Latest / SILVER / GOLD / $UFD Meme Coin Investing & Global Economics / Silver and Gold's Inevitable Return as MONEY - Jim Forsythe

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Silver and Gold's Inevitable Return as MONEY - Jim Forsythe · SILVER / GOLD / $UFD Meme Coin Investing & Global Economics

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  You know for those that don't understand this and that you
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  know they're they've got their dollar and the all their money
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  in the bank account you know versus in gold and silver.
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  I think it's going to be rough for some people.
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  But that's the whole goal of C4 SM is to try and encourage
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  people to use sound money. Now you know before the dollar
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  has a big crisis and that that includes states working at the
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  state level to get the states adopting sound money at the
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  state level so that you know if if the dollar collapses or when,
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  depending on how. How.
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  I think it's a matter of when, but maybe it's if then you know
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  the States and the people will be there to pick up the pieces.
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  Are we headed towards a reemergence of silver and gold
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  used as money? The world is changing like never
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  before, and today we're fortunate to be joined by Mr.
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  Jim Forsyth. He's with the Citizens for sound
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  money. Jim's a former Air Force pilot,
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  a former New Hampshire State senator, and he does a lot
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  within the silver and gold community.
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  We're going to cover everything with Jim.
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  Welcome to Ron's Basement. Thanks for having me, really
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  appreciate being here. So Jim, when you when you look
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  out at what's going on in the world right now, would you agree
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  that we're going through a period of change that most of
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  us, you, me and our viewer who's joining us today, a period of
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  change like like we haven't experienced during our
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  lifetimes? Yeah, definitely during our
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  lifetimes. But it has been experienced
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  throughout history. And so, yeah, you were talking
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  to Intro about, you know, gold and silver becoming money again
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  and you know, it seems like it could happen.
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  I think it's inevitable. I mean if you look at history,
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  Fiat has been tried over and over again.
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  It always fails, usually 30 to 50 years.
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  What's unique about the situation we're in though is
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  that for the for the first time ever, there's a world reserve
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  currency that is Fiat and and therefore every other currency
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  is backed by that currency. And so every, every currency in
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  the world is now Fiat. So that that's what's going to
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  make this like a bigger event than we've seen in our lifetime
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  or even in history is is that fact.
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  Is it is it a situation where we can say, you know, the cream
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  rises to the top? And I know there's this, this
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  concept or theory of Gresham's Law?
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  Do you? Do you?
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  Sometimes, you know, a lot of people don't agree with me on
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  this, but I I in my heart almost feel like, you know, silver and
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  gold have have always been there even, you know, post 1971 when
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  Nixon took us off the gold standard.
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  I mean I'll set forth the argument and I think it can be
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  argued that that maybe the world never really went off the gold
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  standard. But what we're seeing now is a
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  re emergence. Does that does that make sense?
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  Yeah, no, that's that's 100% not true.
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  I, I, I read this article that talked about when we went off
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  the gold standard, the common prediction by economist was
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  gold's being demonetized. Therefore the price is going to
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  drop. It's going to go to 0 or it's
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  going to go way down. And instead it the price rose.
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  You know because of the lack of confidence in the Fiat
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  currencies the price has actually gone up and it's yeah,
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  it never stopped being money and and you know people say people
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  these days think that the government decides what money
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  is. They don't.
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  The people decide what's money is.
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  And the people when we went off the gold standard decided gold
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  was still money. Now that being said, it became
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  instead of becoming money as in currency that you're spending,
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  you know, at the store, it became money as in savings and
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  and so then we switched to kind of this stacker mentality of
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  let's save up gold and silver, you know and you know until
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  until things collapse or to protect us against devaluing
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  Fiat and you know the the smart people did that.
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  They held gold and silver versus Fiat and you know, the, I forget
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  maybe it's Mike Maloney talks about, you know, the mistake a
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  lot of people make is yes, so the dollar, you can spend the
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  dollar everywhere and that's great.
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  But that doesn't mean you save in that currency.
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  You know, you get it. It it's a currency versus money.
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  It's it's, you know, something that can be transacted with, but
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  it doesn't have that store of value.
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  And so you know instead you should be saving with gold and
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  silver and then converting is necessary to buy with dollars.
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  And and it's exciting now because now that can be done
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  very simply and with very low friction through asset backed
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  digital currencies where you have gold or you have a a token
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  that's backed by gold. And then you can swipe your
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  debit card, have it sell a little bit of gold, switch
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  dollars and make that transaction with very low
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  spreads, very low friction, very low fees.
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  Very, very, very interesting. But Jim, I don't know what
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  you're talking about, about the dollar not holding its value.
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  I think I read yesterday that since 1971, when you compare the
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  dollar to gold, the dollar's only lost like 98% of its value.
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  Yeah, only 98% that's you know that that's let's see so 71, I
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  mean a lot of that happened within the next 10 or 20 years
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  right after 70 or you look at COVID and that was about a 40%
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  hit in one year printed 40% more dollars and surprise, surprise
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  the the you know price inflation rose by 40% as well.
