Danielle DiMartino Booth: Socialism Coming to America
Tom welcomes Danielle DiMartino Booth back to the program. Danielle is the CEO and Chief Strategists for Quill Intelligence, a research, and analytics firm.
Danielle discusses the rapidly growing debt paradigm and why the Fed believes they can increase debt faster and faster without consequence. Now they need Congress to pass additional stimulus programs to maintain the system. These stimulus programs keep the stock markets levitated while the idea of “Don’t fight the Fed” is suppressing and stifling competition and innovation.
Today, the country that grows it’s balance sheet the fastest can also devalue their currency the quickest. The worst-case scenario is stagflation, and in that environment, gold heads higher but buying power declines rapidly.
She outlines the risks of throwing money at people who aren’t working. There is a spiral of demand destruction that will lead to losses in higher-end jobs, further reducing consumption.
Tensions are building in the United States, and mortgage delinquencies are going to go through the roof. Many of Washington’s decisions are due to the elections, and those actions will be tough to reverse. This will likely lead to some form of permanent universal basic income. Americans will naturally be okay with UBI unless presented with an alternate plan such as massive infrastructure spending.
Time Stamp References:
1:15 – Trajectory of debt growth.
2:30 – Fed needing congress to issue stimulus.
5:20 – Countries, debts, currencies, a race to the bottom.
7:20 – Stagflation risks.
9:10 – Demand destruction and high-end jobs.
11:40 – Forebearance and foreclosures.
13:08 – Mortgage lending standards.
14:40 – Home equity and stocks.
15:40 – Overpaying with stimulus.
16:40 – Disposable income is up.
18:00 – Japan after WW2.
20:40 – Deflation will continue.
22:00 – Uncharted territory.
Talking Points From This Episode
- Rapidly growing debt and more stimulus.
- Currency race to the bottom.
- Demand destruction and fewer jobs.
- Risk of stagflation and widespread foreclosures.
Danielle DiMartino Booth is CEO and Chief Strategist for Quill Intelligence LLC, a research and analytics firm.
DiMartino Booth set out to launch a #ResearchRevolution, redefining how market intelligence is conceived and delivered with the goal of not only guiding portfolio managers but promoting financial literacy. To build QI, she brought together a core team of investing veterans in analyzing the trends and providing critical analysis of what drives the markets ? both in the United States and globally.
Since inception, commentary and data from DiMartino Booth’s The Daily Feather have appeared in other financial sources such as Bloomberg, CNBC, Fox Business, Institutional Investor, Yahoo Finance, The Wall Street Journal, MarketWatch, Seeking Alpha, TD Ameritrade, TheStreet.com, and more.
A global thought leader on monetary policy, economics, and finance, DiMartino Booth founded Quill Intelligence in 2018. She is the author of FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America (Portfolio, Feb 2017), a full-time columnist for Bloomberg View, a business speaker, and a commentator frequently featured on CNBC, Bloomberg, Fox News, Fox Business News, BNN Bloomberg, Yahoo Finance and other major media outlets.
Before Quill, DiMartino Booth spent nine years at the Federal Reserve Bank of Dallas, serving as Advisor to President Richard W. Fisher throughout the financial crisis until his retirement in 2015. Her work at the Fed focused on financial stability and the efficacy of unconventional monetary policy.
DiMartino Booth began her career in New York at Credit Suisse and Donaldson, Lufkin & Jenrette, where she worked in the fixed income, public equity, and private equity markets. DiMartino Booth earned her BBA as a College of Business Scholar at the University of Texas at San Antonio. She holds an MBA in Finance and International Business from the University of Texas at Austin and an MS in Journalism from Columbia University.