How the Global Financial System Could Shut Down, According To Jim Rickards


We are potentially entering an “Ice-9” situation where the entire world may “freeze” over economically, said Jim Rickards, best-selling author of “The Road to Ruin” and “Aftermath: Seven Secrets of Wealth Preservation in the Coming Chaos.”

Rickards is using a metaphor, alluding to a Kurt Vonnegut book, “Cat’s Cradle.” In the book, a vial of “Ice-9”, a liquid that has a freezing point of room temperature, leaks into the streams and rivers and turns all water into ice, effectively covering the planet in an ice age and wipes out all life.

Something similar may be underway, financially, when markets halt trading activity, he said.

“If you shut down the New York stock exchange, and I can’t sell stocks and get cash, I’m going to sell my money market funds or redeem my money market funds. Then you’ve got to shut down the money market funds industry, and then people say ‘ok, I’ll go to the banks or the ATMs,’” he said. “And then you’ve got to shut down the banks so the point is, it spreads from exchange to money markets, to brokerage accounts, to banks, and you end up shutting down the entire system.”

At the end of an Ice-9 scenario, the entire global financial system shuts down, and any Federal Reserve intervention may no longer be effective.

Rickards noted that contrary to conventional economic thinking, now is not a bad time to own gold.

“People say that gold does well in inflation, and you don’t want to have gold in deflation, and we may be looking at deflation, that may be coming, but the point I make is the greatest period of sustained deflation in U.S. history was 1927 to 1933 and in that period, gold went up 75%,” he said.

Gains in gold in today’s condition would be even higher, Rickard said, since gold was fixed in 1933, which is no longer the case today.

Additionally, Rickards said investors should store their gold “a bicycle ride” away so that in the worst case scenario, it would become accessible should people need to evacuate cities by bicycle, which would be more effective during a gridlock than cars.

The Coronavirus Hoax

 

 

 

 

 

March 17, 2020
By Dr. Ron Paul

Governments love crises because when the people are fearful they are more willing to give up freedoms for promises that the government will take care of them. After 9/11, for example, Americans accepted the near-total destruction of their civil liberties in the PATRIOT Act’s hollow promises of security.

It is ironic to see the same Democrats who tried to impeach President Trump last month for abuse of power demanding that the Administration grab more power and authority in the name of fighting a virus that thus far has killed less than 100 Americans.

Declaring a pandemic emergency on Friday, President Trump now claims the power to quarantine individuals suspected of being infected by the virus and, as Politico writes, “stop and seize any plane, train or automobile to stymie the spread of contagious disease.” He can even call out the military to cordon off a US city or state.

State and local authoritarians love panic as well. The mayor of Champaign, Illinois, signed an executive order declaring the power to ban the sale of guns and alcohol and cut off gas, water, or electricity to any citizen. The governor of Ohio just essentially closed his entire state.

The chief fearmonger of the Trump Administration is without a doubt Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases at the National Institutes of Health. Fauci is all over the media, serving up outright falsehoods to stir up even more panic. He testified to Congress that the death rate for the coronavirus is ten times that of the seasonal flu, a claim without any scientific basis.

On Face the Nation, Fauci did his best to further damage an already tanking economy by stating, “Right now, personally, myself, I wouldn’t go to a restaurant.” He has pushed for closing the entire country down for 14 days.

Over what? A virus that has thus far killed just over 5,000 worldwide and less than 100 in the United States? By contrast, tuberculosis, an old disease not much discussed these days, killed nearly 1.6 million people in 2017. Where’s the panic over this?

If anything, what people like Fauci and the other fearmongers are demanding will likely make the disease worse. The martial law they dream about will leave people hunkered down inside their homes instead of going outdoors or to the beach where the sunshine and fresh air would help boost immunity. The panic produced by these fearmongers is likely helping spread the disease, as massive crowds rush into Walmart and Costco for that last roll of toilet paper.

The madness over the coronavirus is not limited to politicians and the medical community. The head of the neoconservative Atlantic Council wrote an editorial this week urging NATO to pass an Article 5 declaration of war against the COVID-19 virus! Are they going to send in tanks and drones to wipe out these microscopic enemies?

People should ask themselves whether this coronavirus “pandemic” could be a big hoax, with the actual danger of the disease massively exaggerated by those who seek to profit – financially or politically – from the ensuing panic.

That is not to say the disease is harmless. Without question people will die from coronavirus. Those in vulnerable categories should take precautions to limit their risk of exposure. But we have seen this movie before. Government over-hypes a threat as an excuse to grab more of our freedoms. When the “threat” is over, however, they never give us our freedoms back.

