John Rubino, Founder and Editor of The Dollar Collapse website, joins us to focus on the multiple currents affecting markets from inflation, to Fed policy, and how this is roiling general US equities and bonds, but makes the safe haven appeal of gold more compelling. We discuss how raging inflation showing up in so many areas of everyday life for citizens and in business will cause rates to surge, but then could lead to the mirror image of a deflationary recession a year or so after that. Next we touched on the high levels of consumer spending seen in the marketplace to get in front of inflation, but often on credit, so not something that will be sustainable, as noted in slowing growth forecasts for the economy this year.
Next the conversation gets into how long many have waited for this confluence of financial events to finally pin the central banks down in a corner where there is little that can be done, where generalists lose confidence, and we reflect in amazement at how long they’ve been able to kick the can down the road. John references his pieces on the “Long Wave Versus The Printing Press” outlining that at the time most of those wave theories were born out, it was during a sound money environment. The originators of those wave theories couldn’t have imagined a scenario where a world reserve currency was able to be printed in unlimited amounts injecting unprecedented liquidity, and he believe this is what has prolonged this cycle. Conversely this may mean the contraction cycle down will be far longer and extreme than most are planning for. We wrap up with thoughts on how some allocation to gold and silver may be instrumental in weathering the financial storm and maintaining purchasing power in whatever system springs up after the great reset.