Transcript

🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red

From GLOBAL NEWS PODCAST · Episode page · Watch on YouTube

· 1 h 33 min · 16,582 words · 95 timestamped sections

This is the full, timestamped transcript of "🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red", an episode of GLOBAL NEWS PODCAST published September 27, 2020 (1 h 33 min, about 16,582 words). It mentions 18 people, works and ideas, including US Dollar, Peter Schiff, Gold, Jerome Powell, Silver.

What this episode is about

The financial markets saw positive movement with major indexes recovering from initial downturns following President Trump's news conference on China, but concerns linger about a potential decline as the "sell in May and go away" strategy looms. Notably, silver experienced its largest monthly gain in nine years, rising nearly 20%, outpacing gold's modest increase, and signaling a potential upward trend for silver relative to gold that may continue.

Key takeaways

  • Markets rallied post-Trump's speech—proof that sometimes, silence is golden for investors!
  • Silver shines bright with a 20% gain; gold might be reigning, but silver is finally stealing the spotlight.
  • March of the Fed's balance sheet: no limits in sight means a steep decline for the dollar ahead.
  • Powell’s inflation concerns? A disappearing act—prices are rising; just because he doesn't see it, doesn't mean it isn't real.
  • Commodity boom may tame gold's rise; even precious metals can’t escape the gravity of reality—let's hope they know how to hold on!

Who speaks in this episode?

What is discussed, and when

  1. – 10:00: Silver, Gold, Peter Schiff, US Dollar
  2. – 30:00: Mark Cuban, Donald Trump, Shark Tank, Peter Schiff
  3. – 40:00: Goldman Sachs, Silver
  4. – 50:00: 2008 Financial Crisis, US Dollar, Bubble Movie, Donald Trump
  5. – 1:00:00: Cal Berkeley
  6. – 1:10:00: Goldman Sachs, Silver
  7. – 1:20:00: US Dollar, Goldman Sachs
  8. – 1:33:07: Peter Schiff

Notable quotes from "🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red"

  • S p 500 up on the day nasdaq was the biggest winner we really had a late day rally after i guess president trump he had his delayed news conference on china and i guess he didn't say anything that scared anybody i think demarcus were a.
    about Donald Trump · at
  • Now i don't think that could be further from the truth i think it is bullish that silver is finally participating in the precious metals rally i think i thought rather it was bearish for gold that.
    about Silver · at
  • Check and i think that's what we're headed for because we're going to see a decline in fiat currencies the us dollar in particular but all fiat currencies in general and you know.
    about US Dollar · at
  • About inflation despite the fact that he's creating so much of it that's why you should be buying gold and silver in fact probably the most ridiculous thing that powell said right and i'm not.
    about Peter Schiff · at
  • To this absurd idea that was floated hold on by mark cuban all right this is one of the sharks in shark tank dallas mavericks owner billionaire mark cuban.
    about Mark Cuban · at
  • Is so positive on the dollar right in the u.s economy and so negative on gold is they are a primary dealer of us treasuries and also you know the us government right now is giving out a lot of money.
    about Goldman Sachs · at
  • Be able to blame capitalism they'll be able to invoke the memories of the 2008 financial crisis on the great recession and they'll be able to reblame that on bush and his association with tax cuts and.
    about 2008 Financial Crisis · at
  • In the live chat earlier in the week but i wanted to remind everybody to buy a copy of the bubble movie if you haven't already bought that movie this was a movie that was…
    about Bubble Movie · at

Who and what is mentioned in this episode?

People

  • Peter Schiff — Person · Host / primary speaker · 3 mentions · first at
    He delivers the episode’s macro/markets commentary, argues for precious metals, and criticizes Fed policy, fiscal stimulus, and pro-dollar narratives.
  • Jerome Powell — Person · Primary target of critique · 1 mention · first at
    Schiff uses Powell’s interview comments to argue the Fed is unconstrained, dismissive of inflation risk, and willing to cross 'red lines' with QE and interventions.
    Conference rather it was an interview that jerome powell did this afternoon or late this morning i think with alan blinder and i'm not even really sure how the interview came about i just happened to be.
  • Donald Trump — Person · Referenced political actor · 4 mentions · first at
    Discussed in relation to market reactions to his China remarks, his push for self-reliance, and his likely election scapegoating strategy against China.
  • Mark Cuban — Person · Referenced commentator (criticized) · 4 mentions · first at
    His proposed 'stimulus debit card with expiration' is used as an example of misguided pro-consumption policy thinking; Schiff notes he parodied it in 2008.
  • Alan Blinder — Person · Interviewer of Powell (referenced) · 1 mention · first at
    His questions to Powell about balance-sheet limits, inflation, and negative rates provide the setup for Schiff’s critique of Fed thinking.
    It was an interview that jerome powell did this afternoon or late this morning i think with alan blinder and i'm not even really sure how the interview came about i just happened to be listening to it and.

Companies & orgs

  • Goldman Sachs — Company · Referenced institution / foil · 17 mentions · first at
    Cited for a client call dismissing bitcoin and gold; Schiff argues their public stance is conflicted by incentives (primary dealer, government contracts).
  • IMF — Company · Referenced institution (dismissed) · 3 mentions
    Mentioned in the context of SDRs potentially replacing the dollar; Schiff rejects this and predicts loss of faith in fiat-like instruments.
    Sdrs from the imf... replace the dollar.
  • Dallas Mavericks — Company · Affiliation reference · 1 mention · first at
    Used to identify Mark Cuban and establish his prominence while Schiff critiques his stimulus-card idea.
    All right this is one of the sharks in shark tank dallas mavericks owner billionaire mark cuban has been getting a lot of press for his idea for an economic stimulus card right.
  • Cal Berkeley — Company · Education reference · 1 mention · first at
    Schiff references his economics coursework there, contrasting microeconomics (useful) with macroeconomics (Keynesian 'fantasy').
    Mean i if i look back at the econ courses i took at cal berkeley i mean the only course that really made any sense was microeconomics right when you study micro as opposed to macro which is all a.
  • Auburn University — Company · Grad-school reference · 1 mention
    Mentioned as a place Schiff spoke and as part of the discussion about where Austrian economics is taught.

Products & tech

  • Gold — Product · Core investment theme · 1 mention · first at
    Used as Schiff’s preferred inflation hedge and ultimate post-dollar reserve asset; contrasted with bitcoin and with fiat currency debasement.
    About inflation despite the fact that he's creating so much of it that's why you should be buying gold and silver in fact probably the most ridiculous thing that powell said right and i'm not.
  • Silver — Product · Core investment theme (tactical emphasis) · 8 mentions · first at
    Schiff highlights silver’s breakout and relative strength vs gold, framing it as bullish for the broader precious-metals rally.

Concepts & topics

  • US Dollar — Concept · Core topic (currency debasement) · 4 mentions · first at
    Schiff argues Fed balance-sheet expansion and trade deficits will weaken the dollar, ultimately ending its reserve status and forcing a return to gold.
  • Special Drawing Rights — Concept · Alternative reserve-currency proposal (rejected) · 1 mention · first at
    Discussed as a proposed replacement for the dollar; Schiff argues SDRs are fiat-on-fiat and won’t restore trust after a dollar crisis.
    From the monetary frying pan into the monetary fire right what are special drawing rights from the imf they're just pieces of paper that are backed up by other pieces of paper like the us dollar.

Places & events

  • 2008 Financial Crisis — Event · Historical reference point · 3 mentions · first at
    Used to argue that prior Fed policy created bubbles and that current QE/zero-rate policy will lead to an even larger reckoning; tied to Bubble Movie.
  • China — Place · Referenced geopolitical actor (as country) · 1 mention · first at
    Discussed as Trump’s scapegoat for COVID-19 and trade issues; also tied to Hong Kong autonomy and to Australia’s economic prospects via Asia ties.
    Day rally after i guess president trump he had his delayed news conference on china and i guess he didn't say anything that scared anybody i think demarcus were a little worried that he might have said something that.

Media & podcasts

  • Shark Tank — Media · Affiliation reference · 2 mentions · first at
    Cited to contextualize Mark Cuban’s public profile and his portfolio companies’ desire for consumer spending.
    Mark cuban is upset that a lot of the stimulus money is not getting spent right i guess he's got a lot of these shark tank companies that need revenue and he's worried that consumers are getting this government money.

Sponsors

  • Bubble Movie — Media · Promoted media · 2 mentions · first at
    Schiff recommends purchasing and sharing it; positioned as an Austrian-leaning documentary about government-caused bubbles and the 2008 crisis.

