Off The Cuff: How The Game Ends

In this week’s Off The Cuff podcast, Chris and John Rubino discuss:

• Moral Hypocracy
  • One set of rules for the elites, another for the rest of us
• Inflation Is Coming
  • The Fed should be careful what it wishes for
• Uncharted Territory
  • All countries are pursuing extreme policies right now
• How The Game Ends
  • Hard assets will be the last man standing

In this week’s discussion, John Rubino gives a useful revisitation of why owning hard assets is so important. While the exact path we take is still unpredictable, the endgame is increasingly clear: the world’s current fiat currencies are losing their purchasing power at an accelerating rate.

The high quality borrowers have pretty much borrowed as much as they want in the world right now. If you want to create more credit, you have to convince people who wouldn’t normally be credit worthy or interested in credit to borrow, right.

You have got all these companies out there who are, BBB rated borrowers to one step above junk, taking huge amounts of debt to buy back their stock. That’s a crazy thing to do in normal times. But, they’re doing it.

The subprime auto bubble was a good example of that, the same thing. Student loans, the same thing, most kids can’t pay back their students loans.