Andrew Gause



Show highlights:

-Why do “the boys” want Trump out?  What does it mean that he is a nationalist?

-Trump opposes “the boys” global warming model.  They want cap and trade, carbon credits, more regulations and control.

-Trump threatens to be disruptive to global institutions such as NATO.

-Threatening prison to Donald Jr. is a way to pressure Trump to give them what they want.

-Big reason for opposition to Trump is potential disruption to free trade.  They see nationalism as abhorrent.

-Trump pokes big Pharma in the eye when he questions giving multiple vaccines in one day and wants to allow pharma imports.

-Now 3 times as much debt as there is money to pay.  We’re back to 2007.  QE unwind could be far worse than then.

-The Fed doesn’t print money out of air, they monetize money.  New money is backed by MBS – mortgage backed securities, which are issued every week.

-Why is the Fed talking about selling MBS?  We have controlled inflation now.  Inflation is too much money.  To counter too much money, Fed will sell bonds without buying any more, and this will take money out of the system.

-Bonds have been purchased on leverage.  How will the banks react to the Fed selling off bonds?  Will the economy collapse?

-Why does Andy say paying off debts and saving your money are the worse things you can do now?

-Janet Yellen of the Fed doesn’t know when inflation will hit.  But we’re near full capacity utilization, which will drive prices up, making inflation imminent.

-Stuart says Trump didn’t clean house.  He suggests all Trump can do now is to put the fear of God into the remaining lefties in the administration.

-Trump is a hawk, so the military-industrial complex is giving him slack.

Hour 2

-Andy says the only thing that can save us is fixing the corporate tax problem.   The real tax money comes from employees paying personal income taxes, not from the corporations.  Bringing jobs back to the US will boost personal income tax revenue.

-You don’t own your property, because a county can take back the rights to your property if you don’t pay property tax.  Lowest property tax is in Hawaii, NJ is highest.  The fly in the ointment of real estate investment is property tax – that’s why you mortgage.

-Parents, don’t cosign student loans.  Student loans are not a situation where debt is a blessing, especially for a liberal arts education, because often the degree is not marketable.  Unfilled jobs because kids don’t have the skills to fill them.

-“The Economist” says to get ready for a new world currency.  Andy says the new world currency will be the US dollar.

-Andy explains counterparty risk.

-Senate Bill 1241 “The Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2017” lets cryptocurrency be treated as cash.  It also requires anyone travelling beyond US borders to declare assets in writing and to provide ongoing access to all accounts held by the individual.  The government can track your cash, cryptocurrencies, and other assets in perpetuity.  Should your declaration come into question as to its accuracy, the entirety of those assets could be seized, plus a prison sentence imposed.   Benefit of numismatic coins – only need to declare the face value of the coin.

-Bitcoins options trading available.  Bitcoins are the new Swiss bank account.  Andy took umbrage at a listener’s statement that bitcoins are now legal tender.  Bitcoins violate Andy’s investment rules.

-Steve compiled a list in a Dropbox file of online directories of thousands of free educational courses.  Go to  Download the file first and then open to view.

-Andy is offering both of his books and 3 CDs, a $54 value, for $20 to ORN listeners.  CDs available for free.

-RBS, the Royal Bank of Scotland, agreed to pay a $5.5 billion fine to the US Federal Housing Finance Agency to settle a probe into the state of toxic MBS ahead of the financial crisis.

TJ asks, if the Fed gives all profits back to the Treasury except 6%, what is wrong with that?

-The Federal Reserve is a private institution and not a governmental agency.   The Fed takes their operating expense off the top, tax-free and then returns 6% to Treasury.   But their operating expenses include 6-figure salaries of the presidents, 47 Lear jets with pilots and crew, office buildings worth hundreds of millions, a curated art collection valued at cost of $30 million for private office use, all without audit and outside the jurisdiction of Congress.  The Treasury could perform all of the Fed’s functions.  There’s enough money in the Fed that the 6% the Fed returns back to the Treasury is $50 billion.  A profitable entity.

-The Money Plane story of pallets full of $100 bills loaded onto a US airplane for an overseas flight.  FBI thought it was money-laundering and conducted a raid, but discovered it was the Federal Reserve sending money to Russia for Russian Ministry of Finance bonds.   Was statecraft conducted by the Fed without the purview of Congress.

-To comply with new cybersecurity rules, Apple begins storing data for customers in China with a government owned company.  Means relinquishing some control over its Chinese data, violating the privacy of Chinese citizens.

Hour 3

-Why are silver coins so much cheaper than gold coins?  Silver is found 16 times as frequently as gold.  But Andy has a 1803 proof silver dollar for sale at $1.35 million, worth more than any gold coin he has.

-Rey asks: Did the G20 puppet leaders decide to crash cryptocurrencies, given the crash right after their meeting?

-Japan accepts bitcoin as legal payment method.  What’s next?

-Fake news by NBC for saying bitcoin is now legal tender for payment in California.  It is not legal tender anywhere on the planet.

-Andy looks for coins that are undervalued and have tremendous value, based on knowledge gained over 40 years of analysis.

-Bitcoin is like looking at today’s winning lottery numbers and playing those numbers tomorrow.

-Merijin said her understanding is that the G20, confronted with a volcano of debt of $2.17 quadrillion, keeps interest rates low to keep the debt manageable and raise the monetary value of property.  What may happen when interest rates increase and what might trigger such a decision?

-John asked, in light of Andy’s predicted market downturn this fall or early next year, should an individual sell or hold their stocks?

 -Andy is not as down on the equities market as on the bond market, the debt instrument market.  Stock in tangibles will hold their value better.

-Annuities are not a good bet in a rising interest environment.

-Kitty asks for a succinct explanation of why government price controls don’t work.  Andy says all they do is encourage the growth of the black market.
-Fed chair Janet Yellen says the US debt trajectory is unsustainable.

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Andrew Gause and The Real World of Money, July 12, 2017, Part One

Andrew Gause and The Real World of Money, July 12, 2017, Part Two

'Andrew Gause and The Real World of Money – The Only Choice The Boys Have Is To Keep Creating Dollars – July 12, 2017' has 1 comment

  1. July 14, 2017 @ 2:56 am Wesley

    Hi, I’ve lived in Asia the past 14 years. I worked both with factory floor workers and CEOs over here. Andy is 100% correct about the trade regime as he breaks it down in part 1. Also included is that union organizers regularly get brutalized or assassinated, or their family members hurt, picked up or disappeared. Analysis confirmed.


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