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Escape The Dollar While You Can - Peter Schiff #6387 · Financial Survival Network

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  Speaker 2: And welcome.
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  Speaker 3: You are listening to and watching the Financial Survival Network.
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  Speaker 2: I'm your host, Carrie.
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  Speaker 3: Let's with us now is Peter Schiff. Peter, We've been
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  Speaker 3: talking for fifteen years, seeing you at all the conferences,
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  Speaker 3: and well, first they tell you you're crazy, then they
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  Speaker 3: tell you you don't know what you're talking about, and
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  Speaker 3: then they say, I've got one hundred thousand dollars, Peter,
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  Speaker 3: what should I do with it?
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  Speaker 2: Right?
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  Speaker 4: Well, some people say that, so so what you We
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  Speaker 4: will still say you're crazy?
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  Speaker 2: Yeah, well crazy crazy like a fox? But what are
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  Speaker 2: you supposed to do? Here? Like you and I?
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  Speaker 3: We might be okay basically, or we might have we
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  Speaker 3: might have our plan in place and it's working. But
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  Speaker 3: what if you never had a plan and you wake
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  Speaker 3: up one day and you look around and you see
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  Speaker 3: what's really happening?
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  Speaker 4: Yeah, well, most people are still asleep. They have really
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  Speaker 4: no idea what's happening. And you know, I think we're
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  Speaker 4: getting closer and closer to a day of reckoning that
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  Speaker 4: I've been warning about, as you know, more than fifteen years.
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  Speaker 4: The problems didn't happen overnight. They've been building and building
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  Speaker 4: over time. And the problem is, instead of dealing with them,
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  Speaker 4: we kick the can down the road because you know,
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  Speaker 4: the pain, the political pain certainly and economic pain associate
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  Speaker 4: with dealing with them is so great that nobody wants
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  Speaker 4: to do it, and so we find a way to
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  Speaker 4: kick the can. But every time we do that, we
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  Speaker 4: make the problems that nobody wants to deal with the worse.
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  Speaker 4: And so eventually, when we have no choice but to
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  Speaker 4: deal with them, uh, it's it's it's it's not much worse.
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  Speaker 4: And it's ultimately going to be the markets that decide
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  Speaker 4: this when you know, and and and that's going to
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  Speaker 4: take the form of a sovereign debt crisis and a
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  Speaker 4: US dollar crisis. And even former Secretary of the Treasury
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  Speaker 4: Hank Paulson just last week came out and said that
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  Speaker 4: we need an emergency break the glass plan to deal
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  Speaker 4: with the situation where there is no longer sufficient demand
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  Speaker 4: for treasuries, and he said that the consequences would be
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  Speaker 4: severe or horrific. I forget the adjective, but I mean,
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  Speaker 4: but he's actually sugarcoating it. It's going to be a complete,
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  Speaker 4: you know, disaster when foreigner or not just foreigners, everybody
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  Speaker 4: who's been buying treasuries decides no loss. And it's not
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  Speaker 4: just that they're going to decide not to buy more treasuries.
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  Speaker 4: They're not going to roll over the treasurers that they own.
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  Speaker 4: They're going to ask for their money back, or they're
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  Speaker 4: going to try to sell the treasurer as they own
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  Speaker 4: before they mature, and there won't be buyers.
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  Speaker 3: Right, So, how far away are we from that? Or
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  Speaker 3: has it already happened and we don't even know it?
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  Speaker 4: Well, it has you know, it hasn't happened yet. We
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  Speaker 4: would know it if it had happened. But we can
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  Speaker 4: obviously see that the demand for treasuries is diminishing. It's
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  Speaker 4: not gone completely. There are still buyers, but not as
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  Speaker 4: many and not as aggressive. And you can see what's
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  Speaker 4: happening with the central banks. The reason gold is forty
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  Speaker 4: eight hundred and a couple of years ago, it was
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  Speaker 4: struggling to get to two thousand. What got it from
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  Speaker 4: two thousand to over five thousand was central bank buying.
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  Speaker 4: And the central banks are buying gold instead of buying dollars,
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  Speaker 4: and so you can see that shift in their preference.
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  Speaker 4: And this despite the fact that interest rates were much higher.
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  Speaker 4: We had interest rates in zero for a decade and
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  Speaker 4: the central banks were not buying gold. They were holding
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  Speaker 4: dollars earning no interest. Now, even though they can get
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  Speaker 4: four percent interest on their dollars, they don't want them.
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  Speaker 5: They'd rather have gold.
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  Speaker 4: And so that shows you that they are losing confidence
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  Speaker 4: in the purchasing power of the dollar and they don't
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  Speaker 4: believe that a four percent yield is sufficient compensation for
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  Speaker 4: that risk, and.
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  Speaker 5: They rather own gold.
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  Speaker 4: Now there are political reasons too that you know they
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  Speaker 4: want to own gold. They don't, you know, And we
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  Speaker 4: showed them that with the Russia sanctions, which was really
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  Speaker 4: shooting ourselves in the foot because we completely depend on
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  Speaker 4: the world holding dollars.
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  Speaker 5: But you know, it's happening.
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  Speaker 4: The question is when do we get to the point
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  Speaker 4: where we need to break the glass and go for
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  Speaker 4: the emergency plan that Hank Paulsen wants us to develop
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  Speaker 4: the problem is, I don't think there is an emergency
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  Speaker 4: plan that would work. I mean, I mentioned on my
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  Speaker 4: own podcast, the plan is that behind that glass is
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  Speaker 4: a revolver, and you break the glass and then you
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  Speaker 4: shoot yourself of the head.
