All Episodes
Previous Next
Oct. 11, 2016 - Freedomain Radio - Stefan Molyneux
32:48
3447 Economic Collapse Countdown | Peter Schiff and Stefan Molyneux
| Copy link to current segment

Time Text
Hi, everybody.
Stefan Molyneux from Free Domain Radio, back with a good friend, Peter Schiff, an economist, a financial broker and dealer, author, frequent guest on National News, not to mention this show, the host of the Peter Schiff Show podcast, the CEO of EuroPacific Capital and the chairman of Schiff Gold.
His web's vital statistics will be below, SchiffGold.com, SchiffRadio.com, and Europac, that's P-A-C.com.
How are you doing, Peter?
I am well, Stefan.
How are you today?
I'm well, thanks.
Okay.
So let's take a bit of a helium balloon up from the sort of combat of the lead up in the last couple of weeks to the US presidential elections.
Because although the Fed has been mentioned once or twice, it seems to me that that is the elephant in the room that could really determine what's going to go on in the future.
Interest rates remain crushingly low.
There are people who say, well, the Fed should raise them now because if there's another recession, it won't have anywhere to lower from here.
And other people are saying, well, you can't raise it now because that's going to provoke a recession and they've got nothing left in the clip.
You think that both of these camps are crazy, but for slightly different reasons.
I wonder if you could help people understand where you're coming from there.
Well, because I think the people who think the Fed should raise rates are correct, but they're correct for the wrong reason.
The low interest rates have simply been masking the underlying problems that have grown larger because we've kept rates so low for so long.
I think we need to rip the band-aid off so that we can deal with the problem.
So I don't believe that we can raise rates and everything is going to be fine.
I recognize that if we raise rates, everything is going to collapse.
But since I know the collapse is inevitable, and I know that the longer or the further into the future we postpone the collapse, the worse it's going to be, I want to get it over with.
I want to stop digging the hole deeper and trying to fill it back up again.
But most people couldn't care less about that, especially politicians.
And that's really all central bankers are, is politicians.
They just care about the next election.
They care about masking the problems, even if the consequences are greater pain down the line, because, hey, that's somebody else's problem and it can be blamed on somebody else.
So this supposed recovery, because in the debates, they keep talking about this recovery, and I don't believe it for a moment.
When you look at sort of the underlying metrics, they're all trending neutral or downward.
You know, things like GDP growth, business investment, labor force participation, and, of course, labor force productivity, wage growth, all pretty low.
Of course, the stock market is going crazy, and I think this has something to do with the deeply negative real interest rates.
Can you help sort of tie people's understanding together about why everyone's talking about a recovery?
When all of the core metrics remain stagnant or declining?
Well, there is none.
And this is where I really wish Donald Trump would change up a little bit and blame the phony recovery that we have now on the Fed, but also blame the phony recovery that we had under Bush on the Fed.
You see, Hillary Clinton wants to accuse Donald Trump of wanting to go back to the failed policies of Bush.
But what Trump has to lay out is that he is the only one that wants to lead those policies because Obama has simply expanded the policies that failed under Bush.
And one of the things that both Bush and Obama have in common is that they relied on a phony recovery created by the Federal Reserve.
And the Bush bubble ended in disaster, except that bubble popped while Bush was still in office.
This bubble under Obama, which is even bigger because the policies are even more reckless now than they were then.
This one may not pop until after this election, but it's still going to pop.
And the consequences are going to be even more and more enormous.
And so what Donald Trump should be doing is saying, look, all Hillary Clinton wants to do is follow the policies that didn't work under Obama and that didn't work under Bush.
And this recovery is phony.
It's all about artificially low interest rates.
There is a major crisis coming.
And the only solution is to actually have legitimate change in the way we approach government in this country.
And that's not going to happen by electing Hillary Clinton.
And this growth stuff is not really occurring.
And I have, of course, as you do, huge problems with the way that GDP is measured.
