A Tuesday Mailbag

Sicily and gold dominate the mailbag. [The Rude Awakening] July 11, 2023 [WEBSITE]( | [UNSUBSCRIBE]( A Tuesday Mailbag - What’s a few canti between friends? - A pistacchio correction? - Are any of the gold ETFs safe? [Hey, It’s Jim Rickards Here]( I need your attention immediately. [My big announcement]( comes down on Wednesday at midnight. If you haven’t already, [click here now to see it.]( Trust me, you do not want to miss out on what’s coming. [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Tuesday! I had 9.5 hours on my hands as I flew from Milan to New York. So I decided to dive into the mailbag. I’ll tell you something: you people are impressive! It’s a joy reading what you write. Please, please keep doing it and sending it to feedback@rudeawakening.info. In this edition of the Rude, I’m going to print the entirety of some letters because they’re so informative. Let’s start with Sicily. Canti, Pistacchio, and Quick Trips Hello Sean, Thanks for the wonderful postcard from Sicily. I wrote to you before and advised I am learning Italian because both my wife and I are working to obtain our Italian passports via her Italian mother. It was fun translating the locations you visited, but your item “F Quattro Canti" you translated as "four corners". This may be what the locals call it, but I think the actual translation is “four songs”, correct? I don’t mean to be picky, but I am struggling with many Italian words that mean several different things in English. I’d appreciate your explanation to help me learn. Thanks, Ed C. Thanks for writing, Ed. First, I’m so pleased you and your wife going for your Italian passports! I’m sure you’ve got the process under control. But if you’d like me to direct you to the lawyers that helped my family get ours, please write in again. I’m so thrilled with their work, I rehired them to get us through the process of buying a house. Now, to your excellent question. Here’s what I dug up: In Italian, the word "canto" has multiple meanings depending on the context. One common meaning is "song" or "singing," referring to the act of vocalizing or a musical composition. It can also refer to a verse or section of a long poem, such as in Dante's Divine Comedy. Reading Dante was where I first saw the term. Additionally, "canto" can be used to describe a corner or an angle in architecture. That’s how I think they’re using it, but… …one more I heard in passing is that “canto” can be used like “canton” in Switzerland. So the Quattro Canti may refer to where the four cantons, or quarters, meet. Needless to say, it’s a commonly used word in Italian. Keep up the great work! Hi Sean, I read your articles every day with enthusiasm. Great article about Palermo and environs. In the spring of 1972, I was a student at the Stanford-run Intercollegiate Center for Classical Studies in Rome, which still exists under the auspices of Duke. [The CENTRO – Intercollegiate Center for Classical Studies in Rome (thecentrorome.org)]( On our spring field trip we saw the Capella Palatina, the Cathedral of Monreale, and many other treasures in and around Palermo. We were doing a three-day circuit of Sicily after visiting Roman sites in Tunisia. Don't miss Taormina (ancient Tauromenium), which was our last stop before hopping an overnight train (24 people in four six-berth second class couchette compartments!) for Naples. The Straits of Messina operation is or shortly will be the last place in Europe where you can ride a passenger train on a ferry; details on The Man in Seat 61 website [The Man in Seat 61 | The train travel guide]( Taormina is all magic. Didn't get to historic Enna or to Piazza Armerina to see the famous "Bikini Girls" in the Roman villa there. [Villa Romana del Casale - Wikipedia]( Best wishes and keep up the good work! Robert E. Villanova Law '76 Thank you for the kind words, Robert. I can’t tell you how much I admire people like you, who used their time at university wisely. I watched Keith and Dan on SportsCenter every night. You traipsed around the Med. Well done, indeed. Your message is especially timely because Pam and I know we missed a bunch. In fact, we were at one of Micah’s friend’s birthday parties yesterday when we ran into our friend Andrea. We told him we went to Sicily for a holiday. He told us he’s been there at least twenty times. It’s his favorite place. And he mentioned the same spots you have! As a side note, I went to Tunis to see Carthage and the Punic ruins back in ‘06. I was wearing a Tilley (not a fedora) when one of the Tunisian merchants said, “Welcone to Tunisia, Dr. Jones.” I loved it! Hi, Loved your mini tour of northern Sicily. My ancestors hailed from a small mountain town above Palermo called Gesso. Actually most of the NJ town of Hammonton where I grew up were from Gesso. The only correction I have is that the pistachio cannolis are the best I've ever had. Hopefully you'll check them out next time. Sincerely, Judith M Judith the Joisey Girl, challenge accepted! I will try the pistacchio next time I’m there and will let you know. And thanks for writing! Sean, Thanks for the mini-tour! How safe did you feel walking around in Sicily in general and Palermo in particular? Drive on the right side of the road? Condition of hotel(s) you stayed at? Any seaside? Jim T. My