Source: Getty Images, US Treasury Secretary John Connally
‘The dollar is our currency, but it’s your problem.’ That’s what then US Treasury Secretary John Connally privately told members of the G-10 at a meeting in Rome in late 1971. This was after the ‘Nixon Shock’ in August, when the US dollar was no longer redeemable for gold to foreigners. A 20% devaluation in the dollar ensued.
We bring back Bill’s key energy, resources, and mining expert Byron King for a public discussion thread on Thursday, April 14th, at 1pm. We’ve asked Byron to discuss if we are, as Credit Suisse analyst Zoltan Pozsar recently wrote, in a Bretton Woods III Monetary system—a new system where economic power shifts to commodity producers, who may no longer have to sell their natural resources in US dollars (our commodity, yourproblem).
Byron’s here to discuss the release of oil from the Strategic Petroleum Reserve (SPR) and its potential effect on oil and gas prices. He can also discuss the recent spike in fertilizer prices and what that may mean for consumers (and investors) this summer. He’s also here to discuss whatever YOU’D like to discuss.
A few reminders:
Please don’t ask for personal investment advice. We can’t give any. Neither can Byron.
The discussion threads are not recorded, and not available as audio or video. You can leave your question at any time, or read the threads at your convenience.
Byron will begin reviewing and answering in real time at 1pm EST on Thursday, April 14th. He’ll get to as many topics as he can.
This is the first of several opportunities over the next week for all our readers to see what kind of research and content is available to paying subscribers. Paying subscribers received advanced notice of this thread. And we’ve made it a goal to arrange a more personal private briefing (via Zoom or Webinar) once every other month for our subscribers. We thought rather than telling you what happens behind the curtain, we’d show you. Enjoy!
PS Yes, it’s THAT John Connally. Connally was the governor of Texas and sitting in the front passenger seat of President Kennedy’s limousine when JFK was shot on November 26th, 1963. Connally was shot in the wrist.
If you’re reading this in your email browser, on your mobile phone, or in the Substack App, click on the link immediately below to the discussion thread and leave your comment or question. If you’re reading this on the website, scroll to the bottom of this message to read other posts or make your own.
Did none of our elite geniuses see that telling Mr. Putin he was no longer invited to trade in dollars that he might...just might seek another medium in which to trade? And did NOBODY consider that if a new medium could be found that the real bully on the block - the USD - might get kicked to the curb? I suppose not because if any of the puppeteers had a lick of sense they'd have realized that the last domino is their power to print unlimited money. I suppose there really is no accounting for stupid. I'm buyin' gold man.
Greetings, everyone. Byron here. Taking a head start on the 1300 Q&A. First things first... I am NOT giving personal investment advice. (Have to say that, per the lawyers.) I'll do my best to address as many points as possible. If I offer anything that sounds like a financial opinion, let alone mention any companies, it's just that -- one man's viewpoint. It is not a recommendation or a trackable portfolio listing. And also, as a "retired list" senior US Navy officer, I'm also obliged to note that nothing I say regarding the current state of military affairs -- US, allied, Russ-Ukraine or whatever -- is "official." I do NOT speak on behalf of US Navy, US Dept of Defense or US Govt. And with those formalities on the table, I'll now dive down and address items below. Best to all, incl to note that it's Good Friday/Passover tomorrow, and Easter weekend upcoming. Be well, and blessings to everyone. BWK
What most Westerners don't seem to understand is organizations like NATO and the UN don't stop wars they're the means to make a small dispute morph into a world war. If USA had never entered into WW1, WW2 would never have happened. All the combatant nation were essentially on the verge of bankruptcy. Peace would have prevailed with well a negotiated end to hostilities.
USA entering into WW1 caused a false conclusion no peace was established Germany was economically destroyed. With seemingly no hope of normalcy the first strong man promising to restore real money to the economy was ushered in. The Nazis' replaced the worthless paper with 80% silver coinage. Once his hold on power was established and blessed by the Pope in Rome the silver was replaced with brass. (First Reich was the Roman Empire, second was the (not Weimar it was never an empire) Holy Roman Empire, The Third Reich was German Empire
Without the US petrol dollar controlling the world's currency (established by Nixon with the Saud family) there will be no need for USA to act as the military protectorate of the Saud fiefdom. That should get the bombs flowing from Iran to Saudi Arabia. The first to be launched from Iran will target Mecca not Israel.
