Doug Noland, Dr. Quinton Hennigh and Anthony Santelli return as guests on this week’s program.
In his May 21 Credit Weekly Bulletin, Doug wrote: “Rather than subprime mortgages as the system’s weak link, today it’s “subprime” corporate Credit. History suggests today’s festering issues in Credit derivatives and “structured finance” will prove woefully worse than anyone today appreciates. And there is little policymakers can do to remedy the situation. The cycle has changed. The amount of stimulus necessary to one more time resuscitate Bubble Dynamics would risk hyperinflation.”
Doug provides information in support of his concern that the hyperinflationary risk in this credit cycle is very real. Massive credit creation is the main cause of the surging increase in the cost of staying alive but policy makers are doing their best to exacerbate a shortage of one of the most crucial life-sustaining commodities, namely energy.
Anthony explains how an emerging ethanol producer, Blue Biofuels, is on the cusp of using its proprietary technology to produce ethanol in a cost-effective manner which in anticipation of strong profit margins even as it complies with net zero CO2 emissions. Quinton updates us on the amazing gold and silver exploration upside for Eskay Mining as that company begins this summer’s exploration program.
