June 18, 2022

Episode #12 Explaining What is happening to the economy

Show Notes
Transcript

On this episode we talk about the economy. To help do that I brought on a guest who is why smarter than I am. His name is Kelsey Williams. Kelsey has worked in finance in one form or another for well over 40 years. He is the author of two books First Inflation: What it is, What it isn’t and Who’s responsible for it and his second book All hail the fed. He also has written and published many articles both for his website as well as other publications. All these resources can be found in the show notes.

During our conversation Kelsey breaks down exactly what is happening right now to the economy in a way that even a guy like me can understand. We talk about some possible scenarios on what the next couple of months could bring as well as touch on a few things you can do to weather this economic storm.

https://www.kelseywilliamsgold.com/

https://www.amazon.com/dp/B0794S2HZ4/ref=as_sl_pc_qf_sp_asin_til?tag=goldmine009-20&linkCode=w00&linkId=011d0cb8a2ae971da4d0818608d5b899&creativeASIN=B0794S2HZ4

https://www.amazon.com/dp/B07C5B4R5H/ref=as_sl_pc_tf_til?tag=goldmine009-20&linkCode=w00&linkId=8fd527ea781a261468661674c41df957&creativeASIN=B07C5B4R5H

https://www.youtube.com/channel/UCoRpOMl5C9C2sGDKlKFBMTw

--- Support this podcast: https://podcasters.spotify.com/pod/show/dave-kirkenbower/support

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So how's everybody feeling about
the economy?

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Yeah, it's not looking too great
on this episode.

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That's what we're going to talk
about the economy now, don't

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laugh.
Look, I told everybody on the

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first episode I ever did.
I wasn't the smartest guy out

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there.
This episode is a prime example

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on why I strive to have guest on
the podcast of the way smarter

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than I am.
I mean, look if you were to ask

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me what was happening to the
economy before I have this

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conversation, I would have given
you a totally profound answer,

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like, bird clean up.
Arrows are good and red down.

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Arrows are bad now.
Fortunately, my guest is way

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smarter than I am.
I sit down and have a

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conversation with Kelsey
Williams.

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Kelsey has worked in finance in
one form or another for well,

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over 40 years.
He is the author of two books.

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The first one is inflation, What
It Is, What It Isn't, and who's

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responsible for it.
And his second book is all hail

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defect.
He has also written countless

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articles, both for his website
and other Publications.

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All these resources can be found
in the show notes.

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Now, during our conversation,
Kelsey breaks down exactly what

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is happening right now to the
economy in a way that even a

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guy, like me can understand, we
talk about some possible

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scenarios over the next couple
months, and we even touch on a

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few things that you can do to
help whether the economic storm.

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That's next on this edition of
the Mormon Renegade podcast.

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Your listing to the Mormon,
Renegade podcast, welcome back

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to the Mormon Renegade podcast,
as always you can get ahold of

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me either by email at Mormon
Renegade at gmail.com.

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You can also get a hold of me on
Instagram and Twitter and getter

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under the handle.
Mormon Renegade.

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Also, Have a website up and
that's Mormon Renegade.com.

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So go check that out.
Well, Kelsey, I can't tell you

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how much I appreciate you being
here.

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I'm guessing that this is
probably in some of the times

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we're living in now
economically.

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I'm guessing that you're
probably finding the somewhat

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kind of not only disturbing but
fascinating at the same time,

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right?
Well, it is and and I'm not

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necessarily surprised for it but
I continue to be surprised by

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certain things that happen which
It's up how difficult it is to

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anticipate and predict regarding
these things, right?

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So how long have you been
because your you've been a

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financial planner correct?
Right.

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How long have you done that for?
Well, I was a full-service

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financial planner for 14 years
when I retired in 2005.

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But my with respect to finance,
Moments and anything like any

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kind of financial services.
My career is about 50 years old.

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I was involved in the gold and
silver in the 70s.

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I did accounting for five years
before that and there are only

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70, 70 to 75, big high ticket,
limited Partnerships in the 80s

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and worked in a bank and
actually Work with one of the

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wire houses for a while and
then, you know, eventually the

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financial planning.
So I figure when I look back and

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counted it all up.
Yeah, about 50 years.

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Holy cow.
So what Drew you to the field,

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right?
I mean was it just the number

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side of it?
The map.

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I mean what was it that really
Drew you to it?

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I was I was interested in it
from the time.

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I was in college, I could See
that there was potential, I

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thought and it was a subject
that, you know, captivated me, I

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wasn't I wasn't interested in
going out and being an

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accountant.
All I did that for about five

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years, I was more interested in
the gold and silver and the

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economy because I was reading
those books back in the early

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70s and a lot of people won't
recognize the name.

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But Some well and Harry Brown,
who was one of the first people

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to talk about the economy for
this generation and my

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generation.
And I read his books and I got

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started on things.
I was you know involved buying

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bags of silver coins and you
know doing that investments in

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gold and silver and then got
into a professionally as well

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and did that until About 1980.
Wow, holy cow.

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So let me ask you this because
it sounds like you were around

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for the Carter Administration.
Correct.

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Yes.
How does what we're going

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through now?
How does it feel in comparison?

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To what, what you remember
during during Carter's

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Administration with stagflation
and those sorts of things?

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I've done a little bit of
research on this, I think.

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I think overall yeah a lot there
are some similarities but I have

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a tendency to look at it by
looking at the broad picture.

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You know, it's one of the things
you talked about, can't see the

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forest for the trees, it some
people focusing on right now,

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but when I put right now in the
perspective of looking back at

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that period of time, there are
things that are similar.

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But there are things that are
different and I don't think we

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can in Fur that just because we
see certain things happening

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today that it's the same thing
that was going on because the

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effects of inflation, which
we're going to talk about are

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unpredictable.
And so, you know, the effects of

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inflation, certainly that's
there.

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But there's more volatility
because inflation which is

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created by the Federal Reserve
is cumulative and ongoing.

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It doesn't stop and that creates
an element of volatility as well

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as the unpredictability.
Okay?

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So I think this is you brought
up inflation.

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So we're seeing this inflation.
I mean, I hear about it.

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Every time, my poor wife goes to
the grocery store, right?

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She comes back and she's looks
at me and she's like you might

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want to think about the gym more
and eating less just because the

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prices continue to go up and up
and up.

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Is is food really where most
people will see inflation?

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Or are we seeing it in other
sectors?

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That's a good question.
And, and, you know, food and

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energy is where most people are
going to.

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Notice something, the quickest
on the broad, on a broad basis

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because that's day-to-day But a
lot of what we're seeing in

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terms of food and energy prices
has nothing to do with inflation

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and that is confusing people.
And I don't think that that

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confusion is unintentional and
again that gets into other

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spin-offs and stories about
inflation and how it happens.

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But which I know we're going to
get to but the biggest portion

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of gas prices for example, that
we're experiencing today, Day is

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not due to inflation.
It's due to the fact that Russia

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isn't being allowed to ship, its
oil out and sell it because of

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you know, the boycotts and
things.

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And and part of what we're
seeing with respect to food and

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energy to is supply chain
issues, supply chain issues,

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have nothing to do with
inflation.

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Those are economic issues and
they're the result of The forced

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shutdown of the economy, a
couple of years ago.

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And you know, I like to use the
analogy, you shut the water off

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to your house.
You don't turn it on for a while

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and then you turn it on.
You don't just suddenly have the

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same smooth flow coming out of
the Taps.

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It takes a while for that to
happen.

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Plus sometimes there are kinks
in lines and leaks and other

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things that happen.
But what would happen is we

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start, you know, we shut
everything down and then use one

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day say okay go back to work and
do this.

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Well, that's great, but it
doesn't just happen because

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somebody said you can do that
and that's caused a big problem.

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Plus independent Decisions by
laborers workers who say, hey,

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look, I kind of like getting my
checks and not having to do

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anything and you can't control
that see that's those are in it

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right or wrong people are making
those kinds of decisions, we you

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throw all that in the hopper
that has nothing to do with

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inflation.
So we have those with economic

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issues got you.
So so we could see kind of a

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compounding of right because
there is a portion of the higher

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prices overall.
It's a result of inflation but

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that's been ongoing and then it
was Amplified with what happened

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in reaction to the shutdown and
not the spending per se.

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But the money that was created
to facilitate that spending.

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And then you see the effects of
that inflation added to all of

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the supply chain issues.
So if you take the inflation out

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of it completely say the
inflation effects are not a

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factor and you take that
percentage out, we'd still be

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paying $4 a gallon or more for
gasoline just because of the

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supply chain issues, I got you,
I got you so real quick.

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Let's let's do this.
Let's start at a very

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rudimentary level because
honestly, that's Where I need to

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start, how would you define
inflation?

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What is inflation?
All right, I'll we give you the

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short answer first and then I'll
expand on that a little bit

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because there's some flow to it,
that is important in

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understanding it.
The simple straight answer.

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Is that inflation is the
debasement of money by

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government.
Now most people will hear that

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and it'll be like well, okay,
but what does that mean?

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You know, the debasement of
money by government government

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also means central banks, okay,
far as I'm concerned.

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So, you know, we can say that
the debasement of money by

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governments of Central and
central banks government

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databases the money by expanding
the supply of money and credit.

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They do it intentionally.
And they do it continually.

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So that that's what inflation is
and I think when we talk the

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other night I gave you my
example, if we wanted to really

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understand the difference
between that and what everybody

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calls inflation, just think
about pumping up a basketball or

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a blowing up a balloon.
You inflate the object to a

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point where then the Integrity
of the Scan or the balloon is

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compromised and you have a
problem but that's not the

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inflation.
The inflation is the act of

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putting the air into it.
So the inflation is the

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debasement of the money.
That's what inflation is.

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And the responsible party is the
Central Bank, the Federal

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Reserve.
Okay.

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So real quick, I want to go over
this here so just to make sure

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I've Got My Mind wrapped around
this.

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So inflation would be.
Symptoms so, to speak of the

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debasement of the currency.
Correct, it's actually an

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intentional action, the reason
governments and central banks

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inflate the currency and all
governments do it.

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Is because it's profitable for
them.

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Inflation started.
Hundreds of years ago when

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monarchs used, they would
collect their taxes, which did

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that time use coins and they
would clip the coins.

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They punch, I do a little punch
clip on the coins and then they

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melt them down and create new
coins with them.

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So we had coin circulating that
were some had punched clips and

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some didn't, but they tell them,
hey, they're the same.

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You.
So, you know, just use them.

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Well, that was the origination
of inflation.

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00:13:50,400 --> 00:13:54,600
And then you got to substitutes
for real money, paper

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currencies, iou's, that sort of
thing.

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And then it was a matter of just
printing it.

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Now we're at a digital face but
the inflation is the act of

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debasing the money supply by
expanding it, okay?

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00:14:10,200 --> 00:14:13,700
Standing that supply of money
and credit that's inflation

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everything.
Helps are the effects of

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00:14:16,700 --> 00:14:18,300
inflation.
Okay.

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00:14:18,600 --> 00:14:24,500
Now and when you say credit as
well, how does how does a

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government or a central bank?
Free up credit went and is this

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00:14:28,500 --> 00:14:32,900
the kind of credit that we're
talking about where they will

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inject money into the system?
So, you know, businesses and

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00:14:37,500 --> 00:14:40,300
that sort of thing can go get
loans, and my understanding.

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00:14:40,600 --> 00:14:43,800
Yeah, there's there's a couple
things that are happening.

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00:14:44,500 --> 00:14:48,300
The first one, Is to just look
at the the simple ongoing

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00:14:48,300 --> 00:14:53,500
operations of the US government,
they need money, they issue

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00:14:53,500 --> 00:14:56,800
treasury Securities, bonds,
notes and bills.

215
00:14:56,800 --> 00:15:00,700
That's how they get their money.
They borrow it.

216
00:15:00,700 --> 00:15:08,600
But what happens is the Federal
Reserve makes auction, there's

217
00:15:08,600 --> 00:15:15,300
auctions available and whatever
money is received is then there

218
00:15:15,300 --> 00:15:19,200
are Added to that by the Federal
Reserve to make up any

219
00:15:19,200 --> 00:15:22,300
difference in these shortfalls
so that the government is

220
00:15:22,300 --> 00:15:26,500
guaranteed of getting.
Everything it wants.

221
00:15:26,500 --> 00:15:30,400
If it needs the billion dollars,
they issue the treasury

222
00:15:30,400 --> 00:15:34,500
Securities the government.
The treasury is credited in its

223
00:15:34,500 --> 00:15:37,600
account with a billion dollars
by the Federal Reserve.

224
00:15:38,400 --> 00:15:42,800
Now, what happens?
And this is what the breakdown,

225
00:15:42,900 --> 00:15:46,300
people may have, bought treasury
Securities at auction, that

226
00:15:46,300 --> 00:15:51,200
takes money out of circulation
because it's going to the fed or

227
00:15:51,200 --> 00:15:54,500
to the government, but the
treasury, the US government.

228
00:15:54,600 --> 00:15:58,200
Turns right around and spends
that money, putting it back into

229
00:15:58,200 --> 00:16:02,900
circulation, along with the
treasury Securities that it

230
00:16:02,900 --> 00:16:05,400
issued.
So, let's say I had a million

231
00:16:05,400 --> 00:16:08,300
dollars of cash and a by a
million dollars worth of

232
00:16:08,300 --> 00:16:12,300
Treasury bonds.
The million dollars in treasury

233
00:16:12,300 --> 00:16:17,600
bonds, I have are considered
gilt-edged collateral I can do

234
00:16:17,600 --> 00:16:20,400
anything.
I want with those in terms of

235
00:16:20,400 --> 00:16:24,400
buying power, purchasing,
whatever, I need collateral

236
00:16:24,600 --> 00:16:26,100
because they're considered the
best.

237
00:16:26,100 --> 00:16:30,700
There is I didn't hurt myself
financially by buying treasury

238
00:16:30,700 --> 00:16:34,200
Securities and giving up the
cash because they're like cash.

239
00:16:35,000 --> 00:16:38,800
So I have those government has
the cast but the government

240
00:16:38,800 --> 00:16:41,000
spends the cash and puts it.
Back out there.

241
00:16:41,000 --> 00:16:43,800
So when I say expansion of the
supply of money and credit, we

242
00:16:43,800 --> 00:16:48,100
now have a million dollars of
cash back out in circulation as

243
00:16:48,100 --> 00:16:53,300
well as the treasury Securities
that were issued treasury

244
00:16:53,300 --> 00:16:57,100
securities issued.
The way they are, is considered

245
00:16:57,100 --> 00:17:02,100
monetizing the debt, that's what
the government and the FED are

246
00:17:02,100 --> 00:17:04,800
doing in the course of these
auctions.

247
00:17:05,400 --> 00:17:07,900
So the government never worries
about it.

248
00:17:07,900 --> 00:17:10,800
Because when they have to retire
though, Securities.

249
00:17:10,800 --> 00:17:12,900
They just issue more to pay him
off.

250
00:17:13,000 --> 00:17:19,099
They're not really.
And the FED has a guarantees

251
00:17:19,099 --> 00:17:21,400
that the government will always
have its money, which is

252
00:17:21,400 --> 00:17:25,099
something we can talk about when
we talk about the FED, but the

253
00:17:25,099 --> 00:17:27,099
government will never run out of
money.

254
00:17:28,400 --> 00:17:32,900
Not that that's good or right?
They just won't under the system

255
00:17:32,900 --> 00:17:40,000
the way it works right now.
Okay, so in forgive me because I

256
00:17:40,000 --> 00:17:43,000
know I must sound.
I must just sound silly asking

257
00:17:43,000 --> 00:17:44,900
some of these questions.
I don't know.

258
00:17:45,300 --> 00:17:51,400
So they got the money, then they
issue it in bonds, somebody buys

259
00:17:51,400 --> 00:17:57,300
it and then The Central Bank
turns, right around and prints,

260
00:17:57,300 --> 00:18:03,100
the replacement money for the
money, that was just kind of

261
00:18:03,100 --> 00:18:07,200
quote transferred.
Isn't that a, my understanding

262
00:18:07,200 --> 00:18:10,900
that portion correctly?
That's not exactly the way it

263
00:18:10,900 --> 00:18:11,600
works.
Let me get.

264
00:18:11,600 --> 00:18:15,100
Let me give you a couple of the
better example, okay.

265
00:18:15,300 --> 00:18:19,200
They first that.
There's an announcement.

266
00:18:19,200 --> 00:18:23,700
There's going to be a certain
amount of Treasury Securities up

267
00:18:23,900 --> 00:18:29,400
and on an auction basis.
All of them are subscribed.

268
00:18:30,000 --> 00:18:35,400
Okay, so the FED doesn't
necessarily other than for

269
00:18:35,400 --> 00:18:40,000
bookkeeping purposes.
The feds not involved, but the

270
00:18:40,000 --> 00:18:42,400
government's going to get that
money, that takes that money out

271
00:18:42,400 --> 00:18:45,200
of circulation.
So it's a reduction in the money

272
00:18:45,200 --> 00:18:47,000
supply.
If you look at the cash that

273
00:18:47,000 --> 00:18:51,600
went to the treasury, but since
the treasury government, turns

274
00:18:51,600 --> 00:18:54,200
right around and spends that
money, it goes back out in the

275
00:18:54,200 --> 00:18:59,300
economy and circulation again in
The Securities that were sold,

276
00:18:59,400 --> 00:19:01,100
the treasury bonds that were
sold.

277
00:19:01,200 --> 00:19:07,500
So now in circulation in the
economy are treasury, bonds and

278
00:19:07,500 --> 00:19:11,800
cash.
So I consider the credit because

279
00:19:11,800 --> 00:19:17,000
that's the way the FED increases
the money supply is mostly by

280
00:19:17,100 --> 00:19:19,500
credit.
Now, if you remember back in

281
00:19:19,500 --> 00:19:25,500
2008, that's see that particular
example is ordinary operations.

282
00:19:25,700 --> 00:19:27,300
Let's go to something
extraordinary.

283
00:19:27,400 --> 00:19:31,000
Nari like the credit collapse in
2008.

284
00:19:31,100 --> 00:19:39,900
What the FED did there is two
things, one they created credit.

285
00:19:41,000 --> 00:19:45,100
By simply making it available at
an attractive rate.

286
00:19:45,800 --> 00:19:52,000
Where do they get the money?
They just simply said it's here.

287
00:19:52,300 --> 00:19:57,200
All right, here's the money.
You can borrow it.

288
00:19:57,200 --> 00:20:00,600
And this is the rate and they
made it attractive for member

289
00:20:00,600 --> 00:20:03,500
banks to borrow.
That way, there were others that

290
00:20:03,500 --> 00:20:10,000
were given the opportunities and
they had to fund the government

291
00:20:10,000 --> 00:20:15,200
spending CB government Congress
authorized, you know, over a

292
00:20:15,208 --> 00:20:18,000
trillion dollars of immediate
help at that time.

293
00:20:18,700 --> 00:20:23,800
As far as the what was going on
well where does that come from

294
00:20:24,800 --> 00:20:30,600
the FED bought a lot of that and
also purchased on the open

295
00:20:30,600 --> 00:20:34,600
market which they're always
doing in order to support.

296
00:20:35,900 --> 00:20:39,800
Bond prices, the Federal
Reserve, and its primary dealers

297
00:20:39,800 --> 00:20:42,600
were involved and purchasing
bonds.

298
00:20:42,900 --> 00:20:47,900
What that did is keep the bond
market from collapsing, as well

299
00:20:47,900 --> 00:20:52,500
as keep interest rates down.
Where did they get the money?

300
00:20:52,500 --> 00:20:55,900
Well, they have the authority to
create money.

301
00:20:56,500 --> 00:20:59,100
The FED is licensed to create
money.

302
00:21:00,300 --> 00:21:02,400
See we say well, where did they
get it?

