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
-Long history of the idea of a single currency.
-Productive inflation vs. compassionate inflation.
-Creating money is not inflationary if the money is used for productive purposes.
-Income tax was created in 1913 to tax the rich. Income was defined as profit severed from the capital. Wages were not considered income; they are a trade of labor for money. No populist protests because the non-rich had no capital or profits to be taxed. All changed now.
-High amount of US bonded debt is due in Trump’s first administration. We should have 50 year bonds and not bonds that are amortized in the short-term.
-US economy is built on trust and faith. We only have F16s and the military to back up the US dollar.
-In 1973 Saudis refused to sell us oil after we refused to pay in gold. Nixon/Kissinger got Saudis to not demand payment in gold in return for military protection.
-Gaddaffi of Libya wanted to be paid for his oil with the Euro. He was a threat to the US dollar.
-Yuan will now be included in the SDR basket.
-Listener calls with a question about the merits of leasing an electric vehicle.
-Differential cost of off-peak power vs. peak power. Tesla’s converter allows recharging at cheaper night rates.
-Leah from Colorado Springs is looking for good industries to invest in to support her in her upcoming retirement. Stay away from bond funds, annuities, which are dependent on stable interest rates. Andy likes emerging cutting-edge technologies – Google, Amazon, Tesla, robotics, a mix of financial stocks. Equities over debt. Gold and silver coins and real estate to balance out the portfolio. Oil is good.
-Susan has money to invest and wants to know where to invest it. Has stocks and bonds already. Andy recommends any tangible that is sensitive to inflation. In a rising interest rate environment, sell the bonds.
-People have parked money in MZM (money with zero maturity) since the 2008 crisis. MZM has doubled. Andy says people are waiting for a clear movement in something to give them confidence to invest again.
-The boys can give Trump grief by telling Janet Yellen to kick up the Fed rates.
-Listener asks about the wisdom of using cashed out CDs to help make house payments.
-Do REITs make sense?
-Present yourself as the manager rather than the owner of rental properties.
Volatility in home prices. Look for real estate in median home prices. If real estate market is a multiple of median home price, think twice. Industries can create a local bubble, e.g. Google impact on San Francisco area.
-Above $5 million in assets, need to have a trust. Below that, it’s optional.
-Climate change is probably real. But how much of it is man-made? The greed of cap and tax.
-Half of PhD economists are employed by the Federal Reserve. 1/3 of the other half work on contract to the Fed. How many work for the EPA? Andy wants to know. Hard to find doctorate economists that aren’t co-opted by the guv.
-Andy thinks the environmentalists rather than the government should be buying any land to be set aside for environmental purposes. Sell parks to private industry and then charge admission. No public golf courses either. Don’t make you pay for someone else’s enjoyment. Users should pay for what they use and private industry should provide it.
-Should NPR and PBS be supported by our tax dollars? PBS may have made sense when we only had 3 channels.
-Listener says parents are Dave Ramsey fans. People with debt looking to get out of it are his demographic. His advice isn’t good for people with assets. He would have the US do nothing but pay off the debt, versus Trump’s strategy of debt for productive purposes.
-Listener has a question after listening to the Money is Debt series. Can a non-money system be implemented? Andy says possible but not probable.
-Explanation of the history of Banks of the United States by a current governor of the Fed. How the Fed came to be. Someone that sounds like Andy.
-Listener says, if we stay in a system of fiat currency, silver and gold metals and numismatics make sense. But the future is unpredictable. Would it be better to own an actual resource that would be needed for survival?
-The rarity of numismatic coins from the 1930’s because they were melted by people who needed the metal asset value in them. Those coins that emerged after the depression were worth multiples of their prior worth. Numismatic coins don’t work as a unit of account during a crisis, but value explodes after the crisis.
-Variable and adjustable rate mortgages – pay them off and replace with a fixed. Buy the house and buy the money.
-For annuities, bonds, bills, or notes, hedge the inflation risk with 20% of those assets in gold and silver coins.
-Strategize by owning both numismatic coins and semi-numismatic coins for optimizing survival in good and bad times.
-Will the Fed be audited?
-Black Rock is investing in program trading as a replacement for human traders. Fired 12 traders yesterday.
-Who has most expensive health care system in the world? The US at over $9,000 per capita. Switzerland next at over $6,000.
-Condolences to Andy on the death of his father, Edwin Gause.
Andrew Gause and The Real World of Money, March 29, 2017 Hour One
Andrew Gause and The Real World of Money, March 29, 2017 Hour Two
Andrew Gause and The Real World of Money, March 29, 2017 Hour Three