Latest / Man in America Podcast / China just SHOCKED the world and the US is in big trouble

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China just SHOCKED the world and the US is in big trouble · Man in America Podcast

• 0:00
  Seth Holehouse: Ladies and gentlemen, welcome to Man in America. I'm your host, Seth Hulghouse. So if you've been following my show almost at all, you know that a consistent thing I'm talking about is what's happening to the Western financial system. Now I recently interviewed Martin Armstrong. And if you haven't watched that, I highly recommend it.
• 0:17
  This guy's one of the best person, you know, people in the world when it comes to economic cycles and forecasting. And his opinion, along with many other people's opinion, is that we're entering into really what is what they're calling the collapse of the Western financial system. Now there's two ways that are of looking at what's causing that primarily. A, we have the derivatives, the money printing, and, you know, everything that we're seeing every day. But there's also what's happening with the BRICS nations, with China, with Russia, with them bringing out, you know, their own current you know, their own reserve currency.
• 0:51
  And fundamentally, though, what this would mean is that if the US dollar loses that global reserve status, like, what does that mean for the dollar? And how are the actions of China and Russia, UAE, all the other BRICS nations, how are they affecting that? And so there's actually there's a few really significant pieces in the news this week, and actually one that just came out as a breaking article about how China has been confirmed as this mystery buyer of gold. So I brought on Kirk Elliott here with me to talk about this because, you know, Kirk really knows precious metals and geopolitics. And we're gonna be looking at what this means and what are the moves that we're seeing and how to, you know, forecast what what what's gonna happen in next six months, one year, two years, etcetera, and what does this mean for us in our personal lives.
• 1:38
  So let's go ahead and bring Kirk on. Kirk, thank you so much. It's always great to have you on here.
• 1:44
  Speaker 2: Hey, Seth. It's so great to be with you.
• 1:48
  Seth Holehouse: Thank you. Thank you. So, Kirk, let's just dive right in. As I mentioned, there's a couple articles I wanna hone in on. So this first one, though, just about the central banks, I'll pull this up on the screen for those that are watching.
• 1:59
  If you're listening, I'll be narrating as well. So this is a Zero Hedge article, which, you know, folks, if if you want financial news, Zero Hedge is my go to place. I actually just recently subscribed to their premium membership because it's just such good information. So this article came out just today, and talking about how central banks start q four buying more gold. Alright?
• 2:23
  And what they're saying is that after adding a historically high amount of gold to reserves in the third quarter, central banks kicked off q four buying more gold. But scrolling down here, there's a few key points I wanna say here. Okay. One is that, as I write, total central bank gold holdings are now the highest level since 1974. This is a very, very significant fact.
• 2:48
  The other things is that, okay, well, who's buying this gold? Well, they they start by saying that the Central Bank of UAE, United Arab Emirates, was the largest gold buyer in October. They bought just over nine tons to its reserves. Turkey also bought roughly nine tons, like, close second in October. And it goes in talking about Uzbekistan, Kazakhstan, a few other Kazakhstan, a few other places as well.
• 3:16
  Now in scrolling down to the bottom here, what it says though is that these numbers reflect officially reported gold purchases, but there were large unreported increases in gold holdings in the third quarter. Central banks that often failed to report purchases include China and Russia. So many analysts believe that China is the mystery buyer stockpiling gold to minimize exposure to the dollar. And we're gonna come back to that. Remember that kind of phrase there, stockpiling gold to minimize exposure to the dollar.
• 3:47
  Now the breaking article that just came out, like, literally about half an hour ago, was this. This is also zero hedge. Basic and this article is China confirms it is the it's the mystery massive gold buyer with first official purchase in three years. And so here they continue to say, one month ago, we sparked a frenzy across precious metal circles when we reported the mystery buyer had bought some 300 tons of gold, roughly three quarters of what would be a record 399 tons of a central bank gold purchases in third quarter. And so remember the previous article I showed you, they're saying it was a record month, and UAE bought nine tons.