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  So I mean think of, you know, anybody that held a stock that
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  lost 40% in a year would be panicked most generally, you
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  know, most most people would be. And and that that's one of the
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  big tragedies is, you know, so one of the ways you can protect
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  yourself is not just buying gold and silver, but you know, buying
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  stock stocks, you know that that can kind of make up for
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  inflation. And so the people that have
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  wealth and have it in the stock market have or have it in gold
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  and silver, have have gotten richer and richer and richer as
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  this has happened. Whereas the people without a
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  bunch of assets like that, you know, have really suffered
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  because, you know, their wages don't go up, they don't keep
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  pace with inflation and so they get poorer and poorer.
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  So we've seen this massive erosion in the middle class and
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  that's that's the Cantalon effect where, you know, the
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  wealthy people get the newly printed dollars first and don't
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  pay the price that the poor people do.
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  Yeah. You know, Jim, you're definitely
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  the smartest guy on this interview right now.
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  So I I want to ask you a few more questions and on behalf of
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  our viewer who's joining us. Thank you.
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  But I I want to get your opinion on this.
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  We talked about how since 1971 the dollars lost 98% of its
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  value. I think it's safe to say that
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  that 50 year period from 1971 till 2021, those were the best
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  of times for the United States. We you know we're coming off
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  having won in World War 2. We won the Cold War, we were the
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  world's hegemony power, right. We kind of dominated the world
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  in many ways. Those were the best of times.
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  Does it scare you at all to think that during the best of
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  times, the dollar lost 98% of its value relative relative to
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  gold? But now as we look at the next
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  50 years and look what our children and grandchildren are
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  gonna be heading into that it could be kind of a scary
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  situation. I'm not don't want to be a doom
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  and gloomer, but but as we look and try to assess the risk, it
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  feels like we could be heading into decades, that could be much
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  more challenging for us. So I I would flip that around
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  actually. When you say, you know, post 70s
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  were the best of times, I'd say post World War 2 probably.
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  That's when we saw we were still on a gold standard, although you
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  know we're we're fractional reserve was getting driven up.
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  But you know, there's this common wisdom that, you know,
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  the way the way you get full employment as the government
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  hires, people will think, think about the number of people that
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  were laid off from government service coming back from World
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  War 2 and the economy just boomed.
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  You know, when that drawdown of government spending happened and
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  the increase in the private sector happened, our economy
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  really, really boomed. And that's that's how we gained
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  the stature of being the world reserve currency.
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  So post 70s you could say. I wouldn't say it was the best
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  of times. I would say the US was at its
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  most powerful on on world stage. But that didn't help Americans,
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  You know, having being involved in you know, the Cold War and
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  having people overseas, you know, Vietnam War, all this
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  stuff didn't didn't make us stronger, didn't make us more
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  wealthy. So I I kind of flipped that
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  around saying that like the post war, War Two period was really
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  the the big economic boom and then once we went up the dollar
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  standard things have been pretty bad.
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  But it's kind of like the frog in the pot of boiling water kind
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  of bad where you know people don't notice that they're like
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  just every year it gets harder and harder for people to to to
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  make a living. And so then coming up you're
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  saying, you know it's going to be really rough.
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  I think it is. It's going to be rough but as we
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  transition back to sound money I think we're going to regain that
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  competitive nature and and and the the prosperity that comes
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  with sound money which is you know you can plan for the future
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  and so it's easier to plan projects, everybody becomes more
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  productive because of that and then we get rid of the Cantalon
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  effect so that the middle class can grow again.
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  So I'm actually very optimistic about things in the future but
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  you know for those that don't understand this and that you
• 10:01
  know they're they've got their dollar and the all their money
• 10:03
  in the bank account you know versus in gold and silver.
• 10:06
  I think it's going to be rough for some people, but that's the
• 10:08
  whole goal of C4 SM is to try and encourage people to use
• 10:12
  sound money. Now you know before the dollar
• 10:15
  has a big crisis and that that includes states working at the
• 10:18
  state level. To get the states adopting sound
• 10:21
  money at the state level so that you know if if the dollar
• 10:25
  collapses or when, depending on how, how.
• 10:29
  I think it's a matter of when, but maybe it's if then you know
• 10:34
  the States and the people will be there to pick up the pieces.
• 10:37
  If you're looking to buy gold, silver, or platinum, do yourself
• 10:40
  a favor and check out Pimbex, the online precious metals
• 10:44
  bullion dealer and sponsor of Ron's Basement.
• 10:48
  I was a happy customer before they offered to support the
• 10:51
  channel. You'll find they have the best
• 10:54
  prices, quality, and service. I think Pimbex is best, and you
• 10:59
  will too. And be sure to tell him that
• 11:01
  you're from Ron's basement. Your organization, Citizens for
• 11:04
  Sound Money, is working on a state by state basis to help
• 11:09
  further legal tender legislation.
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  I always like to throw in that gold and silver are in the
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  United States Constitution, so you're doing the work that the
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  the founding fathers are are smiling upon you.
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  I think there's a couple interesting components to all
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  that, one of which is this idea of asset backed digital
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  currencies. And one of your cohorts, Daniel
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  Diaz pointed out something to me.
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  It was about a month ago that I'd never thought of regarding
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  the asset backed digital currencies and the concept that
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  it can make silver and gold functional again and I never
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  heard it put that way. And a lot of stackers and a lot
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  of the people that are joining us today, Jim, are are are die
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  hard. If I don't hold that physical
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  metal in my hand, I don't own it.