Full transcript with timestamps

well the stock market closed out this holiday shortened week on an up note in general most of the indexes seem to be up uh s p 500 up on the day nasdaq was the biggest winner we really had a late day rally uh after i guess uh president trump uh he had his uh delayed news conference on china and i guess he didn't say anything that scared anybody i think demarcus were a little worried that he might have said something that could have been interpreted as negative and so uh the markets really sold off when he started to speak uh but rallied as soon as he finished he didn't really say much and didn't take any questions i will get into that a little later in the podcast but uh the markets were positive again on the week and on the month we just finished uh the month of may and as i said on the last podcast the old adage sell in may and go away potentially could be very applicable this year i think the market has had a

hope inspired fed induced rally that i do think will fade uh but you know you shouldn't sell everything in may silver in particular silver i think had its biggest monthly gain in nine years up almost 20 in fact we were almost up another 50 cents today in the price of silver and gold was only up maybe three percent maybe not quite on the month so not only was this uh a huge gain for the price of gold but it was a huge gain for the price of gold i mean the price of silver in terms of gold so not just a big move up in silver but a big move up in silver priced in gold and you know that's something that i have been talking about and forecasting would begin on this podcast that's why i pretty much have been pounding the table for people to buy silver because not only is silver going to rise in my opinion but it's also going to rise relative to the price of gold which is also going to rise and you know i've even

read some uh uh writings uh that where people have thought that silver going up and gaining on gold is somehow bearish for gold right this shows that you know there's been a glut of gold or there's been too much gold buying because the price of gold is falling in terms of silver uh now i don't think that could be further from the truth i think it is bullish that silver is finally participating in the precious metals rally i think i thought rather it was bearish for gold that silver was not participating not that it meant that gold couldn't go up but that it meant that gold wasn't going up even faster and i think that now that silver has kind of broken out of this downtrend and now silver is not only following gold higher but potentially leading gold higher i think that is bullish for gold in fact as more commodities begin to move higher that is bullish for gold because then it keeps gold's

value relative to other commodities in check because gold has a historic price in relation to other commodities and the further it veers from that price to the upside uh the more you can argue gold is overvalued but if we just have a general commodity boom where all commodity prices are rising then that keeps gold's uh increase in check and i think that's what we're headed for because we're going to see a decline in fiat currencies the us dollar in particular uh but all fiat currencies in general and you know one way to know that is to have listened to the press conference or not a press conference rather it was an interview uh that jerome powell did this afternoon or late this morning i think with alan blinder and um i'm not even really sure how the interview came about i just happened to be listening to it and um the highlights or the low lights rather i'm going to discuss right now one of them a blinder

asked uh powell a question about is there a limit to you know how big the balance sheet could get you know are you worried that maybe it's gonna grow too much you know and and powell's basic answer was no that he's not concerned uh and the balance sheet has a long way to go maybe it's not infinite because obviously the balance sheet can only grow to the extent that there's stuff that the fed could buy so i suppose if they ran out of stuff to buy then that's the only limit that powell can see to the size of the fed's balance sheet meaning the fed buys everything and then there's nothing left to buy but if powell really believes that there is no limit beyond which the balance sheet can rise that is a very scary thought about the fact that there's no limit to the depths to which the dollar can plunge and lose purchasing power in fact uh um powell was specifically asked about you know inflation is

inflation a concern and of course that's all powell is doing is inflating he is inflating the money supply that is the definition of inflation expand the money supply that is what powell is doing and powell said no he's not concerned he said that right now we have falling prices consumer prices are going down and that is the problem that the fed has been dealing with uh for years if not decades and so the furthest thing from powell's mind is a problem with consumer prices going up so he's not worried at all that inflation may cause consumer prices to go up he thinks he can keep on inflating uh and there's nothing to worry about because prices aren't going to rise and that is just absurd i mean they're already rising there are plenty of prices that are going up i get a lot of emails from people with anecdotal evidence of all sorts of products that are now much more expensive than they were a pre-covet now sure

you know there are some prices that have gone down but they're not going to stay down i mean the initial reaction when you have a collapse of demand is for prices to come down i mean that's what's going to happen but as inventories are depleted as capacity is reduced uh that glut of merchandise is going to disappear and prices are going to be going up but that's when the effect of all the new money is going to be hitting consumer prices that lag you're going to see all this money arriving just as all the goods have diminished the supply of goods to buy so the fact that powell is not at all worried about inflation despite the fact that he's creating so much of it uh that's why you should be buying gold and silver in fact probably the most ridiculous thing that powell said right and i'm not making any of this stuff up you might think that's no way he could have possibly said this but yeah this this is what the guy said

um he actually said that the federal reserve had crossed a lot of red lines right red lines that never been crossed before the fed has now crossed them and powell is not concerned he's not worried about the consequences adverse consequences of having crossed lines that no other fed chairman you know had the nerve to cross because what he told blinder was that this is the situation that you just have to do it and then you have to figure it out afterwards right so just act blindly hope for the best and then see what happens right i mean forget about the hypocritic oath right that doctors take to do no harm just do it and we'll we'll see what happens afterwards right so i immediately thought of nancy pelosi right those were her famous words we got to pass the bill to see what's in it right we can't read the bill first see what's in it and then decide if we like it and vote on it no no that takes too long

we just got to pass it and then we'll find out after the fact what we voted for right just pass the bill and then we'll see what's in it well that's basically what powell is doing with monetary policy right it's just we'll just print the money and then we'll see where it goes right who cares because things are just so bad that we might as well just do this because we're going to completely collapse right it's like somebody maybe who's got a terminal disease just i'll take anything i don't care even if this stuff is going to kill me i'm gonna die anyway so what's the big deal that's basically what powell is saying that things are so bad that it doesn't even matter if the cure kills us because we're going to die anyway and you know powell was specifically asked about negative interest rates right and why we're not going there because after all europe has it or tried it japan tried it why don't we do it right and and powell

uh went back to what defended said in the past that they're not planning on negative interest rates right it doesn't matter what they're planning on what matters is what they're going to do i think if the market demands it then the fed will supply it but powell said well you know we really don't want to go there because there's no actual proof that it works right even though it's been tried in other countries there's no proof that it works well there's no proof that zero works either and we're at zero i mean why does the fed demand proof that something works in order to do it in fact powell just said we're gonna do it and figure out if it works after the fact so i don't believe a pal when he says he's not going to do something just because there's no proof that it works i mean the reason that central banks do this is not because it works it's because they're desperate and they know if they don't do it

there's going to be a crisis so they do it even if it means there's a bigger crisis later on but you know powell did mention some of the reasons that we shouldn't have negative rates uh but that's not going to stop the fed but you know i thought it was interesting that one of the points that powell made when he was explaining this because um blinder asked them you know you know when you get to zero you know does that mean that you're kind of out of ammunition and and um powell's like no no i mean you know we got plenty more ammunition that doesn't mean that when you reach zero that you still can't keep cutting there are other things that we could do to ease monetary policy and one of the things that powell mentioned that the fed did before was once they got to zero in order to lower rates without going negative they committed to staying at zero for a long period of time it was that forward

guidance that effectively amounted to a cut right so it's not like we're at zero now we're at zero and we're going to stay here indefinitely so don't worry that we may one day raise rates we're not doing that anytime soon so that was in effect a rate cut even though the fed was at zero but of course the one thing right the one question that should be asked after you've gotten rates down to zero and you're still in trouble wouldn't it even occur to a central banker to now question the very efficacy of their rate cutting policy because if you've got down to zero and you still need more stimulus maybe what you're doing ain't working maybe the fact that you had to bring rates down to zero and you still have a problem means that cutting rates is not the solution to that problem in fact maybe it's the rate cuts that are perpetuating the problem maybe we wouldn't have a problem but for rates going down in fact had the fed

let rates go up that would have actually solved the problem maybe it would have been painful cure but it would have worked but just giving a drug addict more drugs in ever increasing doses which is all uh the fed is doing that's never going to work but no pound or any other central banker is ever going to admit that they were wrong they're never going to reassess the efficacy of a failed policy all they can think of is up the dosage and hope it works better right it's just the definition of insanity except instead of repeating the same mistake over and over again and expecting a different result you repeat the same mistakes on a bigger scale and then you expect a different result now we got a lot of economic data points uh that came out today and yesterday but in particular a couple that came out that i really want to talk about are the consumer income and spending numbers and the um the trade data because they they really

they really go uh hand in hand what did i do i thought i had the spending numbers up here um hold on i'm bringing them up right now so we got the personal income and spending numbers for april and it was a very interesting series of numbers because personal income surged by the most ever right 10.5 was the gain actually the consensus estimate was for a drop this is probably the biggest miss ever too right you're looking for personal income to decline by six percent which would be a huge decline and instead it went up by ten and a half percent so a big miss and a big increase and you know last month consumer spending was down by two percent which was a big drop under normal circumstances but we were up ten and a half percent but now look at consumer spending which was down seven and a half percent in march it was supposed to drop by 12.6 in april at least that was the estimate and we actually declined

