Latest / SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT / Silver & Gold Price Already Know... What Jerome Powell SAID 🔔

Transcript

Silver & Gold Price Already Know... What Jerome Powell SAID 🔔 · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

• 0:00
  Are we in a state of emergency? Silver and gold investors?
• 0:04
  Do we need to be on high alert? What did we hear from Jerome
• 0:09
  Powell himself on Sunday in a 60 Minutes interview that should
• 0:14
  have all of us shaking in our boots?
• 0:18
  What about a big scary warning from the Chinese government
• 0:22
  about what is going on in the Middle East?
• 0:24
  We're going to cover all of that in this video because it all
• 0:28
  affects the price of silver and gold.
• 0:31
  So thank you for joining us today.
• 0:32
  Please give this a thumbs up. Don't forget to subscribe to the
• 0:35
  channel. And thank you in advance for any
• 0:38
  super chance or super. Thanks.
• 0:40
  Much much appreciated. So we've been talking about the
• 0:44
  Fed a lot lately because the Fed is like taking over in terms of
• 0:49
  public relations and managing expectations and really having a
• 0:53
  big impact on the silver price and gold price.
• 0:57
  And while we're at it, let's take a quick look, here it is
• 1:00
  Tuesday morning. Let's just look at the gold
• 1:02
  price. When I was talking with Chris
• 1:04
  Marcus this morning, he commented and I feel the same
• 1:08
  way. Gold is hanging strong and gold
• 1:11
  is the Big Brother of the precious metals right now
• 1:14
  trading it on the spot market $2035 per oz.
• 1:19
  So we keep thinking like, oh, it's so tough in the precious
• 1:22
  metals world. And it is a lot tougher with
• 1:26
  physical silver, which is right now 2238, up $0.08 per oz and in
• 1:32
  particular with the precious metal mining stocks, but really
• 1:36
  the big granddaddy of them all right, the gold price.
• 1:40
  That will dictate where the precious metal stocks go.
• 1:43
  The gold price will will. We may not like it, but it will
• 1:48
  impact where the silver price goes.
• 1:50
  The gold price is doing pretty darn well.
• 1:52
  We can't forget about that. But who has more sway over the
• 1:57
  price, at least for now, than anyone?
• 2:00
  Yes, the Federal Reserve and what we heard from Jerome Powell
• 2:04
  on Sunday is downright scary. Let me read a few of these
• 2:09
  highlights to you. This is from Fortune magazine.
• 2:13
  It says after Jamie Dimon warns of a market rebellion against
• 2:17
  the 34 trillion national debt feds.
• 2:21
  Jerome Powell says it's quote past time for an adult
• 2:25
  conversation about unsustainable fiscal policy.
• 2:30
  Guys, we are headed toward, we are barreling toward a very,
• 2:34
  very unfavorable financial, monetary, economic situation in
• 2:40
  this country. And now even Jerome Powell is
• 2:44
  issuing stark warning, very open right, which is very unusual.
• 2:50
  Let's listen to what else he said, he said.
• 2:53
  Well, it says here a few expected Federal Reserve
• 2:56
  Chairman Jerome Powell to address the issue of the debt,
• 3:00
  at least until this weekend. Something changed.
• 3:04
  When Powell spoke out about the debt on CB S S 60 Minutes on
• 3:09
  Sunday, he said, quote, in the long run, the United States is
• 3:13
  on an unsustainable fiscal path. Yes, that means the fact that
• 3:18
  our government has spent $2 trillion more than it brought in
• 3:22
  over the last 12 months, that's not sustainable.
• 3:25
  That's not a good thing. And again, I won't, I won't
• 3:29
  bring up Chris Marcus again. But we talked about this this
• 3:31
  morning. Our government spent $2 trillion
• 3:35
  more than it brought in and all we could squeeze out was a
• 3:39
  measly 2 or 3% GDP growth. What do you think about that?
• 3:44
  But there's more. OK.