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  Now I I think differently. I do like the old and own
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  physical metal, no doubt. But I'm a believer that if we
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  want gold and silver to really function that it needs to, we
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  need to be able to use it in transactions easier than taking,
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  you know, an American Silver Eagle to my local coin shop and
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  converting at the Fiat and then going to lunch.
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  We need a an easier conduit for that to happen.
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  Yeah, no, that's. Well, First off, I want to
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  acknowledge that term functional money.
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  We got that from Kevin Freeman. He wrote a book Pirate Money.
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  I think Daniel's probably talked about that.
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  These are folks they introduced the the idea of an asset backed
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  digital currency is Texas legislation and we saw that and
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  then we got active and started our efforts and we wound up
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  meeting them. And now now I don't know if we
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  can say we're partnered with them but we are working very
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  closely with them and they're they're great people.
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  So they turned that coin that they they coined that term
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  functional money whereas C4 SM coined the term asset backed
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  digital currency. Before then people called it
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  like digital gold or crypto gold but but I think it deserves its
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  own asset class term but yeah that's right and and you know
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  that's that stacker mentality is is something that you know we're
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  I under, I completely understand it but it's something that we're
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  battling. I I bought a grill using silver
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  and and an asset backed digital currency and and one very
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  prominent person called me a moron for spending my silver And
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  so I turned around and said well you're a moron for having any
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  dollars you know. So that's the point.
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  Asset backed digital currencies that people have not yet wrapped
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  their mind. Well some people have wrapped
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  their mind around is yeah Gresham's law hold.
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  You know you don't want to spend the good money.
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  You want to spend the bad money. But why are you holding any bad
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  money? You know, if you can, if you can
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  have an account with gold and silver and then use a debit card
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  to go buy items wherever you want.
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  Why would you have a traditional bank account?
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  Why would you know, Why would you hold a bunch of dollars?
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  So, so once you make that mental switch that you know you're not
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  replacing your stack with an asset backed digital currency,
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  everybody. And you know, as much of a fan I
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  am about asset backed digital currencies, everybody should
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  have some physical at home free of, absolutely free of
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  counterparty risk. But you know, so don't replace
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  your stack, but do replace your bank, or at least supplement
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  your bank with a bank that hold gold and silver with.
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  Why not use all good money? Why not augment your stack with
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  you know a a functional alternative where you can use
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  your silver? Use your gold to conduct your
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  everyday transactions. The other thing that I like and
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  I'd like to get your thoughts on this as well, When I talk to,
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  when I talk about and I like to now use your term asset back
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  digital currency, is the fact that that's actually the
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  hardcore stackers will say no, if I don't hold it, I don't own
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  it. I'm like well do you realize
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  that if these states, if this legislation gets passed and and
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  Texas has an asset backed digital currency in Florida
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  which is the 15th largest economy in the world has an
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  asset backed digital currency and people start to use it that
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  that could create a massive or a very large or significant
• 15:32
  increase in demand for the metals.
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  Is that? Is that safe to say?
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  Yeah. Not just demand but what what
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  you were talking about about getting it into circulation and
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  getting it to be used the the the more you use it every, you
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  know every time you use it. It's kind of a price price
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  pricing mechanism. You know when you're deciding
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  whether to spend it or not and that you know gold rips up a lot
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  and you go OK I've got a lot of money I'm, I'm going to go spend
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  and buy a few things, right. So I, you know remember we were
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  on a gold standard and gold wasn't volatile when it was
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  backing the dollar. You know it's the the dollar is
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  actually very volatile if you look at it compared to you know
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  the gold standard. But yeah, gold right now and
• 16:13
  silver because of the futures market is very volatile.
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  And you know, there's a State Department memo that came out
• 16:19
  that said that was the purpose. You know, we're going to, we're
• 16:22
  going to start up a futures market that's going to create
• 16:24
  volatility because of it. There's going to be lots of
• 16:27
  leverage that'll dissuade people from holding gold and silver.
• 16:32
  So it's like the chicken or the egg situation.
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  It's going to be volatile until we start using it as money.
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  Once it's used as money, you know, then it won't be.
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  But you know, people don't want to use it as money because it's
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  volatile. Well, it's a chicken or the egg.
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  We got to, we got to start. We got to start.
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  Yeah. And it's.
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  Hard, and I think it's hard for any of us, you know, whether
• 16:52
  you're an American, you're a European, we we are so attuned
• 16:57
  to thinking of metals in terms of dollars.
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  And I hear it, I've heard it said before like think of your
• 17:03
  silver or your gold in terms of Oz.
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  But we just, you know, have been programmed to think of it in
• 17:10
  terms of dollars and the price is very volatile.
• 17:13
  And I think that's interesting what you said because the
• 17:15
  thoughts crossed my, I mean, I followed this market super
• 17:18
  closely for 20 years now. And in particular lately it
• 17:23
  almost feels like in the last two or three years it's been a
• 17:26
  form of psychological warfare against the silver and gold
• 17:30
  community. I mean you know, it it it just
• 17:33
  there's something, it's like this doesn't feel right.
• 17:35
  It feels like there's something going on to really dissuade
• 17:39
  people from from from owning silver and gold.
• 17:45
  Yeah. No, I absolutely agree.
• 17:46
  I I, I was never one that bought into like the manipulation stuff
• 17:50
  until the last three or four years because the setup has
• 17:54
  never ever been more bullish. But it's you know, been a
• 17:57
  three-year consolidation. It's it's, it's crazy.