by 13.6 which i think was the biggest monthly decline in consumer spending ever so we had the biggest increase in personal income ever while at the same time we had the biggest decrease in personal spending and so obviously uh what that means is a lot of the extra income that consumers had they did not spend right and one of the reasons they didn't spend it is because they weren't leaving home so the only place they could spend it really was online uh and so clearly that was one reason that you had the drop in uh in spending but i think another reason is exactly what i discussed on this podcast before and that is you got a bunch of unemployed people or people who may or may not be permanently unemployed they have no idea in fact i read this article where i think 50 of the small businesses that shut down don't plan on ever reopening so a lot of people have a lot of uncertainty about their

future employment situation meanwhile they already have a lot of debt right we have tremendous credit card debt we have tremendous auto loans student loans mortgage debt so you have a bunch of unemployed people or people who are not even sure if they're going to have a job but they do have a lot of debt why should they keep spending i mean they should finally start to save in fact the savings rate has shot way up uh recently and maybe part of that too is that people aren't even paying their rent maybe they're just saving the money that they otherwise would have used to pay their rent uh because they know they can't get evicted but a lot of this uh i think is significant going forward if consumers have finally exhausted uh their ability and willingness to continue to go into debt in order to spend money and so maybe what they're doing is they're paying back some of their existing debt or just trying to

replenish a you know pretty much very very shallow savings pool because covet 19 was a big wake up call for the people living paycheck to paycheck hey you guys have gotta you know get your house in order meanwhile where did all this income come from because we had massive layoffs right in fact we got the uh uh the weekly unemployment claims that came out again yesterday another 2.123 million people lost their jobs in the most recent week right so people keep losing their jobs which means they're losing their paychecks right they're not you know they're not getting a paycheck and not having a job so how is it that uh employment has plunged while personal income has soared well the reason for that is the stimulus money everybody got a one-time check right that was a boost whether you were employed or unemployed uh you got a check so everybody got those stimulus checks that counted as personal income plus a lot of people

who are now unemployed and i've gone over this unemployed people all across the country are making more in unemployment benefits than they were when they were working and getting salaries so that is also helping to boost personal income right but personal income is not rising for the right reasons income is not up because we have more people working in earning more money because if more people were working and earning more money right they would be producing more stuff they would be supplying more services and the money they earned would be in payment for the goods they helped produce or the services they helped provide so they would be enriching society by adding value to society and then their wages would enable them to claim some of the increased productivity that they helped bring about but that's not what's happening people are collecting more money doing nothing more money not contributing

than when they were contributing so all of this new money simply is going to push up the price of goods and services either it's going to prevent prices from falling or maybe they'll fall less than they otherwise would have or it's going to make prices go up and in fact what was a very interesting uh number that also came out today that is particularly interesting when you contrast it to the personal income and spending number was the trade deficit in goods otherwise or used to be known as merchandise trade deficit for the same month for april and that was supposed to come in at 64.7 billion which would have been a slight uh increase from the 64.2 billion that we had in the prior month which by the way was inc revised up to 65 billion but we were look they were looking for a small increase instead we got a seven percent surge all the way up to 69.7 billion right there was a drop in exports of 25.2 percent

right obviously that's a huge decline in exports right fewer people are going to work so they're not producing the products that we can export we also had a decline in imports but not nearly as great imports only went down by 14.3 percent so the bottom line is even though consumer spending collapsed by 13 spending on imports rose we imported seven percent more stuff even as we spent 13 less so that means that the money that the fed is printing is being used to buy the goods that other people are producing so we're exporting our inflation and we're getting we're importing goods but what this is going to do is put more downward pressure on the dollar until the dollar ultimately cracks in fact the dollar index i had a very weak week today in fact it it actually traded below the 98 handle uh intraday it got to 97 94 uh before you know recovering 98 before the close i think we ended up settling

at 98-26 uh but this is still uh the weakest it's been i think since uh mid-march or early march but we could be breaking down in the dollar it's about time and once it breaks down there is a long way to drop and these rising trade deficits certainly suggest that that's what's going to happen uh to the dollar in fact these numbers you know really tie in to this absurd uh idea that was floated um hold on by by mark cuban all right uh this is one of the sharks in shark tank uh dallas mavericks owner uh billionaire mark cuban has been getting a lot of press uh for his idea for an economic stimulus card right because uh mark cuban is upset that a lot of the stimulus money is not getting spent right i guess he's got a lot of these shark tank companies uh that need revenue and he's worried that consumers are getting this government money and perish the thought they're saving it or they're paying down debt

and so uh cuban's idea is that the government give everybody a debit card and then it load it up with cash and have an expiration date so that here's your debit card you get to go out and buy stuff but if there's any money left on the card after a week or 10 days then it's gone so you have a set amount of time in which to spend this money and if you don't spend it you lose it right use it or lose it and according to cuban that's the way to really help the economy because now people will go out and spend the money and that's what we need is we need more spending and of course this is an asinine um recommendation that's actually getting a lot of press and i know it's acinate asinine because i actually suggested it myself back in 2008 as a joke and i i tweeted out the link to that commentary you you you can actually find it uh if you just google uh a modest proposal uh peter schiff and that is an article that i wrote in

in 2008 and of course you know i got the title off of jonathan swift's uh you know allegorical allegorical essay uh satirical essay rather that he wrote more of a satire um and if you're not familiar with that that particular satire you can read it you know read the the swift uh article or read about it and you'll understand why i use that uh for for the title uh but uh cuba's a successful guy he's a smart guy he's an entrepreneur you know if somebody as smart as mark cuban can believe something is dumb as these economic stimulus cards but that's exactly what i wrote i mean word for word i mean i'm not uh basically accusing um cuban of jeffrey gunlocking me i mean i don't think he's he's just copying me i think he legitimately just came up with this idea i doubt he remembers what i wrote or even read what i wrote in 2008 but the difference is i was joking cuban is serious he actually thinks

that this is going to work and the point is if a smart guy can believe something this dumb is going to work what about the rest of the americans what about the average voter who is going to believe this nonsense we don't need more spending right we're in trouble because consumers spent too much in the past we don't have enough savings when consumers try to replenish their savings that's not something that we should resist look cuban thinks that the way we get people to buy stuff is to give them money look if businesses are having trouble selling their merchandise they can cut their prices right and they'll sell more and that's what some businesses are doing putting more money into the economy doesn't make the economy richer it's just more money the money if you give people money to spend that doesn't create stuff for them to buy all the addition of new money means is the stuff that's there is going to be

more expensive either the prices that would have gone down won't go down as much or prices that might have remained the same will go up or prices that we're gonna go up are gonna go up even more all this is is destroying the money so you have the private sector you've got entrepreneurs wanting money to be printed and sent out right you got the politicians that want it and then you got the central bank you got the chairman of the federal reserve saying we're you know let's print more money there's no downside we don't have to worry about rising prices right all we're concerned about is that prices aren't rising enough and so everybody is beating the drums for inflation everybody wants more inflation because they actually think that this is the holy grail of economic growth that they've somehow stumbled upon the equivalent of the fountain of youth when it comes to economics right this is a shortcut

right gee why did other countries think of this all we have to do is print money right whenever we're in trouble just print money and everything is going to be great because hey people can spend that newly printed money and the economy is going to boom it's not going to boom prices boom you have inflation what we need is more economic growth not more consumption we need more production we need it we need to build the economy in fact one of the things that donald trump said in his talk today in his brief talk was that america has to be more self-reliant that we have to rebuild our manufacturing rebuild our supply chain we can't be as dependent on other nations i 100 agree we can't depend on other nations for manufactured goods we can't depend on other nations for savings we need to save our own money we need to produce our own stuff right but we can't do all that if all we're doing is printing money and

spending it everything the fed is doing everything mark cuban wants the fed to do and everything really that trump and congress wants the fed to do is that odds was what with what donald trump claims he wants for our nation but also what donald trump doesn't mention is that if we're actually going to do that if we're actually going to rebuild this viable self-reliant independent economy that is not beholden to anybody else that there's a lot of sacrifices that need to be made in order to accomplish that goal and it can't be accomplished with government bailouts and government stimulus and it doesn't matter that covet 19 was nobody's fault sometimes bad things happen and you suck it up and you deal with it you don't get money from the government now people say oh peter you're heartless you know you just want people to starve i don't want anybody to starve and i think if we had a free market capitalism

nobody would starve right it's the free market that feeds people government is the reason that people starve nothing that government is doing right now is going to alleviate any pain what the government is doing is exacerbating the pain maybe it's delaying the pain a bit and one of the reasons it's doing that is because the dollar hasn't collapsed yet because we are able to use the money we print to buy all the stuff everybody else makes but there is a limit to how much longer we can get away with that we're about to find out the hard way what that limit is we we're going to find out that we cross that line because we're on the other side of it and we're going to have to experience the consequences you know goldman sachs had this uh call on wednesday it was a client call and i meant to listen to it i actually went registered for it and then i totally forgot i was doing something else so i didn't i didn't

