In this clip, Hugh Hendry and Raoul Pal discuss the fate of the U.S. dollar as it faces unprecedented headwinds, particularly as Modern Monetary Theory (MMT) is implemented in order to paper over the cracks in the financial system. Raoul and Hugh explore how gold could perform in a debt deflation and whether central bank largesse is sufficient to help risk assets perform. After a thorough investigation into the interplay between volatility and price, they contemplate the prospect of a “gilded depression” – one in which cataclysmic economic disaster is kept solvent by never-ending fiscal stimulus and where asset prices are continually re-inflated by incessant injections of central bank liquidity.
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