Time Stamp References:0:40 - How his interest in gold started.4:00 - Don't get married to gold.5:55 - US Inflation and deflation era.12:30 - Financial markets used to reflect the economy.15:00 - The traditional business cycle has been replaced.18:25 - The problems with massive credit expansion.20:30 - Prices may run higher due to shortages.23:40 - Fed has printed a lot, stagflation is coming.27:50 - This is not your father's gold market.33:15 - Dollar correlations with gold.37:30 - Future Fed Outlook and Gold.38:40 - Examine markets dispassionately.41:00 - Repo market seizes up in September 2019.
Tom welcomes "outlier" investor Chris Temple back to the program. Chris discusses his often contrary perspectives on the markets and the Federal Reserve. In the late 70s and early 80s, the dollar was inversely correlated with gold, and the markets reflected the real economy. Today, everything is inverted, but a lot of investors and experts still have the old out-of-date mindset.
It's essential to understand what happened with gold and the dollar forty years ago during the Paul Volcker era. The traditional business cycle has been replaced by a Federal Reserve managed credit cycle. Most currencies today have been handled poorly, and Chris discusses the real causes of the 2008 recession.
Today, the trigger is the virus scare, and through each market cycle, the organic economy gets sicker. When you have too much credit, you get imbalances and that inflation inevitably leads to deflation. Due to the massive policy response, Chris expects a stagflationary environment going forward.