Episode #22 The Economy & Gold W/Kelsey Williams

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So, did you see what happened?
To the Dow Jones yesterday?

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Yeah, down nearly 1,000 points.
And that's on top of the

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markets, either being nearly
flat or down all week, something

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is happening within the economy
that has every alarm Bell in my

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gut.
Going off at once on this

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episode, I have Kelsey Williams
back on.

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

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over 40 years.
He's the author of two books

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inflation.
What It Is, What It Isn't, and

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who's responsible for it.
And to second book, all hail,

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Fed.
He also has written and

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published many articles both for
his website as well as other

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Publications.
All those resources can be found

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in the show notes on this
episode.

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We talk about gold.
Look, perched, in Gold can be

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kind of intimidating couple that
with misconceptions on why

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someone should buy gold and you
have a recipe for being

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overwhelmed Kelsey.
And I break down the history of

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gold options for the way to
purchase gold and how he

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recommends you view owning gold.
He also goes into the state of

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the economy today and then talk
about some potential scenarios

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for where the economy is headed
and that's next on this episode

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of the Mormon Renegade podcast,
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husband and father, I'm keenly
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It feels like there's just never
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We're all squeezed right now
with high gas prices and high

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inflation.
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So, go check that out.

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Welcome back to the Mormon,
Renegade podcast.

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And we have back on Kelsey.
Do you remember?

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Last time we had Kelsey on, we
talked a lot about the fed and

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inflation and really defining
what that is and as the economy

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tends to, you know, continues to
do weird things.

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I definitely wanted to keep in
touch with Kelsey and he has a

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phenomenal background in in gold
and understanding what gold is

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And sometimes I feel like people
look at gold as in, you know,

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it's a great investment and I
you know, Kelsey you can correct

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me if I'm wrong here.
I don't look at gold as an

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investment, right?
I look at it as kind of an

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insurance policy.
Is that a good way of looking at

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it, much better than looking at
it as an investment.

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Very definitely, that will get
you messed up because it'll

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create unrealistic expectations
based on what people think.

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Make gold is supposed to do
given things they see happening.

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Gold is real money.
That's all it is.

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That's it's only role.
And the jewelry fabrication

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thing is secondary and it will
never replace or supplant goals

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role as money and that happened
over thousands of years.

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Not because somebody arbitrarily
set, it is Right.

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So let me ask you this, right?
You and I know what I'm talking

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about when I say bye, I get gold
as an insurance policy.

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If someone was to come to you
and say, Kelsey would you mean

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by it as an insurance policy,
how would you describe that to

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him a little concern about how
much emphasis people place on

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that?
Because it depends on what

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they're thinking, might happen,
that would cause them to need

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it.
And whether goal will On to the

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conditions that they're
concerned about.

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For example, people talk about
the risk of recession and the

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economy getting really bad and
assuming that gold is going to

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do really well.
Because of that, that's not the

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case, it may, but it only
depends on one thing and it

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doesn't matter whether anything
happens from an economic

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standpoint or not, it doesn't
matter what the geopolitical

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risks, that's the term they like
to.

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Use our, it all comes down to
purchasing power of the US

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dollar.
The only reason the price of

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gold increases is to reflect the
loss in purchasing power of the

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US dollar which happens over a
longer period of time.

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So people say well okay
inflation is going to get really

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bad goals going to go up.
But then again, they're not

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looking at where the I said gold
is now relative to what's

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already happened.
It just gets to be a little bit

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sketchy to use general terms
like that and simply say, well,

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I'm buying some gold.
Things are getting tough right

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now.
People are crazy.

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By, and I don't mean that
literally, I mean they think

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that I'm buying gold, things are
going bad and it's going to get

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worse and goals, what's going to
save me, but all goal will allow

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you to do is preserve your
purchasing power.

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And you may see a period where
gold declines in price

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considerably because it's
already at a level that reflects

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what has happened to this point.
So maybe Peewee back off and

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gold has a history price-wise of
doing that.

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That's not gold.
That's the strength in the

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dollar.
And right now, we're seeing some

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strength in the dollar and
people are saying.

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Well, it's not going to last
but, you know, it could and we

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could have deflation to and if
we have deflation the price of

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gold is going down.
You and correct me if I'm wrong

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here, right?
People.

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Look at quote, the price of gold
and kind of make the connection

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that Gold's worth is kind of
tied to the dollar and from my

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reading.
And again, correct me if I'm

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wrong, gold isn't necessarily
over the dollar, doesn't

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necessarily reflect the the, the
worth of gold the dollar

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fluctuates.
But gold, ultimately kind of

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stays where it's at as far.
Is it's worth is that a correct

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assessment?
Gold is a long-term store of

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value and its value is in its
use as money.

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And terms of value, that value
is stable and constant over the

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centuries.
All paper currencies Fluctuate

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mostly going down over time
because all governments inflate

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and destroy their own currencies
intentionally.

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As long as they expand the
supply of money and credit the

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currency is going to lose value
and overtime gold.

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Since it's priced in u.s.
dollars, reflects the decline

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that's happened, right?
And that's that's what I've

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tried to say, but you just did
it way better. um, well, there's

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it, there's a mathematical
calculation, you can use to

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Really generally.
And this is, you know, based on

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most of what we can see the US
dollar has lost 98 to 99 percent

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of its purchasing power over the
last century.

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So it takes a hundred dollars
today to buy what you could have

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bought a hundred years ago.
Now, obviously I have a lot of

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changes in technology and
everything.

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I'm just saying that If you go
back and you look at how people

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even even 50 or 60 years ago,
how much was fifty thousand

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dollars in income.
Now we have people talking about

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half a million in income,
correlated to the same idea and

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control in terms of what you can
buy with it.

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Still you've got an I think it's
very reasonable.

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That the dollar has declined 99%
White You can buy so it's about

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100 to 1 ratio.
Now, when goal was it two

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thousand dollars, an ounce or
slightly above that twice, in

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the last couple of years that
represents a 100 fold increase

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from the price of gold when the
two were fixed. 20 US dollars.

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For an ounce of gold.
So you have the dollar and gold

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linked on a fixed basis, it
doesn't matter what it was

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before or anything as long as
that ratio is maintained and it

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was for a number of years. and
then, What happened is

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government wants to expand their
Horizons.

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By spending more money,
inflating, the money supply.

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They can't do that.
If it's, you know, tied to Gold.

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So they cut those ties as long
as it didn't see.

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That's the big issue gold, it
acts as a restraint on

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government.
So if the money supply is gold,

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Or if you have a fixed link and
convertibility is there.

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So, you know, you can turn in
your dollars and get a fixed

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amount of gold.
That was agreed upon and it

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stays that way.
That's fine.

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Problem is, government's not
going to stop printing more

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money and are making more credit
available.

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So what that does is it cheapens
the value of all that money.

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Meaning they couldn't redeem
gold for what?

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They said they would after
they've continued to expand the

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money supply.
So what gold does is it gives

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you a longer term store value,
gotcha.

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And that's the way to approach
it and see in my silly mind.

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I you know I don't look at it
nearly as scientifically as you

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do.
I look at it as in this is for

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after a you know just something
catastrophic with the economy

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and then we have to kind of
almost reboot the system.

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Right.
That's okay, that's okay,

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because it depends on whether
the dollar survives.

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So that issue, as long as the
dollar is accepted.

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Then you're not going to see the
kind of situation that some

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people talk about, if people
reject dollars at some point,

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then that is where the gold
comes in, right?

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Terms of that lat, but there are
other opportunities along the

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way to accumulate gold.
At what would be considered

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bargain prices when it moves
away from its inflation adjusted

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value.
And right now, we're very close

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to the Elation adjusted value.
So there isn't a whole lot of

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what you might call profit
potential in it and besides if

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things did happen the way some
people think they might meaning.

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Let's say that everything gets
away from us.

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Inflation's the effects of
inflation Skyrocket, the dollar

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loses value, drastically and
people simply say I don't want

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to I don't want the dollars well
the price of gold will go up in

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that.
That situation but you won't

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profit from it because it'll
take that much you know gold

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it'll take the gold will buy the
same thing then as it would now

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the fact that it's priced at
four or five thousand dollars an

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ounce doesn't matter because
everything you buy will have

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gone up proportionately to that
loss in the dollars purchasing

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power.
So it's a way to preserve your

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wealth in purchasing power over
long periods of time.

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Gotcha.
So, let's let's go back a little

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bit because I want to talk a
little bit about the history of

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the goal of gold, okay?
Because realistically, as I've

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looked at it, it seems like
almost every currency starts

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with gold right or wrong.
Well, gold was money before the

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dollar before paper currencies.
What happened is you know

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people.
I mean the first gold coins were

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about 500 years.
Years ago, five hundred years

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00:14:53,900 --> 00:14:58,800
before 500 years b.c.
So you've got twenty-five

227
00:14:58,800 --> 00:15:05,200
twenty-six hundred years of use
of gold and that was money.

228
00:15:05,300 --> 00:15:09,500
But, and that was coins.
But before that, it was bullying

229
00:15:09,700 --> 00:15:14,300
and gold bullion was stored in
warehouses and people had

230
00:15:14,300 --> 00:15:17,100
receipts because they weren't
going to carry around.

231
00:15:17,900 --> 00:15:20,400
Gold bullion bars everywhere.
They went.

232
00:15:20,400 --> 00:15:24,000
So they had receipts where it
was stored in warehouse and

233
00:15:24,000 --> 00:15:29,900
those receipts from the
warehouse were negotiable in

234
00:15:29,900 --> 00:15:33,000
trade and commerce.
So someone was buying something,

235
00:15:33,000 --> 00:15:37,900
it was always in terms of gold
and they had a receipt

236
00:15:37,900 --> 00:15:42,100
signifying that so they could
transfer ownership of the gold.

237
00:15:42,900 --> 00:15:47,200
By returning that receipt over
to someone if they wanted to buy

238
00:15:47,200 --> 00:15:49,900
something.
And of course, there were people

239
00:15:49,900 --> 00:15:53,600
who would come and they wanted
to get their goal, they turn in

240
00:15:53,600 --> 00:15:57,200
a receipt and they take it.
So but that's how it was stored.

241
00:15:58,300 --> 00:16:03,300
And then there was the
Proprietors of the warehouse who

242
00:16:03,300 --> 00:16:08,800
decided that maybe if most of
the gold continues to stay here

243
00:16:08,800 --> 00:16:11,600
because not everybody wasn't
going to come and get all their

244
00:16:11,600 --> 00:16:14,900
gold at once.
And the receipts were traded and

245
00:16:14,900 --> 00:16:18,600
people would get the receipts
from someone else and and then

246
00:16:18,600 --> 00:16:22,100
they use it again and there are
other transactions.

247
00:16:22,100 --> 00:16:27,800
So so what would happen is the
Proprietors of the warehouse is

248
00:16:27,800 --> 00:16:34,000
who really were The Originators
of banking.

249
00:16:34,300 --> 00:16:38,400
They were like Bankers they
decided Well why can't we loan

250
00:16:38,400 --> 00:16:41,600
this gold out?
There's a receipt with the

251
00:16:41,600 --> 00:16:44,600
evidence that it is.
Backed by the gold is stored in

252
00:16:44,600 --> 00:16:47,200
the warehouse.
We just have to be careful not

253
00:16:47,200 --> 00:16:51,300
to loan too much out and
certainly not loan more out than

254
00:16:51,300 --> 00:16:56,400
the available Supply that's in
storage and so they loan it out,

255
00:16:56,400 --> 00:16:59,500
charge interest on it.
Well that's that's the banking

256
00:16:59,500 --> 00:17:04,200
system, okay?
And and their receipts were a

257
00:17:04,200 --> 00:17:09,099
forerunner of checks and in
essence, that's what the

258
00:17:09,099 --> 00:17:11,200
American dollar was kind of
based on, right.

259
00:17:11,200 --> 00:17:15,599
It was essentially a check
Check, that was an IOU.

260
00:17:15,599 --> 00:17:21,700
It's an IOU used to be
convertible directly into gold,

261
00:17:23,200 --> 00:17:29,600
and that's that's why I wear the
link was see when a if I know

262
00:17:29,600 --> 00:17:35,200
that I use gold and gold has a
function as money and it's

263
00:17:35,200 --> 00:17:38,200
accepted.
And the government says, we need

264
00:17:38,200 --> 00:17:41,200
our own currency.
So, when the government wanted

265
00:17:41,200 --> 00:17:46,800
to Its own currency, it knew
that it wasn't going to be

266
00:17:46,800 --> 00:17:53,600
accepted unless people knew that
it was real in some way.

267
00:17:53,800 --> 00:17:57,100
So they tied it to gold and
silver.

268
00:17:59,000 --> 00:18:04,100
Go being primarily the real
money silver used for smaller.

269
00:18:05,400 --> 00:18:09,600
Walking around but even people
carried ten and twenty dollar

270
00:18:09,600 --> 00:18:14,100
gold pieces that was you know a
hundred years ago and silver

271
00:18:14,100 --> 00:18:18,700
dollars that was money.
The use of the paper currency

272
00:18:18,700 --> 00:18:22,600
was convenient but people
weren't going to accept it

273
00:18:22,600 --> 00:18:27,300
unless they knew that equated to
a certain amount of gold.

274
00:18:28,400 --> 00:18:34,000
So you had a fixed ratio.
You knew that if you own gold,

275
00:18:34,000 --> 00:18:37,900
you could willingly exchange it
for a fixed amount of paper

276
00:18:37,900 --> 00:18:42,600
dollars and vice versa.
What happened it.

277
00:18:42,600 --> 00:18:45,700
Go ahead.
I was going to make it, I'll go

278
00:18:45,700 --> 00:18:50,900
on and to stop me.
What what was it about gold that

279
00:18:50,900 --> 00:18:54,400
seemed to be?
Every civilizations go to was it

280
00:18:54,400 --> 00:18:59,800
its scarcity was it, it's Then
something, I mean, why gold, why

281
00:18:59,800 --> 00:19:04,400
not silver copper heart of this.
First of all, there's trial and

282
00:19:04,400 --> 00:19:08,200
error.
A lot of things were try, what

283
00:19:08,200 --> 00:19:14,200
worked over a longer period of
time and people became

284
00:19:14,900 --> 00:19:19,400
understood that it would work
and realize it was gold, and it

285
00:19:19,400 --> 00:19:21,700
was, it was just trial and
error, you know, they tried

286
00:19:21,700 --> 00:19:27,300
beats beads, they tried Seed
grain.

287
00:19:27,400 --> 00:19:31,300
I mean anything but there are
three characteristics of money

288
00:19:31,300 --> 00:19:36,300
and that really helps us
determine, you know, we can see

289
00:19:36,300 --> 00:19:41,700
how gold works and why other
things don't and I mean gold has

290
00:19:41,700 --> 00:19:45,100
its own characteristics.
First of all, it's scarce.

291
00:19:47,000 --> 00:19:52,800
And that's important because the
limited Supply means, you don't

292
00:19:52,800 --> 00:19:55,500
have the risk or the issue of
inflation.

293
00:19:55,700 --> 00:20:00,800
If you have a limited Supply,
it's hard to get 99% of the

294
00:20:00,800 --> 00:20:04,800
supply of gold.
It's been mined historically is

295
00:20:04,800 --> 00:20:10,100
available above ground today so
it doesn't rust doesn't tarnish.

296
00:20:10,700 --> 00:20:14,700
Its scarce.
It's beautiful but that's all

297
00:20:14,700 --> 00:20:18,700
great.
But it meets the test of what I

298
00:20:18,700 --> 00:20:24,300
say is real money and real money
has three characteristics one.

