Interview: Liquidity, Inflation, Stocks and Property

Posted April 8, 2021

I was recently interviewed by Hunter Thompson for the Cash Flow Connections Real Estate Podcast.

This was an interesting and far-reaching conversation.  I highly recommend it.

Topics covered include:

• The tidal wave of Liquidity that is now driving asset prices to new record highs.

• The US Treasury Department’s bank account at the Fed (i.e., the Treasury General Account), how that account came to amass $1.8 trillion and the impact that can be expected on stock prices and property prices now that the money in that account is being run down. 

• Bank Reserves: what they are, why they represent one measure of Liquidity in the Financial Markets and why they are likely to continue surging through the end of the year.

• The battle being waged in the financial markets between surging Liquidity on the bullish side and mounting inflation fears on the bearish side; and why Liquidity is winning.

• Why Money Supply Growth has soared by 25% over the last year, while the Inflation rate, at 1.5%, remains well below the Fed’s 2% target.

• The paradigm shift in how the US economy is being managed by the government.

• What the pendulum swing in government policy could mean for the financial markets, inflation, the economy and national security.

• Why very large fiscal stimulus could make the economy less dependent on rising stock prices, and what that could mean for Fed policy.

I really enjoyed this conversation with Hunter. I hope you will listen to it now.

After you do, for a much more detailed explanation of all these topics and to gain a comprehensive understanding of how the economy and the financial markets really work in the 21^st Century:

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Click HERE to listen to this Cash Flow Connections interview now.  

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