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**UNTHINKABLE** Silver and GOLD Navigate World Changes-- (Peter Grandich) · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

0:00
I can't tell you how much in the last 12 months I've heard this
0:04
question brought to me and I can't help them.
0:07
Miss Granich, is there any way I can get my money offshore or get
0:11
out of here or get it to where the government can't take it,
0:13
etcetera, etcetera. From normal people, not gold
0:16
bugs, not people that own a lot of mine shares or any, just
0:19
regular working people of older because that's how concerned
0:23
they are about the safety. Is the world falling to pieces?
0:34
Will gold and silver offer a safe harbor for investors who
0:39
want to preserve their wealth? Today, we're fortunate to be
0:42
joined by Mr. Peter Grandich. He has decades of experience
0:47
following the general markets, the precious metals and even the
0:50
junior mining stocks. Peter, welcome to Ron's
0:53
Basement. Always a pleasure to be with
0:55
you, Ron. Thank you.
0:56
So I I have one question for you Peter.
0:59
What's going on in the world? The best word that I can come up
1:03
with to describe how I feel when I look at just everything going
1:08
on is scary and synthetic. Do you have any any thoughts on
1:13
what you see happening right now?
1:15
My one word would be evil. So and that's both from a
1:20
secular view and a spiritual view, there's there's no
1:24
question that we've had tough times in the past, but this is
1:28
unique now only because the way people can communicate and
1:34
instantaneously things happen. And let me just give you an
1:36
example of how something can get out of hand quickly as we speak,
1:41
as we talked to just a few days ago, the Middle East crisis
1:46
during the evening or night for us, suddenly there were reports
1:49
that a hospital was hit by the Israelis.
1:53
And immediately, I mean faster than because of the Internet and
1:57
all all sorts of reports and stories confirming the Israel
2:01
islands struck this hospital, hundreds of killed.
2:04
And of course that set off more protests and more anger and more
2:09
fodder for this horrific incident to begin with.
2:13
And the reality was when we came the next morning by the
2:17
combination of what was shown, an actual video understanding
2:22
logics and experts explaining about rockets and what the
2:25
difference of when a missile hits versus a rocket that went
2:28
up and came down. And then we see was basically
2:30
the parking lot that was kind of destroyed had nothing.
2:34
The hospital was still standing, but the damage was already done.
2:38
And so I think the difference between now and any other, when
2:43
people go, oh, the Middle East, there has been problems there in
2:46
the past. No, for starters, is a lot
2:49
quicker ways to get things out of hand than used to be.
2:53
And this involves a much deeper story and it goes back hundreds
2:58
if not thousands of years. Ron, there are people that just
3:02
literally hate each other, that they could go in and kill
3:06
innocent women, adults, and especially children without any
3:11
disregard or or emotional feeling.
3:14
I I I can't begin to imagine even the most angry person I've
3:18
ever been mad at in my entire life that I would go and slit
3:22
their throat or something of that nature.
3:24
And so that's the other ingredient that I think people
3:28
have to understand. And if I may add just one, how
3:30
spiritual ties into this When you have people who believe
3:35
their God or how they see God applauds them and rewards them
3:40
for killing. When there's another side that
3:44
actually believes that their savior came to save people from
3:47
killing themselves and living, you know, a terrible eternal
3:50
life, etcetera, that's hard to battle.
3:53
A group that believes that that there's a God that's going to
3:55
reward them for killing and that's what we're up against.
3:58
Yeah. You know, I was last night.
4:02
I was watching some TV appearances.
4:04
You've been on most every major network over your years, and
4:07
there were a couple clips from you in the 1980s, the late
4:11
1980s. If we could go back in time and
4:14
visit that Peter Grandich in 1987, and we told you what was
4:20
going on now in the world in general.
4:23
But even on top of that, what's going on in the United States?
4:27
Do you think you would? You would believe me.
4:30
Well, no. First of all, it's ironic that
4:33
today, as we record on the 19th of October, it's an important
4:37
day for me because it's where really I made my mark in the
4:41
financial service business. I was only in the business a few
4:44
years I was head of investment strategy for a firm.
4:47
And in that August of 1987, I put out a forecast of a stock
4:51
market crash. People laughed.
4:52
I mean, just not going to happen.
4:55
October 19th, we felt 22, almost 23% alone that day and they were
5:00
dire predictions of what was going to happen for that.
5:03
And the next day I actually said that within two years we should
5:06
be back in the new high. So a lot of comments were lucky,
5:10
calling the crash nuts, thinking we're going to be back to new
5:13
highs. But what I would find
5:15
astonishing most first, how we moved away from what our parents
5:21
and our grandparents believed and acted both in society,
5:25
socially, politically. But if you told me back then
5:30
that we would have anything with a trillion let alone 33 trillion
5:35
in debt and multi trillion dollar deficits.