299
00:20:25,400 --> 00:20:33,200
It's a medium of Exchange.
To it's a measure of value and

300
00:20:33,200 --> 00:20:37,200
three, it's a store of value.
Now, in order to be a medium of

301
00:20:37,208 --> 00:20:42,000
exchange, it has to be
recognized and accepted.

302
00:20:43,300 --> 00:20:46,300
People have to see something
that we said, okay, this is

303
00:20:46,300 --> 00:20:49,800
fine.
I will take this and and so

304
00:20:49,800 --> 00:20:52,900
others use it.
That's what we look at.

305
00:20:52,900 --> 00:20:58,400
We whether you talking about
dollars or gold, I accept it,

306
00:20:58,500 --> 00:21:01,500
it's a medium of exchange, it
goes between, you know, and

307
00:21:02,000 --> 00:21:04,100
people use it in their
transactions.

308
00:21:04,500 --> 00:21:08,800
It's used over and over again.
It also needs to be a measure of

309
00:21:08,800 --> 00:21:14,800
value measure of value, has to
be the money that's being used,

310
00:21:14,800 --> 00:21:19,200
has to be able to be divided
into quantities.

311
00:21:20,300 --> 00:21:24,600
Fractional units that can be
used in a recognized standard

312
00:21:24,600 --> 00:21:28,900
standard of weights and measure.
Well, gold is perfect for that.

313
00:21:29,000 --> 00:21:34,600
That's where we got G grains.
All the other metric system

314
00:21:36,800 --> 00:21:42,100
units of gold small units so
that it can be used in Daily

315
00:21:42,100 --> 00:21:45,900
transactions as well.
So you got medium of exchange

316
00:21:45,900 --> 00:21:52,500
and measure a value now, Dollars
fit that they're medium of

317
00:21:52,500 --> 00:21:56,200
Exchange in a measure of value.
How many dollars are you going

318
00:21:56,200 --> 00:22:01,500
to pay for something?
But here's the, here's the test,

319
00:22:01,500 --> 00:22:06,200
the test is a store of value,
the third item, the third

320
00:22:06,200 --> 00:22:11,200
characteristic, this is the
distinction between money and

321
00:22:11,200 --> 00:22:16,100
real money.
You have to be able if you come

322
00:22:16,100 --> 00:22:20,300
to me and you want to buy
something that I have and I

323
00:22:20,700 --> 00:22:23,500
asked well what are you going to
give me in return?

324
00:22:25,300 --> 00:22:32,400
If you give me some kind form of
money, I have to know that I can

325
00:22:32,400 --> 00:22:37,200
accept that and that I can turn
around and use it again and if I

326
00:22:37,200 --> 00:22:42,100
don't want to use it right now,
I want to use it a year.

327
00:22:42,300 --> 00:22:45,800
R from now or several years from
now, maybe I'm not going to use

328
00:22:45,800 --> 00:22:48,200
it right away.
Maybe a portion of this I'm

329
00:22:48,200 --> 00:22:52,700
going to set aside.
I have to be able to know and be

330
00:22:52,700 --> 00:22:56,100
confident enough that I can go
get that money at any time and

331
00:22:56,100 --> 00:22:59,700
turn around and use it and then
I can still buy what I can buy

332
00:22:59,700 --> 00:23:03,400
right now with it.
Okay, that's the store of value.

333
00:23:04,200 --> 00:23:06,900
What will it by me?
Next year?

334
00:23:07,200 --> 00:23:11,600
I have tuition coming up next
year for a child or something.

335
00:23:12,300 --> 00:23:15,800
Well, the tuition is locked in
at this point.

336
00:23:15,800 --> 00:23:18,300
What am I going to pay for that?
What am I going to use to pay

337
00:23:18,300 --> 00:23:21,700
for that?
But if that money isn't worth a

338
00:23:21,700 --> 00:23:26,300
year from now or five years from
now what it is, now then I

339
00:23:26,300 --> 00:23:30,900
either have to be confident
enough that it's a slow rot and

340
00:23:30,900 --> 00:23:35,900
I can find another way to use
that money to grow it to offset

341
00:23:35,900 --> 00:23:39,400
that, or I have to have
something that's going to be a

342
00:23:39,400 --> 00:23:42,100
store value.
So that's where gold comes in.

343
00:23:42,800 --> 00:23:50,000
And again, long-term I can look
back and show you 30 years ago,

344
00:23:50,000 --> 00:23:55,300
50 years ago, people get caught
up, and they say, well, and

345
00:23:55,400 --> 00:24:00,100
inflation as they call it, the
price increases eight or nine

346
00:24:00,100 --> 00:24:05,100
percent the last over the last
six or eight months, they want

347
00:24:05,100 --> 00:24:07,600
to see gold do that, but that's
unrealistic.

348
00:24:08,600 --> 00:24:13,100
It's goal reacts only after
longer periods of time and it

349
00:24:13,100 --> 00:24:17,800
didn't reflect that full change
over a long period of time when

350
00:24:17,800 --> 00:24:20,400
it increased to over 2,000
announce.

351
00:24:20,800 --> 00:24:23,900
So you get that you want to put
the money away.

352
00:24:23,900 --> 00:24:27,900
So gold meets the test of those
three things, long-term store

353
00:24:27,900 --> 00:24:31,600
value, medium of exchange
measure of value.

354
00:24:32,300 --> 00:24:34,100
Now, that's what I call real
money.

355
00:24:34,900 --> 00:24:36,800
No, that makes that makes
perfect sense.

356
00:24:36,800 --> 00:24:38,800
It has all three of those.
Mystics.

357
00:24:39,300 --> 00:24:42,900
So, when United States dollar is
first established, right?

358
00:24:43,900 --> 00:24:47,400
And I'm talking the actual
Federal Reserve Note, not the,

359
00:24:47,900 --> 00:24:52,900
not the not what we had in the
Articles of Confederation.

360
00:24:53,400 --> 00:24:59,100
But after that, after after the
Constitution's established, we

361
00:24:59,100 --> 00:25:04,500
start our own currency.
And and in theory, in those days

362
00:25:04,500 --> 00:25:09,500
you could go, you could say, I
got $3 here, I want to take this

363
00:25:09,500 --> 00:25:13,200
to the bank and get three
dollars worth of gold that all

364
00:25:13,200 --> 00:25:15,500
makes sense.
And it's pretty impressive.

365
00:25:15,500 --> 00:25:19,400
The way you described it that it
was that gold that that really

366
00:25:20,000 --> 00:25:26,000
and it's, you know, inability or
I should say it's a function of

367
00:25:26,000 --> 00:25:28,900
not being able to walk around
with gold bouillon, that really

368
00:25:28,900 --> 00:25:31,400
gives rise to this idea of
script if you will.

369
00:25:32,000 --> 00:25:36,500
Like so.
America is on that that gold

370
00:25:36,500 --> 00:25:38,600
standard I guess for lack of a
better term.

371
00:25:38,600 --> 00:25:42,000
How long, how long is America on
that gold standard?

372
00:25:43,700 --> 00:25:50,700
Well, the critical change
happened in 1934, and that's

373
00:25:50,700 --> 00:25:59,500
what President Roosevelt issued.
An executive order that made

374
00:25:59,500 --> 00:26:04,900
holding of gold, bullion Gold by
US citizens illegal.

375
00:26:05,700 --> 00:26:07,900
Okay.
Could you had to turn in the

376
00:26:07,900 --> 00:26:10,800
goal now?
Is even jewelry to, right?

377
00:26:10,800 --> 00:26:12,500
I remember reading about this
song.

378
00:26:12,900 --> 00:26:18,700
Yeah, they Today, the jewelry it
would have to be jewelry and a

379
00:26:18,700 --> 00:26:24,200
sense that wasn't, you know, if
people had a horde of jewelry

380
00:26:24,200 --> 00:26:27,100
that they could go meltdown,
that would be a concern.

381
00:26:27,100 --> 00:26:34,300
But primarily it was the risk
that and the threat that the

382
00:26:34,300 --> 00:26:43,000
gold as currency.
Affected the US, government's

383
00:26:43,000 --> 00:26:48,500
plans to fight the deflation and
the depression that was underway

384
00:26:48,600 --> 00:26:53,700
by expanding the supply of money
and credit and they couldn't do

385
00:26:53,700 --> 00:26:57,000
that and still maintain the
convertible link.

386
00:26:57,500 --> 00:27:01,700
So they raised the price of gold
on an official basis.

387
00:27:03,200 --> 00:27:09,100
Meaning, you now have to turn in
$35 to get an ounce of gold when

388
00:27:09,100 --> 00:27:11,400
it used to be.
That was convertible at 20,

389
00:27:11,400 --> 00:27:14,500
because we knew the government
have been inflating and they

390
00:27:14,500 --> 00:27:17,700
couldn't keep inflating without
cheapening.

391
00:27:17,700 --> 00:27:20,400
The value of the dollars again,
so they said, okay, you're

392
00:27:20,400 --> 00:27:22,500
right.
So we'll raise the official

393
00:27:22,500 --> 00:27:26,400
price to 35.
But US citizens, citizens,

394
00:27:26,400 --> 00:27:28,000
weren't allowed to turn it into
that.

395
00:27:28,000 --> 00:27:30,800
They had to turn in at $20 an
ounce.

396
00:27:30,900 --> 00:27:35,300
The official link Then the
higher price really was raised

397
00:27:35,300 --> 00:27:39,900
to a foreign.
Anybody else who owns it foreign

398
00:27:39,900 --> 00:27:41,900
governments or holders of
dollars.

399
00:27:42,400 --> 00:27:48,400
So it effectively undercut their
Holdings because now they just

400
00:27:48,400 --> 00:27:54,300
lost 40% of there.
Dollar Reserve by raising or

401
00:27:54,300 --> 00:27:58,400
what they thought was related to
gold at $20 an ounce.

402
00:27:58,400 --> 00:28:07,500
So but again, it was the threat
that gold stood made for the

403
00:28:07,500 --> 00:28:09,200
government.
The government can't go out and

404
00:28:09,200 --> 00:28:14,500
spend Limitless amounts of
dollars when it knows, it has to

405
00:28:14,500 --> 00:28:17,300
be able to exchange those
dollars.

406
00:28:17,300 --> 00:28:20,300
For a fixed amount of gold at
what was $20.

407
00:28:20,600 --> 00:28:24,100
An ounce.
So that threat was enough for

408
00:28:24,100 --> 00:28:27,600
Roosevelt to issue an executive
order and take away gold

409
00:28:27,600 --> 00:28:30,500
ownership.
So, how did you, how did he do

410
00:28:30,500 --> 00:28:33,600
that though?
I mean, how, how was he able to

411
00:28:33,600 --> 00:28:35,600
gather that up?
Did people just surrender

412
00:28:35,900 --> 00:28:37,500
surrender?
It voluntarily.

413
00:28:37,900 --> 00:28:41,200
Was this something that they
somehow knew that folks had gold

414
00:28:41,200 --> 00:28:42,900
somewhere?
I mean, what was the mechanism

415
00:28:42,900 --> 00:28:46,600
there?
They relied on that.

416
00:28:47,000 --> 00:28:49,800
Just what you said.
It's like an honor System.

417
00:28:50,600 --> 00:28:54,600
They knew about it.
They could, of course, use that

418
00:28:54,600 --> 00:28:58,000
threat.
And the next thing would be,

419
00:28:58,200 --> 00:29:00,900
what are you going to do?
If you go out and use it,

420
00:29:00,900 --> 00:29:03,900
somebody would see find out that
you have it.

421
00:29:04,000 --> 00:29:10,600
So and I think again, you're at
a time, we're in the middle of a

422
00:29:10,608 --> 00:29:19,000
depression.
The demand for actual cash with

423
00:29:19,000 --> 00:29:23,700
such that people.
A lot of people didn't see the

424
00:29:23,700 --> 00:29:25,600
risk and felt that was the thing
to do.

425
00:29:25,600 --> 00:29:30,200
And it also there was the appeal
of, and I don't like the use of

426
00:29:30,200 --> 00:29:31,500
it.
But the appeal of the term

427
00:29:31,500 --> 00:29:35,100
patriotism that if you didn't
turn this, you weren't going to

428
00:29:35,300 --> 00:29:39,000
help us get out of this mess
and, you know, you're being

429
00:29:39,000 --> 00:29:41,400
unpatriotic.
If you didn't understand how

430
00:29:41,400 --> 00:29:45,000
this affected the dollar, and
the economy, and everything

431
00:29:45,000 --> 00:29:53,200
else, I really think they used
every everything at their

432
00:29:53,200 --> 00:29:57,900
disposal to make it stick, but
again, it was an executive

433
00:29:57,900 --> 00:29:59,300
order.
I mean, they could turn around

434
00:29:59,300 --> 00:30:03,700
and do the same thing today.
There's no, there's whether it's

435
00:30:03,700 --> 00:30:07,300
not whether it's right or wrong
is the fact that, you know,

436
00:30:07,400 --> 00:30:09,900
government doesn't like
something and they can't get the

437
00:30:09,900 --> 00:30:15,300
courts to, to do it.
They'll find a way to do it and

438
00:30:15,300 --> 00:30:17,200
it was also supposed to be
temporary.

439
00:30:19,800 --> 00:30:23,900
It wasn't lifted until George
Bush.

440
00:30:26,400 --> 00:30:29,700
Issued an executive order,
reversing it but that just made

441
00:30:29,700 --> 00:30:31,800
it legal.
It didn't restore

442
00:30:31,800 --> 00:30:36,100
convertibility.
Which means if you are concerned

443
00:30:36,100 --> 00:30:39,100
and want to protect yourself,
he'll buy gold, it's not

444
00:30:39,100 --> 00:30:43,400
illegal.
So you buy it and the free

445
00:30:43,400 --> 00:30:48,200
markets, you know, allow you to
buy and sell it as you want to.

446
00:30:49,300 --> 00:30:53,300
But the US dollar has no
substance behind.

447
00:30:54,300 --> 00:30:59,300
So the that purchase because I'd
always red and I this is why I

448
00:30:59,300 --> 00:31:02,000
love talking to you.
I'd always read that that the

449
00:31:02,000 --> 00:31:09,000
reason they that FDR issued that
order was to help fund the war

450
00:31:09,000 --> 00:31:13,800
effort, but you're saying in all
actuality, it was to try to help

451
00:31:13,800 --> 00:31:15,800
with the depression.
Is that correct?

452
00:31:15,800 --> 00:31:20,000
Well, he certainly would have
used it to fund the war effort,

453
00:31:20,000 --> 00:31:23,900
but that was six or seven years
later before the u.s. entered

454
00:31:23,900 --> 00:31:27,900
the war.
Or he was in the midst of a

455
00:31:27,900 --> 00:31:33,800
deflationary depression in 1934,
the US was and stocks were at

456
00:31:33,800 --> 00:31:38,300
their lowest LED lost, 90% of
their value or where they were

457
00:31:38,300 --> 00:31:43,200
priced before the crash.
And you've got all the

458
00:31:43,200 --> 00:31:47,100
government programs, how you're
going to pay for it creates

459
00:31:47,100 --> 00:31:53,500
money, you can't create money
because the money comes back in

460
00:31:54,500 --> 00:31:59,300
and people start using it.
Say, Hey, I want some gold.

