Latest / Financial Survival Network / “Silver’s Secret Surge & the Financial Risks They Won’t Admit” - Axel Merk #6305

Transcript

“Silver’s Secret Surge & the Financial Risks They Won’t Admit” - Axel Merk #6305 · Financial Survival Network

• 0:00
  Speaker 1: With silva, you have the industrial use and that creates
• 0:04
  Speaker 1: substantially momlatility. So one interpretation of the rise is that
• 0:09
  Speaker 1: the economy might be doing better than expected.
• 0:12
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• 0:16
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• 0:36
  Speaker 3: Ever, and welcome.
• 0:41
  Speaker 4: You are listening to and watching the Financial Survival Network.
• 0:44
  Speaker 4: I'm your host, Carrie Lutz. Well, market's going crazy. Silver
• 0:49
  Speaker 4: almost at forty dollars an ounce, just a hair's breadth away.
• 0:54
  Speaker 4: We've got gold up there at record levels. We've got
• 0:59
  Speaker 4: Bitcoin up at record levels or near record levels, let's
• 1:03
  Speaker 4: put it that way. Bitcoin so volatile. Axelmurk is with
• 1:07
  Speaker 4: us now live from the vineyard and you know him well,
• 1:12
  Speaker 4: a well known fund manager who has a pensiant for
• 1:17
  Speaker 4: precious metals.
• 1:18
  Speaker 3: Axel.
• 1:19
  Speaker 4: Great to have you back on. It's been too long,
• 1:22
  Speaker 4: but silver. Are we heading for a silver squeeze? A
• 1:27
  Speaker 4: short squeeze? It seems like it's baked into the cake
• 1:30
  Speaker 4: to this observer.
• 1:31
  Speaker 1: Great to be with you. It's been way too many years.
• 1:34
  Speaker 1: So I'm a simpleton. I focus mostly on gold, and
• 1:38
  Speaker 1: the reason I say that is because gold has much
• 1:40
  Speaker 1: simpler dynamics. With silver, you have the industrial use and
• 1:46
  Speaker 1: that creates substantially more molatility. So one interpretation of the
• 1:50
  Speaker 1: rise is that the economy might be doing better than expected.
• 1:55
  Speaker 1: Regarding the squeezing offline we talked about a little bit,
• 2:00
  Speaker 1: I think precious metals invest does. I always think the
• 2:02
  Speaker 1: special that the market gets particularly manipulated. All markets with
• 2:07
  Speaker 1: with derivative markets are quote unquote manipulated, and and what
• 2:10
  Speaker 1: that really is, it's it's really dynamics that are the
• 2:13
  Speaker 1: consequence of these markets. It doesn't necessarily mean that they
• 2:17
  Speaker 1: are the various actors that they just want to make
• 2:20
  Speaker 1: it buck along the way. With regard the potential for
• 2:23
  Speaker 1: for a more volatile move to the upside, well we've
• 2:26
  Speaker 1: seen of course that that that we've had this move,
• 2:29
  Speaker 1: gold has moved quite substantially. Silver historically can be quite
• 2:34
  Speaker 1: amplified in its move, and so I wouldn't rule it out.
• 2:38
  Speaker 1: I actually think it's it's quite possible. Whether that's new
• 2:41
  Speaker 1: to a short squeeze or not.
• 2:42
  Speaker 3: I don't know.
• 2:44
  Speaker 1: I it's it's nice to put a narrative on things,
• 2:47
  Speaker 1: but I like to keep it simple for me. The
• 2:50
  Speaker 1: key thing is that silver is signaling that the kind
• 2:54
  Speaker 1: of the bottom isn't falling out of the economy, and
• 2:56
  Speaker 1: that's why it's it's it's playing catch up in some
• 2:58
  Speaker 1: ways and then some.
• 3:01
  Speaker 4: Also. Don't you think there's some renewed investor demand for
• 3:05
  Speaker 4: the shining metal as well?
