Miles Harris: Basel III, Good or Bad for Gold?

Tom welcomes Mile Harris to the show. Miles is an investor, free-market advocate, and macroeconomist. Miles takes us on a deep dive into how the Bank of International Settlements operates as the central bank of central banks along with upcoming Basel III changes in June. He believes their ultimate goal is facilitating monopoly control over fiat currencies and global monetary policy. He discusses the credit risks developing in the system after real estate lending was classified as low-risk. Mortgages are much easier to get than business loans and are resulting in rising inequality. When credit begins to tighten, we will see falling home prices, and borrowers are likely to experience the joys of negative equity. He explains how Northern Rock Bank is an interesting case study into financing arrangements and interbank lending problems. These policies resulted in a customer bank run which required the Bank of England to provide emergency lending. He discusses the upcoming changes to Basel III standards in June. Tier one capital refers to bank financial reserves, including its equity. Tier two capital is regarded as undisclosed funds like demand deposits. Gold is on the asset side of a bank balance sheet and is usually considered a risk-less asset. Its only risk is price changes, not unlike a foreign currency. They will consider gold as a zero-risk weighting if it's allocated and has been hedged with a short position. He thinks now is a perfect time to go long gold as banks are closing short positions and banks seem to be taking possession of their gold. There could be a real rush towards physical delivery and absolute chaos due to an overall lack of physical bullion. A Comex failure could potentially bring down the US currency, and gold could rise rapidly. He believes this year we could see investment silver demand rise to nearly 50% of production. There could also be demand for companies and countries to acquire strategic reserves of the metal. The West is now heavily indebted while having gutted much of their industrial capacity, and they appear to lack the political will to change the situation. Time Stamp References:0:00 - Introduction0:42 - Bank of Int'l Settlements2:47 - Mortgage Debt & Risk6:16 - Northern Rock Bank9:12 - Basel III - June Changes12:00 - Capital, Assets, & Risks19:05 - Allocated vs. Unallocated20:18 - Comex Gold Outflows21:32 - Gold & Silver Fiat Enemies23:53 - PMs vs. Money Supply26:56 - Gold and Valuations30:12 - Banks and Silver Reserves31:24 - Overall Silver Demand33:48 - Global Transformation35:59 - Gold and Silver Miners38:00 - Long-term Gold Outlook39:30 - Concluding Thoughts Talking Points From This Episode * Overview of Bank of International Settlements operations* Mortgage debt, risks, and inflation.* Gold outlook and silver investment demand in 2021. Guest Links:YouTube Channel: https://www.youtube.com/channel/UCgxzDgbociRWqhDUW3YjS9gTwitter: https://twitter.com/MilesHarrisLGA Miles Harris has a BSc and Master’s degree in economics, with a major focus on transitional economies and financial crises. In particular, this has included the Asian financial crisis of 1997, the Russian debt default of 1998 and how China’s gradualist approach to transition has enabled the country to weather regional and global crises. After flirting with a career in the city I chose instead to focus upon real estate investing in the early 2000s. He has since become a passionate advocate of the Austrian school of economics and enjoy sharing t...

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Palisades Gold Radio is the largest online discussion platform for junior mining globally. Each week, host Collin Kettell interviews top experts in the energy and mining space to discuss macro trends and identify strong investment ideas. With over 1,000,000 views in just three years and videos viewed from over 150 countries around the world, Palisades Gold Radio is the best place for top quality mining content. Guests have included Robert Kiyosaki, Don Coxe, Rick Rule, Eric Sprott, Doug Casey, Frank Holmes, Marc Faber, Jim Rogers, and much more. Visit us at www.palisadesradio.ca