hi this is mike maloney with jeff clark once again and we've got a lot to cover here jeff how are you doing i'm doing great mike it's great to be back with you again of course yes we have a variety of interesting topics to cover today so let's jump into the first one here and this is an article on some quotes that ray dalio has made he has long said that cash is trash and now he's saying it's time to buy stuff because of stupid bond economics and what he's basically trying to point


out here is that cash's trash and bonds are stupid in his words because of currency creation a and b because of rising inflation that makes those two asset classes less valuable going forward so mike i think he makes a great point what do you think well i absolutely agree with him and ray dalio is one of the most successful investors that there is and uh he is also an investor that really understands economics like macroeconomics he understands how the economy works and so that's very important that this guy


is now saying um he the quote is the economics of investing in bonds and then parentheses and most financial assets has become stupid he just thinks it's stupid and so do i we live in this insane world uh where uh everything has become out of control and it's because we've got some really stupid people running things they think they're the bro most brilliant people on the planet and they're they're not uh it's not really stupid they're arrogant uh they believe that


they are right at all costs and no matter how much uh they're proven to be wrong they'll they will just say well we didn't do enough of it it can't possibly be our theories it can't possibly be that these equations could be wrong uh what it is is we are right we just didn't do enough of it last time so we're going to double down on it this time but he says rather than get paid less than inflation why not instead buy stuff any stuff that will equal inflation or better


so um that's basically you know that's what i've been doing uh i believe this is absolutely right but we're at this crossroads right now where we don't actually know what's going to happen um who was it that you were saying was you know i believe that we could be going into this 1920s style boom for like a couple of years here who was it that you were saying was just writing about that yeah i mentioned that before we came on air here that was uh frank holmes at u.s global investors who have a lot of


respect for but yeah but his research he's suggesting that we could be on the cusp of a another uh roaring 20s uh just like back in the 1920s and we all know what that eventually led to but and the demand is going to really jump here and push inflation a lot higher it's not going to last eight years though like it did during the roaring 20s it's going to if if that happens it'll probably last like a year or two and it's because of all of the pent-up demand from uh covet and the lockdowns


suppressing everything the gdp the economy and people's own demand their gratification plus all of the stimulus injected during that period of time uh now that's very similar to episode 7 of hidden secrets of money where i talk about velocity and you know when people's anxiety is high velocity slows and they save currency you lift that anxiety and suddenly all that currency comes flooding out you have an economic boom it starts off as something that looks good to everybody and all of the uh kings and uh central


bankers and economists are going to be trotting out how right they were and that this worked but then uh you know when this there's so many examples throughout history where you go through this good period but that good period is just the uh on ramp to in to hyperinflation and an economy that's entirely destroyed uh so um he also thinks uh that uh this is exhibiting classic bubble dynamics and if we go into this roaring 20s all it is doing is inflating the bubble higher and making the eventual


implosion so much greater but that will do things like cause uh gold silver and kryptos uh to explode much higher than they uh would if if we just go into a crash right now either way i think it's going whatever the crash is it's going to be devastating when the implosion comes but the more we inflate this uh the worse it gets is there are there any other things that you took from this article uh well a lot there the message from me even though ray dalio doesn't say it is i just feel so much more comfortable


owning gold and silver right now mike like you said many times going into this kind of environment no matter which way we go if we go in to deflation first or if we go into this inflation first yeah i just sleep a whole lot better having a you know a very significant exposure to gold and silver yeah he you know he also says he believes cash will continue to be trash um borrow cash rather than hold it as an asset and buy higher returning investments um he says if history uh and logic are to be a guide policy makers who are


short of currency he says money here will raise taxes and won't like uh the capital movements out of debt assets and into other uh stores of wealth and other tax domains so they could very well impose pro ambitions against capital movements to other assets including gold and bitcoin now what that means is that you want to have these assets before they do that because they're going to be trying to encourage you to sell them and so uh they're they're going to make it harder to buy these assets if that happens


however you know the last time that um that the u.s when we made gold illegal for american citizens to own in 1934 through the end of 1974. in 1934 gold was our base currency and what they wanted to do was inflate and so they were making gold illegal and recalling the gold that was in circulation those gold coins so that they could inflate today there's no connection between the the u.s dollar and gold there could be at any moment because the central banks do hold it as an asset but then this goes


on to say that the united states has become could become perceived as a place that is inhospitable to capitalism and capitalists uh and that is it's happening right now and it is so sad to see uh the country that became the leader of freedom and the leader of capitalism and it took us to the highest standards of living in the world to see that fade into history it's just such a sad thing and i've been uh you know for uh 15 years now i've been actually more than that i've been


uh rearranging my life trying to uh get ready for this and protect myself from this and uh you know i'm in a the lowest tax juris jurisdiction that i can find uh i'm right now diversifying into uh some productive property and uh so yeah i absolutely agree with i think this is a good article for people to read well speaking of bubbles mike uh here's another article from a hedge fund person john hussman another very successful hedge fund manager and i love this chart but he says in his


his tweet here this is the ratio of the price of the s p 500 relative to its revenue um and he says here in the financial markets past returns are most glorious the moment future returns are most dismal and enthusiasm about investment prospects is the strongest the moment those process prospects become the weakest but this chart mike is is very paints a very clear picture it almost looks like a bitcoin chart here this past year or so doesn't it going the price of the s p going straight up relative


to the revenue it generates absolutely but uh what this it's a shame that this chart doesn't go back further in time because what you would see is that that this ratio of one where the revenues of the company annually uh equal the price per share uh you know the revenues per share equals the price per share that's a ratio of one and uh it looks like uh being in balance being fairly valued happens at about a ratio of 0.75 and if you could take this back into the 1950s you would see that and we've been in


