PodcastKitcoClem Chambers

After the Midterms the Fed Starts Printing and Gold Will Grind Higher, Clem Chambers Warns

The discussion links energy supply to economic and technological competitiveness, with Chambers arguing that AI expansion and U.S. onshoring will require substantial power, infrastructure, and skilled labor. He also expects AI-related investment to benefit suppliers, consultancies, and investment banks, while arguing that computing shortages could support prices. Separately, the host reports signs of strain in Europe and China, alongside rising U.S. debt and concentrated tech-led market gains. Chambers expects possible post-midterm Fed easing and money creation to support gold over the longer term, though he allows for a pullback.

GoldMonetary PolicyEnergy SecurityAI InfrastructureMarket BreadthGovernment Debt

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Key Takeaways

Chambers frames electricity as a strategic constraint on AI and national competitiveness: he says Russia has 250% more electricity than the U.S. and is building 35 nuclear power stations, while countries without adequate power risk losing the AI race. The host also cites China’s solar and wind buildout and reports that China used more than twice as much electricity as America last year; Chambers says China is expanding both green and conventional energy.

Chambers expects AI infrastructure construction to create demand beyond chipmakers, including for HVAC workers and suppliers of cables, routers, optical fiber, and server rails; the host cites a Taiwanese server-rail founder worth more than $9.5 billion as an example of gains among less-visible suppliers. He also predicts that governments and large companies will need implementation help from computing consultancies such as IBM.

Chambers argues that AI growth is constrained by both available electricity and computing capacity: the host says a UK supercomputer backed by Nvidia and others may lack enough power to operate until 2035, while Chambers says demand already exceeds computing supply. He expects the computing shortage to support prices for an extended period and says faster, real-time service could unlock more demand.

Chambers characterizes the Treasury’s possible intervention as a risky substitute for Fed action, while acknowledging that his explanation—that the Fed feared political blame—is speculation. He predicts the Fed will eventually take the helm from the Treasury and says it could cut rates sharply and print money after the midterms if conditions remain stable and below 6%; he also argues that direct cash payments feed inflation more quickly than QE, which tends to flow into equities and real estate.

Chambers expects gold to benefit from a reflationary or inflationary environment, while allowing for a possible pullback after a money-supply surge and expecting gold to grind higher—or at worst move sideways before rising—over the longer term. He ties the potential for more money creation to the AI buildout and U.S. industrial onshoring, and says the Fed’s balance sheet is back to its pre-COVID level in real terms.

GEO-POLITICS

Energy Strategy — Chambers says Russia has 250% more electricity than America and is building 35 nuclear power stations. He says the United States has turned a corner on energy, though a change in government could reverse course. Yielding to China might seem acceptable short term, he argues, but would be catastrophic over the long term.

“Russia has 250% more electricity than America. They're building, I think, 35 nuclear power stations right now. So, you know, that's the foot race.”—

Treasury Intervention — Chambers speculates that the Treasury stepped in because the Fed was reluctant to act, possibly fearing blame for supporting a president. He calls the Treasury's assumption of the Fed's role risky and suggests it may lack the Fed's depth. He presents the political rationale as a guess, not a confirmed explanation.

“The Treasury stepped in because the Fed won't do it. And I would imagine, I'm only guessing here…”—

TECHNOLOGY

Power Constraints — The host says a UK supercomputer backed by Nvidia and others may not have enough electricity to operate until 2035. Chambers argues that rebuilding America's economic pyramid onshore will require vast investment and keep workers across the buildout in demand.

“The in the UK they're going to build this supercomputer and they got the backing of Nvidia and all sorts of people to make it happen. Yeah…”—

Skilled Labor — Chambers predicts AI infrastructure expansion will increase demand for skilled blue-collar workers, including HVAC maintenance experts, over the next five years. He argues that fears of AI-driven job losses overlook opportunities for workers who build and maintain the infrastructure.

“Yeah. And anybody I mean, imagine if you right now are an HVAC expert on maintenance…”—

AI Power Needs — Chambers argues that electricity availability directly constrains AI development and that countries without adequate power risk losing the AI race. He lists solar, wind, nuclear, gas, coal, and waste burning as possible energy sources.

“If you haven't got, say, solar and windmills and nuclear and gas and coal and burning your rubbish, you're you're just going to lose to the ones that do, aren't…”—

ECONOMY

China's Economy — The host reports that China used more than twice as much electricity as America last year, closed a record 670 banks—about a quarter of the country's banks—and recorded 4.3% second-quarter growth, its slowest pace since 2022. Together, the figures offer contrasting signals on China's energy use, banking conditions, and growth.

“China used more than twice as much electricity as America last year. That's from the energy think tank Ember, but Beijing also closed a record 670 banks last year…”—

Rules And Growth — Chambers argues that expanding government can slow economic growth when officials detached from enterprise impose rules that restrict activity. He cites Europe and the UK as places where this has been a problem and says they are trying to get out of it.

“But you know the problem you have with Europe and the UK and to a lesser extent America is these ever growing governments that are detached from enterprise…”—

Europe's Energy Gap — Chambers argues that Europe has insufficient energy partly because energy was portrayed as harmful. He says efforts to reverse course are underway but will take time.

