Claudio Grass

Claudio Grass

Claudio Grass is a passionate advocate of free-market thinking and libertarian philosophy. Following the teachings of the Austrian School of Economics he is convinced that sound money and human freedom are inextricably linked to each other. He is one of the founders of GoldAndLiberty.com. He is also founder of GlobalGold Switzerland ................. Keeping assets outside of the country you live is key. Switzerland remains the best jurisdiction for private property rights. Why? Because of its federalist structure in combination with direct democracy. It assures that the power of politicians is limited and that the people and not the politicians are the sovereign.

Articles by Claudio Grass

The destruction of civilization – implications of extreme monetary interventions

When I was asked to write an article about the impact of negative interest rates and negative yielding bonds, I thought this is a chance to look at the topic from a broader perspective. There have been lots of articles speculating about the possible implications and focusing on their impact in the short run, but it’s not very often that an analysis looks a bit further into the future, trying to connect money and its effect on society itself. 

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The ECB’s “mea culpa”

Economists, conservative investors and market observers have been issuing stern warnings for years regarding the severe impact of the current monetary policy direction. In a recent statement, ECB Vice President Luis de Guindos warned of potential side effects and risks to the economy resulting directly from the central bank’s policies.

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The Evolution Of The Bank Run

There are numerous and wide-ranging reasons why someone may choose to invest in physical precious metals. A deep understanding of monetary history provides plenty of solid arguments, and so do the mounting geopolitical risks, the spiking probability of a recession and the long-term goal of many conservative investors to safeguard their financial self-determination.

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“We don’t have to behead the king if we can just ignore him” – Claudio Grass

“Negative interest rates are unsustainable and once investors decide to stop paying for the privilege of holding government debt, a banking crisis could result, says James Grant.” Returning SBTV guest, Claudio Grass, speaks with us about the unsustainable pensions, crumbling fiat currencies and a looming financial crisis in a world of insane central bank monetary policies.

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QE by any other name

Boosting Reserves, 2018-2019

“The essence of the interventionist policy is to take from one group to give to another. It is confiscation and distribution. “ – Ludwig von Mises, Human Action In less than a year, we have witnessed an unprecedented monetary policy rollercoaster by the Federal Reserve, which began with a momentous U-turn in the central bank’s guidance in January, and has continued to escalate ever since.

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The Growing Opposition Against the ECB

Few investors and market observers were really surprised when Mario Draghi announced the ECB’s next massive easing package in mid-September. Cutting rates further into negative territory and the revival of QE were largely expected sooner or later, as the “whatever it takes” outgoing ECB President is now faced with a wide economic slowdown in the Eurozone.

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A buying opportunity in precious metals

After a remarkable run over the past few months, gold and silver now appear to have entered a period of consolidation. Many speculators and short-term focused investors have sold their positions fearing a correction, while mainstream market commentators fuel these fears, with analyses that proclaim “the end of the road” for gold and silver.

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A turning point in the bond market?

Yield curve inversions typically precede recessions, 1980-2015

We’ve recently seen a lot of coverage and even more “expert analyses” on the state of the bond market, to the extent that the average investor, or the average citizen for that matter, is likely to be overwhelmed and very confused about what it all means. Experts from the institutional side and defenders of the current monetary direction argue that it is all the result of policy choices, that’s it’s all under control and that we really shouldn’t worry about the extreme phenomena and distortions we now see in the debt markets.

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Is it platinum’s time to shine?

Global mine Production of Platinum, 2014 to 2018

Even with seasoned precious metals investors, it is often the case that platinum gets overlooked, while gold and silver dominate the conversation over which metal affords the best long-term protection of one’s wealth. Nevertheless, platinum has proved to be an excellent store of value, while it also offers a number of interesting advantages as a long-term investment that could play an important part in a conservative and proactive strategy.

