TFMR Podcast #22 - John Butler, author of "The Golden Revolution"


Of all the podcasts I've recorded, this is certainly one of the most important.

Our pal, Ned Naylor-Leyland, introduced me to John Butler a few weeks ago. I'm grateful that he did because John's new book, "The Golden Revolution", is the most important book that I've read in quite some time. At just 200 pages, the book neatly summarizes the history of global sound money, the circumstances surrounding the exit of the previous gold standard and the likely events that will effect and implement the next, global gold standard. Read this book and you will begin to understand how and why this new gold standard is inevitable.

I implore you to purchase this book for yourself and/or someone else. Father's Day is right around the corner and it would make a terrific gift, too. Most importantly, John's book is indispensable in the preparation for the end of The Great Keynesian Experiment and you simply must read it.


May 27, 2012 - 10:29am

Dent, gold's future

Dent speaks well, his demographic analysis is sound, but he completely misses the boat regarding the feds ability and desire to fight deflation with an airforce of helicoptors.

Dow 36k? God I hope he's right. I can't imagine what a $36,000 Krugerrand would feel like.

How might we get a gold standard? It is not going to come from any country encumbered by debts or entitlements (debts by another name). Some other country, that likely begins with a C, is going to became the overnight reserve world currency when they create a strong, sound gold attached currency. And all of those other countries, loaded with debts and entitlements are going to get inflated into chaos.....destroying the debts and entitlements. I see no way out. Look at how the Greeks are refusing the choice of wiping out all debts (including entitlements) and starting over with a sound currency. People will not do the right thing because they view it as too punitive-even if it is the right thing. So they choose to keep the fraud going....until the day it stops entirely. You've got the bankers and the entitled all on the side of keeping the ponzi going....take the Tea Party folks who want fiscal responsibility, but "don't touch my medicare"..."I earned it", scuz me, no you didn't. You don't get a hundred trillion dollar UNFUNDED liability because you funded it, i.e., earned it. That happened because a long list of corrupt politicians stole it from future taxpayers and lavished it upon you. Of course, you voted for them...Its a fraud and you are possessing stolen goods.....I better duck!

and that is my point. America will not address the fraudulent debts and entitlements....ever. It will be forced on us.

Remember, you don't get massive unfunded liabilities because you funded them in the first place....that is not savings, and surely is not earnings.

Now vets, they earned it....they have funded with something far more dear than savings. It is Memorial weekend....

May 27, 2012 - 10:51am
May 27, 2012 - 11:18am



also, whats new? (nu)


chemistry and physics mock economics

May 27, 2012 - 12:06pm

Economics ... not a science

A nice little rant I stumbled upon:

Monday, May 14, 2012

Economics...not a science, not even a dismal science...just dismal

I've been doing TV for a long time and I can tell you that sometimes the best conversations occur during the commercial breaks.

Last Friday I was on "Rewind" on Bloomberg TV. My co-host was Joe Brusuelas, Bloomberg LLP's Chief Economist. He says he has a PhD in economics, but it's not posted after his name, nor does anyone over there call him "Doctor." Anyway, it doesn't really matter because as we all know Warren Mosler only has a Bachelor's degree in Economics, but he's the most brilliant economist I've even met and he can run circles around these PhD's. Even Keynes didn't have a formal degree in economics.

Anyway, during the break we got into a discussion about the economy and what could be done to get growth up. We were talking about the "fiscal cliff" looming out there next year and I said that I thought it was a big problem if not addressed and he said something was going to be done, but it wasn't going to be on the fiscal side. He specifically said that fiscal was off the table yet he didn't give a reason why, however, I sensed it was not because of political reasons, but more a question of "means," at least in his mind. Then he laid it out to me and said, "The Fed will do it."

I said, "The Fed? How?"

He said, "monetary policy."

"Monetary policy?" I asked, incredulously. Then added, "That's worked well." Of course I was being deeply sarcastic.

I followed quickly with, "There is no direct channel from monetary policy to demand."

He says, "Of course there is. There's at least six."

(So this guy is saying to me that there are six channels to demand from monetary policy.)

"Name one," I say.

He said, "interest rates."

(Me, laughing), "That's it? That's what you got? Interest rates? That's worked well, too," I repeated, making sure I said it in my most sarcastic voice, while laughing.

I could tell he was getting peeved. He must have been thinking, who was this no-name economist, former Fox News Contributor talking to me about economics? After all, he was the Chief Economist of hoity toity Bloomberg. Who was I? John Thomas who?

I pressed, again (I love doing this as you can see), saying, "QE, doesn't do anything for demand."