461
00:31:59,800 --> 00:32:02,000
You know?
Well, we've got a fixed ratio

462
00:32:02,000 --> 00:32:05,100
$20 an ounce.
That's going to be obvious that

463
00:32:05,100 --> 00:32:08,200
the government is in keeping
their part of the agreement.

464
00:32:08,200 --> 00:32:10,200
So let's just call it what it
is.

465
00:32:10,500 --> 00:32:15,600
And we'll make it easier by
taking gold away from people.

466
00:32:15,900 --> 00:32:20,700
So whether it was war or
anything else, it allowed

467
00:32:20,700 --> 00:32:25,700
government to expand the money
supply without the risk

468
00:32:25,800 --> 00:32:30,700
associated with, Trying to
redeem our people redeem gold.

469
00:32:32,300 --> 00:32:35,300
Because the us would have given
up everything, it had had to

470
00:32:36,300 --> 00:32:42,000
meet girls reading keys.
Wow, so after FDR after after

471
00:32:42,000 --> 00:32:46,600
that happens, what what's the
next step with us and and gold?

472
00:32:48,000 --> 00:32:56,200
Well, not a lot until the late
60s, you had a period where the

473
00:32:56,200 --> 00:33:02,100
US most of the attention was
trying to Find our way out of

474
00:33:02,200 --> 00:33:07,000
the depression which would have
happened, a good deal sooner.

475
00:33:07,000 --> 00:33:09,900
Had it not been for the
government's efforts to

476
00:33:09,900 --> 00:33:15,400
intervene and try to support
everything prop it up and also

477
00:33:15,900 --> 00:33:22,300
fight against the symptoms that,
you know, really needed to

478
00:33:22,600 --> 00:33:27,100
happen in order to For the
economy to get better.

479
00:33:27,700 --> 00:33:34,700
But so you have that and then
the entrance into the war in

480
00:33:34,700 --> 00:33:42,500
1941, December 1941.
There was an acceleration of an

481
00:33:43,300 --> 00:33:48,300
economic activity that helped I
guess if you want to say it.

482
00:33:48,300 --> 00:33:52,800
But all it really does is take
productive means away from other

483
00:33:52,800 --> 00:33:56,900
areas and put him in the air.
Is that supported the war effort

484
00:33:57,000 --> 00:34:02,500
but it was obviously there so
you have a period that then

485
00:34:02,800 --> 00:34:06,900
through the war but you had a
lot of rationing because they

486
00:34:06,900 --> 00:34:09,000
needed materials and everything
else.

487
00:34:09,000 --> 00:34:12,100
So economically things weren't
that great.

488
00:34:12,400 --> 00:34:17,900
But the dollar was reasonably
stable and and to a certain

489
00:34:17,900 --> 00:34:21,600
extent, then The effects of
inflation.

490
00:34:21,600 --> 00:34:26,199
Had a big impact, once the war
effort subsided, because all of

491
00:34:26,207 --> 00:34:28,900
this money and effort is out
there.

492
00:34:29,300 --> 00:34:33,600
So, inflation was a concern.
But then, as the economy picked

493
00:34:33,600 --> 00:34:40,000
up 50s, and 60s were relatively
good financially and

494
00:34:40,000 --> 00:34:44,800
economically, but in the late
stand, the mid to late 60s.

495
00:34:44,800 --> 00:34:49,699
A lot of the foreign governments
who were accumulating dollars.

496
00:34:49,900 --> 00:34:57,100
Including Arab countries for the
sale of oil at ridiculously

497
00:34:57,100 --> 00:35:00,100
cheap prices.
People.

498
00:35:00,100 --> 00:35:03,100
They realize that, you know,
these dollars, we keep

499
00:35:03,100 --> 00:35:06,400
accumulating have lost a
substantial amount of their

500
00:35:06,400 --> 00:35:09,900
purchasing power.
They can't buy what they could

501
00:35:10,100 --> 00:35:15,900
10 15, 20 years ago with them.
And so they started asking for

502
00:35:15,900 --> 00:35:20,900
their gold, which was at a fixed
price of $35, an ounce.

503
00:35:22,000 --> 00:35:24,500
And the government said, we're
not going to do that, so they

504
00:35:24,500 --> 00:35:31,400
kept stalling and then finally
President Nixon said, okay we're

505
00:35:31,400 --> 00:35:35,100
going to well, actually a couple
of years earlier they raised the

506
00:35:35,100 --> 00:35:39,400
price official price.
Again, the 42 again it just it's

507
00:35:39,400 --> 00:35:42,900
like going back to the store and
every time you ask for what

508
00:35:42,900 --> 00:35:45,700
you're entitled to they tell you
the price has been raised.

509
00:35:46,800 --> 00:35:49,800
Because I'm sorry I was going to
say.

510
00:35:49,800 --> 00:35:55,300
It sounds a lot.
It sounds well, doesn't sound

511
00:35:55,300 --> 00:35:57,300
it.
It is crooked right.

512
00:35:57,300 --> 00:36:00,600
I mean, because essentially what
we did is we told the rest of

513
00:36:00,600 --> 00:36:03,200
the world, you just give us our
goal.

514
00:36:03,200 --> 00:36:07,800
Use the dollar as kind of the
world Reserve currency, and you

515
00:36:07,800 --> 00:36:11,800
can come get your gold anytime
you want until you want it.

516
00:36:12,000 --> 00:36:13,500
And then we're not going to give
it to you.

517
00:36:14,000 --> 00:36:15,300
Yes.
Absolutely.

518
00:36:15,400 --> 00:36:17,600
I mean they agree.
We'll see when they issued the

519
00:36:17,607 --> 00:36:20,700
dollars.
The dollars were issued with

520
00:36:20,700 --> 00:36:26,500
that used to say it right on the
dollar but officially that

521
00:36:26,500 --> 00:36:32,700
changed when they first when
they outlawed, Ownership of gold

522
00:36:32,700 --> 00:36:36,900
for u.s.
Citizens, but it was still

523
00:36:37,100 --> 00:36:44,200
legally binding for holders of
dollars, foreign holders of

524
00:36:44,200 --> 00:36:46,700
dollars, non US citizens, if you
will.

525
00:36:47,300 --> 00:36:52,500
So, yeah.
And I mean, nobody could do,

526
00:36:52,500 --> 00:37:00,800
what, what was done in business.
And not be. accused of doing

527
00:37:00,800 --> 00:37:05,200
something illegal, or criminal
or some there, there be some

528
00:37:05,200 --> 00:37:12,900
term, the legality of it would
be questioned but It wasn't

529
00:37:12,900 --> 00:37:16,000
question, or if it was question,
there wasn't enough support to

530
00:37:16,008 --> 00:37:18,200
do something about it or the
force of government was too

531
00:37:18,200 --> 00:37:21,300
great.
So, I mean, however, you look at

532
00:37:21,300 --> 00:37:24,400
it, that's the way it was.
It happened and and it stayed

533
00:37:24,400 --> 00:37:28,200
that way.
And then finally President Nixon

534
00:37:28,400 --> 00:37:37,600
in 1971 severed that final link
and he said, okay, we're in

535
00:37:37,600 --> 00:37:41,200
France, we're not going to give
you your goal, you can't have it

536
00:37:41,200 --> 00:37:43,800
because Not going to allow it
anymore.

537
00:37:44,200 --> 00:37:45,600
We're just not going to return
it.

538
00:37:45,600 --> 00:37:48,700
You have dollars.
That's yeah, it's not

539
00:37:48,700 --> 00:37:51,300
convertible.
So, they reneged on their

540
00:37:51,400 --> 00:37:56,600
convertibility Clause to the
holders of dollars and that's

541
00:37:56,600 --> 00:38:01,900
when we saw gold Skyrocket.
So let me ask you two questions

542
00:38:01,900 --> 00:38:07,800
here, real quick, And both of
them are kind of hypothetical,

543
00:38:07,800 --> 00:38:09,600
but I'm curious.
What your thoughts are.

544
00:38:10,400 --> 00:38:13,200
Where is all that gold?
The other countries gave us

545
00:38:14,700 --> 00:38:17,900
Well, it wasn't so much that
they gave us.

546
00:38:17,900 --> 00:38:21,500
It was goal.
They were they accepted dollars

547
00:38:21,500 --> 00:38:24,300
instead of gold for
transactions.

548
00:38:24,900 --> 00:38:32,600
See if if, if you come to me and
you say, look, I want something

549
00:38:32,600 --> 00:38:37,500
that you have and I'm, I'm
willing to pay for it and I say,

550
00:38:37,500 --> 00:38:42,000
okay, I'll sell it to you.
What are you going to give me?

551
00:38:42,400 --> 00:38:45,300
And you see, I can either.
Give you gold or I can give you

552
00:38:45,300 --> 00:38:49,300
dollars and I'll say well I
would prefer the gold.

553
00:38:49,300 --> 00:38:52,600
Well if you'll take the dollars,
we can do this transaction.

554
00:38:52,600 --> 00:38:58,300
A lot simpler, we don't have to
ship the goal to you and your

555
00:38:58,300 --> 00:39:01,900
dollars, convertible into that,
into that fixed amount of gold,

556
00:39:01,900 --> 00:39:06,100
when you want it.
And then the deals done and we

557
00:39:06,100 --> 00:39:09,200
just credit and it's gotten
easier and easier with digital

558
00:39:09,200 --> 00:39:12,800
money.
You just click a computer mouse

559
00:39:12,800 --> 00:39:16,500
and the Jack, she's done.
So anyway foreign countries,

560
00:39:16,900 --> 00:39:20,700
foreign holders of gold and
originally, u.s. it has a great

561
00:39:21,000 --> 00:39:24,500
it's really convenient.
I take the dollar, I know I can

562
00:39:24,500 --> 00:39:26,200
turn it in for a fixed amount of
gold.

563
00:39:26,200 --> 00:39:29,700
I'm not worried about it.
It's a store of value to medium

564
00:39:29,700 --> 00:39:32,000
of exchange and it's a measure
of value.

565
00:39:32,600 --> 00:39:36,000
So I tuck it away and I go on my
way comes back.

566
00:39:36,000 --> 00:39:40,400
I go to use it and it's like, I
want to turn it back for a

567
00:39:40,400 --> 00:39:45,600
certain amount of gold.
And you say, No, I know.

568
00:39:45,600 --> 00:39:50,700
I told you I would but I'm not
going to I accepted the dollars

569
00:39:50,700 --> 00:39:55,600
from you, now that's assuming
you and I have that control

570
00:39:56,100 --> 00:40:01,700
individual between us but now
think of the transactions, I

571
00:40:01,700 --> 00:40:05,500
accepted the dollars only
because I knew I could turn them

572
00:40:05,500 --> 00:40:09,600
in at a central place and get
gold because the Federal Reserve

573
00:40:09,600 --> 00:40:15,800
had guaranteed that So we did.
I'm just trying to think the

574
00:40:15,800 --> 00:40:18,200
only reason I can think of that
we wouldn't have redeemed it

575
00:40:18,200 --> 00:40:20,700
that from other countries,
right.

576
00:40:20,700 --> 00:40:24,900
When they came back to try to
buy gold with their dollars, is

577
00:40:24,900 --> 00:40:28,500
that we didn't really have that
much gold to be handing out.

578
00:40:28,500 --> 00:40:30,900
Is that correct?
Exactly, because we printed too

579
00:40:30,900 --> 00:40:34,500
much money, are we expanded the
supply of money and credit over

580
00:40:34,500 --> 00:40:37,300
time?
Whether it was printing dollars

581
00:40:37,300 --> 00:40:40,400
or crediting somebody with
dollars or whatever.

582
00:40:40,700 --> 00:40:44,400
There's, there's That goes back
to the example of the warehouse

583
00:40:44,400 --> 00:40:47,000
and the bank's, you got the
Boolean in the bank's, he got

584
00:40:47,000 --> 00:40:52,400
Warehouse receipts.
And if you loan out, Boolean

585
00:40:52,900 --> 00:40:55,900
since people aren't coming and
getting it all the time and

586
00:40:55,900 --> 00:40:59,800
collect interest on it.
That's fractional, Reserve

587
00:40:59,800 --> 00:41:02,200
banking.
That's what we have today.

588
00:41:02,800 --> 00:41:11,600
That's and, and so it really is
just the series of events.

589
00:41:12,800 --> 00:41:17,800
Is not anything unusual because
it's the normal course of action

590
00:41:17,800 --> 00:41:22,200
for governments to inflate their
currency and that's why people

591
00:41:22,200 --> 00:41:26,400
trust in Gold.
You can't go out and just

592
00:41:26,400 --> 00:41:30,200
arbitrarily say, here's more
gold for you.

593
00:41:30,400 --> 00:41:34,200
You either have it or you don't
write what you can do that with

594
00:41:34,200 --> 00:41:36,100
a currency that you can print
more.

595
00:41:37,800 --> 00:41:42,800
Okay, so here's my, here's my
second hypothetical question.

596
00:41:43,300 --> 00:41:47,600
Let's just say that your
president Kelsey of Williams

597
00:41:48,400 --> 00:41:52,300
Island, right?
You're the president and you've

598
00:41:52,300 --> 00:41:57,300
made this deal.
And you have all these dollars.

599
00:41:59,200 --> 00:42:05,700
It's the world's Reserve
currency but let's just say that

600
00:42:05,700 --> 00:42:08,700
we overinflate are taller,
right?

601
00:42:09,800 --> 00:42:16,900
We base the currency.
If that currency, pardon the

602
00:42:16,908 --> 00:42:21,000
expression takes a dump.
Aren't you going to be mad at

603
00:42:21,008 --> 00:42:26,300
the United States?
Well yeah, I would think so.

604
00:42:27,200 --> 00:42:33,200
I mean, but the United States
isn't alone in this all

605
00:42:33,200 --> 00:42:35,900
governments inflate and destroy
their own currencies.

606
00:42:37,100 --> 00:42:39,300
It's just a matter.
Excuse me.

607
00:42:39,300 --> 00:42:44,700
It's a matter of, you know,
they're always arguing about the

608
00:42:44,700 --> 00:42:48,300
relative value of one currency
versus another.

609
00:42:49,200 --> 00:42:55,000
So I'll playing the same game.
It's paper versus Real Money

610
00:42:55,100 --> 00:42:59,400
gold and and, and that's really
what it comes down to.

611
00:42:59,400 --> 00:43:12,700
Now if a country is less obvious
or less, so what I want to say,

612
00:43:14,200 --> 00:43:19,100
Maybe they're more conservative
in their approach and they don't

613
00:43:19,400 --> 00:43:24,600
go completely overboard on the
inflation side, there's not too

614
00:43:25,100 --> 00:43:30,700
many countries around the world
out there, but the idea is their

615
00:43:30,700 --> 00:43:37,500
relative differences in the
strength of currencies based on

616
00:43:37,500 --> 00:43:42,000
how that currency is perceived
at any given time.

617
00:43:42,500 --> 00:43:51,400
So The US dollar.
By almost any account.

618
00:43:52,400 --> 00:43:57,400
Is still the strongest most
widely accepted currency.

619
00:43:58,500 --> 00:44:02,300
Form of money.
It doesn't mean they haven't

620
00:44:02,300 --> 00:44:07,400
done things to ruin it because
obviously of a dollar today is

621
00:44:07,400 --> 00:44:13,200
only worth 90 is worth ninety
nine percent less than it was

622
00:44:13,600 --> 00:44:17,800
80, or 90 or 100 years ago then,
you know, that's just a little

623
00:44:17,800 --> 00:44:21,800
bit of inflation, all the time,
a cumulative process.

