hi this is mike maloney with jeff clark once again jeff how are you doing i'm doing great mike good to see you today we have an interesting theme with our video today it's a purchasing power theme or lack thereof so we've got all our usual things including our meme of the day which will stick in with our theme so here we go so our first thing today mike is our article of the day and dan our producer liked the article i wrote yesterday for our website called the fiat free for all it's the


currency creation versus gold and silver production and the reason i wrote this mic is because a lot of investors analysts focused on the fed's announcement of interest rates the potential change in interest rates but there wasn't really much about the fact that they're going to continue their qe program which is 120 billion dollars per month in currency creation they're going to continue so i wanted to compare that to gold and silver production and that's what this chart shows there's 120 billion dollars


of currency creation per month and then you see the gold production that is the value of monthly global gold production which is uh and then there's silver there and gold production uh the currency creation i'm sorry is about eight and a half times greater than gold production and currency creation is about 75 times higher than silver production so it it's quite insane when you think about how much currency they continue to create every month so there's a lot in this article it's worth


reading but mike what's your reaction to uh all this information about the contrast here well i think it's a great article and uh that the information in it i mean if you go further down you're talking about the loss in purchasing power of the one of the most amazing things is you know you've got currency creation 10 seconds gold and silver production 10 years yeah now so that's much greater than the factor of 75 times that's that's huge i don't know what the difference is


between 10 seconds and 10 years but that is enormous and it shows you how you know using precious metals they can't inflate the currency supply but the loss of purchasing power one dollar in the year 2000 so just since the beginning of this century now only buys you 63 cents worth of stuff that is tragic and then you know you've got the uh and that's based on the cpu cpi uh mic and not uh yeah which i call the cp line because it's even uh yeah it's even worse than that uh so it's probably around the dollar


has probably lost 50 of its purchasing power in the real world um uh you know a little bit over the cpi cp lie um and when you get down to the purchasing power adjusted for inflation of gold and silver from the beginning of the century what you've got here is the first trading day obviously uh friday was the first but the first is new year's and so the markets are closed so this is uh january 4th of 2000 very first trading day of this century and you've got the price of gold at 280 150


and adjusting for inflation uh it's it's up uh hugely and then you look at silver and silver's purchasing power it's gone from five uh dollars and 30 cents to 1638 so it's up it's the purchasing power has grown 209 over the uh original value however silver fell uh until november of 2001 was the low and if you take that low it's about a 350 percent gain in absolute purchasing power so you know so we've gone from uh four dollars and uh three cents i believe was the low


all the way up to where we are today and uh that's some huge gains uh in fact when you uh look at the the nominal gains you're talking about 550 gold and silver both being up about 550 percent from their lows to today and the stock market being up about 275 from the it's uh 2000 you know in in 2001. so um the it just shows you that gold and silver when they're in their bull markets not only protect your purchasing power but you can make these enormous gains in purchasing power during that bull market


period it's not just a safe haven asset but it's also the asset with the greatest potential gains in purchasing power when they're in their bull markets and that's where we are today the other thing that i have to say about this article you know you talked about the uh the the creation of currency every single month uh 120 billion dollars in bonds every single month well they're counterfeiting currency into existence i like where you said that they just uh what how did you say it that they


yeah most currency today is basically imagined by a central bank that's awesome great great writing and they do imagine this stuff into existence but to get it into circulation they buy something real with it this is the immoral thing and i just uh made a chart i'll include this uh uh for the video but while we were while you were introducing this i i created this chart on the federal reserve and we've gone uh from about uh the fed assets the fed's balance sheet being about six percent


of gdp before the year to the you know before the crisis of 2008 so the fed owned the attorney by creating currency from nothing counterfeiting and buying stuff with that counterfeit currency they bought about six percent of all of the uh goods and services created in a year in the united states that equivalent value today that is up at 34 more than a third of gdp all the goods and services bought and sold in an entire year and an entity that where we've legalized theft i mean we should you know people


don't have pitchforks anymore and we don't know how to make torches but we should be storming the castle with our pitchforks and torches at this point uh more than a third of the annual economy that value which is incomprehensible to the average person i mean this is these are numbers that are just completely incomprehensible and they have actually stolen that through the counterfeiting of currency they've stolen a third of gdp uh you know that's that's on an annual basis the actual


value of the united states is equivalent to a whole lot more than one year's worth of transactions but still these are immense numbers and this the morality of this this this is so uh um immoral uh creepy i mean this should be against the law yeah it is for any private person you would go to jail if you did it i would go to jail if i did it but the federal reserve it's okay we made it legal for them so mike consider that this doesn't even include as a good friend of mine in canada point out this doesn't even


include fractional reserve lending this isn't the entire money supply excuse oh man i had such a good record of saying currency this isn't currency darn i've gone a half a year without getting gone so anyway this isn't even the entire currency supply so right uh it's even worse than than portrayed and like i say in the article it's not even an apples to apples comparison because it's right fed printing versus another thing is that these are emergency maneuvers this is what you do


during a crisis is you create 120 billion dollars in bonds a month and get the uh the american citizens 120 billion right did i say a million i'm not sure uh but you get the american public another 120 dollars 20 20 billion dollars deeper in debt every single month we're getting that much deeper in debt 100 years yeah and mike when i was writing this article i got paid from gold silver while i was writing this article and i realized that that paycheck is never going to buy me anything more than it will right now


