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March 23, 2023 - Health Ranger - Mike Adams
29:27
David Morgan (the Silver Guru) warns Mike Adams...
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Welcome to this special interview with David Morgan, the silver guru.
His website is themorganreport.com.
Of course, I'm Mike Adams with brighttown.com.
I am a huge fan of this gentleman.
Mr.
Morgan joins us to talk about the Federal Reserve, interest rates, silver, currency collapse, and so much more.
David Morgan, you are awesome.
You've been nailing it for years.
Welcome to the show.
It's great to have you on.
Well, Mike, thanks for having me back.
And hopefully I can nail it again, as you say.
But there's so much going on, it's really hard to get the handle on it.
You know, there's a joke.
I used to have a handle on life until the handle broke.
Right.
Well, and that's just what happened with the banking system, I think.
We were just told, for example, that there's a bailout that's not a bailout, right?
And the worst bankers in the world who don't understand risk and banking just got bailed out of their bad banking decisions.
That's amazing.
Silicon Valley Bank.
What do you think about that?
Well, I think I want to add on to it.
I mean, when you sit there with what's going on with Credit Suisse and the National Bank of Switzerland, so you have a bank that lost $7.8 billion being bailed out by a bank that lost $133 billion.
That sounds like a good way to go.
Right.
Right.
It kind of sounds like the Bear Stearns bailout where the government had to force...
I forgot who bought them, but they had to force them to take $29 billion as payment as a bribe to take the bailout, you know, to take Bear Stearns.
Like, it's so bad, we have to pay you to take this company.
Yeah, that's right.
And, I mean, we are in a position of what I have forecast for years, many that are in the same field that I am.
And we saw, you know, systemic risks throughout the financial system, which means primarily the banks.
And once one goes...
Potentially, there's a domino effect that we've talked about.
And away we go, and we are there.
A lot of people are saying the Fed will backstop it.
They'll end up last resort.
They're going to make all depositors good.
It doesn't matter if you're over $250,000.
They're nowhere to touch all these issues.
It's going to be kind of a brief overview.
And yet, they don't know what they don't.
I mean, that sounds like a trite statement, but it's actual fact.
There's so much risk in the system, so much leverage in the system, and so all these banks are interconnected, international and national.
I mean, if you're in, you know, a remote nation state thinking you're safe, think again, because all the banks are Let's talk about exiting the banks because I know you know all the big players in the silver industry and you're one yourself.
I heard from many other people that last week was the most insane week they've ever seen in terms of customer demand For silver and for gold, and where they previously would have had customers calling and saying, hey, I want a few thousand dollars or tens of thousands.
Now it's very common for people to call and say, look, I need six figures of gold and silver.
And come to think of it, make it 200,000, make it 300,000.
That's what I'm hearing is happening across the board, people trying to get out of dollars and into metal.
What are you hearing, David?
Mike, I've seen something very similar.
I had those kind of calls when we had that flash crash in March 2020 when the stock market got hit really hard.
And then it got injected with finding money and went right back up.
But during that lull, calls of like, David, I've never bought gold in my life.
I've got a million dollars in the bank.
I don't want to make a mistake.
Who do I buy from?
Where do I store it?
And there was more than one of those.
Now, lately, in a general way, someone that works in the trade, at the Chicago Board of Trade, that I've known for years, called me on Sunday and said, I've got this much in the bank, I've got this much in the other bank, I've taken your time before to buy and I really haven't, but I am very serious.
I need to get this cash out of the bank ASAP. Tell me one more time, what do I do?
And so I gave them the information, and sure enough, on Monday, they made a rather substantial transaction that you just outlined.
Is that the only one?
No, that's the only one from that area working in that field, but it's on.
It's on.
I think the bank run has begun, and it isn't over yet, and I don't want to alert people or scare them.
I want to alert them.
And here's the deal, Mike.
If I could just continue.
Years ago, maybe three or so, myself and a couple others were given the idea that we would be having a food shortage well before it appeared.
And I said, it's a no-lose bet.
Because if you buy extra food and you're wrong, you can still eat it.
And if you bought something you don't like, which would be stupid, but people do that kind of thing, you can give it to the food bank.
So you're in a no-lose situation.
It's the same thing here.
If the banking system rectifies itself, which is highly doubtful, but let's say that everyone's backstopped and you have nothing to worry about, they'll just keep printing so everybody gets what's in their account, you're still in a no-lose situation if you take out your money.
