Faber News Flow

Earlier this week,   Morgan Stanley showed   that more than inflation, more than concerns about the historic labor crisis, definitely more than covid, one thing has preoccupied the minds of most management teams this quarter: " supply chain issues ", a topic which has seen an explosion of mentions on Q3 earnings calls. But while by now everyone is aware that the global supply-chain shock is truly historic and getting worse by the day, with used car prices rising sharply again and over 30 million tons of cargo waiting outside US ports ahead of the holiday season, few have considered what realistically could normalize these frayed supply chains. To address this topic, we discussed a research report from Goldman Sachs in which the bank's economists listed what they viewed as the three key drivers of supply chain normalization and their most likely timing: improved chip supply driven by post-Delta factory restarts (4Q21) and eventually by expanded production capacity (2H22 an...

"You see what is happening in Europe. There is hysteria and some confusion in the markets. Why?…Some people are speculating on climate change issues, some people are underestimating some things, some are starting to cut back on investments in the extractive industries. There needs to be a smooth transition." - Vladimir Putin (someone with whom this author rarely agrees) "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of its citizens." – John Maynard Keynes (an interesting observation for all the modern day Keynesians to consider given their support of current inflationary US policies, including energy-related) Introduction This week's EVA provides another sneak preview into David Hay's book-in-process, "Bubble 3.0" discussing what he thinks is the  crucial topic of "greenflation."   This is a term he coined referring to the rising price for metals and minerals tha...