Market Risk Is Near The Highest In History (featuring James Grant)

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Famed market analyst and historian James Grant is no fan of the current policies of the US Federal Reserve.

He recently wrote:

“Distortion in the cost of credit is the not-so-remote cause of the raging fires at which the Federal Reserve continues to train its gushing liquidity hoses. But the firemen are also the arsonists. It was the Fed’s suppression of borrowing costs, and its predictable willingness to cut short Wall Street’s occasional selling squalls, that compromised the U.S. economy’s financial integrity.”

At age 74, having lived through a number of economic booms and busts as well as having authored numerous books on the history of financial markets, Jim sees the degree of speculation, overvaluation and malinvestment in today’s markets as about as bad as it’s ever been.

He lays much of the blame at the feet of the Fed and its global central bank brethren, who collectively through their intervention have suppressed interest rates to their lowest levels in all of recorded history.

This has resulted in all sorts of unnatural distortions and deformations that are hollowing out our economy and social structure.

As Jim recently wrote:

“Needing income, investors will take imprudent risks to get it. And if 2% invites trouble, zero percent almost demands it.”

Not only do 0% interest rates act as “molasses” on growth by gumming the system up with zombie institutions and toxic malinvestment, but it imperils the social good.

Savers and investors, increasingly desperate for yield, are forced to accept worse and worse choices in attempt to stay afloat.

Under this regime, the rich benefit disproportionately at the expense of everyone else AND it creates a “hyperinflation in the cost of retirement”. This accelerating war on the 99% can not stand for much longer without serious consequences and repercussions.

We are thrilled Jim was gracious enough to come on the program this week. It was a huge honor to finally get to interview him (after years of attempt) and I can tell you firsthand, not only is he prodigiously smart, but he is ridiculously nice. A true class act.

But simply put, he’s one of the most respected market analysts and historians on the planet.

So when an expert like him warns that today’s markets are at one of the most dangerous levels of speculation in history, we all better be paying close attention.

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here:

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

Written by Peak Prosperity

Information, commentary, analysis, and an online community for discussing the convergence of global issues facing the economy, environment, and our energy needs. Site contains a daily blog, forum, Martenson Reports, newsletters, and the Crash Course video series.


  1. Apologies for the audio quality issues on this video, folks. We had several technology malfunctions when recording this. They've been since fixed and shouldn't happen again (fingers crossed)

  2. Did it ever occur to anyone that perhaps the government has access to a very advanced financial AI? They could never admit to this because it undermines any other country's economic position in the world economy. Google was the furthest along in research and there is no way that Google would have been able to keep such an AI technology privatized against the government without letting them have access to it. The social media privacy trials would be easy public misdirection to secure Government/AI cooperation in the tech sector.

  3. R.E. McMaster ( )
    was once known on Wall Street as "The Indiana Jones of Developing World Economics." (primary commodity producers)…And in the futures market, regarding McMaster, Business Week wrote: "When the guru of Whitefish talks, Chicago listens. Timing is McMaster's forte."

    My name is R.E. McMaster. Let me give you a little perspective on my work…

    During the Reagan presidency, the White House had five separate subscriptions to my newsletter.

    I have gifts in my home from two US presidents.

    I was one of only 80 men selected for the Library of Congress "think tank" on economic and military matters under Dr. William Whitson.

    In 1987, I co-developed an Economic Development Plan for the Cayman Islands. My ideas and plan helped turn their economy around by encouraging banks to provide capital to small businesses, which led to more jobs for the locals and developed a strong free market for labor from Jamaica.

    My work has been praised by governments and corporations around the world for its clarity, sound principles, and astounding accuracy. In Alberta, Canada in the mid 1980s the Agricultural Department brought me in to help agri-business owners make sense of the country's economic climate and help them develop more profitable businesses.

    When Argentina was in dire need of help in turning their country's economy around in 1988, I flew in to help top government officials develop a master plan to attract and hold foreign capital. Argentina applied it successfully for several years before deviating from the plan and slipping back to its old decadent ways.

    In 1983, the president of Guatemala, Efrain Rios-Mont, retained me exclusively to reform and revamp the country's economy into a U.S.-type constitutional republic. It was so dangerous in the country, and my work threatened so many corrupt special interests, that I was often escorted by armed guards carrying fully automatic machine guns. This earned me the nickname "The Indiana Jones of Third World Economics."

    Cuba's top Western educated officials personally invited me to Cuba to help straighten out that country's agriculture and housing dilemmas in 2001. I have a standing invitation to return whenever I want to talk business and economics.

    When I was working as a money manager and word got out that I was starting a limited series of fifty managed futures trading accounts, I raised $4.5 million dollars in five days from traders who wanted to cash in on my expertise. So many traders applied that I was only able to take one-third of the applicants.

    For three straight years I was rated by E.F. Hutton's Frank Pusateri as the nation's top futures money manager, averaging a net return of 64% a year with a zero probability of ruin. Hutton, Shearson, and Hornblower & Weeks all approved me nationally as a commodity trading advisor.