• 18:01
  So yeah, no, I agree. You know, you're you're around
• 18:05
  my age. We remember the Charlie Brown
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  cartoon where you know Lucy has the football and Charlie Brown
• 18:11
  goes to kick it and it just feels like this constant, like,
• 18:15
  you know, just a constant rug pole that goes on within within
• 18:19
  both the metal prices. So.
• 18:22
  So your organization is working to get to get legislation passed
• 18:27
  in a number of states. Can you give us a feel for
• 18:32
  because I know there's some traction in that area already.
• 18:35
  We've had a number of states that have already passed legal
• 18:37
  tender legislation. But what what?
• 18:39
  What do you see going on now and do you feel like there's
• 18:42
  continued momentum in that area? Yeah.
• 18:46
  So let let me first acknowledge you know we're not the only ones
• 18:50
  doing legislation for gold and silver sound money defense which
• 18:54
  is run by money metals and JP Cortez is is the guy that does
• 18:59
  the work there has been doing a fantastic job especially focused
• 19:03
  on getting rid of sales tax and and taxes at the state level.
• 19:07
  So I I want to acknowledge that great work we for the for our
• 19:11
  first two years we played a support role and just you know
• 19:13
  would e-mail our list to support his legislation.
• 19:16
  We still want to do that. We still continue to do that.
• 19:18
  But when we saw the Texas bill, we realized, you know this, this
• 19:24
  idea of an asset backed digital currency is not something that
• 19:27
  sound money defense has taken on.
• 19:28
  And that's that's fine, but somebody needs to do it.
• 19:31
  And we're kind of uniquely positioned because that was kind
• 19:34
  of our we've been pushing asset back digital currencies as part
• 19:37
  of encouraging people to use sound money because it's the
• 19:40
  best way really it is with the other exception of I think
• 19:45
  Goldbacks is you know, for a cash component there's you know,
• 19:48
  Goldbacks is a beautiful product for for physical transactions.
• 19:53
  And so we we decided to do it but it's it's it's a much more
• 19:58
  ambitious legislative initiative than than doing taxes and and
• 20:03
  when I say more ambitious that means it's more work.
• 20:05
  And So what we decided is we were going to target about 5
• 20:08
  States and try to get it passed and then use that as an example
• 20:13
  for other states because once one state does it, it becomes
• 20:15
  easier for other states to do it.
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  So we want to target 5 states. Then we met Kevin Freeman,
• 20:21
  economic war room. And he wrote a book and we read
• 20:24
  the book. It's like, shoot, this is what
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  we're trying to do. It's the exact same thing.
• 20:29
  They're they're actually targeting about 30 states.
• 20:32
  So we're working with them to target 30 states.
• 20:34
  But I think it's going to be for, for the states that we're
• 20:37
  targeting, we're coming in with full support, you know, trying
• 20:40
  to get grassroots activated, trying to get people to testify,
• 20:44
  doing robo calls, targeted ads, etcetera, you know, spending
• 20:48
  some money on it. Whereas I think economic war
• 20:51
  room's going to try to get sponsors in 30 States and you
• 20:54
  know, kind of hope for the best kind of thing and but they're,
• 20:57
  you know, and they're helping us in the states that we're
• 20:59
  targeting. So, so you know, so yeah, that's
• 21:02
  the plan. And and the bill is really a
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  comprehensive, the way I would describe is a comprehensive, you
• 21:07
  know, way to create a gold and silver currency at the state
• 21:11
  level that is functional like you said.
• 21:14
  And when I say functional, it's first declared as legal tender,
• 21:20
  but not not all gold and silver's legal tender.
• 21:24
  Because like if somebody comes in with a gold bar that's big
• 21:27
  and thick, you need some good techniques to make sure that
• 21:30
  it's authentic. Whereas if somebody comes in
• 21:33
  with a gold eagle, it's very easy to test.
• 21:35
  It's very recognizable. You know, you can spot forgeries
• 21:38
  pretty pretty easily. Gold backs are completely
• 21:40
  forgery proof or at least like they're harder to, I'll put it
• 21:44
  this way, they're harder to forge than a dollar bill.
• 21:47
  So legal tender species versus bullion is the first part of the
• 21:52
  bill. The second part is establish A
• 21:55
  depository and that's really coupled with the third part of
• 21:59
  allowing whole people's holdings and depositories to be
• 22:02
  transferred, be able to be transferred electronically.
• 22:06
  So that's essentially the asset back digital currency And those
• 22:09
  those second two things are probably coupled together.
• 22:11
  If you know we we anticipate the states would you know if they
• 22:15
  try to do this from scratch it would cost too much money.
• 22:18
  But there's companies that have invested millions in this
• 22:20
  technology. So instead it's put out a
• 22:22
  request for proposals, get competitive bids and then select
• 22:26
  somebody for a public private partnership.
• 22:28
  And the the asset backed digital currency company would likely
• 22:31
  also run the depository because that's you know they're used to
• 22:34
  doing that. Interesting.
• 22:36
  So, so that, so that's the plan and and you know by legal
• 22:40
  tender, it's legal for pub payment of public or or debts,
• 22:45
  public and private and also payment of taxes.