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“The Eurozone faces the worst combination of economic and systemic risk”

The Eurozone faces the worst combination of economic and systemic risk

The past few months have been an exciting time for gold investors, as the precious metal has seen a spike in demand after serious economic concerns and geopolitical tensions unsettled the markets. Many mainstream analysts have pointed to a number of recent events, from the US-China trade war escalations to the inverted yield curve, to explain the recent gold rally.

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THE FED’S CAPITULATION: WHAT IT MEANS FOR GOLD INVESTORS

Fed's Capitulation - Claudio Grass

After the Federal Reserve’s monetary policy U-turn earlier this year and the central bank’s decision to cut interest rates for the first time in a decade, mainstream investors and analysts believe that holding rates lower and for longer will help keep stock markets afloat and the economic expansion alive.

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“More of the same” at the ECB increases gold’s appeal

“The intellectual leaders of the peoples have produced and propagated the fallacies which are on the point of destroying liberty and Western civilization.” Ludwig von Mises, Planned Chaos. It took multiple meetings and over 50 hours of official negotiations for EU leaders to reach an agreement on the appointments for the top jobs of the EU and the ECB, but in mid-July the results finally came in.

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The Swiss Legacy In Direct Democracy Is Exceptional

Our readers probably realize by now, what a proud Swiss fellow I am, and how I take every possible opportunity to argue how Switzerland presents itself as a role model to achieve radical decentralization and respect for civil liberties. It also assures the right of self-determination in an environment where municipalities, cities or smaller states are in competition with each other and, by doing so, limiting the power of politicians.

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In defense of Switzerland

An interview with Prof. Angelo M. Codevilla. Following decades of the propagation of a false historical narrative regarding Switzerland’s role during WWII, an entire generation, especially in the West, has grown up with a distorted version of events, based on unfounded and unsubstantiated claims.

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All this borrowing to consume is unsustainable and the bill is overdue

June has been an interesting month for gold, as geopolitical events, market fluctuations and developments on the monetary policy front fueled an exciting ride for the precious metal. As long-term investors with a strict focus on the big picture, short-term moves and speculative angles are largely irrelevant in and of themselves, but they do provide important signals that, without fail, confirm the strategic superiority of precious metals holdings in this highly overvalued and artificially inflated investing environment.

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Gold is the secret knowledge of the financial universe

Every seasoned gold investor and every student of monetary history has likely stumbled upon various theories about institutional manipulation of the gold market. While it is true that rarely is there smoke without fire, it is still important to approach this matter rationally and form opinions based on sound evidence and solid research.

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THE PENALTY FOR SAVING

In previous articles, we have outlined in great detail the many faults of the current monetary policy direction of major central banks and the large-scale economic impact of keeping interest rates artificially low. Among the worst offenders is the ECB, that is unapologetically persistent on continuing this exercise in absurdity that are negative interest rates.

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THE CURRENT MONETARY ORDER IS NEARING ITS END

Interview with Dimitri Speck. Given the massive intervention and monetary manipulation experiment by central banks over the last decade, the amount of distortions created in the market, as well as the record debt accumulation at all levels of the economy, have given rise to considerable risks for investors. For a more detailed understanding of these issues and for his outlook, I turned to Dimitri Speck, a renowned expert in the development of trading systems and in seasonal analysis, whose experience and successful career spans over two decades.

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SOUND MONEY: A BIBLICAL PERSPECTIVE – PART II

Money and Gold

The value of silver and gold is given by their own nature. Neither gold nor silver has value expressed in other units of account. Their value is expressed directly in their own weights. Everything else that is valuable (other assets, commodities, goods, services, or performed labor) is measured against a certain weight of these metals. In other words, the value of gold and silver is assigned by their own nature, while the value of a transaction is measured by the quantity of the metal that changes hands.