• 3:47
  Paul says this now. This means it's now, quote, past
• 3:51
  time to get back to an adult conversation, like you and I are
• 3:56
  having right now among elected officials about getting the
• 4:00
  federal government back on a sustainable fiscal path.
• 4:04
  Powell argued that on Sunday, OK, borrowing from future
• 4:09
  generations, it's rare to see a Fed official discuss politics.
• 4:14
  Powell said it himself. He said we mostly tried very
• 4:17
  hard not to comment on fiscal policy and instruct Congress on
• 4:22
  how to do their job when actually Congress supposedly has
• 4:26
  oversight over the Fed. But almost immediately after he
• 4:30
  said that, he criticized lawmakers for, quote,
• 4:33
  effectively borrowing from future generations.
• 4:38
  Paul said that borrowing from future generations with their,
• 4:43
  quote, unsustainable policies. He says, quote, it's time for us
• 4:48
  to get back to putting a priority on fiscal
• 4:51
  sustainability. This is the head of the Federal
• 4:54
  Reserve. Guys, take a step back and think
• 4:56
  about this. He's basically saying that
• 4:59
  fiscally, the United States is up a Creek without a paddle.
• 5:03
  We're going to say that in a politically acceptable, family
• 5:07
  friendly way that we are in big, big, big trouble, OK?
• 5:12
  Fed Chair Powell joins a number of fiscal of a number of critics
• 5:17
  of fiscal policy in the surging national debt, including our old
• 5:22
  friend from JP Morgan Chase, Jamie Dimon.
• 5:26
  OK, he warned last month that the US economy is headed for a
• 5:32
  Cliff if something isn't done to address the federal government's
• 5:37
  excessive debt burden. He said, quote, we see the
• 5:41
  Cliff. It's about 10 years out and
• 5:44
  we're going 60 miles an hour, headed straight at it.
• 5:49
  That's Jamie Dimon, OK? The head of the biggest
• 5:53
  financial institution in this country, probably the most
• 5:56
  powerful. That's Jerome Powell, the head
• 5:59
  of the most powerful financial institution.
• 6:02
  We're not fans. They're both saying that we're
• 6:05
  headed toward absolute financial doom, OK?
• 6:10
  That's what they're saying. Jamie Dimon saying 10 years,
• 6:14
  right? Jerome Powell didn't put a time
• 6:15
  frame on it. He just said it's becoming
• 6:18
  basically an emergency situation.
• 6:21
  Other Wall Street heavyweights have been criticizing the rising
• 6:26
  federal deficits for years. Mark Spitzgenagle, founder and
• 6:30
  chief investment officer of a a private hedge fund, Universa
• 6:34
  Investments, told Fortune last year.
• 6:36
  That we are living through, quote, the greatest credit
• 6:40
  bubble in human history, guys. We are living in a fantasy
• 6:44
  world. We are living in a Unicorn fart
• 6:47
  dust lollipops and unicorns. Everything's wonderful, right?
• 6:52
  Everything's fake, right? The money is fake.
• 6:56
  Why do you think? Why?
• 6:58
  Let me ask you a question. Why do you think that the
• 7:01
  Federal Reserve has had to become nothing more than a like,
• 7:05
  very sophisticated public relations firm?
• 7:09
  I'll tell you why. OK?
• 7:11
  It's real simple and it's not pleasant.
• 7:14
  Because what they're supporting is fake.
• 7:16
  And when things are fake, when things are are not real, they
• 7:20
  need to be. The message needs to be be
• 7:23
  conveyed to the public over and over and over and over again.
• 7:28
  If their money was still backed by silver and gold, if we
• 7:31
  wouldn't even know who the Fed governors are, we probably
• 7:34
  wouldn't even know who the Fed president is.
• 7:36
  Like, yeah, there's this thing called the Fed, you know,
• 7:37
  whatever, right? They couldn't print money.
• 7:40
  They couldn't do all this monetary magic mirage that
• 7:44
  they've been doing. the Fed Fun House, whatever you want to call
• 7:46
  it. It's an absolute joke here.