• 3:08
  Speaker 1: Well, there's certainly been been broadening and just for contact
• 3:11
  Speaker 1: for those who don't know us, we manage a two
• 3:13
  Speaker 1: and a half billion in both gold and the gold
• 3:16
  Speaker 1: miners or precious metals miners that include silver do not
• 3:19
  Speaker 1: many good pure plays on silver, so it's often more
• 3:22
  Speaker 1: of a byproduct. And indeed, the way I would just
• 3:26
  Speaker 1: kind of astracted speaking group the investors aside from the
• 3:29
  Speaker 1: central banks, you got the diversifier, you got the investor
• 3:33
  Speaker 1: who's concerned about the person car of the dollar, and
• 3:37
  Speaker 1: then you do also have the speculator, and the speculator
• 3:40
  Speaker 1: tends to be more on the mining side than the
• 3:42
  Speaker 1: physical side. Many of those speculators are more on the
• 3:45
  Speaker 1: cryptocide these days, they are not very loyal. They'll go
• 3:48
  Speaker 1: whenever there's action. Now, what we have seen is we
• 3:52
  Speaker 1: have seen more interest from every one of these constituents,
• 3:58
  Speaker 1: and we have more conversation on the physical goal side.
• 4:01
  Speaker 1: We see flows on that side, we see on the
• 4:06
  Speaker 1: on the mining side, in part because there's been disappointment
• 4:09
  Speaker 1: with the larger mining companies, we've there's a lot more
• 4:13
  Speaker 1: attention to what we do. But even within the industry
• 4:16
  Speaker 1: of course as well, merger activity has kind of moved higher.
• 4:21
  Speaker 3: And the other day I.
• 4:22
  Speaker 1: Got a question about convertible debt. How much we own
• 4:26
  Speaker 1: of that, and there's sure we own some. But the
• 4:29
  Speaker 1: equity markets are open, meaning there is an ability to
• 4:32
  Speaker 1: raise capital. The question to me is what does it
• 4:36
  Speaker 1: mean with regard to the phase we are in. And
• 4:39
  Speaker 1: the short answer is, it's possible that it's a short window.
• 4:42
  Speaker 1: It's possible that's a tenure window. It's it's very very
• 4:44
  Speaker 1: difficult to say. We don't see signs of excessive deals.
• 4:49
  Speaker 1: We don't see signs of people getting into the space
• 4:52
  Speaker 1: who who have.
• 4:53
  Speaker 3: No business being in that space.
• 4:55
  Speaker 1: I mean, of course, to something extent that always happens
• 4:56
  Speaker 1: a little bit, but there is, but there is over all,
• 5:01
  Speaker 1: I still feel that this is an early inning, but
• 5:05
  Speaker 1: that's more of a feeling.
• 5:06
  Speaker 3: I don't have a crystal ball either.
• 5:09
  Speaker 4: Well, but look, you've been in this for decades, somebody
• 5:13
  Speaker 4: like you says, I think this is starting to happen,
• 5:16
  Speaker 4: and it's happening now. I think it's incumbent upon everybody
• 5:21
  Speaker 4: who's watching this to say, what does this guy know
• 5:24
  Speaker 4: that we don't know that you don't know? And where
• 5:28
  Speaker 4: do I find out? So this is your gut talking,
• 5:32
  Speaker 4: and this is your expert system with decades of experience.
• 5:36
  Speaker 4: What is the most important factor you think that is
• 5:41
  Speaker 4: pointing to potential upswing in the metals here?
• 5:46
  Speaker 1: No, First of all, it's a little bit more than
• 5:47
  Speaker 1: my gut. I'm on record as an inside of Baya
• 5:50
  Speaker 1: in the mining space, and I haven't sold anything in
• 5:53
  Speaker 1: that space, and so I put my money where my
• 5:56
  Speaker 1: mouth is. Just to clarify that it's not for the
• 5:58
  Speaker 1: faint of heart. I do have to put that caveat
• 6:01
  Speaker 1: out there. It's a very volatile space. My speech is regulated,
• 6:04
  Speaker 1: So I got to add that. When we when we
• 6:06
  Speaker 1: talk about the potential for the for the upside, the
• 6:13
  Speaker 1: I mean we've seen the price of gold was substantially higher.
