hi this is mike maloney and i'm joined once again by jeff clark and adam taggart jeff what have you got for us today we've got lots to go over our usual slate of things uh mike so adam thanks again for joining us this week highlighted my week guys article of the day tweet of the day chart of the day a great um some wonderful viewer feedback and a great meme so stick around for that so guys we're gonna jump right in and this first for our article of the day actually appeared on cnbc the title is forget gold there are


better ways to play precious metals according to one cio chief investment or uh information officer now this article to be honest isn't that great it's just a journalistic piece about uh you know a journalist interviewing a cio about why he likes gold and silver the reason we're bringing it up though is because this appeared in a very mainstream article uh a mainstream source and it talks about why this guy likes gold but why he likes silver even better so it's very interesting that you know a


by silver message appeared on a mainstream journalistic piece so mike what was your reaction to seeing this well that says that you know that there's uh three stages to any market uh and the the first is where the the public the the general masses think that you're crazy for being in it that's where it was when i jumped into precious metals in 2002 everybody thought i was nuts so the the first phase has tremendous doubt and and everybody does not believe in the market and it's only the really


smart money that moves in at that point and takes a position and then there's a second phase where it starts to get some notice and starts to get written up uh and starts a legitimacy and people start believing in it but most investors still don't do it and then there's the third phase the blow off top the final phase where it's the no lose where you you know just buy real estate because it goes up forever uh back in 1999. buy buy tech stocks because the dot-com this is going to go on


forever this is the hut and that's when everybody gets slaughtered so there's three phases and this shows that silver is uh finally uh getting some notice this is the first one we've seen on really mainstream uh press here this is cnbc and you know it says basically the title should be forget gold by silver and um then down here in the bullet points right below the the beginning of the article it says over the last year gold has risen four percent while silver is up over 70 well part of that is


what happened during the market crash of the pandemic but silver always exaggerates whatever gold is doing whether it's rising or falling so i found it not a great article and not really well written it's written by somebody that really doesn't know that much about it just reporting on uh the answers she's getting from somebody she's interviewing and uh but but it's excellent and the very fact that this is getting written up on the mainstream is amazing and confirms that we're in that second


phase of silver's uh big bull market what do you think adam well i think you know her her focus on silver was um it's a commercial product it's commercial metal and um and commerce is increasing in the recovery here and she's not wrong with that there's a couple really important points that underlie that one is increasingly we're finding that the success of the digital economy the googles the amazons the apples etc is is increasingly becoming limited by constraints in the physical economy like


the actual infrastructure and distribution and transport systems um that they are have been either under invested or they just can't keep up with the growth of the digital economy and so that's where a lot of investment is going to be in going forward and you know if you just look at president biden's recent two plus trillion american jobs plan it is filled with green projects um like i think like 174 billion uh to quote unquote win the electric vehicle market uh another 100 billion to


re-energize the u.s power grid you know both of those are going to require a lot of silver because silver's the best conductor that's out there so i don't think she's wrong i think there actually is going to be a lot of commercial demand flowing into the silver market at the same time that we believe there's also going to be increased demand for it you know on the monetary side to protect against all the currency inflation that's going on out there um one thing in the article that she was


saying yeah you know gold's the bloom's coming off of gold because interest rates are rising and higher interest rates are bad for gold she's missing an important half of the equation which is really what matters for gold is what the real rates are and if inflation is actually if the rate of increase in inflation is outpacing the rate of increase in interest rates which i think we believe it still is right now um then the actual real rates are negative and that's actually really gold


positive so while i think she actually makes some good points about silver in the article i think she kind of misses the vote on gold uh by by missing the real interest rate factor the other thing uh about the interest rates though it isn't just uh real rates but it's real rates plus what does the public what do investors think about what the federal reserve is doing and whenever they create huge currency whenever they take interest rates further you know down or negative how does the public feel about uh the


manipulation of the economy and then when a crisis happens uh you add negative real rates plus uh plus panic plus panic right these actually those are multipliers and uh and then to uh speak to your comment about uh the uh economy that the government you know the government is going to do all of these green things that are going to use up a lot of silver that's true and in a growing economy that would be you know if that would be good for silver but if there's also a crisis this is government mandated spending that will