But as you pointed out in your blog, we've not had a single year of 3% GDP growth since 2007.
And recently, it's declining even further, right?
Last three quarters, 1% growth.
Yeah, and that's if you believe the government's story that there's no inflation.
Because the government is claiming inflation is barely 1%.
But anybody who is a consumer in America and is looking at the cost of living, whether it's their health insurance premiums, whether it's their rents, whether it's what they're paying for their kids' tuition, whether...
All these costs are going up, yet the government claims the costs are not going up.
It's clear to me that the cost of living is rising much faster than the official measures, which means that the economy is in recession right now, that it's not being measured properly.
And if you look at all the anecdotal evidence, everything is screaming recession.
The only thing that doesn't reveal it is the government's official measure, but I believe that's by design.
What on earth does it mean to say that all these stock prices are going up when companies aren't investing a lot in new R&D? They're not developing a lot of new products.
They're not hiring a lot of new people.
So what is driving this stock price going up?
Because my understanding, perhaps a little naive and historical, back when I was an entrepreneur and involved in the sale of a company on a stock market, going public of a company, people buy your stock because you're doing really well and you're going to do better.
But the metrics for the companies aren't that they're investing and doing better and taking the kind of risks you need to grow.
What the hell is driving up their stock price?
Well, you know what it is.
It's the Fed.
It's artificially low interest rates.
Why do you think rates are still so low?
Why do you think, despite all the talk about raising rates, they only did it once last year and by 25 basis points?
We have never had interest rates this low.
In history, up until this great recession, in fact, if you look at Greenspan, after the dot-com bubble burst and after September 11th, the lowest interest rates got during that recession was 1%, and they didn't stay there very long.
Now we're in the, what, seventh year of this recovery, and rates are still a quarter of what they were during the last recession.
That's how low they are.
This is all artificial.
The Fed knows that.
That's why they're not raising rates.
What's amazing to me is the markets haven't figured this out yet.
Everybody is still waiting for the Fed to raise rates.
Everybody is still waiting for the Fed to shrink their balance sheet.
I said years ago they were never going to do that, that it was all talk, it was all a bluff to cover up the fact that they had checked us into a monetary roach motel.
Yet here we are in October of 2016, and everybody still is expecting rate hikes and the balance sheet shrinking.
They think it's going to happen at the next Fed meeting.
When are they going to wake up to reality?
There's an argument now, which is floating around.
It sort of reminds me of the argument coming out of people in the French government that terrorism is just the new normal.
Get used to it!
It's just the way it is now.
Which is saying, look, the way that America used to grow in the post-war period, that's never going to happen again because of this mysterious thing called global economic developments.
I don't know what the hell they're talking about.
But basically they're saying, look, it's like puberty.
We used to grow.
Now we're 17.
We're 18.
We don't want to grow anymore.
So waiting for all of this growth to raise rates is a fool's quest.
That train is never coming back to the station.
What are they talking about?
What global economic developments have meant that America can't grow its economy anymore?
This is all nonsense.
We've always been a global economy.
Since the Revolutionary War, we were a global economy.
And we've always had automation.
We've always had technology or advancements in machinery or manufacturing.
We've always introduced labor-saving devices.
The idea that there's something new, normal, that we just can't grow, what they're ignoring is the elephant in the room.
The reason we're not growing is because we don't have any capital investment.
And capital investment is what increases labor productivity.
And that's what causes higher living standards.
It's when we can produce more stuff with less effort.
And where does capital investment come from?
It comes from savings.
So the bottom line is you can't grow an economy without savings.
If you want to grow the economy, you've got to reduce consumption in the present so that the money that isn't spent on consumption can be used to finance investment that will make possible greater future consumption.
So the bottom line is we're not growing because we're not saving.
Now, Alan Greenspan has come to the same conclusion, except he blames the lack of savings on Congress.
He says the reason we're not saving is because Congress is running these big deficits because Congress isn't dealing with entitlements.