And I'm not suggesting that anyone would take everything out and close your account.
What I am suggesting, particularly for those over the FDIC limit of $250,000, Move it.
Move it into something safe.
The safest to me is, of course, precious metals.
There's no doubt about that.
However...
There are people out there, I've got a lot of precious metals, and I still want liquidity, and I want to be safe.
I'm sorry to interrupt.
Your video kind of froze there, so I threw your website on there.
I just want to remind people, they can go to your website, themorganreport.com, and they can fill out this form here and get reports.
A free e-letter.
I put out three or four really important things a week.
I answer questions from non-paid members.
I try to be of maximum service to others.
I mean, I've been seeing this thing coming for a long time, as you know, Mike.
And now that it's here, I take no glee in that.
But there are still things that you can do to mitigate the problem.
On that topic, what you can do is go to a T-bill-only account.
So you can buy T-bills directly from the Treasury.
It's very easy.
You can look up on the web.
If you don't know how to do it or don't want to do it that way, all you have to do is find the search engine and type in T-bill only money market fund, and you can get into treasury bills.
You want bills.
You want something that's one month, three months, six month duration.
You don't want the 10-year bond.
You don't want the five-year note.
You want to be as close as you can to being liquid.
Cash, that's near cash, is close to having physical cash.
And just droning on a bit longer, Mike, I mean, I really have said for years that, you know, people should actually have physical cash, even, well, Mr.
Non-Fiat, myself, but cash is what everyone recognizes.
And in a grid down, bank holiday, you name it, any scenario that you come up with, having physical paper will work for a while, at least.
David, let me show you something that I have here on my desk.
I brought this as a prop.
It's all these failed currencies.
Do we have a close-up shot?
Yeah.
All these failed currencies from around the world have had this collection.
I thought I was going to use it for just one day, and then it ended up being such an important conversation.
And here I have fake Hollywood $100 bills, which will soon join the pile of failed currencies.
But I've got this one that is $10 trillion.
From the Zimbabwe bank, what is it?
The Reserve Bank of Zimbabwe.
I guess they forgot to reserve the dollars because this is 10 trillion dollars and now it's worth zero.
So what people need to understand is this is the cycle of history.
These currencies are printed into oblivion and that happens during bailouts and rescues and emergencies and they just print and print and print.
And it ends up going into oblivion, which is where we're headed.
Is it not?
Well, that's the direction.
That's very clear.
How it will end remains to be determined, and I'm not copping out on you, Mike.
The way our system is set up, meaning the Federal Reserve System, There's a mitigator in it, and that's the debt market.
So when these bonds become worthless, that's a huge deflationary effect.
So Zimbabwe didn't have an advanced capital structure.
All they had was currency.
They had no bond market.
They had no debt market.
And because we do, and it's supposed to be the safest thing that you can own, which is an absolute total 100% lie, but most, you know, that's what the banks use as their reserves.
They don't have cash in the vault, as everyone knows, as soon as they write to you on TV. What they have is digits on a computer, but that's a digit of a certain serial number, 30-year bond, a 10-year treasury note, or whatever.
That's their assets.
And so they are liquid, but they also change in price or value.
And what's happened is I'm sure you've said on other interviews, but when the interest rate goes up, the bond price goes down.
Oh, yeah.
We're recording this on March 22, 2023, and today the Fed just raised 25 basis points, which was expected, but it's another raise.
In fact, it's these rate raises that Revealed the problems with Silicon Valley Bank and other banks that had invested in these 10-year, in some cases, mortgage-backed securities or treasury bills that were paying extremely low yields, and thus they were out of the money for the reason that you just said, David.
But yeah, could you answer that about the Fed raising interest rates and probably a couple more rate increases yet to come, or do you think so?
So advanced capital structures like we have in the world, it's all based on debt and credit.
And when you have to adjust, what happens is you need to sell an asset.
We talked about it a minute ago.
So assets for banks or bonds.
And if the yield was 0%, and now it's up to 5%, you have to discount your asset, your bond holdings, that you bought at 0% or 1%.
And you have to discount them to the same level as the current interest rate, what's in the market, which is what we'll call 5%.
So in order to do that, I don't have the math in my head, but you might have to take a bond that's $1,000 face value at 1% and sell it at a 30% loss.
So you sell at $1,000 for $700 because the buyer must get the same yield.
That's how the market moves.
But what's happened now in the last few days is the Fed says, oh, don't worry about the interest rate.
