Fed to Raise Its 2% Inflation Target? Seismic Re-Pricing Across All Asset Classes Coming - McDonald

Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, interviews Larry McDonald, Founder of The Bear Traps Report and New York Times bestselling author of 'How to Listen When Markets Speak' and 'Colossal Failure of Common Sense.' McDonald warns that we are headed into an era of persistent inflation, escalation in global conflict, a multipolar world, a weakening U.S. dollar, a series of sovereign debt crises, and capital fleeing out of financial assets into hard assets. He sheds light on how the Federal Reserve will approach its 2% inflation target amid sticky inflation. McDonald also explores the coming commodity bull market, going over the top winners. He shares his price outlooks for gold, silver, platinum, oil, and natural gas.
#Fed #inflation #debt #dollar #investing
Follow Michelle Makori on X: @MichelleMakori ( / michellemakori )
Follow Kitco News on X: @KitcoNewsNOW ( / kitconewsnow )
Follow Larry McDonald on X: @Convertbond ( / convertbond )
00:00 Coming up
00:44 Introduction: Fed’s Inflation Target
01:19 Inflation and Economic Shifts
03:15 The Future of Financial Markets and Debt Solutions
04:57 The Inevitable Shift Towards Higher Inflation Targets
07:55 The Impact of Inflation on Investment Strategies
15:17 Navigating the Commodity Bull Market and Asset Allocation
20:25 The Global Economic Landscape and Commodity Demand
23:50 Strategic Outlook on Oil and Natural Gas
28:10 The Current Equity Climate and Market Risks
33:48 Commodity Investments
34:50 The U.S. Banking Sector’s Troubles
37:52 The Perils of Passive Investing and ETFs
47:09 U.S. Debt and Dollar Dynamics
52:39 Gold and Silver
58:59 Platinum
01:05:59 Potential Threats to the Commodity Bull Market Thesis
__________________________________________________________________
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[@kitco]

Do you think the Fed will swap its 2% inflation target for 3%? What will be the consequences?

[@babuOOabc]

comon sense did not fail what fail it the representation system tham do not let the comon sense be in charge

[@Chuck68ify]

Well, with 2% your current dollar will completely disappear in 50 years, 3%, 33 years.

[@dynasty7298]

Should be 0. Inflation is the most wbil thing ever created in the last 100 years. Stealing the time of literally every single human on the earth

[@babuOOabc]

if most rich people do not like people, rich people only see thier future so if they hold most of world money they will seek for space automation dev tech resourses and core luxury good life in space and scare secure good spaces in the earth.

[@dragonflydreamer7658]

THREADS

[@TracyKonoske]

Why don’t we put food and gasoline back in to the equation and just admit inflation is running about 40% ?

[@ThePickledOnions]

Hahaha. This 👏 I think it's useful if you want to keep the masses sleeping as you're robbing their house. I haven't heard a better explanation yet.

[@simonsayshi]

People like you lying to their face then tell them the truth

[@dragonflydreamer7658]

THREADS

[@jabezireal1085]

Thank-you for telling the truth, America is done.

[@user-hj2bl3gh5y]

Precisely, CPI is an indicator of convenience as it does not provides an accurate picture of reality. I live in the real world and honestly prices are way above those 3% and 4%. All over, electricity, food, transport, you name it. Some food items way above 40%.

[@eabhaconnor2]

They raise interest rates, but then continue their obscene overspending and money printing. Such a mess

[@scorps0326]

Gov blame fed, fed blame gov. No one actually fixes anything. Everyday people get screwed. It's not a mess, feels more designed.

[@greatvalleyone]

​@@scorps0326The last 3 years definitely fee as a planned destruction of the country.

[@udonewsreport]

Raising rates as spending is increased as rates rise further as spending accelerates is how Weimar hyperinflation unfolded; this is known as the monetary symphony of destruction.

[@waynehendrix4806]

@@scorps0326 It is designed. You are the cash cow for them. They just want to live off of your labor and fat. Government is a leech. Oneworlders are worse. Those guys just want to own you as farm animals.

[@waynehendrix4806]

@@udonewsreport In F minor.

[@jackspence625]

If you pull back the curtain, you will see that the FED is not targeting 2% inflation. It's targeting ways to manipulate the CPI, to show 2% inflation.

[@Lukky_Luke]

exactly, so they wont change to 3% since they already have changed it dacedes ago and keep do doing changes how it is calculated

[@FranciszekPawal]

Someone said that it's time to be concerned when you start to see individuals shoplifting groceries rather than big-screen televisions, and i agree. Truth is, inflation will never reach 2% ever again, maybe in the next life, but not this one. Anyone purchasing groceries and gasoline is aware that real inflation is much over 10%; they simply lie about it like cheap blankets. In reality, interest rates would be in the 20s because of how high inflation is. But then despite the severe bear market, I am aware of certain investors that continue to earn over $100,000. Wish I could accomplish that.

