Massive Money Printing Alert: Next Asset To 'Vertical Moonshot' | Clem Chambers

You can play hedge. Yeah, no one ever got rich hedging. And in fact, it's expensive. It's going to be bad for gold going forward. What people want to know is is it go going to go on another crazy run to 8,000. When I look at it, I I just see a pause and you know, I'm on the record saying 35,000, I'll start to be interested. Every time something crops up that's unpleasant, out comes somebody, pulls a lever, pumps in the liquidity, gets it back up again, and and sets it off on that straight line again. It's only a matter of time. We've had silver spike, we've had gold spike, we're going to get copper vertical moonshot. >> Clem Chambers, founder of a new FM returns. Clem, welcome back to the show. Markets are surging to new all-time highs. I'm talking about the stock markets, S&P 500, and the Dow Jones and the NASDAQ. Gold is back up to 44.80, almost $4,500. That's more than an 11% increase since the beginning of August. Are you buying into this rally? Welcome back Clen. >> Well, yes and no. I I'm I'm what's happened as far as I'm concerned has there been a big liquidity injection and that pushes up everything. Now certain things will kind of you know droop pretty quickly and other things will carry on going and you know these liquidity injections the money goes everywhere. I mean they can't just point it at something. They have to just go boom. And of course it goes into gold, it goes into silver, it goes into platinum, palladium, copper, you name it, it goes there. But some things it won't stick because if you get a nice, you know, lorry load of cash from the treasury to go play, you go and play in the frothy beta stuff first and then when that frothy bit, you know, gets less interesting, you pull it and put it into lower beta stuff. And ultimately, it just does what it always does, has done every time they've done it. It just goes V-shaped bottom and then and then back on that long-term line that you can see. Just look at the S&P 500. It's a straight line for years and um you know that they pulled the lever because it was getting a little bit spicy and um off we off we go. And so, you know, I've been to hell and back to heaven again um because of, you know, the the liquidity, the concern in the market about what's been going on has now been counteracted by free money. And so, we're now back on the on the um on the gravy train and off goes the AI trade and off goes all that stuff. And, you know, the Cosby crash stops. Um you know, you bail out uh Japan while you're at it and um away she goes again. And the thing to remember, the biggest piece of news, which no one's even, you won't read it anywhere, is that President Xiing is coming to America on September the 26th. That's the big hairy deal. And you know, I don't think the market is going to go down or crash or anything horrible happen to it before then. I mean, you wouldn't want that, would you? And um I should think there's a firework display planned somewhere in the world. It might actually be in the Middle East because you know the the two great men are getting together. Trump went and saw China and and and uh she and now he's coming back. I mean that is a big hairy deal because China and America at loggerheads which they kind of are that is potentially catastrophic. But if they're all mates and they just agree to be, you know, competitors at the top levels of the economic value chain, that would be great for everybody. Absolutely fantastic. But obviously, if they fall out and start, you know, wanting to um not be nice, that would be drastic. But the fact that President Xi is coming to America September the 26th or whenever that is, 4th, 6th, that's a big deal. That's a very, very big deal. And if that meeting goes wrong, you'll see sit in the markets the next day. And if it goes right, you'll see in the markets. And uh you know that it's great. It's great that he's coming because ultimately there's all this massive economic activity coming down the pike. And you know, if you don't go blow each other up, that will be amazing. Amazing for for the economies of the world and and for anybody who's in the markets, it' be amazing for their wealth. Meanwhile, uh from the government of uh the United States, Trump says the US has total control over the street of Hormuz and might keep it. Said on Truth Social that Iran has the sorry, the US has total control. A claim that Iran has disputed. I think we will keep it. CBS is quick to point out that the number of vessels tracked during uh transit at the street of Formoose fell to a oneweek low of eight. About 130 ships a day passed through the vital waterway before the war started on April uh February 28th. Six people on a vessel in the Red Sea were killed by uh Iranbacked Houthies. Does the US have total control of the strait? And if so, you'll be going back down to 60. Yeah. >> First of all, if you get your information from CBS News, you'll never get rich. >> Okay. >> Yeah. So, I mean, I've been writing about this, saying about this. I probably even said it on your show. There's America's got three options. Yeah. Siege, run away, or invade. >> What are they doing now? What are they choosing? >> Well, siege. You just sit there, choke them off, don't let anybody in, don't let anybody out. And then after a certain amount of time, you know, every time they throw some exploding paper planes, you you spot that bit and you flatten it. And then in the end, but they end up either, you know, getting very unhappy