3 Min. Gold News – Jim Rickards – Greece – China – July 10, 2015

3 Minute Gold News

A Quick Read for Busy People

A synopsis of an interview with Jim RickardsNew York Times bestselling author of The Death of Money and Currency Wars, by Deirdre Bolton from FOX Business.

Jim is the Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the US Intelligence community and the US Department of Defense.

Topics:

 

Greek Deal
US Interest Rates
China’s Stock Market

 

Rickards - Brisbane

Jim Rickards

Interview link

 

GREEK DEAL

Jim has been saying for five years that there will not be a Grexit. Greece will not leave the euro.

This deal is very significant and there will be a vote in the Greek parliament to ratify it. This is what the Germans wanted to see. They said, “Don’t just give us a plan, but take some concrete action to back it up.”

There will be a European Summit over the weekend and in all likelihood it will be resolved, at least for the time being, by Monday, and banks will reopen. It never really goes away, maybe it’s a year and we face this again, but this is a very big deal.

This is hardship for the Greek people. This is very serious but they’re working their way through it.

Despite the animosity, the hardship on both sides would be so great if it fails that that’s what is forcing both sides to come together and do a deal. Germany doesn’t want Greece to leave and the Greek people don’t want to leave.

They voted “no” in the referendum but 70% of the Greeks don’t want to leave the euro.

They can take a 10% haircut on their pension fund and stay in the euro, or they could go back to the drachma and take a 90% haircut.

It would be not just mayhem but inflation, and the Greek people understand this.

They remember the drachma. The inflation wipes out the pensions, the savings and the insurance, and the Greek people understand that and that’s why they favour the euro.

This is going to stick together despite the hardships.

US INTEREST RATES

This deal in Greece will be seen as a positive, but given the fragility in the world, including the issues in Greece and what’s going on in China, it’s very difficult to see how the Fed will raise interest rates in September. Jim’s been saying this all along — they’re not going to raise rates this year.

CHINA’S STOCK MARKET

Jim has said all along he wouldn’t put a nickel in China.

The only way to play China is to buy shares in a company that’s as big as China — like IBM. China can’t really push IBM around because one needs the other as much as the other needs them. You can indirectly play China that way.

One of the most popular forms of entertainment in China is called Beijing Opera. It’s not at all like western opera, it’s more like a circus. You have acrobats, smoke and mirrors, and all kinds of tricks.

They’ve turned China’s market into Beijing Opera.

Their market’s not ‘up’. It’s not even a market anymore. 46% of the stock is not trading anymore. The exchange is open but the stocks are not trading.

Institutional investors cannot sell and short selling is banned.

Government has intervened.

There’s no market left. All that’s left is a facade.

If it’s up a little bit then it’s a good opportunity to get out.

For US investors, look in your 401Ks and see if you’re invested in an emerging markets fund. Look inside and see if there’s Chinese stocks. A lot of people own these things and don’t even know.

Just because the government is willing to intervene is not a reason to invest because they will fail eventually.

They can prop it up — the Fed has been propping up the US market since 2007 — but it’s not sustainable.

They can prop it up for a long time, but at the end of the day markets haven’t cleared and we don’t know what things are really worth.

There are good investments out there. Some of the best are in private equity, venture and angel investing, a lot of the alternative investments.

The public markets are all manipulated so why would you be in them?

Jim Rickards can be found on Twitter and at James Rickards Project.

 

 

 

……………………………………….

11021557_10152833698045893_3823811563098842481_o

 

I’m living along the Canadian Cariboo Gold Trail for the summer.

Last week was so hot that my little black bear cub came into the lake to cool off. I stood in the water a ways away to get some shots.

There’s a tiny two-car train that takes you down the line into a bigger town to get groceries. It’s an hour’s ride through the wilderness with bears, mountain goats and gorgeousness.

The smoke from many B.C. forest fires has filled my valley with a brown haze, so I’ve spent most days this  week songwriting inside my tiny house.

Met with a gold miner in the bigger town who is sourcing local placer gold flakes and dust for art I’m making. I have my first supply — creating pendants of glass and gold as wearable symbols of our times.

The New York Stock Exchange went down this week. Currency wars and cyber wars are worth watching. Hold some cash and hold a little gold or silver — hard to know who to trust when digital is rocking. Propaganda is a given at these times. Currency and gold in your hand is out of that game. A bank holiday or hack is not much of a holiday. Bitcoin is gaining ground and spreading. LENR is fine tuning behind the scenes.

Be well. Watch which way the wind is blowing. It’s not just the wildfire smoke coming our way.

 

 

Anderson Lake

 

 

 

 

baby bear
 

 

 

 

 

 

AndersonLake smoke ducks

 

 

 

 

 

 

Train Station Seton

 

 

 

 

 

 

Train 2

 

 

 

 

 

 

Seton smoke

 

 

 

 

 

 

AndersonLake.smoke

 

 

 

 

 

 

Train Bear

 

 

 

 

 

 

 

 

“Around the corner stand in line
for a chance at a euro – bread and wine
Not much of a holiday, I know
Vote no for a harder line
In the zone for a better future’s fine
but heads or tails you lose this time this time
But what do I know?”

– Elaine Diane Taylor

tofino_elaine_dress

 

……………………………………….

AlbumCover.PreparingfortheFall

 

Preparing for the Fall is available on iTunes — featuring Wag the Dog, Black Swan Dive,  American Pie and Gods of the Copybook Headings.

 

……………………………………….

 

Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

Single featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.

 


The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
©2014 Intelligentsia Media Inc.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

 

 

Another Week on Wall Street
words and music Elaine Diane Taylor
© 2013 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

 

……………………………………….

Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.

 

Please feel free to leave a comment. Email addresses are not publicly shown.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s