I had the chance this week to connect with Mark Mahaffey, co-founder and CFO of the London-based Hinde Capital, manager of the physically-backed and allocated, Hinde Gold Fund. The Hinde Gold Fund has been one of the world’s top performing gold funds, even amidst the shocking metals correction over the last week.
During this fascinating interview, Mark indicated that despite deflationary sentiment creeping into commodity markets, within two years, we could see a hyper-inflationary ”tipping point”, accompanied by catastrophic rises in interest rates, market failures, and shocking government confiscations.
In a recent written piece Mark likened central bank money printing to, “The children’s game “Buckaroo”…[which] involves gradually adding weights to a spring loaded donkey before it bucks and everything falls off—the proverbial binary tipping point.”
Speaking to the potential of this hyper-inflationary tipping point, Mark said, “It obviously sounds like a ridiculous call…[but] in Japan [it's already] starting…The Nikkei is up 50% in the last 6 months. Do you think that’s because the Japanese economy is doing well?They’re just printing the money. Nobody seems to want to [believe it]—I don’t want to believe it…[but] as I mentioned in that article about the children’s game, “Buckaroo”, there is the binary [point], where you just print ‘one more’ bit of money [and everything falls apart]…[However] people think that because we’re doing it electronically by bond purchases…that it’s not the same as actually printing the dollars and handing them out.” ...