MAR 13, 2018
Jeffrey Christian, managing partner at CPM Group, warns that there are economic, political and financial problems ahead. All of which is very good for gold and silver.
Jeffrey Christian, managing partner at CPM Group discusses his insights in the precious metals market, Here is a bit from this interview on what he had to say.
You have structural deficits in the United States which just got much worse with gigantic tax cuts. You have a paralyzed government which is more paralyzed than it has been over the last 20 years when it was paralyzed. You have a breakdown in international cooperation. You have a breakdown in democratic processes. You have increased volatility in currency markets. The treasury is going to need to sell bonds to cover $1.4 trillion per year of structural deficits on an ongoing basis just as the bond market is diversifying away from treasury so the demand for treasury is declining and the Fed wants to liquidate $1.9 trillion of its bond portfolio. So the demand for treasuries is going to be declining in a long-term basis while the administration is quadrupling its need to sell treasuries. That spells higher interest rates. That spells lower stock prices, lower economic growth in a long-run basis, and a host of other problems. It’s a gigantic mess that has been brewing since 2008, 2009 and it’s going to reach a boil at some point. So it’s coming. You just don’t know what occasions will trigger it to actually emerge. All of which is very good for gold and silver.
Christian goes on to say that he thinks this could come apart somewhere in 2022-2024 but admits they were a year late in the previous banking crises.
The interview took olace at the Prospectors & Developers Association of Canada (PDAC) conference in Toronto earlier this month.