Nov 25, 2025 Kitco NEWS

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.