when uh five or ten percent of the population don't trust the us dollar or trust the federal reserve this whole thing falls apart hi this is mike maloney and i'm here with jeff clark and chris martinson and we're going to have another discussion uh jeff is the moderator here and he uh has picked some stories to talk about jeff how are you doing i'm doing great it's great to be back with both you and chris mike so uh what an interesting week last time we were all together we were all talking about all the new


records that gold was making and silver and now we're talking about a big correction so the first story i want to throw out to you guys i think we need to talk about is this one on uh bloomberg that's talking about gold had its biggest drop in one day drop in seven years yesterday now gold and silver are rebounding today gold's up about two percent silver's up about five percent but i just want to throw out to you guys is the worst over with this correction with gold and silver now


what do you think chris well uh first up uh i i love how uh bloomberg always reports with glee whenever gold goes down they make sure to get that headline out there right away sort of a sort of a u.s sort of a thing you won't see those sorts of headlines in india for instance but uh the second thing is there's gonna be a search for an explanation for why this is and they might say oh it's because treasuries did this or investors that or vaccines or something the truth of the matter is is gold is


still a heavily manipulated market uh when you look at when it started to fall when it started to correct uh it was in the overnight markets and we now don't have markets where price discovery happens that's for stocks it's for bonds it's for gold and silver and things like that what we have is most of the price movements happen in the overnight markets which is all electronic computerized trading very thin markets very easy for price manipulation to happen cftc nowhere on the job they haven't been for


more than a decade sec nowhere to be found nobody cares so when i see these price drops happen in the overnight market my analogy for that uh is this it's kind of like the oklahoma sells cattle that's the daytime market but uh in hawaii at two in the morning cattle suddenly you know cratered and priced and oklahoma wakes up and finds all their cattle are worth ten percent less it's silly but that's how it works and uh so we all have to report on it and talk about it that's kind of how i see it yeah what do


you think mike is the is this it for the correction uh well you said that that they were saying that uh this was the biggest price drop in 70. did they say price drop or percentage drop because a price drop from 2000 is very different than a price drop from 1000 that's you know you always have i mean the dow either goes up or down by the biggest prize points you know amount of points in history but the crash of 29 was much much bigger even though you know those drops that even though the percentage uh


or the price differ the point difference was almost nothing compared today but the percentage may have been 10 times uh so that's one misleading way that the general media uh sort of suppress it bashes gold they just for some reason uh they love to bash gold and i have no idea why but when it comes to uh them blaming gold's pullback on rising bond yields making bonds more attractive and gold less attractive you know you take a look at like the the trend over 50 years and one of the things that you see


is that suddenly bond yields this is something that's broken there's something very very wrong when you take a look at the long-term trend but then if we zoom up uh and look at one year you can see that this rise was insignificant it really isn't anything and i think chris is exactly right that this is manipulation in the overnight markets that does it however gold and silver were severely overbought and if you look at a long-term chart they were going parabolic and climbing at a faster rate


than they were when they peaked in 2011 or pretty much any other time and so it was basically time for them to take a little rest however if you look at the commitment of traders and stuff the the um the big bullion banks were getting slaughtered and so they have to stop it crush it down and then cover their shorts uh do you agree with that chris oh absolutely that that's the game that's been played here and so um what i'd love to get your perspective on and and jeff as well to weigh in on


is is uh where are we on on the actual physical supply because we know they're getting crushed on their paper trades and all of that other stuff and they rarely lose that game because they've got infinite amounts of paper and they can throw it in at 1 30 in the morning and everybody goes oh what happened to the price of gold well what i've been increasingly concerned with is well where are we on the physical side um because that was the part that was starting to really catch my attention


was that i thought maybe 2020 could be the year we see the the infamous comics default meaning you know there could be enough deliveries happening out of the comics warehouse stocks for silvers particularly but also for gold that we can actually see that position where the bullion banks can throw all the paper at it they want but if they don't have the actual physical and they can't find it that's where the actual price explosions happen what what are your thoughts there well you know have you read aleister