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Sound money: A Biblical perspective – Part I

Money and Gold

In today’s world, it is obvious that the competition of ideas is under serious threat and with it, the much-needed discussions on how to deal with certain topics or try to understand the world we live in. That is particularly worrying, especially when one considers that the western world went through the process of Enlightenment roughly 200 years ago. In the words of Immanuel Kant:

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Merger mania: Consolidation in the gold mining sector

Metal Mergers 2008-2018

Late last year, Barrick Gold, the world’s largest gold miner in terms of reserves, made headlines when it announced its acquisition of Randgold Resources, in an $18bn mega-merger that marked a key moment for the mining industry. In January, United States gold giant Newmont and principal rival of Barrick, made public its own plans to buy Canada’s Goldcorp, the world’s third-largest bullion producer by market value, for $10 billion.

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ECB: running out of runway – Part II

ECB Balance Sheet All Assets, 1999 - 2018

Overall, under Mr. Draghi’s watch, the ECB’s balance sheet has ballooned to a previously unimaginable scale and aggressive policies like the extensive QE program and negative rates have encouraged the accumulation of debt and heavily distorted market mechanisms.

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ECB: running out of runway – Part I

Euro-area Industrial Weakness, 2010 - 2019

At the end of January, only a month after the official end of the QE program of the European Central Bank (ECB), its President Mario Draghi told the European Parliament’s committee that the central bank could resume its bond purchasing, in a questionable effort to assuage concerns over the impact of the policy change.

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China: Harbinger of Global Economic Decline

China's Slowing Economy

The latest numbers released by China’s statistics bureau fueled widespread concerns about the outlook of the global economy, as the Asian superpower reported its slowest growth rate since 1990. The figures showed a 6.6% growth for 2018, confirming the view that the growth engine of the world economy is running out of steam.

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The Big Picture: Paper Money vs. Gold

PBoC balance sheet

Numbers from Bizarro-World. The past few months have been really challenging for anyone invested in gold or silver; for me personally as well. Despite serious warning signs in the economy, staggering debt levels and a multitude of significant geopolitical threats at play, the rally in risk assets seemed to continue unabated.

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Venezuela: when fiat money reaches its intrinsic value

Hyperinflation Spiral, 2006-2018

Over the last years, Venezuela has become a modern poster child for the failure of socialism and with good reason. It offers an abundance of lessons and stern warnings for many western nations, but it also provides a very insightful and relevant reminder for individual investors too.

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A Fake Brexit and the “Noble Dream” – Claudio Grass Speaks With Godfrey Bloom

Introductory Remarks: The “Anti-Politician” Godfrey Bloom, by PT
Most of our readers will probably remember former UKIP chief whip and European Parliament representative Godfrey Bloom. As far as we know, he is the only politician who ever raised the issue of the workings of the fractionally reserved central bank-directed monetary system in the EU parliament. This system is of course central to the phenomenon of the recurring boom-bust sequences plaguing the global economy.
 
Godfrey Bloom (left) and interviewer Claudio Grass
 

It is also a major means of redistributing wealth from the poor and the middle classes to those who are already rich and own most of the assets likely to appreciate in price due to monetary inflation (an unavoidable side-effect, irrespective of their wishes).

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Separating Signal from Noise

Todd Horwitz is known as Bubba and is chief market strategist of  Bubba Trading.com. He is a regular contributor on Fox, CNBC, BNN, Kitco, and Bloomberg. He also hosts a daily podcast, ‘The Bubba Show.’ He is a 36-year member of the Chicago exchanges and was one of the original market makers in the SPX.

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Love him or Hate him: Trump is the Revolution Against the Establishment

The 2016 U.S. presidential elections are unprecedented: I don’t believe we have ever witnessed before a campaign year so toxic, so dangerously divisive and full of ad hominem attacks. Both camps have vilified the opposition and their followers, creating a schism in society. There has been no rational dialogue on the issues that truly concern the American public.

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Gold Bull Market Remains Intact – Long Term Fundamentals Outweigh Short Term Market Gyrations

Kool-AID

In early 2016 gold had a big bull run. The precious metal rose close to 25% this year, pushed higher in a summer rally that peaked on July 10th. Gold experienced a bumpy ride over the remainder of the summer though, as investors became increasingly concerned about a potential rate hike by the Federal Reserve. Uncertainty returned to gold market and has intensified further since then.

