Yesterday I had Tom Luongo back on the podcast to discuss some of the recent chaos in financial markets. We covered some of the connections between moves in different currencies and markets, the geopolitical picture, commodities, and much more. I assume most of you are familiar with Tom’s work, but if not, you can find him at Gold Goats n’ Guns and on Twitter.
Podcast Summary
* Why his focus in the cross market moves was the rise in the Euro, British Pound, and the Canadian dollar, not the basis trade.
* The problem with believing we have free markets.
* How he sees things resolving between the US and China.
* Waiting to see how Canadian elections turn out to see what Trump’s approach to Canada will look like.
* One of the biggest advantages of the US is access to deep and liquid financial markets.
* The progression of spending cuts and what they need to focus on, and why it’s important that they cut off the spending that was being used to try to destroy the US (USAID, NED, etc) first.
* His view on commodities, from gold and silver, to oil and copper, and why recent moves there are selling a recession trade. He isn’t sure if that is real or not.
* Gold as a safe haven and as the collateral for the future.
* Bitcoin, and the Treasury demand driven by the growth of stablecoins.
* Europe’s plans for Ukraine, and the progress of the talks between the US and Iran.
* The difference between Trump the person and the character he plays on TV.
* The budget resolution, the tax cuts, and tariffs, and how they are related.
* Why he is bullish on the Russell 2000 longer term if Trump is successful on deregulation and tax cuts.
* Book Recommendation: The Chronicles of Thomas Covenant by Stephen Donaldson.
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