Then he said (get this), "That's because house prices have not risen."

House prices have not risen???? That was his PhD response....

May 27, 2012 - 12:08pm
Prize Fighter
May 27, 2012 - 12:45pm

johnboatcat, that's why I

johnboatcat, that's why I bought my Saiga-12 now. They hate those things. Will it make them illegal in any form or can they be resold with a Class III like an M16?

El Gordo
May 27, 2012 - 1:37pm

Gold standard not a voluntary solution

I suggest that we not look to government to generate any type of currency that would be accepted by the masses should our current system collapse. No one will want to trade goods or services for fiat, but barter and items of generally known and accepted value would be traded. Thus, presumably, gold and silver, along with chickens and loaves of bread, would be traded among the people routinely. At some point government would step in to try to intervene in order to collect taxes on the trades and might offer up some sort of trinkets or paper claiming to represent value, but it would be up to the people to accept or reject it. Given what would logically lead up to a collapse of currency to begin with, government would probably have a difficult time trying to convince the people that they could be trusted no matter what they came up with. There's no reason to think the government leopard is going to change his spots just because of a national calamity or two - those people never change.

May 27, 2012 - 1:52pm

Removed comment

Removed comment.

May 27, 2012 - 1:58pm

Prize Fighter, I think it will be to ban imports

like the MKA 1919. Got mine already. Great gun. Eats everything I feed it within reason. They don't like shotguns with mags.

33 and a turd
May 27, 2012 - 2:05pm
Silver Danny
May 27, 2012 - 2:09pm

Iran designs alternative system for SWIFT: CBI

Iran designs alternative system for SWIFT: CBI

Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani says the country has designed and implemented a new system for conducting international transactions.

Bahmani said on Saturday the new system,which has already been activated, would replace Worldwide Interbank Financial Telecommunication (SWIFT)

May 27, 2012 - 2:47pm

CIC of China

The so-called 'Sheriff of the East'?

Other members of the Advisory Council of the CIC (our saviours from the East, apparently…) are:

Merit Janow – Council on Foreign Relations
David Emerson – violated ethics code in Canadian elections
John J Mack – former CEO of Morgan Stanley
John L Thornton – former President of Goldman Sachs
Jean Lemierre – President of European Free Trade Association

Turd – are you on to this? I’m getting a bit bored of Western ‘alternative’ financial analysts referring to ‘China’ as the ones who are going to save us from these Wall St crooks, when in reality it’s the same bunch! Let’s give this exposé some media coverage.

May 27, 2012 - 3:09pm
Prize Fighter
May 27, 2012 - 3:10pm

That 1919 is sweet.  Saiga is

That 1919 is sweet. Saiga is an import straight from the Russian Izhmash factory, makers of the AK. They come without a pistol grip so some conversion is needed to get it to this point but pretty easy.

May 27, 2012 - 3:30pm

venn diagrams

Clinton ,Obama, and D seem to have the most connections by far; a few Bush, Reagan, especially if you go to the link and read those too.

Seems kind of weird somehow

May 27, 2012 - 4:20pm

Had seen this Reuters video a

Had seen this Reuters video a few weeks ago with John Butler:

Gold standard inevitable, $10k/oz looms, says new book

John Butler: Return to the Gold Standard Inevitable
May 27, 2012 - 5:00pm

Great podcast Turd

We Turdites appreciate your hard work. I want to invite all Turdites who are interested in active trading focused on precious metal equities to visit. for the latest free trades and market commentary.

May 27, 2012 - 5:20pm

Evaporation requires

Evaporation requires concentration of all extra thermal energy in the system in one place/functional subpart of it increasing temperature in that part enough to evaporate the pieces/liquid that seems to be particularly de cooperating. That is called war in policy- take the heat out of other problems, focus it on war, plus evaporate/liquid(ate) the annoying parts of system.

However, the vapor in this case will be oversaturated as there is no space in the system ( Earth- or is there) where is could expand and cool to equilibrium. Instead, it will condense into liquid on various frozen segments, adding heat to them and destabilizing them. Thus, one relatively small event of evaporating the unpleasant disturbance of unity can start a chain of creating de cooperating pieces all over the system, nearby at first, leading to the need to evaporate more of them.

