Mike Maloney: "They have to steal your purchasing power or the financial system will collapse!"

[Music] what i love to do is introduce the right people to the right people assemble the smartest people i can think of or reach out to to carry that conversation and that's exactly what i've done today please give my panel a round of applause welcome okay what's up guys jay martin here ceo of cambridge house and we are searching for our next investment opportunity i'm joined right now by mike maloney the ceo and founder of goldsilver.com and the best-selling author of guide to investing in gold and silver mike how are you i'm doing great thanks for having me here i'm glad to have you back in the show we haven't seen each other in a few years i can't recall the last conference we had you speak at a benefit of doing this remote is that we can get in touch with people like you easier so i'm excited to dig into a few topics with you today and i want to start mike by getting your thoughts on which macro themes you're going to be paying the most attention to in 2021 well the macro theme you know the because of the econo the the lockdowns uh and the contraction in gdp around the world uh the macro theme is just basically watching the economy and all of the major governments response to this crisis and their response the central banks have shown that the only thing they know how to do is uh create currency by the way uh i'm trying to get as many people to refer to the proper definitions of currency and money as possible money there's there's some attributes that currency and money have to have and currency has to be a medium of exchange a unit of account it's got to be portable durable divisible something called fungible where all the units are interchangeable if you loan me a twenty dollar bill i can pay you back the ten the five and five ones and you don't care that's fungibility money has to be all of those things plus a store of value currency does not have to be a store of value money has to be a store of value uh gold uh purchases relatively the same amount as it did in uh ancient rome i mean it stores value over the centuries at stone's value it bounces up and down in a range of purchasing power right now its purchasing power is very very low compared to all the stuff that we have in society you know a couple thousand years ago people had a bed a goat a pair of shoes one outfit of clothes and that was like it today everybody's got cell phones and tvs and cars and and all this other stuff but there's relatively the same amount of gold per person and so gold should be purchasing many many many times more stuff why doesn't it because we diluted gold's purchasing power with all of the other liquid financial assets that we've created in this 2000 year period but really there's about the same amount of gold per person on the planet and and so it's purchasing power when those other assets things like bonds and stocks when they become less trusted and people run back towards safe havens the uh the purchasing power increases many many times and i believe that that is what is going to be happening over the next uh couple of years here yeah and this year you asked about what i'm watching out for this year i'm watching out for the massive currency creation that they're going to do the dilution of the currency supply and i'm also trying like i said i'm trying to get people to call there there is no national currency that is money stop calling it money it's not money it doesn't store value its very design requires that it constantly loses value because when they create currency and buy a bond with it that's how the federal reserve or a central bank gets their currency into circulation they whip up numbers out of thin air just type them in and then they buy something with those numbers those numbers are not money those numbers that have an official designation of a canadian dollar or a euro or the us dollar or the aussie dollar those numbers are just currency they do not store value and the reason they don't store value is because typically the central bank will purchase a bond of that country and the bond requires that principal plus interest be paid so what is backing that currency is debt and when you back the currency with debt uh the country has to tax the population in the future to pay the principal plus the interest on the debt except the currency to pay the interest doesn't exist yet there is always more debts than there is currency and so to pay that uh interest you've got to create more currency so they have to dilute the currency supply constantly over this over the years they it's impossible to not dilute the currency supply in a fiat currency system like this a debt-based fiat currency system without collapsing the whole thing right so they have to steal purchasing power from people constantly through this dilution anyway yeah that's a tangent i went off way too much but uh i am looking for i do think that this year there's going to be some tremendous market correction uh i think that people are start going to start coming to the conclusion uh that they have to sort of run for safety uh in this interest now a lot of people think that the markets are so manipulated now by uh the central banks and the governments that they can't crash anymore that they're just going to go up well why did they why did they do such an enormous pullback in march i believe that the world's central banks can manipulate the markets but they can't uh overwhelm the free market overcome the free market uh in the short term what they can do is create a tremendous amount of currency after a market crash get the markets to go up and when they do that they steal wealth from the poor and the middle class people that are holding on to currency and they boost financial assets such as the stock market making bill gates and jeff bezos uh sent to billionaires you know so they're they're stealing from the pop rest of the population and they're bestowing that stolen wealth upon the wealthiest people on the planet so okay there's a bunch of stuff in there i want to unpack and i just want to begin by saying a lot of what you're talking about you've covered in a series of videos called a history of money i think there's hidden secrets of money the hidden secrets of money that's right that's right and these were put