624
00:44:23,800 --> 00:44:27,600
Then you got smaller world
countries.

625
00:44:28,000 --> 00:44:30,500
They what they call third world
countries.

626
00:44:31,400 --> 00:44:38,400
Like Zimbabwe Argentina, smaller
countries that go out and they

627
00:44:39,300 --> 00:44:43,600
literally recklessly print.
All of the currency, they can

628
00:44:45,600 --> 00:44:51,000
there's a history for that and
and again what happens is You

629
00:44:51,008 --> 00:44:54,600
know, it's not it's they don't
have the support for their

630
00:44:54,600 --> 00:44:58,400
currency that the u.s. does
because they don't have the

631
00:44:58,400 --> 00:45:02,000
concentration of it.
So they literally ruined their

632
00:45:02,000 --> 00:45:04,600
own currency by printing more of
it.

633
00:45:04,700 --> 00:45:09,000
Which is what happened to
Germany, the Weimar Republic in

634
00:45:09,000 --> 00:45:12,100
the late 20s or throughout the
20s.

635
00:45:12,100 --> 00:45:16,500
When they try to finance their
all of the debts they were

636
00:45:16,500 --> 00:45:19,800
paying for more and more one.
The agreed to the part of the

637
00:45:19,800 --> 00:45:26,600
treaties was You pay back
damages and and claims from from

638
00:45:26,600 --> 00:45:30,700
the war world war one.
And they finally said, we were

639
00:45:30,700 --> 00:45:32,100
just going to print it and pay
it.

640
00:45:32,100 --> 00:45:35,800
Well that's why they had runaway
inflation hyperinflation in

641
00:45:35,800 --> 00:45:42,800
Germany.
So people are you know today

642
00:45:42,900 --> 00:45:47,300
it's more a matter of looking at
everything and seeing what are

643
00:45:47,300 --> 00:45:50,800
the risks?
I mean, if I'm in the US, What

644
00:45:50,800 --> 00:45:56,300
are the risk to me?
And how do I want to protect

645
00:45:56,300 --> 00:46:00,200
myself?
What are the threats that might

646
00:46:00,200 --> 00:46:01,600
have?
What are the things that could

647
00:46:01,600 --> 00:46:03,700
happen?
I don't think that

648
00:46:03,700 --> 00:46:07,800
hyperinflation, it could happen
but I don't think that's as big

649
00:46:07,800 --> 00:46:12,600
a risk as some people say it is
and that's something we can get

650
00:46:12,600 --> 00:46:14,700
into another point but I just
don't see it.

651
00:46:14,700 --> 00:46:19,500
I've written about it but I
don't believe that it's the risk

652
00:46:19,500 --> 00:46:22,200
that others do.
I think the bigger risk is a

653
00:46:22,207 --> 00:46:26,200
credit collapse.
And a full-scale depression.

654
00:46:28,200 --> 00:46:31,600
Meaning economically and
financially.

655
00:46:32,900 --> 00:46:35,900
It'll be as bad or worse as the
Great Depression.

656
00:46:37,200 --> 00:46:44,700
And that's going to mean the
value of anything that is priced

657
00:46:44,700 --> 00:46:48,200
in dollars is going to drop
considerably.

658
00:46:49,100 --> 00:46:52,200
It's going to drop.
Whether it's real estate,

659
00:46:52,400 --> 00:46:57,000
whether it's oil, gas now,
everything's going to have its

660
00:46:57,000 --> 00:47:00,100
own supply and demand issues
were totally separate.

661
00:47:00,100 --> 00:47:03,100
So they aren't all going to
uniformly drop.

662
00:47:03,500 --> 00:47:06,800
But you're definitely going to
see a radical change.

663
00:47:07,400 --> 00:47:09,900
And that to me, is a bigger
risk.

664
00:47:09,900 --> 00:47:13,500
Now is the hyperinflation a
possibility?

665
00:47:13,500 --> 00:47:17,400
Yes, it is.
It's definitely a possibility

666
00:47:17,700 --> 00:47:22,000
and that's something.
That you would just have to look

667
00:47:22,000 --> 00:47:29,000
and say okay if I've got gold
that will certainly I know that

668
00:47:29,000 --> 00:47:33,500
it's worth or value will be
there so I'll have some but

669
00:47:33,500 --> 00:47:37,000
goals already at its inflation
at close to its inflation

670
00:47:37,000 --> 00:47:40,300
adjusted value.
So the question is, how much,

671
00:47:40,300 --> 00:47:44,300
how what's the probability that
we'll have hyperinflation at

672
00:47:44,300 --> 00:47:49,500
this point versus a deflation or
a depression And a credit

673
00:47:49,500 --> 00:47:52,600
collapse.
So you going to start looking at

674
00:47:52,600 --> 00:47:58,500
timelines and trying to judge
Which risk is greater and to

675
00:47:58,500 --> 00:48:03,200
what extent.
So you can't it's not easy

676
00:48:03,200 --> 00:48:05,600
today.
You also have to allow for the

677
00:48:05,600 --> 00:48:08,300
fact that things could get
better.

678
00:48:09,800 --> 00:48:12,200
Things might get better and they
might stay that way.

679
00:48:12,200 --> 00:48:17,300
I mean, look good stocks.
I mean if you ignored stocks you

680
00:48:17,300 --> 00:48:21,900
do every time things look like
they're going to fall apart, the

681
00:48:21,900 --> 00:48:27,900
FED pulls a rabbit out of the
hat and they're able to manage

682
00:48:27,900 --> 00:48:31,800
things or people respond in a
way that allows us to get back

683
00:48:31,800 --> 00:48:39,000
on track to some degree.
So, it's very difficult but I

684
00:48:39,100 --> 00:48:46,100
personally believe we're closer
than ever to a collapse and the

685
00:48:46,100 --> 00:48:51,200
more likely scenario would be a
deflationary collapse, but once

686
00:48:51,200 --> 00:48:57,000
that happens, The fed and the US
government, pull out all the

687
00:48:57,000 --> 00:49:01,000
stops just like they did when
they shut down the economy.

688
00:49:01,700 --> 00:49:07,800
Forcibly, two years ago.
You saw what the FED did that

689
00:49:08,300 --> 00:49:12,900
and the government did is we're
going to create money and we're

690
00:49:12,900 --> 00:49:17,500
going to make it available.
Now, what happens is, if the

691
00:49:17,500 --> 00:49:23,000
forces of that deflation are too
great than what they do, won't

692
00:49:23,000 --> 00:49:26,900
have an impact.
And that's where I think is

693
00:49:26,900 --> 00:49:34,000
going to get out of control
unless they literally overwhelm

694
00:49:34,100 --> 00:49:38,500
the dollar and you'll be in the
midst of a deflationary crisis

695
00:49:38,900 --> 00:49:43,000
and they literally destroy the
Dollar by making it worthless

696
00:49:43,000 --> 00:49:45,000
by, you know.
All right, we're going to give

697
00:49:45,000 --> 00:49:47,700
everybody a hundred thousand
dollars.

698
00:49:48,500 --> 00:49:53,400
Well, there you go, we're done.
But they might try that and see

699
00:49:53,400 --> 00:49:57,000
the problem is Is we don't know
what they're going to do, except

700
00:49:57,000 --> 00:50:00,800
that they're going to do
everything they can to maintain

701
00:50:01,300 --> 00:50:06,200
their viability and their system
of operation.

702
00:50:06,800 --> 00:50:10,600
Not what's right for us?
So what there's, there's a

703
00:50:10,607 --> 00:50:15,200
couple of things there I want to
unpack because I think you, I

704
00:50:15,200 --> 00:50:19,100
think you illuminated some
things so describe for me.

705
00:50:19,100 --> 00:50:20,700
What the conditions on the
ground?

706
00:50:20,700 --> 00:50:27,700
Would look like versus a credit.
That collapse versus a massive

707
00:50:27,700 --> 00:50:30,700
versus like hyperinflation.
Okay.

708
00:50:32,500 --> 00:50:41,700
Credit collapse would be a
cascading effect of because you

709
00:50:41,700 --> 00:50:46,600
would find instantly, remember
the auto loan cabaco and how and

710
00:50:46,600 --> 00:50:52,200
Education Loans and mortgages.
How much is your house worth?

711
00:50:52,400 --> 00:50:56,700
It's priced in dollars.
You have a deflation and

712
00:50:56,700 --> 00:51:00,200
economic depression.
People are out of work, they

713
00:51:00,200 --> 00:51:03,900
can't generate income.
They can't pay their mortgage,

714
00:51:03,900 --> 00:51:05,600
they can't make their car
payments.

715
00:51:07,200 --> 00:51:11,400
Okay, so you can you can carry
that forward and realize what

716
00:51:11,400 --> 00:51:15,200
that does.
So a connect economic activity,

717
00:51:15,200 --> 00:51:19,700
is there the prices of those
items drops considerably?

718
00:51:19,700 --> 00:51:22,300
Because they're not worth what
we thought they were?

719
00:51:22,500 --> 00:51:27,900
They were only their price was
the loan was based on a certain

720
00:51:27,900 --> 00:51:35,300
price that people pay that price
drops automatically pretty close

721
00:51:35,300 --> 00:51:40,200
to automatically as people can't
make their mortgage payments or

722
00:51:40,200 --> 00:51:44,800
their car payments, but that's
nothing think of everything

723
00:51:44,800 --> 00:51:49,700
economically, that happens.
All our transactions are

724
00:51:49,700 --> 00:51:53,200
everybody.
Everything is based on credit

725
00:51:53,400 --> 00:51:58,900
and digital money.
And where does it go?

726
00:51:59,000 --> 00:52:04,100
I mean it just goes up in smoke
and then you have a government

727
00:52:04,100 --> 00:52:07,600
and Central Bank that says, we
can't let this happen.

728
00:52:08,200 --> 00:52:09,400
We're going to have to help
people.

729
00:52:09,400 --> 00:52:11,500
We're going to spend a lot of
money to do it.

730
00:52:11,500 --> 00:52:16,600
Now, the ability of the
government to create money today

731
00:52:16,900 --> 00:52:24,900
is a lot simpler and quicker
than it was 80 years ago.

732
00:52:25,600 --> 00:52:32,400
So you know what the Roosevelts
programs to put people back to

733
00:52:32,400 --> 00:52:36,300
work and all the other
government, programs, and all

734
00:52:36,300 --> 00:52:41,300
the creation of money that took
place pales in comparison to

735
00:52:41,300 --> 00:52:46,800
what we can do today.
So you'll they will fight and,

736
00:52:46,800 --> 00:52:48,400
and here and this is the
problem.

737
00:52:48,400 --> 00:52:52,100
People make an assumption that
because of certain thing happens

738
00:52:52,600 --> 00:52:56,500
and that that's It government
will react.

739
00:52:57,200 --> 00:53:00,900
We don't know how they'll react,
except that they will do,

740
00:53:00,900 --> 00:53:05,500
whatever is in their best
interest, not ours, and their

741
00:53:05,500 --> 00:53:08,500
best interest is keeping the
system intact.

742
00:53:08,500 --> 00:53:13,700
So they can keep on spending and
passing laws telling us what to

743
00:53:13,700 --> 00:53:21,100
do and the fed that's a banker's
Bank, the fed, the FED will do

744
00:53:21,100 --> 00:53:23,500
everything possible to maintain
a system.

745
00:53:23,600 --> 00:53:28,000
I'm that allows them to continue
to lend their to create money

746
00:53:28,000 --> 00:53:32,500
and lend it.
So with that logic, understood

747
00:53:32,500 --> 00:53:34,600
and those motivations
understood.

748
00:53:34,600 --> 00:53:39,500
Now, you look at what might
happen or not, it's too easy to

749
00:53:39,500 --> 00:53:43,100
Simply say well if that happens
to Federal do this Fizz not

750
00:53:43,100 --> 00:53:47,200
going to do anything that you
think they're going to do, just

751
00:53:47,200 --> 00:53:50,300
because that seems the logical
thing to do.

752
00:53:50,500 --> 00:53:52,700
They're going to do what they
feel.

753
00:53:52,700 --> 00:53:56,900
They need to do.
To keep their end of the thing

754
00:53:56,900 --> 00:54:00,400
intact and if you suffer for it,
so be it.

755
00:54:01,700 --> 00:54:07,600
Wow my next question both with
the with the Weimar Republic and

756
00:54:07,600 --> 00:54:13,200
with Zimbabwe they each had
massive hyperinflation correct

757
00:54:13,200 --> 00:54:16,000
because they debased the the
currency.

758
00:54:16,000 --> 00:54:17,500
Right.
That's right.

759
00:54:18,800 --> 00:54:23,600
Okay.
So what prevents because we've

760
00:54:23,600 --> 00:54:27,200
massively debased, our currency
especially during covid, right?

761
00:54:27,200 --> 00:54:31,200
You can take it back further to
the collapse of 08 when we

762
00:54:31,200 --> 00:54:35,300
bailed out all the banks and the
banks were base.

763
00:54:35,300 --> 00:54:37,700
Even the banks that didn't want
money, it's my understanding

764
00:54:37,700 --> 00:54:39,800
that they were kind of had their
arm.

765
00:54:39,800 --> 00:54:42,900
Twisting said, no, you're going
to take this money because if

766
00:54:42,900 --> 00:54:46,300
you all take it, we don't know
who's really in trouble, right?

767
00:54:48,500 --> 00:54:50,700
On back to the.com bubble,
right?

768
00:54:50,700 --> 00:54:52,400
That was a bailout that took
cash.

769
00:54:52,400 --> 00:55:00,300
So what what has prevented and
what makes hyperinflation

770
00:55:00,300 --> 00:55:05,100
unlikely at this point?
Because if we look at what why

771
00:55:05,100 --> 00:55:08,400
Mar did you know?
And that was the, the, the

772
00:55:08,400 --> 00:55:13,300
ruling party, I guess you will
or the ruling class right

773
00:55:13,300 --> 00:55:14,900
before?
Hitler takes power, right?

774
00:55:14,900 --> 00:55:17,200
It's out of that fear.
I don't gir and everything that

775
00:55:17,200 --> 00:55:22,100
Hitler comes.
To power, what has prevented?

776
00:55:22,100 --> 00:55:24,700
They just fired up the printing
presses and just print it all

777
00:55:24,700 --> 00:55:28,700
this money to pay their War
debt, right and all their their

778
00:55:28,700 --> 00:55:30,800
their penalties for being in
World War.

779
00:55:30,800 --> 00:55:35,600
One Zimbabwe is just jimbob way.
As far as I can tell that

780
00:55:35,600 --> 00:55:37,000
someone thought it was a good
idea.

781
00:55:37,400 --> 00:55:43,300
But what what prevents that from
happening here, okay?

782
00:55:43,400 --> 00:55:46,100
Because if we created, we
printed more money than either

783
00:55:46,100 --> 00:55:48,400
of those kind or both those
countries combined.

784
00:55:48,600 --> 00:55:54,700
Correct, right right II mean, I
don't I don't have any idea but

785
00:55:54,700 --> 00:55:57,900
it's not so much.
The quantity it's the quantity

786
00:55:57,900 --> 00:56:02,900
relative to the supply the
supply of dollars.

787
00:56:03,100 --> 00:56:06,000
What do you s did?
Turn in terms of the supply of

788
00:56:06,008 --> 00:56:09,000
dollars doesn't necessarily
equate.

789
00:56:09,000 --> 00:56:14,700
Similarly one way or the other
to what Zimbabwe or Weimar

790
00:56:14,700 --> 00:56:19,300
Republic did because the supply
of their Currency.

