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 [music] I'm Charlotte Mloud with investingnews.com and here today with me is Andy Shakman, president at Miles Franklin. Thank you so much for being here in person this time. >> Charlotte, this is becoming a habit that I enjoy very much. It's nice to see you again. >> Yes, always so good to see you in person here in Vancouver. We're at the Vancouver Resource Investment Conference and we're catching up after our last conversation. It was less than a month ago, but we've got lots to cover today

for sure. And >> I've got all my questions lined up, but you were telling me just before we turned the camera on about what it's been like for you being at this event. You're very popular here. You're having lots of interesting conversations because of what's going on with silver. So, tell me a little bit about that. >> Yeah, I mean, look, silver was 30 bucks in May, just over, now it's $106 and climbing. It's changing people's lives. It's very surreal. And gold, too. Gold's

up 60 bucks since the open here at Sunday night. Um, gold and silver are being repriced. You can only manipulate a market. And it's it's not debatable any longer. It isn't. That the market has been suppressed by Western central banks for various reasons. Gold for one reason, silver for another. I argue gold because something called Gibson's paradox, the inverse relationship between real interest rates and gold. This is how you support the illusion of strength of Western supremacy and bonds and currency and the

military-industrial complex needing wicked amounts of silver to make high-tech weapons. That's why they've suppressed it. And for years, no one ever challenged. No one stood for delivery. But many of the countries that when I was a kid were third world, such as China and India, are now the leading the charge of physical delivery. And not only that, they are coordinated, they are motivated, they are sophisticated, and they are wealthy. And they understand that this is a rush to accumulate metal. And in an environment

where paper prices dominate and rule, and no one challenges the West, it's changed very rapidly, too. He who has the commodities or she who has the commodities wins. And that's what's happening. And they do that through delivery. And it is overwhelming a system that has been rehypothecated where the same contracts are sold over and over and over again. Easy to do when no one stands for delivery and you have enough money to write checks, but not easy to do when people say, "Yeah, no

thanks. I'd like the real thing. Thanks." and stand for delivery. Case in point, TD Bank, who's very short in the overall scheme of things in in London and and on ComX, and they came out 3 weeks ago and sent a letter to all their investors saying, "We believe silver's devilish blowoff top." Always framed in a negative connotation, has reached its peak, and is heading towards $40. Told everyone to short. We are going largely short. They say, "We believe silver's heading to $40." They

got stopped out last Friday at $92 at a huge loss to them. And these things raising margins, rhetoric, negative rhetoric, telling everyone we're going short, um lease rates expanding, none of this stuff, which always would have crippled the market as it did in 2011. It's not working now. And prices are just running. And people who have been ridiculed by friends and family, by financial adviserss, what the hell do you want that stuff for? It doesn't pay interest. They say, "Why would you buy

that?" Um, are finally being vindicated. And it's a lonely feeling, Charlotte. The people who come here like to talk because they finally have people around them who understand that they're like-minded and get it and um and and they can have real conversations. Whereas, I go into Thanksgiving dinner, my wife says, "Don't you dare say a word." As we're walking in the door, not one word because I want to stay through dessert. She'll say to me, I'm okay. I won't say a word, but the point is the

public hasn't received the message. The people who have been here year over year have and have done have invested accordingly and have felt isolated, alone, wondering if they made the right decision and to see what's happening now, which is a function of mathematics and logic, which always seemed to work out over time. You can't hide from mother nature, nor can you hide from mathematics. You can run and you can inject variables and you can do all you can to evade, but just like father time,

it catches us all as does mathematics as does mother nature. When you suppress interest rates the way the west has for a long time to create this illusion of wealth in in in your real estate, in your 401k, but creates distortions of in asset prices, misallocations of resource and capital. Yeah, I'll hire 50 more people. I'll build a new division. I'll I'll I'll rent some more real estate for our business or whatever it may be. I'll buy that second investment property. Um

