“The nature of a ‘black swan’ is that it’s an asynchronous event that you don’t see…I needed to make myself…anti-fragile,” said Rick Rule an investor. He says he was prepared for 2008 and for this “everything bubble” bursting in 2020. But he also wants us to look at the real problem: the government’s addiction to power.
Rule says that while what’s happening right now feels very serious, “this too, will pass.” Rule also suggests that if you are in a position to do a little bit more, try to help someone who is struggling right now. We should not be relying on Congress, but each other to get through these tough times. He had some suggestions, and those are to “keep cash. And make some of that cash, gold.”
Rule also touched on the opportunities for those who are looking to protect themselves during this crisis. The first piece of advice he’s offering is to keep large cash balances. Cash will give you the courage and the tools to take advantage of volatilities rather than be taken advantage of. For more advice, watch the entire interview with Future Money Trends’ Daniel Ameduri below:
It’s going to cost you money to hold cash, and Rule touched on the inflation expected as the central banks keep printing money. But some of the cash you keep should be in the form of gold. “The truth is that gold has done its job.”
“It’s not the crisis that makes the gold [prices] go up. It’s the policy response to the crisis. Make no mistake, the government will use this crisis to debase the currency.” The debt bubble has found a pin and hyperinflation is upon us.
Rule is expecting that most people will look at the policy response, which is the bigger problem. You should ” view the coronavirus not as the problem, but rather as the pin that pricked the bubble. The bubble being the credit-driven expansion.”
As Dr. Paul recently said, “the real danger is the government’s overreaction.”
Ameduri asked Rule if we are going to go through a currently reset, and Rule doesn’t believe that will be the case. “A currently reset deprives politicians of their power which is something they fear much more than the virus.” Rule, therefore, predicts stagflation, weak economic conditions, and an unstable currency that is losing purchasing power.