791
00:56:19,700 --> 00:56:25,200
Is totally different and the
recognition of their currency

792
00:56:25,200 --> 00:56:32,900
for use is totally different
still, but it's, it could be

793
00:56:32,900 --> 00:56:38,400
that way, but it's not
necessarily going to because one

794
00:56:38,400 --> 00:56:42,800
thing, the dollar does have as
the reserve currency.

795
00:56:42,800 --> 00:56:48,100
There's a certain factor and so
many people are dependent on

796
00:56:48,100 --> 00:56:52,600
dollars that you don't don't
have quite the same risk.

797
00:56:53,500 --> 00:57:01,400
For that reason.
So status strength and need or

798
00:57:01,400 --> 00:57:07,700
dependency on dollars to certain
transactions because the world

799
00:57:07,900 --> 00:57:12,700
dollar is the world recruit.
Reserve currency are transacted

800
00:57:12,700 --> 00:57:15,500
in dollars.
The two Commodities that are

801
00:57:15,500 --> 00:57:20,100
transacted in dollars on an
international basis are gold and

802
00:57:20,100 --> 00:57:29,600
oil and 3.
The other thing is that The

803
00:57:30,000 --> 00:57:35,800
effects of the feds inflation
are losing their intended

804
00:57:35,900 --> 00:57:40,600
impact.
So, over the years, the more and

805
00:57:40,600 --> 00:57:46,800
more in the purchasing power
that we lose over time.

806
00:57:48,200 --> 00:57:52,300
It takes more and more inflation
by the FED to create it.

807
00:57:53,000 --> 00:58:00,600
So we're we can see a decline
that as the an amount of the

808
00:58:00,600 --> 00:58:04,500
expansion of the supply of money
and credit goes up.

809
00:58:05,200 --> 00:58:11,900
Now trajectory is very steep,
the impact and the effects of it

810
00:58:12,100 --> 00:58:17,800
are declining so we're not
getting the bang.

811
00:58:18,000 --> 00:58:24,500
For the buck.
The FED like a drug addict has

812
00:58:24,500 --> 00:58:30,100
to create more and more
inflation in order to get the

813
00:58:30,100 --> 00:58:35,100
effects they're looking for.
But it's unpredictable, there's

814
00:58:35,100 --> 00:58:38,900
no way to gauge it.
And, and again, and we met I

815
00:58:38,900 --> 00:58:43,900
think we touched on this before.
Think of a drug addict that

816
00:58:43,900 --> 00:58:49,000
first fix, feels really good.
It didn't take much next fix

817
00:58:49,300 --> 00:58:52,400
isn't going to feel quite so
good and you need a little bit

818
00:58:52,400 --> 00:58:55,100
more.
And that's how you become

819
00:58:55,100 --> 00:59:00,200
addicted and that's where we are
in terms of dollars in credit.

820
00:59:01,600 --> 00:59:04,200
Primarily credit, because that's
how they expand the money

821
00:59:04,200 --> 00:59:09,200
supply.
If I can find a purchase with

822
00:59:09,200 --> 00:59:12,000
credit, I buy it.
I mean, that's, that's way it

823
00:59:12,000 --> 00:59:14,300
is, that's the way the world
functions today.

824
00:59:14,300 --> 00:59:18,000
So anything that affects that,
that's implosion, credit

825
00:59:18,000 --> 00:59:22,500
collapsed value of prices of
everything drop.

826
00:59:22,500 --> 00:59:28,800
Then the FED comes out with and
just goes crazy in order to

827
00:59:28,800 --> 00:59:34,300
fight that now, Willie I assume
they will they're still going to

828
00:59:34,300 --> 00:59:38,400
do whatever they need to and
that's when you may see that

829
00:59:38,400 --> 00:59:43,000
hyper inflation risk if they can
overwhelm and overcome those

830
00:59:43,000 --> 00:59:46,000
effects.
But I think the deflation and

831
00:59:46,000 --> 00:59:50,900
the credit collapse will be so
huge that there's nothing the

832
00:59:50,900 --> 00:59:54,800
FED can do about it.
And that, what that does is

833
00:59:54,800 --> 00:59:58,500
allows them and the government
too.

834
00:59:59,800 --> 01:00:03,300
Put all their programs into
effect without creating

835
01:00:03,300 --> 01:00:06,900
hyperinflation because the
effects of the deflation counter

836
01:00:06,900 --> 01:00:13,200
that so you know, all of those
are issues.

837
01:00:13,200 --> 01:00:18,900
But again, the possibility is
there, I just don't I think that

838
01:00:18,900 --> 01:00:23,400
a credit collapse is more likely
but I asked her credit collapse.

839
01:00:23,800 --> 01:00:27,900
At some point that hyper
inflation risk could be much

840
01:00:27,900 --> 01:00:32,100
greater So we could be hit
double definitely hard.

841
01:00:32,100 --> 01:00:34,800
I mean there's there's that
possibility to yeah.

842
01:00:35,100 --> 01:00:39,700
Yeah, but see, whatever comes
first is still lands in a

843
01:00:39,700 --> 01:00:43,900
depression.
You still have it in that class?

844
01:00:44,200 --> 01:00:45,400
Yeah.
And that's kind of where I was

845
01:00:45,400 --> 01:00:47,300
going.
Whether it's, whether it's

846
01:00:47,300 --> 01:00:50,700
hyperinflation or whether it's a
banking collapse, the results

847
01:00:50,700 --> 01:00:57,200
are the same, right, correct.
Like, if you had If you had like

848
01:00:57,400 --> 01:00:59,800
Ebola and cancer both, does it
really matter?

849
01:00:59,800 --> 01:01:01,700
Which one killed you?
The effects are the same.

850
01:01:02,400 --> 01:01:12,000
Yeah, the US dollar like most
all currencies is, is it is

851
01:01:12,000 --> 01:01:18,700
terminally ill.
And it has periods of time where

852
01:01:19,000 --> 01:01:22,300
that illness is in remission
seemingly.

853
01:01:22,300 --> 01:01:28,600
So but in the context of the big
picture is just marching

854
01:01:29,500 --> 01:01:33,900
progressively towards that final
end and that's the way

855
01:01:33,900 --> 01:01:37,500
currencies are because
governments always inflate and

856
01:01:37,500 --> 01:01:42,700
destroy their own currencies.
And really being tied to that

857
01:01:42,700 --> 01:01:47,200
gold standard if we could
somehow figure it out to make it

858
01:01:47,200 --> 01:01:51,100
stick.
That's, that's the the vaccine

859
01:01:51,100 --> 01:01:53,600
if you will.
I mean a real working vaccine

860
01:01:53,600 --> 01:01:56,200
to, to the problems, we're
seeing now, right?

861
01:01:56,600 --> 01:02:00,300
If the government would stay on
the go work, it can work, but

862
01:02:00,700 --> 01:02:05,200
remember, and this is what I
think is the biggest argument

863
01:02:05,200 --> 01:02:07,700
against expecting or seeing that
is no.

864
01:02:07,700 --> 01:02:10,400
Government is going to
voluntarily.

865
01:02:11,200 --> 01:02:16,900
Agree to do something like that
because it ruins everything

866
01:02:16,900 --> 01:02:19,200
else.
If they're doing and no words,

867
01:02:19,700 --> 01:02:23,600
they lose their control and
power to the extent.

868
01:02:23,600 --> 01:02:27,200
They agree to convertibility,
not just backing it.

869
01:02:27,200 --> 01:02:30,400
It has to be convertible.
People have to be able to

870
01:02:30,400 --> 01:02:35,100
exchange the dollars or whatever
currency it is, and get physical

871
01:02:35,100 --> 01:02:38,800
gold for it.
If otherwise, the convertibility

872
01:02:38,800 --> 01:02:42,400
doesn't mean anything.
And then, can they, can they be

873
01:02:42,400 --> 01:02:46,600
trusted, are they going to stop
printing dollars because there's

874
01:02:46,600 --> 01:02:52,200
convertibility, not likely.
And that means we eventually see

875
01:02:52,200 --> 01:02:55,600
the same thing again.
So, it'll be very difficult.

876
01:02:56,200 --> 01:03:01,800
You'd have to have some big
changes in government and, and,

877
01:03:02,900 --> 01:03:07,600
you know, the attitudes of those
who are there, I don't care what

878
01:03:07,600 --> 01:03:10,600
their political affiliation is
most of them soon.

879
01:03:10,800 --> 01:03:17,100
Are going to do something that's
going to stop them from

880
01:03:17,100 --> 01:03:22,400
spending, like drunken Sailors
or stop the Federal Reserve from

881
01:03:22,400 --> 01:03:28,100
being able to expand or Banks
from being able to expand the

882
01:03:28,100 --> 01:03:32,700
credits Supply and lend more
money, so they're not going to

883
01:03:32,707 --> 01:03:35,500
voluntarily give that up.
And neither are other

884
01:03:35,500 --> 01:03:39,900
governments in other countries.
So, there would have to be some

885
01:03:40,200 --> 01:03:45,700
real Real Awakening by the
world, over to see something.

886
01:03:47,000 --> 01:03:49,900
Along those lines.
Gotcha.

887
01:03:53,100 --> 01:03:59,200
So, how would?
In those situations where we're

888
01:03:59,200 --> 01:04:02,300
talking about utter economic
Devastation.

889
01:04:02,300 --> 01:04:06,800
How does gold help?
The average person having gold

890
01:04:10,000 --> 01:04:13,800
If we're talking about economic
Devastation, that depends on

891
01:04:13,800 --> 01:04:15,900
what's happening with the US
dollar.

892
01:04:17,500 --> 01:04:20,200
The Great Depression was
economic travesty.

893
01:04:20,700 --> 01:04:24,200
I mean, the amount of you're
talking about 25 to 30 percent

894
01:04:24,200 --> 01:04:29,100
people, unemployed at Peak and
then staying at 20% for the

895
01:04:29,100 --> 01:04:34,300
remainder of the 30s, that's
economic Devastation.

896
01:04:34,300 --> 01:04:37,400
And that's official numbers.
How much worse was it?

897
01:04:38,400 --> 01:04:44,800
And so, but the dollar was
strong, see the currency itself,

898
01:04:44,800 --> 01:04:48,600
bought more.
Because stock prices, real

899
01:04:48,600 --> 01:04:53,900
estate prices everything
collapsed so you have economic

900
01:04:53,900 --> 01:05:01,000
Devastation but the US dollar
increased in purchasing power,

901
01:05:01,000 --> 01:05:04,800
you could go out and you could
buy more during the Depression

902
01:05:04,800 --> 01:05:08,000
with your dollars is just that
there weren't that many dollars

903
01:05:08,000 --> 01:05:12,000
out there.
And that's the situation.

904
01:05:12,000 --> 01:05:18,200
Now is the same thing.
It's not, it's the strength and

905
01:05:18,200 --> 01:05:23,200
purchasing power of the dollar.
So if you have hyperinflation

906
01:05:23,200 --> 01:05:28,700
the dollars worthless then gold
retains its purchasing power.

907
01:05:28,700 --> 01:05:33,400
It doesn't mean you profit from
it is that you can buy with that

908
01:05:33,400 --> 01:05:37,100
gold even if the dollars
worthless what you can buy

909
01:05:37,100 --> 01:05:40,100
today?
That's where gold comes in in a

910
01:05:40,100 --> 01:05:44,500
situation like that if you have
a collapse.

911
01:05:45,400 --> 01:05:50,400
In the economy.
And accredit collapse in the

912
01:05:50,408 --> 01:05:54,900
prices of goods and services
decline, which they will when

913
01:05:54,900 --> 01:05:58,300
the economic activity, declines,
as well.

914
01:05:58,500 --> 01:06:03,300
Prices of everything goes down.
Then you have a stronger US

915
01:06:03,300 --> 01:06:06,900
dollar It means you can buy more
with it.

916
01:06:06,900 --> 01:06:11,300
The price of gold will decline,
but in terms of purchasing

917
01:06:11,300 --> 01:06:17,500
power, It's going to cost you
less for those things so you may

918
01:06:17,500 --> 01:06:21,500
still be able to buy comparable
amounts with the gold you have.

919
01:06:21,600 --> 01:06:25,400
It's just that in terms of the
price, it will definitely be

920
01:06:25,400 --> 01:06:28,500
lower.
So it depends on how high it was

921
01:06:28,500 --> 01:06:32,100
relative to all.
This is everything seeks a value

922
01:06:32,100 --> 01:06:36,100
depending on those changes
either up or down what's the

923
01:06:36,100 --> 01:06:40,600
price in dollars.
So you'll see the price drop

924
01:06:40,600 --> 01:06:46,900
along with everything else.
And so it's not necessarily in

925
01:06:46,900 --> 01:06:50,400
either case, it's a matter of
purchasing power but that means

926
01:06:50,400 --> 01:06:55,200
that the real purchasing power
increase is going to come by

927
01:06:55,200 --> 01:06:59,300
holding dollars.
If it's a deflationary collapse,

928
01:06:59,300 --> 01:07:01,600
just the obvious what people are
looking for.

929
01:07:02,700 --> 01:07:07,500
At least initially until the
government decides to do

930
01:07:07,500 --> 01:07:09,700
something to fight it or make it
better.

931
01:07:11,700 --> 01:07:14,800
Wow.
Hey, we have a traditional

932
01:07:14,800 --> 01:07:19,500
credit collapse, the price of
gold will go down right now,

933
01:07:19,500 --> 01:07:21,800
okay?
And that's all there is to it.

934
01:07:21,800 --> 01:07:27,800
Now, if, if you can buy a house
for, you know, I like to use,

935
01:07:28,000 --> 01:07:31,900
you know, what's the price at
eighty percent mortgage, and you

936
01:07:31,900 --> 01:07:33,900
got a house, that's a million
dollars.

937
01:07:36,400 --> 01:07:40,800
And if we have a price collapse,
how much is that house valued?

938
01:07:41,000 --> 01:07:44,500
Let's say it's drops 80%.
That's not unrealistic.

939
01:07:44,700 --> 01:07:53,100
There's a total collapse.
Okay so does the price of gold

940
01:07:53,100 --> 01:07:57,400
drop comparably or not, but I
know there's going to be a price

941
01:07:57,400 --> 01:07:59,800
for that gold if I can still buy
the house.

942
01:07:59,800 --> 01:08:03,500
I haven't lost in terms of
purchasing power because that's

943
01:08:03,500 --> 01:08:07,700
what money is its value, is in
what you can buy with it.

944
01:08:07,900 --> 01:08:13,300
The only reason gold is priced
in dollars has to do with the

945
01:08:13,300 --> 01:08:17,300
system we have, which was part
of the Bretton Woods agreement

946
01:08:17,399 --> 01:08:22,600
and U.s. does influence that
made the US dollar, the reserve

947
01:08:22,600 --> 01:08:26,500
currency and all transactions
in.

948
01:08:26,800 --> 01:08:31,600
What two things, critical items
are going to be the most

949
01:08:31,600 --> 01:08:40,200
important dollars and oil and
what that means is if you own

950
01:08:40,200 --> 01:08:45,100
any other currency, if you're a
holder of any other currency, It

951
01:08:45,100 --> 01:08:49,600
still depends on what your
currency is valued relative to

952
01:08:49,600 --> 01:08:53,300
the dollar in order to see how
much it's going to cost you.