303
00:21:02,400 --> 00:21:05,800
Well, that's how money happens.
He didn't just come into

304
00:21:05,800 --> 00:21:08,800
existence existence, unless
you're using real money.

305
00:21:08,800 --> 00:21:12,900
That's accepted like gold and
silver have been historically.

306
00:21:13,000 --> 00:21:18,700
Otherwise the FED is simply
making offsetting debit and

307
00:21:18,700 --> 00:21:23,600
credit entries, digital format
and that's creating the money

308
00:21:23,600 --> 00:21:26,400
and credit.
So it's expanding it.

309
00:21:26,600 --> 00:21:30,800
So when are and you can follow
and watch it, See how the money

310
00:21:30,800 --> 00:21:34,300
supply continues to grow because
the fat even puts it out there

311
00:21:34,300 --> 00:21:38,200
so people can see that's
inflation.

312
00:21:38,900 --> 00:21:43,500
It continual increase in the
supply of money and credit is

313
00:21:43,500 --> 00:21:47,200
inflation.
Everything else are effects of

314
00:21:47,200 --> 00:21:51,700
inflation.
Okay, so with this idea of

315
00:21:51,700 --> 00:21:56,400
filling, the, the basketball up
or whatever twofold, let's say

316
00:21:56,400 --> 00:22:00,300
to the point that the, that the
structure is compromised, right?

317
00:22:00,700 --> 00:22:07,000
How is it that they maintain a
balance there, right?

318
00:22:07,000 --> 00:22:12,500
Because I don't know why it
hasn't popped because I see what

319
00:22:12,500 --> 00:22:15,100
you're saying with the expanding
money supply, right?

320
00:22:15,300 --> 00:22:20,700
So, at some point, if that ball
was to burst, so to speak, that

321
00:22:20,700 --> 00:22:23,700
would essentially make our
dollar worthless.

322
00:22:24,600 --> 00:22:28,200
Great gray.
So what are they doing to

323
00:22:28,200 --> 00:22:30,800
balance that out, right?
Because I'm assuming it's some

324
00:22:30,800 --> 00:22:32,800
point.
What's the mechanism for

325
00:22:32,800 --> 00:22:37,500
bringing the cash back in right
to take it out of circulation?

326
00:22:38,100 --> 00:22:42,200
The Federal Reserve is always
involved in the secondary

327
00:22:42,200 --> 00:22:44,800
markets.
They are always buying and

328
00:22:44,800 --> 00:22:50,600
selling securities and they do
that with the intention of

329
00:22:50,600 --> 00:22:55,100
moderating the effects, which
they're trying to figure out

330
00:22:55,100 --> 00:22:58,600
just like everyone else.
You can't predict a they're

331
00:22:58,600 --> 00:23:03,000
volatile and when there's a
problem, all they can do is

332
00:23:03,000 --> 00:23:07,300
react to it and that continual
reaction.

333
00:23:08,100 --> 00:23:12,100
Its own effects.
So they're in the markets buying

334
00:23:12,100 --> 00:23:16,200
and selling securities and
that's how they moderate it.

335
00:23:16,300 --> 00:23:19,700
They're trying to get engage on
things but they're always

336
00:23:19,700 --> 00:23:27,200
involved, either withdrawing,
funds, by selling securities or

337
00:23:27,500 --> 00:23:31,100
they're buying bonds and
supporting their prices trying

338
00:23:31,100 --> 00:23:39,800
to keep interest rates down.
Okay, so when we see that the

339
00:23:39,800 --> 00:23:43,100
the Central Bank raised the
interest rates, right?

340
00:23:43,100 --> 00:23:45,000
They've done.
I think they've done to now you

341
00:23:45,000 --> 00:23:47,200
probably know better than I two
or three.

342
00:23:48,300 --> 00:23:51,900
Is that an effort in raising
those interest rates to draw

343
00:23:51,900 --> 00:23:54,100
that liquidity back out of the
system?

344
00:23:54,900 --> 00:23:57,100
Yes.
Okay, what it does.

345
00:23:57,100 --> 00:24:01,300
It's like, you know, a good
example is like spiking the

346
00:24:01,300 --> 00:24:04,800
punch.
Once you spiked it, what if you

347
00:24:04,800 --> 00:24:08,000
don't put as much in the next
time or you don't, you know,

348
00:24:08,000 --> 00:24:14,600
that has an effect on our people
don't drink as much punch you.

349
00:24:14,600 --> 00:24:17,400
You always have cause and effect
here.

350
00:24:17,500 --> 00:24:22,700
So the FED doesn't really
control interest rates.

351
00:24:22,700 --> 00:24:29,800
They try to force interest rates
to a certain direction and they

352
00:24:29,800 --> 00:24:34,300
can do have control over the
discount rate and the FED funds

353
00:24:34,300 --> 00:24:39,400
rate, the discount rate is the
rate that is charged to member

354
00:24:39,400 --> 00:24:44,000
banks to borrow overnight from
each other, okay?

355
00:24:44,000 --> 00:24:47,900
No now if it's okay, I'd like to
stop there for just Second

356
00:24:47,900 --> 00:24:51,700
because I read something gosh, I
want to say a couple months ago

357
00:24:52,100 --> 00:24:55,700
about the discount window just
that thing where Banks would

358
00:24:55,700 --> 00:25:00,300
basically go in.
Take out a loan and just meet

359
00:25:00,300 --> 00:25:03,200
their expenditures overnight.
All right.

360
00:25:03,300 --> 00:25:05,400
I heard that that discount
window.

361
00:25:05,700 --> 00:25:10,700
The withdrawals at that discount
window had grown exponentially.

362
00:25:10,700 --> 00:25:15,700
Is that true?
You may have I don't I don't

363
00:25:15,700 --> 00:25:19,200
track it all continuously, but
there you do.

364
00:25:19,200 --> 00:25:22,800
You I'll tell you where we will
see that.

365
00:25:22,800 --> 00:25:26,000
Clearly what you're talking
about is you remember a couple

366
00:25:26,000 --> 00:25:30,100
of years ago, all the questions
and concerns about read, Repose

367
00:25:30,100 --> 00:25:33,500
and overnight agreements.
In the money market.

368
00:25:33,600 --> 00:25:39,500
There was a lot of concern,
they're fed fed funds and

369
00:25:39,500 --> 00:25:46,400
discount rate are Banks have the
ability to lend money based on

370
00:25:47,200 --> 00:25:51,100
what's been deposited in their
bank and every night they have

371
00:25:51,100 --> 00:25:56,200
to balance that they have to be
within a certain ratio in order

372
00:25:56,200 --> 00:25:58,600
to do that they borrow from each
other.

373
00:26:00,500 --> 00:26:04,000
That's, that's actually the FED
funds rate and I think I may

374
00:26:04,000 --> 00:26:06,600
have reverse that when I said
it, but that's the FED funds

375
00:26:06,600 --> 00:26:09,500
rate, and the discount rate is
what it costs.

376
00:26:09,500 --> 00:26:12,000
Member banks to borrow directly
from the fed.

377
00:26:12,600 --> 00:26:17,700
That's the extent of interest
rate control by the FED other

378
00:26:17,700 --> 00:26:23,000
interest rates are set in the
marketplace by people buying and

379
00:26:23,000 --> 00:26:28,200
selling bonds government bonds,
treasury Securities, corporate

380
00:26:28,200 --> 00:26:32,700
bonds, whatever.
And also, as those interest

381
00:26:32,700 --> 00:26:36,700
rates change, according to
people's desire to hold certain

382
00:26:36,700 --> 00:26:42,200
bonds or not enough interest
weight, whatever, then interest

383
00:26:42,200 --> 00:26:49,300
rates themselves, rise or fall,
depending on that when 2008

384
00:26:49,300 --> 00:26:53,000
happened, it was a collapse in
the credit markets, and that's

385
00:26:53,000 --> 00:26:57,000
when the feds step in and
started buying Securities to

386
00:26:57,000 --> 00:27:00,400
hold on their books, which was
an experiment because they I'd

387
00:27:00,400 --> 00:27:04,300
never done it to the degree they
did, and they went well beyond

388
00:27:04,300 --> 00:27:07,600
the treasury market, and they
also bought corporates in junk

389
00:27:07,600 --> 00:27:12,300
bonds.
So, and that's what supported

390
00:27:12,300 --> 00:27:16,100
the market.
But, and they did it because

391
00:27:16,100 --> 00:27:19,100
there wasn't enough demand to
buy those bonds.

392
00:27:19,700 --> 00:27:23,500
It was, it was a wholesale
dumping of bonds.

393
00:27:23,600 --> 00:27:26,500
And that, of course, drove
interest rates up dramatically

394
00:27:26,500 --> 00:27:29,400
until the FED stepped in and
started buying more.

395
00:27:31,800 --> 00:27:34,300
Doesn't sound like it was a good
idea necessarily.

396
00:27:34,800 --> 00:27:40,600
Well it is if you're trying to
keep things from collapsing and

397
00:27:40,600 --> 00:27:43,600
that's really where most of the
efforts of the Federal Reserve,

398
00:27:43,600 --> 00:27:47,500
our aim today, they are reacting
to the effects of their own

399
00:27:47,500 --> 00:27:50,600
inflation, which has been
happening for 100 years.

400
00:27:51,400 --> 00:27:56,400
And in the meantime, they're
trying to massage all of this.

401
00:27:56,500 --> 00:27:59,600
So they're really more or less
putting out fires.

402
00:28:00,200 --> 00:28:04,500
Trying to keep things from
completely collapsing.

403
00:28:05,800 --> 00:28:10,000
And and so I think that's where
you start to look at and say,

404
00:28:10,000 --> 00:28:14,200
okay, we're seeing this more and
more often we're seeing the

405
00:28:14,200 --> 00:28:19,400
volatility increase and at some
point they won't be able to

406
00:28:19,400 --> 00:28:22,700
control it, okay?
And now that was where I was

407
00:28:22,700 --> 00:28:26,700
going next is, at some point.
There's just too much out there,

408
00:28:26,700 --> 00:28:28,700
right?
There's, there's nothing you can

409
00:28:28,700 --> 00:28:31,200
do in that and that's where you
would see.

410
00:28:32,100 --> 00:28:36,000
And again, correct me if I'm
wrong either hyperinflation or

411
00:28:36,100 --> 00:28:39,100
even hyper deflation.
Correct right.

412
00:28:39,800 --> 00:28:45,600
You've got a world economy that
depends on cheap and easy

413
00:28:45,600 --> 00:28:49,300
credit.
Without it.

414
00:28:49,700 --> 00:28:54,600
There is no economic activity.
Everybody depends on credit.

415
00:28:55,800 --> 00:29:01,600
We see it with cars, we see it
with houses corporations for

416
00:29:01,600 --> 00:29:06,500
expansion purposes.
Economic activity is funded by

417
00:29:06,500 --> 00:29:10,900
cheap and easy credit.
If it's there and they've been

418
00:29:11,100 --> 00:29:14,800
they've really been sort of
lured into that because we're

419
00:29:14,800 --> 00:29:20,400
not dealing with things you know
we're really looked at it.

420
00:29:20,400 --> 00:29:24,300
It's like you cannot you
overindulge in alcohol and drugs

421
00:29:24,700 --> 00:29:29,000
you get Used to it and then
something happens and goes wrong

422
00:29:29,000 --> 00:29:31,000
either.
Your system can't stand it

423
00:29:31,000 --> 00:29:37,500
anymore or you don't want to
experience the effects of trying

424
00:29:37,500 --> 00:29:41,800
to get clean.
So somewhere along the way the

425
00:29:41,800 --> 00:29:45,400
piper has to be paid and it's
can they keep it going?

426
00:29:45,400 --> 00:29:49,200
Long enough to pass Kick, the
Can down the road a little

427
00:29:49,200 --> 00:29:54,400
further, which they've been
doing most of this century So

428
00:29:54,400 --> 00:29:59,800
are we is America the only
country that has done this or

429
00:29:59,800 --> 00:30:04,600
are there other Western Nations
or other nations period that

430
00:30:04,600 --> 00:30:07,100
have done?
The same thing we have?

431
00:30:07,100 --> 00:30:11,400
Now we have, we are an era
called, modern Central Banking.

432
00:30:11,400 --> 00:30:15,700
So other nations, they're all
doing pretty much the same

433
00:30:15,700 --> 00:30:18,900
thing.
What makes the US the focal

434
00:30:18,900 --> 00:30:24,600
point is that the u.s. dollar is
the world's Currency.

435
00:30:24,600 --> 00:30:28,100
So there's a status and there's
more dollars out there than

436
00:30:28,100 --> 00:30:31,300
anything else.
So it's more critical and

437
00:30:31,300 --> 00:30:36,300
everybody sort of feeds off the
dollar with that's how people

438
00:30:36,300 --> 00:30:38,900
make decisions.
They look at their own currency,

439
00:30:38,900 --> 00:30:41,300
the out of that currency, fare
against the dollar.

440
00:30:41,300 --> 00:30:44,100
How is the dollar faring against
other currencies?

441
00:30:44,600 --> 00:30:48,100
What's going on?
And so as long as that's the

442
00:30:48,100 --> 00:30:52,600
case, then everybody's going to
look at the dollar for your

443
00:30:52,600 --> 00:30:54,600
Clues.
In indicators.

444
00:30:55,100 --> 00:31:00,200
Now, that's this against, this
may be too silly of a question,

445
00:31:00,200 --> 00:31:05,600
but at some point, this is all
based on this idea that everyone

446
00:31:05,600 --> 00:31:08,500
agrees that the dollar is worth
something, right?

447
00:31:08,500 --> 00:31:12,500
And in that case, that in that
scenario, you just explained is

448
00:31:12,500 --> 00:31:14,400
that the rest of the world is
basically just saying?

449
00:31:14,400 --> 00:31:17,600
Yeah, I'm sure America's good
for it, right?

450
00:31:18,300 --> 00:31:23,100
So has have we seen any sort of
activity, in which another

451
00:31:23,100 --> 00:31:25,100
country has Called into
question.

452
00:31:25,900 --> 00:31:32,500
Our, you know, is the dollar
really Really worth the dollar

453
00:31:32,500 --> 00:31:36,300
so to speak.
There's no question people have

454
00:31:36,300 --> 00:31:45,200
called that particular point up
many times recently over the

455
00:31:45,200 --> 00:31:49,200
past couple of decades and
before.

456
00:31:49,800 --> 00:31:53,800
But what are you going to
replace the dollar with?

457
00:31:53,900 --> 00:31:58,700
I mean, when people people talk
about it and say okay let's

458
00:31:58,700 --> 00:32:03,600
agree, the Dalai me.
The dollar is worth one penny

459
00:32:03,600 --> 00:32:07,100
compared to a dollar, 100 years
ago, and purchasing power.

460
00:32:07,400 --> 00:32:15,600
So the Federal Reserve has Lost
night as caused a loss of 99% of

461
00:32:15,600 --> 00:32:18,500
the dollars value.
And we can say, all right,

462
00:32:18,500 --> 00:32:22,100
that's fine.
The problem is that nothing else

463
00:32:22,100 --> 00:32:31,700
out there has the status and
ability to be a substitute for

464
00:32:31,700 --> 00:32:35,500
the dollar.
And and until there's something

465
00:32:35,500 --> 00:32:39,000
that could do that, or that
people are willing to accept on

466
00:32:39,000 --> 00:32:42,900
a worldwide basis.
We're just probably going to

467
00:32:42,900 --> 00:32:47,400
continue with a dollar that
continues to deteriorate as long

468
00:32:47,400 --> 00:32:51,500
as other countries.
I think there's less reason to

469
00:32:51,500 --> 00:32:57,700
trust currencies, like, the
Chinese wand, which is the talk

470
00:32:57,700 --> 00:33:02,300
about the Russian Ruble, every
those and other countries, as

471
00:33:02,300 --> 00:33:08,600
much as they may have any degree
of justification for criticizing

472
00:33:08,600 --> 00:33:11,000
the dollar, their own
currencies.

473
00:33:12,200 --> 00:33:15,100
Don't come close to being a
potential substitute.

474
00:33:17,500 --> 00:33:22,200
So is there ever a possibility
of pagan back to a commodity

475
00:33:22,200 --> 00:33:27,100
like oil or something like that?
There's always a possibility.

476
00:33:27,900 --> 00:33:33,700
The problem is And and I would
say, you know, you can Peg it to

477
00:33:33,700 --> 00:33:37,700
oil, but oil is a commodity.
It can't really be used as money

478
00:33:37,700 --> 00:33:42,700
because who's gonna be able to
do something with a barrel of

479
00:33:42,700 --> 00:33:43,900
oil.
You know, that's one of the

480
00:33:43,900 --> 00:33:49,800
reasons oil is not really money
and pegging something to

481
00:33:49,800 --> 00:33:53,100
anything at all.
Whether it's gold or money

482
00:33:53,800 --> 00:33:58,400
saying it's backed by these
things, isn't the issue.

483
00:33:58,400 --> 00:34:05,700
The issue is convertibility.
So I can tell you that, okay?

484
00:34:05,700 --> 00:34:09,100
We have so many dollars in
circulation and this is what

485
00:34:09,100 --> 00:34:13,100
happened when the dollar was
fixed to gold at a certain rate,

486
00:34:13,699 --> 00:34:17,900
there is only supposed to be x
amount of dollars relative to

487
00:34:17,900 --> 00:34:23,199
that to come up with that ratio.
So as the US government continue

488
00:34:23,199 --> 00:34:29,000
to make more dollars in credit
available, over the decades, it

489
00:34:29,000 --> 00:34:33,600
got to the point where if People
wanted to actually have the

490
00:34:33,600 --> 00:34:37,000
goal.
They were entitled to Which is

491
00:34:37,000 --> 00:34:40,000
says on there.
There wasn't enough gold to

492
00:34:40,000 --> 00:34:44,000
satisfy the demands because
they'd issue too many dollars.

493
00:34:45,300 --> 00:34:49,800
And that's the problem.
When you talk about backing a

494
00:34:49,800 --> 00:34:53,600
currency you can back it to
anything you want.

495
00:34:53,600 --> 00:34:57,800
But if it's not convertible to
that other item, it does me no

496
00:34:57,800 --> 00:35:01,800
good at all.
I'm just trusting you to do what

497
00:35:01,800 --> 00:35:04,400
you said.
So it all comes down to what

498
00:35:04,400 --> 00:35:07,200
people are willing to believe
and accept.

499
00:35:07,900 --> 00:35:10,700
Okay, all right, and that's
that's kind of where I was going

500
00:35:10,700 --> 00:35:14,400
with that.
Now, let's, let's talk about

501
00:35:15,500 --> 00:35:18,700
When when did we start?
This idea of just expanding the

502
00:35:18,707 --> 00:35:23,000
money supply for because for and
again, correct me if I'm wrong

503
00:35:23,200 --> 00:35:27,700
for about the first 100 Years of
our are you know National

504
00:35:27,700 --> 00:35:30,800
existence, it was pegged to Gold
correct.

505
00:35:30,800 --> 00:35:35,000
So the idea being you could take
a dollar into the bank and get a

506
00:35:35,000 --> 00:35:38,600
dollars worth of gold, right?
That is correct.

507
00:35:38,600 --> 00:35:43,000
Whose idea was it to, to begin
to inflate the money supply.

508
00:35:43,000 --> 00:35:47,700
Where does that come from?
There was an examples of

509
00:35:47,700 --> 00:35:54,100
inflation that it occurred over
that first century, one of the,

510
00:35:54,100 --> 00:35:58,400
the without getting into a lot
of detail, one of the worst

511
00:35:58,400 --> 00:36:08,900
cases was during the Civil War
and even the South tried to

512
00:36:08,900 --> 00:36:12,700
claim that their currency had a
value and talked about gold.

