John Taylor, FX Concepts Founder Chairman & CEO, spoke this morning on CNBC Squawk Box to discuss the economy, US dollar, and other important matters.

The following are the highlights of the discussion with the video in its entirety from CNBC:

  • Cutting deficit - economy will slow, less demand
  • Recession by year end? - definitely
  • Next year will be truly miserable for the economy
  • QE 2 will end eventually, QE 3 may start after FED reviews economic numbers
  • QE 2 doesn't work very well; it puts money into banks hands, banks are not lending any money out, and banks are investing the money in markets, driving market prices up. Great for trading
  • Bearish the US stock market, price of 1,000
  • In FX: Owns high interest paying countries but the last hurrah for owning AUD (Australian Dollar), ZAR (South African Rand), TRY (Turkish Lira)... Last hurrah and then BUY US DOLLARS
  • Raising debt ceiling good for bonds and good for US Dollar
  • Gold and Oil, commodities in general will come down in next year to 18 months
  • Predicting more deflationary problem than inflation
  • Definitely another recession coming
  • All of this is great for Republicans