Jaime discusses inflation and how the signals for it are getting stronger. Alan Greenspan warned a year ago that we are heading for stagflation and could revisit the 1970’s. That same week Terrence Duffy head of the Comex stated that “If measured by inflation gold should be between two and three thousand.” Russia and Saudi Arabia are entering into a new pricing arrangement which is yet another threat to the US petrodollar. Continued de-dollarization, populist political shifts, central bank actions, and derivatives are all ongoing risks. The reality is a monetary reset is coming. The numbers that keep coming out show massive systemic risk and something has to give. We could be getting set up for something bigger than 1929. In Europe and notably Italy there is a massive monetary dislocation. Keep a close eye on Deutschebank as they are a big weak link and they increasingly resemble 2007 Lehmann Brothers. They are sitting on 42 trillion worth of derivatives. The Federal Reserve has been loaning money to the banks at meager rates, and now they have announced that they are closing the lending window. This means the banks will soon have to make money on their own. Stock prices are holding up for gold producers reasonably well despite the decline in the gold price. This indicates that smart money may be getting involved. Jaime says, “This for him is the best opportunity in his career. Get in there before everyone does and watch it build.”
