Notes From Underground: The Story of Two Doctrines

Happy New Year! We’re starting 2023 with a podcast I recorded with Richard Bonugli and Marc Faber. We didn’t make any forecasts (in traditional CNBC fashion), but just discussed potential outcomes in the macro global financial situation.

Critical to the discussion was what I am calling the two doctrines: Paul Volcker and Ben Bernanke. The Volcker Doctrine is based on wringing inflation out of the economy when it begins to boil, while the Bernanke Doctrine is focused on preventing deflation from gaining a foothold. In the last five decades the US and Europe have not experienced DEFLATION as the central banks and fiscal authorities have PREEMPTED the onset of such an outcome. In DEBT-PLAGUED economies DEFLATION is the worst potential outcome. Remember, Volcker confronted a 39% DEBT-TO-GDP ratio while today Jerome Powell confronts a 106% ratio and even much greater private/corporate debt. Enjoy the PODCAST with a strong libation or sugar-free drink for too much stimulant will not be advised.

Click here to listen to the podcast.

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4 Responses to “Notes From Underground: The Story of Two Doctrines”

  1. kevinwaspi Says:

    And you thought I was pessimistic!

  2. Chicken Says:

    And 2,000 Private jets flying into Switzerland to convince us to eat bugs instead of meat.

    • Yra Says:

      Chicken —my ten year battle cry—pepper spray davos

      • Chicken Says:

        I was very disappointed to lean beetle burgers weren’t on the ceremonial menu, however, I was relieved to see so many helicopters shuttling important people back and forth from the event and airport.

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