so this can go on for a while but it is a signal that the wind has changed hi this is mike maloney and i've got jeff clark and chris martinson with me for our weekly round table discussion i guess it is and jeff's the moderator take it away jeff okay great to be back with you guys and chris hi how are you doing i'm doing really well thanks it's great to be back with both you guys as well you know there's so many things happening right now that i'm really glad that we're


doing these weekly calls because we're getting hit from so many different angles in society the economy our currency so there's a lot to talk about so i'm glad we're here so let's jump right in and the first topic i'd like to throw out to you guys is a couple articles on just how fed up some citizens are and how much they're suffering because of a lack of progress being made by congress this article here in cnbc talks about we're going to lose everything and it's kind of sad to read


about all the different anecdotal reports of people that are genuinely hurting through really no fault of their own and then here's another article that talks about millions of americans are facing longer periods of unemployment guys this doesn't sound like anything that's going to resolve anytime soon but my question to you guys is how much of the blame for this do you lay at government that this is dragging out so long uh mike what do you think well you know like i've said i think


we're in for the greatest depression i think that's what's coming and the big problem here is government is government and central banks are going to try and beat this through currency creation and manipulation of the economy now it's a real quandary and if you uh like i've got a friend here that runs a business uh where he supplies flip-flops and he's the there's there's him and there's walmart if it isn't sold at walmart they come through him he's and uh his


business he's been in business for like 30 years uh and they're currently somewhat shut down because he can't get his employees to come back because they're making more uh with the uh the payroll protection uh plan and unemployment and the other benefits uh but at the same time it sounds mean if you say those things but uh there's you know um another friend of mine has a cousin that's a long-haul trucker and he's getting paid more to stay at home than being on the road and he just


loves it and he said he's not going to back to work until he's absolutely forced to but there are people that are really suffering out there also um you know we've we've seen a lot of the currency uh like in puerto rico you don't have to have paid into unemployment to get unemployment here if you're not working you can get unemployment and so somebody that used to mop my floors and things like that he uh suddenly he was really suffering for a while he lives in government housing


he gets food stamps but he didn't have any employment so there's no excess cash coming in and then he uh suddenly uh gets all the back unemployment and the uh the payroll thing and so the benefits and so he goes out and he buys this like uh 15 or 20 year old car that has uh 5 000 worth of wheels and tires on it he got 7 000 and he spends it all at once and now the car is for sale because he can't afford it the car was actually more than the seven thousand dollars that he got uh so one thing about


it is uh when you put currency in the hands of the poor they spend it right away so it does go and stimulate the economy but you know this is a really tough thing and i just don't see you know there's a lot of businesses that are going going to be folding and i see higher unemployment and uh when those people are unemployed they can't afford to go to a restaurant and they can't afford this and they can't afford that and so it's a downward spiral same thing happened going into the great depression


a very good point chris what do you think uh congress adjourned without any kind of stimulus deal uh how much of this blame do you lay at their feet or is this just bad luck no no this is 2008 was uh uh was sort of our our trial run for this and we had a lot of learnings from it the first was that if you just bail the banks out it makes people mad and it doesn't really do anything stimulative because what do bankers do well if they get a 10 million dollar bonus check what do they do well they


make an offshore account the panama papers taught us that right they just squirrel it away somewhere and all of that mike's absolutely right if you want stimulus you got to get it in the hands of the people and guess what if you put a thousand dollars in the hands of a poor person all you have to wait is like 24 hours and it's going to be in the hands of a banker eventually right they'll pay their mortgage they'll buy something it'll trickle up very very quickly but again both on the fiscal side for congress


absolutely ruinous policies they came up with this horribly conceived ppp program they're like oh well you know chris you know everybody we had it's hard you know we were operating under such pressure i'm like yeah but surprise surprise all the people who you look at who got the ppp loans and it's like hedge funds money managers wall street firms giant corporations you know it's just it was so poorly conceived that i think i could have done worse if you only gave me 28 seconds but give me a good 45


seconds i could have done better and so could have been average american that's why average people are getting mad they're getting really angry and the small and medium-sized enterprises are just getting absolutely screwed at this point in time so leave it to jay powell i call him pants on fire that's his middle name leave it to jay pants on fire powell to find a way to make marie antoinette a sympathetic character in history because what he's doing is like a let them eat stocks moment as i put it right


let them eat cake he is absolutely six six six billionaires now have over a trillion dollars thanks to jay powell who's like well what are you gonna do we got to make the rich richer right it's such an atrocious moment of history um are they making it worse yeah with extra gasoline on the fire wow yeah good point okay thank you guys let's switch gears real quick let's talk about the us dollar because mike as you pointed out in your video yesterday it broke down through a key support level


so it looks like it could be heading lower uh this article talks about uh the uh the war against the us dollar is heating up and of course this is something that's been going on for some time but in this article he points out how it's it's on the increase that the us is actually vulnerable right now for a variety of reasons and he reiterates what goldman sachs says that uh what the us is doing is creating real concerns around the longevity of the us dollar as a reserve currency so mike what's your view of what's


happening with the us dollar both in the short term and in the long term uh well i've written many times on this and i've made so many presentations on it this is just basically what's happening right now is the mainstream is just catching up with what i've been talking about now for the past decade uh this is the uh death of the global dollar standard it's slowly playing out and there are nails in the coffin and the article is just a report on a couple of more of the nails russia is now using


more euros in trade than they are dollars and that's going to continue uh and there is you know i think i can't remember which episode it is i think maybe it's episode six of hidden secrets of money but uh we show that uh you know most of the dollars that exist exist outside the united states and we create dollars and we buy stuff with them they flow all over the world and when those uh foreign entities don't need those dollars anymore they come back to the united states and they buy stuff and so