All you have to do is sell us your bond, and we will give you par.
So that $1,000 bond in the free market would be $700.
The Fed will pay you $1,000.
There's a caveat, and a lot of people haven't talked about this, Mike, and that is it's good for one year.
Hmm, that's interesting.
Wow.
So the clock is ticking.
The clock is ticking.
I really think this system is nearing its demise, and there's so many other factors we can talk about.
You know, this is another example of what you just mentioned.
Is it the Treasury or is it the Fed offering to pay par for these bonds?
The Fed.
Okay, so this is another example of under Biden, these controllers will say, just making it up as they go along.
There are no solid rules anymore.
A typical investor, a rational investor, can no longer trust that any rules apply.
For example, two weeks ago, the FDIC rule was if you had more than $250K in one of these banks and the bank went under, you would lose it.
Now, suddenly, that's different.
It's just been changed on the fly.
And this is so indicative of the way, even under Obama, the way they ran Obamacare.
It's like, oh, we're just going to call it a tax, and we're just going to force it on you.
They're just making up rules as they go along.
Even Credit Suisse, for example, they just zeroed out $17 billion in AT1 Tier 1 bonds.
Those bondholders have got to be, their hair must be on fire at this point with infuriations.
Like, wait a second, what about the shareholders?
I thought the shareholders were supposed to take the hit before these AT1 bondholders take the hit.
They're just making it up.
So how does anybody have faith in the system at this point?
Well, I think that's the most important point that we can make during this interview.
And that is the amount of uncertainty.
The idea first that you, one of the first, said, you know, the law right now is the Frank Dodd bill said one thing.
There will be no more bailouts.
Except, as you said on your program a few days ago, it's a non-bailout bailout.
Well, hell, it's a bailout is what it was.
But they're not supposed to.
They are making it up as they go along, which leads me to this logic.
If we don't know What the parameters are.
We don't know what's going to happen, regardless of what they put in print, regardless of what the law says.
We need to take personal action.
That's why I'm saying, going back to the food analogy, you're better off to move money into metals, move money into a T-bill-only situation, and take some physical cash out of the banks.
You close your bank account, no.
But you want to mitigate the risk, because what's good for the goose is not good for the gander.
What do I mean?
I mean that maybe in some cases they'll go above $250,000, but a week from Wednesday they make up a new rule as they go along.
Exactly.
We just decided anyone over $250,000 that hasn't been smart enough to get out of the banking system is going to have the bail-in rule and everything above $250,000 is gone.
And so if you don't know what's coming at you, you've got to take defensive action.
And again, I think this is the most important thing we can say.
I certainly want to keep the discussion going, you know, further.
But that's the idea.
I have an adage that's, you know, from years of trading, and that's when in doubt, stay out.
If you have doubt about what's going to happen to your bank account, take it out.
Well, my head is filled with doubts about the solvency of the banking system right now for the reasons we've already discussed and the fact that the FDIC doesn't have enough money to bail out but a fraction of the banks, especially now after they just spent all their money on Silicon Valley Bank or at least a big chunk of it.
So, you know, what happens when the next three banks fail?
The FDIC is going to go run into the Fed and say, print money to give us to bail them out.
And now we're in a cycle of just printing money for bailouts.
And then you have banks that are just run by cash infusions from a currency printing press.
And that never ends well.
I mean, that's a spiral of death of the currency.
History has shown us, is it not?
Currency crisis.
If I could just sharpen the point even further.
So you get bailed in.
You have 100,000 in the bank.
And it shouldn't be taken from the FDIC, but the bank decides it is.
Or let's go the other way.
Let's say you got $350,000, so your $250,000 is protected, your $100,000 gets bailed in.
So what do you get?
Well, you get stock in the bank.
And this is what happened in Cyprus and some other European countries.
And so that stock certificate that you get now that you're an equity holder in this establishment eventually makes it to the market where you can sell it.
In all instances, Mike, so far that I'm aware of, of major banks, or maybe some little ones I don't know about, there's five cents on the dollar.
So your $100,000 that you got stock for, when you're lucky enough to be able to sell it, you're getting five cents on a hundred.
Yeah, 95% wipeout, yeah.
That's a wipeout.
Yeah, exactly.
Let me switch gears a little bit and ask you a question about gold and silver, and I'm going to relay this question to you because this is a question that's asked of me, and it's a trick question, and I want you to answer this because the people asking the question don't understand a key point that I know you do, but here's the question.