with their lot or the people get very unhappy with their lot or you end up with a kind of Cuba situation. Yeah. If you run away, you look like a bunch of idiots and weaklings. So that's not likely to happen. And if you invade, well, you know, 30,000 of your soldiers are going to die and and that's not something that you can have in America. So you can't invade, you can't run away, but you can siege. I mean, that's how Julius Caesar did the um French in. He he just built a wall around them. He had an army waiting for him. He built a wall around them and then he built another wall around so nobody come in and help them and just left them there and and they starved. Yeah. And and that's what America will do to Iran if they got any sense. Now the only thing that could throw a wobbler and a publication refused to um publish an article I wrote on this subject which shows you that it's quite interesting is that you know if you want to make a statement what are you going to do? You got the Houthies right? Well, you could probably sort that one out much easier than you can sort out Iran. It's much smaller and they get all their stuff from Iran anyway. So, you know, Saudi can go in and do it, most of it. So, you know, Saudi Arabia and America invades that bit of Yemen and sorts it out. Now, if you look at the document, the strategic document that came out last November, if I remember my dates correctly, it kind of said it would work with its allies to sort out issues. So, if there were issues like this, it wouldn't just do it on its own. It would work with its allies to do that. Well, of course, Saudi is the ally and Saudi is the one that's taken all all the grief from the Houthies because they're on the border there. So, you know, America, Saudi, Yemen invasion, one way or the other in some configuration or other would probably sort that mess out and also underline to Iran and the rest of the world that America wasn't just going to sit there looking looking dumb. Yeah. So, I think you'll see that 50/50. And as I said, I I think that America will be organizing some pretty spectacular fireworks for Shei when he arrives, and that might be one of them. Before we continue with the video, let's talk about a problem that comes with owning gold. Now, gold has long been treated as a store of value. But the catch is that sitting in a vault, it doesn't pay you anything. So, that's where today's sponsor, Monetary Metals, comes in. They offer investors a way to earn a yield on gold paid in physical gold through their leasing platform. from investors can earn up to around 4% annually with yield paid monthly in ounces rather than dollars. So your holdings are measured in gold itself, not in fiat currency terms. The gold stays your asset throughout and it can be redeemed at any time. Thousands of investors are already earning a monthly yield in gold through monetary medals. So, visit the link down below, monetary-medals.com/lin, or scan the QR code here on screen to learn more and get started today. Yeah, as we're speaking, four crew, two rescuers killed in a Red Sea attack. The uh US is striking ships in the Gulf of Oman. And uh later in the day, the Houthis confirmed they attacked a ship in the Baba Mandep Strait. Now, um, meanwhile, the Iranians have said that they don't want to engage with Trump at all until, in fact, they don't want to engage with the US government at all until after Trump leaves office, which is in two years. And they they they basically said until until the Americans pay us $300 billion um and walk away with a nucle without a nuclear deal, we're not going to engage with the US government. So, they're sitting out the siege apparently. And if we're not going to get any >> you have to set a siege. That's what a siege is. >> You s >> Yeah. >> Well, I mean, you know, that that that was always going to happen if they didn't pull off a quick um action that just kind of worked like Venezuela. Well, it didn't, did it? So then you're going to get the hardliners in control, which is where we are, and you're going to get the local people that might have been a little bit wobbly about supporting the the government in Iran all of a sudden, all getting behind it because you do, don't you? And in a war, it doesn't matter how nutcase your leadership is, as Germany proved, everybody kind of gets behind you. So they're stuck with that. But, you know, if you just go a bit quiet, downplay it as Trump said, and you just sit there and, you know, the food dries up and there's no water, they got a major water problem in Tran or had did have, but you know, your water starts um running out and you got no food and your power starts um wobbling and every time you do anything. But, you know, you end up you can easily end up with Cuba, right, which is, you know, decades of that sort of thing. But, we'll see. We'll see. It's it's not whether it will work, it's what will happen. And the siege is the only thing that is high probability. And I've been saying that for you know months now and here we are. Trump has said it. I'm sure he doesn't read my stuff. Yeah. That's the only thing they can do. And the other thing they can do and I think it's high probability is sort out the Houthies because in a year you won't need the Austral. So, you know, the only thing you got to do is stop people throwing rockets into um into the into the alternate routes and the Houthies are are the ones on on there. And yes, they can make rockets that can go all the way to Lebanon, but every time they fire one, I mean, I'm not sure