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.