hi this is mike maloney with jeff clark and adam taggart once again jeff how are you doing i'm doing great mikey yes we got the whole gang here for today so adam thanks again for joining us this week my pleasure guys thanks uh just great to be back thanks for having me back on all our usual segments plus a great meme of the day so stick around for that so we're gonna jump right in here so our first thing for the article of the day is uh some major headline news today it's in multiple


uh sources this one's from zero hedge uh biden unveils a six trillion dollar budget that will raise federal spending to the highest post world war ii level and this is a budget it's a proposal uh it's not necessarily gone through yet uh but with denver cracks in control the bulk of this is likely to go through and it says that annual spending under this budget would go to 8.2 trillion by the year 2031 which would put us at the highest since world war ii uh as a percentage of spending to gdp um and


or excuse me as the budget deficit to gdp pardon me uh which would be 1.8 trillion next year uh 1.6 trillion by 2031. the real issue here is the the debt that that stuck out to me was the debt to gdp by 2024 in just three years it'll be the highest level in american history and surpass world war ii deficit spending so mike this is kind of crazy but what it what's your reaction to seeing this kind of budget proposal well the budget proposal the things that you've pointed out is the absolute rosiest scenario


because of the way they do accounting these days and the the lies that are baked into the cake basically uh the the budget uh if you go back and uh look at history uh government history you'll see that the budget and then the true deficit a year later are two different things first of all second of all uh back in world war ii we weren't there weren't a whole bunch of unfunded liabilities and those unfunded liabilities aren't counted in the deficit but we keep on making more more and more future promises and with


uh this spending in these proposals there's going to be even more of that so uh you can you can pretty much count on whatever it's saying being like times two and really when you include unfunded liabilities and stuff we're already way over world war two good point and adam before you comment i wanna point this out that janet yellen said just yesterday she said quote there is a lot more we must do big fiscal policy is required to address the inequalities in this country and to build an economy that works for


everyone so adam you're on board with all this right ah please don't get me in trouble with the viewers here yeah um look i mean this is just big government gone wild right i agree with everything that mike said uh the one thing we can really count on 100 here with these government projections is that they are going to be on the low side um when it comes to spending the government's estimates are always always lower than what reality turns out to be um and you know i i i want to be um


you know i want i want to be sensitive uh and a bit understanding of the scope of the issue here i mean from an infrastructure standpoint of this this title this uh article is the six trillion for infrastructure that's actually a pretty realistic number in terms of what we need uh in order to repair this nation's badly uh under-maintained infrastructure and uh and to invest for you know decades to come of future uh economic activity the big question though is can we afford it now obviously


you know the current administration thinks so and they are going full tilt uh to uh you know to pursue that but um you know the numbers that you just mentioned there jeff are staggering and and look i think you know infrastructure is something that we actually need to do but you have to have an adult conversation about it right if you're going to ramp up in spending on that what are you going to take spending away from and we're not having those discussions and we're getting you know we're saddled with these


massive uh entitlement programs uh that that mike was referencing and uh you know that's a circle that's going to need to be squared and we're just not even beginning to have those discussions so i do think that that is a reckoning that's fast heading down the the pipe here um but you know just to bring it sort of the main theme what we talk about in these videos um i think this really is the administration declaring war on the purchasing power of our currency um yeah i just don't see there's any way


that we don't see anything but just a asymptotic decline in the purchasing power of the dollar if these projections come to fruition yeah good point and i just want to make clear that we're not trying to be insensitive like adam is saying to things that might need done and people out there citizens that might actually be hurting our whole beef my whole beef i'll speak for myself is you're creating currency out of nothing you're not backing it with anything and you're creating way too much of it


and there will be repercussions of that so yeah and sorry just interjecting this i'm sure mike's got more intelligent things to say on this than i but you know you mentioned janet yellen and to me that is just in many ways sort of the height of hypocrisy which is you know they're trying to justify all these policies um you know wrapping it into the cloak of oh we're trying to uh to raise equality but it is these exact policies that janet pursued while at the fed and that her uh her uh follower jerome


