hi this is mike maloney with jeff clark once again jeff how are you doing i'm doing great mike great to be back with you of course this week and we've got a another full schedule here article of the day tweet of the day chart of the day some viewer feedback that's interesting and a great meme so stick around for that so we're gonna jump right in and here's our article today and this is uh an article that says pension funds foresee price increase in precious metals and it's based on a study


and this kind of caught my interest that wow this is interesting uh that pension funds uh some of which are our government but most of which are private are jumping into gold and saying they they see an increase in the gold price and this is a survey that was done over in europe and 85 percent expect the price of gold to increase over the next 12 months but then mike i read the next line as jewelry consumption rebounds fully in line with a global economic recovery that's why they think the gold price is


going to go up excuse me news flash gold price does not go up based on jewelry demand the number one reason for the increase or decrease in the price of gold is investment demand this is very clear and i'll point out last year gold was up almost 25 and jewelry demand fell through the floor so it obviously right was that's one of that was going to be my comment is that uh rising prices curtail jewelry demand they don't uh propel it they curtail it uh so jewelry demand falls as the price


of gold goes up but it is interesting because you have been writing about pension funds and the day that that uh those units of currencies start trying to land on the same tiny little pile of gold that uh everybody is is trying to get a piece of uh this is huge and as these pension funds investigate the precious metals market more they're going to uh come into it more and more and more and this is a flood of dollars that gold and especially the silver markets can't take without uh prices going up


enormously yes very much so i'll have to update that research and show it because there have been some institutions coming into the goal market but boy there's a lot more is still on the sidelines and that's gonna uh increase demand dramatically and thus prices so well on to our tweet of the day mike and i i like this one this is from brian nichols and it shows how much lumber you could buy last year versus how much lumber you could buy this year and you see on the left there in the fall of 2020 what a thousand


dollars would buy you in lumber and then the pile on the right in may of 2021 what a thousand dollars in lumber would buy you you can see it's dramatically less which you can buy now just showing how much the lumber price has gone up what's your reaction to that picture mike uh well actually you know i'm trying to the the farm that i bought in puerto rico there's hurricane damage and i have to do repairs and i've got to build some new structures and so i'm in native lumber so this is


actually hitting this this is something personal for me um but what i notice here you know fall of 2020 versus may so this is less than a year isn't even a full year and the amount of uh lumber the the uh amount that the price went up i mean look at the difference in what you get for a thousand bucks um i'm seeing this you know in puerto rico a lot of the houses are made from cement but when you make a cement house you first build a wooden house and you pour cement into it and then you take the wood away


and um you can now rent all of the plywood to build the forms out of instead of buying it and we have chosen to lease the forms to be able to repair some of these structures uh because uh it's gone from i mean the difference i think is six or eight bucks a sheet for leasing it versus uh 80. so it's about 10 times more to actually buy it and uh so yeah this is hitting me personally but this is what people have to get ready for because this trickles down slowly you know one of the contractors


uh that i'm using to uh rebuild the the gate house i call it that it's a place where some of the workers are going to be living and so on um uh that uh contractor would not give a bid on the house that included the materials he would he said i'll bid on my labor but i'm too afraid of uh losing on this deal and going bankrupt trying to build this house if i give a bid on materials also you buy the materials i'll supply the labor and so that is what this raging inflation has done to us


but it takes a while to show up it has to work its way through the supply chain so we are going to see uh pretty soon uh retail prices everywhere going out of control but remember inflation is transitory yeah famous last words we'll be saying that in a few months i think right right and so that sort of leads us into our next uh uh piece here right that the prices yeah we're going to continue with the inflation theme but uh first if you're liking this video please hit the like button down there below for us


and the notification bell as well to subscribe to the channel and yes this is our tweet of the day mike and this shows or excuse me our chart of the day this is from professor michael tantrum if i'm saying it right michael uh mean a disruption mena is an acronym stands for middle east north africa a geographical area uh that's sometimes labeled that way mean and disruption 2021 food prices surge at the same level as the onset of the arab spring the arab spring started back in 2010 major disruptions over there some of