    I was voted "most valuable" and "read by the most brokers" in a nationwide survey by Futures Magazine and was elected one of Futures Magazine's All-Star Trader's Hotline Advisors.

    I regularly work with – and learn from — some of the most successful traders and investors in the world, including W.D. Gann, Larry Williams, and mentor and legendary technical systems' developer, Welles Wilder, who some believe should be awarded the Nobel Prize in Economics.

    To make money in commodities trading requires precise timing for entry and exit of positions. I come by this precise attention to detail naturally, because I was qualified as a T-38 jet instructor pilot in the U.S. Air Force – and when you are flying supersonic jets, absolute precision is a must.

    In 1999, I wrote the McGraw-Hill best-seller, The Art of The Trade, which sold out the window display three times in Chicago's largest B. Dalton bookstore.

    For nearly 20 years professional traders and brokers paid $2,400 a year for my evening Daily Market Hotline, Cycle III.

    For over 20 years I published a very successful futures trading newsletter, The Reaper. Ninety-two percent of my readers regularly renewed their subscriptions.

    And over the past 40 years many major player in the futures markets have used my services and recommended me to their friends and clients.

  4. Beautiful. Energy is undervalued and energy security globally is dodgy at best. Also commodity prices are undervalued like precious metals, copper, timber etc.

    The second market I am into is US equity S&P 500 minus Top 5-10 overvalued tech and finance. Second, small to mid-sized US businesses that are still undervalued.

    For bonds, treasuries and gov debt only ~30% allocation in provincial/state debt in NA. Easy 5%. I imagine the returns here will mostly cover taxes, fees and some inflationary cushion.

    In my late 20s and starting to take finance very seriously. I am so happy that I found your channel thats just not another bullion hawk or robinhood yolo channel.

    My only trusted advisor is my family's trust manager where I have to book 30min talks over a week in advance.

    Having access to information on this channel and another I watch on how to manage your credit has kept me engaged in personal finance, investing and economics. Keep it up!

  5. great questions adam. I've been watching you get better and better with your interviews over the past few months. Hard to compete with Chris Martenson but you are getting better and better

  6. Just my first thought when I hear the word ‘expert’: if we have so many experts, then why are we in such a big mess? Why can’t the smart competent actors drive out the bad actors and start to turn the ship around? Because it looks to me like we are steaming faster and faster toward the iceberg … there are real crimes being committed and nobody’s doing much of anything about it! Why don’t we talk about the criminals and their malfeasance like Max Keiser does? Just a thought …

  7. I often hear that real (not just CPI) inflation has been avoided or suppressed this whole time. But the same people will admit that the cost of housing, education, retirement, and raising a family (ie. life itself) have all exploded to practically unobtainable price points. I wish pundits would stop using the language that reinforces the idea that we've had 'low inflation' this whole time or that it's been contained outside of daily life when it's clearly false.

  8. “Knocking on the door of a vast bubble”? Really? This isn’t already a bubble? Are you kidding me? It’s so big that even the ‘expert’ can’t see it. Pretty words, but he ignores the world outside HIS bubble.

  9. The modern economy is built on a bad premise: that you need steady inflation to maintain the system (assuming growth). But inflation also taxes the poor by reducing the value of the currency. Long term, the system itself is mathematically unsustainable. See Al Bartlett’s presentation on exponential growth.

  10. See when stochastics rise, and adaptive relative stays flat, thats a MANipulated permabull. The MANipulated riggers will pull the cork on the market when they see fit…no sooner…no later.

  11. The federal reserve wants to own everything. They want the unrest on the streets. It serves their interests perfectly. Andrew Jackson was right. Central banking is the enemy of the people.

  12. No need for lengthy commentary – Let me keep it short, IT'S ALL RIGGED! It's been a one sided bull market for over 10 years, don't make the simple, rigged, one sided bull market more complex then it needs to be. It's run by crooks and thugs, it's fixed, and they have been rigging it to the upside for decades now.. They have gubment floor traders installed on the CBOE – any questions ??

  13. The Fed is doing to the monetary system what the reactor operators of Chernobyl did to reactor #4: too much intervention leading to exponential catastrophic failure.

  14. Hi Adam, I like watching your videos talking about the stock market. However I have watched a few about the bond markets. This guy seems to think that far from pumping money into the system central banks are actually taking money out of the system causing deflation. Thought that you might be interested.

  15. I cannot get it out of my head that Adam has a black flying V hanging on the wall behind him, and that he is fact a secret shred-lord about to unleash a thrash album for christmas 2020 on High Folks records

  16. Just discovered Peak Prosperity yesterday, and ‘scuse the language but HOLY CRAP! For those who don’t know financial markets, James Grant is a legend! In fact Jim Rogers once advised that Grant’s Interest Rate Observer was one of 5 periodicals that investors must read (up there w/ The Economist and Barron’s). This definitely cements me as a long-term subscriber. Thx so much for having him on…I haven’t even started the video yet and felt driven to comment.