Economic prognosticator Jeff Thomas has, for decades, had an unusually consistent record for anticipating future events accurately. After an unsettling 2020, we interviewed Jeff to get his take on where we’ve been and what the future might hold.
SWP: You’ve held precious metals since the 1970s, so you’ve been able to get more of an overview than most people on their performance. What’s your take on precious metals ownership today?
Jeff Thomas: Well back in the 70s, I was buying and selling. It wasn’t until the early 80s that I figured out that I needed to stop selling. Since that time, I’ve continued to buy, but haven’t sold an ounce since 1982.
In the beginning, I saw metals as a source of profit. By 1982, I realized that they had a second, greater value – that of an insurance policy against hard times. Gold has held that position for over 5000 years. In troubled times, people always return to gold as a central form of wealth retention.
And those hard times have now begun. The crisis that I’d been anticipating for so many years, got underway in 2020 and what we’ve seen so far is just the tip of the iceberg.
SWP: So you don’t see the COVID crisis as a situation that will be overcome in the next year or so?
Jeff Thomas: No, definitely not, I’m afraid. I was in China just prior to the release of the virus and at that time there were warning flags that the pending military games in Wuhan might be used by one nation or another for other purposes. A week after the games, which involved over one hundred nations, the release of the virus had been confirmed.
Now, from that, we can’t say which nation or nations might be responsible, but the least likely nation to have released it would be China itself. So, was the release intentional? And, if so, who released it? I don’t imagine that we’ll ever know the answer, but regardless of the original intent, what we can be sure of is that the EU and US took immediate advantage of its spread to implement an illegal removal of citizens’ rights on a wholesale basis.
It was a brilliant move, as the false reporting and resultant confusion created such fear that the peoples of Europe and North America caved in quickly and did as they were told by their governments. This trend then spread across the globe.
SWP: Had you anticipated something like this?
Jeff Thomas: Yes and no. Yes, I was confident that, by May of 2020, there would be a major event that would have dramatic political effect, particularly in the US, but no, I didn’t anticipate that it would be a virus. I can’t say whether the release of the virus was intentional on the part of governments, or whether it was merely co-opted once it had occurred, but dozens of countries acted in unison with their reactions. Regardless of whether or not it was created consciously, it was a huge opportunity for governments to cover for their errors and increase their control.
The world was already at a tipping point. All the indicators showed that a monetary collapse was imminent. If there had simply been a collapse, the world would have blamed the ruling elite who had created the problem. A distraction of major proportions was necessary. I knew there would be a distraction, I just didn’t know what it would be.
SWP: You correctly anticipated a Trump victory in 2016, but said at that time that he would be a one-term president and would give rise to a socialist wave in America that would gain power in 2021. What made you anticipate what was to happen?
Jeff Thomas: The last truly major economic collapse occurred in 1929. Back then, Herbert Hoover, a conservative businessman who had never held elected office, had been elected as the US president. The collapse was timed to occur on his watch. The collectivists blamed him for the crash. He was the patsy who made possible the introduction of collectivism in the US in 1932, with the election of a Wall Street insider who would rein for the rest of his life as president, selling troubled Americans on collectivist concepts as a solution to their losses.
I thought it highly likely that 2020 would see a US election that would be similar to that of 1932 - filled with visceral hatred of the capitalist president, combined with collectivist rhetoric as the salvation from capitalism. The Left would win the election, which would herald in a return of what the Roosevelt years had only begun. The US would dive headlong into collectivism – something that would not have been possible before the demonization of Mister Trump.
SWP: The US has never seen anything like the level of vitriol seen in this election. Do you think that this was overkill, or was it necessary?
Jeff Thomas: It needed to be over-the-top, just as it was in the 1932 election, to ensure that not only did the collectivists have the presidency, but the House and Senate as well. Beginning in 1932, they held all three for twenty years. There was no effective opposition from conservatives. The win on 5th January will make possible the total control necessary for a transformation into collectivism for the US.
