Jeff Deist: Why Won’t the USD Just Die?

Former Mises Institute President talks about wokeness, the dollar, and housing. [The Rude Awakening] January 11, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Jeff Deist: Why Won’t the USD Just Die? [Sean Ring] SEAN RING Yesterday, I wrote about my colleague Greg, who has been absolutely demolishing the markets, making a 254% return on his model portfolio since last May. That’s beating out some of the very best in the world… and that's why I respect him so much. He’s actually looking for 50 students to teach his strategy. You just have to fill out an assessment to see if you’re the right fit. Are you interested? [Click here for more details.]( Today, let me tell you about my latest Paradigm Press YouTube Channel chat. [Click here to learn more]( Click the pic or [here]( to watch the video. Jeff Deist is the former president of the Mises Institute and the author of the excellent A Strange Liberty. He’s now with Monetary Metals as their General Counsel. Jeff’s also one of the most level-headed and nicest people I know. Wokeness Jeff, the acclaimed author of A Strange Liberty, shared his lucid perspectives on various critical issues, from the evolution of political correctness (PC) to the modern challenges of "woke" culture. He believes what began as a benign attempt to refine language has snowballed into a more ominous, all-encompassing social control. I think PC is a term we've been using really since the 90s, and I think it's obsolete. It's been replaced by the term “woke,” which we'll get to, which I think is broader. But PC was mostly about language. It was an attempt to control our words, spoken and written. So PC really focused on language, you know, and PC gave us things that seemed benign, like calling people African Americans instead of Blacks, for example. But it also gave us the beginning of a mindset. In other words, when you're trying to control people's language and their speech, written or oral, you're really trying to control their thoughts. And by controlling their thoughts, ultimately you're trying to control their actions. So the idea is that we should be nice to each other, we should be inclusive, and we shouldn't use certain words, and I agree with that, but only to an extent. [ALERT: Tiny “AI Crypto” Set To Soar? ad]( Jim Rickards, James Altucher, and Ray Blanco dropped a bombshell on the AI Prophet Mastermind attendees. THREE tiny AI stocks are set to explode during AI’s Second Wave. Stocks that they gave away for FREE at [this event](. In fact, one is still trading for just a couple of bucks. [Click here to get the ticker details now.]( [Click Here To Learn More]( Fiat Money In our dialogue, Jeff provided a deep analysis of what he terms "political money" – the root of many economic woes. He argues that shifting from a commodity-backed currency to a pure fiat system has muddled our understanding of money, debt, and interest rates, further complicating economic stability. In other words, we talk about sound money versus fiat. We talk about commodity money versus paper money. We talk about hard money versus expansionary money. So we've come up with all these terms to describe what's happened, in particular to the U. S. dollar, but really to all the Western currencies. I would argue even the Swiss franc has fallen in terms of the mindset of the Swiss Central Bank, which I do follow. I'm very interested in the stocks they buy and some of the other things they've done, because I heard an interesting talk a couple of years ago by Rahim Taghizadegan, our friend in Austria, about how money used to be a country's calling card. You know, the Swiss franc was the calling card of the Swiss people, and they were rightfully proud of it. And so the policies backing that the Swiss franc really was as good as gold for many, many years. The U. S. dollar, of course, has not been as good as good as gold since at least FDR's time. And really, there were episodes in U. S. history prior to that, uh, where the U.S. federal government was operating its own bank or expanding to pay for wars, even the Civil War itself. We've always printed money to pay for wars, so the U.S. dollar hasn't really been as good as gold for much of its history. But, what FDR did, and then of course, all the expansions on that through Bretton Woods, and then ultimately Nixon's actions in the 1970s, all that gave us a form of money that is totally divorced from any commodity backing And as a result of that, we've started to become confused and are thinking about what money is and what its function is. And since we don't much understand money anymore, we don't understand interest rates and debt, which are directly related to money. These things have all become combined in our muddled thinking. And so I would say the average young quant in the finance industry, maybe on Wall Street, maybe a central banker and this might be a young person under 30 or 40. who went to Wharton or Stanford or Cambridge or Oxford, all the right schools, but he or she might really have no real understanding of what money ought to be, other than it's a political tool. In other words, money has just become a tool for governments and central banks. It's become a form of