Jason Burack of Wall St for Main St interviewed returning guest, best selling author of the book, The Big Reset, http://www.thebigresetblog.com/ about the changing global economy and commodities fund manager, http://www.cdfund.com/ Willem Middelkoop.
Willem Middelkoop (Geneva, 1962) is founder of the Commodity Discovery Fund, and is a writer. He became a well-known personality in the Netherlands through his work as stock market commentator for the Dutch business television channel RTL Z. Middelkoop predicted the onset of the credit crisis in his first book ‘Als de dollar valt’ (When the dollar falls) – 2007. Subsequent publications were ‘De permanente oliecrisis’ (The permanent oil crisis) – 2008, ‘Overleef de kredietcrisis’ (Surviving the credit crisis) – 2009, ‘Goud en het geheim van geld’ (Gold and the secret of money) – 2012, and his first book printed in English The Big Reset – 2013. In total, he sold over 100,000 copies of his books.
During this 20+ minute interview, Jason first asks Willem about whether another 2008 style banking crisis is happening as we see the share prices of bank stocks including Deutche Bank fall to levels not seen since 2008. Willem thinks a banking crisis is happening as there's over $1 trillion according to his estimates of bad oil and energy loan debts the banks can't write off or absorb that will mean banks are nationalized, bailed out or go bankrupt.
Willem thinks this can be worse than the 2008 crash as this is a global problem of banks going bankrupt as many gave out enormous amounts of oil and energy loans.
Jason asks a follow up question if Willem thinks there's good value for oil stocks that don't have a lot of debt because Willem manages money and invests heavily in resource stocks with his Commodities Discovery Fund.
Willem thinks there's lots of opportunities to make good investments in oil if people know where to look but many oil companies won't survive oil prices this low.
Next, Jason asks Willem about the US Dollar's status as the world's reserve currency (WRC) and the petrodollar with the RMB slated to go into the International Monetary Fund's (IMF) special drawing rights (SDR) basket towards the end of 2016 and what effects this will have on the global economy.
Willem says many countries are already doing currency swaps and bilateral trade agreements outside the US Dollar and that the process of the global economy "de-dollarizing" will continue unabated. Willem doesn't know how long the process will take but that the process is not going to stop.
Next, Jason asks Willem about the rally in gold and silver prices and whether the cyclical bear market in US Dollar terms for gold and silver is over? Willem says he believes the bear market is over although there will be corrections and volatility along the way as precious metals prices move higher.
Willem thinks there's really good value in select gold and silver stocks.
Finally, to wrap up the interview Jason asks Willem if in 10 years they will look back and be amazed at how the powers that be (TPTB) have been able to keep the game going and prop up asset prices and create more asset bubbles and credit bubbles without the US losing the WRC?
Willem thinks the global economy is not ready just yet to completely abandon the US Dollar but there's no need to keep nearly as many US Dollar reserves globally. Willem also thinks there's a high probability of a US stock market crash in the near future and that large amounts of managed money on Wall St is slowly moving large amounts of capital into precious metal related investments building positions for the next leg of the bull market in precious metals to continue higher after this long bear market has finally ended.
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