In part 1 of this supurb interview with Lars Schall, London based investment manager and author John Butler discussed how the dollar reserve equilibrium is breaking down as the world moves away from the US dollar as reserve currency, and towards gold and the yuan.
In this MUST WATCH 2nd installment, Butler discusses the ongoing collapse of the paper gold market; the prospect of trading nations refusing paper money in exchange for their exports; what a gold bubble would look like, and why the euro won’t survive in its current form.
Butler points out that all major earthquakes are preceded by a pattern of smaller earthquakes:
“2008 was a fore-shock! It wasn’t the real earthquake. The real earthquake is when paper currencies are repudiated internationally! When China, Russia, etc simply refuse to accept paper money for exports. That’s the big earthquake! The real financial earthquake is yet to come!”
When this happens there simply won’t be enough gold in the world to go around at current prices. It will force the price up in a hyperbolic spike as gold becomes de-facto remonetized.”
One of the best discussions on gold you will ever see is below:
London-based investment manager John Butler met with German financial journalist Lars Schall to discuss some of the major aspects of international affairs as they relate to the sphere of finance.
In this excellent interview, the pair focus in particular on the U.S. dollar and the challenges that may arise if China would back the yuan with gold.
The FOMC meets next week and some anticipate an announcement for more bond purchases. The continuation of Quantitative Easing is part of the Federal Reserve’s effort to support the economy, but what if the Fed’s manipulation of interest rates actually hurts growth? We talk to John Butler, founder of Amphora Capital and author of the Golden Revolution, about gold as the antidote to unhinged money printing and centrally planned price fixing. John Butler also counters some claims heard on the show earlier this week, including the idea that there is not enough liquidity in gold to serve as a global reserve currency, and that returning to a gold standard would be a mistake.
GoldMoney’s Alasdair Macleod talks to John Butler — Chief Investment Officer at Amphora Commodities Alpha and publisher of the Amphora Report, as well as author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard. They discuss the huge debt problems confronting Western economies, central banks’ reflation efforts and the significance of the shadow banking system.
Butler emphasises that policymakers will do everything in their power to fight natural deflationary pressures with policy-induced inflation. He argues that when central banks really want to double-down on their efforts to push prices higher, they may consider monetising the entire shadow banking system by taking it onto their own balance sheets in return for newly created cash — a possibility that Butler calls the “nuclear option”.
Full MUST LISTEN interview below: