Energy Is About to Become the Most Valuable Asset on Earth w/ Clem Chambers

**Clem Chambers** (0:00)
If you want to invest, invest alongside people in the public sector, because that's the elite, okay?
And the elite, they won't blow themselves up. They might send you to get blown up, but they won't wreck themselves. They'll be the last people to be wrecked. So work out where their money is, work out what they care about, and then you can extrapolate everything out from that.

**John Gillan** (0:23)
The market is pulling back in response to the conflict in Iran, reigniting what do investors need to know to stay ahead of this market? Where are the opportunities? Where are the pitfalls? Hello and welcome to Milk Road Macro, the podcast that knows that Spirit Airlines may be gone, but its spirit will haunt all of us for years to come. I'm your host, John Gillan. Today is Monday, May 4th. May the 4th be with you. And today we are joined by Clem Chambers. Clem is a British entrepreneur, journalist, and financial commentator, best known as the founder of A New FN. He is a prolific author and is highly sought after analyst giving commentary on networks such as CNBC, BBC, Fox News, a lot of other places. Clem is going to share a ton of alpha and wisdom with us today. So if that sounds good to you, make sure you like and subscribe, share this episode with somebody who's going to enjoy it. Today's episode is brought to you by Nexo, earn interest, borrow and trade crypto. And without further ado, welcome back to Milk Road Macro, Clem Chambers. How are you, sir?

**Clem Chambers** (1:14)
What an introduction. Prolific.

**John Gillan** (1:16)
Well, I think you have been a prolific author and commentator in a lot of areas. Clem, I think the thing getting everyone's attention this morning is the thing that's been getting everyone's attention for the last couple of months, which is this conflict in Iran.
Oil prices are spiking, markets are dipping, the conflict has, the ceasefire is over, conflict has kicked up again. What's your outlook based on this change in the markets here?

**Clem Chambers** (1:36)
Okay. The fundamental thing is, as a human with one brain, I can say I have no idea what's going on. But the market is a market with a million brains. And on average, they're pretty good at working out what is going on. One of the reasons for it is you imagine that you're some, I don't know, some pilot flying over with your groundhogs, shooting up Iranian boats. You know what's going on. And you call your wife, if you're allowed to, or the equivalent, and you say, it's all going well here or it's all going badly here. Meanwhile, there's all those Iranians running around going, oh, we're going to have to leave soon or buy Bitcoin. So if you want to know what's going on, look at the market. Yeah. And by now, unless something comes from planet Zog, which can happen in this modern world, it's all in the price.
Okay. So what you see is what you get. The only thing that can change this picture is something that is unpredictable by a long way can happen. Yeah. So what you're seeing is you've got Iran slowly but surely losing its grip. And you can judge that, I believe, by looking at Bitcoin, because they make a lot of it, have been making a lot of it. And obviously, if you're going to go running off to Pakistan with $10 million, you're not going to do it by packing it in the back of your lorry. Oh, you're going to go into Bitcoin, and then you're going to run for the border. So bad news for Iran means Bitcoin going up.
Okay. Oil going up means bad news for everybody. Yeah. And you're seeing a mixture of that. Because very, very, very soon, the Iranian oil industry is going to be broken. Because what happens is you've got your pumps, pump, pump, pump, and it goes down pipelines, glug, glug, glug. And then it goes into tanks.
And then if you don't empty those tanks, you have to switch off the pipeline, and you have to switch off the wells. And oil industry don't like that. I mean, the kit doesn't like it, the equipment doesn't like it. And it breaks. They have to shut it down and unshutting it down. It's not like turning a bathtub on and off. It can take months, even potentially more than a year to rehabilitate an oil industry when it's all been shut down.
So I don't know when it's meant to be, oh no! But it's pretty soon, it's days away, that all their tanks are full. And once their tanks are full, count to 10, and it will start backing up. They'll have to start switching stuff off right back up to the oil wells. And then it's all gummed up. Whole works is gummed up. So you ran as an oil producer, basically is broken very shortly. And that's what America, stroke Trump is trying to do, is trying to break the economic engine of Iran with this blockade. Because then when they're all gone, what have they got? You know, they've got a bunch of, you know, it's a hard world for them. And that strategy is pretty clever in as much as, you see, people, I don't think, realize just how dangerous Iran is.