The Financial Big Bang Part 4: Gold Revaluation and the Death of the Middle Class
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All right, welcome to chapter four of the financial big bang.
I'm Mike Adams, and thank you for joining me here.
In the previous chapters of this book, chapter two, we covered the gold revaluation gambit and looked at how the Federal Reserve seems likely to work with the Treasury to revalue gold to generate lots and lots, I mean trillions of dollars of new money for the federal government.
to pay off debt holders and try to give the U.S. some more leg room a few more years maybe although our math showed that it's maybe only one extra year we'll see and then in chapter three we talked about stablecoins and how that's designed to find new buyers for treasuries through the stablecoin proxies we also talked about the possibility of attempting to monetize or collect on student debt which is the largest asset on the
books of the federal government and maybe even selling off some public lands etc and we came to the conclusion that all Together, maybe, maybe this could raise about $9 trillion, which is, you know, it's about a quarter.
of the current public debt, the national debt, but it's only a tiny part of the total entitlement obligations.
And then I concluded the end of chapter three with the idea that ultimately they're going to have to find a way, I mean, accounting wise, and this is a horrifying thought, but the only way to balance the books is to somehow get rid of a lot of people, a lot of people who are collecting social security and pensions and benefits and Medicare, et cetera.
So that's how we ended up chapter three.
Now in chapter four, we're going to talk about the ramifications of all of this.
Specifically, if gold is revalued at, let's say, $12,000 or $15,000 an ounce, what will happen next?
What does this mean for the price of silver?
What does it mean for other fiat currencies?
What does it mean for the price of commodities or the price of goods via inflation?
So to get answers on this, of course, I listened to a lot of interviews.
I dug through a lot of documents.
I showed you some of the Federal Reserve documents in the last or at the end of chapter two.
But I also specifically reached out to David Morgan to ask him this question.
What happens to silver and other commodities if gold is revalued at, let's say, fifteen thousand dollars an ounce.
And David Morgan provided a very detailed response.
He said that the shockwaves that would be sent through the global financial system would crush faith in fiat currencies worldwide, not just in the dollar, but other currencies.
He said that initially he thought that it would cause some other currencies such as the euro to rise versus the dollar, because basically the message would be that the only way to save the dollar is to divide.
value it against gold.
And that message would be heard loud and clear across the world's financial markets.
So you would see other currencies go up briefly.
But overall, fiat currencies would be crushed worldwide and there would be a mass rush into commodities.
Now, I include gold and silver in the large group of commodities.
Precious metals is a subgroup of commodities, just as oil is or oil is.
aluminum or fertilizer even or what have you.
But all commodities would go up in
And this is exactly what that looks like.
So the dollar is collapsing in this scenario.
Commodities are costing more and more dollars to purchase, obviously.
And the end result of this is that people who have the commodities are going to be very well off, while people who primarily hold dollars are going to be financially destroyed.
And that's exactly what we talked about in chapter two.
But what about the price of silver?
Well, David Morgan told me that the price of silver normally would follow gold at some ratio.
The gold to silver price ratio, which right now is something more than 80, and it's been, gosh, I mean, it's been 100 recently, or right around 100.
Historically, that ratio is much, much lower.
It's typically closer to 20 to 1, which means that silver has a lot of catching up to do in terms of its price revaluation.
And depending on where you think that ratio might go, and also depending on the industrial demand for silver, which is, by the way, suppressed because of the economic downturn.
So there are fewer companies building solar panels, for example, that use silver.
There are just fewer projects that are using silver because of the economic downturn.
But nonetheless, the upward price pressure could push silver into the economy.
into something like $250 an ounce or even David Morgan says $750 an ounce if gold is something like $15,000 an ounce now these are just projections nobody knows for sure but if gold is revalued it seems that silver after some lag time is going to follow relatively quickly And that makes sense because we're watching the collapse of the dollar and other fiat currencies relative to all commodities.
That's why fertilizer will go up in price.