listen to it but what i did do is uh read about it and and one of the things that they were going to talk about was bitcoin right because the title was going to be inflation and you know gold and bitcoin and what to do and of course the bitcoin community got real excited on wednesday about the prospects of goldman sachs talking to their clients about bitcoin because of course in their mind haha this is it goldman sachs is going to recommend bitcoin it's going to the moon right first john you know paul tudor jones and now goldman sachs it's going to open up this whole big institutional adoption and this is going to mainstream us and we finally got it right so everybody's getting excited and in my mind it's like there's no way that goldman sachs is going to come out and recommend bitcoin just no way that they're going to do it and sure enough they they didn't they basically threw a bunch of cold water on

bitcoin and they said a lot of good things about why bitcoin is bad you know and you know of course they didn't say all the things there were a lot of points that they could have made that they didn't right but they made enough points uh that were valid and basically they said look bitcoin is not an asset class and it's not an inflation hedge it's nothing so there's no reason to buy it there's no reason to recommend it i mean they said it is volatile and you know you could trade it if you're looking for a volatile asset to trade and they certainly claim that that bitcoin has volatility and so that could have some appeal to traders but it had no appeal to goldman sachs for the purpose of recommending it to clients because if it's not an asset that throws off income or the potential for throwing off income like a stock or a bond and i know you can say hey there are plenty of stocks that don't pay

dividends right they don't but they have earnings and then they can use those earnings to rebuy stock right and that's another way of returning uh their income to the shareholders but yeah there are some companies that don't have earnings either but people are gambling that they will have earnings in the future that's the bet when you buy a startup that doesn't have any earnings in theory you're betting that the earnings will show up in the future and that the the the losses that we're experiencing now are the price that we pay for profits in the future i mean if you think that there's never going to be a profit well then there's no reason to buy the stock and it should go to zero now a lot of these stocks would go to the zero but for the fed and the false you know hope that the fed engenders but at least there is the the the possibility of future earnings but with bitcoin there is no potential

for any earnings at any point right you bitcoin doesn't throw off any earnings i mean could you loan your bitcoin out to somebody and they could pay you interest sure but the bitcoin itself doesn't generate any income the way a stock would or the way a piece of rental property would or the way uh you know a bond would um but they also said it's not there's no proof that it's an inflation hedge because it's not an actual commodity that has any real world applications it doesn't have any actual value in the present therefore it can't be a store of value for the future because you can't store what you don't have so if it's not an asset in the sense that it generates an income and if it's not something that will preserve value and act as a fl inflation hedge then what the hell is it basically they said all it is is you're buying it uh on the greater full theory you're buying it because you're hoping you can sell it to

somebody else at a higher price and they're not going to recommend uh an asset on that basis to their clients and you know i i agree that's why i would never recommend it to any of my clients and uh but not only did goldman sachs say don't buy bitcoin they also said don't buy gold and i think that maybe is one of the reasons that the bitcoin bugs were kind of emboldened because hey they they don't like anything right they don't like gold they don't like bitcoin and so you know bitcoin is just like gold but their criticism of bitcoin was much different than their criticism of gold the reason that goldman sachs doesn't like bitcoin is they don't think it's legitimate the reason that goldman sachs is not recommending gold is because they don't think people need to buy it because they think everything is great see if you look at the other points that goldman made with which i disagree uh strongly

their perspective was that the economy was in great shape that the worst was over that the fed did a great job and there's nothing to worry about there's not going to be any inflation and so because we have a bull market in stocks because we're about to have a v-shape recovery because everything is great because the fed is a bunch of geniuses who did everything right and we have nothing to worry about and there's no inflation anywhere in sight there is no reason to own gold and if you accept goldman sachs premise then that would be true if i was foolish enough to believe all the assertions that were made by goldman sachs i wouldn't be buying gold either but if on the other hand goldman sachs came to a different conclusion if they thought the dollar was in jeopardy that it wasn't sound that it was going to fall that inflation was a risk that the economy was not in good shape that we were headed for

stagflation if goldman sachs believed what i believe then they would be recommending gold just like i am they wouldn't be recommending bitcoin for the same reasons i'm not but they would be recommending gold and i think they will i mean i think one of these days goldman sachs is going to change their tune if they haven't already changed it privately i mean goldman sachs has a history of doing one thing publicly and doing the opposite privately with their own money right versus what they recommend that their clients do with their money see i do the same thing i eat my own cooking right that fact that's all i eat uh is my own cooking and i'm and i and i'm the biggest eater of my cooking right uh but goldman sachs a lot of times does the opposite so maybe one of the reasons that they're talking down gold is because they want to buy more for themselves maybe they're talking down gold stocks

because that's what they want to buy now i know you could say oh they're doing the same thing with bitcoin no they're not they don't want to buy bitcoin they couldn't care less about bitcoin uh but i do know that they're smart enough to realize that if there's a bunch of inflation then gold is what you want to own or silver or or gold stocks and they would do it now the cynic in me right would say that one of the other reasons that goldman sachs is so positive on the dollar right in the u.s economy and so negative on gold is they are a primary dealer of us treasuries and also you know the us government right now is giving out a lot of money right i mean because they're they're buying up assets today uh they went over a bunch of these corporate bond etfs that the fed has been buying and they just started i mean uh powell said look we've just started to buy we've mostly been talking right they talked the market up and now

they're gonna buy at the prices that they that they propped up which is the dumb way to do it they should have bought before the prices went up not after but they let their buddies on wall street load up on what they're going to be buying so their buddies can dump it but there's also a lot of money that the u.s government is paying to companies like goldman sachs to manage these portfolios so do you think goldman sachs wants to be critical of the us government no because they're not gonna get a contract right the government is not gonna choose to do business with a firm that is trashing uh government policy or fed policy right you think my company would ever get a contract with the u.s government you think uh the federal reserve is going to come to me at your pacific capital and say hey peter we'd like you to manage uh some of this uh money that were that were uh assets that we're buying that's not a

chance why would they want to do business with me i'm their biggest critic right well you think goldman sachs wants to be in the penalty box you think they want to risk missing out on their share of that gravy train so they're never going to say a negative word about the us government about the federal reserve because they want to do business they want to get their their piece of the action but also as a primary dealer right of us treasuries they got a lot of us treasures they gotta sell well when you're selling treasuries you're selling dollars how are you gonna trash the dollar when you're trying to sell it goldman sachs is trying to convince people to load up on dollars via treasuries well how are they going to say the dollar is going to crash buy gold when they when they're when they're trying to sell your treasury it's like you know you go to a a used car lot right you know the guy's got a bunch of

used cars to sell what is he gonna tell you don't buy this one it's a clunker they drove the hell out of it they stripped all the gears no no no it was it was it was only driven by a grandma who went who went to church every sunday and that's the only time it was used you know they would just say what they have to say because they got to move this lemon off their lot well that's basically what goldman sachs has got they got the ultimate in lemons uh when it comes to u.s treasuries and they got to put a lot of lipstick on that pig because they gotta sell it and so that's really what they're doing uh and so i i don't doubt uh that that they're gonna come out publicly and say all is great nothing to worry about and there's no reason to buy gold but we know the truth right if anybody who listened to pal talk or looked at these numbers uh that are coming out that wall street continues to ignore i'll give you a few more

numbers uh that came out we got the chicago pmi today right uh in april we got 35.4 which was like the lowest it had been since 2009 right which was the tail end of the great recession and uh the estimate was a bounce up to 40. what did we get it dropped all the way down to 32.3 that is the lowest chicago pmi since 1982 right that was in the big recession when reagan was president and volcker jacked interest rates up to 20 and that's what it took to get the pmi to 32.3 where would the pmi be today if interest rates went to 20 remember i talked on the last podcast about what happens if rates go to 10 we got a pmi at 32.3 and we're at zero uh so we're getting terrible economic numbers even consumer sentiment hit a new seven-year low today uh the april number was 73.7 on the michigan uh consumer sentiment survey they were actually looking for a slight improvement to 74. instead we went down to 72.3 that

was below even the lowest estimate for consumer sentiment and you know what surprises me is not that the sentiment went down i'm surprised it didn't go down even more i mean there is so much to be worried about that people aren't worried i mean it's going to be so much worse than consumers think they should be a lot uh you know more worried yesterday we got durable goods uh it wasn't quite as bad as they were estimating they were looking for minus 18.2 percent and we got minus 17.2 but that's only because the prior month was revised from down 14.4 to down 16.6 so when you take the revisions into account that number was also worse than expected and they expected a bad number and then of course we know we got the balance sheet numbers yesterday as we always do only 60 billion dollar increase the fed took a break on the week and only i bought 60.1 billion of uh bonds and so now the balance sheet

