hi this is mike maloney and i've got jeff clark on the line with another frequently asked question jeff what have you got i've got a very interesting one for you uh this time mike it's a sort of a devil's advocate question okay i think we're going to be right about where gold and silver are headed but mike this person is asking what would have to happen for you to realize that you're wrong about gold and silver and where they're heading wow that's you know that's


a tough question to answer um the first thing is uh all of the world's central banks would have to stop creating currency uh willy-nilly now that's not going to happen but still that doesn't prove that i'm wrong that proves that gold will stop doing the accounting because you know eventually it'll account for whatever currency they've already created but if they start uh destroying the currency that they've created which is just bank digits that they uh you know they uh create the


counterfeit currency into existence they buy something with it so to destroy currency all they have to do is sell those assets that they uh immorally but legally bought and uh then when they get the currency it goes into the account of the federal reserve or the ecb or the boj the world's the central banks and that account has no balance it vanishes when it goes into that account and so that's destroying the currency so all they have to do is uh sell back all of the assets that they have accumulated and


uh then that currency will vanish at that point there's fewer uh units of this fiat bogus currency that they create chasing after the same number of goods and services and you have a price deflation and the currency becomes more and more valuable and uh therefore uh gold you know it'll it'll balance so it may go up if they destroyed enough currency it would go down but this is a scenario that's never going to happen it's never going to happen and so i'm not worried about that


i can't think of anything i mean entities like you know a central bank like the federal reserve they can create unlimited quantities of currencies trillions or quadrillions uh or sextillions of dollars and uh they or i i skipped quintillions didn't i um they can create unlimited quantities because all they have to do is type it into existence uh and they can buy uh the entire stock market and as they keep on buying prices this stock prices continue to rise the stocks do well and people get fooled into oh well that


must mean if the stock market's going up the economy must be doing well well right now the economy is doing horribly and the stock market is going up so this deception works for a little while eventually it won't but they can keep on driving the stock market north it's just that there comes a point where the quantity of currency they're creating causes people to worry about the dollar being able to retain its purchasing power and they get scared into an alternative financial asset that is considered a


safe haven and that primary one is gold and then silver and then cryptos after that uh cryptos are new uh and they're doing extremely well uh i think that they're going to continue doing extremely well uh you know there's no guarantee on kryptos history it's not my personal guarantee but history places a guarantee on gold and silver they've never failed they're not going to fail this time uh they're going to do an accounting of the uh this creation of this enlargement of


the fiat currency supply right and mike there's some great charts in your book uh your original book that uh shows this accounting and how it has happened throughout history that gold and silver prices catch up and account for the excess currency that's been created and that's really the issue like you're saying it's it's this accounting that has to take place because history does it has taken place before and we have this just gross negligence on the part of central bankers and politicians in the


creating of currency now and so that implies based on history that this accounting means gold and silver prices will have to catch up and account for all that so i think that's that's the core reason why we really believe uh that that we're gonna be right about this eventually well it isn't just uh uh you and i that believe this uh the the world's central banks seem to believe it because most of them keep gold as one of their primary assets it's on their balance sheets they don't


get rid of it the federal reserve has had the you know they've got pretty much all of the u.s gold which is our gold by the way it belongs to all of us uh and the uh there was a hundred thousand dollar uh treasury notes issued to the federal reserve where the federal reserve can lay claim against all of our gold and the reason is if everything else fails they can go back to gold so if they stop printing currency today they could make the dollar fully convertible back to gold all of the physical paper dollars that


exist at twenty thousand dollars an ounce uh if they were to back all of the federal reserve created dollars which includes the currency reserves of the bank you're talking a price that's more than twenty thousand dollars and so um that would stop that would give the u.s dollar ultimate confidence again everybody would trust it it does they don't like a gold standard though it constrains government and the ability to do all of this deficit spending and and uh it constrains the world's central


banks they can't just create currency willy-nilly when they when it's fully convertible back into a quantity of gold and uh but it's interesting that after all these years the gold is still on the balance sheets of the banks and uh and uh it basically is uh if everything else is failing that's the thing that they believe won't fail and that's the reason they're holding it is because they believe what you and i believe also and and that says something so you know what will it take uh to for me to change


my mind and uh and say that i'm wrong about gold and silver there isn't anything you know if they uh destroy currency and take the stop printing and and reduce the currency supplies global will still end up doing the accounting if they get it below whatever the accounting would be at the current price then gold prices will fall measured in dollars but gold will still um purchase more stuff that's the thing it doesn't purchase enough stuff these days so the value of gold they could make the price of gold fall


by destroying currency uh it would go down but the prices of other things real estate and stocks measured in ounces of gold will be falling you know those prices will be falling faster measuring dollars measured in dollars than gold and therefore uh the price of those things measured in gold also falls and so uh there isn't you know that's still saying that i'm right in my thought that gold and silver are money they're the only thing that has always been money and they will always


be money and nothing else except for possibly some cryptos in the future but most cryptos are going to fail there's going to be some big winners out there i believe but they're different assets uh gold and silver don't rely on the internet to being available or electricity being available for them to function uh cryptos do uh cryptos though are much more convenient when it comes to settlement when you're paying somebody on the other side of the planet or whatever you know you can pay it's very easy


cryptos are if they became widely adopted uh it would make commerce very easy and it would take the big banks out of the equation because the banks have been you know we used to use cash and then from the 60s through today we've gone more and more and more toward credit cards where the banks get to basically skim about three percent out of every transaction that we're making two to three percent uh you know you don't pay it but the grocery store and the gas station and all of the merchants


do in order to be able to take credit cards they're paying a merchant fee and so the banks have inserted themselves between you and any transaction that you want to make as long as you're using a credit card and let's face it most of our purchases are done that way these days and so with cryptos there isn't that loss of three percent in every transaction the business is getting the full value of what you pay not 97 of the value of what you pay right good point so some day by the way


same with gold and silver by the way same with gold and silver it's just right it's over you actually have to have the coin in your pocket right right good point someday we will be exiting the gold and silver market uh for the most part uh that day is uh far in advance i think that day is not near yet but but there will come a day when we will exit yeah yeah um when uh gold and silver have done their accounting measured in value not measured in price measured in a single family median prices home


a barrel of oil shares of the dow the gold silver ratio and the uh gold held by the treasury or gold encumbered by the federal reserve and held by the treasury against the uh quantity of the currencies uh these things over the long term you know they go out of whack and then out of whack to the opposite side but there's an area in there where they balance and you want to try and ride this thing to where uh gold is as overvalued as possible and then uh buy things like real estate or oil wells


or a cash flow producing object so um that's my story and i'm sticking with it right very good the issue is when we get back to that accounting then we'll look about exiting the gold and silver markets but not until then and that'll probably be at much much higher prices so okay mike well this was a great input so thanks very much for addressing this topic and i'll see you on the next one thank you jeff we'll see you later