That's why we have no national savings.
I blame the Fed.
I say the reason that Congress keeps borrowing is because the Fed keeps enabling.
The Fed keeps interest rates artificially low.
They keep doing quantitative easing.
They monetize the debt.
If we really had an independent central bank, if the Fed raised interest rates, that would force Congress to cut spending, that would force Congress to deal with entitlements, and higher interest rates would encourage savings.
It would discourage borrowing and speculation and encourage legitimate savings, and that would result in capital investment and higher living standards and more economic growth.
But it's all because of the Fed.
The Fed is the instrument of our failure, and nobody wants to acknowledge that.
Yeah, I mean, I think it's fairly clear and obvious to say that if politicians can kick the can down the road, they will.
I mean, why on earth would you want to confront the rage of the population if you cut entitlement spending, if you can just get the Fed to print up money, borrow money, give you money on a cheese platter?
Well, of course you're going to do.
And this is, I think, why people don't understand that this sort of shadowy figure behind what we view as sort of Yeah, I mean the real failure is at the Central Bank because we expect our politicians to make political decisions.
All these guys want to get reelected and nobody wants to be the messenger who gets shot.
Nobody wants to be the bearer of bad news.
Everybody wants to pretend that the party can go on forever, give away something for nothing.
It's the central bankers who are supposed to be independent, who are supposed to save us from vote-seeking politicians.
They're not supposed to care about elections.
They're supposed to do what's right, but they're not.
Unfortunately, our central bankers are in bed with their politicians.
They consider themselves part of the administration.
There is no more independence, and when they talk about independence, when they're against auditing the Fed because they claim, well, we can't audit the Fed because they may jeopardize our independence, they've already sacrificed their independence.
They've given it up.
We now have central banks that are instruments of the states, and so it's all political, and nothing is ever going to end until a massive crisis brings it to an abrupt end.
Well, and then, of course, we've got to figure out which direction we're going to bounce in, but we'll get to that in a second.
So, recently, the IMF issued a report, and again, we're zooming out, you know, we're almost interplanetary here, but I think that's where the most important stuff is going on.
Global debt growth, $152 trillion.
That's twice the size of global GDP. And they say, well, you know, this is dangerous.
But of course, it's dangerous.
Of course, it's dangerous.
The question is, how on earth does everybody...
On the planet, or in aggregate, oh, twice as much as the entire planet produces.
Yeah, well, that's because the government is getting in the way of supply and demand.
I mean, obviously, the cheaper something is, the more desirable it is.
I mean, as things are less expensive, we want more of it.
As the price comes down, demand goes up.
Well, as central banks lower interest rates, well, more people want to borrow money because it's cheaper, particularly politicians.
Now you've got central banks creating negative interest rates.
Imagine what kind of incentive that is.
Think about how much money governments have borrowed when they had to pay interest to borrow money.
Now think about how much more money they'll borrow in the future if they get paid to do it.
If you're going to be paid to borrow money, you're really going to want to borrow money.
We are encouraging more of the problem.
The problem is too much debt.
The solution can't be to take on even more debt.
This bizarre thing, of course, the whole point of interest rates is that we would rather consume things now rather than in the future.
And paying us to consume things now rather than the future says that somehow having a car next year is much less valuable than having a car now.
It literally has become like an anime Alice in Wonderland kaleidoscopic drug trip of unbelievably opposite incentives to what would exist in the real world.
Well, look, that's because this has been going on, this Keynesian experiment has been going on, and now it's blowing up, because now it's gotten so ridiculous and so extreme that they have to try things that would previously be thought of as completely unheard of, where you've got negative interest rates, because we've passed over that line now.
From the sublime to the ridiculous.
And this is the end game.
These are the convulsions of a dying patient.
We're doing crazy things because we're at the end of the rope.
Instead of admitting the truth, they're just trying every crazy thing they can think of to postpone having to acknowledge the truth.
But this is the end of this insane experiment.
