#MichaelHowell
#CrossborderCapital
#GlobalLiquidity
#MarketImpact
#Cryptocurrency
#Stocks
#Gold
#EconomicTrends
Crossborder Capital’s CEO Michael Howell has given a bold perspective on the prevailing economic climate, proposing that contrary to popular belief, there is an increase in global liquidity as opposed to monetary tightening. Howell, an expert in international finance and economics, has devoted much time to studying and addressing these liquidity facets and their subsequent repercussions on the markets. Utilizing his platform at Crossborder Capital, a London-based independent research and investment company, he recently shared his input on Forward Guidance. He delved into the surges in global liquidity and its positive impact on liquidity-sensitive commodities like stocks, gold, and cryptocurrencies.
Contrary to commonplace belief, Howell’s comprehensive analysis highlights that the Federal Reserve has silently been pouring liquidity into the markets. This under-the-radar move is quite a contrast to the narrative of monetary contraction making headlines. He pinpoints that despite a decrease in the Fed’s balance sheet in the previous year, the Fed’s liquidity actually escalated by 12 to 15%. This trend isn’t a brief phase, Howell says, but rather a part of a longer-term model of monetary inflation, with worldwide central banks engaged in what he terms as shadow quantitative easing and shadow yield curve control. Howell further explains the U.S. Treasury’s decision to shorten the duration of its debt issuance as an added layer of complexity. He also agrees with the popular sentiment among younger investors that cryptocurrency might be an effective hedge against monetary inflation.
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