According to Wall Street and repo market legend Zoltan Posar, this recession will be different from previous ones. Below are the highlights from George Gammon’s review of Mr. Posar’s commentary on the global economy.
Zoltan Posar's perspective on the recession
After analyzing a commodity super cycle reveals the historical trends and cycles in commodity prices over the past 125 years, Zoltan Posar predicts that this recession will continue to have extremely high rates of consumer price inflation, rather the deflation that many predict. He describes a broken price signal and geopolitical situations that contribute to this expectation
Contrasting views on commodity prices
There is a disagreement regarding the future of commodity prices. While some argue that they may decrease due to supply constraints, others believe they will continue to rise. The interplay between demand and supply in the global market will determine the trajectory of commodity prices
Where Mr. Gammon agrees and disagrees
Mr. Gammon agrees that the marketplace is indicating the likelihood of a significant recession or even a global economic recession. He references red flags like the euro dollar futures curve and the steepening yield curve, which echo the sentiments from with Mr. Posar. However, Mr. Gammon disagrees that high commodity prices will persist, as he believes deflation will take over
Mr. Gammon provides a host of data points, charts, and detailed explanations on the fundamental concepts underpinning the debate around whether commidit prices will remain high, or fall.
Dig deeper into the people, places, and self-interests from this video that are pushing the world economic system to the brink:
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