How many more days or weeks or months we have or do we have years maybe?
But this is the end of it and it is going to end every bit as much a failure as I've been saying all these years.
So jumping over the pond, looking at Europe.
I just did a presentation on Deutsche Bank and its entanglements with the Department of Justice and this like insane $14 billion potential fine for some of their securities problems back in 2007-2008 with the bundling of all of these mortgage-backed securities.
Boy, I mean, for a company with a market cap of about $16 billion, a $14 billion fine, again, I'm no economist, but that seems like not a good number to have on your balance books.
Now, of course, they may negotiate it down and so on, but that's a shot across the balance for all the other banks that are also facing investigations along these lines.
And to me, it's pretty rich when the government forces banks to lend to underqualified people and thus forcing, in a sense, the financial companies to bundle these toxic mortgages and sell them overseas.
Suddenly now, it's only the bank's fault.
Only the banks have to pay.
It's all their fault.
The government had nothing to do with it, and they're just bad people.
And what's going to happen to this whole dominoes of European banking should this stuff take root?
I don't know.
I mean, all their accounting statements are fraud.
I mean, the government is bankrupt.
They don't acknowledge all their liabilities, their unfunded liabilities, their off-budget liabilities.
I mean, look at the fraud in the Social Security trust funds.
There's nothing there.
They've embezzled all that money from the day that those phony trust funds were created.
I mean, nothing there is actually sound.
I mean, the government is the world's biggest counterfeiter.
You think our currency is actually legitimate?
No.
I mean, everything the U.S. government does is a fraud, is illegal.
The fact that they have the nerve to go and prosecute anybody for financial malfeasance when, you know, look what they're doing.
I mean, it's kind of like Bill and Hillary Clinton going after Donald Trump, you know, for being a womanizer.
That is one of these horrifying ironies of the modern world where you wake up every day and you pinch yourself and say, please let me be dreaming.
No, I'm not dreaming.
Going even further afield, we can look at Japan.
And I think Japan is one of these zombie economies that's been running on for like, what, a quarter of a century now, doing all the same kind of junk that Europe and America has been doing.
What is it that people need to do to look at Japan to see this is where this tunnel of money printing and fiat currency mess leads to?
No, it doesn't even lead to Japan, because what it leads to is going to be much worse than where Japan is right now, because Japan hasn't even seen the endgame yet.
I mean, what Japan is doing is going to lead to much bigger problems than what Japan already has.
But I think what's in store for America at the end of this road is going to be even a bigger disaster than what's awaiting Japan.
So let's talk about this endgame that you've mentioned a couple of times and help people understand how you unpack that term.
Well, the endgame is going to be a collapse in the currency.
I mean, what is keeping the dollar propped up right now is the belief that the Fed is telling the truth, that the recovery is real, and that therefore it no longer needs the artificial support of low interest rates, that the Fed could normalize interest rates, that the Fed could shrink its balance sheet.
You know, this is what is propping up the dollar, the belief in this fantasy.
But as this next recession that I believe we're already in, but at some point the government is going to acknowledge this recession, interest rates are either still going to be where they are, or maybe the Fed would have raised them one more time.
I don't know, and I don't even think it matters.
But interest rates will be very close to zero when this recession officially begins.
And now the Fed's going to have to not just go to zero.
They're going to go negative.
They're going to launch QE4. It's going to be bigger than QE3. And now the world's going to figure out that we are stuck in this box and we're never getting out.
Because then the balance sheet's going to go from $4.5 trillion to $10 trillion.
And the dollar is going to fall through the floor.
And that's going to be the end of the game.
Because when the dollar collapses, it's going to take the bond market with it.
And when the bond bubble pops, it's game over.
Because all of a sudden...
The cost of living skyrockets.
The way America survives is we print money and we use the money we print to pay for all the goods that we consume that other countries make.
Well, all of a sudden when the dollar collapses, we can no longer afford to import all the products that we need and take for granted and the whole economy comes imploding down.
