Peter Grandich: Excessive Borrowing and Money Creation is Delaying the Inescapable Depression

Tom welcomes returning guest Peter Grandich to the show fora riveting conversation. Peter underscores his belief that the much-anticipated recession hasn't yet arrived due to rampant money creation and continuous borrowing. He challenges the Bureau of Labor Statistics' data, believing its reported market conditions to be milder than reality. He spotlights the increasing number of Americans relying on food banks, living paycheck to paycheck, and articulates his belief that an impending recession is not a matter of "if," but "when." Grandich also points to a shift in the past 40 years from a market largely dominated by retail investors to one controlled by computer algorithms. In fact, today more than half of all stock market investments are in passive funds. This new mode of operation could result in rapid market changes when investment perspectives shift, leaving more investors vulnerable to losses. Importantly, the spiraling US debt is a concern. The Congressional Budget Office recently predicted a debt level of $50 trillion within seven years. This escalating debt could lead to economic collapse, as a large part of the country's revenue would be obligated to cover interest repayments. Grandich further criticizes the Biden administration's decision to expunge student loan debts as it could set a dangerous precedent for other financial liabilities. Additionally, Grandich observes the growing global outcry for dominance at the expense of the US, spurred by countries like Brazil, Russia, India, China, and South Africa. This could lead to diminished demand for US stocks and a preference for non-US stocks. Amid these shifts, Peter emphasizes the importance of safeguarding capital. He acknowledges the potential for capital growth in areas such as the natural resources sector. Despite previous success with uranium, Peter is now directing his focus towards other natural resources such as gold, copper, and lithium. He recommends their potential for capital appreciation, citing ongoing demand and treating copper optimistically due to its emerging role in the green sector. While remaining cautious about investing, given the current economic, social, and political landscapes, Peter remains hopeful about the future growth in the natural resources sector. Lastly, Grandich provides intriguing insights on the position of uranium in the current market, explaining that widespread energy challenges and increasing nuclear power necessity maintain its stability; however, he maintains that other metals such as gold and copper now offer better investment opportunities. Rapid price surges have led to difficulty for producers like Cameco, who are grappling with meeting contract obligations due to limited supply. This could potentially slow uranium price elevation. While Grandich acknowledges the potential for uranium's market to rise, he sees greater gains and less risk in junior resource markets. Talking Points From This Episode * Rampant money creation is temporarily delay a recession, which is inevitable. * Peter is concerned about the number of algorithim trading system which would catalyze sudden market shifts. * Uranium's performance is good but gold, copper, and lithium currently offer more potential for growth. Time Stamp References:0:00 - Introduction0:33 - Recession Outlook4:23 - Five Critical Issues8:08 - Fed & Inflation13:16 - Debt, Deficits, & Taxes17:33 - Consequences19:30 - Debt & Global Bond Mkts.21:44 - BRICS Progression26:48 - U.S. Equity Demand29:02 - Preserving Wealth31:20 - Focus On Resources34:34 - Uranium & Profits36:57 - Jurisdictional Risk38:20 - Gold Market Thoughts40:28 - Why Undervalued Miners44:03 - Uranium Market50:0...