[New post] “We Need To Be Preparing For Something Dramatic” | John Rubino
User ID posted: " https://www.youtube.com/watch?v=-xmnfNfFdrU "We Need To Be Preparing For Something Dramatic" | John Rubino by Liberty and Finance "We need to be preparing for something dramatic," says financial author John Rubino. People are losing confidence in pub"
"We need to be preparing for something dramatic," says financial author John Rubino. People are losing confidence in public institutions across the board, and it is just a matter of time until they lose confidence in the currency. 2022 could be setting the stage for a Dollar collapse. "It's been a good thing to focus on safe haven assets for a while," he says, "but now it's crucial."
1:06 Preparedness 6:39 Year-end wrap 11:53 Fed policy 19:33 Rush out of Dollars 21:06 Loss of confidence 33:10 Censorship 39:19 Dollar collapse
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See Full Interview Transcript Below
Dunagun Kaiser: Welcome back to Liberty and Finance we have a returning guest John Rubino is the founder of dollarcollapse.com he's been on our channel over the years he's back with us again here to weigh in on what happened what we just went through in 2021 and what lies ahead in 2022, today is Wednesday December 29 2021. John thanks for coming back on Liberty and Finance
John Rubino: Hey Dunagun, thanks for having me back, I love these year-end things you know the that's always when the story is best it seems like
Dunagun Kaiser: Well there's a lot that happened a lot to talk about that we can glean from the lessons learned in 2021 what that indicates to us what lessons can teach us about what's likely to come next, your website and books that you've written regarding the dollar collapse has been a frequent theme for a long time you've been speaking with us for years about that and I saw you met you for the first time in person at the Liberty Mastermind Symposium where you spoke on that same topic and in fact when people ask the question which is a natural one when is the dollar going to collapse and then you zoom out and show the long-term chart from 1913 in the formation of the Fed to today or any segment thereof, you could say well what part of the dollar collapse did you miss because it's been all around us in many ways and you've helped to point that out to us but even more so to factors that could result in a more calamitous sort of final collapse in the future that people would do well to prepare for before we talk about preparedness for that and get to some viewers questions, could you talk to us about preparedness in general in fact as we were just getting started here you mentioned that you're getting walloped with record snows in the Pacific Northwest and we should we should touch on that first because their preparedness is much more than just financial
John Rubino: Yeah absolutely and you know my story is a pretty good example of that where you don't usually get that much snow in the Pacific Northwest so what you prepare for tends to be other things than you know three feet of snow or something like that that's a rarity but in December we got the most snow ever out here and you know that illustrates the point that you want to be prepared for lots of different things not just the most likely thing that can happen wherever you are because each stressor you know each thing that that puts you at risk has its own characteristics and it's a good idea to look at the things that help you with everything and definitely do those like put some extra food away have a generator or some other extra source of power things like that you want to do that in any circumstances and then look at things that are kind of specific that that might not apply to the other possible things that can go wrong but you work on those too you know and with snow that means you know, in our case make friends with somebody that has a 4x4 with a blade who can come to your driveway you know, because you out here you don't necessarily want to own a big snowblower because it might not snow again in the coming year but it's good to have a friend that can take care of that for you and you know that might in a broader sense be the very most important part of prepping is that you want to embed yourself in your community so that there are people that have your back in unforeseen circumstances you know and in return you take care of them and together you're a lot stronger than if you're all by yourself with a lot of gear you know, it's good to have the right gear but it's better to have people who you can count on when times get strange because I think there's a pretty safe bet that they're going to get stranger from here going on
Dunagun Kaiser: Yeah, I wanted to tag on a couple aspects of what you just talked about one was remember about two weeks ago we were having high wind episodes all across the country in different areas people were either somewhere honest to gosh major tornadoes getting hit Kentucky and some other places got hit with some major tornadoes but also just high winds that were causing power line outages and that sort of thing we had several hours of power outage where we live it gave me an opportunity to test something I wanted to test for some time and had been putting off and shouldn't have but I finally did test that in fact our gas fireplace does work even when there is no power, I was told by an electrician who I had asked to come out and a gas fitter years ago to I wanted to retrofit my gas fireplace that would have a manual gas valve rather than an automatic one because I was afraid that it wouldn't work when the power went out but the gas fitter who came out said no he says this you've got a pilot light in there and that is a thermocouple and a little trickle of power from the thermocouple is enough to open up the main gas valve this should work without any power and we tested that during the power outage and by golly we did could light the main burner just by flipping the switch on the wall even though there was no power in the entire house and that was a good confirmation of that and then the second thing you mentioned about having a network of people that you can rely on as part of some of getting some extra supplies before