Odd Lots Hugh Hendry On Why The World Still Can't Get Enough Dollar Assets
Mar 31, 2022
Hugh Hendry, a former hedge fund manager and contrarian thinker now managing luxury properties in St. Barts, offers a unique perspective on the world economy. He discusses Europe's energy missteps and China's real estate woes while arguing that demand for dollar assets remains robust. Hendry critiques the financial forecasting landscape, highlights the complexities of modern trading, and reflects on the U.S.'s historical role as a global stabilizer. With insights into corporate withdrawals from Russia and market speculation, he urges adaptability in today's economic climate.
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Misunderstanding Money
- Few understand money, including economists, hedge fund managers, bankers, and the Federal Reserve.
- Misunderstanding money leads to prejudice and poor decisions, especially during times of crisis.
Money Creation
- Central banks create "laundromat tokens," not real money, through actions like quantitative easing.
- Real money creation happens through private sector lending, which has been weak since 2008.
Conservative Banking
- Banks, burned by the 2008 crisis, remain profoundly conservative.
- This conservatism drives investment into perceived "no-risk" businesses, like tech giants, pushing their valuations high.