That's why iron ore, like I said, or copper or aluminum, or, you know, frankly, anything, titanium, anything that you need, even oil, the dollar price of oil will go up because all commodities that are purchased in dollars, well, you're going to have to spend more dollars to get them.
So the real net effect of this is that this is going to destroy the middle class.
There will be no more middle class, essentially.
There will only be wealthy people.
and those are the people that own or control commodities and then there will be impoverished people and those are the people who had all their savings in dollars or dollar denominated assets such as treasuries or bank accounts or pensions or things like that or CDs at a bank.
You'll be destroyed if you stay in dollars.
Now, the fact that then we will see the destruction of the middle class, this is very bad for society.
And I'm not celebrating the idea that you and I know in advance and yeah, we can position ourselves with extra gold and silver or whatever.
and we're going to be fine.
I don't want to be fine in a society surrounded by impoverished, desperate, starving people.
You know what I mean?
I would much rather have widespread decentralized abundance so that everybody has a chance at making it.
I don't want to see starving people.
I don't want to see desperate people because that results in, of course, crime.
So if you have gold and silver, you need to realize that as this event unfolds, you're going to have more and more people having to choose between paying the mortgage on their house or buying food or paying for health insurance, let's say.
Each one of those is typically thousands of dollars a month right now.
And I've seen online videos of people sobbing older women saying that they have to choose between eating or having health insurance or maybe selling their house and renting, which is always a long-term losing proposition.
So people are going to be desperate.
And in that desperation, lots and lots of people are going to turn to crime.
you're going to see a strong rise in robberies or, you know, maybe kidnappings, break-ins, whatever.
You're going to see all kinds of violent crime taking off across America.
Just out of desperation, because people will be starving at that point.
And you're going to see the impoverished masses become very unruly and very unhappy with the powers that be.
You're going to see way more uprisings and protests and not just left wing Democrats, let's say, not just, you know.
the infrastructure for it has just been signed into law in Trump's big beautiful bill.
The big beautiful bill creates the funding and the infrastructure for massive AI surveillance, biometrics, checkpoints, surveillance towers, facial recognition, gate analysis, all kinds of different ways to spy on people.
And the current excuse for that is that we need this technology in order to find all of the illegals.
But just like the Patriot Act was ultimately turned against the American government, even though it was initially approved in order to fight terrorism and to spy on the terrorists.
Well, of course, that was turned against the American people.
In fact, it was turned against Trump.
It was part of the spying on Trump and Trump officials.
Well, the same thing is going to happen with this AI surveillance system that's designed to try to remove illegal immigrants from America.
That entire infrastructure of AI surveillance is going to be weaponized and used against the American people.
possibly under a different administration.
It doesn't necessarily mean that that's Trump's plan, but once the infrastructure is in place, of course, anybody can use it, any future president or any future administration, and they will.
They will always weaponize it against the American people.
There are no exceptions to this.
Every law, everything that has ever been passed in order to, you know, make you safer, ultimately gets turned.
against you.
That's just how history works.
So America is going to look like a dystopian sci-fi novel with all kinds of AI checkpoints and facial recognition and a surveillance grid government that's spying on all the citizens in order to prevent them from revolting against the financial collapse that has been engineered by Trump.
The collapse that's going to wipe out the middle class.
So something like maybe one-tenth of one percent of the population is going to be okay during all of this.
That's going to be the people who have medals, basically, the people who are squared away and who saw what was coming and took action ahead of time.
People who own the roof over their heads, let's say, and who have enough assets to pay the crazy, insane inflation prices that will become commonplace.
But the vast majority of the population will be destitute, and then, of course, they will turn to desperation.
And this will include people that you know.
This is why it's important that you don't run around bragging everybody, you know, how much gold or silver that you have.
or that you know you have it in your closet or whatever i mean this is why i vault gold and silver so i don't want somebody come into my place and uh you know, trying to get it by force.
Of course, even if they tried that, they would have to, you know, dodge bullets.
