China Backing Gold, U.S. Betting on Stablecoins — Falling Liquidity Warning | Michael Howell

In this interview, Michael Howell discusses the US economy, precious metals, and commodities. He differentiates between Wall Street and Main Street, suggesting the U.S. economy is robust due to government spending and capital expenditure from tech companies. Howell shares slides illustrating the global liquidity cycle, the risks from low bank reserves, and the relationship between Fed liquidity and the stock market. He also touches on the bond market, noting the Treasury's short-term debt issuance and potential long-term inflation risks. The conversation shifts to gold, with Howell explaining how China's monetary policy and accumulation of gold influence its price, and the potential divergence of global monetary systems between a Chinese gold-backed system and a US dollar system backed by digital collateral. He advises younger investors to divide their portfolio between core holdings and a tactical overlay, emphasizing monetary inflation hedges like gold, real estate, and quality equities.