Macro Voices MacroVoices #445 Jim Bianco: Still No Landing, and Inflation is Not Transitory
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Sep 12, 2024 
Jim Bianco, founder of Bianco Research and a keen observer of financial markets, shares his insights on the current economic landscape. He argues that the Fed's policies have become increasingly political, risking potential errors. The conversation dives into persistent inflation trends and the crucial role of precious metals like gold as a hedge. Bianco also highlights the implications of China's economic issues on global markets and discusses recent commodity trends, particularly in oil and uranium, as market dynamics shift.
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Fed's Political Shift
- The Federal Reserve has become political, breaking its tradition of holding policy steady through election years.
- This break suggests a potential policy error driven by cooling economic data.
China's Impact on Global Markets
- China's economic slowdown is significantly impacting global commodity and energy demand.
- This slowdown, reflected in low Chinese interest rates and struggling GDP growth, influences global interest rates, particularly in developed markets.
Shifting Treasury Landscape
- China's divestment from US Treasury debt has been ongoing for 12 years, correlating with reduced US-China trade.
- Japan replaced China as the largest Treasury holder, utilizing the yen carry trade, which influences US bond markets.