[@Javier_Rodri]

Very possible! Particularly in this weak market. There are several opportunities to generate excellent returns, but in unpredictable terrain as this volatility is a huge factor when in the playing field, the rally is a “frenemy”. Get an advisor

[@BenBak-wt7qi]

I totally agree, it's been three years and counting, and I've made over 1.7 million by simply following a coach's advice. I was on the sidelines for a while watching, trying to determine the best time to get in, before I came across a coach, recommended by my wife. I was reluctant at first but I went ahead and contacted the coach. As a small reward for my consistency, I went on a trip to the Bahamas in the late summer. haha

[@simone_maya]

My husband and i just had this conversation this morning. This is exactly how we wish to get our finances coordinated ahead of retirement. Can I get access to your advisor?

[@BenBak-wt7qi]

Sure, Monica Mary Strigle is the person that guides us, the wife has her on favorites.

[@BenBak-wt7qi]

browse...credentials are public knowledge, you can actually write and set up appt yourself

[@Mekkalekka]

Michelle asks the smartest questions. One of my favorite interviewers. Great job as usual.

[@dangersmymiddlename6341]

@MichelleMakori - You are the best interviewer I have ever witnessed. Your laser beam focus and listening skills are unparalleled and the reason that your questions are spot on! But it’s also your foundational understanding of the financial/investment world that allows you to gain keen insights from your guests and ask the questions that will bring out the answers we want. Please don’t ever go to the mainstream media, your realized potential is being realized where you are. I appreciate you!

[@WalterDorcas]

Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.

[@inflationmillionaire-df3mn]

Even if they monetize the debt if they don't stop spending so much money there is no way out

[@waynehendrix4806]

"They" need to be less in control of "Us" for sure.

[@JamesStakerWin]

The way out is the rest of the developed world more rekd than America and it's working so far.

[@nevillokapi3617]

Thanks Michelle and Larry..Return To Global HARD ASSETS 📀💿📀💿🌎SOON❤❤❤❤❤❤

[@user-lm9pu3sq9d]

for many years, our oil companies could not sell their products on the world market , which helped us with a steady cost for transportation expenses. But once we entered the world market it became very dynamic.

[@anupamsircar111]

You have a very competent anchor in Michelle Makori.

[@chrislake552]

Target should be 0%

[@_-Wade-_]

Bitcoin does that

[@erickanter]

Should be but impossible.

[@vincentyeo88]

If that's the case, then the government can't grow GDP with false numbers.

[@user-lb8bg6kj9m]

There should be deflation in general as technology and increases in worker productivity makes things cheaper not as expensive let alone more expensive.

[@_-Wade-_]

@@erickanter Yoda said that's why we fail

[@PlantPapaJohn]

The only problem with this guest is the fact he obviously does not understand inflation or he would know that inflation is already running well above interest rates!

[@brianrobertson7012]

Always has since 1971.

[@RS-zj6ix]

Food. Housing. 2%????? Try 100%

[@davidlim5]

Cut their pay & allowance. !!!

[@AndyMacaskill]

I love Michelle's interviews in general. However, I really love when the interviewee is the author of a book she has enjoyed. Actually, I think I just love Michelle, and her interviews vary in awesomness. 😅

[@MichelleMakoriVideo]

😊

[@sturost3769]

…incel alert 🚨

[@Robyn-Hood]

🎉🎉🎉 Michelle you presented an amazing show 🎉🎉🎉

[@abdulrahmanhocaoglu249]

Thanks Kitco for meeting with this brilliant guy, I watched the whole episode, I should watch it again, it is full of priceless information Thanks Michelle

[@TemplarYogi]

Fiat currencies in a race to the bottom.

[@williammorris3815]

The price of oil is low yet at the pump prices are high. After the recent report of oil companies caught price fixing, those CEO’s must be prosecuted.

[@rahulparikh6183]

Go vote for biden like we know you will

[@joycehaines2055]

Fined millions would get to their bottom line.

[@Mr.SharkTooth-zc8rm]

Wow! This was superb as well as sobering. Thank you both.

[@mfaraday3872]

Thanks Michelle, very professional.

[@dr.ulyssesswlabr6642]

Larry is right on! I laugh to myself when everyone cries about 6% 30-year mortgage rates, which are still ridiculously historically low. We will all pay eventually for 15 years of disgusting Fed manipulation.

