Friedrich August von Hayek and the denationalisation of money with Claudio Grass/

On Show 20 of the MisesUK.Org podcast, regular host Andy Duncan spoke with Claudio Grass, a Mises Ambassador for the Mises Institute and a precious metals advisor based in Switzerland, about Hayek’s ideas on the denationalisation of money. These stem from Hayek’s book on this subject first published in 1976. They focussed on the removal of the state from the production of money and the relevancy of Hayek’s ideas in this newer age of cryptocurrencies, along with the older monies of gold, silver, and other valuable commodities, possibly also becoming combined with the latest block chain technologies.


https://itunes.apple.com/gb/podcast/misesuk-org-podcast/id1322473728

Historic Bond Bubble Means Fastest Rate Rise Ever – Martin Armstrong

“The boom cannot continue indefinitely. There are two alternatives. Either the banks continue the credit expansion without restriction and thus cause constantly mounting price increases and an ever-growing orgy of speculation – which, as in all other cases of unlimited inflation, ends in a “crack-up boom” and in a collapse of the money and credit system. Or the banks stop before this point is reached, voluntarily renounce further credit expansion, and thus bring about the crisis. The depression follows in both instances.” Ludwig von Mises

“This time it might be appear to be slightly different because not the banks in the US are expanding their credit but big amounts of capital will flow back to the USA, because of the Tax Reform…this will further pop-up the illusion of wealth for a short-time driven by inflation. More money will chase the same amount of goods, therefore prices can raise up fast, the outcome is called hyperinflation. I hope people will use this period also as an opportunity to think about time preference and to reflect on the idea that we have to safe first before we can consume. A society driven by high time preference is what we have today – swimming in an ocean of debt, corrupted by a system based on money created out of thin air. A guy said once: ““Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.” I suggest to end slavery – Putting some of the USD into physical gold and silver is a first step, building up a personal insurance against the outcome of this nightmare is a wise thing to think about.” Claudio Grass

Introduction podcast:
Is renowned financial expert Martin Armstrong worried about central banks continually buying bonds to suppress interest rates? Armstrong says, “Yes, absolutely. We are in the biggest bond bubble in history, not a stock bubble, but a bubble. . . . The scary thing in Europe is the ECB (European Central Bank) has been basically supporting the governments. It is subsidizing all the governments in the Eurozone. We are looking at almost 10 years of quantitative easing with that, and it hasn’t helped the economy. If the ECB backs off, who’s going to buy the debt?”

How does this end? Armstrong says, “Our computers are showing that interest rates are going to go up faster than anybody has ever seen in history. . . . You are looking at a doubling of interest rates very, very rapidly. . . . Gold and equities are the place to be.”

Join Greg Hunter as he goes One-on-One with Martin Armstrong of ArmstrongEconomics.com.

Responsa Liberta & Claudio Grass about decentralization and alternative currencies – German/Deutsch

Auf der Internationalen Edelmetall- und Rohstoffmesse Anfang November 2017 in München haben wir mit Claudio Grass (claudiograss.ch), unabhängiger Berater im Bereich Edelmetalle, über das Thema Währungen gesprochen.

Wie schätzt er Gold und die derzeit viel diskutierten Kryptowaehrungen ein? Und welche Vorteile sieht er in dezentralen Systemen wie der Schweiz?

In Zusammenhang mit aktuellen Entwicklungen bzgl. EU und Euro wird auch das Thema Internationalisierung von Kapital und Ersparnissen immer wieder diskutiert. Wir haben Claudio Grass auch um seine Ansicht zu Finanzplätzen außerhalb der EU wie beispielsweise Schweiz und Liechtenstein gebeten. Mehr zu seiner Einschätzung im folgenden Video-Interview:

http://www.responsa-liberta.de/mediathek/359-wae

waehrungsalternativen-dezentralismus-und-internationale-finanzplaetze

 

 

Sound Money Sound Society Podcast Interview with Dr. Mark Thornton – November 2017

Sound Money Sound Society Podcast: Interview with Dr. Mark Thornton – November 2017

In a recent interview with Mark Thornton, Claudio Grass discussed a number of key issues and shared his point of view on important economic and geopolitical matters that are on many citizens’ minds, within the US and in Europe.

