Rate Cuts and the Impact on Commodities - Bizarro World 283

“We’re proud technocrats.”

That’s how Philly Fed President Patrick Harker referred to the Federal Reserve during an interview from the wealthy enclave of Jackson Hole last week. 

Our disdain for the Fed is no secret. We think it’s an unelected body that wields too much power while serving a select few and making wealth inequality worse. 

By definition, a technocrat is part of the “elite”. 

We don’t consider ourselves part of the elite and we don’t work for them. We work for ourselves, for our families, and for you. 

Nonetheless, we can’t bend reality to our worldview. So we acknowledge it and profit in spite of it to fund the lives that we want to lead. 

That’s where the discussion in the 283rd episode of Investing in Bizarro World begins. 

It continues with a look at what rate cuts mean for the market and commodities in the context of an economic slowdown amid an ongoing supercycle. 


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We have been positioning in rate-sensitive plays like gold, utilities, and real estate. And it’s been paying off. As one listener said last week: “Congratulations Gerardo. Some of your plays are on fire. Much appreciated.”

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On fire, indeed. Gerardo’s top gold pick has now tripled in the past six months! (You can see why here.) 

After that, we spend some time discussing the lithium market in light of Patriot Battery Metals releasing the first preliminary economic assessment on the Shaakichiuwaanaan Project. It showed a project with a net present value of US$2.2 billion that could eventually become the fourth-largest lithium mine in the world. 

Thanks to our use of private placements, we first got ourselves and readers into it when it was 16-cents and nobody had a clue what it was. It has changed many lives since, and will change many more as it gets built. 

Then we look at the Democratic Convention and some of the policy ideas from Kamala Harris, including taxing unrealized gains. Needless to say, we aren’t fans of that, and we urge a focus on decreasing spending rather than increasing tax revenue. 

But whether it’s Ms. Harris or Mr. Trump who wins this fall, your tax bill is destined to rise in the long-term. We talk about why that is so dangerous for the upper-middle class and those raising kids. 

And the same reason your taxes are going to rise is the same reason that gold is now breaching all-time highs north of $2,500 per ounce. Mr. Dines’ Goldbug! book that I mentioned last week foresaw much of this. Check that book out here

It’s all in the 283rd episode of Investing in Bizarro World

You can watch the full episode here. 

0:00 Intro
7:25 Great Disdain for the Fed
14:12 Commodity Outlook: Gold, Silver, Copper, Uranium
17:05 Long-term Lithium & Patriot’s PEA
28:16 A Look at Potential Harris Policies