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The Implications of Raising Rates
If you have inflation caused by rapid fiscal spending, then really it's pretty hard to get inflation down until you stop that excessive fiscal spending. And so raising rates will squeeze the private sector, but if they're not the ones primarily causing the deficit and causing the money creation, then those higher rates can actually result in even more inflation. So from an investor perspective, there are going to be times, like, say, last year, perhaps part of this year where you want to own safe paper assets. But over the course of a decade, those are likely to lose purchasing power on a structural basis. Instead, you probably want to be in generally harder assets on average, things like bodies,