powell is now following and that janet is now supporting as head of the treasury that are completely exacerbating the wealth gap i mean they are rewarding the top one percent at a historically uh you know the most generous rate has ever been in history at the expense of everybody else so i i think it's just incredibly disingenuous uh to portray what they're doing as helping in equality where they are the chief abuser of it yeah mike uh they actually are are the big cause of this inequality is that a fair


statement uh they absolutely are but what really gets me is that nobody believes in personal responsibility freedom and free markets uh we're looking for the government to do more and more and more and when you look at the top-down uh you know where where society is controlled by the government that always fails and you know we ask well who's going to fix the roads who's going to do this you could uh just contract a bunch of the parallel highways going one direction and the other direction


to competing private contractors and turn the easements into a source of revenue for the government instead of a cost for the government and if you've ever been on a private toll road they're usually great uh they they're far superior to something done by the government you don't experience the traffic problems in the potholes and just all the stuff that comes along with a government project and so you could make a source of revenue from this it could be much better and at a much


lower cost people go well the government's paying it for it so it's free well it's i would much rather pay a private company per mile that i'm driving than pay the amount of taxes that i'm you know i i don't know the exact amount that it's costing me uh to drive on a mile of road but it's got to be less through private industry when you don't have the bureaucracy absorbing so you know you tax a certain sector a certain number of people and then you run that through a bureaucracy


and everybody has to get their cut before it actually goes to the department that's going to create the roads why not just pay the department that's going to create the roads instead of paying the irs and the treasury in congress and you know the whole every the the uh department that is in washington dc and then all of the state and local uh departments that administer all of this the amount of of economic energy i call it that is lost uh through this process there's just no way that the government can do anything


better than the free market can do it it's much better to have people open up their wallets and vote for what they want society to be than for some politician to tell us what society is going to be yes good point and and not to dwell on this topic too long but one more quick thing that dan our producer just uh sent me on cnbc janet yellen saying the yet the government is operating like it's 2010 and she's calling for even more aggressive spending than what we've already had uh she's


telling congress step up your spending so this is a trend in motion this is not going to stop until the system uh resets so i'm sure glad i own gold and silver here okay guys well on the tweet of the day this is from documenting bitcoin and this was surprising to hear uh mike you and i talked tuesday about uh ray dalio buying bitcoin saying he'd rather own bitcoin than bonds and here yesterday cara icon another billionaire came out and said uh now he wants to get into crypto in a big way


so mike uh this trend seems to be picking up a little steam here what do you think yeah isn't carl uh doesn't he also have some gold in his funds and so on uh i i believe i think this is uh the slow exit from the u.s dollar is what's going on uh there's people trying to protect themselves from from this isn't just somebody seeing that there's potential gains here it's it's somebody that's seeing that yeah there's potential gains uh i could do really well but there's


also a uh a safety uh aspect to it they're running to safe haven assets and i i think that uh cryptos just because they're not controlled by governments and central banks uh that they're going to be viewed more and more as a safe haven asset i still trust gold and silver the most they've got the 5 000 year track record adam what do you think i'm right there with you guys and while i don't have the um the experience uh that you've had more than i mike on investing in in following


the crypto space i've been trying to be a fast student of it and um i i i agree with you and i think people like uh like carl icahn are getting into it um you know a fair question right now is hey has this the price become too speculative uh you know could it go lower from here and i think we can have a big debate about that i don't think that carl cares about that to your point i think carl is buying it for the store of value properties and right now um as more and more people are waking up


um in the in the people you know who have been successful value creators are leading the the pack here you know we talked about sam zell we've talked about some of these other big billionaires who are moving into assets like gold or cryptos for the first times in their careers i think they're doing it for what you just mentioned there mike they're not doing it necessarily because they think that they're gonna you know be richer in six months and it's a good trade they're doing it because they see the


