*This interview was recorded on 12/29/18
Jaime tends to be more contrarian than the average investor. He assumes that markets are manipulated through excess money printing and suppression of some like gold and silver. Investors would likely be less interested in markets if the price of gold were much higher. Precious metals reveal the underlying market risks and the year ahead will probably bring additional risks but also opportunities.
An inversion of the yield curve may not be required to have a recession. There exists a lot of systemic risks already, from factors like the housing markets, banks, politicians, and pension funds. There is also a risk that the Saudi's could walk away from the petrodollar. When the world moves away from the dollar, it will affect everything.
Timestamp Reference:1:00 - What to expect in 2019.3:30 - Risks and opportunities.4:00 - Why the Fed has to raise rates.4:50 - Global systemic risks more than just yield curves.6:15 - Saudi Arabia risks and the petrodollar.7:20 - The United States no longer needs the Middle East.8:00 - Have the 2008 liquidity risks gone away.9:00 - Who will bail out Deutsche Bank?10:00 - Xmas Plunge Protection Team?11:00 - Benefits with producers and potential pitfalls.14:00 - Investors are not learning and risks are escalating.15:45 - Be prepared and hold some cash + political risks.16:40 - Gold and silver looking to break out finally.