John Rubino – Interest Rates, The Breaking Point In Fed Policy, US Dollar From Strength To Potential Collapse, And Gold
John Rubino, Founder and Editor of The Dollar Collapse website, joins us to discuss the interest rate environment, Fed policy, the global movement to find dollar alternatives, and yet the dollar’s recent strength as a safe haven along with gold. We start off reviewing how rising interest rates in response to the Fed policy of hiking rates to try and combat persistent and high inflation, will eventually impact the general equities markets and real estate markets in a corrective fashion.
Next we shift over to the trend of dollar strength over the last year in the face of global uncertainty, and that for now, as the world reserve currency, that it is still seen as a safe have. However, the US response to weaponizing it’s monetary and banking policies towards Russia regarding the war in Ukraine has only hastened the longer-term trend of more nations using dollar alternatives and looking for a new system, as Russia continues to sell their raw commodities and goods in rubles, other currencies, and even gold.
We wrap up with the continued role of gold as a safe haven and store of value, and something the global central banks hold as a hedge to dollar and other currency holdings. These attributes underpin why he sees it trending higher in relation to dollars as things develop medium to longer term, despite the potential risk of a market crash scenario potentially threatening the PMs in that kind of a sell-everything type of event.