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
-Instead of the feared one world common currency, we will have 3: the dollar, euro, and yuan, all controlled by the same boys.
-5 currencies now compose the SDR, an international reserve asset that controls central banks, but no ruble. Chinese using excess dollar reserves to buy into everything in the US.
-Jeff Bezos of Amazon and Washington Post has been working on digging up dirt on President Trump. Key competitor to Amazon is Ali Baba. Trump has been talking deals with Ali Baba.
-By use of foreign reserves, US dollar boys take over the currency of nonaligned nations but allow them to think their currency is still independent.
-Zimbabwe is poster boy of runaway inflation. Totally outscales the wheelbarrows of cash symbolic of the Weimar inflation.
-The boys destabilize a country’s currency to get access to its natural resources.
-Nukes matter. It’s the only way North Korea became a player. Nukes are just bigger F16s used to back our currency.
-We can’t store our wealth in actual money as the country’s founders envisaged, but only in notes of a private bank, which allows more notes to be issued than assets to back it up. Supply of money has exploded as MZM has grown 114% since 1980.
-$1.2 trillion of Treasury holdings must be paid off in the next 5 years.
-The banks that are creating and backing mortgage backed securities (MBS) are also creating the Federal Reserve notes. The FED is owned entirely by the banks they regulate, but the burden of any bank misregulation falls on the taxpayer
-What took us down wasn’t the mortgages going bad ($180 billion), but the derivatives and MBS, which were triple the value of the mortgages. Like buying insurance worth 3 times the value of the underlying asset and hoping the asset burns down. TARP created $700 billion and bought equity in the banks that caused the problem. Banks sold MBS worth $.30 on the dollar to the Feds for full face value. Additional Fed notes created diluted the value of existing notes.
-Andy believes numismatic coins are the best hedge against the continuing growth of the money supply. We won’t have a crash; instead there will be a slow, steady imperceptible growth of money supply, diluting the value of current Federal Reserve notes (dollars).
-Benefit of numismatic coins vs. gold. There is no fixed supply of gold; they will dig up more when there is more demand. Whereas supply of numismatic coins is fixed, and the collectibility premium of the numismatic aspect can be even greater.
-In 1933, President made it illegal to own gold. Citizens forced to sell to government at lower prices than gold was worth. Law changed in 1971, but if gold is confiscated again, numismatic coins become much more valuable.
10:14 CT. Commercial break.
-Pensions are in deep trouble. Defined benefit pension was customary until defined contribution plans were introduced in 1980. Current failure of pensions due to open-ended nature of obligation, underfunding of pension liabilities, plus underestimation of life expectancy of typical retiree. Will require a bond mechanism to pay benefits that are owed.
-Donald Trump says student loans need to be paid. Overruled Obama’s forgiveness of loans. Questionable value of college education in view of the debt incurred.
-Andy supported his daughter to start a dance business in lieu of continuing at community college and she took the dance business proceeds to pay for her nursing school.
-Service Core of Retired Executives (SCORE) will advise people starting a business.
-Rachel asks why doesn’t Andy recommend T-bill or bond investment annuities now? Father thinking of cashing out his annuity. Check to see who is the beneficiary of the annuity. Does the annuity permit investment in gold or numismatic coins? Don’t cash out all of the annuity. Return of the principal more important than return on principal for elderly people. Gold-backed IRAs are very dangerous. Maybe an ETF in a gold fund like GLD or a silver fund. Avoid mining funds.
-Listener asks about investing a 401K or IRA in numismatics. TEFRA prohibits self-directed plans from investing in gold or silver coins. Only allowed if beneficiary can’t direct the trustee how to invest the funds.
-Retail bankruptcies climbing vs. online retailers growing. Good growth prospects in delivery companies and intermediary warehouse sites. REITs – good if focused on warehouse sites, not brick and mortar retailers.
-Amazon Prime now has unlimited music. Netflix replacing cable TV.
-Question from a listener: Question for Andy…my dad has two annuities that currently have approximately $150K combined in them. He said that they are currently invested in treasury bills and bonds. At the end of this month, he will be age-eligible to cash them out without penalty (aside from the income tax liability) or roll them over into something else. He said that he was thinking of rolling them into a gold-backed IRA because you get a certificate with serial numbers specifically tied to actual bars of gold. I advised against that for several reasons, but would you please explain for him why you do not recommend T-bill or bond investments and why even a gold-backed IRA is not the best option for protecting long-term wealth? If it were you, could you explain what you would do and why?
-Andrew answers a question on starting a self directed 401k in gold and silver. What are the pros or cons?
-Question from a listener: Love the history you and Andy bring out into the open. My question is, I have been told that money is created by debt. Prior to the 1913 federal bank it was created by having a chunk of gold or silver pressed into a coin. From what I understand there was some cheating prior to 1913, but when did the change occur when the government give up all pretense to having a money supply they controlled by making and printing money, to where the bankers make up the money they want by making loans? When and who made up these rules along the way? If this is too long or involved a topic is there a book that details this history? A step by step summation would be so helpful to me. Being from Canada is what is done in the USA just transferred over to a foreign country, same blueprint different time scale.
Finally if so is the demonetization of India and financial technology push going to come here sometime?
and what can be done about it?
– When the banks foreclose on a property, do they continue paying taxes on it or do they get a free pass? If they do pay taxes is it on the same amount of tax that the previous owner paid?
-Is a reverse mortgage line of credit with a variable rate is a good investment in this environment?
-When Japan hit hard economic times in the early 90’s is it true that the government spent a lot of money on infrastructure to try to stimulate the economy? Did it fail? Trump is gearing up to spend on infrastructure too. What’s the difference?
-What can Andy tell us about the PCGS rare coin market report when it shows coins that drop or gain and some significantly either way?
-Why would the financial surplus of a nation be a possible cause for worry? http://www.deflation.com/if-budget-deficits-are-bad-are-budget-surpluses-good/http://www.deflation.com/if-budget-deficits-are-bad-are-budget-surpluses-good/
-Main stream media withheld the Susan Rice bombshell until some one else reported this
-The CIA invested in Google, Facebook, Microsoft and many others today with a fund called NQTech
-Why and how Japan continues to be under the thumb of Dollar Inc. today
-The ins and outs of a reverse mortgage is it an option for you?
-How confident on a scale of one to ten is Andrew that High inflation in in our future?
-Andrew lays out clearly why the Globalist to not want President Trump where he is today
-Hear how Apple and others legally dodge some taxes in U.S.
-Debt is a blessing even for the Treasury, understanding why is fascinating
-Listen to the history of why the President can not issue Treasury Notes into circulation from The United States Treasury
-The math on ACH and all health care government programs simply doesn’t calculate well
Andrew Gause and The Real World of Money, April 5, 2017 Hour One
Andrew Gause and The Real World of Money, April 5, 2017 Hour Two
Andrew Gause and The Real World of Money, April 5, 2017 Hour Three