In this episode of On the Margin, Brent Johnson of Santiago Capital discusses his views on whether or not CPI inflation is transitory or here to stay. We cover Brent’s view on the most recent CPI and PCE prints, why consumer prices are ticking up, and whether or not he thinks we are headed for inflation or deflation. We also did a review of Brent’s famous “dollar milkshake theory,” the impact of fiscal and monetary stimulus on the dollar, and why he believes a strong dollar is dangerous for global markets.
00:00 ・ Introductions
02:28 ・ Are we heading into deflation or inflation?
08:30 ・ How does QE play into the mix?
16:07 ・ How does supply/demand play into the mix?
25:20 ・ How do you predict inflation?
30:14 ・ Why is the strong dollar a problem for the world?
45:28 ・ What does a strong dollar do for stocks / US equities?
53:31 ・ The dollar’s international significance
58:52 ・ How to plan for a debt crisis