The Dollar Approaches its Threshold of Lethality
March 29, 2022
Hosted by Jay Taylor
Alasdair Macleod, Michael Oliver & Patrick Highsmith are this week’s guests. Alasdair has recently pointed out that the Fed, the Bank of England and the Bank of Japan are now themselves becoming insolvent. As interest rates rise along with surging inflation, the massive debt they purchased to stimulate their economies is declining in value, resulting in negative net worth balance sheet positions. Insolvent central bank balance sheets began to emerge before Russia invaded the Ukraine. Now massive sanctions against Russia, keeping it from trading in dollars at a time when supply chain constraints are much, much greater than those created by COVID, threaten massive shortages of essential commodities on global markets, which in turn threaten prospects of dollar-denominated hyperinflation and still higher interest rates. President Biden talks of a New World Order with the U.S. leading it, but that may not be possible because creditor countries like China, not debtor nations like the U.S., end up as leaders when systems collapse. The U.S. has been running massive trade and fiscal deficits since 1971 and now the exponential direction of those deficits are blowing up the dollar-based system. Alasdair will discuss these dynamics as well as how gold may become a cornerstone of a new currency system. Owners of gold like Timberline Resources, which is in the process of making a significant gold discovery in Nevada, should be in a much stronger position than those who have put their faith in the Fed's dollar. Patrick will update us on Timberline’s exciting gold discovery, and Michael will provide his latest momentum and structural analysis for gold and other key markets.
Turning Hard Times into Good Times
Tuesday at 12 Noon Pacific Time on VoiceAmerica Business Channel
Jay Taylor’s show will explain the real underlying causes for plunging stock prices, plunging home prices and growing unemployment. By correctly diagnosing the cause of America’s economic decline, rather than listening to excuses from Wall Street and Washington, Jay will offer winning investment ideas to protect and increase wealth.
Topics to be discussed will include the cause of the decline of: our monetary system and our economy, the housing markets, the equity markets, and commodities, Why gold and silver are rising in value and how investors can profit from the direction of these markets through specific stocks, ETF’s and precious metals will also be discussed. Turning Hard Times into Good Times is broadcast live every Tuesday at 12 Noon Pacific Time on the VoiceAmerica Business Channel.
Jay Taylor has been able to more than double his newsletter’s model portfolio from 2000 to the present even as the S&P 500 was in the process of losing 50% of its value!
The insights provided to Jay came from a history professor in 1967 who advised Jay that when countries go off a gold or silver standard, hard economic times are sure to follow because nations begin to think they do not need to work hard and save to enjoy a better life. Indeed there is no free lunch and a gold standard reminds people of that every day.
Jay watched his professor’s prophetic words come true when in 1971, President Nixon completely detached the dollar from gold. Not surprising to Jay, the price of gold skyrocketed in the late 1970s as inflation wiped out vast amounts of wealth from average Americans. To protect his own wealth Jay began to invest in gold and gold mining shares and in 1981 he began sharing his success and insights in his newsletter. In 1981 Jay began writing a subscription newsletter that has earned his subscribers countless thousands of dollars over the years.
Jay’s insights as to the real cause of our problems has enabled him to find investment strategies that work. Diagnose a problem correctly and you have a chance for success. Diagnose a problem incorrectly as the establishment does and you are sure to fail.