Tom welcomes back, Jesse Felder. Jesse is the founder, editor, and publisher of The Felder Report. He discusses how Federal policy aimed to create a wealth effect through printing money, yet it has only generated bubbles and the illusion of growth. He goes on to explain that the more money a country prints, the less attractive that currency becomes to other countries.

We have reached a point where the Fed has to intervene and continue to monetize the debt, and the FDIC has stated they will cover all depositors, raising questions of moral hazard. Jesse believes we are heading for a hard landing in the second half of this year. In addition, an article from the Financial Times pointed out that the United States fiscal status is now similar to that of Greece and Italy due to their increasing unfunded liabilities and pension obligations.

Jesse emphasizes that precious metals are the only asset class that has historic precedent of preserving value in crisis and warns that investors are currently drastically under invested in this sector. He believes that investor demand could go through the roof and that it appears to be setting up for such a run.

Time Stamp References:
0:00 – Introduction
0:33 – MMT & Fed Wealth Effects
4:14 – GDP & M2 Spiral
8:58 – Foreign Dollar Demand
11:45 – Fed & Confidence
15:47 – Banks & Interventions
21:06 – The Feds Toolbox?
25:05 – Treasury Turbulence
28:26 – Liquidity, Rates, Energy
31:23 – Dollar & Liabilities
34:05 – Bad Fiscal Status
40:35 – Gold & Inflation
43:40 – Inflation Protection
46:45 – Hard Landing & Inflation
52:06 – A.I. & Disinformation
54:54 – Wrap Up

Talking Points From This Episode

• The Fed has been printing money for years, creating asset bubbles and artificial growth.
  
• U.S. fiscal status is now similar to Greece and Italy, with record deficits and unfunded liabilities.
  
• Precious metals could be the only asset class that holds its value in a crisis.
  

Guest Links:
Twitter: https://twitter.com/jessefelder
Website: https://thefelderreport.com/
Articles: https://thefelderreport.com/blog/

Jesse Felder is the Founder, Editor, and Publisher of The Felder Report. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Since moving to Bend, Oregon in 2000 and founding The Felder Report shortly thereafter his writing and research have been featured in major publications and websites like The Wall Street Journal, Barron’s, Yahoo!Finance, Business Insider, RealVision, Investing.com, and more. Jesse also hosts and produces the Superinvestors and the Art of Worldly Wisdom podcast.