To download the podcast – Right mouse click here (duration 31:13, 3:30pm)
1) Inflationary expectations in the marketplace are still running counter to central bank concerns. I side with the central banks on this one.
Commodity indexes with multiple expiration dates have not followed much higher, and the long-term prognosis for commodities is still not promising. As demand shifts lower, the economy stalls, which allows central banks to lower rates and bond yields. These lower rates lowers the costs of capital and allows producers to lower their costs of production, which leads to oversupplied markets.
The strucural deflationary forces could become large enough for the governments to begin seriously experimenting with universal basic income programs.
2) The logic fallacies of the Libertarian and alt-media crowd. They cannot comprehend why we have such a corrupt monetary and financial system. As a result, these analysts continue to underestimate this system’s power to exploit the masses.