Kitco News, Released on 8/10/24

Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, interviews Edward Dowd, Founding Partner of Phinance Technologies, who warns that the Federal Reserve finally broke something as interest rates remained at 23-year highs for over a year. Dowd explains that during this rate-hike cycle, what ended up breaking was another central bank – the Bank of Japan. He outlines the consequences of this and says the clock has started counting down towards a global debt crisis. Dowd shares his macro outlook while also weighing in on geopolitical tensions and potentially identifying the next ‘Black Swan’ event. He also gives his outlook on banking, projecting more stress and consolidation in the sector. Dowd warns of a scenario that could open the door to a central bank digital currency (CBDC). He also speaks about U.S. elections, the U.S. dollar, Bitcoin and gold.

00:00 Coming Up
01:49 Introduction: The Fed Finally Broke Something
04:01 Fed’s Actions and Economic Indicators
06:09 Global Debt Crisis and Japan
09:24 Yen Carry Trade
14:60 Geopolitical Tensions and Economic Implications
23:59 Banking Sector Outlook and CBDC Concerns
29:48 CBDCs
36:55 Macro Outlook
44:14 The Future of the Dollar and De-dollarization
51:11 U.S. Elections

Edward Dowd is currently a Founding Partner of Phinance Technologies, a global macro alternative investment firm. He is also author of the new book, “Cause Unknown: The Epidemic of Sudden Deaths in 2021 & 2022.” Edward has worked on Wall Street most of his career, spanning both credit markets and equity markets. Some of the firms he worked for include HSBC, Donaldson Lufkin & Jenrette and Independence Investments. Most notably, he worked at Blackrock as a portfolio manager where he managed a $14 billion Growth equity portfolio for ten years. After BlackRock, he founded OceanSquare Asset Management with two former BlackRock colleagues.

  debt, economy, Fed