Jul 25, 2022
Summary:
The world is bankrupt. How does the impending global bankruptcy
affect you? This episode’s guest chats with me about how we got to
where we are economically, and what we can expect in the coming
years. Jerry Robinson’s saying is “Follow the Money,” but in order
to do so, we have to consult past decisions and events to
understand the economic effects that come into play years later.
This is especially relevant to the pandemic and the policy
responses back in 2020 that produced the inflationary situation of
2022. Similarly, what happens in this year will dictate our
financial situation in the next 2-3 years, which will hopefully
look better as rates adjust and balance is restored. Tune in for
expert insight from Jerry.
Highlights:
-We’re in a problematic time of our own making; we’ve depended upon
a system that clearly is leading us to a place where people cannot
afford basic sustenance in many places
-We’re in a very unprecedented time, monetarily speaking. People
are realizing that something is very wrong with the US and global
economy
-2022 is a function of the policy responses we had in 2020. We
discuss this particularly in reference to COVID and the response of
the federal reserve
-Subsequent years will be functions of what happens in 2022
-We don’t know how long the insanity will go, but we do know that
we can’t expect to have unprecedented intervention in the economy
without unprecedented consequences
-You can’t just follow the money now, you have to go back in
history and pinpoint where things start
-They can’t lower interest rates now because policy drove them to
this situation
-The fed will reach a place where they increase interest rates, and
inflation will then start to settle
-Everything is down across the globe, and it’s coinciding with rate
increases
-The initial inflation rate has already come down in some ways
(i.e. oil, copper, gold, etc.)
-When input costs come down, the inflation figures will come
down
-We may not go back to 2% inflation any time soon, but the fed is
managing expectations
-A decrease in inflation, even if it isn’t extreme, will feel like
a victory
-When things get somewhat better, this is where a lot of money is
made
-When pessimism is rampant, investors look for high quality,
dividend paying companies
Useful Links:
Financial Survival Network
Follow the Money