“If you look back in history from 1971 back several hundreds of years, even millennia, you will see that almost all the time except during world wars, the international monetary system has an anchor. And the reason that matters is because an anchor restricts the ability to create liquidity in the system and restricts the ability to create debt,” he said. Citing the biography of former Federal Reserve Chair Paul Volcker, Watling said that lack of anchor was an accident of history but one that authorities couldn’t repair...
To understand how valuations have soared and the S&P 500 SPX, -0.11% has climbed 98% from its bear-market low, first there needs to be a little history. In a presentation on “TINA and the everything bubble” — a reference to the acronym There Is No Alternative — Longview Economics CEO and chief market strategist Chris Watling pointed out that the post-Bretton Woods financial system lacks an anchor.
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