once they you know we're gonna the fed is gonna try for positive inflation numbers fighting the deflation that is trying to happen right now and they're creating currency but there's another like storage account of currency in all of the us dollars that are being used for international trade by foreign entities and when they don't they no longer need those uh dollars it'll be just like uh when japan was having their blow off top in their economy their big bubble back in the late 80s


they came over and they bought rockefeller center and the biggest buildings in every city they bought sony studios and the price of that a class real estate and so on uh was pushed up into bubbles because of it so we can have a hyperinflation uh even if they're not cr even if the fed turns off the switch if all that currency comes flooding back trying to purchase assets uh we'll we'll see asset prices pushed uh you know they're already in hyper bubbles right now where can they go past hyper i don't


know right that's a good point and that's a scary thought it isn't that we're continuing to create currency it's that there's already a lot of currency overseas and when that does come back that could get that could be very ugly for americans chris what's your view on all this well uh short-term dollars under a lot of pressure for a lot of good reasons um you know currencies as they've been well described are are best thought of as uh skydivers falling at different rates


uh you know and the united states is falling a little faster right now for good reason right uh we've got a fiscal nightmare we've got a um a monetary currency nightmare but that's kind of balanced out the ecb is is being uh just as much of a basket case on a currency side and then we've got this november election coming which is no matter how it parses out no matter what happens it's going to be contentious and i think a lot of our trading partners have begun to lose a little faith in the united states


and that's important because the dollar like all fiat currencies is a faith-based currency i think what we're recording here short term is is just the loss of faith um in the us dollar and uh for all sorts of good reasons but long term you know this has been you have to understand debt and currency are sort of two sides of the same coin and mike talks about this much more eloquently than i do but i track those those two claims debt and currency i track him against real stuff and that's when we peel back the


curtains we see real stuff is just not in in supply anymore because the flip-flop king isn't making flip-flops because he can't hire his people back and truckers aren't trucking there's all kinds of people not doing stuff making real things and we're in this fantasy world that's like well if we just print enough currency somehow that makes up for it because money is real currency is real and stuff just magically appears right well i think we're gonna see long term the breakdown in that magic


which is the illusion that currency is the same thing as wealth it's not real wealth is not being created right now and that has to balance out at some point the only open question is do we have a punishing deflation first before we get to the hyperinflation or do we just skip that first part go straight to that inflationary part that's the only open question i have right now well both are ugly scenarios and while all this is going on the s p 500 just rose to a record close yesterday wiping out all its losses from


the yesterday meanwhile apple just this morning uh became the first u.s company to reach a 2 trillion dollar market cap and while all this is going on we have another article that's pointing out that ceos and a lot of insiders are selling stock in fact they're selling stock at a pace that is faster now uh then over the past 14 years since 2006. so there seems to be some sort of dichotomy going on here but what do you make of this of the stock market roaring to new all-time highs yet ceos are selling


mike well you know my very first video back in 2000 august of 2005 i was giving a presentation at the silver summit and i showed the insider buy sell ratio had exploded to record numbers uh that was 2005 and it wasn't until the end of 2007 2008 that real estate real estate really started to collapse the stock market started to collapse so this can go on for a while but it is a signal that the wind has changed that uh there's there has been a dramatic turn in the economy uh when all of the


insiders are unloading their own stock good point yeah chris what do you think stock market all-time highs apple with true 2 trillion dollar market cap but insiders are selling you know what they say the first trillion is the hardest when did apple hit trillion it was just a few months ago right so um uh we're clearly in a giant sort of a blow-off bubble again i don't know if we're sort of seeing that the u.s stock indices begin to mirror what we saw in venezuela's stock index now venezuela


has like this amazing stock index if it was the dow you'd say wow that what we all must be rich because it it increased by something like 600 000 uh over a period of time that sounds great the problem was inflation had increased by 2 million or something so it was actually a loser in that story i can make an argument for why uh currency is flowing into stocks but what i can't do is make an argument to say that tells me something important about the economy like uh vice president pence just


tweeted out this morning excitedly s p all-time new high you know we're back baby uh and the answer is no not necessarily if if that's just a fictitious rise brought about by central bank printing which is what this has been and so the next question is does that really show that we're on the on a path towards recovery well no if it means you know just the rich get richer relatively speaking but more importantly those are all the price of stocks is a claim it's a claim on the production of of the


of the earnings of companies it's a claim on the output of a nation that those companies are housed in all those claims well jeff mike when i peel back the curtains i i see less and less stuff being produced you look at auto sales true new home sales are up because people are leaving cities but now we've got the corresponding empty apartments in the cities where those people just left we see trade balances down all over the place and so the real production down claims against it up we've seen this story


before i'm not just suspicious of it i'm with the insiders i think you ought to be selling that story there you go yeah can i make one more comment on that jeff yeah real chris you brought up apple and uh apple is issuing a whole bunch of bonds taking on more debt so the federal reserve can buy a bunch of these bonds through their special purpose vehicles and uh and then they're using that currency to do stock buybacks so there's fewer shares increasing the value of the shares of those insiders so the


insiders can dump them on the public right yeah right good point so i think the message today is obviously we need to be prepared and both mike and chris have free books we'll throw the links up on the screen here for you to help you get prepared uh this is not over there's a ways to go we will be back next week the three of us together talking more about the most crucial issues of the day so thanks everybody for joining us we'll see you next week and thanks mike thanks chris thanks jess all right bye