Kontrarian Korner #77 - Infranomics

Yesterday Robert from Infranomics joined me on the podcast to talk about interest rates, financial plumbing, issues facing the US, and how to fix them. We got into the financialization of the economy, distortions in financial markets, and how inflation has eaten away at real wages and purchasing power. You can find Robert on Twitter and on YouTube, and for anyone who wants to dig into financial plumbing, he’s a must follow.

Podcast Summary

* SOFR spreads, liquidity issues, and what is going on in the repo markets.

* His view on interest rates, how the US stacks up with Europe, and why he thinks there will be a debt crisis in France and the UK.

* Wealth inequality being worse than it was in the Gilded Age, and the hyperfinancialization of the US economy.

* Why he expects higher levels of inflation over the next decade, and why the dollar will be weak against gold and other currencies moving forward.

* Wages, Social Security and Medicare, and Home Equity as a percent of GDP.

* Hourly wages in gold terms, the loss of purchasing power over the last couple decades, and the increase in deaths of despair.

* Potential fixes for the situation the US is in, including stricter immigration policy (legal and illegal), coordinating fiscal and monetary policy to compete with China, reindustrializing the economy, and ending the system that has prioritized capital over labor for the last 50 years.

* Book Recommendation: Ages of Discord by Peter Turchin.

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