how they're making them now. And on top of that, I'm pretty sure they can't make hardly any of this stuff if China decides not to supply them with all the motors. It's all coming out of China. All that kit. I mean Iran is not a high-tech country. >> The uh markets have responded to recent developments with in interesting developments of their own. Let's talk about gold first, CLM. Uh like I mentioned in the beginning introduction, gold has broken above 40 uh $4,000 for the first time in months. It's now trading firmly above 4,400 uh as we speak right now on the 12th of August. And it looks to me like um gold has been reacting to declines in the 10-year interest rate. So the 10-year US Treasury yield um for the most part has been climbing up. So for the last I guess two months, month and a half, both gold and the interest rate um long end of the curve have been going up together. However, on a short-term basis, they kind of still move in opposite directions. And today we have a bit of a cool off in yields and gold has gone up. The point I'm trying to make is uh CL it looks like every time inflation expectations or inflation cools a bit, go gold goes up. Um, and gold's beautiful for inflation hedging if that's what we're going to get, which is what we are going to get. But yeah, I think what people want to know is is it go going to go on another crazy run to 8,000, not is it going to go up to maybe 5,000 and fall back off again or maybe not go up anymore from here and just, you know, stick around these levels and then drop off again. >> And when I look at it, I I just see a pause and, you know, I'm on the record saying three and a half thousand I'll start to be interested. But it depend. You see, gold is just a tool. It's just another asset. And what do you want to use it for? If you want to use it to save money over the long term, that's got a good inflation adjusted return on it. Well, not inflation adjusted, but will will give you a hedge against inflation. Gold's great, silver's great, and platinum and platium are great. and you would, you know, pick them up over the long term. But as as a speculative move, I I don't think they're particularly interesting. Look at what's happened to all those AI stocks in the last few days. I mean, they've absolutely whipped round. And you know, if you want if you're a speculator, you'd be speculating in equities right now, not in gold and silver. If you are a stacker, if you're a saver, if you want a part of your portfolio to give you some coverage for the coming inflation rises that we're going to see, gold and silver's perfect for that. Absolutely perfect. Why wouldn't you buy it? Why wouldn't you dollar cost average into gold and silver as long as you can sell it at a good price when it if it does go up a lot again? Um, you know, why wouldn't you why wouldn't you buy that? So, I think if you're a saver, gold and silver are good at these prices. I mean, you might be able to buy a lot cheaper, but in the long run, you'll get a good return. That's what dollar cost averaging is all about. So, you know, why not? But if you're a speculator and you you want to hear me say it's going to go to 6 half,000 by Christmas, I think that's extremely unlikely. I I I think it's more likely to curve over and then drop off again. But we'll see. I mean, we'll see that liquidity injection that we've just seen. If they keep doing that because they've got reasons to do that because, you know, things are going wrong somewhere or or whatever, then then it will go straight into gold. Let's just look. There's a big issue with with with money supply in America right now cuz America is going to need way way more M2 money supply to do this onshoring, to do this AI buildout, to do this re-industrialization, all those things that the current administration are saying needs to be done. That requires a lot of new money. And of course, that will go straight into everything. Any asset will go straight into it. and gold and silver will not be left out of that little rush of joy. And you know, crypto too, Bitcoin, you look at Bitcoin and gold, they've probably done exactly the same tick by tick, give or take. Yeah. So, money in, assets up, and we're in a money in asset up environment. But there's plenty of places where the assets are going to go wild. I mean, I think copper, copper, I look at that chart and I go, it's going to double in the next year. And you know, gold ain't going to double, >> right? Copper is going to double in the neck. Wait, why? Let's take a look at the copper. I >> didn't say going to for sure, but I look at the chart and I go, "Oh, that looks like it's going to be like $28 a ton or or have whatever that is in pounds." Well, why? The why is relatively obvious. There's not not quite enough of it going. And the not quite enough of it is going to get worse and worse and worse. And why is there not enough of it? Cuz any way you look at America and the world, it involves electrification. Lots and lots of electrification. And that's what copper does. And AI is huge amounts of electrification. So much so that I think the electric cars are going to have a problem. But anyway, maybe not. But even if even if all the cars and all the lries that are meant to be electrified get electrified, there's not enough copper. And then you got the AI build up, there's not enough copper for that. You've got we've got to have so much more electricity in the West. If we are to catch up with China, the West has got to have and I'm going to choke it. Such a big number. 