happen they're just going to create the currency for it so it creates an artificial demand for silver but most silver comes from mining base metals and so if there is a simultaneous collapse in the markets if there's a crash if there's a big pullback in the economy it means that there will be less uh car batteries being made so less lead mined uh less pipe for plumbing and copper wire for electricity so less copper being mined all of the base metals uh would have a the base metals that uh have silver


as a byproduct that supply would go away just as demand is going up because of monetary demand plus this demand that's artificially being created by the government that's a really good point i i hadn't even thought about this artificial demand created by the government yeah and what's kind of interesting mike is is you know silver almost is sort of like having a straddle it's almost like having a a put and a call option so in other words if if all of this new you know government stimulus goes into these


infrastructure programs then yeah that's gonna you know boost up the demand for silver and other base metals and whatnot but on the other hand if we have this sort of breakdown in the system that we think might actually happen uh that benefits silver as well because as you said you know all the mining of all the base metals and everything stops and the supply shrinks so silver's such a fascinating asset because it has all of these different elements to it we shall soon find out if silver's second


phase has kicked in so stay tuned uh well guys on to tweet of the day and this is from uh galactic trader and he says the comex registered silver he's referring to registered ounces hemorrhages two million more silver ounces and 1.9 million ounces is out of the vault uh implying that it's been uh delivered on uh registered is now down to 32.5 million ounces or 22 percent since the start of the silver squeeze the sprott fund now has 20.9 million ounces more silver than the comics and you can see this chart he


shows here that yes sprott's fun now actually holds more silver than the registered ounces at the comics this is quite amazing so there's still the eligible category at the comics registered as what can be taken delivery on immediately and that category is actually now lower than the sprott fund so what's your reaction to seeing this yeah you know i look at the chart and to me it shows um it's one of those where a picture is worth a thousand words right it shows that the little guy


actually does have collective power um you know you look you look at that chart at that very attributable to the first silver squeeze um so it actually did make a real difference in beginning to drain inventory out of the comics and you know sometimes as when we're individuals taking action we're not really sure that our one little step really matters well this shows collectively if you participated in that first silver squeeze it it actually did and it actually made a real difference and so i think you know as we have this


another second silver squeeze coming up and who knows maybe there'll be more in the future you know i kind of ask myself like well we look at the impact of that first one what percentage of u.s households were participating in that i think it's a fraction of one percent right so but it had that much effect what would happen if twice as many people participated this next time around right what if this actually becomes some sort of popular phenomenon and we get one percent of the population doing


this i mean it could really break the comic system easily at those levels so um i guess my my you know my comment on this to folks watching is hey if you're participating in this you're making a difference and if you're not participating in it but want to make a difference and join on in uh you know when you said one percent of the population there's your triple digit silver right there i just don't see how silver could stay uh below triple digits if one percent of the population tried


to squeeze into this minuscule little market because it is a tiny market uh tiny it is indeed and that's one reason why it's so volatile and why we're convinced it's uh on its way to triple digits so well if you're liking this video please hit that like button down there below for us and the notification bell as well so well guys on to chart of the day here and this chart says still cheap us debt service costs are historically low though set to rise and what this is basically talking about is the amount of


currency that must be paid on the bonds that the uh us issues they have to pay interest on that and it's showing that it's low now but it's set to rise which is the opposite of what happened under reagan and volcker back in the 80s so now this is generated from the cbo and uh i think mike will have an opinion on that but mike what do you think about this idea that uh interest costs are set to rise well um yes they are set to rise uh you you know you commented that the charts from the cbo


the congressional budget office and they have pretty much a record of just being wrong wrong wrong and wrong they get it so wrong all the time and their forecasts are always way too rosy uh the forecasts for the size of the national debt the forecasts for the deficits that and basically so this is the interest on the national debt this is what it uh we've got to pay to uh always refinance the debt and it's forecasted to rise out in the future and um i i don't know what interest you know


