hi this is mike maloney and i'm joined once again by jeff clark jeff how are you doing i'm doing great mike it's great to be back with you again this week and see you and and work with you i've really been enjoying it it's been fun so we've got article of the day tweet of the day chart of the day uh a great uh some great viewer feedback and an awesome meme you gotta stick around for that so we're gonna jump right in so for article of the day mike our producer wanted to highlight the


article i wrote that came out yesterday on our website called the coming reversal and the silver s p 500 ratio will be shocking and i showed this chart of the silver s p 500 ratio with all the peaks and the current ratio and you can see that it's near its all-time lows despite silver rising uh more than stocks last year it didn't do much to dent this ratio at all but mike what i really wanted to show was because this chart is actually fairly popular a lot of people have seen it but what i wanted to show was well


what would that mean to prices of silver and the s p 500 ratio if any of these prior peaks were hit the one in 2011 the one in 1983 and of course the big one back in 1980 and the tables in the article you'll have to check it out show what prices we could hit for that ratio to be returned since it's a ratio one thing could move they could both move in the same direction just if one moves more but more likely with how overvalued the stock market is and how undervalued silver is relative to almost


anything else it's more likely these two things are going to go in opposite directions and those tables show just how dramatic it could be going back to that 1980 ratio would show in almost any scenario mike a complete wipeout of the stock market it's actually scary to contemplate but mike what's your reaction to uh that that research i think it's excellent because you know if people uh read this correctly they can also see you know you mentioned they can they can go the same direction and one


asset just outperforms the other uh by a huge margin and that would happen in the scenario of a melt up if we have massive inflation the s p will be going up it just won't be going up as fast as inflate as inflation consumer goods or nearly as fast as the inflation that will be happening in the gold price that will be gold and silver will be going into a bubble so this is focusing on silver uh but it's it's an excellent perspective of the types of of losses so the on these uh ratio tables that you


have here uh when people look at it and they look at the uh change in the s p there's the red area at certain silver prices and then the green area where the s p is still left with gains measured against silver not measured against dollars measured against silver there's there's gains and by the time you if if we go back to the uh the uh 1980 high then you know you're talking about measured against silver a even at 500 per ounce silver it would be a 74.2 percent loss measured against silver if you're in the


s p 500 instead it's a brilliant article and you know um i've said that triple digit silver is in i believe that triple digit silver is absolutely inevitable uh sometime or another you just can't print these quantities of currency and have other forms of money that are measured in the fiat currency you know and priced in the fiat currency stay down it's impossible so eventually and the thing is the longer that it does stay down the more energy gets uh built up so that when the energy


is released it goes much much higher than expected and what uh the the top chart in here shows you that we're down near the all-time lows and that your um you know to get back to the uh 2011 peak in silver silver would have to rise by 4.4 times the opportunity that we're at right now is almost as good against stocks somebody selling out of their stocks and going into silver their opportunity for gains is almost as big as it was back in 2000 2002 2003 i think that's amazing yes and these aren't model projections


or anything like that all these ratios have happened before in history so yeah it could be quite astounding once this thing really reverses so yes well onto our tweeted today mike um this is from bruce haddle sorry bruce i'm not pronouncing it right but mike i like this uh tweet he shows the home builder sediment index versus home buyer sediment so it's home builders versus home buyers and there's some very interesting tracking here uh and now we're sitting at the biggest uh uh discrepancy between these two things in


history what do you think yeah the biggest diversions in history and what i found interesting the second i looked at this chart is how the home buyers their sentiment leads as an indicator over the home builders the home builders are late if you look at the 1995 uh to 99 time frame there uh in the end of 1998 early 1999 the home buyers started leaving the market and the home builders their sentiment was still rising the same thing happened in the 2000 2004 time frame 2003 by the buyers started their sentiment


started going down but the builder's sentiment continued up well now we do have this uh huge divergence it's the biggest divergence in history and so what that is suggesting if it follows the historical trend uh then the home builders sentiment is going to crash this is suggesting that the uh whole housing market is in this extreme bubble and that bubble is coming to an end right which kind of coincides with your deflation argument that we could still yet see a big deflation event and this


