Submitted by Pater Tenebrarum – The Acting Man Blog
The Battle Between Inflationary and Deflationary Forces
At the meeting of the Incrementum Fund’s Advisory Board in early October, there was once again a wide-ranging amd in-depth discussion of the economy and financial markets in light of the increasingly evident tensions between the forces of deflation and the countervailing inflationary measures taken by central bankers all over the world.
Over the past year the first cracks in the post GFC echo bubble have become increasingly visible, with the big downturn in China’s stock market, the ongoing collapse in commodity prices and emerging market currencies and beginning weakness in junk bonds.
Everything points to the situation becoming even more “interesting” (in the Chinese curse sense) over coming months.
Regular readers of this blog will be familiar with many of the topics that were discussed, as we often write about them in these pages as well. The quarterly debate of the advisory board in addition to this provides the perspective of Ronald Stoeferle and Mark Valek (the managers of the fund), as well as board members Zac Bharucha, Dr. Frank Shostak, Rahim Taghizadegan and Jim Rickards.
The transcript of the discussion can be downloaded here (pdf).
Charts by: Incrementum, ASE, St. Louis Federal Reserve Research