5:39
When I entered the business back in 1984, America was the largest
5:43
creditor nation. Now we're literally at the point
5:48
where people concerned we may not even be able to fund the
5:51
interest expense on the debt that's getting out of hand.
5:54
So that would be my single biggest unbelievable thought
5:58
that if you told me that you came from the future and that
6:01
was happening and I would tell you, you know you're some crazy
6:03
guy, but that is the the, the ability to have turned this
6:09
country so indebted. And Ron, people have to
6:12
understand it's not just on the government level, it's personal
6:16
debt and it's corporate debt as well that's gotten out of hand.
6:21
I know it's, you know, my background's in accounting.
6:24
So I I look at the numbers and it is truly astonishing.
6:27
Like you said, you know student loan debt.
6:30
Mortgage debt, credit card debt, corporate that you know and then
6:34
we hear more and more especially in this higher interest rate
6:37
environment that there's a lot of companies, mid size and
6:40
larger companies in the United States that are zombie companies
6:44
that were only able to exist because of the low interest rate
6:49
environment. And then as we look out into the
6:52
next year or two. That there could be a wave of
6:55
bankruptcies coming there. You know, I think one thing that
6:58
that always strikes me about debt, you know, and you hear
7:01
I've, I've heard the #300 trillion in total debt
7:05
throughout the whole world is that somebody thinks they're
7:08
gonna get paid back on all that debt.
7:10
And and there's speculation that there's like no way possible
7:15
that with all this synthetic debt in the world that everybody
7:18
could ever get paid back what they think they are owed.
7:21
Does that does that make sense? Yeah, it's it's not going to
7:24
happen. Listen, we're never going to pay
7:26
back the $33 trillion. We may be able to get to a point
7:31
somehow to an austerity of of a generation or more, which I
7:36
don't think anybody really is prepared for in America.
7:39
We have such a split now political.
7:41
I think that's critical for people to understand that
7:44
because remember, it's the politicians are going to have to
7:46
get together and finally get their act together and put the
7:49
house in order. And we have two parties now that
7:52
not only do not want to be in the same room with each other,
7:54
but have fractions within their own parties that don't want to
7:57
be in the same rooms with each other.
7:59
So it's very hard to imagine that anything could come
8:02
together. And you know, I think this is
8:05
the real scary part of what we're discussing.
8:08
There's one last semi bipartisan group that exists in Washington.
8:13
Everything else is totally partisan and that's the
8:16
Congressional Budget Office. And the Congressional Budget
8:19
officer earlier this year issued A dire warning, which they
8:22
thought was dire then, that in less than 10 years we were going
8:26
to hit $50 trillion the way deficit spending and everything
8:30
was going. Now they're changing that to as
8:32
little as six or seven years because we've gone insanely on a
8:36
debt binge since the last so-called debt ceiling push off.
8:42
Remember that comes back in November.
8:43
We never solved it. We still have to answer that and
8:46
all. And when you start to think that
8:49
in six or seven years, that's basically please, God, for
8:53
everybody listening to this, it's still going to be alive.
8:56
It's not like 10 or 20 years ago when we used to talk what we
8:59
knew was 10/20/30 years away, we didn't get too worried about it.
9:03
But it's all within our reach now.
9:05
And I can tell you this in our planning group that that we
9:08
still sit with and with all sorts of different people and
9:11
all sorts of different income levels and things of that
9:13
nature, age 7 out of 10, Americans continue to live
9:17
beyond their life. Their lifestyle is bigger than
9:21
their finances and they still borrow from the future by
9:24
incurring debt now or instead of preparing for the future and
9:28
putting money towards retirement at all, they use it to Live
9:31
Today and people are not even remotely ready for what could
9:36
happen. And then those that are living
9:38
beyond their lifestyle are on. Many of them are still betting
9:42
that markets are going to be performing in the same way they
9:45
last a couple decades ago, and they don't understand how much
9:48
has changed monetarily, politically and all that.
9:50
We just can't see that rampant flooded money where the Fed just
9:55
goes and prints all sorts of funny money again and stock
9:59
markets go through the roof and bonds go back to 1% and all
10:02
that's not in the cards. And those people are really in
10:05
for a rude awakening. Yeah, the the the hens may be
10:10
coming home to roost are the grand finale.
10:13
I don't know, it's hard to put into words, but you know, I'm 53
10:17
years old and I I just look at the last 20 or so years and it
10:20
feels like it was a big party. And most people I know, yeah,
10:24
they just kind of think, well, I put money in in my 4 O 1K and it
10:27
just goes up and up and up and it's like magic.
10:30
And it just doesn't last forever.
