Friday, October 06, 2017

James Rickards & Bob Hoye







  • James Rickards makes his show debut, author of The New Case for Gold, the private placement, MERAGLIM and the James Rickards Project.
  • As a key negotiator in the 1998 LTCM bailout and advisor to the DoD / CIA / Los Alamos, James Rickards outlines sophisticated analytical models.
  • Bayes' Theorem, a conditional analysis method facilitates forecasting the tipping point / phase transition of highly complex systems.
  • The global financial system nearly imploded in 1998, then again in 2008; his models suggest that by 2018 a new financial fiasco could materialize.
  • The US Fed increased the balance sheet from $800 billion to $4 trillion since 2009 while holding rates near zero for 6 years without normalizing.
  • The operations exposed the world's most important CB vulnerable to a new economic meltdown.
  • Once the inevitable implosion begins in earnest, our guest expects the IMF, the lender of last resort to distribute its own currency, SDRs.
  • Similar to Kurt Vonnegut's epic SciFi novel, Cat's Cradle (free PDF) our guest draws parallels between Ice-9 and the global economic system.
  • The global economy could suddenly freeze up, with startling implications for all 7 billion inhabitants.
  • The seasoned lawyer confirms the suspicions of many, including GATA.org, inadequate bullion exists to support the 1:100 gold to paper contracts.
  • James Rickards echoes the thoughts of several guests, supporting the solid case for $10,000 gold and perhaps much higher.
  • Policymakers who believe the gold at Fort Knox / West Point / NY Fed is sufficient to sustain the economy are mistaken.
  • The stockpile is likely leveraged 10:1 or even 100:1, leaving the US Treasury vulnerable to bankruptcy.
  • China has plans to eclipse our national gold reserves via the purchase of 3,000 tons of gold in the next 2 years, $130 billion, at the current price level.
  • Key takeaway: it is advisable to procure precious metals and related shares at current levels.
  • James Rickards presents an overview of his Meragrim private placement that uses the cutting edge AI from IBM's Watson to predict / forecast essential outcomes in the geopolitical arena (figure 1.1).
  • Bob Hoye of Institutional Advisors rejoins the show with an update on the Bitcoin phenomenon.
  • For the first time in economic history, the masses have a chance to grab the reigns of the money supply, central banks are no longer required.
  • While institutions such as JP Morgan spread negative rhetoric on the cryptocurrencies, many continue to secretly accumulate vast stockpiles.
  • Elliott wave analysis suggests that Bitcoin (BTC) should retrace from the recent $5,000 peak to at least $2,600.
  • Still, the BTC rocketship could continue unabated skyward to $10,000.
  • The PTB will continue to struggle against cryptos as their system unravels at an increasing pace.
  • The Greenback is now jeopardized by the introduction of a gold backed petrol contract in China.
  • The petrol-dollar arrangement of 1974 must now compete in the East with a petrol-gold-Yuan alternative.
  • Financial bubbles are now the new norm, including junk bonds, US equities, domestic real estate in Canada and even some cryptocurrencies.
  • A few legendary technophiles, such as John McAfee and Marketwatch.com are suggesting that Bitcoin could climb to a peak of at least $500,000.
  • The S&P has eclipsed year 2000 bubble levels by many metrics, including P/E ratios and Bob Hoye's top indicators.
  • The credit spread and yield curve remain positive, so equities could continue to surprise on the upside, but the risk offers a meager expected return.
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