513
00:36:12,700 --> 00:36:15,300
The problem is, there were too
many Have them out there and

514
00:36:15,300 --> 00:36:16,700
everybody knew they were
worthless.

515
00:36:16,700 --> 00:36:20,400
So but the inflation is always
been an issue.

516
00:36:20,400 --> 00:36:23,000
And that's why we talked about
the clipping of coins, all

517
00:36:23,000 --> 00:36:25,700
governments inflate, and
destroy, their currencies.

518
00:36:26,100 --> 00:36:32,300
That is the way it works.
And we, you had an example with

519
00:36:32,300 --> 00:36:37,600
France in the late 18th century
where they issued a synapse,

520
00:36:37,600 --> 00:36:41,900
which are simply paper assets,
supposedly backed by real

521
00:36:41,900 --> 00:36:46,600
estate.
That was publicly owned and they

522
00:36:46,800 --> 00:36:52,900
kept issuing too much and
finally you know, collapsed had

523
00:36:52,900 --> 00:36:56,900
a hyperinflation and brought
about a revolution.

524
00:36:57,300 --> 00:37:00,700
You had an example with the
hyperinflation and Germany are

525
00:37:01,300 --> 00:37:05,500
the Weimar Republic trying to
recover from World War one and

526
00:37:05,500 --> 00:37:07,700
saw that, they would print their
way out of it.

527
00:37:07,900 --> 00:37:10,000
And that led to the
hyperinflation that we hear

528
00:37:10,000 --> 00:37:12,400
talked about in Germany and the
20s.

529
00:37:13,900 --> 00:37:18,400
So, inflation has been with us
all along as far as the u.s. is

530
00:37:18,400 --> 00:37:21,000
concerned.
I would say the concentrated

531
00:37:21,000 --> 00:37:25,800
effort to include inflation as
policy.

532
00:37:27,500 --> 00:37:31,400
Happened with the origin of the
Federal Reserve in 1913.

533
00:37:33,000 --> 00:37:40,900
Okay, so I want to stick with
with, with this part here for

534
00:37:40,900 --> 00:37:44,000
just a few more minutes to make
sure that that I'm clear on it.

535
00:37:45,600 --> 00:37:48,200
So this is something that had
been around for a while, right?

536
00:37:48,200 --> 00:37:52,400
It seems like every nation.
It almost seems like a trap that

537
00:37:52,400 --> 00:37:55,100
Nations just can't avoid getting
into.

538
00:37:55,100 --> 00:37:58,200
Is that wood?
Is that a fair assessment?

539
00:37:58,500 --> 00:38:00,700
It's true.
I mean think of your own

540
00:38:00,700 --> 00:38:03,100
individual situation is that
yourself man.

541
00:38:03,100 --> 00:38:09,700
If I could just Prince the money
or come up with something

542
00:38:10,600 --> 00:38:13,100
somewhere that people would
take?

543
00:38:13,400 --> 00:38:15,200
Well, the government is no
different.

544
00:38:15,300 --> 00:38:17,800
I mean, they have their
objectives and they have their

545
00:38:17,800 --> 00:38:20,300
desires and they know what the
or a king.

546
00:38:20,400 --> 00:38:23,500
You know, we were originally
were talking about Kings ruling

547
00:38:23,500 --> 00:38:26,700
monarchs and with the clipping
of coins.

548
00:38:27,400 --> 00:38:31,100
So, whatever the form of
government is they have their

549
00:38:31,100 --> 00:38:35,700
intentions, their desires, their
motivations, and they're

550
00:38:35,700 --> 00:38:40,300
spending, and they have to fund
that and the only way they can

551
00:38:40,300 --> 00:38:47,500
fund it, I'm actually not the
only way but the way they

552
00:38:47,500 --> 00:38:51,100
usually resort to funding, it is
because their appetites for

553
00:38:51,100 --> 00:38:55,300
spending are greater than the
money that's available is to

554
00:38:55,300 --> 00:38:58,100
create inflation.
So you clip the coins is more

555
00:38:58,100 --> 00:39:02,600
money on in circulation, you
draw it back in and taxes and

556
00:39:02,600 --> 00:39:07,300
continually to recycle it, but
it's a greater amount. and so

557
00:39:07,300 --> 00:39:10,200
then you go to the paper, you do
the same thing, there's a

558
00:39:10,200 --> 00:39:16,100
conscious Stepford, the
intention at least as far as the

559
00:39:16,100 --> 00:39:23,400
Federal Reserve is concerned, is
that doing this They know it's

560
00:39:23,400 --> 00:39:28,600
part of the system.
And what it does is by being

561
00:39:28,600 --> 00:39:31,800
able to continually expand the
money supply, they have the

562
00:39:31,800 --> 00:39:37,200
license to create the money,
this allows them to lend it all

563
00:39:37,200 --> 00:39:41,800
the member banks.
Lend the money and collect

564
00:39:41,800 --> 00:39:44,800
interest.
If you had a license to create

565
00:39:44,800 --> 00:39:50,800
the money that everybody you
who's and so, you know, you

566
00:39:50,800 --> 00:39:53,200
would be making money.
And that's what that's what the

567
00:39:53,200 --> 00:39:56,600
banks and the Federal Reserve is
like a Bankers Bank.

568
00:39:56,600 --> 00:40:00,300
It provides a network and an
environment that allows the

569
00:40:00,300 --> 00:40:06,500
member banks.
To create money, lend money and

570
00:40:06,500 --> 00:40:09,700
collect the interest.
That's the purpose in origin of

571
00:40:09,700 --> 00:40:11,900
the Central Bank.
Okay.

572
00:40:12,600 --> 00:40:17,700
So real quick, I know that
there's been some talk about the

573
00:40:17,700 --> 00:40:21,200
numbers being doctored.
When it comes to the inflation,

574
00:40:21,200 --> 00:40:26,000
we currently have now, do you
know anything about that at?

575
00:40:26,000 --> 00:40:29,300
What are, you know, what's the
inflation rate right now?

576
00:40:29,300 --> 00:40:31,600
Compared to what it was in?
The 70s is high.

577
00:40:31,700 --> 00:40:32,800
Fire.
Is it lower?

578
00:40:33,500 --> 00:40:35,300
It slower.
Okay.

579
00:40:35,800 --> 00:40:40,100
And and it and it's lower on a
nominal basis, but it's also

580
00:40:40,100 --> 00:40:43,200
lower on an inflation-adjusted
basis.

581
00:40:43,200 --> 00:40:46,700
And other words, if we were
looking at 10% inflation today

582
00:40:46,700 --> 00:40:52,900
versus 10 percent inflation, 40
years ago, It's not that bad

583
00:40:54,400 --> 00:40:57,300
we're not even halfway to that.
We're getting up five, six

584
00:40:57,300 --> 00:41:02,700
seven, you know, maybe an eight
percent annual rate but I don't

585
00:41:02,700 --> 00:41:06,000
think we're seeing anything
comparable to what was taking

586
00:41:06,000 --> 00:41:12,900
place 40 years ago.
Okay, I think the reason it's

587
00:41:12,900 --> 00:41:18,300
got people's attention has more
to do with the fact that what

588
00:41:18,300 --> 00:41:22,400
they are used to was Was not a
problem.

589
00:41:23,500 --> 00:41:28,400
And suddenly, oh, wait a second,
you know what happened to the

590
00:41:28,400 --> 00:41:36,000
1.3 6%, annual inflation rate,
they call it in 2019 or 2020?

591
00:41:37,300 --> 00:41:43,100
Well sure, when you suddenly see
the rate, jump on an annual

592
00:41:43,100 --> 00:41:48,000
basis to six or seven or eight
percent after a 1%, or us a

593
00:41:48,000 --> 00:41:52,600
period of two or three decades
of lower than usual, rates of

594
00:41:52,700 --> 00:41:55,700
Malaysian, that's going to cause
a problem.

595
00:41:55,700 --> 00:41:58,900
People are used to something.
They remember what it was like

596
00:41:58,900 --> 00:42:02,000
recently, and now they're paying
more and that gets their

597
00:42:02,000 --> 00:42:04,200
attention.
Are we?

598
00:42:04,200 --> 00:42:08,100
And as bad as shape?
Well, we're probably in worse

599
00:42:08,100 --> 00:42:11,300
shape if we look at the
cumulative effects of everything

600
00:42:11,300 --> 00:42:15,400
and where we are.
But in terms of, in the effects

601
00:42:15,400 --> 00:42:19,500
of inflation themselves, I don't
think there is bad and not

602
00:42:19,500 --> 00:42:24,400
nearly as bad as they were in
the 80s and and they're also

603
00:42:24,400 --> 00:42:28,600
more, an indication another
indicator that things are

604
00:42:28,600 --> 00:42:34,300
slowing down because economic
activity, I wrote an article

605
00:42:34,300 --> 00:42:40,000
about this a year or two ago if
you go back and look on an

606
00:42:40,000 --> 00:42:46,300
inflation-adjusted basis,
everything peaked in 1980, Ever,

607
00:42:46,300 --> 00:42:51,700
since then, it's downhill.
So all of the efforts to inflate

608
00:42:51,700 --> 00:42:57,000
and create this additional money
and credit and keep the price

609
00:42:57,000 --> 00:43:02,300
levels up.
Is not sustaining or encouraging

610
00:43:03,000 --> 00:43:05,800
economic activity, the way it's
supposed to.

611
00:43:06,300 --> 00:43:10,500
So it's like a drug addict.
You first time, you have the

612
00:43:10,500 --> 00:43:16,700
first fix is great.
You have your withdrawal aside,

613
00:43:16,700 --> 00:43:18,800
I don't feel really good.
I want to do it again.

614
00:43:19,900 --> 00:43:22,200
You go out and you do it again
the next time.

615
00:43:23,400 --> 00:43:27,600
You don't get the same impact?
Stay well, I need a little more,

616
00:43:28,500 --> 00:43:30,800
so useful more.
So you lose the.

617
00:43:30,800 --> 00:43:35,200
So inflation works that way.
Plus you really don't know how

618
00:43:35,200 --> 00:43:39,900
you're going to respond.
And that's the unknown part and

619
00:43:39,900 --> 00:43:42,800
it gets a little more.
Volatile, you increase the

620
00:43:42,800 --> 00:43:47,800
dosage, you increase the
frequency, you try to avoid the

621
00:43:47,800 --> 00:43:51,600
downers and the withdrawal
possibilities.

622
00:43:52,100 --> 00:43:55,900
So, In terms of danger zones,
where right there?

623
00:43:56,600 --> 00:44:00,900
In terms of what's happening
with inflation, it's not the

624
00:44:00,900 --> 00:44:05,800
problem that people are saying
it is because it really isn't as

625
00:44:05,800 --> 00:44:08,600
bad.
Okay.

626
00:44:10,000 --> 00:44:13,200
All right, that that kind of
answers that question there.

627
00:44:13,200 --> 00:44:16,700
And I do want to return to that
at some point when we, when we

628
00:44:16,700 --> 00:44:18,900
get down the road here in this
discussion a little more.

629
00:44:19,600 --> 00:44:22,400
But let's let's talk about the
FED for a second.

630
00:44:22,400 --> 00:44:27,200
One, was the FED created.
I think you said 1913 1913 and

631
00:44:27,200 --> 00:44:29,900
what was the impetus for that?
Was that something that the

632
00:44:29,900 --> 00:44:33,900
government looked at, you know,
existing bankers and said hey we

633
00:44:33,900 --> 00:44:35,800
want you guys to form a central
bank?

634
00:44:36,700 --> 00:44:44,300
No not exactly the The Federal
Reserve a central bank is

635
00:44:44,400 --> 00:44:48,800
actually another name for a
National Bank and the United

636
00:44:48,800 --> 00:44:51,900
States had experience invented
with National Banks before.

637
00:44:52,300 --> 00:44:55,900
And most people were convinced
they didn't want.

638
00:44:57,300 --> 00:45:02,900
So, and you had a period of time
after Andrew Jackson up until

639
00:45:04,400 --> 00:45:09,300
the Federal Reserve, where there
was no National Bank now, This

640
00:45:09,300 --> 00:45:13,800
is the where it gets a little
sticky because some people don't

641
00:45:13,800 --> 00:45:18,000
want to believe it.
Some people do believe it, some

642
00:45:18,000 --> 00:45:22,500
would say, well if he's probably
some credibility to the theory

643
00:45:22,800 --> 00:45:25,700
and there is some historical
evidence, on the other hand

644
00:45:25,700 --> 00:45:32,200
doesn't make any difference and
that involves conspiracy There

645
00:45:32,200 --> 00:45:36,300
is, no, I don't think there's
any question that there were a

646
00:45:36,300 --> 00:45:44,300
group of very secretive meeting,
a group of individuals who kept

647
00:45:44,300 --> 00:45:51,000
some meetings, very secret.
And that there were concerted

648
00:45:51,000 --> 00:45:56,300
efforts to bring about the
Federal Reserve and it was

649
00:45:56,300 --> 00:46:01,100
called the Federal Reserve in
order to avoid idea that it was

650
00:46:01,100 --> 00:46:04,500
a national bank.
And also it wasn't referred to

651
00:46:04,500 --> 00:46:07,300
as a Federal Reserve Bank.
It was for a to as the Federal

652
00:46:07,300 --> 00:46:10,800
Reserve because people didn't
want to hear Bank on the end of

653
00:46:10,800 --> 00:46:13,600
it.
So you had a population who was

654
00:46:14,100 --> 00:46:18,600
concerned about it but you also
had legislators congressman who

655
00:46:18,600 --> 00:46:21,500
said we don't want a national
bank.

656
00:46:22,000 --> 00:46:26,100
So those who wanted this As
we're private individuals,

657
00:46:26,100 --> 00:46:32,100
although some of them were
politicians who had affiliations

658
00:46:32,100 --> 00:46:36,700
with bankers and others.
And it's this group of

659
00:46:36,700 --> 00:46:43,100
individuals who put this program
together, but they had to

660
00:46:43,100 --> 00:46:46,400
convince the general public that
it was in their best interests.

661
00:46:46,400 --> 00:46:51,200
And they also had to convince
Congress to authorize, so they

662
00:46:51,200 --> 00:46:54,500
had a two-pronged approach.
Roach.

663
00:46:56,200 --> 00:47:01,100
As far as the public they
Enlisted, the best efforts of

664
00:47:01,100 --> 00:47:06,200
high-profile businessmen and
others and they told the public

665
00:47:06,200 --> 00:47:11,300
that it was good for them
because the Federal Reserve

666
00:47:11,300 --> 00:47:17,600
would focus on managing the
stages of the economic cycle and

667
00:47:18,200 --> 00:47:23,100
avoiding as much as possible
depressions.

668
00:47:24,100 --> 00:47:30,000
Panics and crashes and also
hopefully extend the prosperity

669
00:47:30,000 --> 00:47:37,700
cycle to avoid those problems.
So it got people to think that

670
00:47:37,700 --> 00:47:40,000
okay, this is this is in our
best interest.

671
00:47:40,000 --> 00:47:41,700
This will work.
All right?

672
00:47:41,700 --> 00:47:45,600
Because we would like to have a
smoother effect here than what

673
00:47:45,600 --> 00:47:49,200
was going on.
They also had to convince

674
00:47:49,200 --> 00:47:54,000
Congress and the way they did
that is they needed to have some

675
00:47:54,000 --> 00:48:00,200
reason that somebody at some
level of government could use

676
00:48:00,200 --> 00:48:03,600
their influence to convince
those who would vote against

677
00:48:03,600 --> 00:48:07,900
this to vote for it.
So the Federal Reserve the

678
00:48:07,900 --> 00:48:11,400
people behind the Federal
Reserve who wanted this thing to

679
00:48:11,400 --> 00:48:15,700
happen.
Made a promise that if the

680
00:48:15,700 --> 00:48:23,000
Federal Reserve were Approve.
And, and authorize their

681
00:48:23,000 --> 00:48:28,000
existence, that they would
guarantee that the u.s.

682
00:48:28,000 --> 00:48:30,700
government would never run out
of money.

683
00:48:31,100 --> 00:48:34,500
But they would create make sure
that the money was there for

684
00:48:34,500 --> 00:48:36,500
the, for the treasury to
operate.

685
00:48:36,800 --> 00:48:41,300
That's how they got and then
that element of government

686
00:48:41,500 --> 00:48:45,800
convinced the Senators they
needed to make the vote.

687
00:48:46,300 --> 00:48:50,300
And that those are the two
things that had to be overcome.

688
00:48:50,400 --> 00:48:53,700
for the Thriller, the
authorization of the Federal

689
00:48:53,700 --> 00:48:56,600
Reserve, It sounds kind of
shady.

690
00:48:56,600 --> 00:49:00,600
Kelsey, I'm not gonna lie and as
you explain the whole thing

691
00:49:00,600 --> 00:49:03,700
there, I'm like, yeah, that's
that sounds kind of shady,

692
00:49:03,700 --> 00:49:07,000
right?
And then as you were saying,

693
00:49:07,000 --> 00:49:10,300
it's whole purpose was to
prevent really big highs in

694
00:49:10,300 --> 00:49:14,800
really big crashes, which so far
they haven't been able.

695
00:49:14,800 --> 00:49:16,800
I don't know how have they been
able?

696
00:49:16,800 --> 00:49:20,700
Have they been able to do that?
Did we see more more crashes

697
00:49:20,700 --> 00:49:25,400
before the FED versus after?
I mean, when I wrote it, Out

698
00:49:25,400 --> 00:49:28,400
this.
And there's a you and I are both

699
00:49:28,400 --> 00:49:34,300
read the book, The Creature From
Jekyll Island, which is about

700
00:49:34,300 --> 00:49:42,800
the origin of the Federal
Reserve and I believe there is a

701
00:49:42,800 --> 00:49:46,700
great deal of credibility to
that because the historical

702
00:49:46,700 --> 00:49:51,000
facts and the names are there
and the evidence is there.

703
00:49:51,000 --> 00:49:56,700
And but you can just wipe that
out and say, okay, let's look at

704
00:49:56,700 --> 00:50:01,000
it differently and let's look at
in and say what was the

705
00:50:01,000 --> 00:50:05,600
motivation of those who wanted
the FED we if it wasn't

706
00:50:05,600 --> 00:50:07,900
conspiracy?
What did they want?

707
00:50:08,000 --> 00:50:12,900
Why was it important to have?
Another National Bank or

708
00:50:12,900 --> 00:50:14,200
something.
Close to that.

709
00:50:14,300 --> 00:50:16,500
Why did these gentleman in
particular?

710
00:50:16,600 --> 00:50:20,100
Feel like this is important
because they were all identified

711
00:50:20,100 --> 00:50:22,400
with the bankers International
bankers.

712
00:50:22,400 --> 00:50:29,300
And I said, okay, that's the
conspiracy side of it.

713
00:50:29,600 --> 00:50:31,600
Okay, let's put that aside for a
minute.

714
00:50:31,600 --> 00:50:34,900
So what's another reason that it
might shouldn't be there?

715
00:50:36,000 --> 00:50:41,800
Well, one is constitutionality
right, and the best, I think the

716
00:50:41,800 --> 00:50:49,100
most outspoken and clearest in
his call for the FED to be

717
00:50:49,100 --> 00:50:53,900
abolished is former Congressman
Rand.

718
00:50:56,400 --> 00:51:02,200
Okay now and and he's he's very
clear about it.

719
00:51:02,200 --> 00:51:04,700
And I think there's Merit to
that and you can say the same

720
00:51:04,700 --> 00:51:09,600
thing about the end income tax,
but nevertheless it they were

721
00:51:09,600 --> 00:51:12,200
both approved.
The income tax is approved and

722
00:51:12,200 --> 00:51:15,700
and they were accepted whether
the Constitution or not they're

723
00:51:15,700 --> 00:51:23,100
there so and It's interesting
but the federal income tax

724
00:51:23,100 --> 00:51:27,100
originated in 1913.
Same year as the central bank,

725
00:51:27,700 --> 00:51:30,200
right?
Anyway.

