Jaime Carrasco: World Power is Always Shared Between the Biggest Energy Producer and Buyer
Tom welcomes Jaime Carrasco of Canaccord Genuity back to the show.
Jaime discusses the price valuations for miners with gold in the ground and why some remain very undervalued. These are amazing opportunities to buy into something the world will need soon. You need hedges to protect you from what is coming. It’s important to have your own gold and these events only happen every hundred years or so. Many challenges are coming.
SWIFT only works with Euros and Dollars and Russia no longer wants those currencies. Today, however, Russia is the largest producer while China and India are the largest buyers. The world is deciding what currency to use in their new system. Saudi Arabia, UAE, Venezuela, and Mexico are siding with Russia.
Every time currency systems shift the biggest losers are the countries with the most debt. This is the elephant in the room.
Since the Ruble is rising in value and is being backed by gold a relationship and floor are being put in for gold. Now consider Canada’s non-existant gold reserves.
Russia is a net buyer of gold so sanctions on metals has a minimal effect. Nickel is an example of the risks of owning paper contracts in a crisis. We’re losing control of the commodity markets and the exchange pricing is shifting to the Eastern markets.
Economic unravellings take about two years to play out. Two years to collapse and then the rebuilding starts. We need a complete cleansing of the system.
Great leaders only come out of hard times and we’re going to need to go through that period first.
Housing markets usually crash because banks stop lending. Rates would have to rise quite a bit for inflation to be prevented. They can’t raise rates much without killing the stock markets.
Gold is going to have to move much much higher to rebalance the system.
Time Stamp References:
0:00 – Introduction
1:47 – Golden Consequences
4:46 – Positioning and Pullbacks
7:18 – HUI VS. Gold
9:18 – SWIFT and Russia
14:23 – Gold-Backed Ruble?
16:14 – Metals & Sanctions
18:36 – Chilean Story
20:20 – Unintended Consequences
23:04 – Inflation & Impacts
26:10 – Rate Hike Effects
32:52 – Debt and Currencies
35:52 – Liquidating Treasuries
37:23 – Great Leaders?
39:16 – Blockchain & Crypto
43:36 – Exiting the System
45:27 – Rates & Real Estate
48:45 – Gold Projections
50:32 – Two Portfolios
54:44 – Wrap Up
Talking Points From This Episode
- Russia’s petroruble alternative to the SWIFT system
- The continued consequences of excessive money printing and debt.
- Why blockchain may be the decentralized solution for gold.
- Why gold is heading much higher due to massive fiat money creation.
Jaime Carrasco is portfolio manager at Canaccord Genuity Inc. in Toronto. From 2014 to 2018 he worked as Director of Wealth Management and Associate Portfolio Manager for ScotiaMcLeod. Before this, he worked for Macquarie Group, CIBC Wood Gundy, BMO Nesbitt Burns, Gordon Capital, and Merrill Lynch.
Jaime is a leading Canadian investment professional with 25 years of experience providing wealth management and investment counsel to affluent families, businesses, and institutions. He has garnered a reputation for questioning and challenging the status quo and exploring the most innovative investment strategies.
Jaime, whose mother tongue is Spanish, also speaks Italian and French. He completed a BA in political science and economics at the University of Toronto in 1988. While a student, he worked for CS Yacht, a company that built luxury sailboats, thus spending his summers as a skipper for the Canadian establishment members. Jaime credits this experience and having survived sailing through Hurricane Bob in 1991. This experience taught him lessons that have become a metaphor for his financial investment strategies.
“Like one’s financial wealth, sailing is not about controlling the wind, but rather about adjusting the sails.”