Debt traps and geopolitical conflicts and why it is important to understand the consequences

Subscribers to my Substack will be kept fully informed

I launched my Substack channel because it was obvious to me that a combination of government debt traps and geopolitical conflict is increasingly certain to rapidly undermine the fabric of our society. There is therefore a growing need for as many as possible to understand the implications. In my fields of expertise and in the interests of my followers, the most important implication by far is the consequences for financial assets and our currencies, which being entirely fiat are backed only by the public’s faith in them.

It is that fragile faith which now faces its greatest threat since the suspension of the Bretton Woods Agreement in 1971.

I believe that my experience of over fifty years in stockbroking, investment management, and banking coupled with my technical understanding of economics qualifies me for this important task. My objective is to educate and inform anyone who cares to listen, ranging from those with financial expertise to people with little experience of financial and geopolitical matters about the following poorly understood issues:

·      The US debt trap is probably the most important issue today, practically guaranteeing a final collapse of the dollar. Similar problems face the other three major currencies — euro, yen, and pound. But as the reserve currency, the dollar’s fate will almost certainly decide that of the others.

·      The evolution from a unipolar world dominated by America to a multipolar world accommodating Russia, China, and their trade partners who together now make up the majority of the world in both population and GDP. Amazingly, this development and the economic consequences are yet to be appreciated by our politicians, media, and financial institutions.

·      As Keynes put it, “There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose”. I want my subscribers to fully understand the implications of currency debasement, why it is bound to accelerate, and to keep abreast of developments leading to the death of their currencies.

·      To understand the difference between true money which is the medium of exchange which has no counterparty risk, and credit where a currency issuer or banking counterparty may not deliver. It is central to understanding monetary matters. I find that even most economists fail to grasp the importance of this distinction. I want my subscribers to have an advantage in this respect, enabling them to separate fact from fiction, vital to surviving the economic turbulence ahead.

·      The importance of Russia and China with respect to their accumulation of gold bullion, which is far larger than their official reserves and what it means for our future.

Armed with this information, my Substack subscribers will be better placed to protect their wealth during times of increasing financial turbulence. Accordingly, it behoves me to constantly seek to improve my Substack to satisfy my subscribers’ needs. This is what I have learned so far:

·      The greatest response was to my 8 February article, “It is vital to understand the legal and practical role of gold”. This was followed by my 1 February posting, “Sarajevo redux, of how world wars come about”. These were the two standout articles in terms of generating interest, confirming a desire to understand gold and geopolitics.

·      I should provide a service to subscribers by collating relevant information, which may be available from other sources but can be missed. This might require frequent postings, as much as three of four times a week.

·      A lively debate between paid subscribers appears to be a popular way from them to express opinions and learn about gold, credit, economics, and geopolitics. I respond to paid subscribers’ questions when called for.

Clearly, there is demand from my subscribers for a greater understanding of the economic role of gold and geopolitics, topics of lively debate in the comments section. In my next article on Thursday I will address debt traps and their consequences for interest rates and a banking system which has become unable to cope.

From my paid subscribers’ comments, there is also an interest in simply trading gold, which I address with a weekly market report available to all subscribers, both free and paid. This market report is also posted at Goldmoney.com on Fridays, and as well as technical matters addresses some of the broader issues in the gold and silver markets. And on most Fridays, I give an audio commentary on King World News.

For those who are yet to do so, I urge you to consider subscribing, and please spread the word to your friends and family as well. I believe I can give all subscribers the information they need to navigate through what promises to be increasingly dangerous times.