Mammoth Interest Rate Hikes Are Causing Trouble In Sovereign Debt | Joseph Wang & William White

Today Jack welcomes William White, senior fellow at the C.D. Howe Institute, and Joseph Wang, former senior trader for the New York Federal Reserve.

They discuss why economic forecasts are so often wrong, how the world can escape the “debt trap,” and how central bankers face a trade-off between price stability (low inflation) and financial stability.

William White’s work can be found here: https://williamwhite.ca/
Joseph Wang’s writings can be found here: https://fedguy.com/
--
Follow Jack Farley on Twitter https://rb.gy/uesguv
Follow Forward Guidance on Twitter https://rb.gy/cy0dki
Follow Blockworks on Twitter https://rb.gy/igyzsj
--
Join Kraken, Binance, Arrington Capital, and 2000 others in heading to Dubai this fall for Algorand's DECIPHER conference, happening November 28-30. Tickets are available now -- use code DecipherFam22 for 25% off: https://www.decipherevent.com
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:
https://rb.gy/5weeyw

Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos

Find out more about the Blockworks video editor role here: https://blockworks.co/careers/
--
Timestamps:

00:00 Introduction
01:09 Looking Back At 2022
04:20 Quantitative Tightening (QT) is Causing Disruptions
11:55 "The Central Bankers Have Made A Profound Ontological Error"
23:17 Does Fed Chair Jay Powell Pay Attention To Economic Models?
25:25 Algorand Ad
27:09 If Inflation Is Supply-Side Driven, What Should Central Bankers Do?
40:43 The Debt Trap
46:04 Powell Is Not Worried About a Recession - Is This A Mistake?
54:39 Getting Out Of The Debt Trap
58:36 The Fed Has Lost A Lot Of Money
01:04:22 A Global Economic Slowdown is Here
01:09:52 Crypto Contagion and the Fall of FTX
--
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.