10:33
You know, the the one thing I want to interject with what you
10:36
were saying that that came to mind is the other thing that
10:39
really gets me is with the deficit.
10:41
You know we're spending $1.4 trillion every year, more than
10:47
we bring in as a country. And and even with that like
10:51
spending that much more money, all they can squeeze out of our
10:55
economy is what it, whatever it is, 2% growth.
10:58
I mean wouldn't you think that it just feels like everything is
11:02
coming to a head and I don't want to be negative and I don't
11:04
want to be doom and gloom, but I want to be a realist as well.
11:07
And it just, it feels like we're at A at a major tipping point,
11:12
whether looking at it on a on a big macro worldwide level or
11:17
just the United States or even. The way a lot of our friends and
11:20
neighbors here, you know, our fellow citizens in the United
11:23
States are living their life, it's like like we're on thin ice
11:27
is a well, Ron, you know, as an accountant, if you would talk to
11:31
me and my business and you were looking at my books, you would
11:34
say, hey, Pete, you owe some workers some money.
11:37
This you have some. You have to put money aside.
11:41
You have to fund unfunded liabilities.
11:44
It's it's required. OK.
11:46
The government doesn't, that's why that and the fact that and
11:51
and one of the other negatives that's coming home to roost, it
11:53
got away with a lot of this because it was the world reserve
11:56
currency. And Ron, there's no question, I
11:59
think Bull or Bear could argue that much of the world is moving
12:05
away from America or at least not looking at it in the same
12:09
manner that it did 1020 or 30 years ago.
12:12
And we've already seen a decline in the usage of the dollar over
12:16
the last 10 to 20 years. Significantly.
12:19
We're seeing a lot of people, including our adversaries that
12:22
once held a lot of our debt, selling it.
12:25
And we see the bricks, whether you like it or not or you're not
12:28
going to turn on NBC and see it up, reporting on it.
12:31
But the fact is that's a growing group that's a movement that's
12:35
moving forward, not backwards like America.
12:38
And all those things are negative for the United States.
12:43
And I have to tell you this, Ron, it doesn't help my planning
12:47
group. I don't sell any type of
12:49
physical bullying or anything like that.
12:51
I don't sell dry food, ammo, guns, cabins in the woods.
12:58
This talk doesn't bring more people because what happens,
13:01
Ron, just so you know, they hear it and I hear this line.
13:05
Well, I I know you're right, but I'm praying you're wrong, Miss
13:07
Granage. And then they go down to the
13:09
street, the guy that's a member of the don't worry, be happy,
13:11
Granite says that guy. Granted, this is a nut job.
13:14
Listen, let me tell you why everything's going to be hunky
13:16
Dory. That's easy to accept because
13:18
people don't human beings don't like change in any regard in
13:23
anything, OK? And to ask them now to recognize
13:28
that they have to make such a volatile change to versus how
13:31
things have been. That's why it's also hard for
13:34
the older people your age up to my age in the 60s and 70s to
13:38
look at a miracle. Boy, everybody screwed up.
13:41
Look at these young people because they are moved
13:44
completely away from the lifestyle and beliefs and
13:48
everything that our parents and grandparents incorporated.
13:51
If you're looking to buy gold, silver, or platinum, do yourself
13:55
a favor and check out PIM Becks, the online precious metals
13:58
bullion dealer and sponsor of Ron's Basement.
14:02
I was a happy customer before they offered to support the
14:05
channel. You'll find they have the best
14:08
prices, quality and service. I think Pembex is best and you
14:13
will too. And be sure to tell him that
14:15
you're from Ron's basement. The multi culture relativism
14:19
wokeness is a fabric Now in our society it didn't exist 20 or 30
14:24
years ago. So for a young person that's all
14:26
they know. But for older people who saw a
14:28
completely different lifestyle, go, oh man, this is going down
14:32
the toilet. I can't tell you how much in the
14:34
last 12 months I've heard this question brought to me and I
14:38
can't help them. Miss Granage, is there any way I
14:41
can get my money offshore or get out of here or get it to where
14:45
the government can't take it, etcetera, etcetera.
14:47
From normal people, not gold bugs, not people that own a lot
14:50
of my shares or anything, just regular working people of older
14:54
because that's how concerned they are about the safety.
14:57
And that's why I talk about one thing and I'm.
15:00
I'm hopping all over. I'm sorry, Ron, but the thing
15:02
that isn't spoken about in the investment world, which is
15:04
critical, is, and I post from time to time on Twitter about
15:08
it, that crime is a growth industry in America.
15:11
One of the things that's underpinning concerns to people
15:13
is, is the criminality that's happening.
15:16
We're watching people just go into other people's businesses
15:19
and stores and take what they want, laugh at it.
