3 Minute Gold News – Jim Rickards – May 3, 2016

3 Minute Gold News

A Quick Read for Busy People

A synopsis of an interview with Jim Rickards, New York Times bestselling author of The Death of Money, Currency Wars, and the newly released bestseller The New Case for Gold by Pauline Chiou at CNBC.

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

by: Elaine Diane Taylor

 

Topics:

Gold
U.S. Dollar
Currency Wars

 

Rickards - Brisbane

Jim Rickards

Interview Link

 

GOLD

Think of gold as a form of money.

As money it competes with other kinds of money — the dollar, euro, yen etc.. They’re all like horses going around a race track.

Gold is starting to go up but will go a lot higher.

People think of gold as being up or down, but instead think of gold as being the constant with the U.S. dollar going up and down.

So, the dollar price of gold is going up right now but that just means the U.S. dollar is becoming weaker.

If you want to understand where the price of gold is going then just ask yourself where you think the price of the dollar is going.

As a result of the Shanghai Accord reached on February 26th, the U.S. dollar has seen its highs and will now go a lot lower, which means the dollar price of gold will be going up.

This bull market in gold is just beginning as we see the efforts of the G4 — U.S., China, Japan and Europe — take down the dollar.

U.S. DOLLAR

The currency wars started back in 2010.

The U.S., China, Japan and Europe would each like to have a weaker currency to make their export prices lower, but it’s impossible for them to all be weak at the same time.

They have to take turns.

August 2011 was the all time low for the dollar and at the same time it was also the all time high for gold. That’s no surprise. Since then it has reversed to highs for the dollar and lows for gold.

From 2011 to 2015 we’ve had a strong dollar against the other currencies, but now the U.S. is close to a recession and needs a break.

At the same time China’s growth has slowed down dramatically and dangerously.

China and the U.S. are the two largest economies in the world and they both now need weaker currencies. That means Japan and Europe will have to suffer the stronger currencies.

The finesse is to keep the dollar/yuan crossrate unchanged.

Some say that China didn’t devalue, but they devalued a lot. They devalued against the euro and the yen, which together are a larger trading partner for China than the U.S. is.

Everyone manipulates their currency — it’s just a matter of whose turn it is.

At the IMF Spring meeting about two weeks ago, Christine Lagarde said to Japan not to dare weaken the yen.

Now the U.S. Treasury is saying the same thing to Japan.

Jim sees the yen going to maybe 100 to the dollar, with probably the euro going to 120 to the dollar.

Japan and Europe have to get stronger currencies so that China and the U.S. can have weaker currencies.

Japan would like a weaker yen, of course, but they just had three years of a weak yen and they didn’t make the structural changes they needed to make.

 

The New Case for Gold is available at Amazon.

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

 

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The deserts of Nevada are beautiful and there’s time alone to research and write.

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Australia just devalued their currency to fight in the currency wars. Puerto Rico is reeling with it’s debt burden, and gold hit $1,300 U.S.

Let’s take a look at gold over a month over and a year. It’s creeped up over the past month, which makes sense if it’s being manipulated as has been shown clearly now on many fronts. If you follow the daily goings on you’ll see this week it jumped $26 one day, then slammed down. A controled burn is the prefered method of change. Those in control don’t want to lose it and don’t want opposing thoughts to join together and form a bigger opposing block due to a shock. All is peachy. Bread and circuses will continue so as to keep as many eyes off the problems as possible. Does anyone else see a bit of the gladiator games in Game of Thrones? Maybe it’s just me. At least a government will promise bread & circuses until those in the game of Coins & Crowns are able to get themselves out of the way before winter comes.

I tend to look at the micro and macro when I’m connecting dots. Kind of a Marshall McLuhan thing combined with a Hermetica “as above so below” thing, mixed with past experiences of what people with power do. I guess that makes it an Elaine Diane thing.

See the bankers wave the Wall Street wands.

Thanks for coming by,

 

Elaine Diane~

 

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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
Single available on iTunes

The Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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AlbumCover.PreparingfortheFall

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

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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.

When a nation leaves the gold standard and sound money, and borrows to go to war, then hunger goes up, hope goes down, anger goes up, then it all goes down.


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

The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.

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

See the bankers wave their Wall Street wands and conjure piles of paper green. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.

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

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