that storm hit, I was loading up some heavy equipment and a guy came over to try to help me lift the heavy piece of equipment into the car and I strained my arm and shoulder and during that and I hasn't completely mended yet but just realizing that yeah you can be a lone ranger with a bunch of gear but if you get laid up then all that gear may not be doing much good if you're you know recuperating or rehabilitating or whatever, so it really is a more powerful Plan B is to have the resilience of some additional friends, neighbors, acquaintances, family members, who you can rely on and who rely on you when times get tough, if other lessons that you that come to mind I was asking about what have we learned in 2021 or what have we seen play out that sort of confirmed the concern that you've articulated for years about how we're sort of balanced on a precipice of sort of requiring everything to go right I think remember what line you said at the Liberty Mastermind Symposium you said there's a myriad of things that could go wrong and any one of them could start this whole thing tumbling down could you tell us where you see us now in terms of that balancing act and how poised we are with everything needing to go right to keep us afloat at this point
John Rubino: Well yeah, I think in the sound money community we have understood for a long time that we couldn't trust the financial systems and the people in charge of them but in 2020 and 2021 we learned that we can't really trust the public health establishment either so there's not many people left to trust out there and inflation is picking up, you know all of a sudden inflation as it is understood by regular people is starting to rage it's you know we've had inflation for years but it's been narrowly focused in financial assets like stock, bonds and real estate but now it's everywhere you know every time you go to Costco or the grocery store or whatever you notice that your cost of living is going up, so that's happening which is putting a lot of pressure on the Fed to raise interest rates or otherwise tighten at a time when the financial markets are priced for perfection, for instance the stock market is as richly valued as it's ever been in the US and it's got extremely poor breadth which means that only a few companies are pulling up all the big indexes you know if you take five tech stocks out of the Nasdaq and it just tanks and same thing with the S&P500 just a handful of companies are elevating it
Dunagun Kaiser: If I could interrupt you there because we've seen that before right we saw that in the Dot Com Era for example they said you know Microsoft and Cisco and just a handful of others were the leaders these four horsemen of the of the Nasdaq there when it was hitting like 5.000 and then it plunged down to 2.000 after that collapse
John Rubino: Yeah I think it was Bill Fleckenstein a money manager who was a big short seller back then who had this great line he said that you know the Global Financial System depends on the US stock market and the US stock market depends on five companies, almost none of which make any money and that's a recipe for a huge crash and we're kind of back there again and the Fed was tightening back then too in the late 1990s so we basically are in that kind of a situation now where we got the Fed kind of feeling forced to tighten because inflation is starting to rage in actual consumer prices instead of just financial asset prices, so they don't feel like they have a choice but to at least attempt to tighten and stocks probably can't handle higher interest rates, so we've set ourselves up for yet another big crash and that doesn't mean it happens this week or this month or even really next year although it sure does feel like it's going to, but it means that we've created the conditions for another big financial crisis, which means on the financial side of the ledger not the not just the weather side of the food side of our lives we need to be preparing for something dramatic because the conditions have recurred that in the past have led to big crashes, so you know it's been a good thing to focus on safe haven assets for a while now just from a preparing standpoint but now I think it's crucial that you'd be very careful about how many bond funds you own or how big your bank account is or if you have bank stocks like JPMorgan Chase or Citigroup or Goldman Sachs, they've done great so far, but they may not do as well in a market where financial assets get whacked by rising interest rates, well personally I'm mostly in safe haven assets now and mostly out of financial assets because of that because the risk reward calculus has changed so dramatically so you know if it wasn't time to be in gold and silver and mining stocks two years ago or even last year, it kind of is now and luckily precious metals and some of the other safe haven assets like oil company stocks are not through the roof the way a lot of tech stocks are so they're still relatively cheap they still have relatively decent dividend yields, so it's not a really painful transition to go from financial stocks to gold miners and energy stocks, you still you still get an income from it you you're in things that aren't overvalued necessarily so they aren't likely to crash along with everything else so this is probably a good time to make that kind of a financial transition
Dunagun Kaiser: You mentioned the Fed in a tightening mode as reflecting back to the Dot-Com bubble time do you believe that the Fed will be able to meaningfully tighten or that that will cause as soon as they start doing that, that will immediately cause the markets to roll over and they will just have to be abandoned
