Chris Whalen, chairman of Whalen Global Advisors and author of The Institutional Risk Analyst blog, returns to the show to discuss his newly released book "Inflated: Money, Debt and the American Dream."
Sponsors:
Monetary Metals. https://monetary-metals.com/julia
Kalshi: kalshi.com/julia
In this episode, Whalen offers a contrarian perspective on current markets, dismissing recession fears while highlighting a "silent recession" in commercial real estate. He draws parallels between Trump and Andrew Jackson, explains why the Treasury-Fed relationship is America's most important economic factor, and predicts zero rate cuts this year despite market expectations. Whalen argues that America's addiction to inflation has benefited asset holders while hurting average citizens, creating a housing affordability crisis and warning of an impending commercial real estate collapse that could become "the new subprime."
Links:
Twitter/X: https://twitter.com/rcwhalen
Website: https://www.rcwhalen.com/
The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/
Inflated book (2nd edition): https://www.barnesandnoble.com/w/inflated-r-christopher-whalen/1146303673
Timestamps:
0:00 - Introduction and welcome back Chris Whalen
0:31 - Discussion about Chris's new book release
2:04 - Current market analysis and tariff situation
2:35 - Trump's fiscal plans and Congressional challenges
3:58 - Credit to Chris for predicting tariffs as "distraction"
4:21 - Chris's investment positions
5:09 - America's addiction to debt
7:35 - Treasury market and Fed priorities analysis
9:02 - Banks' lack of credit demand issue
11:22 - Inflation misconceptions
13:43 - Trump/Jackson parallel
15:33 - Fed/Treasury relationship change post-2008
17:09 - Trump's vision for economic role of government
18:06 - Solutions for national debt
19:37 - Inflation impact across economic classes
21:33 - Housing market issues and starter home costs
24:56 - 2% inflation compounding effects
26:08 - Inflation's role in addressing national debt
28:49 - Recession outlook discussion
30:36 - "Silent recession" in commercial real estate
31:55 - Why rate cuts aren't needed
33:37 - Commercial real estate as "the new subprime"
35:29 - Government as housing lender of last resort problems
37:06 - Closing remarks
