Michael Howell, CEO of Cross Border Capital, discusses the global liquidity cycle and its implications for financial markets, noting the current bull market that began in late 2022 is approaching its end. Howell highlights the critical relationship between debt and liquidity, emphasizing that the modern financial system is debt-dominated and requires careful monitoring of indicators like the MOVE index and SOFR spreads to detect potential crises. He also introduces the concept of "Treasury QE," where the government directs spending into strategic industries funded through the bill market, and touches on the potential role of stablecoins in monetizing government spending. Howell suggests that a weaker dollar, influenced by geopolitical strategies, could benefit commodity markets and gold, projecting a significant rise in gold prices due to increasing federal debt and Chinese monetary policy.
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