Jason Burack of Wall St for Main St had former stock broker and longtime financial industry veteran, Alasdair Macleod, who is now head of research at Gold Money www.goldmoney.com/, back on for another interview.
During this 50+ minute interview, Jason starts by asking Alasdair about negative rates imposed by the European Central Bank (ECB), what this means for people in Europe and whether this is the Keynesian end game?
Alasdair and Jason talk more about Keynes, his General Theory and some of the problems Keynes' theories have created in the real world for economies.
Next, Jason asks Alasdair about inflation in Europe and if despite credit contraction in the private sector in Europe, if UK and the rest of Europe actually has deflation in consumer prices?
Alasdair says his bills keep going up and Jason confirms through his podcast network of European listeners that many of their everyday bills are also going up because of inflation and deflation is not running rampant in Europe.
Jason then asks Alasdair about a new story being released by the Financial Times (NYSE:FT) talking about how global central banks have pumped about $29.1 trillion in global asset prices and the economy to keep asset prices from falling and keep the economy in a false sense of recovery. Alasdair thinks quite a bit of this money has gone into physical gold purchases.
Jason, then asks Alasdair about a story he broke for the gold community in 2013 about how the Bank of England sold or leased about 1300 tons of physical gold into the market when they don't own nearly that much gold.
Jason asks Alasdair how they can sell something they don't own?
Alasdair talks about the fractional bullion market, central bank gold leasing and how he thinks this is slowly coming to an end because Western central banks are running out of physical metal to leverage up via derivatives and hypothecation.
Jason asks Alasdair about the Bank of International Settlements (NASDAQ:BIS) and whether the new banking regulations of Basel III will mean banks will buy and hold more physical gold.
Finally, to wrap up the interview, Jason asks Alasdair how much physical gold he thinks China owns and why his Chinese physical gold demand numbers differ so much from Koos Jansen of In Gold We Trust.
Alasdair thinks China could already own 8,000 tons of physical gold (he thinks over 5,000 tons owned for sure) and he says Koos Jansen's Shanghai Gold Exchange (SGE) numbers assume that government is telling the truth and based on how governments are basically all lying about GDP, inflation, employment, numbers why are the Chinese going to tell the truth about physical gold withdrawals on the Shanghai Gold Exchange?
This interview is well worth your 50 minutes spent listening.
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Link to podcast: youtu.be/HHGPFIdqOxs