One of the tenants of wise-investing – and indeed in one’s approach to life – is to “not put all your eggs in one basket.” The last few years give us a clear example of the dangers that exist when one’s portfolio is too heavily in concentrated in any one asset; look at the dramatic shift in prices seen in stocks, precious metals, and real estate! With the volatility and uncertainty currently displayed in many conventional investments, astute investors are actively looking for ways to protect themselves by diversifying their holdings and bringing in assets that offer non-correlation to their existing positions. “Non-correlating assets” has become the buzz term after the most recent recession. This is not a new concept, but after the financial crisis in 2007 investors have become cognizant of this. To many people the idea of investing in rare coins is a new concept, but it is, in fact, a time-tested method for preserving wealth generationally. Owning assets that are limited in supply and carry a high demand due to their intrinsic value is a strategy historically shown to protect and grow wealth. Many investors understand this strategy as they have seen it throughout their lives without realizing it. Imagine purchasing a Picasso, Monet, 1955 Ferrari, or downtown property in most urban areas 30 or 40 years ago! The new thing about investing in rare coins is that individuals now have a trusted ally in this space.

For God’s sake will people stop talking about inflation! Especially you inflation “truthers” who insist the BLS is lying and the actual inflation rate is between 7% and 10%. Those are the sorts of rates we averaged during the Great Inflation of 1965-81.

Base money is just as special as it ever was. Technology changes and post-crisis monetary policy are making financial assets and money indistinguishable. Central banks now need to work in partnership with fiscal authorities. Several economists at the Lindau meeting were severely critical of central banks’ conduct of monetary policy in the light of continuing depression in the US, Japan and much of Europe, and called for greater use of fiscal policy to bring about recovery.

We really ought to consider adopting a whole new monetary regime, NGDPLT. But what if the Fed refuses. What then? Then we are in the world of second best—QE and negative IOR. These are not good policies, but they are less bad than deep depressions or wasteful government spending.