John Rubino: I absolutely do believe that and that's a big second part of this story you know if the Fed tries to tighten, they will tank financial asset prices, but as soon as the stock market starts to fall, see then the question is how far does it have to fall before the Fed takes it all back and we don't know that, but we know that once stocks start meaningfully dropping, the Fed will panic and go back into easing mode and historically, you know we've seen that happen two or three times depending on how you define it in the last 15 or so years and each time you saw financial asset prices and especially gold and silver go up dramatically after that, because all of a sudden you know when the Fed is taking money away that pulls the rug out from under overvalued assets, but when the Fed starts dumping money back into the system then that money has to go somewhere and you see it reflate a lot of the things that were falling now, I don't necessarily think stocks recover that easily this time just because they're so overvalued and you know we're so close to the end of the whole fiat currency experiment that I wouldn't say buy the dip you know the next time the S&P500 drops by 10% that isn't necessarily a buy signal but it is a signal that the Fed is going to start easing again, so I think that based on what happened the last two and a half to three times around the stuff that you buy now as a safe haven may get whacked along with everything else in the early stages of this process but they'll rebound almost parabolically after the Fed starts easing again and I think you know the reason why this is such a a big decision point in 2022 is that it's completely possible that people realize finally that the Fed is never going to be able to tighten you know and when they try it yet again, it fails yet again, because the financial markets crash and the Fed immediately backtracks and starts easing in other words they give us negative interest rates or QE on a scale even bigger than what they've done in the past, people realize that that's it you know that is our future we have easy money to the horizon now because the Fed has proven over the past decade and a half that it just can't tighten anymore you know the financial markets won't let it and if Fed does try to tighten and financial markets do tag that that's systematically dangerous, that's not just a bear market in equities that's a the potential destruction of the entire financial system as it's currently set up, so when people realize that this whole oh you know daddy's going to come home and take care of stuff we'll have adult supervision in the financial markets when that's all over you know when the guys in charge cannot fix what's wrong, then you see a huge change in market psychology and that it's going to create a very different world from what we've seen in the last decade and it's going to be a very disturbing world for people who have trusted the government by holding on to dollars and assets that are based on dollars
Dunagun Kaiser: What would you say to someone who asked to push that question a little bit harder and said once it's revealed that that sugar daddy can only keep flooding out cash and currency creation as the remedy and dropping interest rates and cannot tighten rates and cannot pull back on their you know purchase programs of inflating the Fed balance sheet, why wouldn't they markets just reacted: okay great we're in candyland mode forever we're not going to have the tap is not going to be turned off, why wouldn't that just be a celebratory pedal to the metal for continuation of the bubble of everything rather than causing a loss of confidence?
John Rubino: Well because probably what comes along with the Fed's capitulation is inflation continuing to increase in other words if the Fed tried to control inflation and completely failed then market psychology would say that we're in an inflationary environment forever now in other words they can't react to inflation in ways that will control inflation anymore therefore prices are just going to rise forever, so you see a lot of the money that that in past Fed easing cycles have gone into financial asset prices in other words they went to bid up stocks, bonds and real estate a lot of that money is liable to flow into inflation hedges, on the one hand regular people are going to go to Costco and they're going to buy a year's worth of toilet paper and big bottles of whiskey and whatever else it is they know they're going to be buying and you know they used to buy monthly well this time they're going to buy it all at once which will push prices up even further which will cause more panic buying, so you know you risk a kind of that death spiral in the value of fiat currencies that we've been talking about because people just panic and decide they're going to buy all their stuff right away and at the same time you get investment capital flowing into things that probably benefit from that and that is farmland, really well chosen rental houses, energy assets and gold and silver you know the real asset side of the investment spectrum tends to attract a lot more capital when you have this kind of inflationary phase change you know they call it inflationary expectations basically that's the Holy Grail of the Fed they want well anchored inflationary expectations because that allows them to fool us all into thinking things are okay if we assume that inflation is going to be low well if we assume that it's going to be high and rising that's the opposite and that's exactly what these guys are terrified of but that's what we might get after the next Fed capitulation and that's a whole different ball game because then well you know the analog is the 1970s when things basically seem to spin out of control you know, we had double-digit inflation and we had to fight that with double-digit interest rates and so we survived the monetary crisis in the 1970s by raising interest rates to literally 16%, 18%, 20% depending on the instrument and once people realize we can't do that anymore then that changes everything, you know we came out of the 1970s into the 1980s which was a relatively healthy stable environment for investing, but we won't do that this time because we don't have any tools left to fight rising inflation and so that is liable to change everything it will give us, you know the 1970s for a little while and then maybe Weimar Germany after that you know it's hard to say what comes after that because panic is a very hard thing to predict it's non-linear you know, it's a chaotic situation and we're very likely or at least it's very possible that we'll have some kind of a financial panic based on rising inflation and falling currency values next time around
