This page has been archived and commenting is disabled.
Martenson Interviews Dines: 'Wealth In The Ground' Is Your Best Bet to Surviving the Coming 'Supernova of Inflations'
Submitted by Chris Martenson
James Dines: Owning 'Wealth In The Ground' Is Your Best Bet to Surviving the Coming 'Supernova of Inflations'
James Dines has been in the business of making bold calls for over 50 years. In this deep-diving interview, he minces no words about the dire risks the US economy - and the world at large - faces at this juncture.
Simply put, he sees the excessive credit in the financial system as having placed the global economy on a collision-course with hyperinflation.
Unlike past periods of turmoil, there are no truly 'safe' places for investment capital to hide. Geographic markets and almost all asset classes are positively correlated these days. They share many of the same risks and if a systemic crash occurs, they will crash together.
At this point, says Mr Dines, you want to invest in assets that can not be printed away by government desperation. You want to hold hard assets; "wealth in the ground" as Dines says (physical commodities, mining companies, etc). They're your best best to make money faster at a rate faster than inflation is going to happen.
On Government's Odds Of 'Saving' The Economy
They are borrowing money with no intention of paying it off. Politicians hope to be safely dead by the time it hits the fan. This year alone America is going to be running a deficit of 1.3 trillion dollars. Most people do not really even grasp how much a trillion dollars is. One trillion dollars. If you spend one million dollars each and every day from now on, back to the time of Jesus’ birth, you could not spend one trillion dollars. Right now America’s debt is approaching 15 trillion dollars, which are numbers used for astronomy. How is America going to earn that? With Facebook and Twitter corporations? Our industrial base is gone. Entitlements of fixed forced payments are a large and growing section of it.
On Resource Scarcity
Energy is, of course, extremely important. We have been writing in recent years about the coming resource imperialism. I founded the neo-Malthusian school of economics, which says that the planet is limited and the population is soaring. By brute logic, it is obviously unsustainable. You cannot just keep having more and more people on the same planet without, someday, sooner or later, running out. The nations that perceive this would start buying assets with that in mind. The primary example, of course, is China.
So there will come a time, in the not-too-distant-future, where the last new copper mine on the planet will be found. Hard to believe – because there has always been more – but with the world’s population soaring into the billions on an accelerating uptrend, something is going to break. Along with the currency going to break, things are going to be happening here from out of nowhere. Because when you are going at high speeds toward a brick wall in the dark, things can happen very quickly.
On Peak Oil
So the rapidly increasing demand and the shrinking supply of oil, despite any short-term oversupply, which is probably true now… is going to lead to a stratospherically higher oil prices. As soon as the military grasps that they will start needing to put windmills on airplanes, they will seize the remaining supplies and you will not be able to drive your car until the last drop. At some point there are some very disruptive changes coming to society.
On Gold
The price of gold and silver did not go up. It is the paper money that went down. Gold and silver are the ultimate money, coins of which are good anywhere in the world, no matter what is stamped on them, and that is the money. Depending on the amount of paper each nation prints is the price of gold in that particular country, or in that particular currency.
That is one way we were protected by the price of gold. Gold is the only investible asset in the world that has gone up the last 11 years without interruption, and that is because they are just running the printing presses. The more they do, the more value builds into gold and silver. Now of course, it will have its fluctuations. It went down in the 2008 crash but came right back up and made new highs. We tend to ride those out, and it is very important understanding what the main trend is. When you are really clear what is happening in the world, you know how to place your bets, instead of doing it blindly or just following casual recommendations from people.
Click the play button below to listen to Chris' interview with James Dines (runtime 56m:21s):
Download/Play the Podcast
Report a Problem Playing the Podcast
»
- 30194 reads
- Printer-friendly version
- Send to friend
- advertisements -
“We could not maintain the gold standard nor the silver standard. We could not maintain the copper standard, and now we cannot even maintain the zinc standard,” Paul noted. “Paper money inevitably breeds inflation and destroys the value of currency.”
~Ron Paul
when my daughters coin jar gets full i take them and replace with frn
That is child abuse...
OT.
But WOW. What a great Photo Op of the repub candidates.
http://www.facebook.com/photo.php?fbid=10150545680016312
It really brings out their personalities. LOL.
Ha ha, red arrowed -- Proving Repubs have no sense of humor. LOL.
Come and listen to a story about a man named Jed
A poor mountaineer, barely kept his family fed,
Then one day he was shootin at some food,
And up through the ground came a bubblin crude.
