hi this is mike maloney with jeff clark once again how are you doing jeff i'm doing great mike it's great to be back with you this week here so i got to tell you it was 105 here in california where i live yesterday so the beard had to come off and gold and silver were heating up a little bit too mike and this first article the day we're going to talk about is on from finance yahoo finance saying gold heads for the biggest monthly gain on inflation bets and this is a great chart it shows the gains that


uh gold had for the month of may and it was the highest since last july so it was a good month and it's claiming that the reason gold rose so much was because investors were flooding into it based on inflation fears so mike you've called for a deflation before uh this shows inflation might be heating up so what's your reaction to this well i've also talked about in deflation where you have both going on at the same time there isn't much that's uh deflating though right now


everything is inflating i still believe absolutely that there will be we're going to have a whip saw effects whip saws where something you're predicting one direction and then it goes the other direction for a short period of time and then takes off whip saws are the things that trap the most people it's very unexpected and uh that but short-lived and when the almost everything bubble finally pops and it will someday when it finally pops then there's going to be a huge deflation of


asset prices the assets being you know not not gold and silver gold and silver would be uh they may do a very very short term thing like they did back in 2008 but gold and silver took off uh in uh october or nov october and then um it was the next march before uh the stock markets finally bought them so the you know the gold and silver did a pullback uh uh that was very short-lived and then took off like a rocket and that was just to cover a margin liquidation um you know covering uh people have to having to cover their


uh margin bets uh so um what i see is that when there's a crisis that's when the banks get scared and they stop lending currency which creates currency when they lend currency they create currency now what most people are not uh looking at they go oh yeah well the fed can just create all of this currency suddenly well the the currency that the fed creates base currency never really leaves the federal reserve that just sloshes around in the accounts that all of the big banks have the member banks of the federal reserve


system so they can create an infinite amount of base currency and it doesn't have any effect on retail prices on the outside if the banks are scared to lend then that base currency they're creating that the fed creates doesn't ever see the light of day the only base currency that the public actually uses is when a bank pays the bureau of engraving and printing to create paper dollars federal reserve notes that's the only base currency that the public ever gets to use and it's a very small


percentage of it uh other than that if banks get scared and stop lending and stop rolling over all of the short-term loans that are out there then the currency supply shrinks so it's real monetary deflation but regardless even if the monetary deflation doesn't happen i do think that we're going to see huge deflation in asset prices and that that could also trigger a uh deflate a short term as demand for goods and services drops because everybody is scared there will be a short-term deflation in


retail prices as well and then uh it'll be off to the races because the government will be tried the the federal reserve and the treasury will be trying to encourage the banking system to create as much currency as possible and get it out there do as many loans as possible and and they'll do a bunch of deficit spending they'll for the fed will you know they've talked about directly funding deficit spending so it's coming but i think the deflation i i think i still believe that it's inevitable


simply because i haven't seen anywhere in monetary history where a public that is all leveraged out gets rewarded by being able to just pay back cheaper dollars in the future usually when the masses have committed mass stupidity they get punished and when you're all on one side of the boat i mean i just took on some debt but i took on debt that i can also pay off like that i've got investments that way exceed the amount of debt but in my book i wrote if you take on debt at the right


time before interest rates re reverse it's a very good strategy uh before a hyperinflation uh so i you know i believe that big huge inflation is coming potentially hyperinflation but first some deflation very good mike and keeping with that inflation theme here's our tweet of the day and this is from michaela aurora if i'm saying it right michaela i love this graphic it's the cost of breakfast there is no inflation unless one wants to eat something and this shows the rise in the raw


material costs for things that make up your typical breakfast so this is the rise in the cost of these things from 2019 to last week orange juice 11 milk 11 coffee 51 pork 56 sugar 35 it's 27 wheat 31 those are the rises in all these raw material costs just for the typical breakfast and of course then we can get into other commodities and gasoline and housing mike what's your reaction to this graphic here from michaela the way the government measures inflation they don't think that people eat or


consume energy that is stripped out of core inflation and so if you eat if if you eat to stay alive there is inflation right now i'm seeing it at the grocery store and you know i've had a need for lumber lately and it is amazing just what is happening uh out there when it comes to building materials and such and so uh this is part of the in deflation and the uh this is people are going to get used to this and prepare for this and then if you have a big deflation like right now if if you borrow and spend or borrow and


invest you're going to be able to pay back with cheaper dollars in the future as long as this continues but if it suddenly reverses then you're trapped uh and the bank may end up owning your house instead of you so um uh yeah this is this is the reason everybody's betting on gold right now and i'm betting on gold and silver big time and you know it's possible that this could just continue out in the future but when i study history i don't see any example of this in the past


just going straight into inflation when a whole society is leveraged out on credit yeah exactly the great thing about gold is it doesn't really matter if it's inflation or deflation uh it's crisis and that's when gold is really going to show its true power in my opinion so well if you're likely to catch up and magnify it so yeah yes exactly exactly well if you're liking this video please hit that like button down below for us and subscribe to our channel by hitting that notification bell so


on to chart of the day and this is from goldventures uh he's a really good follow if you're on twitter by the way i really like him for silver this is one to watch silver versus the nasdaq and he's referring to the ratio of the silver price the nasdaq price the bottom of the arc marked the bear market low in 2020 and you can see uh this giant arc that's been forming in this ratio for oh geez over a decade now and you can see the bear market low that he marked uh and that green descending line shows


