Michael Burry expects the post-pandemic economic recovery and another round of stimuli to drive prices up, and sees neither Bitcoin nor gold as guaranteed havens for investors

“Prepare for inflation,” said the investor in a now-deleted tweet on Thursday evening, “reopening & stimulus en route Before COVID, it took $ 3 in debt to create $ 1 in GDP, and now it’s worse In an inflationary crisis, governments will try to suppress competitors in the currency arena $ BTC #gold “

Burry rose to fame after his multi-billion dollar bet against the US housing bubble was recorded in the book and movie “The Big Short”, “He also helped lay the foundations for GameStop stock’s surge last month when he invested in the video game retailer in 2019

The head of Scion Asset Management underlined the increasing risk of inflation in a flood of follow-up tweets. He quoted extensively from “Dying of Money: Lessons from the Great German and American Inflations”, a book by Jens O. Parsson to take his message home

Burry highlighted passages from the book about the recurrence of inflation throughout history, how it usually precedes economic boom and nighttime wealth, and how it leads to increases in crime, rising costs of living, and poverty

“Germany [the US] began by failing to adequately pay for its war [against COVID and the GFC fallout] from the victims of its population – taxes – but covered its deficits with war credits [government bonds] and spending on new ones Paper from Reichsmark [dollar] “#doomedtorepeat”, tweeted Burry

“#History is not useless,” he said in another tweet, “This text examines the American # inflation of the 1970s which is more relevant today than you think”

Burry also drew parallels between the market madness in Germany before the rise in inflation and Reddit’s purchase of meme stock earlier that year, which caused Robinhood to temporarily stop buying certain stocks

“Before the German hyperinflation in the 1920s,” everyone from the elevator operator played the market “and the volume became so large that” the financial industry couldn’t keep up with the paperwork “and the” stock exchange had to close “sounds familiar ? #robinhooddown, “he tweeted

Burry’s recent comments reflect his warnings of a massive market bubble and his description of the GameStop frenzy as “unnatural, crazy and dangerous”

The Big Short

World News – FI – The “Big Short” investor Michael Burry says “prepare for inflation” – and warns that Bitcoin and gold could be at risk

Source: https://www.businessinsider.com/big-short-michael-burry-warns-inflation-bitcoin-gold-hedge-risk-2021-2