Oil that is, black gold, Texas tea.
Well the first thing you know ol Jed's a millionaire,
Kinfolk said "Jed move away from there"
Said "Californy is the place you ought to be"
So they loaded up the truck and moved to Beverly.
Hills, that is. Swimmin pools, movie stars.
source: http://www.lyricsondemand.com/
Maybe they junked you bc you had to look up the lyrics?
Land spreadin out so far and wide
keep Manhattan just give me that countryside
source: stuck in head since 1978
http://www.youtube.com/watch?v=i2Fs5GrUBwI&feature=fvwrel
Steely Dan - Do It Again
"as soon as the military grasps that"...???
DoD gets it already... they've played out every scenario possible.
All the more reason we need to get motor vehicles running on domestically produced CNG.
Pop quiz:
Does the US currently import or export NG on a net basis?
On a BTU basis, the current total US production of NG equals how many equivalent barrels of oil?
How long does a 100 year supply last if use increases at 3% per annum?
Answer these correctly, otherwise we may safely ignore anything you have to add regarding energy....
Hold on while I look for the iphone app for that....
Flakdood has a good quiz.
Spend a moment sometime digging really deeply into the Honda natgas Civic.
Notice a few things. 1) It doesn't have the range per tank of fuel of a conventional Civic. 2) There is no trunk. To get a range per tank even 1/3 that of a conventional Civic, they had to make a larger tank that consumes all the trunk volume.
One (42 gallon) barrel of Nat Gas at atmospheric pressure has 1/1000th the energy of oil. One One Thousandth. No typo.
Oil is amazing stuff. That's why civilization depends on it.
Serious inflation can occur when people lose faith in the currency. In that case, people will buy things of real value such as food, food production capability, basic housing, strored energy, PMs, etc...
Note cheap housing. It would be unwise to buy the biggest/expensive house to ride out this kind of inflation as no one will buy it and it will cost more to heat/cool and live in.
Even if the Central Banks are able to gradually inflate away the debt overhang, and everything else goes up in price gradually, loading up on useless real estate would be a bad bet. Owning some productive real estate (inexpensive rentals, leased farm land) might make better sense.
well said. McMansions are a brief and foregone chapter in US history
I'd hate to see a McMasion after a couple years without heating and a/c. I bet that Chinese junk doesn't hold back mold and mildew well.
how about..."market participants"? will they buy them too? (yes.) and in so doing will that cause "prices to rise"? (yes.) and as prices rise and these..."humans"...start making money...will they become greedy? (yes) and upon...discovering...this thing will they want more money? (yes)...and will they get more by using massive amounts of leverage and "convincing everyone on the planet this is a Sure Thing!"? (yes). of course this last part is limited because the media is...the media is...the media is...http://www.youtube.com/watch?v=2tbfNw2xsUk&feature=player_detailpage
miker
Owning some productive real estate (inexpensive rentals, leased farm land) might make better sense.
Decent rates on Renting, is fast becoming a no GO.
Rental rates are now up to par with what you pay for a home you are buying,the only saving grace is your not responsible for Property taxes, and major repairs,UNLESS you damaged something.
Leased farmland, would make the most sense,provided your were able to do something with it.Growing crops is a no go, as the gub has basically outlawed (almost small home gardens).
So, forget any ROI there.
I know Orwell would be shiteing his pants if he saw the US today, and compared it to his vision of his book 1984.
Congress and the Senate have intro'd a NEW bill calling for WAY more unmanned drones all over the USA ,to be in force and up and running no later than 2014.(The FAA will control it, sure they will).
Militaries that devour oil and resources in an effort to control oil and resources that they've just devoured, generating larger militaries that devour more of the diminishing resources to control it all along a diminishing return equation.
In other news,
Iran rejects IAEA report on nuclear facilities Indo-Asian News ServiceTehran, September 07, 2010 Iran rejected Monday's report by the International Atomic Energy Agency (IAEA) as politically motivated and partial, ISNA news agency reported. "The IAEA should be more careful and not deviate from the course of impartiality and fairness," the chief of Iran's Atomic Energy Organisation. http://www.hindustantimes.com/world-news/RestOfAsia/Iran-rejects-IAEA-report-on-nuclear-facilities/Article1-597036.aspx
Pass this around. Very meaningful paintings, with commentary, done by outstanding artist, who is completly cognizant of the current massive problems
http://goo.gl/huc50
Historically inaccurate. Lincoln would've also been applauding Obama after skullfucking the forgotten man.
