hi this is mike maloney and i'm joined once again by jeff clark and adam taggart and jeff is the moderator jeff take it away hi mike great to be back with you of course and adam thanks for joining us again guys always a pleasure fresh back from hawaii and can't wait to dive into this with you guys yes i'm very jealous so uh we've got we're going to cover all our usual segments today plus a great meme of the day so stick around for that so let's jump right in here so uh mike


and adam this first article we're going to cover for our news of the day is the article i wrote that came out yesterday on all of silver spikes and the reason i did this is i wanted to document just how spiky silver can be and so this shows all the returns on these short-lived spikes that silver's had since going back all the way to the 1970s and the real reason i wrote this is i wanted people to be aware of just how spiky it can be how big the gains can be but also how short-lived they can be


and really that you have to buy silver before these spikes set in because if you try and jump on the train afterward you're not only going to pay a higher price you're going to be a higher premium uh and a lot of times silver just sits there until it goes and and explodes one day so the point is you have to prepare for those explosions ahead of time like now so mike what was your reaction to reading this research well my reaction is pretty simple this is why i use the gold silver ratio for my


investments uh when the gold silver ratio tells me how much silver and how much gold to buy should i buy both should i only be buying silver or should i not be buying silver and only buy gold there's very few times that i've ever sold precious metals one time just getting rid of some odds and ends that i had in storage and they used to have uh minimums on each individual product so i was paying uh way too much in storage fees uh another time was uh uh because i moved to puerto rico and i wanted to start my um the way it's


taxed is the irs looks at it like how long did you have this investment while you're on the mainland how long here and so i sold everything i was out of everything all of my precious metals for a month luckily the price did not rise during that month it fell just a little bit and i was able to buy in and i even bought more uh ounces but i bought everything back so basically all i was doing was resetting uh my start date for my uh capital gains and then the other time uh was uh during the 2011 silver spike


i bought only gold once uh the gold silver ratio got down below like uh 40 i was not buying any silver i was buying only gold during that time and then when i get you know it went all the way down to 30 and i was still buying gold and then when the gold silver ratio got back up to uh 60 or so i sold that gold and bought silver and it would have been nice if i could see the future but i can't if i had waited until 100 but i ended up getting about 60 more silver than i paid for by using that gold silver ratio


but basically the gold silver ratio if you pay attention to it it will prevent you from being a victim of these spikes and it will give you the opportunity that these spikes offer yes very good and the gold silver ratio is falling of course when silver goes on one of these spikes because it outperforms gold as history clearly shows so adam what do you think spiky silver yeah spiky silver it is very spiky i thought the piece was brilliantly written if i may say so jeff and i was nodding along with mike um i i


think you know it just uh you know begs the the question of the importance of the gold silver ratio and using that as a guide i think the only intelligent thing that i might be able to add to what mike already said is you know i spent a lot of my time talking to financial advisors and to investors and economists and whatnot and um one of the techniques that financial advisors will recommend if you have a larger position in the metals is when silver does go on one of those spikes and looking at the gold silver ratio


when it is at an excessive high you know as you said jeff these these are spikes they go up they come down and what a tactic that people will use sometimes is to purchase put options against your position so that um if if it is indeed a spike that comes back down you're actually limiting your downside exposure right so it's like buying a bit of insurance this isn't a speculative play it's really more of a defensive play and it makes sense on larger positions if you just sort of have a


small stash it's probably not worth taking on the cost of the insurance for that you just want to just hold it and it'll it'll be another spike at some point in the future but um in addition to using the gold silver ratio as a way to know when to buy more gold or buy more sober it also can be a good indicator as to when to buy when it makes sense to buy some downside protection yeah good input that's a good point yeah so with silver destined to be just spiky again in the future and


mike's a big scenario and what's ahead well read the end of the article there and you'll you'll see what we think so well on the tweet of the day you guys this is from grant williams who i really like and his comment is hubris alert and this is a real quick clip uh from ben record of uh the european central bank president christine lagarde basically saying well investors can test us as much as they want and she's kind of implying that you know we're prepared for anything nothing can