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  Speaker 5: That's basically it.
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  Speaker 2: That sounds okay, Well she heard a gambling addiction to me.
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  Speaker 4: I mean what I said that Paulson should be doing now.
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  Speaker 4: Instead of telling us that we need to have a
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  Speaker 4: plan to deal with the crisis, what he should be
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  Speaker 4: saying is, we need.
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  Speaker 5: A plan now to try to avert the crisis.
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  Speaker 4: Let's try to do something before it happens, right, That's
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  Speaker 4: what he should be advising the government, not how to
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  Speaker 4: pair for the disaster. But hey, since we know that
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  Speaker 4: a disaster is coming, can we take some precautions now
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  Speaker 4: to mitigator maybe prevented that. But nobody wants to even
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  Speaker 4: do that because even trying to prevent a disaster creates
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  Speaker 4: a disaster.
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  Speaker 5: Itself for the people that are, you know, in power.
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  Speaker 3: Yeah, I mean, imagine getting rid of, you know, forty
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  Speaker 3: percent of the government workers all at once, Like if
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  Speaker 3: Trump got rid of a couple hundred thousand and look
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  Speaker 3: what happened then. I mean, it's politically it's just not
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  Speaker 3: palatable to take the measures necessary.
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  Speaker 5: But it's not just firing government workers.
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  Speaker 4: I mean, that will help, but we the government needs
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  Speaker 4: to do a lot more than that, because that's still
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  Speaker 4: drop in the bucket. You know, even if the government
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  Speaker 4: fired everybody, you know, and there wasn't a single person
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  Speaker 4: left in government, which you know, in and of itself
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  Speaker 4: might have a lot of upside, but assuming that there
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  Speaker 4: was not a single person drawing a government salary, you
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  Speaker 4: barely move the needle on the deficit. What needs to
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  Speaker 4: be cut is the spending, not just the salaries to
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  Speaker 4: the government workers, but all the spending, uh, you know,
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  Speaker 4: the people who get money from the government, and and
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  Speaker 4: and that's the political problem too, because all those people,
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  Speaker 4: well not all of them, but most of them vote.
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  Speaker 5: You know.
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  Speaker 4: Obviously, the people that hold US treasuries living in foreign countries,
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  Speaker 4: they don't get a vote.
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  Speaker 5: So maybe, you.
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  Speaker 4: Know, maybe we can stop sending them their interest or
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  Speaker 4: their dividends. And I think for their principle, and I
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  Speaker 4: think they're getting worried about that, which is another reason
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  Speaker 4: why they're getting into gold.
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  Speaker 5: You know, they don't want to have to worry about
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  Speaker 5: a default.
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  Speaker 2: Yeah. Sure, I mean it makes total sense.
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  Speaker 3: Because, uh, you know that you stop worrying about return
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  Speaker 3: on investment and you start worrying about return of investment.
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  Speaker 4: Yeah, and that applies to treasuries too. Everybody just assumes, well,
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  Speaker 4: the US government will never default. I wouldn't make that assumption.
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  Speaker 4: I mean, a we defaulted before when US dollars were
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  Speaker 4: redeemable in gold, and it was a promise to pay
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  Speaker 4: a fixed quantity of gold, and then we defaulted on
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  Speaker 4: that promise and and and paid nothing for our notes.
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  Speaker 4: That's a precedent of the US government breaking a commitment
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  Speaker 4: and defaulting on an obligation.
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  Speaker 2: Sure we had, we.
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  Speaker 5: Were obligated to pay gold, and we paid nothing.
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  Speaker 2: Yeah.
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  Speaker 4: And so now with US treasuries were obligated to pay dollars, Well,
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  Speaker 4: what if we say we're not going to pay It's
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  Speaker 4: the same thing as not paying gold.
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  Speaker 5: So you know, we've done it once, we could do
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  Speaker 5: it again.
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  Speaker 4: But also, if we just print a bunch of money
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  Speaker 4: and the dollar collapses in value, you even if we pay.
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  Speaker 5: You dollars, what do you get? You know, what can
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  Speaker 5: you buy with the dollars?
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  Speaker 4: That we pay you, so massive inflation has the same
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  Speaker 4: practical effect as a default, and those are the only
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  Speaker 4: two options that we have. Legitimate repayment is not even
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  Speaker 4: on the table as an option.
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  Speaker 5: We can't do that.
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  Speaker 4: So the only way creditors are going to get their
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  Speaker 4: money back is if we print it, and they won't
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  Speaker 4: get it back if we default. But at the end
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  Speaker 4: of the day, they're in the same position as far
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  Speaker 4: as what they can buy.
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  Speaker 3: Correct, Right, So yeah, there's no real way of avoiding this,
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  Speaker 3: is there.
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  Speaker 5: No?
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  Speaker 4: I mean, I mean, well, you can avoid it as
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  Speaker 4: an investor, as by not holding on to US dollars.
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  Speaker 4: That's why, you know, even though I think the US
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  Speaker 4: stock market is expensive in general, I would still rather
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  Speaker 4: have my money in US stocks than in cash.
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  Speaker 2: Yeah.
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  Speaker 4: Now, fortunately those are not my only choices, right. I
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  Speaker 4: don't have to own US stocks. I can own farm stocks,
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  Speaker 4: and I don't have to own just an index.
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  Speaker 5: I don't have to own the S and P five hundred.