This whole article is based on the premis that the global population and demand for oil are expanding,the only expanding populations in the next twenty years will be on the African continent , all others are contracting quite rapidly,
Any increase in demand for oil is fictional or temporary, India and China are about to grind to a dead stop as the western demand crumbles and the Baltic dry index tanks in confirmation,
Inflated employment numbers in the US will do little to create demand from people who have little or no income or appetite for gas at 3.50ish.
Speculators may have an appetite for oil but they will get burned when the reality sets in, as far as Buying a big house as an investment, they have to be joking right, a shrinking population, a massivley overbuilt inventory all combined with a market so screwed up it can not be recognized ?
Gold and Silver, yes!
at any price? at..."your" price? not arguing with you of course...just sayin...
what article?
hey! lQQky =+=+=+>>> States seek currencies made of silver and gold | Gold Anti-Trust Action Committee
I got to ask Ron Paul a question at a rally today re: the bill you were wondering about. I am not a good interviewer and I am not sure he remembered what it was about. For what it is worth here is the exchange.
http://www.youtube.com/watch?v=evLNiaoB6QU
>>
So the rapidly increasing demand and the shrinking supply of oil, despite any short-term oversupply, which is probably true now… is going to lead to a stratospherically higher oil prices. As soon as the military grasps that they will start needing to put windmills on airplanes, they will seize the remaining supplies and you will not be able to drive your car until the last drop. At some point there are some very disruptive changes coming to society.
>>
A weak interview of no consequence and less value.
Oil's price is not going stratospherically higher. Its scarcity is going to pinch economic activity, which will reduce demand for oil, and lower the price very low, which will stimulate economic activity, increase demand for it and spike the price.
Price is not informative about oil. It will tell you nothing other than your present position in the cycle. It will only take a few cycles like this before the pinching effect starts to starve people in various places, who will start wars, and the wars will disrupt the cycle.
None of this is going to be a trading mechanism. You won't make money on this because of government interventions (wars) in the cycles. This is not about trading.
It's about dying.
well..."dying" has been around a long time so obviously "that's to be monetized first" in a fiat debt printing scheme. No need to be theatrical about it. insofar as oil goes...we have millions of barrels a DAY being consumed. PRICE is EVERYTHING. So what if the price of gold goes to 10,000 an ounce? "how much is there"? is the question. if oil goes to say...500 bucks a barrel...well!..."just look at Egypt, Syria, Libya, Iran, Israel, Pakistan" etc...etc...
http://www.youtube.com/watch?feature=player_detailpage&v=kZ1Quz7H93Q
Well, of course dying in this context refers to global economic activity.
Nothing could wipe out globalism faster than eradication of transport (via prohibitive fuel prices, or even outright scarcity). In fact, eradication of transport is almost definitive as destruction of globalism.
As well as food to grocery stores in cities.
As for being around a long time, yes we do have precedent for death. What we don't have is precedent for 6 of the 7 billion people doing it. We don't have any precedent for 7 billion people doing anything at all.
It is because of this that history can teach us no lessons. There is no history of a 7 billion human world consuming more oil than can be produced. It's never existed before.
Probably the best perspective to use as a starting point on all this is the Sunday Afternoon Drive of the 1950s-60s. Families would pile into the car and go for a Sunday Afternoon Drive to see sights.
That's all gone. There is no slack. There's nothing that can be conserved that doesn't come off of economic activity (and note, that's not "growth").
7 billion people consuming oil?
You mean like those Nigerian whose consumption has to be suppressed in order to allow first rate consumers aka US consumers in their consumption?
3 billion people are currently out of modern energies usage.
Including them into any account is mere US citizenism.
And that is good.
FREE NIGERIA NOW! FREE NIGERIA NOW!
Chinese citizenism, in its running dog imperialist manifestation, would overrun and eliminate the "racially inferior" Nigerians if it could militarily reach that far ---- just as they are doing with the more closely related Tibetans, and would like to do with the Taiwanese, their apostate brothers, if they dared do so as well.
Chinese citizenism is all about conquering, raping, pillaging and blobbing-up.
The world must put an end to the scourge of Chinese citizenism.
Did we ever get a definition of "Blobbing"?
Blobbing up is part of the essential nature of the Chinese citizens, which manifests itself in Chinese citizenism.
Every action of Chinese citizens results in blobbing up.
Whenever you see blobbing up, you can be assured that is due to greedy Chinese citizenism and running dog crypto-fascist Chinese imperialism.