man Jim T.! I hope you’re well. First, thanks for sending me that great picture of where you used to work. Seeing things like that does my heart a world of good, especially when America was that shining city on the hill. Regarding Palermo, I felt very safe. But after my years of traveling, I’m usually good at not wandering into bad neighborhoods. Though we did take a wrong turn around the Mercato di Ballaro into a marijuana party, but there was no harm. Sicily is ancient and Palermo can use a damn good sweeping, but the centuries of dirt are part of its charm. Our taxis drove us on the right side of the road. All of Italy and continental Europe drives on the right side. Only the British and Irish drive on the left in Europe. Our hotels were great, actually. We stayed at the Mercure in Palermo and got a huge room. Nice and clean, as well. As for the rest, we stayed at Mangia’s Pollina, which is a cheaper family oriented resort. I would only go back if Micah really wanted to. It’s a nice excursion if you’ve got kids. The water is crystal clear. But the beach was pebbly and the waves were quite rough, as it is near rocks and cliffs. So we stayed by the pool most of the time, which isn’t my ideal. Thanks for writing in! [Over 62 And Collect Social Security? Take Action Immediately!]( [Click here to learn more]( [If you’re over the age of 62 and currently collect Social Security, you need to prepare now](. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… [Which is why, if you don’t act now, you could fall behind in the months ahead](. Is your retirement at immediate risk? [Click here now to get the simple, step-by-step actions to survive inflation](. [Click Here To Learn More]( All That Glitters… Greetings, Sean! Elsewhere, I've seen thumbs down on GLD: In contrast to, for instance, Sprott Physical Gold Trust (PHYS), GLD isn't fully allocated and unencumbered. That invites “counter-party risk," since GLD uses custodians and subcustodians to source and hold gold, as do many ETFs. Custodial banks can and sometimes do fail. Ditto for subcustodians. If a Crisis strikes — say, a Western currency collapses, the U.S. dives into a debt spiral, civil or global war breaks out --- gold prices would likely skyrocket...triggering the unraveling of all lending agreements, as lenders call in their gold. In light of all that, wouldn't you, too, prefer Sprott? TIA! Hans K. What a great question, Hans! Here’s my take, after doing some research and a bit of thinking. If we have that kind of crisis, no paper is safe. But I think if you’re in a large, liquid ETF, there’s a good chance of being made whole somewhere down the line. HSBC USA is GLD’s custodian. It’s a Systemically Important Bank. Its gold is kept in vaults in London. Yesterday I wrote about how the UK government is seizing stuff. But can they seize gold that US hedge funds hold in great quantities? Doubtful. Regarding Sprott Physical, I see absolutely nothing wrong with it. I respect Mr Sprott and his colleagues immensely. Its custodian is the Royal Canadian Mint. The Royal Canadian Mint is a crown corporation in Canada, responsible for producing and distributing the country’s coins and managing its currency system. It is a federal entity owned by the Government of Canada. I hate to answer questions with questions. But if we had the kind of crisis that we’re worried about our holdings, do you trust Justin Trudeau more than you trust HSBC USA? Ok, here’s my conclusion: if you’re worried about gold seizure, get yours out of ETFs and into physical stuff you can bury in your backyard. If you prefer the convenience of trading the price of gold via ETFs, GLD or PHYS or even SGOL are all fine. But GLD is the most liquid, so I’d stay there. Dear Sean, From your last mailbag you showed how the US doesn’t have to buy much gold. My question is: who controls that gold? Marc B. Marc, that’s the sixteen trillion dollar question, isn’t it? The People of the United States own it (allegedly), but certainly don’t control it. The Treasury surely thinks it’s theirs to control. Its on the Fed’s vaults (allegedly), but we don’t audit the Fed. As Philosopher-Truck Driver John Ring often says, “Possession is nine-tenths of the law.” Wrap Up Special thanks go to Nick M., Damon C., and Bill V. for their kind words. I think I got everyone, but if you think I missed you, just write again to feedback@rudeawakening.info. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( In Case You Missed It… Thou Shalt Not Steal [Sean Ring] SEAN RING On Saturday, I was sitting in Fabrizio’s café drinking my Lavazza and flicking through my Twitter feed. It was bright, sunny, and serene, as I waited for Pam and Micah to meet me for breakfast and a stroll through the weekend markets. Inevitably, Karine-Jean Pierre came up on my feed, moaning about China. KJP is the White House Press Secretary. Oddly enough, she has the same passing acquaintance with the English language as her boss does. Now that I think about it, that’s almost certainly why they hired her. She couldn’t muster up a straight denial of Hunter’s Colombian marching powder showing up in the White House. But boy, she was happy to lay into the Chinese! Let’s jump right into it. The Hypocrisy I can’t stand America’s hypocrisy. When Americans seize assets and refuse to sell goods