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 [Music] [Music] I'm Charlotte McLoud with investing news.com and here today with me is Andy sheckman president of Miles Franklin thank you so much for joining me great to have you here again super nice to be back again thanks for having me really good to be catching up and our last interview so this was back in this summer was just a few weeks ahe of the bricks annual meeting and it was a really interesting conversation people should go back and watch that if they didn't catch it but you told us even if

we didn't get the brics currency announcement at that meeting like many people expected it was still going to be the beginning of a big change in the world and I think what you emphasized at the time was the sheer number of countries that were lining up to join the bricks not necessarily publicly but behind the scenes as well and so I took a away lots lots going on there and what stuck with me as well is your comments on logarithmic Decay so slowly slowly then all at once and what I want to

start with is and this is a big topic but what chipping away have we seen there since that last conversation yeah I didn't believe that they would issue a common settlement currency at the last meeting I I think ultimately they will the Finance Minister from Russia has told us that the end of that meeting they came back and said we're going to trade local currencies we're going to task the finance ministers with going back to the drawing board coming back to to the to the meeting which is actually

in October of this year coming up there's going be 200 meetings by the way in Russia over the next the course of the next 10 months and I think this is is something that is a foregone conclusion but much like they talk about in cryptocurrencies Mass adoption before it becomes accepted I think the same thing is true here where you have to have mass adoption in the number of countries that would join on to make it legitimate in the in the scope of GDP in the scope of military might in the scope

of of Natural Resources in the scope of trade routes globally all of these things are factored into the decision so at the meeting we found out that six entries would be admitted in and so far because a melee of Argentina he decided to stay out five have been formally accepted that would be Iran United barab Emirates Saudi Arabia Egypt and Ethiopia and when you look at where these countries are are in terms of their relationship to trade routs the Red Sea The Straits of Oro Etc when you look at

the amount of Natural Resources they possess or the size of their economic growth like Ethiopia is the is the vastest growing country in Africa uh Egypt is close to the Suez Canal and the Red Sea uh and then of course United barab Emirates and Saudi Arabia you don't have to say much about them in fact I do want to talk about the UAE after this I think it's really important but the chip ipping away would be we have subsequently found out that 30 countries are formally applied um little by little by little by little Mass

adoption and if you look at the countries that have formly applied you can Google it and find it they are every single one of them are rich in natural resources from rare earth metals to oil and gas to to liquid natural gas all of the things that you would need to build a war chest of legitimacy we find in these growing Union this growing Union of countries and so aside from that we've seen things such as um uh the um Saudi Arabia not only join the bricks but also join the Shanghai cooperation organization which

is the largest regional and Military the largest regional financial and military organization on the planet we've seen them tell the folks in Davos a year ago would be opened in taking other currencies for oil all of these things are shipping away little by little by little by little because it is the the pricing of oil and dollars through Saudi Arabia and OPEC that gives us the hemony so when you take a step back and realize it every single OPEC country is on the Belt Road initiative when you realize

that in the scope of one year a country like Iran has joined the SEO the Shanghai cooperation organization and fully been admitted into bricks sidest stepping sanctions when you take a look at 30 countries applying when you take a look at at the promise of a gold or commodity back currency one of the other things that I probably said to you at that meeting would be my guess or our last interview was that I would anticipate the Shanghai cooperation organization and the Eurasian economic Union joining bricks

and shortly after that meeting just a few months ago the president of Belarus has called for a summit to do just that these are all the same countries and so when you talk about Mass adoption and shipping away at the dollar Hemy you put all these countries together you have the majority of human population you have a much bigger percentage of global GDP you have two of the three largest nuclear arsenals on the planet you have all of the trade routes the Strategic trade routes in the southern hemisphere

covered uh including the Red Sea in the Indian Ocean and and now the north south passage uh which is a easier way to go uh arguably than going around the Cape of Good Hope or even using the Straits of hero you have options that won't be patrolled by the the United States Navy little by little by little by little by little you're chipping away at the dollar of gmany the rallying cry that's pulling all this together is the weaponization of the dollar and I would also argue the fact that we signed an

executive order to go green we Biden signings but by 2050 we're going to be green 85% by 2030 50% so we have enough in essence told the Saudi Kingdom and OPEC who who gives us the dollar hegemony by pricing oil and dollars that you know we're going to go green pretty soon and if you're on the wrong side of us we're going to sanction your funds let alone the fact that the speaker of the house and the Biden Administration and and the whole Senate is talking about confiscating the assets we