• 6:17
  Speaker 1: The market is paying much less fond ounce of precious
• 6:20
  Speaker 1: metal in the ground, but of course that means also
• 6:23
  Speaker 1: valuations are in that sense more modest, And of course
• 6:26
  Speaker 1: we've seen a significant move, but in my assessment, nothing
• 6:30
  Speaker 1: compared to where where we would be if the market
• 6:34
  Speaker 1: were to assume that these markets are more permanent the
• 6:37
  Speaker 1: current level. I happen to think that there are plenty
• 6:40
  Speaker 1: of underlying drivers that provide kind of support for where
• 6:45
  Speaker 1: we are subject to shorter volatility. Some of them are
• 6:49
  Speaker 1: the ones I'm trust you have discussed with many of
• 6:51
  Speaker 1: your guests about the deficits and whatnot to make sure
• 6:55
  Speaker 1: I give you your view or something that maybe they
• 6:58
  Speaker 1: don't hear everywhere else. One fact I think that's completely
• 7:02
  Speaker 1: underestimated is the impact on financial flows from teriffs. And
• 7:08
  Speaker 1: let me go to the stupid Trader Joe's or a
• 7:11
  Speaker 1: supermarket example that's like, oh, you have a trade defastate
• 7:14
  Speaker 1: with Trader Joe's. Well, what people don't realize that if
• 7:17
  Speaker 1: you get this trade more into balance, it does affect
• 7:21
  Speaker 1: financial flows as well.
• 7:22
  Speaker 3: And in my.
• 7:23
  Speaker 1: View, the rise in interest rates longer term interest rates
• 7:28
  Speaker 1: in the US in recent months is the direct results
• 7:31
  Speaker 1: of the teriffs, meaning that deficits are less financed from
• 7:34
  Speaker 1: abroad than they previously have been, and that translates to
• 7:39
  Speaker 1: a higher cost of boring and from that lead all
• 7:42
  Speaker 1: kinds of unintended consequences, notably also increased pressure on the
• 7:46
  Speaker 1: federal reserved to lower rates and whatnot. But it's that
• 7:52
  Speaker 1: that sphere of things I think we need to pay
• 7:54
  Speaker 1: attention to. The low long term interest rates could of
• 7:58
  Speaker 1: course also be higher growth attention because of the regulation.
• 8:01
  Speaker 1: But if if I'm correct, then we have to be
• 8:05
  Speaker 1: very careful with regard what we call is exorbitant privilege,
• 8:08
  Speaker 1: which is really the idea that we can borrow and
• 8:11
  Speaker 1: the infinite amount of money very cheaply to invest for
• 8:15
  Speaker 1: higher returns abroad. And so if we throw a wrench
• 8:18
  Speaker 1: into this global system, and not saying they aren't good reasons,
• 8:21
  Speaker 1: maybe from trades should be rebounced, But if we throw
• 8:24
  Speaker 1: a wrench into that system, it does have an impact
• 8:27
  Speaker 1: on financial flows, and I think that is one of
• 8:30
  Speaker 1: the underestimated factors. Beyond that, yes, these these mining companies
• 8:35
  Speaker 1: that are producing are going to be very, very profitable,
• 8:38
  Speaker 1: and unlike another eras we've had that the the overall
• 8:43
  Speaker 1: cost of mining hasn't exploded as much, and it's been
• 8:46
  Speaker 1: it's it's it.
• 8:47
  Speaker 3: We are in a in a much.
• 8:49
  Speaker 1: Better sweet spot, so to speak, than we've been in
• 8:51
  Speaker 1: the past.
• 8:53
  Speaker 4: Yeah, yeah, well, and so we're at record goal prices.
• 8:57
  Speaker 4: You know, I saw a statistic I've new and for
• 9:00
  Speaker 4: years that silver is the only commodity in the past
• 9:04
  Speaker 4: forty years that hasn't made a new high and probably
• 9:08
  Speaker 4: more than forty now. And how much higher can gold go?