• 22:48
  And there's good Supreme Court cases showing that the states
• 22:52
  going all the way back to the 1800s, the states do have the
• 22:54
  authority to you know specify what is legal tender in the
• 23:00
  state for payment of taxes. So so yeah that's that's that's
• 23:04
  the plan and so far going very well.
• 23:07
  I think Florida's very promising.
• 23:08
  We've got a great sponsor down there, Representative Bankson,
• 23:12
  and we've met with like 80 legislators.
• 23:16
  Economic War Room had it like a dinner where about 50
• 23:19
  legislators came to that gave out copies of the books.
• 23:22
  New Hampshire is is going to be a tougher battle just because of
• 23:25
  the composition right now. Normally it's a very pro liberty
• 23:28
  state. It's just the the House is split
• 23:31
  kind of 5050 right now. But this is an issue that should
• 23:35
  resonate with Democrats as well, because there's no more
• 23:38
  regressive tax than inflation. So if if they want to stand up
• 23:41
  for poor people, they should should absolutely back this,
• 23:44
  this kind of a bill. Yeah, it's.
• 23:47
  Probably a matter of education as well.
• 23:49
  I think the more people realize the benefits to silver and gold
• 23:55
  is that is that knowledge base continues to incubate here in
• 24:00
  the United States. It was interesting.
• 24:02
  I heard a gentleman from at Max like the world's are the, I
• 24:06
  believe the biggest bullion dealer in the United States.
• 24:08
  He said We have a a database of 2 million customers who've
• 24:14
  bought silver or gold from us over the years, but there's 300
• 24:18
  million Americans. So really you're talking about
• 24:21
  one in every 150 Americans. It, you know, it feels like to
• 24:27
  me that the interest in knowledge is, is is beginning to
• 24:32
  percolate, incubate, grow. You know, I think we see things
• 24:37
  like even this Costco situation where they sold $100 million in
• 24:42
  Gold Eagles in the most recent three months that people are
• 24:46
  waking up. I also, I also think that and
• 24:49
  then I want to circle back and talk about the legislation.
• 24:52
  But you know I think we went through one period of inflation
• 24:56
  that really shook people and that as we head into this next
• 24:59
  year or two, I believe from a number of perspectives, you
• 25:05
  know, domestically in the United States, fiscally, monetarily in
• 25:09
  the United States and even on a worldwide basis with what's
• 25:12
  going on geopolitically that we're the table set for another
• 25:17
  potential big wave of inflation. And I think the second time it
• 25:22
  hits that that could be the the real wake up call when you know
• 25:26
  when when people go to the grocery store and milk is now $9
• 25:29
  a gallon or $11.00 a gallon that they're going to be whoa, we
• 25:32
  need, I need to do something to protect myself.
• 25:35
  And that we could see even more interest that I think would
• 25:38
  would feed into support for the type of legislation like you're
• 25:42
  like you're proposing you know this idea in the term asset
• 25:47
  backed digital currency. I love it.
• 25:49
  I think it's great. I think it's totally and I but I
• 25:52
  want to make sure I have this correct.
• 25:54
  If I live in a state that that has an asset backed digital
• 25:58
  currency let's say all the legislation goes through you've
• 26:01
  got this public private partnership and and the
• 26:04
  depository essentially let's say I have I deposit 100 ounces of
• 26:11
  silver in the depository and and I I would then have a an asset
• 26:17
  backed digital currency 100 units or tokens whatever
• 26:21
  whatever would be called. And I probably would have an app
• 26:23
  on my phone that that for each one of those units of that
• 26:28
  currency that I have or tokens that there would be a real ounce
• 26:33
  of metal somewhere. If I spent it, It would be an
• 26:37
  immediate kind of conversion and transaction.
• 26:41
  But if I wanted to go pick up 50 of them, I could at some point
• 26:45
  possibly go to the depository as well.
• 26:48
  Yeah, yeah. So that's, I'm glad you brought
• 26:51
  that up because earlier you said, you know the phrase that
• 26:53
  everybody says if you don't, if I don't, if I don't hold it, I
• 26:56
  don't own it. So and and I understand trust is
• 27:01
  at a very low level right now, but there there are ways you can
• 27:04
  be a lot more confident and and the the important things in
• 27:08
  terms of structuring an asset backed digital currency are one
• 27:12
  that it's a Bailey relationship versus custodian.
• 27:15
  Bailey means you own the metal that whoever's running the
• 27:20
  depository is holding it for you.
• 27:22
  They do not own it. It's not on their balance sheet.
• 27:24
  If they go bankrupt, it's a pain, but you get your metal
• 27:27
  back. Like it'll have to go through
• 27:29
  bankruptcy court. You get the metal back.
• 27:31
  So a Bailey relationship is the most important thing.
• 27:34
  And that's important not just for pragmatic reasons and trust
• 27:37
  reasons, but also for constitutional reasons because
• 27:40
  it says states cannot emit bills of credit.
• 27:43
  If this was a custodian relationship where the state
• 27:45
  owned the medal and they owed you the medal, that would be
• 27:48
  unconstitutional. But a Bailey relationship is
• 27:50
  constitutional. So that's that's an important
• 27:54
  thing. Independent audits we specify in
• 27:57
  the bill that has to be twice a year for independent audits.
• 28:00
  The the third portion, we don't actually specify that the asset
• 28:05
  back currency has to be blockchain.