which was violent and of course food prices surged in response to that and yet this chart shows that food prices are surging now as well almost matching what happened back then so mike inflation you know consumer price inflation is not just a north american phenomenon uh this appears to be clearly a global phenomenon yes and you know um in one of the episodes of hidden secrets of money i interview max kaiser and he said that when food prices reach a certain percentage i think it was like 60 percent


of uh somebody's income that's where the uh risk reward ratio between revolution and not having revolution uh tips toward the balance of having a revolution maybe it was 80 of uh a family's income being spent to food i think it was 60 something like that but uh anyway you can see that's what happened with the arab spring i had been in egypt just like a month before that arab spring happened i didn't realize that that was what was going on it seemed like everybody was trying to scam us or and


get as much cash as they could out of us i didn't realize that they were basically the government was causing the people to starve that was what was going on and so they were fighting for their lives basically and at a certain point uh the risk-reward ratio does tip toward revolution so as inflation rages we could see more civil unrest unrest around the globe yeah that's a good point inflation doesn't happen in a vacuum and there are consequences to it so good point uh well mike on to some


viewer feedback and uh before i read this uh you did a video last week on gold and silver versus platinum and palladium you were making that distinction and in response to that video uh this is pro paycheck said i got a platinum coin with a queen's portrait on it that disagrees with you mike what do you think of that i think i know what you're going to say paycheck first of all pro paycheck a paycheck is an iou with somebody's signature on it right and usually those ious are good if a


company's going out of business no i've seen companies write paychecks that end up they don't have the cash in the bank when people go to cash them but got a platinum coin with the queen's portrait on it so i guess that makes it money right the queen's portrait that disagrees with you or is it the fact that they'll put a uh a this is the queen's portrait so it's probably got um uh if it's if he's from canada uh it would have canadian dollar face value on the back if he's from uh


england uh or or it could be the aussie dollar the queen's portrait is used all over uh but um uh that does not necessarily make it money what makes it money is uh two things you know it's gotta be all of these things portable durable divisible fungible uh it's got to be a um fungible means all of the units are interchangeable it's got to be a medium of exchange so it's got to be used as a currency also and uh it has if that that's what it what currency is money is all of those things plus


a store of value and you know i was just on the federal reserve's website uh and they've got the purchasing power of the dollar going all the way back to 1913 and here they're using items like the cpi but they show a greater than 96 percent loss of purchasing power so you're talking about only four percent of the original purchasing power being left by the way i want to complement the federal reserve on their management of the purchasing power of the u.s dollar only losing 94 for us


uh but um if it doesn't satisfy so uh show me when uh platinum has been used as a medium of exchange where on earth has that happened throughout history and if it probably does have a face value on the back if that is the case that makes it money in his opinion then i suggest uh paying your taxes with it i bet the face value is like 50 bucks or a hundred bucks or something like that and in the united states you can use gold eagles to pay your taxes but you're only going to get 50 per ounce it would be crazy to do so but


that's one of the things that makes it legal tender in the united states but is it legal tender or is it money that's the difference money must be a store of value and uh platinum you know it bounces up and down but platinum is mostly a catalyst that's what it's used for it's industrial demand there's it's never been used as money and so i would i would still maintain that uh platinum palladium rhodium these are not money they've never been money and they never will be money


right platinum palladium do not do well in recessions because they are primarily industrial metals they don't do well in stock market crashes the but the bottom line is mike is right there's a difference between money and currency this is currency it's not money because it lacks that store of value so well mike uh uh on to our uh meme of the day but before we get to that if you've not read mike's book or watch hidden secrets of money he talks about money versus currency in episode one of hidden secrets of money


it's also in his book which you can get for free uh we'll uh have the link here down below so well mike give us this great meme of the day okay this is a great one with uh the president having uh dinner and there's a little kid there and says futures generations on his t-shirt so this is passing on our reckless deficit spending to future generations order whatever you like he's buying and that's what we've been doing i want to thank everybody for watching we'll see you next time thanks jeff


thanks mike see you next time