I joined Porter Stansberry on Friday morning for an interview on his radio show. For those of you who don’t know who Porter Stansberry is, he’s made a controversial and very public call in recent years that the USA is going to suffer a debt crisis similar to what’s occurring in Europe. So you can imagine that our views are likely coming from very different perspectives. Anyhow, we got into some pretty wonky stuff, but Porter was very fair with me and gave me ample opportunity to explain my position on several topics. Some of the items we touched on:
- A brief background on how I got into writing this website.
- My core strategy. How the machine works and how I implement a “funnel approach”.
- Why I believe QE has failed – I ramble a bit here, but I think it’s a rather concise explanation of why the program has failed. In short, there’s no precise transmission mechanism that allows QE to work.
- How the Fed works to stabilize the payments system. I misspoke slightly here. I shouldn’t have said the Fed “guarantees everything”. Rather, the Fed is in the business of guaranteeing that the payments system is always functioning smoothly.
- The Fed and central banks are in the business of manipulating interest rates to influence the economy.
- Why I don’t like the idea of QE equating to “debt monetization”.
- My favorite macro strategy here. I gave a pretty lame answer here, but it’s just so hard to be specific about investment strategies for people without knowing their specific investment needs.
The interview starts at the 17 minute mark. See here for the full interview and click the listen link.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.