• 4:31
  Right? Well, here they're saying that it was looked like it was China that bought 300 tons. And so, anyway, this is this is really, really significant. And then for me, the question really comes up is why are the central banks buying gold in record numbers? And so, Kirk, I just you know, I wanted to lay out all the information and just let you go and see what you make of all this.
• 4:56
  Speaker 2: Well, so this is very interesting, and I'm glad that you brought it all up because what we have is kind of the unraveling of the central banking system, as we've known it since, well, the Federal Reserve Act of 1913. But the Federal Reserve wasn't the first central bank in the world, right? The European Central Bank went way before that with the Rothschild family dynasty, right? And setting up a lot of these central banks globally, right? Well, so we have to look at history to understand the present and the future, right?
• 5:31
  So you've got the Federal Reserve Act of 1913. Then you've got Nixon closed the gold window for international settlements in gold in 1971. So what did your article just say about the 1970s? Well, this is where gold buying of central banks has never been higher than than the seventies. So what happened in the seventies?
• 5:56
  We moved away from a gold standard, you know, from because back in back in the nineteen twenties, '19 thirties, right, the the US dollar was backed by gold. A %. One ounce of gold equaled $20. That's why it says $20 on it. You could a $20 bill was equivalent for one ounce of gold, and you could convert it back and forth.
• 6:17
  Nixon closed that window. But what did he go to when he closed the gold window? We weren't a completely fiat based currency at that point, which a lot of people think that we were, but we're not. I hate to burst people's bubbles. We weren't a fiat based currency because we went to a petrodollar standard.
• 6:36
  Right? So we went from gold backing in America to oil backing of our of our dollar. Right? So so and how how did that happen? Well, in that that agreement with OPEC, you know, during the early seventies, basically all international settlements of oil were done in US dollars to add stability to the global financial system because who doesn't use oil?
• 7:00
  Everybody uses oil, right? So therefore, we went from gold backing to oil backing. Here's the key thing, and this is what kind of plays into this article that you just talked about, about countries buying up gold, right, to the largest amount since the 70s. Well, what's happened recently, like over the last six months, is the reemergence of the BRICS nations. Brazil, Russia, India, China, Saudi Arabia.
• 7:33
  Right? They kind of went on hiatus for a while because this BRICS has been around for quite some time. But when Russia and and Ukraine started their conflict, Putin decided we're going to start backing our currency with gold. Right? But why did he do that?
• 7:54
  That was in response to Biden saying, we're going to cut you out of the Western financial system and get you out of the SWIFT program. Right? So SWIFT program, for for all of those who don't know, is the mechanism where banks can can basically accept or send international bank wires. Right? So so what Biden was trying to do is like the nuclear option for economic sanctions and cutting off Russia from the ability to transact business internationally.
• 8:25
  Well, Putin was smarter than that. And he went to China. Said, hey, China, this this Biden guy, we can't stand him. He he cut us off, trying to cut us off. I'm not going to let the Russian people suffer from from him.
• 8:37
  So therefore, let's join join up forces with you. You have your own version of the SWIFT program so we can actually get international wires. Right. And not have our Russian people starve. Okay.
• 8:51
  So that's kind of the backdrop. So what's happened since then is actually a big deal. That just opened up the door for other options for them to survive financially. Well, their options to survive financially have turned into the lifeblood of their economy and the future of their economy. Right?
• 9:11
  So now BRICS isn't just those five nations. BRICS is now dozens of nations as they're pulling country after country after country. They just recently, China pulled in Saudi Arabia and said, hey, you want to join the BRICS nations? Think Saudi Arabia actually reached out to them first because they saw the writing on the wall. And they said, hey, you guys are actually playing this well against the Western financial system.
• 9:39
  You're backing your currency with gold. And China, you happen to be the largest purchaser of oil from us, Saudi Arabia, which is the largest producer of the oil in the world. So we kind of want to join this coalition, this BRICS coalition. Right? And so we're going to say you don't have to we're going to we're going to kick the petrodollar system in the butt and say, you don't have to pay for it in US dollars anymore.
