J.E.S: Rising Interest Rates and the Cleansing of the System
Tom welcomes J.E.S., the author of “The Real Truth About Inflation,” back to the show to discuss the effects of interest rate hikes and how long it will take to move through the markets and the economy. Jes explains why interest rate hikes typically have a lag of 6-9 months, although it can be anywhere between 4-22 months.
In addition, they discussed the Taylor Rule, wage-price spiral, the need to incentivize energy companies to increase production, and the notion of decentralization. They also discussed the use of gold, silver, and cryptocurrencies and their potential to challenge traditional fiat currencies.
They also discussed the Cantillon effect, which is when newly minted currency is given to certain people or entities before it is released to the public. They further discussed the liquidity trap and how it perpetuates a recession, as well as the risks of global recession and the impact it has on debt. Finally, they discussed the implications of the destruction of the NordStream pipelines and the control of the narrative by governments.
Talking Points From This Episode
- Effects of interest rate hikes on the economy
- Incentivizing energy companies to increase production and reduce prices
- Challenges with traditional fiat currencies and moving towards decentralization
- Complexities of the current global climate and the need to be aware of government decisions.
Time Stamp References:
0:00 – Introduction
0:40 – Rate Hike Lag Effects
7:50 – Recession & Crashing
10:33 – Unemployment Levels
14:20 – Rates & Pricing Money
16:20 – Rates, Demand, & Inflation
25:40 – Wage & Price Spirals
28:50 – Supply Side Inflation
40:40 – Gold as Good Money?
49:00 – Currencies Vs. Money
52:20 – Crypto as Competition
1:04:50 – Fed & Conditioning
1:06:50 – The Liquidity Trap
1:14:10 – China, Gold, & Trade
1:23:20 – Russia & China’s Friends
1:25:55 – Sanctions Impacts
1:28:40 – Winter Just Starting
1:29:55 – NordStream & Choices
1:32:40 – Demand Problems
1:34:30 – Shutdowns & Narratives
1:35:40 – Wrap Up