John Rubino – Inflation, Fed Policy, Housing Market, US Dollar Vs Euro, German Bailouts, Precious Metals, And Nuclear Power
John Rubino, Founder of The Dollar Collapse website, joins us wide-ranging discussion on the health of the global economy, Fed policy, the housing market, the strong US dollar, the weak Euro and European economy, precious metals, and how nuclear power can assist the global energy crisis. We start off reviewing the higher than expected CPI inflation reading and the market expectations for further hikes and what this may mean for sectors like the real estate market. This leads into outlining the strong consumer demand thus far, but how that may be limited moving forward as people are maxing out credit and available savings.
Next we pivot into the persistently strong US dollar, and how strange it is to see it paired with the high inflation, but it is more a counterbalance to the very weak Euro and Yen. With the energy crisis in Europe starting to impact industry, the coming business bailouts in Germany are not instilling confidence in the Eurozone at present. Japan is perpetually weak due to the mounting national debt to backstop their markets, and their challenges with an aging population. The strong dollar has been a wrecking ball in the commodities sector for several months now, and it has impacted gold and silver, but John sees value in the very depressed mining stocks at this time.
We wrap up with potential paths forward and investing opportunities in the energy space, and in particular John feels that nuclear power is becoming the more obvious solution to energy production, with the backdrop of higher oil and nat gas prices, and renewable energy not producing the base lode power necessary to sustain global demand. As a result, uranium stocks should benefit from the eventual rise in the demand for nuclear and coming higher uranium prices needed to incentivize new production to come online.