Diego Parrilla

And it's fun.

I love the fact that you're calling me a detective because maybe I am.

It's like, but why did it happen?

And I think this is one of the natural conclusions from exactly what we're discussing.

And let me put it in a...

in different ways.

So if we had some teenagers listening to this, I'll say, let's assume that this is a video game, right?

Level one of the video game is, can you make money in nominal terms?

And what I mean by that is, hey, Alan, here's 100 euros, make me money.

And you come back with 103 euros and you say, hey, Diego, I made you three euros nominal.

And that works in a world where inflation is negligible, which is

pretty much the game we've played for the last few decades.

I mean, I think it would be a fun exercise to look for, you know, in the developed market world, you know, just do a word count of inflation from 2000 to, you know, for a big part of history, other than the obvious cyclical aspects of oil is overheating and whatever.

The 2% inflation target, that frog in boiling water, it's, again, made inflation be somewhat negligible.

No one would come back to you and say, yeah, Alan, you made me three, but inflation is 2.7.

In reality, you just made me 0.3 because benchmarks are nominal.

We think nominal.

Inflation, by the way, your inflation is different from mine, different from anyone listening to us.

Um, so in that sense, level one, making money in nominal terms has worked for a while and fixed income works because, you know, even if I'm paying you in Japan, 0.1%, uh, it's better than, than deflation, of course.

And so people were kind of fooled there.