3 Minute Gold News
A Quick Read for Busy People
Interview synopsis of Josh Crumb, Co-founder and Chief Strategy Officer at GoldMoney and former metals and mining analyst at Goldman Sachs, with Catherine Murray from Business News Network.
by: Elaine Diane Taylor
Topics:
Safety of Bitcoin & Cryptocurrencies
Bitcoin
Market Tanking & Inflation
Gold Market Tanking and Inflation
History of MoneyGold
Josh Crumb
SAFETY OF BITCOIN & CRYPTOCURRENCIES
There are billions of dollars in cryptocurrencies held in accounts where there are no public financials, no audits, and no insurance.
GoldMoney entered the market because they saw a need for professional market infrastructure.
It’s one thing to own bitcoin on your own – held on a USB drive with your own private key that you remember on your own – but professional market infrastructure needs third-parties that are trusted.
Right now cryptos are just principle money.
“Other people’s money” isn’t in the digital asset space yet because it needs this kind of market infrastructure.
RISK
We all learned the term “counter-party risk” in 2007 and 2008, but now people have forgotten it.
If you can’t see the firm you’re dealing with, and you can’t see their financials and know that they have a clean balance sheet, then it’s not really a safe place to keep your assets.
There needs to be more transparency and more checks and balances when institutional money – “other people’s money” – is involved.
GoldMoney is publicly traded so people can know the firm, see their financials, see that their system is sound and that client money is safe. They aren’t a regulated bank so they don’t have the fractional reserve risk that banks have.
BITCOIN
Josh says bitcoin is a commodity and not a currency.
With a currency it’s not just a matter of being able to buy something with it, it’s issues like being able to measure a wage that matter.
Would anyone work for a month, a year, or even an hour on a wage that wildly goes up and down in value?
Bitcoin is a commodity because it has utility and it has scarcity.
Those things give it value as a commodity.
It’s just not a currency.
MARKET TANKING & INFLATION
A lot of central banks and economists are focused on wage inflation.
But inflation expectations from a market perspective follow things like oil far more than wages and the labour market.
The Federal Reserve put a lot of excess liquidity into the system, and they’re trying to take that excess out in their own time. But that’s really not how markets work.
The balance sheets of the central banks are not going to be normalized in time for the commodity prices to come back up.
It’s a feedback loop.
When commodity prices start rising there are expectations of inflation and people start wondering if interest rates are hiking up fast enough.
You saw the “Taper Tantrum”. The Fed thought that if they eased people into a reduced money supply over a long period of time that everything would be fine. But even the things they did, that they said would normalize things, are behind.
That’s why the market is down today.
Prices go up and expectations of inflation go up, and the Federal Reserve gets behind the curve.
What’s going on right now may be a false start to commodities rising, but it’s signalling something.
When commodity prices, like oil, start picking up then the Fed is going to have to raise interest rates faster than what’s expected.
The inflation story isn’t ready to peak yet, but whether it’s this year or next year, it’s certainly coming.
WHAT WILL DRIVE COMMODITIES HIGHER?
One of the big stories of the last few years has been the energy revolution.
There’s still a lot of excess capacity in shale and in a lot of energy infrastructure, and this has been keeping inflation in check.
As soon as that excess capacity wears off then the prices of commodities will start to rise.
That’s when we’ll need to be worried about inflation.
Josh sees the risk in these things, and that it will raise the price of gold and other commodities.
Any time central banks are behind in normalizing they are making the value of currencies weaker.
We’re seeing that.
GOLD
Josh believes in a 10% allocation for physical gold.
It’s just a safe place for part of your liquidity, and not a matter of buying gold instead of Google or Apple.
It’s owning gold instead of U.S. dollars right now.
HISTORY OF GOLDMONEY
GoldMoney is a place to buy precious metals, and now also cryptocurrencies, and hold it in your own name and your own title in fifteen different vaults around the world.
It’s a place to have a safekeeping where it’s electronic and easy, but not an ETF or a bank account. It’s your own metal and your own assets held in your own name.
Josh Crumb and Roy Sebag, co-founder and CEO, started GoldMoney three years ago (called BitGold at the time) because they saw a world where it would be increasingly important to own alternative types of monies (bearer assets) outside of the financial system.
