Insights: Central bank 2% inflation targeting is accelerating climate change

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August 2nd, 2021

Our core theme #2, "Improvisation and innovation," was in the spotlight over the past 10 days on the INK platform as we were treated to a comprehensive interview series with Cathie Wood, CEO of ARK Investment Management. Things kicked off Monday with Kiril Sokoloff interviewing Cathie about the origins of ARK and the broad theme of creative destruction. On Tuesday, we learned about the ARK investment process and on Wednesday Cathie discussed the 5 key technologies that ARK believes will change the world. On Thursday, Cathie explained her open-source research approach and how it has helped ARK. Finally, on Friday Cathie made the case for the price for bitcoin going up by at least an additional $500,000 in the years ahead.

This fascinating series is helping to shape our thinking as we develop INK 3.0. We now have a draft blueprint which we will share with INK subscribers in the weeks ahead. Eventually, we will make the document public as we get feedback.

The Bank of Canada is making climate change worse

If it were not for the Wood interview series, our video of the week would have been Raoul Pal's interview with Jeff Booth, author of "The Price of Tomorrow: Why Deflation is the Key to an Abundant Future." Booth makes the case that central banks are essentially inflationary boats going against a deflationary current. He makes the provocative assertion that central bank inflation targeting is helping to drive climate change by striving to create inflation by bringing forward future growth which is hard on the planet. While he does not come and call central bankers liars with their claims of being concerned about climate change, it does not take much to connect the dots. That is something to remember the next time Christine Lagarde starts pontificating about climate change. In Canada, the Bank of Canada's relentless pumping of the real estate market has obviously driven up concrete consumption. Yet, we hear nothing about that from environmental activists who seem singularly fixated on the oil patch.

Finally, all 3 top movers up the INK Edge rankings this week, posted in INK Chat, are from the mining industry and have climate change and innovation in common. All are focused on materials that are essential to electrical vehicles.


Top 3 Gainers Last Week

Company NameStock Symbol1 Week Return %
Turquoise Hill ResourcesTRQ14.0
Solaris ResourcesSLS11.0
Stelco HoldingsSTLC10.7

Top 3 Losers Last Week

Company NameStock Symbol1 Week Return %
First National FinancialFN-6.9
Birchcliff EnergyBIR-5.0
Doman Building MaterialsDBM-3.5

Returns are as of the last trading day of the previous week.

Featured Clip

Insider of the Week

Michael Gentile

We featured Michael Gentile in our July 27th morning report on the back of his buying in Radisson Mining Resources (RDS). His buying also contributed to an overall firming of mining insider sentiment over the past month. We also featured the Montreal mining player in the Globe and Mail's "Who is Buying and Selling" over the weekend.

INK Canadian Insider Index

1 Year Total Return Performance


Historical Performance

Annualized Total Return as of July 30, 2021 04:49 pm
1 Year 61.77%
3 Years 10.57%
5 Years 9.98%
10 Years 9.27%


To learn more about the Index please visit
https://index.inkresearch.com

5 Year Total Return Performance


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