SWP: Do you see this in isolation, or do you see it as a part of the globalist movement?
Jeff Thomas: Oh, unquestionably the latter. Globalism will most certainly be focused primarily on the EU and US, but will be heavily supported by the UK, Australia, Canada, New Zealand, Japan, etc. There will be an all-out attempt to give the appearance that the entire world is uniformly on board with the programme.
SWP: What of the other powers: China, Russia…
Jeff Thomas: China and Russia have no intention of being gobbled up by the West. But their own self-interest will ensure that they’ll play along with much of the programme. After all, they’ll benefit from increased collectivism elsewhere. But they won’t be prepared to take a back seat on the bus. The West will attempt to utilize the UN, IMF, BIS, etc. to create a true globalist power centre, in which the other powers have minority voting power. That, in fact, is already in place, but in the end, Asia has other cards to play. For the moment, they’re holding those close to the vest.
SWP: What does this mean to us as individuals in the West?
Jeff Thomas: There are many possible outcomes, but if I think it’s safe to say that we’re headed for the major Western powers ramping up controls over their people. I believe that it will be a period of the most dramatic change that will happen in my lifetime.
But there will exist, in addition to the machinations of the Asian powers, blowback from those people who are willing to challenge the transformation into a globalist/collectivist state. What this will mean will be not just dramatic change, but a high level of chaos and confusion added to the mix. Certainly, a police state is planned to overcome this, but there’s no way to be certain at present as to how these opposing forces will balance out.
I should mention that this is not much fun to think about. We’d all prefer that it won’t happen, but if tumultuous times are on our doorstep, I’d rather address the prospect and prepare for them, and hopefully minimize the damage to myself and my family.
SWP: Do you see precious metals playing a role in that effort?
Jeff Thomas: I don’t think I can state how essential precious metals will be at such a time. Very soon, we shall see the elimination of much if not all of paper currency. All transactions will be done through banking institutions. They’ll not only dictate how much we can spend, but on what and when. This is already being done experimentally outside the US and the trial balloons are getting the bugs out of the system.
In addition, tax will cease to be paid voluntarily. It will be done by direct debit, without the approval of the taxpayer.
Just as the TSA was claimed to be a temporary measure after the 9/11 attacks, but became a permanent form of control, the COVID controls will prove to be permanent. The freedom to travel, to go to work and even to go to the grocery store will be by permission. Those who are non-compliant or speak out too loudly will lose their rights.
In such a socio-economic climate, the ability to have wealth that’s independent of the system is paramount. As people seeking freedom realise this, we shall see dramatic increases in the price of precious metals.
As asset prices crater in such a situation, gold will rise in price as it always has.
SWP: Would you hazard a guess as to how much?
Jeff Thomas: Well, certainly 500%, at a minimum, but probably well in excess. To answer the question correctly, gold will do what it has always done in periods of crisis: It will be driven to whatever price level is necessary to become a solution to the problem. Its price will be whatever it takes to balance out the level of economic devastation.
SWP: Do you see precious metals as a guarantee of that freedom?
Jeff Thomas: Unfortunately, there are never any guarantees. What ownership of metals will mean is that you will not be the low-hanging fruit. You’ll either escape subjugation, or you’ll be one of the last people to be subjugated.
But I should mention that there will be some essential factors in your ownership. First, it must be held as physical gold, not ETF’s. Second, wherever it’s stored, it will need to be allocated and segregated. Third, you must be allowed access to it if it’s in a depository. And finally, it must be stored in a country that’s not undergoing the transformation into collectivism. If stored in any of the countries I listed above, it’s best to regard it is being either inaccessible or confiscated at some point.
In surviving the changes that we’ll soon be facing, the three most important concerns will be how removed you personally are from the epicentres, what forms your wealth is stored in, and where that wealth is stored.
How you prepare for those three concerns may well define whether you come through this crisis with your skin on.