Jeff Berwick: Billionaire Elites Piling Into Gold
Jacob Rothschild, Stanley Druckenmiller, George Soros, along with his associate Crispin Odey, and other billionaire elitists are moving massively into gold. In his recent semi-annual address to RIT shareholders, Rothschild announced that they are reducing their stock and currency exposure and increasing their gold holdings.
Rothschild: ”The six months under review have seen central bankers continuing what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale.”
As Jeff Berwick points out, Rothshild is the best man to ‘predict’ what is going to happen because he and his elitist pals have created the timeline of catastrophes. This may be part of a scheme similar to in 1929 when central bankers created a huge bubble and then a massive crash so they could buy up a ton of assets at pennies on the dollar.
Jeff thinks this may be the most dangerous time in human history for capital. In this interview, he shares a wealth of advice on how and where to make sound investments. He is also putting on a TDV Internationalization and Investment Summit on February 24th 2017 which includes many known experts, and precedes the amazing Anarchapulco Conference in Acapulco, Mexico.
Palisade Radio Host, Collin Kettell: Welcome back to another episode of Palisade Radio. This is your host, Collin Kettell. Back with me today is returning guest; everybody knows who he is, Mr. Jeff Berwick, Publisher of The Dollar Vigilante. Jeff, thanks for coming back on the program today.
Founder and Editor, the DollarVigilante.com, Jeff Berwick: Yes, it is always a pleasure, Collin.
CK: I see you have got yourself a new place there. The background still the Bay of Acapulco, but it seems to be from a slightly different direction.
JB: Yes, I have been making so much money on www.steemit.com I upgraded my studio. I am kind of joking on that but I have been making a lot of money on Steemit. But, yes, I had moved to a different location, still in Acapulco with still the bay behind me. This is actually not Acapulco Bay. This is the bay next to it. Yes, it is very nice here as always as you know.
CK: I have been seeing a lot of Steemit on your social media page. Many of our listeners have probably never heard of it, but it is in the realm of digital currency which obviously has some overlap with the precious metals. Maybe just a brief touch of what you are doing with Steemit.
JB: Sure. Just briefly, it is a new blockchain based social media site. It is actually sort of an evolution or a really new idea on how to do social media and it is all backed by a crypto-currency called Steem. You can actually get paid to post on the site. I have been posting on that site, and because I have such a large following with crypto-currency people and all sorts of people in the liberty movement and things like that I had been making quite a bit posting on there. People out there, if you do post content, if you are a content creator you should definitely look at www.steemit.com.
CK: Yes, I saw something about making $20,000 or $30,000 overnight on one of your posts, so congratulations on that, Jeff. The reason I wanted to get you on I saw a big post you put out on The Dollar Vigilante talking about billionaires moving into gold. This is a theme we have been seeing for a couple months now but really starting to build. It seems like these smart money guys always know when to place their cash at the right time; great sign for you and me and all of our listeners that are in the gold space.
JB: Yes, absolutely. You are right. They seem to know exactly when to do these things and I have learned to pay attention to them. Interesting enough, you and I have both been into gold and precious metals and mining stocks for quite a while. Definitely in the last year we both have been talking about how we think the new bull market has begun and it definitely has as we know. We were in before them, but all in the last few months they have all of a sudden been like I am not saying every billionaires but so many have just been moving massively into gold.
It started with George Soros a few months ago. He started shorting the stock market, which actually I do not think worked out that well for him. He might have been a little early on that one. But he had invested heavily into gold and mining stocks including Barrick and did very well. There have been so many others who have come out just in the last month or so including Stanley Druckenmiller. That is another billionaire.
There is also actually sort of an associate of Soros, he is a billionaire named Crispin Odey. He runs a hedge fund and he just came out just recently, just in the last week or so saying that he is incredibly gold bullish. Here is a quote from him. He says, “In a world where $13 trillion of bonds are negative yielding; where $4 trillion of investments are in ETFs, is it wise that only $1.5 trillion of savings are invested to protect investors against the change in the weather?” He has gotten into it.
