The Financial Repression Authority is pleasured to be revisited by Ty
Andros, Chief Investment Officer of the Sanctuary Fund. FRA Co-Founder Gordon
T. Long has has a stirring conversation with Mr. Andros on a number of
current economic developments and consequently, the things to unfold.
Ty began his commodity career in the early 1980's and became a managed
futures specialist beginning in 1985. Mr. Andros duties include marketing,
sales, and portfolio selection and monitoring, customer relations and all
aspects required in building a successful managed futures and alternative
investment brokerage service. Mr. Andros attended the University of San
Diego, and the University of Miami, majoring in Marketing, Economics and
Business Administration. He began his career as a broker in 1983, and has
worked his way to the creation of TraderView of which he is the CEO. Mr.
Andros is active in Economic analysis and brings this information and
analysis to his clients on a regular basis. Ty prides himself on his personal
preparation for the markets as they unfold. Ty is an expert in applying the
indirect exchange method as a principle of the Austrian School of Economics
in his investing approach.
The Austrian School of Economics
It consists of 3 major components.
- Sound money and private property
- Free market capitalism
- Human behavior
The cycle we are going through now has happened hundreds of times in
history and has led to the rise and falls of empires. It's because of people
forgetting the past and repeating the same mistakes. If you don't have sound
money, you really don't have protection against the government. They can
confiscate your money and they have been doing so since Bretton Woods.
"The money that we hold in banks is a worthless junk bond. The
government has essentially become the mafia; they are scheming and
transferring property to themselves."
Sound Money
The figure below outlines the specific functions of money:
If it doesn't have these components then you're not holding money. Until
1971 it had all those features, and it has been replaced with an I.O.U of
fiscally and morally bankrupt politicians and banks. It is worth no more than
the paper it is printed on.
"In my opinion, the gold and silver bear market is over so it is a
prime time to start accumulating now."
Market Capitalism and Wealth Creation
Capitalism is about getting more for less and three groups of people being
rewarded for it: The consumer because he is able to give his family a better
life, the company which supplied it, and the employees within the company.
Socialism eats everything. Real wealth and income creation are in
freefall. There will be no recovering. The confiscation of wealth is also
known as runaway regulations, runaway debt creation, more taxes and currency
debasement.
"Its pure confiscation, cannibalism, and slavery. It is eating the
golden goose. It's the people that aren't self-reliant and don't produce
anything eating those that do."
It's pure confiscation, cannibalism, and slavery. It is eating the golden
goose. It's the people that aren't self-reliant and don't produce anything eating
those that do. Nobody owns their homes, it's simply a record that's held in a
database and all they have to do is misplace it. Nobody owns their stocks in
their name and if you look at your banking agreement you don't even have
title to your money, the bank does. Slowly but surely they have removed
everything. They don't let you hold money because they can't steal from it;
real money has been outlawed.
"Gold is the currency of kings, silver is the currency of
merchants, and debt is the currency of slaves."
Currency Extinction Event
GDP is nothing of the sort, it's just debt disguised as GDP. It is
spending future wealth rather than creating future wealth for proper
allocation to productive enterprises.
"We have nothing; we are just a bunch of debt slaves living in an
illusion until we wake up."
The Events of 1971
President Nixon changed from a reserve backed system where the dollar was
semi redeemable in gold and silver to a system that has no backing.
"It was the greatest heist in history. It was the greatest
transfer of wealth from the public to the 'bankseters'."
He did this so that he wouldn't have to operate in a prudent manner.
Prudent manner means have to pass laws and have taxes which gives people a
reason to get up in the morning and have the ability to do the capitalism
which was discussed earlier. When you have bad laws and bad regulations, the
economy will either collapse or they have to print the money to fill the
whole; unfortunately they chose the latter.
"History has shown what happens to people who try to fix this
system."
Kennedy was taking the central bank back and creating silver backed money,
90 days later he was dead. Of course we will never truly know, everything is
so covered up now and the government is incapable of telling the truth.
The Indirect Exchange
"This is how you go through a currency and financial extinction
event. Exchange something of uncertain value, fiat money, for something of
certain value, real wealth. This is the indirect exchange in simplest
terms."
So much of the 'financialization' of the economy is an illusion because it
is not the real things going up; it's the paper that they're priced in losing
its purchasing power
"The greatest applied Austrian economist in the world is none
other than Warren Buffet."
What Warren does is he sells paper which means liabilities are being
debased by central bank's printing presses and credit creation. If he writes
an insurance policy for someone for $10 million, he now has a liability of 10
million, if he did this in 2000 that liability may be 5 million and
simultaneously he took that money and bought the Burlington Northern
Railroad, which is something that will just reprice to reflect the lower
purchasing power it is denominated in. If we are in a depression or a boom,
regardless the railroads will run. Half of his great track record is
inflation that isn't properly disclosed. He has been doing this since,
coincidently 1971. He has been selling paper and buying real things with cash
flow ever since.
Gold doesn't cash flow but it is about to. Because of negative interest
rates you're paying somebody to borrow money from you. If you are able to
hold your money without having to pay someone to hold it.The gold and silver
bear market is over. As these destructive negative interest rates go deeper
and deeper, people will eventually wake up. They've already woken up, this is
what's going on with the presidential race and particularly Donald Trump.
"This is the greatest insanity ever. It will be studied and
written about for centuries. It is a much bigger example of stupidity and
failing to learn the lessons of history. It is much larger in scale than the
Great Depression because of the nature of globalization and the nature of man."
Abstract written by, Karan Singh Karan1.singh@ryerson.ca
Video Editor: Sarah Tung sarah.tung@ryerson.ca
