David Brady: The Dollar is Scheduled for Demolition
Tom welcomes back David Brady, CEO, and Co-Founder of Global Pro Traders. David discusses the changes that have occurred in the markets since his last appearance on the show nearly two years ago. He believes another massive rally is coming for gold and that the Fed will reverse course. Countries never chose to default they always inflate their debts away. Markets today are centrally managed. What we have is not free-market capitalism.
The Fed appears to be engineering a recession to curb inflation. Unemployment is far higher than we are being told and we see that reflected in the credit card use. Demand is starting to drop, and many people are down to just buying essentials. This is why we’re going to see dis-inflation. Prices for everything going up at once is not indicative of supply chain issues. More money is simply chasing fewer goods. We have supply chain issues mixed with money printing.
He expects the Fed to reverse policy and resume stimulus which will result in a final melt-up. At some point, the Fed’s stimulus will be insufficient to prevent a crash. We’ve had an orderly sell-off recently in stocks, but what is coming will likely be a flash crash.
The Fed prefers to have a ready excuse to compensate for its policies. Expect a ‘major event’ this fall which will be used as cover. This event will likely occur when the Fed decides to reverse policies.
The dollar isn’t strengthening in terms of purchasing power. It’s just devaluing slower than all other currencies. When the Fed throws in the towel they will print trillions, and gold will go ballistic. The dollar is scheduled for demolition.
David notes that banks are now long on silver which he believes will soon go ‘bananas’. The conditions are in place for a major metals low, and the risk-reward ratio is massively skewed to the upside. Current metal prices may shortly never be seen again.
Time Stamp References:
0:00 – Introduction
0:44 – Focus on the Fed
6:44 – Trillions & Rates
14:30 – Inflation Cause & Effect
23:07 – Volatility & the Dollar
26:50 – China & Gold Reserves
33:00 – Treasuries & FX Theft
35:26 – Housing Market Risks
39:45 – His Process
42:12 – Bottom in Metals?
48:00 – Metal Premiums
52:30 – Silver & Miners
55:50 – Wrap Up
Talking Points From This Episode
- Fed is engineering a recession to curb inflation.
- Everything is centrally managed, and the Fed will have to reverse its policy.
- The dollar is declining in purchasing power just slower than other currencies.
- Outlook for metals and why this may be the last time to buy at these levels.
Guest Links:
Twitter: https://twitter.com/globalprotrader
Sprott: https://www.sprottmoney.com/Blog/tag/david-brady.html
Website: https://silverchartist.com/
David Brady has managed money for banks and businesses for 25 years. Mr. Brady is a CFA charter holder and holds a bachelor’s degree in Business Studies and Financial Markets from Dublin City University. He started as a foreign currency trader in USD/DEM and managed multi-billion dollar bond and foreign exchange portfolios for multinationals such as eBay and Salesforce.
He has always been interested in financial markets, winning investment competitions at the age of 15. Scoring the highest grade for his graduate thesis, “Is the ERM (Exchange Rate Mechanism) Fatally Flawed,” in 1993, and won foreign currency spot, forward, and bond trading competitions at 23. Suffice to say that financial markets have been his passion for much of his life.
David is a native of Dublin, Ireland. He moved to the United States in 1998 and now lives in Ontario, Canada, since 2015, with his wife and four kids.