The most recent one, it is the one I am just writing about right now. He is the most evil one himself, Mr. Burns from The Simpsons, Lord Jacob Rothschild. He has come out and said that central banks are getting so crazy that he is going to just start buying up a ton of gold. Of course he runs the central bank, so it is actually a bit of a scheme or a scam as they always do. He is trying to say, “Oh, well, these things are all going to collapse. It is not my fault; it is these crazy central bankers.” Of course he is the central banker of all central bankers. He is trying to say, “Oh, well, I am going to buy gold now,” and try to make it look like he did not cause what is about to happen, which is a massive crisis collapse in almost all paper assets in my opinion.
We have seen all these people moving in and now that we have seen Rothschild move in I think it is fairly clear and safe to say that gold is going to do very well very soon in my opinion. These people, as we pointed out, they know ahead of time a lot of them especially Soros and Rothschild. They are very elite sort of people and they plan these things. These things never happen by accident. Just like 1929 did not happen by accident. It was on purpose. That has all been proven now that the central bank wanted to do that to create a massive crash. First they created a bubble and they created a massive crash in order to buy up all the assets at pennies on the dollar and that is probably what they are going to try to do again, so very, very interesting times for us who are in the precious metals.
CK: Well, the numbers that you just pulled out reminds of a fact that Rick Rule has touted a couple times in our show which is that the global allocation to metals based on the size of the US economy was about half a percent in January as compared to an average of about 2.5% or 3%, and the high back in the late ‘70s when gold spiked to those record highs at the time was about 7% or 8% of money was in gold or gold-related assets.
What that is is basically a factor of price. There is only so much gold right, Jeff? What that means is that gold price has to go significantly higher at this point, and more money is going to have to rush in to the associated equities over the coming years for us to get anything back to a normal level.
JB: Yes, absolutely. That has been one interesting thing is your average American has no idea about gold. They are not talking about gold on CNBC. They are definitely not talking about it on CNN. That is where many American is still even though mass media is massively going down. They still get a lot of their information from those places and it is not real information; it is proganda. It is done on purpose.
We have seen, as you pointed out, I think in the 1970’s I think about 5% of an average American’s portfolio was somehow invested in gold or gold-related items, and then it was like 3% in the ‘80s and it has just been going down ever since. You just pointed out it is around .5% now. They have gotten everyone out of that rate at the time they should all be in it, which is what they always do. They try to just screw as many people as possible and try to get as much money for themselves as possible.
It is really interesting that there is even a Mark Dice who does these videos and he was trying to give out – he was on the street in California and trying to offer people. They could either take the Hershey’s chocolate bar or a 10-ounce bar of silver and no one took the 10-ounce bar of silver. Everyone took the chocolate bar. People have no idea. The mainstream media is never going to tell you; the movies, the news, the television programming, it is called programming for a reason. Most people have no idea.
In my opinion this could be a massive, probably the biggest gold bull market in history by far because at the end of it I expect all fiat currencies to collapse. That is how dire the situation is and you can see the elites talking about it now. They are trying to prime the pump, so to speak, trying to just sort of let the people know out there that when it all happens they can go, “Oh, we tried to warn you and then no one listened.” It is the same old story, but for smart people.
Even if you just look at gold, of course, gold and silver have an excellent year so far. They started going up on the very first day of January which is really interesting that that happened and has not looked back since. But it is still only gold at around $1300, silver at around $20. These are well off their highs of just a few years ago. This is still an excellent time for people to be getting some insurance like many of these billionaires say they are doing.
CK: Yes, and further to that point, thinking about the numbers gold at $1300, not terribly far off the tide percentage-wise about 30% or 40%, and yet globally like we were just speaking only being half to three quarters of a percent. Just goes to show how high all other asset prices or the stock market, real estate, things that have been beat up by Fed printing, Fed policy.
You put out a very popular video last year around the idea of the Shemitah and you predicted some tumultuous times in the year ahead. One thing that I expected and I think you expected was for the economy in the US to come off and yet it has continued to climb higher with no end in sight. Have you given any more thought, Jeff, to when we could see the stock market come crashing apart?