They were ahead of the curve and now that idea is becoming mainstream.
GoldMoney is a publicly traded company with about $1.5 billion in client assets on the platform. They waited to launch their offering for bitcoin until the regulations and infrastructure was in place. They launched it in Nov. 2017 and had $22 million in sales in seven weeks.
Josh Crumb can be found on Twitter and at GoldMoney.
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Gold is at $1,315.70 U.S. per ounce.
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(from Feb. 5, 2018)
My thoughts…
WHICH IS TO BE MASTER – THAT’S ALL
When the system has its next crisis, which it does every seven years or so, the global elite (the IMF, the central bankers, the G20 heads of state and finance ministers) will try to put Humpty Dumpty back together again.
They’ll want a new system, news rules of the game where they keep control.
We all like control and we all want to keep it when it’s ours.
But in a crisis rivals want to take advantage, so the elite will try for a smooth fix. But if that doesn’t work they’ll do whatever it takes. They’ll shut it down or cause chaos. They’ll do what they think is necessary to keep control.
Restoring confidence will be crucial. But how do you “restore” something new that has no “store” – no history of value you can count on? In the past they used gold.
Gold is indestructible. It has no counter-party risk. It cannot lie, it cannot break a promise to pay because it’s not a promise to pay at all. It is the payment itself. It’s the wealth and value itself. And over time gold has kept value when everything else fell apart.
There’s an overwhelming amount of debt in the world system. More than can ever be repaid. The debt-based central bank model has reached its end, and the players are all scrambling. A reset is coming. They all know.
All the global rivals are quietly moving their pieces for an advantage when it comes to a head. Nations, corporations, others actors. Currency wars, trade wars, shooting wars.
The world is a wheel and the patterns repeat because people in groups are the same over time.
You never know for sure what a single person will do, but you can predict quite well what a group will do. And in fear or anger a group gets tight and moves as one. Very easy to predict. It’s quantum mechanics. It’s a season inside what the Romans called a seculum. It’s the earth spinning around the sun. Like clockwork. Like a wheel.
Words move people. Words sway. Watch for the elite to redefine words.
Watch the unfolding fight over who is master of the meaning of words.
All the king’s horses and all the king’s men will be used in the war over words.
The pieces are moving behind-the-scenes to set up for the new game of Coins and Crowns.
The stock market. The way every market works. The definition of a market, of value and how we exchange it.
History is a wheel.
The world is wheels inside bigger wheels, and we’re coming up to a big turn of a number of completed cycles at once.
Propaganda will rule for a while. All the players, the nations, the major corporations, the global elite and others, will try to sway the largest group to their benefit. They will try to divide and incite hatred. They don’t care about the individual. They will try to group people against other groups at the expense of each individual.
Watch the words and do your own research. Who is your ally? Who is your enemy? What does history say?
In the past there was gold.
When there was no trust between nations there was gold. When there was confusion in who were allies and who were enemies there was gold.
Who has the best tech? Who uses gold? Who rules space? Who uses gold in space? No one’s sure what’s up the other players’ sleeves. No one knows what the new rules will be.
But if future is as past then there will be gold.
In Lewis Carroll‘s Through the Looking-Glass (1872), Humpty Dumpty tells Alice that the question is which meaning is the master.
“I don’t know what you mean by ‘glory,’ ” Alice said.
Humpty Dumpty smiled contemptuously. “Of course you don’t—till I tell you. I meant ‘there’s a nice knock-down argument for you!’ ”
“But ‘glory’ doesn’t mean ‘a nice knock-down argument’,” Alice objected.
“When I use a word,” Humpty Dumpty said, in rather a scornful tone, “it means just what I choose it to mean—neither more nor less.”
“The question is,” said Alice, “whether you can make words mean so many different things.”
“The question is,” said Humpty Dumpty, “which is to be master—that’s all.”
It’s all going down, down, down… the peasants reeling.
Elaine Diane Taylor~
February 11, 2018
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Coins and Crowns
words and music Elaine Diane Taylor
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.
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A Terrible Breeze (North Korea and Nuclear War)
The news comes down
A little bluebird sings
Words of war
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 the 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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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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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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Elaine Diane Taylor 