He had finally done it. He had mastered the physics of time. He was ready to visit the past.
He had made his first fortune in U.S. Treasury bond futures in the early 1980’s. Wall Street had thought that the Reagan tax cuts would drive up interest rates because of budget deficits. But he knew that the deficits were a result of the unanticipated collapse in the rate of inflation, and, thus, as the deficits were caused by disinflation, the deficits could not cause inflation. In those days $60,000 could tie up a million dollars in Treasury bonds, and he had made many times $60,000 on the speaking circuit after leaving the government. Buying futures contracts when Wall Street thought double-digit interest rates were forever was a surefire path to riches.
He made his second fortune on the collapse of the dollar and the end of its role as the world’s reserve currency. The free-trade economists and the Washington policymakers thought that the offshoring of U.S. jobs brought benefits to America and strengthened the dollar. He almost alone understood that offshoring turned U.S. GDP into imports and would crush the dollar. His first fortune went into hedges against the coming decline in the dollar.
When the dollar finally tanked, he was a very rich man.
When the Soviet Union collapsed, he had rescued a Russian physicist from penury. The Russian shared his daydreams...