Interview highlights

We currently find ourselves in a historically and economically significant transition period. The already overstretched bubble in the markets is still expanding, but we now see bold moves by the Fed to reduce its balance sheet, at the same time that the ECB plan to tapper, overall presenting us with a pretty deflationary outlook. This reversal of the expansionary policies of the last decade can be seen as the first step towards an upcoming and potentially ferocious correction.

The ECB is trapped, already holding 40% of sovereign debt, with Spain and Italy presenting major challenges, threatening to trigger a banking crisis in the not-so-distant future. Mario Draghi aims to reduce the ECB’s asset purchases from EUR60 billion to EUR40 billion, however he might soon come to the realisation that if the ECB does not buy eurobonds, then no one will. Ultimately, this will lead to a massive flight to the USD, the biggest capital market being the US, controlling 52% worldwide and Europe 9.8%. Thus, this would lead to higher stock markets, but more importantly to a stronger USD, which nobody wants. Such a development threatens the world economy, as the system would crash from the periphery, as developing countries and USD debt holders, would have a hard time repaying their debt and eventually default.

A possible game changer is the Petro-yuan, the Chinese government’s  plans to start a crude oil futures contract priced in yuan and convertible into gold. This is a direct attack to the US hegemony and it would allow certain countries to by-pass us sanctions e.g. Russia, Iran etc. But it would also emboldens the remimbi’s claim as a world trade currency, which would deliver a significant blow to the USD’s strength, which in turn might postpone the crash of the system. The Chinese move is therefore quite astute, especially since they chose to back it in physical gold to strengthen trust. This just goes to prove that gold remains strategically important and it also shows that gold is still the only kind of real money. This action sharply contrasts with Central Bank words, that gold is not a monetary or a financial asset. However, in this real-life scenario, we see that central banks know exactly why they own physical gold and it is not because of “tradition”, as Bernanke responded to Ron Paul’s question as to why central banks still hold physical gold.

In this backdrop, we also see Europe’s efforts to use the Macron victory as proof of stabilization of the euro zone. However, quite the opposite is the case: If anything, it is proof the EU is going further down the drain, firmly unwilling to undertake any of the necessary, fundamental changes within the Eurozone. Therefore, it is increasingly likely that the EU will become more totalitarian and try to push further centralization and restriction of civil and individual liberties.

This all confirms that gold, today more than ever, is the most reliable store of value, especially in contrast to the paper money system. If somebody would have purchased gold back in the 70ties, with a 100K for a 1800 oz, today the investment would worth approx. 2 million. Apart from its reliability and timelessness, gold ownership is also an important hedging instrument against geopolitical disruption and turmoil, especially, when stored outside one’s one jurisdiction. In particular, it is important to store metals not in jurisdictions that have already confiscated gold in the past, such as Russia, Germany, Italy and the USA. Switzerland is still a sovereign nation were the Swiss people can limit the power of politicians, making confiscation impossible.

Today we see more and more people waking up and we can see the cracks in the system everywhere. The trend is definitely going towards decentralization and autonomy. It is becoming increasingly apparent that the best solution for what is coming is to secede from centralized government and by doing so decentralize the power and make room for the much needed competition of ideas. The establishment’s efforts to stop such initiatives are on the rise as well, however they will most likely prove to be insufficient to turn the tide. In other words, you can blow out a candle, but you can’t blow out a fire.

Claudio Grass and Jeff Deist on Whether Switzerland can Save the World – Mises Institute

Switzerland is no libertarian paradise. It has bureaucrats and a wayward central bank. But it remains an astonishing modern example of the principles of federalism and subsidiarity in action. In fact, it exemplifies Lew Rockwell’s daydream: nobody much knows or cares who is president. Its federal administrative state demonstrates humility instead of hubris. And virtually all political decisions, from taxes to welfare to immigration, are decided locally. Claudio Grass joins Jeff Deist to discuss what libertarians can learn from Switzerland, and how neutrality in two disastrous European wars shapes Swiss DNA today.

Source: https://mises.org/library/claudio-grass-whether-switzerland-can-save-world

Investment Conference 2017 with investment conference – Precious Metals as your Monetary Insurance

2hWealthcare Investment Conference 2017 with Naomi Prins
Precious Metals as your Monetary Insurance, Buckinghamshire, March 2017

Short introduction about how money came into existence, the origin of the banking system and boom bust cycles. Overview about Gold in general and China in particular. The big geopolitical shift we are going through right now and why physical precious metals still act as the monetary insurance.