A True Story: How I Ended Up Next to $8 Million Worth of Tequila

Note from Dudley Pierce Baker, founder of Common Stock Warrants and Junior Mining News.
I am the Dudley/Daniel referred to the this article below and yes, it was an incredible day with E.B. Tucker and John and especially meeting Felipe, the owner of G4 Tequila. Being the nature of competition I guess, E.B. did not mention that I have a stock warrant service. We chatted about warrants, others in the business, where we see the markets going and of course, tequila.

CASEY DAILY DISPATCH - Casey Research
Editor’s note: Today, we’re bringing you a classic story from our very own E.B. Tucker.

E.B.’s not just a successful investor. He knows the importance of getting away from your desk… and he’s gone on numerous adventures abroad.

That’s why we had to share his tale from Mexico again. Along with his analyst John Pangere, E.B. got a behind-the-scenes look at a tequila distillery… and winded up meeting a stowaway and an IRS agent.

You can find out more below…


How I Ended Up Next to $8 Million Worth of Tequila

By E.B. Tucker, editor, Strategic Trader

E.B. Tucker

I went to Mexico in February with Strategic Trader lead analyst John Pangere.

After spending a few days in the ritzy Polanco neighborhood of Mexico City, John and I headed for Jalisco state to check on one of his personal investments.

Prior to joining my team, John was working as an analyst focused on private investments. He worked on financing for a startup company that planned to import a new premium tequila from Mexico. He learned the tequila would be new to the U.S., but the family producing it was fourth-generation.

They called the product G4.

John and his father Ross got involved in the upstart distribution company as passive investors. Over time, they got more involved. They met the man behind the exceptional product and ended up taking over the entire business.

To be clear, John is not involved in producing tequila. He merely has the right to coordinate its distribution in the U.S. and Canada. In the U.S., that means choosing which distributor in each state will comply with the local laws and get the product behind the bar or on the liquor store shelf. If the product takes off, it can turn into an impressive royalty business with a remarkably low overhead.

And recently, John asked if I wanted to go down to rural Mexico and check on the distillery.

Of course I did.

And I ended up in rural Mexico with an intoxicated stowaway and a former IRS agent in a rental pickup truck…

 

We took an early flight into Guadalajara from Mexico City. The plan was to get out to the distillery and back to the airport in one very long day. In retrospect, it was somewhat ambitious.

A Fourth-Generation Tequila Distiller

Having been to almost every part of Mexico looking at gold and silver mines, I’m not at all afraid of traveling there. In fact, in all of my trips I have never once run into trouble. Most Americans cringe when you mention visiting the country. I will rent a pickup and head off to parts unknown without thinking twice.

We took off from Guadalajara heading north, then east, looking for a town called Arandas. Once we found it, we headed down a smaller road to Jesús María. After that, we hit a dirt road looking for the agave plantation.

Agave is the key ingredient in tequila. Besides water, it’s the only ingredient.

The plant looks like a giant pineapple. The core grows in the dirt, while the thick green leaves flare out above. Tequila makers only use the heart of the plant and discard the leaves.

I had seen plenty of pictures of agave plants. After George Clooney invested in Casamigos (which sold for close to $1 billion), tequila ads started popping up everywhere. The ads for premium tequila often show pictures of agave fields.

These big-flared agave plants shown in premium ads are deceptive. Bigger is not always better. Similar to grapes for wine production, the size of the plant does not matter. Weather, rain, and altitude all affect how the agave plant looks as it grows. Time in the ground also varies. Some growers harvest plants in just a few years, while others wait close to a decade.

A skilled tequila distiller knows to ignore the size, shape, and color of an agave plant and focus on just the sugar content. A fourth-generation tequila distiller, like the man pictured below, does it instinctively.


Me, John, and our local gringo friend Dudley with fourth-generation tequila distiller Felipe Camarena

The first thing Felipe Camarena said to me when we met was, “Excuse me; I’ve been drinking a little since Saturday.”

…We arrived on a Tuesday.

Camarena produces tequila in the same region as his father and grandfather did. It’s in his blood… And he had a lot of it in his blood when we met.

The quality of a premium tequila rests solely on the distiller’s instinctive skill. As I mentioned, agave and water are the only ingredients. The rest is art.

I am not a drinker, so I didn’t know a lot about tequila when we arrived. I asked Felipe to arrange a full tour of his operation, start to finish. I wanted to see how the product goes from agave plant to bottle.

Tequila – From Plant to Bottle

The first step in the process is harvesting agave. The distiller is going for the optimal sugar content. Too young, too old, too large, or too small, and the wrong mix of agave can cheapen the process.

The agave arrive without leaves. Field workers remove those with a machete. Again, picture a pineapple without the leaves on the head.

Next, workers at the distillery use machetes to split the agave in half.


Agave plants ready for processing

As far as the workers at the distillery, most speak English and have a technical background. These guys are very sharp. It’s part of what makes premium tequila stand apart from bottom-shelf junk.

