Jim says the Fed is underestimating QT. He says that balance sheet normalization will have real consequences, and Americans are about to learn about gold the hard way. Here’s why…
Jim Ricards interviewed on Wall St For Main St
Jim thinks the Fed will just let some short and medium term US government bonds expire and that no more buyers will be necessary but he doesn’t think the Fed can sell $1 trillion in assets off its balance sheet without causing or accelerating the next global financial crisis. Jim thinks the Fed is underestimating the impact its balance sheet reduction program (QT) will have on markets and the real economy.
Jason also asks Jim about how often major global central banks coordinate policy/intervention/manipulation, whether Kyle Bass’ 40 trillion RMB estimate for China’s credit bubble is accurate and how China will do a bailout as well as updates on the gold market, why China and the PBOC is playing ball with the US and putting further economic sanctions in North Korea and whether there will also be a potential trade war between the European Union (EU) and China after the EU announced new legislation to block Chinese companies from acquiring anymore European companies going forward?