can uh break the system we're kind of impervious it's kind of the message she's giving so mike what was your reaction to christine lagarde's statement the arrogance of these people never ceases to amaze me it just reminds me of ben bernanke thinking that he was master of the universe and that you know there will be no consequences from uh his actions uh and you know she said that they are riveted to these targets you know this is like their mission and basically investors can take a flying leap off a


cliff and the markets that means she doesn't care about anything she's got her target she's going to do it uh and it doesn't matter what uh havoc it reeks so yes i don't know it's it's just you know i i truly believe with people like this that we are nearing the end game of this monetary system because they really think that uh that this will work uh they believe that doesn't matter you know the bank of japan has proven that keynesian economy for the past 30 years


they've been proving that keynesian economics doesn't work that this stuff just causes stagnation in an economy and a wealth transfer and they prove it year after year and then uh these people go oh well it wasn't our theories that were wrong it wasn't us that were wrong it was that we didn't do enough of it so we've got to double down on this thing and then it still doesn't work and then they double down on that so how do you feel about it adam gosh i feel the same way and it's it's


um really ironic that the central banks are just infamous for not being able to hit any of their targets that they put out there except for their currency printing targets which they tend to blow through so the only ones they hit are the ones that probably do the most destruction um in this situation but i will say um yes i think you used a great word um mike there which was arrogance and i think grant mentioned hubris but i will say you know don't underestimate their resolve i think she is


absolutely speaking her truth when she says we are riveted and we are going to do whatever it takes they literally have an unlimited uh source of ammunition there and really they have all of the air cover to continue to do this right now they have markets that are addicted to the liquidity that are sloshing around the world right now and investors that just keep you know in an investing public that just keeps clamoring for more um there's the weak economy the weak job market so they've got a lot of pressure


to step in to to help that out they've obviously got the pandemic which they can almost use as sort of a blank check to do whatever they want to do to help the world combat that but lastly and very importantly there are vulnerable politicians right now right you know we had uh you know biden's brand new in office um and uh you know he's really trying to kind of you know curry the public's favor and he's out there you know selling uh he just passed a 1.9 trillion stimulus bill into law


and he's just proposed another two plus uh infrastructure stimulus bill some say that might be as much as 4 trillion by the time it's all done um angela merkel's in a similar position in the eu her party she's retiring but her party is very weak right now so they the politicians are looking to the central banks to continue the largesse so i think there's nothing stopping these central banks there's nothing standing in their way of continuing to do this destructive currency printing


i agree yeah very good well if you're liking this video please hit that like button for us down below there and subscribe to our channel so on to charter today guys before you get to that jeff there's one thing that i want to say about adam's comment uh you know he said the weak job market and uh in some sectors it is weak but what i'm finding you know i was just out at a restaurant last night and they've got the same problem at the restaurant that i've got with the little farm that i bought


we had a bunch of them when when the employees at the farm realized that we were walking the straight and narrow when it comes to the legality of paying people uh we have to deduct 10 of everything that we pay and then we file a tax return every single month with the government of puerto rico we turn that over and they realize that since this was getting reported that they were going to lose their coupons they're called their food stamps so they're on all of them are on government assistance


and so they all quit because the government is paying them not to work and it's much easier to not work they they do cash work on the side for extra cash but uh they all quit and so it's very difficult to hire people legitimately and get them to actually work for for a living because the government you're in competition now with the government the restaurant that i was at last night uh you know the food was taking a long time and he said we're trying to hire more people but we can't nobody will


work because the government is paying them not to so we're currently in competition with the government and then uh the number of of uh tourists down here and it's completely different type of tourist than before the pandemic before the pandemic it was the cruise boat crowd and now what we're seeing is it's the stimulus check crowd anybody that receives a stimulus check and can hop on these super cheap flights that they've got right now is coming down here for a vacation so it's a it's a


this is people hunting for a bar that isn't closing and getting in fights in the streets and the uh and and doing graffiti and stuff it's a completely different crowd and uh uh so this competition with the government the the weak jobs market is weak not necessarily because there aren't jobs out there but beca but partially because people are just refusing to go to work because the government is paying them not to well history is replete of government policies that basically create all sorts of unintended


