In this interview, Economist Peter St. Onge joins Kitco News Anchor Jeremy Szafron to break down a developing liquidity shock at the Federal Reserve and a constitutional standoff in Washington.
With Treasury Secretary nominee Scott Bessent explicitly targeting the Fed’s "Ample Reserves" regime – calling it "fraying" and in need of "simplification" – St. Onge argues we are witnessing the end of the post-2008 banking subsidy. He explains why the Fed is ending Quantitative Tightening (QT) on December 1st, why this pivot signals a desperate attempt to prevent a banking crisis, and why the "Everything Bubble" is about to reignite.
The discussion also covers the breaking fiscal conflict: The Office of Personnel Management (OPM) claims the Department of Government Efficiency (DOGE) "doesn’t exist," while Elon Musk confirms the commission has already terminated 78 federal contracts, saving taxpayers $335 million. St. Onge analyzes whether this bureaucratic resistance confirms "Fiscal Dominance," forcing the Fed to monetize a permanent $2 trillion deficit.
Finally, St. Onge provides his investment playbook for 2026, explaining why he "never holds cash," why he believes the AI "melt-up" has further to run despite hardware fractures between Meta and Nvidia, and why Gold and Bitcoin remain the ultimate lifeboats against a crumbling fiat system.
Recorded November 25 2025
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00:00 – Market Alert: Oil Crash, Confidence Miss & Liquidity Shock
01:22 – Peter St. Onge on the Systemic Break
02:37 – The Pivot: Fed Ends Quantitative Tightening (QT) Dec 1
03:33 – Why Markets Are Betting on a Government Shutdown
09:34 – The "Everything Bubble": AI Valuation Reality Check
19:37 – Dot-Com Déjà Vu: Are We in 1996 or 2001?
22:02 – The Vendor Financing Trap & Fiber Optic Parallels
22:41 – AI Growth Speed vs. Moore’s Law
23:25 – "It’s Almost Free": The Deflationary Power of AI
25:02 – The Energy Wall: AI Power Consumption vs. The Grid
25:49 – Elon’s Solution: Modular Nukes & Space-Based Data Centers
27:37 – The Geopolitics of Compute: US vs. China
29:12 – Political Fallout: Can the Deficit Be Fixed?
39:16 – "I Never Hold Cash": Gold, Bitcoin & 2026 Outlook
#KitcoNews #Gold #Bitcoin #Fed #Liquidity #PeterStOnge #Recession #AI #Economy #DOGE
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