“So if you starve out energy, you starve money, right? So if you can't sell money being evil, you can sell energy being evil…”—

MARKETS

Copper Shortfall — The host cites an S&P Global projection that global copper demand will be about 50% higher by 2040. Without major new mines, the market could face an annual shortfall of roughly 10 million tons. The host also reports that copper prices had risen for 10 consecutive months.

“The S&P Global expects the world to need about 50% more copper by 2040 without major new mines as you just talked about…”—

Debt And Yields — The host reports that U.S. debt passed $40 trillion in August, roughly double its 2017 level, while the 30-year government bond yield rose above 5.6%, its highest level since 2002. The host links rising long-term rates to higher mortgage costs.

“America's debt just passed that $40 trillion mark in August. That's the Treasury number. It's roughly double what it was in 2017…”—

German Energy — The host reports that Germany shut its last nuclear plants in 2023 and that gas storage was about 59% full, the lowest for that time of year since records began in 2009.

“Germany shut its last nuclear plants in 2023…”—

FORECASTS

AI Financing — Chambers predicts that investment banks, including Goldman Sachs, could earn substantial sums by distributing money for the AI buildout, taking 5% to 7% as it passes through. He expects this business to drive a sharp rise in investment-bank share prices.

“It's Goldman Sachs because they're going to have to print so much money and then someone's going to have to hand it out and it's going to be the investment…”—

Gold And Reflation — Chambers expects gold to benefit from a reflationary, inflationary environment. He predicts money printing could trigger an inflationary or money-supply rush, followed by a possible pullback; over the longer term, he expects gold to grind higher or, at worst, move sideways before rising. He argues there is room for more money creation because the Fed's balance sheet is back to its pre-COVID level in real terms, and says the AI buildout and U.S. industrial onshoring need more money.

“Well, it's a economy hungry for cash and it's a reflationary situation is an inflationary situation…”—

AI's Power Bottleneck Is Already Here

Chambers argues that AI data centers already face power constraints, illustrated by turbine shortages and a planned UK supercomputer that cannot get sufficient electricity for years.

Why Chambers Says the AI Boom Has Just Begun

Drawing parallels with the early internet boom, Chambers says AI investment is just beginning and that bottlenecks, infrastructure demand, and tradespeople will benefit as the buildout expands.

Why America Will Print Money to Win the AI Race

Chambers expects the United States to finance its AI and industrial race through money creation, directing capital into productive infrastructure and workers rather than household spending.

Why AI Will Need Every Source of Energy

He says AI operators will pursue every available energy source, from gas and coal to nuclear, renewables, storage, and potentially space-based solar, because electricity enables computing.

China vs. America in the AI Race

Chambers sees China ahead in electricity and robotics while the United States retains advantages in space and chips; he describes AI leadership as a consequential technology race.

Propaganda and the New Information War

Chambers argues China and Russia use information campaigns to discourage Western energy and infrastructure development, warning that propaganda can distort judgment and damage investment decisions.

The "Boring" Winners Behind the AI Buildout

He identifies overlooked AI beneficiaries across the supply chain, including server hardware, cables, fiber, construction equipment, cooling, consultants, and investment banks that channel capital.

AI Is Heading Toward a Copper Crunch

Chambers expects AI infrastructure expansion to intensify demand for copper and other constrained inputs, with shortages extending from mining exploration to equipment and drilling.

Gold, Inflation and the Coming Reflation

He sees gold as a long-term store of value amid inflation and reflation, while allowing for short-term weakness tied to wartime sales and changing geopolitical conditions.

Fed vs. Treasury: Who Controls the Money?

Chambers predicts the Fed may ease and expand money supply after the midterms, arguing that the Treasury has temporarily stepped in while officials avoid election-related blame.

Economic Growth vs. Bigger Government

He argues sustained economic growth can lift real wages, but expanding government and regulation often restrain enterprise and make it harder for economies to grow.

Europe's Energy Crisis vs. America

Chambers blames Europe's energy constraints on policy choices that discouraged energy development, and contrasts its slow pivot with America's competition-focused response.

Middle East Risk and the AI Market Outlook

He expects Middle East disruption to eventually prompt practical supply responses, while warning investors about geopolitical risks and presenting AI as a major long-term growth transition.

Brazil, Argentina and When Money Votes

Discussing Brazil, Argentina, and Greece, Chambers says political change can influence markets but South American economies face deep systemic problems and a difficult path to recovery.

Is the Treasury Acting Like a Central Bank?

Chambers views Treasury support for Argentina as evidence that it is taking on some central-bank functions, while expecting the Fed eventually to resume a leading role.

Bitcoin, Wall Street and Money Printing

He says Bitcoin has been absorbed into Wall Street as a high-beta asset that can benefit early from liquidity, distinguishing asset purchases from direct cash handouts that fuel consumer-price inflation.

How Fear and Propaganda Hurt Investors

Chambers warns that fear-driven media and propaganda can harm investors' mental state and decisions, arguing that calm, constructive thinking is more conducive to investing.

Diversification, Risk and What to Do With Cash

He advocates diversified portfolios sized to an investor's risk tolerance, including gradually building holdings across many stocks rather than concentrating money or remaining paralyzed in cash.

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Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

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