Diego Parrilla

Now, level two is, can you make me money in real terms?

And I'm not saying real after CPI or some sort of official BS inflation is, can you actually preserve my capital?

And once us frogs realize that that game, that effectively to make money in real terms is much harder, and in fact, cash and fixed income

in many cases in many parts of the world is deeply into that negative territory, we start jumping off the ball.

And this is driven, you know, why did the frog jump?

There are two

Inflation has two big dimensions.

Number one is inflation itself.

Two plus two equals four.

You print 10% of your monetary base and let's assume that everything gets impacted linearly.

That would be a very naive way of thinking.

how money printing impacts the world.

But let's assume that that's the pace at which gold should go up, okay?

I dilute the monetary base and all else being equal, I can't print gold, so it'll go up.

But the second dimension is inflation expectations.

This is us frogs will jump off the boat because we basically saw, oh, the temperature is going up by a lot.

And I, you know, but if they tell you, don't worry, the heat is off.

It was a one off.

It's temporary.

It's, you know, some frogs might stay in.