James Rickards & Bob Hoye

Oct. 6, 2017 Featured GuestsJames Rickards & Bob Hoye Guest order by seniority Please Listen Here Show Highlights 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.