***Tomorrow: Full report on the increasing tokenization of Gold and its extremely important impact on the world of commerce and investing for Prem members)***
Last week Vince sat down with Chris Marcus of Arcadia Economics to discuss Gold, Fed policy shifts, and most importantly, review Ben Bernanke’s 2015 book, The Courage to Act, which was Big Ben’s memorial to the genius that implemented QE thus rescuing US stocks no less than 4 times since his reign as tenure as Fed Chief started and whose effects continue to be felt to this day.
As Arcadia Economics is a Silver focused channel; The broadcast begins with host Chris updating viewer investors on Reyna Silver’s recent progress at their Medicine Springs Nevada Silver operation.
Jobs, Japan, and Jerome
After introducing Vince, the two briefly discuss the previous Friday’s labor report which was highlighted by slightly slowing job growth, but showed a continued widening gap between inflation and wages.
The jobs number may have been a small miss lower but the jobs themselves being added are waiters and bartenders while manufacturing jobs are being lost.. and so the internals on the job number were very poor. Timestamp
Gold and Silver took hits after those holiday releases when they reopened. But Vince feels some of that may have been in reaction to news out of Japan eschewing the predicted tight monetary policy pivot and remaining loose on their ultra easy monetary policy.
This, in combination with the Jobs number not being weak enough for the Fed’s taste domestically, may have given US longs cause to pause buying. Timestamp
But by far the book review section and associated Q&A were the highlight of the live broadcast.
Bernanke’s Book Review Q & A
About midway through the live audience Q&A, Chris and Vince field questions from Arcadia subscribers against a backdrop of Bernanke’s Book The Courage to Act being reviewed (LINK: 30:39 to 36:51)
Mr. Marcus runs through the increasing dedollarization news surrounding Gold’s strength and asks Vince for a take on it. “The Professor” feels a rug pull is at hand short term.
It’s real, its ongoing, and [the dedollarization] is not going away.. but it feels like the rug will be pulled in a week or two.. too many talking on it.
And pulled it was this last Friday….
But Vince strenuously opined that regardless of what happens dedollarization (while not ending its status as GRC) is real, and not going away. At one point he paraphrases Luke Gromen’s recent comments about Western buying power dropping and Eastern increasing, especially with regards to raw materials.
This is something Luke, Zoltan, Zerohedge, and others had been noting since Zoltan’s post Gold: "A crisis is unfolding. A crisis of commodities"was published a year ago. All discussed by the duo while Bernanke’s book flamed on in the background. Kind of appropriate…
Full Live Q&A Video:
Run time 57:20
Some Other Highlights:
Chris notes that Chairman Powell has himself admitted there will be rate lowering soon after inflation is gotten under control.
You are even hearing from the Fed Chairman that they are going to bring rates lower [on the heels of] bringing inflation down.. Quite the juggling act it seems like - Timestamp
Mind you, this is Powell’s ideal situation. Michael Hartnett believes the easing will be a tad more aggressive. Chris and Vince both wonder why Powell bothers raising rates at all if they are going to lower them so soon thereafter.
Ironically, a statistic is mentioned that Fed involvement actually increased volatility in the markets they are responsible: The Fed Adds Instability
Consider that volatility has actually *increased* empirically after the calamitous 1987 stock market crash.
This has happened despite increased Fed transparency, the invention of the Fed Put, and interventions by the Plunge Protection Team born post the 1987 crash.
