John Brynjolfsson of Armored Wolf talks to Bloomberg about his views on inflation, he was formerly a leading fund manager with PIMCO who are the largest bond fund house in the USA, his speciality was TIPS (Treasury Inflation Protected Securities – a security which provides protection against inflation), which in my book means the guy knows his inflation!

Critically he talks about the difference between Japan [and the potential Nipponisation as advanced by economists such as Paul Krugman] of the US market, then his belief in what will happen in the mid-term future regarding inflation. He is not saying ‘hyper-inflation’ such as Marc Faber continuously talks about, but his 4-6% is still significant, in particular if it hits during a contraction in which case its real effect will be greater.