JB: Well, we should definitely explain the difference between the economy and the stock market. They are two totally separate things and they are completely unrelated at this moment in time. The US economy is terrible. If you look at your average American, they have never been in a worse shape since at least in the 1970s. That is why there are all these minimum wage debates and all these sort of things because of all the money printing. A lot of that money has actually gone into the stock market especially with interest rates at zero percent which is actually incentivizing people not to save, which actually destroys capital and destroys actually the entire world and the economy over time. They have now been doing that for eight years.
But a lot of this money has gone into the stock market and that is why we are seeing new nominal all time highs. It is definitely not all time high. If you actually look at the Dow Jones versus gold over the last 100 years, the Dow Jones is down massively since the year 2000. It is absolutely massive how much it is down. But because it is in nominal dollars and they keep printing dollars with other quantitative easing and money printing at the Federal Reserve and other central banks, we have seen the stock markets look like they are doing okay, but they are really not.
We are seeing all kinds of people. I saw even Barron’s Magazine, which is usually quite bullish on everything questioning how it is possible that stocks keep going up when their earnings are not going up? They are actually going down when the economy is actually terrible. If you look at the real numbers, not the government numbers, it is actually just a bubble of money printing. It is definitely going to collapse at some point unless they print so much money- this is possible.. unless they continue to print so much money that we could actually see the Dow go to $50,000, but at that point a Big Mac at McDonald’s will cost about $50.
That is where we are headed. That is what is going on; the reason we are going to go into a hyperinflation or a massive collapse that has never been in modern history. One or the other and both are bad, and one of the only things that can really save you from either is gold.
CK: Yes, and I am happy you ended that sentence with gold because everything seems to point to gold right now. We were talking about this the last couple of years. Many of the same fundamental drivers that are now pushing gold were in place or in the making and yet our thesis continually was wrong and wrong, especially in the mining stocks where you were losing significant capital. But if you stock around into January and past you have recovered and you are probably up significantly. Does it make sense- aside from something like a digital currency, Jeff, to put your money into anything but gold right now. I cannot think of very many things out there that are safe and certainly have their return that gold or gold stocks would have.
JB: Well, we should point out nothing is really safe at this moment in time. I have called this the most dangerous time in human history for capital. Even gold might not be safe depending on how you store it and where you store it. Certainly if you are buying gold ETFs which are just paper backed by banks which might be close to bankruptcy. We are looking at Deutsche Bank right now. Looks like it could totally collapse. When those collapse, the ETFs will go under because they are actually backed by those banks.
It is a very dangerous time. There is no real safe place. Actually Richard Russell who wrote the Dow Theory Letters, who just died last year, he started the entire financial newsletter industry in the ‘50s I believe. He said couple years ago, “Whoever loses the least in this next crash is going to win.” That is essentially what is going to happen. Of course some people will make a fortune, but very few will. One of the things that I definitely recommend, for example, gold and silver, that is just obvious, but how and where you hold the bullion is going to be very important.
Of course in the land of the free as they call it; I call it the land of the fee, in the US in 1933 they confiscated gold from all American citizens for forty years. A lot of people do not remember that because they do not get told that or taught that in the government indoctrination camps for twelve years. A lot of people forgot all about that. That could happen again. I am not expecting them to confiscate this time although it is definitely possible. There are so many other countries especially Europe, they are in such dire straits. You could see anything happen. You have to be very careful how you hold your gold and silver.
With the mining stocks my opinion is that if this market, if the financial market and the monetary system can stay alive a few more years, which is possible, then we could see a bull market in the gold mining stocks unlike anything we have ever seen. We have seen massive ones in the past that have made thousands or tens of thousands of percent for some people. That is my speculative angle is to have some money in those stocks. But when it comes to safety it is definitely more bullion.