to other countries and sanction them, it’s punishment by a valid leader of the free world. (And when the UK mindlessly follows them, it’s worse. But more on that later.) But when other countries want to sanction the United States and not sell them stuff, it’s economic warfare. This is a huge reason why the Global South wants to break away from the United States and the Washington Consensus to join the BRICS community. The Global South is literally praying on their hands and knees that BRICS come up with something cogent and sustainable so they can get out of the palm of Western hands. And there was always a danger this situation would arise. I Told Them So From an earlier Rude titled “[What Sanctions Accomplish]( Those Countries That Can Will Fight Back Sure, the US can push around Iraq, Iran, and many South American countries. But Russia is another kettle of fish altogether. After 30 years of suffering at the hands of US sanctions, or worse, [US academics]( Russia has had enough. Russia’s National Wealth Fund is its sovereign wealth fund. A sovereign wealth fund is a state-owned [investment fund]( that invests in tangible and financial assets such as [stocks]( [bonds]( real estate, and [precious metals]( or alternative investments such as [private equity funds]( or [hedge funds](. The National Wealth Fund will cut its share of dollar assets to zero from 35%. The $186 billion fund will then keep most of its assets in euros, yuan, and gold. To be perfectly frank, this will not crash the dollar. The fund is one of the smaller sovereign wealth funds on the planet. If you count the funds or the countries, Russia has the 10th largest stash of national wealth in an SWF. For instance, Norway’s SWF, the Government Pension Fund, has over $1.1 trillion in its coffers. That’s about 10x what Russia has. But it’s still a blow struck in the name of freedom. You read that right; Russia is fighting US dollar oppression. But this was just the start. Watching this video in which [Putin bragged about how sanctions made the Russians use their brains]( is insightful. And if you doubt Putin’s word - I don’t blame you for that - that sanctions helped Russia become the world’s number one wheat exporter, have a look at this chart from [Progressive Farmer]( [SJN] Russia never built helicopter and marine engines before. It does now. And while it doesn’t dominate the world stage, watch this video (with the captions on) to see [Putin brag]( about how the ruble is now more stable because they’re not just an oil and gas country anymore. These sanctions aren’t fit for purpose. No sanctions are. I wrote that back in June 2021. [Urgent Notice From Paradigm CIO Zach Scheidt!]( [Click here to learn more]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. [Click Here To Learn More]( “But We’re Better Pirates!” Cries the UK! I voted out for Brexit. I still think it was the right move. And though you’ll see panicking Remoaners all over Twitter, the EU has done absolutely nothing for me to think being a Brexiteer was the wrong way to go. You may or may not know of Nigel Farage. He’s the UK‘s biggest populist, and probably the most important politician in the United Kingdom since Margaret Thatcher. If it were not for him, Britain would still be in the EU. There’s no doubt about it. Recently, Coutts, a fancy private bank in the UK owned by Natwest, which is just the new name for the disgraced Royal Bank of Scotland, which was bailed out by Her Majesty‘s government back in 2008, decided to close Farage’s accounts. Without bank accounts, you’re pretty much a non-person in any country in the world. But this is the greatest example of this piracy gone mad. You would’ve read newspaper articles a couple years ago, saying things like, “London is ready to surpass Zurich for private banking services.” The UK was seen as an equal to Switzerland before this whole mess began, and I was very happy for England. I thought it was a great thing and it just partially justified for me that Brexit wouldn’t hurt London as a financial center. But you know what hurts financial centers? Seizing assets! The UK has gone just as crazy as the United States in seizing Russian assets. And now they have gone about seizing and closing the accounts of UK citizens. Apparently Nigel Farage is only one of these victims. Get this: a woman named Alexandra Tolstoy, descendant of Leo, who was married to a Russian oligarch, has had her bank account shut down. She is not a politically exposed person. She owns a business. Yes, her former husband is Russian, but he’s lived in Monaco for many years and hasn’t even sent her child support. Now her bank decided to shut her account down. It’s demagoguery gone mad. I didn’t think London would lose its place as the world’s largest financial center in my lifetime. But if this behavior continues, within the next ten years London will be a financial backwater. Wrap Up By the time you read this, I’ll be on the plane to New York City. I’ll be there for two weeks teaching. In the meantime, I hope the U.S. and UK come to their senses and get a new playbook. This plan has backfired completely. Have a great week ahead! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [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. 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