is almost 7.1 trillion the official tally was 7.097 trillion money supply also not up quite as much as the 22 225.2 billion was what we got last week uh so this week money supply only grew by 93.8 billion but that is still an enormous increase in the money supply as we are working less right we know that employment has collapsed production has collapsed at the same time the production of money is going through the roof right this is the inflation that the federal reserve couldn't care less about is not worried about doesn't even think it's an issue the problem is what happens when the fed discovers after the fact that it's wrong right just like um powell said right we're gonna figure it out uh afterwards well what if afterwards they figure out that they let the inflation genie out of the bottle then what do they do they can't do anything they're stuck right and this is why we're going to have a complete

collapse this is why we're going to have an implosion and you know donald trump is already trying to come up with another scapegoat and i think it's going to be china right i mean he's already you know you know drumming banging the war drums against china that was the uh the point of the speech today blaming china for everything uh in particular uh kova 19 i mean saying that basically china is the reason uh that the entire world uh was infected it's their fault they let it out they have to pay uh also that china has been stealing our our our trade secrets and they haven't played fair and now he's also talking about uh hong kong and maybe imposing some sanctions there because he says that china is not respecting the autonomy of hong kong but really kind of upping the rhetoric he didn't lay out any specific punishments for china any new tariffs he did kind of acknowledge what i talked about on my last podcast that

phase one of the trade deal basically no longer exists right so there really is no trade deal we spent an entire two years uh you know talking about a trade deal right the whole reason for tariffs was to bring the chinese to the table to negotiate a great trade deal and all that was for nothing because we got nothing we got no trade deal but now china is gonna be the scapegoat i think initially um trump was gonna run against the fed but now that the fed is all in with qe infinity and zero percent rates it's hard for uh trump to make powell the enemy right so now he needs a new enemy uh to try to unite the country to get the country to rally around that enemy and it seems like that enemy is going to be china but meanwhile the democrats are going to make trump uh the enemy and the question is what's going to be a better a campaign strategy blaming china or blaming trump uh and of course when they blame trump

they'll be able to blame greed they'll be able to blame capitalism they'll be able to invoke the memories of the 2008 financial crisis on the great recession and they'll be able to reblame that on bush and his association with tax cuts and capitalism and just say look you know uh trump inherited uh a great economy from obama and just like everything else he inherits he squandered it and we need you know we need a new deal we need a new new deal a green new deal whatever they're gonna call it uh but that's the bill of goods uh that biden is gonna be selling and personally i think the public is gonna buy it anyway i want to move over to the questions before i do and these are you know the questions that people had been asking in the live chat uh earlier in the week but i wanted to remind everybody to buy a copy of the bubble movie if you haven't already bought that movie uh this was a movie that was produced

really about a decade ago right i mean and it finally came out a couple of years ago it's a great documentary very well done film uh and it took a long time to to put it together so it finally came out many many years after it was filmed right but there's a lot of good people in there other than me what we had in common other than being austrians when it comes to economics was that we were predicting the 2008 financial crisis uh when nobody else saw it coming so but it's a great documentary on how governments have caused bubbles in the past and in particular how government policy caused uh the um the 2008 financial crisis and the housing bubble that preceded it so it puts all the blame on government on the federal reserve and exonerates the free market and the reason that everybody needs to watch that now and get a copy and share it with your friends is because the second version is coming

out soon and that is the real crash version that is the what happens next that is the consequence of all of the monetary stimulus and bailouts uh that now we're going to have to suffer right the 2008 financial crisis was the payback for the monetary policy mistakes made after the dot-com bubble pop right it was keeping it taking interest rates to one percent leaving them there and then slowly normalizing them that gave us the housing bubble and the financial crisis we have yet to experience the the consequences of zero percent interest rates and qe one two and three let alone the qe4 that we got now that's even bigger so this new movie is now forecasting what's about to happen so the documentary that's there now is a look back on what already happened but the next one is going to be a look forward to what is going to happen but before that one comes out make sure that you've already watched this one

and i think it's only 10 bucks uh the blu-ray uh ten dollars initially they were fifteen now it's only ten dollars a copy uh it's a good deal uh it's great to own a copy and you know share it get get other people the way you buy it just go to the bubblefilms.com just type in that url bubblefilms.com it's films plural because there's two of them although only one of them is out now uh and then you just it brings you right to the landing page and you can order a copy you will be thoroughly entertained i've seen it a couple of times and i'm entertained right and i know a lot of this stuff and i'm in it and so if i can watch it multiple times and be entertained every time imagine how many times uh you know you guys can watch it and and be equally if not even more entertained uh than i was anyway let me start uh looking at these questions uh first one from maureen black marine black jim rickards says

sdrs from the imf is going to replace the dollar as a reserve currency not gold what do you think i disagree you know i like jim rickards but i don't see uh the world jumping from the monetary frying pan into the monetary fire right what are special drawing rights from the imf they're just pieces of paper that are backed up by other pieces of paper like the us dollar i mean that's what backs the these special drawing rights it's dollars it's euros right it's pounds it's yen uh and so if there's a crisis in the dollar and the dollar collapses and now you say okay just take this special drawing right well what the hell is that i mean if the dollar could crash why can't this i mean this is even more obscure i mean i put my faith in the u.s dollar and that turned out to be a mistake i think i would make an even bigger mistake by putting my faith in a special drawing right of the international monetary fund i

mean come on there's no way that people are going to make that transition in fact that's why i say that you know after the dollar loses its status as a reserve currency that status is not going to be bequeathed on some other country people are not going to just blindly go from one fiat currency to another oh we just got wiped out the dollar but hey we're going to trust the euro who the hell would trust the euro right or the yen i wouldn't trust eddie's in fact i mentioned in the last podcast nobody would have trusted the dollar as the reserve currency but for the fact that it was backed by gold and redeemable in gold and issued by the world's biggest creditor nation right i mean that's why people uh took uh the dollar they would never take it today under today's circumstances so the only thing that makes sense once the dollar proves to be a failure and you lose faith in that well then that's it you

need real money the only thing that would make sense that could follow the dollar would be a return to gold and that's what's going to happen it's going to be gold as a monetary reserve not some piece of paper created out of thin air uh by the imf in fact the imf is probably gonna collapse and go away which is uh probably a good thing uh next up is uh lawrence wilson peter love your book uh which one but anyway probably all of them which is good uh could this be the tale of two farmers second could negative bond yields end up like negative oil prices where people are being paid to take worthless currency off someone's hands well no because when it comes to um negative uh interest rates right it's very different than negative oil prices which again only lasted for a day or not even a complete day i forget how many hours oil prices were in negative territory they're now back above 30 a barrel

that was a short term nominally where you had speculators scrambling to to get rid of oil that they had no place to store so that was a market anomaly uh but when you talk about negative interest rates that a central bank is creating that's simply because the central bank itself is overpaying for short-term bonds to the point where it's losing money because it doesn't care that it loses money because it creates the money out of thin air so what difference does it make if it loses it it had no cost to acquire it i mean no rational private individual would pay somebody to take their money off their hands you know i mean you would you people prefer to have things now we have a time preference for present consumption over future consumption so you have to pay to borrow money you don't pay to lend money so this is a anomaly that is being artificially created and maintained by central banks and the only reason it

exists is because of central banks and because central banks are doing this and they are creating these massive economic distortions uh they're causing damage i mean i think about the federal reserve right now forget about negative interest rates the federal reserve is buying all these corporate bonds that means that corporate bonds that would be much lower in price are now artificially bid up that means companies that really shouldn't be able to borrow money are able to borrow it see normally if you have a free market companies that are risky and have a bad balance sheet and maybe a bad business model they can't borrow a lot of money and for good reason because they probably can't pay it back right the market will push up interest rates but if the federal reserve is buying those bonds to artificially suppress rates then companies that otherwise would have been denied credit for good reason

end up getting credit and then of course when they go bankrupt even more money is lost because the fed has enabled them to borrow more money and also too if you're an equity investor you know a bond yield from a company is kind of like a warning sign right all of a sudden if you see the bonds of a company falling in price and interest rates rising that's kind of like a warning sign hey something's wrong right the bond market is sniffing out a problem at the company maybe i should sell the stock maybe i shouldn't be in the stock if people are too worried about holding their debt after all the debt is in a senior position to the equity and if the bondholders are worried about getting paid back well then the stockholders better be worried even more but now the government is short-circuiting those warning signs warning signs that would ordinarily be frashing flashing are being uh you know obscured by the