out like what seven years ago mike it was over a ten-year process the last one was just about two two years ago i think okay okay and we're coming out with a couple of new episodes that are actually part of a different series the formula for prosperity okay hidden secrets of money and i found these like five six years ago they're excellent and you know there was like a six part series when i found them everybody should check this out and provides a lot of expansion on what you're talking about about currency versus money so they were originally made for we were going to do a series for pbs or the history channel so this is shot in 18 countries two full-time animators uh dan rubock is my producer director and he edits the thing and scores it uh and uh these are done to a very very high standard they are when you're shooting in 18 countries i mean it you know these things are not cheap we've spent more than a million dollars on this 10 part series and uh it's not your average youtube stuff and then we give it away for free it's it's just good knowledge and if you want to see the production quality start with the last one episode 10 and then go back and watch some of the others but episodes nine and ten to me i think that it's worth somebody making a bowl of popcorn and putting it on their big screen tv got it all right all right okay now you mentioned a couple things there forecasting and market correction you know a lot of people that i talk to are completely aligned with this you know this occurs 20 21 20. it's hard to time these things i don't ask for right but you know in that scenario mike would you expect a similar response this time to the crash we had in march where there's a flight to u.s dollars before cash gets redistributed to probably hard assets instead of financial assets uh there will be both because each time it's going to be less and less applied to u.s dollars because when you talk about the us dollar you're usually talking about u.s treasuries sure and bonds are becoming i mean if you have a population that has that isn't as rich as it was the previous year and our gdp contracted because of these lockdowns uh so if you have a smaller tax base the bonds become more and more suspect over the years because the bonds rely on future taxation this is part of you know we live in a modern monetary system that is a it's it's a feudal type of system there we are serfs because we have to work to replace stolen purchasing power uh that they do through taxation to pay the principal and the interest i mean we're paying off in the u.s we've got a 30-year bonds so we're paying off the prosperity that we enjoyed under the first george bush you know back in the 90s we just finished paying off the ronald reagan era so [Music] yeah there is a market crash coming but each time there is a flight to safety you're going to see a higher percentage go toward gold silver and cryptos and a smaller percentage going toward bonds because bonds in a shrinking gdp and you know the big brokerage firms can figure this out it takes them a little longer i mean i'm surprised that it took them uh this long to start identifying cryptocurrencies and stuff as you know we're starting to see um uh big firms that uh are normally investing in only traditional financial assets starting to go into cryptocurrency we're starting to see uh big pension funds uh announced that they're going to be purchasing gold uh and uh this is just something that is a transition and these guys are late but they're still they can still make the party uh they're just not early for the party uh you and i were early for this party which is great i mean gold has been gold and silver have been the uh number one perform you know behind cryptocurrencies bitcoin and such yeah um uh they've been the number one performing asset of this century uh and people still think it's a lunatic fringe thing right for the average person i remember back in 2001 2002 i was trying to get people to take a look at gold and they'd say gold that's been going down for 20 years that's the worst investment you could make and i'd say exactly it's been going down for 20 years don't you get that right yeah can't go down forever now have you been surprised though mike because 2021 got off to a crazy start you know there's been some chaos i'm in canada but south of the border there's been some some oh yeah gold hasn't responded the way it typically does or historically it does to chaos does that surprise you or what are your thoughts on that uh it surprises me except the official price of gold is set by paper contracts the gold futures and uh and uh during this period of time for some reason you know the stock market was going up so uh the big brokerage houses and so on the big really big investors weren't shaken up that much by all of the violence over the summer and the rioting and the shutdowns and everything else uh what was happening during that period of time is the federal reserve created massive amounts of currency and then they have to uh get the uh they have to try to make the population uh comfortable to the get the population to believe that excuse me everything is all right and uh to do that for some reason people think that the stock market is the economy these days right it wasn't like that back in the 60s 70s 80s but ever since the nasdaq bubble of of 2000 people have identified the stock market with the economy and so what the federal reserve does you know under their normal open market operations when they used to stimulate the economy by buying or selling financial assets they would do that from the big brokerage houses that are the primary dealers that purchase bonds directly from the treasury when ben bernanke introduced quantitative easing they started buying a financial assets from non-bank entities and the federal reserve doesn't create the dollars that you and i use they only create dollars that circulate within the federal reserve system only accounts at the federal reserve so those dollars never leave the federal reserve uh and uh so when they buy something from a non-bank entity they can't pay them what they have to do is they pay their bank that has an account at the federal reserve and then their bank creates a dollar for each for you purchase a billion dollars worth of bonds from from some uh fund a pension fund a hedge fund