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Is It Safe To Travel To Europe?

Holiday Destinations in Europe

In recent months, more and more of our clients and friends from overseas are asking us whether it is safe to travel to Europe. These fears are understandable, given the media coverage of the tragic events that occurred this year. The press painted a sinister and truly graphic picture of Europe as a war zone, as a target of global terrorism.

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The Undemocratic Nature of TTIP

Mounting Resistance Thousands of people recently demonstrated in Brussels against free trade deals negotiated by the EU. This happened just days before a meeting of EU trade ministers in Bratislava last Friday, which was considered the last push to salvage the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States.

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Crimea: Digging For The Truth

This summer witnessed a renewed escalation between Russia and Ukraine after Russian President Vladimir Putin accused Ukraine of sending saboteurs to attack Russian troops, targeting “critical infrastructure”. Kiev denied the allegations and claimed Russia’s “fantasy” was nothing but a false pretense to launch a “new invasion”.

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Loose Monetary Policy and Social Inequality

It has been almost eight years since former U.S. President George W. Bush warned the world that “without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.” The government’s response to the crisis was a USD700 billion rescue package that was supposed to prevent U.S. banks from collapsing and encourage them to resume lending, which was soon to be followed by a series of Quantitative Easing (QE) packages injecting money into the economy.

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The Fabian Society and the Gradual Rise of Statist Socialism

The Brexit referendum has revealed the existence of a deep polarization in British politics. Apart from the public faces of the opposing campaigns, there were however also undisclosed parties with a vested interest which few people have heard about. And yet, they have been instrumental in transforming Great Britain into a State based on the principles of democratic socialism.

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Investing in Gold in 2016: Global Paradigm Shifts in Politics and Markets

Crumbling Stability. In the past few months, we have witnessed a series of defining events in modern political history, with Britain’s vote to exit the EU, (several) terror attacks in France and Germany, as well as the recent attempted military coup in Europe’s backyard, Turkey. Uncertainty over Europe’s political stability and the future of the EU keeps growing.

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Claudio Grass Interviews Ronald Stoeferle: Central Banks In A Lose-Lose Situation

A Fragile System. Claudio Grass, Global Gold: Ronald, it is a pleasure to have the opportunity to speak with you. We’ve known each other for a very long time, both on a personal and professional level. Because of our central banks, we find our economies today operating on artificial stimulus and negative interest rates. How would you summarize the consequences of this policy?

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End of an Era: The Rise and Fall of the Petrodollar System

The chaos that one day will ensue from our 35-year experiment with worldwide fiat money will require a return to money of real value. We will know that day is approaching when oil-producing countries demand gold, or its equivalent, for their oil rather than dollars or euros. The sooner the better.

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Towards Freedom: Will The UK Write History?

Every freedom loving person on the planet has their eyes fixed on this referendum. A clear majority voting for Brexit and therefore for more decentralization, would show that the British realized they can break free from their self-imposed nonage, and reclaim individual liberty.

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Claudio Grass Talks to Godfrey Bloom

  Introductory Remarks – About Godfrey Bloom [ed note by PT: Readers may recall our previous presentation of “Godfrey Bloom the Anti-Politician”, which inter alia contains a selection of videos of speeches he gave in the European parliament. Both eru…

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Cultural Marxism and the Birth of Modern Thought-Crime

  What the Establishment Wants, the Establishment Gets If a person has no philosophical thoughts, certain questions will never cross his mind. As a young man, there were many issues and ideas that never concerned me as they do today. There is one que…

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Gold – The Best Defense Strategy

  The War on Cash is on! If you are used to making visits to your bank to make your credit card payments, you may find this no longer an option in the future. Some banks are no longer accepting (or limiting their acceptance) of cash deposits. The war…

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