[@thomashume6497]

A really high quality guest Michelle! Thanks. I prefer it so much when you take your time to find a proper guest or invite back another high quality guest keeping your platform to the open minded immense standards that I usually find, when you rush to put up content I find the standard drops. Just my opinion but I have been watching your channel for nearly 5 years now and am very grateful to you all at kitco.

[@jessicapae9642]

Excellent interview

[@GoldSword777]

So many good questions from Michelle and fantastic answers and insight from L. McDonald. This was a great interview., Thank you! Nice job!

[@ryankarus1465]

Inflation i would say has to be close if not over 30%, its such a lie. Hell, we wish it was 4%

[@l.a.mottern3106]

Naw. Its only about 17-18%. No worries.

[@uzzsr]

30% a year?

[@waynefaulkner2180]

May 10th. Great interview, but David is missing the fact that physical gold is a Tier 1 asset. Central Banks are buying physical gold. I wouldn't touch ETF'S. Stick with physical gold and silver Bullion.

[@fbazzrea]

that 40% household wealth in equities is owned by 10% population

[@pamelamehl5668]

Larry Fink

[@nicholaseff8511]

Hey Bernanke, the Nobel committee wants its peace prize back.

[@l.a.mottern3106]

Hilarious :-D

[@vincentyeo88]

Also, that helicopter he'd forgotten to return to the mechanic workshop. 🤣

[@user-lb8bg6kj9m]

There is no real nobel prize in economics. It's an award created by banks and simply called as such to give it credibility.

[@uberimmer8993]

Drink a shot every time Larry mentions his book

[@landshark7154]

😵‍💫

[@judgedredd8876]

Aww, you are so right, go ahead and be an entitled freeloader, consume all the analysis from brilliant people and then complain about it.

[@rahulparikh6183]

@@judgedredd8876lol well said

[@BlueToronto]

She's the one who mentioned it a bunch.

[@user-hm5zb1qn6g]

I'm hammered right now

[@Billy97ify]

Conventional wisdom is that rates go down in a contraction. Usually too late to do anyone any good.

[@erickanter]

The fed cannot hit 2 percent no way. The only way to deal with debt is inflation.

[@christophermckenney4858]

Great job Michelle. You ask the questions I want answered from the interviewees

[@ccorm3350]

2 to 3 % is a huge. It’s a 50% increase in inflation target

[@user-hj2bl3gh5y]

Lol - These are the people who are supposed to be the most sophisticated or intelligent so they can govern "us".

[@waynehendrix4806]

@@user-hj2bl3gh5y Like Cramer said "they know nothing!" It's all a sham. Ironically Cramer knew nothing also.

[@robertnakat4662]

Great guest, one of your most knowledgeable interviews ever , what an enlightened man. Great content and priceless knowledge.

[@kitco]

Thanks 😊

[@nunyabusiness2871]

Thank you, Michelle for a wonderful interview. Great job!

[@peterzuehlke]

takes a lot of hedonic adjustments to report inflation right now is only 3.5 percent. the question is more is it 8 or 12% now (using the old formulaes) and do they need to increase it more from here.

[@JeeGee114]

It is a god damn mess. Why work at all?

[@kipincharge2833]

😅could go to work to pay my taxes , but they will tax me

[@jabezireal1085]

I agree, the tax payer Money is going to the.

[@greatvalleyone]

We are slowly becoming a 3rd world country.

[@philipfiorentino6931]

Don't take the Lords name in vain

[@pamelamehl5668]

Because a human needs a purpose to take pride in versus bingeing on Netflix and depression eating.

[@akesha4138]

Wrong analysis: Oil prices during a recession can sink to new lows while inflation runs hot. Production is not the problem; pure greed tries to take over and when that fails - the oil producers are forced to lower prices and keep them low during the downturn.

[@johnwade3476]

2 percent inflation has been a tax since 1971 !

[@jackspence625]

It's good to know that someone is finally realizing that.

[@davidlim5]

Lying so long already ???

[@HalfassDIY]

The Fed needs to shut their debt-hole !

[@TomiBear5]

He clearly has a good relationship with some of the most sophisticated investors around the world.

[@LeoVillaraza]

Amidst shifting economic tides, the Fed's early move on interest rates before hitting the 2% inflation mark signals a crucial turn for investors. This isn't just about stocks and bonds reacting; it's a ripe moment for crypto enthusiasts. As traditional markets recalibrate, the crypto world beckons with its promise of growth and diversification. It's a call to action for investors to rethink strategies and possibly ride the wave of change that's sweeping through the financial landscape.....managed to grow a nest egg of around 100k to a decent 532k in the space of a five weeks... I'm especially grateful to Tobias Hawke, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[@LeoVillaraza]

Tobias Hawke program is widely available online..

