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May 5, 2022 - Health Ranger - Mike Adams
55:38
David Morgan reveals what the "real" price of SILVER should actually be
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All right, welcome everyone to Brighton Conversations.
I'm Mike Adams, the founder of brighteon.com.
Today we have just an incredible guest, David Morgan from themorganreport.com.
In the minds of many people, including myself, and he's going to be embarrassed that I say this, David Morgan is a living legend in the sense he's the silver guru guy.
He knows what he's talking about when it comes to economics, silver, precious metals, but he's also got a breadth of knowledge that goes beyond just metals.
We're going to really talk to him today about where he thinks things are going.
But David, welcome to the show.
It's really an honor to have you on today.
Well, I'll reciprocate.
It's an honor to be with you, Mike.
I've followed the Health Ranger, your website, and most of what you've done for years.
So I feel very, very excited.
Well, that's awesome.
That's nice to hear.
I've followed your work for many years, too, and watch your interviews.
People post your interviews, by the way, all over Brighttown.
Some of it's probably pirated.
It doesn't matter.
You're getting the message out, you know what I mean?
But people love you all over Brighttown as well.
So let's just jump right into it.
Let me ask you this question starting right out of the gate here.
We've got massive...
Unrecognized inflation in seemingly every sector of the economy.
Commodities going up.
Food going up.
Fuel and energy prices going up.
Transportation going up.
Logistics supply lines cratering.
Semiconductors in a massive shortage nationwide right now to the point where Samsung is canceling their next wave of mobile phones.
But yet gold and silver are not skyrocketing like all these other things.
What's going on, David, in your view?
Well, Mike, I don't know where you're getting your information.
I mean, Mr.
Powell just came on TV and said they can't even get 2% inflation.
Yeah, officially!
Sorry, I couldn't resist.
I do have a bit of a sick sense of humor.
Yeah, it's crazy, crazy, Bill.
Yeah, well, the precious metals are really something that most people that are aware, understand, tell us how badly the system is being managed or how poorly the fiat system is holding up.
So if gold were at its true price, and it's very simple to determine, Mike, I've said this a few times, but it bears repeating, how many dollars per ounce is gold worth?
Well, it's very simple math.
It's arithmetic.
How many dollars are in base money and how many ounces of gold does the Treasury purportedly own?
And if you do that math, it comes out over $10,000 per ounce.
And we're sitting here struggling to get back to $2,000.
So in markets that are in this quandary that we're in now, usually they overshoot.
In 1980, that math produced $400 per ounce gold, but it went to over $800, which meant we could, in theory, Mike, have gone on a true gold coin standard in 1980 if they would have locked the price in and not put in any more fiat, which governments really can't do.
But in theory, you could have gone back on a gold standard.
It could have actually doubled.
You could have locked gold prices in at $800 and had more than enough gold for a complete cover ratio.
But, you know, governments aren't going to do that on their own.
It's going to be forced on them, in my view, or probably not happen.
I mean, it needs to be determined how the new monetary reset actually comes out, I'm sure, later.
Yeah, we will.
I want to ask you about the monetary reset that's coming, but another question first that comes to mind is, The mindset of people who are still stuck in the dollar paradigm, the fake fiat currency paradigm, there's still so many people who look at gold and say, well, the only reason I would buy gold is because its value is going to go up in dollars so I can sell the gold and make money in real money, which is dollars, right?
So that's their mindset.
They don't understand.
What are you talking about?
Why are you thinking about gold even denominated in dollars?
Gold is gold.
Gold is the real money, not dollars.
I mean, are more people waking up to that reality now?
And silver as well.
I'm not leaving silver out, kind of using them synonymously, just metals, right?
But are more people waking up to that point of view now?
Yes.
I think, you know, one way to look at it, and I've done this recently in an article, is Go back to the founding of the Fed and you have a choice.
You have a million dollars in cash or a million dollars in gold coin.
And at that time, a gold piece was $20.67.
So if you divide 20 into a million, you come out with, what, $5,000?
$5,000.
50,000.
So take 50,000 of those gold coins today and multiply it by 1,800 and see how many millions are worth.
And that million in cash is still a million.
So gold does give you purchasing power and sometimes an increase in purchasing power over a long period of time.
But the...
Information overload era is extremely good at holding the narrative to, oh, gold's down today.
Oh, gold's down today.
Oh, gold's gone up.
Oh, it's down again.
And so you get in this day trading mentality.
Well, look, gold's only at $1,800.
Yeah, but it was at 250 in the year 2000.
I think 1800 is a larger number, even inflation adjusted.
But people don't think that way.
They don't look at it from long term.
They're too worried about what happens in the next quarterly earnings report.
And as Tesla, you know, only 2000 times earnings or whatever it is, what have you.
So I'm trying to remain a little bit humorous.
People don't understand real money anymore.
It's that simple.
Yeah, I mean, I don't think of gold as a speculative investment.
I think of gold as a way to freeze the value that I've earned and I'm putting it in a deep freeze so it won't vanish.
I mean, that's it.
Well said.
The way I look at it is similar.
I think you said it better.
Your savings should be in money, not in currency.
Currency devalues.
Money doesn't.
So if you have something that's tangible wealth, yeah, maybe the price is less than when you bought it.
What I try to teach people, and some here and some don't, is if you have more coins today than you had a year ago, you're wealthier.
Yeah, but wait a minute, David.
My average price is $27, and it's only at $26 now.