15:21
And in some states, like California, they want to punish
15:24
the people if you interject and try to stop them.
15:27
Now that's gotten to the real the insanity when you talk about
15:31
how crazy the world is and all and all.
15:33
And I don't just see how that reverses.
15:35
And we go back to happy days are here again.
15:37
I just don't see how it could be possible, Ron.
15:39
No, it's it, it's not a it's not a pleasant situation.
15:42
You know, this morning I have twin 11 year old daughters and I
15:47
and I look at the future for them and I'm concerned, right?
15:50
Well, I I was waiting for them to get on their school bus to go
15:54
to school and I sit on our front porch and I was.
15:56
Going through preparing for my interview with Peter Grandich
15:59
and my neighbor. Peter came walking by with his
16:02
dog and I said hi to him and I know him pretty well on a pretty
16:05
decent casual level. And I told him I was talking to
16:09
you later and he asked what my channel was about and he echoed
16:14
everything that you just said. And I would say, you know, he's
16:17
an aeronautical engineer. He's not a guy who's a gold bug
16:21
or a silver bug or a or a mining stock investor like you just
16:25
said. He was like we don't know what
16:26
to do. You know, he's talking,
16:27
referring to him and his wife. He's like, it's scary with
16:30
everything. It feels like not not enough.
16:34
But more and more people in the United States are maybe starting
16:38
to wake up a little bit that that we are not in a very in a
16:43
very good situation right now And and again and people always
16:47
assume when I speak and talk negative about Democrats and the
16:51
left, oh he must be a Trumpster. I'm not really a Trumpster.
16:54
The wife is. I'm not.
16:56
I've always felt he's been too arrogant.
16:57
But if you look at it and take away personalities for a moment
17:03
realistically the era that seemed to be the best that we
17:06
can remember is when he was president we had no energy
17:11
crisis. We became energy self efficient.
17:15
He was making peace in the Middle East.
17:16
You know, no one gives credit, but you know, and we were
17:19
getting close to Saudi Arabia. We had no problem to the extent
17:24
that people have no idea what this border crisis is going to
17:27
lead to when you start having, listen, let me touch on this
17:31
because this is not spoken a lot about it should be.
17:34
I don't blame the people that are trying to come through that
17:36
border. Just so you know if I was in a
17:38
country where I know where they're coming from, things are
17:41
not good compared to what they could live like here, even on
17:45
our lower levels. And then I see that I can just
17:49
get through. If I get there, I'm in.
17:52
You're not going to not only not stop them you're just going to
17:54
encourage more and more of this. And it's it's, it's asinine to
17:59
try to understand how the group, the Biden, who's ever really
18:04
supporting them because he's deteriorating so bad right now,
18:08
Ron, and so much that you're seeing it.
18:10
I don't think he can go physically another six months.
18:14
I don't think he can be propped up.
18:16
He's having such terrible times even in this trip to Israel
18:19
muttering and just all over the place.
18:22
And this is the the scariest thought.
18:25
This is my scariest moment. When you start it, there's two
18:28
words that if you had to say to me, I heard I say it's all done,
18:31
Ron. If you think it's bad now, it's
18:34
going to get 10 times worse because of these two words.
18:37
President Harris, if Biden can't fulfill his presidency here,
18:43
because I think in the end they'll announce that he's not
18:45
going to run, you know, further. But if he can't fulfill the
18:48
presidency and that person takes has to take over as president?
18:53
No, not good. Can you, Can you imagine, I was
18:59
just as you were speaking, thinking about this over the
19:01
last three years? We have a war in Europe, a real
19:06
war in Europe. We have a real war in the Middle
19:09
East. We have a border crisis.
19:11
And I'm I'm sure I'm forgetting a lot from the list.
19:14
I'm just thinking like, what's the cherry on top here?
19:17
Will it be war with China? I mean, it's a as I go back to
19:22
1987, I was 17 years old. You were on, you know on all the
19:27
major news networks and and I asked you this earlier, I I told
19:30
you about, you know, what was going on in the world.
19:34
Do you think you would have thought that at that time if
19:37
you, if you knew how the world was going to progress in the
19:40
next, you know, 35 years or so that you would want to hold
19:44
silver and gold? Yeah, to some extent.
19:49
But I still as much as people think because I've been so
19:55
incredibly embarrassed these last few years.
19:57
But like you said, if you watch my old interviews, there was
20:00
times I was very bullish on the markets, especially on the
20:03
income side because I felt interest rates were going to
20:06
fall dramatically and that was the safer bet.
20:08
But I'll tell you the difference back then.
20:10
So when I entered the business in 1984 and this is a good
20:13
story, let me take the time to tell you this, Ron.
