The American consumer is flashing historic warning signs, yet Wall Street is celebrating record corporate earnings. How are both true at the same time? Dr. Mark Thornton, Senior Fellow at the Mises Institute and Austrian economist, joins Kitco News anchor Jeremy Szafron to break down the mechanics of the “Two Economies.”
Dr. Thornton uncovers the truth behind the historic S&P 500 valuations, warning that the market hasn’t been this overvalued in 150 years. He also takes aim at the Federal Reserve, calling the Kevin Warsh nomination the “biggest hit job” on the precious metals market, and explains why a Volcker-style rate hike is impossible with U.S. debt above 100% of GDP. Plus, a deep dive into the SILVER Act, the Cantillon Effect, and why the Middle East energy shock will embed inflation for years to come.
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Chapters:
00:00 TWO ECONOMIES, ONE WARNING
01:18 MEET MARK THORNTON
02:23 THE AUSTRIAN CYCLE
04:56 LATE-CYCLE WARNING SIGNS
07:49 BROAD BOOM OR BUBBLE?
10:34 JOBS: STRENGTH OR BUBBLE SIGNAL?
11:55 WARSH TAKES THE FED
12:41 DEBT LIMITS RATE HIKES
13:54 METALS CRASH, BANKS READY?
19:54 BOND MARKET BREAKING POINT
22:16 CAN CREDIBILITY BEAT INFLATION?
24:49 SILVER’S VIOLENT BULL MARKET
28:04 THE SILVER ACT REACTION
32:20 WAR, ENERGY AND INFLATION
36:17 THE CANTILLON EFFECT
40:09 HOW LONG CAN THIS LAST?
43:13 FED HQ RENOVATION SYMBOLISM
45:31 ADVICE FOR WORKING FAMILIES
49:20 WHAT BREAKS THE METALS TRADE?
53:36 GOLD, SILVER AND FREEDOM
56:13 FINAL TAKEAWAY
#gold #silver #inflation #Fed #KevinWarsh #markthornton #kitconews #preciousmetals #economy #recession
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46 Comments
Wall Street is celebrating record earnings while Main Street gets crushed by $4.50+ gas and inflation. We are living in two completely different economies right now. Are you positioning your capital in the stock market, or are you moving into hard assets to survive the Cantillon effect? Drop your strategy in the comments and hit subscribe for more!
The FED is all smoke & mirrors
Mark has it right. Building the economy from the bottom up that's why the economy grew in the 1950-69 due to small businesses. Then big corps started growing killing off the mom and pop businesses. Then wealth divide started growing. If the govt allowed the lower income to hold gold and silver in bank accnts and not pay capital gains on it that is a game changer to help insulate them from inflation.
Sounds like 1929
Mark Thornton is right on the ball.
I suspect that one was as hard for you as it was for me Jeremy, Holy shit, I'm dummer for having listened to him!
When the adema has been reduced 100% there is nothing left to reduce. WTF does a reduction of 568% even mean ?
No one in your in the comments mentions the solution Dr. Thornton suggested. Bring the country back to the people by bringing control back to the people. The first is to dismantle the federal government down to its Jeffersonian basics, take away the right to tax, and have the cost paid by each State. That's only a start of bringing the power back to the people and reverse the top down system to where its needs to be, from the bottom up.
Everyone is concerned about higher prices, and should be. This is part of the equation revealing the inflation rate. But when are we going to broaden the equation to include the insane increases in taxation that are doing far more damage to income? Maybe there should be a 28th amendment to the Constitution that limits the level of taxation, local, state and federal, that a citizen can be subject to??? There is no stopping any level of government from raising taxes to any height desired. Without a "peoples constraint" on taxation, all we earn is subject to their will not ours, and all we possess is rented from government.
We're celebrating 250 years of a constitutional republic that WAS based on restricting government so we could be free and thrive.
Basically the government and the Demoncrats really have screwed us.
One of the best guests ever
Knows all aspects of political economic social life
THE SMP IS TOTAL BULLSHIT!
GOLD
Gold Is for the sun and silver is for the moon.
" The heavens and the earth might pass away but my word will endure forever" Jesus said.
Common sense:
Don't be fooled, read God's word which is good like the truth, the rest is noise. God's kingdom will come and expose all the lies rewarding those that live the truth, read God's word and follow Jesus as the model. God's word is Gold, prayer is like silver that preserves.