People say, well, why should I get gold and silver and sit on it?
It's not working for me.
It's not earning anything.
It's just sitting there.
Of course, that's a flawed theory because of inflation.
If you're sitting on dollars, your dollars are actually working against you.
Answer that question, if you would, please.
Why gold and silver is, or could be, a rational choice, or at least part of a rational choice of a portfolio of risk aversion that people might want to consider?
Well, there's several ways that my mind's taken off, Mike, but here's one, and reel me back in if it's not succinct enough or clear enough.
Gold is money, and everything else is credit.
So you need a constant.
If you're going to build a home Or an office building.
You need to know that a foot is a foot.
And a yard is a yard.
And a cubic yard of concrete is a cubic.
If you had a variable in anything, the architect would not have any meaning.
The engineering drawings wouldn't mean anything.
You need a constant.
It's the same thing in money.
And money is a constant if it is gold or gold and silver.
Now, when you have a depreciation like we've had, The solid part is the money.
It's not the currency that fluctuates.
And the currency is just paper.
So the idea is, number one, gold is the monetary hitching post of the universe.
Secondly, gold is God with an L in it.
These are facts proven over 4,000 or 5,000 years that when the free market reigns, what's determined to be money are The precious metals.
Interest doesn't mean anything once you have a currency collapse.
Exactly.
You could get huge interest rates in the Zimbabwe or the Argentine peso or any of these collapsed currencies that you have on your desk.
Wow, I'm getting a 17% return.
But if inflation's 30%, what good does it do?
And the other parts of the stock market, this is another thing I haven't heard too many commentators talk about, Well, I'm in the stock market and, you know, I'm diversified.
Well, during the YMR Republic and many other instances of those failed currencies that we showed, the stock market does go and it goes hard.
It goes almost straight up, but it does not keep you in pace with the inflation rate or the destruction of the currency, which is a better way to say it.
So you'd be better off not being in a bank and being in a stock market Let's say an index fund or something.
That'd be better than being in the bank, but it's not as good as being in physical metal.
That's the only thing during the Weimar Republic and other instances like Zimbabwe, Argentina, where you kept at least par if not gained purchasing power.
Because the reason precious metals are called precious is valid.
They are.
There's not much of them.
And yet we have a pricing mechanism based on On the futures markets, that's highly convoluted because you could create an infinite amount of paper gold, an infinite amount of paper silver.
And as long as that system isn't broken, that infinite supply acts as if it's real until it's not.
And right now, we're probably nearing that point.
David, let me throw another example your way.
One of my readers actually sent me a letter that she received from her pension fund, which is run by a university system of a U.S. state.
This woman has been collecting a pension.
For several years, because her husband, who was the teacher, died over a decade ago.
And the letter said, okay, the annual increase of the payout on this benefit is maxed at 5% per year.
So you're only going to get 5% increase per year.
That's the max.
Now, we're living in an environment of inflation.
I argue it's over 20% when you figure food and other things.
So 5% doesn't go very far.
But importantly, the letter also said your maximum lifetime increase from the original base benefit is 80%.
And that has just been reached.
That's why this letter was received.
So here's a person who's living on a pension that right now is about $3,600 a month.
Which can still buy you something today, but it's never going to increase, even though we're living in a highly inflationary environment with more money printing because of more bailouts.
Don't you think, David, that all across the country, people who are living on pensions, or even Social Security for that matter, are going to receive similar types of letters soon, or maybe already?
Absolutely, Mike.
It's a very sad situation.
I've done it in a few interviews.
Probably haven't done it often enough.
About the pension crisis, the social security crisis, and what's happening to fix income situations.
And I'll just add on to what you said.
I think you did an excellent job.
This is one of the stories that I just keep in the back of my mind because it just really gives me some heartache.
So during the Weimar Republic, there was a gentleman that bought a whole life insurance policy.
So he had contributed this over his lifetime, 30, 40 years.
And had this life insurance policy.
When he went to cash it out, it took more to buy the stamp to send the letter to cash out his lifelong savings that he had in his life insurance policy.
So that's an extreme case, but it really brings home the point of how devastating a currency crisis can be And will we get to that point with the U.S. dollar or not?
I don't think it'll get that bad.
But what's bad?
What you just outlined.
Here's a woman.
I mean, her husband paid into it for, you know, his working life.
And you think you have stability.
You think you have security.
It does adjust until it doesn't.