726
00:51:30,200 --> 00:51:31,900
So let's so you can say, all
right?

727
00:51:31,900 --> 00:51:35,700
So you have constitutionality,
you have the conspiracy

728
00:51:35,700 --> 00:51:39,700
possibilities, we do.
We said both of those aside and

729
00:51:39,707 --> 00:51:42,600
you said for the time being
well, let's just look at it a

730
00:51:42,600 --> 00:51:45,200
different way.
Does the FED have a

731
00:51:45,207 --> 00:51:50,700
responsibility?
Two American citizens.

732
00:51:52,100 --> 00:51:55,500
Are they answerable to Congress
for the u.s. government?

733
00:51:55,500 --> 00:51:59,500
Well, there's sort of a quasi
Federal agency in a certain

734
00:51:59,500 --> 00:52:06,200
sense and they do.
Make an appearance. before

735
00:52:06,200 --> 00:52:13,200
Congress, on a regular basis and
they answer questions but I'm

736
00:52:13,200 --> 00:52:19,000
not sure how answerable they
are, because many did some

737
00:52:19,000 --> 00:52:22,700
research on this and just
discuss discovered this recently

738
00:52:22,700 --> 00:52:31,500
that the FED has been chartered
In Perpetual or perpetuity.

739
00:52:31,600 --> 00:52:34,800
In other words, they're the
charter, for the Federal Reserve

740
00:52:34,800 --> 00:52:38,800
doesn't run out at some point
with other National Banks, there

741
00:52:38,800 --> 00:52:43,600
was always a renewal call for,
in this case it was about, I

742
00:52:43,600 --> 00:52:48,100
think nine or ten years later in
the early twenties, maybe 1922

743
00:52:48,500 --> 00:52:53,500
that a bill authorized the FED
Charter.

744
00:52:55,400 --> 00:53:00,300
Without an end or limit.
So I don't know where we get to

745
00:53:00,300 --> 00:53:05,400
the point of, you know, That's
why I think most of the things

746
00:53:05,400 --> 00:53:09,400
fall on, you know, falling off
the way, they can't really

747
00:53:09,600 --> 00:53:12,000
nobody knows how to do it.
How do we get rid of them?

748
00:53:12,400 --> 00:53:15,600
But the final thing here to
consider when we're looking at,

749
00:53:15,600 --> 00:53:19,300
it is like, you asked, have they
done any good?

750
00:53:20,500 --> 00:53:22,800
Have they accomplished?
What they said they were going

751
00:53:22,800 --> 00:53:26,900
to do in terms of managing the
economic cycle?

752
00:53:27,100 --> 00:53:31,500
The stages smoothing things out
absolutely not the Federal

753
00:53:31,500 --> 00:53:36,400
Reserve caused the It depression
the Federal Reserve caused the

754
00:53:36,400 --> 00:53:41,500
credit collapse in 2008.
All of the effects that we're

755
00:53:41,500 --> 00:53:47,800
seeing in terms of volatility
and threats to the financial

756
00:53:47,800 --> 00:53:53,300
system and our economy, our
effects of inflation that was

757
00:53:53,300 --> 00:53:58,300
created by the fed from the
beginning from its origin.

758
00:53:59,900 --> 00:54:02,900
So no, they certainly aren't
Justified.

759
00:54:02,900 --> 00:54:06,500
And yet, we keep looking to the
FED to solve our problems.

760
00:54:07,200 --> 00:54:10,400
Hey, or trying to tell them.
This is what you should do or

761
00:54:10,400 --> 00:54:12,500
shouldn't.
Do you can't cut back now

762
00:54:12,500 --> 00:54:16,200
because of this, you're right
there on the horns of a dilemma.

763
00:54:17,300 --> 00:54:23,000
If they, you keep spiking the
punch bowl, sooner or later,

764
00:54:23,600 --> 00:54:26,700
you're still going to have bad
effects and if you take away the

765
00:54:26,700 --> 00:54:33,200
spike, it's going to cause an
immediate collapse because

766
00:54:33,200 --> 00:54:37,200
everybody is used to it and they
depend on it.

767
00:54:37,600 --> 00:54:42,800
So the FED really doesn't have
much Choice other than to

768
00:54:42,800 --> 00:54:47,000
maneuver back and forth.
And when things get bad enough,

769
00:54:47,100 --> 00:54:50,800
they'll react, but they usually
tend to overreact.

770
00:54:50,900 --> 00:54:54,000
It's kind of like being in a car
that's out of control and every

771
00:54:54,000 --> 00:54:57,600
once in a while you say you're
going too fast you slam on the

772
00:54:57,600 --> 00:55:02,100
brakes, then you go really slow
and so me, you realize you're

773
00:55:02,100 --> 00:55:05,300
not getting anywhere so you
speed up again and as you speed

774
00:55:05,300 --> 00:55:08,000
up, you see a wall right ahead
and then you have to slam on the

775
00:55:08,008 --> 00:55:13,600
brakes e and and this is the way
the FED operates because they're

776
00:55:13,600 --> 00:55:19,000
in the dark just Just as much,
they knew when they started out

777
00:55:19,000 --> 00:55:22,700
that some at some point it was
going to be out of control.

778
00:55:22,900 --> 00:55:26,300
They just hope they could
continue to massage it.

779
00:55:26,500 --> 00:55:30,600
And I think we're, you know,
probably passed the point at

780
00:55:30,600 --> 00:55:33,700
some point, something will
happen big enough and we'll just

781
00:55:33,700 --> 00:55:36,500
have to accept it.
And the FED will too, but

782
00:55:36,500 --> 00:55:38,800
they'll pull out all their guns
at that time.

783
00:55:38,800 --> 00:55:42,000
They'll do everything they can
because they're not working in

784
00:55:42,000 --> 00:55:44,200
our behalf.
They want to save their system.

785
00:55:44,600 --> 00:55:46,700
Right?
They have the license to print

786
00:55:46,700 --> 00:55:51,500
money, lend it, and collect
interest, the banks do, so they

787
00:55:51,500 --> 00:55:54,900
don't want to lose that.
So, let me ask, let me.

788
00:55:55,600 --> 00:55:57,500
Let me rephrase some things this
way.

789
00:55:57,500 --> 00:56:02,400
If if America is, the is the
addict cheap.

790
00:56:02,400 --> 00:56:06,700
Money is the heroine, then our
dealer is the Fed?

791
00:56:06,700 --> 00:56:08,800
Is that a, is that a fair
assessment?

792
00:56:09,100 --> 00:56:12,300
Yeah, I would say, so.
Okay, supplier for sure.

793
00:56:13,600 --> 00:56:19,600
Okay, so They've been they've
been doing this for a while now,

794
00:56:19,600 --> 00:56:22,000
right?
Where they've been been, you

795
00:56:22,000 --> 00:56:26,100
know, lending the United States
money and let's call it what it

796
00:56:26,100 --> 00:56:26,700
is.
Right there.

797
00:56:26,700 --> 00:56:29,900
Lending the taxpayers money,
right?

798
00:56:30,000 --> 00:56:32,800
And then we're expected to pay
back that interest.

799
00:56:34,100 --> 00:56:36,500
So, they've been lending US
money.

800
00:56:39,500 --> 00:56:42,500
Who is their boss?
Tis is there somebody in the

801
00:56:42,500 --> 00:56:44,400
federal government?
Is it Janet Yellen?

802
00:56:44,400 --> 00:56:47,700
Who is it that the FED answers
to is there anybody?

803
00:56:47,700 --> 00:56:52,300
The answer to this is where it
can get a little dicey.

804
00:56:55,700 --> 00:57:03,600
Government is all areas of
importance in government.

805
00:57:03,600 --> 00:57:10,200
We probably have people that are
affiliated and part of bankers

806
00:57:10,200 --> 00:57:15,500
and organizations that have
motivation.

807
00:57:15,500 --> 00:57:20,400
That's far beyond anything we
would assume or understand, it's

808
00:57:20,400 --> 00:57:24,700
not one person or group
necessarily.

809
00:57:25,400 --> 00:57:30,300
Might be several groups.
Might there might be an

810
00:57:30,300 --> 00:57:34,500
individual who has a connection
with two or three different

811
00:57:34,500 --> 00:57:42,100
groups and then you have
individuals who You wonder,

812
00:57:42,100 --> 00:57:47,200
maybe they probably are but they
lean towards the political

813
00:57:47,200 --> 00:57:51,300
philosophy that would allow that
implementation to happen at some

814
00:57:51,300 --> 00:57:54,200
point.
It revolves around power and

815
00:57:54,200 --> 00:57:59,300
control and money, those three
things but I think we can rule

816
00:57:59,300 --> 00:58:06,400
out the money specifically But
not the power and control.

817
00:58:07,900 --> 00:58:11,700
The money has to be there but
that's not the goal.

818
00:58:12,100 --> 00:58:16,800
And those who have that
influence are probably at a

819
00:58:16,800 --> 00:58:22,000
point where what I'm going to do
with all this money, right?

820
00:58:22,200 --> 00:58:29,900
You know, now I say that but I
also I'm not a fatalist here I

821
00:58:29,900 --> 00:58:32,600
don't, you know, and this is
hard for people.

822
00:58:33,700 --> 00:58:38,800
But again, do some research
Because the evidence is there,

823
00:58:38,800 --> 00:58:42,500
this stuff's been going on for
quite some time and it's not

824
00:58:42,500 --> 00:58:45,200
just here in the US, it's in
Europe.

825
00:58:45,200 --> 00:58:52,300
And so you can see that there
are those in some and and the

826
00:58:52,300 --> 00:58:54,500
term has been used Shadow
government.

827
00:58:54,500 --> 00:58:59,600
I mean if you look at it the
first I think the first tip-off

828
00:58:59,600 --> 00:59:04,800
for me came in the in the 70s
when he realized that it really

829
00:59:04,800 --> 00:59:07,100
didn't make much difference.
Whether we had a Republican

830
00:59:07,500 --> 00:59:09,700
Chicken in office, or a
Democrat.

831
00:59:10,500 --> 00:59:16,300
Because the spending habits and
the course of government

832
00:59:16,300 --> 00:59:20,000
activity and intervention and
interference.

833
00:59:21,200 --> 00:59:25,500
Coupled with the loss of
personal freedom.

834
00:59:27,400 --> 00:59:33,200
It goes back quite some time.
And so, you see that and you

835
00:59:33,200 --> 00:59:35,400
have to believe is like, wait a
second.

836
00:59:36,600 --> 00:59:40,200
Is this the same guy that was
saying what he was saying when

837
00:59:40,200 --> 00:59:46,600
he was running for office?
Or even if he sounds like he is,

838
00:59:47,600 --> 00:59:54,100
is anything being accomplished.
So I look at it that way and I

839
00:59:54,300 --> 01:00:02,400
been convinced for well, over 40
years that it doesn't make much

840
01:00:02,400 --> 01:00:06,200
difference at all who's in
office anymore that they're not

841
01:00:06,200 --> 01:00:11,600
in control and if they are if
they if they rebuffed those who

842
01:00:11,600 --> 01:00:21,000
are in control, then something
happens to and you have I don't

843
01:00:21,000 --> 01:00:25,300
see how some people can even
read a newspaper anymore, or

844
01:00:25,300 --> 01:00:30,400
look at headlines on their
computer news feeds and think

845
01:00:30,400 --> 01:00:36,400
that, that we have a free and
open press because, you know,

846
01:00:36,400 --> 01:00:38,600
it's just not.
I mean, that's, that's my

847
01:00:38,600 --> 01:00:42,300
personal opinion, but I agree
with you.

848
01:00:42,300 --> 01:00:51,300
I think the evidence is there
but we still have A measure of

849
01:00:51,300 --> 01:00:57,900
Freedom that allows us to be
independent and take action for

850
01:00:57,900 --> 01:01:02,500
ourselves.
So and I try to write that way.

851
01:01:02,800 --> 01:01:06,900
You see, I don't I have
hesitated to write too much

852
01:01:06,900 --> 01:01:09,500
about the conspiracy thing.
One is.

853
01:01:09,500 --> 01:01:14,300
I had trouble convincing myself
that everything boils down to

854
01:01:14,300 --> 01:01:16,400
that and I'm still not
convinced.

855
01:01:16,400 --> 01:01:21,100
It does is just that There's a
measure of trust involved.

856
01:01:21,300 --> 01:01:24,500
Who am I talking to?
Can I believe him?

857
01:01:25,000 --> 01:01:31,400
And You know, where where do my
best interests lie?

858
01:01:32,600 --> 01:01:39,200
And so, I'm not I'm not anti
government other than I, don't

859
01:01:39,200 --> 01:01:44,200
think government is the answer.
The way we're headed.

860
01:01:44,200 --> 01:01:49,100
Never has been.
I mentioned his name before

861
01:01:49,100 --> 01:01:53,900
Harry Brown, but I He wrote over
40 years ago.

862
01:01:53,900 --> 01:02:00,500
You know, we need to start with
a goal in mind. cut income taxes

863
01:02:00,500 --> 01:02:06,800
by 50% and cut government
intervention.

864
01:02:08,300 --> 01:02:09,800
Right.
Third to a half.

865
01:02:09,800 --> 01:02:12,500
In other words, why?
Why is the government

866
01:02:12,500 --> 01:02:14,600
regulating?
All of these things and telling

867
01:02:14,600 --> 01:02:17,900
us that?
Well, see that all of that goes

868
01:02:17,900 --> 01:02:20,100
together.
I think that's a part of the

869
01:02:20,700 --> 01:02:24,500
financial and economic.
You can't ignore those things.

870
01:02:25,100 --> 01:02:28,000
You have to know about them.
You can make, you make your

871
01:02:28,000 --> 01:02:31,200
choices and your decisions, and
you know, look at what's going

872
01:02:31,200 --> 01:02:34,200
on, you say?
All right, how am I going to

873
01:02:34,200 --> 01:02:37,300
deal with this?
If you discount the conspiracy

874
01:02:37,300 --> 01:02:42,400
theories, if you discount Shadow
government issues and you at

875
01:02:42,400 --> 01:02:45,400
least look and say, you know
what, the track record of the

876
01:02:45,400 --> 01:02:50,900
FED sucks, they haven't done
much to make this worthwhile, so

877
01:02:50,900 --> 01:02:55,400
I'm going to protect myself.
and, you know, so, you know, you

878
01:02:55,400 --> 01:03:04,300
do some things to do that, but
we're We're closer to the end of

879
01:03:04,300 --> 01:03:08,100
the road then somewhere along
the way, right.

880
01:03:08,100 --> 01:03:10,600
I'd be a good way to put it
before we go.

881
01:03:10,800 --> 01:03:14,500
See some significant change.
Yeah, I know before we go there,

882
01:03:14,500 --> 01:03:17,700
I want to ask this question
before the Federal Reserve who

883
01:03:17,700 --> 01:03:22,200
set the monetary policy, right?
Who decided when it was time to

884
01:03:22,200 --> 01:03:26,800
print more money, who did that?
Hey, you had a government and a

885
01:03:26,808 --> 01:03:32,000
treasury in office, there was no
Central Bank National Bank.

886
01:03:32,400 --> 01:03:35,800
The experiences with the
National Banks were not there.

887
01:03:35,800 --> 01:03:37,900
Then they would come and they
would go.

888
01:03:38,300 --> 01:03:45,200
So the treasury was responsible
but there was a direct link to

889
01:03:45,200 --> 01:03:50,200
gold and silver.
We had a bimetallic system, so

890
01:03:50,600 --> 01:03:53,900
you could hand me.
See gold was original money.

891
01:03:54,200 --> 01:03:56,900
That was money before paper
currencies.

892
01:03:57,600 --> 01:04:04,000
So in order and this is the
logic is if Government wants

893
01:04:04,000 --> 01:04:09,600
people to accept It's Paper
currency, Then it's got to

894
01:04:09,600 --> 01:04:13,600
convince them that it's in their
best interest and in order to

895
01:04:13,600 --> 01:04:18,900
overcome that obstacle though
they've got a trust and so in

896
01:04:18,900 --> 01:04:23,000
order to trust they say well
let's make the dollar since we

897
01:04:23,000 --> 01:04:25,500
want to have what they call it
is irrelevant.

898
01:04:25,500 --> 01:04:29,800
It's how does it function?
You know, and it said will make

899
01:04:30,200 --> 01:04:34,600
the dollar convertible to x
amount of gold or silver and and

900
01:04:34,600 --> 01:04:36,600
civilizations have done this,
you know?

901
01:04:36,600 --> 01:04:43,100
So because As people can say,
okay, I know I have five pieces

902
01:04:43,100 --> 01:04:47,800
of silver here.
I know I have a fraction ounce

903
01:04:47,800 --> 01:04:52,100
of gold.
If I can take that paper dollar

904
01:04:52,100 --> 01:04:57,700
and turn it in and get exactly
that back in exchange, I'm good

905
01:04:57,700 --> 01:05:01,300
to go.
The problem is too many of those

906
01:05:01,300 --> 01:05:07,300
paper substitutes were issued
such that.

907
01:05:08,800 --> 01:05:11,300
The convertibility became
questionable.

908
01:05:11,900 --> 01:05:14,800
So the convertibility being the
issue.

909
01:05:16,200 --> 01:05:21,100
As long as people knew that a
dollar in gold.

910
01:05:21,900 --> 01:05:25,500
The dollar was as good as gold,
you know, paper dollar was a

911
01:05:25,500 --> 01:05:29,000
dollar and gold and that, that
was maintained.

912
01:05:30,400 --> 01:05:33,800
Then it's not an issue, not a
problem, doesn't mean you're not

913
01:05:33,800 --> 01:05:37,100
going to have stages to the
economic cycle and it doesn't

914
01:05:37,100 --> 01:05:39,200
mean they're bad for the
economy.

915
01:05:39,200 --> 01:05:42,900
Generally, you have to have a
cleansing of some kind once in a

916
01:05:42,908 --> 01:05:46,600
while.
And they don't all happen

917
01:05:46,900 --> 01:05:51,200
because of the system, they
happen because of people and

918
01:05:51,200 --> 01:05:53,800
individuals, and other
activities.

919
01:05:53,800 --> 01:05:58,500
So, so that's what you had, you
have people, you know what's

920
01:05:58,500 --> 01:06:02,900
money, what people will accept
the National Bank changes

921
01:06:02,900 --> 01:06:06,100
everything, the central bank,
now everything's funneled

922
01:06:06,100 --> 01:06:10,500
through the Fed.
Okay, that makes sense.

923
01:06:11,100 --> 01:06:14,100
Let me let me I want to make one
thing clear though.

924
01:06:15,200 --> 01:06:17,500
And I was thinking about this
earlier and I think it's

925
01:06:17,500 --> 01:06:23,600
important.
Government spending does not

926
01:06:23,600 --> 01:06:27,400
create inflation.
There's been a lot of talk about

927
01:06:27,500 --> 01:06:31,300
Biden's.
Irresponsible spending plans his

928
01:06:31,300 --> 01:06:36,100
administration and what happened
in response to the forced shut

929
01:06:36,100 --> 01:06:38,000
down and covid and all his
stuff.

930
01:06:38,000 --> 01:06:46,700
But the Federal Reserve creates
the money If the money isn't

931
01:06:46,700 --> 01:06:52,000
there, the fact that the
government can't spend it right?

932
01:06:52,100 --> 01:06:56,600
Lesion doesn't happen.
A corporation, raising prices

933
01:06:57,000 --> 01:06:59,900
that doesn't cause Excel
inflation.

934
01:07:00,300 --> 01:07:02,500
Labor demands don't cause
inflation.

