Can the Fed Save Us? – Live with James Bianco

Published on
March 31st, 2020
Duration
62 minutes

Awash in Oil – Live with Tracy Shuchart


Can the Fed Save Us? – Live with James Bianco

Live ·
Featuring James Bianco

Published on: March 31st, 2020 • Duration: 62 minutes

The federal funds rate has gone to zero. Ostensibly unlimited quantitative easing operations are underway. Hundreds of billions are being pumped into the repo market, and the Fed’s balance sheet is set to explode to all time highs. The question is – will this be enough? Can the Fed calm markets during these times of fundamental uncertainty or is the bloodbath on Wall Street just getting started? Given the limited arsenal of tools available to central banks around the world, now is the time to understand the efficacy of monetary policy in combating this unique crisis. James Bianco, president and CEO of Bianco Research joins us to discuss everything macro, the questionable legality of ETF & corporate bond purchases by the Fed and whether these aggressive policy decisions can actually save the day.

Comments

Transcript

  • SS
    Shanthi S.
    10 April 2020 @ 10:10
    This was one of my all time favourite RV interviews. Thank you guys. Brilliant stuff.
  • JC
    Julie C.
    6 April 2020 @ 23:03
    I'd echo many of the comments that he seems weak on BTC.
  • MH
    Mark H.
    5 April 2020 @ 20:25
    I really appreciate the excellent technical explanations. Really good interview.
  • AW
    Adam W.
    5 April 2020 @ 12:25
    It does sounds like Bitcoin to me. 2nd layer solutions enabling instant payments are very mature.
  • CN
    Christian N.
    4 April 2020 @ 21:12
    Milan is not the capital of Italy ;-) 33:40
  • RK
    Roger K.
    4 April 2020 @ 15:09
    Don't know sorry to say this: but I prefer if Jim is left to talk rather than keep disturbing him
  • DS
    David S.
    2 April 2020 @ 07:05
    If part of the difference in the price of paper gold vis-a-vis physical gold is caused by margin calls, that difference will eventually narrow. I agree that physical gold, if it is not stolen, is better than paper gold. Of course physical gold still in the ground is harder to steal as it has not yet been mined. DLS
    • DS
      David S.
      4 April 2020 @ 00:21
      Except of course by governments. DLS
  • AB
    Andrew B.
    3 April 2020 @ 01:46
    Sure sounds like Bitcoin to me
  • DL
    Dominic L.
    1 April 2020 @ 22:56
    A lot of good content here, minus the "China virus" comments ("I'm not even going to speculate on whether [they spread the virus] on purpose" ... ? seriously??) and the comic misunderstanding of BTC. Anyone who thinks Libra has a better chance than BTC should have the humility to recognize they have no idea what they're talking about.
    • ef
      erik f.
      2 April 2020 @ 07:19
      You think the most independent medium will be the strongest to survive, but it's whatever has the most potential of being adopted by major players. Being rolled out by a FANG company, and embraced by the govt because they have a means of control is a big leg up
    • SB
      Stephen B.
      2 April 2020 @ 16:11
      Central Banks and Governments have a lot of power to choose the currency we adopt by determining which currency is accepted for tax payments. As long as the US$/Euro/Yen/GBP etc. is the only acceptable currency for tax payments, banks + corporates will continue to adopt them for their lending and accounts. Governments and CB's will very likely move everyone over to a global crypto, at some time but you can be sure that it is going to be a one issued and controlled by them. That rules out Btc and Libra.
  • AW
    Andrew W.
    2 April 2020 @ 06:36
    Great interview! I strongly disagree with one thing that Jim claims -- that neither gold nor bitcoin are the non-fiat alternative that world trade could move to. They are both perfect for the purpose. It appears Russia and China have been gearing up for a world in which final settlement is done in gold. I don't see why BTC couldn't take on the role as well. Jim mentions he's waiting for a digital alternative that doesn't yet exist that wouldn't be manipulated by central banks and would become commonly adopted. But if it's not bitcoin, then any new alternative wouldn't have confidence knowing that it could fail to adopt like BTC. This is the BTC or bust argument.
    • ef
      erik f.
      2 April 2020 @ 08:13
      We're seeing in real time why being able to create dollars to support liquidity it's essential. You can't get that with gold or BTC. What you're proposing might fix other issues with creating dollars, but it's an economy killer in the meantime. No country will adopt that now.
    • SB
      Stephen B.
      2 April 2020 @ 16:03
      I just don't see the BIS and Western Central Banks voluntarily giving up there control of the money supply. They have already been dropping broad hints that the next step is to move to a global digital crypto, issued and controlled by them. To them, gold and Bitcoin are the enemy.
  • us
    udaiveer s.
    2 April 2020 @ 07:08
    Bitcoin is falling because of mining sell pressure.
    • TP
      Timothy P.
      2 April 2020 @ 14:26
      Not entirely correct. Bitcoin fell because its a store of value, and like Gold, it was a rush for liquidity that fueled the selloff. Ark Invest has a good breakdown of the mining space and its factors, you should look that up. I'd also check the BitMex blog for how their risk engine went haywire and contributed to the decline.
  • CW
    C W.
    2 April 2020 @ 08:52
    Great interview. With Ed and Jim, I expected this to be a gem. It did not disappoint. This may explain why physical gold is at a rich premium to the front months COMEX future. It is also super interesting. To me at least https://hiddenforces.io/podcasts/josh-crumb-gold-futures-gold-price/
  • DS
    David S.
    2 April 2020 @ 06:57
    The question Can the Fed Save US?" was never answered. My answer is simple no. The only reason we are not bailing out US banks is they were not allowed to lever up to created trillions in losses. DLS
  • DS
    David S.
    2 April 2020 @ 06:55
    It is interesting to know that Europe could not possibly run without the Euro. It was not easy, but it did work before the political Euro was introduced. The concept of the European Economic Community is rational in setting a lot of standards. If Europeans really want the Euro, they will have to kowtow to unelected officials in Brussels. They may be forced to do it in a pandemic, but it will never hold. I would rather own paper gold than Euros. DLS
  • LA
    Linda A.
    2 April 2020 @ 04:59
    Real Vision u are kicking it with these great interviews & interviewers. Bianco is great - smart & thoughtful! These interviews are helping me to cope during this depressing time. I send my good wishes to all during this uncertain time..
  • CN
    Charles N.
    2 April 2020 @ 00:46
    There's something about the audio in Ed's last couple of appearances. Most of the speakers' voices come across as low and/or muffled. I just listened to the Daily Briefing (April 1) and both speakers were easily heard and understood. The interview here with Mr. Bianco is similar to the one with Tracy Shuchart...somewhat like trying to hear a conversation in another room. That being said, it is still a joy to have Real Vision on my screen. Cheers to all.
  • PS
    Pavel S.
    1 April 2020 @ 23:09
    Amazing and well explained on specific examples. Thank you!
  • bw
    brent w.
    1 April 2020 @ 22:59
    Can never get enough Jim Bianco!