I would also look at real estate and hard assets, farmland, for example. People are still going to have to eat after all after this collapses. I definitely would look outside a place like the US because of just what is going on there. I think it is going to be ground zero for the coming collapse. But places like Latin America farmland, we have talked about that in our newsletter, The Dollar Vigilante. We found a few really interesting farmland investment opportunities in Panama. I am looking at one in Colombia right now. I know you were just in Colombia. There are so many things going on in Colombia that are really great. We are looking at those sort of things, and then, of course, there is the crypto-currencies. But you really have to know what you are doing. It is going to take a lot of people quite a bit of time to figure out what is going on in that space. But our subscribers at The Dollar Vigilante, we have been telling them all about it since 2011 when bitcoin was at $3 and it is currently at $500. Those are the things that we have telling people to definitely be looking at and to be moving towards.
For someone out there if you have got most of your assets in a bank account in the US or Canada or Europe; and if it is in Europe, turn off this video right now and go take it out of the bank right now before it closes. It might be too late by the time I am done talking here. I am serious about that- that they should definitely be looking to get some of their assets out.
For people who hold things like IRAs and things like that and have assets in there I would be looking to get those IRAs out as soon as possible. If you cannot take them out move them into a self-directed IRA. Once you are in self-directed you can invest in almost anything including gold bullion and you can also take it outside of the US, for example, which I would recommend, having a significant portion of your assets outside of the country in which you live. Because as these governments all collapse, they are all going to try to take as much from their tax slaves or as what they call them, citizens, as possible.
CK: You have a fantastic analyst Ed Bugos. We have been trying to get him on the program. He has just been so swamped with all the great research that he is putting out, but I am sure we will set that up here soon. Ed has been kind of spot on since beginning of the year calling different places to put capital and what to look at and strategies in place on just how to invest in the mining stocks. I know that part of this is a conversation to be left between myself and Ed, but maybe just a little bit more on the mining stocks. You have been in the field a couple cycles now. You were the head of the largest financial website in Canada which is focused around these mining stocks at times. Jeff, what do you think about the next few years ahead for mining stocks?
JB: Yes, as you pointed out I started Stockhouse.com which is the largest financial website in Canada in 1994. I was around during that ’94, ’95, ‘96 bull with Bre-X and Diamond Fields. That really got me really interested in the whole market. I just found it fascinating. I found it fascinating how you could buy something for a few pennies and it could be a few hundred dollars within like six months. That is the mining exploration market. It is fascinating. Of course you have to know what you are doing and that is why people like you, Collin, and people like Ed Bugos, people who really know this stuff is who you need to be listening to if you are going to invest in them because it is not easy at all. But if you listen to the right people and it is the right timing, you can make absolute fortune.
That is where we are at with the mining stocks. Ed Bugos, his portfolio is up 200% in the last year. He has done very well. He is called so many things right. He is truly a genius and that is actually why it is hard to get him on this program. I tried to get him on your show and others, but he is just buried in spreadsheets and calculators. He is sort of like one of those sort of crazy genius sort of guys, but he is really good. I told him, “Okay, if you are too busy do not worry about it because we need you to make us and our subscribers a lot of money, so keep doing what you are doing.”
That is what he has been doing for the last year and he is still incredibly bullish on both the precious metals and the mining stocks. He thinks I think like you, Collin, that this is just the first or second inning of a 9-inning game. Of course there could be a pullback. The gold stock has done very well over the last six months. There could be some sort of pullback, but I know Ed is not expecting a major pullback. It would probably be minor in his opinion.
As far as the precious metals I would not be trading in and out of them too much because I consider them to be one of the only things that can really be your safety if they close the banks, if they close down everything which is totally possible. We are getting that close to it especially in Europe. If Deutsche Bank collapses as one example; in 2008 it was Lehman Brothers who set off the whole crisis, Deutsche Bank is much, much bigger than Lehman Brothers and much more interconnected with all the financial systems around the world. If it goes down and it is looking like it is very close at this moment in time; their stock is down more than 50% in the last year. Their profits were down 99% year over year. This year they are just laying off people and closing things as quickly as possible.
