In all these cases the effect of debt deflation extracting interest is not only on spending — and
hence on current prices — but on the economy's long - term ability to produce, by eating into natural resources and the environment as well as society's manmade capital stock.
[NB: i) Church House's Argo stake is held by the Deep Value Investments Fund, managed by Jeroen Bos — if you haven't read it already, I can highly recommend his recent book «Deep Value Investing», ii) XXX Capital Management is a well - known European hedge fund, which hasn't publicly disclosed a holding in Argo to date,
hence the redaction — Argo management are obviously aware of their shareholding & support, and iii) the letter was based
on a GBP 14p share
price & a higher GBP / USD rate — at the
current 13.875 p
price and exchange rate, Argo now trades at a 36 % discount to net cash and investments, and a 47 % discount to net tangible assets.]
Current and envisaged carbon dioxide permit
prices of less than 50 Euros per tonne will have little impact
on the demand for flights - and
hence will barely affect the rapid growth in aviation emissions.