hi it's mike maloney with jeff clark once again jeff how are you doing i'm doing great mike it's great to be back with you lots of fun stuff to talk about in the markets today okay so let's just jump right in here's one article i really want to bring to your attention it was written by ron and ronan manley manly sorry and it's called the twilight zone as etf provider warns buying silver will harm hedge funds and large banks this is pretty crazy we've talked about the slv


changes in their perspectives but this is the sivr etf which also by the way stores its bullion in london right with slv but the change that they made to their prospectus which by the way was on the same day as sov changed their perspectives which i find very interesting but here's what they said as of the date of this prospectus an online campaign intended to harm hedge funds and large banks is encouraging retail investors to purchase silver and shares of silver etps uh exchange traded products which includes


etfs to intentionally increase prices this activity may result in temporarily high prices of silver i'm sorry mike this is just hysterical these guys actually put in their perspectives that that they want to protect the hedge funds and that oh my gosh the price of silver may temporarily rise i mean right and that they want to prevent the price from rising yeah amazing please right this is just amazing to me mike you know first i want to give a big shout out to ronan manley because uh he does some great research


and some uh great he writes some great articles so a great job ronan and yeah this is we were talking about this yesterday and we've been talking about it for the past couple of weeks here uh the the the changes in the funds prospectuses they're putting out warnings basically uh slv uh was putting out a warning that uh you know they may not they have to may have to suspend the or restrict the issuance of baskets in other words the the being able to issue more shares uh so they're both both of these funds


these silver funds are basically stating that but this uh one uh the aberdeen standard physical silver shares uh that trust um which is also using jp morgan as their metals custodian to say that they're basically protecting the hedge funds and the large banks and what they're afraid of is that uh the the retail investors are purchasing too much silver through etps exchange traded products to intentionally increase prices this is insane that they would even create a and it just shows you that uh the


the that wall street there's a lot of like evil uh um stuff that is intentionally deceptive they've created a deceptive product here uh and it and we'll be talking a lot more about this tomorrow when we're going to go over a bunch of charts and sort of dissect uh some of uh what is going on with uh where the silver is what the funds are that are flowing into and out of uh silver transparent silver holdings uh and uh and what may happen in the future but you know if these funds didn't exist


i'll bet the price of silver would be way over thirty dollars now probably on its way to 50. uh the the very fact that you can short these funds i don't know the short position right off the top of my head on these funds but when you when somebody shorts a stock uh they borrow a share and they sell it to somebody so you've got the original owner of the ounce of silver in slv and then you've got another owner of the same ounce of silver so that second ounce basically that second share


is just a paper ounce of silver that doesn't really exist because it's two people owning the same ounce both thinking they have an ounce that's theirs uh and uh so when they do that they're neutralizing the inflows of all of that cash that's coming in so the price doesn't necessarily have to rise because they're not selling more real physical silver if you take physical delivery off of the commodities exchanges uh where they they start actually running out of silver but that didn't happen


with this uh you know if yeah anyway this is just totally insane that uh it's like uh you want to build a car or you want to build a house and you're selling houses you're a real estate developer and if the price of houses goes up you're afraid of that oh i'm going to make too much cash on this uh transaction it's not money too much cash on this transaction we got to stop that we got to have lower prices well this shows the true colors of these funds they aren't made


for uh your benefit if you're investing in them they're made for there's other reasons that exist behind these funds ulterior motives so anyway what's your thought on it yeah it really shows their true colors and the bizarre thing with me uh why i was laughing is because they actually put this in their prospectus your perspective is like your bylaws you don't put this kind of stuff in in your perspective if you really are concerned this would be more like you know a press release or


an announcement but even there you're spot on it and ronan made this point this shows their true colors and so this is just it's bizarre to me and oh my gosh the silver price might go up because people are more interested in it well just remember these uh funds have armies of some of the best attorneys and cpas and so on in the world and they don't uh release any of these statements lightly so they've gone over this and over this and over this and basically this is a warning that if people buy too much silver


this fund could fail to track the price of silver and you might lose they are protecting themselves uh from uh lawsuits in the future with these statements that's what they're doing so they're they're just they are showing uh what the true function of these funds is and uh it's it's not what people think it is right i keep on telling people and i told people in my book the etfs are a derivative of the real thing and you're buying a share in a trust you're not buying the


gold and silver you are uh you know you're one of the creditors if there was a bankruptcy of one of these funds and so you stand in line and there's other creditors way ahead of you and then you get what's left uh so um the bylaws are there to protect the hedge funds and protect the fund itself not the the rico investor like us so and as the crisis gets you know really picks up steam these kind of problems are to come more to the service so uh you really have to steer clear of you know a paper product like this so