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  Speaker 4: I can be selective in the stocks I own because
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  Speaker 4: not all stocks are going to be treated equally by
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  Speaker 4: what's going to happen. And in fact, the outperformance of
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  Speaker 4: foreign stocks over US started last year for the prior decade,
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  Speaker 4: all the money was made in the US market. US
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  Speaker 4: dollar was strong, US stocks were strong, you know, the
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  Speaker 4: Nasdaq was killing it. Everybody was making money in US stocks.
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  Speaker 4: That all flipped last year. A lot of people don't
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  Speaker 4: realize this. Yes, the S and P was up last
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  Speaker 4: year in twenty twenty five.
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  Speaker 5: I forget the percentage.
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  Speaker 4: Maybe it was around fifteen percent plus or minus a
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  Speaker 4: couple you know around there my dividend payer strategy, which
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  Speaker 4: is my core strategy. So you could have a separately
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  Speaker 4: managed account with your Pacific asset management and be in
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  Speaker 4: our dividend payer strategy, which is international dividend paying stocks,
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  Speaker 4: or you can buy my mutual fund which has the
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  Speaker 4: same portfolio that was up about sixty two percent last year.
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  Speaker 4: Now that gives you an idea of the magnitude of
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  Speaker 4: the outperformance that's continuing. Year to date, that fund is
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  Speaker 4: up about twelve percent versus not quite four percent for
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  Speaker 4: the S and P. So triple the S and P
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  Speaker 4: last year, tripling the S and P this year. Foreign
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  Speaker 4: dividend paying stocks. And I think this is the beginning
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  Speaker 4: of the d dollarization trend, where global investors are shifting
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  Speaker 4: their funds out of US markets into foreign markets, and
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  Speaker 4: I think soon it will be more on emerging markets
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  Speaker 4: than developed markets.
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  Speaker 5: But this is the trend.
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  Speaker 4: So Donald Trump could talk all he wants about this
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  Speaker 4: eighteen trillion dollars that he claims is being invested in
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  Speaker 4: the US, but from my perspective, money is being pulled
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  Speaker 4: out of the US. I can see that in the
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  Speaker 4: relative returns. So this number is just a complete fantasy
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  Speaker 4: that he pulls out of thin air, just like everything
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  Speaker 4: else he claims about this great economy that we're supposedly
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  Speaker 4: have when it's objectively weaker than the weakest.
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  Speaker 5: Year that Biden was president.
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  Speaker 4: You know, we have lower GDP growth than any year
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  Speaker 4: under Biden, less job creation, infect barely any job creation
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  Speaker 4: at all, and the cost of living keeps going up,
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  Speaker 4: and the balance sheet is expanding, the money supply is expanding,
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  Speaker 4: the debts are bigger than ever. I think that the
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  Speaker 4: national debt is going to hit fifty trillion before Trump
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  Speaker 4: leaves office. It's just over thirty nine trillion now, So
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  Speaker 4: in that forecast is a recession, and I believe the
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  Speaker 4: recession will send the deficits from the two to three
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  Speaker 4: billion range where they're at now to more like four
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  Speaker 4: to five billion trillion, I mean trill trillion billion.
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  Speaker 2: Yeah, yeah, yeah, it's hard to trillion deal with these numbers.
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  Speaker 4: Yeah, I made trillly it hard to believe that our
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  Speaker 4: budget deficits, our annual budget deficits, are in the trillions.
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  Speaker 5: And you know, the second.
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  Speaker 4: Biggest line item in the budget now is interest on
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  Speaker 4: the debt, which in itself is over at.
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  Speaker 5: Trillion dollars a year.
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  Speaker 4: You know, we didn't even have our first trillion dollar
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  Speaker 4: budget until Ronald Reagan right in the early nineteen eighties.
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  Speaker 4: Now it's a trillion just an interest, and that trillion
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  Speaker 4: represents about twenty percent of the total tax revenue that
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  Speaker 4: we have. We collect about five trillion taxes and now
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  Speaker 4: twenty percent of that is just interest. But that number
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  Speaker 4: is going up. In another year, it'll it'll or two,
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  Speaker 4: it'll be two trillion in interest. We're spending more in
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  Speaker 4: interest on national defense, which is about a trillion just
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  Speaker 4: under Detroy. But Trump wants to raise that to a
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  Speaker 4: trillion and a half. I know where's that money going
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  Speaker 4: to come from? You know, just throw the throat on
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  Speaker 4: the pile of debt. So you got to be out
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  Speaker 4: of the dollar which which means you can't be in cash.
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  Speaker 4: I mean, you could be tempted to say, oh, the
• 14:30
  Speaker 4: US stock market is overvalued, let me sit in the
• 14:33
  Speaker 4: money market and earn four or five percent, even as
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  Speaker 4: foreign central banks don't want to do that.
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  Speaker 5: They want to own gold.
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  Speaker 4: So if you want to be liquid, if you don't
• 14:42
  Speaker 4: want to be invested, then you own gold. I mean
• 14:46
  Speaker 4: you could get that that that to me is a
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  Speaker 4: much better position, a safety position than being in cash.
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  Speaker 4: But I don't want to have all of my money
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  Speaker 4: in gold. I want to have some of my money
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  Speaker 4: in gold, but I do want to invest, and so
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  Speaker 4: I look at these opportunities in the international markets to
• 15:05
  Speaker 4: buy the value stocks that I think represent good value.
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  Speaker 5: The pes are low.
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  Speaker 4: The dividend yields are high, there's a lot of assets there,
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  Speaker 4: there's good management, there's growing earnings. That's where I want
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  Speaker 4: my money to be. And a lot of the companies
• 15:19
  Speaker 4: that we own too, we own gold mining companies because
• 15:21
  Speaker 4: I have exposure to the metal. They're still very cheap,
• 15:24
  Speaker 4: even though they've tripled over the past year or so.
