Strong Source Episode 29 with Alfonso Peccatiello
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Nov 21, 2025 Alfonso Peccatiello, Founder and CIO of Palinuro Capital, masterfully explains the intricacies of the global dollar system. He delves into how commodities priced in USD compel countries to invest in U.S. Treasuries and discusses the creation of money through government deficits and private leverage. Alfonso highlights why the dollar remains dominant despite frequent predictions of its decline and examines how inflation impacts younger generations. His insights into the complexities of macroeconomics are both clear and compelling.
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From ING To Independent Macro Research
- Alfonso left ING after rising to head of investments at ING Germany to start his macro research business.
- He grew the business via LinkedIn and podcasts and now serves large hedge funds.
Two Distinct Kinds Of Money
- Two forms of money exist: inflationary money (bank deposits) and bank reserves usable only by commercial banks.
- QE increases reserves but doesn't automatically increase spendable money in the real economy.
Deficits And Leverage Create Spendable Money
- Government deficits and private-sector leverage are the real engines of creating spendable inflationary money.
- QE is not the main driver of inflation; deficits and lending increase deposit money that fuels demand.