20:15
This is very, very good. So we had gone through 27 years
20:21
with the Dow, traded just between 700 and 1000 and by
20:25
1980. The business week ran a famous
20:29
magazine front cover that said equities are dead.
20:33
And at that time Reagan was just coming in.
20:37
He was going to blow up the world.
20:39
That was going to be the thing. We had this, you know, with the
20:41
Soviet Union going on. Japan, not China, was going to
20:45
be the powerhouse. China was just this little group
20:48
that sold these little trinkets that you can buy real cheap.
20:51
They were not considered with anything close to what they are
20:54
now and basically people were we just gold had just hit 800.
21:00
You know, and there were, there were things called Howard Ruff
21:04
had the thing called the war room where it was all day
21:07
talking about you know gold and hide your money and all this
21:10
kind of stuff and equities, people like who would want to
21:14
own stocks, you know, interest rates.
21:17
I came in in the brokerage business in March of 1984 and
21:21
the first thing they gave me to sell by the phone because that
21:23
was the only way you could develop business.
21:25
There was no Internet, there were no cell phones.
21:28
You dialed and told people we had 10 year, 15% CDs and most
21:33
people who didn't hang up said 15%.
21:38
Interest rates were just 20. You can get me 17 or 18, I'd be
21:41
interested. Now imagine that 15 what we
21:43
would do for 15% CD right now anyway if this guy comes out
21:49
called Robert Prector junior with the Elliott wave theory and
21:54
he projects and they start to put him on.
21:56
At the time was financial news. Now there was no CNBC and news
22:01
stories of 2700 on the Dow. Now I'm sorry, 3700 on the Dow
22:09
and people said are you crazy? 3700 on the Dow he was laughed
22:14
at, scoffed at by some people, but he had this thing called the
22:17
Elliott Wave theory. It was a technical analysis
22:21
which wasn't big on Wall Street at the time and he started to
22:24
get some coverage and the market went up And then when it got to
22:29
its high in September of 87, he made a statement that sounded
22:33
like he was calling for crash. People argue whether it was or
22:36
not. And I had already as this young
22:39
31 year old stockbroker that was put in this position of being
22:43
the investment strategist for a New York Stock Exchange member
22:47
firm, had about 200 and something brokers at the time I
22:50
forecast this crash and they wanted me to retract it or
22:54
resign. And can I tell you the reason
22:56
why? Because this is very important
22:57
for people to understand why I have such a distaste for what I
23:00
call the don't worry, be happy crowd on Wall Street.
23:03
The chairman called me up and he said, listen, Peter, 90% of our
23:08
clients are not going to sell everything which you're telling
23:10
them. And if you're wrong, which we
23:12
think you're going to be, you're going to be the laughingstock.
23:14
They'll never listen to you again.
23:16
We can't afford that. And if you happen to be right
23:20
and this terrible thing that you're predicting happens,
23:22
they're not going to be in any shape or mind to take advantage
23:25
of when you tell them it's to go in.
23:27
So let's look at the 10% that may listen to you.
23:30
I'm willing to bet that half of them won't go in when you tell
23:33
them it's time to go in. Peter, you can't stay on
23:36
business on Wall Street with only 5% of the people truly
23:38
profiting from your advice. So retracted or resigned.
23:42
I didn't. 10 days later the Dow was up like another 7%.
23:47
I was getting calls from our other brokers, hey, I passed by.
23:50
They're hiring at the supermarket.
23:52
I mean, I mean things went on. Then the market started to turn
23:55
in September and then of course we had the crash.
23:58
And the ironic thing about that whole thing was we were one of
24:01
the only firms that were taking calls on the 19th and trades and
24:05
they went out of business because they took trades instead
24:09
of just like a lot of the people didn't answer their phones.
24:12
And the reason I say that all is the mentality then in the early
24:15
1980s was 360 degrees from where we were about 18 months ago in
24:20
the market here. Everybody still even a lot say
24:24
market's the only place it's going to go on, you know,
24:27
forever. It can't miss blah, blah, blah,
24:28
blah, blah. And we've turned 180 degrees and
24:31
we've turned at a time when all the things that we just started
24:34
discussing it, we could spend hours talking about the negative
24:38
fundamentals that are out there and all.
24:40
And yet, by and large, the financial community, which can't
24:44
read a balance sheet, you know, as an accountant, you can go to
24:47
most financial accountants and much financial advisors, don't
24:50
understand a balance sheet, couldn't read it, have no idea
24:53
to understand how funding works and what BRIC nations and all
24:57
that kind of stuff. And those are what most people
25:00
are depending on, who don't really have an understanding
25:04
even if they did. And I'll close with this.
