Finance & Fury Podcast

Welcome to Finance and Fury. Today, signs of financial instability that are emerging in markets – why are inflation and rising bond yields affecting fiat currencies – and what this means for markets – modern economy is interconnected and complex – so do my best to break these all down There is a growing recognition that price inflation has the potential to increase significantly in the near future It has already increased significantly in certain areas – timber/wood, food, and petrol especially in the US with the hacking of colonial pipeline The official estimates state that this inflation will be a temporary phenomenon – with it reverting back to limited to an average of 2% p.a. But the markets are more worried about the fact that this may not be a transitional phase in the short term, but that inflation is going to linger for years – hence there is increasing speculation about the need for interest rates to rise – creating further uncertainty in markets and sectors starting to de-risk from growth shares