935
01:07:02,500 --> 01:07:06,600
Inflation is the cheapening of
the money supply because of that

936
01:07:06,600 --> 01:07:13,500
expansion of money and credit by
the fed, that's what causes the

937
01:07:13,700 --> 01:07:18,700
debasement.
And then that loss in purchasing

938
01:07:18,700 --> 01:07:25,000
power occurs and then the prices
go up to reflect the loss of

939
01:07:25,000 --> 01:07:28,600
purchasing power.
It's not because it's not a

940
01:07:28,607 --> 01:07:32,600
spontaneous event, it's a
planned action and it starts

941
01:07:32,600 --> 01:07:35,400
with the Federal Reserve with
the central bank and that's the

942
01:07:35,400 --> 01:07:37,600
way it works.
So you're saying it doesn't

943
01:07:37,600 --> 01:07:41,400
start with with like a wish list
by a president saying, hey, I

944
01:07:41,408 --> 01:07:44,700
need this much money to do, x,
y, and z.

945
01:07:44,800 --> 01:07:46,500
That's that's what we're
playing.

946
01:07:46,500 --> 01:07:50,000
Some my platform that I have to
get done and then he looks the

947
01:07:50,000 --> 01:07:54,700
fed and says, print that money.
It may start there he is

948
01:07:54,700 --> 01:07:58,500
spending, it is reckless,
there's anything it was

949
01:07:58,500 --> 01:08:01,100
Congress.
Congress is like drunken

950
01:08:01,100 --> 01:08:03,700
Sailors.
If there's a problem, we're

951
01:08:03,700 --> 01:08:06,200
going to spend some money and
that's what they do.

952
01:08:06,200 --> 01:08:10,200
They throw money at it and
create more regulations but they

953
01:08:10,200 --> 01:08:14,000
can't spend money that they
don't have unless it's made

954
01:08:14,000 --> 01:08:15,800
available.
So The only way it's going to be

955
01:08:15,800 --> 01:08:22,100
made available is if they create
treasury Securities and their

956
01:08:22,100 --> 01:08:27,600
loan to borrow borrow the money
or get it from the FED, whatever

957
01:08:27,600 --> 01:08:30,800
combination can get it, they're
guaranteed to have it and they

958
01:08:30,800 --> 01:08:32,800
will, they're not going to run
out.

959
01:08:32,899 --> 01:08:35,800
They just continue to print
more, treasuries to redeem

960
01:08:35,800 --> 01:08:39,399
everything.
So if they're unable to do that

961
01:08:39,600 --> 01:08:41,700
it doesn't matter how much they
want to spend.

962
01:08:42,500 --> 01:08:46,200
You know, individuals can go out
and say, Hey, I want to spend

963
01:08:46,200 --> 01:08:49,700
things, I can be Reckless.
I spent my kids college fund.

964
01:08:49,700 --> 01:08:52,200
I did all these other things
that's not going to create

965
01:08:52,200 --> 01:08:55,700
inflation.
Create a depression because I

966
01:08:55,700 --> 01:08:59,700
did all this unless I have a
source from the money.

967
01:09:00,399 --> 01:09:02,700
Okay.
But that confusion about

968
01:09:02,700 --> 01:09:06,800
inflation is also partly
purposeful.

969
01:09:08,300 --> 01:09:13,300
It takes the focus off of the
guilty party.

970
01:09:13,899 --> 01:09:17,500
You see if people understood
that these are effects that

971
01:09:17,500 --> 01:09:24,700
happen as a result of the prior
creation, Of the of the

972
01:09:24,700 --> 01:09:27,800
inflation, the expansion of the
supply of money and creating

973
01:09:28,899 --> 01:09:32,899
then, well, you know, don't
don't blame me, I didn't do this

974
01:09:32,899 --> 01:09:36,000
because, you know, right now
we're talking about inflation

975
01:09:36,000 --> 01:09:37,700
and they're trying to blame
Russia.

976
01:09:37,700 --> 01:09:40,600
They're both stable.
Inflation is bad because the oil

977
01:09:40,600 --> 01:09:45,399
prices are high, no, no, none of
that's true but that muddies the

978
01:09:45,399 --> 01:09:50,600
waters.
I got you and then people are

979
01:09:50,600 --> 01:09:57,300
more pliable and more accepting
of more regulation and

980
01:09:57,300 --> 01:10:01,000
intervention.
In order to stop what they see

981
01:10:01,300 --> 01:10:06,000
have been told is inflation.
He just raised his price, you

982
01:10:06,000 --> 01:10:09,300
can't do that.
And then we start coming in with

983
01:10:09,300 --> 01:10:13,600
all of the government, edicts,
to control inflation, but the

984
01:10:13,600 --> 01:10:17,700
FED still printing money.
Right.

985
01:10:17,800 --> 01:10:20,400
Government still spending
whatever, they can get their

986
01:10:20,400 --> 01:10:23,200
hands on.
So again, it's not the spending

987
01:10:23,200 --> 01:10:28,200
habits, it's not individual
greed or anything else the

988
01:10:28,200 --> 01:10:34,400
inflation exist because The FED
created the money and continues

989
01:10:34,400 --> 01:10:37,700
to create it.
You know, I think you brought

990
01:10:37,700 --> 01:10:41,200
up, I think you answered a
question, I always had which was

991
01:10:41,800 --> 01:10:44,700
why didn't the founders put in
the Constitution?

992
01:10:47,000 --> 01:10:50,300
A provision that said hey you
can never spend more money than

993
01:10:50,300 --> 01:10:53,200
what you bring in.
And I think it was because

994
01:10:53,200 --> 01:10:58,200
perhaps they didn't in ever
foresee a central bank would

995
01:10:58,200 --> 01:11:04,700
that is that a fair assessment?
Probably not, you know, as much

996
01:11:04,700 --> 01:11:08,000
as I read in history.
That's one area that I house,

997
01:11:08,000 --> 01:11:13,300
have to go back and research
some things again but here's

998
01:11:13,300 --> 01:11:15,700
what I would say and I think
it's reasonable.

999
01:11:19,800 --> 01:11:26,300
Their intention was that gold
and silver was money, okay?

1000
01:11:26,800 --> 01:11:35,400
Okay and that's why when we talk
about constitutionality and it

1001
01:11:35,400 --> 01:11:40,100
isn't so much whether there's a
central bank or a National Bank

1002
01:11:40,200 --> 01:11:45,400
it has to do with that issue.
If a if there were a time when

1003
01:11:45,400 --> 01:11:49,700
there was more than one National
Bank or one in existence, At the

1004
01:11:49,700 --> 01:11:52,600
same time or there was a
national bank and a couple other

1005
01:11:52,600 --> 01:11:56,600
Regional Banks or whatever, it
still comes down to the money

1006
01:11:56,600 --> 01:11:59,000
and the confidence and
credibility there.

1007
01:12:00,200 --> 01:12:05,800
If as long as I know that I have
a certain value here that

1008
01:12:05,800 --> 01:12:10,300
stated, and then I can convert
it and actually get what I

1009
01:12:10,300 --> 01:12:17,800
believe and expect then those
aren't issues the issues come

1010
01:12:17,800 --> 01:12:22,100
into play.
When somebody tells me this is

1011
01:12:22,100 --> 01:12:27,200
worth acts and it isn't.
And when I go to use it, I find

1012
01:12:27,200 --> 01:12:29,000
out.
Oh, I you mean, you can't, you

1013
01:12:29,000 --> 01:12:30,700
can't give me an ounce.
A gold.

1014
01:12:31,200 --> 01:12:34,400
I can't have five dollars in
goal for this five dollar bill

1015
01:12:34,400 --> 01:12:38,200
or the 20 and I used to watch
these things in the 60s and I

1016
01:12:38,208 --> 01:12:45,400
say, hey, this is Pay to the
bearer on demand and another one

1017
01:12:45,400 --> 01:12:50,000
says, you know pay to the bearer
on Van five dollars in gold or

1018
01:12:50,000 --> 01:12:53,800
whatever and then the and then
the next time it was paid to the

1019
01:12:53,800 --> 01:13:00,000
bearer on demand five dollars, I
can turn him my $5 and get $5

1020
01:13:00,000 --> 01:13:03,300
back but doesn't mean anything
if still a piece of paper.

1021
01:13:03,900 --> 01:13:10,300
So the issue is what's the basis
of the money supply.

1022
01:13:10,300 --> 01:13:14,000
The system itself.
The reason that the central

1023
01:13:14,000 --> 01:13:19,000
banks exist again is because
they can create money and they

1024
01:13:19,000 --> 01:13:23,100
create the money for the purpose
of lending, it, and collecting

1025
01:13:23,100 --> 01:13:26,900
interest.
Again, that's where, you know,

1026
01:13:26,900 --> 01:13:29,800
you start to eventually erode
the confidence because there is

1027
01:13:29,800 --> 01:13:35,000
anything because you still had a
fixed ratio of gold and silver

1028
01:13:35,000 --> 01:13:42,200
to the dollar until the mid 30s.
When people started saying, I

1029
01:13:42,200 --> 01:13:46,500
don't trust the government or
the money or whatever.

1030
01:13:46,600 --> 01:13:49,300
So the government says, wait a
second.

1031
01:13:49,300 --> 01:13:52,200
If people start doing gold
that's going to kill us.

1032
01:13:52,200 --> 01:13:56,800
How are we going to navigate
this depression and then the

1033
01:13:56,800 --> 01:14:04,300
silver history of price supports
price depression?

1034
01:14:04,400 --> 01:14:08,800
I mean for several hundred years
the manipulation was there.

1035
01:14:09,300 --> 01:14:13,300
And finally reached a point
where The government simply said

1036
01:14:13,300 --> 01:14:17,000
because of the amount of
inflation and the cheapening of

1037
01:14:17,000 --> 01:14:22,000
the existing dollars over time,
it's like we can't maintain this

1038
01:14:22,000 --> 01:14:26,300
and then he had all the foreign
governments in the early 70s who

1039
01:14:26,400 --> 01:14:29,200
wanted to turn their dollars
back for the gold that they were

1040
01:14:29,200 --> 01:14:32,300
told.
They could have at $20 an ounce

1041
01:14:32,300 --> 01:14:37,600
than $35 an ounce, then 42, and
they just kept getting haircuts

1042
01:14:38,300 --> 01:14:42,600
throughout that first half
century like Sooner or later you

1043
01:14:42,600 --> 01:14:45,000
say I don't trust you and I
don't believe you.

1044
01:14:46,000 --> 01:14:53,700
So you know They have managed us
rather than manage the stage of

1045
01:14:53,700 --> 01:14:56,500
the cycle.
They have manages to a point

1046
01:14:56,500 --> 01:15:00,900
where the dollar is now worth
one penny, compared to a dollar,

1047
01:15:01,300 --> 01:15:08,600
a century ago, that's a crazy
stat, I have another question so

1048
01:15:09,400 --> 01:15:12,500
the FED lends money to the
government and then they charge

1049
01:15:12,500 --> 01:15:17,300
interest on it.
And then we continue to borrow

1050
01:15:17,300 --> 01:15:20,500
money Without Really Ever paying
it back in full.

1051
01:15:21,800 --> 01:15:26,700
If I was to use that same
scenario in my household budget,

1052
01:15:27,200 --> 01:15:32,500
at some point, the interest
payments are going to be larger,

1053
01:15:32,500 --> 01:15:35,900
just the interest payments.
If I'm thinking about this

1054
01:15:35,900 --> 01:15:40,400
correctly will be larger than
what I actually produce true or

1055
01:15:40,400 --> 01:15:44,300
false.
We are already at a point where

1056
01:15:44,300 --> 01:15:50,700
the ratio of At.
To productivity is greater than

1057
01:15:50,700 --> 01:15:54,600
100%.
The total debt.

1058
01:15:56,900 --> 01:16:02,500
Is over 100 percent.
It means in very simple terms.

1059
01:16:03,100 --> 01:16:09,300
That it takes a hundred and
three thousand, or a hundred and

1060
01:16:09,300 --> 01:16:13,100
some silly, fractional amount
over 100.

1061
01:16:14,800 --> 01:16:18,700
Two.
Hey for a hundred thousand

1062
01:16:18,700 --> 01:16:21,500
dollars worth of productivity
you.

1063
01:16:21,500 --> 01:16:24,900
Do you see we're already
functioning that way?

1064
01:16:25,100 --> 01:16:29,700
We're already functioning, we
are not, it makes sense that if

1065
01:16:29,800 --> 01:16:34,600
if I can borrow money at 8%,
okay?

1066
01:16:35,900 --> 01:16:42,400
And I can earn 15 or 20.
Okay, I'll do that.

1067
01:16:42,500 --> 01:16:46,400
You know, I mean there's risk
involved and everything else or

1068
01:16:46,900 --> 01:16:50,900
that my total debt doesn't
exceed productivity.

1069
01:16:51,300 --> 01:16:54,200
Well, that's where we are.
We've gotten to the point now

1070
01:16:54,400 --> 01:16:57,800
where everything is funded by
credit and this is the

1071
01:16:57,800 --> 01:17:00,400
dependency of you.
Take away the credit, the

1072
01:17:00,400 --> 01:17:05,300
economy collapses, but the other
choice is that you don't take it

1073
01:17:05,300 --> 01:17:08,300
away.
And we either have

1074
01:17:08,300 --> 01:17:11,100
hyperinflation or credit.
Anyway.

1075
01:17:12,600 --> 01:17:16,100
Because it always ends in
depression whether we have hyper

1076
01:17:16,100 --> 01:17:20,400
inflation or deflation, we will
still end up with a another

1077
01:17:20,400 --> 01:17:23,800
depression and it'll be a lot
worse than the last one.

1078
01:17:25,500 --> 01:17:29,400
So I'm going to can't remember
who I heard it from, but it was

1079
01:17:29,400 --> 01:17:33,100
an economist who said I should
have looked this up before he

1080
01:17:33,100 --> 01:17:36,400
got on here.
But it said, the laws of economy

1081
01:17:36,400 --> 01:17:38,000
are a lot.
Like the laws of physics.

1082
01:17:38,000 --> 01:17:44,000
You can figure out a way through
propulsion to To, you know,

1083
01:17:44,000 --> 01:17:46,200
Stave those off for a little
while.

1084
01:17:46,500 --> 01:17:49,600
But at some point, the laws of
physics are going to be obeyed,

1085
01:17:49,600 --> 01:17:51,600
the laws of economy are the same
way.

1086
01:17:54,100 --> 01:17:56,400
In that kind of sounds what you
were saying at some point,

1087
01:17:56,400 --> 01:17:59,200
there's going to be a reckoning
that happened so to speak.

1088
01:17:59,200 --> 01:18:01,300
Correct?
Correct.

1089
01:18:01,700 --> 01:18:07,000
I believe that very much.
So let me ask you this.

1090
01:18:09,100 --> 01:18:11,800
What would cause?
What would be the Catalyst to

1091
01:18:11,800 --> 01:18:16,300
that Reckoning, right?
What what kind of world events

1092
01:18:16,300 --> 01:18:20,700
or whatever?
What would be the trigger to

1093
01:18:20,700 --> 01:18:23,100
start that, what kind of events
does that?

1094
01:18:23,100 --> 01:18:26,000
Is that a fair question?
It's a fair question.

1095
01:18:26,100 --> 01:18:30,600
The thing is anything, almost
anything could be the trigger or

1096
01:18:30,600 --> 01:18:32,700
the catalyst is set down in
motion.

1097
01:18:33,100 --> 01:18:41,200
And here's why when we talked
about the Inflation that's

1098
01:18:41,200 --> 01:18:46,200
created by the fed, and the
bank's, there's another larger

1099
01:18:46,200 --> 01:18:48,100
that's where all the attention
goes.

1100
01:18:48,400 --> 01:18:55,700
But the bigger risk is the fact
that the cheap credit is what

1101
01:18:55,700 --> 01:19:03,900
allows Wall Street.
To continue to produce product

1102
01:19:03,900 --> 01:19:08,400
inventory.
Of dubious quality.

1103
01:19:08,800 --> 01:19:15,000
And I say that, meaning, if you
can dream up a scenario in your

1104
01:19:15,000 --> 01:19:22,700
mind, you can file probably find
a security That Wall Street has

1105
01:19:22,700 --> 01:19:27,400
out there that will that you can
bet on to see that happen

1106
01:19:27,600 --> 01:19:30,300
meaning.
And it doesn't matter whether

1107
01:19:30,300 --> 01:19:35,900
we're talking about interest
rates up for the US dollar and

1108
01:19:35,900 --> 01:19:40,400
do. for the Japanese Yen, or
whether we're talking about,

1109
01:19:42,500 --> 01:19:47,200
Federal agency rates versus
others, you know, there's

1110
01:19:47,200 --> 01:19:53,100
spreads there's options, there's
future options on Futures there

1111
01:19:53,500 --> 01:19:56,900
there are so many esoteric
Investments out there that are

1112
01:19:56,900 --> 01:20:01,500
based on credit.
And you take one basic product,

1113
01:20:01,500 --> 01:20:06,600
like a like a bond.
Do you remember you skull zero

1114
01:20:06,600 --> 01:20:08,600
coupons and we still they're
still out there?

1115
01:20:08,600 --> 01:20:11,300
You use they would strip the
interest.

1116
01:20:11,700 --> 01:20:15,300
And this is just a, you know,
sounds like how do you do that?

1117
01:20:15,300 --> 01:20:17,200
But they did.
And they would say here's a

1118
01:20:17,208 --> 01:20:20,600
treasury bond.
For the next 30 Years is going

1119
01:20:20,600 --> 01:20:25,200
to pay 8% interest or whatever.
The rate was 4% manner.

1120
01:20:26,300 --> 01:20:31,400
You say, all right I don't need
the income so I'm going to buy

1121
01:20:31,400 --> 01:20:36,900
that treasury bond at a discount
and the and then I'll have a

1122
01:20:36,907 --> 01:20:42,700
capital increase over time and
it'll mature gradually to the

1123
01:20:42,700 --> 01:20:45,100
point.
So I might buy that at a

1124
01:20:45,600 --> 01:20:49,100
significantly reduced rate and I
just won't collect the income,

1125
01:20:49,100 --> 01:20:51,700
then they sell the interest
income to somebody else.

1126
01:20:52,200 --> 01:20:57,700
But the problem is people are
the products.

1127
01:20:57,700 --> 01:21:03,500
A lot of the products are based
on things that fluctuate

1128
01:21:03,500 --> 01:21:09,300
volatile are very volatile based
on changes in interest rates and

1129
01:21:09,300 --> 01:21:12,000
they do this because they're
looking for ways to generate

1130
01:21:12,000 --> 01:21:15,500
income because the traditional
ways won't work anymore because

1131
01:21:15,500 --> 01:21:18,700
the interest rates are too low.
So they've got to be able to

1132
01:21:18,700 --> 01:21:21,400
attract.
So how are you going to attract

1133
01:21:21,400 --> 01:21:24,500
people to?
Buy a product telling them, they

1134
01:21:24,500 --> 01:21:27,600
look, you're going to earn a
half percent over the next two

1135
01:21:27,600 --> 01:21:32,200
years on this.
What, what do I want?

1136
01:21:34,500 --> 01:21:42,200
So you have this entire level of
activity will call it investment

1137
01:21:42,200 --> 01:21:48,700
activity that nobody sees
anything on understands can

1138
01:21:48,700 --> 01:21:51,900
explain, even the people who
people have Market, these they

1139
01:21:51,900 --> 01:21:53,300
do.
Don't understand them.

1140
01:21:53,500 --> 01:21:56,100
They have somebody put this
together.

1141
01:21:56,100 --> 01:21:58,900
How they get it approved?
I don't know.