that those distortions come back to roost over time. And that's what we're seeing right now that you know um these distortions that have affected metals prices for so long are now in my mind finally being um exploited through delivery. And what's really interesting is that the biggest money in the United States is standing for delivery at levels no one has ever seen. And that's manifesting into much higher prices. And it's really heavy to see the people here. I mean, some of them in tears

saying, "My life has been changed forever." It's very heavy. Like I invested $300,000. A lady said, I was just telling you downstairs. She said, "I flew here to meet you." In tears, couldn't speak. Like she couldn't speak. And she said, "I flew here to say thank you to you that I'm a millionaire now since May." And it's and and I put my life savings in because I listen to you. Of course, it's being better than chased with pitchforks. But I will tell you,

it's very surreal. I've done this for 36 years. I've been coming to these conferences for half that time. Not only is the amount of people here exponentially greater. Um, but the vibe is is surreal. And you know what I just want to say to people in a market that's moved as fast as this has, short-term caution is always prudent, right? nothing goes straight up without taking a breather. But um you can still coexist that can coexist with long-term bullishness and I am hugely long-term

bullishness. But yeah, anytime things move to this level, got to be careful. But I'll tell you to your question, it's it's so far different than anything I've ever seen. It's it's absolutely off the charts and it's very surreal. >> Yeah. Yeah. It's definitely a really interesting mood here. And I want to talk a little bit more about that repricing angle when it comes to silver because we always ask our audience for questions before we come to these events. And that was one of the ones we

got. You know, is this a repricing moment? What does that mean? And I think it's interesting what you're just saying right now because I'm also seeing people now that we got to this triple digit level for silver, they want to take profits and some people have been in for a very long time are selling at least some of it. So can you talk about that repricing and what that actually looks like? >> Yeah, I mean well it's being repriced in the respect that you're finally finding

equilibrium between real supply and demand. Unfortunately, the market has been controlled by paper derivatives where the ability of the western banks, eight of them in silver, eight um one in one or two in Canada, three or four, two or three in Europe and five or so in the United States have maintained the largest concentrated short position of any commodity ever traded in the thousand plus commodities on COMX ever. Let me say that again. The largest concentrated short position of any commodity ever traded on COMX. Why?

Why? And to me, that's the first question. And the answer is in my mind because of the military-industrial complex. The West has ruled the world through strong military. The amount of silver needed in high-tech weaponry from cruise missiles to F-35s to stealth bombers to submarines, nuclear sub, all this stuff. And these really really high-tech weapons now that are going Mach 3, Mach 5, whatever they are, the the um hypersonic missiles, the heat that is generated in the cone of the missiles is so extraordinary, the only

thing that works is silver. And the military-industrial complex doesn't care about the price, right? Because if it if if you need 500 ounces in a in a high-tech weapon uh cruise missile that sells for $20 million, what the hell do you care what the price is? It's more along the lines of the rest of the world understanding how important and vital it is in everything, not just military, digital, electronics, you name it. Let alone the monetary aspect of it. What I think the only thing people need to

understand, and I will say this to you all, the only thing you need to understand is who the hell is standing for delivery every single month on COMX. Every month for billions of dollars worth, billions upon billions upon in December. It was the largest delivery in the history of the COMX market for silver for a December contract. Like 65 million ounces so far in January, which is not a primary delivery month. We're over 40 million. So in the last 40 days, we've seen what 120 million ounces

nearly stand for delivery. Who's doing that? A mint box of silver eagles is 42 pounds, 500 ounces. Who's buying 110 million ounces? And I think when you understand this, when you look at the deliveries off of of the LBMA and the massive deliveries off of COMX, what I would say to you is that the most wellfunded, but more importantly, Charlotte, the most well-informed people at that level don't do this for the hell of it. Right? If you're dropping billions and billions of do you not

think you know where it's going, are you not really connected to the inside when you're spending that kind of money? And I would argue it's not a one-off. It's been every month since Trump won the election. And then what do you know? Silver is now a critical mineral as now reclassified by the government. And what do you know? They just said we will put state sponsored um price floors underneath all critical minerals within the next 90 days. That was a law that was just passed last week. That is to

