Michael Hudson on the Rising Price of Gold

[Milton Kuo]

It's nice to hear from you, shiny! I hope you're doing well. I'm doing about as well as I can be, I suppose, considering that I chose not to participate in this third consecutive Federal Reserve initiated bubble and have watched it go on far longer and inflate much higher than I ever thought possible. The one bubble I decide to sit out on and it's the one that actually lasts.

I do wish there were more activity here but maybe there's nothing much to talk about because price discovery seems totally broken and it's a game of Kremlinology as EJ said over a decade ago after the housing bubble crashed.

Since traffic here dwindled away, it's been difficult finding people who have interesting ideas on what's going on in markets. I have found one fellow, David B. Collum on X (formerly Twitter) who is a Cornell University professor of organic chemistry of all things. Over his life, he's been a pretty good investor (bought bonds in the early 1980s, bought stocks in the early 1990s, sold stocks in the late 1990s and avoided the dot-com crash, bought gold in the late 1990s/early 2000s, avoided the housing bubble crash of 2008) but has kind of screwed up this cycle (as he says it, he "boned it") and has had rather low returns.

Valuations are so high and interest rates are fairly low but actual inflation is quite high so that Collum is saying that the next cycle could be like the late 1960s - 1982 or so: a horrible secular bear market. It's kind of depressing reading although it doesn't have to be a few lost decades if we get a humongous crash.

[shiny!]

Hiya, Milton. It's nice to see you here. How've you been?

I swing by here two or three times a year but never find any activity of note so it's a nice surprise to check in today and see you just posted this. I'll give it a watch, thank you.

I miss the great iTulip of old. Take care!

[Milton Kuo]

This is an interview with Dr. Michael Hudson on the very rapid rise in price of gold over the past twelve months. I have not followed Hudson's writings and interviews all that much since the various waves of quantitative easing (large-scale asset purchases) but I have never seen anything by Hudson commenting on the possibility of gold price suppression until this video. As far as I know, Hudson is not a gold bug.

From that perspective, I find this video rather interesting to hear his take on why the gold price has been galloping lately.

https://www.youtube.com/watch?v=9Bvr2SZm-NM

On an unrelated note, I first heard of Hudson from iTulip in the 2000s so it's been about twenty years since I first knew of him. Twenty years is a long time and we're all a lot older and Hudson, whom I thought managed to defy Father Time astonishingly well, is finally showing his age.