If that goes down we could see a financial crisis unlike anything we have ever seen, way bigger than 2008. At that moment in time you do not want to have sold a lot of your gold just to find out that all of a sudden everything just gets shut down and all of a sudden gold is worth $5,000 an ounce and you had just traded out of it because you were worried it was going to go down $50 or $100. I suggest to people to hold gold and silver solidly and not to be trading them unless you want to trade extra on top of that. But you should definitely have a significant portion of your assets in them just for safety at this moment in time.
Then on the upside part I see the mining stocks as playing that role. The mining stocks are the ones that can go from $0.10 to $10 in a few months given the right situation and the right scenario. I look at the metals as more for safety and I look at the mining stocks as more for speculative upside.
CK: Very good. Well, there is a YouTube channel I am sure you have heard of. It is called VICE in VICE News. I think that a lot of their views are a little bit strongly to the left. But they have put some really good piece of journalism together. The reason I bring that up is I watched a fantastic documentary last night. It was part of their HBO series and it was about fighting ISIS in Iraq. It did a beautiful job of dissecting how we took a country that was obviously under horrible dictator rule but was stable. Iraq is really an area that kind of is at the middle of many different sects of Islam in the Middle East, and we went in there. The US, of course, with coalition forces and kind of just rip the place apart and created a breeding ground for ISIS and the Shiites which is backed by Iran, which is almost as bad as ISIS. We have got basically a civil war between four different groups going on there.
I guess my take-away from the documentary was once you do something like that there is no going back. People are talking about attacking further or pulling out. It is kind of beyond repair at this point. That leads me to two potential presidential candidates, Jeff, that you do not like either of them. I do not particularly either. But Hillary would seem to usher in a similar policy as Obama and Bush which is certainly on the police the world, whereas Trump is a bit of an unknown. I would not expect him to change things too much, but maybe something different which is I guess a little bit of excitement. What are you seeing on the presidential front aside from hating both candidates, Jeff?
JB: Well, I hate all candidates all the time because I do not like government. I think government is unnecessary evil and because of that I do not support any of them. The closest I have ever come is Ron Paul because he essentially wanted to shut it down for the most part and that is what I think should be done as well. When it comes to this election I have actually picked for over a year now, I said Hillary Clinton will be the next president of the US. It is because it is not actually elections; it is actually selections that has been going on since Kennedy when they killed him when he tried to stand up somewhat to the bankers, the banksters, the financial elites who control the money. They took him out pretty quick and after that every president has pretty much fallen in line and done what they have wanted.
They have essentially put in whoever they want. It looks like it is going to be Hillary. That is my prediction. Of course her health is interesting. We will see if she makes it that long. Hopefully she does not. The sooner she is dead the world is a better place by far. If she gets in I am not looking forward to the next few years. It is going to be war, poverty, destruction, and absolute chaos. We are headed towards a lot of that already just with how bad the financial monetary system is. But with her she is a sociopathic, bloodthirsty killer I had heard cackling when she heard Muammar Gaddafi raped with a pipe and murdered and beaten to death in public. “We came. We saw. He died,” cackling away; she is as evil as they get and people just constantly dying around her.
It is not just her, of course. She got her handlers and all those sort of people. But any time someone is going on their way to testify against her they keep having accidents. The latest was a U.N. one where the guy was working out in his house and crushed his own windpipe with his dumbbell. That does not happen too often, and then Julian Assange’s lawyer was just pushed in front of a train or I guess they said she committed suicide or something. I am not sure. It does not matter. It is all fake. That is going to be brutal.
Donald Trump is interesting. He is also very tied in with all these people. The Clintons and Trump are like best friends for decades. This is not really an election; it is a selection. If Trump does win it will be interesting. Well, I would say things would probably be a little better with Trump, but who knows? If he tried to really change anything, he would be taken out very quickly. People need to understand they live in a dictatorship. They live in a tyrannical dictatorship. There is not a democracy. You do not control anything. You are slaves and people need to realize that and start to stand up and stop paying taxes and stop listening to the government and stop obeying their authority, and then we will have peace and prosperity on earth like we have never known it. If we do not, we are just going to keep entering into all these wars and economic destruction from the central banks and things like that, so obviously not very optimistic about what is going to happen. But it is going to be interesting. Because of the difference between Trump and Clinton I think that alone will really shake up the markets around October and the markets already look ready to be shaken up. It could be a very, very interesting fall.
