Friday, December 17, 2021

Steven Van Metre: The Fed is Running out of Tools to Save the Market

Tom welcomes macro money manager, bond king, and financial planner Steven Van Metre back to the show. Steven answers several listener questions later on in the show.

Steven discusses his latest video on why Q.E. does not mean money creation. The Fed is just swapping assets and forcing money into the commercial banking system.

Two main banks are absorbing most of the stimulus money. Most money is stored in the banking system and is not moving. They want to suppress and lower interest rates while pushing the dollar higher. The bond market doesn't work the way most people think. 

Investors need to understand this system because it will explain most things. The pandemic created many supply issues and caused a lot of money to flow back to the United States. 

This is now impacting foreign countries which are dollar starved. Steven is concerned that most investors are in the wrong asset classes and don't understand how bonds work. 

We're going to see interest rates move lower and the economy will likely head down.

- Source, Palisade Radio