This Trump Economic Advisor Wants America to Go Back to the Gold Standard

Source: Fortune

“In terms of gold being involved, some people may think of that as a throwback, but I see it as a sophisticated, forward-looking approach because gold is neutral and it’s universal. It’s a well-accepted monetary surrogate that transcends borders and time. If you look at the foreign reserves of the most important countries, they keep them mostly in gold. I don’t want to read too much into it, but it proves that gold is not some barbarous relic…A gold-backed bond was first proposed in 1981 by Alan Greenspan. I think the U.S. should issue them as an experimental pilot program, similar to the TIPS bond, that compensates people who are concerned about the future value of the dollar. For those who are concerned about a big financial meltdown, these bonds would give them some insurance, as gold tends to rise in price during periods of financial stress. The Chinese would welcome this development, because it would likely be a stabilizing force for the value of the dollar and protect their dollar holdings. I also think they are the most likely country to provide a parallel instrument. If China were to offer a similar instrument where five years from now you can get back x amount in yuan or an ounce of gold, five years from now both the U.S.-issued instrument and the China-issued instrument are worth the same thing, an ounce of gold. So now you start getting projections of a stable exchange rate determined by market forces. If this practice starts to spread to even more countries, you would start to see the semblance of a future stable exchange rate system with those exchange rates being determined by what market forces believe about the future value of those currencies.”

Brace Yourself: The Next Epic Collapse Could Be Weeks Away

Source: Giambruno/Casey Research

“There wasn’t a group of people more wrong about the 2008 financial crisis than those at the Federal Reserve. Mere months before the disaster hit in earnest, the nation’s highest economic and financial officials were vocal that there was nothing to worry about…Today there are clear indicators of a coming crisis… in the auto sector… the housing sector… and in the economy as a whole. Despite this, Fed Chairman Jerome Powell recently said, ‘I don’t see a recession [in 2019].’….Some people think the Fed saved the day by pushing pause on its rate hikes. After all, it claims it’s doing this as a precaution ‘in light of global economic and financial developments.’ But I don’t buy it. In fact, this whole charade proves to me that a crash is already underway – as the Fed inadvertently admitted we’re on the cusp of big problems. After all, why would the Fed stop tightening monetary policy if it thinks there’s no chance of a recession?….After nearly six years of 0% interest rates, the U.S. economy is hooked on easy money. It can’t even tolerate a modest reduction in the Fed’s balance sheet and 2.25% interest rates, which are still far below historical averages….In the weeks ahead, we will see shockwaves spread out, not only through the car and housing industries, but the economy overall. That’s why now is a good time to take a close look at your portfolio. Look at every position you own, and ask yourself: Would I be comfortable holding this through a recession… or even a crisis?”

The Terrifying Potential of the 5G NetworkNew Yorker

“Two words explain the difference between our current wireless networks and 5G: speed and latency. 5G – if you believe the hype – is expected to be up to a hundred times faster….One estimate projects that 5G will pump twelve trillion dollars into the global economy by 2035, and add twenty-two million new jobs in the United States alone. This 5G world, we are told, will usher in a fourth industrial revolution. A totally connected world will also be especially susceptible to cyberattacks….Ransomware, malware, crypto-jacking, identity theft, and data breaches have become so common that more Americans are afraid of cybercrime than they are of becoming a victim of violent crime. Adding more devices to the online universe is destined to create more opportunities for disruption. ‘5G is not just for refrigerators,’ according to Robert Spalding, the senior director for strategic planning at the National Security Council. ‘It’s farm implements, it’s airplanes, it’s all kinds of different things that can actually kill people or that allow someone to reach into the network and direct those things to do what they want them to do. It’s a completely different threat that we’ve never experienced before.’….According to James Baker, the former F.B.I. general counsel who runs the national-security program at the R Street Institute, ‘There’s a concern that those devices that are connected to the 5G network are not going to be very secure from a cyber perspective. That presents a huge vulnerability for the system, because those devices can be turned into bots, for example, and you can have a massive botnet that can be used to attack different parts of the network.’….In February, Senator Richard Blumenthal, a Democrat from Connecticut, took both the F.C.C. and F.D.A. to task for pushing ahead with 5G without assessing its health risks. ‘We’re kind of flying blind here,’ he concluded. A system built on millions of cell relays, antennas, and sensors also offers previously unthinkable surveillance potential….’What is existential to democracy is allowing totalitarian regimes – or any government – full knowledge of everything you do at all times,’ says Spalding. ‘Because the tendency is always going to be to want to regulate how you think, how you act, what you do.'”

The risk of loss in the trading of stocks, options, futures, forex, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and FX involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.