[@BCelt348]

Throughout my involvement in various trading programs over the years, sifting through a wealth of information, I have yet to encounter anything that rivals the clarity, depth, and precision of Tobias insights. It's like uncovering a diamond in a coal mine.

[@rafaelpqno]

Building a good investment portfolio is more complex so I would recommend you seek Tobias support.

[@FirstNOnly]

If the market has taught me anything, it's that it always recovers, but I can't seem to focus on the long run, when major factors like my retirement and my reserve are wreaking havoc on inflation. I require a solid data trajectory and solution as soon as possible.

[@lottschke]

He appears to be well-educated and well-read. I ran a Google search on his name and came across his website; thank you for sharing….

[@AnnaChachin]

Thanks Michelle.

[@sanderwalg]

Please be aware that I take huge value in your videos, Ben. I discovered your channel just about when you started talking about bitcoin dominance a few years back, and I think I’ve seen them all. Even though I can be a bit repetitive from time to time, you have been so correct for such a long time. It would truly be a shame if you were to stop analyzing the bitcoin dominance. I imagine that there are a lot of people who share the same thoughts about this. Hat off to you

[@stlouisix3]

Agreed with Larry McDonald.

[@kgyore]

Great job Michelle! You always bring such quality and grace to this channel. On inflation, the FED and the BLS has been caught again and again fibbing on their statistics because they don't want to create panic. It's going to be a managed decline. Gradually and then suddenly. I agree that assests will have a much larger role in the future. Recommend shadowstats by John Williams for inflation numbers.

[@warriorclassusa5392]

Michelle would be a great 007 Bond girl!!!

[@superstar5123]

no one wants to hear your comments on Michelle's body and looks, respect Michelle and shut up

[@HipHopCantSaveMe]

Ohhh I like that! She's been a bad girl!

[@joshspiker]

nah, she's too old

[@user-99.99]

@@joshspikerShut your mouth. 🤣

[@l.a.mottern3106]

"The name is Bond, Michelle Bond"

[@jerrymeyers522]

Picking a higher inflation target is like raising taxes, only worse.

[@dannygonzales7923]

EITHER WAY THE DOLLAR WILL CONTINUE TO BE DUMPED !!!!

[@kipincharge2833]

😀😄😅

[@davidlim5]

Already doomed !!!

[@tz6516]

Be careful. The media loves to push a narrative long after it has pivoted. This channel loves gold. It has lately (and late to the party) pivoted to love crypto. But the world is changing. Deflation is coming …which will hurt all hard assets including gold and crypto. Artificial intelligence, low birth rate, robotics, free energy, autonomous mobility, digital transactions, healthcare innovation, disintermediation, and boomer retirements….all deflationary. The entire “gold, crypto, hyperinflation, financial reset” narrative is flawed.

[@kp3509]

Na dollar is still king.

[@dannygonzales7923]

@@kp3509 THE FASTEST DOLLAR DUMPERS ARE THE RICH AMERICANS IN FACT MANY NEVER EVER HELD DOLLARS THE HOLD GOLD !!!!! BUT HEY YOU HOLD ON TO THAT DOLLAR THE REST OF US WILL CONTINUE TO DUMP DOLLARS NONSTOP !!!!!!!!

[@wm.scottpappert9869]

Great interviewing as expected Michelle 😉. Tough questions and straight answers to a very challenging scenario ... policies over the last 10 yrs have clearly put the Fed in a difficult spot. Need to buy more popcorn !! Added Larry's book to my short list ....

[@Radio280]

Makori exhausted the man. He was without a voice at the end. I enjoyed the talk though.

[@frankiesmart1113]

Excellent interview Michelle 👍

[@kenricwalters3424]

GREAT LARRY,YOU AND THE SISTERS, GOOD SHOWS, PEOPLE'S LOVERS YOU ALL ,GOOD REASONING ,BLESS UP THAT GOOD wisdom INDEEDS ,BLESS,

[@kurtKking]

I anticipate an economic downturn lasting between 2 to 3 years. If inflation persists, it's probable that the Federal Reserve will opt to increase interest rates in the near future. Inflationary pressures are causing a range of problems worldwide, including shortages in food supplies, diesel, and heating fuel, as well as significant surges in housing prices, which could potentially trigger a crash in the financial markets. This global economic slowdown may have enduring consequences. With the current inflation rate hovering around 9%, my primary concern is how to maximize the returns on my savings and retirement portfolio, which has remained stagnant at approximately $300,000 without yielding substantial gains for quite some time.