government they've thrown a blanket over those warning signs so you can't see them the whole market is rigged but this particular uh question about the two farmers is referring to uh farmers in my book because in my book i think it was crash proof i had an analogy of two farmers that are trading with one another right let's say one farmer grows wheat and maybe the other a farmer uh grows corn or i forget what particular commodities uh they were growing uh but then the farmers would trade with one another so the farmer that grows wheat also has corn because he gets to trade some of his wheat for corn and basically each farmer farms what is most ideal for his land and that's highest and best use and comparative advantage you do what you do best and then you trade with other people right and i think one of the examples was a farmer didn't have anything and he just paid with ious because he didn't

have any crops and the other farmer was accepting the ious because he figured that the farmer would eventually uh be good for his ious and i think in my example the farmer got so used to not farming and living off his ious that he turned his farm into a golf course or something like that and the other farmer hadn't even noticed that the farmer he was trading with and accepting his ious had no possibility of ever making good the ious and real food because he was he no longer had a farm he had a golf course uh uh but yeah i mean it's the same thing american america's creditors are gonna wake up and they're gonna realize uh that we've been paying uh for imports with ious but we don't have the ability to make good on those ious uh with actual exports um next question ferris twain let's see since i discovered you i have been obsessed with austin economics my goal is to teach the subject in academia which grad schools would you

recommend i mean you know i don't know which grad schools i mean i mean there are some schools uh that are known for austrian economics george mason uh university is one and there's the uh auburn um what's the um college there i spoke there um but anyway it slips my mind but there there are some schools uh where they have professors who teach austrian economics who you know follow the offspring economists and you know who are not keynesians who are not monetarists who you know actually you know are are educated and have read uh the pioneers of that particular school of thought uh but i think the best way to learn it is the way my son spencer is learning it just teach it to yourself i mean that's how i learned it i mean i didn't look i certainly didn't learn anything worthwhile about economics in school right whatever i know that really has value i learned on my own either i learned it from my father

right or i read it i learned it just reading books or i just discovered it well you know because once you understand economic principles you can figure stuff out on your own you don't actually need to have somebody else explain it to you you can figure it out right once you have the concepts down once you understand the basics well then everything kind of flows from there right once you're you know in that direction or moving in that path you can kind of steer it yourself but it is good to read some of the giants of austrian economics and uh and uh you know uh you know learn from them uh but then you know you can build on that yourself as far as your ability to teach it i know that is difficult because in order to teach economics at a university level you generally have to have not only a degree but like a phd in economics so you're going to have to go through the paces but what you could

do if you don't want to be affiliated with the university you could just teach on your own i know the guy that i work with paul at uh shift radio has this website renegade university i think teachers go on there and they people can just sign up for classes i mean you could teach economics and have people pay for your classes and do it online and not even be affiliated uh with the university and you can help people understand understand economics but if you want to do it in a traditional academic setting then yeah you gotta go uh to college uh and you know you gotta you know you're gonna have to have study i mean i i learned a little bit i mean i if i look back at the econ courses i took at cal berkeley i mean the only course that really uh made any sense was microeconomics right when you study micro as opposed to macro which is all a bunch of keynesian nonsense when you just learn about supply and demand

and how the curves are formed and you even actually apply some of the algebra i mean uh calculus rather because you actually it's like the only time i really used any calculus was in trying to uh calculate uh supply and demand curves right and trying to you know figure out uh you know marginal pricing i remember it was i thought it was it was actually kind of fun for me to actually find a practical application to math other than just addition and percentages and stuff like that we were actually able to construct marginal curves using a derivative and i don't even remember today because it's been so long since i had to differentiate anything but i do remember that it was interesting applying calculus to economics in a way that actually made sense so microeconomics i think has some value and there you're you're learning economics from a company level uh you know not from the whole country

but just specifically to individuals and individual businesses and individual markets and so you can certainly learn stuff from a micro course it's when they start going into the fantasy realm of macroeconomics that they really go from like learning astronomy to to astrology um next question peter do you see a digital dollar happening and what would that mean for gold look the dollar to a large degree is digital right now i mean how many paper dollars do we actually use the key is whether the dollar is paper or digital it one day will be backed by gold i mean that's what's going to happen i mean all of the fiat currencies in whatever form they end up being and i think digital currency makes sense right we don't need paper currency we can represent paper currency digitally so long as the real money is backing it up see that's the problem with bitcoin or any of these other fiat cryptocurrencies is there's nothing

backing them up there is no real money behind the the the currency but if we end up having digital currencies that are backed by real money gold then fine i think a digital dollar would work better than a paper dollar so long as it's backed by gold if it's not backed by gold it's just as flawed it may be easier and more convenient than a paper dollar but ultimately it's not going to be a store of value so it's not going to be a good form of money if it's tied to something like gold then it will be a long-term store of value and then it will provide the discipline that you need on government that is the beauty of a gold standard is that governments need to live within their means they can't make false promises gold keeps governments honest i mean the best essay on that was the one that alan greenspan penned golden economic freedom which is part of iran's capitalism the unknown ideal which is another great book

that you can read um next up is aaron goldstein hey peter i'm from the uk canada and australia in the next five to ten years right oh no peter out of the uk canada and australia in the next five to ten years if you had to guess which one of these comes will have the best overall economy and the highest standard of living um uk canada or australia i would go with australia that'd be my bet because i think they have a lot of resources down there in australia and they have big ties to asia they have big ties to china and i think china is going to rise to a much greater degree than is generally perceived so i think australia is in a relative uh good position uh to benefit from that growth as well as from its own growth uh particularly when it comes to resources uh which australia has in abundance uh next up ryan peterson while the velocity of money remains low some claim that the dxy will rise in the short to minute

term since the base money supply is less than demand for eurostals in the us why do you think this is wrong like i've been talking on this podcast for a long time why i don't think the dollar is going to rise in fact if the dollar was going to rise it would have already done so i mean the dollar index is no higher really than it was at its peak at the end of 2015. the dollar index has been going sideways for five years now against some currencies the dollar has gone up right against a lot of the emerging market currencies right if you look at a trade weighted index the dollar is higher now than it was but against its major rivals like the euro light the yen um bike to swiss franc um the dollar is no higher than it was five years ago so i think what the dollar is doing despite all of this bullishness about a dollar shortage and dr leveraging and the milkshake theory and all this stuff the dollar is not going up and when

something's not going up the next thing is that it goes down and the dollar has been in a long-term decline it's been in a bear market since 1971 against its major rivals and it's been in a massive bear market in terms of gold and that bear market is continuing and i think gold is leading the way so for all the reasons that i've been discussing on this podcast and i will continue to discuss i disagree uh with that forecast and i think the people who are betting on the dollar like goldman sachs are wrong and i think people who are following the advice to bet on the dollar are going to lose a lot of money i think my advice to bet against the dollar to own gold to own silver and to own foreign assets is going to prevail and i think the people who are listening to me are going to be far better off than people who are listening to the the crowd that is bullish on the dollar and thinks everything is great

like uh goldman sachs uh next question from the uk is the biggest risk for gold bugs when gold values start rocketing to the moon oh tax or confiscation so what's the bigger risk for the gold owners is it that your profits are taxed away or that your gold is confiscated look that is always a risk and it's a bigger risk depending on where you happen to live right if you live in a country that is in bad shape fiscally uh and you know economically uh and you have a more corrupt government there is a greater chance that they will try to confiscate your gold whether they do it outright by taking it or whether they just confiscate your gains through taxation which is the form a form of confiscation look that is a risk i mean i'm not going to diminish that risk now obviously if you have physical gold in your own possession you diminish the risk because it's harder for the government to confiscate

what they don't know you have and what they can't find so if you're worried about confiscation just don't have third parties in control of your goal because the third parties will turn the gold over right if the irs or the government goes to a third party and says give us all the gold that you're holding for other people they're going to do it why should they stick their neck out for somebody else especially when the government gives them immunity right because if the government comes to a bank and you happen to have uh your money in the safety deposit box or your gold in the safety deposit box and a government agent walks up to that bank and says hey i want you to open up every safety deposit box and give me all the gold that's in there and they do it you can't sue them because they've got a perfect defense we just we got orders from the government they don't even care if there's a court

order there's no justice if you do what the government tells you the government's going to protect you and why should you stick your nose out when it's not even your money right and especially when the government has so much power because the government can say hey either you open up those uh safety deposit boxes we're going to shut you down we're going to put you out of business we're going to find you we're going to imprison you right because they know they just go to a bank open up the boxes i don't know if there's any gold in there open the box we'll see what's in it right nancy pelosi style but if you happen to own gold on your own the government doesn't know that you got it right and even if you had it at one point how do they know you still have it right uh so if you're worried about confiscation of gold then just take possession of your gold right and if the government's gonna have a huge