sanctioned from Russia instead of just sanctioning them and giving them back like we did to Iran no we're talking about actually keeping them and using them to fund the war in the Ukraine because Congress won't appropriate the funds so you cross a whole different line when you do that as the world Reserve currency little by little suppression coercion sanctioning confiscation all of these things instead of cooperation is the rallying cry and the glue that will make it stick will be the fact that gold I believe 100% will be

pegged to a new Reserve currency using blockchain technology or a new settlement currency now two reasons I say that one um we were told by the Russian Finance Minister two years ago that it will be a basket of Commodities especially gold two what did the bank of international settlements do in 2019 they reclassify gold is the world's only other tier one Reserve asset and if you look at the amount of gold that these countries have bought two years is running it's world record most gold ever bought ever by the

central banks over the last two years most of them those countries and if you just take a step back and look at what's happening that's just there we can talk about what's happening here but we should definitely talk about United be bit did because they took one big ax swing to the tree of chipping away the of the dollar of gmany and as I mentioned to you I said it's one thing for me to say all the opet countries are on the Bel Road that Saudi Arabia applied and was accepted to break it

they joined the new development bank that they joined the Shanghai cooperation organization and that they called people in Davos a year ago that yeah we're we're open to taking other currencies for oil by the way 20% of all oil sales in 2023 settled outside the dollar growing little by little by little but the United Arab Emirates the 7th largest producer of oil in the world an OPEC country just joining bricks alongside of Saudi Arabia came out three days before the United Nations meeting

just a few weeks ago in Dubai on climate change 200 countries from around the world attended delegates from 200 countries three days before they get there and it was only picked up by MSN One news source a very small article UAE we will no longer take dollars for oil so you have the seventh largest producer of oil in the world an OPC member and a bricks member who three days before 200 countries appear in their country to talk about climate change which was ironically presided over by the chairman

of the state-owned oil company of the United who told at one point the ex president of Ireland if we go back and to to Green if we go to green and go move away from fille is going to send civilization into the caves I'm just saying he was making his point right there and so that's very provocative in and of itself to say that when the whole majority of the world's countries are there to talk about climate change and then right after all these countries leave the delegates leave Putin who

hasn't left Russia but twice in the last two years because of the bounty on has had flies flanked by four Russian mjets to the United bar mment what was that discussion about do you think it was we've got your back the way that you know uh no one had that discussion with Gaddafi or Hussein when they made similar statements that we're going to take other items whether it be gold or or or Euro for oil no that that didn't fly before and it was interesting that he makes an impromptu unannounced trip

to visit the day after that he goes directly to Saudi Arabia where OPEC announces a 2 million Barrel reduction per day up from 1 million the day before point I'm getting at is that all of these things little by little by little by little by little by little are chipping away at the dollar hegemony and that was a big swing certainly not as big as OPEC saying it but when you realize we're going green and you realize we weaponized the dollar when you realize we've inflated the currency

the bond Market's been a disaster and that that doesn't even speak to anything that's going on in the United States well Charlotte to me is the biggest thing of all because you know if if if our country was revered the way it once was the judicial system the the the lawlessness now the the questioning of the elections the open borders the divisiveness between red and blue and black and white and rich and poor I mean it's unbelievable so I don't think the United States is revered and looked at the way

it once was it's all centers around trust and the trust has been broken or severed across the globe and I think the trustworthiness of the administration and of the laws and of the system that once was the beacon of life in the world it's looked at crossed right now so I know that was a really long answer and I'm sorry for it but I I to to to get to the point of what do I mean by chipping away it's everywhere little by little by little and the funny thing is the Western media doesn't tell us any of

this so the majority of people who sense this craziness in the states have no idea what's going on outside the border and they cannot get out of the way they will be blindsided when this happens they cannot get out of the way of something they don't see coming yeah never apologize ol for the lengthy answers I think it's such valuable information and this does fit in perfectly I think with what I wanted to ask you so you can see this happening but as you mentioned Western media is not reporting on this I wonder though

people in power in the US are they seeing this happen and what do you think they're thinking when they see this chipping away if if indeed they are seeing it as you're seeing it I had you ask that question and this is where what I try to do is look at all the facts put them together and and guess I mean that's what it is I mean it's it's aam's Razer the most logical all right so there's a man named Jared Bernstein he's the lead economic adviser of the United States government

look him up he has a degree in music and a master's degree in social work and he's the lead economic adviser of the United States government his he advocates for the immediate loss of the world Reserve status he wrote a report called Dethrone King Dollar that was picked up by the New York Times and when Trump slapped tariffs on China when he was president he said great maybe this will break the dollar Reserve status this is a man who was advocating for the loss of the reserve status now think