250% more electricity. 250% more pylons, more transformers, more cables. Mhm. >> I mean, that's vast, right? Now, of course, you can say, well, it doesn't have to do that. It doesn't have to have as much energy as China. Well, it ain't going to be good if it doesn't cuz energy is life. Electricity is life. Everything you take away electricity and you're back in the stone age. So, you've got to if you got to keep up with China, which is why this is September visit is so important, right? Cuz it's so important that America and China are shaking hands and and being sensible. Yeah. If America's to catch up with China in terms of energy, it's got to make a lot more because it's all based around electricity. All this AI, all this industrialization, all this on shoring, it all needs electricity. You see what a pickle Europe's got into by not having enough. I mean, there's nothing wrong with having too much, but certainly big problem having not enough. And China's going hell for leather. That's why they're building nuclear power stations everywhere in America now, or trying to or going to. Yeah, you see that? That's a that's a chart and a half for me. I just see the bottom of a hockey stick there. In fact, I see the bottom of two hockey sticks. One gigantic one and one large one. >> Mhm. >> But anyway, if you want to know what I think about hockey sticks and technical analysis, you need need to check out my YouTube and I go over it all the time. >> Yeah. Everyone should subscribe to uh CLM's YouTube channel by the way. Very good uh very good analysis and um why am I not being a Okay, here we go. stocks. Yeah, I I I um I want to show you something here. Copper has just been a somebody called this on my show a puppet to the AI trade. And that's kind of what we're seeing right now. Copper and stock markets. They're like, you know, they're they're they're two best friends walking around the park together side by side. Um and I I I just don't that that's the story right there. What do you what do you make of this? >> Well, okay, it's really really simple. Now, you build a big shed with lots of metal and and clever stuff in it, and all you do is you put machinery inside of it, mainly from the Nvidia. You put a dirty gray electrical um power into one end of the building, and you have a little strip of of optic fiber coming out, and all AI is energy in, hot air out, and and artificial intelligence. That's it. Energy plus hardware equals AI plus hot air, right? And and so all the things in the AI value chain, which is long and and very interesting, they're all going to go nuts. And energy is the big one because it ain't easy. It ain't simple. And building it out is just a big hairy deal. I mean nuclear power stations. I mean how many have they switched on in America in the last few weeks? Five. Five little ones. Five experimental reactors which is going to turn into nonexperimental reactors. Five. There would have been riots amongst the hippies if you'd done that 10 years ago. Nuclear power station. That's that's Satan. That is why why is it all of a sudden cool and groovy? Well, because no energy. That's it. You're you're you're over, aren't you? So energy, big hairy deal. And the backbone, the spine of energy is copper. Yeah, you can use aluminium for bits and bobs of it, but copper, copper, copper. And ain't enough of it. And if you want to make another mine, it's 10 to 20 years to make one. So it's going to go ape, isn't it? And I look at that chart and everyone say, "What are you seeing? I don't know you. I'm hallucinating." Um, you know, Clemi is hallucinating. That that looks like a dirty great hockey stick to me. And of course, what happens in commodities? What you have to understand if you go back and look at hot commodity periods one month it'll be chocolate cocoa will go ballistic go up four times and back down again and then 3 months will go by and it'll be nickel that'll do it and then it'll be four months will go by and it'll be another one and so it'll be potatoes and we're in that sort of a cycle. So it's only a matter of time. We've had silver spike, we've had gold spike, we're going to get copper vertical moonshot and it'll it'll come down. It'll go up up to 30,000 and everybody will say it's going to 100,000 and then it'll come back to, you know, 20,000 or 15,000 or something like that. But you know this cycle of commodity verticals has well begun quite some time now because all those things that people discounted in the past the physical things the commodities the sheds the machines cables that's that's all coming home to America and and there just ain't that much of it. It's all made in China and I read a real horror story recently. I mean all our antibiotics, all those chemicals are made in China. 