Where's the Off-Ramp? Can This Gold Bull Market Run Forever? -

Last week, Federal Reserve Chairman Kevin Warsh talked gold and silver down during his Jackson Hole speech, playing the tough guy facing down inflation. 
But as Mike Maharrey reminds listeners in this week's Midweek Memo, Warsh & Co. still hasn't done a darn thing to tackle inflation. 
Why not?
Mike says the Fed is stuck on a highway with no off-ramp. It's traveling in a direction it doesn't really want to go because the debt black hole is dominating the economy.
In this episode, Mike explains 40 trillion reasons for the lack of action by the Warsh Fed so far, the ramifications if the Fed finally bites the bullet and raises rates, and why this puts gold and silver on an uphill highway with no off-ramp. 
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Mike opens the show by asking the audience if they've missed an exit on the interstate.
<blockquote>
"Awful feeling. Especially if you’re in the middle of nowhere. I remember missing an exit once, and I had to drive some 20 miles before I got to the next exit so I could turn around. The longer you drive, the more frustrating it gets, right? You’re being forced to go in a direction you don’t want to go because there’s no off-ramp.
"Welcome to the world of a Federal Reserve central banker.
"Man, Fed chair Kevin Warsh wants to raise interest rates. And he wants you to know he wants to raise interest rates. He’s telling you every chance he gets. That’s what the big Jackson Hole speech last Friday was all about. But you know what Warsh & Co. aren’t doing – at least not yet? Raising interest rates. "Why not? If inflation is still out of control – and it is – why would you not immediately make the moves you think necessary to get it under control?
"Probably because you’re stuck going the wrong direction down the highway with no off-ramp."
</blockquote>
Mike extends the analogy to the gold and silver markets. 
<blockquote>
"You know, gold also seems to be going down the highway with no off-ramp. And the general trajectory of the highway is up."
</blockquote>
Mike concedes it hasn't felt that way for the last few days, with the metals taking a pounding after Warsh's Jackson Hole speech and another flare-up in Iran. 
<blockquote>
"But remember, don’t listen to the noise. War news is noise. Warsh’s yip-yap is noise. What are the fundamentals? We are buried in debt, and the world is spurning the dollar. The underlying dynamics remain bullish for both gold and silver."
</blockquote>
Mike raises a question: how long can this bull ride last?
<blockquote>
How about forever? "That sounds crazy, I know. But think about it. What drives gold higher over time? Currency debasement. Do you think the government will ever quit debasing the currency? Me neither. So, there ya go."
</blockquote>
Mike highlights a recent interview with Ned Davis Research Chief Alternative Strategist John LaForge, who made a similar argument, calling for a "forever" gold bull market. 
<blockquote>
"Granted, he didn’t say 'forever,' but that’s the implication of his comments."
</blockquote>
In a nutshell, LaForge argues that gold will continue to rise until governments get their spending and debt problems under control. Mike asserts that since nobody is willing to do what it takes to “deal with the debt situation,” gold prices will ostensibly go up forever, or until the fiat system finally implodes.
<blockquote>
"On the other hand, things aren’t so "together" for the dollar. It buys less and less every day. And as I keep emphasizing – that’s the plan. They want to devalue your money by at least 10 percent every five years."
</blockquote>
Mike demonstrates this currency debasement by pointing out that a million-dollar prize on "Who Wants to Be a Millionaire" when the show first aired in 1999 now only buys $500,000 worth of stuff. 
<blockquote>
"They probably need to just go ahead and change the name of the game to “Who Wants to Win $500,000?” But that doesn’t quite have the same ring to it, does it?
"However, it reflects reality.
"Your government has ruined your money. And it continues to ruin your money as a matter of policy. Never forget: <a href="https://www.moneymetals.com/podcasts/2025/11/05/inflation-is-the-plan-004459">inflation is the plan</a>!"
</blockquote>
Mike then pivots to Warsh's "Open Mouth Operations" at Jackson Hole.
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<blockquote>
"So, as I’ve already alluded to, Federal Reserve Chairman Kevin Warsh moved markets on Friday with his Jackson Hole speech, even though the central bank has yet to do anything to move inflation. Clearly, Warsh wants to convey a message. He’s tough on inflation, and the Fed will 'deliver price stability.' It’s less clear that he will ever be able to deliver on his hawkish promise."
</blockquote>
Warsh delivered a hawkish speech that upped expectations for at least one rate hike this year. 
<blockquote>
"It’s important to note that Warsh never said the Fed will hike rates. He didn’t hint at any timeline. He just blustered about being tough on inflation. But as most bullies learn, talking tough and being tough when the punches fly are two different things."
</blockquote>
In fact, Mike doesn't think the Fed will be able to hike. How can it, with the U.S. government $40 trillion in debt, consumers buried under trillions in debt, and corporations leveraged to the hilt?
If the Fed raises rates to tackle inflation, it will almost certainly crash the debt-riddled bubble economy.
<blockquote>
"This is the <a href="https://www.moneymetals.com/news/2026/03/19/gold-the-federal-reserve-and-a-catch-22-004773">Catch-22</a> I’ve been harping on for months. The Fed simultaneously needs to raise rates to push inflation back to the target and cut rates to manage the debt black hole and keep the economy limping along. So, I don’t think the Fed will hike rates. And if it does, I think it will tip the economy into a deep recession and likely a financial crisis. Either way, you want to have gold and silver."
</blockquote>
Mike closes the show by noting that the recent sell-off presents a buying opportunity and urging listeners to call 800-800-1865 and speak with a Money Metals precious metals specialist today.
<h2>Articles Mentioned During the Show</h2>
<a href="https://www.moneymetals.com/news/2026/08/20/us-treasury-intervenes-in-bond-market-to-drive-yields-lower-005150">U.S. Treasury Intervenes in the Bond Market to Drive Yields Lower</a>
<a href="https://www.moneymetals.com/news/2026/08/04/what-is-the-pce-and-why-is-it-the-feds-favorite-inflation-gauge-005110">What Is the PCE and Why Is It the Fed's Favorite Inflation Gauge? </a>
<a href="https://www.moneymetals.com/news/2026/08/27/gold-and-silver-surge-as-the-debasement-trade-returns-005164">Gold and Silver Surge as the Debasement Trade Returns</a>
<a href="https://www.moneymetals.com/news/2026/08/22/50000-gold-billionaire-investor-thomas-kaplan-thinks-so-005157">$50,000 Gold? Investor Thomas Kaplan Thinks So</a>

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