this is hinting at that almost dramatically so this is part of the whip well if you're looking for this is about where it goes to one side inflation and then uh deflation so yes right well if you're liking this video please hit that like button for us down below that helps us out a lot as long as as well as the notification bell so well on to our chart of the day and this is from sven heinrich and he's showing a chart here from muhammad aryan of the us financial conditions index and you can see in his chart that


it's near its all-time low or at its all-time low but sven outlines some really interesting things here mike let me read it to you the market cap of the s p relative to the gdp is north of 200 percent the s p price to sales ratio is at the highest ever at 3.1 investors have the highest exposure to stocks ever the short interest is the lowest since the year 2000 were in the loosest financial conditions ever housing affordability is the worst ever and all of that and the fed keeps printing more currency even more now


than during the great financial crisis uh which means we're losing purchasing power so mike what's your reaction to this great chart well i think it's an awesome chart uh you know the it's the goldman sachs u.s financial conditions index and um it is the the fact that uh financial conditions are so loose right now policy is so loose uh it's you know interest rates are very low uh the the fed is very accommodating uh and they're creating all of this currency uh you know it says the fed keeps


printing more than during the global financial crisis of 2008. well why are they printing these massive quantities of currency when the stock markets are hitting all-time highs when real estate is hitting all-time highs it means the entire economy has had a massive coronary and it's on life support and nobody really knows that that it is you know we we are the the economy is on a hospital gurney you know there it's in the hospital and it's on life support from the fed directly every single week


they're injecting uh liquidity into the system uh pushing these things to all-time highs and the moment that they uh you know now now we're starting we've started to experience this sort of transitory inflation which i do believe is probably transferring i think we'll go into a deflation after this but if they start tightening to try and get the markets under control uh every time they've tightened in the past the markets crash and so it's like they are now trapped uh and you know there's a i looked up


there's a much longer version of this the one in this tweet goes back to 2012 but this index goes all the way back to 1990 the goldman sachs financial conditions index and it is absolutely the loosest on record and the only time that it was anywhere near this was back in the late 90s when they were pushing the nasdaq into a bubble uh you know and that ended in a serious crash but now it's everything it's not just tech stocks and dot coms it's everything except for gold and silver


which brings me to another graph that i just created uh the fed has the chicago fed has a national financial conditions index and what you see here is like there's um an average that is pre-1990 and post 1990 and it's like ever since 1991 the fed has been in the bubble business their business is creating bubbles it's had ultra loose monetary policy according to the chicago fed since 1991 so its business is creating bubbles if you look before 1991 that zero line where things are sort of in balance would actually be


much higher 0.5 point you know plus 0.5.8 almost up to 0.1 there to be sort of in the center the average the center of the the uh the range of that graph if you if you go back before 1983 and i'll bet if you went all the way back to the beginning of the federal reserve you would see that that average is much higher and that ever since 1991 they've kept it in this create a bubble position yes that's great input mike thank you for sharing all that it's kind of like that silver s p ratio look out for the


reversal you know because uh that that's not gonna last forever so it's gonna be quite astounding when it happens so well on to some viewer feedback uh mike this is from jane doe uh mike you and jeff changed my life i backed up the truck at a gold silver ratio of 110 so they're probably referring back to last march of 2020 and it has changed my life and jane i will say you weren't the only one there were many people doing that i myself uh did a lot of buying of silver back then as well but


mike uh what's your comment to uh jane here from this uh nice uh feedback two comments uh jane you changed your own life uh you you uh searched around for some financial education you accumulated some knowledge and you took action that was the most important part you took action on something you believed something that was you know you're referencing the gold silver ratio which means you're referencing hard data you're referencing uh information this was historic it was time to take action


my other comment is that i'm really envious because i didn't have cash at that point in time fully in silver and i didn't uh come into any uh quantity of cash until after the gold silver horatio was back below 100 so i am extremely envious that you were able to take advantage of this yes congratulations jane good for you and anybody who bought back then and like mike always says education is key and that's what she used to make these decisions so well under our meme of the day and this


is a good one mike so share this with us well first i want to preface this with there is now a whole generation of people due to cryptocurrencies uh this whole generation really understands what fiat currency is and fiat currency is dangerous so here's our meme from the fiat car company why do these cryptocurrency people hate us so much leave us alone and the company's name is thank you very much jeff we'll see you all next time bye jeff thanks mike see you next time