• 7:49
  Look at this. You know what the biggest news
• 7:51
  of the day is, huh? You want to know what the
• 7:53
  biggest news of today that affects the markets right here?
• 7:57
  Tuesday, February 6th, Okay at noon, Cleveland Fed President
• 8:02
  Loretta Mester speaks. At 1:00 PM, Minneapolis Fed
• 8:05
  President Neil Kakari speaks. At 2:00 PM, Boston Fed President
• 8:10
  Susan Collins speaks. And at 7:00 PM tonight, because
• 8:14
  they got to spread these things out, Philadelphia Fed President
• 8:18
  Patrick Harker speaks. That's the biggest, right, Those
• 8:21
  four. That's the biggest economic.
• 8:23
  I mean, are you kidding me? This week we have 12 Fed
• 8:27
  speakers. That's the pink highlights that
• 8:29
  you see there. What is that telling us?
• 8:32
  That it's become nothing more than a public relations clown
• 8:37
  show to try to convince the everybody that what they're
• 8:41
  dealing with is real money when we know it's not real money.
• 8:44
  If it was real money, they wouldn't be.
• 8:47
  They wouldn't need to be out there doing this massive public
• 8:52
  relations work to try to support the money.
• 8:56
  OK, OK, this guy, what was his name?
• 9:00
  Mark Spicenagel, who said we're in the greatest credit bubble in
• 9:05
  human history. He also said quote and that's
• 9:10
  not my opinion, that's just the numbers.
• 9:14
  Now don't we talk about that on a regular basis basis.
• 9:17
  Basement dwellers, right. You know mathematics.
• 9:21
  What he basically said there is mathematics show no forgiveness
• 9:26
  on the altar of truth that not even God can change the fact
• 9:30
  that 2 + 2 = 4. Thank you Mr. Spitznagel for
• 9:34
  telling us to the truth. He said, quote, there is no
• 9:38
  question about the fact that we are living in an age of
• 9:42
  leverage, an age of credit, and it will have consequences.
• 9:48
  Ray Dalio, we talk about him a lot, right?
• 9:50
  Everybody knows, you know, Warren Buffett, right?
• 9:53
  Charlie Munger, who I think just passed away.
• 9:55
  I kind of like Charlie Munger, Bill Gates, Elon Musk.
• 9:59
  Ray Dalio was like ran the most successful, biggest hedge fund
• 10:03
  started at Black. Now Bridgewater Associates, he's
• 10:07
  been very vocal about this issue.
• 10:09
  Listen to what he had to say, he said in December.
• 10:11
  He argued that the US government is reaching an inflection point.
• 10:16
  That means a pivot point. That means a point.
• 10:19
  Where would you go past the point of no return with its debt
• 10:23
  problem? Eventually the government will
• 10:25
  have to borrow just to make its annual debt service payments,
• 10:31
  and that's a recipe recipe for a debt crisis.
• 10:34
  That's according to Dalio. Now there is good news because
• 10:39
  supposedly our old friend Janet Yellen.
• 10:45
  Janet Yellen is still walking around telling everybody
• 10:47
  everything will be OK because she looks at some interest
• 10:51
  component and how it relates to whatever.
• 10:54
  No, it's not OK. It is not a tenable situation
• 10:58
  and it's not a situation. Thank you, Metal sear.
• 11:02
  Wow. When we had one trillion in
• 11:03
  debt, that dollar was worth a nickel in 1900 dollars.
• 11:08
  What's it worth now, now that we have 34 trillion in debt?
• 11:11
  Do the math. Yeah, right.
• 11:13
  Exactly. The more debt, the debt is just
• 11:16
  dilutive to the US dollar makes the dollar worth less.
• 11:20
  Not worthless. Worthless on its road to being
• 11:24
  worthless. Don't forget that since 1971,
• 11:27
  right, the value of the dollar compared to gold has lost 98% of
• 11:33
  its purchasing power. What does that tell us?