And that brings up the next important point that self-defense is going to be critical during this time.
So because of all the robberies and lootings and home invasions, et cetera, you're going to have to take extra steps for security.
So what you're going to see in society is, of course, the impoverished masses desperate for food, desperate for shelter.
And then you're going to see the well-off people hiring security guards or having walls and security gates or living in compounds where they have extra security Or probably they'll be purchasing security drones, maybe like doggy drones or flying drones that can, you know, scan the perimeter.
I've been interested in just finding if there are any like dog robots that can do security.
I think that's going to be a very big product area coming up for this very reason, because there will be so many impoverished people that security is going to become a big issue.
Now in this system, you're going to witness the rapid breakdown of society, the breakdown of the rule of law.
Of course, those who have money and political power.
power will be immune to any kind of justice.
They will be able to get out of anything.
They can do anything they want.
And the court system will never hold them accountable.
We're almost there right now, but it's going to get a lot worse.
You're going to see a lot more people refusing to pay taxes, arguing that they cannot even afford it because if they pay taxes, then they can't afford to eat.
or they can't afford to pay the mortgage on their home, things like that.
So you'll see an erosion of income taxes and again a lot more protests against the government at the same time.
The streets of our cities are going to collapse even further into chaos and lawlessness.
You're going to see more people turn to drugs and addictions.
And so much of the country, at least the urban areas, it's going to look a lot like Chicago or LA or downtown Seattle or Philadelphia for that matter, which is really saying something.
And this is the future of America until the collapse happens.
There will be a collapse.
The dollar will one day go to zero.
The treasuries will go to zero.
The U.S. government will default and it will break apart almost certainly and then Washington DC will be no more and from there it's kind of up to us to decide what happens next but this entire process could take many years it could take a decade or even longer and during this process you're going to see all kinds of AI automation taking more jobs more factory jobs more desk jobs more
government jobs, more tech jobs.
You're going to see mass layoffs, mass joblessness, even among the well-educated.
And this is only going to exacerbate the collapse and decline of the U.S. Empire.
And that's why the powers that be probably prefer something like a nuclear war to take all these people out before they rise up against the government system.
Understand that a couple hundred million unhappy, starving people, that's a threat to the power system.
I mean, you know, the political power.
So they don't want that to happen.
They would much rather find a way to eliminate those people than to see them rise up.
So these are some very important things to think about.
So let's pivot for the rest of this chapter.
And I want to discuss the importance of where you are as all of this goes down.
So we're going to see very different impacts regionally.
And I want to talk about that in more detail.
But the overall emphasis here is that, again, the middle class is wiped out.
We have a large number of desperate, impoverished people who can't afford food, can't afford housing, can't afford insurance, etc.
We have a very small number of very wealthy people who can hire armed guards, etc.
But almost no middle class.
Now, in this environment think about it for yourself do you want to be around a high population density area with a lot of impoverished desperate people the answer is no of course not so as i've always said cities are death traps and you don't want to be in the downtown areas that's for sure you don't want to be in these cities as all of this unfolds because cities will be the anarchy zones And
I do believe that law enforcement will declare entire sectors of large cities like LA to be just no-go zones.
Like we're not.
even going to try to police those.
Maybe East St. Louis, maybe you know south chicago i don't know different areas maybe areas of new york city for that matter if it's not already destroyed by the socialist mom dami or is it mom dami or mom dani anyway it's mom something and uh he's gonna destroy new york city with his policies but that's even separate from all of this that's happening uh nevertheless Think carefully about where you want
to be.
Now, it's very important to be, in my opinion, in a high polite sector of the country.
And by high polite, what I mean is a place where people tend to follow the rules on their own.
Well, that's not New York City.
That's not Boston.
You know, that's not Chicago.
It's typically like a small rural town somewhere, usually in a red state.
Sometimes in the Bible belt, but not always.
You can find small towns of relatively honest people in Arizona or rural Colorado or Utah for that matter, right?
