Harry is still a deflationist, and expect all hard commodities to decline, along with the stock markets. This is a long term perspective interview, and remains interesting, although Harry is declining in my esteem as he's making more and more comments with which I strongly disagree, and starts sharing political opinion along with his demographics and markets analysis, and for most parts, his political ideas are plain dumb.
A few quotes that might shock inflationists:
- I don't like gold, I don't like silver
- Commodities have peaked in 2008 and have experienced their secondary peak in 2011.
- Commodities are going down for the next decade.
- Keynesian economics are going to die here.
- The rich have to pay more taxes because they benefited the most from the boom. This is a political, socialist opinion, which doesn't fit with the rest of the talk
- There's not enough gold to go back to the gold standard. That worked during the Roman empire, but it wouldn't work now. That's one of the most stupid yet most common error about the gold standard. Gold is a measure of value and wealth. It doesn't matter how much there is, as long as there's a fixed and stable amount. It's as to say that there aren't enough yards or kilograms to measure the length of the roads, now, because there are far more roads now than during the roman empire. The price of anything can be determined instantaneously by dividing the price in whatever currency, by the price of spot gold, in that same currency. It doesn't contain any relation to the amount of gold available.