Bill Holter: Get Out Now Before Total System Collapse
Tom welcomes an absolute icon to the show, Bill Holter. Bill works and writes alongside the legendary Jim Sinclair.
Bill discusses the Feds Repo market break down that occurred last year and how the Coronavirus “saved” it.
Bill argues that everything is about the credit markets and not stocks. There is a lot of mortgage debt and rent delinquency, which means payments are not getting to the owners of that debt. He believes the credit market backs have now been broken due to the lack of debt servicing.
Debt is exploding rapidly, and it seems doubtful that the US has the gold reserves it claims. Those reserves were last audited in 1956, and there are numerous ways gold could have leaked out over the years. If the US has the gold it claims, it would still need to be revalued at $120,000 to back the current US debt.
The Comex is desperately acquiring metals wherever they can to keep up with delivery demand. When the Comex fails to produce the metal, that will break prices free to the upside, which appears to be occurring right now.
Bill discusses what a currency reset would look like and why you want to see a transition to real money and away from a paper-backed fiat system. He says, “Everything financial today is worth nothing.” He discusses why bonds have been a bad deal when compared to gold.
Pension funds may be acquiring metals via the ETF’s, but regardless there is nowhere near enough metals to back even a fraction of them. Eventually, the junior mining sector, which holds future reserves in the ground, will be the last place where investors will be able find any exposure to gold.
Talking Points From This Episode
- Repo markets and the pandemic.
- Importance of the credit markets.
- Exploding debts and valuing gold reserves.
- The multiple phases of a currency reset.
Bill Holter writes and is partners with Jim Sinclair at the newly formed Holter/Sinclair collaboration. Prior, he wrote for Miles Franklin from 2012-15. Bill worked as a retail stockbroker for 23 years, including 12 as a branch manager at A.G. Edwards. He left Wall Street in late 2006 to avoid potential liabilities related to the management of paper assets as he foresaw the Great Financial crisis coming. In retirement, he and his family moved to Costa Rica, where he lived until 2011 when he moved back to the United States. He was a well-known contributor to the Gold Anti-Trust Action Committee (GATA) commentaries from 2007-present.
Bill has retained a working relationship with Miles Franklin and can help with your precious metals needs, including transacting, shipping, storage, and even safe deposit boxes in non-bank vault facilities. Feel free to contact him with any of your questions or needs.