Seeking Alpha

The Asset Allocator: The Pressure Has Been Building (Podcast)

by: SA For FAs
SA For FAs
Senior Editor, FA Content
Summary

Whatever problems we will have in this coronavirus decade will merely have been triggered by the coronavirus, but their seeds were sewn at an earlier time.

Those seeds include a huge run-up in debt, Federal Reserve activism and a trend towards economic nationalism.

This may be the decade of a debt crisis, hyperinflation and a re-shuffling of consumer priorities towards basics.

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The huge run-up in debt, Federal Reserve activism and a trend towards economic nationalism in the last decade may be the factors that most effect the current one, with the coronavirus pandemic merely triggering the shift.

This podcast (8:42) suggests that a squeeze on consumer staples and agricultural commodities could trigger inflation, and a surge in inflation could prevent the Fed from easing financial conditions, which could trigger a debt crisis.