David Tice (http://prudentbear.com) and James Turk, Director of the GoldMoney Foundation, talk about the 1999 credit bubble symposium, which warned about the dangers of reckless money printing and asset price inflation.
They talk about how Keynesian and monetarist economics have led us down this path, while Austrian School teachings of Mises, Rothbard and Hayek were ignored.
They also talk about gold mining, the risks involved and how diversification helps to mitigate these. They emphasise the importance of physical gold bullion as opposed to “paper gold” — pointing out that the latter is not a tangible asset.
James and David talk about stocks, volatility and the dangers of another Lehman-style market meltdown, and discuss potential “black swan” events on the horizon. They discuss currencies — with particular emphasis on the plight of the US dollar — and note that many countries are resorting to capital controls in an effort to stem the appreciation in their currencies.
Both men emphasise the importance of education and learning about monetary history. James makes his point that it is not gold, but rather central banks that are the barbarous relic. They also discuss the importance of distinguishing between price and value; in the case of gold it should be valued in relation to its peers — that is, other forms of money. Using this metric it is still undervalued.
This interview was recorded in August 2011 at the GATA conference in London. David Tice is a shareholder of GoldMoney.com.