• 11:36
  We got a lot more to cover here. I got a message from one of the
• 11:39
  viewers, Mr. Timothy Zoob himself, and then we'll stop
• 11:42
  talking about the Fed. We're going to talk about what I
• 11:45
  heard Keith Newmeyer say last night about Silver that I
• 11:48
  thought was very, very interesting.
• 11:50
  But let's go to quickly what Mr. Zoob had to say about the debt.
• 12:00
  This is from the Powell interview.
• 12:03
  And according to Mr. Zoob, he thinks this part was actually
• 12:06
  not published during the interview, which is very
• 12:10
  interesting. OK, he says.
• 12:11
  I think it was very clear that Powell is well aware of that
• 12:15
  little box you have him in. Yeah, Here, let's all say hi to
• 12:20
  Jerome Powell. Hello, Jerome.
• 12:23
  We understand you're worried about the national debt.
• 12:25
  Well, we are too, my friend anyway, And he's trying to do
• 12:31
  the right thing here, but knows it will slip away at some point.
• 12:35
  So the the interviewer asked Paul, this.
• 12:39
  I have the sense that this worries you very much, Jerome.
• 12:43
  And Jerome said yes, over the long run, of course it does.
• 12:46
  You know, we're effectively, we're borrowing from future
• 12:48
  generations and every generation really should pay for the things
• 12:53
  that it that it needs. It can cause the federal
• 12:57
  government to buy things that it needs for it, but it really
• 12:59
  should pay for those things and not hand the bills to our
• 13:03
  children and grandchildren. Yes, Jerome, I think this is
• 13:09
  again not controversial, but it's difficult from a political
• 13:14
  standpoint. It's not our business really,
• 13:17
  but I do think it's pretty widely understood that it's time
• 13:21
  for us to get back putting a priority on fiscal
• 13:26
  sustainability and Sooners better than later.
• 13:31
  The the the interviewer asked Powell what is this urgent.
• 13:35
  And Powell said you could say that it was urgent.
• 13:38
  Yes. OK.
• 13:41
  I don't know guys. Right.
• 13:43
  We got the Fed, right? Worried. the Fed who kind of
• 13:47
  created this problem now saying, hey, we got a big, big, big
• 13:51
  problem. What does that mean for your
• 13:53
  silver? What does that mean for your
• 13:55
  gold? I'll tell you what, no matter
• 13:56
  what they say, I know over the last three years, silver hasn't
• 13:59
  gone up in value. I know gold has done a little
• 14:02
  bit better. I know precious metal mining
• 14:03
  stocks have gotten killed. At the end of the day, when all
• 14:07
  the hens come home to roost, what it means is much higher
• 14:12
  prices and real value for your precious metals.
• 14:22
  All right, let's move on. China issues a big warning in
• 14:27
  response to US strikes in Iraq and Syria.
• 14:31
  China's Foreign Ministry spokesperson Wang Win Ben said
• 14:36
  that China opposes any actions that violate the UN Charter in a
• 14:40
  fringe upon the territorial sovereignty and security of
• 14:43
  other countries. The current situation in the
• 14:46
  Middle East is highly complex and sensitive, says China.
• 14:50
  China urges all parties involved to abide by international law.
• 14:56
  So it sounds like China is accusing the United States and
• 15:00
  our allies of breaking international law, maintain calm
• 15:04
  and restraint, and avoid further escalation or even loss of
• 15:09
  control of the regional tension That was the official statement
• 15:15
  we got from China regarding what's going on in the Red Sea.
• 15:18
  Thus, as we get news that Houthi rebels fired missiles at two
• 15:24
  ships in the Red Sea and the crisis continues to rage on,
• 15:29
  what does that mean for silver and gold?
• 15:31
  We don't like war, we don't like violence, We don't want gold and
• 15:35
  silver to go up on the back of violence and and all of the bad
• 15:41
  things that come out of war. But we are realist and we have
• 15:46
  to recognize what's going on. And one thing we know for sure,
• 15:50
  that geopolitical tension war is an extremely supportive factor
• 15:55
  for the precious metals. We've got more countries de
• 15:58
  dollarizing the BRICS. Brazil, Russia, India, China,
• 16:01
  South Africa, Iran, Iran. What's the S darn it, How can I
• 16:10
  forget that? Saudi Arabia, Egypt, Ethiopia
• 16:13
  and the United Arab Emirates. Now we get news that even Iraq
• 16:19
  has has has like outlawed the use of U.S. dollars at some of
• 16:23
  their big banks. The world.