I know it might seem hard to believe but Joe Biden and the US citizenry supporting Ukraine has set the wheels to WW3 in motion. All it will take is a misguided drone strike from Ukraine with a drone supplied by USA or a contrived event like the Gulf of Tonkin incident or the sinking of the Lusitiania. China is much the same, they have long memories like the Boxer Rebellion where USA was protecting the Opium trade in China. The West got a huge part of the Chinese population addicted to Opium to spark trade of Chinese goods into the West.
We never learn this time around we are going to be sorry for our blunder into the East.
THAT John Connally, was not just shot in the wrist.
According to Wikipedia, "Connally suffered a fracture of the fifth rib, a punctured lung, a shattered wrist, and had a bullet lodged in his leg." The result of the having been injured by the "magic bullet", the one that was found pristine on a stretcher in Parkland Hospital.
Interesting that THAT Connally, was present for two massive turning points for the USA Republic. The military coup in '63, where for all intents and purposes, is where the Republic's u-turn begins and the path to ultimate disintegration of state begins. And then the cutting of the ties between the fiat paper dollar and what tethered it to reality. Gold. Which further accelerated the Republic's slide into oblivion.
One has to wonder if John was able to grasp the irony of his role, in the eventual destruction of the institution he served most of his life, as he lay on his death bed in '93. His family had no such compunction, as they refused to have the "pristine bullet" fragments removed from his leg after his death, which would have proved that the Magic bullet had been nothing more than an illusion.
I am always interested to hear opinions about the gold vs bitcoin debate. Most people agree bitcoin is more available to retailers to own, but adoption has a long way to go before its a true store of value. People in both camps agree that the fiat dollar is garbage as a store of value. I tend to consider gold a store of value but bitcoin could be the ultimate risk on asymmetric bet for major growth because it is basically hardwired to be deflationary as long as usage grows.
Okay, we're at the end of the online session. I hope this was helpful. Appreciate everyone's time and interest. Many great questions and comments. You all are a resource of knowledge. Thank you all for being part of the Bonner Private Research group. Best wishes for this Easter weekend. And best of fortunes in your investments, as well as life in general. Stay healthy. Pray for peace. BWK
Putin is a very smart man who actually listens to and implements the recommendations of his financial advisors. When the Anglo American Axis froze Russia’s owned foreign currency reserves plus locked it out of the Swift settlement system, Russia was forced to develop a viable alternative. Amazingly, 75% of the world’s countries still do business with Russia and perhaps they see that a gold-backed Ruble is far more trustworthy than debt-backed dollars.
They also must worry that the West will freeze (steal?) their dollar denominated assets. The idiocy of our leaders’ decisions is rapidly bringing about the demise of the dollar as the global reserve currency. Gee, where can I get some gold backed rubles?
To John Austin who has be blocked from relying to his post.
Some day when free men once again gather to discuss the rise and fall of Western civilizations they will study our time. These men will undoubtedly conclude once again the fall came on upon us shortly after an end was made of free thought and free expression of ideas.
They will point to the very moment when ignorant, arrogant and condescending men appointed themselves as moderators over the public forum.
Have heard all kinds of opinions and predictions on the fall of the dollar. Seems the dollar has been extraordinarily resilient over these last 50 years. It appears the demise is accelerating but is that just because we have info 24/7 streaming or is it truly related to the insane money printing? Finally why do the countries (even those deemed as enemies) keep buying Treasuries to prop up the dollar. If buying stopped or if Russia shuts off the gas seems like it would be a game changer. Is it a matter of balancing collapse of your own country? All the best!
Can you comment on the investment Tom address in energy sector…XOP. It was originally a buy but it was stated it may not a time to buy due to rising energy costs. Then in another article it was a buy. Can you clear this up for me? Thanks
Sure would of been nice to watch the podcast today with Byron but your thread link did not allow for me to access it. I tried every way including logging into my account and nothing
I’m terms of the trade of the decade with respect to energy and oil producers specifically: what do you see the future being for the large oil companies that are selling off large Russian holdings give the war in Ukraine? Shell comes to mind, letting public sentiment forcing them to sell off large Russian LNG components.
