Once credit starts to collapse, you will see currencies fail, and that process can turn into…
Tom welcomes back an absolute icon to the show, Bill Holter of JSMineset. Bill discusses how the credit markets are smarter than equities. At some point, there will be sovereign risk problems, which will impact premiums on yields. The Fed balance sheet is supposed to be shrinking, but that requires someone to want to buy these assets.
The ECB is forced to sell good credit to buy poorer debt like Italy’s. The problems today are larger than any one central bank. Currencies globally are all based on credit. Once credit starts to collapse, you will see currencies fail. That process can turn into hyperinflation.
Metals sentiment continues to be poor, however on a positive note, the supply appears to be drying up. Premiums are higher, and it’s difficult to make large orders without waiting a month for delivery.