Michael Howell, Founder & Managing Director of CrossBorder Capital, shares insights into the current state of global liquidity. He discusses the shift in liquidity creation from central banks to the banking sector and the implications of rising yields and debt issues, particularly in China. Howell also highlights the importance of gold as a hedge amid economic growth and inflation concerns. His call for financial reforms and a wealth tax emphasizes the urgent need for a financial reset in today’s complex economic landscape.
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insights INSIGHT
Fed Shrinkage vs Treasury Liquidity
The US Federal Reserve's balance sheet shrinkage is offset by Treasury-driven liquidity injections.
This dynamic expands bank balance sheets and fuels monetary inflation akin to the 1970s.
insights INSIGHT
Global Term Premium Drives Yields
Rising global bond yields are driven mainly by term premia reflecting increased government debt supply.
US yields follow global trends, disproving the narrative that US Treasury is losing safe haven status.
insights INSIGHT
China's Yuan Devaluation Strategy
China is actively reflating its economy by devaluing the yuan against gold, injecting substantial liquidity.
This monetary inflation helps address China's debt problem, signaling a significant policy shift.
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Interview recorded - 23rd of May, 2025On this episode of the WTFinance podcast I had the pleasure of welcoming back Michael Howell. Michael is the Founder & Managing Director of CrossBorder Capital.During our conversation we spoke about the overview of global liquidity, FED increasing liquidity, yields higher, Gold trend, debt reset and more. I hope you enjoy!0:00 - Introduction1:14 - Overview of Global Liquidity6:59 - FED increased liquidity?9:06 - What is driving yield increases?24:06 - What is happening in China?32:50 - Everything gold trend34:06 - Risk on positive35:21 - Bond yields higher?37:08 - Debt reset39:28 - One message to takeaway?Michael Howell is CEO of CrossBorder Capital, a London-based FCA registered, independent research and investment company that he founded in 1996. Previously he was Head of Research for Baring Securities and Research Director of Salomon Brothers Inc, the US investment bank. The liquidity methodology he pioneered monitors cross-border flows and Central Bank behaviour across some 80 countries world-wide. Liquidity flows are a central part of CrossBorder Capital's asset allocation advice, which is currently provided to major global investors, including institutional asset managers, government agencies, Central Banks and endowment funds. Michael has been in financial markets since 1981 and is a regular conference speaker and media commentator. He graduated from Bristol and London Universities with a finance doctorate, specialising in Fixed Income.Michael Howell -Website - https://crossbordercapital.com/Twitter - https://twitter.com/crossbordercapLinkedIn - https://www.linkedin.com/in/michael-howell-357b1416/?originalSubdomain=ukWTFinance -Instagram - https://www.instagram.com/wtfinancee/Spotify - https://open.spotify.com/show/67rpmjG92PNBW0doLyPvfniTunes - https://podcasts.apple.com/us/podcast/wtfinance/id1554934665?uo=4Twitter - https://twitter.com/AnthonyFatseasThumbnail image from - https://www.linkedin.com/pulse/us-dollar-ever-replaced-another-currency-what-might-replace-1uoxc/
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