hi this is mike maloney and i'm joined with jeff clark and adam taggart once again jeff what do you got for us we got our usual segments today mike plus a great meme of the day so stick around for that and adam thank you so much for joining us again this week well thanks so much jeff pleasure to be here and thank you and mike for coming on the wealthy on conference this past weekend i got such amazing feedback on your guys's presentations can't thank you enough it was a lot of fun we'll talk more about that here a


little later let's jump right into our article of the day this is the front zero hedge markets have apparently bought the fed's quote transitory narrative hook line and sinker and this is actually an article by jesse felder at the federal report these are great articles on that site by the way but he's basically documenting a lot of the reaction to the higher inflation figure today inflation this new cpi figure came out today we're almost at five percent on an annualized basis now so


a big another big jump actually um and he's basically documenting here that a lot of other parties are showing that the market's reaction is that they believe the fed and that they believe inflation the cpi uh higher rates of inflation is going to be transitory uh guys i i have a definite opinion on this this seems ridiculous to me but mike what's your reaction to the market apparently buying into this argument that inflation will in fact be transitory well we're going to get some sort of


inflation whether it's inflation disinflation or deflation there's going to be flation uh you know if if it does indeed turn out to be transitory it'll because uh we get a whipsaw effect of going into a severe uh deflation short-term deflation but it will be short-term so my answer is in the short term uh it may be it is transitory in the long term it is definitely not you can't create this quantity of currency and not have the currency land on something uh right now the uh cantalon effect is


causing the markets to go up and just a couple of asset classes and now we're seeing it make its way into things like lumber and you know things we've covered in our past videos uh so what's your take on this article adam um boy i i think i'll defer to people who are smarter than me um so at the past weekend conference you know we had lacey hunt who really lives in the world of bonds and um lacey does more or less agree under current conditions that this inflation is going to be


transitory and that's for a whole bunch of reasons that he went through in his presentation i won't rehash here but they had to deal with debt demographics velocity of currency um the loan to deposit ratio at these banks he talked a lot about how you know even with the fed issuing much more currency in the future um that there is sort of a point of diminishing returns um but he sort of you know had a lot of charts over the scope of history and said if history is is to be used as a guide


here this probably will be transitory he did then end it though and said that's under the current framework if they actually end up altering the federal reserve act and the fed becomes not just the lender of last resort but the spender of last resort which means that they would make the fed's liabilities legal tender he said that would be a game changer and we would see rapid inflation coming out of that i just talked to danielle dimartino booth about an hour before we've hopped on here and


she sees a very sort of similar she's a similar outlook although i think she is much more concerned puts a higher probability on that change in fed policy so when you've got somebody who worked for nine years at the fed saying that they're very concerned about the dollar potentially getting destroyed by uh you know the the trifecta of the current administration that we have janet yellen at the u.s treasury and potentially a successor as brainerd of brainerd being powell's successor at


the fed she thinks that sets things up that we might actually see a framework change and a very high inflationary event after that so um smart people say it could be transitory but if they change the rules and the odds of them changing the rules aren't terrible you know we might get that that very worrisome inflation you're mentioning yeah i think that uh you know transitory in the short term i think that this is probably correct we're we've uh we're experiencing some very severe inflation right now


in portions of the retail sector uh we've seen huge inflation in the asset markets uh there's a chart that i came across that's uh on wolf street and it's used vehicle value index and since uh the beginning of since since the march crash of 2020 this has just gone totally insane so used cars are going up in value at quite a rate now uh i also went to uh you know i went to several of the big mainland banks bank of america wells city and such and i took a look at what the interest rates are that they're offering


on uh on savings accounts and typically it's 0.01 to 0.05 percent that's the savings rate and we know that the the that we've had like three percent uh inflation according to the official statistics uh for the last is that like last month or three percent annualized um and that's official statistics which is the cp line uh and so uh savings is enormously negative and uh you know i don't know the outcome of this but i just don't see inflation being priced in to certain sectors


of the economy and i think that's because it probably will be transitory we'll have this huge uh pullback a whip saw will catch a lot of people off guard and then i think it's off to the races that will be the emergency that causes the change in policy that adam just uh addressed yeah good point micah your deflation argument that you've had for a long time and of course a stock market crash would would bring that back down as well but i will point out the cpi was under two percent of january


do we really believe that it's going back below two percent again i'll take that bet all day long so well thank you guys on to tweet of our day here and this is uh from documenting bitcoin if you didn't know the news el salvador announced that bitcoin has become legal tender in that country was just embedded into the blockchain and as soon as that was announced reuters came out with an article uh saying that the imf sees legal and economic issues and conflicts and concerns with the el salvador bitcoin move so


mike what's your reaction to el salvador adopting bitcoin and the imf's almost predictable reaction uh well you know with all the censorship that has happened lately you have to look at what is being censored and by whom uh the censorship it's almost certain that whoever is censoring something is on the wrong side that they can't have an open conversation well here uh this is the imf getting nervous about something and the uh this is really el salvador sort of exposing the fact that this is a voodoo monetary


system that is sort of rigged to transfer wealth to from the uh poor and middle class to the uh people that get to run the game to get to create currency so yeah the imf it's it definitely threatens all world central banks what do you what's your take adam uh well i agree and i i think this is um you know it's important milestone here on the global trend toward de-dollarization so for those that don't know el salvador had adopted the us dollar as their uh main currency um and so this