[@louverture905]

Michelle, good question at 20:00

[@majorpayne8373]

Michelle again giving us a good view of the bust up ahead.

[@rwally3able]

Thankyou!!!!!

[@brentirwin1386]

The guest is top shelf and agreed with him on everything!

[@timalilover-qy4hb]

Oh, I love you guys, the best market analysis! Seriously, why not mention Eledator?

[@Mysterus88]

Awesome discussion!

[@3dlancerArt]

I loved this interview Michelle! Thank you!

[@AAT305]

One of the best interviews so far

[@auntiefiat9769]

Don't sell Gold to buy Platinum. Sell equities to buy Platinum. Hold your Gold and Silver!!

[@andreavandekleut6379]

NICE job Michelle , good interview.

[@jwpajak]

Fantastic guest

[@butchmauldin4314]

If the goal is to wipe out the debt, it would seem to me that balancing the budget would be the play. Setting a goal to have interest rates lower than the inflation rate only makes sense with a balanced budget

[@user-lb8bg6kj9m]

The plan to inflate away debt is about to backfire spectacularly.

[@tz6516]

A balanced budget would bring the economy to a halt and unemployment would skyrocket. More importantly, the citizenry would be screaming to “throw the bums out”. Politicians will kick the can and continue to collect their government paychecks. Maintaining their political power is more important than their citizenry.

[@tomproctor.archive]

Great interview Michelle!

[@skidogbill]

Great interview!

[@JoelSonofJack]

What a fantastic book name. Excellent.

[@davidmcfadden1763]

Fascinating discussion

[@KEYDUPInc-xt7rs]

This was great! Both u2! For a newbie like me

[@sherrydance144]

Excellent interview, as usual!

[@mikedevere]

Just brilliant interview. Best yet imo ❤

[@candynewman4267]

Great interview - great guest! After the interview I went and read his book. I thoroughly enjoyed it and highly recommend it anyone who manages their own portfolio

[@gregorylawrence6440]

Brillant outlook!

[@neilforeman]

Physical form for me thanks Larry.

[@jensjacobfoged9147]

Nailed it.

[@daniellacestar1965]

Tack❤

[@KZ-hk8qt]

Best interview so far! Very good analysis

[@jepadelmonton4349]

Nice!

[@Aipips]

Great show

[@anahitakatrak5995]

Well researched by Mr. Larry McDonald.

[@mmm-cake]

Interesting way to see the markets today

[@babuOOabc]

saving frankenstein.

[@timedowntube]

Top rank guest

[@truthisthevictory9278]

Anyone can forecast a plat ETF upswing, including chart showing wedge pattern, but that doesn't equal low supply or lower mining output.

[@BurtWalker100]

Kitco is one of the three best financial advisory blogs.

[@vaskenderboghossian8061]

a pretty amazing guest Larry McDonald !! a rare find

[@feelnrite]

I still think we have a major run in markets before a huge fall off. I guess the key is not staying in too long.

[@andrzejfrancikiewicz9964]

1000.000 tons silver in military use.🎉❤

[@4hartrich]

Cut rates but lower the money supply. Rates don’t cause or get rid of inflation, the $ supply does.

[@1philliph]

How do they do both those at the same time exactly?

[@4hartrich]

@@1philliph increase the runoff of debt the fed has and lower fed funds rate. But really the government has to cut spending to lower inflation. The government is the cause of all of our inflation. Too much spending!!

[@l.a.mottern3106]

If the threat of US Cap-Gains taxes increasing substantially next year, Equities may start to sell off.

[@nonokodog622]

I started buying platinum when the war in Ukraine started. I didn't know much about it at the time, it just made sense.

[@kevinmorris3649]

i'm going all in on blackholes -how scarce are those - i'll make billions - focus on real need commods.

[@KingComputerSydney]

A correction on the volume of gold ever mined- it is about 3.7 Olympic size swimming pools, not 1

[@charleshinton8565]

Go for dividend paying raw material stocks…. Ie Gravel . Food distribution also benefits from inflation .

[@wvhaugen]

"Monetizing the debt through inflation." I love it! I was wondering how our political overlords were going to save their own bacon. At 42:00 and thereabouts, Michelle makes a good point about the herd mentality negating stock fundamentals. Of course McDonald and his peers don't like the index funds making the market. They are very good at a rigged game and don't like a decrease in their input and control. As for me, I have made quite a bit of money for our retirement through Vanguard index funds, so I am sanguine about their role in making the market. Keep in mind that the two most dangerous paradigms in economics are the efficient market and the rational human. As an anthropologist, I know that both are untrue.

[@SeanPan-it3jm]

NOW!