Time Stamp References:0:40 - Thoughts on Powells Speach.4:10 - Interest rates and gold.7:50 - Gold reserves and Fed actions.11:55 - Silver price in 2011 and now.16:30 - Potential for a Comex default.22:30 - Institutional investor interest.26:50 - Dollar direction and ZIRP.
Tom welcomes a new guest to the program, Craig Hemke. Craig is the founder of TF Metals Report Website, which includes his writings, their regular podcast, and a community of likeminded people focused around the precious metals sector. He is also a host of the Sprott Weekly Wrap-Up.
Craig discusses how the Fed has now reached historic low-interest rates and why they plan on staying in this range for the foreseeable future. Fed Chair Powell wants to spark higher inflation and continued low-interest rates to manage the massive debt bubbles in government, corporate and private debt. The markets began seizing up in December of 2018, and everything since then has been heading toward negative interest rates. Craig believes we are already in yield curve control and that the next shoe to drop will likely be an official announcement.
Craig believes the Fed is doing everything it can to keep the system on life support. He suspects that when markets start to crash again, the rules will be changed, and the Fed will buy general stocks.
Craig discusses the final Bart Chilton interview with Arcadia Economics, in which Bart confirmed many of the theories surrounding events back in 2008, including JP Morgan's manipulation of paper markets. The fraudulent actions of various banks likely caused the 2011 crash in gold and silver. He gives us his thoughts on the possibility of a Comex default and cautions that "The banks usually find a way to hold things together."
Major institutions today don't bother with precious metals, but when someone prominent like Warren Buffett begins buying mining shares, they notice. Any amount of institutional fund flow will have massive effects on the gold market and the miners.
Known primarily by his nickname "Turd Ferguson," Craig Hemke is the founder and editor of the popular TF Metals Report blog and podcast, covering precious metals, the financial markets, and greater economic trends.