#240 Michael Howell: 'We're in a Liquidity Air Pocket' as Hidden Stimulus Fades

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 Show where he analyzes global liquidity trends and warns of market risks ahead. Howell explains we're entering an "air pocket" in global liquidity despite the overall upward trend that began in October 2022. He examines the "hidden stimulus" from Yellen and Powell that's now fading, details why the US Treasury's bill-heavy financing strategy exposes government funding to interest rate risk, and discusses a theory about Trump potentially revaluing US gold reserves to generate a $1.25 trillion windfall. For investors facing 2025's "much more uncertain year," Howell advises caution and suggests that real assets—particularly gold—may outperfor Sponsor: This episode is brought to you by Monetary Metals. https://monetary-metals.com/julia Links:  Website: http://www.crossbordercapital.com/ Twitter/X https://x.com/crossbordercap Substack: https://capitalwars.substack.com/ Book: https://www.amazon.com/Capital-Wars-Rise-Global-Liquidity/dp/3030392902 00:00 Intro and welcome Michael Howell 01:25 - Current state of the global liquidity cycle and the emerging "air pocket" 03:50 - The hidden stimulus from Fed and Treasury that's now fading 06:16 - How bill-focused Treasury financing is effectively "monetizing the deficit" 11:04 - China's central bank actions and their global economic impact 15:54 - Signs of a potential Chinese policy shift toward economic growth 18:35 - Parallels between Trump and Nixon's economic approaches 21:37 - Asset allocation recommendations based on market regimes 26:58 - Analysis of where we are in the liquidity cycle and future projections 31:49 - Why China needs to devalue against gold and implications for US policy 37:49 - The growing global debt burden and limited options for resolution 43:43 - Why the Fed must expand its balance sheet by mid-2025 48:48 - Tariffs as a negotiating tool rather than an end goal 50:39 - Final advice: investors should consider adding resources/gold to portfolios as protection during uncertain times