Nope, nope, nope.
You're thinking about it backwards.
Exactly.
Let me repeat.
If you have more silver coins today than you had last year, you have more wealth.
It's that simple.
End of statement.
That's right.
That's right.
Now, a lot of people are newly aware or maybe again aware of the importance of silver.
There was this recent phenomenon, the attempted silver short squeeze by, what is it, the Reddit trading group.
They were playing with GameStop stocks and also playing with silver a little bit.
There's now suddenly a lot of awareness that there's silver manipulation by the central banks.
Now you've been talking about this, you've been aware of this for many, many years, but to the average person, they've just become aware that there's silver manipulation.
Can you tell us how is silver being manipulated, or silver prices, and gold, and for what purpose?
For what purpose is to make sure that there's no competition in their money monopoly.
The banking system wants to keep that power and control mechanism in place forever.
And so to do so, they can't have something competing with it as money that detracts the, let's say, brainwashed participants in the banking system.
And most people are totally unaware.
And some people that are told the truth just don't care.
They say, I don't care.
All I care about is, you know, what I have in my bank account, and I'm saving in fiat, and I don't care what silver did in the past or any of that stuff.
As far as how they do it, I wrote a whole chapter in the Silver Manifesto on, you know, is silver manipulated or not.
It's a little detail to go into on your show.
I'm not trying to avoid it.
But basically, the derivatives market, which is the futures market, between the LBMA, the London Bouillon Management Association, and the COMEX, In the United States, basically control the market with the amount of supply and demand.
But what the supply is, is it's an amount of paper that can be created out of nothing.
That's the supply.
It's infinite.
And what is the demand?
It's demand for the amount of paper that someone wants to buy.
So if you have infinite supply of derivatives and a finite supply of people that want to buy those derivatives or exchange those derivatives or speculate in those derivatives, then you have a market that's determined purely by the ability to buy and sell contracts.
And that's really what it is.
So if you have the ability to write infinite amount, obviously you can control the price pretty well because you can continually feed in what I'll call paper supply, and that will keep the price low because it's a huge supply.
Right, right.
Well, sorry to jump in, but doesn't that mean then that silver, being that it's artificially suppressed, That purchasing physical silver today is actually really one of the few bargains that exists in any system, especially commodities right now.
I mean, go try to buy lumber, for example.
Forget it.
But it's a bargain, and this is me saying this, not you, but maybe we could argue it's a bargain at anything under $100 an ounce, for example, because we know its real value is way more than that, significantly more than that.
Would you agree that it's a bargain, or am I wrong to use that term?
No, Mike, you're spot on.
I just did an update from my weekly perspective.
Maybe someone will put it on Brighteon.
The title of the article, it's not published yet, it'll be out in a few hours, called Is Silver Worth $400 an ounce?
And the basis of that is looking back in an inflation-adjusted silver price back to $13.44.
If you go back to $13.44 to 1998, what you'll find is the high price of silver in real dollars and in inflation-adjusted dollars.
We've taken the lie of inflation out of this graph, and we've made it a permanent $1 equals $1 equals $1 all the way through, again, from $13.44 to 1998.
Guess what?
The high price of silver is $1,000.
$477.
The value of dollars, of silver, in 1344 to 1544 for 200 years, Mike, was $400 a ounce.
I mean, you're getting into the price range of gold here with some of those numbers, you know.
And that's when silver was money and money alone.
What's interesting on this chart, and I did it again in my weekly perspective, is once we hit that 1873 and the Wizard of Oz came in, the man behind the curtain, and the Eastern establishment and the London bankers that controlled our banking system went to gold only.
For total control, then silver was demonetized.
And you see it in the chart.
It went from, I think I'm doing it from my memory, $70 an ounce or so, down to when Buffett bought, which was $5 in fiat terms.
And was the lowest historical price silver had ever been at in recorded history.
So you talk about a value investor.
That was the value of all values.
Are we still valued along those lines?
The answer is yes.
From the time Buffett bought 1998-99 when he announced it or so, What you'll find is the Fiat Fantasy Fiesta is up about 400%, so you can take that 20 and multiply it by 4, that $5 silver, you multiply it by 400% or 4 times, you have 20, 25, and that's where we're at.
So really, again, if we get an inflation adjusted chart, Mike, we're really, what you just said, we're pretty much near the all-time low in real terms.
The problem is that people get used to nominal terms.
They don't know what I'm talking about.
I think your viewers will understand it, but a $20 bill today is not what a $20 bill was when I was a 20-year-old, let me tell you.
Yeah, exactly.
You gave a very good description there.
People need to think about real terms because the currency is being devalued and deflated all the time.
I want to ask you about that, especially in the context of the big one point nine trillion dollar covid bailout that's that's happening now.
But first, just for disclosure purposes, I want to ask you this on behalf of my audience.
Do you sell silver?
No, I don't.
I occasionally will line up a big participant with a dealer that I know and trust.
I do match people.
You know, someone that wants a certain product or whatever, I do facilitate that from time to time.
It's not my primary business.
And I do have an association with a Silver Saver program.
That's what it used to be called.
It's on my blog over on the right-hand side.
It's designed for the average person to just stack A few ounces on a monthly basis.
I do have an affiliate with them.
It's a good program for the average person that just wants to put in $100 a month, $50 a month, whatever the minimum is.
And I've been in it myself personally since it was founded.
I know the people.
I went there on my own money to meet them in Kansas.
