There's only one way to go there. It instantly filled out with all these kinds of financial experts who suddenly actually also have a degree in biology, the only one I know is Chris Martenson. What I enjoy most about Grant Williams is he’s not only one of the sharpest thinkers in the world of MACRO but he articulates his thoughts very well, in a way that we can all understand.
And if you read history, if you read books, like Extraordinary Delusions, and The Madness Of Crowds by Charles Mackay.
We buy a share and if we don't like something, we sell it.Tony tends to buy companies that have principals that match his own, that have goals that match his aims, that have most importantly, perhaps an identical time preference to Tony. He took himself back to being a child during the Vietnam war and remembering every night, Walter Cronkite talking about the 307 American casualties and 150 South Vietnamese casualties, but 1,007 North Vietnamese casualties.And Ben's point was, look, they probably knew exactly how many Americans died that day and probably under-reported it.
I know you spent a lot of time in Asia, and when you talk about those supply chains and most people know, okay, I get it, there's a lot of the supply chains that start in China. I was thinking about this in an Uber the other day. Gold is at or through all-time highs in just about every major currency anywhere in the world. That sounds sustainable.
If you're looking at an investment, ask yourself first and foremost:Start with those questions, especially is it cheap when you're looking at the cash flow. One, the scarcity of people wearing face masks, I would have put it at one in 50, maybe people who were wearing masks in an incredibly crowded Los Angeles Airport. And let's face it, the economy, no matter what anybody tries to tell you, is a cyclical beast. People fixate on the gold price, which is a futures contract quoted in New York 24 hours a day, give or take around the world but it's a paid piece of paper that conveys upon the ability to own gold. Anyone that looks at it could see there was no real coordinated organic growth underneath this. This economy is built on sand and frankly…Yeah, exactly right. If you go into this with that mindset, I think you're being very foolish.Yeah. But all of the stuff we're seeing now, it's not new, the virus isn't new. I suspect that day is probably approaching us fairly rapidly.Yeah. Everything is a confidence game. I'm not going to see something sparkly and shiny over there and change the course of the ship. In the U.S there's some fantastic work being done I think by the peer research center. But it just shows you how fragile the social order is when you start raising costs. And make no mistake about it. We also get your email address to automatically create an account for you in our website. I don't know what he did, but I know the net result when he left the meeting, is he sold everything that he owned in the company, I don't think Warren Buffett would do that.No, it was a Brazilian chicken producer, and he went to see them. That's a purely dollar representation. But if you start with the question of is it going up or down in price? At some point late in the day, this is the CEO, it was a family business. But he thinks of it as a way to hold his reserves. Well, you know what? And as much as the fed will, and the other central banks, I always use the fed as a proxy for all of them. But for the purposes of this particular presentation, just how the financial sector and the number of bankers have multiplied precipitously over the last 30 years. I think if they print it zero it's be pandemonium. And this is why I think gold it's down today, and the gold miners as always, again shall act in all this. And I just tell people to ignore that question. The price of gold is a wholly different thing. Yeah, there were some bear market rallies and obviously they weren't immune from '08 and they weren't immune from 2001, but it never had a crash that was caused by extended valuations like we saw in, for example, the NASDAQ in 2000.Japan at the time was the second-largest economy in the world. People forget, Japan never crashed. Do you see how I'm connecting the dots there?I'm not sure I agree with it wholly to be honest with you. But this insanity had to stop somewhere. That's the problem that will upend this whole thing. I forget now. Tony, a significant part of his portfolio is in gold. We now have people who make their money from money, they don't make their money from creating a product or servicing a need. It's a tight rope.My point is that if the fed would not have blown all these bubbles in asset prices with the stock market, the That the World Health Organization and the media would be able to explain this and explain how dangerous this is and actually tell the truth. And so we had growth.
South Korea, the largest plant in the world is the Hyundai Kia Automotive manufacturing plant, a plant down in Korea. Their bond market wasn't a global problem. Much to his chagrin, Grant Williams has reached 30 years in finance. To your point, where does the ECB go? There are a couple of things that are very important to understand.
I don't think anyone takes any great pleasure in what's happening now in these markets. If either of those changes, then you do need to be strong enough, mentally, to sell them even if the price isn't where you thought the price might be or you're underwater on your investment.It's the 6000-year asset right. We're seeing massive protests over there. And that day, as soon as he saw that he sold every share he had in the company because he realized that they getting over their skis and ultimately the company went bankrupt.But that was really just a testament to Tony's principles and how he views these things. This is inflation being way higher than headline inflation. But everybody's got an opinion on this.But the one thing that was clear though, forget the fatality rates. So in their mind they've got choices to make. It's like the definition of inflation.Yeah.