25:06
I rambled on. I'm sorry, but you got my you
25:09
got me going On a special day. I believe that the Archangel
25:13
Gabriel showed up at most chief market strategist or the talking
25:17
heads you see on Tal TVCNBC and all, and told them directly.
25:21
God sent me to tell you there's a crash coming.
25:25
Even if they believe the Archangel went down to their
25:28
office to want to broadcast it, the firm will never let them
25:31
broadcast it. So I don't believe there's true
25:33
objectivity from most of the financial service industry.
25:37
And that's why I feel that most people are still in this
25:39
position and don't understand the ramifications of what's
25:43
truly happening in the world today.
25:45
I I agree with you 100%, I think most of my contemporaries.
25:51
Absolutely. Think that almost like there's
25:53
no risk in the stock market, like, oh, you just put money in
25:57
and if it goes down, I hear this all the time, it always comes
26:00
back, it always comes back up. And I also agree with you 200%
26:06
that I would bet 98% of the people out there when they buy a
26:12
stock. They don't know how the market
26:13
works #1, even just how to buy with limit orders or market
26:17
orders. But most of them have no idea
26:20
what they're buying. They'll buy Apple stock, for
26:22
instance, because, well, I like Apple phones, you know?
26:25
They have no idea what, when they buy a share of Apple stock
26:30
or any other stock, what they're actually doing and what they're
26:33
getting for their money first. Mining Gold is a development
26:37
company advancing 2 of the largest gold projects in Canada,
26:41
Spring Pole in Ontario and Dupar K located in Quebec.
26:46
Each already has 5 million ounces of gold reserves, but
26:50
exploration initiatives are underway at both projects to
26:54
find even more gold. First, mining is well financed,
26:58
has zero debt and owns an interest in four additional
27:02
Canadian Gold development projects.
27:06
And I wanted to ask you, 'cause that's something on my list here
27:08
quickly, This magnificent 7 that we have now, right, that makes
27:12
up, what is it, 30% of the S&P 500?
27:15
Facebook, Apple, Amazon. To me, that kind of just fits in
27:21
with what you were just talking about.
27:22
Where where people just don't believe that there's really any
27:26
risk that they could lose money in these stocks, that they're
27:29
just always gonna go up, up, up forever.
27:33
Well, let me tell you something I think is very important, and I
27:35
share this in all our meetings when people are willing to sit
27:39
and listen because a lot of people don't want to take the
27:41
time they want. Just things like this.
27:44
The stock market is nothing. Zero, almost zero to what it was
27:49
when I entered the business. When I entered the business in
27:52
nineteen, 8590% of the trading was individual retail investors.
27:57
That was it. And those people were buying and
27:59
selling pot ownerships of businesses.
28:01
That's what they were buying it for and we have three to five
28:04
year outlooks. People were willing to wait that
28:06
long for report. Today over half the money that's
28:11
all in the stock market is in what we call non active funds.
28:16
Meaning they're tracing that they put money in these funds or
28:20
with people who are trying to match indexes or indices and not
28:25
actively trade. Just if they go up, keep my
28:27
money in, if they go down, you know sell, sell it out.
28:32
And then the remaining half, about 80 to 90% of that is being
28:37
driven by some sort of computer program.
28:39
It may be simple algorithms that if there's a new story and these
28:43
words are in it, you buy or short or very complex
28:47
strategies. Now with gamer being short of
28:49
this option, simultaneously selling this future and all
28:53
those people have no idea, don't even care what the names of the
28:56
companies are. They won't even tell you what
28:58
they do or even though the name of the CEO.
29:00
It's a very sophisticated casino like atmosphere.
29:04
So that's what makes up most of the markets Okay.
29:08
That's what's the money that's in there for this and it's it's
29:13
setting us up for not what people steal.
29:16
Individuals like you talked about that have a four O 1K and
29:20
think well people are looking at and the company's good.
29:24
My guy he's a money manager's going to buy it and sell it.
29:26
Well, guess what, Nobel Laureate have done very multiple studies
29:31
and found that 80% of money managers underperform an index
29:34
fund and 85% of bond managers underperform a fund.
29:42
Now think about that, If you and I were facing a medical or a
29:45
legal problem and we were told that the personal persons we're
29:48
about to go to 8 out of 10 times don't perform as good as the
29:51
other people over there, we're going to try to go to the other
29:53
people over there. But yet that's what makes up the
29:57
so-called professional community right now.
29:59
So I just think it's, I hate to call it a disaster, but it's
30:04
very dangerous. And again, most people remember
30:08
now 2/3 of our Americans are working paycheck to paycheck.
30:12
Ron, retirement is not even an issue for anymore.