Is there any fundamental reason why governments should wield control over currency or monopolize money? Are we in the midst of a shift to a capitalism of decentralized finance?
Byron do you see fertiliser, oil and gas prices climbing steadily throughout 2022, or can we expect some violent pullbacks along the way, before prices resume their uptrend?
Did none of our elite geniuses see that telling Mr. Putin he was no longer invited to trade in dollars that he might...just might seek another medium in which to trade? And did NOBODY consider that if a new medium could be found that the real bully on the block - the USD - might get kicked to the curb? I suppose not because if any of the puppeteers had a lick of sense they'd have realized that the last domino is their power to print unlimited money. I suppose there really is no accounting for stupid. I'm buyin' gold man.
Greetings, everyone. Byron here. Taking a head start on the 1300 Q&A. First things first... I am NOT giving personal investment advice. (Have to say that, per the lawyers.) I'll do my best to address as many points as possible. If I offer anything that sounds like a financial opinion, let alone mention any companies, it's just that -- one man's viewpoint. It is not a recommendation or a trackable portfolio listing. And also, as a "retired list" senior US Navy officer, I'm also obliged to note that nothing I say regarding the current state of military affairs -- US, allied, Russ-Ukraine or whatever -- is "official." I do NOT speak on behalf of US Navy, US Dept of Defense or US Govt. And with those formalities on the table, I'll now dive down and address items below. Best to all, incl to note that it's Good Friday/Passover tomorrow, and Easter weekend upcoming. Be well, and blessings to everyone. BWK
What most Westerners don't seem to understand is organizations like NATO and the UN don't stop wars they're the means to make a small dispute morph into a world war. If USA had never entered into WW1, WW2 would never have happened. All the combatant nation were essentially on the verge of bankruptcy. Peace would have prevailed with well a negotiated end to hostilities.
USA entering into WW1 caused a false conclusion no peace was established Germany was economically destroyed. With seemingly no hope of normalcy the first strong man promising to restore real money to the economy was ushered in. The Nazis' replaced the worthless paper with 80% silver coinage. Once his hold on power was established and blessed by the Pope in Rome the silver was replaced with brass. (First Reich was the Roman Empire, second was the (not Weimar it was never an empire) Holy Roman Empire, The Third Reich was German Empire
We in America don't learn from history because we don't see the importance of understanding the Western history. https://historynewsnetwork.org/blog/3572
Without the US petrol dollar controlling the world's currency (established by Nixon with the Saud family) there will be no need for USA to act as the military protectorate of the Saud fiefdom. That should get the bombs flowing from Iran to Saudi Arabia. The first to be launched from Iran will target Mecca not Israel.
I know it might seem hard to believe but Joe Biden and the US citizenry supporting Ukraine has set the wheels to WW3 in motion. All it will take is a misguided drone strike from Ukraine with a drone supplied by USA or a contrived event like the Gulf of Tonkin incident or the sinking of the Lusitiania. China is much the same, they have long memories like the Boxer Rebellion where USA was protecting the Opium trade in China. The West got a huge part of the Chinese population addicted to Opium to spark trade of Chinese goods into the West.
We never learn this time around we are going to be sorry for our blunder into the East.
THAT John Connally, was not just shot in the wrist.
According to Wikipedia, "Connally suffered a fracture of the fifth rib, a punctured lung, a shattered wrist, and had a bullet lodged in his leg." The result of the having been injured by the "magic bullet", the one that was found pristine on a stretcher in Parkland Hospital.
Interesting that THAT Connally, was present for two massive turning points for the USA Republic. The military coup in '63, where for all intents and purposes, is where the Republic's u-turn begins and the path to ultimate disintegration of state begins. And then the cutting of the ties between the fiat paper dollar and what tethered it to reality. Gold. Which further accelerated the Republic's slide into oblivion.
