imposing it. Alasdair fears hyperinflation and thinks this time is different and draws historical parallels, for example with John Law. He describes how the financial system was broken before corona. Difference with the Great Financial Crisis that it's now also a supply chain and industrial problem. Alasdair explains the difficulties the US is in now with tax receipts going down and expenses skyrocketing. Will domestic of foreign creditors pull the plug of the dollar? Poor suffer most from inflation says Alasdair and he explains the Cantillon effect. Food prices are already going up. In Germany it took 6 months before the money was completely worthless. Paul looks forward to a world where there will be competing currencies. Alasdair bets on gold. Paul doesn't rule out Bitcoin. The gentlemen end the conversation to talk about how monetary policies have worsened inequality. |
Alasdair has been a celebrated stockbroker and Member of the London Stock Exchange for over four decades. His experience encompasses equity and bond markets, fund management, corporate finance and investment strategy.
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