right those dollars that i got paid are only going to lose purchasing power it's a slow leak in the boat and yet gold and silver as history shows uh not only maintain but can increase your purchasing power so i bought more uh gold myself so yeah yeah okay so what's next on to our tweet of the day and this is from willy woo and he says congrats to the fed new high score and he says basically if you're not getting 22 percent return on your investments in 2021 you're actually going backwards the


black line in his chart is the m2 monetary inflation the red is cpi inflation so you're not even keeping up with monetary dilution if you don't earn at least 22 percent on your investments this year so pretty good point what do you think mike well there's two things i want to point out in this chart is the amazing correlation in in the past and so if that holds true we're in for some huge inflation in the future and then the other thing to point out to everybody is if you look at the red line


before we had um before we were before we had the federal reserve there would be inflation and deflation inflation and deflation there's a zero line there and the red line would go above it and then below it and above it and below it so basically the price of things remained stable throughout that cent that century before the fed and this chart goes all the way back to the end of the civil war this is amazing and uh then after the fed it always stays on the side of positive inflation stealing purchasing power the natural


state of things is slow mild deflation we always get more efficient at what we do so the number of human hours invested in building a house in in making a car it doesn't matter what it is keeps on going down and down and down and down as well as uh getting the materials you know we use two guys guys used to take axes and one of those saws they each get on the end of uh and chop down a tree and it would take uh so many human hours to take a tree get it onto a truck get it to a sawmill turn it into lumber and then


uh all those guys uh hammering together a house and working with hand saws and everything uh and it would the the amount of time was probably much greater than a factor of 10 to build a house it's probably come down by more than 90 percent as far as labor and effort involved today a big machine take grabs a tree snips it off strips off all of the branches and puts it on a truck in seconds and uh same thing at the sawmill and then you go to a big huge housing complex that's being built and they they're all using nail guns


instead of one home going up in six six months it's 120 homes that go up in six months and so um the efficiencies slow mild deflation is the natural order of things our currency should always buy us more tomorrow than it does today and this chart shows that ever since the fed uh was created that there there the difference between whatever the natural inflation is and the natural deflation should be i mean and what the actual inflation is is the amount of theft that's the amount of purchasing power stolen from us


yes good point well if you're liking this video please hit the like button down there below for us and subscribe to the channel so you always get our videos so on to our uh chart of the day mike and this is from uh max fisher the rsi and these are technical indicators of the gold price he's talking about the relative strength index and the bollinger band combo has marked short-term lows in the gold market and you can see that he circled there in green down below the rsi and the bollinger bands and they


tend to correspond with lows in the gold price and you can see uh this chart just from the other day uh is marking a potential low in gold now so yeah band uh one is even that's that's like a record low uh in yes uh so yes um you know i was looking at the gold price yesterday i was going to make an insider's video saying this recovery from the uh because i made a significant purchase uh friday before last and uh but it it looked yesterday like it was going to roll over and today we uh did roll over and take out the


bottom so there there might be a little bit of downside left here but not much and this the bollinger bands and rsi are sort of showing that and uh so the opportunity to buy down at these prices uh there may be a little bit more opportunity within the next week we may even break 1700 in the next few weeks i don't know but um we may not it might just go up from here because it's in such oversold conditions uh but yeah this is um it the this these are the time buying the dips is important that's what i did


friday before last i caught the low of the day and that turned out to be the low in the past week and a half so uh but now we're we just plumbed some new lows today uh and uh so we'll see where this goes but to me this is the time to accumulate we were up over 1900 so uh you know now we're able to save 150 bucks an ounce uh if it could go down even further we might be able to save 200 bucks an ounce over what it was just a couple of mo you know a month ago or so yes very good well on to some viewer


feedback and mike this is in uh reaction to our video from last week when we talked about the imf creating sdrs special drawing rights and potentially replacing the us dollar as the reserve currency of the world so too much debt here says the imf is a reboot of animal farm quote all rights are special but some have special drawing rights yeah you know in animal farm it's all animals are equal but some are more equal than others and so yeah this is the and and you know that's right and i urge people to uh try and find out


what an sdr is special drawing rights what that is and you'll find it's just another pyramid scheme that's stacked on top of the uh fiat currency you know the national fiat currency pyramid schemes which are stacked on top of national debts so it's it's a derivative of a derivative of debt it's crazy just totally insane yes yes it is well on to our meme of the day and this keeps with our theme of purchasing power today so mike uh tell us about this i mean this is a good one uh


well you know this is that uh kind of makes you think doesn't it it says the same 15 cents in the 1950s can buy you the same burger today and i remember being able to buy a mcdonald's hamburger for 15 cents and french fries for a nickel uh and so this is a silver dime and a nickel that silver dime today is as of today is worth a dollar 86 so almost two bucks and that nickel is worth six cents worth of nickel so look for the nickel to be replaced with uh zinc or something like that uh sometime


soon because it's exceeded its face value and if it exceeds it significantly uh they will uh you know debauch it by using some sort of base metal but uh what's interesting is we just took a look at the prices of mcdonald's hamburgers and it's actually 99 cents so with that uh dime you basically get two you know this diamond nickel now add up to about two bucks so so now you get two burgers if you're uh using that that money that we used to use the real money now a couple of other


interesting facts here is that the new dime which is basically a it's like a bologna sandwich except it's a copper sandwich and there is no silver in it whatsoever that dime is worth less than a penny a penny is worth like 2.6 cents today a a a zinc penny is worth point six cents and a dime is worth two point two cents so and yet and so are there worth more yogi berra used to say a nickel just ain't worth a dime anymore here a dime ain't worth a penny and that's true i want to thank everybody for watching


we'll see you next time thanks jeff thanks mike see you next time


>