Rebel Capitalist News Yield Curve Gives Warning, Elon Is WRONG About This, Dollar Milkshake Playing Out?
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Dec 20, 2024 
Brent Johnson, a macroeconomic expert famed for his dollar milkshake theory, shares intriguing insights on the current economic landscape. He discusses the recent uninversion of the yield curve and its implications for recession predictions, critiquing figures like Elon Musk on economic misunderstandings. Johnson dives into the complexities of U.S. Treasury demand and monetary dynamics, emphasizing the ongoing high demand for the dollar despite global shifts. He also explores the role of gold in asset management and liquidity during financial crises.
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Inverted Yield Curve
- The 10-year treasury yield has traded under Fed funds for an abnormally long time.
- This inversion is highly unusual given the increased risk associated with longer-term lending.
Uninverting Yield Curve and Recessions
- Uninverting yield curves often signal economic trouble.
- Recessions historically start after the yield curve uninverts, not during the inversion.
Misleading Economic Indicators
- Economic indicators like low unemployment rates don't guarantee a strong economy.
- Similar indicators existed before past recessions, highlighting the limitations of relying solely on such data.