80% of all our medicines, the precursors are all made in China. >> I read a story, this is true. I have to I have to verify this, but apparently British special forces uh on one of their ships used uh Chinese sensors >> and that relay data intel back to China. >> Couldn't happen. Couldn't happen. Yeah, that's right. They their their drones are phoning home. Oh, the British seem to be doing this at the Yeah. Well, that's why they that's why they banned American connected cars from China. That's why they're banning rhombars, doom bars from, you know, your your your home umorked um Hoover is being banned in America and and robots are being banned, Chinese robots have been being banned. Well, there's several reasons. One, America can't make them. And for it to have a robot industry, well boy oh boy, you better, you know, give it a reason. And if Chinese have got 100 different robot bot manufacturers out there right now with some big number and you've seen them do their thing, well, you haven't seen any American robots do their thing, have you? You've seen a sort of, you know, Boston Dynamic thing hobbling about for 10 years and you've seen Musk's one walking around like it's got a bad case of arthritis in the knees and there you got the Chinese ones doing kung fu. So, you know, how are you going to have a robot industry now? America will won't be able to catch up. So, you have to ban them, don't you? And you can't have a car industry if you let the Chinese cars in because they're half price and better. I mean, they're even knocking out the the European car makers. And the European car makers were meant to keep the American car makers, you know, on their tiptoes, but, you know, Volkswagen's up the creek without a paddle. And you know that's that's that's why you have to ban these things cuz if you're going to want to have any industry at all left you got to take action and and that's what's going on in the west now and America's taken that taken the first moves. Okay. I wanted to show you this chart. Well not chart but this uh this graphic here. This is uh straight up hormoose traffic. As you can see uh 10 vessels currently in the zone. Uh on average we're looking at uh 0.6 six per day on a 7-day moving average. Anyway, the volume here is roughly in line with the volume right after the war began. However, the price of oil is not back towards 110 W on the WTI, which is where uh when the um war first began. I wonder why. Why is it that the traffic has basically fallen to start of the war levels and the price is still lower? Well, one of the big issues or not even issues, one of the big things is that China said, "Oh, we'll stop importing oil. We've got enough energy as it is. We just burn some coal." So, China stopped importing oil and that freed up that oil that's being produced for everybody else. If China just carried on doing its thing with oil, that would be an interesting situation. So, you know, that's talk about soft power. And again, we're back to we're back to China because it is got itself into a situation where it is borderline the dominant power now. And thank goodness Trump went over there and obviously built some bridges and and and she is coming to Washington. That's a such a big deal. Such a big deal. As opposed to last year when you know it was going to be invade Taiwan next May and that would have been the balloon going up and that's why gold went through the roof and then when that potentiality disappeared, gold came down like a a stack of of bricks. So, you know, the the China America thing, that's a new world. That's a a a bipolar world now. And together, if they're on the same page or at least can can share a page or two, that will be fabulous. And if they can't, it'll be disastrous. So, big big big days at the end of September. >> When you see a story like Xi Jinping is visiting Washington, does that make you want to sell gold? >> I haven't got any. I'm long gone. >> Okay. But let's let's hold some. >> Yeah. It doesn't make you want >> Doesn't make me want to buy it. Unless I think that it'll all go, you know, wrong um in September. But um No, I mean I it it's just if I said to you, "Oh, it's going to go up to um 5,000 by Christmas." You jump up and down, but that's 20%. I mean, you know, you can buy a big American stock and it can do that in a day. So if you you see I I just say it's just another asset. And people that constantly pump gold, they they they talk about, you know, crazy numbers and crazy dynamics and the end of the world and the death of the dollar and implosion and zombie apocalypses or equivalent of and you know, buying guns and getting a compound up a desert somewhere and all that stuff as if because that's the only money that's going to be is gold and therefore that's why you hold it. Put all your money into gold. by the way, I'll sold it to you and and you know that's the only safe place to have it. Well, I don't believe that. I was talking about gold when it's 1900 or whatever it was saying it's going to go up a lot just in the same way as I just said that about copper. I looked at the chart and went, "Oh, blime me. This thing's broken out. It's on its way. Wow, it's going to go a long way. I see I see dead people." You know, I I I looked at the chart and I said, "It's going to um 3 a half thousand." And it did. And then I looked and I said it's going to 5 a half thousand. You can read it all in force and my reasoning behind it and copper is the same setup. So I look at gold and I go I love gold. I love gold. I've got I've got entertainment gold. I got tons of that. I've got you know watches in fact got one on right now. Yeah I love gold but not investment gold. Not at the moment. I would get into investment platinum. That's looking quite interesting. and palladium not looking so interesting, but platinum's looking interesting. So, it's just another asset. And I know lots of people consider it to be something holy, but I like Bitcoin, like the people that love Bitcoin and and you know, would say I I was um the anti- Bitcoin man. It's it's just another asset and it's a lovely asset, but it ain't going to go to 8,000 by Christmas. It might go up a bit more. um you know it's all down to how much M2 they pump into the system to fund the AI buildout. So in effect, gold has got a little bit of a a stake in this buildout