about that take a step back and say hm if I want to lose the reserve status what two things could I do more to piss off the world than to weaponize a dollar and then tell the the Lynch pin of the hegemony OPEC hey thanks we're going green so now you have and then at the same time inflate your currency and part of the Petro dollar status was taking the excess that you you get from selling your oil in dollars and reinvesting it into treasuries well how's that worked over the last couple years as the

treasury market has been obliterated and then you look at what's happening here it's all divided and divisive and and screwed up right and the Open Cities and the the the lawlessness and the open borders all this stuff they're looking at what the hell is going on in the United States now what I'm getting at is this is this too stupid to be stupid or could this be planned why would they do it but why would they do it is the question everyone's going to be thinking why would they do it um and by the way

before I answer that the number two economic adviser of the United States government is a lady named L Brainard who worked at the treasury then worked at the FED while at the FED working with MIT in development of the new Central Bank digital currency that Biden fast-tracked in an executive order and just ran point for fed now that just came out a few months ago which is like venmo and zel on steroids back by the FED which will probably be um offered by in the place of checks and wires within a year point I'm getting at is one's a

monor they're both modern monetary theorists one wants to see a culling of the banks one wants to lose the reserve status and so when you look at all the things that we have done um and you look at the banks that are on razer's edge they jack up interest rates so fast after after incentivizing these Banks to load up on treasuries when the reserve requirement was Zero at covid the banks are on razer's edge well what's the better best way to blow up the banks let rates go to the Moon how do you

incentivize that to happen without falling on the sword what I'm basically getting at is this my mentor was a man named Richard Russell God Rest his soul the best newsletter writer the smartest man and he said back then almost 20 years ago the FED is has created so much debt it can never be repaid there are two options either inflate or default and I think there's option number three and option number three is to find a villain it's those bastards xinping and Putin and OPEC they did it to us how

could they do it to us but look at what we've done to to shed and instead of clinging to the to the The Prestige and the value and the exorbitant privilege of being the world Reserve currency we are doing everything we can to lose it weaponizing the dollar going green and letting everyone around the world and even in the United States say what the hell is happening to this country and it doesn't Inspire the confidence that it once did and you know we have a155 trillion in debt by the government's own admission of

which uh the the the largest asset in this country the United States of $5 trillion is student debt and one $1.6 trillion 40% of the government's assets are student debt we are broke we are insolvent and so if you want to reset the system as CLA Schwab said we don't want to defa you don't want to in hyperinflate how about incentivize the world to dump dollars as the Petro dollar and every single country in the world has had a stockpile dollar Charlotte for the last 50 years by the way it's 50 years you know that

the Crown Prince just came out and said said China is our most important partner today and for the next 50 years in trading oil now do you think that number and when he said it is significant I do but the point of it is if everyone dumps dollars because we're going green and if you're on the wrong side of the US think China Taiwan think Saudi Arabia think all the bricks countries you're going to get sanctioned and maybe not even just sanctioned maybe you're going to get confiscated like they're doing to Russia

if everyone dumps dollars at some point little by little by little by little by little we're building up to that moment what happen happens if if they OPEC says just like UAE said just like Russia said just like Iran said no more dollars for oil Thanks for the Memories guys we appreciate the 50 years of help and protection and it's worked out great but you're going a different direction so we are uniting with the the Belt Road initiative the Shanghai cooperation organization the Eurasian economic Union

and all of bricks which is 85% of human population that's not coin green bang every single country on the planet dumps dollars which creates hyperinflation the byproduct Ive hyperinflation are interest rates that have to compensate you can't have 20% inflation and 5% interest rates your currency dies so as interest rates Spike well above the level that Powell wants to do you reset the entire system because the banks are on edge you should send rates up there every bank is gone they're they're

overleveraged and under capitalized the dollar gets dump so the dollar collapses and as rates Spike like that the bond market and the stock market reset so stocks bonds real estate the banks and the dollar all simultaneously collapse and guess what you have a villain but have no fear because L brard is here and she's a modern monetary theorist with the Central Bank digital currency that she wants to issue to the handful of banks that are alive because the rest of them have died and I know Charlotte

you've lost everything you lost your 401k you lost your your bank account you've lost everything just sign on your dotted line and we'll make you whole with our modern monetary FY Central Bank digital currency we reset we create nationalism instead of globalism and you have a rallying cry that the United States people who are uneducated and and or at least even if they're well read They're reading the wrong stuff will get behind because I'll tell you what there's not a person

