The whole world is based off energy, so shutting down energy through governments' inflationary policies, has it put too much pressure on sovereigns? Germany, for example has been a net exporter, but now they are a net importer and the costs have become so high that they had to shut down manufacturing...
Most of Inflation is caused by the energy crisis. Inflation and Energy are so intertwined that this could lead to the end of this sovereign debt cycle. These nations are dumping US treasuries to bring in money to get more energy.
All while Jerome Powell and the Fed have stated they are going to "keep at it, until the job is done" when it comes to inflation and interest rates... Â But many believe they are going to pivot sooner than later which is causing the recent rally in the markets! Â So are the markets calling a Fed bluff?
I discuss all this and more with my guest Brent Johnson from Santiago Capital.
Brent Johnson Twitter: @SantiagoAuFund
Santiago Capital: santiagocapital.com
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