Tibetans are familiar with Chinese citizens blobbing up. The freedom-loving inhabitants of the independent republic of Taiwan are threatened by Chinese blobbing as well.
Wherever environmental destruction can be seen in China (which is almost everywhere), blobbing up is always close at hand.
Only Chinese citizens can fully grasp the nature of blobbing up, this form of destructive rapaciousness being inherent to Chinese citizenism.
Blobbing is the eternal nature of the Chinese citizen.
Blobbing. It's what's for breakfast.
If our good Chinese friend Anonymouse were here, I am sure that he would say that your retort is just another example of the shallow and arrogant inherent nature of US citizens' citizenism's citizens' citizenism, or something like that (it is admittedly difficult to put one's mind into the kinked and twisted mobius strip of kneejerk and bigoted anti-Americanism that makes up the circular, contradictory and hypocritical thoughts of Anymouse).
Thanks AKaK, blobbums up. have a great weekend.
And a very happy "(Whomever) Citizenism" weekend to you too!
true...true..."but we do have a precedent for 6 or 7 billion people dying." It's called "we know that's gonna happen." You, me..."we're going to die." I know..it's tough to digest. here...maybe this "Sudden Impact" will help:
http://www.youtube.com/watch?feature=player_detailpage&v=FnMLGkj91Og
he did say HALT! (I recommend halting myself.)
Rapidly increasing demand? in rapidly shrinking markets?
Oil scarcity based on the usual Iran Kabuki that is performed for such occassions is only that, we have been on the verge of war with Iran since the Shah left town, if they do pull the trigger this time they will have to stretch the war out for as long as possible to maintain the inflated oil prices, perhaps if they used NERF weapons this time, it could go on forever and would be far less bloody.
The cure for high commodity prices is high commodity prices.
Increase the energy flux density of the sun and problems solved. Make a mission to send man to Mars now! The insights and progresses of man made from such a challange will save civilization from another dark age.. which I believe is coming.
Agreed, as long as this technological leap takes place before the age old solution called WAR takes hold.
There do exist problems that cannot be solved.
The state of Oklahoma's oil production is presently 75% lower than it was in its Peak flow rate production year of 1927. Yes, 1927.
That is 80some years of technology that has done nothing to stop that decline. That is 80some years for the absurd abiotic oil theory to refill their fields so they can produce their peak production flow rates again.
There are some problems that cannot be solved. There is no rule of the universe that says mankind's civilization will advance and survive, even without a war or catastrophe.
The best way to get a problem solved is to tell anyone with half a brain they can't solve it.
Or just see how the laziest person is getting it done.
"Peak Discipline" Monedas teams up with Amy "Tiger Mom" Chua and FLOTUS (Doe In Chief) Michelle Obama to promote the creation of a "Potty Corp" ! The idea is to promote "Peak Discipline" by sending inner city black children to North Korea for two years of extreme potty training ! The Norkoms can earn some foreign exchange while show casing their approach to Commie Tough Love.....and the disadvantaged children can get a "leg up" on life´s challenges ! Monedas 2012 Communism...where every toilet is a public toilet !
The one thing that Dines said and which rings true is that scary line about how we are going along at top speed towards a brick in the dark.
Does anyone disagree that this is a good description of the world economy?
Yeah that metaphor fucked my head up too... very clear and terrifying scenario.
James Dines Amazing totally tuned in.
Interesting audio. Uranium, bitchez?
This guy has good things to say but enough of the "I was the original ___ bug" garbage.
Made me laugh.
US citizens and the impossibility to self indict.
Once again, the numbers drum.
Comical. Always the same pattern with US citizens, the non participating entity is to be blamed for any disruption.
Not happy with an elected candidate? That is because of non voters. Way too many non voters, the population is increasing and crisis of representation is due to that ever rising number of non voters.
Another US citizen who thinks he deserves every single cent he makes.
The eternal nature of the Chinese citizen is to deny the existence of Chinese citizenism.
Chinese citizenism is the program of conquering, displacing, exploiting, destroying and blobbing-up.
Just ask the unfortunate victims of Chinese citizenism, the Tibetans --- while they still exist.
Just look at the environmentally degraded toxic cesspool that is the Middle Kingdom.
Just look at the anthill-like density of rabbit-breeding Chinese citizens.
Just look at the running dog imperialist threats against the independent nation of Taiwan.
