3 Min. Gold News – Synopsis of Jim Rickards with Triggernometry – Part 2 – April 25, 2022

 

3 Min. Gold News

You’re thinking of the future. Of changes. Of safely getting from here to there.

 

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 Konstantin Kisin and Francis Foster of Triggernometry.

Jim’s new book “Sold Out: How Broken Supply Chains, Surging Inflation and Political Instability Will Sink the Global Economy”, is available for pre-order now.

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.

 

Part 2

 

Topics:

 

Nuclear Warfare
Pearl Harbor
Solutions
New System
China
What You Can Do
Gold
Cash
Crypto
Bitcoin

 

Full Interview link:

https://www.youtube.com/watch?v=mU3rPTxev-o&t=9s

 

Screen Shot 2022-04-23 at 1.29.04 PM

 

Nobody wakes up and says, “Nice day. I think I’ll start a nuclear war.” – Jim Rickards

 

NUCLEAR WARFARE


We had a long period, from the fall of the Berlin Wall until fairly recently, where there were not any major wars involving major powers, at least not to the close proximity we have today.

But, instead of that peace being the ‘new normal’ with things now falling apart, perhaps that time of peace was the anomaly, and now war, particularly war in Europe, is back to business as usual.

Even during the years of ‘peace’ there were proxy wars all over the place: Vietnam, Angola and elsewhere.

Jim hopes that the US and Russia continue to not fire a shot at each other, but he’s concerned about a warmonger element in the US.

During the 50s and 60s there were treaties and inspections put in place which stopped the daily concern about nuclear warfare. All the scholars of that time agreed: “Don’t go there.”

Nobody wakes up and says, “Nice day. I think I’ll start a nuclear war.”

The scholars of that era didn’t want to make moves that could escalate to that place.

Neither the US or Russia have adopted a “No First Use” doctrine, and Putin recently said that he hasn’t ruled out the need to use tactical nuclear weapons.

Things can escalate to where the one who seems least likely to shoot first does, because they believe the other one is going to shoot first.

We’re closer now to a nuclear outcome than we have been since the Cuban Missile Crisis in 1962.


PEARL HARBOR

People forget that five months before Pearl Harbor, the US put economic sanctions on Japan, froze their bank accounts and cut off their oil supply.

Sound familiar?

Jim teaches an elite group of the US government’s future “big brains” in the US military – army, marines, airmen, and intelligence officials in the Advanced Strategic Arts Program.
He teaches economic warfare.

This economic war is unlike anything that’s been done before.

The war on the ground in Ukraine is tragic.

The economic war, including the human cost, is bigger.

Starvation in Sudan is coming, and there will probably be a higher loss of life than in Ukraine.

The economic war may go on for years, or decades.

The US has said that sanctions will remain until all Russian troops leave Ukraine. Russian troops aren’t leaving Ukraine, no matter how the war on the ground goes.


SOLUTIONS

All Ukraine has to do is to say they won’t join NATO and that they’ll remain neutral.

There are models for that, such as Finland and Austria.

It’s a classic situation of having a buffer state, which Ukraine should be.

Jim believes that is how it will turn out, which means this is an enormous tragedy.


NEW SYSTEM

We’re remaking the world, and it will be less efficient yet more robust/resilient.

That’s the trade off.

We pay insurance on our home hoping we’ll never have to make a claim, but paying this money isn’t throwing it away.

A new system will cost more, but be more resilient and better serve our purposes.


CHINA

What’s happening in China is shocking. China is atheist and communist, with genocide, concentration camps, thought re-education camps, organ harvesting from live dissidents without aesthetic, and 30 million girls drowned at birth because they were girls.

That’s China.

Do companies want to do business with that kind of partner? The answer is no, they don’t.

That puts China on the spot. Can they develop internal demand, a financial system and rule of law to displace western capital?

Jim doesn’t believe so, and believes we will see catastrophes coming out of China.

He thinks it will be a topic for a year or two down the road.


WHAT YOU CAN DO

Jim has a few suggestions on what he would do. (This is not financial advice as everyone must see their own advisor, do their own research and make their own decisions.)

Have slices of asset classes that are correlated in a minimal way.

He would increase his allocation to cash.

The most powerful financial tool we have is diversification.

That doesn’t mean owning fifty different stocks. Stocks are one asset class – in panics they all go down and in bubbles they all go up together.

 

GOLD

Have a slice of gold, but just 10% of your investible income.

You don’t want to be 100% in anything, or even 50% in anything.

If he’s wrong you won’t get hurt and if he’s right you’ll make so much money that it will be insurance against any losses in the rest of your portfolio.

That leaves 90%.

So a large slug in cash, maybe 30%.


CASH

Cash is the opposite of leverage. With leverage you can make big gains but also big losses.

Cash is not subject to the volatility (so you can sleep better at night).

Cash is a great asset in deflation.

We have inflation right now but don’t rule out deflation.

We’re seeing the kind of inflation that comes from a lack of supply. The Fed can’t fix lack of supply. All they can do is increase interest rates which kills the economy.

So, cash gives you options.

When all the prices are crashing you’re the one who can go shopping.

Have some stocks, but look at the energy sector.


CLIMATE CHANGE

Climate change is real, but it’s slow. There’s no climate crisis.

The elites want all this solar power, but while you can use it to charge batteries and run your house (on sunny days), you can’t run a city.

They’re not scaleable and they can’t run a modern power grid.

Plus, global demand for power is growing.

Renewables aren’t filling that global growing demand, so there’s no substitute for oil and natural gas. Jim speaks with people in power who agree, but know they can’t say it in public as it’s not popular.

So, Jim says buy some oil companies in your stock portfolio.

Plus private equity, residential real estate, farmland, and gold.

That’s diversification.


CRYPTO

Jim isn’t a crypto basher but he doesn’t own any.

He says that if people want to own it then they should do what they want, but he doesn’t see it as money.

He does see crypto erasing the definition of money.

Maybe the dollar isn’t money either.


BITCOIN

Jim doesn’t see Bitcoin replacing the US dollar as the world reserve currency, but it might contribute to the concept of “moniness”.

Jim’s thesis is that we don’t know that we don’t know what money is anymore.

We’re in an electric world now where we’re seeing the end of money.

(I love this as it’s communication theory – right up my alley.)

 

 

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

 

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My thoughts….

The change in this world is speeding up.

What you thought had value may not in the coming days. A new system is being built, but daily life must carry on until the switch is flipped. A diversion is created to cover the tracks of the profligate spenders. Blaming a foe of sand with tiny hints at an absence of self awareness. The world is waking up. Just wait until that coffee is ready.

 

 

 

Janet Louise is spinning with ease,
queen of the ballroom scene,
her soiree is doomed
with a soothsayers’ moon
and the refills guaranteed.

 

Elaine~

 

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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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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