incentivize domestic mining of all of these critical minerals because you know prices are where they are. if they're not if there isn't a floor at a high enough level. You can't incentivize domestic mining for things that are becoming harder to find. Uh and then they just came out and said now there is a proposal in front of the house and sen it's cleared one of the chambers. I think the house has to now pass the senate saying we need to build a strategic stockpile of all of these

minerals. What you are seeing is not two brothers in 1980 the hunt brothers trying to corner a market where same environment they see way more paper than bars and they're supposed to be one to one. employee. If I buy all these paper contracts, but there's not as many bars back there. Well, what if we stand for delivery? What happens? Price goes way up. Well, the the exchange changed the rules on the Hunt Brothers. They said, "You can't be that long, but you can be short as much as you want." They had to

sell the contracts. 2011, it was about leverage and and and um the leverage that speculation. So, what did they do? They raised margins a bunch of times. And if you raise margins on the COMX, meaning you have to have more in the margin account than you did the day before, they keep raising until the people who are on margin are forced to sell, which drops the price, which begets more selling, and the price collapses. Didn't come back for 15 years. On the day on Christmas Day, about a week before this year, they

raised margins. On Christmas Day, you needed 21,000 in your margin account to hold 5,000 ounce silver contract. Silver was 60 bucks roughly on Christmas Day. The next day they raised it by 30%. If you don't pay, we're going to unwind and liquidate your account. So now you have to put $27,000 or excuse me, $47,000 in your margin account. Uh 27, sorry, $27,000 in your margin account. The reason I said 47 is today it's $45,000 an ounce to control 5,000 ounces. A company like mine will have 2 million ounces of silver at any

given time. If it costs $45,000 to hedge my exposure, meaning the margin account means I short two million ounces on paper on comx. I have two million here. I short. If the price falls by $10 an ounce, I'm down on two. I'm down $20 million. I'm out of business. But what I sold short goes up by the exact same amount. But in order to maintain that position, I have to have $47,000 per 5,000 ounces. You have to have millions. That's before the gold. 35 or 36,000 for one 100 ounce gold contract. Well, what

that does to the speculators, the people who might be very wealthy, but they're not wealthy like so sovereign central banks, sovereign wealth funds, Tesla, Samsung, Sony, who don't play on margin. These people get shook and all of a sudden they have to sell to cover the margin requirement. Maybe they have 50 contracts and they have 20 million in their margin account and all of a sudden the price jacks way up on margin and the price of silver is moving up seven bucks on Friday. It's up right now in in just

as the market opened in Asia, it's up three bucks. They're going to get margin called again. So, they sell the weak hands sell. They're forced to. And what happens? The big money who is not on margin comes in and says, "Yeah, we'll take um you know, we'll we'll take the the 50 million ounces of silver." Every single month for the last 15 or 16 months, between, I don't know, 30 and 50 million ounces of silver are standing for delivery every single month. and ask

yourself, who the hell is doing that? And where's the mainstream talking about this? Why do I have to scream about it every single podcast I do? This is so far unusual. It's so far It's 4 ft of snow in Death Valley in July. It doesn't happen. And all I can tell you is that that's all people need to know because these are the most well-informed traders on the planet who are literally standing for delivery for billions upon billions upon billions upon billions of gold and silver. Sh. Don't tell the public. And

the public doesn't know. The only thing they see is negative. Oh, it's it's overbought. The devilish blowoff. We're shorting. The top is in. And it keeps on going. And all I can tell you is is that it seems to me this is being repriced where you have assets now being repriced via sovereign demand by countries and and and nations who understand that it's not about dollars and promises from an insolvent country like we are holding our treasuries. Instead, it's about who has the commodities wins. And that's

what's happening. You can see it if you open your eyes. >> Well, and let's let's talk a little bit more about these big smart money players that are standing for delivery. Maybe we can just spell it out. Who who is doing this? >> Who knows? If I had to guess, if I had to guess, it's it's the exchange stabilization fund. In other words, the US Treasury who can do so in a clandestine manner without asking for congressional approval. It's about national security. How do they frame

