hi this is mike maloney and i've got chris martinson and jeff clark on the line with me again for another weekly discussion about what's been going on lately so jeff you're the mc here why don't you take it away thanks mike it's great to be back with you and chris uh thanks again for joining us again this week thanks it's great to be back with both of you guys one of my favorite times of the week wow that's great well as usual there's a lot to talk about and i had to widow my list down again uh


this week i want to start with uh the big news that janet yellen is likely going to be the uh named as treasury secretary the treasury secretary for those who don't know janet yellen used to be fed chair if she becomes treasury secretary this is the person that according to wikipedia is the principal advisor to the president on economic issues and plays a very important role in forming economic and government strategies so you combine her history with qe all the qe that she did with the stimulus pumping pal that we


have in office and i think we have a situation where the amount of stimulus that we see is going to get even more crazy uh is that what you expect to see mike and really where is all this headed i mean this is kind of getting crazy isn't it well you know i have to start my reply with um somebody that i i guess this was on twitter uh but uh praden sp uh said hey mike the only reason president-elect biden chose janet yellen is because you don't have to change the animation for hidden secrets of money episode


seven that's right now episode seven uh predicted everything that is going on with uh the economic slowdown which causes the velocity of currency to form and the fed's only response and i said it in episode 7 is is to create currency and try and get it into the hands of the public and uh and we're at the beginning stages of this but what's in there i was reading a passage from my book that was written in 2007 i think that what is happening is was sort of inevitable uh it's it is interesting that yellen is


back and she's the one sending out the money bomb dropping helicopters uh to stimulate the economy and uh and you know now she's back as uh going to be back most likely as treasury secretary working in conjunction with some of the greatest inflators on the planet so um if if this if this if we weren't actually watching a horror film because that is what this is it would be a comedy what do you think chris i think we're caught in the in saw two uh yeah tragedy horror film comedy thing going on so listen janet


yellen she comes off as this kindly grandmother but but i think we all saw a different side of her it was march 2015 there was a press conference there all the journalists there they're trained not to ask difficult questions but one stood out pedro de costa of wall street journal at the time stood up and asked her about the fact that the fed its own internal council had been asked by the fomc an internal body in the fed to drop an investigation into the fed having leaked details of its money printing to


a private equity firm i think it was medley advisors or somebody like that right and so pedro says hey what about that and all of a sudden janet yellen the kindly grandmother act it falls away just like in lord of the rings when the elf queen galadriel thinks she's gonna get the ring you know like ah this monster came out and you saw the other side of her pedro de casa that was his last day ever uh reporting on the fed he was summarily kicked out public execution as it were in journalists speak


and everybody else got the message you don't you know confront her with tricky questions it's particularly ones that speak to possible um illegal activities or at least ones that look really bad so let's review janet yellen right now is saying oh we have to restore faith in in the treasury depart i wasn't aware that the treasury had lost faith in the people but let's pretend that's true and she's saying we need to improve equality in america this is the woman most responsible for


the wealth inequality that exists in america and for her to pretend otherwise is just wrong it's just yes it's it beggars belief i can't even find the right words it's it's like being lectured on the importance of human life by ted bundy it's just it just doesn't work out [Laughter] it is saw too and it's funny that you talked about that uh grandmother motherly persona that she's got um the i used to uh when when she first became fed chair i would sort of joke


about that say oh are you inflate afraid of inflation here have a cookie because basically that's her but um yeah the the uh things in the article articles that i just read uh she said it in her speech that i pledge as secretary as treasury secretary to work every day toward building uh towards rebuilding their dream she's talking about the uh for all americans um to the american people we will be an institution that wakes up every morning thinking about you your jobs your paychecks your struggles


your hopes your dignity and your limitless potential so that's uh from her speech and uh the thing is that uh you know all of this stimulus wealth doesn't come from nowhere people have to create stuff in order to have elon musk said that you know in order to have stuff you have to make stuff that was when he uh went back to uh opened up the tesla fremont factory in violation of the uh county's orders when you create excess currency you're just cutting the currency supply up into more