mcleod's recent article on uh gold at 2k plus what's the fuss have you read that yes i have yeah excellent analysis of the uh shell game that they are playing with uh you know there there is a lack of liquidity at the major bullion exchanges on the planet and it's a shell game and it's a fractional reserve shell game and then uh today there's been some tweets uh i guess gld came out with their report and in it they talk about uh the let me see i think i've got it up here on one of my tabs


gld was using the bank of england england as a sub-custodian and the greatest amount of gold held by the bank of england during the quarter ended june 30 2020 was uh 2 million 251 607 ounces or 6.3 percent of uh gld's trust uh may 21st it was half that and their conclusion is that this is leased gold it's not you know it's it's they're leasing it from the bank of england that where did all that gold suddenly come from uh uh it's it's just interesting the shell games and if you read like


gld's perspectives there is so much room there for them to uh play with goal with uh manipulating what they are claiming is their holdings uh it's so yeah there's a liquidity problem uh we're we're in for some there's going to come a day uh i'm hoping it's not this year i'm i need more time to prepare i know people hate that whenever i say i'm you know i've been looking forward to this pullback because i can add to my position i can prepare more but i'm not fully prepared yet and uh


uh i i'm more prepared than 99.9 of the population just as you are but you are more prepared than i am currently chris because of your uh you know you moved to a farm and uh you're getting ready do you think that the global financial system could freeze up do you think this is going to be much worse than the lehman crisis well it's really a binary outcome and that's what i'm hedging against with my personal preparations if you know if i turned the camera to the side you'd see


pigs and chickens and cows i never thought i'd be here i'm 57 what am i doing i'm playing farmer all of a sudden you know it's just not what i had in mind um but here we are and and the reason for that is i do think it's a binary outcome either this works or it breaks and even if it works i'm still kind of squinting at that because i think that just leads to a crack up boom and ends in its own failure eventually so you know is it do we fail now or fail later i i got to be honest i'm


kind of hoping to fail now because i'd rather fall off the fifth rung of the ladder than the 12th rung you know yeah um and i just feel like every time they extend it extended extended it just feels worse and worse and worse to me you know um and and so that's that's why that's why i got that's why i'm farming it does feel worse to me uh except i think they've already passed the point where uh they could actually have a positive outcome on anything uh by blowing the all of the almost all


assets into hyper bubbles and having spent not just spent any savings that we've got but but going so far out on debt and leverage everywhere in society uh that when there is the inevitable inevitable banking crisis uh i i think that the whole world monetary system actually could just like fall apart and they'll be scrambling to try and figure out something i'm hoping that they look around they go well what worked before well that was gold the us claims to have the world's largest


uh stockpile of gold so uh you know hopefully we can get through this but backing currencies with gold again would require an astounding gold price so um what do you think i mean you said binary outcome binary outcome is uh we either get through this and the dollar survives or we go into like uh you know we could go into deflation and then this huge hyperinflation the crack up boom that you're talking about and at the end of every hyperinflation is the ultimate deflation because the currency goes to zero


that's a deflation you know the end of a hyperinflation is deflationary for the economy um so uh binary outcome what do you put the uh you know where do you fall as far as the uh the probabilities of outcome oh well thanks for asking um i just put out a piece last week uh at peak prosperity where i adjusted my odds i i'm never all in i don't put all my chips one side or the other but for a long time i've been hewing to sort of a 50 50 deflation inflation like it's cash in gold and


silver like that was sort of my portfolio for too long embarrassingly too long and i've started to adjust that now and i'm tipping myself more towards the inflation side because i've been waiting for this big deflation it started to happen in march it really should have happened i think it's still happening you look at all the small and medium-sized enterprises that have just boarded up and gone away and and the people who aren't paying their mortgages or rent i mean the deflationary impulse ought to be there