critical minerals national security? So they bring it all in. They buy it all up and they don't have to talk about it. And the bigger question is why don't we hear about it? Forget about who it is. How about why? Where is the mainstream? Where's the Jim Kramers? These these people who pretend to be looking out for our best interest. And he said gold and silver the top was in months ago. And what do you know? We are way higher. And I've never sold gold and silver to for people to become wealthy. I sell it

because it is wealth that has outlived two world wars. German hyperinflation, the Great Depression, every pandemic, every everything. And the system about the dollar since 1971, it's been about trust. We we we severed the gold standard. We're no longer redeemable by in gold the way we were prior to that. And who trusts the United States anymore? Whether it be institutions uh and and I'm a patriot. I thank God every day I was born in the United States. And I would vote for President Trump again and thank God he's

there. But who trusts us? our institutions, the judicial system, um the the federal government, um immigration, um you name it. Who who trusts these things? Who trusts our our fiscal responsibility? We are creating a trillion dollars in debt every 100 days. A trillion seconds ago was 31,688 years ago. So, we pretend to be the police man of the world, right? And military spending, which they've now increased to 1.5 trillion, is is discretional. And the Congressional Budget Office said by 2031 100% of tax

revenue will go just to pay the mandatory entitlements and the interest on the debt. And those entitlements are off balance sheet. Which means when you fund your military, you're doing so by selling bonds. You're borrowing money from the world to go around and police them. We are at the late stages of a system, an empire based on trust which has squandered the trust. Not only through weaponizing the dollar and the treasury against countries like Russia. Not only through the previous administration when you look and say it

this is too stupid to be stupid where everything that Americans were proud of like coming to the country all of us came from another country are our our heirs did where is there a two two-tiered justice system are the elections fair or not all of these things whether or not you think they are half the world thinks that they're not and all of these things have eroded the trust in this nation and so now it's going from lack lack of tr. Look, I'll say it this way. After World War II, the

United States stood on a very high moral high ground. And I would argue we've trampled on it, not only through fiscal irresponsibility, but through our actions at home and abroad. And that is not sustainable for a country who not only is running wicked fiscal uh deficits every year and and a debt that is compounding exponentially where the interest on the debt is more than your defense spending um which has to be borrowed. I would just simply say we are seeing a transition where gold and silver are being integrated reintegrated

into the monetary system as as a symbol of trust and this will become a marriage between blockchain trans uh transparency and physical commodities and it's happening. It's real. Problem is most people don't get it because the mainstream media doesn't talk about it. You do and have for years and and be honest with me Charlotte. I'm going to ask you a question. You know your friends who you've known forever, who know what you do, when you tell them this stuff, do they give you a blank

stare? Do they say to you, "What? Gold, silver, mining shares?" Can you have a conversation with your oldest friends for more than 3 minutes about this stuff? You don't have to answer. Your smile says it all. And I know cuz I've owned a company for 36 years. They don't get it. Now they're beginning to and they, you know, they're your friends, so they listen to you that you're smart. But the same thing is true is that this hasn't come full circle yet where people

want to acknowledge just what gold and silver represent. They've been pet rocks for a long time, but they're not anymore. And the really smart money who is spending billions upon billions upon billions upon billions every single month quietly, it's never happened before. And that to me is all you need to know. So, we're definitely, I would say, still waiting for that mainstream wake up to gold and silver. And I wonder at what point does it become difficult for the average person to get them given that

there's all this buying from these large entities? >> I love that you say that because I've been coming to this conference before it Well, I take that back. I've been coming to Vancouver for conferences for a very long time. And before I came to this one, I would come to the Agora conference which became the rule symposium which now has moved to Bokeh. But the Agora conference back here was a decade plus ago and I would get up on stage and I've always been way early. People probably think I'm full of crap

