London Paul: The Veil of Paper Gold Markets Could be Breaking
Tom welcomes Paul of The Sirius Report to discuss the short-sighted policies that are driving up the costs of most commodities. The Europeans are discovering they have few alternatives to Russian oil and gas. Nordstream 2 would have doubled the amount of energy available to Germany, but they instead decided to create their problems. The green revolution brought its own problems; including reducing the best green energy, nuclear. Wind and solar come with their own problems including most panels come from China. Logically, Europe can’t divest from Russian energy very quickly or perhaps at all.
In a sense, we now have a petro-ruble, and Russia may begin selling its other commodities for Rubles. There is consideration being given to backing the ruble with gold and this seems inevitable. Increasingly, global trade is being conducted in non-dollar terms.
Hiking energy costs and inflation are impacting the price of food in most countries. If manufacturing is halted due to a lack of energy then we’re going to see much more unemployment. Countries are destroying their economies. Many countries are taking notice, and there is a partial collapse of trust with the West.
The United States is going to have to learn to compromise if it’s going to be a part of the global economy. It needs to build strong relationships with nations that its currently at odds.
The Fed can’t raise rates significantly and other central banks admitthey can’t control inflation. Regardless, raising rates won’t have much effect on stagflation. The entire economy now depends on debt and credit.
He discusses the risks and lack of regulation in the crypto space and how it’s driven by sheer speculation.
Talking Points From This Episode
- Self-inflicted energy problems in Europe and the unintended consequences of sanctions.
- Food production insecurity is spreading globally.
- Collapsing trust in the West and the damage due to seizing sovereign treasuries.
- Why central banks can’t control inflation in a system awash in credit and debt.
- Concerns around cryptocurrency, stagflation, and the rapidly developing southern regions of the world.
Time Stamp References:
0:00 – Introduction
0:54 – Europe and Energy
8:17 – IMF & Ruble Strength
11:44 – Germany Energy Concerns
13:18 – Food Production
24:44 – Commodity Countries
26:56 – Rare Earth Dependencies
34:43 – Inflation & The Fed
53:38 – Crypto & Credit Markets
1:03:04 – Gold Purchasing Power
1:09:12 – Counterparty Risk
1:11:05 – Western Failures & Denial
1:19:12 – A Sirius Wrap Up
The Sirius Report is an independent website providing analysis and an alternative perspective on current affairs and global events that we believe are shaping a new political, economic and social paradigm. We are fully self-funded and are not backed by any third-party corporation, organization, or individual.
The site is run by ‘London Paul’ and his partner Lisa, who is the site administrator. ‘London Paul’ is a pseudonym that was first coined by long-time friend and fellow commentator Jim Willie. For privacy reasons, Paul prefers not to be known by his real name. He also feels that the primary focus should be on his work rather than on his identity.
Paul has a long track record of accurate predictions and analyses on geopolitical and economic affairs. Originally a physicist, he was awarded a Ph.D. in biomolecular physics, after which he spent some time working in academia. He then went on to work in the financial services sector and worked in some major banks until the financial crisis of 2008, when he left the banking sector to work in the precious metals sector. In addition to his vast understanding of economics and precious metals (a friend of his once jokingly said that ‘Paul is the only person I know who really understands derivatives’), he has also always had a keen interest in geopolitics. Through years of diligent research and conversations with certain key insiders, he has been able to gain a unique understanding of a geopolitical shift towards a multipolar paradigm that is now shaping the world in the 21st century.
Paul is not motivated by party politics and does not adhere to any particular political, religious or other movement. He likes a common-sense approach to everything and sees it as his responsibility to deliver completely objective, unbiased, and no-nonsense analysis, even if that means going against popular opinion.