They're salt-of-the-earth type.
So that's really the only, you know, bullion you could say I sell, but it's rather my, I do it as a public service.
But no, I'm not a broker-dealer.
But yes, I have connected people.
Sometimes the best connection would be, I won't even name names, but I know almost all these guys on a first-name basis.
I've had dinner with them.
I'm sorry, I just want to establish, you know, your revenue model.
So you have a book, The Silver Manifesto, and you also offer, I think, a paid newsletter on your website that offers analysis, correct?
Correct.
Yeah, that's about, that's correct.
It's a financial newsletter.
I look at the whole big macro picture on finance, and we do more than silver stocks, but it's mostly investment-wise on the equity side.
So we have a uranium stock that I love this company.
It finally took off.
It's just blown it out.
I don't know.
And silver and gold stocks, royalty companies, asymmetric trade on a recycling company with a new technology.
So it goes from top tier, mid tier to speculations.
Okay, okay, great.
And just also for details for our viewers who might be interested, how frequently does your report come out and what is it an annual subscription cost or what does it cost for that?
Yeah, it's an annual subscription.
It's $500 a year, and it's once a month.
But I do videos usually two or three times a month.
And I may talk about any trading I do, which I'm not a frequent trader, but I'll talk about what – let's take a look today at the U.S. dollar.
And I'll go through the chart, and I'll talk about why I'm going to do this or why I'm not.
Look at the bond market.
Then a lot of the stocks that we trade, most of them are buy and hold.
I mean, I don't like in and out.
I'm not a day trader mentality at all.
I'm more of an investor, buy the right companies and hold on.
But I'll go through those charts and say, look, you know, this is our stop.
You can see from this chart that it's a waterfall decline from here.
We've got to get out, protect yourself.
We want to sell it here.
That's what I'm going to do.
So those updates come with the service.
But there's no guarantee on how many I do a month.
I tell my subscribers it's on an as-required basis.
Once in a while, they'll nudge me.
You know, David, please give us an update.
Give us an update.
It doesn't happen too often.
Usually, I anticipate, you know, the right flow, you might say, Mike, so that I'm definitely tuned into my My members, and just maybe sounds phony, maybe not, but I'm speaking from the heart.
I do care.
I do care about my group.
I don't care about, you know, as long as I make a good living, I'm not worried about being the best or the biggest newsletter writer.
I'm worried about being the best of maximum service to the people that follow my work.
Yeah, well, exactly.
So let me ask you, on the risk-averse spectrum, so to speak, where would you describe yourself?
Because you talk about some, maybe, mining companies that might return 1,000% from time to time, but a lot of people today just want to preserve wealth, and they'd be happy to get out with what they put in, and that's it.
So how do you mix that together?
Great question.
No one I think has ever asked me that.
Maybe once before.
Yeah, when you sign up for the premium service, you get a PDF file called How to Use the Mortgage Report.
In that report, the first thing I talk about is physical, because I want you to own physical before you ever buy a stock.
So I talk about your age and your net worth, and I just do it in percentage terms.
So if you're worth X, So much goes into this much silver, this much gold.
If you're younger, you can favor silver.
If you're older, you should favor gold.
Now, we've established that.
How about the stocks?
70% of the remainder goes in top-tier, cash-rich, unhedged mining companies.
They're blue chips.
These are not going to make you a fortune.
They're going to preserve your wealth.
And if silver does what I expect it to do, these things may act like penny stocks in the future.
Because when the currency crisis hits, the game's over.
You don't know what the panic buying will look like, but I can't promise that.
But at least you're in solid companies that have a bottom line, file everything, and you know how much money you're making from the company's reports.
Then there's the mid-tier, which are not as good as the top tier, but they have room for growth.
So that's that.
And then speculations.
I wasn't going to do any, Mike, when I started the Morgan Report, but there were so many juicy little companies out there that I knew really had merit.
That I decided I probably wouldn't have a business because the whole gold newsletter industry revolves around what I call these story stocks.
You know, I was hiking through Idaho and I busted my leg and there was this big gold nugget.
Probably never happened.
Anyway, so I do have speculations, but I teach, you know, bet a little to win a lot.
And you're right, sometimes they are 10 baggers, 20 baggers, 30 baggers, sometimes 100 baggers.
I never had a 100 bagger, but I have had a couple 30 and 40 baggers in there.
So we do speculate, but we do it prudently.
You don't want to put a lot of money into a penny stock.
It's a good way to go broke if you do it.
Yeah, I mean, most mining companies, mining startups fail, right?
I mean, that's a fact.
Absolutely right.
Mining is very difficult.
I mean, you have to move through a tremendous amount of cubic yards of material in the hopes of getting tiny little flecks of metal that you want.
You know, it's difficult.
Very difficult.
Okay, a question though, and this comes from me personally, and thank you for making yourself available to answer these questions.
I think a lot of our readers are probably going to have the same question.
I've always been kind of afraid of international mining companies because I don't know About the stability of the government and the capitalistic society in which those mining companies operate.
Like you say, or not you in particular, but somebody says, oh, there's a mining company in, let's say, Bolivia, and it could do really well.
Well, I don't know what the Bolivian government's going to do next year, and I've lived in South America.
Things could go really bad, by the way, just like that.
So how do you...
How do you know that international mining companies are still going to follow the rules or not be taken over by the state and nationalized?
Because that's happened as well.
Yeah, great question, and I will answer it.
