Our own Addison Wiggin was interviewed by The Daily Bell on his beginnings at Agora (working on an old laptop on a desk he shared with your editor in Paris), whether or not the West can save itself – and on this ‘war’ between inflation and deflation.
On the latter, here’s what Addison had to say:
“‘Deflation now, inflation later’ is a mantra we’ve adopted at The Daily Reckoning. The Federal Reserve, through it’s program of quantitative easing, is busting the seams of its own balance sheet in order to fight a deflationary trend in the West. At some point, the tide will shift. Mr. Bernanke assures the world he’s watching inflationary indicators like a hawk. We have our doubts whether those indicators will do him any good. As Paul Volcker, the great inflation slayer of the early 1980s, said when we interviewed him for I.O.U.S.A. ‘Once inflation gets started, it’s very hard to stop. And there’s a strong flavor of that at the moment.’
To read Addison’s full interview, see here.
“Global trade rose at its fastest rate in more than five years in July,” The Financial Times reports, “suggesting the economic recovery is feeding through into commerce.”
“I’ve been worried about the effects of protectionism in shutting off different markets and making a weak economy even worse off,” says colleague Chris Mayer. “Commodity markets especially need open markets to function well. The EU, for example, just put a 40% tariff on Chinese made steel pipe. That’s not good for steel pipe demand and hence, the steel makers and the commodities that go into steel. If we see widespread adoption of such measures, we’d have to re-think some things.
“But so far, it looks like we’ve got a recovery of some kind in global trade. When I look at the global economy, many of the bright spots stem from surging trade along old trade routes (such as China and Arab world).”
Racehorse prices are in freefall, says a report out yesterday. But collectible cars are still doing well.
Yesterday, we saw someone drive by in a huge, gaudy pink Cadillac from the 1960s. It had magnificent fins and enough chrome to stagger a blind man. In it were a middle-aged man and woman, looking very comfortable and proud. They were traveling in style…in a rolling sculpture.
Old cars are not only holding their values, they’re still going up. But not all old cars. Detroit’s muscle cars have been falling in price for the last three years. Not very green?
for The Daily Reckoning Australia