| Alasdair Macleod and Cherie Leeden are this week’s guests.
Rising bond yields are deferring the prospect of a central bank pivot away from fighting inflation to tackling a widely expected recession. Investors wrongly assume that price inflation will fall in a recession, leading to lower interest rates. History tells us that monetary debasement, rising prices, and a slump in business activity go together. Indeed, a slump in economic activity is almost certain, but interest rates will continue to rise reflecting declining purchasing power for fiat currencies. There is nothing the monetary authorities can do to prevent it and consequently a cyclical banking crisis, this time including both central and commercial banking systems, is bound to result.
Alasdair will point out the consequences of not understanding the true role of interest rates, the fallacies surrounding commodity price formation, and why a general glut cannot happen, which according to the Keynesians drives recessions. Blaming inflation on Russia or other external forces cuts no ice. Our crisis is entirely of our own making. Rising interest rates are a silent killer of currencies as central bankers are ultimately forced to print more money, faster and faster, simply to service debt. The ultimate end is an essential return to gold which is the only money there is. Everything else is credit.
Cherie’s Gold Bull Resources has a 500,000-ounce gold resource. She will explain how the company is setting out to dramatically increase those ounces representing true money in the ground. | 