There's a company called the Fraser Institute, and they do risk analysis on a country-by-country basis.
I don't subscribe anymore, but when I did, I pretty much agreed with what their analysis was.
Not in every case.
First of all, there's risk in life, and that's not an excuse there is.
The best way to mitigate the risk is to spread out.
So, for example, probably the three best silver mines on the top tier level are all in Mexico.
And that will change.
It could be Peru sometimes.
So you don't want all your investment in Mexico.
You want to spread out.
So if you take something like a Pan American, they have mines in Peru, Argentina, Canada.
They've got it in Texas.
So they've got them all over.
So if you have a company like that, you're spread out internationally anyway.
And that is one of my top-tier picks.
So that mitigates the risk.
They might lose their mine in Peru because of geopolitics or something.
But it doesn't shut down their company.
So that's really the safest way to approach it.
If you think you're going to pick a bunch of junior mines in Mexico alone, you're really risking it because...
Well, and you have geopolitical risk.
You also have, you know, the risk of the penny stock world, the story stock world.
But I think I answered your question.
There's no way around it.
I, at times, have done on my premium service an update and said that, you know, look, if you're Looking at the top tier, this is Mexico, this is Mexico, this is Mexico.
That means you probably have too much invested in Mexico.
You might want to sell one of these and look at this one that's over in, you know, Argentina or it's in Australia or whatever.
So you can't get around it, but you can use some common sense to mitigate it.
Okay.
All right.
Great.
Now, don't hate me for asking more deep dive questions here, but what about systemic risks of stock exchanges or brokerage houses, for example?
You know, if I give my money to a brokerage house and I say, go buy this stock in Mexico in this mining company.
Mining company does awesome, but the brokerage house declares bankruptcy and runs away to Belize with my money.
You know what I mean?
How do you know that you can get it back?
Well, I tell people this because I get these questions.
The FDIC is absolutely bankrupt.
So you're...
And I will answer your question, but I mean, the amount of cash that's available to the banking system, if there's a bank run, is pathetic.
I mean, you'll never get it back.
And your account's insured to, I think, $250,000.
The SIPC, which is the Securities Protection Insurance, is for $500,000.
So...
Half a million might buy you a cup of coffee.
I don't think we're going to have that kind of hyperinflation.
But the idea is you're actually better protected with a stock account than you are with a bank account.
So that's my first answer.
My second answer is That the clearinghouses are above them, and so again, you'd probably get your cash.
So I wouldn't worry too much about getting wiped out.
Even if your broker fails, there is a backup insurance provision that should really provide for you.
But again, you know, you come back to the worst-case scenario, and this is how my mind works, is, well, what do you do?
Well, if you read How to Use the Morgan Report, you've got X in physical, right?
So I've looked at that from a thought experiment, and I've said to myself, what if there was a shutdown of the stock exchange for three months?
You know, no matter how much insurance I've got, I can't get it.
Well, I've got this much physical that I'd be, you know, bartering with some of it, maybe making loans to people, helping the economy along, whatever.
And so I asked myself, well, what is the correct ratio for me personally, physical and stocks?
And the answer is, if I lost my entire stock portfolio, where would I be?
And the answer is, I wouldn't be wiped out.
Whereas if you were only in stocks because you get more leverage and they move faster and you made more money and you know what you're doing, and there's a lot of people, and I don't have many people that do that.
It's not what I teach, but I have a few.
You know, that's good on paper.
But that's not what you want.
You want a balanced portfolio, which means you absolutely have to have something physical.
So that's my best answer.
It seems like the concept of risk assessment is a very difficult thing for people to learn, because it's not an innate thing, it seems.
It's something that you have to learn to assess.
And it's very easy to think of FOMO, of fear of missing out of the upswing, and then the risk element of that decision is just forgotten, right?
They're like, well, I'm losing now by not being 100% in Bitcoin or whatever, you know, or Tesla stock, right?
But, whoa, but what about the risk?
Because If there's one big crash, like 1989, Tokyo, right?
The Tokyo market crashed, took 31 years to get back to where it was.
So if you're in, when the big crash happens, it sets you back 30 years.
Right.
No, you said it better than me.
I mean, this is the idea, and people are naive.
And they're lazy.
I mean, I hate to say that, but it's true.
Or they have some fear around it.
Well, and it's almost taught in our society, and you can comment on this.
That, you know, I don't know how to work out.
I need a trainer.
I don't know how to eat.
I have to get a chef or mail my meals.
I don't know how to manage my money.
I need a money manager.
I don't know how to clean my house or get a house dinner.
It's like you can't do anything without someone doing it for you.
Because one, you can't or you don't want to.
And two, it gives you someone to blame, right?
If, you know, you've got a money manager and they screw up, and that's a fact I have on a side tangent I have to hit, Mike.
I've gotten a little irate at some of these investment conferences that are what I would call more mainstream at the mainstream financial types that never even taught gold or silver.
And I said, do you know what's going to happen?
When the stock market crashes and gold goes up fivefold, do you know what kind of lawsuits are going to come your way when you have information that people like I produce, people better than me, better studies, like the Ibbotson Associates study, one that CPM group has done that says absolutely 100% you must have gold in your portfolio for protection, and you put my $5 million into your wealth protection program and not one ounce of gold, and now I'm broke?
You know what kind of lawsuits are going to come your way?
You know what these people do?
They turn their back on me and walk away.
Unreal.
Unreal.
