In this week's Off the Cuff podcast, Chris and Brain Pretti discuss:
- Global Capital Flows
- The hot money is fleeing Asia and inflating Western assets
- What Recovery?
- GDP growth appears to be returning to 0%
- What Will Happen When The Fed Raises Rates
- Or better put: can it raise rates without destroying the economy?
- Lack Of Competent Leaders
- Those making the big decisions are not the ones we want making them
Brian Pretti returns to Off The Cuff this week to provide an update on his global capital flows theory, as well as flag the results of the new GDPNow model, which show economic growth in the US falling back to 0%.
In short, capital continues to flee from the rest of world — from China, in particular — into the US. Why? Fear. Fear of lower returns and higher risk (both market and confiscatory) than their native countries.
As a result US and other Western assets, especially real estate, is being blown into tremendous bubble proportions. How will all this end?
Meanwhile, economic growth around the world continue to stagnate. The US economy, which has helped prop up much of the rest of the world, is also showing newfound signs of weakness.
by jennifersam07