this rise that they're showing uh is probably just what's going to be due on this increase that we're having in the national debt but are they projecting permanently low interest rates the interest rates are almost there they're always going to be uh just one percent or two percent on on longer term bonds and practically zero on short-term uh notes and bills um you know i don't know but i know that when you compare the results to to the the when you compare the reality of the results a few years down the road


to what they said it was going to be it's laughable they're wrong i'll just join on that so i interviewed david stockman last week and for those that that may not be familiar with him he was a former u.s congressman he was actually ronald reagan's director of the office for management and budget and uh and man i mean it's harder to find somebody who's a bigger critic of what's going on right now in in capitol hill than david um and he was just blown away by the government's response to the


cronovirus where he said if you look at the impact it made on gdp uh the chronovirus the shutdowns et cetera kind of blew a 800 billion hole in gdp and the government decided to fill that with over six trillion uh in uh in stimulus uh and that's not even including the stimulus bills that haven't been uh brought into law yet been enacted so um you know government over response you might you might argue um but when we add up all those stimulus packet programs you know some of them are being done by the money


being issued by the federal reserve which is what's called monetary stimulus um but a good chunk of that increasingly is is money being spent by congress which is what's called fiscal stimulus and fiscal stimulus it really is congress borrowing that money and so that is new trillions and trillions and trillions of dollars since just last year that we're going to be have to be uh servicing that that debt interest going forward so you know unless interest rates really stay zero um these borrowing costs have to


rise this debt service chart has to go up going forward and mike you said and you're very accurate you know the the the the those estimates there by those government organizations are always wrong and always consistently wrong to the downside so um you know that this all this these trillions of new debt the piper is going to need to be paid and uh once rate starts rising and we all think that you've gotten used to the fact that they they haven't risen uh and we seem to think oh the government has it under control


the market can take the interest rate away from the central planners it's definitely happened in many points back in the past and we're seeing rates rise now despite all the stimulus that's been going on which is an early indicator that they may be losing control of this and if they do given all that new debt those debt service costs have to rise going forward yes you know one of the things you were talking about is these multi-trillion dollar programs that create base currency basically the fed has to


create these dollars to support these programs i want to sort of remind everybody that the currency supply before the crisis of oa was about 0.8 trillion 0.8 trillion not 8 trillion right and so to have any government program or or uh be going out to borrow currency issuing bonds uh and and to have a program that's 1.6 if it's measured in the trillions it's totally insane and it just shows you that we are in the middle of this giant car crash but we have not yet had the collision we're just out of control


at this point yeah great input guys so well on to some viewer feedback this is from zenity the employees at the fed must be like frightened meerkats at the moment busy scanning the horizon for the next black swan event that they caused is that right mike yes uh the federal reserve uh judging from their actions you know powell comes on tv and he looks calm but i guarantee you that there is a sense of panic and they just their their only solution to anything is to blow a bigger bubble and um there will come a day where the


market overwhelms all of their manipulations and on that day there will be the other half of the 2008 crash that they won't be able to control and it's going to be much much worse i think it's going to be one of the biggest events in history simply because it's releasing all of the energy from their manipulation it's overwhelming their manipulation and so i would expect contractions you know um if if they're not um comparable to the contraction after from 1929 to 1932. it's going to way surpass it so


i'm sorry i'm laughing because this is a tragic event and it's going to make everybody like i've said before if you if you can't laugh about it you gotta cry because uh what they've done to me is just totally insane you know uh people don't trust the markets enough to think well what would have would have happened back in 2008 if they hadn't manipulated things yes the markets would have uh crashed a little bit more and then they would have reached an equilibrium and they would have bounced


back from a a realistic level uh but they they say oh look we saved everybody our methods worked we we were right and they are just so wrong well on to a quote of the day here but first if you've not read mike's book you can do so for free the link is below and subscribe to adam's new exciting wealthy on channel the link there is below as well so mike uh give us this uh good quote of the day here okay i contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket


trying to lift himself up by the handle winston churchill this is absolutely true it has never worked but now we're going to try it again right thanks everyone for watching thank you adam thank you jeff we'll see you guys next time a great time as always guys thanks