So that's where you want to focus your attention.
And if you're already in a place like that, that's great.
I mean, this is a very late time to get up and move.
But you also want to reevaluate where you are right now and see if you're in a danger zone where you might want to move in the time remaining.
Now, I believe that the impacts of these economic events that we're talking about here, the Big Bang event, the impacts will not be universally felt across the United States or even Canada or Europe or other countries.
It's going to be a very broad spectrum of effects.
In some areas, the effects will be minimal.
That's sort of the law and order type of towns in rural Texas, for example, or rural towns in rural Tennessee or frankly a lot of rural areas, rural, you know, Oklahoma, Missouri, whatever.
I think that people in those areas are going to be relatively well off.
I think you're going to find a lot of local cooperation.
You're going to see the spontaneous rise of, you know, farmers' markets.
And you're going to see high security because local law enforcement will, they will not put up with looters.
I think they'll shoot the looters or hang them.
And like hang them.
over Broadway Street, you know, just to send a message like, this is what happens if you loot in this town.
Oh, okay.
Now we know.
In the cities, though, law enforcement will be hampered in their ability to do anything as even they are right now, you know, because the city mayor will tell them to back off and don't enforce the laws and don't arrest the looters, certainly don't shoot the looters, etc.
So what you're going to see in those areas is a breakdown of law enforcement and the rise of criminal gangs that will become their own very powerful local power structures.
And in many areas of certain cities like LA and probably, you know, San Diego and, you know, Take your pick, Denver.
you're probably going to see gangs running things rather than law enforcement.
Remember the Chaz zone in Seattle a few years back?
That was a tryout, a little pilot project for this.
And the police didn't even bother to go in there.
The police would not go in and take back Seattle.
And that was during relative peacetime.
And Chaz was run by criminal gangs.
And if you wanted to move through Chaz or do business in Chaz or sell your human trafficking cargo, which is kind of what Chaz was.
was doing, then you had to pay a tribute to the gang leaders of Chaz.
And that's the way it's going to operate in a lot of areas.
So you can expect that if you want to exit a downtown area when all of this happens, you're going to have to pay dearly.
It's going to be more than just an exit toll.
It might be a price too heavy to even pay.
It might be, yeah, we'll let you leave.
Give us everything you own.
Give us the keys to your house.
Give us your daughter.
You know what I'm saying?
When there's no law, anything goes.
The criminality runs rampant.
And that's what you're going to see if you get stuck in these areas.
So it's critical to be in the right place before this happens.
Now, you may recall when the war on Ukraine started back in 2022, there was a very short time window there.
It was late February.
It was February 22, I believe, when Russia attacked Ukraine with the special military operation.
For a short period of time, you could get out of Ukraine if you had the proper passports, etc.
There was mobility.
That window of opportunity closed very quickly.
I don't recall exactly how long it was.
It seems like it was a matter of maybe less than two weeks or something like that.
And the people who really wanted to get out, for the most part, they were able to.
But they had to leave behind a lot of things, their home, their belongings, etc.
And that...
that's the other thing to get into your head right now you might face a situation where you need to mobilize And in doing so, you are going to sacrifice your assets.
You're going to sacrifice your home.
You're going to sacrifice, you know, your pickup truck or your gun collection or your ammo boxes or whatever, you know, you're going to save your dog, you're going to bring at least one rifle with you, you know, etc., but you might have to leave a lot of things behind.
You need to be mentally equipped to be able to do that.
The area where you are living might be overrun, might be overrun by chaotic domestic forces.
or it might be foreign forces that invade once they see how weak America has become.
So mobility is key.
And having a go bag in your vehicle is also absolutely critical.
And then you're not reliant on gas stations because that's obviously where things are going to go off the rails.
Most people have to line up and get gas.
You don't have to if you have a diesel vehicle and you have some extra diesel with you in the back of the truck or whatever in some rugged steel diesel containers.
Because diesel is much safer to transport and handle than is gasoline.