downstairs at this conference that would willingly take the cbdc unless they were forced to by some of that without a gun to your head it's either that or starve what are you going to do and so what I try to do is put all of these things together either this is a path or something similar we're heading down or it's just too stupid to be stupid I don't understand how our politicians could make the move moves that they are making incentivize the world to do this to stabilize the country inside and out the banks

everything and put us in this position without understanding they may be nefarious but they're not stupid I I could listen to you talk about this for hours and you really added I think a number of interesting points since that previous conversation I'm so interested to here in the green angle but where where I want to go next is so you always tell us I think there's a lot of people at this conference and in the world who are sitting here wondering okay so what what do I do and you've told us consistently watch what

the big players are doing so central banks they are buying gold maybe you should consider buying gold right I wonder if there are any other things people should be watching seeing these large entities doing and they should also consider doing that well I mean I think it's Commodities you know Zan posar one of the smartest men in the world he he used to run the um the back room basically for the New York fed he understands the plumbing of the system better than anyone uh he I think he works for UBS right now

but he writes a lot about the the the environment we find ourselves in and he calls it Bretton Woods 3 Breton Woods one was when the dollar took over for the pound sterling after World War II Breton Woods 2 Loosely would be when we defaulted on that we closed the gold window and then three years later 50 years ago struck an arrangement with the Saudi Kingdom hey will we will protect you that was the Petro dollar and he's saying Breton Woods 3 is a system now that will be denoted or or or described

through transparency like blockchain technology and commodities like gold so that's why I think what is gold the only other tier one asset so how do you inspire confidence people say who's going to trust China and Russia who the hell trusts the United States anymore so instead you create a system that is trustless you have a blockchain that the whole world can see and you Peg a commodity to it now doesn't have to be one to one because see the goal people get hung up on the on the the the

backing of gold for two reasons one de gal from France proved that convertible currencies convert and he tried to take all the gold away from us that's so he closed the gold window because if if you're not going to be true to the system we'll call it on you and say give us the gold and he drained almost half the gold from the treasury and so that's why Nixon closed the gold window and they also say there's no way that the FED would allow a onetoone pegging because they wouldn't have the monetary

ability to to do things expand the money supply or whatever so how do you fix that one blockchain technology takes the pace the place of convertible in other words the immutability is there for everyone to see and audited by the independent Auditors will come in and say yeah it's there each country has this amount there it's there and the way to do it is to Peg maybe five or 10% of each currency unit so only 5 or 10% is pegged that gives you 90 or 95% monetary latitude they can do what they need to

do but still be Tethered to the fact that instead of being able to copiously create money out of nowhere and destroy the currency no you can't do do that anymore and for the whole world to see in a in a in a blockchain so you have immutability you have Commodities to me it's a system that will be backed by Commodities and it's not just gold it could be silver it could be copper it could be anything Farmland anything that you consider important in in a world of Commodities natural gas oil anything and

I think that would be so in other words I think broad diversification is dangerous right I think sampling of asset classes that don't move in harmony except this time in the case of rising interest rates they all get crushed but I think the way to to do this is to identify the primary Trend and if the primary trend is of increasing of Commodities then you take a very big position within it and broadly diversify within that sector uranium Gold Silver Platinum copper you know take your pick natural gas oil all of those things will

give you a broadly diverse even agricultural ETFs or Farmland that gives you a broadly Diversified representation of the Prime Ary Trend you don't become average by by being broadly Diversified you become successful by identifying the primary Trend and broadly diversifying within it and that's how you win in my opinion I have I have been other question about how how to play what's going on right now and maybe this is a silly question but I'm going to go for it anyway so the bricks they're they're

growing in prominence they're adding members is that an investable Trend in some way well they it's interesting they're just they're just issu a lot sooner than I thought they would something I think they're called the ma maraja I can't pronounce it and I forget the name it's some uh majara something in that name they're bricks bonds and they're there's about $40 billion wor the bricks bonds that are being issued right now only to be bought in local currencies so you can't buy them with US

dollars I think the only way that you are able to benefit from this group growing Trend would be to invest in the things that they seem to be interested in such as natural resources rare earth metals precious metals oil and gas um the things that they are accumulating that we don't talk about in the west that's what I mean by the West doesn't prioritize what the rest of the world does so instead of being able to invest in their bricks bonds which would be a direct or I suppose you could buy Yuan