well mike let's jump onto the the next article here and this one is joe biden promises stimulus will bring the u.s economy roaring back so this article goes into basically what uh joe biden is saying he's basically justifying that more spending is needed to bring the us economy uh roaring back so mike what's your take is government spending really the answer to bringing bringing the economy well does the government actually create anything that they can spend do they create the dollars do they


create the wealth wealth is created by people creating products and services for one another and then transactions happening government doesn't do that government takes wealth from one sector or another they have to tax somebody or they tax all of us through inflation through creating currency and this is another politician that just doesn't understand economics and he doesn't understand he says that we've got to do all this spending what he's really saying is we have to do all of


this theft and transfer wealth from one group of people to another and that'll get the economy going and whenever the stock market goes up people think oh the economy is fine because the stock market is going up the stock market isn't the economy it should be connected with the economy but it's not if you look at all the fundamentals the valuations and everything on the stock market it's it's taken on its completely separate life so the financial economy is completely separate from the main


street economy these days and people think the main street economy must be all right if the financial economy is doing well if the financial economy is zooming ahead of the real economy what is the real economy that's all the goods and services that are being bought and sold those are being made by the companies that are in this listed in the stock market and if the stock market's blown into this huge bubble which has to pop sometime or another that you can't continue inflating something to where


its price earnings ratios and all the real measurements of value are completely out of balance with the reality of how much of those goods and services are being sold on main street if people are out of jobs they can't afford to buy the latest iphone and such and so um they're going to uh do a bunch of spending some of it will flow into inflation because when they get uh capital when they get cash into the hands of especially the poor i've i've i've watched a lot of the poor and i i


deal with them and so on and one thing that i've noticed is it doesn't seem to be how much they make that makes them poor it's how they spend that makes them poor one time i gave a very trusted loyal uh employee a parting gift we we parted at the end of the year and so the beginning of the following year i gave him the maximum uh cash allowed gift that i could give him it was about fifteen thousand dollars it took him one day to get rid of it one day it was supposed to last for like


a long time this was a minimum wage guy and so uh when they do spending and send checks out to everybody some of that is going to find its way into retail inflation but when they do things like the fed's open market operations where it's based on purchasing treasuries from uh the the uh primary dealers and such uh that goes into inflation of the stock market and so um if biden wants the economy to just come roaring ahead uh what what they'll do is they'll inflate the stock market


if they want to do something that's very term and uh and and builds you know there is no good answer anymore they've left us with a bunch of very very bad choices that's again any one of these choices if it's through creation of currency and deficit spending then it's through fraud and theft and so uh i just all i see is that when they do all of this spending it's going to be hugely good for eventually for precious metals and cryptos and you know right now the news is cryptos uh


but the the cash has to flow to somewhere and the more people that start getting scared of the uh consequences of what they're doing uh the the uh that's when you're going to see the fireworks really start in the precious metals sector yes the fireworks are ahead that's for sure so well on to tweet of the day mike this is from luke groban he says the quote u.s economy with chinese characteristics end quote we began writing about nine to ten months ago continues and he references an article we'll hear


from the wall street journal that basically the uh the the kansas city fed uh president is saying that so far real estate troubles have been contained by government aid all this today mike i just can't help it but basically the point he's trying to make is that uh the us is becoming more like china where it's more state controlled or government control so it is definitely becoming much more of a command economy and what we see throughout history is the command economies don't work if they


did venezuela would be a very wealthy country right now a major oil producer uh where uh somebody that's really smart has taken control of the economy and is running everything they should be the wealthiest country on the planet at this moment and they're not and it's because it's a top-down economy where the government is trying to figure out how to run everything they nationalized thousands and thousands and thousands of businesses and uh and it's they they there's always


unintended consequences of the government setting a price on something or determining how much of something something there should be uh including interest rates and and the currency supply um and so we are becoming much more like uh china and um uh now china's economy has been successful at doing some of this but when you go to china they don't have it it's much much more capitalistic than we are when it comes to the small business small business it's the wild wild west i was really impressed


when i went there and that's the reason it's booming uh the the chinese government has kept control of what is called the commanding heights so power and things like that but when it comes to small business it really is much more capitalist than the united states with less hurdles in regulation and so on there's a lot of paola that happens there you've got somebody that you need a license from you pay them for it and so you do get your licenses and everything happens very fast um you look at you know i've i've owned


