Are We Nearing a “Crack-up Boom?” Tuesday, June 14, 2022

Alasdair Macleod, John Rubino & Quinton Hennigh are this week’s guests. Recently, Doug Noland, the portfolio manager for the McAlvany Management Tactical Short fund, wrote the following: “History suggests today’s festering issues in credit derivatives and structured finance will prove woefully worse than anyone today appreciates. And there is little policymakers can do to remedy the situation. The cycle has changed. The amount of stimulus necessary to one more time resuscitate Bubble Dynamics would risk hyperinflation.” But what needs to be understood is that inflation is not rising prices but rather it is diminishing the purchasing power of the currency and bank deposits. In a world awash with currency and bank deposits, the real concern is the increasing desire of economic actors to reduce these balances in favor of an increase in their ownership of physical assets and goods. As the crisis unfolds, we can expect increasing numbers of the public to attempt to reduce their cash and bank deposits with catastrophic consequences for their currencies’ purchasing power. The most logical physical monetary asset to flee to is gold because that monetary metal is widely accepted and it provides portability of wealth. Alasdair will help us understand what our policy makers do not understand and that is how America has arrived at this horrific financial state and how you can best prepare for the massive difficulties that lie ahead. While physical possession of gold is a starting point, another possible enriching asset to own is equity in companies that produce gold, a universally accepted monetary metal. Quinton will update us on one company that appears to be on the cusp of a gigantic high grade gold deposit, namely Lion One Metals, with its Tuvatu gold deposit in Fiji.