Volatility: Friend or Foe?

Finance U Public Finance U
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Originally published at: https://peakprosperity.com/volatility-friend-or-foe/

After a short holiday break, we’re back! Happy New Year, everyone!

This week, Paul Kiker and I discussed a wide range of topics (See list of timestamps below).

The overarching theme was volatility. We’re seeing extraordinary moves in Japan’s bond and currency markets, enormous volatility in silver, and “decades happening in weeks” on the geopolitical front as evidenced by Trump’s move against Venezuela.

Perhaps these and many other items are unrelated events. Or perhaps they are connected by the spasms of the dying regime of debt-based fiat money. If so, then this chart of gold’s price during the death of the Weimar Republic’s mark might be instructive:

Could you, would you have hung on for every one of those gut-wrenching ~-25% drops in the price of gold along the way? Or would you have bailed, certain that gold had gone as far as it could and was due to collapse back down?

This speaks to the importance of knowing the underlying “why” of your investment and wealth protection strategies. Me? I am certain that the US government is thoroughly out of control on the spending front.

This recent tweet by Trump only added to that certainty:

Where’s that extra $500 billion going to come from? Easy, that’s going to be printed out of thin air by the Federal Reserve.

On that front, they have already begun.

To me, this signals “The End of Money” …well, not true money (which is gold) but corrupt fiat money managed by people who seem to have entirely lost the idea of the proper role of money in a society and economy.

The advice is to have a plan and be prepared to stick to it for what is certain to be a very bumpy ride.

Timestamps:

00:30 Introduction and Personal Updates
02:35 Market Shenanigans: Gold and Silver Prices
06:31 Market Manipulation and Trust Issues
10:39 Volatility in Precious Metals
12:31 The Role of Gold in Financial Markets
18:25 The Impact of AI on Information and Investment Decisions
21:38 The Global Silver Market Dynamics
29:24 Long-Term Thinking vs. Short-Term Gratification
31:46 The Dangers of Currency Debasement
33:31 U.S. Domestic Supply Chains and Independence
35:41 Japan’s Economic Push and Pull
39:32 The Impending Crisis in Japan
44:41 Venezuela’s Oil Industry and U.S. Interests
01:01:26 The Erosion of Trust in International Law
01:03:39 Emerging Alternatives to the US Dollar
01:05:15 Speculation vs. Investment: The Current Market Landscape
01:09:40 The Impact of Federal Reserve Policies
01:12:26 Generational Wealth and Responsibility
01:15:18 Navigating Rapid Change in a Complex World
01:18:25 The Future of Software and AI
01:22:37 Investment Strategies for an Uncertain Future
01:27:38 The Importance of Adaptability in Investing

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I do not mean to be trifling but people need to understand that “international law” does not exist, even if the term is extensively used.

The abuse of the term hinges upon what lawyers think “law” which is different from what We the People think it is. Lawyers view it as an amorphous mass involving the administration of their domain, exclusively. We the people, view it as a textual embodiment of specific cultural principles with the resources to enforce those principles.

Can there be “law” binding sovereign states? Answer no. Sovereignty means able to pursue unbound self-interest. What does “international” mean? It means between and among nations. However, treaties, not law bind countries but always with a reservation that allows the country to leave the treaty. A treaty is actually a document laying out common interests that may be written into the laws of the signing countries. What is law without enforcement? It is a political statement, nothing more. In total, what exists is common interests among several nations that has been spun by the legal establishment as being “law”. Slavery is supposed to be forbidden by “international law”. What “law”? What is the police force patrolling the oceans and continents to wipe out this scourge? Answer: None exists. Each country takes it upon itself to accomplish that goal. What then is NATO. The word “treaty” explains that situation. And, the UN? It is an organization offering a pulpit to explain national interests

What of the Nuremberg Trials following WW II? Google explains:

“The laws used at the Nuremberg Trials were established by the London Charter (1945), which created the International Military Tribunal (IMT) and defined its jurisdiction, prosecuting Nazi leaders for Crimes Against Peace, War Crimes, and Crimes Against Humanity, codifying principles of international law previously unrecognized. (my analysis: unfortunately, even Google uses the term “international law but leaves open that the supposed law is merely a set of principles, not actual text agreed to by all nations.”

The result is that the term “international law” is a canard, a fiction. The concept most likely exists in order to circumvent moral and religious scruples while achieving the necessity to permanently rid the world of those who would commit such heinous acts.

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I really appreciate the chart of the volatility in goldprice during the Weimar collapse. Gives me courage to buy the coming dips and hold during the peaks.

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If the government will take Venezuelan oil, it will take your precious metals. First indication of a move in that direction is a joint venture between JPMorgan and the Department of “War” in a smelting operation. Next step, mining industries, then price controls. Let’s see here, how many decades did the government set price caps on gold?

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:rofl::bullseye:

https://x.com/Kanthan2030/status/2009405918858096710?s=20

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Hilarious!:rofl:

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The AI Asian Guy has two basic messages regardless of what he is talking about and how accurate he is. 1) He says if you’re invested in paper gold and silver markets you’re in a very dangerous situation and should get out if you can. 2) He says if you’re invested in physical silver and gold, hang on to it and don’t let the news or the price volatility scare you into selling. I’ve quit listening to him because I already knew that. That’s my strategy. All the shenanigans going on are entertaining to watch and learn from, but I’m not selling (yet). However, I too am considering my exit points and strategies.

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“ I too am considering my exit points and strategies.”

Ditto. A separate thread might be nice for the discussion.

Lots to say here and I need to organize my thoughts first. And many questions to ask - including which questions to ask.

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I think we have to realize, there is no rule of law anymore..not here in the US, not internationally.
I think we have to realize All the US markets are rigged.
I think we have to assume the Fed is buying bonds with the money offshore in the Caribbean.
I think we have to realize that
SWIFT WAS weaponized, the Petrodollar is a memory, and that facism is here..by which I mean those Public Private Partnerships.
WE, the taxpayers, are paying for JP Morgans silver smelter to be built in Tennessee.
WE, the taxpayers, have just invested 900 million in CITGO, a hedge fund owned company, who will use our money to help the oil companies sell oil. And we get NOTHING. we will have to pay the going price for oil.
OIL COMPANIES ARE NOT AMERICAN. THEY ARE INTERNATIONAL
the No KINGS is ringing in my ears..
Dave Collum is also ringing in my ears.
40 years of rot.
Im too old. How do I convince the young of my family “Come out of her O my children..Babylon the Great has fallen”

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I’d sure love to hear what you and others are thinking about this! I don’t see much online about it.

Susan

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This would be a VERY VALUE add to our PP subscription.
The big question is what to do wuth any fiat?

Stocks - in bubble, great taking
RE - in bubble , RE taxes, insurance

Is there a tread on this topic yet?

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A topic on PM storage as well.

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Hunger Games meets Mad Max. Plant a garden and try to stay sane.