3 Min. Gold News – Synopsis of Jim Rickards with Daniela Cambone at Stansberry – December 18, 2021

 

3 Min. 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, Aftermath and The New Great Depression with Daniela Cambone , Editor-At-Large and Anchor at Stansberry Research.

 

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.

Topics:

Inflation
The Fed
Energy
The Fed’s Coming Mistake
Omicron Variant of Covid
Vaccines
China
Australia
Gold
Bitcoin
Covid

synopsis by Elaine Diane Taylor

burning bank painting collection by Alex Schaefer

INFLATION

Inflation is potentially a huge threat but in Jim’s view it’s just about over. We’ve hit the peak of inflation and it’s going to go down a lot faster than people expect.

The government number are created by comparing one month to the same month a year before. They take that number and basically times it by 12 to get a yearly inflation percentage.

The April, May, June and July of 2020 was the worst collapse of the economy since 1942, so in 2021 you would expect the prices to go up.

So was it “transitory”? In other words, would the inflation just peter out?

It lasted into the last quarter of 2020, but Jim believes we’ve seen the peak and the inflation will go away quickly.

THE FED

The Federal Reserve is always wrong, so Jim was uncomfortable when he believed inflation was transitory just like the Fed.

But now, Jay Powell (head of the Fed) says it’s here to stay, so Jim feels much better now that he’s on the opposite side and believes it’s transitory (haha).

Jay has said they’re going to taper now which implies they’re going to lift interest rates in late 2022.

The futures market seems to agree with Jay so he’s politically on the right side but he’s not analytically right.

The massive money printing the Fed has done did not cause the inflation.

The Fed creates the new money by buying bonds from the banks with fiat they create out of thin air.

The Fed puts the bonds on their balance sheet and the banks get the new money.

What do the banks do?

They don’t lend it out to stimulate the economy, instead they give it back to the Fed as excess reserves (savings).

That’s not what caused the inflation. The inflation came from really bad energy policies by the Biden Administration.

ENERGY

They handicapped fracking and shut down new leases for oil and natural gas exploration on government land. Also, they closed the Keystone Pipeline.

They’ve done everything possible to raise the price of gas in order to promote the Green New Deal.

So inflation isn’t from the money printing, it’s because Biden has completely messed up the energy supply chain.

Car prices inflated because all the new ones need semi-conductors and there was a supply chain issue on semi-conductors.

So people have been buying used cars and that increased the price.

The increased prices based on Biden policies is a one time deal. It’s done.

Will gas prices increase again?

If I spend $70 to fill my tank instead of $50 then it’s $20 I can’t spend on something else.

So the other shopping is less and the economy goes into a recession.

The Fed is irrelevant right now.

Their worst mistakes were causing the Great Depression and causing the mortgage bubble that caused the 2008 Crash.

THE FED’S COMING MISTAKE

They’ve said their going to taper (slow down money creation) and raise rates.

Last time they did that the stock market tanked 20% and it’s going to happen again.

OMICRON VARIANT OF COVID

It’s early days, but the best evidence, most coming out of South Africa right now, is that it’s highly contagious and very mild.

The fatality rate is extremely low.

So more will get it but less will die.

China, which is communist, said they’re pursuing a zero Covid policy. That’s like declaring a zero policy on getting a cold – forget it.

Australia has gone completely fascist.

Covid is real and a lot of people have died, but at this point it’s like a cold with this variant.

There’s no reason to shut down an entire economy.

We’ll have to learn to live with it with treatments.

VACCINES

The Covid vaccines don’t work.

They reduce symptoms and they reduce fatalities which is good. If you want to get vaccinated then go for it.

They do not stop you from getting infected and they do not stop the spread.

It’s not really a vaccine, it’s more of a treatment.

With the most recent data for Omicron in the US, the number one source of infections were the vaccinated.

CHINA

They shut down the 4th largest port in the world and put 50,000 people in quarantine. It won’t stop the spread but it will further shut down the supply chain from Chinese manufacturing.

That will temporarily raise prices but then people are laid off and it just makes things worse.

GOLD

Inflation drives up the gold price but it’s not the only thing.

Jim sees gold as a form of money. It’s a cross-rate for the US dollar.

For gold to go up in US dollars the US dollar need to get weaker.

Right now we’re in a King Dollar scenario. It’s crushing the euro and the pound.

Gold is in a tight range, but for it to rise there needs to be inflation, which Jim does not expect, or else a weaker US dollar, which will come but not yet.

Jim believes gold will keep moving sideways for now because the US dollar is still King.

TRIGGER

The US can’t keep the interest rates low forever just to shoulder the rest of the world’s debt.

The US needs a cheaper dollar to promote their exports.

When they do that then gold will take off.

BITCOIN

Jim doesn’t own any Bitcoin but he’s not an anti-Bitcoin crusader.

His view is that there is no there there.

COVID

It’s important to get out and enjoy life. The mental health aspects of Covid are real.

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

Daniela Cambone can be found on Twitter and at DanielaCambone.com

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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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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.

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Screen Shot 2019-09-24 at 12.09.36 PM

My thoughts…

Last August 2021 I wrote this in the blog:

Art and music and money will all be tokenized, anchored to gold and each other.

But at this moment it’s a world without an anchor.

“You are fed with cake and follies.

You are tethered (Tether) to the shell.

They were bailing out the breeches.

They’ll be bailing in the hell.”

from A World Without an Anchor

That tokenization is becoming a reality now.

Artists in the last six months have finally been able to create their works and be paid for them directly. The music industry is notorious for harvesting income from the artist by the management and marketing systems. Spotify collects millions while the artist is paid less than a penny.

The new world is with NFTs. The token is Non Fungible and that means it’s unique and traceable. Art/music is valuable as a unique item. You may have a photocopy of a Picasso on your wall but it is the original that is unique and rare.

Music NFTs are each numbered on the public blockchain, which means the owner can prove that they alone own this property. It is unique, rare and not stealable.

I am entering that world today.

After years of giving away music and lyrics and my work, I’d like to offer NFTs for those who find value in what I create.

Thank you so very much for all of the support over the years for this blog, for my music and for my creations.

I hope to create items of value that are worth collecting. Items that commemorate our love of gold, of cryptocurrencies such as Bitcoin and XRP, and of the historic shift in our world from mechanical to digital.

We’re all moving to brand new shores of state and mind.

Thank you for allowing me to be a part of this journey.

NFT number one, to be released this weekend commemorates XRP.

This coming week the collection will be expanded to limited edition NFTs of my songs Coins and Crowns about gold, (featured in Mike Maloney’s ‘Hidden Secrets of Money’ series) and Bitcoin Barbarians (celebrating Max Keiser’s famous saying about the end of the current fiat system).

Pricing is to be determined this week before release. My goal is to create beautiful folk music that means something and is worth holding.

My aim is to honestly look at our changing world and write about the multiple layers of that change.

Thank you to Jim and Daniela for an in depth interview and all of the expertise you both add to this arena.

My hope for the future is for excellent, radiant peace.

For sound money and sound minds.

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

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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

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AlbumCover.PreparingfortheFall

Preparing for the Fall is a live boutique album available for digital download  — 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 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.

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