Dunagun Kaiser: Just to make sure that this is clear to me and to everyone here what you're talking about when the public psychology comes to grasp that inflation is here to stay or it's going to be a major factor for a period of time the idea is that people who are earning and setting money aside, currency aside, dollars in the bank or in bonds or savings or certificates of deposit or that sort of thing will suddenly realize that saving currency, saving dollars and thinking I'll use this later to buy something I need later is a loser's game at that point because those dollars are going to be devaluing so quickly that you will not be able to buy much in the future therefore you're going to try to grab the real stuff now and get rid of your dollars as quickly as possible and it's that sentiment shift of people wanting to get rid of their dollars because they see them as a wasting asset and instead to grab real things that then can cause a buying frenzy on real things is that what you're is that the point
John Rubino: That's definitely the mechanism except I think a lot of people won't see it that way they won't think oh my dollars are becoming less valuable they'll think oh my god the price of milk and eggs and bread and used cars is going through the roof so I better buy those things now because I know I'm going to need them and so that's the same thing as saying my dollars are collapsing in value, but I think most people tend to focus in their lives on the prices that they have to pay and when those prices start to soar that changes everybody's behavior, so you know it's basically the same thing said differently
Dunagun Kaiser: Well it's interesting because I think what you're pointing out is in the face of basically the currency which people have confused with money in the face of the currency failing us, it's failing its promise of in fact it's one of the one of the missions of the Fed is to maintain a stable currency and the failure of that is not recognized for what it is and you and I were talking before we got started on the failure of lots of major institutions and what I mean institutions is not just organizations, it's pillars of our civilized culture that are failing us and you talk you touched on it just briefly about loss of confidence loss of trust and we interviewed James Rawls the founder of survivalblog.com and he talks about we are living in the Age of Deception and Betrayal, plan accordingly, relocate accordingly, invest accordingly, so can you talk to us about what are what you see as the major basically failures of major institutions that are going to lose, either are losing or have lost or are in the process of losing their confidence and trust with the ordinary people and how that's going to impact us
John Rubino: To start with the financial side because that's the thing that's been going on long enough or longest two and a half decades ago the big banks basically took over the government and since that time they've been running the financial system to benefit themselves at the expense of everybody else and that's not something that people really see you know because nobody knows what a 1% interest rate means what it what it actually means is that the banks have lowered interest rates to a point where they're very profitable and their favorite clients get richer and richer, while savers can't earn anything on their savings, so it's a an income transfer from regular people to the very rich and people don't completely, necessarily understand that mechanism but they do know it's harder and harder to save and they do see people getting richer and richer out there, so the financial system is generally starting to be understood has failed us massively. What's happened in the last couple of years is that almost the last sector of the the ruling class that we've really trusted, the public health sector has kind of done the same thing you know you could look at the things that have gone in the last couple of years I mean you know instead of a public health crisis basically a business scam you know if you follow the money, this virus emerges that was probably created via US research funding that just happens to play into the strength of big pharma because they just happen to have vaccines on hand which make them hundreds of billions of dollars over the last couple of years at the expense of small businesses all around the world, you know we wiped out half the small businesses in the us while enriching a handful of billionaires and the political class and big pharma and you know that I think is not something that a lot of people completely get but I think a lot of people are getting bits and pieces of it and figuring out that this isn't a good deal for them you know the people who work online and the political class and the big tech millionaires and big pharma are all making money, well you know a regular person's kid might still not be back in school yet if they spend a year being homeschooled effectively and then when they went back to school they had to wear a mask which was a nightmare for them and your small business isn't working, you know it's been a nightmare for regular people and kind of a picnic for the one percent and people are starting to get that too so that's kind of a combination of the financial system and the public health system failing us in an epic way and there's very little left beyond that except geopolitics, which we seem to be screwing up on a huge scale too you know, the Afghanistan exit kind of made a mockery of all the people who died over there trying to nation build or whatever it was we were doing over there, you know the people our soldiers went over there kind of believed in the mission and it turned out to be really nothing, you know it turned out to accomplish nothing all their sacrifice, meanwhile we're picking fights with basically half the rest of the world it seems right now you know the Russia and Ukraine could be a shooting war any morning that we wake up and see the news and China and Taiwan are looking the same way and the US is liable to get sucked into both of them and which means our soldiers are going to go over there and die for something that I think a lot of people realize is not very important, so it's easy if you're paying a minimal amount of attention to conclude