• 9:13
  Speaker 4: And how much? How much higher is possible here without
• 9:18
  Speaker 4: some major world disruptions taking place?
• 9:21
  Speaker 1: Well, I won't give you a price target. Let's talk
• 9:25
  Speaker 1: about disruptions though for a moment, of course, different types
• 9:28
  Speaker 1: of disruptions. Historically, I don't like geopolitics as a driver
• 9:34
  Speaker 1: for the price of gold, simply because the market gets
• 9:37
  Speaker 1: used to anyone crisis. Let there be a terrorist attack,
• 9:40
  Speaker 1: the price of gold goes up right and very quickly
• 9:42
  Speaker 1: market used to it, even if that terrorists are taken
• 9:44
  Speaker 1: to might continue. What has changed, though, is that I
• 9:48
  Speaker 1: think we're in a new year in the sense that
• 9:51
  Speaker 1: the peaceful period since World War Two has somewhat come
• 9:55
  Speaker 1: to an end, and you're the financial survival network people
• 9:57
  Speaker 1: to relate to that. But the kind of what we've
• 10:02
  Speaker 1: seen in Ukraine or Gaza are but symptoms of a
• 10:06
  Speaker 1: new era that we live in, and very abstractly, it
• 10:10
  Speaker 1: means that the cost of doing business has gone gone up.
• 10:15
  Speaker 1: Countries will invest the fortune into defense. Germany alone wants
• 10:20
  Speaker 1: to invest the five hundred billion, and in order to
• 10:22
  Speaker 1: get done they have to promise five hundred billion in
• 10:24
  Speaker 1: infrastructure investment. The EU wants to spend much more money.
• 10:29
  Speaker 1: They have different motives because they want to have EU
• 10:31
  Speaker 1: jointly guaranteed debt. But we have an era of more
• 10:37
  Speaker 1: industrial policy to address whatever the governments believe are the
• 10:41
  Speaker 1: important issues of the day. In the US we clearly
• 10:44
  Speaker 1: have shifted also more towards industrialist policy. Those policies cost money,
• 10:49
  Speaker 1: they're expensive, they're inefficient. They may be the right thing
• 10:53
  Speaker 1: for national defense or whatever it may be, but it's
• 10:57
  Speaker 1: not cheap, it's not efficient. The US is no longer
• 11:01
  Speaker 1: the guarano that global trade on global seeds is safe necessarily,
• 11:07
  Speaker 1: and so all of that is a disruption. And in
• 11:10
  Speaker 1: that sense, yes, the there is is less global certainty
• 11:14
  Speaker 1: and it translates to higher cost of doing business. It
• 11:17
  Speaker 1: translates to governments to spending more money, and presumably a
• 11:23
  Speaker 1: lot of that is going to be deficit spending.
• 11:25
  Speaker 4: Right, So continued devaluation of the currencies. You know, how
• 11:31
  Speaker 4: much more can they be devalued before there's a major
• 11:35
  Speaker 4: economic disruption of a loss of confidence in the system
• 11:39
  Speaker 4: here a because we think it can't go it any worse,
• 11:44
  Speaker 4: but you know, technology.
• 11:45
  Speaker 1: Eail, it can always get worse. And that is one
• 11:49
  Speaker 1: of the things, especially to just offend some gold bugs
• 11:53
  Speaker 1: out there, because a lot of folks say, oh my god,
• 11:56
  Speaker 1: there has to be a reset at some point, there
• 11:58
  Speaker 1: has to be this or that there's always a day after.
• 12:02
  Speaker 1: And just look at Latin America, right they You would
• 12:05
  Speaker 1: have thought that some of these countries have done well
• 12:07
  Speaker 1: and then they suddenly there's integrate or whatever it is.
• 12:12
  Speaker 1: There's life is always there is a day after and
• 12:15
  Speaker 1: society adjusts.
• 12:17
  Speaker 3: Just think about it.
