Willem Middelkoop: The Big Reset – How Power and Pricing is Shifting Away From the West
Palisades gold Radio: 7-3-2024
Tom Bodrovics welcomes back Willem Middelkoop, author of ‘The Big Reset,’ to delve into his insights on the anticipated transformation of the international monetary system and its effects on global finance and investment strategies.
Published in 2007, ‘The Big Reset’ garnered considerable attention after the financial crisis in 2008 due to Middelkoop’s beliefs regarding the impending collapse of the dollar system as a result of mounting debt and economic instability.
In this conversation, he reflects on how his viewpoint has progressed since ‘The Big Reset’s debut and the emergence of Bretton Woods 3.0 from the eastern world, as well as the shift towards commodity-based currencies.
Middelkoop highlights the importance of gold in the context of evolving reserve currencies and its function as a hedge against currency devaluation. He underscores the significance of comprehending the process rather than fixating on timing when anticipating these financial transitions.
Discussing potential alternatives to the US dollar as the world’s primary reserve currency, Middelkoop acknowledges China’s expanding influence and burgeoning gold reserves. He asserts that the transition will unfold gradually with minimal impact on daily life for western residents but issues a warning of potential harm to Europe in the power struggle between the U.S. and China.
Moreover, he voices concerns regarding economic and geopolitical risks, particularly escalating tensions among major world powers that could lead to significant military confrontations.
Middelkoop shares his investment portfolio strategy, dividing it equally among equities, real estate, liquid cash or Bitcoin, physical gold, and silver.
He advocates for diversification and caution in response to the inflation of bond and equity valuations. Middelkoop believes that commodity-backed currencies and base metal producers present opportunities for underpriced investments. Middelkoop also addresses the difficulties faced by the silver mining industry due to jurisdictional risks, low silver prices, and a lack of incentives for exploration.
Time Stamp References:
0:00 – Introduction
0:45 – The OG Reset Book
8:10 – Hindsight & Timing
13:05 – Pozsar & Dedollarization
17:47 – Gold Vs. Fiat History
20:45 – A New Gold Standard?
23:30 – Global Debasement
29:38 – Dollar Replacements?
33:15 – BRICS ‘Trade’ Currency
36:39 – Hegemony & Conflict Risks
44:02 – Dollar Weaponization
46:08 – Silver & Physical Deficits
48:44 – Central Banks & Silver
53:36 – No New Silver Finds??
56:45 – Jurisdictional Risks
1:00:07 – Portfolio Weighting
1:03:09 – Signposts Ahead?
1:05:33 – Wrap Up
Talking Points From This Episode
– Middelkoop emphasizes gold as a hedge against currency devaluation in the context of evolving reserve currencies.
– He highlights China’s expanding influence and growing gold reserves as potential alternatives to the US dollar.
– Middelkoop advocates for diversification in investment portfolio, including commodity-backed currencies and underpriced base metal producers.