• 16:27
  Excuse me, Thank you Metal sear again for that super chat.
• 16:30
  Sorry guys, I'm still fighting off a horrible cold, so I have
• 16:33
  to cough from time to time. But now even Iraq, who we like,
• 16:38
  didn't we conquer that country two or three times?
• 16:41
  None the less, they're like outlawing the use of U.S.
• 16:45
  dollars at some of their big several of their big national
• 16:48
  banks. The world is de dollarizing.
• 16:50
  What does that mean for your silver and gold?
• 16:56
  Well, as the world de dollarizes and all those dollars come back
• 16:59
  to the United States of America, right, that's going to cause
• 17:04
  more and more inflation. I am still predicting that we
• 17:07
  will see a big wave of inflation later in this year and that when
• 17:13
  we do, we will see people in the United States not not wake up.
• 17:19
  That's a bad term. Become reinvigorated with their
• 17:21
  zeal to collect precious metals. Because there's a lot of people
• 17:25
  out there that just experienced inflation for the first time as
• 17:29
  adults. That includes me.
• 17:31
  I'm 53 years old. I remember inflation in the 70s
• 17:34
  and 80s a little bit, but I didn't really care.
• 17:37
  I was buying, you know, Slurpees and bubblegum.
• 17:40
  It didn't really impact me. But now as adults, everybody, I,
• 17:44
  everybody I talk to. Do you experience this?
• 17:46
  People I work with, my neighbors.
• 17:48
  Everybody's like, Oh my God, everything's more expensive.
• 17:51
  I was talking to my good neighbor, Mr. D Mr. D Mr. D is
• 17:57
  in the house and he was telling me on Saturday we were watching
• 18:00
  a basketball game of our daughters.
• 18:02
  And he was like, we went out to dinner last night and for the
• 18:05
  family of four, and it was a nice place, but not like super
• 18:08
  fancy. It's like it was 130 bucks.
• 18:11
  I'm like, I know that's why I don't go out to eat, you know, I
• 18:14
  mean, I consider if we go to McDonald's and we get the crispy
• 18:19
  chicken sandwiches that that's a big night out.
• 18:21
  I mean, it's crazy. Anyway, all these people like me
• 18:26
  and maybe you. Right.
• 18:27
  We've just experienced our first wave of inflation.
• 18:30
  Now, if that second wave hits, a lot of those people are going to
• 18:33
  be like, you know what? No, no, no, no, no.
• 18:35
  I've been through this before. I need to do something and
• 18:39
  they'll go to Costco and buy American Silver Eagles and gold
• 18:42
  coins and all that. It'll be interesting.
• 18:44
  It will be definitely supportive for the precious metal price is
• 18:49
  Keith Newmayer, right? My friend.
• 18:53
  I've really only interviewed him one time.
• 18:55
  So he's not my friend. If you ask Keith Newmayer or you
• 18:57
  Ron, he, I think he likes me and I like Keith.
• 19:00
  We had a great conversation. I will look forward to future
• 19:03
  conversations with Keith Newmayer.
• 19:05
  But he's like, I call him the Crown Prince of Silver, OK?
• 19:08
  He's a smart guy. He's a warrior for the silver
• 19:12
  community. He's a believer in silver.
• 19:14
  He's a believer in facts, you know, and I was listening to an
• 19:18
  interview he did last night. Let me just run through this,
• 19:21
  OK. He said that.
• 19:23
  He said that he thinks there's about a billion ounces of silver
• 19:26
  right now above ground, right, that we can measure at the
• 19:29
  Comex, LBMA, different storehouses, all that good stuff
• 19:34
  production has. Remember he's the CEO of of
• 19:37
  First Majestic Silver production has flatlined.