30:15
In fact, I put out a couple days ago and I was shocked that it
30:17
was CNBC that first reported it. Studies have come out now that
30:21
those people are more concerned about having enough to pay for a
30:25
disaster of a 500 or $1000 and have that so they can cover or
30:30
buy food. Then they're even concerned
30:32
about the retirement anymore because they realize they're
30:34
never going to save, be able to save enough money to retire and
30:37
live those financial commercials.
30:38
You all see where you come and see them and they they show you
30:41
doing golf or whatever it is for the rest of your life and so
30:44
forth and so on. It's a it's a very it's so bad,
30:49
it's it's unrealistic to think what I thought in 87 on this day
30:54
and what was going to happen after that.
30:56
And what we're now facing now has no rhyme or reason.
30:59
Like you said earlier, if you came and told me all this, I
31:02
would have said this is just some crazy guy that smoked some
31:04
very bad stuff. And then, and then I would have
31:08
told you you'd be broadcasting to the world with some guy in
31:11
his basement, right? We would.
31:12
We definitely would not have believed that, right?
31:15
Well, yeah, you know, to think about that, I still remember the
31:18
famous movie, you know, that came out shortly after the
31:21
crash. Some people have seen it.
31:23
The original Wall Street movie with Michael Douglas, when he's
31:26
walking with this big cell phone, they were this big and
31:28
only the rich had at the time on the beach.
31:31
You know, it's a famous scene in that movie.
31:33
To think now that we can just take a little phone now and take
31:36
pictures and all to communicate with each other, post things and
31:39
all. Technology wise, we've moved
31:42
forward in some instances, but it's also opened the door for a
31:45
lot of bad things to happen. Yeah, you.
31:47
Know, I was going to say that there have been a lot of bad
31:49
things, but technology, I was trying to think, you know,
31:52
trying to think of some technology and the ability that
31:56
even you and I like right now can connect and do this.
31:58
I'm like I said, I mean, we are. Literally talking to the world
32:02
and I think that's maybe one of the few shining stars.
32:07
But like you said as well to a certain degree that's been used
32:11
for for for negative purposes also as you were talking about
32:16
the about how the markets are working now and how people don't
32:20
know who the CEOs of the company are or or obviously you know
32:24
what the what the balance sheet of the company they're just
32:26
trading names and. It almost feels like to a
32:30
certain degree, and I've said this before myself, that to a
32:33
certain degree it's almost become like a Ponzi scheme to a
32:37
certain degree because you're just relying on somebody in the
32:40
future being willing to pay buy from you at a higher price.
32:45
And that in that in that it sets it up for a potential crash at
32:51
some point. You know, it's funny.
32:54
I understand what you're saying, but it still comes down to some
32:58
of us at least are still buying part ownerships and businesses
33:00
that that's the whole thinking behind it that they would
33:03
produce more gadgets or services and make it more valuable.
33:07
Somebody would want to come along and pay you more for it
33:09
and that person thinks someone's they're going to do even better.
33:11
And that was the philosophy of buying individual stocks.
33:14
But where I think the Ponzi is even more is in the bond market
33:17
because it's all phony money. It much of the the Federal
33:24
Reserve has been the single biggest buyer of the debt that
33:27
they create out of thin air. And there's nothing backing
33:31
that. Oh yeah, it says on the back of
33:32
your paper the full faith and credit of the United States.
33:35
Well, that's Donald Trump back in the 80s when suddenly the
33:37
banks didn't have any faith in him.
33:39
Could he get any credit? No.
33:41
The same is happening in America, just slower and more
33:44
difficult. And that's why the bond market,
33:48
which if you think about it, that's another thing.
33:50
If you would have said to me back in 87, Hey Pete, it'll be
33:53
three years in a row where the bond market is down.
33:57
You went to the bond market for safety back then because that
34:00
didn't happen. You know, you made less, but at
34:02
least you had, you know, you had some income and people could
34:05
live a lifestyle off of that or retire off and knowing they're
34:08
going to get X amount of dollars and all.
34:10
But where you're really concerned now, and that's one of
34:12
the things where the hiccup is in the bond market now is some
34:15
of the sharpest minds are finally talking even on the Tal
34:19
TV's of the world about, hey, listen, it's getting so out of
34:23
hand of the debt. Interest rates may stay
34:26
relatively high even if we do have an economic slowdown
34:29
because we have so much debt and it's going to be hard to keep
34:32
financing it. That's what's entering the
34:35
picture. Now, it's not yet in the average
34:37
individual person or financial advisors mind because they're
34:40
persons. They don't have to answer to
34:42
people yet about that. But if we continue this way,
34:45
they'll have to and they're having less and less people
34:47
ability to finance it. We've already seen what happens
34:51
to a country that has to do it all themselves.
34:53
Just look at Japan. Japan is basically their only
34:57
financier and they have, they have a demographic worse than
35:01
us. They they expect to have only
35:04
two people working for every person retired within 10 years.
