Fed Nightmare Setup: Oil Up, Jobs Weak, Credit Cracking | Larry McDonald

The International Energy Agency (IEA) has officially identified this as the largest supply disruption in the history of the global oil market. As the Federal Reserve begins its two-day policy meeting today, it faces a "nightmare setup": energy prices are soaring just as the U.S. labor market begins to soften.In this interview, Larry McDonald, founder of The Bear Traps Report and author of How to Listen to Market Speak, reveals why this isn't just a macro scare—it is the "exhaustion of the paper-credit system itself". From the 70% collapse of subprime lenders like Goeasy to Morgan Stanley’s 8% default warning for private credit, the "truth bleed" has begun.In this episode, we break down:-The "Grocery Bill" Shock: Why the 8-million-barrel drop and the spike in urea fertilizer (up 28%) are hitting the real economy during planting season.-The Fed’s Dual-Mandate Trap: Why Powell is caught between an energy-driven inflation spike and a 2008-style credit crisis.-The AI Credit Disruption: How the "CapEx lunacy" in Silicon Valley is triggering a wave of defaults in software-heavy portfolios.-The Hard-Asset Manual: Larry's tactical picks in Uranium, Coal, and Volatility, and why gold miners could face a 30% drawdown before the real rally.Follow Jeremy Szafron on X: @JeremySzafron (https://twitter.com/JeremySzafron) Follow Kitco News on X: @KitcoNewsNOW (https://twitter.com/kitconewsnow) Follow Larry McDonald on Twitter: @Convertbond (https://twitter.com/Convertbond)Video Timestamps00:00 Energy Shock Opens 01:22 Fertilizer & Food Inflation 03:19 Gold Miners Cost Squeeze 06:17 Refining Bottlenecks 08:45 Housing & Rates Pressure 10:17 Private Credit Inferno 11:42 Fed & Financial Repression 14:16 Hard Assets Power Plays 17:29 AI Disruption & Credit Contagion 26:07 Rotation Into Energy 30:32 How to Trade Drawdowns 32:08 Midterms & Volatility Hedge 35:29 Closing Takeaways Visit Kitco.com for live gold, silver, and crypto prices, the latest mining news, and macroeconomic insights.#gold  #LarryMcDonald #OilShock #FedMeeting #PrivateCredit #Uranium #KitcoNews #Inflation #Nvidia #Copper #EnergyCrisis__________________________________________________________________FOLLOW US:  X: https://x.com/kitconewsnow  Instagram: https://www.instagram.com/kitconews  Facebook: https://www.facebook.com/KitcoNews  LinkedIn: https://www.linkedin.com/company/kitconewsLearn more about Kitco News: https://www.kitco.com/news/about/ For more information on advertising, sponsorship and marketing promotions – please visit our online media kit at: https://www.kitco.com/advertising  Disclaimer:  The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.Disclaimer:  The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.