• 12:17
  Speaker 1: In the nineteen fifties there was one bread winner in
• 12:20
  Speaker 1: the house and people could have a decent living. Now
• 12:25
  Speaker 1: if you nowadays and if in nowadays you have two
• 12:29
  Speaker 1: bread winners. Similarly, people haven't saved enough for retirement. Well,
• 12:32
  Speaker 1: I guess what if you are sixty seven and have
• 12:36
  Speaker 1: a job. You're proud that you have a job. You're
• 12:39
  Speaker 1: not lamenting twenty four hours. I mean some people might,
• 12:41
  Speaker 1: but most people they take it as a pride that,
• 12:44
  Speaker 1: oh I can still work, I can still be productive.
• 12:46
  Speaker 1: And so we are adjusting to whatever the cards we're
• 12:53
  Speaker 1: dealt with now. It doesn't mean we have to put
• 12:55
  Speaker 1: up with it, and we doesn't mean we have to
• 12:57
  Speaker 1: kind of put up with the erosion of the perchain
• 12:59
  Speaker 1: cower that we have. But I've argued for a long
• 13:03
  Speaker 1: time that kind of the the populist device we've had
• 13:07
  Speaker 1: and including current president, is just the symptom of people
• 13:11
  Speaker 1: being very dissatisfied they've seen an erosion of the perchain power,
• 13:15
  Speaker 1: and they'll lead to more populist politicians, either on the
• 13:18
  Speaker 1: left or the right. Could have a sharp turn to
• 13:21
  Speaker 1: the left after this presidency. It's completely feasible. People are
• 13:24
  Speaker 1: just dis chant. Just look at New York City what's
• 13:26
  Speaker 1: happening there right as an example, and a lot of time,
• 13:31
  Speaker 1: the sort of solutions that are being proposed are more
• 13:35
  Speaker 1: addressing the symptoms rather than the root cause. And say
• 13:39
  Speaker 1: when people say, oh, the government needs to go back
• 13:41
  Speaker 1: to the gold standard, I when the interests of government
• 13:44
  Speaker 1: are not aligned with the interests of investors. I would
• 13:49
  Speaker 1: not hold my breath that that's going to happen. And
• 13:51
  Speaker 1: so investors might want to take care of their own
• 13:54
  Speaker 1: gold standard if that's what they if that's what they
• 13:56
  Speaker 1: believe is the appropriate thing to do.
• 13:59
  Speaker 4: Yeah, there's no desire among the world's governments to reign
• 14:03
  Speaker 4: in the deathicit spending. It's not just the United States.
• 14:07
  Speaker 4: It doesn't have a monopoly on it. It's China, it's Japan,
• 14:11
  Speaker 4: it's every country in the world except maybe Russia. And
• 14:16
  Speaker 4: there's no political will it appears to actually come to
• 14:20
  Speaker 4: terms with this situation. So then what's the endgame?
• 14:24
  Speaker 3: Here? Is the endgame?
• 14:25
  Speaker 4: A new economic system? Is the endgame? A reshuffling of
• 14:31
  Speaker 4: the deck chairs on the Titanic?
• 14:33
  Speaker 3: What is it here? Give us your insights.
• 14:35
  Speaker 1: No, I don't think there's an endgame. It's a process.
• 14:38
  Speaker 1: And one thing people have said I mentioned earlier about
• 14:40
  Speaker 1: the exorbitant privilege and Moody's I think has said, oh,
• 14:45
  Speaker 1: there is no alternative to the dollar, and therefore don't
• 14:48
  Speaker 1: worry about any of these scenarios. My scenario is that
• 14:52
  Speaker 1: that does not need to be an alternative what we
• 14:55
  Speaker 1: will see is that disintegration of global finance. We will
• 15:00
  Speaker 1: see and again it's a quote unquote less efficient way
• 15:03
  Speaker 1: of operating. We will see more patchwork of things. Of course,
• 15:07
  Speaker 1: eventually something may come up. But there's of course a
• 15:10
  Speaker 1: reason beyond I talk about it. I don't like the
• 15:13
  Speaker 1: impact on financial flows and terrorists. There's of course a
• 15:16
  Speaker 1: reason why the US is the growth engine of the
• 15:18
  Speaker 1: world that goes far beyond that, right, and so those
• 15:21
  Speaker 1: advantages will persist. But at the same time, when financial
• 15:27
  Speaker 1: flows are inhibited it it will create more pockets. Ultimately,
• 15:33
  Speaker 1: it is healthier for many economies if they finance themselves domestically.
