Nassim Taleb, the author of “Black Swan”, has said that there is no hyperinflation in a series of posts on his Twitter account.
According to Taleb, hyperinflation exists only in the minds of some people on Social Media, but in reality it does not exist if we look at the numbers.
Taleb listed figures to back his argument. First, the price of commodities (CRB). The price of CRB is lower than in year 2014, and more than 50% lower than in 2007. Second, shipping costs. The Baltic Dry Index is 60% below 2007.
What should we worry about? Taleb claims that it is “the asset price inflation resulting from low rates; these historically have collapsed at the first sign of tightening.”
The asset classes more vulnerable are: Cryptos, Residential Upper End Real Estate, Stocks, Residential RE, etc.
Below Taleb’s Twitter post: