The Jacob Shapiro Podcast Leverage on Leverage on Leverage
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Oct 10, 2025 Rob Larrity, a market commentator with expertise in macroeconomics and precious metals, dives into the current financial landscape. He discusses why gold prices are soaring, driven by central bank buying and cautionary ETF flows. Rob also explores the volatility in private equity, warning of liquidity crises and desperate fundraising. The conversation covers the speculative bubble in data centers, AI infrastructure's overcapacity, and rising coffee prices due to tariffs and weather issues, providing a comprehensive overview of today's economic uncertainties.
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Gold Follows Money Supply, Not Exponential Hype
- US money printing and reserve allocation both underpin higher gold demand over time.
- But long-term gold gains will track money supply growth plus a risk premium, not runaway exponential returns.
Gold Pegs Aren't Practical For Big Economies
- Large countries can't practically return to gold pegs because there isn't enough metal and it would constrain policy.
- Smaller states or niche jurisdictions might experiment, but major economies will stay flexible.
Plan Now For Private Equity Liquidity Stress
- If you own private equity, prepare for prolonged liquidity stress and plan exits proactively.
- Build cash buffers and focus on making existing portfolio companies self-sustaining rather than chasing new illiquid bets.
