September 20, 2017
THE REAL WORLD OF MONEY
Andrew Gause may just be the top man anywhere for the highest quality analysis into the world of money we all live in. Andrew is a currency historian, an internationally recognized expert on the United States monetary system. He’s written two books, “The Secret World of Money” and “Uncle Sam Cooks the Books”. You can order these books as well as speak to Andrew personally. As a One Radio Network listener, you’ll have highest priority in his phone time. His # is 800.468.2646
-President Trump’s policies indicate he’s been persuaded by the globalists that it’s best to allow the industrial/military machine to continue.
-$500 hammers hide what they’re really doing with the money.
-George W. went from $5 to 10 trillion in bonded debt, Obama went from $10 to 20 trillion, Trump in line to go to $40 trillion.
-Dollar index started 2017 at 102, now is 91.
-Amazon’s new model is to expand as far as they can. $14/month to get your groceries and goods delivered. They run on borrowed money.
-Walmart’s business model would target a particular department and make that their loss leader, eventually driving competition out of business. Started with cheap eyeglasses, then moved on to hardware.
-Apple borrows the money they need and keeps their own assets in reserve.
-Treasury needs $500 billion in next 3 months just to pay the bills. Money borrowed from the Fed counts as new money, so Treasury bonds become instant collateral for more borrowing. “New money” as bonds will be entering at rate of $160 billion/month for next 3 months.
-Congress’ job is to set the standard for what a dollar was. The standard used to be the price per ounce of gold. Lost that discipline in 1933.
-Petrodollar history with Bretton Woods which forced people to buy their oil with dollars. Creates a demand for the dollar and keeps it strong. Libya’s Gaddaffi and Iraq’s Saddam Hussein thought they didn’t want dollars and got “liberated”. Iran, Venezuela, other countries are now trying to break away by using a basket of currencies.
-We’ve doubled dollar denominated debt in the last decade.
-Venezuela has the world’s largest oil reserves.
-Other countries aren’t supporting Trump’s tariff against China.
-Andy predicts Congress will not pass any of Trump’s proposals will pass this year. Business as usual.
-Started with 6 former Goldman Sachs guys as Trump administration insiders. Down to 3 now, including Gary Cohen.
-Who would believe us if we say we’re not going to intervene in another country? We run such an enormous trade deficit that we need to convince other countries to stay in our camp. We use our military to enforce our balance of trade. Reference General Smedley Butler’s comments on banana wars.
-Inflation is an increase in broad money supply in relation to the GDP.
-Long term mortgage delinquencies are up, especially in NY, NJ, and Illinois. People are leaving and no growth to support people paying their mortgages.
-People working off the books such as illegal immigrants are undermining the economy.
-Prices usually rise in response to market conditions, not in advance.
-Brad asks about “The Economist” magazine saying in 1988 to get ready for a world currency 20 years down the road. Andy says it will be new to everyone but the US. “The Economist” belief: What is above is below. The Rothschilds run “The Economist” magazine. A 2017 Economist cover had tarot cards on it, one indicating Trump as ruler, another that judgment is coming to the US. Suggestive of a long-term plan for a cataclysmic event to happen this year. Maybe on the 23rd? They programmed us over the years, starting with 1984, portending such an event. HAARP-caused destruction? Yesterday’s Mexican 7.1 earthquake was on the exact anniversary of their 9/19/1985 earthquake.
-Pensions in default. Last state bankruptcy was in 1841. Get out of government pensions now with a lump sum payment, if you can.
-FRED says 2017 personal savings rate is 3.8%. 69% have less than $1,000 in savings. 1/3 have no money. Saving is good, but not in Federal Reserve notes. 100 billion people are living paycheck to paycheck.
-Listener comments the price for cars has been coming down. Is this occurring in the vintage car department? No. Learn about vintage cars first before buying one, are a specialized market. They require constant attention – can’t just hold one without doing anything to it.
-Morgan asks about adjustments made in 1930s to the 1917 Trading with The Enemy Act because we had to bail out the Bank of England for $300 billion because of their WWI debt. A reverse Robin Hood, which continues to this day. Media gave hot coverage then to what happened to people who resisted turning over their gold. Illegal to own gold for a period.
-No individual ownership except what the government allows. 1975 93rd Congress #549 says no such thing as private property. That legislation passed right after Nixon closed the gold window.
-We printed so much paper it caused the US government to go bankrupt. Had to reorganize.
-Listener asks why Andy doesn’t go on Alex Jones anymore. Because ORN is his regular gig.
-Listener calculated the monthly cost of his supplements, eliminated all of them but sulfur, and bought himself a 1959 Spirit to restore.
-Ray Dalio of Bridgewater Capital hedge fund gave 2 criteria for currency: you can make transactions in it because it’s a medium of exchange, and it’s a storehold of wealth. Bitcoin fails both criteria, it’s a bubble. It could be a currency, but it is too speculative and will stay private. There are also other cryptocurrencies.
-What if the boys adopted block chain within an open public library and threw the cryptocurrencies under the bus? The dollar is already 96% digital.
-China gave all bitcoin exchanges in the country 90 days to explain how they’re going to close down their exchange. Plus leave behind the data of who owns bitcoins.
-India has a huge war on cash, said you can’t use it anymore, but is going to have digital block chain.
-China and Japan said they aren’t going to buy treasuries any more. Their purchases are down a bit, but is the 6th month in a row where both countries are buying more debt. If the dollar is strong, China can undercut us and beat the price of domestic US manufacturers. It is in their interest to pile up the dollar to make it worth more.
-There is $517 billion in unpaid balances of homes in disaster areas. Can the banks stand this loss? How many losses are insured? Harvey cost $150 billion dollars – could be worst ever in dollar destruction. 95% of people in Houston didn’t have flood insurance. Irma estimated to cost $50-100 billion.
-In New Orleans, post-Katrina, unemployment went from 10,000 to 100,000 in 3 months and stayed that way for a long time. People that paid off their mortgages are stuck taking the casualty loss on their own.
-Kyle Bass of Hayman Capital has been shorting the yuan and lost a lot of money. He says the Chinese corporate sector, massively leveraged, is overdue for a big collapse, like the Big Short. $40 trillion in assets against $2 trillion in equity. Equity is assets minus liabilities. If the market moves 5% against these companies, it wipes out the equity. Part of Andy’s predicted disorganized fall. China has 1.6 million people, the most populous nation in the world.
-Iran’s leader called rogue newcomer Trump ugly and ignorant. Houston and Florida could sure use the $180 billion we gave to Iran.
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Andrew Gause Currency Historian and The Real World of Money, September 20, 2017 ONE
Andrew Gause Currency Historian and The Real World of Money, September 20, 2017 TWO