• 15:37
  Speaker 1: Too many countries are boring in US dollars because it's
• 15:40
  Speaker 1: been cheaper to find out their projects. Part of that
• 15:43
  Speaker 1: is because the domestic markets aren't sufficiently developed, and that's
• 15:47
  Speaker 1: because there'sn't enough trust in these markets because of a
• 15:49
  Speaker 1: lot of reasons. That's not going to change overnight, and
• 15:52
  Speaker 1: I don't think that the Europeans are going to get
• 15:54
  Speaker 1: to act together tomorrow. Quite the opposite. But they can
• 15:57
  Speaker 1: spend They are big, and they can spend a lot
• 15:58
  Speaker 1: of money and say it will be a disintegration Also,
• 16:03
  Speaker 1: what happens along the way, in my view, is that
• 16:06
  Speaker 1: that all dynamics between countries will resurface. I would think
• 16:13
  Speaker 1: we should keep a close eye on what's happening in
• 16:15
  Speaker 1: Turkey and in other places we've seen. I mean a Russia,
• 16:18
  Speaker 1: of all places, is plunging above its waistline. It's a
• 16:20
  Speaker 1: tiny economy, right, and it's controlling a lot of the
• 16:25
  Speaker 1: imagination in the world in what they can do. And
• 16:28
  Speaker 1: they've re engineered the economy that they're kind of dependent
• 16:30
  Speaker 1: on military spending now.
• 16:33
  Speaker 3: So there is And the.
• 16:34
  Speaker 1: Other thing to keep in mind is it's a go at.
• 16:36
  Speaker 1: Endgame is at some point the bond market will tell
• 16:41
  Speaker 1: the government in the US to get the back together.
• 16:44
  Speaker 1: But we'll see a thousand eight remember two thousand and eight.
• 16:48
  Speaker 1: Government can change the rules along the way. So even
• 16:52
  Speaker 1: if I had a crystal ball, or you did, or
• 16:55
  Speaker 1: one of your guests had, we just don't know how
• 16:58
  Speaker 1: exactly it's going to play out, because the rules of
• 17:02
  Speaker 1: the game when the government is cornered will change. And
• 17:06
  Speaker 1: it's enough and address that living within your means, controlling
• 17:12
  Speaker 1: your Yeah, you can live within your means. You can
• 17:15
  Speaker 1: try to reduce or eliminate your debt. You can try
• 17:18
  Speaker 1: to have more income and expenses. I mean, we talk
• 17:22
  Speaker 1: about gold and silver and whatnot. The reason we do that,
• 17:25
  Speaker 1: of course, is because we want to preserve our purpose
• 17:28
  Speaker 1: and power and and and yes, if we get again
• 17:31
  Speaker 1: on top of that, that's fantastic. But that's usually what
• 17:34
  Speaker 1: investment is about, and what whatever people do, it's somewhat
• 17:38
  Speaker 1: related to that, right, I mean, if you buy your
• 17:40
  Speaker 1: favorite in the video.
• 17:41
  Speaker 3: Stock or gold, or or a piece of real estate.
• 17:44
  Speaker 1: And of course we have our reasons why we want
• 17:46
  Speaker 1: to diversify or be concentrated, or why we think one
• 17:48
  Speaker 1: is better than the other. In a in an unstable world,
• 17:53
  Speaker 1: you got to think more about the basics, Right, are
• 17:55
  Speaker 1: your property rights secure and how? And I live in
• 18:00
  Speaker 1: the world where maybe taxes will have to go.
