Lee Adler & Bob Coleman: More Turmoil to Come in the Banking Sector
Palisades Gold Radio: 4-8-2023
Tom welcomes Lee Adler and Bob Coleman back to the show to discuss the banking system, the role of the U.S. Treasury, and the current state of the banking and employment markets.
Adler explains that money pumping by the Fed ended a year ago and that tracking the ICI data on money market funds will be a big key to watch.
He also mentioned the potential risks in the banking system which could lead to another crash in equities.
Coleman and Adler discussed the current employment market and consumer debt levels, and how the passive investing craze could lead to a lack of liquidity in the market.
They highlight the importance of storing gold in a safe jurisdiction and the risks associated with custodians.
Adler suggested that the best indicator of when the next crash may occur is to look for someone calling gold a pet rock again, or for gold to be touted as the only insurance policy.
Coleman believes the Fed’s CPI numbers are designed to manipulate the public and that gold is a good indicator of confidence.
He also gives advice on how to understand the monetary policy landscape while filtering out the politics.
The two concluded by suggesting investors watch the return on their money due to inflation and taxes. Adler and Coleman’s conversation provided insight into macro liquidity, the risks associated with the banking system, and the importance of understanding the monetary policy landscape.
0:00 – Introductions
0:55 – Macro Liquidity
5:15 – Fed Reaction Mode
7:09 – Q.E. Vs. Bailouts
12:54 – Banking Sector Problems
17:10 – Deposit Outflows & Stocks
22:34 – Reverse Repos
28:30 – Debt Ceiling
31:30 – Rates & Bank Runs
40:03 – Good Ole Yellen
42:06 – Depositor Insurance
44:57 – Gold & Confidence
49:44 – Recession Thoughts
53:30 – Gold & Cycles
57:56 – More Bank Turmoil?
1:00:28 – Gold & Liquidity Flows
1:04:12 – Commercial Real Estate
1:06:48 – Consumer Debt & Layoffs
1:12:42 – Manipulation & Risk
1:16:14 – Wrap Up
Talking Points From This Episode
– Macro liquidity is an important factor to watch to assess the state of the market and whether the situation is stabilizing.
– Gold is a good indicator of confidence in the markets and can be used as an insurance policy against a crash.
– When investing, it is important to consider the risks associated with custodians and exchanges, and to understand the monetary policy landscape.
