The Rising Tide of Debt and Its Social Implications

Tom welcomes back Jaime Carrasco, portfolio manager for Carrasco Wealth Management. Jaime provides an in-depth analysis of the current economic landscape, focusing primarily on silver and gold as critical investment assets during a potential monetary reset. Carrasco argues that silver is significantly undervalued, highlighting the historical gold-to-silver ratio and the massive structural deficit in silver production. He believes silver presents an extraordinary investment opportunity, especially given its current price is essentially unchanged from 40 years ago, while other commodities have dramatically increased in value.

The discussion centers on the potential for a major monetary reset, similar to historical precedents like Roosevelt’s 1933 dollar revaluation. Carrasco suggests that central banks and governments are preparing to revalue asset ledgers, potentially backing currencies with gold again. He points to signals like rising long-term interest rates and global central banks’ increasing gold purchases as indicators of this impending shift.

Jaime is particularly critical of the current financial system, emphasizing the unsustainable debt levels and the continuous cycle of solving debt problems by creating more debt. He anticipates a period of stagflation leading potentially to hyperinflation, where people will rapidly exchange currency for hard assets. While acknowledging the potential of blockchain and cryptocurrencies, Carrasco maintains that gold and silver remain the most reliable forms of money.

Carrasco advises investors to focus on opportunities rather than crisis, emphasizing the potential for generational wealth creation through strategic investments in gold, silver, and mining sector equities. Ultimately, his message is clear: those who understand and position themselves ahead of these potential monetary transformations will be best prepared to preserve and grow their wealth.

Timestamps:
00:00:00 – Introduction
00:00:42 – The Silver Disconnect
00:07:16 – Gold To Silver Ratio
00:11:15 – Depression Era & Dollar
00:14:38 – Miners & Raising Capital
00:20:25 – Bessent & Shelton’s Plan
00:23:51 – Japan Selling Treasuries
00:28:40 – Illusion of Fed Control?
00:32:50 – Canada’s Gold Reserves!
00:36:30 – Fiscal Stimulus Problems
00:38:38 – Inflation & Hyperinflation
00:40:46 – Crypto & Physical Metals
00:45:34 – News & Focusing Attention
00:48:46 – Concluding Thoughts

Guest Links:
X: https://x.com/ijcarrasco
LinkedIn: https://www.linkedin.com/in/carrasco1/
Website: https://www.harbourfrontwealth.com
E-Mail: mailto:jaime@jcwealth.ca

Jaime Carrasco is Senior Portfolio Manager & Senior Investment Advisor at Harbourfront Wealth Management. From 2014-2018 he worked as Director of Wealth Management and Associate Portfolio Manager for ScotiaMcLeod. Before this, he worked for Macquarie Group, CIBC Wood Gundy, BMO Nesbitt Burns, Gordon Capital, and Merrill Lynch.

Jaime is a leading Canadian investment professional with 25 years of experience providing wealth management and investment counsel to affluent families, businesses, and institutions. He has garnered a reputation for questioning and challenging the status quo and exploring the most innovative investment strategies.

Jaime, whose mother tongue is Spanish, also speaks Italian and French. He completed a BA in political science and economics at the University of Toronto in 1988. While a student, he worked for CS Yacht, a company that built luxury sailboats, thus spending his summers as a skipper for the Canadian establishment members. Jaime credits this experience and having survived sailing through Hurricane Bob in 1991. This experience taught him lessons that have become a metaphor for his financial investment strategies.

“Like one’s financial wealth, sailing is not about controlling the wind, but rather about adjusting the sails.”