It has been a while since our last meeting in London. Gillian and I are spending the little time that may be left for us in Lugano.
Since early this year I am in discussion with our banker friends about the risk of inflation and all that goes with it. Being closer to 90 than 80 I have seen and felt what inflation does to people’s savings and the social structure of the countries affected.
Debt levels around the world are at catastrophic heights and some of my friends in the banking world are of the opinion that debt will never be paid back - utter nonsense in my mind. The Federal Reserve Banks of the world are no longer controlled by the people in charge but by politicians who, if they have any knowledge of economics and finance, are scared stiff. Rolling over is the motto of present days because what would happen if interest rates would rise to normal levels is too terrible to imagine.
The G7 15% min. tax is not solving the problem but at least it’s indicating that some people are aware of the enormity of the debt and try to do something about it.
The U.S. inflation figure for May 2021 has been commented by John Authers today - see attachment -; what are your thoughts?
The other and much bigger problem for everything that lives on our planet - I call it ‘spaceship earth’ - is also very much on my radar but we leave that for another day.
Wishing you a pleasant weekend.
Thank you for attached report and article. I hope you are both enjoying the contemplative life in the beauty of Lugano. I’ve been saying for months that we all have to take the economic figures of the 2nd and 3rd quarters with a degree of scepticism. Year over year comparisons are effectively useless when last year represented a shutdown of the entire global economy.Click HERE to subscribe to Fuller Treacy Money Back to top