• 15:27
  Speaker 4: I mean, they're they're cheaper now than before they triple
• 15:29
  Speaker 4: because the price of gold has gone up so much
• 15:33
  Speaker 4: that their earnings are more than triple what they used
• 15:36
  Speaker 4: to earn. So I think investors are still, you know,
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  Speaker 4: really missing the opportunity here. I mean my clients obviously,
• 15:44
  Speaker 4: you know, we're you know they're invested, but we're still
• 15:48
  Speaker 4: a small part of the overall, you know, sure investing
• 15:52
  Speaker 4: public that's taking their advice, you know, from the mainstream
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  Speaker 4: that is still mostly in US stocks US although you
• 16:02
  Speaker 4: know some of the firms you know late that at
• 16:05
  Speaker 4: the end of last year, we're starting to talk about
• 16:08
  Speaker 4: gold for the first time before we had the correction,
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  Speaker 4: about maybe taking the sixty to forty portfolio and making
• 16:15
  Speaker 4: it sixty twenty twenty, where you cut the bond portfolio
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  Speaker 4: in half and put half in gold, which is a
• 16:23
  Speaker 4: big problem for the US government because the US government
• 16:25
  Speaker 4: needs that forty percent going in mostly into treasuries. That's
• 16:29
  Speaker 4: like putting out a sell signal on treasuries at a
• 16:32
  Speaker 4: time where you know, we need more buyers than ever
• 16:35
  Speaker 4: because the foreign buying is drying up. The foreign central
• 16:38
  Speaker 4: bank demand that the other big buyer of US treasuries
• 16:43
  Speaker 4: used to be government trust funds, Soial Security Trust fund
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  Speaker 4: Now they're sellers.
• 16:47
  Speaker 5: The social Security.
• 16:50
  Speaker 4: Taxes are now less than what the government has to
• 16:54
  Speaker 4: pay in benefits, so they no longer have surpluses to
• 16:58
  Speaker 4: buy treasuries. They have the sell the treasurer is that
• 17:01
  Speaker 4: they bought in the past. So this is a huge problem.
• 17:04
  Speaker 4: You got all these sellers or treasurers. Who are the buyers?
• 17:08
  Speaker 2: You know?
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  Speaker 4: Well, I think the only buyer is going to be
• 17:10
  Speaker 4: the Fed. That's why the Fed's ballance sheet has grown
• 17:12
  Speaker 4: by about two hundred billion already this year. So much
• 17:15
  Speaker 4: for shrinking a ballot sheet is growing because the Fed
• 17:18
  Speaker 4: is buying debt, monetizing debt. Because the Big Beautiful Bill
• 17:23
  Speaker 4: was was ugly because it grew government. I mean, you've
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  Speaker 4: got these Republicans that says, oh, the Biden deficits were horrible,
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  Speaker 4: That's why we had all this inflation.
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  Speaker 5: It was the Biden deficit spending.
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  Speaker 4: Okay, then why did the Big Beautiful Bill keep all
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  Speaker 4: that deficit spending and then add to it The first
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  Speaker 4: chance the Republicans had to cut back some of the
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  Speaker 4: Biden spending and they.
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  Speaker 5: Didn't do it, and then they added new spending of
• 17:48
  Speaker 5: their own.
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  Speaker 2: Of course. Yeah, well that's Washington for you, right, And.
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  Speaker 4: Then Trump goes in brags about it, right, Yeah, if Biden,
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  Speaker 4: if Biden had done the same bill, they'd be criticizing it.
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  Speaker 2: Yeah.
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  Speaker 3: Well there's only one party in Washington, right, the the Republicans. Yeah,
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  Speaker 3: the Republican Rats party, right, and they're all socialists basically.
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  Speaker 2: Sure. I mean it's ill. Sorry there, so ask it.
• 18:22
  Speaker 2: Let me ask you a question.
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  Speaker 3: Silver we hit one twenty one and change. Now it's
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  Speaker 3: back to you know, high seventies. What's going on with that?
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  Speaker 5: Well, I think it's just a massive breakout, you know.
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  Speaker 4: I mean, I've been into precious metals business for a
• 18:37
  Speaker 4: long time. I started Shift Gold in twenty ten, but
• 18:42
  Speaker 4: I was buying gold and silver for my clients at
• 18:45
  Speaker 4: euro Pacific since the late nineteen nineties early two thousands.
• 18:49
  Speaker 4: So when I first started buying gold for my customers,
• 18:54
  Speaker 4: it was under three hundred dollars an ounce, not amazing.
• 18:57
  Speaker 4: When I first started buying silver, it was under five
• 19:01
  Speaker 4: dollars an ounce. I even remember when it got to
• 19:04
  Speaker 4: five and it was exciting. Hey, silver just hit five dollars.
• 19:07
  Speaker 2: Yeah, so that's funny.
• 19:12
  Speaker 4: People who bought gold and silver from me twenty twenty
• 19:16
  Speaker 4: five years ago, they've done better on their gold and
• 19:20
  Speaker 4: silver than they have it. They bought the US stock market.
• 19:24
  Speaker 4: They bought the S and P five hundred. So for
• 19:26
  Speaker 4: all the crap you know about, oh gold and silver
• 19:28
  Speaker 4: allows the investments, they beat the US stock market over
• 19:31
  Speaker 4: that time period. In fact, going back to the year
• 19:35
  Speaker 4: two thousand, the US stock markets down about seventy five percent.
