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 now the dollar price of gold and silver doesn't mean anything so for the viewers it's how much stuff does it purchase you so I want to shift gears and let's go to the disconnect between the global economy and precious metals because this is where things just totally get insane and we every day we wake up in the twilight zone and we shake our heads so we're gone how could this be the stock market's up the dollar is up and precious metals might be down or something or sideways and the stock

market was in a bubble before the pandemic and now you know I've got a chart that I'm going to be making a video on sometime soon of the buffett indicator and the buffett indicator is the value of the stock market compared to the value of the economy GDP and it has no business being with with the stock market being larger than the economy they're in balance at about somewhere between like 45 and 60 percent or so of the when the stock market is 45 to 60 percent the size of the economy

but the overvaluation it was at like 106 before the Atlanta Fed came out and said that they expected GDP to fall by 52 percent for the second quarter and that would give us a but up buffett indicator of 200 the stock market being 287 times the size of the economy which is just totally insane so give us your impression of the twilight zone economy Dave you first okay I I'm speechless Mike and you know how much I can talk I mean it's like living in the twilight zone I mean I can't fathom it I mean I'm

too logical too much of a critical thinker knowing that the stock market's overvalued by any metric I mean the Hertz is bankrupt and people are buying the stock I mean this is absolutely insanity it's the biggest top I've ever seen in my life as far as the popular delusions and madness of crowds I mean that book I mean this is it on steroids if I can borrow that phrase because nothing makes sense in the stock market right now nothing makes sense with the GDP ratio to the stock market it's so

overvalued and there's gonna be a lot of people I think that get hurt and it's people that are on the periphery and don't even know they're involved in the stock market pension funds employee benefit plans life insurance policies there's a lot that are interacting and connecting the stock market that the average layman may not even know that they have exposure thinking that they may not but they actually do so it's the distortions and the malinvestment and the management of the interest rates

that the banks have done for so long is contorted the market to a place that I'll call beyond belief it's hard for me a fathom that we are where we are but there we are yeah and you know everybody was calling it the everything bubble and I realize it's not the everything it's the almost everything bubble if it was the everything bubble there would be no opportunity in precious metals yeah gold and silver to me is the only place to be Jeff your thoughts on the twilight zone economy well Mike you did a video I

don't know a month or so ago talking about how stocks could melt up as much as they could melt down and that's partly because of what the Fed is doing you know investors thinking things are all better now rushing in to buy things that are moving up so I guess I'm not that surprised that stocks are moving up especially in the backdrop of where the Fed is just printing money buying everything in sight stop gapping everyone and everything rates near zero we have that kind of environment you

have a mainstream investor who's not really aware of or in tune with what gold and silver can do for a portfolio I see why they're buying that but I agree with at some point a lot of these people are gonna get hurt because they think they'll just get out when it tops and hardly anyone ever does that and they'll be rushing into gold and silver but it'll be after gold and silver I've already moved up a lot or supply is on a 40 mm and unobtainium like you've pointed out so I fear for a lot of

people getting hurt that's the biggest thing but that is going to be part of the wealth transfer the wealth shift people moving out of the stock market and the bond market to a large extent when the dollar starts to suffer and in the precious metals and that's gonna be a frankly a heyday for us in my opinion yeah so lastly I think I think we should close this now and just get an impression on you know where you guys think that this might go because you know I think you both know my opinion I

think that this is the end of a debt supercycle I think the keynesian have trapped themselves and the only way out is just a continued doubt they can't like reverse course they have to continue down the road that they've chosen and until its ultimate conclusion and like ludwig von mises said you know if it's a boom brought about by credit expansion that it is either an abandonment of this of the credit expansion or a total collapse of the currency involved and I believe that the you know the more I

look at this the more I think that we we've just had an enormous collapse in GDP and it's probably going to be you know by the end of the year when you average all the quarters out it won't be this 53 percent decline but it's probably going to be over 20 and that's going to be it in that short period of time that's greater than anything going into the Great Depression and you don't just bounce right out of something like that when a whole bunch of people lose their jobs and everything else and then