or whatever but I think the way to do it is instead invest in what they are prioritizing as important and when you realize that they control you know the majority of human population or represent the majority of human population that's a bet that I would be willing to take right so it all comes full circle we're watching what they do and then we should follow that right okay one one my haraj that's okay okay thanks one one last question before I let you go so obviously you have a bullish outlook on gold and you have a

very good eye on what's going on in the gold market the the buying Trends what people are doing so a lot of people are curious in the we've been talking about a lot of long-term trends in the short term how do you see G performing in in 2024 you know look anyone who answers that question with some with the concrete answers guessing but what I will say to you is this uh it it's it's now January in October you have the bricks meeting where they are going to announce which countries have been admitted and maybe

even a commonly back currency which is one month before the election that will reshape the world and I would say to you the likelihood of seeing something happen with gold Grows by the day as we get closer to these two very very landmarked pivotal decisions uh and meetings and outcomes so look since 2000 which is is is 25 years ago 24 years ago uh gold has outpaced the S&P and it's outpaced the bond market and you see the the countries that used to accumulate our our debt as an asset which has a very

short Limited time frame in historical sense of accepting a country's debt as wealth as an asset you look at China they're shedding their bonds they own the least amount they have in 15 years Saudi Arabia Russia India they're all shedding bonds and doing what buying record amount of gold gold is appreciated by 7.8% per year since 2000 that's better than the S&P and obliterated the bond market and has no counterparty liability so the world is saying why do we need treasuries for

that have default risk inflation risk and interest rate risk we can just buy gold and get rid of and kill two birds with one stone because they want to break free from the Western hemony it's not just the dollar which has the Supreme settlements to Brett Johnson's point it is still the Supreme settlement currency for now but what they can really affect is the reserve status of the Dollar by shedding bonds and replacing it with gold which has a much longer history in terms of it being wealth and if you go back for the last

cent for the last 25 years it's outperform the bond market handily and the stock market so it acts the same way way and when you see the the central banks which are the most well-informed Traders on the globe not just the wealthiest most well-informed something tells me that gold will do very well when the when the switch is flipped but Charlotte I think it happens on a Monday morning you know and the little by little by little by little by little well that's what people should be paying attention to only thing is the

Western media except people like you and me are saying it but we're not on the western media on Fox News and CNBC every night saying this we're saying it to the people who are watching and are listening so we get it you get it but the point of it is is that we'll wake up on a on a Monday morning and it will all change I'll give you one more example of what I mean by that the if you look at what's happened over the last several months in Shanghai which the Shanghai Gold Exchange has become incredibly prominent

and it's it's in many ways does more volume than the comx does in terms of deliveries and everything the last day of the year I'll use it as example the LA December 27th or whatnot uh of 2023 in in Shanghai the price of silver was $26.25 it was $24 in or thereabouts on comx and the lbma they are slowly turning up the heat it was 10% higher in it is now in Shanghai than it is in London and the in the US and gold has been between 60 and $160 higher in Shanghai than it is here slowly turning

up the heat because anyone who has access to those markets these big Traders who could care less about nationalism and only about profit will take every ounce they can get in London and in Chicago and settle it and deliver it in Shanghai for a huge Arbitrage spread slowly turning up the heat so I will simply say this to you little by little by little by little logarithmic to he you wake up and bang it'll be so high because the Western Market which is massively rehypothecation meaning they sell the same contract over and over and

over and over again in silver it's 1500% re hypothecated right now in the registered category the bars a available for for delivery 15 people own the same contract one out of 15 would get delivery the whole system breaks point of it is we will wake up one morning and no one will will trust the Western Market anymore and you'll see the price setting mechanism moved to Shanghai or to Moscow or Dubai the countries that have been buying and accumulating and valuing it for a long time so does it

happen this year maybe we're on borrowed time if you ask me and look I know the new the new version of the little boy who cried wolf there I am on the cover but the wolf comes in the last page and the wolf's coming is it October November is it later is it before I don't know and I think instead I'd rather be 6 months or six years early than 60 seconds late that's the honest to God truth okay I think as always great insights I'm going to have to go back and watch this a couple of times so I

can take it all in that's where we'll leave it today I'd love to have you back to talk about election anytime that be you know that Char you call anytime and I'm happy to jump on oh of course well thank you so much for for today and once again I'm Charlotte McLoud with investing news.com and this is Andy sheckman thank you thank you for watching if you like this video make sure you subscribed to our Channel we'd also love to hear your thoughts so leave us a comment below

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