purchasing power of the u.s dollar getting destroyed for all the reasons that we just mentioned and they are looking for safety yeah and this is the smart money moving in you know there's go i really do think that um uh you know there's no central bank that holds cryptos uh they hold gold and there's a reason for that and i think so i think there's the potential that both will do well i think gold is is almost guaranteed to do well i agree with that and i'll just give a little commercial


um i did a couple recent interviews uh with people who are extremely bullish on the potential of the precious metals in the long term like you mike but they're really predicting that they're going to be taking off quite quickly and maybe the end of this video i can give a little bit more detail around that that sounds exciting yes so well listen if you're liking this video please hit that like button down there for us and uh the notification bell as well so on to charts of the day we have got a couple


charts here so something a little different uh this first one is from documenting bitcoin and it says here venezuela has the third highest level of bitcoin adoption in the world as people are increasingly use increasingly use it to mitigate economic and instability and he shows some things here here are some big basic items in venezuela next to how many boulevards the local currency it takes to buy them and this is this is quite amazing uh there's a whole chicken and how many boulevards it takes to buy one whole chicken


there's uh 10 sticks of carrots there uh there's one roll of toilet paper and how much it costs and if you look on the link uh for this tweet he does list the source for all this below there which is from reuters so this is probably pretty accurate with the hyperinflation that's going on in the country and then another chart is from adam taggart and it shows uh he tweets here uh retweets uh something from sven heinrich uh that says at least there are signs of inflation cooling and it's a sign it's a chart of


steel futures and of course it's not cooling it's just gone completely vertical no let up in price whatsoever uh adam you say jump in jehoshaphat so what's your reaction to all these inflation indicators that we see out there well to be clear uh my my twitter feed editor said jumping jehoshaphat i said something less publicly shareable when i saw that chart um but yeah as i look at those two tweets i mean the first thought i have is geez i'm really glad i don't live in venezuela


but it's hard to then look at that chart uh for still futures and not feel like we're fast on our way there i mean those those futures have quadrupled since the beginning of 2021 and you know some of that's due to you know pent-up demand and supply chains coming back online and stuff like that um but a huge part of that is due to all the stimulus that's been flooding into the system here um and that's the trajectory that we're on and we've talked a bit about inflation


and the risk of it becoming higher in past videos that we've done here so i won't rehash it but you know getting back to the zero hedge article we started with here's the last line from that article if passed in its current form the federal government would spend what amounts to nearly a quarter of the country's total economic output every year over the course of the next decade and as mike said you know those are probably that's probably lowballing what's going to happen


so um you know if that is the future trajectory that we are going to head down and it's looking increasingly like it will be uh i i shudder to see it at what stacks of dollars it's going to take to buy that chicken yeah good point so mike you've actually predicted hyperinflation would come to venezuela years ago some people have been criticized you for that but here we are it's obvious and it's been in place for several years so what's your reaction to what's happening


in that country right now well you know you see uh when hugo chavez won uh it it worked for a little while but they were nationalizing the uh the oil industry and that causes other things to not work and they have to nationalize this and then stuff starts getting out of control and it's really falling apart under the maduro regime but in that video that i did in 2013 uh venezuela chaos to come i showed the annual report on economic freedom and venezuela had dropped from like the 60th uh most economically free


country down to the very bottom spot 152 out of 152 and when you take a look at these ratings they put it into quartiles so there's uh four different sections and what you do what what you look at is the most economically free countries tend to be the most prosperous countries with the longest lived populations they're happier they have less child you know labor problems and just everything less pollution they're much better off in the most free countries in the least free countries where the


government tries to do everything which we are now trying to do uh those countries the people live their lifetimes are almost 20 years shorter and there's a related article that i just looked up that's from reuters and this was 2017 and it says venezuelans reported losing on average 11 kilograms that's 24 pounds of body weight uh and uh and almost 90 percent live in poverty that was 2017. so i suppose it's a lot worse now but going back to the uh the photos the uh tweet uh with the chicken and the


carrots the last one is a stack of boulevards required to buy one roll of toilet paper and there's much more paper in the standard currency you're much better off just using that you'll get a lot a lot more wipes purple of her if you don't buy the toilet paper with it [Laughter] oh golly that that probably is a really effective hyper inflation metric to track i would bet that it is wipes for domestic currency yeah yeah uh by the way um one of uh uh adam's followers uh wrote in and asked uh


