BONUS VIDEO: Are The Big Banks Still Colluding? | Nomi Prins

Echoes of the GFC...

Happy to be delivering a rare Friday interview to you today. I recorded this one recently with Nomi and wanted to get it to you while still fresh, despite Thoughtful Money’s packed calendar of upcoming content. Enjoy!

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The stock market remains near all-time highs and Wall Street's profits for 2024 are off the charts -- nearly TWICE as high as last year's.

Meanwhile, the wealth divide in America continues to widen as average folks struggle with the post-COVID surge in cost of living and record high interest rates on their debt.

What does this growing difference between the haves and have-nots say about fairness in today's society?

And how much farther can it be stretched before some financial and/or social boiling over point is reached?

For perspective, we're fortunate to speak today with Nomi Prins, reformed Wall Streeter, author of the best-sellers All The Presidents Bankers, Collusion: How Central Bankers Rigged The World, and Permanent Distortion: How the Financial Markets Abandoned The Real Economy Forever.

For an important discussion on the dangers of the growing wealth divide, click here or on the video below:

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BUY THE REPLAY! The replay of our full Fall online conference is now available for purchase:

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Adam’s Notes: Nomi Prins (recorded 10.14.24)

EXECUTIVE SUMMARY:

• U.S. GDP growth exceeded 2% in recent reports, but after inflation adjustments, actual growth is nearly flat, indicating stagnation. While not recessionary, growth is minimal due to limited strategic support for expansion. In contrast, resource-rich areas like BRICS nations show more robust growth, driven by their asset-rich economies and greater alignment with emerging trade alliances.

• Global central banks, including the People’s Bank of China and the Bank of England, have pivoted back to lowering rates. This shift has reignited a “Fed put,” where markets anticipate ongoing support from central banks, fueling continued stock market gains. However, this strategy could contribute to periodic volatility and exogenous shocks, given the dependency on low-interest liquidity rather than structural economic growth.

• The rise of BRICS countries and other non-G7 nations has catalyzed a gradual decline in the U.S. dollar’s role as the global reserve currency. The dollar’s share has fallen from over 70% to under 60%, as these countries increasingly trade in their own currencies. This multipolar economic structure is creating new trade blocs and alliances, evidenced by 85% of non-G7 trade now conducted in local currencies rather than U.S. dollars.

• Geopolitical tensions and national security concerns are boosting the strategic value of assets like