consequences that sabotage the original intent and this is just no different mike you're absolutely right well now on to chart of the day this is from amelia dye if you want corporations to pay tax stop making so many loopholes for the companies with the best lobbyists this tax will fall in small and medium-sized businesses while the big corporations move elsewhere just ask australia a high corporate tax doesn't work and what she's referencing here is a tax excuse me a tweet from the tax


foundation about president biden's proposal basically going to pay for this infrastructure bill in part by raising taxes and this chart shows what would happen to the u.s tax base if biden's plan went through you can see the darker bar down halfway down there what our current tax situation is in the u.s compared to other advanced economies and the red bar at the top what it would be if this proposal went through so mike what's your reaction let's do all this infrastructure spending and raise taxes on corporations


uh you know i'd let's get adam's viewpoint first i'm gonna save mine for the end here [Laughter] well you know the the government really doesn't have too many uh too many levers that it pulls and certainly the more taxes one is um you know it's a very convenient one for we've got a democratic administration and now and uh i think it's surprised to nobody that we're seeing more taxes coming uh to pay for all this grandiosity that's being promised um i think i just want to go back to


history for a moment and say look this is continuing an arc that we've seen for you know generations um back in world war ii believe it or not the highest uh income federal income tax bracket was 94 now very few people actually paid that for two reasons one there there weren't that many people making enough money to be taxed at that bracket but also to the point of the tweet um you know those rich people were finding ways in loopholes to not have to pay that tax and the government kind of cut on to this and so what they


did is they lowered the tax rates but they expanded it to a much wider broader set of the population so instead of having few people pay a very high tax rate you had a lot more people paying a slightly lower tax rate and we've seen that progression go on and on as the government keeps trying to maximize the tax income coming into its coffers and um uh you know i think this is why i believe that uh the government is actually a big fan of moving at some point to a digital federal currency because then


not only will it have um you know other abilities but it'll know where every single dollar is and what it's being spent on and so right now there's a fair amount of the economy that's still a cash economy and is you know largely untaxed it's invisible to the government when they switch to a digital currency they will have visibility across 100 percent of the currency base and you can bet your bottom digital dollar that they'll be taxing every one of those as best they can


yes i absolutely agree but one of the things that uh people don't first of all you know you said uh one of the things that happens when you do this is you scare businesses away from the united states that's you know if every other country uh has less cost of taxes businesses have to go to where they're treated best and so you're scaring companies out of the united states when you do that second corporations don't pay tax the purchaser of the goods and services that the corporations create


pay the tax corporations just it's a cost that gets passed on to the consumer uh all corporations are trying to gain as much market share as possible and they're so they're trying to make themselves as efficient as possible squeeze down their prices so that they can gain market share from their competitors uh so you know the corporate structure the free markets work very good if you leave them alone and just let people compete uh competing for the biggest market share you've got


to build the best product and offer it at the lowest prices or create the best service at the lowest prices uh when you introduce big taxation to corporations all corporations have to have to raise their prices to cover that taxes those taxes because you know as a precious metals dealer our uh margins are razor thin if you if you raise the uh the tax on us we have to uh make sure that we stay in business all cor all businesses want to stay in business and so all these costs just get passed on to the consumer and


uh it amazes me that politicians can sell this to the public because they've got to know that when you increase the cost of business the price of goods and services has to go up otherwise the businesses go under there's just no other choice simple economics and so businesses actually don't pay tax the consumer pays the tax through the business by the increased cost of the goods or services so all this proposal is is we're going to raise the price of everything on the consumer that's what


the proposal is yeah go ahead adam yeah that that's all true mike and and i think the only thing i want to add to that is i think this is going to to the comment of the uh the tweet poster there um is it is going to continue the hollowing out of uh small and medium-sized american businesses because they cannot afford to pass those costs along the consumer as much as the big corporations can big corporations can they can move some of their profits offshore they can even incorporate offshore and whatnot