By far, diesel is so much safer.
Diesel is actually hard to ignite.
I've talked about this before.
So storing diesel gives you that off-grid sustainability.
It can power your diesel generator.
it can power your diesel vehicle if you have to bug out but remember Primarily, you don't want to bug out.
Your best place to be is at home.
Every time you leave your home, there's a risk.
There's a risk of you being robbed or shot on the road there's a risk of car jacking you know I'm talking about in a collapse scenario there's all kinds of risks from leaving your home so if you can stay then definitely do that and make sure you can defend yourself and that's going to require of course working with your local community knowing your neighbors,
Maybe knowing your sheriff and also having your own firearms and ammunition and the know-how to use them if necessary in your self-defense.
You're going to need a night vision or a thermal scope or a thermal monocular so you can have somebody keep watch on your property at nighttime and you can see incoming threats.
And I also want to encourage you to think about drones because right now drones are the best way to monitor your property.
You can launch a drone.
You can do monitoring from the air.
There are a lot of relatively affordable thermal drones now that are very good.
good at search and rescue operations, which is very often the same as a perimeter security operation.
And if you're buying one of these drones, all you got to do, if you're talking to a salesperson or whatever like there's a company, Floridadronesupply.com is one that I've seen.
They have a lot of videos.
You're talking to salespeople and you probably don't want to say, yeah, I need a thermal drone so I can spot, you know, rogue humans in the middle of a Mad Max scenario.
No, just say, I live on a ranch and we're trying to find, you know, lost cattle or whatever.
Or I'm going to donate time to the local sheriff's department for search and rescue operations.
I mean, you know, you don't have to go all out with your full explanation of why you need a thermal drone.
You know, exercise wisdom.
And then let's talk about forms of money, because you're going to need to be able to obviously purchase things.
Barter works, but it's very inefficient.
It's hard to find somebody that needs exactly what you have that you want to trade with.
So, of course, currency becomes critically important.
Well, what will be the local currency?
That's going to depend on where you are when it all hits the fan.
If you're in a place like Texas or Florida or Utah, then the state itself is well prepared for la.
They're gearing up for it.
But a lot of other states like California and New York and basically blue states, they won't have any idea what to do because they don't understand economics or currency or anything.
And there, it's probably going to very quickly go from dollars to silver.
Or maybe spendable forms of gold such as goldbacks.
But silver will be the poor man's currency, so to speak, or the common man's currency.
Silver will be used in a lot of commerce, even more than gold because of the smaller denomination units of silver.
So you'll want to have some one ounce silver coins and maybe even some constitutional silver or junk silver, as it's called, which are the 90% silver U.S. mint coins like quarters and dimes and things like that.
And those are available from pretty much all the gold and silver retailers.
You can get bags of so-called junk silver.
it's not a bad idea to do that and they're all pre-1963 i think it is i i keep forgetting the exact year but it's i think it's pre-1963 coins that had the 90% silver content.
You know, back when money was money, before it was just a debt obligation.
Yeah.
So while the dollar is easily recognizable in terms of cash, it will, of course, be plummeting in value, possibly by the day.
So while I think it is a good idea to have some amount of hard green cash, or whatever cash you have in your country, I wouldn't overdo it.
I would instead invest in silver or gold or goldbacks or, you know, different forms of precious metals and you know your best value per ounce is to just buy silver and gold coins from a recognizable mint and of course you can call our sponsor on that if you wish metals with mike.com takes you to battalion metals if you use the discount code ranger they'll waive the shipping insurance fee that'll save you a
little bit and they'll get you honest pricing honest legit coins from recognized mints including the us mint if you want although there's a higher premium for that obviously or you can buy gold backs that are spendable gold you know you can get those at verifiedgoldbacks.com that's our site we show the lab testing results there there's other forms of gold and silver all kinds of things you know there's silver and gold jewelry for example that will have some value but
not an easily recognized value there's also silver bars there's gold bars but I don't recommend those because it's much less spendable So you'll need probably some ammo.
