Francis Hunt: The Mega Debt Bubble Reset
Tom welcomes a fascinating new guest to the show, Francis Hunt “The Market Sniper.”
Francis discusses how gold is acting as the bellwether for the collapsing global economy. Gold and silver will soon be unleashed, not unlike the recent major moves in palladium and rhodium. A lot is happening behind the scenes that will affect precious metals, and he looks closely at the macro picture surrounding the markets and bonds.
Paul Volker was able to bring inflation under control during the early 80s. Since then, yields have steadily stair-stepped down, and we’re effectively below zero today. Every time they create money, they make additional debt, and now we have a mega-debt bubble. The market will break when investors, pensions, and firms stop wanting to hold bonds.
Governments live beyond their means, and the only way to manage the debt is to continuously lower interest payments. We are at the end-game for this debt cycle. Recently real yields have had some huge moves in percentage terms.
Francis explains what to watch for when markets are reaching the end of their cycles. March 2020 was likely the most extensive economic off switch in history and was the final capitulation for many investors. It signaled the bottom for precious metals and several other commodities.
Inflation appears in assets first, and he shows how the broader equities have been steadily moving upwards. Money wants to find a home in assets, and soon inflation will appear in real-world goods and services. Technology has been deflationary for the past forty years, but we are now seeing essential commodities rise. He is calling for three-digit oil again in the next few years as inflation escalates.
Francis points to the many commodities that are breaking out or doubled during a depressed locked-down market and asks what will happen when the economy starts to pick up.
Gold and silver are the ultimate anti-debt and anti-fiat assets. He believes we are nearing another more powerful leg-up in the precious metals. He encourages investors to understand the nature of the game and defend yourself and your family.
Time Stamp References:
0:00 – Introduction
0:35 – Metal Demand 2020/2021
2:37 – 10 Year Treasury Yield Chart
9:40 – End of the debt-cycle
13:50 – Recent Yield Volatility
16:42 – March 2020 – Debt Event
18:09 – PM’s and Portfolio Weighting
21:40 – IShares ETF Treasury Chart
24:40 – Inflation & Buying Power
27:45 – Real-World Good Inflation
31:13 – Uranium, Energy, & Oil
35:10 – Global Debasement
38:38 – CPI & Globalism
40:10 – Quadruple Digit Silver
43:00 – Gold to Turkish Lira Chart
45:31 – Palladium Chart & Mines
46:50 – Platinum Chart & Demand
47:50 – Rhodium & Copper Charts
49:00 – Lockdowns and Spending
50:40 – Gold & Silver Suppression
53:16 – Gold/Silver Ratio
58:50 – Another PM Leg Up
1:02:33 – Single Digit GSR
1:04:48 – Confiscation & Taxation
1:10:14 – First Majestic & Miners
1:13:45 – A Positive Message
Talking Points From This Episode
- Gold and the collapsing global economy.
- Inflation, real yields, and governments are running out of time.
- Commodities breaking out and hyperinflation.
- Protecting yourself and your family during a debt crisis.
Francis Hunt is a trader, first and foremost. Unlike most educators in the trading space, Francis walks the walk and talks the talk with 30 years of experience trading his personal capital on various markets and instruments. Through this passion for trading and his relentless study of markets and economic theory, he uses the Hunt Volatility Funnel trading methodology, a systemized approach, to answer the critical question: What is the next most profitable trade?
He believes the actual price of an asset is the most accurate reflection of all the factors that influence it. Practical technical analysis, the study of price action over time, is needed to formulate profitable trade ideas. Indeed, with all the market manipulation and high-frequency trading operations currently in play, technical analysis is all that can be relied upon when it comes to formulating future price trends. A trained eye can often spot such manipulative practices, as is the case with HVF traders. Therefore, the HVF methodology is based purely on technical analysis.
Francis is passionate about sharing his knowledge and understanding of markets by utilizing his HVF trading methodology. With entertaining anecdotes and careful guidance of his students, he has already trained a large community of hundreds of traders and help them transform from complete newbies to seasoned trading professionals.
He genuinely loves sharing his knowledge and strategies with others who are committed to finding freedom through trading. Plus, teaching strengthens his trading abilities while helping to build a vibrant community of successful traders.