On today’s episode of “On the Margin,” Jim Bianco of Bianco Research joins the show for a discussion on inflation. Arguing that we are “entering an era of persistent inflation”, Jim walks through the biggest winners in this market environment.
After correctly predicting the Fed’s hawkish stance ahead of most analysts, Jim shares his thoughts on the bond market pricing in a pivot throughout 2023. Jim goes on to walk through the bond market turmoil with the worst H1 performance being recorded since 1787.
Finally, Jim speaks on the contagion in crypto comparing the differences between DeFi protocols and CeFi lenders. But to hear that, you’ll have to tune in!
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Referenced In The Show:
Intel CEO Pat Gelsinger vents about Ohio chip plant delay: ‘It’s such a pivotal moment. Please don’t dither in Congress.’
Walmart Says Reducing Inventory Glut Will Take ‘Couple Quarters’:
Russell Clark: Brace For Structurally Higher Inflation:
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Listen to this episode on Apple or Spotify.
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Timestamps:
00:00 Introduction
02:00 “The Fed’s Credibility Is On The Line”
05:55 Entering An Era Of Persistent Inflation
15:00 Which Assets Win When Inflation Hits?
24:45 Fireblocks Ad
26:02 The Bond Market Expects A Pivot In 2023
35:30 Contagion In Crypto
47:05 Could Stablecoins Cause Systemic Risk?
55:55 Final Thoughts
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Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets….(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
My new favourite channel!!
Thank you so much guys!!!
The crypto world caught the perfect storm with the shut down people getting paid people sitting at home it was the perfect bubble storm Bitcoinn should really be probably priced 3000
You guys are almost there. But still you don't understand why bitcoin eats crypto in the end. In short, crypto is a playground for ideas to be built on top of bitcoin and the rest is just scams.
"we need too decentralize this world, not centralize it even more" -jim bianco. this quote alone was worth the price of entry. time to kick some models into gear. the entire last 10 minutes was money too. great convo.
Excellent interview and content – thank you my dudes!
There is no way crypto will be allowed to compete with sovereign cbdc.
These exotic coins are and only will be speculative, first in best out!
Even BTC is so power hungry the transaction premium will bena death tax..
33:00 "a month ago in early June, the forward rate curve was telling you the Fed would hike 50 in June, 25 in July and pause in September ; it tells you what the market thinks , doesn't mean it's going to be right " …
what the market ̶t̶h̶i̶n̶k̶s̶ hopes
All those human intentions like bicycles, telephones. It's obvious they added value. Bitcoin adds no value. It's not a store of value and it's not used for transactions. What crypto bulls miss is that crypto adds no value to society. At best its a casino like Las Vegas sands
So which asset classes to invest remains unanswered because the anchorman cut Jim Bianco while he was about to respond.
So which assets win during inflation?
This sure sounds like a Ponzi scheme, get you some gold and silver it's real money in the story
Everyone says "The Fed's credibility is on the line so they gotta hike until something breaks"
Can anyone explain to me; why after screwing up in one direction, screwing up in the OTHER direction makes the Fed MORE credible?
On the Margin is the best! Between Yusko and Bianco its must see YouTube! Never miss it! Thanks
Regarding your theory that the Fed won't pivot (cut fund rates) in order to continue the effort to tame inflation, how does that jive with the thought that the resulting cost of servicing the national debt is untenable (i.e. huge increase in allocation of taxes needed just to pay US debt interest) at just a few % higher rates? And-, how are the bottom 40% benefitting from fed action driving likelihood of layoffs higher & driving cerdit card rates higher? It is like cutting off your whole arm as the solution to having an infection in you finger tip.
Jim said a lot of. Good things and I generally like to watch him…..but
But 20k in Bitcoin is not capitulation.
Transportation, Factories and business who must assemble widgets cannot have home workers unless Robots become prevalent. 3D printing will become the new normal for manufacturing from auto repair to home building
As a result of recent supply chain disruptions, expect to see new high-tech manufacturing facilities popping up all across America. With new less expensive robots entering the game even this "cheap labor" is being replaced by machines. These factories that will hire fewer workers. https://brucewilds.blogspot.com/2022/04/supply-disruptions-will-result-in-new.html
It appears the so-called power brokers currently in charge plan to pull off a major transformation of how the world works. Remember, the best-laid plans of mice and men often go askew. More on what is planned in the following article. https://brucewilds.blogspot.com/2022/06/prins-claims-nothing-returning-to.html
It's been a terrific experience, I actually made my first ever 6figure profit of about $280,000 in 5months and I'm getting more active and knowledgeable in the market.
Interesting musings about the potentialities of backing future stable coins with something real, like Bitcoin or Ethereum. Remember when money was backed by gold, which was later diluted to (only) the US$ being backed by gold, which in turn was later (1971) diluted into oblivion when Nixon decoupled the US$ from gold. At that point money (currency) printing went into overdrive.
Gold & Silver used to have real intrinsic value, but when govts and banks relegated it to an improbable thing of the past, unbridled currency creation has ultimately led to the current gigantic market bubble and debt levels beyond comprehension. Michael Saylor said recently that gold was useless & hopeless and everybody should sell all of their gold and go all in on bitcoin…and some people believed him, and acted upon his proclamation.
If govts & banks can devalue gold into supposed oblivion, then what is stopping them from engineering bitcoin & ethereum into oblivion?..
You end up not talking about commodities..
At 35.22, is he saying that now is the crypto market bottom and is a good time to buy?
I believe that the fear and greed index with a new low value of 6 reflects how the crypto market reacts to a full blown recession. Yes, there were crypto bear markets in the past, either caused by regular cycles or extraordinary events such as COVID, but we never experienced a true economical recession in the crypto market. Keep in mind that crypto market is just another financial market (meaning that is 100% dependent on major macro economic events) and is more volatile than other markets (which is a good thing, cause that offers long term opportunity to get rich in an extended timeframe meaning buying like crazy during these times and selling at the peak of the next bull market – whenever that may be). The only "catch" is that you must NOT buy speculative cryptos (aka sh*tcoins), but the biggest, most "boring" coins right now (BTC, ETH, BNB) with big utility and market cap that will not go to 0 until the end of this bear market. I buy and just trade long term more than ever, I have made over 16` btc from day trading with Judith Sherwood Crypto in few weeks this is one of the best medium to backup your assets incase it goes bearish. Technical analysis is my second language.
Is Jim just out of the shower, or is he /soaking wet from his AC being broken?
Russell Clark
Eth lacks credible decentralization and neutrality. Bitcoin will be the base layer for crypto because it has both.
Shadowstatistics exposed real CPI of May of US is 16% in stead of official 8.6% using the method of 1970's. 8.6% is only the third lie of all lies.
Maybe the Fed should have raised and kep interest rate not lower than 5% thirty years ago when Greenspan defined iaarational exuberance.
When you ppl start talking about crypto the quality instantly drops so much i have to wonder how valid your finance views are 🙁