3 Minute Gold News – Jim Rickards – ABC Bullion – Nov. 13, 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 Jordan Eliseo of ABC Bullion.

Jim is the Editor of Strategic Intelligence, Chief Global Strategist for Meraglim Inc., 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
Stock Market
Gold Competition
Catalonia
China
North Korea & Gold Next Year

Jim Rickards

 

GOLD

Gold is up about 10% this year but it’s been really volatile.

But even though the price keeps rising and falling the pattern has been that the highs are higher and the lows are also higher. So overall it’s up 10% in 2017.

Gold should get stronger by the end of 2017 because:

1. Russia and China have been buying and continue to buy it. They’ve both tripled their gold reserves in the last ten years.

2. There are political threats such as North Korea

3.  The supply of gold bullion is really tight. There is less available and more parties wanting to buy what’s available.

 

STOCK MARKET

The U.S. stock market almost looks like a bubble. But so what? Bubbles go on longer than we think they will.

Just because it has bubble dynamics doesn’t mean it can’t go a lot higher, and it very well may.

 

GOLD COMPETITION

The real competition for gold is fixed income.

People look at gold and they look at treasury notes.

There are three things that are headwinds for gold and make people prefer treasuries:

1. Higher Real Rates – Take the nominal interest rates and subtract inflation, and that’s the real interest rate. If that gets higher then it makes the cost of owning gold higher.
2. Exchange Rates if you’re a global investor.
3. Central Bank Policy.

Right now, interest rates have been going up, and real rates have also been going up because inflation has been going down.

That’s a headwind for gold.

Jim expects this to reverse very soon. On December 13th the Fed has a meeting where they set the interest rate, and the market expects an interest rate increase. Jim thinks the Fed won’t increase the interest rate and instead will keep it the same.

If the market expects an increase and doesn’t get it then yields could go down, bonds could go down, and gold and the euro could go up.

 

CATALONIA

When Catalonia declared independence from Spain the first problem they ran into was money.

They can’t use the euro. The European Union is not inviting them in and they’re not getting diplomatic recognition from any major country. They could print up some Catalonian money but it won’t be good for international trade. Who would take it?

They have no gold.

If that provisional government had acquired gold they may have had a chance of making a gold-backed currency with a little better chance of success.

There are secession movements across Europe, such as Scotland wanting to leave the UK, Belgium wanting to separate into two separate countries, and Northern Italy wanting to separate.

If Catalonia separates then the other movements will come to life as well. Europe won’t let that happen.

 

CHINA

China has some serious financial problems and looks extremely unstable. If they have construction projects that end up sitting empty then they have no revenue to finance the debt. Plus they’ve lost $1 trillion of their $4 trillion reserves.

Xi Jinping was just given a second 5-Year Term so how will he address the debt problems?

He will either address the problems and slow down the economy a lot. Or else he won’t address them, which Jim thinks is more likely, and that may delay the financial problems by two years, but things might get out of control and you may have a financial crisis in China.

 

NORTH KOREA & GOLD NEXT YEAR

Gold should finish higher at the end of 2017 for the reasons stated above.

The case for buying gold in 2018 is even stronger.

Sad to say, there’s a 70% chance that the U.S. will start a preventive war with North Korea before the end of March.

Jim has that date from the Director of the CIA, Mike Pompeo, who Jim met with last week.

The Director’s words were, “It would be imprudent to assume that North Korea will not have the nuclear capability within 5 months.” So he was saying that the U.S. doesn’t know exactly what North Korea has today, but they’re quite sure they will be able to attack the U.S. within 5 months.

President Trump, General McMaster the National Security Advisor, and General Madison the Secretary of Defence, and others have made it clear that North Korea will not be allowed to have this capability.

If the head of the CIA is telling Jim that North Korea will have it in 5 months, and the Generals are saying they can’t have it, then the war will begin within 5 months.

It’s not anything anybody wants to see.

But it’s an existential threat to the United States.

With that in mind, it’s clear that gold will rally because it’s a safe haven.

They’ll probably shut the Korean Stock Exchange and perhaps shut the Tokyo Stock Exchange. Emerging markets will suffer badly.

All the capital in the world will pull out of whatever market it’s in, and go to the United States and bid up treasury notes and gold.

The stock market might go up.

There will be a flight to quality and the U.S. dollar will go up.

So Jim believes gold will go up a lot higher in 2018 for very sad reasons.