• 19:39
  Speaker 5: It was over forty ounce of the gold. Now it's
• 19:41
  Speaker 5: barely ten.
• 19:42
  Speaker 4: It was like forty three, forty four ounces. But silver
• 19:49
  Speaker 4: had a lot of overhead resistance around fifty dollars right
• 19:54
  Speaker 4: after it had a run because fifty dollars was the
• 19:58
  Speaker 4: peak in nineteen eighty. Yeah, the gold peak was about
• 20:04
  Speaker 4: eight to fifty. Now gold took out that peak, you know,
• 20:11
  Speaker 4: in two thousand and eight or so two thousand and seven,
• 20:14
  Speaker 4: and so gold was able to make a new high,
• 20:17
  Speaker 4: you know, got to a thousand, got you know, then
• 20:20
  Speaker 4: got to nineteen hundred in twenty eleven. But the highest
• 20:24
  Speaker 4: silver got was right back around fifty a little bit,
• 20:26
  Speaker 4: you know, not quite but right near it, near it.
• 20:30
  Speaker 5: In twenty eleven.
• 20:32
  Speaker 4: Then gold pulled back to about one thousand, and silver
• 20:35
  Speaker 4: went all the way back down to about ten bucks
• 20:37
  Speaker 4: or something maybe lower. Then gold went back up to
• 20:41
  Speaker 4: two thousand, and silver only got up to about thirty.
• 20:45
  Speaker 4: Then gold got to three thousand and four thousand, and
• 20:49
  Speaker 4: silver was still around thirty bucks. Then all of a
• 20:52
  Speaker 4: sudden last year, silver took off. It not only hit
• 20:57
  Speaker 4: fift finally, right. It not only hit fifty, it went
• 21:01
  Speaker 4: through it like a hot knife through butter. And it
• 21:03
  Speaker 4: went all the way up to one hundred and twenty five.
• 21:05
  Speaker 5: Right. So it had a huge overshoot in the breakout.
• 21:10
  Speaker 4: Now it's pulled back, but it's now about seventy seven
• 21:14
  Speaker 4: to seventy eight dollars. What's significant is not the pullback.
• 21:18
  Speaker 4: Everybody is scared. Oh look silver is way down. No, no, no,
• 21:22
  Speaker 4: forget about that. That's a false benchmark. What's significant is
• 21:26
  Speaker 4: the breakout. So fifty dollars is no longer this massive
• 21:31
  Speaker 4: ceiling overhanging the market. It's now a floor. It's a
• 21:35
  Speaker 4: floor that the market hasn't even returned to since the breakout.
• 21:40
  Speaker 4: We're consolidating in silver in the seventies, way above the
• 21:46
  Speaker 4: old highs. So once we finished this consolidation, it's off
• 21:50
  Speaker 4: to the races for silver and gold too. Both metals
• 21:53
  Speaker 4: are going up. Platinum all the precious metals are going
• 21:57
  Speaker 4: up finally, finally, but.
• 21:59
  Speaker 5: Gold was the leader.
• 22:00
  Speaker 4: Gold moved first, and that was because it was central
• 22:04
  Speaker 4: banks doing most of the buying, and the central banks
• 22:07
  Speaker 4: weren't buying silver, so the silver lagged until it finally
• 22:11
  Speaker 4: caught up.
• 22:12
  Speaker 5: But what also.
• 22:13
  Speaker 4: Hasn't caught up are the miners. So that's where I
• 22:17
  Speaker 4: think the big money can still be made. Not that
• 22:20
  Speaker 4: silver and gold aren't going to keep going up. They
• 22:22
  Speaker 4: will Let's say silver at gold prices double from here,
• 22:27
  Speaker 4: which is not that big a move. And now you're
• 22:29
  Speaker 4: talking about you know close, you know, ten thousand dollars gold,
• 22:34
  Speaker 4: all right, ten thousand dollars gold is a big number,
• 22:36
  Speaker 4: but if you buy it here, you've only doubled your money.
• 22:39
  Speaker 4: But I would expect at ten thousand dollars gold by
• 22:42
  Speaker 4: the time we get there, you'll make ten times your
• 22:44
  Speaker 4: money in the miners. So I like ten x versus
• 22:48
  Speaker 4: you know two x, right. I can't guarantee that, of course,
• 22:53
  Speaker 4: but that's what I think. And I've got my money
• 22:56
  Speaker 4: where my mouth is because most of my portfolio is
• 23:00
  Speaker 4: in gold and silver mining stocks for that reason, right,
• 23:04
  Speaker 4: And you know, we've got my largest strategy that I
• 23:08
  Speaker 4: manage is the goal strategy. My biggest fund, the Europe
• 23:11
  Speaker 4: Pacific Goal Fund, has as much money in it as
• 23:16
  Speaker 4: my other for funds combined. It's pretty much fifty to
• 23:18
  Speaker 4: fifty between gold stocks and all the other strategies, which
• 23:22
  Speaker 4: are foreign value, emerging markets, foreign bods. So you know,
• 23:26
  Speaker 4: I'm making a big bet and this is obviously my
• 23:29
  Speaker 4: clients want to make the same bet because you know,
• 23:31
  Speaker 4: they decide to put the money into this fund. I
• 23:33
  Speaker 4: don't make the decision for them. They buy the goldfund.
• 23:37
  Speaker 4: And my goalfund has.
• 23:39
  Speaker 5: Got a lot of juniors.