units you're you're diluting it and transferring wealth from one sector to another and this is a managed you know government top-down uh centrally planned managed redistribution which history proves never works because they can't know every detail about uh who should get what i'm doing pretty well during this crisis financially i got a stimulus check i couldn't believe it that they would be sending me a stimulus check but they did so um uh you know this whole sought to yes this whole thing is crazy ted bundy


great analogies yeah i got a stimulus check too and that's something i certainly did not need and let's not forget that janet yellen is the one that who actually said right after she left her position as fed chair that the level of u.s debt in america is something that should quote keep people awake at night and yet what's she going to do she's going to add to that so uh let's jump through how much has the debt increased though since then i mean uh you know with the uh all the deficit


spending the stimulus she wasn't part of the fed with with all that that's under jerome powell and the uh current congress that voted for all of this deficit spending in the stimulus packages and the level of debt compared to gdp that's our ability to pay it back is the gdp that's what's important debt to gdp not the level of debt numerical level but the percentage of the economy and uh i think we're sunk i mean i've got uh some charts that i can show that if you take


the amount that we're borrowing compared to how much the economy to where the economy is five years later i had my researchers gather all of this information and and create these charts and we're going negative now it doesn't matter how much we borrow the economy is with the the debt to gdp will be higher five years from now not lower borrowing more you borrow a dollar now and you only get like 60 cents worth of growth it's it's uh really it's this is on a a disaster collision course with with


the death of the economy it's really i mean this is just numbers and you crunch them and it doesn't add up the future uh does not look bright with the uh unbright things that they're doing they're not making very bright decisions go ahead jeff i'm sorry yeah well yeah that's for sure that's the understatement of the year right um let me switch topics with you real quick and i just want to get a quick comment from you guys and chris i'll start with you um this article on covet passports


this article says that global airline lobby iata is joining a push to introduce so-called coveted passports to speed up the revival of international travel and the travel pass will display test results your test results along with proof of inoculation chris i go to vancouver every year i go to grand cayman every year i do some international travel but i'm not someone who's going to get this vaccine especially in the beginning stages here so chris am i going to be locked out of international


travel sure sounds like it jeff uh and i will be too because i got to be honest i i i having a good vaccine that we can trust would be a wonderful thing but those take many many years to develop it and part of the reason is it just takes time here's one of the safety tests that needs to be performed how are these people doing four years later you just need time for that one right and and there's a lot we don't know about this remember this is a brand new vaccine mrna it's never been tried before


we're going to do a public experiment on it pardon me but i'm going to be more cautious than that personally i'm going to wait and watch and i'm not alone a lot of the people i know who are medically trained are taking that same approach because we know what's involved in that and and this isn't to you know rain on on people's hope and say you know we've been waiting so much on a vaccine but yeah i'm not i'm not going to be first in line for this thing guaranteed


i'm going to sit back and wait and watch and i just i don't i don't like having to frame it that way but they cut a lot of corners on this and the biggest one is just the time necessary to understand how these things work and how they interact and by the way very quickly they like to present as if a vaccine does a thing you get a vaccine against mumps and you don't get mumps you get one against influenza you don't get influenza but one of the things that's emerged through all of covid is


that there are a bunch of people out there who seem to be very resistant to covet who got what's called the bcg vaccine which is a tuberculosis vaccine which is against the bacteria but somehow it interacts with your immune system so that it also confers some amount of protection against covet this is a very complex machine that we call our immune system that's what they're sort of experimenting with and i'm going to sit back and wait and watch very good mike do you have a comment on


this coven passport idea well i'm going to do the same and you know i have to renew my passport it has expired uh i have not left puerto rico this year and it's it i i'm hoping i don't get completely trapped down here but i feel exactly the same way uh they are you know this article that you sent us jeff on bloomberg they're talking about uh apps to track you and confirm that you have so your passport will be connected with an app and now we're we've got uh you know there's another article i


was just reading on uh the development of all the digital money in the eurozone digital currency uh all of the sovereign currencies the countries fiat currencies all of the countries around the world these currencies are being threatened by this digital revolution and they realize that all of these alternatives that are coming up that if they don't do something fast uh they're going to lose the control that they currently have over us and this ability to steal from us by creating more currency i mean when you think about it