that nobody's working for us anymore and all the big systems and the people running the big systems are working for themselves to enrich themselves and they're doing it at our expense so I think you know the trust horizon in other words the distance that you're willing to go out to trust people is shrinking now, you know it used to be the CDC and the NSA and the military and the big banks you know we used to trust those guys and the Federal Reserve at one point we trusted them all now we don't anymore so now it's friends, neighbors, possibly the local government if you know those people and can look them in the eye and shake hands with them, local farmers and other people that are close enough that we can get a sense of who they are and we can tell when they're ripping us off and you know that plays out in the financial system as a loss of trust in the currency that is being run by these guys that we no longer trust, so it's very hard to rebuild something like that once you've broken it, so you know it could be decades before people come around to saying: "oh all right, I guess possibly the central bank knows what they're doing" or I mean you know maybe the pharmaceutical companies can be trusted and you know it may never come back so I think we're at the beginning of or we're in the process of a very serious phase change in our perception of the world as it is being around and the people running it
Dunagun Kaiser: I would like to add to the list of disenfranchised or I guess institutions with whom people have lost trust and that's the mainstream media who are supposed to be the watchdogs breaking the news on all this stuff as well as even school boards and education system in addition at all levels. One of the comments that we got from Alex Newman who's in who's an advocate for parents rights and for constitutional freedom that sort of thing in the face of government overreach is that the next stage of awakening is not that these systems are failing but that these systems as you pointed out have failed us because they are doing, they are succeeding to do exactly what they were designed to do whether that's the educational system designed to put a wedge between children and their parents and have the children become wards of the state and become dependent with the idea of lifetime dependency as a norm and no expectation of privacy that sort of thing or the mainstream media the way it's been consolidated for decades and decades my parents were seriously concerned about this back in the 70s and the 80s and I didn't know why they were getting so worked up about the consolidation of newspapers back then or whatever but the idea being that there will be one message and you will receive it and accept it and I'd learn from them to be skeptical of when you start to see this one message coming out, so I think I'm not sure that that awakening has happened yet, people might be sensing as you're saying that the 1% are winning and most of us are losing okay that we got that but I'm not sure that the next awakening of and that's exactly how it was designed to be from the founders of the education system or the founders of the central banks or the founders of the fill in the blank. Your thoughts on that level of awakening do you think we reach that, how or what percentage of the population has to reach that before it really makes it makes a difference it actually can affect the trajectory of the way things are going?
John Rubino: Well you know I think you're right the media and the educational system those are two very important parts of the story and I think with the media polling shows that nobody trusts the media anymore, but I think there's a really hopeful trend within the media which is independent sources bubbling up and gaining an audience that isn't controlled by corporations and doesn't have as its business model trying to enrage people so they stay engaged you know and so you know look at sub stack right now where a lot of really good reporters are going from the mainstream media, you know they're leaving the New York times or Rolling Stone or whatever and setting up their own sub stack feeds that people can subscribe to and they're doing legitimate journalism or your show for instance is a good example of that, you have an audience that knows that you know even if we get something wrong here we're telling the truth as we see it you know we're trying to figure things out in an honest way and to the extent that that becomes a bigger and mere part of the media, I think we have kind of an organic shift going on just like in sound money you know if people leave fiat currencies which are in a lot of ways evil and are quickly being destroyed and move over to sound money like gold and silver, they're increasing the amount of truth in their lives and when they switch from MSNBC and CNN and Fox to Glenn Greenwald and Matt Tybee and Jimmy Devore and you, the same thing's happening on the media side for them you know, they're getting the story straight at least as the people giving it see it and I think that's happening organically, so I that's a really hopeful thing to me that I think we could have a completely new media ecosystem pretty soon based on an honest attempt to find the truth and an audience that understands that process and is making choices accordingly and same thing with the education system you know a lot of charter schools are coming along and I think that's a new market for charter schools by the way is actual education instead of indoctrination and a lot of parents are suddenly see you know one of the good things that came from the last year's lockdown is that parents you know whose kids were being taught online by the schools actually could stand behind their kids and look on the laptop to see what was actually happening and they were appalled by a lot of what they saw, so you've got an awakened generation of parents out there who are going to make better educational choices too, so you know I think it's going to be a really rough decade, but I see hopeful signs everywhere of the marketplace of ideas and the marketplace of investing moving in the right direction as people educate themselves, you know it took a lot to convince people to start paying attention, but the last couple of years have finally done it and I think there's a critical mass of people out there making good decisions and that's going to change the marketplace on a lot of different levels