policy, and so I hate the term monetary policy. I've always thought that we should deride that term. We don't need a housing policy. We don't need an energy policy. We don't need an agriculture policy. We don't need a money policy either. Biden or Trump? How About Neither? We also touched upon the changing political landscape, especially with the 2024 elections. Jeff expressed concerns about the potential resurgence of neoconservatism and the diminishing influence of the America-first populist right. In January 2025, I don't care how many votes he gets, folks. Donald Trump will not be allowed to enter office. Okay, so the question becomes, Will they stick with Biden? I think they're going to throw him under the bus. I think they're going to realize that this man is decidedly infirm. And in really bad shape, and so that means we need a Gavin Newsom or Michelle Obama, someone more palatable. De-dollarization: Now, Later, or Never? As for the future of the global monetary system, Jeff believes that while the U.S. dollar remains dominant for now, its position is increasingly challenged. The emergence of alternative currencies, like those proposed by BRICS nations or digital currencies like Bitcoin, could reshape the economic landscape, though not without significant hurdles. I definitely think in the short term, the U. S. dollar is that one currency the world wants as political as it is, it doesn't make me happy to say that I think the dollar has been a tool, not only of domestic policy spending on entitlements, but also of war. It's been a foreign policy tool for the U.S. government to spend wildly beyond what it takes in tax receipts and run huge deficits because the whole world needs our dollar and a proxy for holding dollars is holding U. S. Treasuries. So, you know, it's been a very nice arrangement for us. The dollar world has just been disdained. The French finance minister called it our exorbitant privilege, and he was damn right. And I think a lot of Americans are asleep at the wheel as to how wealthy we feel as a result of that, of being able to effectively export inflation versus how productive we really are to deserve that feeling. Well, so we've had it good for a long time, and I do think that's coming to a natural end, but it's not around the corner. Wrap Up In closing, Jeff offered sage advice to young viewers grappling with the current housing market – emphasizing the importance of flexibility and willingness to consider less conventional paths. This interview with Jeff Deist not only provided a wealth of knowledge on these pressing issues but also a reminder of the complexity and interconnectedness of our global economy and politics. For more level-headed analyses, follow Jeff on Twitter at [@JeffDeist](. Have a great day! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( In Case You Missed It… Guenthner Walks You Through the Crypto and AI Charts [Sean Ring] SEAN RING As Jacob Marley is “as dead as a door-nail” in A Christmas Carol, Greg Guenthner is “not a Bitcoin Maximalist.” As Dickens wrote, “This must be distinctly understood, or nothing wonderful can come of the story I am going to relate.” From [CoinDesk]( Bitcoin maximalism is a phrase often attributed to Ethereum co-creator Vitalik Buterin who – as a bitcoiner in 2014 – described the emerging belief that the only desirable outcome of this “quiet revolution” is a Bitcoin monopoly. All other coins are at best a distraction and at worst a wrench in the chain. You must understand that Greg, or “Gunner,” as we call him, is an excellent trader and chartist who’s only interested in good trading opportunities. He’s not a “true believer” in the cryptocurrency known as Bitcoin. Because that doesn’t matter. What matters is that these trading opportunities are profitable. I tell you this because I just watched [the most glorious video]( Paradigm Press has thus far put out on its YouTube channels. I write “channels” because we’ve just created another one: Paradigm Profits. Paradigm Profits will look more at the crypto, AI, tech, and biotech industries. The original Paradigm Press channel will remain dedicated to macro and geopolitics. So, if you came to Paradigm for Jim Rickards, your channel is “Press,” while the “Profits” channel is available for anyone looking for trading opportunities in spaces Jim doesn’t cover. With that covered, I wrote yesterday that this year can be the best year of your life for trading and profits. I mean it and believe it with every fiber of my being. And there’s no better way to start doing that than by [watching Gunner’s video](. But first, I’ll summarize it for you. Then, I hope it’ll make the video even easier for you to understand. Let’s begin. Bitcoin Today’s a big day for Bitcoin. The SEC may announce that ETFs may be created using Bitcoin as the underlying asset. According to [The Wall Street Journal]( “Bitcoin has more than doubled since last January, partly on the expectation that approval would fuel further purchases of digital currencies.” This is a chart of the daily movement of Bitcoin since October: [pub] Yes, it’s been a furious rally, from $27,000 to nearly $48,000 recently. But there are two issues: the BTC price is too high for most people. And the