all these central banks get to create currency and to get it into circulation they have to buy something and so they get to buy up the world you know whatever the fed's balance sheet is so they bought seven trillion dollars worth of stuff mostly treasury bonds which is future taxation of the american people uh that's a you know it's a cash flow of future trend uh taxation so it's enslavement um but when you combine the digital currency apps with with these passports that are tracking you


and then the uh i mean this is getting to be a pretty scary the amount of control that uh these elites are gaining over all of us is uh it's just we're watching the death of freedom right now it's it's horrific so that's my comment on it i absolutely agree with chris one last thing i would like to see uh the the first batches you know huge uh trays of like 500 or a thousand vials and they're inoculating the people that are lined up to get this vaccine first but in there a random vial has to be picked and the


uh the people that run pfizer and moderna and the president the vice president they want to see all of congress lined up there i want to see everybody that's trying to control us with digital currency and digital apps they should be the first to get this vaccine and it would have to be like a random sample picked out of a thousand vials that they're giving the general population uh i want to see these people be the the first guinea pigs the people that are forcing this on us yeah if they want us to take it they can take it


first and show us that it's safe exactly right so yeah right they can be the the tasters right it used to be tasters for kings to make sure the food wasn't poison right then to be the tasters for the population exactly okay last topic the stock market mike and chris just keeps going up so the question here becomes if the fed is going to just continue to you know do qe and stimulus and all these monetary efforts that is pushing stocks up guys should we just cry uncle and buy stocks even if we're


buying gold and silver mike what do you think uh well chris and i disagree on one detail aspect of this i believe um i i think i'm staying away from stocks that's just not except for like precious metals mining stocks uh i'm going with alternative assets such as cryptos and mostly precious metals i just love stuff that is three-dimensional and has weight it exists i can hold it uh and it's been money for five thousand years it's it when there's monetary demand for silver silver is


going to explode total insanity a disconnection with reality that uh someday and he you know chris thinks that it's just going to be a melt up i think he'll comment on it in a second that they fed uh whenever the stock market takes a dip they're going to throw currency at it i believe that what we're going to see in the future is huge volatility and i believe that we are destined for an eventual melt up i do believe that precious metals will eventually outperform if you look at it right now in this


century gold is up 600 percent the stock market's up 100 s p's up 150 so gold has outperformed this asset that people still think is tinfoil hat lunatic conspiracy theorist asset uh has outperformed stocks by four times a factor of four times and i have just been buying ever since 2002 and i continue i just bought some some when gold took the big drop it hit a target that i had mapped out two months before and i bought gold last friday uh um and so i continued to accumulate i think that what you're going to see is


tremendous volatility i think there's going to be a crash that the fed can't control no matter how much they throw at it uh but it will turn around it'll have a v bounce we'll have this big melt up but think about the morality of this they're creating currency diluting the currency supply and buying assets from brokerage houses that are then flooded with cash and some of that flows into the stock market that cash so they've diluted the currency supply stealing from all of us


when they pump up the stock market what happens the whoever owns the majority of the largest percentage of amazon stock and apple and you know all of the uh top uh s p 500 companies uh the uh funds that these brokerage houses these uh indexed funds and so on um that they plow this currency into the those are allocated they're weighted uh uh toward uh whoever has the biggest market caps so it all goes into apple and facebook and google and and uh and amazon uh netflix and so the people that owned the


largest so jeff bezos is going to during this event jeff bezos is probably going to be the world's first trillionaire and it was all taken from our pockets through inflation of the currency supply it was taken from our pockets and bestowed upon the wealthiest people on the planet and this is what is causing this huge division in the population this this dissatisfaction uh that is uh basically uh causing you know could cause the end of democracy the end of free markets uh this the the federal reserve


janet yellen now uh you know going to be treasury secretary and whoever is running the federal reserve these inflators they're the ones that are causing the end of america this is the end game and they're just going to push this thing until it breaks yeah that's very possible chris they're just going to keep printing should we buy stocks join the party uh i'm increasingly thinking the answer to that is yes and i'll tell you why um it's because i think the markets are