I mean, in my opinion, gold and silver should be the basis of any discussion about money.
and if you don't have a starting base of physical gold and silver, what have you got?
And look, I'll share this publicly and share it with you.
I've never told you this before.
You may be surprised, but I don't own a single share of a single stock anywhere in the world.
I don't own anything.
You know why?
I buy physical gold and silver.
The rest of money, I put it into my own company because that's where I'm going to get the best returns.
No, I have people that, I don't have too many other subscribers because I do the equity side, but I also talk about the general market.
They want my timing and they want my thoughts.
But no, there's a lot.
I wouldn't say a lot, but there is a percentage that are right in the same exact camp as you are.
And the older I get, the more I drift that way.
I mean, my stock portfolio now in fiat terms is not nearly what it was before my divorce 10 years ago.
When I was really heavily in the market, and there's reasons why I sold it out.
I needed to for, you know, financial reasons or whatever.
I don't want to get too detailed here.
But no, and that's what I teach in the How to Use the Morning Report.
The older you get, the more you want to drift toward physical and less in the stocks.
It's just, it is.
It's risk mitigation.
I mean, you know, the real deal is the real deal.
No one knows it's the real deal until it's too late.
You know, once the ship has sunk, everyone knows how it might have been saved.
You know, once this thing crashes, everyone's going to say, oh, I wish I had some silver.
Well, you never told me, Mike.
You never told me to buy silver.
You know, you'll get that.
Of course.
Now, here's a quick question, because I'm going to recommend your newsletter to some people I know who ask me these kinds of questions.
When someone gets your newsletter, and again, your website is themorganreport.com, just to plug it for you, do they get access to all your archive issues as well?
Yeah, I think the new subscribers get something like two or three years back issues.
Going back 20 years really wouldn't help them too much.
I mean, you might find some of the editorials fascinating when I wrote about Warren Buffett and Howard Buffett being an honest money guy and Warren not and whatever.
You know, it might be fun, but it really isn't going to do you much.
But I think you get back a year or two.
And then on the mastermind, which is for fund managers, this is not for your average investors.
It's for AIs or accredited investors.
We do one a month on that, and that's a little higher-level service.
I don't have many on it.
I don't really need many on there, but it is available.
Okay, great.
So then let's get back to the big COVID bailout question.
So $1.9 trillion, I think, is what it has come out to.
Over the last couple of days, the American people woke up and found money magically deposited in their bank accounts.
I mean, actual helicopter money, you know what I mean?
It's falling out of the sky.
Apparently, money is now free in America if you're on the government's bailout list, which tells you what money is worth.
I should say currency is now free.
I keep...
I have to keep correcting myself.
Currency is now free because currency has no value because they keep making it.
What is this going to do and how long can this go on?
Because I don't think this is the last bailout.
Personally, there are going to be more.
I think this is never going to stop until the system implodes, but that's just my opinion.
What do you think?
I agree.
Yeah, it's an exponential curve.
We're hitting that point of where we're starting to touch in the possibility of hyperinflation.
I don't think we'll have a hyperinflation like we saw in the Weimar Republic because we have a mitigation system called the bond market.
So as interest rates go higher, and they are, then bond prices go lower, which are highly deflationary.
But I like to look at it in a more broad brush way.
It's a currency crisis or it's an economic crisis.
And when there's a crisis and you don't know, you know, Tesla's going up or down or if you can get to your stock account, when you're panicked because there's disarray throughout the system, the banking systems, the stock system, the commodity system, all these counterparty risks that are highly, all these counterparty risks that are highly, highly leveraged.
When that all starts to unravel, you're going to go to what you are going to go to, which is what you can trust, which is primarily precious metals.
You're not going to say, oh, we're in a deflation.
I should, you're not going to think like that.
You're going to say, we're in a crisis.
What works?
Gold and silver.
That's it.
I'm done.
I'm going.
Oh, I'm at the coin dealer.
You don't have any silver?
Oh, sure, I've got these slab coins.
I have a 1926D. It's only, you know, $12,000.
No, I want just some silver bullion.
Oh, we ran out of that three months ago.
Right.
And 100-ounce silver bars, I guess, is a good way to buy it.
What's your take on so-called junk silver, high silver content coins from, what is it, pre-1963, I think?
64 and back.
64.
Okay.
I love it.
I used to recommend it.
I still do.
I mean, I'm not asked that question too often.
It's called junk silver in the trade.
I like to call it constitutional silver or real money, but nothing's more recognizable than a U.S. minted dime, quarter, or half dollar.
I mean, you can teach a first grader in, you know, five minutes or less what that really is.
You could show it to them, it shines different, and you can drop it on a table, and it sounds different.
It's sound money.
And it's great for barter if we get to that, which we might, and it doesn't have to be barter.
I mean, we still can transact in this country.
On a contractual basis, and it doesn't have to be written, I could say, Mike, you want to buy my book?
You know, I don't want fiat.
I would like you to send me $0.50 worth of silver.
Done.
Deal's done.
Right.
You're talking about face value of the coins, like two quarters of silver.
Yeah.
Right.
Got it.
Yeah, exactly.
And those prices would be seemingly more stable than fake currency prices.
Exactly.
Yeah.
Okay.
Let me switch gears and ask you about food and your advice on the mixture.
So let's say there's a person out there, a young person, who doesn't have much in the way of savings.
And they've come into some money.
They have a prepper mindset.
They don't have any backup food and they don't have any physical silver.
Which should they buy, or what mix should they buy?
