Kevin Duffy on the role of the fraudster

Does the scam artist serve a social function?  Sam Bankman-Fried unwittingly shed light on the corruption of many institutions: venture capital, elite universities, charities, professional sports, Hollywood, mainstream media, ESG rating services, regulatory bodies and the Democratic Party.  Remarkably, he was able to infiltrate their highest levels in the blink of an eye.  Just last May, SBF was rubbing shoulders with the global elites at the World Economic Forum in Davos.

~ Kevin Duffy, "FTX Collapse: Lessons for investors," The Coffee Can Portfolio, p. 8, January 24, 2023

Alasdair Macleod on China's saving culture

It is a savings ratio of 45% which is at the root of China’s power.  The lack of savings in America and its western alliance is their Achilles heel.

~ Alasdair Macleod, "The benefits of a saving culture," Goldmoney, January 5, 2023

Felix Zulauf on weaponizing the US dollar in response to Russia's invasion of Ukraine

[T]he Biden administration has made many blunders, but that was the biggest by far, weaponizing the U.S. dollar at the SWIFT payment system because that taught the world that is not as close and friendly to the U.S. as some others, that we should not hold our reserves in the U.S. dollar.  Therefore, the U.S. dollar's role as the major reserve currency is beginning to decline.  I think that China cannot store its reserves in U.S. treasuries any longer.  And I think they know that as well as I do.  And therefore I believe that in the current cycle you will see that there will be a shift, once the U.S. dollar has topped...  Those countries will put their reserves into stuff, into hard assets, that they can store within their own national boundaries.  And nobody can freeze those assets...  I think this was so dumb, so stupid, by the U.S. government, it's unbelievable.  They basically terminated the dollar system.

~ Felix Zulauf, interview with Adam Taggart, Essential Investing, 10:05 mark, December 27, 2022

Felix Zulauf on private sector shrinking in the West and growing in China

In think the private sector is constantly shrinking relative to the government sector.  We see that going on everywhere, even in the U.S.  In the U.S. we have jumped from the low 20% several years ago; we are now up to the upper 30% of government share of GDP.  In the European Union we are at 59%, so more than half.  In France we are at 64%.  In China we are at 35%, and I have been traveling to China when it was at 100%.  They have gone in the other direction.

~ Felix Zulauf, interview with Adam Taggart, Essential Investing, 8:25 mark, December 27, 2022

WSJ: "Gold bugs could be in for a long wait"

After a big rally early in the year, gold has lost much of its shiny appeal.  To regain that luster it will need to win against a formidable opponent—King Dollar. But with economists and business leaders still sending contradictory messages on the economy and the Federal Reserve still firmly focused on clipping inflation’s wings, gold bugs could be in for a long wait.

~ Megha Mandavia "Only the Fed Can Return Gold's Luster," The Wall Street Journal, October 18, 2022

Alvin Toffler on history

If we do not learn from history, we shall be compelled to relive it.  True.  But if we do not change the future, we shall be compelled to endure it.  And that could be worse. 

~ Alvin Toffler

Alvin Toffler on survival and change

The first rule of survival is clear: Nothing is more dangerous than yesterday's success. 

~ Alvin Toffler