and then you pay their bank a federal reserve dollar that dollar can't leave the federal reserve it's in the bank's account of the federal reserve the bank then creates a bank credit dollar and puts it in the account of that pension fund uh so for every dollar of of reserves that you see there's actually two dollars that got created and when they do this there is this incredible correlation between the amount of base currency that the federal reserve creates and the stock market uh during the years that ben bernanke was doing qe1 2 and 3 the correlation was 0.976 that would means it was 97.6 percent the same with a little bit of time delay the stock market went up by the same percentage over the same period of time right so um uh they're i'm sorry i can't even remember what the question was i went off on a tangent that's all good no i was wondering yeah i mean we started talking about your thoughts on what would occur in the next market okay because in march you know there was this flight well they won't be able to control the crash all it can do is transfer wealth after the crash and make the richest people on the planet richer by stealing from the poor in the middle class yeah yeah yeah okay now this system you know it works as long as we're growing right a debt based system works as long as there's growth i wonder you know thinking back we've had contraction lately yeah we're not back up to the levels where we were in february of 2020. and i have to think that that contraction is is just getting started if you look at so many small to medium businesses yes we're going to float the big corpse right but it's right restaurant tours it's the hotel operators they're operating forty to fifty percent capacity that's not profit right and they're out of their uh backup capital at this point that's right they've been squeezed and squeezed and squeezed and the ones that haven't gone out of business are hanging on by their fingernails oh yeah and here the government comes along with a pair of nail clippers right yes i'm sorry i'm laughing i shouldn't be laughing but it's uh it's you can see the predictability of this stuff and how you know when you look at the the uh cdc and so on you see the uh the uh death rates the new what the new data that they've published and they've closed down the world economy and they are going to be killing uh far more people through this collapse in gdp there is a direct correlation to a country's prosperity uh financial prosperity with their uh their lifespan and so if you reduce everybody's lifespan in the country by making them poorer so they have less access to quality healthcare uh high quality food and so on right then uh it's basically uh tantamount to committing murder they are uh they're gonna end up doing the equivalent of killing more people than they're saving and this is all to make some drug companies just uber wealthy so okay okay i want to cover a couple other things will i still have time and you know one thing that struck me about you and your business mike is you i think you were the first precious metals dealer to accept crypto as payment for medals that's true yeah so what were you seeing and i guess how did those two asset classes play together for you right now uh well i see them playing on the same team they're both safe haven financial assets uh and they offer you a bunch of different antibodies uh gold and silver are three dimensional they have weights they can't vanish they probably you know bitcoin started from uh zero it had no value its first value was established in 2010 when two papa john's pizzas were worth about 15 bucks a piece we traded for 10 000 bitcoins so that established a price of one-third of one penny and then more and more people discover it this is the first new financial asset in 400 years there's you know uh the first uh representation of a bond that we know of goes back to uh 2400 bc in mesopotamia mesopotamia uh their the uh um stocks were traded uh about they started trading about 500 years ago a little over 400 years ago was the first common stock issue from the british east india company real estate and commodities have existed forever and so this is the first financial new financial asset class in 400 years and it started from zero of course the gains have been spectacular they've been the biggest gains in all of history there is no bull market that even that can compare to i mean it's bitcoin right now from its initial price is up 1.2 billion percent right billion now is it going to have gains like that again in the future i doubt that very much and now uh christine lagarde former uh chairman of the chairwoman of the uh the imf and now the head of the european central bank uh has said that uh she's calling on governments to try and regulate bitcoin well they can't regulate bitcoin but what they can do is they can um uh cut off its uh the gateways to being able to convert bitcoin to fiat currencies yeah and make it very difficult for somebody uh because it's not being used in transactions the big hope and dream when i in 2014 i went to a bitcoin conference bitcoin on the beltway in washington dc and um and i saw that this was a tool for freedom that it was this awesome thing and i invested in it i told all my insiders that i was going to be putting a percentage of my portfolio in it and i started accepting bitcoin it was first precious metals dealer to accept bitcoin bitcoin cash ethereum uh and uh so and we're still the crypto friendly dealer but what i do is i ride these things for their spectacular gains and when they're going into a top i convert some of those profits into precious metals because uh if there's a problem with the internet then there's no cryptocurrencies if there's a problem with power there are no cryptocurrencies and these are genuine risks that you have to plan for and so to be on both sides of the fence here have investments in both is the safest thing that i think somebody can do okay okay i love it now i want to touch on some of the content you create because i mean you mentioned the million dollar budget on these videos you've written uh a guide to investing in gold and silver the best selling gold and silver investment book of all time and i know you've got a pipeline of books that you're working on i mean you're always writing yeah so a few questions for you mike