Dunagun Kaiser: Yeah one area of risk related to that is another institution if you want to call it that it's certainly that the idea that the internet was going to be this level playing field, this equal information interchange opportunity where anyone who had a a voice could go ahead and speak and others could listen if they were interested and we've certainly seen in the past couple of years that if the message that you have to share is not favored by the elite that you can be de-platformed and silenced or at least they'll attempt in pretty powerful ways to do that, so some of those embers of hope that you identify might be dependent on access to that platform and so I think that that's another battleground that we're facing is the battleground for the equality of access to basically having a voice in the public square and even our channel as people know we used to be only on YouTube now we're also on Brighteon, Rumble, Soundcloud and we're looking at branching out into some additional places, so that we can talk about the things that matter in people's lives and not suddenly find ourselves unavailable to people but folks if you go to libertyandfinance.com our homepage, make sure that you sign up for our free mailing list there by putting your name and email address in there we'll make sure that you get all of our interviews including those with John a couple of viewers questions if we could John related to this you've talked about assets like safe haven assets that can come into favor in the event of a dollar collapse again your website dollarcollapse.com, so this is right up your alley Irishja2 says: "Why are people under appreciating gold and silver especially in relation to other assets such as bitcoin?"
John Rubino: Gold and silver especially gold what gold does is just sit there and that's not a weakness that's a strength because it sustains the buying power of whatever you put into it in other words if you buy a $1,000 worth of gold 50 years from now that gold is going to buy you the same amount of real stuff as your $1,000 did today now in a bubble market when things are going up you know 80%-90% a year in a lot of cases which is what's happening with tech stocks just sitting there doesn't seem very exciting it's on the downward sloping part of the cycle where you know when those high flying stocks you bought are now down by 0.8 that you look over at safe haven assets and go "I wish I was in gold", you know so that that's basically the way the process always works gold doesn't look exciting when we're very optimistic about our tech stocks because they're soaring now is an emerging asset class cryptos in general are and we're still trying to figure out what they are and how they how they fit into a future monetary system right now they're being treated by the marketplace like tech stocks in other words cryptos are an ecosystem of several thousand different coins just like in the 1990s there were all these Dot-Coms out there and money is pouring into the sector because first of all it's brand new and it's exciting some of them have gone way up and that's very exciting and we don't completely understand what they are so it's easy to read whatever we want to into them and I you know it's completely possible that cryptos end up playing a big role in the future monetary system but they are not the same thing as physical precious metals you know it could be that they're complementary at some point because cryptos can be a digital asset that as long as the internet is up and running have some value as currency as well as just an asset you can save they will never replace physical gold because that's something that actually exists in this world and it's not dependent on the internet, it's not depending on a hard drive, you know still being available and you're remembering the past report nothing like that, so it's completely possible that cryptos have an extremely volatile few years here you know they've gone up like tech stocks and if the stock market tanks they could go down like tech stocks and we've seen bitcoin do that several times and in its short existence so far so I think that's still to be decided where cryptos end up in the future monetary system, but I think that there's no reason why they shouldn't be can considered as part of the real asset universe along with gold silver and all the other things, but I don't think they replace gold and silver, you know you need physical assets that you can have on hand and use in a time when something like that becomes necessary, so having said all that you know gold still has its parabolic rise out there, in each cycle towards the end of the cycle when people get worried about inflation and they start acting accordingly with their money gold and silver goes straight up for a couple of years and we will see that at some point, so right now it's preserving purchasing power but there will come a time when so much money pours into what is a very small market in precious metals that they just take off and you see you know go silver go from here to $200 an ounce gold go from here to $5,000 an ounce and the gold and silver mining stocks go up you know quite a bit more in percentage terms than gold and silver do, so you know it's going to be a really exciting market precious metals, but that usually comes towards the end of a cycle and in this case I think it comes or it begins when the Fed backtracks on this latest tapering, you know when they take it back and they say you know what we're gonna cut interest rates negative one percent sorry about that the last six months of attempted taper, that's when gold and silver will just go straight up and so they'll give you a lot of excitement if you're patient enough to wait through the period that comes before that
Dunagun Kaiser: A couple of viewers questions that are tightly related to what you were just talking about and then I think we'll be out of time but again with you as the founder of dollarcollapse.com, Andres Lopez says "How fast can a dollar collapse actually Happen?"