um or they can just you know last for longer if they're going to have a lost lead you know product offering and and try to outlast the competition but the small mom and pop shops the the mid-sized companies they have a lot less ability to do that and they are already under siege on so many levels right now that we are really just kind of again hollowing out our our uh our economy and just leaving it with these big global you know mega corps that are hoovering up all that's left and i do think there's a big question of


what kind of economy do we want to have going forward and i think if we look at the trajectory we're on it's headed to a place we do not want to go i think you're absolutely correct uh you know i've often said that all of the because we don't have capitalism and we don't have free markets we've got cronyism uh and and manipulated markets and uh if we had capitalism in free markets you wouldn't see this happening but when you when you're a company like apple and you can spend a hundred million


dollars a year on cpas and another 100 million dollars a year on on tax attorneys to figure out all of the loopholes you've got this tremendous advantage by having your corporation in ireland and all of your intellectual property uh you know goes into that corporation and then there's like one employee or something in ireland that gets paid so there's no costs and but you get all those tax advantages and all this law will do is scare businesses away from the united states and cause this cause all of this small


businesses to have to suffer they're going to be uh but they because they all have to raise their costs uh their their uh prices to cover the increased costs but companies like apple won't have to raise their costs exactly their competition from overseas is going to just slaughter them it's really a shame and politicians never see the unintended consequences or if they do they're just selling this lie uh to get elected to look magnanimous exactly because by the time the chickens


come home to roost hopefully someone else is in office then it's their problem exactly yeah boy good input you guys i really appreciate that and uh bottom line is there will be implications to raising taxes to that extent so well under some viewer feedback this is from dbrock yesterday my five-year-old daughter was talking about earning more dollar bucks i said they are called many things dollars bucks dollar bills cash or money and then i paused and said wait scratch that it's not money


it's currency you have me self-censoring with my five-year-old mike what do you think of that i think it's very gratifying actually that uh that you know i sort of went on this mission of it's very very important to use the correct language so that we understand each other and we fully communicate what we actually mean language is a very very important thing and uh i'm actually having an effect i i sort of went out on this mission you know uh it was back in 2006 or 2005. i was on stage with robert kiyosaki


it's the first time he had me in front of a really large crowd at the los angeles convention center and uh it was like 5 000 people and uh he brought me out to uh tell them about uh when nixon took us off of the gold standard and the consequences and when he introduced me he said that it been in 1971 the dollar ceased being money and became currency and this light bulb just came on and and i went wow and the further i delved into this the more that i you know in the uh the uh federal reserve


act when they created the federal reserve it said that federal reserve notes have to be uh backed 40 by lawful money what does that make the federal reserve note it's either currency or it's unlawful money um so i i really decided that i was going to like make this a mission and that uh that when people understand the difference between currency and money when the majority of the population understands that the great opportunity of the great gold and silver rush of the 21st century will


be over with it's that difference that i mean that it makes all the difference so i it's very gratifying this tweet yeah if i could just congratulate you there mike because um you know cultural change comes slowly um there's a famous quote by max planck he was talking about the scientific community but he said progress happens one funeral at a time meaning you have to let the guys with the old ideas die out to let the younger people the the new ideas you know step into the sunlight and bloom


and so you know with your crusade here of trying to educate people about money and the difference between money and currency um yes we can educate you know adults that are watching it right now but the real power comes by educating the next generation about this and so that it it lives on and hopefully by influencing them you know they stand up to recognize these principles from early on in life and fight to protect them so it's great to hear those guys telling his five-year-old daughter about this


yes it is the only thing i would say is it's more self-correcting as opposed to self-censoring i think we'd rather use that word to describe this um well before we get on the meme of the day remember you can download mike's book for free the link is below here if you've not read it it's all still applicable today you can do so for free so mike we have a great name of the day so tell us about this one okay this is great it's how beautiful it is to find someone who asks for nothing but your company


and then there's karl marx down there at the bottom going give me your company [Laughter] so i want to thank everybody for watching see you later guys bye-bye see you mike and adam see you next time take care jeff