Coronavirus and Credit – A Perfect Storm

Alasdair Macleod, Quinton Hennigh & John Kaiser are this week’s guests on the radio program.

Americans long ago stopped worrying about Federal deficits premised on the view that the world will forever need dollars. But what happens if the Coronavirus leads to massive global supply disruptions, the global economy enters a recession and the U.S. debt to GDP reaches historically dangerous levels? With plunging liquidity resulting from a recession and growing bankruptcies, the only way the U.S. will fund its deficits is via the Fed forcing trillions of phantom dollars into the system driving interest rates deeply into negative territory, thus diminishing demand for dollars in favor of tangible assets. With the purchasing power of the dollar in decline, an inflationary depression will ensue. Alasdair explains these dynamics.

Quinton explains why Irving’s Omu project in Japan is highly prospective despite narrow high-grade, gold-hosted veins and John shares a favorite investment idea or two.

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Alasdair Macleod has a background as a stockbroker, banker and economist. He is a Senior Fellow at the GoldMoney Foundation and Head of Research at Goldmoney.  His experience encompasses equity and bond markets, fund management, corporate finance and investment strategy. His weekly articles written for GoldMoney are posted on his blog at https://www.goldmoney.com/research/goldmoney-insights Because of his deep insights into underlying market dynamics, Alasdair is one of the most frequent guests on Turning Hard Times into Good Times.

Dr. Quinton Hennigh is an economic geologist with 25 years of exploration experience, mainly gold related.  Early in his career, he explored for major mining firms including Homestake Mining Company, Newcrest Mining Ltd and Newmont Mining Corporation.  Dr. Hennigh joined the junior mining sector in 2007 and has been involved with a number of Canadian listed gold companies including Gold Canyon Resources where he led exploration at the Springpole alkaline gold project near Red Lake Ontario, a 5 million ounce gold asset that was recently sold.  In 2010, Dr. Hennigh helped start Novo Resources and began assembling its Australian exploration portfolio. Dr. Hennigh obtained a Ph.D. in Geology/Geochemistry from the Colorado School of Mines.  Currently is also a Director for Miramont Resources and Irving Resources.

John Kaiser is an independent analyst based in the San Francisco area who has covered the junior resource sector since 1983. He graduated from the University of British Columbia, Vancouver in 1982. After a decade working as a research director in Vancouver he left the brokerage industry in 1994 to launch Kaiser Research Online and create the “rational speculation model” as a tool to evaluate the speculative value of exploration projects. Kaiser Research Online is a subscription service that publishes his analysis, provides searchable information on over 1700 Canadian listed junior mining and exploration companies, and tracks trends within the junior sector and their relationship to macro trends.

About Jay Taylor