Well, you can eat gold or silver, and I get teased about that.
We all know that.
But if you're in Venezuela right now and you have silver, you are eating.
But no, I think really the way the food system is going, and it's more your expertise than mine, but I look at the macro picture, which means I've got to know something about everything, and I've got to be pretty accurate.
And we are having not only supply chain disruptions, but there's this big locust fest that happened throughout Africa.
There's flooding in China.
There's been flooding in the Midwest, which not only took out some of the crops, it also damaged some of the silos that store wheat for future use.
So we have a food supply disruption in food itself, planting itself, and storage.
So that means higher prices at the store.
So I would say, you know, if you got some money, I would go for some food first.
And if you had excess, then I would store in money.
So I'd have food and silver or food and silver and gold.
But I would definitely have food.
And I... Not that great a cook.
Trying a little humor, but I am for most of these freeze-dried products.
Now, I know you have one of the more superior.
This isn't a plug, and Mike didn't pay me.
But, you know, I'm pretty much gluten-free and high organic when I can get it.
But to find those type of storage foods is not that easy at all.
And we basically had a shortage.
I mean, I don't know if you know Steve Quayle.
You probably do.
Steve and I have been friends for years, and he called me.
I think one week into the illness and said, David, how much food do you have?
And of course, I wouldn't tell him.
He says, okay, whatever you have, double it.
But the problem was, Mike, the only place I could double it was like my second or third choice because people like you were basically sold out.
And I wasn't going to, like in the silver market, I'll take what I could get.
If I can't get junk silver, I'll take the bars because I need some.
And so I did that.
Well, David, the food supply lines are imploding.
And I can tell you this, as a commercial buyer, you know, we buy the rig, you know, 40 pallets at a time, sometimes of different things.
We can't get food and food-making supplies transported from California to Texas.
The trains are all either full or not running.
The trucks, then, they want to charge you an extra, I think, $700 a pallet.
So do the math on that.
And then there's also a wait time on that.
The infrastructure is absolutely breaking down, and I think we're in for what you might call a biblical food inflation or food shortage situation in America.
I agree, Mike.
I know it sounds extreme, but, you know, I'm here to tell the truth.
I'm not here to, you know, make the most friends, get the most likes or any of that nonsense.
I'm here to speak loud, proud, and talk truth to power.
And the truth is, we are facing some dire times ahead.
And I think you need to be warned and make your own decision.
But the facts speak for themselves.
You don't have to go very far to verify what Mike and I are saying.
That's true.
Now, a lot of viewers are really interested in what's happening with crypto.
So I'm going to ask you some questions of what you think about crypto.
Now, of course, our viewers are very, very critical thinkers.
So they're not like crypto cultists or anything.
Don't think that that's where they're coming from.
But there's also a lot of upside potential to having a certain amount of crypto for mobility, right?
I'm going to stop talking.
How about you lay out your views on crypto, what's happening there, why are prices skyrocketing, and what does the future hold, you think, for crypto?
Yeah, great question.
And so the number one thing to look at from like the big, big picture is what happens at the end of the Age of Empire?
What happens when you have these massive currency resets?
And these type of resets that I'm talking about isn't like going...
Partially, a lot of it's going off the gold standard August 15, 1971.
But if you look at these huge resets where it's food and weather related and it's monumental population-wise, they only happen about every 350 to 400 years.
So that's what we're facing.
We're not facing once a generation or once every other generation.
We're looking at several generations, these type of grants take place.
So that's number one.
And what happens at those times?
But substitutes happen.
So currency competitors sprout up.
Well, gold and silver are a currency competitor and have been for a very long time.
They're suppressed, they're maligned, they're bad-mouthed, and they're never talked about by the mainstream financial press.
And if they are, it's usually derogatory.
So what else happens?
Well, you have people that come up with Ethica dollars, and they use it in their local community, and it's based on hours worth or whatever.
And what's really come to the fore is the cryptocurrency word.
So this is natural to the situation we find ourselves in.
There will be competing currency developed by entities People, there's some combination thereof to compete with the failing system.
So it's a sign of the system in a state of failure.
So that's number one.
Number two is...
What's the right crypto or whatever?
I won't get into that too much, but I will say that gold and silver, even though they're, again, even maligned by a lot of the crypto people, and it's fine.
You're welcome to your opinion.
I'm not going to argue with you.
What I will say is that we want to look at what is the best for us or we the people.
The CBDC, Central Bank Digital Currency, is what we're getting pushed into.
This will be where your bank account will be switched over from the digits it already has to a wallet issued by, let's say, the Federal Reserve Bank, and it'll be direct.
So your bank basically goes away.
There's no ATM because it's a cashless society, and you deal directly with the, let's say, What I want to call the beast.
So the beast system is between you and the beast.
The bank, that intermediary, really doesn't exist anymore.
This way they can track, tax, and trace everything you do.
Not only trace what you bought, Mike, but where you bought it.
You know?
Oh, you bought it at that store.
You traveled too far, Mike.
We're going to deduct so much out of your allotment because you could have bought it at this store instead of that.
I'm not joking.
I mean, this is about as much time to go.
I know.
Well, and especially, oh, you bought ammo.
You're obviously a terrorist or something like that, right?
Right.
So then there is the counterparty to that, which is DeFi, decentralized finance.
And there are some of those.
I mean, you've got Monero.
I'm not...
Look, I have a staff, and David Smith writes the crypto part, and I read it.
