In this episode of Current Yield, Jim Grant, along with Evan Lorenz, hosts David Dredge to discuss volatility in the financial markets. Dredge shares his insights on identifying and capitalizing on cheap volatility, particularly in FX markets, and expresses concerns about the buildup of leverage and fragility in Europe. The conversation touches on global imbalances caused by central bank interventions in Japan, China, and Europe, and the potential for a "blow and suck" dynamic of capital reminiscent of the late 1990s. Dredge also reflects on his experiences studying under Janet Yellen and critiques the rational economic models used by central planners, advocating for a more realistic understanding of market participants' behavior. The discussion also covers the implications of a potential new Trump administration and its policies on Singapore and the broader global economy.
