00:00Inflation is substantially above target and substantially above target in all forecasts for next year.
00:07I mean, it's part of the reason the dollar is depreciated by about 10% in the first half of this year.
00:13It's the single biggest decline in the U.S. dollar in six months in 50 years.
00:19Gold is at record highs.
00:21And the appreciation in other dollar substitutes, to use that word loosely, in items like crypto, for example, is unbelievable.
00:35So we're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize or de-risk their portfolios vis-a-vis U.S. sovereign risk.
00:47Are you really seeing that?
00:49Just check the price of gold.
00:51Well, I mean, I don't have to look very hard.
00:53That's like a life of its own.
00:54What?
00:55It's a life of its own, gold.
00:57No, but it's a life of its own as you see sovereigns around the world, as you see central banks around the world, as you see individual investors around the world go, you know what?
01:08I now view gold as a safe harbor asset in a way that the dollar used to be viewed.
01:15That's what's really concerning to me.
01:17And there's been plenty of published research in recent weeks, months, about foreign investors now, when they buy U.S. equities, hedging the returns back to their local currency.
01:29So that, again, is a bifurcation of, I'm going to bet on American business, but I want to immunize some of my sovereign exposure to the United States.
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