#161 Michael Howell On Global Liquidity, A Re-entry Point For Risk Assets, Monetary Inflation, Gold, The US Dollar

Michael Howell, CEO of CrossBorder Capital, an investment advisory firm, and author of the book, “Capital Wars: The Rise Of Global Liquidity,” returns to The Julia La Roche for episode 161 to discuss the global liquidity cycle and its impact on the economy.  He explains that liquidity is a key driver of asset prices and that the current liquidity cycle is pushing asset prices higher. Howell argues that the focus on interest rates and policy rates is misplaced, and that the long-term rate and liquidity are more important factors. He also highlights the importance of liquidity in the refinancing of debt and warns of the risks of a liquidity shortage. Howell suggests that investors should consider assets like gold, cryptocurrencies, and solid companies on Wall Street as hedges against monetary inflation. Links:  Website: http://www.crossbordercapital.com/ Twitter: https://twitter.com/crossbordercap Substack: https://capitalwars.substack.com/ Book: https://www.amazon.com/Capital-Wars-Rise-Global-Liquidity/dp/3030392902 Takeaways Liquidity is a key driver of asset prices and the current liquidity cycle is pushing asset prices higher. The focus on interest rates and policy rates is misplaced; the long-term rate and liquidity are more important factors. A shortage of liquidity can lead to banking and refinancing crises. Investors should consider assets like gold, cryptocurrencies, and solid companies on Wall Street as hedges against monetary inflation. Timestamps:  00:00 Introduction  1:38 Macro view + liquidity cycle  3:07 Interest rates  6:10 What really matters is the integrity of the US Treasury market  07:47 Hedging Against Monetary Inflation 9:16 Gold 11:56 US public debt  15:15 Monetizing the debt  18:06 Gold is the pole star in the financial system 20:40 US dollar 26:29 Inverted yield curve 31:37 Conclusion and parting thoughts