we have these Keynesian central bankers committed to trying to fool everybody that the economy is doing well by lifting the stock market and to do that they steal wealth from everybody by diluting the currency supply and they buy financial assets and right now they're only allowed to buy government backed financial assets so it's it's bonds and but now they've opened up these different ways of actually you know through Blackrock and stuff they'll they're they'll be able to

buy stocks and they're able to buy corporate bonds now and they're buying junk and I just do not see a happy ending for this I see the potential personally now the dollar price of gold and silver doesn't mean anything so for the viewers it's how much stuff does it purchase you I don't know what the Dow Gold ratio is right now but it's probably up at something like between 13 and 16 or something like that and just take that and double it so this these are some huge numbers being able to buy

26 times more shares of stock but I see gold prices that range from like 10 grand an ounce to up to infinity and with a total failure of the dollar and then the gold silver ratio is right at around a high you know it's just under a hundred right now and so that means if the gold silver ratio in the final pin the final end when people go oh gold is too expensive and they start rushing towards silver there's a good possibility that that could go down to 20 or even 10 if it goes down to 10 your

performance on silver is 10 times infinity because it's a gold will have outperform if the dollar goes to zero gold outperformed the dollar by infinity now I don't think the dollar will actually go to zero the dollar would they would stop it at some point by going to a gold backed dollar or something that people trust and not a debt backed dollar which is what we have right now what do you guys see as the future for this well first of all I could corrode I think everything he said I mean it looks like we're

heading for an inflationary depression and as you pointed out Mike I mean even though the I think foods gonna be the number one factor for everyone on the on the planet but particularly Americans because that's one area and they really pay attention is how much does it cost to fill my tank and how much do I spend at the grocery store and this is not just inflationary because of the money printing that's really because of the breakdown in the food supply and what's been going on if you pay attention and I

know you two have so people are going to have less income because of job losses businesses not reopening and that type of thing and yet the food costs continue to go higher and higher they'll quake that with inflation so they'll start looking around to what our inflation hedges so I think that'll spill over into the metals market at some point the other part is global contraction we are in a lifestyle change on a global basis we are going to see lower lifestyles across the board and

it's not a function of money I mean it's a function of availability I make the joke but you could have a Krugerrand and be willing to buy you know a prime rib dinner but if there is no prime rib available in your County it doesn't matter how much gold you've got you're not going to be able to get it I know it's a corny example but I want people to think outside the box so unfortunately I don't want to be dora Doomer but the reality is a big contraction a shift in the way we do

business I think a lot of it will be more local I think you aren't going to get grapes in the middle the winner from South America no matter what and there's going to be you know the overused word resets gonna have to reset the distribution cycle we have to reset the communications interfaces between the electrical grid and what the power uses are and all kinds of things that people haven't really thought of you're going to see a lot of robotics it's very easy for a CB 19 robot to not have to

distance because it's all machines in the factory and there's only one mass person that comes in and takes a supply chain from the one robotic arm that puts it on the 18-wheeler I mean there's a lot of changes in the future and unfortunately from my study view my and Jeff we're going to be in a situation where a lot of people are going to dream about the good old days when things were let's say better for most people then they won't be out I agree I think we've seen like the

pinnacle of people's led you know in general the pinnacle of our lifestyle for it all depends on how socialist we go the more socialist we go the longer a recovery will drag out it could drag us down to where we never have a recovery and we never see days like we have seen as far as the ability for people to go out to restaurants and take vacations and cruises and things like that I think life is you know people are waiting for things to get back to normal well there's gonna be a new normal Jeff your

thoughts wears gold and silver going well what's the future of the economy right I I mean the Fed has showed us their playbook right yes rates near zero print money by print currency pre camera print money you can only mint money and it requires a lot of digging first before you can mint it right that's exactly right print currency they can't print money they sober up money print currency zero rates buying everything back stopping everything we know their playbook all of these actions are supportive for higher

