3 Minute Gold News
A synopsis of Jim Rickards, New York Times bestselling author of The New Case for Gold, The Death of Money, Currency Wars, The Road to Ruin and Aftermath with Daniela Cambone at Stansberry.
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 Defence.
Jim’s newest soon-to-be-released book is The New Great Depression : Winners and Losers in a Post-Pandemic World.
Topics:
The Federal Reserve
Money Printing
Inflation
Gold Bitcoin
Pandemic
Investing
Lockdowns
Covid
There’s unprecedented money printing going on right now.
The Federal Reserve is not being held to account because people don’t understand the Fed, and they don’t understand monetary policy.
The elites like it that way.
There are some experts, some analysts and some members of Congress who understand it, but that’s about it.
The creation of money is one of the great mysteries because people don’t know how it works.
The Federal Reserve is technically an independent agency.
Who owns the Fed?
The regional Fed banks in the U.S. are privately owned by banks in the area.
It’s Bank of America, Citibank, JP Morgan, Wells Fargo and a bunch of other banks.
The Fed’s Board of Governors are appointed by the U.S. President. There’s a vacancy on the Fed board at the moment.
MONEY PRINTING
The Fed has increased the money supply radically, but it doesn’t really matter at this point because there’s no velocity (spending/turnover of money).
For right now the amount of printing doesn’t affect the average U.S. citizen, but that may not be true in a year or two.
Printing money doesn’t in itself create inflation.
The key to inflation is the turnover of money.
The Fed is creating money like crazy. But all they do is give the money to the banks to buy Treasury Notes, and then they stick the Treasury Notes on their balance sheet. It just sit there.
The banks have the money. What do they do with the money?
They give it back to the Fed in the form of “excess reserves” and earn a little interest.
The money isn’t going anywhere.
It’s the lending and spending that could give you inflation, but we don’t have that.
People are scared of losing their jobs, so they’re paying down bills and they’re not spending. Paying bills is not spending.
The banks aren’t willing lenders right now, except to certain sectors.
So, for now the money printing doesn’t mean anything. That could change.
INFLATION
Grocery prices are up but other things like computers, clothing and gasoline are down. There’s no overall inflation as it’s formally calculated.
GOLD
Gold is getting a price bump but not because of inflation.
All of the major currencies around the world are like passengers in a life boat. They’re all going to sink or survive together.
Gold is not printed by a central bank so it’s different than the other currencies.
Supply has been about 3,300 metric tonnes per year for the last five years. That’s about a 1.6% increase.
BITCOIN
The gold versus bitcoin debate is a straw man and doesn’t mean anything.
Bitcoin and gold are both going up because of loss of confidence in the U.S. dollar.
Bitcoin has had a great run in 2020 on percentage terms. It’s gone up about 150%.
The entire market cap in Bitcoin, if you took all the bitcoins in the world and multiplied it by the price of one coin, at about $20,000 US, the total is a tiny amount compared to gold.
And the gold market cap is tiny compared to the foreign exchange market.
It’s not like people are getting out of gold and getting into bitcoin.
What’s happening is that people are getting into gold and getting into bitcoin at the same time because they want to get out of the U.S. dollar.
PANDEMIC
In Jim’s last book, Aftermath, he predicted a 100% chance of one of a list of events happening in the next three years, and one of those events was a pandemic. He predicted there would be riots and armed forces.
We’re in an economic depression right now with below trend growth. Also, right now we’re going into a second recession. We’re going back into lockdown because of the pandemic.
Jim’s new book draws the link between the economy and the pandemic: it’s the lockdown.
There are more effective remedies than a lockdown. The lockdown is creating a recession. The effects are going to be multi-generational.
You should be more concerned about deflation than inflation.
Gold will do well because of the political and economic uncertainty, as well as the low interest rates.
INVESTING
The worst you can do is go all in on any asset class.
Diversify.
Owning 20 different stocks is not being diversified – that’s all one asset class.
Jim would lighten up on equities and have more in cash to lower the volatility.
He would absolutely have 10% in gold, silver or gold mining shares.
He doesn’t go all in on gold.
If he’s right about the price reaching $10,000 – $15,000 per ounce in the coming years, then the 10% is going to save his portfolio from other losses.
LOCKDOWNS
Doctors exceeded their authority when they recommended lockdowns, and politicians failed to stop them.
Anthony Fauci is a bureaucrat and not a prominent immunologist. There are prominent immunologist at Stanford or elsewhere, but Fauci is just part of government.
He took over the economy.
Trump did many things right, but one thing he did wrong was he let the doctors take over the economy.
If you’re a hammer then every problem looks like a nail. If you’re an immunologist every problem looks like a lockdown.
Melinda Gates said that they didn’t think through the economic consequences of a lockdown.
Well, duh.
COVID
Is there an alternative to lockdowns? Yes. Wash your hands, wear a mask, social distancing, and cancelling big crowd events, like football games.
If they’d just done that it would have been the same effect without the cost. You don’t have to shut down bars, restaurants, salons and dry cleaners. That’s 45% of the jobs in the U.S.
Doing the distancing and wearing a mask in small businesses works fine.
You don’t have to close the place.
You had rich elites and government bureaucrats who are out of touch. They can work from home and they’re not worried about their jobs.
They crushed everyone else for no good reason.
Jim Rickards can be found on Twitter and at James Rickards Project.
Thank you to Jim Rickards for including me in his bestselling book The New Case for Gold.
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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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Gold, Silver and Bitcoin:
via Gold Price
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From the recent Cariboo Gold Rush Trail trip:
My thoughts…
Do your own research and make informed decisions that suit you best. Run towards what fills you with joy. Do the small repetitive tasks in order to build the skills to help you get where you want to go. Apathy means moving backwards because in physics the second law of thermodynamics teaches us that anything left to itself falls apart. Energy goes where attention goes.
Put attention towards what you want and what you love. In today’s world economy, to do nothing means moving backwards each day, as those who rule the fiat world, the current economic world, have avowed to create and flood the earth with their fiat currency.
It’s a world without an anchor.
You are fed with cake and follies. You are tethered to the shell.
They were bailing out the breeches. They’ll be bailing in the hell.
from A World Without an Anchor
Elaine~
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Coins and Crowns
words and music Elaine Diane Taylor
SOCAN/ASCAP
from the album Coins and Crowns
Coins and Crowns is featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.
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Not Much of a Holiday (Bank Holidays and Media Persuasion)
words and music Elaine Diane Taylor
Single available on iTunes
Available soon on the site Store.
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A Terrible Breeze (War and Social Media)
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
Single available on iTunes
Available soon on the site Store.
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Preparing for the Fall live boutique album available for digital download now — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings. Also available on iTunes, Google Music, Amazon Music and major digital distributors.
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The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
from the album Preparing for the Fall.
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
from the album Coins and Crowns.
“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“. 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.
Elaine Diane Taylor 