3 Min. Gold News
Thinking of the future. Of changes. Of safely getting from here to there.
An interview 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 Charles Payne on Fox Business.
Jim’s book “Sold Out: How Broken Supply Chains, Surging Inflation and Political Instability Will Sink the Global Economy”, is available for 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.
Topics:
Interest Rates & Inflation
Insolvent
Two Kinds of Tightning
Inflation
Jim Rickards with Charles Payne on Fox Business March 22, 2023 interview
INTEREST RATES & INFLATION
Jay Powell has given 8 or 9 speeches going back to August 2022, and he’s said the same thing every time: inflation is Job One.
If there’s going to be a recession that’s too bad.
If unemployment is going to go up that’s too bad.
The Fed is not going to stop until we’re at a level, called the terminal rate, where inflation is going to come down on its own.
The Fed isn’t done. Jim expects them to raise again in May.
It’s going to take a long time to get where they want to go, so they’ll keep raising rates.
A lot of other bad thngs may happen but they’re determined to get inflation under control.
When Fed came into being they said they’d smooth out the business cycle, but it’s been nothing but a series of Booms and Busts.
Since 1913, it’s been nothing but a series of blunders.
We’ve had the boom and so now inflation is the key thing. If it takes a bust in stocks to bring it down then so be it.
Jay Powell says he’s not in the business of propping up stocks.
INSOLVENT
Some of the institutions the Fed is lending to are insolvent.
The problem today with our instant communication is that you can go from solvent to insolvent almost overnight.
They’ve got securities as collateral, but if those securities are 20 – 30% underwater then it’s not clear whether the institution is solvent.
A global crisis is already here. So, even with temporary measures they have to get it under control.
TWO KINDS OF TIGHTENING
There are two kinds of tightening going on.
There’s Quantitative Tightening (QT), which is reducing the balance sheet, and then there’s tightening by raising interest rates.
QT is out the door because of a new lending program – they’ve invited every bank to send them a trillion dollars in bonds (underwater or not), and then the Fed will pay for them at par with newly printed money.
That’s going to be a kind of easing. So, there’s easing on the balance sheet side and tightening on the interest rate side at the same time.
They’re trying to have it both ways and that means more rate hikes.
Jim Rickards can be found on Twitter and at James Rickards Project.
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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 bestselling 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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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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My thoughts….
As the alphabet took the magic of words and divided them into tiny repeatable units, to be separated, strung along and carried in written form, and then reformed into words and meaningg in the quiet of one’s own mind, so currency separates commodities and items of value into concise repeatable units. The currency is packaged, shipped, identical, and is value is exchange for meaning of value to the receiver. The oral societies are not led by the alphabet; they are led by the voice and ear. So each item is different, unique, and exchange is bartered over for each unit. These countries will not easily move to digital wallets and identical purchases. The unbanked are sometimes by choice.
Those in power talk about taking care of the ‘unbanked’. But the care is misplaced. A new bank account will earn the banker fees, and the expansion of the currency supply is not a desire of the central banking system, it is it’s lifeblood.
To keep their central bank system going they must have ever expanding borrowing and debt. Their system has failed because it has to fail. Sooner or later you run out of people to lend to, so they’ve created a ‘green’ issue to make new reasons to create more debt. The business cycle cannot be stopped, it rises and falls as every closed system does. They know this, and so those in power are rushing to cement control with new technology before the first out of the gate with new products beat them to market share. The rush is to try to regulate to keep the status quo. But it’s impossible.
My biggest concerns at the moment come from Understanding Media, written by Marshall McLuhan. He writes of Nobel prize winning author Alias Canneti’s book, Crowds and Power, talking about the psychic effects of the Germany hyperinflation after the First World War.
The depreciation of the citizen went along with that of the German Mark.
There was a loss of face and of worth, in which the personal and the monetary units became confused.
When everything is mechanical, it includes thoughts, money and humans. I hope that confusion doesn’t return.
Elaine~
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
Elaine Diane Taylor 