John Rubino, founder of dollarcollapse.com and seasoned financial analyst, discusses the precarious state of our economy. He warns about excessive bad debt threatening governments and consumers alike. Interest rate cuts may not alleviate overleveraged situations, echoing concerns reminiscent of the 2008 crisis. The conversation shifts to the milkshake theory, exploring how the dollar behaves in crises. John also highlights a growing preference for gold and cryptocurrencies as alternative reserves, signaling a transformational shift in global finance.
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insights INSIGHT
Current Economic Parallels
The current economic situation mirrors 1999 more than 1994, with overvalued assets and low savings.
A significant repricing of assets like houses and stocks is inevitable, likely leading to a recession.
insights INSIGHT
Dollar Strength and Inflation
During crises, the US dollar often strengthens due to its perceived safety, attracting foreign capital.
However, this relative strength can coexist with a decline in purchasing power due to inflation.
insights INSIGHT
Shifting Reserve Assets
Central banks buying gold signals a move away from the US dollar and towards neutral assets.
A monetary reset involving a new standard, potentially gold or cryptocurrencies, is possible.
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On this episode of the WTFinance podcast I had the pleasure of welcoming back John Rubino. John was the Founder of dollarcollapse.com, author/co-author of 5 books and has a great Substack.
During our conversation we spoke about John's thoughts about the economy, interest rate cutting, another real estate credit event, similar to the 90's, milkshake theory, new standard currency, gold miners and more!
0:00 - Introduction 0:57 - What is John seeing in the economy? 2:46 - Interest rate cut to help? 5:15 - Another real estate credit event? 6:40 - Banks to benefit from interest rate cuts? 9:29 - Similar to the 90’s? 12:33 - Drawn out recession or flash crash? 17:48 - Thank you! 19:08 - Milkshake theory and the dollar? 21:57 - New standard currency? 25:14 - BRICS buying gold while West sells 30:36 - Gold miners? 33:13 - One message to takeaway from our conversation?
John Rubino is a former Wall Street financial analyst and author or co-author of five books, including The Money Bubble: What To Do Before It Pops and Clean Money: Picking Winners in the Green-Tech Boom. He founded the popular financial website DollarCollapse.com in 2004 and sold it in 2022.
John's newsletter provides actionable advice, based on a couple of premises:
- The financial world is spinning out of control and will get considerably worse before it gets better.
- There are things we can do to improve our odds of surviving and thriving as the chaos unfolds.
WTFinance