RON´S PANORAMA – ON THE INEVITABILITY OF SOCIETAL CHAOS, HOW THE ELITES WILL TRY TO MAINTAIN CONTROL – AND HOW YOU CAN PROTECT YOUR WEALTH
This is the excerpt of an excellent interview with Ron Holland, by Anthony Wile of the Daily Bell. If you missed this in July, we recommend you read it now.
Daily Bell: Thanks for taking the time to participate in another interview. Since you were here last time in December, things have continued to erode in the global economy. Do you feel the downward trend for the US dollar is going to change anytime soon?
Ron Holland: Thanks for having me back, always a pleasure. With respect to your question about the future of the US dollar, before I answer it, I would like to say that I am not anti-American in anyway and, in fact, quite the opposite. My views are firmly aligned with those who believe in an individual´s right to life, liberty and the pursuit of happiness. But today in America we see these rights eroding right along with the dollar. So I have begun to speak out along with millions of other Americans.
Daily Bell: Social discontent is definitely rising. That´s not news anymore. You see it coming to the US as well?
Ron Holland: As I prepare to leave for Mark Skousen´s FreedomFest conference in Las Vegas, I am more optimistic about peaceful change, painful though it may be. I think what´s going on is going to become massive and overwhelming. I don´t think it can be stopped and my hope is that it will get so large so quickly that violence is not even going to be an option. The Internet Reformation is exactly that – a reformation of the systems of control and it doesn´t have to be violent to happen.
Daily Bell: Well, even it´s not violent it can be painful.
Ron Holland: Absolutely. People can lose everything in troubled times.
Daily Bell: Not just in America or Europe.
Ron Holland: You´ve run a number of articles on China and that´s a key country. I tend to agree with you that it´s a troubled situation over there now and that not enough people understand the stakes. If China collapses, the rest of the world economy gets hit with a chain reaction that´ll hit harder than Tyson in his prime.
Daily Bell: They´re at a critical stage now with their tightening. They´re raised rates something like five times recently.
Ron Holland: There´s obviously a criticality here. Food prices are continuing to go up fast from what I´ve read. I believe the price of pork has gone up something like 50 percent and the Chinese like their pork. Real estate is going up – even though China made it illegal even to buy apartments for a while as I recall.
In these situations, where you already have what is basically out-of-control price inflation, governments have no choice. They have to slow the economy, really put the brakes on. This isn´t like other times for the Chinese economy…this is the real thing. They slowed down with everyone else in 2008, but the Chinese never slowed down all the way. They dumped something like one trillion dollars into the economy and they´ve been trying to wring it out ever since.
Daily Bell: You´re correct in these instances; it´s almost impossible for central bankers to get it right.
Ron Holland: They won´t get it right. How can they? They got it wrong with the initial inflation and now they´ll probably overshoot. They´ll tighten so hard that they´ll shove the economy into a real recession.
Daily Bell: That seems to be the choice. A significant slowdown or continued price rises. And those price rises are giving rise to considerable social unrest.
Daily Bell: Yes, more price inflation. Europe and America on the ropes. China´s not doing so well and the Western elites seem headed for war. What do you do in a scenario like this? There´s really no safety net.
Ron Holland: Well, it´s true – wealth protection is the name of the game at the moment. These are unusual times. I don´t pretend to know where gold and silver are going in terms of purchasing power, but the trend seems well established and I´d continue to examine wealth protection options in both gold and silver.
I´d actually prefer gold for wealth protection and long-term savings, as that is its history, but also think everyone should have some silver too for situations in which a real crisis develops. I mean one in which no merchant will accept dollars because of some sort of hyperinflationary devaluation.
As far as other currencies, none are linked to gold that I am aware of and therefore they are all inflatable – including the Swiss franc. There are more than 100 central banks in the world all operating under the direction of the elite controlled Bank for International Settlements in Basel, Switzerland – a globalist institution for sure. And all of the central banks inflate – all of them! And that means holders of those debt instruments are losing purchasing power.
If you want to get out of harm´s way, I think you must get out of US dollars and into gold – even at these prices. I don´t see much of a retreat as a matter of fact, not with the world´s economy in its current shape. These are big forces at work.
Daily Bell: So…physical gold, OK. But how about ETFs? Gold shares?
Ron Holland: Gold is only gold if you can touch it, under these conditions. Now I don´t mean you have to physically touch it every day, but you must have the real thing and keep it out of reach from those who would try and take it from you. You know, many people still find it hard to believe that in 1933 FDR passed the Gold Confiscation Act making it, essentially, an illegal act for American´s to own physical gold. And it stayed that way for 40 years!
