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Greg Weldon: The Crowd is Just Waking Up to the Gold Trade

Tom welcomes a new guest to the show, Greg Weldon. Greg is publisher of Weldon Live and an Veteran Commodity trader.

Almost a trillion dollars of consumer credit has been created, and there is fear that banks will scale back lending, resulting in further market declines. If central banks pull back from lending, problems could arise quickly. A contraction in credit is possible, and the Federal Reserve (Fed) will be testing the boundaries.

Paul Volcker is Powell’s hero, but the debt load today is much higher than it was in the 1980s. Inflation base effects are just now starting to kick in. We could see further declines in energy, which will temporarily impact inflation. The Fed may need to back off sooner than they wanted.

The charges on credit cards are at record levels due to people’s need to pay bills. Everything is costing more, and borrowing at high interest rates is a problem. Rents are near all-time highs, so the pain will persist. Greg believes the Fed is almost done and could hold this level, or even start easing. They appear to have enough ammunition for the next recession.

Everyone knows there are issues coming with pensions and other parts of the financial system. Difficult times are coming and people need to prepare. When looking to protect financial assets, it will become increasingly difficult. Stocks may rise, but inflation may eat those gains, making it hard to keep up.

The writing is on the wall in regards to the US dollar and its manipulation of other nations’ economies. Now that China’s economy is surpassing that of the US, the global tone is changing. Lastly, he talks about his thoughts on gold targets, real rates, and the direction of the dollar.

Time Stamp References:
0:00 – Introduction
0:50 – Fed & Consumer Credit
3:38 – MMT & Lack of Growth
6:09 – Bank Deposit Concerns
8:20 – Inflation Re-Targeting
10:22 – Consumer Concerns
17:44 – Fed: 1980s & Today
26:35 – Public Debt & Pensions
29:15 – Diversifying Globally
32:36 – Inflation & Energy
36:12 – Dollar & China
39:10 – Gold Targets
44:37 – Real Rates Outlook
47:04 – Other Sectors
49:50 – Commodity Nations
51:32 – Energy & Gas Inventories
54:05 – Nickel Fraud
56:29 – Wrap Up

Talking Points From This Episode

  • High consumer credit, combined with banks’ potential scaling back of lending, could result in a contraction in credit and further market declines.
  • Everyone needs to prepare for difficult times ahead, as it will become increasingly difficult to protect financial assets.
  • The global financial tone is changing, which could impact gold targets, real rates, and the direction of the dollar.

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