Chris Irons: The Next Lehman Moment
Tom welcomes back Chris Irons, host of the Quoth The Raven podcast, to the show.
Chris discusses his new blog and article that he wrote on why the Fed’s game is rigged. The Fed’s main function today seems to be preventing market corrections. This is causing numerous issues along with making most people complacent.
Recently, Fed governors have been caught trading millions along with politician’s families including Pelosi’s husband. The whole game is rigged and it’s obvious that those in charge have a conflict of interest.
Chris expresses caution about crypto even though he understands the argument for and against it. If crypto is a bubble and government regulation intervenes we could see two trillion in problems and systemic risk to some companies.
Evergrande has 300 billion in liabilities which in a world of psychotic MMT isn’t that much. Banks in the U.S. are now able to borrow whatever amount of capital they need to stay afloat. MMT policy is unhealthy, creates moral hazards, and is terrible for the country along with the middle class.
The next Lehman moment might be the collapse of everything since it’s all now too big to fail.
We’re witnessing the results of excess liquidity in items like NFTs and other speculative assets. These things are overflow valves for excess liquidity. These are nothing but fraud and are distorting value. It’s all euphoric nonsense and it won’t be different this time.
There is no doubt that China wants a position a the superpower table. They have been quite meticulous with how they manage their money supply and are more cautious than the United States. It seems likely that they will return to a gold standard to give their currency strength.
Lastly, Chris and Tom give us some suggestions for focusing on what you can control in life.
Talking Points From This Week’s Episode
- Chris’s article on the Fed and market distortions.
- Crypto, two trillion in risk and MMT policies.
- Speculative manias and finding real value.
- China’s digital currency and the possibility of having a gold backing.
Time Stamp References:
0:00 – Introduction
1:04 – Conflict of Interests
10:10 – Solutions?
12:30 – Crypto Concerns
18:15 – Systemic Questions
24:10 – Bubbles & Value
30:30 – Evaluating Gold
36:02 – China, Gold, & Currency
44:20 – News & Positivity
47:34 – Wrap Up
Chris’s Offer: https://quoththeraven.substack.com/palisades
Chris Irons is the host of The Quoth The Raven Podcast.