Tom welcomes Lee Adler and Bob Coleman back to the show to discuss the banking system, the role of the U.S. Treasury, and the current state of the banking and employment markets. Adler explains that money pumping by the Fed ended a year ago and that tracking the ICI data on money market funds will be a big key to watch. He also mentioned the potential risks in the banking system which could lead to another crash in equities. Coleman and Adler discussed the current employment market and consumer debt levels, and how the passive investing craze could lead to a lack of liquidity in the market. They highlight the importance of storing gold in a safe jurisdiction and the risks associated with custodians.

Adler suggested that the best indicator of when the next crash may occur is to look for someone calling gold a pet rock again, or for gold to be touted as the only insurance policy. Coleman believes the Fed’s CPI numbers are designed to manipulate the public and that gold is a good indicator of confidence. He also gives advice on how to understand the monetary policy landscape while filtering out the politics.

The two concluded by suggesting investors watch the return on their money due to inflation and taxes. Adler and Coleman’s conversation provided insight into macro liquidity, the risks associated with the banking system, and the importance of understanding the monetary policy landscape.

0:00 – Introductions
0:55 – Macro Liquidity
5:15 – Fed Reaction Mode
7:09 – Q.E. Vs. Bailouts
12:54 – Banking Sector Problems
17:10 – Deposit Outflows & Stocks
22:34 – Reverse Repos
28:30 – Debt Ceiling
31:30 – Rates & Bank Runs
40:03 – Good Ole Yellen
42:06 – Depositor Insurance
44:57 – Gold & Confidence
49:44 – Recession Thoughts
53:30 – Gold & Cycles
57:56 – More Bank Turmoil?
1:00:28 – Gold & Liquidity Flows
1:04:12 – Commercial Real Estate
1:06:48 – Consumer Debt & Layoffs
1:12:42 – Manipulation & Risk
1:16:14 – Wrap Up

Talking Points From This Episode

• Macro liquidity is an important factor to watch to assess the state of the market and whether the situation is stabilizing.
• Gold is a good indicator of confidence in the markets and can be used as an insurance policy against a crash.
• When investing, it is important to consider the risks associated with custodians and exchanges, and to understand the monetary policy landscape.

Guest Links – Lee Adler:
Twitter: https://twitter.com/lee_adler
Website: https://liquiditytrader.com
Articles: https://wallstreetexaminer.com/
Forum: https://capitalstool.com

Lee Adler is published on LiquidityTrader.com, The Wall Street Examiner, and Capitalstool. He also published and was the lead analyst for Sure Money Investor and developed David Stockman’s Contra Corner.

He has been in finance since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities.

Prior to starting the Wall Street Examiner Lee was a commercial real estate appraiser in Florida for 15 years and specialized in the analysis of failed properties. He also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s.

Lee has been charting stocks and markets and doing analytical work since he was a teenager. Yogi Berra said, “You can observe a lot by watching. I’ve seen a lot through the years, and have incorporated much of it into my research.”

He says, “I’m not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I’ve watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I’m happy to share that experience with you.”

Guest Links – Bob Coleman:
Twitter: https://twitter.com/profitsplusid
Website: https://www.goldsilvervault.com/

Bob Coleman is a Registered Investment Advisor since 1992. In 2001, he founded Profits Plus Capital Management, LLC (RIA) and Dollars and Sense Growth Fund. Recognizing the necessity for physical metal storage, he founded Idaho Armored Vaults and Gold Silver Vault in 2008. They are a distinguished and respected leader in the precious metals industry specializing in storage, transportation, shipping logistics, and security.