• 18:03
  Speaker 5: Up because at some point in some government has gone
• 18:06
  Speaker 5: that out there and say, well, with high taxes we
• 18:09
  Speaker 5: can solve all the problems out there, which of course
• 18:11
  Speaker 5: is not going to happen, but a lot of damage
• 18:13
  Speaker 5: can be caused along the way.
• 18:14
  Speaker 3: Yeah, yeah, so yeah.
• 18:17
  Speaker 4: I think the first order of business of any organism,
• 18:22
  Speaker 4: living organism and governments and countries are living organisms, and
• 18:27
  Speaker 4: one way of looking at it is survival, keep the
• 18:31
  Speaker 4: game going, and you know they'll do whatever they have
• 18:36
  Speaker 4: to to basically perpetuate their existence at the expense of
• 18:44
  Speaker 4: the country, the world, et cetera. You know, what are
• 18:49
  Speaker 4: some things you think that they're going to try to pull,
• 18:52
  Speaker 4: so we can be a little prepared for it.
• 18:53
  Speaker 1: Axel Well, I think we should study the your zone
• 18:57
  Speaker 1: debt crisis, like what happened in Greece, what happened in Spain,
• 18:59
  Speaker 1: what happened and the sort of politics that go on
• 19:02
  Speaker 1: or in the US right when in September October two
• 19:06
  Speaker 1: thousand and eight, when when the markets brought politicians to
• 19:09
  Speaker 1: their nees and got bail out. The one thing kind
• 19:12
  Speaker 1: of to take this back on a higher level, we
• 19:17
  Speaker 1: live in the credit driven society. We have fracture reserve banking,
• 19:22
  Speaker 1: and you talk about the Federal Reserve worrying about interest
• 19:26
  Speaker 1: rates and unemployment. Well, those are subordinate mandates to the
• 19:30
  Speaker 1: primary mandate, which is financial stability. And we know the
• 19:34
  Speaker 1: playbook of the central bank that they'll for to.
• 19:37
  Speaker 3: Run the way right.
• 19:40
  Speaker 1: They will make liquiding be available to the banking system
• 19:45
  Speaker 1: because that is what keeps the glue together.
• 19:50
  Speaker 3: Indeed.
• 19:51
  Speaker 1: I mean, if you if you want to go in
• 19:52
  Speaker 1: these scenarios in March twenty twenty, when when the pandemic hit,
• 19:58
  Speaker 1: you might recall your viewers might recall we had this
• 20:00
  Speaker 1: one day when the market's absolutely crashed. The one thing
• 20:04
  Speaker 1: that happened overnight that night was that the currency markets
• 20:09
  Speaker 1: got unhinged. There were spreads of five six percent in
• 20:13
  Speaker 1: major currencies. And the reason that happened is because the
• 20:16
  Speaker 1: folks that the Federal Reserve were sleeping. It was nighttime,
• 20:18
  Speaker 1: it was past midnight, and it was further a wave
• 20:22
  Speaker 1: of a shark. And and and yes, I mean if
• 20:24
  Speaker 1: they if they were wake, they would have they would
• 20:26
  Speaker 1: have done something. And it was just stunning to watch.
• 20:30
  Speaker 1: I mean there if you ever saw markets completely falling
• 20:32
  Speaker 1: apart for about two or three hours, that was the
• 20:35
  Speaker 1: case there before they they kind of put Humpty dumpty
• 20:37
  Speaker 1: back together. But that's the that's kind of the idea
• 20:41
  Speaker 1: that there's there's a certain risk or just fast forward, right,
• 20:45
  Speaker 1: I mean, the reason what happened in in Iran there
• 20:50
  Speaker 1: was attack on the on the central bank and causing
• 20:54
  Speaker 1: a financial panic induced by by the idea and what
• 21:03
  Speaker 1: if something like that work to happen in the US right,
• 21:06
  Speaker 1: And of course we think we are called more sophisticated
• 21:10
  Speaker 1: and better in this and that, But it's it's it's
• 21:14
  Speaker 1: always interesting as to kind of can you imagine scenarios
• 21:18
  Speaker 1: that could happen? Sure, I mean anything can happen. Diversification
• 21:24
  Speaker 1: is the name of the game. You can't safeguard against
• 21:29
  Speaker 1: any possible scenario. You also have to assign some probabilities
• 21:33
  Speaker 1: to it. Now I happen to put more weight on
• 21:37
  Speaker 1: kind of high risk, low probability events. But everybody needs
• 21:40
  Speaker 1: to be so comfortable with what they do. And one
• 21:43
  Speaker 1: thing I tell people, ultimately, if they invest in themselves,
• 21:45
  Speaker 1: that's probably the best investment they can do, because you
• 21:48
  Speaker 1: are fixed income generating machine that you have a much
• 21:51
  Speaker 1: better control of than whether you buy a stock with
• 21:54
  Speaker 1: a click off a button.