One has to wonder if John was able to grasp the irony of his role, in the eventual destruction of the institution he served most of his life, as he lay on his death bed in '93. His family had no such compunction, as they refused to have the "pristine bullet" fragments removed from his leg after his death, which would have proved that the Magic bullet had been nothing more than an illusion.
Much like the US dollar has been, since '71.
I am always interested to hear opinions about the gold vs bitcoin debate. Most people agree bitcoin is more available to retailers to own, but adoption has a long way to go before its a true store of value. People in both camps agree that the fiat dollar is garbage as a store of value. I tend to consider gold a store of value but bitcoin could be the ultimate risk on asymmetric bet for major growth because it is basically hardwired to be deflationary as long as usage grows.
Okay, we're at the end of the online session. I hope this was helpful. Appreciate everyone's time and interest. Many great questions and comments. You all are a resource of knowledge. Thank you all for being part of the Bonner Private Research group. Best wishes for this Easter weekend. And best of fortunes in your investments, as well as life in general. Stay healthy. Pray for peace. BWK
The most frightening thing about Russia's encroachment is how the response has disrupted Globalization, The T
Putin is a very smart man who actually listens to and implements the recommendations of his financial advisors. When the Anglo American Axis froze Russia’s owned foreign currency reserves plus locked it out of the Swift settlement system, Russia was forced to develop a viable alternative. Amazingly, 75% of the world’s countries still do business with Russia and perhaps they see that a gold-backed Ruble is far more trustworthy than debt-backed dollars.
They also must worry that the West will freeze (steal?) their dollar denominated assets. The idiocy of our leaders’ decisions is rapidly bringing about the demise of the dollar as the global reserve currency. Gee, where can I get some gold backed rubles?
To John Austin who has be blocked from relying to his post.
Some day when free men once again gather to discuss the rise and fall of Western civilizations they will study our time. These men will undoubtedly conclude once again the fall came on upon us shortly after an end was made of free thought and free expression of ideas.
They will point to the very moment when ignorant, arrogant and condescending men appointed themselves as moderators over the public forum.
Where is link?
What is so special about metallurgical coal? Jack N
If you were 17 years old today and had $1000 to invest and won't access it until 25 yrs. old, what would you choose for an investment?
thanks
Juniors about to go production. Are they reasonable risk reward plays?
Hey Byron, thanks for chatting with us.
Have heard all kinds of opinions and predictions on the fall of the dollar. Seems the dollar has been extraordinarily resilient over these last 50 years. It appears the demise is accelerating but is that just because we have info 24/7 streaming or is it truly related to the insane money printing? Finally why do the countries (even those deemed as enemies) keep buying Treasuries to prop up the dollar. If buying stopped or if Russia shuts off the gas seems like it would be a game changer. Is it a matter of balancing collapse of your own country? All the best!
Can you comment on the investment Tom address in energy sector…XOP. It was originally a buy but it was stated it may not a time to buy due to rising energy costs. Then in another article it was a buy. Can you clear this up for me? Thanks
With Interest rates soaring, shouldn’t banks be a good investment. Yet…they all seem asleep?
Sure would of been nice to watch the podcast today with Byron but your thread link did not allow for me to access it. I tried every way including logging into my account and nothing
WOW
How do we access the discussion as a paid subscriber?
confusing. where does this start?
How do I get to podcast?
Byron - What are your thoughts on Russia putting a floor price on Gold at effectively $1600/oz.?
I’m terms of the trade of the decade with respect to energy and oil producers specifically: what do you see the future being for the large oil companies that are selling off large Russian holdings give the war in Ukraine? Shell comes to mind, letting public sentiment forcing them to sell off large Russian LNG components.
Do you think LNG tanker companies will be a good long term play from here??
Do you think oil services companies are a good way to play the trade of the decade (e.g. SLB, CLB)?
Is there any fundamental reason why governments should wield control over currency or monopolize money? Are we in the midst of a shift to a capitalism of decentralized finance?
Byron do you see fertiliser, oil and gas prices climbing steadily throughout 2022, or can we expect some violent pullbacks along the way, before prices resume their uptrend?
Is a U.S. digital currency the end game of all this smoke and mirror trillion dollar debt, spend till the cows come home QE spending?