Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management.“MikshTalk” is a global economics blog where he typically writes several articles a day about topics such as interest rates and central bank policy, gold and precious metals, jobs, and economic reports, all from an Austrian Economic perspective.
During this 25+ minute interview, Jason starts off by asking Mish if he thinks the Federal Reserve will raise interest rates anymore in 2017 and if that is correlated with the Fed trying to reduce its balance sheet? Mish thinks that Fed is probably done raising rates for 2017 and maybe even 2018. He thinks the Fed may even have to reverse course in the near future and that the Fed meaningfully reducing its balance sheet is a pipe dream considering the global economy, in his opinion, is not doing well.
Jason and Mish discuss the unexpected very large rally in copper prices and Mish thinks there's been a (bullish) trend change in gold recently. Gold may have bottomed in late 2016 or early 2016, but hardly anyone bought that bottom. Mish thinks more people are now buying the dips in gold and gold stocks. Jason and Mish also discuss why deflation is really good and why politicians, bureaucrats and central banks are always fighting deflation, China's economy, what happens in a US/China trade war, how Illinois trying to raise state taxes 33% on residents won't solve anything and if Mish likes anything President Trump has done so far?
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