3 Min. Gold News – Jim Rickards – Gold, Cryptocurrencies, Bitcoin & Trade Wars

3 Minute Gold News

 

Interview synopsis of Jim Rickards, New York Times bestselling author of The New Case for Gold, The Death of Money, Currency Wars and The Road to Ruin, with Remy Blaire from Sprott Media.

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.

 

Topics:

 

Fed Raising Rates
Debt and the Next Crash
China Trade War
Gold
Bitcoin
Cryptocurrencies

 

 

 

FED RAISING INTEREST RATES

The Fed was on track to raise interest rates.

But the surest sign that they were going to raise rates was that the President told them not to – they can’t be pushed around by the White House.

Their plan is to hike rates by 25 basis points four times a year – every March, June, September and December like clockwork unless one of three factors occurs:

1. There’s a disorderly market (like a 15% drop in two or three weeks).

2. There are job losses.

3. There’s disinflation. Not deflation, we’re not there yet, but if the core indicators are rising at a slower rate than is the trend.

They don’t care if the stock market goes down five or ten percent over months.

Based on those three things above, the Fed will pause their plan to raise rates.

DEBT AND THE NEXT CRASH

Watch the debt-to-GDP ratio. Right now it’s about 106% including social security payments, which is the highest debt-to-GDP since World War II.

It’s going up slowly and heading up past France and towards Italy.

When the ratio exceeds 90% there’s no way to get out of it. A country will either default or else in the U.S.’s case it will just print the money resulting in hyperinflation.

The immediate result of such a high ratio is that it slows growth.

When you first borrow money you get something in return, but as the debt ratio grows you get less and less for each dollar you borrow, until you get nothing in return for it.

 

CHINA TRADE WAR

When tariffs are announced it sometimes takes three to six months, or even longer, to come into effect. When Trump announced tariffs in January 2018 the market didn’t worry about it and figured he was just using it as a negotiation tactic.

But it’s a trade war and it’s real.

It’s going to get worse. It’s going to last for a long time and you should take it seriously.

World growth is slowing and disinflation is part of that.

China is either going to have to make major, verifiable concessions on theft of intellectual property, direct foreign investment, and a few other key things., or else the next round is going to be put in place.

 

GOLD

U.S. trading partners have been complaining about the dollar system since the 1960s. Even when we were on the gold standard they didn’t like that the U.S. dollar was the leading world reserve currency.

Today there’s no gold standard and the U.S. uses the dollar as a weapon.

First, they kick the nation out of FedWire, which is the dollar payment system. That way the nation can’t pay for things in U.S. dollars.

Then the U.S. uses their influence with SWIFT (the global payment system that’s used for all global financial transactions), to kick the nation out of the system that’s used to make any payments for trade with any other nation.

To ramp it up the U.S. kicks corporations out of SWIFT.

It’s very effective in cutting off the nation’s ability to conduct trade.

But Russia, China, Turkey, North Korea and others want to get out from under this dollar payment system so they’re creating an alternative payment system.

No one wants the Russian ruble or the Chinese yuan because they don’t have a good enough rule of law that nations can trust.

But if you build up enough gold you can make a gold backed currency that others will trust.

They are building an encrypted distributed ledger, a blockchain, with a new form of cryptocurrency where one coin is equal to one SDR, which is the currency of the International Monetary Fund (IMF).

Then Russia, China, Turkey and North Korea can trade between themselves and use the new private crypto coin backed by gold. They will keep track with the cryptocurrency but then a few times a year settle up by transferring ownership of the physical gold.

Those nations have all been acquiring gold.

China and Russia have more than tripled their gold reserves in the last ten years. Iran has a lot of gold but is not transparent so it’s not known exactly how much they have.

This system is being created now to undermine the U.S. dollar.

 

BITCOIN

In December 2017, Bitcoin was going up almost $1,000 a day and Jim’s call was that it might go up to $20,000 but that it would crash and go down to about $200. It’s not down to $200 yet, but it’s down about 80% to around $3,000.

Jim doesn’t like it or own it. He’s believes it’s not scaleable or sustainable, that it’s only been good for speculation and economists view it as a collectible.

There are about two thousand cryptocurrencies so it’s hard to talk about cryptos unless you specify which one.

He wants to know who’s behind a coin, who is sponsoring it, who are the partners, what’s the governance, application, and transaction costs – just like analyzing a company.

Some cryptocurrencies are awful, some are good, and some have a future.

 

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

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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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Merry towns torched in flame
Model wings crash down in pain
Hidden hands fan the breeze
No glue left to bond or breathe

The keepers of keys lock the hordes (hoards) at home?
Pitchforks and peasants gnawing on bones
Crusts and clowns for the paupers she said
Speaking of tipping and losing one’s head

Children lined up facing the wall
Vested interest a shame for us all
The circle, the cycle, the backyard swing
While the media decorate the hall
getting ready for the bankers ball

– from The Bankers’ Ball

 

……………………………………….

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

– from A Terrible Breeze

EDT - Helplessly Hoping - cover

……………………………………….

Gold is at $1,278.20 U.S. per ounce. From Kitco News.

Screen Shot 2018-12-28 at 11.30.41 AM

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Screen Shot 2018-12-24 at 11.44.10 AM.png

 

 

My thoughts…

 

‘Tis the season to hug the ones you love. And so I did.

Love my family so much.

Elaine~

December 28, 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.

……………………………………….

Thank you to Jim Rickards for including me in his bestselling book The New Case for Gold.

Screen Shot 2016-03-11 at 9.49.31 AM

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A Terrible Breeze    (The Nuclear War Threats)

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 that wheel of peace and war

Village fools sinking down, down, down
Debt and gold wound in numbered shrouds
Deal of a life, there’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 Elaine Art & Media, Inc. All rights reserved.

SOCAN/ASCAP

Single available on iTunes

Bank holidays and long lines to get a few fiat units 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 deals to come. More standing in line for those who owe.

Who owes? There’s a long line of nations in debt and the bank holidays are 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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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 the building 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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