is both providing an alternative to the dollar dedolerization but it's also um you know just again you know supportive of the the trend where people are looking for alternatives to world fiat currencies right so this is a big win for people who are a fan of cryptocurrencies um what i find really interesting about the imf news is if i can make it a movie analogy here you know i think largely what we've seen uh so far to date in the crypto space is sort of like the first episode the first star wars movie


right where the rebels um you know have a lot of success catching the empire by surprise but of course the the second film in the series was the empire strikes back and i think that story has yet to be written but we're beginning to see the first acts of it and um you know the imf is definitely a tool of the empire right so it's going to be very interesting to see what happens here um if the imf is basically being used as an attack dog to go in and prove a global precedent that says hey country sure you can adopt a


cryptocurrency as legal tender but here are all the costs that we're going to impose on you if you do so yeah that's almost predictable yeah so well if you're liking this video please hit that like button down there below for us and and the notification bell as well so well on to our uh tweet of the day or excuse me our chart of the day and this is from our friend michaela on twitter gold is a long-term store of value uk house prices priced uk houses priced in gold are cheaper today


than they were 50 years ago and she gives a hat tip to solidus max here but you can see in this chart the green line is the nationwide uk house price in their currency the pound uh versus the blue line uh the house prices in gold and clearly gold has been a better store of value when buying a home than their own currency so mike what's your reaction to this uh great chart well you know the the main reaction that i've got here uh i i wrote a little while back uh something about real estate and


gold and here is it the gold that changed is it the real estate that changed an ounce of gold is an ounce of gold the house that they're tracking is the same house or is it the currency that changed right it's the currency's ability to store value that has changed here not gold's ability to store value or the home's ability to store value a house uh you know has a certain value to everybody uh throughout the decades and the century centuries and you know it bounces up and down priced


in gold as you can see here but what is really obvious you have to turn this graph upside down to see what is actually happening to the currency yeah this looks like the home is going up measured in currency but it isn't it's the currency going down measured in homes right right it takes more of them to buy the same thing adam what's your take yeah to me this is just an example where a picture is worth a thousand words i mean this is the argument for owning precious metals right here


right um now it's important to note though and this is your your main point mike where it's this real price stability that is that's what fiat currencies are robbing us of right if we were on a sound money system you know we wouldn't have this this disparity right you know we we would have housing would cost the same amount in 50 years more or less as it does today um but because we're on this fiat money fiat currency system um we don't we're not able to benefit from that


right so um uh great picture for that i just wonder what this picture would look like uh if it were done in uh bitcoin or most other cryptocurrencies i i over the past 10 years i i think that would be a pretty dramatic picture here in showing uh you know uh let me put this with the delta would be an awful lot larger than that given how the cryptocurrencies have appreciated so um it just shows that you know alternatives to fiat currency if you can find better stores of value um the the picture just becomes even


more and more stark yeah great point adam uh on the viewer feedback here uh this is from oliver stonecold crazy i like that name there and this is in response to your comments you made on tuesday's video mike about uh how much more it costs to how much more food is costing right now and that it could lead to some type of crisis and his comment is in 1906 alfred henry lewis stated quote there are only nine meals between mankind and anarchy what do you think mike uh that's absolutely true because the


average uh city has roughly three days of food available and so nine meals is three meals a day for three days and when you run out of food you got anarchy that's absolutely true i'm just gonna jump in there jeff um so um you know through the work i used to do at peak prosperity we focused on this an awful lot and it you know as we got a little bit of preview last year it takes literally 48 hours for the store shelves to be stripped bare when the trucks stop rolling in so the the veneer between civility and


anarchy is really really very very thin with our current just-in-time supply chains but even scarier stat here is in 2015 the un food and agriculture organization said that at our current pace of global soil degradation the world only had 60 harvests left and so you know mike i i hear a stat like that and there's been a lot of debate since that that statement was made as to whether 60 is the absolute number or not but it goes to show that we're you know we're given our current approach to uh to farming which really


strip miles soi strip mine soil um you know there is an expiration date uh on that approach and i think it really underscores the wisdom of of your decision to purchase a farm and to start farming sustainably um because man you know if it only takes nine meals to go from uh from civilization to chaos uh once those harvests run out the picture's not looking good right yeah uh the day the world can't grow any more food it's the day another species uh needs the uh you know evolution that we replaced


uh the dinosaurs and other dominant species if we run out of food it's sort of uh all over for mankind so yeah and that's just talking about our approach to mining this uh to how we handle managing the soils um there's also lots of of scary trends around water and the availability of water going forward so we might even have shortages of water accelerate that timeline faster than just the soil itself yeah yeah like uh draining the aquifers and things like that yes okay yeah it really argues for uh


everyone having your own garden that's one way to you know buffer against uh some event like that so well on to our meme of the day but first if you've not read mike's book the the link is down below there and you can do so for free and adam real quick tell us if someone wants to watch the videos or see them if they didn't get to attend can they still purchase all those a great question jeff uh they can if somebody wants to purchase all the videos in one fell swoop they can email


us at info wealthyon.com i will start dribbling out some of those presentations over the next couple of weeks and months on the public channel so if you can't spend the money right now and you just want to wait you'll get to see some of those but if you want to get them all now and of course the the benefit of that is being able to take action today based upon all those insights um just just send us an email there and we'll set you up sounds good it was a fun event so it's very well worth the cost so well mike uh


tell us about this meme of the day uh very simple a couple sitting in front of an irs agent and there's the sign above him that says the irs and he says like the sign says it's all theirs great video today guys thanks for joining us uh thanks mike and thanks adam we'll see you next time thank you thanks