Monetary Matters with Jack Farley The Liquidity Squeeze | Michael Howell On Funding Pressures, China’s Gold Yuan Devaluation, and Trump Admin’s Tariff Endgame
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Mar 12, 2025 
Michael Howell, an expert on global liquidity and asset markets, dives deep into the ongoing liquidity crisis. He warns of potential squeezes unless central banks step up their game. Howell discusses China's new gold yuan mechanism and critiques U.S. Treasury policies, drawing parallels to past economic strategies. The conversation also touches on looming tariffs and their uncertain impact on growth, alongside strategies for navigating today's market volatility with a focus on short-duration treasuries and gold investment.
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Liquidity Air Pocket and Debt Wall
- Global liquidity momentum is slowing, creating an "air pocket" in asset markets.
- The upcoming debt maturity wall, particularly from the COVID crisis, requires significant refinancing and liquidity.
Global Debt Refinancing Crisis
- The global debt refinancing burden is a major concern, not just a US corporate issue.
- High debt-to-liquidity ratios historically precede financial crises.
US Money Market Tensions
- US money markets show increasing tensions, signaling a potential wake-up call for the Federal Reserve.
- Falling bank reserves, if unchecked, could cause a serious rupture in US money markets.