tax for selling your gold then don't sell it or don't tell the government you sold it barter it or something like that right uh but it is it is a risk it is a possibility but you know go to shiftgold.com and and and buy the gold and and keep it keep it for yourself right i mean you know but what i do know is that if you have dollars then the government doesn't have to find them right see the government can only confiscate your gold if they find it they have to take it from you they don't need to find where you've hidden your dollars right if you have dollars underneath your mattress the government doesn't need to come and take those dollars away from you they don't have to find them underneath your mattress and grab them they just print more and they render those dollars worthless see they don't need to find your money when they print money they wipe out the value of everybody's dollars no matter

where they're hidden they don't have to go to a third party they just take the value they don't have to do anything so the easiest value for the government to confiscate is the value of their own currency that they print right so that's the first thing if you're worried about the government confiscating everything anything worry about that worry about the government confiscating the purchasing power of the fiat currency that they're printing and that you're dumb enough to save so get rid of that it's much much harder for them to take your gold and of course you know it's they could take stocks they could take bank accounts they could take foreign currencies the easiest thing for the governments to take is anything that's held in the custody of a third party the hardest thing to take is the stuff that you have yourself which would probably be your goal next question will your gold fund pay a

dividend our gold fund does pay a dividend but the dividend is not set in stone it depends on what the fund earns and the earnings are a combination of dividends that we collect on stocks and there's not a lot of dividends these days in the gold mining sector there's some dividends right but a lot of the dividend results from capital gains because what happens is we do buy and sell stocks uh over the course of the year and if we end up realizing again we have to distribute those gains as a dividend but you don't find out the size of the dividend until the end of the year because then we kind of calculate what the gains are and we have an approximation of what the dividend is going to be obviously if you own my gold fund in a non-taxable account a tax deferred account then it doesn't make a difference about the dividend but obviously if you own uh the fund personally in a taxable account then there are

going to be some tax consequences surrounding those dividends if you don't want the dividend you can always sell uh your shares uh before they go ex-dividend and buy them back cheaper after and then you avoid the dividend but then you potentially generate a capital gains when you sell the fund you might have a loss but if you sell the fund at a loss you'd have to wait a full uh 30 days to buy the same fund back if you want to use uh that loss of course you can throw the money into like the gdx or something like that during those 30 days uh so you still have exposure to gold stocks and then get back into my fund there are different ways that you can figure out how to manage your own tax situation or when it comes to my gold fund but the key is uh to buy the fund um you know i somebody had sent me an email i forgot who it was they would say hey why should i buy your gold fund look you're underperforming

uh the gdx which was true uh year to date uh but you know we've outperformed it nicely uh this week actually uh but again even a week year to date look at how we've done since inception that is the key uh i think over the long run i expect my fund to kill uh the gdx i think the stocks that adrian day is picking are going to outperform that index handsomely over a longer period of time and so the purpose of investing in my fund is not to have the best returns over any short random time period it's to have the best returns over the course of this entire gold bull market which is going to last a long time and if you think that somebody who really knows the industry who who knows the management teams and the project and who's been doing it for 30 or 40 years if you think a guy like that can figure out which are the best stocks to buy and which stocks should be avoided rather than just buying everything

because you don't know what you're doing right if you think over in the long run brains are going to win out over luck you know then buy my gold fund right i'm convinced uh that it's going to be more than worth the extra cost i mean the index funds aren't free you still pay a small fee yes it's a lot less than what you're going to pay me because hey i got a higher adrian he's not gonna do all this work for nothing uh but i think we're getting a lot of value for our money uh and so i think if you you know if you wanna make the most out of this bull market then hire the best guy uh to manage your portfolio and pick the stocks for you and them and you know know when to sell and know when to buy something else or know when to take advantage i mean we're not just sitting on the money we're managing uh anyway uh so epgfx is the symbol also ep igx i think is another symbol there's different symbols for the fun

but it's the same font just different um categories different classes share classes um next question and you can buy the funds directly by the way if you want to do a small amount the minimum is only 2 500 bucks at europacificfunds.com make sure you read the perspectives understand there is risks obviously if you can make a lot of money that means you're risking losing money in the process right you lose if i'm wrong i think you make money if i'm right and don't forget we got five funds don't overlook the value fund the dividend payers fund the emerging market fund or even the bond fund i mean i think they're all uh good funds to own they should all be part of a portfolio if the goal is to get out of the dollar if you want to have a portfolio that will provide a hedge against a weak us dollar against stagflation against weak u.s markets then i think all of my funds would have a place in a

diversified international portfolio and i think people should have much more of their portfolio outside the us right now than they do inside for many many different reasons um next stock um i can only get gold stocks i can only get gold stocks shouldn't wait for crafts before buying as there will be a big drop in metals as well okay i think this guy is saying should i just wait for a big crash look we just had that right we just had a big crash in march right the initial response to the collapse of the markets to the fed slashing interest rates to zero and going back to qe was paradoxically gold stocks crashed and especially like the smaller stocks right the ones the gdxj it was the gold stocks went down more than the non-gold stocks and at the time i was saying this is a gift from the trading gods just buy up these are the stocks that should be going up and sure enough a lot of these stocks doubled and

tripled yes the whole market went up but the gold stocks went up much more they went down more but then they went up more and now they're higher than where they started to decline that's not the case uh for most of the you know the regular stocks there are a few exceptions you know some of these coven plays that you know really really rallied um but now do you want to gamble if that's going to happen again i mean it could right you could take profits on your gold stocks now certainly if you bought them on that dip and you could sit back and hope that the next time there's a market crash the gold stocks crash too except it might not happen again it might and it might not i mean yes you can keep some dry powder in case we get lucky again and a bunch of idiots decide to sell the very stocks they should be buying or they're forced to sell them because they're on margin personally i think most of the margin players have been

flushed out i think that people who had stops in the market who bought gold stocks and put sell stops in there i think they got stopped out so i don't know that we're going to get another big drop that might be the only one i wouldn't want to chance it i wouldn't want to sell all my gold stocks now on the hope that i'll get to buy them back cheaper i mean maybe i'd sell some if you if you bought some way down there and now you're overweighted and you want to lighten up a little bit but your core position i mean i would want to build on it i i'm more bullish than ever on gold stocks uh so if we get lucky and there's another big decline great if you have the cash buy more but i wouldn't sell because it might happen and i would not buy because i might be able to buy cheaper in the future because i might not be able to buy cheaper in the future the prices might just go up we may never see a lower price than the one we see

right now uh and so i think the risk is so bad for the dollar i think the risk of not being invested in mining stocks is greater than the risk of being invested in mining stocks so i would rather err on owning and i'm willing to ride out any any short-term decline just like i wrote out the decline that we just had which is now meaningless right i mean if you did not sell into that abyss you lost nothing your gold stocks are worth more today than they were in february before the big drop so did the big drop matter to you not if you didn't sell yes if you got spluffed out of the market if you panicked and you sold yes then it meant a lot it meant everything right you you got bluffed out of a winning hand but if you held steady then you're fine and if you took advantage of other people's misfortune or mistakes you actually benefited from that big drop because now you have a bigger allocation to gold stocks at a better

price next question i bought your gold fund and it's risen well since but now i'm nervous to buy more because i don't want to ruin my average price look i i don't know how much it's up since you bought it i mean maybe you bought it right near the lows uh but look sometimes you gotta average up i mean i think if you want to have a bigger position and you were too scared to buy more when it was cheaper i don't think you should make the mistake of thinking that now it's too expensive to buy because don't look at my gold fund in relation to how cheap it was a month ago look at it in relation to how much more expensive it could be a year from now five years from now i still think we have a long way to go in this bull market i still think we're much closer to the bottom than we are to the top and i think the prices that you're paying today are going to look very cheap relative to where they're going to be in the future

so i don't think that you need to be nervous i think we need to see a much bigger rise before i would be a little worried about a more meaningful pullback based on an extreme in sentiment i mean when you get a big investment bank like goldman sachs doing this highly publicized call to investors where it basically says don't buy gold don't buy gold stocks there's nothing to worry about there's no inflation i'm not worried that my the gold stocks are too high wait until goldman sachs and everybody else in fact probably not even the first uh big bank wait told maybe the sixth or the seventh comes out and says yes we think you should buy gold stocks too right wait till everybody jumps on this bandwagon before we start to think okay now we might get a more significant pullback i shouldn't buy anymore or maybe i should lighten up uh and believe me i mean at some point i am going to advise that a lot of my

clients who have been loading up on my gold fund and that's where most of the flows have been going recently is gold at some point i'm going to come onto this podcast and recommend that people shift money out of my gold fund into one of my other funds uh because gold that you know has come too far too fast and it's time to take some of the cream off the top and create a more balanced portfolio so keep listening to this podcast and i'll let you know when i think it's time to do that but right now i don't think it's time i still think that we want to ride this horse because it's barely barely out of the gate but again make sure that you know this is risk money and just you don't put money into gold stocks that you're not willing to lose if it turns out that i'm wrong on my outlook all right now peter you're the best tell us again about your exchange with greenspan in 1987.