completely rigged at this point so once you understand structurally what the markets are all about and how they operate there's most of the trading isn't by traders anymore right it's computers like 90 plus percent of every quote and every bit in in there is a computer so these algorithms are all out doing things remorselessly they're just they're little scripts right and if you know how the scripts are controlled it's not hard to make the market go up if you want so the fed you know


they moved their trading desks out of new york allegedly in response to super storm sandy scared them continuity of business they moved them to aurora illinois you know what else is in aurora illinois the cme trading floor where all the servers and computers are located so they co-located magically to the one place in the country where all of these options and leverage things and things if you wanted to control the markets that's where you would go do it in the cme floor puts on the vix uh stock futures all of that kind of


stuff right so that's my belief system at this point in time i've watched the mark gets just get rescued over and over and over again and go up so the real question i think you're asking me is this if the fed was faced between a stock market collapse which would lead to a collapse in confidence and therefore a collapse in our faith-based money system if they were faced between that or buying stocks which janet yellen is on record of saying maybe the fed should consider buying stocks someday just like


the bank of japan and the swiss bank national bank all that i believe in my heart of hearts the fed would do that um first that they would prefer to just buy stocks rather than face a collapse so so it's really a belief system so you're not asking me fundamentally do i think stocks are fairly valued no they're not they're at their hundred percent mark in overvaluation historically by every measure that i can find except two out of twenty so they're ridiculously overvalued would the fed make them even more


ridiculously overvalued to prevent a collapse absolutely no question hands down they would the problem with that which i agree with mike on 100 is that they're making it so that it's it's a rigged game and it benefits those who are already at the table so 50 of americans have no exposure to stock and have no hope of getting exposure because now they're ridiculously overpriced where would they even get the money to buy these overpriced things it's it's literally like if i was the fed chair and i took a


snapshot you know what i would do i would say everybody who has a cat that pukes on their carpet because i have one of those uh we're gonna the fed's gonna buy that puke for a billion dollars and oh by the way you can't buy cats anymore they're too expensive hey look chris and people like him got fantastically rich not our fault of course it was their fault so they're picking winners and losers they're like a reverse robin hood organization as mike is saying you know they're taking money from everybody


handing it to a few and kind of trusting that that's all going to turn out and it's not because as plutarch said the oldest and most fatal ailment of all republics is a gap between the rich and the poor it's unfair it is deeply structurally unfair what they're doing and there's no way to sugarcoat that and that unfairness leads to social tension and eventually it leads to social disruption will the fed continue to print and make stocks go up until things break yep because i don't think they know what


else to do i think they're that derelict in in intellectual and emotional honesty yes good point there's no doubting that the stock market is overvalued by almost any measure that you look at uh gold and silver and contrast even though they're doing well this year are undervalued on a historical basis and of course they will be there for us when this thing does eventually break so well these this was great mike and chris though thanks for joining me again this week and i'll talk to you both next week


before we sign off jeff can i i want to ask chris one question because uh uh do you think that the people uh at the fed and the treasury understand fundamental economics i mean they're good at this mac at this micro stuff they can see their formulas and equations and all of this and charts but understanding the fundamental basics of economics what wealth is and how they are redistributing wealth do you think they actually understand this and if they don't understand it then they're incompetent


and shouldn't be in their position if they do understand it they are complicit in the biggest crime in history and really should be in jail what what do you think great question what i think is that janet yellen has operated this many businesses and she's produced this much value in her life in terms of transforming raw materials into finished goods in any capacity she has no experience with it doesn't understand it at all it has no basis for understanding it no intuition around it because she hasn't


actually done any of that stuff and that unfortunately is almost nearly every economist out there uh you know save a very precious few that actually got their hands dirty in life at some point so so no these are people who've never run a business haven't haven't truly managed to staff for productivity um unless the productivity is how many papers can you crank out which is not the same thing so at any rate yeah no i think most of them don't understand basic economics which is how are you


adding value or how are you being a parasite on value they don't they don't get it okay so they're incompetent not complicit ignorant at best incompetent at worst yeah okay thanks great guys well thanks jeff and uh i'll see you both on the next video all right thanks jeff thanks mike bye