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 21st Century:
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Click HERE to listen to this Cash Flow Connections interview now.
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