You brought up earlier I talked about the Shemitah and Jubilee. The Jubilee year ends on October 2nd. On October 1st is when the Chinese yuan is being put into the IMF’s SDR basket. It is very interesting it is being put in over a weekend, which is usually when they do these things which could end up closing down banks. I am definitely expecting a wild and crazy fall period here. If people do not own precious metals and other assets that we mentioned before and they have most of their money in bank accounts and in mutual funds, in the stock market, in money market funds, I would be really running now — not walking — to start to get some of those assets put outside of the financial system because this is going to be a crazy fall period. After that it is just going to get crazier and crazier in my opinion.
Get ready now before the crowd, as you pointed out, Collin, most people have no idea about precious metals right now. They are going to want to know a lot about them in the next few months as everything starts to collapse. By then I actually think I have said this before that very quickly it will be very hard to buy precious metals, gold and silver. Even in the last year here in Mexico where they are the largest producer of silver in the world, I could not find any silver coins for sale for about a month. I even contacted Hugo Salinas Price. He is a neighbor of mine here who is a billionaire Mexican. He runs Azteca Bank, and he was like, “Yeah, no, we cannot get any either. There is no silver to be bought.” That was before any sort of crisis. You can imagine what will happen after.
CK: Well, not an optimistic picture that you are painting or myself, but it is good to be in the right spot which is, of course, precious metals over the next few years if things go badly globally, which I cannot see them not. You want to be positioned to capitalize off of that and protect yourself and make money.
Before we go here I just want to remind all of our listeners that we are doing the silver giveaway for the rest of the year. We are giving away one silver ounce each and every week, an American Eagle silver ounce. Just go to www.palisaderadio.com and put your email in. This week’s winner is Jason out of Ontario. I want to pass the mic over to you, Jeff. You have got some announcements on your conference coming up and, of course, where listeners can find out all of your work.
JB: Yes. As you know, Collin, I have a conference every year in Acapulco called Anarchapulco. It is the world’s largest anarcho-capitalist conference. Coming up in 2017 in February will be our third conference, and it looks like it is going to be absolutely massive. It might be around a thousand people from around the world. It is going to be incredibly exciting. The day before Anarchapulco we have our Dollar Vigilante summit. It is called our Internationalization and Investment Summit. By the time you put this up live we might not have it up on our site yet, but sometime soon in the next few days we will have it up on www.anarchapulco.com. Just to go to www.anarchapulco.com and you will find it there.
It is going to be on February 24th, 2017 here in Acapulco, Mexico. Collin, you will be coming, down or up depending on where you are, to speak. We also have, of course, Ed Bugos. We are also going to have David Morgan, one of the most famous silver investors and analysts. That is going to be excellent. I think you have had him on your show I am sure. Bill Murphy of GATA is going to be here. We have Roger Ver, one of the top, if not the top, person in bitcoin and crypto-currencies. He is also known as the bitcoin Jesus, Chris Casey of WindRock Wealth Management; Ben Johnson of First Northwest Securities. He is one of the most well-known sort of brokers and investors in the mining markets. He is going to be here as well. There might be many others to be announced. That is going to be February 24th. Just check out www.anarchapulco.com.
If you do not see it there when you check, check back in a few days or in a week and we will probably have the information up then. It is going to be an excellent conference. We did it last year and it was excellent. I know you could not make it last year. You were with your grandpa in Argentina or something, if I remember it correctly. But looking forward to seeing you here again next year, Collin.
CK: I cannot wait for it. It is going to be a great conference. Jeff, thank you so much for coming back on the show and we will get you back on soon as always.
JB: My pleasure. Thanks.Share this on: