A Happy Friday Mailbag

Let’s hear from the Rude Remnant today… [The Rude Awakening] March 03, 2023 [WEBSITE]( | [UNSUBSCRIBE]( A Happy Friday Mailbag - Is Sean advocating a state bailout for Norfolk Southern? - What exactly is the “national interest?” - Is ESG here to stay? [US Attack on Nord Stream a Covert “Act of War”?]( [Click here to learn more]( In this shocking presentation, new evidence reveals the TRUTH about the attack on Nord Stream, and why millions of Americans would be devastated from the fallout. [See for yourself.]( [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Friday! Grab that cup of java and have a seat. I got a few fun messages in the mailbag to share with everyone. (I only tweak them grammatically and hide any oversharing.) Then, I hope you’ll have a lovely glass of something bubbly this evening. Let’s get straight into it: East Palestine Versus Ukraine East Palestine and/vs Ukraine: I found this article interesting but somewhat confusing. The disaster was caused by a private co. Shouldn't they be the ones to show up and fix the problems? Why should that be gov - Biden - Buttigieg’s- problem since you already think big government is too big. I hope you aren’t suggesting tax money bailout the railroad. Regarding Ukraine: most of the aid is military supplies. The big defense contractors and their shareholders will be getting rich for years to come as they rebuild stockpiles. This is where taxpayer money is going. Buy defense stocks!! What am I missing? PL F. Thanks, PL F., for the great questions and comments. Let me parse this out. Yes, a private company, Norfolk Southern, caused the disaster. Yes, it should be held accountable and financially liable. Yes, the government is far too big. I'd be thrilled if we got rid of the Department of Transportation. But we haven’t. What’s the point of its existence if not for these types of accidents? What more significant problems does Mayor Pete have on his plate? As for Biden, my argument is one of optics. It would take nothing to have Air Force One land nearby and to visit those affected for moral support. That he didn’t tells me Ukraine matters more to him than Ohio and Pennsylvania. Personally, I prefer an America First president, but most Americans didn’t feel that way in 2020. I am not suggesting a dime of taxpayer money go to Norfolk Southern. Regarding Ukraine, you have a point. Defense contractors may be an excellent call. Since September 10, 2001, here’s how that sector has performed: [SJN] Lockheed Martin leads the way with a staggering 2,023.24% return. Over the same period, the SPX managed “only” 264.11%. Northrop Gruman earned a 1,812.67% return, General Dynamics earned 821.67%, Raytheon earned 683.20%, and Boeing earned 633.39%. Yes, war is a racket. [Rickards: Meet My #1 Stock Picker]( He’s a former hedge fund manager… With a loyal following of more than 100,000 American investors… Plus, he’s helped my readers close [one winning trade after another]( with gain like: - A 128% in 28 days … - A 174% in 11 days… - A 203% in 26 days… So… How are gains like these possible in today’s crazy market? How does this strategy work? And how can you get ready…before the next buy alert? [Go here now to get the answer from my #1 stock picker](. [Click Here To Learn More]( What’s the National Interest? Just wanted to thank you for the excellent Rude column “China Takes the Gloves Off.” Clearly, there is something going on in DC that doesn’t have the best interests of the nation in mind. Eventually, the truth will emerge. In the meantime, thanks to people like you, at least some of us have an inkling of what’s up. Hope you are enjoying a peaceful weekend. Best wishes, Margaret B. Thank you, Margaret, for the kind words. Your comments reminded me of one of my favorite economists, Thomas Sowell. There are a few quotes of his I’ll pass on to you, as they describe perfectly what you intuitively understand: “There are no solutions. There are only trade-offs.” “It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.” “Politics is the art of making your selfish desires seem like the national interest.” Is ESG Here to Stay? Sean, What I learned about money from my father and mother is what they knew: if you need more money, get another job; work longer hours. After 25 years of 80-hour weeks and at least 2 and sometimes 3 jobs, I was able to retire from my day job. I began learning other ways of financial success with investing about 2009. Didn't lose a penny in 2008! 😎 I have learned much regarding financial topics from Agora and related publications. When I retired in 2018, having learned about paying attention to such things, I tried to learn where my TSP money was invested. I was informed that that information was proprietary information. That prompted me to remove all of my money out of the TSP into a self-directed IRA and invest using the info gleaned from Agora sources. Although I don't care to spend every waking hour worrying about my investments like some of your colleagues seem to, I have used what I have learned from y'all to do quite well so far. I am grateful for that. I think China is also watching Russia's relative weakness with an eye to taking advantage of it at some point in the future. Trump might get another shot at a Nobel peace prize. I would like to know if any reliable brokerage firm has the balls to not drink the ESG Kool-Aid. Or at least leave their clients alone if they want to ignore the stupidity? Thanks and carry on Agora! Tom B. Tom, I must congratulate you. You have figured out the game of life and are enjoying it. Well done! As for Russia and China, one day, they may duke it out. But we’re a long way from that. They’ve got bigger fish to fry right now and will be friendly for the foreseeable future. But ESG? Now, that’s starting to get interesting. I’ll give you a few examples as to why the ESG game may be fizzling out. A few weeks ago, [I wrote]( about how good fund managers like the UK’s Terry Smith ignored ESG missives. Then, Governor DeSantis of Florida, along with fellow Trustees of the State Board of Administration (SBA), passed a resolution directing the state of Florida’s fund managers to invest state funds in a manner that prioritizes the highest return on investment for Florida’s taxpayers and retirees [without considering the ideological agenda of the environmental, social, and corporate governance (ESG) movement](. Finally, Vanguard's CEO, Tim Buckley, [withdrew his firm from the $59 trillion Net Zero Asset Managers initiative]( part of the $150 trillion United Nations-affiliated Glasgow Financial Alliance for Net Zero. “Our research indicates that ESG investing does not have any advantage over broad-based investing,” Mr. Buckley said in a recent interview with the Financial Times. ESG may have seen its peak already, and thank heavens for that! One Bitcoin to Rule Them All? Hi Sean, Ever since subscribing to Paradigm, I have read (and enjoyed) your missives. Every day they are posted. I have not missed any. Question: You always talk about and analyze the USD and other currencies. Do you think any of the cryptos could one day be used routinely for selling and buying the same way the USD (and other currencies) are used to do this? Joe B. Thanks, Joe! I really appreciate it. The short answer to your question is “yes.” I think cryptocurrencies (Bitcoin) will be used for ordinary transactions. It is already used in crypto hubs like San Francisco and Zug, Switzerland. But I find crypto hard to use. And I’m technically inclined. I use a computer every day. I use my smartphone every day. But just getting USD into BTC and back is painful. Until they make that process easier, people won’t use it. Then, we’ll need to get to a point where people are pricing goods in BTC and not constantly converting goods prices into USD from BTC. Then and only then will mass adoption take place. We may be a generation or two away from that. And governments will do everything they can to prevent the switch. Wrap Up Thank you so much for writing in. It’s always great to hear from you. Have a wonderful, restful weekend. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening In Case You Missed It… The Barbarous Relic is Ready for its Close-Up [Sean Ring] SEAN RING Good Morning Reader, One of the highlights of my week is the Paradigm Editorial Call. All the big boys are there; Byron King, Ray Blanco and Dan Amoss… to name a few. Jonathan Rodriguez always arrives armed with reams of statistics. Ace options trader, Alan Knuckman, keeps us from straying too far into pessimism. I’ve learned truckloads about options and attitude since Alan started joining our call. To paraphrase Don Rickles, “Alan is the best; just ask him!” Of course, I write that with a wink and smile because I have learned to look at things differently. At my age, you’re a grateful old dog when you can learn some new tricks. We have great chats and arguments, all in the name of sharing what we know with each other. Jonathan and Alan are the IrresistaBulls. Dan, Byron and I, the ImmovaBears. This week was no different. Well, until we got to the one subject we all – somehow – agreed on. And that subject is gold. I think we were more surprised than anything else. And what a pleasant surprise it was! So shocking that I decided to write about it for you. But before I dig into the yellow metal, some housekeeping. On January 26th, I wrote a column for the Morning Reckoning titled, “[Give Up on the Idea of a Free Society]( My good friend and Libertarianism.uk podcast host, Andy Duncan, liked it so much, he interviewed me about it. If you’ve got a spare thirty minutes, feel free to watch it [here](. According to Andy, my t-shirt stole the show. Next bit of housekeeping: I will be hosting this Friday’s Rickards Uncensored session. The star of the show will be none other than Byron King, our ace geologist, lawyer, ex-Naval aviator, and Rickards precious metals and energy expert. Byron and I will talk about his favorite gold picks for 2023. I encourage you to attend so you can hear Byron’s best. Ok, with the housekeeping out of the way, let’s get to today’s piece on the yellow metal… and why it’s back in favor. James Bond and Goldfinger Although I think From Russia with Love is a better movie, Goldfinger is undoubtedly the archetypal Bond film. From Bond’s Aston Martin DB5 to “No, Mister Bond, I expect you to die!” Goldfinger started many of the traditions and tropes we’ve come to expect from Bond films. After Auric Goldfinger murders Bond’s girlfriend by suffocating her skin with gold paint, M is concerned whether Bond can go on with the mission. M asks, “What do you know about gold, (not paint, bullion)?” Bond coolly and inimitably replies, “I know it when I see it.” Don’t we all, Commander Bond? And that’s the thing. Most people intuitively understand that gold, the yellow metal that never rusts, is something special. But no one really explores gold beyond that point. So let’s quickly review why it’s a good idea to own at least some gold. [Dollar to Be Replaced With Biden “Spyware”?]( [Click here to learn more]( On March 9, President Biden quietly signed Executive Order 14067. This Order could pave the way for Democrats holding onto power in 2024. In fact, they could control America indefinitely. A former advisor to the CIA and Pentagon believes this order could allow for legal government surveillance of all US citizens; total control over your bank accounts and purchases; and the ability to silence all dissenting voices for good. To protect your freedom and your wealth, [see his dark warning now](. [Click Here To Learn More]( Why Own Gold at All? Gold shines like the sun – is malleable and divisible and never rusts. It was the perfect metal from which to make coins. It also has a natural supply constraint. No more than 2% of the global gold supply has ever been mined in a single year. Gold is also no one’s liability, unlike dollars. That is, if you own gold, you don’t owe anyone anything. But the USD is often referred to as a liability because it is a debt-based currency, meaning that it is backed by the full faith and credit of the US government. When the US government issues dollars, it is essentially creating a liability for itself, as it is obligated to honor the value of those dollars by providing goods and services in exchange. Of course, the difference between what it costs to produce one hundred dollars (about 17 cents) and the value of goods producers need to provide to acquire one hundred dollars is called seigniorage ($100 - $0.17 = $99.83). It’s a huge profit for the USG, which is why the French coined it “the exorbitant privilege.” There are five big reasons to own gold, especially in times like these: - Store of value: Gold is often seen as a hedge against inflation and currency fluctuations. It’s been used as a store of value for thousands of years and has maintained its purchasing power over time. - Diversification: Gold is a tangible asset that isn’t directly tied to the performance of other investments, such as stocks and bonds. This makes it an attractive option for investors looking to diversify their portfolios. - Safe haven: During times of economic and political uncertainty, gold is often seen as a safe haven asset that can help protect wealth from market volatility and systemic risk. - Potential for appreciation: While gold doesn’t generate income like stocks or bonds, it has the potential to appreciate in value over time. This makes it an attractive option for investors looking to take advantage of price fluctuations in the gold market. - Cultural significance: Gold has a long history of cultural significance and has been used for ornamental, ceremonial, and religious purposes for thousands of years. Owning gold can therefore hold sentimental value for some individuals. So owning even a bit of gold always makes sense. But right now, it makes even more sense because of recent price movements. In March 2022, an ounce of gold traded up to $2,043.30. Then the price fell to November’s low of $1,626.65. It started to rally hard from there to reach about $1,970 at the beginning of February. For some reason – probably the realization that the Fed will continue to hike – gold fell to its present price of roughly $1,836. But far from thinking there’s more downside, nearly all my colleagues are looking at the upside. What’s the Upside? Well, if you use the unadjusted high from 1980, that price is $850. But adjusting that $850 to 2023 dollars gives you $3,074. That’s 67% upside. And that’s if you just buy physical gold. If you trade gold futures, ETFs, or gold mining companies, your upside can be much higher. Why Would Gold Head to $3,074? My friend and colleague Dan Amoss put together a great chart for Strategic Intelligence readers. Speaking of Strategic Intelligence… My colleague Jim Rickards just predicted the end of the U.S. dollar… He’s seeing something coming on the horizon – where the government will confiscate your cash… or your cash will simply become worthless paper. There’s a way to sidestep this government-backed invasion into your bank account, however. He’ll give you the roadmap to protecting yourself… including how to use [gold]( to safeguard your wealth. [Click here to learn more.]( Now let’s continue with this chart… It shows a deeply inverted yield curve right now. That is, short-term rates are higher than long-term rates. That happens in deep hiking cycles. The thing is, when the hiking stops, and the yield curve snaps back to normal (long > short) from an inversion, gold tends to rally hard and fast. We think that will happen sometime near the end of the year. So now is the perfect time to buy gold if you haven’t already. Really, you haven’t missed the big move yet! And there are two other geopolitical events worth mentioning. Who Owns Most of the Gold? These are the top countries who own gold: - United States of America - Germany - Italy - France - Russian Federation - China - Switzerland - Japan - India - Netherlands More and more central banks are scoffing up gold to hedge against a USD collapse. And if central banks are buying, the price will certainly get driven up. Sooner or later, USD hegemony will be a thing of the past. The only way you can protect yourself against that is to own gold. Wrap Up There are some compelling reasons to own gold right now. It’s underpriced, has huge upside, and is about to get back to the adult’s table in currency products. History may look back on the Bretton Woods era and say, “Paper, schmaper…” I hope you enjoyed this insight. Let me know what you think by emailing me [here](mailto:feedback@dailyreckoning.com). Be sure to tell me if there are any topics you’d like me to cover in future articles. All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. Please read our [Privacy Statement.]( If you are having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by [whitelisting Rude Awakening.](