second is that the Bitcoin ETF was never approved. SEC’s X Account Hacked According to [The Wall Street Journal]( The Securities and Exchange Commission’s official X account was hacked when the agency posted late Tuesday that it had approved exchange-traded funds holding bitcoin, forcing Chair Gary Gensler and the regulator to disavow the erroneous post. Bitcoin briefly jumped to near $48,000 before Gensler said on the social-media network that the message was “unauthorized” and that the SEC “has not approved the listing and trading of spot bitcoin exchange-traded products.” The agency later posted that its account was “compromised.” “It’s a hack,” a spokeswoman for the SEC said. As today is the 10th, the SEC may approve the ETFs after you read this. But we’re unsure, as the denial was so vehement. Be that as it may, there are other ways to play Bitcoin than buying and selling it. Bitcoin Miners The best part of this video is that Gunner goes through the charts. You get a “look over Gunner’s shoulder” view of how he sees stocks and their movements. It’s an excellent and easy education for anyone unfamiliar with charts. So, while many will just look at the BTC chart, Gunner looks at the BTC miners. MARA, RIOT, & CLSK Marathon Digital Holdings (MARA), Riot Platforms, Inc. (RIOT), CleanSpark, Inc. (CLSK), and Hut 8 Mining Corp (HUT) are all Bitcoin miners. But as MARA is the largest and most frequently traded, that’s the one with the cleanest chart right now. Watch the video and see how Gunner compares and contrasts those charts. It’s an education in and of itself. [Rude awakening] Notice how we got a rocket of a move - even more so than Bitcoin’s own move - during the past rally. AI Stocks After giving that great review of BTC and BTC mining stocks, Gunner turned his attention to AI. This is still a huge story. If you didn’t buy MSFT in the 90s, AAPL in the 00s, or AMZN in the 10s, don’t miss out on AI stocks this decade. [Your Credit Card: Declined?]( Take a moment and picture this scenario: The line at the gas pump is getting longer as you insert your credit card for the second time. You decide to head in and ask the cashier what’s going on. There’s a long line inside. The woman in front of you looks frustrated. Everyone does. “There’s nothing I can do. You’re declined,” the cashier says to the man at the front of the line. It’s not just you. Everyone is declined. Something doesn’t seem right. A sinking feeling sets in as you realize something has gone terribly wrong. [Click here now for an urgent new prediction from a former advisor to the CIA and Pentagon.]( [Click Here To Learn More]( NVDA While Gunner initially thought NVDA couldn’t repeat its 2023 performance, the last two days have tested that idea. [Rude awakening] We’ve had a clean breakout at $500, and are now 6% above that level. It could be “Up, up, and away!” again for this stock. AI Tickers are sticky. C3.ai (AI) sure picked a good ticker, then. Right now, the chart’s a mess. But that can change anytime. SMCI This stock could be the next NVDA. [Rude awakening] We’ve had a big breakout above $320. Let’s see if it’ll chase NVDA, the sector leader. AMD and ANET Both these stocks had big sell-offs and quick recoveries. PLTR Now, this is my stock pick for 2024. I based this on the “Cantillon Effect.” The Cantillon Effect is the concept of relative inflation or a disproportionate price rise among different goods in an economy. That is, if the government invests heavily in one area, that area’s prices will rise. From an earlier [Rude]( Richard Mayberry concentrates more on the fiscal side, but the results are the same. Mayberry notes that analysts and economists wrongly assume that the new money printed and the fiscal deficit spending are evenly distributed throughout the land. Nothing could be further from the truth. Instead, money is injected into specific locations, which he calls “cones.” Mayberry writes, "The best way to invest is to look where the government is putting money and invest there." To use his euphemism, they essentially “pour” the money into a city, a geographical area, or an industry. Because of the government largesse - just redistributed taxpayer funds - the stocks representing the companies receiving the subsidies, tax breaks, or straight investment will go up. That was his entire theory in a nutshell, and it's exquisite. The government will pour tons of money into these spying programs, and PLTR will be a huge beneficiary. But that hasn’t materialized yet. Zooming out, this is PLTR’s chart: [Rude awakening] We had a great pop to $14, and then to $20. But as Gunner says in the video, PLTR is in a “sloppy, wide-ranging consolidation pattern.” The stock is fine if it doesn’t fall below $14. But he’d wait for another entry point rather than here. Wrap Up Once you put your coffee down, head over to YouTube and [watch this video](. It’s the best free education you can get on charting. I love how Gunner makes it easy to follow him and his thinking. It’ll surely increase your expertise in deciphering stock charts. Good hunting! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. 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. 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