Michael Kao, former hedge fund manager and private investor, joins Jack Farley to share his thoughts on the turmoil in the banking sector, the consequences of the policy response from Washington, and the fate of the U.S. Dollar as the global reserve currency. Kao argues that the Fed’s recent assistance to U.S. banks allows the Fed to hike more in order to fight inflation.
Kao also shares his view on today’s consumer price index (CPI) reading, China, and the global oil market. Recorded at 1pm ET on March 14, 2023.
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Timestamps:
(00:00) Intro
(00:36) The Banking Panic Could Be Over, Says Michael Kao
(09:14) It's The Shadow Banking Sector That's In Trouble
(14:11) Has The Bank Panic Prevented The Fed From Tightening Monetary Policy?
(17:46) Has The Bank Panic Prevented The Fed From Tightening Monetary Policy?
(20:59) Blockworks Research
(21:57) Do We Have Structural Inflation?
(25:03) Black Swan: Oil To $300
(37:33) China's Oil Demand Is Lower Than Expected
(41:13) The U.S. Dollar Wrecking Ball
(46:24) Permissionless Ad
(47:26) China's Hidden Debt
(55:36) How Stable Is The U.S. Dollar As The Global Reserve Currency?
(01:08:36) Closing Thoughts On Bank Panic & Federal Reserve