 

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

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British Columbia, Canada Parliament Building

My thoughts…

Screen Shot 2017-11-13 at 4.18.38 PM

Gold is back above $1,277 U.S. and Bitcoin is at $6,520 making a run to $7,500 then taking a nose dive to $5,500 and back up again.  Be good with where you’re at. Security and risk. Gold is a hedge against governments freaking out and creating chaos. Bitcoin is a disrupter, and it’s feeling out how digital technology is going to pan out with money.

Society is developing from a mechanical left-to-right linear assembly line of digits, letters and production lines, into a field of light, communication and energy that happens all at once. Insight happens like alchemy; changing from one thing to another. All forms of communication and power are going through change, and money is no different. It’s a normal swing that’s happened before with civilizations. We used to read symbolically with hieroglyphs, meaning happens all at once, and we moved to a roadway of phonetic sounds to make meaning. We’re swinging back with the new technology. All good.

Sun Tzu’s Art of War teaches that all warfare is based on deception. So don’t be surprised if governments say one thing regarding North Korea or any other stress, and then do another.

Art of War 03.03 say the best strategy is to attack the enemy’s plans, next is to attack alliances, next is to attack the army, and the worst is to attack a walled city.

It also says that if you don’t wish to fight and you’re not defended well then throw something odd and unaccountable in their way. Interesting, eh? See anything odd and unaccountable out there?

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I’m in Victoria, British Columbia for another few days. I dipped my feet in the Pacific, drove across Canada and stood with my bare toes in the stormy Atlantic, and now I’m back on the far west coast on Vancouver Island. Another few days and I’ll be going back to Ottawa for a bit. I have a better feel for this country now, and its different types of people with their unique needs and culture. One country with different parts inside. Isn’t that the same with other nations? Cultures inside a main closed system. It’s when that whole is not working well that the pieces want to break off and go it alone.

British Columbia was founded with gold mining as a backbone of industry. The artwork in the Parliament Buildings here in Victoria show gold panning from its beginnings.

I’m working with independent miners along the B.C. Gold Rush Trail and creating a line of jewelry, so one can wear beautiful, natural raw gold inside modern, sleek glass.

It’s a symbol of value, strength, security, nature. It’s eternal value inside a modern casing. Like me and you. A symbol of being true and valuable inside whatever it is you’ve got going on around you.

Gold isn’t all about money. It has so many virtues in health and technology. It’s in our collective cultures to value it. To highly prize it.

I love working with gold, as we all love creating and learning about different things. Be happy with what means alot to you. Be well with your place in your society and in this world.

So many out there in the media and elsewhere are feeling stress and being unpleasant. Remember everything isn’t a fight. There’s a time to consolidate and nurture, and a time to expand. If you just try to endlessly gain ground then you’ll run out of steam and fall apart from within. Like Rome, for example. There’s a time to fight to defend your place and a time to learn and grow. If you’re being attacked remember to listen to yourself. Trust yourself and slow down.

I watch it through the gold market, through gold in medical research, as well as through alternative physics . I write about it in folk music and show it symbolically through art.

We are changing as a civilization – analog to digital. Power struggles happen through that change, and people fight to gain ground in the chaos. Some make the chaos for that purpose. Listen to those with power who signal to each other how to defend what they have. Every fight isn’t your fight. But the change is yours and mine and all of ours on this planet. And those off.  But we don’t have to be overwhelmed with other people’s angst. We can back off and stick to our knitting. If we’re prepared and curious and connected we’ll be fine. You will be fine. Listen to yourself and slow down when the media is in angst and fighting for their owners.

When governments go crazy it’s good to have some physical gold. Gold has historically held value while the rest of the world, and everything in it, is remaking true North.

Money can all disappear but culture does not.

Make yourself some memories.

Wake up in the morning and know who you are. :)

Elaine Diane Taylor~

November 13, 2017

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Elaine Diane Taylor Pendant 18Kchain - 5

Raw_Gold_Bullion_Pendant

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A Terrible Breeze    (North Korea and Nuclear War)

The news comes down
A little bluebird sings
Words of war
Of fire and furious things
Of testing might
‘Til no patience knows
If keeping still
Still keeps you safe at home

It’s a terrible breeze
They speak of today
Of threats that used to live a world away
We all know wind
Can blow both ways
And a terrible breeze can blow it all away

A worldwide net
Sees our village grow
Until we all forget
What each one used to know
How a blind bird’s wings
Can reach the shore
And turn that wheel of peace and war

Village fools sinking down, down, down
Debt and gold wound in numbered shrouds
Deal of a life it’s bread and clowns
Can we afford another go around?
The news comes down.

It’s a terrible breeze. The news comes down.

words and music Elaine Diane Taylor
©2017 Elaine Art & Media SOCAN/ASCAP

 

Single available on iTunes

 

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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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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.

 

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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