And, you know, I'm not being facetious here, Mike.
It's an extreme thought, but it could happen.
Once these accelerations take place and the inflation rates, as you said, 20%.
I mean, use John Williams' numbers.
It's close to that.
And then it goes to 40.
That's a doubling of it.
And then it goes to 70.
I mean, is that going to happen?
We don't know.
What we do know is that all fiat fails.
We're accelerating.
The Fed doesn't have a clue what to do.
They acted tough with a quarter-point increase.
The gold and silver market took off.
The bonds got hit again.
And people are saying, don't worry.
The mainstream is saying, don't worry.
Be happy.
We've got you covered.
They don't.
Right, and you know, in this case, what this reader told me, and I'd love your reaction to this, was that her late husband had paid in maybe a couple hundred dollars out of every paycheck.
And my thought is, if he had, instead of paying into the pension system, if he had taken a couple hundred dollars out of every paycheck and purchased gold, and just had the physical gold, then she, the spouse now, the widow, would be sitting on a pile of gold.
Right.
And just spending it as needed, and that gold would be worth, obviously, you know, $2,000 an ounce right now, roughly, or close to that.
And instead of having a letter that, oh, yeah, we're not going to increase your payouts ever again.
You know, that's the difference.
What are your thoughts?
Yeah, well, you go back to gold's the monetary hitching post of the universe.
That sounds like such an exaggeration, but in reality, that's it.
And I get pushback, especially at some of these conferences.
I mean, the gold conferences, I'm in an echo chamber.
They all agree, pretty much.
But the mainstream shows, which I do several of those, like the money show, for example.
I mean, I get a lot of pushback.
You do a lot better in the stock market.
That's not true.
I mean, let's go to 1913.
The Fed starts, okay?
You have a very wealthy uncle.
The uncle gives you a million dollars.
The million dollars isn't cash.
So now we are $110.
Ten years later, that million dollars is a million dollars.
Nearly the amount of purchase power it had 110 years before.
But if he gave you gold coins at $20.67 the ounce back in 1913, that'd be $90 million in fiat today.
So you can't tell me That gold doesn't serve its purpose.
Did he make a lot of money?
Not really.
What it shows is that the currency has been destroyed over 110 years, but it has the same value that it had 110 years previously.
That's the purpose of gold.
Money is money.
Everything else is credit.
Credit fails.
And this is what the bank's trying to do.
Solve a debt problem by adding more debt.
Guess what, Mike?
That doesn't work.
Yeah, exactly.
We're headed for some very interesting times.
I really hope that you can join us again soon.
I mean, we're just about out of time for today, but, you know, your insight has been really critical for a lot of people.
I've followed you for many years, you and Mike Maloney and many others who, I mean, I've received an education from Maloney about You know, he's got great YouTube videos and so on.
I've received an education from you and many other people out there.
You know, Lou Rockwell and the late Dr.
Gary North, in fact, going back a ways.
You know, the truth lasts.
Fictions collapse, but the truth persists throughout all time.
And what you have said, David, has been a timeless truth.
And I thank you for joining us today.
Any final thoughts?
Nothing more powerful than the truth, Mike.
We need more people like you that are willing to stand up and do it.
And also, be able to be flexible enough.
I mean, brightly on TV, my friend Jim told me about, you know, I've followed you for years and what you were doing, because you've been ahead of the curve quite often, and part of it was the censorship, cancel culture, if you will.
And in order to get the truth out, sometimes you have to go to great lengths, but you're one of those that have done it and a leader in the field, and I commend you for that.
Well, you're exactly right.
If we didn't build our own system, we would be completely silenced.
And even now, they won't let us share Brighttown.com links on Facebook, not even in a private message.
So you can't even tell your friend about this video on Facebook.
But the answer to that is get off Facebook, people!
Get on to alternative social media, Getter, Gab, Truth Social, Bright Town Social, whatever it takes.
Get into the real world.
But thank you, David, for joining us.
It's always a pleasure to speak with you.
And reach out to me at any time if you've got alerts or anything.
We can get you on even for a shorter segment if you want that and get the word out for you.
Well, very good.
Thank you, Mike.
All right, thank you.
Take care.
And folks, the website is themorganreport.com.
Just go there, sign up for his free newsletter.
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Enter your name and your email address.
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You're going to get, I mean, David Morgan has wisdom of experience, and he will share it with you at no charge.
Thank you for watching today.
Again, I'm Mike Adams of brighttown.com.
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