QE is Back! Cost of Living Will Soar.

Federal Reserve's Policy Shift and QE [00:55]

• The Federal Reserve cut interest rates, a move that was largely expected, but the more significant development is the return to quantitative easing (QE).
• The Fed ended quantitative tightening (QT) and immediately resumed buying Treasury bills, a move the speaker finds surprisingly rapid.
• This action is effectively QE, as the Fed is creating money to buy assets, despite not using the term "quantitative easing."
• The stated reason for maintaining "ample reserves" is met with skepticism, given the Fed's already large balance sheet of $6.5 trillion.
• This policy is seen as an attempt to monetize government debt and create inflation, despite the Fed acknowledging inflation as a problem.

Market Reactions and Precious Metals [07:09]

• Long-term Treasury yields, like the 10-year at 4.15%, did not significantly decrease with the Fed's rate cut, and mortgage rates remain unaffected.
• The speaker predicts bond weakness due to the Fed's easy money policy and the inflation it's expected to generate.
• The US dollar has weakened, sinking to a two-month low against other currencies.
• Precious metals, particularly silver, have seen a strong positive reaction, with silver reaching new all-time highs, leading gold.
• The speaker predicted that silver and gold miners would hit new highs before gold itself, which has now occurred.

Fed's Uncertainty and Inflation Mandate [12:30]

• The Fed acknowledged uncertainty about whether to prioritize the labor market or inflation, a unique problem they claim not to have faced before.
• Despite acknowledging this uncertainty and the current inflation rate of 3% (above their 2% target), the Fed cut rates and resumed QE.
• The speaker argues that inflation should be the primary concern, as price stability is foundational to a strong labor market, citing past Fed statements.
• The idea that inflation can increase employment by lowering wages is discussed, but dismissed as not the intended outcome.

Tariffs and Inflationary Pressures [28:52]

• The speaker argues that tariffs are taxes paid by consumers, leading to higher prices, contrary to the belief that manufacturers absorb the cost.
• An anecdote is shared about a $5,000 increase in price due to tariffs on boat equipment.
• Tariffs contribute to goods costing more, exacerbating the inflation problem, although the primary driver identified is the Fed's monetary policy.
• The Fed is accused of using tariffs as a convenient excuse to deflect blame for inflation away from its own actions.
• Government deficits and spending are also cited as fueling demand and, consequently, inflation.

Housing Market and Fed's Motivation [33:37]

• The Fed's actions, including rate cuts and QE, are partly aimed at propping up the housing market, which is seen as poised for a drop due to unaffordability.
• The speaker argues that a decline in housing prices is necessary for affordability, but the government's actions aim to make borrowing easier, which is counterproductive.
• The Fed's motivation to cut rates is suggested to be to avoid a financial crisis stemming from leverage in the real estate market and potential collapses in asset markets.

Trump's Criticism and Debate Challenge [41:41]

• The speaker recounts a Fox and Friends interview where they stated that things would become even more unaffordable under Trump's policies due to continued deficits and tariffs.
• Donald Trump reacted strongly on Truth Social, calling the speaker a "jerk," "loser," and "Trump hater," questioning why Fox News would feature such a guest.
• The speaker defends their position, stating they are not a "Trump hater" but criticize policies they disagree with, regardless of the politician.
• Trump's claim that prices are going down is refuted, with the speaker asserting prices are still rising, supported by the Fed's own acknowledgment of inflation.
• The speaker challenges Trump to a debate on the economy, offering to debate anyone from his administration if he is too busy.

Debate with CZ and Tokenized Gold [56:07]

• The speaker discusses a debate with CZ (Changpeng Zhao) concerning Bitcoin versus tokenized gold.
• The Bitcoin community's declaration of CZ as the winner is attributed to their vested interest in hyping Bitcoin.
• The speaker asserts that Bitcoin's price performance has not matched its hype, especially compared to gold and silver.
• The debate on tokenized gold is framed as superior to Bitcoin because it represents ownership of a real asset (gold), unlike Bitcoin, which the speaker describes as "nothing."
• A stunt by CZ during the debate, presenting a gold bar and questioning its authenticity, is described as a tactic to portray gold as unreliable, which the speaker refutes by explaining the verification process for tokenized assets.

Fund Performance and Investment Outlook [41:41]

• The speaker promotes their investment funds, including a gold fund (EPGIX) and dividend payers fund, highlighting recent successes and future expectations.
• The dividend payers fund is up almost 60% for the year, and the value fund is anticipated to receive an award for top performance over a 10-year period.
• The speaker expresses confidence in gold and silver prices, forecasting significant increases in the coming years.
• The strategy involves positioning for a potential shift of US retail investors out of tech stocks and crypto into value stocks, gold, silver, and mining stocks, particularly in 2026.