for saying it. And that is that this market will be defined in two ways and I am proving to be right I believe. One, it will be too expensive for most people. They say, "Geez, it's so expensive. I missed it." But for people watching this show, it will be more about the difficulty obtaining product reasonably and and with any expediency whatsoever because there's very little product out there in relation to the total amount of money out there and we are the pimple on the elephant's rear end. The elephant

has no idea, but we've been talking about it forever. So, we think there's plenty of it out there, right? As Rick Rule who was in here, I saw it two interviews before me. He will tell you one half of 1% allocation from precious metals and precious metals equities across the entire financial matrix from Joe and Jane six-pack as he always says to the Harvard endowment fund. Well, guess what? The Harvard endowment fund just bought a couple hundred million in gold. When the public wakes up, it will

be either too expensive or too hard to get the product. And I think that is how the market will be identified uh on a large scale. So, it is a fair question. There's not enough to go around. And if that moved just to 5%, if Rick is right, that's a t-fold increase in demand. Charlotte, how about 10%. And you know what's interesting? Wall Street never acquies to metals. And and you get an adviser say fine 5%. Put 5% in. Well, the chief investment officer, Morgan Stanley, just came out and said, Wall

Street has used a 60/40 rule for the last 50 years. 60% stock, 40% bonds, retire wealthy. Okay. Well, he said, "Listen, um, half of that portfolio is broken. Sell half your bonds and put it into metals." He's saying 60 2020. Michael Hartnett, the chief analyst for Bank of America, who has a very, very expensive newsletter that goes to the institutionals, he says, "No, 25%." Um, Jeffrey Gundlock, the bond king, who's made his life selling bonds, said, "No, 25%'s not overweight." So if 5% would be

a 10-fold increase, how about listening to the chief investment officer of one of the biggest banks in the world, Morgan Stanley, who says 20 or Michael Hartnett 25, or Jeffrey Gunletter says that's undervalued or not not overvalued, not overweighted. You there'll be nothing left overnight. And I I say that I don't care if people think I'm talking my book. At this stage, after 36 years, I don't need to talk my book. and all the interviews I do and my own YouTube channel. I'm not

going to destroy my name, that of my family and my company's name by saying anything that I don't believe in my soul. And I will tell you it there isn't enough to go around. There's far more money than there is money substitutes like gold and silver to put it into. >> Yeah. Yeah. I think it's a great >> God is my witness. >> Yeah. I think we all just need to be aware of that at this point. And I also want to I want to touch on the geopolitical angle for gold and silver

price drivers right now. So we've talked about the importance of the the big entities standing for delivery, but there's so much going on geopolitically right now. And I know that you're very tapped into what's going on there. So to what extent is that also moving prices for the precious metals right now? What are you holding in on massively? There's a $12 it's and it's growing an arbitrage in China. Yeah. Where Shanghai is offering 12 bucks an ounce more thereabouts per ounce than silver than

the for silver than we see it in the west. So if you're a trader, you can if I give them 10 million ounces of silver, buy paper here and deliver it in Shanghai. H well uh that's $120 million. Done. That's what they're doing. And that arbitrage is that sucking sound if you listen. That's their way of saying, "Be dumb enough. Please, we're sitting on all of your dollars through the trade imbalance. Please be dumb enough to give us your your silver and we'll pay you

handsomely for it in your dollars that have the um the the the retaining value of a melting ice cube where they're continuously losing value through irresponsible fiscal policy. And so you have, for example, China right now is expanding their Shanghai metals exchange throughout the entire Belt Road initiative using local currencies. All these nations trading over Embridge or SIPs, the cross interbank payment system, both of which are are not compatible with Swift and they're settling imbalances in gold. Now think

about this. China just signed up the Asian nations. These are the countries in Southeast Asia who represent China's largest trading partner by far. There's 800 million people there, twice the population of the US, 30 plus% of GDP. They're now signed up to SIPs and Embridge, which means all of the trading won't go through Swift. It'll go over other channels that Swift isn't compatible with in their local currencies. And [clears throat] imbalances are settled in gold. In other

words, instead of when it when it had to be dollars, well, that supports the dollar strength, right? And when you have all these dollars to conduct trade, you put the reserves instead of leaving them earning nothing, you put them into treasuries which are very liquid which give you a return. So that supported and kept rates low and kept asset prices high right in the US. So what if they say well we don't need dollars anymore. We trade our own currency building our monetary system instead of that of the