and every day i wake up and the s p is up 40 points and the dow's up another 300 and they're plowing to all-time new highs and and so that just tells me that the central banks are all in on just printing and as they do that i start to shuffle a little closer to the inflationary exit you know in in my in my holding so that's where i'm at i'm busy you know sliding that way because i i'm no longer 50 50 on this i'm more like [Music] i still think deflation's a possibility


but it's less than it was just a month ago on that topic chris here's our our next article and that is one-third of american renters are expected to miss their august rent payment that's huge a third of all renters in the united states are not going to be able to make their rent payment this month so chris we've had a second wave of is the economy about to get a second wave of deflation well this is the troubling part jeff is that it's really a tale of two worlds we wake up every day and see the dow up


hundreds and hundreds of points and and and the nasdaq and all of that uh and ostensibly that's telling us that things are awesome but the real economy we're seeing stories like this just piling up all over the place uh you know and and the the really mysterious part about this that i haven't quite solved yet is that somehow in all of that environment apple reports record iphone sales across all sorts of you know geographies i'm like how is this credit card debt is coming down people are reporting that they're


saving more they're not paying the rent but i guess they're buying iphones i don't i can't something's not quite right in this story uh and you know so so it's just confusing and so as it becomes more confusing like that i i'm convinced that the real economy is busy you know shaking itself apart but they the authorities they're just going to throw as much money as they have to to make sure that it appears to be okay especially in an election year and that's the thing i worry about is


that there's a magic moment where you throw too much financial stuff in and you can't get it back anymore the genies you know out of the bottle and i think that's that's why i'm shuffling slower you know a little bit more heavily towards inflation on this outcome because easy in no way to get it back out again without crashing everything and they don't want to do that yeah what do you think mike uh a third of all renters in the u.s missing their august payment does that suggest maybe a second


wave of deflation or you lean more toward the inflation outcome here for the rest of the year um well gold did well during the great depression uh there it has a record of doing well in deflation and inflation silver isn't quite as good in deflation but i am heavily in for every ounce of gold i own i own more than 500 ounces of silver i am much more skewed toward uh crisis hedge not inflation or deflation hedge but crisis hedge and i would say that i'm not 50 50. i'm like 90 10 and and and heavily towards silver


but yes i did some videos recently uh it it had the name of a very large country in it on the title and i think that we got uh throttled by our hosting service for our videos i don't want to say anything that that could get this video throttled but i recommend going and looking back a couple of weeks for a video that has the name of uh a very very large country in it and uh i don't say the name of the uh the global health problem that the world is experiencing right now either because i think that throttles


our videos so i'm very very careful what i say now however in that video i show this an enormous real estate you know i went to i shouldn't have said that uh back in uh back in dan can just bleep it out um back in 2013 and showed the ghost cities and the real estate bubble and they've continued that process and the process has worked out eventually all of these empty building i mean they take just like a couple of square miles and they build uh all of these skyscrapers of apartments and malls and


everything else and they and eventually all of that gets sold to investors that are hoping to rent it to somebody and this has so far worked out except uh the things that uh we buy that we cut back on if there's a problem tend to be the luxury items uh you know you still try to pay your rent and here we've got 30 percent that can't pay their rent uh do you think they're still buying big screen tvs and all of the other things that like the iphones that chris mentioned that just seemed


very very weird that there's these big profits and all these people buying iphones that seems bizarre to me i just don't think it could happen but they have the highest vacancy rate in the world uh and this enormous real estate bubble and there everybody is betting on this the entire economy is revolving around it and bleep that dan uh and uh so if we have a problem with real estate uh here which we're going to it's going to cause a banking crisis it's going to overflow over there this


is going to be a global event it's going to be huge i think it's going to be much much bigger than the lehman crisis uh and i have a feeling that we're going to have the um i'm preparing at least for the financial system frees up maybe it'll only be a day maybe it'll be a week uh but or or the you know chris is in a pretty good spot with with what he's got uh going with the farm and everything he's prepared for like uh the tail risks the ultimate tail risks of like a total collapse of