35:07
That's unbelievable. That can't be sustainable.
35:10
So again, these are all issues that are compounded and get a
35:17
lot worse when you turn on the TV and you see what's happening
35:20
in the Middle East. Now when some group could hate
35:23
another group so badly and they might have done things that they
35:26
feel that they deserve some retribution to it all.
35:28
I'm not saying anybody's totally innocent but to go and just
35:32
murder and torture and think that your God or your who you
35:39
believe is the reason you're here on earth encourage you and
35:43
is going to reward you for that. That's a that's a battle that I
35:47
don't think America has prepared for yet.
35:49
Israel because of how they have been in a sense this little
35:54
place surrounded by a lot of people that don't like them have
35:57
kind of built the report. But even there in that country
36:00
there's been a split of late on thinking how they should act as
36:04
a country and also it's a it's a very is the most peculiar and
36:08
and and you used the right word scary time since I've been alive
36:13
all 67 years. Yeah.
36:16
And and and I appreciate everything you've shared with us
36:19
today, Peter. I want to interject too.
36:21
You talked about the bond market being even maybe more of a quote
36:26
not quote UN quote, but a Ponzi type situation.
36:30
Is the bond markets like I've read recently three times the
36:33
size of the of the stock market as well.
36:36
I mean, that makes it even scarier.
36:37
And you know what you said? It's hard to put into words, but
36:41
I, you know, I, I I try to explain like the whole system,
36:43
whether you're talking about the bond market, the stock market,
36:47
things have been so manipulated and have grown so out of whack
36:54
that it feels like to me that the system's becoming very
36:58
sensitive and very fragile. And the bigger it gets and the
37:01
more contorted things get that it's that these big events are
37:06
occurring on a more on a more regular basis.
37:10
That, that, that. It's just, I guess I'll just say
37:13
it's a scary time right now, Ron.
37:16
Here's the scariest one. This is the one that I hope
37:20
never comes true right now because of the trillions of
37:25
dollars, maybe 10 trillion or more or a third of all our debt
37:30
may even be up to 1/2 now. Has been floated in the last few
37:34
years, banks, our banking system lives on, taking in your deposit
37:40
and investing in it in a lot of places, including bonds or
37:44
lending out money to people and so forth and so on.
37:47
And virtually most banks now have substantial paper losses.
37:54
If they had to liquidate their assets, they're at a loss.
37:58
That's what caused the banking crisis several months ago.
38:01
Now, right now, there's no reason or not apparent reason to
38:05
expect a run on the banking system.
38:08
But if that started to occur, now we have a huge, huge
38:12
problem. Because even though you'd say,
38:14
oh, this is what, the dollar would be happy crap, the Fed
38:16
will come in, they'll add massive liquidity.
38:18
Rates will drop down. No, not anymore, because people
38:21
are growing concern of our ability to pay it back.
38:25
That didn't exist 5 or 10 years ago, and that's the difference
38:29
now. That's the real scary part.
38:31
And that's the argument for the people who eat each day are out
38:34
selling gold and the bullion dealers and all.
38:37
That's their best argument and a real argument.
38:40
Now that might have been just a bad dream 10 or 20 years ago,
38:47
but it's reality staring us in the face now.
38:50
Yeah, they can only keep the balls in the air for so long.
38:54
Peter, thank you. It's been great talking to you.
38:57
You have a wealth of knowledge and.
39:00
You know, even though these subjects maybe aren't
39:02
necessarily pleasant to talk about, I know that my viewers
39:07
prefer to hear the truth. And you know, none of us claim
39:11
to have a crystal ball, but when we look out there, you know we
39:15
want to be prepared. And so thank you very much for
39:18
your time. If people want to learn more
39:20
about you, they go to petergrandich.com.
39:23
Is that the best way? That's our website.
39:25
If they're on Twitter, I'm at Peter Grandich.
39:27
That's where I found the bulk of my communicating at this point.
39:31
It's a lot of fun. It's easy, it's instantaneous.
39:34
I do do some interviews and of course I'm blessed.
39:38
When people like you decide that they want to talk to me, I post
39:42
that on a YouTube channel that I have, well, you.
39:44
Are one of my favorite guests to have here in Ron's basement.
39:47
You know that. And you know, next time we'll
39:51
promised everybody we'll we'll even talk about the about the
39:54
gold and silver mining stocks as well.
39:57
Well, I'm glad you kept them out, 'cause it was a great
39:59
conversation without those minding centers.
40:02
But you never know. Next time they may be way up.
40:05
So we'll, we'll have a lot more to talk about, right, That'll
40:07
be. Great, Ron.
40:08
Thank you very much. God bless you.
40:10
Thanks, Peter.