Kerry Lutz and Jim Welsh dig into why the U.S. economy looks stable on the surface, with growth near 2.5%, but may be far less balanced underneath. Jim warns that government spending is masking a widening divide, where the top 10% of earners drive consumption while lower-income households feel increasing pressure.

Despite recent market weakness, Jim notes that internal indicators like the advance-decline line remain firm, historically limiting the depth of market corrections. This helps explain why markets continue to hold together even as risks quietly build.

They also discuss President Trump’s global negotiating strategy, including Greenland, and how climate change is reshaping geopolitical priorities. Both agree Trump’s provocative rhetoric is often calculated and effective.

Jim closes with insights on the dollar’s recent decline, suggesting crowded short positions could fuel a rally. He expects gold and silver pullbacks before rebounding, cautions against long-term bonds at current prices, and anticipates rising volatility as money rotates across markets and political pressure builds ahead of midterm elections.

Find Jim here: https://www.macrotides.com

Find Kerry here :https://khlfsn.substack.com and here: https://inflation.cafe   

Kerry's New Book “The Armstrong Economic Code: The 5 Truths Investors Must Never Forget” is out now on Amazon!

Get your copy here:  https://a.co/d/bvYbZOz

“The World According to Martin Armstrong – Conversations with the Master Forecaster” is a #1 Best Seller on Amazon. .

Get your copy here: https://amzn.to/4kuC5p5

This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit khlfsn.substack.com/subscribe

Folgen-ID: 1000746339226

GUID: substack:post:185476454

Erscheinungs­datum: 23.1.2026, 14:01:00