Jan.10 — Former U.S. Treasury Secretary Lawrence H. Summers and Roger Ferguson, TIAA president and chief executive officer, discuss the emergence of secular stagnation and the challenges that central bankers will face in a new decade. They speak with David Westin on “Bloomberg Wall Street Week.”
Is fiscal stimulus on the horizon? Kevin Muir, market strategist at East West Investment Management and author of “The Macro Tourist,” argues that the declining efficacy of monetary policy will force governments to run-up even larger budget deficits. In the face of central bank impotence, he predicts that politicians across the political spectrum will turn to Modern Monetary Theory, or MMT, to avert a disaster. Muir suggests that this flood of spending poses serious inflation risks and that a monetary “day-of-reckoning” is forthcoming, but not imminent. He argues that this trend makes negative yielding sovereign debt highly imprudent — particularly in Europe, where he sees a “sovereign debt bubble.” Filmed on October 4th, 2019 in Toronto.
I think that those that were expecting higher bond, sorry, higher yields because of higher
rates in the US, I think they’re mistaken, that will not be the trigger.
In fact, the trigger will be a Fed that is too easy and doesn’t actually chase the market
That is what the true bond bear market will be created was when we finally get the inflation
and the Fed should be raising rates and they deem that they can’t afford to because there’s
too much debt out there.
That will create a self-fulfilling inflationary loop in my opinion.
Peter Schiff discusses how the Federal Reserve plays an integral role in the economic recessions of the past. Peter covers cause and effect, and how different functions of the markets, politics, national debt, and central banks influence and shape the future of the world economy. He also gives insight on where he sees the economy heading, and how his prediction is likely to pass in the near future. Las Vegas MoneyShow 10/13/2019
The key value that Real Vision adds stems from its “long-form documentaries, in-depth interviews and actionable analysis.” These contrast starkly with CNBC’s 60-second sound bites.
For example, Williams’ recent interview with David Stockman, Ronald Reagan’s former budget director, ran nearly 90 minutes.
Real Viewers who invested the time got an in-depth overview of how America’s 1971 default on its gold debts (which few CNBC viewers have even heard about) may be setting the stage for a colossal reset.
“Major media are perpetual bulls because this draws advertisers,” jokes Williams. “Imagine running a mutual fund ad right after an analyst says the market is overvalued. That wouldn’t work well. But we don’t run ads. So we can offer a wider range of opinions.”
Fed employees not allowed to speak to the press
With Real Vision broadening its content, Williams has increasingly focused on digging deeper into the Federal Reserve and the shady world of central banking. The process has heightened his conviction about the role that physical gold needs to play in investor portfolios.
That said, it hasn’t been easy. As John Maynard Keynes noted, central banks go to huge lengths to hide their primary roles as government tax collectors.
Federal Reserve employees, for example, are forbidden from speaking to the press. To make sure that they don’t, the Fed only hires the most obsequious candidates, from universities whose graduates have a reputation for towing the line.
The process works.
With the exception of Danielle DiMartino Booth, whose book Fed Up! appeared after the last financial crisis, the Fed—which some argue is running a colossal Ponzi scheme—has not had a major whistle blower in its 100+ year history.
The same applies to the big banks, which according to Keefe, Bruyette & Woods have paid nearly $250 billion in fines for fraudulent activities, without one of their key executives having “blown the whistle” to warn the public.
Williams, though not a journalist by training, has picked up a decent bag of tricks over the years.
For example, this week Real Vision ran a 90-minute interview with William White, an obscure former Bank of Canada, BIS and now an OECD official, who has been out of central banking for more than ten years.
CNBC journalists, who are only interested in sound bites, wouldn’t have given White two minutes of their time. Yet his importance cannot be overstated.
Williams knew that because White was no longer affiliated with the central banks (but remains connected with the key players), he was thus able to speak relatively candidly.
Central banks’ steady incompetence
White’s warnings—that central banks’ steady incompetence has dug them into a huge hole, that they are likely all working for themselves (as opposed to colluding, as some suspect) and that global debts will not be paid back—thus need to be taken with utmost seriousness.
White also reminded Real Vision viewers that he had worked closely with Claudio Borio, the current head of the economics department at the BIS, and suggested that the two thought alike.
This provides a strong hint that Borio’s commentaries during the coming months will be “must-reads” for all who are monitoring the international financial system.
A broad range of sources
Critics argue that viewers of CNBC and other mainstream media have more than made up their losses since the dot.com and housing bubble crashes.
However, that only applies to investors who were wealthy enough to hold on throughout and after the crises. Ordinary and poorer investors weren’t able to risk their remaining assets. Many left the market, never to return.
A market crash today would be particularly catastrophic to baby boomers, many of whom are simply too old to be able to wait out another boom-bust cycle. Hence the importance of Williams’ reasoning.
With consumer, business and public sector debts and most major markets all near record levels, investors do need to consult a broad range of sources.
But those who only have time to follow just one financial network should probably ditch CNBC and get Real Vision.