• 23:40
  Speaker 4: In fact, one of the stocks that we own was
• 23:43
  Speaker 4: just bought out by Agnego Eagle for like a forty
• 23:47
  Speaker 4: percent premium all cash. I wish it was just stock
• 23:50
  Speaker 4: because I'd take more aem stock because now it's a
• 23:53
  Speaker 4: cap gains, but it's the indication of like what's going
• 23:57
  Speaker 4: to be going on. That was two percent of our fund,
• 23:59
  Speaker 4: that company that just get bought out. But we own
• 24:01
  Speaker 4: a lot of new small stocks that have been laggers.
• 24:05
  Speaker 4: It's mainly been uh, the big stocks that have had
• 24:08
  Speaker 4: the lion share of the appreciation over the last year
• 24:10
  Speaker 4: or two. So my fund about a third of our
• 24:13
  Speaker 4: portfolio is small stocks, juniors, real juniors. So I think
• 24:17
  Speaker 4: it's a great time to buy my goalfund. The no
• 24:19
  Speaker 4: loads symbol is epg i X, the ear Pelific goalfund
• 24:23
  Speaker 4: and you could buy it's the advisor class. Any discount
• 24:26
  Speaker 4: broker has it. But you could also go, you know,
• 24:29
  Speaker 4: buy a direct on my website europac dot com. And
• 24:33
  Speaker 4: we have separately managed accounts.
• 24:34
  Speaker 5: You know.
• 24:34
  Speaker 4: You know Adrian Day is my portfolio manager for the goldfusds.
• 24:38
  Speaker 4: You probably know Adrian Lawer then you know me.
• 24:41
  Speaker 3: Round the same spending all time staying he knows his
• 24:46
  Speaker 3: stuff when it comes to gold mine.
• 24:48
  Speaker 2: Oh, Adrian, stop notch. Yeah.
• 24:51
  Speaker 5: So it's a great portfolio.
• 24:53
  Speaker 4: Good you know there's yeah, well everybody else is buying
• 24:57
  Speaker 4: the AI stocks or you know, crip those stocks. I mean,
• 25:01
  Speaker 4: this is the best speculation in my mind is the miners.
• 25:06
  Speaker 2: Yeah.
• 25:07
  Speaker 3: So what's happened to bitcoin? I know you've been a
• 25:10
  Speaker 3: very barish on it. You know, I heard something disturbing
• 25:13
  Speaker 3: that with quantum computing in another six months, no wallet
• 25:17
  Speaker 3: on the planet is going to be safe.
• 25:20
  Speaker 2: Yeah.
• 25:20
  Speaker 4: Well they're not safe anyway because the whole thing is
• 25:23
  Speaker 4: of giant ponzi pyramid scheme and zo I think the
• 25:30
  Speaker 4: whole thing is just gonna kind of implode. Really, Yeah,
• 25:34
  Speaker 4: they popped it up, you know, it's it's back up
• 25:37
  Speaker 4: to seventy nine thousand, you know, almost eighty thousand again.
• 25:40
  Speaker 4: You know, it got down, it almost got below sixty thousand,
• 25:44
  Speaker 4: you know, within the last month or so, but you
• 25:48
  Speaker 4: know as well below the one hundred and twenty five
• 25:50
  Speaker 4: thousand dollars high. But imagine where it would be if
• 25:54
  Speaker 4: Michael Sailor and Strategy wasn't buying so much. He just
• 25:57
  Speaker 4: bought another two and a half billion of it last week.
• 26:00
  Speaker 4: And the reason he's buying so much bitcoin is because
• 26:03
  Speaker 4: he's selling all these convertibles where he's paying people eleven
• 26:07
  Speaker 4: and a half percent yield because they're idiots and they
• 26:09
  Speaker 4: think that this is sustainable, but it's a ponzi. But
• 26:12
  Speaker 4: the demand is not for bitcoin. It's for the eleven
• 26:14
  Speaker 4: and a half percent yield that people think they're getting.
• 26:17
  Speaker 4: That's what's driving the bitcoin demand. But this whole thing
• 26:20
  Speaker 4: is going to implode. You know, if it wasn't for Trump,
• 26:24
  Speaker 4: you know, bitcoin would probably be below ten thousand right now,
• 26:28
  Speaker 4: if Harris had won that election.
• 26:31
  Speaker 5: But they were able to hype it up.
• 26:34
  Speaker 4: But you know, Trump's got a lot of problems. The
• 26:37
  Speaker 4: Republicans are probably going to lose in a big way
• 26:41
  Speaker 4: the midterms, not just the House, but the Senate, and
• 26:46
  Speaker 4: that's going to take away a lot of their ability
• 26:49
  Speaker 4: to help.
• 26:49
  Speaker 5: The crypto industry.
• 26:51
  Speaker 4: And then, of course, when the Republicans lose in twenty
• 26:54
  Speaker 4: twenty eight, I mean they may lose every state. Even
• 27:00
  Speaker 4: we'll see, I mean I don't it's hard these days,
• 27:02
  Speaker 4: but they'll definitely lose all the swing states because the
• 27:07
  Speaker 4: economy is going to be a mess. Inflation is going
• 27:09
  Speaker 4: to be much higher than it was when Biden left office,
• 27:13
  Speaker 4: Unemployment is going to be higher. We could easily be
• 27:15
  Speaker 4: in a recession. I mean, it's just a mass, it's
• 27:17
  Speaker 4: just a complete mess.
• 27:19
  Speaker 2: Yeah, well, a recession.
• 27:21
  Speaker 4: I mean then then you know, you don't have the
• 27:23
  Speaker 4: crypto president anymore, you don't have the cryptos are, you
• 27:27
  Speaker 4: don't have a you know, all that stuff is gone.
• 27:30
  Speaker 2: Yeah.