Chinese citizenism is destruction and hypocrisy incarnate.
also, just look at the symbolism of the nation flag colors
red for blood (war)
gold for money (wealth accumulation)
With all this in/de-flation talk my question is...................
With the warm weather we are having and heating oil use way down, how is uncle benny gonna export that money (inflation) that he typically transfers to the producing countries. ?
Is that money gonna stay here in the States ? Oh' thats right........energy is not included in the CPI...........never mind..........?
Zero point energy coming up.
If there is no point in having the energy why make it?
We don't need zero point energy, we have unicorn piss!
Duh!!
One trillion easy save a thousand dollars a week, for a hundred thousand years.
Now only if we could have got the planet a 401k or savings plan early in its 4billion year life. Or even when it first started to have kids about 3 billion years later.
Martenson is the man... Cool calm collected as he explains what the future has in store. I think his crash course sums up the situation very nicely. I ask all my friends and fam to watch that to know where i am coming from when i tell them to take precautions and close BofA accounts. I always note how its my generation 30s vs them in the 50s. They have everything riding on the status quo while me and my wife fully understand the system is kaput and changes must be made now..This divide is clearly noted when talking about ron paul... The boomers are afraid of that man...peace out .. nice weather on the ca coast today. on the slopes not so much.. get out there and enjoy
The Carl Sagan of collapse.
Dines says the word "hyperinflation" every other sentence in this interview.
Take a look at the roadmap gentlemen! It looks like everyone will see the Black Swan land, which is ironic, because of the definition of the term.
This may b e why the PRC is telling its people to invest in the Barbaric relic, eh?
Necessity is the mother of innovation. Malthus was debunked hundreds of years ago. Technology advances not in spite of scarcity of fulfillment of a need but because of it. (should I put the patent number?)
"Malthus was debunked hundreds of years ago."
Exactly right. And he's still being debunked daily:
http://www.bbc.co.uk/news/magazine-16870579
By the BBC even!
But notice the "scare tactic" graph on the right side.
The entire article tells you that birth rates are *way* down worldwide, yet they still try to spin it a little.
There are many studies out there.
Population of planet Earth is going to peak in a bit...then decline forever.
No problem. Earth is a self regulating ecosystem.
There are those who would tell you otherwise. Some are brainwashed parrots, some have a sick agenda.
Refute these bastards at every turn!
Dines is a major blowhard, you might say the "original" blowhard... he knows everything, he forecast everything and is the smartest guy on the planet... just ask him if you have a few hours to waste.
There is another possible scenario on the armed forces commandeering all available fuel. I have been following with interest the development of Algae fuel. Apparently, the Navy is a big supporter of the technology, and it is already partnering with producers. The technology will not be ready for many year to be sure. However, it can already be a source of bio oil which can be refined with the same plants currently refining regular oil. Most of the fossil fuel comes from this source over millions of years anyways. They are just cutting the middle man. Granted it will be expensive to start, but it WILL move those battle ships whatever the cost. No surprise, San Diego is quickly becoming the center of research for this technology.
http://www.guardian.co.uk/environment/2012/jan/13/maersk-cargo-boat-algal-oil?newsfeed=true
It's not inflation in the traditional sense, like the Weimar Republic that's happening. It's disinflation, where prices are going up because the currencies are going down in value, but the economies of the world are stagnating, people will not be able to afford their normal standard of living because of lack of employment. In effect, the same thing like Weimar is going to happen, but it will take a slightly longer time to play out.
I thnk you have just coined a new phrase, "stagdeflation"
bihyperstagdisinflation...
I think that's what's going on here...
They are borrowing money with no intention of paying it off.
I have suspected this for a very long time. It is unlikely that all these assembled brains, like Geitner,, Bernacke, Obama, and their advisors and puppet masters are so ignorant as to be able to see the mathematical outcome of what they are doing. Yet they keep borrowing and spedning faster and faster, as if in a hurry to do as much damage as possible before it all comes to an end. this whole scenario does not seem to be an unintended outcome of silly policy, it looks intentional.
Assume what these people are doing is intentional, then there must be a motive AND a plan how to deal with the consequences when the game ends. I dont want to hear about FEMA camps and chem trails to kill everybody, starting a war with iran or china. I mean a financial game plan. these people know what is coming and what the likely outcome will be to the various investment categories, where are they putting their money? what is their plan to hold onto the loot they have stolen from the usa and world? I dont believe they will choose hyperinflation or default as that would not be in their best interests; what they will do is what we need to know because it is the tip off as to where your own money should be.