The talk around the coffee machine in the Money Morning office has been focused almost solely on one thing: The World War D conference starting this Monday.
I’m excited. In fact, I think we all are.
You see, while we take the time each day to share our thoughts, ideas and projections with you by email, we very rarely get to do that in person. And I know our editors have some very special and perhaps even radical ideas up their sleeve for this conference.
If you can’t make it, don’t worry. We’ve got you covered. You can place a pre-order for the DVD of the event here at a 25% discount. Also, throughout the week we are going to share some of the ideas presented during the two day talk fest.
In addition, of course, we’ll take advantage of social media. If you haven’t already added our Twitter handle @MoneyMorningAU, make sure you do.
So, what can you expect?
The thing is, I’m just not sure…
Most of the editors have kept their presentations under wraps, with only the compliance guy getting a look in. I was helping Nick Hubble, editor of The Money for Life Letter run some statistical data for what our future population might look like. The end result? Two charts which move in opposite directions!
Considering The Money for Life Letter is an alternative newsletter for your twilight years, the results could be terrifying.
Aside from our own editors, we have some incredible speakers presenting. Two of the presenters, Dr Marc Faber and Satyajit Das, are widely known for their out-of-the-box thinking. These two are the statistical outliers. The voices you don’t get to hear in the mainstream press.
And if they do get a guernsey on prime time, it’s rarely taken seriously. Often you’ll find it’s only when something they’ve predicted actually happens, that someone in the mainstream will dig out a quote from them – generally from years ago. The TV presenters will reluctantly agree that yes, event A or event B was predictable.
However, World War D isn’t our gloomy report about the global economy. It’s about a transition to a new economy and how to prepare for it.
That’s a line from the movie Cat on a Hot Tin Roof. And while the almighty American dollar might have been sound then, it ain’t now.
In 1958, even though gold prices were only USD$35 per ounce, every dollar in the United States was backed 10% by gold. Today, there is nothing backing the dollar except the word of the US government. But that’s OK because we’re not on a gold standard anymore, right?
When the US dollar was still on a gold standard in 1958, the M2 money supply was US$285 billion. Now, it’s US$11,112 billion. In the same period, the gold reserves for America have dropped from 18,291 tonnes to 8,137 tonnes.
Look at this way. The total money supply of America is now 38 times higher, while the amount of gold held has shrunk to less than half.
Why do I bring this up? Because the US dollar’s not sound. The growth in credit and money supply, and shrinking gold stockpiles isn’t conclusive proof of this. But it does help explain just how out of balance things are.
The mammoth credit and fiat currency experiment is nearing an end. Moreover, there must be something else to take its place.
But what?
This is what the presenters will discuss at the World War D conference on Monday. Next week, I should be able to shed some light on how our presenters think our currency system will change. And what digital money will mean for you.
In the meantime, have a great weekend. I hope to see you at the conference.
One last thing. The same year US gold reserves started to fall and credit started a slow expansion, the very first microchip was developed. Coincidence, maybe?
Shae Smith+
Editor, Money Weekend
Ed Note: World War D starts on Monday! Marc Faber, Jim Rickards, John Robb, Satyajit Das, Byron King and Richard Duncan – six of the brightest minds in global finance – are about to descend on Melbourne. If you can’t make it don’t worry. We’ll be live tweeting the event throughout the two days. To get a blow-by-blow breakdown of everything happening at World War D follow us on Twitter now @MoneyMorningAU and to see the event from Technology Analyst Sam Volkering’s point of view, follow him at @techinsider_sv.