3 Minute Gold News – Jim Rickards – Gold – May 4, 2017

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 New Case for Gold, The Death of Money, Currency Wars and The Road to Ruin, by Bloomberg TV.

Jim is the editor of Strategic Intelligence, 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:

Interest Rates
Gold
US Dollar

 

 

 

Jim Rickards

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Interview Links   Part 1   Part 2

 

INTEREST RATES

The Fed is raising into weakness for the first time since 1937.

This is highly unusual. Usually the Fed follows the economy – if the economy gets stronger then they raise interest rates and if it gets weaker then they cut rates.

This is the first time in 80 years.

They’re not doing it because of the business cycle. They’re doing it because they have to play catch up for the fact that Ben Bernanke should have raised rates in 2010 or 2011.

The Fed isn’t worried about jobs. They would still raise rates even if jobs were below 75,000 per month, you had mild disinflation and the economy hit the breaks.

Even then they would raise rates which means they’re raising into weakness.

It will probably cause a recession by the summer.

GOLD

Gold is in an interesting pattern of higher highs and higher lows. It’s volatile and the last few days it’s been going down.

But it’s still well above the last low which was in March, and the most recent high was well above last high.

Gold should be at $1,300 US by mid-year.

The reason is that the Fed is going to raise now, but the US is going to hit a recession by summer and then they’ll have to reverse themselves and not raise again.

That will be bullish for gold in late summer and through the rest of 2017.

US DOLLAR

If the Fed stays on the tightening path until June, which they are, it tends to make the US dollar stronger.

The Bank for International Settlements estimates there is over $9 trillion US denominated corporate debt in emerging markets. That’s not sovereign debt, which the IMF can bail out, that’s corporate debt.

It makes the debt harder to pay when they earn in local currencies and try to pay off debt denominated in US dollars.

 

 

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

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My thoughts…

I’ve just driven across a good swath of Canada from Winnipeg to Vancouver. I took a brief stop in Drumheller, Alberta to see some dinosaur bones, a fossil or three, and catch a lecture on ancient humans.

I got the feeling that it’s good to step away from a daily dose of doom, and the feeling that so many things are coming to a tipping point around the world. Played a few private music sessions and met many good musicians.

Even inside a large cycle that is dipping down there are private cycles that are coming into their summer season. Maybe in your specific life you’ve come out of something hard and are now easing into a happy and steady period, just as the world is diving into the drums of war and economic turmoil.

It’s good to be aware of the world and universe around us, but at the same time remember to create joy and exploration inside your own life. Find some hope and expansion inside the circles of your family, your friends and associates.

There are new songs to learn, there’s new food to make, new wildernesses to explore and ideas for things that help us feel our highest, most expansive selves.

Yes, it’s good to prepare for an economic and geopolitical winter. And it’s good to share those ideas and preparation resources. It’s good to listen to the gurus, but important to think for ourselves and not put people on a pedestal. Have a bit of physical gold and silver in case governments go bonkers, which they do periodically. But once you’re done your day’s work then it’s time to mentally close the door and slow it on down.

All is well in this circle of mine. I’m putting care and thought into making it well and building things that will come into their own summer seasons one after another. This helps when some parts of life are in winter’s pain.

Remember that seasons spin and we’ve all been spun a time or two. Spring will come.

The prairies of Manitoba, Saskatchewan and Alberta are flat to the horizon and the sky goes on forever. But when I pulled over in the middle of nowhere, without another vehicle or a town in site, and turned off the motor, that’s when I saw the life.

When I slowed down.

Life was everywhere. So many birds singing and hopping around on the ground, hidden in the grasses. So much oxygen and life in the breeze.

It’s hard not to feel like this earth has been here a long time and knows what it’s doing.

All is well.

Elaine Diane Taylor~

May 4, 2017

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Gold is $1,228.40 U.S. per ounce today.

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Not Much of a Holiday (Greek Debt and Media Persuasion)

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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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.

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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

 

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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