Great interview. With the current rate of inflation published at 8.1% for food, gas, utilities and not including rent from a year ago they have stated an average increase of $ 475 per month. If you are low income or fixed income where are you suppose to come up with extra costs? Answer you will not. The government can print money but you will be evicted and become street eligible.
A serious oversight from this guest speaker is his oversight of geopolitical issues in the world and the destabilization of commodities and poor leadership in the U.S. Federal Government that exacerbate poor economic performance and inflation. With a few exceptions global assets carry far greater risk than U.S. assets. I just don't see Jack's recommendations yielding returns.
Came to live in brazil over 10 years like and trader and analysis... Never see so much US big bank involved so much this few years here in stock market here they are just buying... It is the best time to buy here....... Some blue chip is less -60% than last year... The best this company sell to china to us....
Volcker didn't target interest rates, he targeted nominal GDP and let interest rates rise until it stopped growing. This is not the approach Powell is now taking, with nominal GDP rising well above the future supposed terminal fed funds rate of 4%. Also saving rates nearly kept up with inflation so savers were safe and holding savings made sense. Not today when people have to flee cash savings due to interest rates being so far behind inflation. There were many periods of raising interest rates during the Burns era, plus prices and incomes policy, ineffective policy to do anything but target nominal GDP.
Bear through 2023 - I watch the 10 year yield and USD DXY daily and believe that the Fed's Objective is to devalue both our $31 Trillion in US National Debts and the continual deficit spending by both parties. I'm not a believer that the Fed wants 2% target inflation and think they want a continuing higher level like 4%-5% ongoing. They've been trying to control, through long bond purchases, bond yields. Now starting in September, they have $95 billion a month (QT) to reduce their balance sheet of bonds and MBS. We may see the 10 year move up to 4% or higher if there are not buyers for these bonds. As the global markets demand USDs as the reserve currency for trading, to pay off US denominated debts, and to liquidate stocks, lack of liquidity could break the debt markets. We are entering years of Stagflation and like in the 70s, stock prices go nowhere daily (after correcting). Why would the Fed want higher inflation rates you ask, if you can't ever 'pay it back', if you do not want to default, all you have left is "Debasement of the USD". S&P 2500 target for mid-2023.
Consuelo, your interviews are a giant step ahead in quality beyond any other stock market and economic videos I watch. The character and intelligence of your interviewees is profound. I always learn so much when I listen to you.
Neither US political party will raise much objection to the Fed raising its inflation target or taking longer to achieve their target because both parties are economically populist in orientation now. It’s only Democratic leaning economists from the days of Clinton like Larry Summers that are very committed to a low inflation environment. When the interest costs on US government debt start rising in earnest we will see how committed everyone is to low inflation. It’s not an accident that there was a push to index capital gains taxes for inflation during the last Republican administration.
41% of my net worth has been out of the stock market for months. When the market drops to my number, I'll come back in. While I'm waiting, I'm creating multiple streams of passive income for cash flow. I'm changing my game!
@@gordo3582 I will, it definitely has changed my focus and added to my diversification. After 28 years in the stock market I won't walk away for good. I'll just come back when the economic conditions are better for investing.
Great interview. With the current rate of inflation published at 8.1% for food, gas, utilities and not including rent from a year ago they have stated an average increase of $ 475 per month. If you are low income or fixed income where are you suppose to come up with extra costs? Answer you will not. The government can print money but you will be evicted and become street eligible.
A serious oversight from this guest speaker is his oversight of geopolitical issues in the world and the destabilization of commodities and poor leadership in the U.S. Federal Government that exacerbate poor economic performance and inflation. With a few exceptions global assets carry far greater risk than U.S. assets. I just don't see Jack's recommendations yielding returns.
Thanks
If inflation is so big reason to invest , do not do it. It means that inflation is huge.
Came to live in brazil over 10 years like and trader and analysis... Never see so much US big bank involved so much this few years here in stock market here they are just buying...
It is the best time to buy here....... Some blue chip is less -60% than last year... The best this company sell to china to us....
Volcker didn't target interest rates, he targeted nominal GDP and let interest rates rise until it stopped growing. This is not the approach Powell is now taking, with nominal GDP rising well above the future supposed terminal fed funds rate of 4%. Also saving rates nearly kept up with inflation so savers were safe and holding savings made sense. Not today when people have to flee cash savings due to interest rates being so far behind inflation. There were many periods of raising interest rates during the Burns era, plus prices and incomes policy, ineffective policy to do anything but target nominal GDP.
Bear through 2023 - I watch the 10 year yield and USD DXY daily and believe that the Fed's Objective is to devalue both our $31 Trillion in US National Debts and the continual deficit spending by both parties. I'm not a believer that the Fed wants 2% target inflation and think they want a continuing higher level like 4%-5% ongoing. They've been trying to control, through long bond purchases, bond yields. Now starting in September, they have $95 billion a month (QT) to reduce their balance sheet of bonds and MBS. We may see the 10 year move up to 4% or higher if there are not buyers for these bonds. As the global markets demand USDs as the reserve currency for trading, to pay off US denominated debts, and to liquidate stocks, lack of liquidity could break the debt markets. We are entering years of Stagflation and like in the 70s, stock prices go nowhere daily (after correcting). Why would the Fed want higher inflation rates you ask, if you can't ever 'pay it back', if you do not want to default, all you have left is "Debasement of the USD". S&P 2500 target for mid-2023.
Consuelo, your interviews are a giant step ahead in quality beyond any other stock market and economic videos I watch. The character and intelligence of your interviewees is profound. I always learn so much when I listen to you.
Thank you.
Neither US political party will raise much objection to the Fed raising its inflation target or taking longer to achieve their target because both parties are economically populist in orientation now. It’s only Democratic leaning economists from the days of Clinton like Larry Summers that are very committed to a low inflation environment. When the interest costs on US government debt start rising in earnest we will see how committed everyone is to low inflation. It’s not an accident that there was a push to index capital gains taxes for inflation during the last Republican administration.
Bonds are certificates of guaranteed confiscation. - (Late) Dr. Franz Pick
@9:32 the FED is independent not the other central banks in the world ! What a bizarre statement !
👍
@23:00 some of my friends bought Brazilian binds !
If there is a severe recession, the latin america will be default. Will not the bond be zero?
Reasonable views!
This guys is not making sense. He had to at the last minute say developed countries will outperform the US haha . Really give me a name.
What a sensible level headed guy.
41% of my net worth has been out of the stock market for months. When the market drops to my number, I'll come back in. While I'm waiting, I'm creating multiple streams of passive income for cash flow. I'm changing my game!
Maybe you should stick to that instead.
@@gordo3582 I will, it definitely has changed my focus and added to my diversification. After 28 years in the stock market I won't walk away for good. I'll just come back when the economic conditions are better for investing.
@@impala6464 Just be prepared, Lewis. You may be waiting a long time, so look for other opportunities.
@@audiophileman7047 Preparations is everything.
cliches and bromides here with standard keynesian thinking. Learn nothing of importance here.
Love the interview but I don't agree with the guest.