Common sense:
Don't be fooled by modern financial theory, the truth of of God's word like gold will set you free, prayer like silver will give you the daily bread from heaven. " God cannot lie" rely on the unchangeable truth, read the bible that is like gold, put faith in Jehovah's kingdom by Christ Jesus.
Pray that, "your kingdom come and your will be done on earth as it is in heaven"- Matthew 6. The only solution for a disfunctional monetary system that will continue to limp and totter until the revealing of the of the son of his love, Jesus Christ with the Kingdom of the heaven. Pray!
Wow gas is so cheap in America. Average $4.55 while in Ireland it is £2.03 per liter wich equates to $9.15 USD / US Gallon, nearly double, and the Irish are not complaining.
No big deal…the Fed will be permitted (encouraged) to continue to steal from the people. Just another day.
Long winded 😂
FIAT MONEY NOW BYS LESS EVERY YEAR ! GOLD AND SILVER ARE INFLATION HEDGES !!!
Thanks. Very educated, but regretfully no Question and reply about implications of AI??
Good show. Interesting conversation. I hope you have this guy on again.
Wishful thinking 🤔
😂👍💪
increases price of assets through inflation ( money printing) that constitutes loss of acctual wealth , being rich in zimbabwe dollar aint good. SP 500 in gold of 1999 5.3 oz SP 500 2026 in gold is 1.3 oz it means even with massive gains since 1999 you still at the massive loss in gold . Gold is real mone not fiat
Drop the illegally imposed " Income Tax " and set the working people free from the clutches of the Grifters. Goodbye DNC 🧌🧌❗️8
All bets are off.
Asset strip economy. Monopoly version.
Excellent interview, on the dot analysis
Buy gold and silver it will save you when all else fails
I call BS for the most part
…..
7jnn
Americans wake up. There are countries beyond yours. In Australia we paid $4.40 a litre for diesel (until our government temporarily cut the tax on fuel). There are close to 4 litres in a gallon. That’s over $17 a gallon. Your president caused this fuel crisis by bombing Iran with NO provocation. The world beyond the USA despises America.
If you had to live in Michigan. Well then you'd understand.
Bottom line: The poor can't pay for this, they have no money. The rich get out of paying every time. The total bill will be paid by us middle class workers. Every F'ing time.
China is a Communist country everything are own by the government, all these so called economic experts think Communist China economy works same as US, well they DON'T
They (global corporatopolies… yes this include banks) have been looting the private citizens around the world.
Great talk!
It’s no secret that Walsh worked along side Bessent at Drunkenmillers Family Office and both Drunk and Bessent are gold friendly…
Warsh tries to discourage idle money with low interest and high inflation.
Rate of Return > Interest Rate > Inflation Rate > 0
Hard-working owners of small and large companies need low interest rate, not his workers.
Infinite Spreadsheet stops the Finite Spreadsheet Instability which plagues the Free Market.
Gold is simply just another Asset class… THE GREATEST ASSET CLASS IS HUMAN CAPITAL.
ITS PEOPLE SILLY.
BECAUSE THEY AEE THE ONES CREATING NEW TECHNOLOGIES AND PRODUCTIVITY STREAMS.
Gold is simply just another Asset class… THE GREATEST ASSET CLASS IS HUMAN CAPITAL.
ITS PEOPLE SILLY.
BECAUSE THEY AEE THE ONES CREATING NEW TECHNOLOGIES AND PRODUCTIVITY STREAMS.
Gold is simply just another Asset class… THE GREATEST ASSET CLASS IS HUMAN CAPITAL.
ITS PEOPLE SILLY.
BECAUSE THEY AEE THE ONES CREATING NEW TECHNOLOGIES AND PRODUCTIVITY STREAMS.
Trump said he doesn't care about Americans. He jumps for Adelson & Netanyahu. Benedict Arnold betrayed his supporters. Except for the Epstein Class.
4%……lol.
Thanks for having Mark on again, Jeremy. We always enjoy these conversations!
The US has no problem manipulating precious metal prices down and selling it all to China. They are either extremely stupid or greedy thieves hording dollars. The best thing that could happen is the dollar to go to zero and be done with these crooks.