because they're going to need a lot more M2, a lot more cash. They're going to print a lot of money going forward. So much money and that's going to cause elevated inflation. That's all good for gold. So nothing's going to be bad for gold going forward. All right. Which, let's do a lightning round. Which of the following that has recovered? And I'm going to pull these up on the screen here as we go through them. Which of the following that has moved dramatically in the last couple of days to almost two weeks would you be buying? Semiconductors fell in July. Uh up about 16% on the SFH, 20% um for for August. Would you be a buyer of semiconductors right now? >> No. No, I would be watching that top and if it breaks through the through that that range and starts heading up, I would buy it. But it could easily break down and drop a lot. So that that form is, you know, quite quite a um bull trap shape, but all you do is you put a range around it and if it breaks up to the range happy and if it breaks down for the range sad. It's the simplest that's the oldest oldest technical analysis trick in the book. you just put a box around it and and away you go. >> Okay, another big mover uh we have to bring this up is uh the Japanese yen. Uh dramatic appreciation on the day of the intervention which was uh early early uh August, but now it's kind of falling back down. >> Yeah, it's not it's not a huge jump. I mean, it's a nice looking chart, but that's a bearish chart, right? Because things that are bearish spike up and float down. people things that are bullish float up and spike down. Well, that's a spike up and a float down. So, that so that's that's bearish. >> Mhm. Bitcoin hasn't moved at all in the last uh couple weeks. All this volatility in other markets and then we've got we've got nobody's talking about Bitcoin. You haven't mentioned Bitcoin once in this entire interview, which is a telling sign of its own. >> I mean, I I I've been saying on your show I've been bored witnessed by Bitcoin and you know, people keep stealing it. I mean, how many hundreds of millions have to get stolen before people realize, well, they have realized it's not safe to hold it. Now, again, you put a ranger around that level is quite clearly a level. And if it breaks down, it's going to go down a lot. It's it's going to go under 40,000. If it breaks up, well, who knows? >> Yeah. And it's interesting how, look, the semis haven't corrected to new re haven't retraced new alltime highs, but the overall stock market has. >> And you look you look at this. Yeah. This is not a flake. This is not a float down. It's it's maintained its um this this is the S&P 500. What do you think of this chart? >> Right. So, my thesis is there's been a liquidity injection and that's what it's being fired at. Liquidity injections are fired at the equity markets cuz that is all that America's got these days. Yeah. Imagine that your equity market was the London market. All your Silicon Valley companies would fail. I mean, that'd be it. It'd be over for AI and they could never fund it. It'll that be it all all the value all that is has been pushed into the stock markets that is really the core value now it's not factories none none of that stuff it is being abstracted out into equity prices yeah so that's the core thing now I look at that chart is I would do exactly what I just said to the other things put a little box around that but to me that is so bullish I would expect that to break up and travel just as far as it has since over these last few days. Yeah. But of course it, you know, it could arc over it. Just put a little box around that around the bottom of that that range and the top of that range. Give it a little bit of space and then just wait and and it I I would guess that that well I mean I'm I'm long I'm I'm very long at the moment and I'm smiling but you know it that is that is quite bullish. But if you um squeeze that for like five years. Go on. >> Yeah. Five years. >> Yeah. Stop there. Right. Oh, that aloo. That's a straight line. I hope you can see that straight line. >> Yeah. >> So, so I mean, what else do you need to know? And every time something crops up that's unpleasant, out comes somebody, pulls a lever, pumps in the liquidity, gets it back up again, and and sets it off on that straight line again. I said this on my show several times. I said, "Look, Trump did the exact same thing in his first term. People have short-term memory. every time he's announced tariffs, the markets crashed and then rebounded, re-shaped recovery. And people said, "This time's different." Um, this time turned out not to be different. >> And obviously the scale of the tariffs on an international level has been higher this time, the second term. He's become more unhinched. The second term, he didn't invade or not. He didn't attack Iran the first the first term, at least not to the same scale. I mean, he did actually. He did. Let me take that back. He did, but he didn't bomb it to this kind of extent. But the point is, every time the markets went down during Trump's first term, it recovered in a V-shaped recovery. And this >> Yeah, it's a liquidity injection. And it's probably coming out of the Treasury cuz the last one, not this one, but the last one was done while J Power was under threat of criminal prosecution. So, you can imagine that he wasn't going to hand out any favors at that point. So, it has to come from somewhere else. There's only one other place it can come from, that's the Treasury. And you know they've got plenty of