• 19:41
  Thank you, metal sear. Did you give us another?
• 19:44
  Well, Alessair. OK, let me read that in a
• 19:45
  second. Alessair McLeod.
• 19:47
  I'll read it right now. Silver seems to me to be a
• 19:51
  fairly rigged market. He was using one meaning of the
• 19:55
  word fairly, but it. But it's unfairly.
• 19:59
  Yeah, he meant fairly, like like reasonably or not reasonably.
• 20:03
  But you know, not like you're saying.
• 20:05
  Yeah, it's not fairly. It's it's unfairly manipulated.
• 20:10
  But that could change in our favor if the path of least
• 20:14
  resistance goes to the upside. Don't forget that metal sear.
• 20:18
  Don't forget, too, that when the number of silver stackers goes
• 20:21
  from one in 200 to 5 and 200, we're going to have five times
• 20:26
  as many people buying silver, just like we had eleven months
• 20:29
  ago during that little banking crisis.
• 20:30
  And don't forget, even the existing silver investors who
• 20:34
  haven't been buying a lot, when it does start to move, they'll
• 20:38
  be buying more and more because silver investors, they don't
• 20:40
  like to buy silver when it's on sale.
• 20:42
  They like to buy it when the price and premiums are going up.
• 20:45
  So it could be very, very interesting and we could be in a
• 20:49
  situation where the price gets manipulated but manipulated to
• 20:54
  the to the upside. Keith Neumeier pointed out that
• 20:57
  billion ounces of silver, right, but that we're only producing
• 21:01
  about 808 hundred and 50 million per year.
• 21:05
  And that number's going down. Chris Marcus and I talked about
• 21:08
  that this morning, right? Like there's like so little
• 21:10
  money in the silver sector, no discoveries, no exploration, no
• 21:15
  development going on, OK. Grades are dropping.
• 21:20
  That's very important to consider.
• 21:23
  The grades that the mines are digging up or dropping, costs
• 21:26
  are up. All this easy.
• 21:29
  Silver is gone. Especially, I think it's called
• 21:31
  that oxide layer, that top layer all gone.
• 21:35
  OK, it's very hard to find silver, OK.
• 21:39
  Right now the silver to gold ratio sits at only, what, 90 to
• 21:43
  one? Maybe we're rounding up a little
• 21:45
  bit. It's at least 888790 to 1:00.
• 21:49
  There's only, though, 7 ounces of silver dug up for each one.
• 21:53
  Keith, right? We know that he thinks there
• 21:55
  could be 1.21 point, 4 billion ounces of demand this year.
• 22:01
  And when it comes to the electrification of the planet,
• 22:07
  copper is the highway, but silver is the glue.
• 22:11
  Silver is being used increasingly more and more in
• 22:15
  everything electronic. Did you hear the big news?
• 22:18
  There's silver in solar panels. There's silver in your cell
• 22:21
  phone. You're looking at right now,
• 22:23
  silver in your computer. You're looking at there's silver
• 22:26
  in your TV. There's silver in your
• 22:28
  refrigerator. There's silver in your car.
• 22:30
  There might even be some silver on your body, right?
• 22:33
  If you have a silver, I mean, silver.
• 22:35
  Silver is everywhere and will continue to be everywhere.
• 22:40
  Thank you to the moderators who showed up right at the last
• 22:43
  minute here. This was a crazy morning.
• 22:46
  I won't go on, but I do appreciate you guys joining at
• 22:50
  the at the drop of a hat, so please type. 88 is great for
• 22:55
  those that moderate. And we've got a great moderator
• 22:58
  team here in Ron's basement. Please give this a thumbs up.
• 23:01
  Well, I gotta ring the bell. Hold on.
• 23:10
  Thank you to all you guys for being here.
• 23:12
  OK. I appreciate the Super chance.
• 23:15
  I appreciate you subscribing. And I'll see you tomorrow.
• 23:19
  Bye. Bye.