• 21:55
  Speaker 4: Agreed, Agreed. Rick Rules said the same thing. I've said
• 21:58
  Speaker 4: the same thing for many years because from personal experience,
• 22:02
  Speaker 4: every time I've invested in myself, better tools, better knowledge,
• 22:08
  Speaker 4: it's always paid dividends. It used to be when I
• 22:11
  Speaker 4: was in business, every time I upgraded my computer, it
• 22:15
  Speaker 4: made money for me. I had no idea how it worked.
• 22:18
  Speaker 4: I just knew that updating it, whether it saved me
• 22:22
  Speaker 4: two minutes of waiting around every day and I did
• 22:24
  Speaker 4: something more productive. I don't know why, but that upgrading
• 22:28
  Speaker 4: and better tools for yourself and in human capital increased
• 22:33
  Speaker 4: knowledge is always going to pay better returns than anything
• 22:38
  Speaker 4: else you can do out there.
• 22:39
  Speaker 1: No, absolutely, it's a it's a if you're thinking about
• 22:43
  Speaker 1: doomsday scenarios, investing in yourself.
• 22:45
  Speaker 3: Is probably the best thing that you can do.
• 22:48
  Speaker 1: And that I can say without my regulator slapping my wrist.
• 22:52
  Speaker 4: Yeah, yeah, nobody can take issue with that one, that's
• 22:56
  Speaker 4: for sure.
• 22:56
  Speaker 3: All right.
• 22:57
  Speaker 4: So, Axel, where's the best place to find you? To
• 23:00
  Speaker 4: read your work? To connect with you on the web?
• 23:02
  Speaker 1: Back Investments dot Com is our website. There you can
• 23:05
  Speaker 1: see what we do in the gold and gold mining site.
• 23:07
  Speaker 1: We have a free newsletter. We periodically have webinars on
• 23:09
  Speaker 1: gold miners and whatnot. Follow me on Twitter at Axelmerk
• 23:14
  Speaker 1: is my handle there imus about what's happening in the world,
• 23:18
  Speaker 1: off the Federal Reserve, in the precious metal space and whatnot.
• 23:21
  Speaker 1: I can't talk about products on social media, but otherwise
• 23:24
  Speaker 1: I'm quite accessible, all right.
• 23:26
  Speaker 4: Hey, Well, appreciate if you've got a question out there
• 23:28
  Speaker 4: for Axel or myself. Just shoot me an email Klatkerrie
• 23:32
  Speaker 4: Lutz dot com. We'll get your quick response back and
• 23:36
  Speaker 4: you'll find a link to accel site in the show
• 23:40
  Speaker 4: notes of this interview on Financial Survival Network dot com.
• 23:44
  Speaker 4: If you visit, we just ask that you sign up
• 23:46
  Speaker 4: for a free newsletter. Axel always always intellectually stimulating experience.
• 23:52
  Speaker 4: When we talk, you make me think about things that
• 23:54
  Speaker 4: I might not have otherwise thought about, so we won't
• 23:57
  Speaker 4: let as much time go by till next time.
• 24:00
  Speaker 3: I appreciate you coming on my pleasure.
• 24:02
  Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 24:06
  Speaker 2: solution to today's trying times. For the latest, go to
• 24:10
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network
• 24:15
  Speaker 3: Now more than ever