• 27:32
  Speaker 3: Yeah, well it was good while it lasted, I guess.
• 27:35
  Speaker 4: So it was good if you had a bunch of
• 27:37
  Speaker 4: bitcoin that you wanted to unload. Yeah, that was that
• 27:40
  Speaker 4: was what it was good for. It was a big
• 27:42
  Speaker 4: giant pump and dump.
• 27:44
  Speaker 3: Yeah, So any other partying thoughts you want to leave
• 27:49
  Speaker 3: us with before we conclude.
• 27:52
  Speaker 4: No, I just you know, I just glanced out of
• 27:53
  Speaker 4: my email. My last one is from you. It's great,
• 27:57
  Speaker 4: Patty silver Stacker. Oh you're a subscriber.
• 28:01
  Speaker 3: Uh yeah, well you know it's it's waiting is the
• 28:05
  Speaker 3: hardest part, right Yeah.
• 28:07
  Speaker 4: Yeah, yeah, but no, I mean look, I mean, I
• 28:12
  Speaker 4: you know, my last podcast, people should check it out.
• 28:14
  Speaker 4: I did yesterday about the Kevin Warsh hearings and all
• 28:17
  Speaker 4: that bs. You know, you know, we are on the
• 28:21
  Speaker 4: verge of a dollar crisis. It doesn't really come up
• 28:24
  Speaker 4: of a debt crisis. You know, they didn't really ask
• 28:27
  Speaker 4: Walsh about that, about the unsustainability of the thirty nine
• 28:32
  Speaker 4: trillion dollars spiraling out of control national debt, none of
• 28:36
  Speaker 4: that stuff. You know, no one's talking about that. It's
• 28:40
  Speaker 4: not just the elephant in the room. It's the elephant
• 28:42
  Speaker 4: in every room, uh, that nobody can see. So I know,
• 28:48
  Speaker 4: you gotta you know, you gotta take action. You know,
• 28:50
  Speaker 4: it's just like if you if you got your advice
• 28:53
  Speaker 4: from the mainstream media prior to the two thousand and
• 28:56
  Speaker 4: eight financial crisis, you had no idea that there was
• 28:59
  Speaker 4: a crisis coming.
• 29:00
  Speaker 2: Yeah, now, I right call it. Yeah.
• 29:03
  Speaker 4: The government was able to bail people out of that crisis.
• 29:06
  Speaker 4: So even if you didn't see it come in, the
• 29:08
  Speaker 4: government bailed you out if you held on.
• 29:11
  Speaker 5: But this crisis is not a crisis.
• 29:13
  Speaker 4: Where the government could bail you out, because this crisis
• 29:16
  Speaker 4: is going to be focused in the government its own debt,
• 29:20
  Speaker 4: not subprime mortgages, but treasuries, the US dollar, And the
• 29:25
  Speaker 4: government can't ball us out of a dollar crisis because
• 29:29
  Speaker 4: all it could do is create more dollars. That's how
• 29:31
  Speaker 4: it bails anybody out. But if the problem is the dollar,
• 29:35
  Speaker 4: more dollars just makes the problem worse. If we have
• 29:38
  Speaker 4: too much debt, issuing more debt makes it worse. See,
• 29:41
  Speaker 4: we issued a lot of debt to bail out the
• 29:44
  Speaker 4: banks and the bailout investors after two thousand and eight.
• 29:48
  Speaker 4: But we were able to do that because there was
• 29:50
  Speaker 4: an appetite for that debt. The world wanted to buy
• 29:54
  Speaker 4: the debt. They wanted to loan us the money. But
• 29:56
  Speaker 4: when the world has had enough, when the crisis is
• 29:59
  Speaker 4: we don't I want your bonds anymore, then where's the
• 30:03
  Speaker 4: bailout coming from it.
• 30:05
  Speaker 5: Can't.
• 30:06
  Speaker 4: It doesn't mean they won't try. It just means that
• 30:08
  Speaker 4: it will blow up in their faces and worsen the
• 30:12
  Speaker 4: crisis that they're trying to bail us out of. So
• 30:14
  Speaker 4: you got to bail yourself out now by restructuring your portfolio.
• 30:19
  Speaker 4: Get out of US stocks and bonds. I mean, I
• 30:22
  Speaker 4: still own a few US oil stocks and a few here,
• 30:25
  Speaker 4: you know, but I mean they're very selective, but mostly
• 30:27
  Speaker 4: all my money is foreign now. But get out of
• 30:30
  Speaker 4: US stocks, get out of US bonds. I don't known
• 30:32
  Speaker 4: any US bonds. Don't hold on the US cash, you know,
• 30:37
  Speaker 4: other than what you need for your immediate expenses or
• 30:40
  Speaker 4: maybe six to twelve months of you know, expenses, but
• 30:44
  Speaker 4: money in an investment account, money that you've already set aside,
• 30:48
  Speaker 4: like for part of your investments. Don't hold cash. Get
• 30:52
  Speaker 4: the hell get out of that. Yeah, and protect yourself.
• 30:55
  Speaker 4: That inflation is a tax. It's going to be a
• 30:58
  Speaker 4: huge tax.
• 30:59
  Speaker 5: And it taxes dollars dollar denominated assets. So avoid it.
• 31:03
  Speaker 2: You know.
