The Algebra of Inflation
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 12 November 2021
⏱️ 24 minutes
🧾️ Download transcript
Summary
There is a lot of anxiety in the economy right now even though the unemployment rate is incredibly low, and nearly every metric on the planet is looking good (besides elevated price indexes). We went month after month last year with people telling us (and many of them seemed to really, really enjoy saying so, mostly because they are awful human beings) that no one would ever shop again, fly again, or “demand” again. The consumption side of the economy was dead behind a brutal pandemic, they said. And we would all be wise to stop paying our office leases, buy some comfortable couch clothes, order food delivery, get an exercise bike delivered, and sit around the house binge-watching TV and just waiting for it all to end.
But now the tune has changed, a lot. Not that drama and intensity – that is the exact same. It’s just the culprit is now the opposite. Now things are too hot, too much activity, too much demand, and prices are too high. That we are supposed to take advice now from the people who zealously told us the opposite 12-18 months ago is odd to me.
But I digress. Pricing pressures exist in the economy and when folks are not talking about Congressional legislation or Fed policy, they are rightly focused on that. Today I want to explain why they are focused on the right thing (price inflation), but for the wrong reason, and more importantly, with the wrong solution. And yes, with an eye towards the right conclusion in your portfolio.
Off we go …
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:12.3 | Well, hello and welcome to another dividend cafe. I am actually recording out here in East Hampton, and so that's why the backdrop does not look like |
| 0:22.5 | the studio in New York and yet I am recording a Diven Cafe that I am really excited to present |
| 0:31.6 | because I believe that what I've written at Dividy Cafe.com this morning what I'm about to talk to you |
| 0:37.3 | about in this podcast and this video is maybe one of the that what I've written at divinity cafe.com this morning, what I'm about to talk to you about |
| 0:37.5 | in this podcast and this video, is maybe one of the hopefully better opportunities to connect |
| 0:46.3 | some economics to present events and to connect some economics to portfolio thinking it's been a big theme of what we've been doing in the last few weeks. |
| 0:58.1 | And not all of it has been just centered around, you know, my book being out and how there's no free lunch is all about these different economic principles. |
| 1:08.2 | Because I think I've been writing about economic principles in Diven Cafe |
| 1:12.4 | for years and years and years, well before any book coming out. But right now, we just happen |
| 1:19.4 | to be in a period of time where I think all the stars are aligned for people to benefit tremendously |
| 1:26.6 | with a little bit deeper understanding of some economic concepts |
| 1:32.9 | that then give people the ability to formulate an application as we're sitting around |
| 1:39.8 | debating things in current policy. |
| 1:43.4 | And one of the things I could try to dive into in the introduction Dividend Cafe this week |
| 1:49.0 | is that same thing would have been true a year ago. |
| 1:53.5 | There were principles at play. |
| 1:55.2 | There was foundational beliefs that would have been helpful in the immediate aftermath and the subsequent months |
| 2:02.7 | of implementation of the COVID moment. |
| 2:06.3 | And there was this vigorous. |
| 2:08.9 | And I mean, zealous. |
| 2:10.9 | And at the time, it could have been right or could have been wrong. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from The Dividend Cafe - The Bahnsen Group, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of The Dividend Cafe - The Bahnsen Group and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.