The agave plant has very high sugar content. That sugar is what the distiller wants. To extract it, he has to cook the plant and then crush it, which produces a juicy syrup that starts the distillation process.

After workers split the agave in half with a machete, they remove the heart, which you’ll notice littering the ground in front of the split agave pictured above. This heart makes the product bitter if it’s cooked with the rest of the plant.

With the agave plants split, workers load the halves into a stone cooking furnace. This is the traditional way to cook agave. Some mass-market tequila makers use an acid bath to extract sugars from agave. It’s faster and cheaper. If you’ve never had tequila, you wouldn’t know the difference. If you have, there’s no going back.


E.B. inside the agave oven

The stone oven I’m standing in holds 27 tons of agave. That’s about 24,500 kilograms… or over 54,000 pounds. Each 10 kilograms of agave plant loaded into this oven will ultimately produce about one liter of tequila. That means this fully loaded oven will turn into around 2,500 liters of tequila on the store shelf.

The cooking process takes two days. The first day is the actual cooking, with heat applied through the floorboards below. You’ll notice (in the photo above) the plants are strategically packed so that warm air can circulate through them. The second day, the agave sit in the oven without heat, which allows them to cure.

After two days in the oven, the cooked agave go into a stone pit that looks like a small loading dock. A homemade steamroller crushes the cooked agave, sending the sugary extract into a fermentation area.

It’s All About the Water

Tequila is essentially fermented agave and water… But not just any water.

Felipe Camarena uses three sources of water to make his tequila: rainwater, spring water, and deep well water. He wouldn’t tell me how much of each, but I gathered he mixes on instinct, not formula.

The agave and water mixture heads to fermentation tanks for five days. Then, it goes into a still.

The still hasn’t changed much since people made hooch in the woods during Prohibition. The copper pots shown here have a copper coil running through them that looks like a corkscrew.


Stills turn fermented agave and water into clear alcohol

The operator turns up the heat, making steam from the fermented agave and water mixture. The condensation from that steam drips into the stainless steel tanks in the middle. The distiller tests the alcohol throughout the process to make sure it meets purity standards.

The finished product is clear tequila, also called “blanco.” Some of that heads straight into a bottle and onto a truck. It’s ready to drink.

The rest of the blanco tequila goes into barrels for aging. It turns into three different types of tequila, depending on how long it ages in the barrel. Each barrel holds 200 liters.


E.B. in front of $8 million worth of barrel-aged tequila

G4 sells four types of tequila:

  • Blanco – Ready to drink immediately
  • Reposado – Aged at least six months
  • Añejo – Aged at least 18 months
  • Extra Añejo – Aged at least three years

The longer the tequila ages, the darker it becomes. The Extra Añejo is good for sipping, while the blanco goes in the blender at a pool party.

John’s investment in the tequila business is in good shape. He’s especially taciturn when it comes to discussing specifics. I did manage to get an admission that after its first full year, case shipments to U.S. distributors were up triple-digits in the first quarter.

Back in Florida, I bought several bottles at the local liquor store as gifts for friends. They told me the product was exceptional.

If you’re inclined, the company’s website has a locator that lists restaurants and stores that carry the product.

The Stowaway and the IRS Agent

Things got a little tricky when we tried to leave the distillery.

For starters, we had another gringo in tow, named Dudley. He goes by “Daniel” in Spanish. After I told a friend about the upcoming trip, he introduced us over email.

Daniel moved from Texas to Guadalajara in the late 1990s. He jumped at the chance to come see the distillery with us. He said he loves tequila. I was glad to have him, figuring if we ran into trouble in the Mexican interior, six fists give better odds than four.

About halfway through the drive, Daniel pulls out his IRS badge. Granted, he retired years ago and came to see the agency for what it is. I told him the only difference between the mafia and the IRS is that the mafia headquarters doesn’t fly a big American flag.

Since John barely drinks and I don’t drink at all, we left Daniel to do all the tasting with Felipe. He did great. So great in fact, that Felipe didn’t want us to leave. Determined not to spend the night in the hills of rural Mexico, I told John, “We’re leaving.”

Felipe wasn’t having it and got in the rental pickup truck with us. There’s no reasoning with a man who’s been making tequila for 50 years and drinking it for a week straight. He nearly tore the truck apart looking for a cigarette lighter before we could pacify him with the promise of a stop at the next crossroads.

Things worked out great in the end. We had some of the distillery staff rendezvous with us in Jesús María for an early dinner. Then, we had to tell Felipe we’d be back in a minute and make a run for the car. If we hadn’t, I think we’d still be there today.

Felipe Camarena is a man whose life’s work is making some of the best tequila in the world. Of course, he wants his guests to stay and enjoy sipping it with him for days on end. He’s passionate about his product and it shows.

If you do run across G4 Tequila at a restaurant or your local store, give it a try. It’s nice to know where it comes from.