gold and silver prices all it takes is one more little catalyst and these things will you know gold and silver are gonna be off to the races and probably including the mining stocks as well you know how high they go I'll just take what the market tells me what the market gives but the point of that is that it's what it can buy you like you've always said Mike and as David pointed out it's what gold and silver can buy you that's really the essence of it and that's why I have this new tagline of mine is you

know your portfolio needs a gold but your lifestyle needs physical gold and I think it's important that we all own physical gold not just because we sell it like but be we were all buying physical gold before that company started oh yeah it's because you're gonna need it and the odds of needing at least they're very high yeah we've already seen separation between G DX and G DX J those mining constant David knows this they dropped very hard in february/march but there were days

where they those funds fell harder and deeper than the underlying assets in those funds did there was separation and I could see the same thing happening with a bullion fund at some point you know maybe some institutional investor wanting to take delivery or something like that and there's separation between the price of the fund and the spot price of gold so there's a risk you don't need to have so I really do believe it's important to own physical going forward you know the answer the question is

they're going higher you know when you said the separation between the assets in a bullion fund which is supposed to be like GL d s lb you're supposed to be buying shares in physical gold and silver but when you divide them by each other day after day there's this like Pat you know you're trying to get an average of what their trend is but they go above net assets and below net assets and that means that they've got futures and options in there that it can't be gold and silver unless that when you

divide the price of gol D it should be it's management fees coming out of the price of gold so it should be this slow downward tilting line and that's it it shouldn't be this jagged up and down thumb thing sort of averages out over time and then the fact that you can short all of these funds means that they've got more ounces sold than ounces in the fund because they're borrowing ounces you know shares from you without your knowledge basically lending them to somebody that's gonna sell them short

they have to be returned one day so they know they're going to be able to replace them to all of the people that do own them but during the period of time where those are sold short somebody else about those same ounces that you huh and so I just don't like the idea of all of this hanky-panky I stay away from it but you know I think we're coming to a point in time where people really do need to protect themselves I protect myself I don't want to buy gold right I want to buy gold but

I force myself to buy silver however I've got a tube of gold eagles and I've only got 12 in it so I've got to buy like eight ounces of gold just to finish off that to me because I don't like seeing an empty a half-empty tube so I'm gonna buy some gold sometime another I've been waiting for a pullback but basically I just stick with silver because I really do think you have the potential of getting 5 to 10 times the performance of gold which could mean 5 to 10 times the performance of infinity

before in history so we know that so I want to thank both of you guys David you want to tell the audience about your newsletter in your website real quick sure just go to the Morgan report column that's the landing page you can give us a first name an email and you get the free newsletter I put out a weekly perspective every week and most the interviews I do I also send directly to you so you don't have to have for my mail probably two or three times a week to that list and Jeff people can get

your newsletter by going to gold silver calm and adding your email address right in the field at the bottom and we've got a you know it's it's absolutely free and then you get notices about any videos that Jeff or I come out with but you also do a bit of stock picking on your own right I do yeah so I write exclusively for gold silver calm all the research goes through your company Mike when it comes to the mining stocks we don't have a letter for that per se you know we turn to people like David and things like

that but I do do my own stock picking for the miners and I do reveal what I buy and what I sell on my twitter handle which is at legal advisor excellent so I want to thank both of you guys for joining me this was a really great conversation we covered a lot of ground here you know I still believe that there will be further deflation as velocity of currency slows and these Keynesian 's R that's going to just drive them nuts that they can't get inflation going and and they're going to overreact and

caused a huge inflation or potential hyperinflation but either way as the big investors start to get scared of what's happening to the economy and what's happening to the currencies around the world and it doesn't matter if the dollar is rising gold does not have to go down because it's rising against the other currencies that are being emitted into oblivion and so they're all sinking against the dollar which they have been doing for a hundred years now that's just where I

think things are going in the future I want to thank everybody for listening David Jeff thank you so much for being here it was fun it was great thank you we'll see you next time