The Real Crypto Cycle: What Happens When Global Liquidity Peaks | Michael Howell

In this Bankless podcast episode, Michael Howell discusses global liquidity as a master variable driving cycles, crises, and asset prices, including crypto. Howell explains his Global Liquidity Index (GLI), which tracks money flow through global financial markets, and the global liquidity cycle, a 65-month cycle reflecting debt refinancing. He highlights the debt liquidity nexus, where debt needs liquidity for rollovers, and liquidity needs debt due to collateral backing. Howell warns of a potential transition out of an "everything bubble" due to a stretched debt liquidity ratio and an upcoming debt maturity wall. He also discusses the implications of central bank policies, repo market tensions, and a potential capital war between the US (stablecoins backed by treasuries) and China (gold-backed monetary system), offering insights into asset allocation and investment strategies in this evolving landscape.