what would you say if you met with him today you know i never actually met alan greenspan i wanted to meet him one time that he was in it at the new orleans conference but i wasn't able to meet him i forget maybe i wasn't there that day i forget why i wasn't able to meet him in the green room or anything like i did run into ben bernanke you know at the green room of i think it was uh um what's his name's uh scaramucci uh conference assault conference in vegas that's where i met uh um bernanke i always pronounced that guy's name wrong somebody was you know kind of call me out yeah it's not it's bernanke right not bernanke ben bernanke some way i don't know why i don't know why i always get that guy's name wrong but a lot of people got it wrong what happened was i think i was mispronouncing it from the beginning and once i start mispronouncing somebody's name it's hard for me to then pronounce it right because it's kind of

like like habit of how of how uh you're saying i remember that you know that cartoon where they were just calling him the bernack right remember that that that youtube video that got uh on quantitative easing that got all those uh all those views but they just called them the bernack and so a lot of people started referring them by that name um but um yeah alan greene's been you know i mentioned him earlier in the podcast because he wrote the article on gold and economic freedom and i read some of greenspan's writings uh at a young age i read them you know as a college high school kid college kid so i actually liked greenspan right and so when he became fed chairman i was excited about that in 1987 right and and then when he began to do things that disappointed me after the 87 stock market crash when he began to do the very things that he was criticizing the federal reserve for doing in the 1920s

i could see that he was doing precisely what he said was a mistake when we did it in the late 1920s and so i called them out on it and you can look at the two emails i finally are not emails letters i found them you know they were missing for years and i was looking for these things i knew i had them somewhere because i would never throw them away and for years i couldn't find them and then i just found them i don't even remember where i found them but i found them uh and they were still in the original envelopes that they were mailed to me from the federal reserve back in 1987 and of course i don't have copies of the letters that i mailed greenspan right i didn't keep a copy i should have uh so i only have the copies of the ones he sent me and i believe i sent him a follow-up letter after i got the second letter but i never got a third letter from him i got two letters uh but he wrote them he signed them and

um i put both of those letters up on the shift radio website so you can check them out just you know shifreyo.com you just play around on the site you'll find them and i think they're very very interesting because it really lays out exactly what greenspan did for his entire tenure and he ended up you know as the longest-serving fed chairman in history and my exchange with him happened right away during his first year and he pretty much laid out the mistakes that he was gonna make but he he he knew that he was playing with fire but he just thought that he can control it right that you know that somehow he could do what prior fed chairmans couldn't do right all of a sudden he thought that he was going to be able to succeed where others had failed you know it's like lord acton you know power corrupts and so once he got the absolute power of being fed chairman he became corrupted absolutely

in the notion that he was now like a superhero and that so now he could be trusted with this power that lesser men uh were not able to handle and we now found out that of course he was mistaken because he gave us one bubble after another which resulted ultimately in the financial crisis of 2008 and the playbook that he wrote that caused the housing bubble in the dot-com bubble and that gave us the financial crisis and that allowed this massive increase in government debt and and all sorts of debt that playbook right was then adopted and expanded by bernanke and by by yellen and now by powell so he wrote the rules that all these guys are following except the difference is i think greenspan knew in his heart that that this was a wild gamble that it was probably wrong i think he is the only one of these guys that actually knows how this movie is going to end right the other people are clueless they don't

know right greenspan knows right this is going to end in disaster you have you listen to anything this guy has said since he left uh being fed chairman and you read between the lines and sometimes you don't even have to read between the lines just read the lines and it's clear that he knows a disaster is coming he just doesn't want to accept responsibility right that's why you know i i i call this guy a traitor i don't have i have less respect now for greenspan than any of these people who have followed him because he knows better right yet he did it anyway anyway but uh next question um have you um have you seen or read the prince prince the princess of yen basically showing how central banks are not inept but rather are purposely creating bubbles and crashes to acquire power i have not read uh the book is assuming that we actually have the title correct correctly um you know there is a a view that the

central banks are doing this on purpose that they're purposely creating bubbles that they know will pop uh that they're creating fires that they can put out uh in an effort to grow government make government bigger so they have a devious purpose behind their seeming madness look i just think it's everybody acting in their own political self-interest everybody is incentivized to kick the can down the road right nobody wants to do the right thing because doing the right thing means that you're not going to get reelected you're not going to get reappointed so i don't think that people are destroying the country on purpose i just think it is the natural consequence of the political decisions that are being made right we're making decisions that serve the political interest of the people who are making them but that undermine the interests of the country now i also believe that politicians take advantage of any

crisis that comes their way not that they're smart enough to plan them or predict them but they're certainly devious enough and greedy enough to take advantage of them so every time there is a crisis that happens to be caused whether they realize it or not by their own policy mistakes they seize on that crisis to make government bigger because that's what they want to do anyway right the people that are in government believe in government they they think that the free market doesn't work and they think that we need government and we need them uh to correct the the flaws in the market and to and to create a fairer outcome than the one that would happen naturally uh if we had free market forces uh you know determining things so yeah they certainly use the crisis but i don't think they even are smart enough to plan them to do it on purpose but they take advantage of the crises that they create by

accident um next question um the fed dropped the reserve requirement for banks to zero since we are under our fractures or banks does that mean that banks can loan an infinite amount of money basically but in theory they still need to get paid back so there's supposed to be some credit worthiness behind their loans right so you can say is there an unlimited supply of credit worthy borrowers not really but yeah you know there is a tremendous amount of money but a lot of that money ends up being loaned back to governments because the banks end up buying treasuries or other government guaranteed loans with that money right because after all the rates that they're earning are extremely low so they can't really afford to take much risk on such low rates and a lot of times too if they if they make loans that are not to government entities they get a big haircut on the value of those loans and it

impacts their balance sheet so the government really rigs this system uh so that the banks basically take whatever money they get from the fed and they turn around really and they loan it uh to the government or they they loan it for for mortgages or you know student loans or at least they were doing student loans before the government uh basically cornered that market uh but the the federal reserve and the government are trying to direct uh the bank to lend the money uh where they want it to go you know to where it's politically favored but what we really want is a banking system that is based on savings that is based on people not consuming deferring consumption freeing up resources for the future and saving their money and now the banks take the actual savings that represents foregone consumption and they actually take those savings and they loan it to private entrepreneurs who invest those savings in plant and

equipment in training workers and making the economy more productive so that we have a increased supply of goods and services so that the people who are saving their money can then spend their savings in the future and enjoy a higher standard of living because their savings were used to increase the supply of goods and services that will be available to consume in the future because their savings were invested in productive capacity in capital and in in in worker productivity and training in ways that we now are more productive and so there are more goods produced to be bought with the savings and the interest that they earned on those savings but it's a long way to go from where we are now this phony bubble economy uh based on uh printing money debt and consumption to a genuine free market economy based on under consumption savings and production uh but then again you want to understand that that's

where the austrian uh perspective comes in because uh the austrian school has a lot to say about that uh last question is from dennis goddard uh hello from new hampshire home of the free state project live free or die i hope to see you here again after we beat kovid oh okay so guys just saying hello not really a question yeah i have no plans on being up in new hampshire this summer i am going up to connecticut uh next weekend uh so i have one more week down in puerto rico and then i'm gonna be spending the summer uh in connecticut not exactly sure when i'm gonna come back down to puerto rico it's kind of up in the air a lot of it depends on the schools which is where my younger children are enrolled anyway that's it for today have a great weekend we got a brand new month the month of june uh starts on monday and i'm sure we'll have a very interesting a month to say the least and i will be

reporting on all the action live from my podcast on the peter schiff show bye for now everybody

Questions about this episode

Who speaks in "🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red"?

Peter Schiff (Host), Mark Cuban (Guest), Jerome Powell (Guest), Alan Blinder (Guest).

What is "🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red" about?

The financial markets saw positive movement with major indexes recovering from initial downturns following President Trump's news conference on China, but concerns linger about a potential decline as the "sell in May and go away" strategy looms. Notably, silver experienced its largest monthly gain in nine years, rising nearly 20%, outpacing gold's modest increase, and signaling a potential…

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18 people, works and ideas are mentioned, including US Dollar, Peter Schiff, Gold, Jerome Powell, Silver, Goldman Sachs. Each one on this page links to its own page with every episode that mentions it.

How long is "🔴 BREAKING NEWS!! Big moves in gold and silver, Wall Street sees a sea of red"?

The episode runs 1 h 33 min; the transcript is about 16,582 words in 95 timestamped sections.

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About this transcript: the episode's spoken words as captioned on YouTube, split into timestamped sections. Reclip.Me locates every person, work and idea in the text, keeps the time it is first named, and quotes the words around it verbatim. Last updated January 24, 2026.