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. 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.