United States. Better be smart about it. And then instead of holding treasuries to put reserves in, we put it into gold which has doubled the performance of the Treasury for 25 years. Look at the last two. 2024, gold was up 40%, the dollar or the 10-year Treasury up four and a half. Last year 10-year Treasury up four, gold up 80. The point of it is is that it can't be weaponized, can't be taken from you. It's outperforming. It has no counterparty liability. And these countries are have had it with

the US and our are are our our monetary policy being at the end of the barrel of a gun instead of cooperation. And that's what the bricks are. It's all voluntary. The Shanghai Cooperation Organization. All these countries are doing so because they see a way away from hegemony, the United States, and their safety and numbers. And it's happening. It's it's growing. And you're right, the that's what started the ball rolling. In every interview I've done with you um for the

past 5 years, we've talked about bricks and we've talked about the the international demand. And not through all of that time, it's never spilled over to the US until now. For the last 15 16 months since he won the election, Trump, honest to God, Charlotte, the amount of gold and silver coming into Comx is like honestly, it's 4 ft of snow in Death Valley. And you're not going to see snowmobile dealerships spring up in Death Valley if that's the case. It's an anomaly. Or is it? Is all this being

reshored? We thought it was tariffs. I said, "No, it's not tariffs. It's reshoring. It's reshoring. They're they're lying to the other banks. It's the only way to get it back." These banks have been in collusion with each other for 50 years. And the primary way they would do it is they would short in in New York, which would drive the price down, and then take a corresponding long position in London, which doesn't affect the price, but makes their books neutral. And they would trade back and

forth either with real metal or what's called warrants. I own it. No, you own it. No, I own it. You own it. just piece of paper that showed ownership and they would never really it wasn't it was capping the price and now Trump comes in and they say it's tariffs it's tariffs of tariffs send the metal back we need to cover it don't worry it's just one way it'll come back it's not going back they are reshoring we've become a net importer of gold we've been a net net

exporter for 50 years and whoever is bringing in record after month record record every month huge amounts billions and billions and billions I will just simply say if you have billions and billions and billions and billions of dollars. You are also very very well connected and they know where this is going or they wouldn't waste their time, their money or do things that are completely non-conventional or are they are things just changing and I would argue they are. >> You you emphasized right at the

beginning of this conversation as we're going forward we can have ups and downs in gold and silver prices. The overall trend is up. Is there any realistic bare case for the precious metals at this point? >> Not unless we see a massive new rush of supply that is found somewhere. Um, [clears throat] you know, because it's all valued in dollars. And what is the bull case for the US and it is the speech I'm giving tomorrow is talking about the US wanting to shed the reserve status. It's something called Triffin's

dilemma. We are a country. Ray Dalio just gave a speech and he said 60% of America has a literacy rate under the sixth grade. Okay, we're we're dumb. We're uneducated. We don't make anything anymore. No manufacturing. Um we're 200 trillion in debt. Well, that's not a good recipe. And and no one trusts us anymore. So what do you do? Triffin's dilemma says that you will never have a trade balance positive if you are the reserve currency because we have to we can't give the world enough in the way

of dollars through trade alone. So they have we have to export our dollars to the world which means they have to sell their currency in the open market to buy ours which creates an inequity over time that the constant selling of their currency to buy ours to buy oil and to do things creates a situation where manufacturing is hollowed out and flows to countries like Cambodia, Vietnam, Korea, China whose currency is way lower than the dollar and so that's it's way cheaper to make stuff and and because of

that and then with all those dollars they have they have to put it in treasuries for the reserves right so the combination of all that has given us cheap goods at Walmart has has made uh interest rates very low making asset prices high it's coming to an end and um it really is it is coming to an end that exorbitant privilege is over and I believe if there's any nobility in what President Trump is trying to do is to reshore manufacturing how do our children or grandchildren in the United