why do you do it you know what's the mission what's the what's the driving force behind creating all this content and you invest in it right like you said it's not just off the cuff there's a lot of work put into this stuff and how relevant is a guide to investing in gold and silver today versus when you published it um it's actually more relevant today than when i published it and what's uh interesting is i've watched all of my predictions come true in about uh seven and out of you know there's like 10 basis there's there's some premises of the of the book and i said some things that i thought were going to happen the most likely scenarios and about seven out of the ten have come true and the rest of them have yet to come true but i believe that they will and so it's still very relevant i would like to update it but it is a tremendous amount of work and you know i'm dyslexic writing is an is an enormous amount of work for me it's a very laborious task and i really don't enjoy doing it i have the concepts and i want to get them out there but it is a tremendous amount of work uh i've got another book that i've been working on that uh i'm hoping comes out and it's the urgent book uh called great gold and silver rush of the 21st century because i do believe that this will be the greatest rush of all time uh it's going to be global it's never been global before uh the the with the scale of what is about to happen is absolutely mind-boggling when you consider uh that you know gold went up about 25 times in the gold rush of the 70s and silver went up about 35 times in the gold rush of the 70s this time and back then about two-thirds of the world's population couldn't legally buy gold you had no markets in in china right uh in the ussr uh it was illegal to own gold you know you could be for hoarding gold in china you could be put to death uh india was just absolutely i remember back in the 70s and 80s seeing life magazine this giant magazine that was meant for your coffee table beautiful magazine uh with pictures of like um uh you know after monsoons there would be all of this starvation and and the starvation that was going on in africa and now you've got billionaires in all these countries and um when when the when the billionaires start trying to protect their wealth billionaires all over the world start trying to protect their wealth with precious metals you're going to see some fireworks it's a complete you know in the united u.s citizens couldn't participate until the first day of 1975 and for australia it wasn't until the first day of 1976. so you had the the u.s wasn't even part of the first half of that gold rush uh it's it's going to be something breathtaking uh and so that's that book and while writing that i was trying to describe the difference of uh price versus value because people are just when when you measure things in u.s dollars or just one fiat currency it fiat currencies all lie to you you cannot see what the true value of something is unless you uh measure if you sell that thing how much other how much groceries how much gasoline how much what percentage of a house can you buy with it how much of the how many shares of the dow jones industrial average could you buy with it or the s p 500 when you measure barrels of oil tons of iron bushels of wheat when you measure it against other stuff you you'll discover that throughout the centuries everything is trapped in this valuation channel bouncing up and down you measure your house in ounces of gold uh you'll you'll see this and the trick is to sell something when it's up here and identify the things that are down here and buy them and now you've escaped that thing i call a valuation channel and you're gaining true wealth and we've done i mean i did a tremendous amount of uh my researchers uh have done tremendous amounts of study on this gathering data on prices of things going back you know 400 years or more in some cases uh to uh to prove this and so that's called wealth cycles and uh that's a book that sort of when when gold when the great gold and silver rush of the 21st century frayed it split into two books and it just became too much work and i put it off because there's a really important book great gold and silver rush is is an urgent book uh wealth cycles is a very informative book but the important book is formula for prosperity that i've actually been working on since 2011. wow and uh there's um uh yeah and there's the formula i actually put out there in uh 2013 uh it was a early version of the formula so there's some mistakes in it but it's a literal formula that where you can sort of uh cal there's there's some of the equations in it where that are somewhat subjective you have to pick a value but when you have a lot of data that becomes fairly easy to do right when you're comparing it to other countries or other societies or other people so this can be this is a formula that can be applied to the world to a country to a state a city or an individual okay okay mike look it's been awesome having you um one last thing yeah we'll talk about it's about where prosperity comes from and what extinguishes it the goal for um uh hidden secrets of money has a mission of enlightening the world that maximum prosperity can only be achieved through individual freedom free markets and sound money the goal for formula prosper for prosperity is just to bring maximum prosperity for all of mankind i love it that's the reason i do it yeah okay mike look it's been great catching up i'm glad we did this it's been uh it's been a few years so it's nice to be connected get get thank you your viewers can download uh the uh guide to investing in gold and silver at my website goldsilver.com it's free appreciate that mike thank you okay thanks jay

Channel: The Jay Martin Show

Views: 82,902

Keywords: Gold, Silver, stocks, Cambridge House, Resource, Investing, gold stocks, silver stocks, copper stocks, gold price, precious metals, mining stocks, stocks to invest in 2021, commodities, commodities investing, hidden secrets of money, silver price, mike maloney, buy silver, silver bullion, precious metal, bitcoin price, investing in bitcoin, stocks to buy now, stocks to buy today, currency debasement, inflation, Mike maloney, financial system collapse

Id: yB2jTXsJKuQ

Length: 29min 1sec (1741 seconds)

Published: Sun Jan 24 2021