society even and i want to be there and i'm not yet so uh anyway what is your opinion on it uh jeff and how are you skewed as far as your holdings what are you betting on most what's your gold silver ratio and what's uh what you know are you betting on inflation deflation or a crisis that's a great question i'm betting on crisis so i think i win whether we get win in quotes whether we get inflation or deflation i'm betting on crisis that authorities will not be able to solve


this problem that there will be more currency printing that they won't resolve the debt and deficit issue uh and maybe even some geopolitical thing blows up so i've disclosed before but i'll say it again the only assets i own are physical gold physical silver uh cash treasuries and mining stocks yeah that's it and and a little bit coin i mean that's it i'm you know i'm kind of all in if if one can say that you're all in on something but i think this is the time to clearly


be overweight a crisis hedge a government hedge if you will and so that's that's where i'm at and uh i i actually feel comfortable with that and as you and i have both pointed out in a previous video mike uh we both sleep better by being positioned that way so let's try and sneak in one more article if we can okay i want to say one thing chris you said that you were 50 50 but you're actually skewed much more toward crisis because you're not including the farm in that 50 50 mix


you're only talking about your financial assets am i correct that's correct that you're very much correct in fact uh if you if you track the number one thing that i've been throwing money at is if the money had no value currency had no value is uh is uh farm and stuff i'm building my soil up i got some tractors now uh you know anything that that's sort of farm-related i just like oop i just i authorized that expenditure in my head and so that's it's uh but it's hard assets it's just a


different hard asset play so you're right um yes the the the farm is not just a crisis edge it's also beautiful and i enjoy it and gives me high quality of life so so it hits a lot of cylinders for me very good let's see if we can sneak in that one last question guys real quick i don't want this to be too long but i really want to get you to weigh in on this because this article says the fed is continuing to buy assets chris as you were pointing out earlier they're buying uh blue chip bonds and


they're also buying junk bonds this is just astounding to me it drives me insane they're not buying this they're not they're not buying that some emerging central countries are they're printing this but what are they buying they're buying this junk this is my wastebasket this is what the central bank of the united states of america the world's reserve currency is actually buying i mean mike and chris am i insane or are they chris what do you think they're insane and i'm


i want to announce uh actually that i'm offering chris bonds i absolutely promise not to pay them back uh guaranteed losses right there and uh be very stimulative especially for the wealth gap so i think the fed should be attracted to chris bonds very very strongly at that point this is insane like literally if if you pinch me and i woke up i'd say wow that was a crazy dream nobody will believe it it's yes we're there where the federal reserve is buying blue chip bonds with some weird rationale like walmart needs


our money uh you know yeah right um apple needs our money and uh and junk bonds too so yeah it's just it's crazy time and so the question for everybody listening is what's what what additional sign would you need to see to say that's it we're you know that's the last road sign you know this says bridge out and i better trust it right so i i mean mike what what what more do you think people would need to see to say they've gone insane and i don't want to i don't want to be


part of their uh accident um you know when it finally arrives i think everybody has different vision uh i always had 2010 visions so i could see from 20 feet with the average person had had to stand at 10 feet to see so at 20 feet my vision was basically twice as clear everybody has different vision so for me the road sign just passed i mean what jeff just said was hilarious and what you just said was hilarious and that is like uh you know there's there's a bridge out or at least it's got


big cracks in it and i don't trust it as you said uh but for a lot of people their their vision on this is very very different so the road signs it depends on when we get to some breaking point and is that 5 of the population is it 10 but there is a breaking point and it's not 50 percent when when uh five or ten percent of the population don't trust the us dollar or trust the federal reserve this whole thing falls apart well said yes very good so thank you both uh for joining me today uh you both have free


books uh mike's if you haven't read it you gotta read it it's from 2000 he updated in 2015 just go to goldsilver.com free book and chris what's the url where can people find your free book come on by peakprosperity.com prosper and we've got a download there for you prosper talks about uh what to do that's great thank you guys i really enjoy this i hope everyone else does too and i will see you guys next week bye bye thanks jeff thanks chris