Episode 14: One Thing Leads to Another

Irresponsible money printing and out-of-control deficit spending, exacerbated by (ongoing) supply-demand fundamentals that are increasingly skewed towards supply side issues (AKA shortages relative to demand) leads to inflation (AKA more money chasing fewer goods). 

Inflation leads to a decline in the purchasing power of paper currencies (globally), which in turn leads to an overtly and unrelentingly hawkish monetary policy from Central Banks, in our case the Federal Reserve Bank. A "restrictive" monetary policy leads to rising Bond yields (which is now turning into a global Bond market mini-melt-down), an exponentially higher cost to carry debt or borrow money and a rising US Dollar (given the fact that US interest rates have, and are, rising faster than most any other G-20 country).

Higher interest rates AND an appreciation in the currency leads to...tightening monetary conditions...less willingness and ability to borrow or lend, by companies, households, and banks...raising of cash and selling of securities by banks...emerging market currencies plunging in value, many to new multi-year or all-time lows...a crack in Gold and other commodities aside from Energy...and (seemingly) suddenly the specter of a sell-off in stocks appears, causing equity indexes to shudder and shiver a little. 

One thing leads to another ... and ALL of this likely leads to a global recession. 

Have we seen this before?? Does this "look" and "feel" like...1987? 
Or maybe it sounds a little like 1990?
Or, perhaps it feels more like 2007-08?
Indeed, it sure seems like 1978-79? 

Greg Weldon has been a professional trader-advisor and research provider through ALL of those time frames, and he says it feels, looks like, and seems like ALL of those times, and then some. 

Find out why in "One Thing Leads to Another", as Greg takes you "back to the future" once again, to get a glimpse of what the future is most likely to bring. 

ALSO, make sure to sign up on YouTube /user/GregoryWeldon to get "In a Macro-Market Minute", a free, daily, sixty-second video covering the topic Du jour, to see ALL the charts and overlay comparisons Greg mentions in today's podcast.