Golden Showers Are Not A Precious Metals Investment – Dubin

goldFiring on all cylinders and tackling important economic and political events of the past month while looking towards what may happen in 2017, Jason and Eric make the case that gold and silver bottomed in December.  We examine the historical pattern often seen of a strong January and Eric places the historical trend into current context.

 

 

Eric talks about how the currency markets are affecting gold and silver prices and Jason talks about how the President of Turkey is calling FOREX speculators “terrorists.”

Chinese policy makers are experiencing difficulty dealing with capital flight and distortions in their credit markets.  The Chinese economy is also decelerating and we should expect rising tensions between China and the United States given Donald Trump’s economic nationalist policy agenda.  2017 will bring rising trade frictions between the first and second largest economies in the world.  It’s very likely Trump will formally declare China a “Currency manipulator,” which carries force in law and will change subsequent U.S. policy.

In turn, China may very well surprise and continue to escalate the devaluation of their currency, which will likely serve as a catalyst for significant downside volatility in other markets, including the U.S. stock market.

Jason underscores the pernicious tendencies of ‘globalism’ versus the pros and cons of ‘economic nationalism.”  We are witnessing a tug of war between the elite’s version of globalism that primarily offers low cost goods for the ‘man on the street’ versus the significant diminished middle class opportunity that rising economic nationalism trends embody, as expressed by the Brexit vote in the U.K, the election of Donald Trump, the rising popularity of France’s Marine Le Pen President of the National Front – and many other examples.  

The mainstream establishment, largely behind and supporting globalist objectives, focus on racism rather than the root of these rising trends: diminished economic opportunity for middle class people across Western economies, largely the product of horrible economic and political policy, driven by corporate interests and largely ‘captured’ governments that serve special interests, not constituents.

In the wake of China’s crackdown on bitcoin, Eric returns to his long standing warning about the “on-ramps and off-ramps to commerce” problem and “weakest link” to the thesis that bitcoin (not block chain) will become a true mass market currency.  Governments are about to make war on bitcoin.  Libertarians will find Eric’s thesis worthy of consideration, and he welcome’s on-target rebuttal because he certainly hopes that he is proven wrong.

There’s some good laughs in this episode!  Eric’s dog even voices his disgust at Obamacare, and Jason is still seeking his dream libertarian femme fatale as he contemplates the sad state of “Snowflake Central,” otherwise known as the Washington, D.C. metropolitan area, his backyard.

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