953
01:08:53,399 --> 01:08:57,100
And that again is one of the
reasons because that the dollar

954
01:08:57,100 --> 01:09:03,100
has strength.
It, it may you'll see

955
01:09:03,100 --> 01:09:08,399
disruptions, but as long as
those things are there, there's

956
01:09:08,399 --> 01:09:12,399
nothing else and even if they
weren't people talk about a

957
01:09:12,399 --> 01:09:15,600
reserve currency.
Some Something else.

958
01:09:17,000 --> 01:09:18,700
What's going to replace the
dollar?

959
01:09:18,899 --> 01:09:23,200
What are people going to say?
Oh yeah, I want to hold Chinese

960
01:09:23,300 --> 01:09:26,399
you want?
This is a rem be better than the

961
01:09:26,399 --> 01:09:30,300
dollar or is, is the Euro better
than the dollar?

962
01:09:31,399 --> 01:09:36,200
No, I don't think that'll work.
They're had, they've got their

963
01:09:36,200 --> 01:09:39,600
own problems.
I can see why they would want

964
01:09:39,600 --> 01:09:43,800
the US dollar displaced, but it
doesn't mean there's an answer

965
01:09:43,800 --> 01:09:46,700
for it.
And there's something else will

966
01:09:46,700 --> 01:09:50,800
work better.
Gotcha.

967
01:09:52,300 --> 01:09:56,600
Got you so really it really is
dependent upon what what kind of

968
01:09:57,100 --> 01:10:02,200
economic crisis were dealing
with where gold determines?

969
01:10:02,200 --> 01:10:07,400
How much gold can help what?
And that's why there's always a

970
01:10:07,400 --> 01:10:16,400
reason to own have cash liquid.
As an emergency as much as it is

971
01:10:16,400 --> 01:10:21,200
dollars, they're both money.
We just don't know what's going

972
01:10:21,200 --> 01:10:23,200
to happen.
You know, if you want to be

973
01:10:23,200 --> 01:10:27,700
totally apocalyptic, you put 50%
of your reserves and cash and

974
01:10:27,700 --> 01:10:30,200
50% in gold and go back to
sleep.

975
01:10:30,700 --> 01:10:33,600
But that would mean you'd be
giving up the opportunity for

976
01:10:33,700 --> 01:10:37,000
any investment profits and you
know, so you wouldn't

977
01:10:37,000 --> 01:10:40,800
necessarily do that with
anything just depends on what's

978
01:10:40,800 --> 01:10:44,600
your sleep threshold, you know,
right.

979
01:10:45,000 --> 01:10:50,300
Are you that we're going to see
this and how soon and How much

980
01:10:50,300 --> 01:10:54,700
are you willing to bet on that
particular scenario?

981
01:10:56,400 --> 01:11:00,300
Right.
So what all have we missed in

982
01:11:00,300 --> 01:11:02,700
the history of gold?
I feel like we glossed over it

983
01:11:02,700 --> 01:11:08,400
really quickly.
I don't know that we necessarily

984
01:11:08,400 --> 01:11:12,700
missed anything because I think
what's important is that people

985
01:11:12,700 --> 01:11:17,000
recognize gold is not just real
money, its original Money.

986
01:11:17,000 --> 01:11:22,000
Go was money before the dollar
before other currencies dollar

987
01:11:22,000 --> 01:11:25,700
as a currency has a history of
well over 200 years, there's

988
01:11:25,700 --> 01:11:30,700
nothing wrong with that and it
was tied with to fix ratios and

989
01:11:30,700 --> 01:11:34,600
the long as that was there and
governments kept their promise.

990
01:11:35,000 --> 01:11:39,000
It's fine.
So it's like I can remember as a

991
01:11:39,008 --> 01:11:44,900
kid, you know, I'd say hey this
says pay to the bearer on demand

992
01:11:47,200 --> 01:11:50,400
Twenty dollars in gold twenty
dollars in gold.

993
01:11:50,400 --> 01:11:53,500
And then the next time I looked
at something it said it said

994
01:11:53,500 --> 01:12:00,600
paid in the bearer on demand $5
what why what's the difference

995
01:12:00,700 --> 01:12:03,200
and I started thinking to
myself, wait a second.

996
01:12:03,200 --> 01:12:06,200
So if I turn this in, they're
going to give me $5 back.

997
01:12:06,600 --> 01:12:10,300
We would, why is that?
I didn't mean, I started asking

998
01:12:10,300 --> 01:12:13,100
all sorts of questions when I
was a kid about this kind of

999
01:12:13,100 --> 01:12:17,100
stuff.
So, history, the history is Are

1000
01:12:17,800 --> 01:12:19,600
okay.
The history goes back.

1001
01:12:19,600 --> 01:12:25,700
A long time and it's a gradual
erosion of Independence and

1002
01:12:25,700 --> 01:12:31,000
personal freedom.
And see that's what I don't

1003
01:12:31,000 --> 01:12:35,800
think that that and it took me
years to make this connection,

1004
01:12:36,300 --> 01:12:40,500
right?
Is that realistically one of the

1005
01:12:40,500 --> 01:12:44,400
promises actions they promises?
Well yeah, one of the promises

1006
01:12:44,400 --> 01:12:53,400
of the United States was that if
you were If you worked hard, if

1007
01:12:53,400 --> 01:12:56,500
you did what you were supposed
to.

1008
01:12:56,500 --> 01:13:00,100
If you make good decisions, you
could get to a point to where

1009
01:13:00,100 --> 01:13:05,500
you could buy your Financial
Freedom right by investing by,

1010
01:13:06,000 --> 01:13:08,700
by making sound financial
decisions.

1011
01:13:09,800 --> 01:13:15,400
If you've tied yourself to one
specific, kind of investment or

1012
01:13:15,400 --> 01:13:17,900
currency, you're not really
free.

1013
01:13:17,900 --> 01:13:19,300
Your kind of dependent upon
that.

1014
01:13:19,300 --> 01:13:27,400
So with gold, you, you always
have an ability in some

1015
01:13:27,400 --> 01:13:31,000
catastrophic situations to
maintain that freedom.

1016
01:13:31,000 --> 01:13:38,500
And it took me years to put that
all together because you don't

1017
01:13:38,500 --> 01:13:42,700
necessarily think about Him
being tied to money, but it

1018
01:13:42,700 --> 01:13:45,400
really is the truth, right?
I mean, that's the whole point

1019
01:13:45,400 --> 01:13:48,800
of having a paid off mortgages
and hopes of not having that

1020
01:13:48,800 --> 01:13:51,100
mortgage there.
Although then, they soak in

1021
01:13:51,100 --> 01:13:58,400
property taxes, but you get
closer. so, it took forever and

1022
01:14:00,500 --> 01:14:05,700
Do you think that's that's been
hard for people to to put that

1023
01:14:05,700 --> 01:14:08,400
together?
Because of the way that they've

1024
01:14:08,400 --> 01:14:11,900
been taught or the fact that we
just take for granted that the

1025
01:14:11,900 --> 01:14:16,000
dollars always worth something.
Why is it why is it so hard for

1026
01:14:16,000 --> 01:14:17,800
people to wrap their minds
around that?

1027
01:14:19,600 --> 01:14:23,000
It's a good question but we're
not told the truth.

1028
01:14:23,000 --> 01:14:27,000
That's for sure.
And we're told things in ways

1029
01:14:27,000 --> 01:14:31,400
that Color it differently, you
know, like, the term Rose

1030
01:14:31,400 --> 01:14:39,400
Colored Glasses.
Everybody has an opinion but

1031
01:14:39,400 --> 01:14:43,600
it's based on what they hear and
what they're told.

1032
01:14:44,800 --> 01:14:48,100
And what they, what they hear
and what they're told aren't

1033
01:14:48,100 --> 01:14:54,900
always the same.
And they're usually not correct

1034
01:14:54,900 --> 01:14:59,700
and factual.
For example, when you read

1035
01:14:59,700 --> 01:15:07,200
something in the media at all or
hear a news report there is an

1036
01:15:07,200 --> 01:15:10,000
intention behind what you're
told.

1037
01:15:12,300 --> 01:15:15,600
To paint it a picture, a certain
way.

1038
01:15:17,800 --> 01:15:22,700
And certain things are not
included in that report or that

1039
01:15:22,700 --> 01:15:29,800
article, because they will alter
the impression that's given and

1040
01:15:29,800 --> 01:15:34,100
intended to be given.
Then you have people who View

1041
01:15:34,800 --> 01:15:39,700
events, see them, hear them hear
about them.

1042
01:15:40,500 --> 01:15:43,700
And we're all different.
So we all come up with our own

1043
01:15:43,700 --> 01:15:47,500
impression about what that
means, you can have three

1044
01:15:47,700 --> 01:15:51,600
Witnesses to an event and
everyone I was going to come

1045
01:15:51,600 --> 01:15:55,100
away with a different
description or idea about it

1046
01:15:55,900 --> 01:15:59,400
that some change or variation of
the facts.

1047
01:16:00,500 --> 01:16:07,100
So yeah, you throw that into the
mix and and go back.

1048
01:16:07,100 --> 01:16:11,100
And if you're not thinking about
it, if you're not looking,

1049
01:16:11,200 --> 01:16:16,400
you're not going to see the
gradual erosion that takes place

1050
01:16:16,400 --> 01:16:19,300
over time.
Little by little.

1051
01:16:19,300 --> 01:16:22,300
That's why we talk about dollars
today.

1052
01:16:22,500 --> 01:16:25,500
You and I are sitting have a
conversation, we could have very

1053
01:16:25,500 --> 01:16:30,200
well have had 20 years ago.
We could have had it 30 years

1054
01:16:30,200 --> 01:16:33,500
ago.
What's the difference in the

1055
01:16:33,500 --> 01:16:36,900
purchasing power of the dollar
today versus 20 years ago or 30

1056
01:16:36,900 --> 01:16:40,900
years ago?
Help when I got out of cotton

1057
01:16:40,900 --> 01:16:44,000
and we can go back farther, it's
not unrealistic.

1058
01:16:44,600 --> 01:16:47,900
I mean, I graduated from college
in 1970.

1059
01:16:50,100 --> 01:16:58,500
Before the oil embargo.
And the events of the 70s honey

1060
01:16:58,800 --> 01:17:06,400
used to cost me two bucks to
fill up my tank. 25 cents a

1061
01:17:06,400 --> 01:17:11,700
gallon.
You know, when I was a kid I'd

1062
01:17:11,700 --> 01:17:17,800
ride my bicycle store and I'd
buy the small bottles of 7Up

1063
01:17:18,300 --> 01:17:22,200
ice-cold in a machine.
They were in like seven or eight

1064
01:17:22,200 --> 01:17:24,100
ounces.
A nickel.

1065
01:17:25,900 --> 01:17:29,900
And I could get a candy bar, a
big candy bar for a nickel.

1066
01:17:31,300 --> 01:17:34,900
And thereby a comic book for 10
cents and I ride my bike bicycle

1067
01:17:37,100 --> 01:17:41,900
and that was in the 60s, early,
early to mid 60's.

1068
01:17:43,600 --> 01:17:48,200
And we've cut, we've just I
can't go back and tell you,

1069
01:17:48,200 --> 01:17:52,700
here's when things changed
because everything proceeded,

1070
01:17:52,700 --> 01:17:56,800
very realistically and normal.
And then I look at some of my

1071
01:17:57,600 --> 01:18:01,400
memorabilia and I pull out a
letter or something, and it's

1072
01:18:01,400 --> 01:18:05,100
got a 3-cent stamp on it.
And now, we're talking about 60

1073
01:18:05,100 --> 01:18:10,000
cents, right?
Well, that happened a little bit

1074
01:18:10,000 --> 01:18:13,000
at a time.
People don't read you did, we

1075
01:18:13,000 --> 01:18:16,000
didn't see it go from three
cents to 60, we saw it.

1076
01:18:16,000 --> 01:18:18,600
Go from Three cents to Four
Cents.

1077
01:18:18,900 --> 01:18:23,100
We saw it go from four cents.
If I says, well, I saw all of

1078
01:18:23,108 --> 01:18:30,400
that I can remember change.
It was all silver and and even

1079
01:18:30,400 --> 01:18:35,600
after, Lyndon Johnson, there was
sober in circulation, they just

1080
01:18:35,600 --> 01:18:42,100
weren't many it that way.
So, it happens a little bit at a

1081
01:18:42,100 --> 01:18:51,600
time and other than I think
special events like, President

1082
01:18:51,600 --> 01:18:57,200
Roosevelt, President Nixon.
And, you know, we look back at

1083
01:18:57,400 --> 01:19:01,200
certain Wars and things like
that, but we really don't see

1084
01:19:01,200 --> 01:19:06,000
the changes.
Oh, and until we take time and

1085
01:19:06,000 --> 01:19:09,700
look back and jump a couple
decades back and say wow that

1086
01:19:09,700 --> 01:19:13,200
was that was an event.
That was really something that

1087
01:19:13,200 --> 01:19:16,600
was significant.
They raised the price of

1088
01:19:16,600 --> 01:19:20,700
something or they did and and
they had never done that.

1089
01:19:21,300 --> 01:19:26,300
And and then it becomes hey, no
postal service has raised the

1090
01:19:26,300 --> 01:19:30,200
prices three times in the last
less than a year and a half

1091
01:19:30,900 --> 01:19:35,200
because I ship a lot.
Of stuff out Media Mail because

1092
01:19:35,200 --> 01:19:39,500
of my eBay stuff.
You know I do vinyl records and

1093
01:19:39,600 --> 01:19:44,000
stuff like that and it's like I
washed the price, you know,

1094
01:19:44,200 --> 01:19:50,500
email and audio stuff and at one
point a few years ago is like

1095
01:19:50,900 --> 01:19:59,000
$2.80 and then it was 3:19 and
then it was 340 and 389 and and

1096
01:19:59,000 --> 01:20:03,500
it's just Progressive and and so
at some point People wake up and

1097
01:20:03,500 --> 01:20:06,500
they say is it happens more
quickly and then they say I need

1098
01:20:06,500 --> 01:20:09,400
to do something.
I need to protect myself but

1099
01:20:09,700 --> 01:20:12,300
we're not not going to see The
Awakening.

1100
01:20:12,300 --> 01:20:14,900
I don't think until something
catastrophic happens.

1101
01:20:15,000 --> 01:20:18,500
Sure, let me ask you this
because there seems to be some

1102
01:20:19,000 --> 01:20:22,100
exponential returns.
Now if you will at this point

1103
01:20:22,200 --> 01:20:27,300
because it seems like You talked
about all the things you could

1104
01:20:27,300 --> 01:20:29,700
do as a kid, right?
And what you could buy for a

1105
01:20:29,700 --> 01:20:34,100
nickel, and it seems like it was
pretty close to that from like

1106
01:20:34,100 --> 01:20:36,600
the 1900s clear through the
1970s.

1107
01:20:37,800 --> 01:20:40,500
And then from the 70s, we start
seeing it, right?

1108
01:20:40,500 --> 01:20:44,100
We really start seeing this.
This price go up now, granted,

1109
01:20:44,100 --> 01:20:48,300
it was still gradual but it
wasn't as gradual as say from

1110
01:20:48,300 --> 01:20:54,200
1902 1960.
So it seems like the speed at

1111
01:20:54,200 --> 01:20:58,200
which Things Are Our happening
has increased.

1112
01:20:58,200 --> 01:20:59,900
Is that true?
Is that true or false?

