thanks, great insight here. one must ask themselves; if we are indeed at trough liquidity, and will only stimulate more from here, what will global inflation look like by the time we hit the cycle peak of liquidity? I mean, our inflation problem is far from solved, and isn't anywhere close to the FED's target rate with core inflation still around the 5% mark. Is decades of stagflation really going to be the desired outcome, because thats what we'll be looking at if the system is flooded with liquidity again. The gross negligence of dealing with debt in the system is the elephant in the room, and printing more money, and consumers taking on more and more debt is really whistling past the grave yard. This massive incurring of debt with apparently no regard for what future manifestations it will produce is a ticking time bomb!
But 75% of M2 is produced by commercial banks, right? So, they must be the most important actors of money-production. As such, if they don’t lend, how will the money supply go up materially?
Great guest! Howell is definitely one of the smartest shirts in the financial world. Level headed, no hype, well respected and well spoken.
Can’t have enough of Michael Howell
me too. I can listen to him all day.
thanks, great insight here. one must ask themselves; if we are indeed at trough liquidity, and will only stimulate more from here, what will global inflation look like by the time we hit the cycle peak of liquidity? I mean, our inflation problem is far from solved, and isn't anywhere close to the FED's target rate with core inflation still around the 5% mark. Is decades of stagflation really going to be the desired outcome, because thats what we'll be looking at if the system is flooded with liquidity again. The gross negligence of dealing with debt in the system is the elephant in the room, and printing more money, and consumers taking on more and more debt is really whistling past the grave yard. This massive incurring of debt with apparently no regard for what future manifestations it will produce is a ticking time bomb!
Michael Howell is a great explainer of what is going on. Gold is the investment of choice, Western societies' debt level are unsustainable.
Good guest. Interview Steve Hanke next!
How would these affect commodity prices?
Isn’t buying US debt mandatory for some institutions? & how about collateral requirements?
"Gilt yields went up, bond yields went down" I think he meant to say bond "prices" went down.
TIMESTAMPS WOULD HELP!
Does PBC’s intervention in economy count as liquidity/Eurodollar “creation”, too?
How can we calculate the money supply in US despite the Eurodollar market, so to speak?
How about that collateral extending in amount but not in value necessarily? What would happen in that case?
What is bond volatility? & why is QE coming back?
What about valuations being nosebleed high?
Is AI deflationary or inflationary on aggregate?
How about RRP or SLR?
Luke Gromen says similar things about TGA & tax revenue.
FED’s latest actions do not amount to QE. That is an accounting issue. They were still doing QT until last week.
But will the FED do further QE within the next couple of years or ten years?
How can Japan sustain such a level of debt/gdp?
💙
But 75% of M2 is produced by commercial banks, right? So, they must be the most important actors of money-production. As such, if they don’t lend, how will the money supply go up materially?
How are central banks pushing money in? They have been removing liquidity, instead.
Supply chains do not cause inflation.
One of few bullish voices 2 months ago that has proven to be right in the short term.
Cryptos? Really?
why not?