Meanwhile, when nobody wants to buy our paper because they realize that it's just going to keep devaluing, interest rates skyrocket.
The whole house of cards, the credit house of cards, comes tumbling down.
And this economy is a complete disaster.
You see, we've had all these imbalances that have been building up and building up over the years, over the decades.
And the government has never allowed market forces to fix the mistakes because we keep papering them over with bigger mistakes because we don't want to deal with the consequences of confronting the prior mistakes.
So now they've gotten bigger and bigger and bigger.
It's like what if California never had an earthquake, right?
What if you never had a smaller tremor and instead all the tension just kept building and building and building until you finally had an earthquake and it was like this massive, you know, 10 on the Richter scale?
That's what we're going to have.
We're going to have an economic collapse that is an economic 10 on a Richter scale because all the tremors that should have taken place never happened because the Federal Reserve prevented it from happening.
So instead of relieving the tension, it just got greater and greater and greater.
I mean, the market has been trying to signal for a course correction for many, many decades.
And generally, government policy and Fed policy keep pushing that back because those course corrections are bad for immediate political reputations, however good they may be for people in the long run.
And historically, this is the great danger.
And I don't mean to alarm people too much, but I think it's important for people to understand the stakes of what is occurring here.
Historically, generally, three outcomes to this kind of situation.
Monetize the debt, which means basically print more money than you can conceivably imagine.
We're talking wheelbarrows of Weimar-style bills to go and buy a loaf of bread, which generally provokes revolution, demagoguery, totalitarianism.
This destruction of the economy is through monetization.
You can repudiate the debt.
Actually, my preferred solution, but that's neither here nor there right now.
You can repudiate the debt and say, I can't believe you people ever thought that we were ever going to be able to repay this debt.
Don't you have calculators?
Can't you use your fingers and toes?
There's no possibility of doing it.
I can't believe you let us get away with it for this long, but that's the way it is.
But the third, which is, I think, the most risky, and given the saber-rattling with regards to Russia that particularly Hillary Clinton is on these days, so it's monetization, money printing, repudiation of debt, or war.
And that is the general way that they sort of cover over this giant fiscal hole is by pouring countless bodies into it.
Well, I don't know that war, though, gets you out of the debt.
I mean, you know, because if we fight a war, where are we going to get the money to pay for the war?
Well, if we can't borrow it, we're going to print it.
So ultimately, war just involves one of your other two choices, right?
We either have to finance the war with a printing press or we have to finance the war by defaulting on our bonds and using the money to pay for the war instead.
So there really are only two choices.
The question is, do we have those choices in peacetime or do we have those choices in wartime?
Well, you know, if people are going to have to make do with less, which if you cut entitlement spending, at least for the short run, that's going to be the case.
And for some people, particularly retirees, that's what they're going to have to live with.
People in general are much more willing to accept a cutback in their standard of living if there's war going on, you know, the coupons, the rationing, all this kind of stuff.
So that's my guess.
That hasn't happened.
You know, the last time we rationed anything because of a war, it was World War II. I mean, if you remember when the war on terror began under George Bush...
Go shopping!
Yeah, he urged everybody to go out and go shopping, to go out and spend more money.
So, like, it was talking about guns and butter.
So we've never asked Americans to sacrifice for anything, at least the ones that are still alive, you know, that don't keep their teeth in a jar.
So...
How are we going to do that?
There's no way the public is going to go for that, and there's no way the politicians are even going to ask for that.
Because our economy now is based on everybody spending money they don't have.
And so the minute we stop borrowing and spending, the whole house of cards collapses.
And then we can't fight a war, because the economy has imploded.
You make a good case.
I'll have to see if the door number three still opens in my mind.
So that's a good case.
So let's talk about the outcome of how this stuff might play out, right?
I mean, one of the great horrors, I think, of the modern American economy is, what is it now, 94 million people out of the workforce who, you know, are in that sort of age slice, you know, 25 to 55 or whatever it is.