that silver relative to the nasdaq could be about to break out here yeah but mike i like how he ends his tweet here gold and silver are the trade of the decade 2020 to 2030. so what do you think of that you know that could be he's got this uh bowl this ark bowl um drawn there and it ends in 2030. uh but if you look at the uh the uh 2011 part that's not only that's in the bowl so i don't think things usually speed up toward the end and i just don't get the feeling that this is going to last until i don't


think they're going to be able to make this last until 2030. and if they are able to make it lens that long if we get forced into digital currencies and stuff and uh and there's no way around it if you want to live if you want to spend if you want to be able to drive or travel if you have to use a digital central bank currency then um uh they they will still be able to uh manipulate things and and they'll have increased control over your life but you know what i like about this is he's using a ratio chart


whenever you use ratio charts you're revealing the true value of something not the price because the price doesn't mean anything so uh what this is showing is that silver is incredibly undervalued right now compared to the nasdaq and uh and yeah it's about to do a breakout i believe that uh he is correct when it's the trade of the decade but i don't think we're gonna have to wait for the end of the decade i think this will happen in uh i might be wrong uh two three four years


uh i don't think we're gonna have to wait until 2030. yeah good point we don't necessarily know the timing but uh i'll take that bet any day and every day on sunday so uh silver outperforming the nasdaq so well on to some viewer feedback now this is a little different we're gonna do today this is from eric uh oberholzer i hope i'm saying it right eric mike i live in peru it would be worthwhile to hear your thoughts on the current political economic situation here the top candidate for the upcoming


runoff election in june is talking about nationalizing the industry here a la chavez chavez was the venezuela president that president that did exactly that and i'm curious especially how that will affect gold and silver silver premiums here are currently averaging twenty to thirty dollars plus over a spot from what i can see i'm not thrilled about the leading candidate but kaiko kiko i believe uh she's the other candidate uh and she's currently in second place in polling and it looks just as bad


with her only from the complete opposite side of the coin thanks so much for the effort put into these updates it's much appreciated so mike i have some thoughts on this but do you have some ideas or thoughts on the upcoming election here uh in peru well yeah you know it's amazing that uh politicians are able to sell us this crap decade after decade century after century yeah uh the more centrally planned the continent economy is the worse your life is the more people live in poverty and there there's so much evidence now


it's irrefutable yet the public has sold this lie by politicians over and over again any time people are scared it's easy to lead them down a path of self-destruction basically this is it this is absolutely horrible because it's going to destroy peru you know i spoke in peru back in i think 2010 and you know it's i was in lima and had uh wonderful hosts there there's some great people and uh they're one of the biggest silver producers there is and uh silver for 20 to 30 dollars over


spot that's double the price yeah when when you're when you're in a major silver producing country and i think uh like doug casey once uh said you know that mexico is one of the uh also one of the world's largest silver producers so they are a rich country insisting on being poor that's a good way to put it this is what that what's going to happen if they're going to go down the road of socialism yes well castillo is the leading candidate that runoff election is this


sunday june 6. so we'll know here within a week or so if he wins and he's made some very socialist uh gestures uh when it comes to the mining industry he said he's already going to raise taxes and royalties on the mining companies there and a lot of the stocks have sold off in response to him leading uh one stock iona in peru is down 50 so a lot of investors are getting scared off and if he does win even though many of these things would have to go through congress he can still put pressure on the ministry of mines and


things like that so it's it's very interesting uh an unfortunate thing that um you know they're going socialistic that way and a lot of investors are frankly scared away from it at least mining investors are so yeah if politicians would just tell the truth when they're trying to sell us this uh junk and say hey elect me and your lifespan is going to be shorter and you're going to lose weight because you're not going to be able to afford to eat [Laughter] because that is what's happened in


venezuela and basically when he says he's going to socialize or nationalized industries uh at that point that's just going down the venezuelan road yes bottom line capital goes to where it's treated best as the saying goes and that may not be peru we'll see uh hopefully it is but we'll see so well uh before we get to our meme of the day and you you definitely want to watch this uh meme that mike has for us uh we wanted to mention real quick that mike and i are both speaking at the wealthy on


conference uh this coming weekend it's gonna be a fantastic uh mike what are you talking about uh in your uh presentation this weekend at wealthy on oh i'm gonna keep that a surprise ah there we go okay well somebody's going to some of it is going to be about uh reserve currencies and uh you know hyperinflation and so on so yes uh mike's gave me a little hint of what he's going to talk about and you'll definitely want to watch it it's very insightful something you probably haven't seen or


heard elsewhere frankly so and i'll be talking on my favorite subject mining stocks and uh it'll include my favorite uh mining stock picks for both uh gold and silver so you might want to sign up today is the deadline actually for the early bird sign up so we'll put the link below to the video here so uh well mike on to our meme of the day so tell us about this one okay this is a chart of the results from the wall street silverbacks the wall street gorillas here came in and bought a bunch of silver


back in february march april and you can see the number of the wall street silverbacks on the left hand side of the chart in red versus the change in comex registered category in millions of ounces the yellow line in the green numbers on the right and uh you know many of them know who jeff christian is and this is a great picture of jeff i'm just going to leave it at that but you know they came very close to being successful in what they were doing especially on the london bullion market association the


lbma there was some hanky-panky that they were doing with their accounting over there and it was probably to cover up how close the wall street silver crowd got to uh making this system break so there's the meme yes very good uh whatever the case may be we're really happy to see the wall street silver crowd growing so keep up the good work over there so yep keep it up okay thanks mike this was a great video i'll see you next time okay thank you jeff bye