States have a future in a country where we're broke and solvent uneducated, don't make anything. And just in time comes AI to kneecap entry-level jobs. My son was an accountant. He works for me now. He was an accountant at Price Waterhouse. He was getting paid 80 grand a year out of college to analyze the balance sheet of a real estate investment trust, getting paid from one of the biggest accounting firms in the world and getting paid benefits and all that stuff. AI says, "Boom, done." What

do you need at a a 25 year old kid to do this? You don't. And these jobs are going to disappear. what you see is a K-shaped economy. The wealthy get way wealthier through massive efficiency at the expense of millions of jobs. How do you put people to work? I honestly believe that is what they are trying to do to massively devalue the dollar in order to reshore manufacturing. Now, there's there's a lot to it, right? Um, it has involves the Genius Act, which is goes into effect January 1st of next

year. And it involves what Judy Shelton has told me twice on my show, who was Trump's nominee to run the Fed in 2016. Brilliant woman. You should have her on your show. Brilliant. She wrote a book as good as gold. And she says he told her Trump did and no certain uncertain terms that July 4th of this year which is the 250th anniversary of the country he will back the back end of the bond market to gold. In an essence that gives you the ability to issue zero coupon bonds redeemable in gold. Now the Genius

Act which after January 1st says anytime money moves will be backed by stable coins. The Clarity Act just said the interest on the stable coins is not transferable. So, let's just play this out. I owe you a hundred bucks. I send it like Venmo or Zel, but now money. I send it to you. When I send it to you, the the stable coin is created. When you receive it, the stable coin is burned, gone. Backing the stable coin are short-term treasuries up to 90 days. The interest on that treasury is not transferable to you or I. Who keeps it?

The issuer. USA Tether is one of the primary beneficiaries of it. Their [clears throat] CEO is now Bo Hines. He was Trump's cryptozar through August. So what are they doing with all of that interest? Well, Tether has bought 14 billion in gold already, this largest holding in the world next to sovereign nations. So what does that do? Remember Triffin's dilemma says all these countries are devaluing against the dollar. So measuring your dollar against the dollar index is measuring against a

melting ice cube. They're all devaluing. It's a faulty measuring stick. measured against gold. That is what Roosevelt did when he confiscated gold in 33, paid everyone 20 bucks or 2067 for their $20. 67 cents was a lot when a dozen eggs were a nickel back then and then he devalued the dollar by 40% just like that making gold 35. He want they want to devalue the dollar to to be able to sell manufacturing to the world. You can't sell it at a high dollar. So you devalue the dollar, you shed the reserve

status, you default on it quietly, right? A and by continually anytime money moves it's backed by treasuries which are non-transferable the interest. Tether buys gold. Gold goes higher higher higher. Van funds not not James Ricks who says 24,000 not Mike Maloney who says 10,000 not me who says anything. Van funds said if the dollar loses its reserve status which I believe we will gold will go as high as 180,000. Now let's play that out. This is Van right a mutual fund company. Let's play

this out. If you sell a bond to the Chinese to to bring back manufacturing, right? You you sell a bond to anyone to bring back manufacturing to rebuild your manu manufacturing in the United States with zero coupon. That's what Judy Shelton says is going to happen. Zero coupon, but redeemable in a fixed face value of gold in 20 years or 30 years or however long. And I sell [clears throat] it to you at 5,000 bucks an ounce on on 20 million. That's a That's a lot, right? It's 4,000 ounces of gold. But what

happens if Van is right and we shed the reserve status and gold goes to 180,000? That just means I owe I have to pay you 300 plus times less gold at 180,000 bucks an ounce to to in 20 years to pay off that bond. And as gold goes way way way way way higher, the dollar goes way way way lower. So we devalue the dollar. Got to reshore the gold first. Oh, what do you know? we've become the largest importer in the world quietly, right? No, it was to cover the shorts. It was arbitrage. It was tariffs. Gold. It

