this article uh the federal reserve becomes the world's biggest investor and what it talks about is that their balance sheet has just expanded uh to and it hit a record federal reserve hit a new milestone in the race to have the largest balance sheet in the world and they've been uh creating currency non-stop in 2020 just going berserk and then you get down to this chart and we'll go up to a close-up of the chart and they start with assets you know in the the size of the position of treasuries and then they go down to


the bottom of this chart and a t and t aig global 3m company there are now 22 913 items on the feds balance sheet here so uh what that means is that they're adding more and more and more complexity to their system they're adding more switches and buttons to push i don't know if you've ever seen uh one of these guys that spin plates but there's this long stick that sticks up from the floor some mounting platform and the guy will put a plate on top of it and start spinning it and then


just get that plate going and then he does another one and then another one and then another one and there's a certain point where you add too many of them and try to go back and keep these other ones spinning while you're adding another one just becomes too much and there's a certain point where they just all start to crash to the ground because they made the system too fragile and we are getting to that point where the fed has made everything so complex and so fragile that i am really concerned that we could


see a major uh you know potential collapse of the global economy because of adding continuous complexity into the system hi everyone i've got mike maloney with me here of goldsilver.com he's got an insider's update uh for all of our insiders so mike what have you got for us okay last weekend i sold three pieces of property i had at the beach here in san juan the other move that i made is i'm getting one more private placement called just a few years ago i was on a panel with jeff christian of cpm group and i


was talking about triple digit silver and he said that uh 100 silver was cocaine-induced uh uh fantasies or something like that do you think it's inevitable do you think triple digits absolutely mike i do think it's inevitable i i hope it lasts um you know there's a couple critical things happening in the world right now that is going to push the price and then of course you know people are wondering is it going to be investment demand i think it's just going to be industrial demand for the needs of the


human race you know when you have a metal that's dropping in production four years in a row now we don't know what the 2020 number is but it's going to be south of 800 million ounces and it hasn't been below that uh 800 million ounce number for five years consumption is still a billion ounces and going up uh you know by two or three or four five five percent a year and we want to go green we want to get rid of uh you know oil and gas we want to electrify the planet in new ways uh what do you think about uh some of


the things that have been changing recently on the commodities exchange the people that are standing for delivery now instead of just settling in cash and so on people don't know how tight these markets are we're talking about silver specifically you know i've had major silver consumers you know in my office face to face i've asked them directly how much silver do you use in a year they won't tell me they're paranoid that you and i are going to find out how tight this market is they're paranoid there to


see what happened in the cobalt market or the nickel market or the uranium market or you know any of these markets and all of a sudden you know the hedge funds decide to front run industry you know because uh um you know they do that and i'll list them the price of that commodity skyrockets in price and it's not in the best interest of samsung or sony or tesla or you know whoever the case may be to have you know one of their key commodities you know go up by five or ten times so they keep this information very very


tight and the banks know what the demand is so you know sony's given their order to jp morgan to deliver x amount of silver to whatever ports around the world over the next 12 months period so that supply is in place jp morgan's got it from a miner they've got contracts in place they know where it's coming from and and they then they know the margin of error they know okay if we somehow can't get it there we have an alternative to get it there and so on and so forth but it's all the


banks control the entire supply chain of the precious metals silver and gold and and they control it very well but if something an anomalous happens like all of a sudden investment demand picks up there's not enough refineries out there um to even meet that demand and the miners can't meet the demand either because they have commitments to to the banks so all of a sudden you've got the there's just no so any silver that's out there in any kind of retail form gets gobbled up almost instantly i did


get uh a lot of attention a lot of feedback on the article i wrote on currency creation versus boolean production and we'll throw the first chart up there but basically i was amazed at how much currency creation the fed just the fed not even the other countries are gonna the fed is going to do it's gonna be 120 billion dollars per month um so i thought i'd com pardon me i thought i would compare that to how much gold and silver we produce on a monthly basis and you'll see from that first chart


it's not even close we produce 13.6 billion per month in gold based on last year's production levels only 1.2 billion in silver per month again compared to 120 billion in uh currency creation so mike what's your reaction to that it just flabbergasted me but what do you think about that yeah it's it's absolutely amazing that uh the especially when you look at silver basically silver is running at a rate of 1 100th of currency creation and one of the things that i don't think


you just covered jeff was that the gold and silver this is global production am i correct it is that is global production so it's not even an apples to apples comparison right and this is the the currency creation is only the us it's not global if you made this global uh the silver production wouldn't be one 100 to be what like 1 300th or 1 500th of the uh of the total currency creation that's going on on this planet uh what this chart really brings out for me is uh the the very high value


of silver and how it's it currently undervalued it you can see in this chart that it should have far greater value and the day that we have monetary demand when people are going back to silver to protect their assets you know when gold reaches a certain price level and people think well that's really expensive compared to what it was just a few years ago they're going to start rushing towards silver and that monetary demand is going to just make a huge difference i'm expecting an explosion


what i plan on doing when a whole bunch of factors and i have 21 different indicators that i've come up with over the years and i'm keeping a lot of them secret because if you richard russell used to have his uh primary trend indicator and he wouldn't let anybody know what it was and it was right most of the time because he said if you let everybody know what it is it stops working if everybody starts trading this thing all together it stops working so uh we're going to develop these that um use a set of


uh fundamental uh indicators a set of indicators as far as the environment goes negative interest rates and stuff like that uh a set of indicators that are confirming indicators uh and then what i plan on doing is figuring out what percentage of my portfolio i'm going to sell in tranches and what i plan on doing it could be anywhere from 20 to 33 of my portfolio that i sell but then when i sell again i'm going to be selling the same percentage of the remainder so you never actually get down to zero that question


will i sell all when it reaches you know and go into the next asset class no i'm always going to have some gold and silver left because i plan you know as this goes up into this bubble trying to capture around that peak through these indicators and not letting emotion get me out too early or too late at goldsilver.com we have a price match guarantee free shipping and global storage options get the best-selling book guide to investing in gold and silver for free at goldsilver.com