levers to pull and press and twist and obviously he can rely on them to do so because they're not inverted commas independent are they? >> What kind of president does that set when the president of the US can issue to the department of justice in order to start a criminal investigation on a Federal Reserve chair if he doesn't lower interest rates or do whatever the administration wants. Well, I mean, the American system has been indicting the top brass for political purposes for, you know, forever. Goes goes all the way back to Bill Clinton at the very least. So, the start, you know, the the medieval way of um basically using criminal prosecution against your political enemies. Nothing new there. Nothing new there at all. I in fact about the only one that didn't have it was um was Obama. But you know that that I mean Clinton it's it's not even it's not like one side does it to the other. They're always doing it to each other and and it's appalling and it's a great American weakness this lawfare as they call it now. But you know as soon as Clinton came out of wasn't president anymore all the cases were dropped. Yeah. Soon as soon as old um Trump gets in all the cases are dropped. So it's not an independent judiciary is it? It's a politicized judiciary that that that basically attack dogs. And of course, you know, if you're a normal person, maybe you've done quite well like someone like J, not a poor man, but he's not a rich man. You know, the the cost of litigation will wipe you out. If you look at what happened to um Giuliani, right? I mean, there's pretty much a political hero, you know, turned around New York, blah blah blah, absolutely devastated by that lawfare. And he's a lawyer, I think. So, you know, it's a it's a massive massive Achilles Hill in America. So, nothing new there. Nothing absolutely nothing new. In fact, Trump has been kind of relatively um restrained in comparison what's happened to what happened to Clinton and what happened to him. What happened to him was off the dial, right? It didn't even give up when he got out of power. They kept on going. In fact, if they'd left him alone, he probably never got reelected. Everyone would have forgotten him. But, you know, they kept on trying to, you know, string him up, hang hang draw and quarter him, and that's probably one of the reasons he got reelected. >> It's interesting how Trump has basically put the hammer down on political opponents who would not raise interest rates, lower interest rates. He wants interest rates to be lower. Kevin Worsh can't do that right now with the current condition that the Iran war has created. He has to either keep rates unchanged or raise rates. Three governors last time when interest rates Exactly. That's my point. They can do other things. They can do QE. They can buy Japanese yen. They can cap the long end of the Treasury curve with yield curve control >> and other methods. >> Yeah, exactly. They can do what they like. But what it means is there will be an elevated rate of inflation. You you pay for this with elevated inflation. Yeah. But if you look at all the governments that play this game, it goes from all the way from I think Finland don't do any of that. don't even have a have a national debt and you go all the way to Turkey or or you know somewhere in Africa where they staple together bundles of notes and it's the same it's all on the same curve. Yeah. And America's far far far away from say Turkey which is what everybody gets told is going to happen to America. It's miles a million miles away from that. But the direction of travel is there, but you know, at the end of the day, money is an illusion. It's a pretty convincing one. And they've got the tools to to do what is ever necessary to keep the wheels on, but the output of that is inflationary. Simple as that. Yeah. Okay. I'm sorry. Go ahead, please. >> I was going to say during CO they printed money like nobody's business and guess what? We got several years of inflation. It's they're directly connected and they will have to print money for all this re-industrialization, all this competing with China, all this trying to catch up with them, all this rolling out AI and they'll have to print it and that will mean there'll be five to I don't know 5 to 10 um rate of inflation coming down the pike. I I think it would be 5 to seven, but you know it that will be a it have to be a thing. There's no way of getting back on track with the American economy as an industrialized economy rather than a service and a quarterary economy back to a primary and secondary economy. There's no way to do that without vast amounts of new money. And the same goes with AI. You can't go and you know build these um you know data centers the size of you know small cities without there being vast investment and it's got to come from somewhere that it has to be be be printed. It has to be made. It has to be allowed to flow and you saw a little bit of that with what just happened because that is not about hormuz that's about the Cosby. This little jump here was about the Cosby because that could have had a knock-on effect and blown everything up because that was a proper crash. That was a com crash over there and now they've calmed that down because that could have got, you know, you could have got a Asian contagion part two with that and they came out and the liquidity was made available and the market stopped crashing and people stopped getting um you know margin calls and they bailed out Japan with euros not dollars and up goes the market because