wasn't. It was reshoring. It was it was lying to the to the European banks because there's no other way to do it. So all [clears throat] this gold comes back, you let the price go higher, higher through the movement of money, synthetically creating demand for the front end of the curve. You peg the back end to gold. And as the higher the price goals of gold goes, the easier it is to pay off your debt, what you use to bring back manufacturing into a wickedly devalued dollar. Now you can sell your

products to the world like they've been doing to us. I believe that's what he's doing. He can't tell the world that or it would never happen. There is no I believe in what he's trying to do. Um if not Charlotte, you live in Canada. I live in the US. My kids and and their kids are doomed. And I and I don't I this isn't hyperbole. This isn't being dramatic. How do you become or retain any legitimacy when you are wickedly insolvent? You are wickedly un uneducated. You make nothing and here

comes AI to kneecap everything. So the wealthy get way wealthier and the poor become way poor. This is Claus Schwab saying you'll own nothing and be happy. I mean it's scary as hell. There is no other way to do this but in my mind but to default on the reserve status. And I think that's what they're doing. Bottom line, you save in dollars, you'll go broke. you're not a contrar and you'll be a victim. And I mean that sincerely, 100%. >> I think it's really clear just from what

you've laid out the direction this is going. And I think I I should probably let you wrap it up and get back out onto the conference floor unless you had anything final. >> That's all good. My voice is is starting to fray, but no, it's all good. Um I always do this to you. I always >> I don't mean to do it. I'm I'm very fired up about what I do and I and I very impassioned by it and I'm if I have any any um >> any talent it's being maybe to connect

dots. When I started talking to you and others five years ago about the bricks, everyone thought I was insane. And then what do you know? The bricks are mainstream now. Say what you want about them. They're growing. Um and maybe I'm stupid to say it or brave enough to say it. I don't know what it is, but I believe in my soul this is where we're going. And it is not to talk my book, right? I mean, I've done this a long time. I don't need to do that and ruin my family name, my

company name, and and embarrass myself. That is not why I'm saying this. I'm saying it because no one else has the courage to say it in the mainstream. And you don't hear anyone else saying it in this industry. Some of it, not all of it. I believe it and I'll stick by it. And if I'm wrong, I'm sorry. I I I try hard. I spend three, four, five hours a day every day reading and everything I see tells me that this is the direction it is going. We can't continue down this

path or our our kids have no future. Zero. We used to be the the engine of manufacturing and of and of trust, this moral high ground which we've trampled on. And um you know I I I think that um these these changes have to happen and either you roll with the changes and accept them or think that normaly and recency bias prevails and get rolled by them if I'm right and if I'm wrong so be it. I apologize but nonetheless I do believe in my soul. This is this is right now. it it's moving so fast right

now that either you understand it and dip your toe or maybe jump in with both feet um or look back and say damn it I wish I would have done that because uh nothing good lasts forever things change and hopefully this will look one last thing and I'll shut up my mentor Richard Russell used to say 20 years ago the Fed has two two choices but to inflate or die inflate or default this is option number three soft default on the reserve currency to bring back manufactur ing to have the ability over time to grow our

way out of this problem and become a more mercantile nation where we take care of ourselves rather than a globalized one which isn't working anymore. And if we don't, God help this country, the United States, or we're in big trouble in in in the next if we're reliant on the rest of the world from aspirin to aircraft parts, what does that do? We have to make stuff and that's what this is all about. >> Well, thank you as always for the openness and the detail. I think this

was very valuable. I always have to go back and listen to you a couple of times when we do these. So, thank you again and we'll have you back soon and see how these are all developing. >> Yeah, I hope so. I look forward to it. And Charlotte, I wouldn't miss it. You're great. Thanks for having me. And uh until next time, I look forward to picking up where we left off. >> Of course. And once again, I'm Charlotte Mloud with investingnews.com and this is Andy Sheckman with Miles Franklin.

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