In today's episode of Forward Guidance, Jack Farley is joined by Jim Bianco of Bianco Research and Luke Gromen, Founder of FFTT to discuss the situation the Fed finds itself in the face of the highest inflation in 40 years. With a debt to GDP over 100%, is the Fed trapped and inflation the only way out? Luke discusses the post 1971 Nixon shock's effect on the Dollar and walks us through the series of events which led to the Fed now being faced with, a "debt death spiral". Jim explains how inflation is President Biden's biggest problem and what this means for rate hikes ahead of FOMC. Are there signs of a recession in the U.S economy as commodities soar, the 2s 10s yield curve spread tightens & OIS spreads turn negative? Jim & Luke provide an absolute macro power hour you CAN'T afford to miss. To hear their thoughts on commodities, stress in the treasury market, effect of Russia & Ukraine conflict, sanctions speeding up the trend of de-dollarization & the death of globilazation, you're just going to have to tune in to find out. Filmed on March 9, 2022. __ Jim Bianco on Twitter @LukeGromen Luke Gromen on Twitter @biancoresearch Jack Farley on Twitter @JackFarley96 Blockworks on Twitter @Blockworks_ -- BCB is Europe’s leading provider of business accounts and trading services for the digital asset economy. With a dedicated focus on institutional payment services, BCB Group provides business banking, cryptocurrency and foreign exchange market liquidity for some of the world’s largest crypto-engaged financial institutions. BCB Business Accounts allow businesses to load fiat currency and cryptocurrencies for payments, operations and trading purposes. BCB’s clients can trade FX and cryptocurrencies quickly and at scale, with market-leading value. BCB’s BLINC network is the European crypto industry’s first instant settlements network and one of the first real-time payment networks of its kind to allow free, real-time transactions across fiat and digital currencies. For more information, please visit https://bcbgroup.com/jack. -- If you like this episode be sure to subscribe to our newsletter at https://blockworks.co/newsletter -- Timestamps 00:00 Introduction 00:35 A Pivotal Moment In History 11:10 Soaring Commodities 21:27 Inflation is America's Biggest Problem 29:17 Stress in the Treasury Market 34:40 BCB Ad 35:28 Dealing with Inflation 41:25 Yield Curve Inversion 51:47 Asset's To Own During Inflation 53:08 Worst Performers in This Environment 57:00 De-Globalization & Geopolitical Risk 1:02:55 Russian Bank Reserve Sanctions 1:07:32 De-Dollarization