• 31:03
  Speaker 4: Talk to my representatives at your Pacific Asset Management, and
• 31:09
  Speaker 4: you know we're still small, but you know we're now
• 31:12
  Speaker 4: probably about two and a half billion that we're managing
• 31:16
  Speaker 4: and is growing. I mean, people are starting to wake
• 31:19
  Speaker 4: up because just a couple of years ago it was
• 31:21
  Speaker 4: a billion. And the reason it's grown so much it's
• 31:26
  Speaker 4: mostly appreciation of the assets, you know, but it's also
• 31:30
  Speaker 4: now we're in fact, for all of twenty twenty four
• 31:38
  Speaker 4: and into the first quarter of twenty twenty five, I
• 31:41
  Speaker 4: had net outflows. Customers were taking money out of my
• 31:46
  Speaker 4: accounts for a year and a quarter. And in fact,
• 31:49
  Speaker 4: the biggest outflows I ever had was in the first
• 31:53
  Speaker 4: quarter of last year. But last year was the biggest
• 31:57
  Speaker 4: gain I ever had in returns. So investors bailed on
• 32:01
  Speaker 4: my strategy just before it had its best year ever.
• 32:05
  Speaker 4: And that shows you how bad timing can be, especially
• 32:09
  Speaker 4: within retail. So I point out, you know people who
• 32:12
  Speaker 4: think they can time the market, it's a very hard
• 32:15
  Speaker 4: thing to do because you try to time it and
• 32:18
  Speaker 4: you miss out on some of the biggest moves. And
• 32:20
  Speaker 4: a lot of times when you get out, it's after
• 32:23
  Speaker 4: something has already gone down. That's what makes you nervous.
• 32:26
  Speaker 4: Oh the market's gone down. Let me get out before
• 32:29
  Speaker 4: it goes down anymore. And the next thing you know,
• 32:31
  Speaker 4: it's gone way up. So a lot of times, trying
• 32:34
  Speaker 4: to time the market can be your worst.
• 32:38
  Speaker 2: Enemy.
• 32:38
  Speaker 5: I mean, to me, it's value.
• 32:42
  Speaker 4: It's not like, hey, I'm gonna buy and hold the
• 32:43
  Speaker 4: US stock market indefinitely even if it's expensive. If it's expensive,
• 32:47
  Speaker 4: get out. But it's not about timing. It's about making
• 32:50
  Speaker 4: a judgment. And to me, if I look around the world, yes,
• 32:56
  Speaker 4: US stocks are expensive, but all stocks aren't expensive.
• 33:00
  Speaker 5: Buy the stocks that are cheap.
• 33:01
  Speaker 4: Let me put my money where I can get good value,
• 33:04
  Speaker 4: especially if I can also get out of the dollar
• 33:07
  Speaker 4: at the same time.
• 33:07
  Speaker 5: I killed two birds with one stone.
• 33:09
  Speaker 4: I get out of expensive stocks and I get out
• 33:12
  Speaker 4: of a currency that's going to collapse, you know. And
• 33:16
  Speaker 4: if you don't want to buy stocks at all, then
• 33:18
  Speaker 4: then buy gold. So you know, you can go to
• 33:20
  Speaker 4: shift Gold. I got my gold company. You know, I've
• 33:22
  Speaker 4: got a new venture, Key Gold, and hold e Gold
• 33:27
  Speaker 4: as part of shift Gold. But you can go directly
• 33:29
  Speaker 4: to t goold dot com and that's virtual gold, but
• 33:31
  Speaker 4: it's real gold that you own. But ultimately I'm going
• 33:35
  Speaker 4: to build that platform up. In fact, we just launched
• 33:37
  Speaker 4: the shift gold app and the t gold app will
• 33:40
  Speaker 4: be coming. But what I want to do with t
• 33:43
  Speaker 4: gold is allow people to send and receive gold to.
• 33:47
  Speaker 5: Other key Gold customers.
• 33:49
  Speaker 4: So we can use gold as a media of exchange,
• 33:52
  Speaker 4: but then also be able to withdraw the gold in
• 33:55
  Speaker 4: the form of a token, tokenized gold that can be
• 33:58
  Speaker 4: traded on it, you know, of exchanges you could use,
• 34:01
  Speaker 4: you know, instead of tether, you know, instead of stable coins,
• 34:04
  Speaker 4: or certainly instead of bitcoin, although nobody uses bitcoin for
• 34:07
  Speaker 4: anything other than gambling. But I want people to use
• 34:10
  Speaker 4: tokenised gold as a mean of exchange instead of dollars,
• 34:15
  Speaker 4: you know. So all that stuff is coming. So you
• 34:17
  Speaker 4: can open up an account there by by going to
• 34:19
  Speaker 4: t gol dot com. There's like no minimum, so you
• 34:21
  Speaker 4: can just get started with a small amount.
• 34:23
  Speaker 3: Oh very cool, right, Well the links in the show
• 34:26
  Speaker 3: notes to this interview on Financial Survival Network dot com.
• 34:31
  Speaker 3: Thanks for the update to always uh always controversial and
• 34:37
  Speaker 3: always interesting and more importantly, U definitely advice that you
• 34:44
  Speaker 3: can you can really profit from actionable advice.
• 34:47
  Speaker 2: That's what we really like to see.
• 34:49
  Speaker 4: Yes, well, that's all my advice is actionable. That's why
• 34:52
  Speaker 4: I'm giving it. I want people to take action.
• 34:55
  Speaker 3: Yeah, and a lot of you out there have and
• 34:58
  Speaker 3: no doubt more of you will.
• 35:00
  Speaker 2: Peter, always a pleasure. We'll talk to you real soon.
• 35:02
  Speaker 5: H I take care.
• 35:03
  Speaker 1: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 35:07
  Speaker 1: solution to today's trying times. For the latest, go to
• 35:11
  Speaker 1: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,