They're in the age slice where it could be reasonably assumed that they're going to be doing something productive in the economy.
94 million people barred from the self-esteem of a productive life, from control over their own destiny, becoming dependent on the state through its various udders hanging down in the welfare state and so on.
The barriers between getting those people from where they are back into work are through this valley of the shadow of death of some great financial readjustment.
How is it going to loosen things so that these people might have something to look forward to after we go through whatever goes through?
Yeah, well, until we go through the crisis, I don't think this dynamic is going to change.
Because we're going to continue to destroy real jobs and real employment opportunities, and more and more people are going to line up for government payments.
But eventually, you have so many people in the barrel, there's nobody left to pull it.
And then the barrel, or the wagon, rather, everybody's in the wagon, no one's pulling it, and now it doesn't move anymore.
And so we're going to get to that point.
But right now, you have generations of Americans I mean, this is a way of life.
This is a culture.
And people feel entitled to be able to survive without actually contributing.
And you have a lot of younger people now who have been indoctrinated into this system.
We brought them through the government school system.
They didn't learn very much in K-12.
Then we forced them to go to some college because we told them, hey, your life is over if you don't go to college, so you've got to go to college.
It doesn't matter what it costs because you can borrow the money.
And so now they went to college for four years, five years, six years.
They majored in basket weaving or whatever it is.
And so now they're basically maybe functionally illiterate.
I mean, maybe they could read and write, but they got a diploma.
They've got a mountain of debt.
And there's really no employment opportunities that make sense.
And if they take a job, they got to start repaying their debt.
So what's the point of working?
They might as well stay with their parents and live in the basement.
But meanwhile, their parents might not be able to afford to support themselves, let alone their kids, Meanwhile, their adult parents can't survive anymore because they get zero interest rate on their savings and the cost of living is going up.
So the whole economy is imploding.
Our whole American way of life is disappearing.
And you can sense the frustration among the electorate.
But the problem is this election is just coming down to which candidate is a bigger abuser of women.
And nobody really wants to deal with the actual issues.
And even though Donald Trump tries to bring them up, you know, they get drowned out by all this noise.
Oh, yeah.
No, why talk about derivatives when you can use the word pussy and be shocked and appalled and all this kind of stuff?
Well, frankly, it's where we all came from, so I'm not particularly offended.
But let's talk about derivatives.
And I want to sort of frame this by saying it's really important.
Don't fall asleep.
Because the derivative stuff, when I was doing the research on Deutsche Bank, realizing that Deutsche Bank's derivative exposure is five times the entire European economy.
This seems incomprehensible again to me that a bank would be that exposed and face that much variability.
I know some of the derivatives are hedging and all of that, and some of them are shorting, but what the hell does it mean when Deutsche Bank has derivative exposure 20 times the size of the entire German economy?
Well, all of this leverage is a function of central banks.
I mean, it's a function of policy that we've got everybody levered up and so many people taking risks and so many people looking to lay off their risks on other people.
But meanwhile, if people keep laying off risks among one another, ultimately the risk is still in the system.
It's not gone.
I take your risk.
You take my risk.
Okay, collectively, we still have the risk, even if we want to pretend it doesn't exist.
It's all there.
And this is the house of cards that we have created for ourselves.
And it gets bigger and bigger and bigger because we don't want to deal with it.
And of course, the bigger it gets, the bigger the collapse is going to be when it falls apart.
That is where we are.
And the problems are already so big that it is impossible to deal with it.
That's why the next recession is impossible to For the government to deal with.
And so their solution is, well, let's never have one.
We can never have another recession.
But the problem is recessions are where the problems that are created during the booms are corrected.
The recessions are the benign part of the process that begins by central banks keeping interest rates artificially low.
But believe me, if central bankers could have a business cycle that was boom and boom and never had a bust, They would have done that a long time ago.
It's just not possible.
They're going to try to attempt the impossible because living through the probable is too horrific for anybody to imagine.