teslas for a long time and you look at what happened with uh tesla when they went to create tesla shanghai from breaking ground it was 11 months and they actually had some cars being produced they built this gigafactory this giant i mean there was nothing there there are now major roads and railways coming into this plant to be able to bring all the stuff and then and then take out the finished cars so they bring in raw materials finished cars come off this thing they're doing more than 5 000


cars a month now or no a week i'm sorry um out of this plant and they actually had it from the first shovel of dirt to cars come this would have taken five years in the united states not less than not 11 months and so there are aspects of the chinese economy that are the wild wild west but when it comes to the manipulation of the currency supply the uh the manipulation of exchange rates uh the and um you know when uh that was um the fed governor bullard was that who made the statement about


real estate esther george yes kansas city president esther george kansas city fed president saying that the government they've done a really good job of containing the uh or that we have or they have the the government has contained the uh uh bubble well you know what that's what they were saying just before the real estate bubble popped in 2000 that there is no bubble there's no asset bubbles going on don't worry about it um this is another person that doesn't know anything about


fundamental economics uh yeah you know they know the micro they don't really know the macro that well yeah it's very interesting because i was actually in china on a mining tour about oh i don't know 10 years ago or so and uh it was my observation that china is actually more capitalistic than the us in many ways so yes well mike on the chart of the day and this is from dirt gold report uh super squeeze here we go again the crimex and he's referring to the comics of course open the doors for another paper pushed


lower and this chart shows that as soon as the u.s market opened this morning that the price of gold got pushed down uh pretty significantly so mike what do you make of that i think it's wonderful that he labeled it the crimex instead of the comex because this has been going on for years however when something is suppressed this is your opportunity and it's still suppressed they've been slowly losing control over it but this is going to accelerate one day and this time it's going to come with the big crisis


whenever the big crisis happens and as we've seen with these funds these etps and etfs when too many people rush in and want to buy this product that they're supposedly selling that you would think that they would want high prices on the whole thing can break and when it breaks you're going to see just astronomical prices and gold and silver will be unaffordium and unobtainium yes very good here's a viewer comment for you mike this is from ryan uh don't fret over lagging precious


metals prices relative to the bubbles there is a huge educational gap that has to be closed that education is in progress and will accelerate soon we are just early keep quietly stacking well that's some good advice huh mike yes uh you know this is a road i started on actually in about 2001 2002 i started uh telling people just personally about it and then 2005 i made it my profession but what's happening right now this wall street bets silver push is introducing so many new people to this story and it's going to you know


i believe that um unless they can get a whole lot more capital right now to take uh pressure to take silver off of the commodities exchanges not the etfs but to take a thousand ounce bars out of circulation basically you don't want anybody being able to short them uh you don't want any accounting handy hanky-panky to be able to go on so you want your thousand ounce bars yeah or you buy hundred ounce bars or some other form where they're melting down the thousand ounce bars and creating something out of


it either way if you buy silver and you take delivery or put it in a private storage account that's not in an exchange vault you're going to be creating the shortage and then uh the day that that comes that there is a crisis and suddenly everybody rushes for the safe havens uh that is when you're going to see and and the greater the shortage is during that crisis the higher the price is going to go and so for me i've just done this long term knowing that this is something that will happen that's my opinion that that


the eventually we are going to see uh this crisis and and gold and silver will once again people will rush toward it as a safe haven it's absolutely destined to be the only question is when and what we can see is with this edge closing that education gap you know one of the things that i uh said in in um in my the new book that you and i are writing that is nowhere near done yet because of me um is is that uh that one day everybody will know the difference between currency and money and when that day


comes the the opportunity that is the great gold and silver rush of the 21st century will be over with that will be part of history and so you want to get in before everybody gets educated about this right there's the reason for this saying there's no rush like a gold rush and of course that will apply to silver as well so it's happened before and then we're convinced it's going to happen again so well mike we'll close out this video by letting you read the meme of the day but


before we do that uh remember you can still download mike's book for free we'll put the link below here if you've not read this book and don't understand the big picture of what you know he's really talking about you can download it for free and check it out there so well mike uh uh tell us about the meme of the day okay jeff this one is pretty simple but when we talked about uh the president's plan for all of this spending i had mentioned that there is that you the government


doesn't produce anything all they can do is transfer wealth and this meme just hammers that uh home you've got amateur looters and you've got the professional looters right so thanks again jeff for the great conversation yeah this was an enjoyable video mike so i had some fun with you so uh thank you and we'll see you tomorrow okay see you later jeff