John Paulson Bets on Inflation

I went to a talk today by John Paulson who has a big bet out on gold.

His logic:

1. inflation is related to money supply (proof? He never mentioned Milton Friedman for some reason)

2. Gold is related to inflation

3. Money supply is increasing, therefore gold will go up

I want to look into it some more, but judging by the graphs in his fancy pamphlet here (take my word for it), there wasn’t anything like today’s spike in the money supply during the last gold run up.

And, um, there isn’t any inflation today.

So has something changed?

Again, I want to do a bit of research here but the short answer is… who knows!? Who cares!? He has a gold fund and it’s up 60% or something.

Take your fancy pants ‘analysis’ and go write some blog posts about it, Poindexter. Those boys might even read it on their way to the bank.

One thought on “John Paulson Bets on Inflation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s