John Rubino – A Myriad Of Macroeconomic Factors Pressure The Markets
John Rubino, Founder and Editor of The Dollar Collapse website, joins us to discuss the recent market pressure and selling across the board in many sectors. We start off by reviewing the investor expectations around Fed policy tightening and the more aggressive rate hikes slated to help tame inflation.
Next we moved into the demand destruction in the commodities and further global supply chain interruptions caused by further covid lockdowns in many parts of China. This lead the discussion into the continued movement higher in the US dollar due to the range of uncertainty in the markets from slowing growth and persistently high inflation, to rising interest rates and central bank tightening, in tandem with ongoing war and geopolitical tensions. John points out that the dollar is strong in relation to other more burdened currencies like the Euro, Pound, and Yen, but that it is still having it’s purchasing power eroded by the 8% inflation.
We wrap up with the key factors John will be watching as things continue to unfold towards a potential recession and deflationary period, and at what point the market pain grows high enough to where the Fed will decide to reverse course and reliquify the markets.