And so on, until thermal balance is achieved- a relatively chaotic heated state with a lot of structures gone which thermodynamically will match the deviation in heat caused by initial shock which initially led to extreme cooperation and freezing, thus letting out a lot of heat. This heat, once distributed in a destructive manner described above, partly unfrozen (structures liquidated-e,g states or functions) , partly evaporated ( productive assets including labor) , create a new equilibrium -quite chaotic with a lot of vapor but in thermal balance, and this vapor will be so distributed that it will start to condense over all system almost at once, starting at most suited freezing centers- new centers of power- creating new frozen structures and pathways leading back to increased degrees of cooperation- new world order ( not in conspiracy theories sense) - just a new way for the world to be able to operate again.

This processs has happened many times in the past, but as with the USA debt limit being a new parameter in current financial crisis, where debt limits have been reached, the intensity of vaporization increases with every time as human population still growing superexponentially in a precrash like manner reaches the closer and closer to the limits of planet Earth and there is less and less of still empty space where the vapor can condensate and cool off without disturbing some existing structures. Hence population growth is the single most disturbing , though natural, determinant of the scale, length and intensity of coming future calamities. The vessel is full, and we have not developed enough leaks to other planets.

I wonder if these analogies make ANY sense, Just fun.

R man J
May 27, 2012 - 8:59pm

Remonetization coming: Gold's move to Tier 1 Collateral

This article show how bank regulating agencies connected to at least 7 countries may revalue gold as top rated collateral for bank loans. Currently Sovereign Bonds and Cash are valued at 100% but gold is only 50%. That is about to change. Another potentially key sign for the remonetization of gold.

"The Basel Committee for Bank Supervision (BCBS), the maker of global capital requirements and whose Basel III rules form the basis for global bank regulation, is studying making gold a bank capital Tier 1 asset."

If gold is made a Tier 1 Capital asset banks could operate with far less equity capital than is normally required. Gold would be the new backstop for debt, currencies and bank equity capital.

Turdle GG
May 27, 2012 - 9:10pm

Turd's ladies like John Butler

One of Turd's favourite ladies, Daniela Cambone, also recently interviewed John Butler:

Return to Gold Standard Would Push Gold to $10,000/oz - John Butler's "The Golden Revolution"

As did Lauren Lyster:

Beyond Currency Wars, the Coming Global Gold Standard w/John Butler
May 27, 2012 - 9:11pm

Has anyone else here heard that bakelite

might become rarer than diamonds? :-) Did you know it is just pressed cotton? These are all 2011 vintage. Bakelite is vintage. 410 shotgun and two AK's in alternate calibers. Love that bakelite. Now that's real plastic!

Who said, "The weapon of my enemy, when I need one, needs to be my friend."? I don't remember but I took it to heart.

May 27, 2012 - 9:13pm

To the Veterans.......

Thank you, we love everyone of you... Although these wars have been mis-represented to us by criminal leaders... We know why you served....and Thank You for it from the bottom of our hearts....May God Bless you for your tremendous is not lost on us. Peace
May 27, 2012 - 9:36pm

Nice Work!

Turd, Great podcast! Seems like "rack 'em and stack 'em" is the way to go, especially if it's all accepted for everyday use again in the not-so-distant future.

May 27, 2012 - 9:44pm



Need more like these two ................Hung on every word

May 27, 2012 - 10:28pm

Memorial Day

Last year a friend of mine told how is platoon Lt went insane after leaving 2 guys behind in the bush. It hurts thinking about it.

ClinkinKY johnboatcat
May 27, 2012 - 10:47pm


ATF shotgun article is about a news article that

Submitted by johnboatcat on May 27, 2012 - 3:09pm.

is 13 months old. Ignore it.


Yeah, Constitution is 236 years old. Ignore it.

Just sayin'

May 27, 2012 - 10:57pm

When I See

....someone make predictions of gold getting to 10,000/oz that tends to make me skeptical and I then find the rest of that person's writing somewhat dubious. I know the thought of gold getting that high gives a lot of readers "warm fuzzies". If I was to say I believe gold is going to drop to 1,000/oz in the future (which I don't), a lot of people here would say that I am a "troll" and would want me to validate my prediction. Yet, my "prediction" is only about 570.00 less than current spot. I guess when people hear predictions that conform to their mindset, attainability isn't questioned.

May 27, 2012 - 11:17pm

Attainability of $10K is easy

It's called hyperinflation.

It's happened about 20 times in the last 100 years.

History is your friend, and this time it will not be different from all the other times.

May 27, 2012 - 11:26pm

Ivars thank you for the post

Ivars thank you for the post above, can you recommend any books that talk about economics in these terms? I have attended some talks at Schumacher College in the UK that have touched this and found it absolutely fascinating. Economics work in the same way as other complex systems that are part of the whole Gaia. Fractals within fractals.

May 27, 2012 - 11:45pm


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