A 9mm ammo will be as good as cash.
Same with 22 long rifle ammo.
Probably AR-15 ammo, which is 556.
That will be as good as cash in many areas, especially in areas where obviously firearms are widely owned, like Texas or other southern states or even Midwestern states.
So it's a good idea to diversify in all of this.
I happen to think that a really great barter item is going to be iodine, because iodine is very hard to get.
Even right now, for us as a company to buy a large amount of iodine, it can sometimes be tricky because I don't know if you knew this, but the DEA has some kind of oversight on iodine because apparently it's used in the chemistry to make meth.
I mean, I don't know.
I didn't watch Breaking Bad, so I don't know how the chemistry works on making meth.
I don't know why it would even need to use iodine.
That seems very odd to me.
But apparently that's one of the things you can do with iodine.
However, I think a far better use is to protect your thyroid gland from the fallout of cesium-137, or I'm sorry, iodine-131 in this case, obviously.
But there's also cesium-137 that's falling out following a nuclear detonation.
So I think that iodine, which protects from radioactive iodine just to be clear it doesn't protect from cesium but iodine is going to be a very valuable barter item maybe more valuable than gold if there's a nuclear war obviously and it's relatively cheap and available right now you can buy it at our store if you want healthrangerstore.com just search for iodine you can see it right there again going to be impossible to get at some point Other barter items that will have high value
will include coffee and cigarettes and alcohol, you know, whiskey and vodka and whatever.
And I like to recommend people storing large amounts of vodka because vodka, you know, high, high alcohol content, basically cheap vodka can be used to make herbal extracts so that you can make your own medicine.
And remember that the best mixture as a solvent in order to extract the medicinal compounds from most herbs is 50% alcohol and 50% water.
So you can roughly just mix half and half vodka and water.
I know that's not exactly 50-50 because vodka is not 100% alcohol.
But if it's in the ballpark, it's okay.
You're going to get a good extraction of your herbs.
You'll be able to make medicine.
You can maybe barter medicine, sell medicine, stockpilot, use it yourself for all your medical needs, et cetera.
You might end up healthier in a collapse than you are in the current medical death care system.
Frankly, a lot of people would be healthier just to stop going to the pharmacy, stop going to the doctor, which may happen.
I'm not saying that you should do that.
right now.
I mean, you know, make up your own mind on your medical situation.
But all these drugs they have people on are not really making people healthier overall.
There may be certain cases where it does.
Anyway, the bottom line in all of this is that you need to make sure you're in a location that seems amenable to carrying out trade, farmers' markets that has strong local law enforcement and no willingness to put up with looters and robberies and things like that.
So you want to be basically in a pro-Second Amendment county.
with a pro-Second Amendment sheriff.
You want to be outside the city.
You want to be in a red county and a red state.
And you want to be well-armed and you want to have neighbors that are pretty self-reliant.
It's good to have neighbors who are farmers, for example.
Farmers tend to be very, very capable.
And if you get into a rural area, which I strongly recommend, then you'll find people who have welding skills, people who have tractor repair skills.
You know, you'll find people who know how to build fences and take care of cows and milk a cow, you know, all kinds of things like that or raise chickens.
And these are extremely valuable skills for surviving in these scenarios because you don't want to be in a city when the Mad Max scenario comes to town, You're going to be dead very quickly.
You want to be in a low population density area.
Now you can download and listen to my entire book called Resilient Prepping, which is free of charge, by the way.
It's at resilientprepping.com, and there I talk about all these skills, the high-tech, low-tech, and no-tech solutions for survival, including food and medicine, self-defense, and shelter.
you know, heating, cooling, transportation, mending clothing, all kinds of things like that.
So definitely download that book if that interests you.
But the bottom line is for this chapter, make sure you are in the right place because this scenario I'm describing, this is coming.
This is about to happen and it's not going to be pretty.
All right.
So that's about it for chapter four.
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