Now that did happen in the United States and it happened when the confidence in the Federal Reserve and the overall economy was rapidly eroding during the Great Depression. So why would you think that the confiscation playbook wouldn´t be trotted out again? What makes you think that the yellow metal won´t be portrayed as a medium of use for illegal criminals, tax evaders, terrorists etc.?
I would hope the Internet Reformation will prove strong enough that people won´t be easily swayed into believing the propaganda and “democratically” support another wave of theft. And although it would be much more difficult this time to pull off such a confiscation attempt, I would not put it past them to try.
Daily Bell: So definitely not ETFs?
Ron Holland: ETFs are not physical gold. They are securities. Gold shares are not physical gold either; they are investments that entail many risks. Only physical gold itself is desirable, in my opinion, when a person is trying to protect the purchasing power of their wealth. And the gains in purchasing power that have been witnessed over the past 7 or 8 years is rather impressive, to say the least.
Daily Bell: What is the best type of gold to buy? Where does one store it for safety, considering the argument that a potential gold confiscation looms ahead?
Ron Holland: I only recommend buying bullion. Not numismatics or any other “scarcity-sell.” The cheapest form of bullion is gold bars. Coins carry additional costs. If you can afford it, transfer out of your devaluing paper money and into gold bars and acquire them with the least amount of fees involved.
With all fairness to US-based gold dealers, they have many costs associated with running their business. These costs add on to what you inevitably pay to acquire gold. However, even if you are able to acquire it for reasonable charge, you still are left owning it in the US and for me, right now, that is an unacceptable risk.
I recommend buying some gold for US storage where you can get your hands on it from reputable dealers here in the US. But for major investment diversification, consider an international specialist that handles both the buy and the sell and stores it for your account. In Switzerland, there are several providers of such services, but unfortunately either it is too burdensome for most to go there and open an account, or the minimums are too high.
Daily Bell: Switzerland´s not an option?
Ron Holland: Besides the travel costs, most Swiss banks will no longer accept American clients at all after the pressure the US has brought on that country.
Daily Bell: it was significant for sure, and remains so.
Ron Holland: There is one group to consider. I follow a program called Global Gold. Frank Suess, Chairman of BFI Capital Group, heads the firm, and he is a dear friend of mine and a member of the advisory board for the Foundation for the Advancement of Free-Market Thinking (FAFMT). Frank´s team has developed this program with a full understanding of the issues American´s face and why it is important to not only own gold but also own it in the right secure location.
Daily Bell: In Switzerland?
Ron Holland: Yes, Global Gold offers competitive rates, it is virtually commission free, and provides safe and secure storage of gold in a secure Swiss vault that is audited regularly by Ernst & Young. I think the Global Gold Program is definitely something for Americans to consider. The minimums, and this is important, are fairly low to participate – starting at US$50,000.
Daily Bell: That´s very low.
Ron Holland: This sort of service, to reconstruct for the individual is expensive – if not impossible. It´s a millionaire´s type service. But by making it available, broadly instead of exclusively, we think we´re offering a great service that people can take advantage of. What is most important, no matter how you do it, is that people get out of devaluing dollars and into honest money – gold.
And they should strongly consider the history of their government and its propensity to act in irrational and confiscatory ways. People think government is some sort of logical, rational power. It´s not. People who go into government, more than most, are out simply for themselves. They´re willing to put up with an unchallenging – even useless – job because of the security.
The idea that people with this mindset are going to “protect” society when things go wrong is ludicrous. These people are WHY things are going wrong in the first place. And you have to protect yourself from them. Doesn´t matter what the form of government is – democracy, monarchy, communism … its all the same after a certain point. Human nature doesn´t change. No one is going to protect your family but you if things get really bad.
Daily Bell: Anymore hints?
Ron Holland: Not now. Only than to say it is not only important to have your wealth safely secured in jurisdictions that are welcoming, but also to have an option of similar character for you and your family physically as well.
Daily Bell: We´ll have to have you back. Thanks for sitting down again and enjoy FreedomFest. Please say hi and congratulations to Mark Skousen and Tami Holland from DB.
Ron Holland: I´ll be pleased to come back. It´s been my pleasure. And before I go, I would like to encourage all readers to help support the non-profit Foundation for the Advancement of Free-Market Thinking by making a financial donation – of any size.
As I mentioned above, I am more optimistic now than ever before that real change is possible, perhaps even likely – thanks to the ´Net Reformation that is taking place. The efforts of the DB staff in bringing forth an advertising-free and uncompromised educational effort is helping to make a real difference out there and the audience is surely growing rapidly. Many people email me daily with complimentary words of encouragement about the good work the DB is doing and the bottom line is that the word is really starting to get out there about the benefits of free-market thinking. Consider helping the DB team in their efforts to build on this momentum and move the Internet Reformation forward even faster: Click here to help.
For the full Daily Bell interview click here.