I'm educated by him.
Yes, I'm no dummy, and I wrote the editorial on my thoughts about Bitcoin being very, very tied to the Chinese.
I'll just leave it at that right now.
I don't have time to go into the details, but I know what I'm talking about, but not...
Real detail.
Most of it's financial and metals.
So coming back on point, the decentralized is what you want.
You want to be able to control your own money.
And there are some opportunities to do that.
But they are not as free market and anonymous as people think they are.
They really are not.
My view is there's probably an opportunity for a hybrid where you have precious metals that are on the blockchain that can be verified.
I think that's the best of all worlds.
And full disclosure, I am affiliated with one of those.
I'm aware of others.
And I think they will catch traction in the future because once the run to gold starts and you can't get it at your local dealer and the internet guy is out or the coin dealer only has rare coins, You'll be looking for a place where you can get it.
And this one, some of these are already funded with silver or have a direct relationship with a refiner or a silver mine for supply.
So it doesn't mean they have infinite supply, but at least you have a supply chain that's, you know, I wouldn't say it couldn't break down, but it's established, it's ongoing, and you have a good commitment.
Well, I'm really glad you mentioned this concept of a precious metals backed crypto.
Because that's something that I called for in my podcast a month ago, a couple months ago.
So I tell you what, when we connect again, let's talk about that.
I mean, we don't have much time to go into it today.
Let's talk about that next time because I think that combines the best of both worlds.
You have the speed and the mobility of digital assets, but you know it can't totally vanish because there's It's got to be metals in a vault somewhere that represents those digits that you're transferring back and forth to people.
Because, see, in my mind, part of the problem with Bitcoin is that it's backed by nothing.
And we had those blackouts in Texas a few weeks ago, and I said, when I could finally get back online and had power again, I said to my podcast, I said, you know what the value of Bitcoin was this week in Texas?
Zero, because you had no electricity.
You know what I mean?
It was zero.
Nothing worked.
So that thing can crater.
Or any crypto can crater if it's not backed by something real.
I mean, there could be a crypto backed by oil.
Like, you could trade it in for barrels of oil.
Even that would be better, in my opinion, than nothing.
Yeah, we'll certainly have a discussion and...
Well, I'll just go one step further.
I just showed you my book, The Silver Manifesto.
A guy in the UK wanted to buy the book, and he's on the system I'm referring to.
It was about a 30-second transaction.
He said, how much do you want for the book?
I did the calculation in this silver-backed crypto.
He sent it to me in my wallet.
I got it, and my secretary mailed him the book.
Normally, it's a pain, because I've got to go from, you know, pound sterling to U.S. dollars, do the conversion, wait for it to clear, da-da-da-da-da-da-da.
I mean, the crypto world does have some advantages.
All right, let's move on here.
There's...
Many people who are, I think, intelligent analysts think that there's going to be a limit to how much money printing can take place by the Federal Reserve Central Bank.
And history has shown us that there are limits.
But do you have any idea where that limit is?
I mean, could they just keep doing the helicopter money for a decade and get away with it?
Or is that economically impossible?
Well, history is a pretty good teacher.
So what will happen is the central bank will maybe think they could go on the modern money theory and print to infinity, but you can't because the market itself will determine what the limit is.
And we're seeing that right now with the 10-year bond.
That's sort of the sacrosanct benchmark for what the mortgage rates are, what an auto loan is, What your commercial loans are.
It's all based pretty much on the 10-year note.
Right now, we're seeing that at about 1.72%, which is actually low relative to historic standards, where it might be more like 5%.
But you couldn't get to 5% now without crashing the system.
So the bank will probably come in being all-powerful, all-knowledgeable, the man or woman behind the curtain and say, Yo and behold, we are stopping the yield at 2%.
From now on, the 10-year can never go above 2%.
Just like King Kunikente going out in the ocean and putting up his hands, commanding the waves to stop.
It's not going to happen.
It's a force of nature, monetary nature, that can't be overcome in my studied view.
Which means once they command it to stop at 2% and it goes to 2.2%, the game's over.
So that's an example.
I'm not giving those exact numbers.
I want to give the idea correctly.
So there will be a limit.
And the limit is, I don't want a dollar today, and I certainly don't want one 10 years from now.
I've got to do something with these dollars I've saved.
I'm going to buy gold, or I'm going to buy food, or I'm going to buy food and gold, or I'm going to pay off this, or I'm going to...
I want to expand my business, which most people wouldn't these days with the uncertainties.
But regardless, there's going to be something along those lines where I want to do anything.
I want a jar of peanut butter.
More than I want to hold on to these pieces of green paper.
I want an extra two cans of tuna, because I know next time I go down to the store, the last time they were up 30%.
I don't make 30% of my money, but if I buy tuna, it's just like I made 30%.
What's happening is this currency is getting destroyed at the very end in a rapid fashion if people wake up to it.
That's what we're facing.
Now, if you would explain more about this 10-year bond.
Now, let's start with basics here, because I think our audience really needs to know this.
You're talking about a 10-year Treasury bond, correct?
Right.
Okay, so this is the Treasury Department Taking your money, giving you a note, a bond, a promise, and then saying, in 10 years, we'll pay you back what you paid in plus 1.7%, correct?
Correct.
Okay.
Now, when that bond price goes up, what is that saying about what's happening versus going down?
When it goes up, it means that you're making money on your bond and you're happy.
You're like a stock investor.
The price of the investment is being repriced higher.