this extreme bubble for this entire century uh you can see the bubble in the year 2000 it got to about uh 2.25 uh so two and a quarter times the uh amount of their revenues so the price per share of stock was two and a quarter times the price the amount of revenues per share and you can see the uh real estate bubble where the stock market was once again in a bubble but not such an extreme bubble and then where we are today and we're basically at three times this has never happened before in world


history uh completely unprecedented and what you see is this big uh dip and contraction last march but then the bounce out of it has been huge and because it's a ratio chart this can be driven with two different dynamics you could either have dramatically rising prices which we have had or you could have dramatically falling revenues and and either way this chart goes up revenues fall the price divided by the revenues or whatever it is uh goes up because uh uh the price is too high compared to what the income of


the company is and uh so what's happening here is both i mean uh now companies are starting to make some revenues again but for a while uh that was going down and so when it went down in march that was the price contracting not the revenues yet and then it went up as the revenues contracted and the prices rose and it's a pretty violent reaction and what i see here is that there's nothing like that uh preceding it in in history and so we're getting to this point you know i've often described


the economy uh like a spinning top a spinning top is very stable for a while and then as it's slow the the rotation still slows you'll see it do a little like wobble and it'll be stable again and then it'll wobble one another time another time and then it starts to do this procession and we're getting in to these really sharp wobbles like there's something it's building up energy for something really big to happen it really is mike look it's even bigger than it was


back during the nasdaq bubble there in the year 2000 so um this is really toppy and and a little scary frankly so i i think you're right and in fact i'm writing an article right now on how to prepare for a stock market crash how gold and silver investors can prepare for it because i think it at some point maybe not right this imminent but at some point it's going to happen and we need to be prepared for it so that'll be out probably this week so so very good i see that chart as not


just uh scary but down white right frightening it's uh something where you know that what's happening just by the angle of that rise and looking at at all of the history before that this cannot be sustained it's impossible and right that's something this pushed this far out of balance the correction is going to be devastating yes that's the point it's unsustainable and here's a good tweet of the day mike that kind of ties in with this is from kim kiyosaki robert kiyosaki's


uh wife she says it can be scary to make change happen but think about it if you don't take action now you're what does your financial future really look like that seems like some really good advice uh in light of what we're talking about doesn't it mike yes it does you know and it's been a while since i've seen kim but uh you know i i used to see her and robert quite often uh many many times a year and we traveled uh you know i'd go to conferences where they were speaking and


speak with them and so on and kim is just a wonderful lady she is uh so nice and so down to earth uh and but yes she's basically saying that you know you have to even though it's scary you got to sort of stuff that and and uh push forward and make a change and uh boy to me right now it's the time to do it you know um there there was there's uh people that are have watched uh our videos quite a bit they know that i've talked about hashgraph in the past and that uh i was invested


in it or i am invested right and um uh i did a video i don't know a couple months ago and it was at seven cents and it went up to nine cents and i got a uh email from somebody that was considered himself a crypto expert he was saying shame on you you're pumping and dumping something and i wasn't i was basically coming up we had news we had something big to talk about and the thing is that hashgraph spent an entire uh you know all of january of 2020 it was at a pen now there's a whole


bunch of people uh wanting to buy it now that it's at 35 40 44 cents it hit recently from a penny to 44. they didn't buy it back then that should be making this step can be scary but you've got to invest you know um our producer dan rubach uh was saying that uh and it was true that uh that hashgraph was probably the most asymmetrical bet that he had ever seen and i believe that it's still probably a good opportunity but the time to buy it was when it was 1 cent 5 cents and 10 cents now it's in


the 30s and 40s and a lot of that asymmetry is gone i still think it's probably an opportunity um and uh but uh this thing from kim here basically you have to make a move sometime or another if you stay frozen in place you're going to lose right good point and to apply that to gold and silver if we believe silver's going to fifty dollars and eventually a hundred dollars and maybe a lot more who knows um you want to be buying now before all that happens so well mike here's some viewer feedback


for you this is from daryl when i went down to buy some gold and told the guy i'm an all chemist i'm going to turn some plastic canadian currency into gold he looked at me kind of strange but i had a mitt full of canadian currency and walked out with two ounces of gold yeah that's great i mean uh you know ray dalio says cash is trash it's interesting that you can turn trash into gold also so yeah uh i do that right now i have um i jus i recently uh sold some crypto uh so that i could


have some cash set on the side and i'm waiting to see if for the signal the gold and silver have bottomed and i'm going to be turning some crypto profits into uh into gold and silver depending on the gold silver ratio that'll determine how much gold and how much silver i buy so uh the last thing is uh the the meme of the day and it's basically government promises and government programs and you know whenever you're talking to a socialist they will say well who's going to do the


roads you know we all need roads the government has to do this now would anybody in their right mind by the level of service that you get from the government on the road system sitting for hours and hours in traffic wasting such enormous portions of your lifetimes and then uh you know here in puerto rico the conditions of the roads i mean it's it really you should really have a very rugged suv if you live in puerto rico because i mean there are uh road there are potholes that would just gobble up my entire tesla roadster so


uh anyway uh government programs never live up to their promise yeah very good that's a good point uh well thank you for joining us everyone don't forget to sign up for our free newsletter and you can get mike's book for free we'll put the link below this video if you haven't read it so thank you mike thank you everyone and we'll see you on the next one thank you jeff see you later