• 28:07
  It could be a a, you know a traditional database.
• 28:12
  But we think a blockchain is superior because especially if
• 28:16
  it's open source because then you can run a watcher node and
• 28:19
  you can verify the circulation numbers and make sure they match
• 28:22
  the physical audits. And that's something at C4 SM
• 28:25
  that we do already to make sure that some of these systems are
• 28:30
  authentic as we we verify the circulation figures and
• 28:33
  blockchain's immutable as well, whereas you know a database can
• 28:36
  be altered. So in New Hampshire the sponsor
• 28:41
  who was on the blockchain council like very in tune with
• 28:45
  blockchain actually decided to specify that blockchain was
• 28:49
  required open source decentralized blockchain, which
• 28:52
  I think was a wise thing to do. But we we wanted to have as many
• 28:55
  vendors as possible bidding on contracts.
• 28:57
  So we didn't place that specification.
• 28:58
  So independent audits not only of the physical asset but also
• 29:06
  of the tokens that are that are backed by that physical
• 29:08
  accident. And that way you can ensure that
• 29:10
  it's 1:00 to 1:00. And then the final thing is it
• 29:13
  has to have redemption option. You know, there are systems out
• 29:17
  there like Pax G where you can redeem it.
• 29:19
  But for a 400 oz gold bar, which is out of reach of most people,
• 29:23
  it has to have a pragmatic, practical redemption and maybe
• 29:27
  that's 100 ounces of silver. Preferably it would be very,
• 29:30
  very small denominations like, you know, you could take out one
• 29:33
  gold back, you know, and I think that's coming.
• 29:38
  It's, you know, we didn't, we didn't specify a low redemption
• 29:41
  limit, but we did specify it has to be redeemable.
• 29:44
  You also have to be able to deposit your gold into the
• 29:45
  system, because if you can't deposit and redeem, you're
• 29:49
  forced into Fiat again, You know.
• 29:52
  If you have to deposit Fiat to buy the metal, then you know
• 29:55
  that doesn't help people. As long as it's a species
• 29:59
  species, it qualifies as legal tender in the particular state.
• 30:05
  You could deposit it in the depository.
• 30:07
  So that's actually an interesting, So this was a lot
• 30:10
  of debate. It doesn't have to be.
• 30:12
  So there's legal tender species, which would be like gold Eagles,
• 30:15
  silver Eagles, it'd be gold backs, whatever the state
• 30:17
  determines to be legal species, which has to be recognizable in
• 30:22
  a form that's usable, you know, designed to be used as money.
• 30:26
  But the depository doesn't have to be backed by that legal
• 30:30
  tender specie, It can be backed by bullion.
• 30:33
  The difference is, is if you're putting something to depository,
• 30:37
  you've got experts that can say it and have quality controls to
• 30:40
  make sure you know. Whereas the store owner can't
• 30:43
  verify a a gold bar, but the depository can.
• 30:47
  Yeah. So depository can be backed by
• 30:49
  either specie or bullion. But so yeah, you could deposit
• 30:54
  silver bars into this in that case, yeah.
• 30:58
  And that, and that makes total sense because the whole basis of
• 31:01
  it all is silver or our silver and gold, right?
• 31:05
  I mean that's it's not being based upon a particular coin or
• 31:09
  bar or it's being based upon silver.
• 31:11
  Gold. Fortuna Silver Mines is a global
• 31:14
  intermediate gold and silver producer since 2005.
• 31:18
  Fortuna's best in class management has delivered
• 31:21
  impressive growth and profits. Fortuna's solid financial
• 31:26
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• 31:30
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• 31:35
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• 31:38
  markets. Investing in Fortuna is an
• 31:41
  investment in quality long term sustainable production of in
• 31:46
  demand precious and base metals. So, so my question is, I live
• 31:51
  here in Missouri. When we get our depository, I
• 31:54
  guess I'll be able to show up there every morning and and tell
• 31:58
  him I want to withdraw my 100 ounces of silver and I can hold
• 32:01
  it in my hand and say OK, I just wanted to make sure it was here
• 32:04
  and and then hand it back to him right.
• 32:06
  I'm sure they. What what's what's funny is I
• 32:09
  did exactly that with Kinesis like two years ago is I did a
• 32:13
  redemption for 200 oz. I got 200 oz.
• 32:16
  Engelhard bars, I took them into Golden Eagle, a local point
• 32:20
  store, had them, you know, take readings on it, make sure it was
• 32:25
  pure silver, etcetera. And then my wife goes, what are
• 32:29
  we going to do with this thing or these things?
• 32:33
  So so I called them up and I deposit one of those bars back
• 32:37
  into the system and got my tokens back and then spent them
• 32:40
  on a grill. Yeah, there you go.
• 32:42
  So, yeah, absolutely. And you know, and and that
• 32:46
  ability is in my opinion vitally important because if you look at
• 32:52
  the bank runs in the Great Depression, it was because
• 32:55
  people figured out the money wasn't there so they did a bank
• 32:58
  and you know despite audits and you know you can always start
• 33:03
  getting suspicions you need to be able to withdraw it And and
• 33:06
  as well as cash is very important for privacy reasons.
• 33:11
  You know anything that's that's online, any blockchain, you know
• 33:15
  there's some, there's some block chains that have tried to
• 33:19
  enforce privacy and stuff but you got to, you got to assume
• 33:22
  that it could be public. You know somebody could figure
• 33:24
  something out about your accounts or whatever.