1142
01:21:59,500 --> 01:22:02,600
But so are.
And it's all because it's very

1143
01:22:02,600 --> 01:22:05,600
convoluted.
And they're all based on

1144
01:22:05,600 --> 01:22:11,300
premises that if anything
happens to alter those premises,

1145
01:22:11,300 --> 01:22:16,000
or the direction that people
expect the interest rates or

1146
01:22:17,000 --> 01:22:20,300
currency and foreign currency
exchange rates, and that sort of

1147
01:22:20,300 --> 01:22:23,400
thing.
It Alters, even the slightest

1148
01:22:23,400 --> 01:22:26,500
fraction, it can cause
horrendous losses.

1149
01:22:26,700 --> 01:22:32,900
Now, what's happened recently?
There are some big bets that

1150
01:22:32,900 --> 01:22:38,200
have gone South real fast with
the latest efforts by the FED to

1151
01:22:38,300 --> 01:22:44,500
push rates up.
So we're it's like a razor thin

1152
01:22:45,500 --> 01:22:48,800
Edge.
That's keeping, you know, you

1153
01:22:48,800 --> 01:22:52,400
tilt it just a little bit this
way, those kind of things can

1154
01:22:52,400 --> 01:22:57,500
trigger and somebody says, Hey a
big investor who bet big and

1155
01:22:57,500 --> 01:22:59,800
suddenly finds.
He's a couple billion.

1156
01:22:59,900 --> 01:23:04,300
Dollars in the hole and now, how
do I, how do I do that?

1157
01:23:04,300 --> 01:23:08,500
What do and maybe?
He's maybe he's the manager of a

1158
01:23:08,500 --> 01:23:11,400
hedge fund.
Maybe he's a big shareholder and

1159
01:23:11,500 --> 01:23:16,000
I mean, the implications go on
and on but but that's not the

1160
01:23:16,000 --> 01:23:18,900
half of it and we haven't even
gotten into this.

1161
01:23:18,900 --> 01:23:21,800
And I don't know whether we can
tonight because it's something

1162
01:23:21,800 --> 01:23:27,100
that gets it's very detailed,
but I'm game.

1163
01:23:27,100 --> 01:23:29,700
If you are you have all the time
you want.

1164
01:23:29,900 --> 01:23:34,100
Aunt our country operates and
what is called of our banking

1165
01:23:34,100 --> 01:23:37,600
system operates and what is
called fractional Reserve basis

1166
01:23:40,000 --> 01:23:46,600
you take 100,000 e just guy and
you go to your bank and you put

1167
01:23:46,600 --> 01:23:50,200
it in.
Now, I mentioned earlier and

1168
01:23:50,200 --> 01:23:52,600
this is what happens.
Every bank at the end of each

1169
01:23:52,600 --> 01:23:58,000
day, has to make sure that their
Bank, their accounts.

1170
01:23:58,600 --> 01:24:01,500
In terms of money, they have
loaned out assets and

1171
01:24:01,500 --> 01:24:04,500
liabilities come into a certain
balanced.

1172
01:24:05,300 --> 01:24:11,800
They are allowed to loan out.
As much as 90%.

1173
01:24:13,500 --> 01:24:20,600
Of that 100,000 that you just
put in, WoW, to the extent that

1174
01:24:20,600 --> 01:24:26,000
they are already in Balance.
So let's just say that all of

1175
01:24:26,000 --> 01:24:30,200
the debits and credits that day
the liabilities and everything

1176
01:24:30,200 --> 01:24:32,200
else.
They totally it up and they look

1177
01:24:32,200 --> 01:24:37,400
at it and say okay we're in
balance and and we have enough

1178
01:24:37,400 --> 01:24:41,200
of a surplus that they can loan
out.

1179
01:24:42,100 --> 01:24:46,500
And not because that's directi
requirement and I'm talking

1180
01:24:46,500 --> 01:24:49,500
about it in pretty simple terms
because I want people to

1181
01:24:49,500 --> 01:24:51,500
understand what's really
happening because it's a

1182
01:24:51,508 --> 01:24:55,100
combination of everything.
That's all the transactions

1183
01:24:55,100 --> 01:24:57,400
going through the bank
withdrawals and everything else,

1184
01:24:58,600 --> 01:25:03,100
and it's on a system-wide basis.
So but each individual Bank, I

1185
01:25:03,900 --> 01:25:10,200
can loan out, 90% of whatever
they take in and then they have

1186
01:25:10,200 --> 01:25:12,900
to make sure that they're in
balance, that way that they

1187
01:25:12,900 --> 01:25:15,500
meet.
That still, here's an extra

1188
01:25:15,500 --> 01:25:19,100
amount they loan ninety thousand
dollars out.

1189
01:25:19,200 --> 01:25:22,200
Now, your money is still on
deposit, even though they've

1190
01:25:22,200 --> 01:25:26,100
loan that 90,000, if you go in
there, you can still get your

1191
01:25:26,100 --> 01:25:28,500
hundred thousand dollars.
Okay.

1192
01:25:28,900 --> 01:25:31,400
Okay.
Putting your bank, they blown

1193
01:25:31,400 --> 01:25:34,100
it.
Somebody else Somebody else gets

1194
01:25:34,100 --> 01:25:37,200
a say, it's a small businessman.
He gets his money.

1195
01:25:37,700 --> 01:25:44,400
He's got a car dealership.
He's got this 90,000, he needs.

1196
01:25:45,700 --> 01:25:51,800
He deposits in his bank.
Or he could deposit it right

1197
01:25:51,800 --> 01:25:54,700
back in that bag, just to pet,
doesn't matter.

1198
01:25:55,600 --> 01:25:58,700
Guess what?
The bank says, Hey we've got 90

1199
01:25:58,700 --> 01:26:04,100
thousand dollars here.
We can loan out 10% of that.

1200
01:26:05,900 --> 01:26:11,700
So they do.
And this goes on and on and the

1201
01:26:11,700 --> 01:26:15,400
multiple some people have done
some studies but it ends up

1202
01:26:15,400 --> 01:26:18,800
being that from a certain point
of origin.

1203
01:26:19,400 --> 01:26:24,000
It works out to be an Eightfold
increase based on that original

1204
01:26:24,100 --> 01:26:27,300
amount.
That's inflation.

1205
01:26:28,200 --> 01:26:33,900
That money was created by the
bank to land and collect

1206
01:26:33,900 --> 01:26:37,200
interest.
That's the daily activity of the

1207
01:26:37,200 --> 01:26:42,300
banking system and that alone
could cause a collapse in our

1208
01:26:42,300 --> 01:26:44,800
system.
Now, you want to talk about Bank

1209
01:26:44,800 --> 01:26:48,900
runs and all that forget, the
Federal Reserve, See, that's

1210
01:26:48,900 --> 01:26:53,500
part of the Federal Reserve.
They're there to provide an

1211
01:26:53,500 --> 01:26:57,700
environment and a structure for
the member banks.

1212
01:26:57,700 --> 01:27:01,500
They can keep an eye on them.
You hear all the concern about

1213
01:27:01,500 --> 01:27:07,100
Capital requirements.
That's part of that, that

1214
01:27:07,100 --> 01:27:10,400
creates an environment.
Now, these Banks can do what

1215
01:27:10,400 --> 01:27:12,800
they do.
Best lend, money, and collect

1216
01:27:12,800 --> 01:27:16,000
interest.
They're not really lending your

1217
01:27:16,000 --> 01:27:22,200
money.
You are basing that loan on the

1218
01:27:22,200 --> 01:27:27,200
money, you've deposited, but you
have a demand on that and it's

1219
01:27:27,200 --> 01:27:31,900
every bit as great as the 90,000
that that person took and put in

1220
01:27:31,900 --> 01:27:35,100
his bank.
And and so you know, they can

1221
01:27:35,100 --> 01:27:39,000
say well it's offset the
liabilities all said well that's

1222
01:27:39,000 --> 01:27:42,500
how that's what happens when too
many people want their money.

1223
01:27:43,400 --> 01:27:46,100
For whatever reason and they go
to the bank, say Hey, where's my

1224
01:27:46,100 --> 01:27:47,400
money?
I want my money.

1225
01:27:48,100 --> 01:27:50,500
Well, it's not your money that
they loan out.

1226
01:27:50,500 --> 01:27:54,400
They just loaned out too much,
gotcha.

1227
01:27:54,600 --> 01:27:58,100
He said you and you can look at
it this way.

1228
01:27:58,300 --> 01:28:02,500
If you give your friend money to
keep for you safe, you trust him

1229
01:28:02,500 --> 01:28:05,400
and they do this and they do
some things for and maybe

1230
01:28:05,400 --> 01:28:07,200
they're not irresponsible with
it.

1231
01:28:08,300 --> 01:28:12,800
But they'll end it and now it's
in different places but you

1232
01:28:12,800 --> 01:28:19,000
decide you need that money.
Well, you go to my say, well you

1233
01:28:19,000 --> 01:28:21,200
and everybody else leads it
right now.

1234
01:28:21,200 --> 01:28:26,200
We just don't have it.
Because they have see.

1235
01:28:26,800 --> 01:28:30,800
All right.
Now there's detail with this,

1236
01:28:30,800 --> 01:28:32,900
that's important to understand
it.

1237
01:28:32,900 --> 01:28:37,900
And and there's an article on my
site called the think the, the

1238
01:28:37,900 --> 01:28:40,800
elephant in the room,
fractional, Reserve banking.

1239
01:28:41,300 --> 01:28:47,300
So, anybody wants to get a
clearer picture of how banks

1240
01:28:47,300 --> 01:28:53,200
operate, this means your bank,
my bank and this is the way it's

1241
01:28:53,200 --> 01:28:58,300
been.
And this to me is a bigger risk.

1242
01:29:00,600 --> 01:29:04,600
It's certainly as much of a
concern as these other things.

1243
01:29:04,700 --> 01:29:08,300
You know, the big picture that
we've been talking about, it

1244
01:29:08,300 --> 01:29:13,900
does seem like it's constantly.
I have to admit, it seems

1245
01:29:13,900 --> 01:29:16,800
somewhat impressive that we've
been able to operate like that

1246
01:29:16,800 --> 01:29:18,700
for so long.
Right?

1247
01:29:18,700 --> 01:29:22,200
I mean, absolutely.
In fact, I don't know how it's

1248
01:29:22,200 --> 01:29:25,400
tiptoe after you explain that to
me I don't know how it's tipped

1249
01:29:25,400 --> 01:29:29,500
over thus far, right?
I suppose, I suppose that's

1250
01:29:30,100 --> 01:29:33,000
Maybe a big argument for God is
that hey we haven't completely

1251
01:29:33,000 --> 01:29:36,700
gone bankrupt yet because I
don't know how it's tipped over.

1252
01:29:38,500 --> 01:29:43,500
Yeah it's and this is the thing.
This is these are the things

1253
01:29:43,500 --> 01:29:48,900
that people most people aren't
aware of and if they are they

1254
01:29:48,900 --> 01:29:51,300
say well it's worked, you know,
long enough.

1255
01:29:51,300 --> 01:29:55,300
So maybe it's okay.
You know, I don't stop and think

1256
01:29:55,300 --> 01:29:58,500
about it every time I enter an
exit, my bank but on the other

1257
01:29:58,500 --> 01:30:02,500
hand, I think We were looking at
problems with the system.

1258
01:30:02,800 --> 01:30:07,600
We can see that, you know,
there's definitely a risk here

1259
01:30:07,600 --> 01:30:12,600
and it's a big one.
And if they Dove Tails, I think

1260
01:30:12,600 --> 01:30:15,300
with all these other things.
Now, you can see, you know, if

1261
01:30:15,300 --> 01:30:20,800
you go back and look at read
about the history of events in

1262
01:30:20,800 --> 01:30:23,600
the Roaring 20s leading up to
the depression.

1263
01:30:23,600 --> 01:30:27,700
It's a real eye-opener stock
market crash and everything else

1264
01:30:27,800 --> 01:30:33,700
because you'll see how active
economic activity generated by

1265
01:30:33,700 --> 01:30:38,800
the feds willingness to extend
cheap credit, you know, be

1266
01:30:38,900 --> 01:30:45,000
Before the stock market crash
occurred Banks because they were

1267
01:30:45,000 --> 01:30:49,400
direct lenders to investors.
At that time, we're Landing as

1268
01:30:49,400 --> 01:30:55,100
much as two-thirds of the value
of new Securities, purchase to

1269
01:30:55,100 --> 01:30:59,100
Ordinary People.
To invest in stocks.

1270
01:31:00,400 --> 01:31:05,700
Now, you look at today, we might
not be quite that liberal in

1271
01:31:05,700 --> 01:31:08,900
terms of direct margin loans,
but the margin loan still

1272
01:31:08,900 --> 01:31:12,200
exists.
The volatility is greater the

1273
01:31:12,200 --> 01:31:18,000
risk is greater and you also
have products that are

1274
01:31:18,000 --> 01:31:23,300
leveraged.
You can buy ETFs, exchange

1275
01:31:23,300 --> 01:31:28,300
traded funds that have leverage
built into them and their

1276
01:31:28,300 --> 01:31:35,700
purpose is to create.
And affect more than one to two

1277
01:31:35,700 --> 01:31:39,200
times, whatever.
The market action is whether

1278
01:31:39,200 --> 01:31:42,400
it's an individual stock, or a
group of stocks in the market

1279
01:31:42,400 --> 01:31:45,400
itself.
So the Leverage is all through

1280
01:31:45,400 --> 01:31:49,900
the system.
And again it's not just Wall

1281
01:31:49,900 --> 01:31:53,700
Street, but then we've got
ordinary economic activity.

1282
01:31:53,800 --> 01:31:55,900
You have student loans car
loans.

1283
01:31:57,000 --> 01:31:59,400
Real estate.
I mean, it goes on and on.

1284
01:32:01,200 --> 01:32:05,600
Okay.
That's, that's a pretty sobering

1285
01:32:05,600 --> 01:32:10,100
thought.
If you're willing and I

1286
01:32:10,100 --> 01:32:15,900
understand that a lot of this is
wildly unpredictable as you

1287
01:32:15,900 --> 01:32:20,700
stated before.
Do you foresee?

1288
01:32:22,600 --> 01:32:27,300
Inflation and economic struggle.
Getting worse from this point

1289
01:32:27,300 --> 01:32:29,500
forward, or do you see a
rebound?

1290
01:32:30,100 --> 01:32:32,000
Do you think we're at the bottom
of things?

1291
01:32:32,600 --> 01:32:36,200
What does your gut tell you is a
guy who's worked, you know,

1292
01:32:36,200 --> 01:32:38,900
you've worked in this industry
for 50 years.

1293
01:32:39,600 --> 01:32:46,800
You've advised clients, you
know, as as a as a A financial

1294
01:32:46,800 --> 01:32:50,100
advisor.
What do you see down the road

1295
01:32:50,100 --> 01:32:54,100
here in the next?
Let's just say next 6 months.

1296
01:32:56,000 --> 01:33:00,300
I generally don't make
predictions of that kind and

1297
01:33:00,300 --> 01:33:02,600
especially not over the next six
months.

1298
01:33:03,100 --> 01:33:09,500
But what I will tell you is this
we are closer to economic

1299
01:33:09,500 --> 01:33:13,000
cataclysm that at any other time
in our history.

1300
01:33:13,500 --> 01:33:17,700
I believe that's my personal
opinion even more so than

1301
01:33:17,900 --> 01:33:20,400
stagflation in the 70s under
Carter go.

1302
01:33:20,400 --> 01:33:27,300
Absolutely absolutely.
I also believe that.

1303
01:33:30,400 --> 01:33:38,100
That the possibility is such
that we could see things happen

1304
01:33:38,100 --> 01:33:44,700
overnight anytime, or it might
take a few more years.

1305
01:33:45,000 --> 01:33:47,700
And the only reason I say that
is because there have been times

1306
01:33:47,700 --> 01:33:52,700
in the past where I can't figure
out how they were able to pull a

1307
01:33:52,700 --> 01:33:56,500
rabbit out of the Hat.
Every single time I really

1308
01:33:56,500 --> 01:34:01,000
thought 2020 was like each time
it Something happens.

1309
01:34:01,000 --> 01:34:03,400
I'm like, what are they going to
do now?

1310
01:34:03,700 --> 01:34:05,600
How are they going to resolve
this?

1311
01:34:06,000 --> 01:34:12,700
We just watched everything drop
by 30 to 40% in the space of a

1312
01:34:12,700 --> 01:34:18,400
couple of weeks to years ago and
I'm like and then they're going

1313
01:34:18,400 --> 01:34:21,800
to shut the economy down.
There are people not to produce

1314
01:34:21,900 --> 01:34:24,400
what we're going to do to
oppression and I really thought

1315
01:34:24,400 --> 01:34:29,900
we were I'm amazed at the
resiliency and that's the thing

1316
01:34:29,900 --> 01:34:34,200
is, we find ourselves.
No matter what seems to be

1317
01:34:34,200 --> 01:34:39,100
happening some way to pull
ourselves out of it.

1318
01:34:40,300 --> 01:34:42,500
I don't know whether we can do
that again.

1319
01:34:43,100 --> 01:34:47,200
I just don't, but I don't want
to say that that possibilities

1320
01:34:47,200 --> 01:34:50,900
off the table.
I just think that we have to say

1321
01:34:51,300 --> 01:34:56,500
more realistically that the odds
of that are greater than they

1322
01:34:56,500 --> 01:35:01,000
ever have been.
And the significance will be

1323
01:35:01,700 --> 01:35:05,700
much much greater in other words
that the effects of anything

1324
01:35:05,700 --> 01:35:12,600
like that the ability of anyone
To counter that or bring us back

1325
01:35:12,600 --> 01:35:17,800
to anything normal.
Just go to me near like possible

1326
01:35:17,900 --> 01:35:20,400
if you can.
Well, I appreciate you saying

1327
01:35:20,400 --> 01:35:24,400
that because So I work in the
construction industry.

1328
01:35:24,400 --> 01:35:28,900
I'm a land surveyor and I've
seen, I saw 2008 right?

1329
01:35:28,900 --> 01:35:31,200
Hip my profession, especially
hard, right?

1330
01:35:31,200 --> 01:35:34,400
If you were an engineer and
architect land surveyor

1331
01:35:35,300 --> 01:35:38,600
developer, it just puts you flat
on your butt, right?

1332
01:35:38,600 --> 01:35:40,300
It was just the kind of the way
it was.

1333
01:35:42,300 --> 01:35:48,400
I look back at those times and
I'm like, okay, so, It seems to

1334
01:35:48,400 --> 01:35:52,000
be that, right?
We see there's almost this

1335
01:35:52,000 --> 01:35:54,000
feeling of an overheating
economy, not.

1336
01:35:54,000 --> 01:35:57,600
And again, I don't have your
expertise at all, so I could be

1337
01:35:57,600 --> 01:35:59,600
wrong.
But I got this feeling of an

1338
01:35:59,600 --> 01:36:04,800
overheating economy on top of
every everything else and and,

1339
01:36:05,400 --> 01:36:08,100
and again, I could be totally
wrong because I again, I'm not

1340
01:36:08,100 --> 01:36:11,800
as smart as you when it comes to
this stuff, it just, there's a

1341
01:36:11,808 --> 01:36:14,600
long bells in my gut and I don't
do not know why.

1342
01:36:14,600 --> 01:36:17,100
And that's why I had you had you
on.

1343
01:36:17,600 --> 01:36:21,600
Um, you said something that kind
of spooked me, you said we're

1344
01:36:21,600 --> 01:36:25,600
closer to economic cataclysm
than we've ever been before.