1113
01:20:59,900 --> 01:21:03,700
Or is that just perception?
I think part of it is

1114
01:21:03,700 --> 01:21:06,300
perception.
I'm not saying entirely all of

1115
01:21:06,300 --> 01:21:10,100
it, definitely the speed and
quantity, but that's a part of

1116
01:21:10,100 --> 01:21:13,800
the efforts.
That what I said earlier, about

1117
01:21:13,900 --> 01:21:17,600
the efforts by the fed and the
government, they can't print

1118
01:21:17,600 --> 01:21:20,300
money enough to get the effects
they want.

1119
01:21:20,500 --> 01:21:24,700
It's lessening over time.
So that's part of it, but part

1120
01:21:24,700 --> 01:21:27,000
of it is Is what you just talked
about.

1121
01:21:27,000 --> 01:21:32,700
You go back and you look at the
way things happened.

1122
01:21:33,800 --> 01:21:37,600
They were relatively stable, but
it was in the late 60s.

1123
01:21:37,600 --> 01:21:41,600
If you remember when governments
finally woke up and that's

1124
01:21:41,600 --> 01:21:48,000
because there was a fixed goal
price and we had gone through a

1125
01:21:48,000 --> 01:21:51,600
depression.
So people had more more recently

1126
01:21:51,600 --> 01:21:55,200
thinking about things in terms
of the deflation and the

1127
01:21:55,400 --> 01:21:59,500
Freshen, they're not thinking of
things the threat of inflation

1128
01:21:59,800 --> 01:22:03,600
and there was a spurt after the
war, but then, as things, the

1129
01:22:03,600 --> 01:22:08,900
economy, improve the 50s and the
60s things were relatively good.

1130
01:22:09,000 --> 01:22:14,000
But then, that's where, when
people started, recognizing wait

1131
01:22:14,000 --> 01:22:16,600
a second, I can't buy with a
dollar today.

1132
01:22:16,600 --> 01:22:22,200
What I could 15 years ago, 20
years ago and then foreign oil

1133
01:22:22,200 --> 01:22:24,700
companies.
Hey, wait a second, this is the

1134
01:22:24,700 --> 01:22:27,400
what we have.
Agree to your dollar is not the

1135
01:22:27,400 --> 01:22:30,200
same and you raise the price of
gold.

1136
01:22:30,400 --> 01:22:34,100
So they got they got angry and
rightfully so.

1137
01:22:36,300 --> 01:22:39,100
So that's when I think people
awoke.

1138
01:22:39,200 --> 01:22:42,100
And then, and what really de
probably did it, one of the

1139
01:22:42,108 --> 01:22:48,700
defining events when President,
Nixon said, we're not going to

1140
01:22:48,700 --> 01:22:54,800
give you your gold.
Oil Embargo, two years later and

1141
01:22:54,800 --> 01:22:57,900
the gold started going up anyway
in price.

1142
01:22:58,300 --> 01:23:02,800
So they wanted their gold.
They couldn't get it.

1143
01:23:02,800 --> 01:23:07,300
People the world over
recognizing the dollar wasn't as

1144
01:23:07,300 --> 01:23:10,600
good as gold and wasn't what it
was supposed to be in terms of

1145
01:23:10,600 --> 01:23:12,700
value and purchasing power
anymore.

1146
01:23:13,000 --> 01:23:20,100
So you had a period where a lot
of things were happening and Now

1147
01:23:20,108 --> 01:23:24,500
goals, got to find its place.
There's a market for goal.

1148
01:23:24,500 --> 01:23:27,000
We just don't recognize it.
That's what Nixon said.

1149
01:23:27,000 --> 01:23:28,800
Here, you guys want to trade
gold?

1150
01:23:28,800 --> 01:23:32,200
Go ahead, we're not going to
stop you but and there were

1151
01:23:32,200 --> 01:23:36,800
forms a goal that US citizens
could buy and invest in because

1152
01:23:36,800 --> 01:23:38,900
they didn't come under the
classification.

1153
01:23:38,900 --> 01:23:42,700
And I think the other reason
that the government didn't make

1154
01:23:42,700 --> 01:23:47,000
an issue about it is because
they knew they were fighting a

1155
01:23:47,000 --> 01:23:51,500
losing path and that there had
to be a way. people, because

1156
01:23:51,600 --> 01:23:55,500
there would have been an
upheaval Because they are

1157
01:23:55,500 --> 01:24:02,900
continue to inflict.
Force cheaper dollars on people

1158
01:24:03,000 --> 01:24:08,100
all the time, so there had to be
a way for people to do.

1159
01:24:08,100 --> 01:24:13,200
So you have this explosion in
the price of gold to find its

1160
01:24:13,200 --> 01:24:17,600
value based on what had happened
over 40 years, 30 or 40 years,

1161
01:24:18,800 --> 01:24:23,000
And and so and you had an Arab
Oil Embargo.

1162
01:24:23,300 --> 01:24:26,400
Well, you have a combination and
then the effects of the

1163
01:24:26,400 --> 01:24:30,300
inflation started showing up in
the prices of every goods and

1164
01:24:30,300 --> 01:24:36,900
services and all of that's
happening at the same time, that

1165
01:24:36,900 --> 01:24:42,300
was an Awakening.
And so up until 1980.

1166
01:24:43,300 --> 01:24:46,200
It's like that was the focus.
It was kind of like, now all my

1167
01:24:46,200 --> 01:24:49,700
gosh, this is going to go crazy.
What happened?

1168
01:24:50,000 --> 01:24:55,300
Well, for one thing Volker press
chairman of the FED volcker.

1169
01:24:55,300 --> 01:25:00,500
At the time said, we're going to
do things differently, we're

1170
01:25:00,500 --> 01:25:02,500
going to have to do something
differently.

1171
01:25:02,500 --> 01:25:07,000
If we want to kick this stuff
and that meant not monetizing

1172
01:25:07,000 --> 01:25:10,100
the debt.
And the focus was on interest

1173
01:25:10,100 --> 01:25:12,800
rates.
Now we've gone Way, Beyond the

1174
01:25:12,800 --> 01:25:16,100
idea of ever hoping not to
monetize the debt and we're

1175
01:25:16,100 --> 01:25:21,100
raising interest rates.
So it's a combination of two

1176
01:25:21,100 --> 01:25:23,200
things that are going to be very
difficult.

1177
01:25:23,200 --> 01:25:31,500
But anyway, we came out of that
and as a result of it and it

1178
01:25:31,500 --> 01:25:34,700
again, it is an argue to argue
right or wrong.

1179
01:25:34,700 --> 01:25:38,100
The fact of the matter is what
happened happened?

1180
01:25:38,400 --> 01:25:45,900
And we had a period. we entered
a period of 20 years, the most

1181
01:25:47,300 --> 01:25:51,200
Unbelievable growth
economically, speaking in the

1182
01:25:51,200 --> 01:25:55,600
history of this country.
It, we Rose above all of the

1183
01:25:55,600 --> 01:25:59,100
problems.
You know, the American Spirit

1184
01:25:59,100 --> 01:26:03,200
was never on displayed better in
the 80s and 90s for what

1185
01:26:03,200 --> 01:26:05,600
happened.
We got a little crazy at the

1186
01:26:05,600 --> 01:26:10,400
end, buying stocks of companies
that would likely never show a

1187
01:26:10,400 --> 01:26:15,900
profit at all, or paying
multiples of earnings that were

1188
01:26:15,900 --> 01:26:19,400
200 years out, you know?
And there was no G justification

1189
01:26:19,400 --> 01:26:23,600
for, but the point is, there was
enough economic activity to

1190
01:26:23,600 --> 01:26:29,400
justify big increases in stocks
over Multiple years and even a

1191
01:26:29,407 --> 01:26:33,300
couple of decades.
Was it a problem?

1192
01:26:34,000 --> 01:26:39,100
Then the beginning of the
century, we saw several things

1193
01:26:39,100 --> 01:26:42,200
happen, we've had nothing.
We've been on a rollercoaster

1194
01:26:42,500 --> 01:26:46,700
financially and economically
since the 21st century start.

1195
01:26:47,300 --> 01:26:49,200
So people are much more aware of
it.

1196
01:26:49,400 --> 01:26:53,000
They see it more quickly.
Now, they're studying it.

1197
01:26:53,800 --> 01:26:56,200
People talking about it today.
Weren't the ones that were

1198
01:26:56,200 --> 01:27:01,600
talking about it, 40 years ago,
that was me and others who grew

1199
01:27:01,600 --> 01:27:05,000
up in Area.
They don't know what's going on

1200
01:27:05,000 --> 01:27:08,700
and they're learning.
But unless they have that

1201
01:27:08,700 --> 01:27:11,700
perspective is going to be very
difficult to give people advice

1202
01:27:11,700 --> 01:27:18,200
and tell them what to do.
So but people are aware but

1203
01:27:18,200 --> 01:27:24,600
they're aware of it in a way
that is there convinced just

1204
01:27:24,600 --> 01:27:28,300
like the people 40 years ago
were that it was going to

1205
01:27:28,300 --> 01:27:31,100
continue their was going to get
out of hand.

1206
01:27:31,100 --> 01:27:34,700
It was going to go Sky.
High goals going to go Sky High

1207
01:27:34,700 --> 01:27:38,500
inflation is going to Skyrocket.
This is you know that's the way

1208
01:27:38,500 --> 01:27:43,100
they're looking at it.
I heard inflation argument so

1209
01:27:43,100 --> 01:27:49,600
much from so many people.
All through the early 80s and it

1210
01:27:49,600 --> 01:27:51,600
was like they couldn't get off
that kick.

1211
01:27:51,600 --> 01:27:55,000
They couldn't believe that goal
wasn't going to turn around and

1212
01:27:55,000 --> 01:28:00,300
rock it and go to 1,000 and
dropped as low as 250 dollars an

1213
01:28:00,300 --> 01:28:04,500
ounce after hitting 850, and it
took 20 years to do that.

1214
01:28:05,400 --> 01:28:10,300
So, but it was all during Good
Times, financially and

1215
01:28:10,300 --> 01:28:15,200
economically, but we've had, you
know, we've seen, we had an

1216
01:28:15,200 --> 01:28:21,500
economic depression.
We had excellent economic

1217
01:28:21,800 --> 01:28:25,100
conditions and prosperity during
the 80s and the 90s.

1218
01:28:26,400 --> 01:28:31,500
We're likely not looking at good
Economic Times ahead, but it

1219
01:28:31,500 --> 01:28:35,500
still comes down to what happens
to the u.s. dollar because you

1220
01:28:35,500 --> 01:28:37,900
can have economic depression
with it.

1221
01:28:37,900 --> 01:28:41,100
That's not bad for the dollar.
That's good for the dollar.

1222
01:28:41,100 --> 01:28:46,200
When deflation is accompanying,
it is only when inflation is

1223
01:28:46,200 --> 01:28:49,500
there the effects of inflation
or so bad.

1224
01:28:49,500 --> 01:28:52,400
That the cheapens the value very
quickly.

1225
01:28:52,900 --> 01:28:56,000
I don't, I'm not convinced that
that's where we're going right

1226
01:28:56,000 --> 01:29:00,100
now.
Got you so real quick, you

1227
01:29:00,100 --> 01:29:05,000
mention this earlier in our
conversation and I wanted to get

1228
01:29:05,000 --> 01:29:08,200
back to that because I think
it's vitally important that

1229
01:29:08,200 --> 01:29:11,900
people understand what it is and
you meant mentioned Bretton

1230
01:29:11,900 --> 01:29:14,400
Woods.
Could you just kind of explain

1231
01:29:14,400 --> 01:29:20,600
what that was?
Well, as much as I've read about

1232
01:29:20,600 --> 01:29:24,900
that a number of times because
it's important but we don't hear

1233
01:29:24,900 --> 01:29:29,800
it referred to often enough.
Essentially what it was it was

1234
01:29:29,800 --> 01:29:35,500
an agreement to let currencies
float against each other and

1235
01:29:35,500 --> 01:29:39,300
that was where the u.s. secured
the agreement.

1236
01:29:39,300 --> 01:29:42,500
That the dollar would be the
world's Reserve currency and

1237
01:29:42,500 --> 01:29:47,400
that as a reserve currency gold
and oil would be priced in

1238
01:29:47,400 --> 01:29:52,000
dollars.
I can tell you that but I'd feel

1239
01:29:52,000 --> 01:29:57,100
uncomfortable trying to pick my
brain without going back in and

1240
01:29:57,100 --> 01:30:01,100
reading the actual effects of
that agreement.

1241
01:30:01,100 --> 01:30:05,400
But it is what put the dollar in
place as the world's Reserve

1242
01:30:05,400 --> 01:30:09,400
currency.
And, and that was probably the

1243
01:30:09,400 --> 01:30:12,500
most important thing that came
out of that for the United

1244
01:30:12,500 --> 01:30:15,600
States.
That's alright, we I caught you

1245
01:30:15,600 --> 01:30:18,400
off guard with that question.
We can cover.

1246
01:30:18,500 --> 01:30:23,200
That is very valid question.
I just would feel like I need to

1247
01:30:23,200 --> 01:30:28,000
brush up on it, but it's one of
a series of things that have

1248
01:30:28,000 --> 01:30:32,200
happened over time.
The US and the Federal Reserve

1249
01:30:32,200 --> 01:30:38,900
never stopped in their efforts
to support the dollar in terms

1250
01:30:38,900 --> 01:30:42,000
of talking about it and its
relationship to other

1251
01:30:42,000 --> 01:30:44,200
currencies.
Their actions.

1252
01:30:44,200 --> 01:30:49,700
However are just the opposite
because inflating And cheapening

1253
01:30:49,700 --> 01:30:53,900
the value is what allows them to
function governments can spend

1254
01:30:53,900 --> 01:30:59,000
more money and the fed and the
banks can create more money and

1255
01:30:59,000 --> 01:31:01,900
lend it.
But they're not going to talk

1256
01:31:01,900 --> 01:31:05,800
about it that way and they're
not going to make agreements

1257
01:31:05,900 --> 01:31:08,700
that restrict their ability to
do that.

1258
01:31:08,700 --> 01:31:12,600
So that's why Bretton Woods
Bretton Woods agreement was

1259
01:31:12,600 --> 01:31:16,800
important if I'm not mistaken
there was a Bretton Woods won in

1260
01:31:16,800 --> 01:31:21,000
a Bretton Woods to Believe there
was yes, maybe we'll cover that

1261
01:31:21,000 --> 01:31:23,000
new.
We can definitely do that.

1262
01:31:23,100 --> 01:31:25,300
I think that would, you know,
those are the kind of things

1263
01:31:25,300 --> 01:31:30,000
where there's there's probably a
full podcast of material.

1264
01:31:30,200 --> 01:31:32,900
What did this mean?
And how to how to things happen

1265
01:31:32,900 --> 01:31:35,400
after that?
Yeah, we can cover that later.

1266
01:31:35,800 --> 01:31:38,700
So let's say, you know,
someone's listening to this and

1267
01:31:38,700 --> 01:31:42,900
they're like, feeling move that
they maybe need to buy have some

1268
01:31:42,900 --> 01:31:46,700
gold on hand.
Where would you direct them to

1269
01:31:46,700 --> 01:31:49,700
go to?
That gold, right?

1270
01:31:49,700 --> 01:31:53,300
Because look, if you don't know
and you just go to a local.

1271
01:31:53,300 --> 01:31:57,500
Pawnshop, there's a big chance
you could get taken for a ride

1272
01:31:57,500 --> 01:32:01,200
right on pawn shop is not where
to go to buy your goal, right?