all of a sudden there was a flood of money going everywhere. >> Okay. So ultimate inflation hedge then what would it be for this year? Well, I I I you can play hedge. Yeah. No one ever got rich hedging. And in fact, it's expensive. Yeah. Hedges are expensive. Just go and have a look at option pricing. Yeah. Whenever you want to get it, even when even now, which is kind of semi boring, you go and look at it. You're looking at a year's hedge 10% of your portfolio. Well, it's only 7% average return. So you know that is expensive and you have to know when you need to do it and you have to know when you don't need to do it and that's impossible. So the best thing to do is not hedge is to take a position and there's two positions. One is cash is a position. So you're going to get eroded away. So that's not so great. The other one is get on your front foot get stock picking. Buy the stuff that is going to be motoring. And there's enough of that out there. I mean, it's crazy, crazy, crazy opportunities in the markets right now. We're at the beginning of a bubble beginning. That's not the same as being at the end, right? So, jump on board, take a ride, right? That's what I'm doing. And yeah, it's a bit of a dangerous game, but it's not as dangerous as sitting there and hoping that the world is going to do you a favor cuz it is not going to be doing you a favor. If you're passive, you're you're finished. >> Give us one such opportunity, then. >> Copper. I mean, there it is. >> That's core. But anything in the AI chain, and I keep saying this, and everybody looks at me blank, and you'll look at me blank when I say this. Goldman Sachs, why wouldn't you be long Goldman Sachs? Yeah. They're going to be handing out the money, aren't they? You know, government go here comes the money. Who who who gets it? Oh, Goldman Sachs and people like that. Yeah. Yeah. You want to do this with that plant? say that Nvidia have >> partnered with uh >> leading uh >> there you go >> market makers Apollo Black Rockck Blackstone Brookfield underwriters Goldman Sachs KKR to establish AI compute infrastructure $500 billion third party capital >> and they're going to get 7% of that. >> They're going to get 7% of that. So it's 35 billion between them. >> Yeah. So they're going to be making out like bandits. Not that they aren't bandits, but you know, so you don't, it's just that AI chain. Just follow it down. Follow the tree down the trunk, down through the roots, and you know, just stake them out and and and be active and watch your show where there'll be people telling you what to do. And you know, it it's it's all there to be had. All there to be had. >> Will oil retrace towards $100 by midterms, the midterm elections in November? I don't know. I mean, um, I'm amazed that that it's, you know, imbalanced that election. I should thought that the Republicans have waved goodbye to it, but they haven't. So, you know, I don't, you know, if if China is playing along, which it sounds like it did, cuz it it didn't have to say, "Oh, we don't want any oil while you're having all these conions." Didn't have to do that. Yeah. And it did. So, if it's playing along, then, you know, it does, nobody wants high oil prices. But I mean in the long term all energy is going to get much more expensive. It's got to get more expensive and oil is going to get more expensive because you know things that can operate perfectly well on petrol and diesel will be encouraged to do so because they won't want to be redirecting electricity to anywhere but the re-industrialization. >> Yeah. >> And there's finite amounts of it. They just cannot make it fast enough. So there's going to have to be a a reallocation of resources in electricity and it's going to be pulled away from certain areas which electricity is not necessary necessarily and of course that's got four wheels on it. >> Excellent. Thank you CLM. Uh where can we follow you for more opportunities? Now you mentioned you have a YouTube channel. >> Yeah. >> Yeah. for for a little bit more thoughtful presentation, the Substack is a good place because I put everything I do there. And you know, I I might even write up this conversation and put it there. And so everything I do ends up on Substack. Um and then YouTube I I'm on regular every 2 or 3 days I'll be there raving like I'm raving now. And um you know people tell me it's because I say things they don't hear anywhere else. That's the value. And yeah, I think that's right. I I don't as I said if you if you're paring um CBS you're not going to get rich. Yeah. And you know it it's you've got to be thinking well ahead of what comes next. So this Houthy stuff I spoke to someone earlier said I haven't read that in the press. Well yeah of course you haven't and it might not happen but when it does you'll be able to say oh that makes sense. Oh someone said that. So I try to to give people methods to make their own decisions. And so like when I was talking about the hockey stick earlier in copper, they go, "What the hell is he talking about?" He come to my channel and see what I mean by a hockey stick and apply that logic to all sorts of assets. Yeah. Not just copper's going to go up. You know, I'm I'm I don't I use examples, but I never want anybody to take the examples. I want them to take the technique. So I talk a lot about techniques. >> Okay, good. Well, follow there for more techniques. Clen, it's good to have you on as always. I look forward to the next update with you. Take care for now. Thanks very much, David. See you soon. Bye now.