So they just got to continue to kick this can down the road as if it's a never-ending road.
But it's not.
Well, mathematically, that which cannot continue will not continue.
So, in the general emotional rollercoaster, which is almost always a conversation with you, Peter, let's end with people on a high note, because there is going to be a crash coming.
There's no question of that.
It always historically has happened, and none of the fundamental problems that provoked the 08 crash have been resolved.
I mean, they've escalated in many ways.
More debt, lower interest rates now, fewer arrows in the quiver to deal with anything.
But it can be quick, right?
We've got the example of the 1920 crash, which was actually worse than the 1929 crash, but which resolved itself in sort of 14 or 16 months because you had a generally hands-off kind of legislature who let the natural market process.
This stuff can be solved, and this can be solved even more quickly now because we've got better communications, we've got the internet, and So this can be, I would argue, a 6-12 month process if you just take the band-aid off really fast, let the market do its thing.
That, of course, is going to be really tough to explain to governments.
In order to do that, you have to admit the truth and you have to admit the mistakes that you've made in the past and we're not there yet.
But, you know, what individuals need to do, I mean, this is the high note, is that individuals need to prepare for themselves because their government is not going to do it for them.
I mean, people need to get their savings and their investment house in order, and that's what I am trying to help as many Americans do as possible.
I mean, if you have a portfolio, if you're in the stock and bond market, you need to be out of the U.S. stock and bond market.
You need to be in those markets but in New Zealand, in Switzerland, in Singapore, in Hong Kong.
This is what I'm helping my clients do at Europe Pacific Capital.
You also better own some gold and silver.
You better have some physical gold and silver in your possession.
My company, Shift Gold, will help you acquire some at a very inexpensive price.
More recently, I would encourage every one of your listeners to open up an account with me over at goldmoney.com.
Goldmoney.com is a new company.
They have an application where you can own gold, real gold, your gold.
That they will vault for you, yet give you an app on your cell phone which enables you to transfer any portion of the gold that you own to anybody you want to transfer to for free.
And other people can transfer to you.
You can transfer to them.
So you can buy stuff in gold.
If you're a merchant, you can sell stuff and be paid in gold.
And I ultimately think that this is where we're headed.
When the dollar crashes...
And all of a sudden, prices skyrocket.
And we have price controls, like we did in the 1970s, except not just on oil, on everything, on food.
And all of a sudden, merchants don't want to be paid in dollars.
They want to be paid in real money.
If you don't have real money, you're not going to get their goods.
Well, one way to pay in real money is to use your app on your cell phone and pay them in gold.
You could give somebody 10 cents worth of gold or I think more and more people are going to be positioning themselves for a real economy with real money, where people are rejecting fiat currencies because they're losing too much value.
Banks are failing.
People are worried about bail-ins.
You know, you can take your money out of a bank account and put it into a gold money account.
I think it's a lot safer to keep it in gold than to entrust it to some bank.
And now you own real gold and you can spend it when you want.
You can earn more of it.
You can save it.
And so this is something that people could do and it's very inexpensive.
And again, it's goldmoney.com is the website to just go sign up for an account.
You can also get a debit card, and you can take that debit card anywhere MasterCard and Visa is used, and you can spend your gold the way you would spend your dollars or your euros or your yen or whatever currency you're used to spending.
Well, and there will be, of course, a massive transfer of resources, as there always is in these kinds of transitions, between those who saw it coming and those who crossed their fingers and hoped for the best.
So thanks a million.
Peter, always great to chat.
Just remind people, you can go to shiftgold.com, shiftradio.com, europac.com for more on Peter's thoughts.
Very, very important to keep track of this kind of stuff.
We are facing a significant turn in the road when it comes to Western civilization.
And getting on board with this stuff sooner rather than later can make all the difference in the world.
Thanks, Emil Peter.
As always, I'm sure we'll talk again soon.
Okay.
My pleasure.
▲
Export Selection