Larry McDonald: What is the Catalyst for Gold Miners to Finally Perform

Tom welcomes back New York Times bestselling author, CNBC contributor, and Political Risk Expert Larry McDonald. Larry discussed the impact of political decisions on the U.S. economy and markets. He highlights the concerning trend of deficit spending relative to GDP, revealing that it cost the U.S. $834 billion to grow the GDP by $334 billion in the last quarter of 2023. He predicts a continued focus on short-term economic growth by politicians to retain power, leading to an inflationary economic environment. McDonald also discussed the potential implications for banks with commercial real estate holdings, emphasizing the need for Federal Reserve intervention as the market faces a significant downturn. He warned of a potential economic crisis if the Fed raises interest rates, putting stress on both banks and consumers. McDonald shares his insights on an impending energy crisis around 2025-2026. He attributes this coming crisis to factors such as population growth, improved living standards in developing nations, and inadequate capital investments in energy resources. He underscores the impact of geopolitical tensions and climate change on supply chains and inflation, shaping a shift towards a multipolar world order. McDonald suggests that these changes will influence the performance of precious metals, with potential disruptions creating opportunities for investors. He also emphasizes the importance of addressing sustainability concerns, noting that progress in this area may be slower than anticipated. McDonald's forthcoming book, set to be released in March, delves deeper into these pressing issues. Time Stamp References:0:00 - Introduction0:42 - Politics & Debt5:32 - Democrats & Spending10:12 - Loosening Talk & Effect15:28 - Banks & Commercial Losses19:27 - Economic Realities22:37 - Wealth Concentration27:54 - Risks - Stocks & Banking31:28 - Geopolitics & Conflicts38:10 - Precious Metals43:24 - Green Energy & Metals46:54 - Book Announcement48:54 - Wrap Up Talking Points From This Episode * Deficit spending costs: U.S. spent $834B for $334B GDP growth in Q4 2023. * Banks face commercial real estate crisis, may need Fed intervention. * Predicted energy crisis 2025-2026 due to global factors and capital shortfall. Guest Links:Website: http://thebeartrapsreport.comTwitter: https://twitter.com/convertbondNew Book - Amazon: https://tinyurl.com/2capfzt9 Larry McDonald is a New York Times bestselling author, CNBC contributor, and Political Risk Expert. He is also the creator of The Bear Traps Report, a weekly independent Macro Research Platform focusing on global political and systemic risk with actionable trade ideas. Thought-provoking Larry McDonald presents his captivating views on the Trump Administration, U.S. Financial Crisis, European Sovereign Debt, and China's Economic Meltdown - spiced with actionable risk indicators, risk management lessons, and sprinkled with humor. In 2016, Larry McDonald joined ACG Analytics in Washington D.C., as a partner with a unique skill set, as one of today's leading political policy risk consultants and strategists. From 2011 - 2016, he was Managing Director and Head of U.S. Macro Strategy at Society Generale. In 2010 he founded an investment research firm which publishes the The Bear Traps Report, focused on Political and Systemic Risk with actionable trade ideas. Larry makes weekly appearances on CNBC as a contributor focused on political and economic risk and opportunities.