• 33:26
  So the ability to redeem and spend it privately is, is
• 33:30
  incredibly important. So that's why we we definitely
• 33:33
  focused on having a cash component of the system.
• 33:36
  Yeah. And you know, 2 two final
• 33:39
  thoughts from me. As we look at this prospect of
• 33:41
  CBD CS coming from I guess the Fed or the you know, central
• 33:46
  bank level gold and silver could potentially become like the last
• 33:51
  bastion of financial privacy which which I think could bode
• 33:56
  well for for those of us who are.
• 33:59
  You know if that indeed you know comes to fruition that we're a
• 34:03
  little bit ahead of the ahead of the curve at this point.
• 34:06
  And then you talked about the banks during the Great
• 34:08
  Depression, You know, when people realize the money wasn't
• 34:11
  there. And I and I can't help but say
• 34:13
  Jim, but you know it's so nice now because we know the banks
• 34:16
  now have all of our money. It's all there.
• 34:18
  They haven't made any bad investments in commercial real
• 34:21
  estate or or U.S. Treasuries.
• 34:24
  It's all there. As long as the bank term funding
• 34:27
  program stays in place, then it's all there.
• 34:30
  Well, and and that's just another potential huge inflation
• 34:33
  trigger is if if those guys mess up and you know the money is not
• 34:38
  there, they they can always print it.
• 34:40
  Sure. FDICI don't think it's going to
• 34:43
  fail because they can just print it like you will get your
• 34:46
  dollars back in nominal forms but not in real terms.
• 34:50
  Yeah. You know, in the the analogy I
• 34:51
  like to use, I'm not a drinker, but I do remember back when I
• 34:55
  did that, like Jack Daniels whiskey is 80 proof or 40%
• 35:00
  alcohol. And when we talk about the, I
• 35:03
  like to use the term, the dilution of the US dollar.
• 35:07
  You know, just if we look at what went on during the C19
• 35:09
  crisis when they, you know, printed whatever, 40% of the US
• 35:13
  dollars diluted the dollar. I always like to tell people,
• 35:16
  you know, it'd be like if you went to your local liquor store
• 35:19
  to buy a bottle of Jack Daniels and the price is the same, but
• 35:23
  you look on the bottle and instead of being 80 proof, now
• 35:26
  it's 60 proof. You know, you wouldn't stand for
• 35:29
  it. You know, you'd be buying a a
• 35:30
  diluted product. And maybe not the best analogy,
• 35:34
  but, you know, I think as we wrap this up, one, one thing I'm
• 35:37
  taking away from our conversation is the the timeless
• 35:42
  value of silver and gold. And I think you started out
• 35:46
  early in our conversation here saying that, right?
• 35:48
  Like, like history, you know, during our lifetimes.
• 35:51
  I think a lot of the viewers are like you and I, like we.
• 35:54
  We've only experienced what we've experienced for me in the
• 35:58
  last 53 years. But if we broaden our scope to
• 36:04
  500 years or 2000 years, these type, that similar type
• 36:09
  scenario, similarly many times the same situation that we're in
• 36:12
  now have unfolded and silver and gold have proven themselves
• 36:18
  winners when it comes to you know, protecting wealth and and
• 36:23
  and protecting value. Yeah.
• 36:25
  It's it's like I said at the beginning is if you study
• 36:27
  history it's you know the return of gold and silver to money is,
• 36:31
  is is not just a theory. It's inevitable.
• 36:35
  You've studied history enough. You're and you're right.
• 36:37
  You have to you have to go back. You know we we've been at a very
• 36:41
  artificial mechanism ever since World War 2 ended and we had
• 36:45
  this massive debt to GDP. And so they kept interest rates
• 36:48
  low. They had yield curve control and
• 36:50
  they wiped out the bondholders. So we've kind of been in this
• 36:54
  artificial market for a long time.
• 36:58
  So if you just go based on your experience and that that's
• 37:01
  what's great about travel too is you know I went to the Soviet
• 37:03
  Union as a kid, which is why I became such a big believer in
• 37:06
  freedom. But to see them have a currency
• 37:09
  collapse, you know, and you know, they're Putin sitting
• 37:14
  there talking about the US having a currency collapse.
• 37:16
  I don't think he's wrong. You know, they've experienced
• 37:19
  it. So they have that recent memory
• 37:21
  to know and see the signs, whereas we don't.
• 37:25
  But but it's coming. Yeah.
• 37:26
  And and I think you and I talked about this before we came
• 37:29
  online. Like, you know, the United
• 37:31
  States is subject to the same rules of mathematics as
• 37:36
  Argentina, Turkey, the Soviet Union, Venezuela.
• 37:41
  You know, we have, we have to deal with the same laws of
• 37:44
  mathematics. And just because it hasn't
• 37:47
  happened yet and I and I had this conversation with a few
• 37:49
  people last week that if you think back to, you know, I
• 37:54
  worked in the tech industry during the tech bubble.
• 37:56
  Everything was great, everything was wonderful.
