3 Min. Gold News – Synopsis of Jim Rickards with Bloomberg Crypto – March 23, 2022

 

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 Matt Miller and Kailey Leinz from BloombergTV’s new Bloomberg Crypto.

 

Jim is the Editor of Strategic Intelligence, former general counsel for Long Term Capital Management, and a consultant to the U.S. Intelligence community and U.S. Department of Defence.

Topics:

Money
Cryptocurrencies
New Tech
Reserve Currency
Bitcoin
War
Store of Value
Investment

Interview link:

https://www.bloomberg.com/news/videos/2022-03-22/bloomberg-crypto-full-show-03-15-2022-video?sref=057fvfUj

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MONEY

We have lost the thread of what money actually is.

CRYPTO

The debate has been whether crypto and Bitcoin are money or not.

If Bitcoin is money then what does it say about the definition of money?

That’s the revolution here.

Bitcoin and cryptocurrencies are disrupting the definition of money.

Just like all new technologies disrupt.

WHAT IS MONEY

The Federal Reserve has three different definitions for money: M1, M2 and M3.

Throw in gold, silver, crypto, CBDCs and Bitcoin – when you see the most recent academic research they list 40 different characteristics of money.

The classic definition of money is 1.) unit of account 2) store of value and 3.) medium of exchange.

The academics’ list included things like whether it was good for money laundering or not, whether it was good for tax evasion or not, and whether it was anonymous or not.

They did this list across a matrix of 15 kinds of money.

So, there is a 600 box matrix on what is or is not money.

What’s going on is much bigger than whether Bitcoin is money or not.

NEW TECH

The one who discovered water wasn’t a fish because the fish is in the water and so can’t see it.

We’re in an electronic environment. It has affected other medium and now has come to money.

RESERVE CURRENCY ROLE

Separate the idea of the role of the US dollar as a reserve currency from whether or not the US dollar is sound.

China does not have a palace with $100 bills in the basement – their US dollar reserves (savings) are held in bonds.

When people talk about the US as the world’s reserve currency, they mean that there has to be a bond market denominated in US dollars.

There is no real bond market for Bitcoin.

There’s a nascent one right now, (just coming into existence and beginning to display signs of future potential), but it’s not really a full-on bond market that would be required to be a reserve currency.

There’s no bond market for Chinese yuan.

Those things can’t be reserve currencies because there’s nothing to invest in.

You can exchange and buy things with them but you can’t invest in a full-on bond market.

MONEY

The bigger issue surrounding money is whether people are going to go in 50 different directions on what it is.

BITCOIN

It’s not surprising that younger people took to Bitcoin.

Millennials and Generation Z own much more Bitcoin than those who are older.

When they were five years old they were playing video games.

They were raised in a world with digital games that had digital money.

The game makers made money by having the players spend fiat to buy digital coins that were used to buy digital goods, like more armies.

So when digital money came along they didn’t think it was odd at all.

WAR

If you are a refuge escaping from a war zone then cryptocurrencies have a role to play.

STORE OF VALUE

Jim knew someone in the Serbia war who told him they wanted to buy gold but couldn’t find it, they wanted euros and couldn’t find it, and there certainly were no US dollars.

So they took their septic tanks and filled them with gasoline because gas is a store of value.

People will do whatever it takes to get a store of value.

BITCOIN

Bitcoin is an asset but it’s not an investment.

It goes up and down quickly so it’s not a hedge.

Jim believes it’s an asset like a casino chip – you can win a lot or lose a lot.

INVESTMENT

There are cryptos that are spiking with immense returns but that doesn’t make them an investment.

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

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My thoughts….

I’ve been writing about this topic for over ten years now.

We’re switching from the mechanical age to the electric age and it takes everything with it.

Thoughts. Language. Societal structure. Communication. Family. The idea of nations and tribes.  Everything.

And money.

Language and the way we use it defines not just how we communicate but how we think.

And how we think gives us the parameters for what we entertain as the realm of possibility.

An idea is a kind of value that is formed into a message by one party, being a person or group, and is encoded and sent through a medium, such as the air, or through an electromagnetic wave, or visually through a painting, or by a touch, or even symbolically through a coin. And that idea of value is then received by another party, being a person or group, and decoded by the receiver on the other side.

When a relationship is stable, whether that’s a family or between nations, we aim for the coding and decoding to be properly understood on the other side. In an unstable one there is an intentional misuse and changing of definitions in order to gain advantage at the other’s expense.

As a new technology comes there are new ways of coding and new ways, media, of sending messages.

Medium means single and media is many medium.

Funny then, money being a medium of exchange will perhaps become a media of exchange. How about that Jim? A new definition for a new time.
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Mass media was created to send a message from one party to many parties. One-to-many. The medium was direct and one way. The masses did not have an effective way of sending a message back in order to gain an equal relationship of understanding and negotiation.

Before the printing press was invented a society lived with an interplay of communication. A society was oral and tactile before the alphabet and printing. It was dynamic with everyone contributing all at once. There was no private viewpoint as there was no sitting alone at home decoding a message. The messages were sent and received and sent and received all at once.

It was the printing press and the book the begat producers and consumers. The repeated mechanical letters that were read by the single person alone, brought a power to the message maker as they became immortal and frozen in time. Society stopped being a living, dynamic thing. It split into individuals who received a message and formed an individual opinion as they decoded the letters in sequence. Letter by letter. Word upon word. Meaning was built in sequence

Now we are in the electric age. The light bulb goes on and the whole area, a whole frame, is filled with light. Day and night are forever altered. Time and space are altered. We see everything in the blink of an idea. The medium is instant and not linear.

Eureka! Insight in a flash. Value understood in a flash.

Symbolism carries insight in a flash.

And now money, the most deeply held value of the elite, is making the switch from mechanical to electric.

Eureka! Money changing hands in a flash.

Received across borders in a flash.

Those with power want to keep it.

Those without it want more.

This new technology of money is the game of coins and crowns.

So, we come to the beginning again. Language. Definitions.

What is money?

How will the balance of power be affected?

How does that play into the current wars and alliances?

How do decentralized crypto and CBDCs fit in?

Will write more soon.

Elaine~

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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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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