John Rubino: Well you know the old saying from I think it's Ernest Hemingway about a friend of his went bankrupt that that he did it slowly at first and then all at once and that in financial markets that's frequently how things happen you know you just drift along and imbalances build up and they build up but they don't seem like a problem and then all of a sudden they're really a problem and everything just reprices, you know we've seen that in the stock market over and over again and we see we saw it in real estate in 2008-2009 when houses that had been going up forever went down by 30% or 40% or 50% I think we'll see the same thing in the currency markets at some point and you know again it's liable to coincide with the Fed giving up one more time and going back to easing you know if we have negative interest rates in the US with 5%, 6%, 7% inflation, that's a an unprecedentedly crazy financial market and it's you know it's going to reflect badly on the currency that's the bedrock of that financial market so you know I hate putting dates on predictions because that's a recipe for a bad paper trail out there but you know 2022 could be the year when a lot of these decisions get made and kind of set the stage for this you know final move in the currencies and final move in precious metals you know we could start that process in the not too distant future
Dunagun Kaiser: So here's a follow-up question thank you for that from Debbie Nugent who says: "Once the collapse happens will people still be using the dollar how many dollars should we hold when this event occurs?"
John Rubino: Well you want to have some cash on hand just because it's a very liquid thing to transact with so don't completely get rid of cash but cash will get a lot less valuable when it happens, see probably what we'll do I mean and this is just probably because there are a lot of different ways that this can go but we'll probably have what's called a currency reset where we just change the value of the dollar you know in Latin American countries for instance they do that a lot they lopped three zeros off of the peso and then issues some new paper money and everything goes on we'll probably do something like that here where we say okay henceforth the dollar is just a name for one ten thousandth of an ounce of gold and what that means is the dollar has just lost a ton of value on the day they do that so you don't want to have too much cash because that cash will be way less valuable which is to say the prices of things will go way up immediately price, you know milk might go from $4 a gallon to $9 a gallon and everything else will go up accordingly so you know it's how much cash you should have on hand is really situational you know every person's situation is different you want to have enough to pay some bills if you need to, so you know a couple of months of expenses in cash on hand would be fine, but with the caveat that cash might towards the end of this process become a lot less valuable, but you don't want a ton of cash you know that's not something that you put most of your savings in in this kind of world you know you want your bank accounts to be as minimal as they can be to pay your bills and then you want the rest of that money in real things that governments can't destroy on a on a whim
Dunagun Kaiser: Yeah we've been talking with a lot of baby boomers who have homes that they've paid off and they're going to be selling or ranch land that they're going to be selling off or businesses they may be selling or that kind of thing or they've had a 401K that's been building and building and building for decades and now they realize all of those things are riding on the bubble of everything, they're riding on this faltering currency, they're riding on the potentially collapsible bubble of the stock or bond or real estate market and they're wondering where do you go to not lose big time, should there be a reset in any of those markets for people who want to keep searching for the right moves to make in this ongoing dollar collapse environment you as the founder of dollarcollapse.com help them know would you John how they can get plugged in
John Rubino: Well yeah, I run dollarclouds.com if you stop by and put your email address in the join our mailing list box at the top of the page I'll send you whatever I write for free and then I run a links list there that's just continuously updated with the headlines that relate to the stuff we just talked about
Dunagun Kaiser: We're grateful always for your visits here with us on Liberty and Finance, it's been an increasingly active time of concern and I would say awakening and this whole lockdowns and everything that we've been through for the last year and a half I think has really opened up a lot of people's eyes to realize that this is not the Garden of Eden and things aren't as they were told they were and the institutions that we've been trusting to give us valid information and to take care of our business as our trusted public servants have not been serving us but themselves as you mentioned, so it's a time of great awakening among the people and we're grateful for your help in that always here on Liberty and Finance, thank you John
John Rubino: Thanks Dunagun
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