1345
01:36:26,900 --> 01:36:29,400
Let's just say the worst happens
because I want to paint the

1346
01:36:29,400 --> 01:36:32,600
picture and then we're going to
talk about some ways that we can

1347
01:36:32,600 --> 01:36:35,700
weather this storm, right?
I don't want to end it on a bad

1348
01:36:35,700 --> 01:36:39,300
note, what does economic
cataclysm look like for the

1349
01:36:39,300 --> 01:36:46,000
average American family?
I think that's largely unknown

1350
01:36:46,000 --> 01:36:51,100
because I think our whole way of
thinking will be forced to

1351
01:36:51,100 --> 01:36:56,400
change, but even if we just go
back and say, what if it was a

1352
01:36:56,400 --> 01:37:01,900
traditional depression and you
have 25% of the workforce

1353
01:37:01,900 --> 01:37:08,300
unemployed and it stays at that
level, that's my Elder than the

1354
01:37:08,300 --> 01:37:12,500
potential were talking about.
But it's significant enough.

1355
01:37:12,600 --> 01:37:18,500
That would have a much greater
impact on society and economic

1356
01:37:18,500 --> 01:37:23,600
activity than anything.
We faced in this Century or

1357
01:37:23,600 --> 01:37:26,500
anything.
We faced since the Great

1358
01:37:26,500 --> 01:37:33,700
Depression of the 1930s so suit,
you think what would happen?

1359
01:37:33,900 --> 01:37:38,100
How would things be?
I mean you had millionaires who

1360
01:37:38,100 --> 01:37:42,500
were on street corners selling
apples and pencils you had

1361
01:37:42,600 --> 01:37:49,200
People jumping out a Windows.
You had ten cities, Bank bank

1362
01:37:49,200 --> 01:37:53,900
failures bread lines.
I mean, soup kitchens, but they

1363
01:37:53,900 --> 01:37:57,000
were on every corner.
It's a, you go to a certain part

1364
01:37:57,000 --> 01:37:59,800
of town and here's the place,
you can get something to eat.

1365
01:38:00,100 --> 01:38:04,100
They were on every block.
I mean, it economic depression

1366
01:38:04,100 --> 01:38:10,900
is exactly what it was and that
is bad enough without it getting

1367
01:38:10,900 --> 01:38:12,500
that point.
I think.

1368
01:38:12,900 --> 01:38:16,100
Most people when they're
thinking of something bad at

1369
01:38:16,100 --> 01:38:18,100
this point, think?
Okay?

1370
01:38:18,100 --> 01:38:22,200
Stocks could drop in half but
then the federal step in and

1371
01:38:22,200 --> 01:38:25,700
I'll just buy a bunch of stuff
then and, you know, it'll go

1372
01:38:25,700 --> 01:38:31,500
back up again but it would
extend much farther than asset

1373
01:38:31,500 --> 01:38:36,300
prices.
And I think that I think we'd

1374
01:38:36,300 --> 01:38:42,700
see defaults uncrowded that
would they would make our system

1375
01:38:42,700 --> 01:38:47,000
and structure questionable in
terms of what are we doing.

1376
01:38:47,000 --> 01:38:51,900
These people, that day traders
to me is the perfect example of

1377
01:38:53,400 --> 01:38:58,800
reaching a point where We've
gone too far.

1378
01:38:59,300 --> 01:39:01,600
It's too easy.
It's too easy.

1379
01:39:01,600 --> 01:39:04,300
Nobody thinks fundamentally
anymore.

1380
01:39:04,900 --> 01:39:07,800
All I think about is what's the
next big thing.

1381
01:39:07,800 --> 01:39:11,800
And, you know, if I can if I can
bet on it, I am.

1382
01:39:12,100 --> 01:39:14,500
So they're extremely price
conscious.

1383
01:39:14,700 --> 01:39:18,800
They don't buy stocks because
it's a good investment.

1384
01:39:19,700 --> 01:39:23,200
They buy them because they think
the price is going to go up or

1385
01:39:23,200 --> 01:39:29,100
they've seen the price go up.
So but but I like every wants to

1386
01:39:29,100 --> 01:39:32,300
know all these, just throw out a
question and I say, like, you

1387
01:39:32,300 --> 01:39:37,100
know what, if there is no stock
market, I mean, if people could

1388
01:39:37,100 --> 01:39:41,200
see what the stock market and
activity surrounding, it was

1389
01:39:41,200 --> 01:39:45,700
like after the crash, they be
utterly.

1390
01:39:45,700 --> 01:39:50,900
Shocked was like, you know,
you're standing around on the

1391
01:39:50,900 --> 01:39:54,300
floor and nothing's happening.
Nobody nothing is happening,

1392
01:39:54,300 --> 01:39:58,200
nobody cared, nobody wanted the
price actually didn't mean

1393
01:39:58,200 --> 01:40:01,000
anything.
There were no customers right

1394
01:40:01,000 --> 01:40:05,700
now, assumes there was a market.
What if there is no Market, what

1395
01:40:05,700 --> 01:40:09,600
happens if things get so bad.
And this is where people, you

1396
01:40:09,600 --> 01:40:12,700
know, there are a lot of people
who predict, well, if you want

1397
01:40:12,700 --> 01:40:21,700
to protect yourself, do this by
this own this What happens if

1398
01:40:21,700 --> 01:40:25,800
things are so bad that there's
no market place for you to do

1399
01:40:25,800 --> 01:40:28,700
this?
How do you sell something that's

1400
01:40:28,700 --> 01:40:31,600
important when nobody has any
money to buy it?

1401
01:40:33,100 --> 01:40:35,200
I mean we can say well what's
the price of it?

1402
01:40:35,200 --> 01:40:37,800
Or what's it?
How valuable is something?

1403
01:40:37,800 --> 01:40:39,900
And see.
I think this is going to call

1404
01:40:39,900 --> 01:40:42,600
into question.
People are going to learn really

1405
01:40:42,600 --> 01:40:47,400
fast, what's valuable what has
value and once just high-priced.

1406
01:40:48,100 --> 01:40:51,400
So you look at stocks in
general, All you SE.

1407
01:40:52,600 --> 01:40:55,000
Are they overpriced?
I believe they are.

1408
01:40:55,300 --> 01:40:58,500
I think all Financial assets
are, overpriced doesn't mean

1409
01:40:58,500 --> 01:41:01,800
they don't have a value.
It just means they are all over

1410
01:41:01,800 --> 01:41:04,100
priced at this time.
Severely.

1411
01:41:04,100 --> 01:41:08,800
Overpriced where's that value?
Where does that come into play?

1412
01:41:09,500 --> 01:41:13,800
Does it come into play at a
reasonable point or an

1413
01:41:13,800 --> 01:41:17,000
unreasonable point?
Because in most cases we go to

1414
01:41:17,000 --> 01:41:23,500
The Other Extreme at some point
and that Other Extreme says, The

1415
01:41:23,500 --> 01:41:30,300
value conscious investor will be
screaming wondering why?

1416
01:41:30,500 --> 01:41:35,100
The price hasn't responded.
And it just sits there.

1417
01:41:36,600 --> 01:41:40,400
And the thing is that nobody's
immune to this because

1418
01:41:40,700 --> 01:41:46,700
eventually You have a depression
even hyperinflation ends in a

1419
01:41:46,708 --> 01:41:52,600
depression.
And if we go to deflation, gold

1420
01:41:52,600 --> 01:41:56,500
and silver, they'll go in the
tank to, at least, you know, you

1421
01:41:56,500 --> 01:42:01,700
have a certain value if the
system Becomes.

1422
01:42:03,500 --> 01:42:07,200
Unworkable.
So, you know, you can say, okay,

1423
01:42:07,200 --> 01:42:09,500
what's the value of my gold or
silver?

1424
01:42:09,500 --> 01:42:12,000
What can I buy with it?
A lot of that.

1425
01:42:12,000 --> 01:42:15,800
Depends on what happens when
something like this occurs.

1426
01:42:18,100 --> 01:42:21,200
But I think too many people are
too.

1427
01:42:21,900 --> 01:42:24,800
It's just too easy to.
I don't want to think about it.

1428
01:42:24,800 --> 01:42:28,400
I don't want to ignore it.
I mean, I want to ignore it.

1429
01:42:28,400 --> 01:42:37,600
So I do know they say, well, I
could happen, but so fine and I

1430
01:42:37,600 --> 01:42:40,200
think it will.
And then what makes things

1431
01:42:40,200 --> 01:42:45,500
worse?
Is the government will step in

1432
01:42:45,500 --> 01:42:48,700
and and fight it.
Instead of allowing, you know,

1433
01:42:48,700 --> 01:42:52,800
when somebody gets sick in order
to really get better and heal

1434
01:42:52,800 --> 01:42:56,700
themselves, they have to be sick
because that's how the body

1435
01:42:56,700 --> 01:43:00,400
heals, but they don't want to
deal with that.

1436
01:43:00,500 --> 01:43:06,100
So they take some pills and and
they try to cover up the

1437
01:43:06,100 --> 01:43:09,200
symptoms and then they force
himself to go back to work and

1438
01:43:09,200 --> 01:43:13,300
say yeah, I can't do that.
And so the illness is still

1439
01:43:13,300 --> 01:43:16,300
there.
Maybe it's in hibernation, maybe

1440
01:43:16,300 --> 01:43:20,200
they're Strong enough and young
enough that they can get you

1441
01:43:20,200 --> 01:43:23,600
know put it off or get gets
through it.

1442
01:43:23,900 --> 01:43:27,700
But I think more and more people
are going to be unable to handle

1443
01:43:27,700 --> 01:43:32,900
what happens and then we'll see,
you know the potential

1444
01:43:32,900 --> 01:43:36,100
free-for-all really?
I mean that's a possibility that

1445
01:43:36,100 --> 01:43:41,300
most people just won't consider.
I don't want to see that but

1446
01:43:41,400 --> 01:43:47,500
you'd have to be with you.
Look at the history of Money.

1447
01:43:47,800 --> 01:43:52,100
And what happens to countries
when they ignore fundamental

1448
01:43:52,100 --> 01:44:00,100
economic law for 100 years and
and see what happens to their

1449
01:44:01,100 --> 01:44:05,600
finances and their money and
their economic activity.

1450
01:44:06,300 --> 01:44:09,000
And and yet we're talking a
worldwide basis.

1451
01:44:09,600 --> 01:44:14,300
I just I don't see I think it's
so great that we can't even sit

1452
01:44:14,300 --> 01:44:18,700
here and speculate in the How
bad it could be, if it happens.

1453
01:44:18,900 --> 01:44:24,600
Yeah, you know, I agree with you
when I was Back in 2008 when

1454
01:44:24,600 --> 01:44:27,800
everything went down.
I remember and again, I don't

1455
01:44:27,800 --> 01:44:31,500
think it did me much good, but I
got my hands on everything on

1456
01:44:31,500 --> 01:44:34,100
economy.
I could could grab right.

1457
01:44:34,300 --> 01:44:38,500
Adam Smith In The Wealth of
Nations read, you know, articles

1458
01:44:38,500 --> 01:44:43,200
by Keynes and Hayek, I tried to
understand as much as I could.

1459
01:44:43,200 --> 01:44:47,200
And like I said, I don't think
it did much good, but in my kids

1460
01:44:47,200 --> 01:44:49,000
were significantly younger than
right?

1461
01:44:49,000 --> 01:44:53,700
I mean, we're talking.
What 2008?

1462
01:44:53,700 --> 01:44:59,400
Now it's 2022.
So gosh we you know 15 years or

1463
01:44:59,400 --> 01:45:05,700
so on 14 years and I remember
thinking if yeah I remember

1464
01:45:05,700 --> 01:45:08,100
there was a moment where the
light bulb went on whether it

1465
01:45:08,100 --> 01:45:11,200
was a correct idea or a false
idea.

1466
01:45:11,200 --> 01:45:14,800
The I remember thinking this
could end up where, where you're

1467
01:45:14,800 --> 01:45:19,000
going back to barter apples for
something else, right?

1468
01:45:19,400 --> 01:45:24,100
And, and even Even golden silver
at least for a little while

1469
01:45:24,100 --> 01:45:26,900
wouldn't necessarily have any
value because it wouldn't have

1470
01:45:26,900 --> 01:45:30,500
immediate use if that makes any
sense.

1471
01:45:31,100 --> 01:45:33,400
Sure.
And so to me that's that's kind

1472
01:45:33,400 --> 01:45:36,500
of what it always looked like
but I could be all wrong.

1473
01:45:36,600 --> 01:45:40,900
So I you know don't don't take
my word for that at all.

1474
01:45:41,500 --> 01:45:43,700
I don't think anybody really
knows.

1475
01:45:43,700 --> 01:45:49,900
I just I think we have to look
at history first of Clues and

1476
01:45:49,900 --> 01:45:51,500
recognized.
As that.

1477
01:45:52,900 --> 01:45:57,600
The potential for something
significant is there.

1478
01:45:57,600 --> 01:46:04,000
And, and, and the other thing is
that we've had a system in place

1479
01:46:04,000 --> 01:46:09,600
where there's always an attempt
to suppress, or manipulate the

1480
01:46:09,600 --> 01:46:13,400
natural consequences because
nobody wants to go through.

1481
01:46:13,400 --> 01:46:17,100
So we even have a population who
absolutely.

1482
01:46:17,100 --> 01:46:22,000
If they were faced with it,
would rather have the government

1483
01:46:22,000 --> 01:46:25,000
intervenes.
I mean to do what they think,

1484
01:46:25,100 --> 01:46:30,800
will help solve or modify a
problem because they don't want

1485
01:46:30,800 --> 01:46:33,100
to deal with it, and it doesn't
matter.

1486
01:46:33,500 --> 01:46:37,700
And I'm not saying all people in
general are responsible for this

1487
01:46:37,700 --> 01:46:40,800
because I don't feel that way.
It's just that we're all going

1488
01:46:40,800 --> 01:46:46,600
to feel it.
And there's not much of a way to

1489
01:46:46,600 --> 01:46:50,800
get around that, you know, it's
like be aware being

1490
01:46:50,800 --> 01:46:55,800
psychologically prepared.
Might As important as what we

1491
01:46:55,800 --> 01:46:58,600
think we can do financially,
right?

1492
01:46:58,600 --> 01:47:00,900
No, I agree with you
wholeheartedly.

1493
01:47:00,900 --> 01:47:05,000
I remember I remember you know
again because it's the only

1494
01:47:05,000 --> 01:47:06,700
thing I really have reference to
right.

1495
01:47:06,700 --> 01:47:12,100
I mean, I was born in 77.
I was under my parents roof

1496
01:47:12,100 --> 01:47:14,500
through most of the 90s, I
guess.

1497
01:47:14,500 --> 01:47:19,200
Halfway through the 90s, the
only the only reference I have

1498
01:47:19,200 --> 01:47:24,100
is 08 but I remember I remember
an 08 And all the sudden I had

1499
01:47:24,100 --> 01:47:28,600
to get real honest with myself
because I could no longer Define

1500
01:47:28,600 --> 01:47:33,100
who I was based simply on what I
did for a living, right?

1501
01:47:34,200 --> 01:47:36,500
And I think we all do that.
I think it's all natural and

1502
01:47:36,600 --> 01:47:40,100
it's very natural to do that,
but I remember I just take a

1503
01:47:40,108 --> 01:47:43,000
step back and go.
So, who am I?

1504
01:47:43,000 --> 01:47:45,800
Am I a surveyor or am I my
wife's husband?

1505
01:47:46,100 --> 01:47:50,000
And my kids is father and and I
think you you actually hit on a

1506
01:47:50,000 --> 01:47:53,400
really good point there, that,
that psychological I think it's

1507
01:47:53,400 --> 01:47:58,300
going to to be as important,
maybe even more.

1508
01:47:58,300 --> 01:48:05,900
So if things do go south in a,
in a bad way, Now, we've kind of

1509
01:48:05,900 --> 01:48:10,000
talked about what that would
look like, potentially right.

1510
01:48:10,500 --> 01:48:14,600
My next question is what's a I
come to you.

1511
01:48:14,700 --> 01:48:19,300
I have two kids, a wife, two
kids at home.

1512
01:48:19,300 --> 01:48:22,200
I should say there that are
under the age of 16.

1513
01:48:22,600 --> 01:48:25,100
I do want to be able to help out
my adult kids.

1514
01:48:25,600 --> 01:48:29,000
And I come to you, and I say,
Kelsey, I want to protect myself

1515
01:48:29,000 --> 01:48:34,600
as much as I can to weather.
An economic storm coming, right?

1516
01:48:34,600 --> 01:48:40,900
What would you recommend me to
do part of this has to do with

1517
01:48:41,200 --> 01:48:48,900
how strongly you believe or fear
that particular event and its

1518
01:48:48,900 --> 01:48:51,700
occurrence sooner rather than
later?

1519
01:48:54,000 --> 01:48:56,700
It's a combination of several
things.

1520
01:48:56,700 --> 01:49:00,600
Someone comes to me and says,
look, I absolutely am convinced.

1521
01:49:00,600 --> 01:49:04,300
We're going to have a crash,
it's going to be a crash.

1522
01:49:04,300 --> 01:49:08,000
We're not going to recover from,
it's going to affect everything

1523
01:49:08,000 --> 01:49:11,700
and everybody in a significant
way, it's going to last a long

1524
01:49:11,700 --> 01:49:16,100
time and there's a lot of
unknowns and I just simply want

1525
01:49:16,100 --> 01:49:19,300
to put all my efforts into
protecting myself as well as

1526
01:49:19,300 --> 01:49:22,900
possible against that scenario
and event.

1527
01:49:23,900 --> 01:49:27,000
Okay, then I would advise you a
certain way, okay?

1528
01:49:27,300 --> 01:49:30,400
But to the extent, you have
family.

1529
01:49:31,500 --> 01:49:34,200
And to the extent, you recognize
that.

1530
01:49:37,500 --> 01:49:43,000
The probability might not be
100% that it's going to happen

1531
01:49:44,000 --> 01:49:47,700
in the next 10 or 20 years or
maybe your lifetime.

1532
01:49:48,900 --> 01:49:52,100
And and so we look at all of
those and then we say Okay based

1533
01:49:52,100 --> 01:49:57,200
on and you've got Young children
in a responsibility.

1534
01:49:57,200 --> 01:50:02,700
There is like, you know, you got
to look at things say, is that

1535
01:50:02,700 --> 01:50:06,400
realistic to plan that way?
Give it to where you are.

1536
01:50:06,400 --> 01:50:08,900
I'm not saying it is and I'm
just saying you got to look at

1537
01:50:08,900 --> 01:50:11,600
all that.
So this is where the psychology

1538
01:50:11,600 --> 01:50:16,500
enters in and where the
convictions of the person

1539
01:50:16,500 --> 01:50:19,500
relatives to what they're trying
to accomplish.

1540
01:50:19,500 --> 01:50:23,400
And all that, having said all
that and recognizing everybody's

1541
01:50:23,500 --> 01:50:25,500
Is going to vary on how they do
that.

1542
01:50:25,500 --> 01:50:31,300
I'd probably still lean towards
saying, you can't bet the farm

1543
01:50:32,000 --> 01:50:37,800
on one outcome.
It just it's unrealistic and I

1544
01:50:37,800 --> 01:50:46,000
told people most people don't
make the mistake Of betting on

1545
01:50:46,000 --> 01:50:50,200
the wrong thing.
They make the mistake of betting

1546
01:50:50,200 --> 01:50:53,600
on something to the exclusion of
other things.

1547
01:50:54,500 --> 01:50:59,400
So, no matter how strongly
someone feels about that, I

1548
01:50:59,400 --> 01:51:03,700
would be hard pressed to say,
okay, well, you know, let's put

1549
01:51:03,700 --> 01:51:08,100
it all here and do this, you
know, let's, let's function that

1550
01:51:08,100 --> 01:51:15,900
way and so I think, you know,
generally speaking, I'd say

1551
01:51:15,900 --> 01:51:20,000
what's real is, giving are given
our environment, how can you

1552
01:51:20,000 --> 01:51:25,900
accomplish some of that or most
of it and still recognize your

1553
01:51:25,900 --> 01:51:31,200
other responsibilities and the
possibility that maybe it won't

1554
01:51:31,200 --> 01:51:34,700
all just come down at once right
away?

