Recession is Coming with James Lavish - WBD650

James Lavish is a Bitcoin advocate and writer of the
Informationist newsletter. In this interview, we discuss central
banks' manipulation of the monetary system, the eye-melting
bailouts to come, an inevitable credit event the Fed will be
unable to rectify, why BRICS pressure doesn’t currently threaten
the dollar, and how the US rejecting Bitcoin may lead to
hyperbitcoinisation.


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Last month US Treasury yield curves witnessed their deepest
inversion for over 40 years. This means holding bonds over the
long term results in a lower return than shorter-duration
contracts. It is a classic signal of a looming recession. It is
the market expectation that future interest rates will be cut in
order to stimulate an economy.


Whilst there are historical precedents for this situation, what
sets the current paradigm apart is the level of unsustainable
government debt: increasingly, countries are having to deal with
debt levels in excess of their respective GDP. Whilst high
inflation provides a way for reducing these burdens, such levels
of inflation are politically damaging, and further, risk damaging
economies and thereby tax income. Moreover, they risk damaging
critical banking infrastructure.


Interest rates, as a result, will oscillate: they have
accelerated to reduce rampant inflation, then, as is being
forecast, they will need to be cut to stimulate a stagnant
economy. All the while, commercial banks will be forced to search
for yield. And some of these banks will get on the wrong side of
the trade. Recent events have shown how quickly such situations
can spiral out of control.


But, for how long can governments keep bailing out the banks?
James Lavish, a leading market analyst, predicts a precarious
situation. For a variety of reasons, the US can’t afford to go
into a deep recession. As a result, James predicts a
“face-melting print” by the Fed to avoid this situation. But,
then, at some point the music will stop, and there could be a
watershed credit event where the Fed won’t or can’t step in. The
real question is, what comes after this event?