US Interest Rates Are Spiking Again – Why This Is A Huge Deal

Tony Barresi joins the radio program as a guest for the first time while John Rubino and Michael Oliver return.

In 1970, a 1% increase in U.S. treasury interest rates increased the budget deficit by $3.7 billion. Now, with a $22 trillion budget deficit, a 1% rise in rates adds $220 billion annually to America’s deficit. A 5% rise would increase the U.S. deficit by more than $1 trillion per year! The U.S. is clearly approaching a state of fiscal bankruptcy even before baby boomer demographic considerations are factored in.

But a gaping U.S. budget deficit isn’t the only reason rising interest rates are a big deal. They tend to increase the value of the dollar. That means emerging nations that borrow dollars will also face growing insolvency. John Rubino talks about those dynamics.

Michael Oliver discusses his latest work on interest rates, the dollar and gold. A favorite gold exploration company, Triumph Gold, was introduced by first time guest Tony Barresi in this very important episode. 

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John Rubino runs the popular financial website He is co-author, with GoldMoney’s James Turk, of The Money Bubble: What To Do Before It Pops, and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), The Collapse of the Dollar (also with James Turk), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street(Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications. He currently writes for CFA Magazine.

Dr. Tony Barresi, Ph.D., P.Geo, VP Exploration of Triumph Gold, is an economic geologist with greater than ten years of base and precious metal exploration experience. He has conducted successful exploration programs on grassroots and brownfields projects, and specializes in volcanogenic massive sulfide, porphyry and epithermal deposit exploration.  Tony obtained his B.Sc. (honours) from Saint Mary’s University in 2004 and Ph.D. from Dalhousie University in 2015.  His Ph.D. thesis focused on the interplay between island-arc evolution and metallogenesis as recorded by the Hazelton Group in northwestern B.C., within one of Canada’s premiere metal districts.  Tony was awarded the prestigious Mary-Claire Ward Geoscience Award for his thesis by the Prospectors and Developers Association of Canada (PDAC) and the Geological Association of Canada (GAC).

Michael Oliver entered the financial services industry in 1975 on the Futures side, joining E.F. Hutton’s International Commodity Division, NYC. He studied under David Johnson, head of Hutton’s Commodity Division and Chairman of the COMEX.

In the 1980’s Oliver began to develop his own momentum-based method of technical analysis. In 1987 Oliver, along with his futures client accounts (Oliver had trading POA) technically anticipated and captured the Crash. Oliver began to realize that his emergent momentum-structural-based tools should be further developed into a full analytic methodology.

In 1992 he was asked by the Financial VP and head of Wachovia Bank’s Trust Department to provide soft dollar research to Wachovia. Within a year Oliver shifted from brokerage to full-time technical research. MSA has provided its proprietary technical research services to financial and asset management clients continually since 1992. Oliver is the author of The New Libertarianism: Anarcho-Capitalism.

About Jay Taylor