Gary Shilling Forecasts the Economic Impact of Tax Cuts and Deregulation on Treasuries and the US Economy.
In this episode of Hidden Forces, host Demetri Kofinas speaks with economist Gary Shilling, who famously called the bottom in what has become a 36-year bull market in US Treasuries. He is the author of numerous books including his most recent “The Age of Deleveraging,” a strategic manifesto for managing wealth during an epoch of deflation. He also produces a monthly newsletter, which “includes an extensive overview of the economy…exhaustive investigations of key economic indicators and how they affect your investment portfolio…detailed examinations of emerging business and financial trends that could spell opportunity or danger to you and your investments…our investment themes…a wrap-up of recent economic data…and Gary Shilling’s back-page Commentary on matters great and small.”
In their conversation, Demetri Kofinas and Gary Shilling take stock of the tax cuts being proposed and the deregulatory changes being enacted by the Trump administration. They consider the impact that deregulation and higher after-tax income will have on the economy and on equities after nine years of economic expansion. With corporations standing to benefit most from tax cuts proposed by Senate and House Republicans, what do individuals stand to gain from the Trump tax plan? Are there benefits to rolling back some of the financial regulations passed after the financial crisis of 2008? What does the employment picture look like for the US economy? How do job prospects and wages fare in the face of rising asset values and growing debt burdens? If Gary Shilling is right and treasuries remain in a bull market, what does this mean for the fate of stocks, commodities, and the US dollar in 2018? Will the price of oil continue its recent rise, or may some combination of weak demand and oversupply hamper prices? How will the Federal Reserve’s ongoing tightening affect the economy and are we destined to see an inversion of the yield curve for 10-year US Treasuries? Gary Shilling also gives us his two cents on bitcoin, and why he thinks the cryptocurrency is massively overvalued.
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Producer & Host: Demetri Kofinas
Editor & Engineer: Stylianos Nicolaou