uh has any reserve currency world reserve currency ever gone into a hyper inflation and you know i i'd sort of say he's got me there but you know i'll have an answer at adam's wealthy on uh conference i believe that's on coming up on the fifth adam yeah thanks so much for for mentioning that mike yes it is it's saturday june 5th it's an online conference uh if you can't watch live everybody who registers will get replay videos of all the speakers and you are going to be one of the


honored featured speakers there mike as are you jeff yeah in addition to that let me just quickly dial through some of the highlights of the other speakers there's lacey hunt there's grant williams there's stephanie pomboy there's david hunter there's lynn alden there's matt tybee as well as others as well but it is going to be a great gathering of minds and i just saw david hunter's presentation and i won't give too much away except to say that i was amazed for how bullish


he is on gold and silver uh and the mining complex um mike i and jeff i think you guys are pretty bullish guys you don't even come close to david's predictions on where he thinks the prices of the precious metals are going to go this year so if you're interested in that folks just go to wealthyon.com conference to learn more and if it sounds good sign on up i'd also like to suggest that people watch the rick rule interview that they did it was phenomenal thank you and uh really all the praise


goes to uh to rick um for those who don't know rick rule he is a um natural resources investor and he's one of those investors who doesn't just pour through the financial reports of the companies he actually goes out to the mines themselves gets his boots dirty talks to management actually looks at the projects firsthand and uh one of the it's a great interview rick shares an unbelievable amount of wonderful insights and partially because he just retired so he's no longer constricted by regulations so he calls


himself the new emancipated rick rule he's able to share a lot of information he wasn't able to previously but he shares his top five picks for mining stocks which was something he couldn't do beforehand and uh these are the ones that he thinks are going to be sort of the best set it and forget it long-term investments and the video is worth watching just for that list alone yes uh yes i'm preparing my presentation now to speak uh at the conference as well it'll be on mining stocks if you're interested in


that it'll be a bonus video so well on to some viewer feedback real quick here guys uh mike this is from paul coleman he says so silver is 40 from its all-time high uh meaning below its all-time high yet global debt has gone up 270 times since 1980 through 2021 and he says silver is a no-brainer what do you think of that mike i don't need to add a comment to that he's got it he just absolutely nailed it what do you think adam yeah the only thing i'll add is you know again my day job is interviewing


um a lot of these different uh financial and economic experts and what i like is when people who have different approaches come to the same conclusion and there are folks like you and i mike who i think we approach it more sort of philosophically we sort of look at the long arc of history we see what's happening with the currency um but when i see guys who are much more tactical who are you know having to make decisions with with big funds about i need to get a return for my investors in the next couple of quarters


what am i going to invest in when they're also coming onto the page and saying that silver is looking the best they've ever seen it and they're going into it in a big way i i find that confluence of different approaches um really validating so that's what i'm seeing right now yes i absolutely agree uh when there's you know there's gonna be a day where everybody rushes into this and uh silver is such a tiny market it just can't take uh very much inflows of currency all at


once uh and when the funds all decide that they've got to protect themselves and that there's big gains to be made it's going to be some real fireworks yes absolutely it is a very tiny market so well on to our meme of the day so this is a pretty good one for mike uh but first if you haven't read his book you can do so for free the link is down below so you can go ahead and grab that and read it for free so mike i've seen this meme so tell us about this well you know one of the things that


socialists always say is well they didn't do it right last time so this time we're going to do it right so here's a guy walking down the street with his girlfriend he's a socialist he's looking at a fictional country and his girlfriend is mad and she's venezuela the next one is iran ussr north korea east germany cuba and cambodia and on and on and on uh it has never worked uh when you go collectivist uh you're you're deciding on economic suicide very much so very good well thank you guys for


joining us for this video thanks mike and thanks adam we'll see you next week okay see ya jeff see adam great conversation thanks guys