Regards,

signature
E.B. Tucker
Editor, Strategic Trader

The Platinum Breakout & Bull Market Of 2020

January 27, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

THE PLATINUM BREAKOUT & BULL MARKET OF 2020

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

TRADING STRATEGIES FOR GDXJ, SPY, BONDS, AND NATURAL GAS


January 22, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

TRADING STRATEGIES FOR GDXJ, SPY, BONDS, AND NATURAL GAS

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Private Companies Challenged By Mexico Policies

Private Companies Challenged By Mexico Policies

  • By Jim Bentein
  • Monday, January 13, 2020, 1:40 PM MST

 

Since socialist-leaning Andres Manuel Lopez Obrador (AMLO) was elected Mexican president in 2018, it’s been challenging for privately-owned companies like Vancouver-based Renaissance Oil Corp. to operate in the country.


AMLO has reserved policies under former market-friendly President Enrique Pena Nieto, who had sold off Pemex assets to companies from juniors like ROC to super majors like Exxon Mobil Corporation, and had encouraged private sector partnerships with Pemex.

Last week AMLO reiterated his pro-Pemex stance, announcing that his government is not planning to reopen oil and gas auctions this year, ending hopes his government might spur private sector investment in the energy sector.

But despite the heavy debt load Pemex carries, AMLO’s government continues to be determined to renew its past glories, when it produced about three million bbls daily, mostly from shallow offshore finds.

This has made it difficult for companies like ROC, which entered the country in 2014, subsequently gaining ownership of three former Pemex properties in the southern state of Chiapas and forming a partnership with Lukoil to win rights to develop the 243-square kilometre Amatitlan block in central Mexico.

The company planned a 10-well program, initially targeting Chicontepec sands with the potential to produce thousands of bbls/d of oil, mostly using unconventional production methods.

But the real prize on the property is the Upper Jurassic shales under the entire block where the company sees the potential for several “elephants.”

However, the only way to develop those assets is through fracking, which AMLO is opposed to amidst a growing anti-fracking movement in Mexico.

Kevin Smith, ROC spokesperson, said the company believes it still has a promising future in Mexico, despite the policy reversal of the AMLO government.

“The home run opportunity is still in the Amatitlan block, but we think we can still be a substantial producers from our Chiapas blocks,” he said.

The company is continuing its negotiations with Pemex involving ownership stake and production approaches.

The political difficulties in Mexico aside, ROC, which is not yet profitable, has been able to raise millions from wealthy investors. Last March, for example, it announced it had raised $5 million from selling shares at 25 cents each to a wealthy Mexican family.

However, despite the lack of enthusiasm for the company’s shares from retail investors, it has been able to attract interest from well-heeled investors. Recently it had issued 6.57 million common shares, at 20 cents each, to an unidentified investor, raising $1 million, who was revealed to be Pierre Lassonde, chairman of Canadian-based mining and oil and gas giant Franco Nevada Corp.

Meanwhile ROC is concentrating on its Chiapas properties.

“We still think there’s a large role for us in Mexico,” he said.

The company is producing about 1,260 boe/d from the three Chiapas blocks — Mundo Nuevo, Topen and Malva — and has plans for an aggressive drilling program this year.

“We have plans to drill four wells and do three workovers on the blocks this year,” he said. “We think we can increase production by five times.”

WHAT TO EXPECT IN EARLY 2020


December 31, 2019
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

Stock & ETF Trading Signals

WHAT TO EXPECT IN EARLY 2020

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Don't overlook the power and leverage and the opportunities using stock warrants on your favorite companies.

 

 

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Chris Vermeulen Looks For New Trading Setups For 2020

December 19, 2019
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

Stock & ETF Trading Signals

 

VERMEULEN AND SWANSON LOOK TO NEW TRADING SETUPS FOR 2020

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

A few examples for you to see the power and leverage of using stock warrants.

Stock Warrants – Power Point Presentation

 

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

CYPER MONDAY SPECIAL

In the spirit of the day, I have decided to have a special discount on my services which will allow new customers the opportunity to see what I have offered for over 14 years.

Upon signing up, enter the coupon code     gold     to receive a 50% DISCOUNT off of either my Silver or Gold Subscription.

DOES NOT APPLY TO MY LIFETIME SERVICE WHICH IS ALREADY A BARGAIN AT $2,500.

My stock warrants database is a one of a kind, sortable by expiry date of warrants, name of company, symbol and much more.

Included are all stock warrants trading in the United States and Canada, including all industries and sectors.

If not familiar with stock warrants download for free from my website,

“The Stock Warrant Handbook, Your Personal Guide To Trading Stock Warrants”.

THIS OFFER WILL EXPIRE AT 12 NOON ON TUESDAY, DECEMBER 3RD.

Dudley Pierce Baker
Founder - Editor
CommonStockWarrants.com