1555
01:51:36,200 --> 01:51:39,700
So I would say, well, alright,
and I would never have said

1556
01:51:39,700 --> 01:51:45,500
this. 25 years ago.
But I would say, if you've got

1557
01:51:45,500 --> 01:51:52,200
the assets and the primary the
money, And you're comfortable

1558
01:51:52,200 --> 01:51:56,300
with where you live and pay off
your mortgage and own your

1559
01:51:56,300 --> 01:52:00,100
house.
Outright I was always tell

1560
01:52:00,100 --> 01:52:03,600
people carries big and mortgages
possible, do something else with

1561
01:52:03,600 --> 01:52:07,200
the money that's still might be
reasonable depending on an

1562
01:52:07,200 --> 01:52:11,200
individual situation.
And what they're trying to

1563
01:52:11,300 --> 01:52:14,400
accomplish, but I would be
thinking like well what am I

1564
01:52:14,400 --> 01:52:16,000
going to do with?
Because you have to look at what

1565
01:52:16,000 --> 01:52:18,300
you're going to do with it.
And given the scenario, we're

1566
01:52:18,300 --> 01:52:25,500
talking about where is value.
Is there value in your house,

1567
01:52:25,700 --> 01:52:28,300
your home?
Yeah, I'd say their value,

1568
01:52:28,300 --> 01:52:32,400
provide you a place to stay if
you pay it off the mortgage.

1569
01:52:34,000 --> 01:52:37,300
You generate income.
You don't have to make a

1570
01:52:37,308 --> 01:52:41,300
mortgage payment so you've
generated income by paying off

1571
01:52:41,300 --> 01:52:45,400
the mortgage.
So I would consider that versus

1572
01:52:45,400 --> 01:52:49,800
telling someone To maintain a
mortgage, unless they were in a

1573
01:52:49,800 --> 01:52:51,800
position where they said, no,
I'm just going to get up my

1574
01:52:51,800 --> 01:52:54,500
helicopter and I'm going to go
to my retreat on my private

1575
01:52:54,500 --> 01:52:58,900
island.
You know, you don't need to do

1576
01:52:58,900 --> 01:53:02,700
need to do that.
So what am I looking at how I

1577
01:53:02,700 --> 01:53:06,800
want to make sure that my money
is in value?

1578
01:53:07,200 --> 01:53:09,700
Not just something that's high
priced.

1579
01:53:10,500 --> 01:53:15,600
So I'm going to get actual value
out of my house, which says,

1580
01:53:15,700 --> 01:53:17,400
here's a place.
I can put some money.

1581
01:53:17,600 --> 01:53:20,900
Since I'm not sure what to do
with it otherwise so you got

1582
01:53:20,900 --> 01:53:23,800
that.
I would pay off my car and my

1583
01:53:23,800 --> 01:53:27,000
dad's never would have told
people that never.

1584
01:53:27,500 --> 01:53:30,600
Now, let's say, well, I'm
looking at myself personally and

1585
01:53:30,600 --> 01:53:34,400
say, pay off the car live in a
house.

1586
01:53:34,800 --> 01:53:37,500
You don't have a mortgage
payment that nobody's going to

1587
01:53:37,500 --> 01:53:43,700
come and say, throwing you out
or I'm taking this house or

1588
01:53:43,700 --> 01:53:46,300
whatever.
I don't want anything to get in

1589
01:53:46,300 --> 01:53:49,800
the way there.
So you want privacy and

1590
01:53:49,800 --> 01:53:55,400
seclusion and confidence that
this is your place, pay it off,

1591
01:53:55,600 --> 01:54:01,100
pay off the car, there's value
to those things I would want.

1592
01:54:02,100 --> 01:54:07,600
Some cash reserves, just cash on
hand somewhere that I can get my

1593
01:54:07,600 --> 01:54:11,300
hands on it.
I don't have to, I just need to

1594
01:54:11,300 --> 01:54:14,800
know that there isn't somebody
that's going to be in the way of

1595
01:54:14,800 --> 01:54:20,500
that in terms of doing it.
And I don't know what the system

1596
01:54:20,500 --> 01:54:23,400
you know what what what the
actual outcome whole.

1597
01:54:23,400 --> 01:54:27,000
So I can't say I wouldn't want
those hands.

1598
01:54:27,000 --> 01:54:31,000
So I want some cash reserves.
I want some a few silver coins.

1599
01:54:32,100 --> 01:54:36,800
And then for larger portions of,
well, I want to own physical

1600
01:54:36,800 --> 01:54:42,400
gold, not gold, mining shares,
and not ETFs.

1601
01:54:42,400 --> 01:54:46,400
And any of that I want physical
gold and I want to make sure

1602
01:54:46,400 --> 01:54:50,500
that I'm in control of it, that
I can be comfortable that I'm in

1603
01:54:50,500 --> 01:54:53,100
control of it.
I'm not saying how that would

1604
01:54:53,100 --> 01:54:56,000
work because they don't do
individual stuff.

1605
01:54:56,200 --> 01:54:59,400
I just, I look at it abroad by,
I can give some suggestions, you

1606
01:54:59,400 --> 01:55:03,100
know, and stuff like that.
But Primarily the point is

1607
01:55:03,900 --> 01:55:08,100
owning the physical commodity
and knowing that you're in

1608
01:55:08,100 --> 01:55:11,000
control of it.
So you have to trust your

1609
01:55:11,000 --> 01:55:16,200
sources and stuff like that.
A point beyond that.

1610
01:55:17,500 --> 01:55:22,200
I would like okay do you want to
say like out of your total?

1611
01:55:22,200 --> 01:55:26,300
Net worth, somebody feels
comfortable, putting 20% into

1612
01:55:26,300 --> 01:55:31,800
traditional Investments, 10%,
nothing, and on that basis.

1613
01:55:31,800 --> 01:55:36,100
Carve out a portion and say,
okay, I want, I want something

1614
01:55:36,100 --> 01:55:42,400
that I can rely on more so than
most things at, you know, as

1615
01:55:42,400 --> 01:55:45,400
much as I said it and it's so
ironic.

1616
01:55:45,400 --> 01:55:48,700
But I would have to say short
From treasury Securities,

1617
01:55:49,200 --> 01:55:53,100
they're not going to default.
I mean, if it ever gets to the

1618
01:55:53,100 --> 01:55:55,600
point that they do, everything
else is gone.

1619
01:55:56,300 --> 01:56:00,400
So but I don't want to do long
term because then I have the

1620
01:56:00,400 --> 01:56:04,000
risk of volatility with the
market value as interest rates

1621
01:56:04,000 --> 01:56:08,700
change, but the reliability of
the income stream and and

1622
01:56:08,700 --> 01:56:14,500
default or not at issue.
So short-term treasuries, you

1623
01:56:14,500 --> 01:56:21,500
know, they have those And you
know, beyond that again I would

1624
01:56:21,500 --> 01:56:25,600
say that that depends on
individuals circumstances.

1625
01:56:26,800 --> 01:56:29,300
So let's talk about gold here
for a minute.

1626
01:56:31,000 --> 01:56:34,800
I know a lot of guys will buy
gold on paper, right.

1627
01:56:34,900 --> 01:56:39,100
They'll just they'll just buy it
in paper and say look I can

1628
01:56:39,100 --> 01:56:42,300
always go down and redeem this
that's not necessarily the case,

1629
01:56:42,300 --> 01:56:45,500
right?
Correct.

1630
01:56:47,200 --> 01:56:50,900
I know the conditions.
You think about it?

1631
01:56:51,000 --> 01:56:53,000
What are the conditions that
might?

1632
01:56:54,000 --> 01:56:58,500
Trigger someone to want to go
get it they're usually not good

1633
01:56:58,500 --> 01:57:03,200
conditions and those are the
time when the vulnerability is

1634
01:57:03,200 --> 01:57:10,200
the greatest so I realize it's
convenient but that's where I

1635
01:57:10,200 --> 01:57:16,300
think it comes into play.
It's easy to Market and sell

1636
01:57:16,300 --> 01:57:21,500
products.
That are tied to Gold but aren't

1637
01:57:21,500 --> 01:57:25,500
really go.
So and that's wall Street's

1638
01:57:25,500 --> 01:57:28,500
answer, you want gold will give
you gold.

1639
01:57:31,200 --> 01:57:35,000
So I do.
And then what are they buying it

1640
01:57:35,000 --> 01:57:36,500
for?
Are they buying it?

1641
01:57:36,500 --> 01:57:40,500
Because they want to own some
physical gold or some gold

1642
01:57:40,500 --> 01:57:44,000
related items or are they
speculating?

1643
01:57:44,800 --> 01:57:49,100
About the price.
That would determine if you're

1644
01:57:49,100 --> 01:57:55,300
just speculating on the price
short or long term and not

1645
01:57:55,300 --> 01:58:00,400
necessarily long-term.
But shorter, then you know, a

1646
01:58:00,407 --> 01:58:04,000
paper product is probably okay.
If you understand what you're

1647
01:58:04,000 --> 01:58:09,500
doing, do that, if you want to
know that you own goal for gold

1648
01:58:09,500 --> 01:58:14,200
sake, then you need to think
about what you're buying and

1649
01:58:14,200 --> 01:58:19,600
your access to it.
Okay, so if I was to put that in

1650
01:58:19,600 --> 01:58:25,700
a different way, maybe if you're
looking at trading gold, right?

1651
01:58:25,700 --> 01:58:29,400
The paper stuff is fine.
But if you're buying gold is

1652
01:58:29,400 --> 01:58:32,700
like an insurance policy, you
want, the physical stuff we

1653
01:58:32,700 --> 01:58:37,300
want, the physical stuff.
Yeah, because and it's for

1654
01:58:37,300 --> 01:58:43,400
exactly the reasons we're
talking about, you don't want to

1655
01:58:43,400 --> 01:58:49,500
be dependent upon a scenario of
events.

1656
01:58:51,100 --> 01:58:57,400
That could get in the way of you
being able to accomplish your

1657
01:58:57,400 --> 01:59:02,100
goal.
Because you didn't get the

1658
01:59:02,100 --> 01:59:05,900
physical thing if you're if
you're looking at trading and

1659
01:59:05,900 --> 01:59:10,500
speculation, you think okay.
I portion of this, I'm betting

1660
01:59:10,500 --> 01:59:15,400
that goals going to go up or go
down x amount and this this

1661
01:59:15,400 --> 01:59:19,100
scenario is enough of a
possibility and I want to

1662
01:59:19,100 --> 01:59:21,700
protect against that.
And I'm willing to put this here

1663
01:59:21,800 --> 01:59:24,300
with the understanding when
you're doing something like

1664
01:59:24,300 --> 01:59:27,400
that.
That's money that you don't

1665
01:59:27,400 --> 01:59:34,600
feel, you have to have That's
how I approach when people get

1666
01:59:34,800 --> 01:59:38,200
to the more risky portions of
their Investment Portfolio.

1667
01:59:38,700 --> 01:59:40,600
Is this money?
You really need?

1668
01:59:40,900 --> 01:59:43,300
No.
It's just an element of the

1669
01:59:43,300 --> 01:59:47,300
diversification.
Could be a big payoff but if I

1670
01:59:47,300 --> 01:59:50,100
lose it all, it doesn't affect
everything.

1671
01:59:50,300 --> 01:59:54,100
If I take in these other steps,
Gotcha.

1672
01:59:54,400 --> 01:59:59,500
Okay.
So I know your website is called

1673
01:59:59,500 --> 02:00:03,600
Kelsey's goal.com.
Right Kelsey's goal, facts is

1674
02:00:03,600 --> 02:00:08,000
the name of the website.
The URL is Kelsey Williams

1675
02:00:08,000 --> 02:00:11,900
goal.com And what kind of stuff
can folks?

1676
02:00:11,900 --> 02:00:19,500
Find on there and about gold?
I write it from an educational

1677
02:00:19,500 --> 02:00:24,600
standpoint so when people go
there they can read something

1678
02:00:24,800 --> 02:00:30,500
that's going to help explain an
issue and it's fundamentally

1679
02:00:30,500 --> 02:00:33,100
based.
I've included some technical

1680
02:00:33,100 --> 02:00:39,300
things but the technical is
always to support or and

1681
02:00:39,300 --> 02:00:44,600
corroboration with fundamental
arguments, I'm not a traitor or

1682
02:00:44,600 --> 02:00:48,300
a Later, I don't like to predict
the price.

1683
02:00:48,500 --> 02:00:52,700
I like people to understand why
the price moves and most people

1684
02:00:52,700 --> 02:00:54,500
who are involved in the markets
today.

1685
02:00:54,500 --> 02:00:57,700
I don't think they have a clue.
I do not think they really

1686
02:00:57,700 --> 02:01:01,400
understand what is happening
with gold, no matter how much

1687
02:01:01,800 --> 02:01:06,000
people talk about the economy
and inflation and all these

1688
02:01:06,000 --> 02:01:09,200
other things.
So I try to write so that they

1689
02:01:09,200 --> 02:01:11,800
get a little bit better
understanding of that.

1690
02:01:11,800 --> 02:01:15,600
So when they do something,
they're not going to be prized

1691
02:01:15,600 --> 02:01:20,400
and disappointed because their
assumption was incorrect.

1692
02:01:22,000 --> 02:01:25,600
Correct about gold or right?
I've written about silver.

1693
02:01:26,900 --> 02:01:30,100
I write about inflation, the
Federal Reserve, I've written a

1694
02:01:30,100 --> 02:01:33,200
couple articles on
cryptocurrencies, couple and

1695
02:01:33,200 --> 02:01:36,000
real estate written about
interest rates.

1696
02:01:36,900 --> 02:01:42,800
Modern monetary Theory.
You know, there's a search bar

1697
02:01:43,000 --> 02:01:45,900
and it has categories, and
people can just go to it and

1698
02:01:45,900 --> 02:01:48,000
say, I want to read.
What did you say about crypto?

1699
02:01:48,400 --> 02:01:50,800
They can click on that, and read
them.

1700
02:01:51,300 --> 02:01:55,600
So, that's there, there's a,
there's probably, well as well

1701
02:01:55,600 --> 02:02:00,000
over 200 articles on different
subjects there, that's pretty

1702
02:02:00,000 --> 02:02:03,000
prolific, and that's in addition
to your book, kale the FED,

1703
02:02:03,000 --> 02:02:05,000
right?
Yeah, actually.

1704
02:02:05,800 --> 02:02:09,300
All hail the fed and then the
other book, the first one I

1705
02:02:09,300 --> 02:02:12,500
wrote was Three months before
that was inflation.

1706
02:02:12,500 --> 02:02:17,100
What it is, what it is and and
who's responsible for it, and

1707
02:02:17,100 --> 02:02:22,400
they're both of them, I did
2018.

1708
02:02:22,800 --> 02:02:27,800
And what I wrote at the time,
the material they're really,

1709
02:02:27,800 --> 02:02:30,800
they're booklets their ebooks
and paperback, they're not

1710
02:02:30,800 --> 02:02:35,800
lengthy, but the material is
from articles.

1711
02:02:35,800 --> 02:02:40,300
I had written up to that time.
And then I went in, you know

1712
02:02:40,500 --> 02:02:43,800
reworked it, get it in a book
form and stuff.

1713
02:02:44,000 --> 02:02:47,100
So I've got four years of
Articles since that.

1714
02:02:47,100 --> 02:02:50,900
So there's a, quite a bit that I
could write, if I wanted to

1715
02:02:50,900 --> 02:02:55,500
revise, or do another book or
something, but the basics are

1716
02:02:55,500 --> 02:02:57,100
the same.
They're right there.

1717
02:02:57,800 --> 02:02:59,800
They explained.
A lot of the things we've talked

1718
02:02:59,800 --> 02:03:03,000
about very clearly.
That's awesome.

1719
02:03:03,500 --> 02:03:05,700
Including the fractional,
Reserve banking.

1720
02:03:07,500 --> 02:03:10,100
That's awesome.
So I just want to say right now

1721
02:03:10,100 --> 02:03:15,500
that as you and I talked, you
you invited me on on to go, look

1722
02:03:15,500 --> 02:03:17,500
at your website and I read
through it.

1723
02:03:17,500 --> 02:03:21,400
The nice thing about it was that
it was so easy to understand,

1724
02:03:21,400 --> 02:03:23,600
right?
And look, if I can understand

1725
02:03:23,600 --> 02:03:29,600
it, anybody can understand it.
So, I'm like, if I, this, this

1726
02:03:29,600 --> 02:03:33,300
is the perfect site for, for a
guy like me, just trying to

1727
02:03:33,300 --> 02:03:38,100
figure out what exactly is going
on is See, was there anything

1728
02:03:38,100 --> 02:03:40,600
else that you want to touch on
tonight that we didn't get a

1729
02:03:40,600 --> 02:03:43,600
chance to do?
I don't feel so.

1730
02:03:43,600 --> 02:03:47,600
I know there's subjects that in
the back of our heads will

1731
02:03:47,600 --> 02:03:50,300
probably say hey you know what,
we need to talk more about this

1732
02:03:50,300 --> 02:03:53,100
on a another time or something
like that.

1733
02:03:53,200 --> 02:03:56,500
I feel like we've made done a
good overview here.

1734
02:03:56,700 --> 02:04:00,700
And I certainly duction for
people because what we have

1735
02:04:00,700 --> 02:04:04,300
talked about should raise
questions in people's minds and

1736
02:04:04,300 --> 02:04:07,100
if it does, that means they're
going to go do some research.

1737
02:04:07,200 --> 02:04:11,500
Search and by all means they
should read other things.

1738
02:04:11,600 --> 02:04:17,500
But they need to think beyond
the what seems logical and

1739
02:04:17,500 --> 02:04:22,600
presumptive and that's where I
try to bring out on the in the

1740
02:04:22,600 --> 02:04:26,000
articles that I write.
So that see people are seeing a

1741
02:04:26,008 --> 02:04:31,300
different picture that it's not
so easy to just assume that if

1742
02:04:31,300 --> 02:04:33,800
this happens and the FED does
this.

1743
02:04:33,800 --> 02:04:38,400
And so and so and then we'll see
such and such I don't think you

1744
02:04:38,400 --> 02:04:41,600
could say that because the one
thing we haven't talked about is

1745
02:04:41,600 --> 02:04:46,100
we haven't really gotten into
gold and how it reflects the

1746
02:04:46,100 --> 02:04:48,000
effects of inflation and all
that.

1747
02:04:48,000 --> 02:04:53,600
And it is a long takes a while
so and that's something for the

1748
02:04:53,600 --> 02:04:55,100
future.
But that's the kind of stuff

1749
02:04:55,100 --> 02:04:59,100
that's on the website.
Perfect, well, that brings me to

1750
02:04:59,100 --> 02:05:01,200
another Point.
As we continue to go through

1751
02:05:01,200 --> 02:05:05,400
this with the economy, would you
be willing to come back on and

1752
02:05:05,400 --> 02:05:07,400
have more of these conversations
with Me.

1753
02:05:08,000 --> 02:05:11,200
Absolutely.
I'd love to perfect.

1754
02:05:11,200 --> 02:05:15,600
We'll stick around and you and I
will maybe look at setting

1755
02:05:15,600 --> 02:05:17,300
something up for down the road,
a little ways.

1756
02:05:18,300 --> 02:05:21,600
Glad to all right.
Appreciate being on you.

1757
02:05:22,000 --> 02:05:24,200
Kelsey, you're the man, I
appreciate it.

1758
02:05:25,100 --> 02:05:27,100
Thanks, alright, bye everybody.

Episode #12 Explaining What is happening to the economy

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