The Overlords of Finance

Jim Rogers has just taken the stage.

His presentation title is one of the more direct ones…and it’s intriguing too — especially considering this man is worth around $300 million.

It’s called: How I see the world today and what I am doing about it.

You’d like to know, right?

What’s he actually DOING with his money right now? What kind of gold is he buying? What stocks? Hold tight for tomorrow morning’s edition of Markets and Money, when we’ll cover our most special guest’s speech in full detail.

Fair warning, though, we won’t be able to reveal absolutely everything he recommends. But we don’t need to. You still have today, and tomorrow up until midnight, to claim a huge 20% discount on the full video recording and transcripts of the event. That gives you less than 48 hours. Claim your copies here.

For now, let us bring you up to speed with events so far…

Something isn’t quite right

And no, we’re not talking about the effect of the tropical heat and humidity on our Melbourne brows.

We are talking about financial repression.

This, in itself, is an abstract concept.

You can’t see it or touch it.

But you feel it.

Kris elaborated with his opening remarks…

You are here for a reason,’ he said. ‘And we’re holding this event for a reason. Exactly what are those reasons? No doubt there are many, based on your individual wants, needs, fears, aspirations and goals.

However, even with this diversity of reasons, I think I can sum them up in one simple way.

It’s fair to say that all of us in this room look at the world economically, politically, socially, and financially, and we come to a similar conclusion: that something about it just isn’t quite right.

We may not know exactly what it is, but we know something is amiss. And, therefore, you’re seeking a solution.’

That’s what we’ll achieve over these two days. But before we can seek a solution, you must define the problem.

And that’s what this morning’s opening presentations were all about.

Proceedings kicked off with Vern Gowdie, editor of The Gowdie Letter and Gowdie Family Wealth, and author of the infamous book, The End of Australia.

He called his speech The Mirage.

Why? Because a mirage is an illusion, with no truth or substance.

And that, said Vern, is the financial system we find ourselves investing and saving in today.

Taking the words of former US Secretary of Defense, Donald Rumsfeld, he said there are ‘known knowns’ in the financial markets. These are things we know that we know. There are known unknowns, too. That is, there are things that we know we don’t know. But there are also unknown unknowns. There are things we don’t know that we don’t know.

Vern’s point was that we are now in a new era, which began in the 1980s. But it’s more a cult than an era…the cult of the central banker. They’re the self-appointed overlords of finance.

Central banks believe they know it all. But they don’t. And Vern’s big take-away was that you can immediately improve your chance of surviving this new era of repression by recognising what you don’t know…respecting that fact…and concentrating on what you DO know.

And what is it that we know?

That there’s only one way to go broke…and it is ALWAYS too much debt.

It’s like if your morbidly obese,’ said Vern. ‘You don’t which donut or slice of pizza is going to kill you. But you know one of them is going to kill you.

This is the “known unknown”.

An economic heart attack is in our own future. I’m planning on the worst but hoping for the best.

How’s he doing that?

Cash.

Cash held in multiple banks to remain under the Government Deposit Guarantee of $250k per taxable entity per Authorised Deposit Institution.

But what cash, and in what currencies?

He and his daughter Grace will offer more details in their breakout session tomorrow.

Again, you can see that session in full, and with a 20% discount, by clicking here.

An old friend returns

Next up was Dan Denning…

He began by defining financial repression, and how it affects you in a much more direct way than you might imagine. As he told the audience…

It’s an undeclared total war on your freedom to save, spend, borrow invest, or loan your money with whom you want, when you want, and where you want.’

You are surrounded by predators. Some are in government…some in financial services…some are in a few big, private sector companies who have stopped serving their customers and begun preying upon them. They all want your money.

That’s why this is war.

War against the people. War against you.

But as we said, if we can identify the problem, we can deal with it.

How does Dan suggest you deal with it?

In six ways…

  1. Move money to jurisdictions where financial repression is not necessary.
  2. Avoid markets with high forex debt.
  3. Seek quality growth stocks in the technology, commodities, and energy sectors.
  4. Sell bonds — specifically $6 trillion government bonds with 10-year maturities or more.
  5. Buy long-term value. This hasn’t changed. Buy good businesses that are creating real wealth and value for investors.
  6. And buy gold…while you still can.

Two dates to look out for

Dan’s now the publisher of our UK affiliate MoneyWeek Research in London.

He was right in the thick of it during the UK’s Brexit referendum.

The mainstream media had the Remain camp firmly in the winning seat. Everyone was taken by surprise.

With that experience, Dan had this to say on the upcoming US presidential election:

Don’t be certain that Donald trump won’t be elected in the United States. Mainstream media has been consistently wrong about what the electorate does.

If Trumps gets in, it will take everyone in the media by surprise.

The first date to watch out for is 12 days from now. That’s when the US public goes to the polls.

Then, we have 74 days until the new president is inaugurated.

That’s a three-month period of maximum instability.

So get ready!

The morning ends with Satyajit Das on China

Generally speaking, when bankers are Heroes of the Revolution, something is odd in the economy.

The audience cracked up as Das commented on China’s financial tactics.

But it was a serious point. And it was good to get a perspective on China, arguably the greatest financial manipulators of the last two decades.

In Das’ words…

As an accountant from way back, I ask, if China is growing at 7%, but losing 4–6% to achieve it, shouldn’t we deduct the 4–6% from the 7%?

So I put to you that Chinese growth figures have never been real. Especially so since 2008.

This is a country that has GDP per capita growth 60% of Europe, but has the same debt growth.

In summing up,

Long term, China will either have an economic crisis, or a political one.

And as he explained, this event will have huge consequences for Australia…

30% of Australian exports go to China. But it’s really more like 50%, because many of our exports to other countries are part of supply chains that end in China.

A lot to think about.

But that’s fine.

As many speakers have reiterated, the biggest asset you have is right between your ears.

So we plan to use it.

Jim Rogers, Sam Volkering and Jim Rickards are all still to come.

More tomorrow!

In the meantime, find out how to get the 20% ‘early bird’ discount on the full recordings package: CLICK HERE.

Cheers,

James Woodburn,
Contributing Editor, Markets and Money

PS: As part of Port Phillip Publishing’s Great Repression conference taking place this week, we’re giving three lucky people the chance to win a genuine 1oz Silver Coin. To find out more, click here.

 

From the Archives…

Never Smile at a Crocodile
By Vern Gowdie | 26 October, 2016

Your Thoughts on the Property Cycle
By Greg Canavan | 25 October, 2016

The Chinese Credit Market Might Be the Biggest Gambling Ring in the World
By Greg Canavan | 24 October, 2016

The Trends Shaping Our Future
By Vern Gowdie | 22 October, 2016

Is This a Bearish Sign for the Property Market?
By Greg Canavan | 21 October, 2016

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