1273
01:32:01,200 --> 01:32:04,500
I'm yeah, I'm just saying, you
know, you can't override their

1274
01:32:05,500 --> 01:32:10,400
there today.
It's much easier for people to

1275
01:32:10,400 --> 01:32:13,600
buy gold than ever was.
And that's the nice thing that's

1276
01:32:13,600 --> 01:32:16,400
come out of it.
People talk about gold as an

1277
01:32:16,400 --> 01:32:18,400
investment.
It is not an investment.

1278
01:32:18,500 --> 01:32:22,800
Moment, but if you really want
to buy gold, it's a lot easier

1279
01:32:22,800 --> 01:32:28,100
to do if you want to buy goal,
physical gold for the purpose of

1280
01:32:28,100 --> 01:32:30,600
holding and accumulating it
yourself.

1281
01:32:30,800 --> 01:32:37,200
Then by US Gold Eagle coins,
that is the best value right

1282
01:32:37,200 --> 01:32:39,600
now.
The premiums on those are about

1283
01:32:39,600 --> 01:32:42,600
10%.
They used to be around five or

1284
01:32:42,600 --> 01:32:44,900
six.
They have been considerably

1285
01:32:44,900 --> 01:32:48,400
higher at one time within the
last couple years.

1286
01:32:48,600 --> 01:32:52,000
But they're back down on the
goal to about ten percent, so

1287
01:32:52,000 --> 01:32:57,100
it's reasonable.
And that means in effect, if

1288
01:32:57,100 --> 01:33:00,800
goals at 1,800 you're going to
pay almost 2,000 for a 1 ounce

1289
01:33:00,800 --> 01:33:07,000
gold coin.
That's the way to purchase it

1290
01:33:07,000 --> 01:33:10,300
and you can do that by going
online.

1291
01:33:10,400 --> 01:33:14,300
There's a couple of there's
actually probably several

1292
01:33:14,300 --> 01:33:17,800
different dealers and I don't
like to give out names or say

1293
01:33:17,800 --> 01:33:22,400
that but they're competitive and
and you should just check them

1294
01:33:22,400 --> 01:33:24,000
out.
Talk to somebody there.

1295
01:33:24,200 --> 01:33:28,400
Tell him what you want to do.
And again, if you want to buy

1296
01:33:28,400 --> 01:33:34,100
physical gold coins by US, Gold
Eagles, don't buy numismatic or

1297
01:33:34,100 --> 01:33:38,500
collectible coins by the Gold
Eagles, the low premium.

1298
01:33:39,000 --> 01:33:42,700
You could even buy other coins
with low premiums but I would

1299
01:33:42,700 --> 01:33:45,200
stick with the u.s.
Eagles because they're the most

1300
01:33:45,200 --> 01:33:51,200
widely recognized and they also
have a face value of $50 which

1301
01:33:51,200 --> 01:33:53,900
at some point may be an issue.
It's not at this point.

1302
01:33:54,100 --> 01:33:56,800
Aunt but they're considered
legal tender as well.

1303
01:33:56,800 --> 01:34:01,300
So you can do that online with
places and just go check them

1304
01:34:01,300 --> 01:34:03,200
out.
Find out what their process is.

1305
01:34:03,200 --> 01:34:08,800
Look at it compared their prices
and asked, you know, I'm happy

1306
01:34:08,800 --> 01:34:15,800
to respond when somebody has a
question, you know, but but I am

1307
01:34:15,800 --> 01:34:19,800
not in the business of
recommending where and who to do

1308
01:34:19,800 --> 01:34:21,500
business with and I don't sell
them.

1309
01:34:21,700 --> 01:34:26,500
So also you can go to A local
coin shop, establish a

1310
01:34:26,500 --> 01:34:32,000
relationship, talk to the
proprietor and ask him.

1311
01:34:32,000 --> 01:34:36,200
Look, if I just want to pick up
a couple of coins, how much will

1312
01:34:36,200 --> 01:34:38,900
you sell them for?
And then ask him if I came back

1313
01:34:38,900 --> 01:34:42,300
in tomorrow and the price is the
same and I want to sell it back

1314
01:34:42,300 --> 01:34:44,200
to you.
How much will you give me for?

1315
01:34:45,900 --> 01:34:50,000
So that you know how much of a
differential area is now the

1316
01:34:50,000 --> 01:34:55,600
typical resale value of a 1
ounce Gold.

1317
01:34:55,600 --> 01:34:58,900
Eagle coin is the bullion price
of gold.

1318
01:34:59,400 --> 01:35:03,400
So gold is 1800 dollars an ounce
and you buy it 19.

1319
01:35:03,400 --> 01:35:10,300
Something you can expect to go
back in and get 1804 the lower

1320
01:35:10,300 --> 01:35:12,800
premium.
That's that's even better, you

1321
01:35:12,800 --> 01:35:15,100
know, let's say you buy it at
8:00.

1322
01:35:15,300 --> 01:35:19,400
In and sell it at 1900 even
maybe it's a five percent

1323
01:35:19,400 --> 01:35:25,900
premium or six percent.
That's okay, the Go-Go's 2,500

1324
01:35:25,900 --> 01:35:30,000
you sell it back for 2500.
If it drops to 1500 you can sell

1325
01:35:30,000 --> 01:35:32,700
it for 1,500, just watch the
price and goal.

1326
01:35:33,200 --> 01:35:38,000
That's that's the most realistic
simplest way for people to want

1327
01:35:38,000 --> 01:35:43,300
to own and accumulate goal.
Now, if you want to trade or

1328
01:35:43,300 --> 01:35:46,600
speculate on the price and where
you think it's going when we're

1329
01:35:46,600 --> 01:35:49,700
at the other, then there's
umpteen different ways to do it.

1330
01:35:51,200 --> 01:35:54,000
There's there's paper
representations of the gold

1331
01:35:54,000 --> 01:35:57,200
price.
There is, you can buy and sell

1332
01:35:57,200 --> 01:36:02,900
gold stocks, which I would never
recommend Buy Gold stock again

1333
01:36:02,900 --> 01:36:06,200
unless you're speculating.
And you're, you're just looking

1334
01:36:06,200 --> 01:36:10,500
for something that's going to
might go up at a certain, you

1335
01:36:10,500 --> 01:36:17,600
know, corporate or certain time
but by and large overall best

1336
01:36:17,600 --> 01:36:22,300
way to it's better to own.
Gogol than it is gold stocks or

1337
01:36:22,300 --> 01:36:26,100
any paper gold products and u.s.
Gold.

1338
01:36:26,100 --> 01:36:29,600
Eagle coins is the best way
unless you have larger amounts

1339
01:36:29,600 --> 01:36:33,700
of money and you want to buy a
real bullion and you have a

1340
01:36:33,708 --> 01:36:38,400
place to store it.
Third party, or your own on your

1341
01:36:38,400 --> 01:36:40,000
own?
Gotcha.

1342
01:36:40,600 --> 01:36:44,600
Is there any dead giveaways?
For pitfalls when you're looking

1343
01:36:44,600 --> 01:36:47,500
at Gold, anything that that
people should, you know, if they

1344
01:36:47,500 --> 01:36:51,600
read something, just an example,
right?

1345
01:36:51,600 --> 01:36:55,400
Right now my diet, I stay away
from anything that's processed,

1346
01:36:55,400 --> 01:36:57,300
right?
Any any words I can't really

1347
01:36:57,300 --> 01:36:59,000
pronounce.
I stay away from it.

1348
01:36:59,400 --> 01:37:03,100
Are there any like things that
people should really, you know,

1349
01:37:03,100 --> 01:37:06,100
if they read about it?
And go, oh, I remember I should

1350
01:37:06,100 --> 01:37:07,600
stay away from that.
What would that be?

1351
01:37:09,100 --> 01:37:14,000
If you're looking at something
that is going to cost you more

1352
01:37:14,000 --> 01:37:18,200
than that, 10% premium, I just
talked about, you probably had

1353
01:37:18,200 --> 01:37:23,900
not ought to pursue it because a
lot of the coin dealers and

1354
01:37:23,900 --> 01:37:28,700
again this depends on the dealer
are going to focus on

1355
01:37:29,400 --> 01:37:32,600
collectible coin.
Numismatic coins, coins that

1356
01:37:32,600 --> 01:37:39,100
have a value other than Their
gold content. and where that

1357
01:37:39,300 --> 01:37:45,000
portion that amount of premium
for their values, a premium for

1358
01:37:45,000 --> 01:37:49,600
those that would be much higher
because it's based on

1359
01:37:50,700 --> 01:37:54,500
Collectability, the problem is,
it's very subjective.

1360
01:37:54,900 --> 01:37:58,500
So how much of that premium is
realistic?

1361
01:37:59,300 --> 01:38:03,300
The more unscrupulous someone
maybe the higher, they might

1362
01:38:03,300 --> 01:38:05,700
have that premium stack.
So that's where you got to

1363
01:38:05,900 --> 01:38:07,600
check.
I'm not saying, don't buy

1364
01:38:07,600 --> 01:38:12,100
numismatic, but if your purpose
is owning gold stick with the

1365
01:38:12,100 --> 01:38:16,900
gold, the u.s.
Gold Eagles, if you know what

1366
01:38:16,900 --> 01:38:21,800
you're doing and you have
studied it, Are certain coins

1367
01:38:22,200 --> 01:38:25,500
that you might want to look at
it but you're buying more than

1368
01:38:25,500 --> 01:38:29,200
gold there and you're depending
on of that's like buying

1369
01:38:29,200 --> 01:38:32,800
high-priced.
Artwork really do you really

1370
01:38:32,800 --> 01:38:35,900
need or want to own the Mona
Lisa.

1371
01:38:35,900 --> 01:38:39,900
If you could And how much is it
worth?

1372
01:38:40,300 --> 01:38:43,300
And how much it will it be worse
after a depression?

1373
01:38:45,200 --> 01:38:49,400
So, you know, and you now bring
that down to a level where,

1374
01:38:49,600 --> 01:38:52,900
okay, you're going to spend a
couple thousand dollars.

1375
01:38:53,200 --> 01:38:59,000
You could buy a one ounce, gold
eagle, Or you could buy a five

1376
01:38:59,000 --> 01:39:07,200
dollar gold coin, which has much
that was minted, 125 years ago

1377
01:39:07,500 --> 01:39:13,200
and has maybe one-fifth the
amount of gold in.

1378
01:39:13,200 --> 01:39:22,200
It of one ounce gold coin and
you pay 3,000 for see if your

1379
01:39:22,200 --> 01:39:24,700
objective was on the gold.
You got a lot more than.

1380
01:39:24,700 --> 01:39:26,600
I'm not saying that coin.
Mine's not worth it.

1381
01:39:26,700 --> 01:39:30,000
But is that what you want?
So you have to be careful, then

1382
01:39:30,100 --> 01:39:33,500
you have the possibility that
maybe you paid too much for it

1383
01:39:33,500 --> 01:39:36,800
anyway.
Maybe that premium was closer to

1384
01:39:36,800 --> 01:39:39,300
the price, you paid for the
coin, 2004.

1385
01:39:39,300 --> 01:39:43,100
The 1 ounce coin instead of
three, but you're still buying

1386
01:39:43,100 --> 01:39:46,500
an awful.
Lot of subjective value

1387
01:39:47,100 --> 01:39:49,900
collectability versus gold
content.

1388
01:39:50,900 --> 01:39:55,500
So you just kind of have to look
at them, ask questions and study

1389
01:39:55,500 --> 01:40:00,600
it.
Don't get caught up with the

1390
01:40:00,600 --> 01:40:03,900
carrots or the Purity.
What you have to know is how

1391
01:40:03,900 --> 01:40:07,300
much gold is in the coin.
If you can't get a straight

1392
01:40:07,300 --> 01:40:12,300
answer walk away, Great.
Well Kelsey.

1393
01:40:13,400 --> 01:40:16,800
As before last time you it's
awesome to talk to you because

1394
01:40:16,800 --> 01:40:20,200
you're able to take these
principles and break them down

1395
01:40:20,600 --> 01:40:22,800
in a way that even a guy, like I
can understand.

1396
01:40:22,800 --> 01:40:26,200
And if I can understand it,
listening to you, I know anyone

1397
01:40:26,200 --> 01:40:30,900
else can you're you, you're also
a prolific writer, where can

1398
01:40:30,900 --> 01:40:34,300
people go to find your
Publications, your books, your

1399
01:40:34,300 --> 01:40:36,500
newsletters, all of it.
Where can they go?

1400
01:40:36,900 --> 01:40:39,300
All right, first place would be
my website.

1401
01:40:39,400 --> 01:40:42,100
Kelsey will.
Was gold.com.

1402
01:40:42,200 --> 01:40:45,800
That's the URL, and it's called
Kelsey's gold, facts.

1403
01:40:45,900 --> 01:40:48,300
If you type either those in,
you'll find it.

1404
01:40:48,300 --> 01:40:51,700
But that's where all my articles
are listed there.

1405
01:40:52,100 --> 01:40:56,100
There's over 200 of them now.
Gold inflation Federal Reserve,

1406
01:40:56,100 --> 01:41:00,100
silver deflation hyperinflation,
real estate.

1407
01:41:00,100 --> 01:41:03,700
Modern monetary Theory to
whatever extent I've written

1408
01:41:03,700 --> 01:41:05,200
about it.
It's on that site.

1409
01:41:05,400 --> 01:41:09,900
I'm also a founding contributor
to talk markets, talk.

1410
01:41:10,100 --> 01:41:18,100
Marcus is a cam quasi Financial
social website, and my articles

1411
01:41:18,100 --> 01:41:23,800
there and a profile page talk
markets.com my articles also

1412
01:41:23,800 --> 01:41:29,600
appear regularly on several
other web sites around the world

1413
01:41:29,800 --> 01:41:34,500
gold Seaton dot d e which is in
Germany, they translate by

1414
01:41:34,500 --> 01:41:40,000
articles and Publishing their
I'm on Market oracle.com dot you

1415
01:41:40,100 --> 01:41:43,900
K of the United Kingdom.
Also and Gold.

1416
01:41:44,000 --> 01:41:53,200
Eagle.com gold seek.com FX
Empire LinkedIn Facebook and

1417
01:41:53,200 --> 01:41:56,300
Twitter.
My books.

1418
01:41:56,300 --> 01:42:03,300
I have a author page on Amazon
and my books are listed for sale

1419
01:42:03,300 --> 01:42:06,300
on Amazon.
And there's also links to my

1420
01:42:06,300 --> 01:42:10,400
books and other things on every
article I write and on my

1421
01:42:10,400 --> 01:42:16,300
website, they can look around
and see whatever they want.

1422
01:42:17,400 --> 01:42:20,900
That's Lee principal takes.
Perfect.

1423
01:42:21,000 --> 01:42:24,700
Is there anything that we didn't
cover on this episode that you

1424
01:42:24,700 --> 01:42:29,100
want to go over?
No, I can't think you know and

1425
01:42:29,500 --> 01:42:32,000
of anything that we have and
this feels good.

1426
01:42:32,000 --> 01:42:35,800
It feels right.
And besides we could find

1427
01:42:35,800 --> 01:42:38,100
something and then we'll just
come back and talk again.

1428
01:42:38,600 --> 01:42:43,000
Absolutely well, Kelsey man, as
always, it was awesome to talk

1429
01:42:43,000 --> 01:42:44,600
to you.
Thank you so much for being

1430
01:42:44,600 --> 01:42:46,400
here.
Thank you very much.

1431
01:42:46,400 --> 01:42:49,100
Dave for having me on.
All right, everyone bye.