The WWII Monetary Order Is Over

McAlvany Weekly Commentary

Bill King On Russia, Iran, China, & Bretton Woods III Should Trump Expect The Reagan Double Dip Recession? DOGE Attacks The Grift & Skim Government “The gold is an okay inflation hedge. It's an enormous political hedge, and that's what's going on. China, especially Europe. Europe is in deep, deep trouble. Now the good news is that Trump might force them to do the major restructuring that they need to do, just like some company that's going down and all of a sudden, the vultures of private equity start taking positions and you start saying, 'That's it. We got a position there, and guess what? If you don't cut all this stuff out, we're just pulling your funding and then you're going to go to zero.' That's what Trump's giving to Europe, reform or guess what? You're going to go to zero." —Bill King Kevin: Welcome to the McAlvany Weekly Commentary. I'm Kevin Orrick, along with David McAlvany. David, I'm really looking forward to this interview. We talk to Bill King at least once a year, maybe twice a year. I was talking to a client just before we stepped into the studio. This guy is pretty sharp. He works at a lab that works on nuclear fusion. He listens to the Commentary every week, and I said, we're going to go interview Bill King right now. And he goes, "Oh, I love Bill King." He says, "Now, I do have to listen two or three times, but I love Bill King." David: A lot to unpack for sure, every time. The perspective that is sort of from macro to micro, taking the 30,000-foot view and then getting right into the trenches, daily market activity. No better guest, I don't think, that we've had in the 18, 19 years we've been doing this. * * * Bill King, always great to have you on the program. I feel like we're in touch daily as we read the King Report without fail daily. In fact, my oldest son is a bit of a news junkie and he too has enjoyed the King Report as he's gotten older, freshman in college now and probably better read than most his age, and I have you to thank for that. So let's start with some contextual issues, and then drive towards specific market and asset class considerations. Really big things changing, potentially the re-engineering of the global trade system on the table. Tariffs are part of that, maybe change tax policy internationally factoring in. Expand for us what it means to be at the intersection of significant trade policy shifts, political re-engineering here in the US, and a morphing of geopolitical commitments. Bill: You know, these are changes that probably are more profound than even when Reagan came in, and probably more profound than the Republican Revolution in 1994 when they took the House for first time since with the '50s. Since then, they've had the House more than the Democrats, when you go back all those years between the '50s and whatever, thirty-some years, the Republicans seldom had the house. So some very profound changes. And the big one, of course, is Trump is trying to dismantle the administrative state, the deep state. And this is something all the way back to Reagan people talked about, but it hasn't happened because of entrenched interests in the United States Congress and in the executive branch and even the judiciary, and it's happening so rapidly. And then of course, the same thing is you're getting Europe. Europe had the changes with Soviet Union went down '91. The wall went down, what, '89 and then you saw that they brought in the euro, the EU, all this stuff is unwinding. And then even China, China's having all kinds of issues now. They have so much debt, they're straining to get their economy going. There's all kind of hints of political unrest and Xi's trying to hold on. So we don't quite know. I mean, the one thing the Fed is right, is they're saying, "We had to wait because we don't know how this is going to play out." Well, they're looking at the tariffs, but there's things far bigger than tariffs going on.