So you feel good.
You feel wealthier.
You feel you made the right call and everything's wonderful.
If you're holding those bonds?
Yes, if you're holding those bonds.
But what is it saying about what's happening with the debt and the fiat currency?
So when there's too much debt, which is what we have, you know, you can't get rid of a debt problem with adding to the debt, but the bankers don't seem to understand that, so they continually add to the debt.
So, you really shouldn't say the bankers.
I mean, let's get real specific here, because I've It's inaccurate when I say that, you know, they print money.
What does it mean?
What it means is the federal government doesn't print money.
The federal government borrows money from the central bank, which is the Federal Reserve, which is mostly Europeans, and it's a private corporation.
So that script that we have is basically...
A foreign entity in a way.
Not to think of it that way, but you can think of it as we have to borrow it into existence.
And what's that based on, Mike?
Well, you know, it's a full faith and credit of the United States.
Well, that sounds really good.
Except governments produce nothing except misery.
So what do they really produce?
Well, they produce the ability to tax the populace and pay back the bankers.
So if you give out $1.9 trillion and, you know, a few percentage of that goes to the people and it's free money, Well, it adds to the tax base for you or your future posterity to pay it back.
It cannot be paid back.
So the bond market starts to recognize that.
So when yields go up, bond prices go down.
So that means that that dollar that's been worth less and worth less and worth less is starting to get worthless.
And once enough big money sees that it's becoming worthless, they get spooked.
So what do they do?
They sell.
Well, selling begets selling, which means what?
Well, in order to get a sucker to buy this thing, the yield goes up.
So, hey, I'll give you 1.7% to buy this piece of paper.
That's not enough risk for my risk.
I'm not doing, okay, 2.5%, not enough.
And that's what happened in 1980 when Volcker came in.
He put the T-bill rate up to like 17.5%.
The long bond was somewhere around 20%.
This is mafia money.
This is loan shark money.
When that happened in my lifetime, when I was in my mid-20s, I thought the currency game was over.
I was overeducated, Mike.
I thought when you're getting loan shark money from the federal government, it's game over.
I couldn't have been more wrong.
The best thing you could have done was sold your gold, Put it all in the 30-year bond and watch the interest rates go from 20% down to like 2%.
And that means that the bonds doubled, redoubled, and doubled again.
So you were just the happiest camper ever because you're collecting 20% On an investment that's doubled, redoubled, and doubled again.
So you're getting 20% on your initial investment, and you're quadrupled your price of your investment.
I mean, this is just the most wonderful world you've ever seen.
But it's coming to an end.
It goes both directions.
And now we're going to see the opposite happen over time.
Where that 30-year bond is the worst thing you ever, ever had in your portfolio and no one wants it.
No one wants to buy it because the currency is being destroyed and nobody wants to buy it from you.
Well, it reminds me of that cartoon.
I don't know if the character was Mr.
Magoo or whoever it was to say, I'll gladly pay you Tuesday for a hamburger today.
And remember that old cartoon?
I do.
And it's kind of like the Fed is saying, we'll gladly pay you in 10 years.
If you give us your money today.
Now, I don't know about you.
I would never take that bet.
I don't think the dollar is going to be here in 10 years personally.
Maybe I'm wrong, but maybe they can do life support for longer than I expect.
But who would bet and only get 1.7% to take that risk for a decade?
Yeah.
It's all about...
Gambling, really.
I mean, it's a casino now.
No one that knows anything about the bond market, the big players, are buying them for yield.
They're buying them for appreciation, and now the appreciation is coming out of them.
So now it's Panic City.
The bond dealers have too much inventory, and it's at a loss.
Someone that just started in a silver market and doesn't know how to hedge.
They bought all their silver at $30 an ounce, and now it's at $26, and they got a lot of inventory, and they're losing on every transaction because they've got to fill a market order at the current market price.
So they're losing, losing, losing, and you can't make it up in volume, and that's basically where the bond market is right now.
Okay.
All right.
Fascinating.
I love your technical details.
This is obviously something that people need to really get to know.
Can you recommend...
Is there a book out there that teaches people?
There is.
I... Well, there's one on How to Make Money in Stocks by William J. O'Neill.
That's really good on stocks.
Probably the best book I've ever read on stock investing.
And then on the bond market, I'd have to come back and give you one.
All right, we'll talk about that next time.
That's fine.
It's just that I have a feeling we could go on for hours and asking you questions about how these mechanisms work and so on.
But you've given us a lot, just a wealth of information already today.
So I really want to thank you for taking the time today.
It's been very enlightening already.
Mike, it's been my pleasure.
I've always admired your work, as I said earlier.
So looking forward to our next time together.
And until then, be the mighty health rangers that you are and keep helping people.
It's a great life to be of service to others.
So I commend you for that.
Absolutely.
It sure is.
And folks, check out David Morgan's website, themorganreport.com.
He's got his newsletter.
He's got his book, The Silver Manifesto.
You can buy that at any bookseller, I believe, as well.
So check all that out and feel free to repost this interview wherever you would like, unless it gets banned.
But whatever, you can try.
Go for it.
I'm Mike Adams.
I'm the founder of BrightTown.com and we've got a new live streaming feature coming soon.
So join up if you haven't already.
Use our free platform.
We are building it out so that you can have conversations like this and talk about concepts that are banned on other platforms.
Thank you for joining me today.
Be well.
Take care.
care.
We'll talk to you again soon.
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