• 37:59
  And then suddenly it wasn't. I mean, it was like it happened
• 38:01
  all of a sudden. And I remember that, you know,
• 38:03
  I'm sure you do as well the the, the, the the real estate and the
• 38:07
  you know, the real estate bubble then mortgage situation that
• 38:11
  unfolded in 2007, 2008 everything's great and then it's
• 38:15
  not. So you know we'll we'll I guess
• 38:19
  rest easy that we've protecting ourselves with silver and gold
• 38:24
  on behalf of the viewer who's joined us today.
• 38:27
  And me, you've been very generous with your time.
• 38:30
  You really are the smartest guy in the room and and we
• 38:34
  appreciate you know, you sharing your knowledge but also the work
• 38:37
  you're doing to help people you know throughout the country
• 38:41
  throughout, you know, state bound to state by state basis
• 38:44
  with the legal tender legislation.
• 38:46
  I'll put links to citizens for sound money in the description.
• 38:50
  Is there anything that I forgot to ask you forgot to mention?
• 38:54
  Anything you want to say as we wrap up?
• 38:56
  Just let's see if you if you want to give, we have I had had
• 39:06
  them here somewhere but fifth ounce rounds if you want to give
• 39:08
  some of those away to your viewers we'd be happy to do
• 39:11
  that. They've got our website on it.
• 39:14
  If they go to our website and sign up for the newsletter then
• 39:17
  we we're a little behind right now.
• 39:18
  But we try to send out something once a month with a coupon code
• 39:22
  so they can get more of those rounds at cost, which for fifth
• 39:26
  ounce round it's nice because you can give them away as tips.
• 39:28
  You can give them to people and educate people.
• 39:31
  I do want to give a shout out to Daniel Tinkum who is on your
• 39:35
  program and said he wanted to meet me and give me a 10 oz.
• 39:38
  Bar. He did just that we had a nice
• 39:40
  lunch in in New Hampshire so and he he went and testified to the
• 39:45
  New Hampshire committee and did a great job.
• 39:47
  Yeah. Go ahead.
• 39:51
  One more thing. So you, you were saying, you
• 39:53
  know, get gold and silver, protect yourself, that's, you
• 39:57
  know, that's great. People need to do that.
• 39:59
  But also spread the message to other people.
• 40:02
  And that's that's why I love your show is you're doing
• 40:04
  exactly that, you know, spreading that word because it's
• 40:06
  not enough to protect yourself. You know, if you don't protect
• 40:09
  your neighbors and your friends and your family, they're going
• 40:11
  to be hurting when the time comes.
• 40:14
  And trust me, if you if you tell them enough times, eventually
• 40:17
  they'll they'll. Most of them will start to
• 40:20
  listen. Yeah.
• 40:21
  Well, and it's, it's funny you ask about like the reception on
• 40:24
  this. You know, I'm going, I went to
• 40:26
  New Hampshire and I was talking with some of the same people I
• 40:28
  served with 10 years ago. And I talked about this stuff
• 40:31
  back then because I thought 2008 was it and it wasn't.
• 40:35
  But I I think it's at this time. But the the reception is very
• 40:38
  different 10 years later and especially after after 2020.
• 40:41
  Yeah, we're getting at some people are much more open to
• 40:46
  this now than they were ten years ago.
• 40:48
  Well, and I and I hear it all the time and I'm sure you do as
• 40:50
  well and our viewer does like people sense that something's
• 40:54
  not right. You know people have this sense
• 40:58
  that that there's some there's something wrong with what's
• 41:01
  going on. So that's that's interesting to
• 41:04
  hear that you've, you know, noticed a discernible difference
• 41:07
  in terms of reception. Yeah.
• 41:10
  To the to the to the message from silver and gold.
• 41:14
  That's gonna be, it's gonna be an interesting 10 years ahead,
• 41:18
  that's for sure. And for two years.
• 41:20
  What's that? Or an interesting two or three
• 41:22
  years. Or or an interesting year I mean
• 41:25
  it's you know it and and and you mentioned this but it feels like
• 41:32
  everything you know two you you thought 2008 was it but it
• 41:36
  wasn't right they were able to paper over it or however you
• 41:39
  want to say that that that the that the system that the
• 41:43
  situations are escalating. I've heard some several people
• 41:46
  say this and I I'll say it myself that these situations
• 41:50
  that we're experiencing are escalating and that they're
• 41:54
  happening more frequently. And and maybe that's why, you
• 41:59
  know the general feeling out there is that something's not
• 42:02
  right because something's not right.
• 42:05
  I mean, you know, $34 trillion is not right and you know to.
• 42:09
  We've, we've, we've we've hidden inflation over the last 10 years
• 42:13
  by exporting it and that's that's the big change that's
• 42:17
  happened is these other countries are not putting up
• 42:20
  with it anymore and letting us export their inflation.
• 42:22
  They're they're de dollarizing. And, you know, so I was talking
• 42:27
  to a friend in Latin America and, you know, I was like, I'm
• 42:29
  sorry we exported our inflation. She's like, don't worry, it's
• 42:31
  coming back to you guys. We we just, we we just packaged
• 42:37
  it up. It'll be there before you know
• 42:39
  it, right. Thank you, Jim.
• 42:43
  Hopefully we'll see you again in the basement and if you need
• 42:47
  anything let us know. Yeah, happy to.
• 42:49
  Come on anytime. We'll give be giving you updates
• 42:51
  on legislation as we go. OK.
• 42:54
  Thank you. Thank you.