• 10:08
  Just pay for it in whatever else. Right? The oil that they're getting from Saudi Arabia. So that every single time that happens, Seth, there's a a a detraction from demand for The US currency, because that's the only reason we even have demand is because there's a petrodollar and all oil settlements have to be traded in US dollars. So what Saudi Arabia did was said, okay, China, largest trading partner on the planet, even bigger than The United States.
• 10:36
  No more US Dollars. We want to join your system. We're going to make the BRICS power block the most amazing power block, most powerful trading block on the planet. Right? So they did that.
• 10:49
  Now what is Putin doing? Putin's really trying to stick it to the West and and and when? Because he he doesn't wanna lose. He doesn't want the London financial system, the New York financial system, politics coming out of DC to actually ruin what them and China are working on, which is global monetary dominance. Right?
• 11:11
  So so here's where it all starts to come into play. The petrodollar is going away, which actually eliminates demand for The US currency, which is going to mean America needs to print money like there's no tomorrow to fund our entitlements, our expenditures, our debt and everything else because we're not getting it anymore from foreign countries buying oil, which they would use the US dollar to do that. So if there's no demand for our currency, but we still have expenditures and entitlements and Social Security and Medicare and Medicaid and paying people to stay home and raise the debt ceiling, I mean, could go on and on and on. Right? How are they going to fund it with no capital inflow?
• 11:55
  They're just going to print their way out of it, which causes even more inflation. Which how do you stop inflation if you're a policymaker? By raising rates. Right. So so this is where there's so much doublespeak, Seth, going on, because the Fed says we've got to raise rates to slow down inflation.
• 12:13
  Well, hey, you morons. You're the ones that are causing inflation by printing money like there's no tomorrow. It's like this vicious cycle. And China sees it. China knows you know, Xi knows that he can't beat America militarily.
• 12:27
  He doesn't even want to go down that road. Nobody would. Right? But how do you defeat America? How do you kick the big US dollar out of the sandbox with all the other kids?
• 12:40
  Well, you can't do it militarily. It's not like they're going to take over America. But why don't you kill us financially? Right? Why don't you reduce demand for the US dollar by saying no more petrodollar?
• 12:53
  Why don't you start flooding the open markets with US Treasuries that China owns like a trillion dollars worth and saying, hey, we don't want these stinking treasuries anymore. They go on the open market, and that means there's no demand. There's actually reducing demand for U. S. Dollars.
• 13:14
  And the Fed's going to have to pay for those because there's no foreign capital info coming in. So they raise the debt ceiling, they keep printing more money. I mean, this is a vicious cycle that they are causing by their own policy actions. So with that being said, what the BRICS nations are doing is absolutely genius. I mean, I can't say that economically, if I were trying to be the big kid on the block, be the global monetary, economic, military, financial, manufacturing superpower, right, like what China is trying to do, what would I do?
• 13:56
  I would start reducing demand for the US dollar because I can't. Because I have so much US Treasuries that I'm just going to sell them. There's more supply than demand that's going to cause the price to come down, right? So this is what they're doing. They're conducting economic warfare 01/2001.
• 14:13
  And and I watched your your interview with with Martin Armstrong. Right. Martin Armstrong is a stinking genius. He's he's amazing. And he's probably the best cycles analyst on the planet, bar none.
• 14:29
  Right. And what he says is that we're going into a war cycle as well. So what do war cycles mean? It means that countries are going to print more money. They're going to inflate.
• 14:41
  They're going to devalue their currency by printing money like there's no tomorrow. But why? Right? We always have to ask why, Seth. So the why is we've got food inflation just like, man, I can't even remember exactly when it was.
• 14:55
  But remember when we had the Arab Spring and all the all those countries, the terrorist producing countries started uprisings all over the globe, right, in France and America and other places. It was because of food inflation. And so Martin Armstrong talks about the rising cost of food, the rising cost of energy causes people to be hot and hungry, which affects their moods and and all the debt that's been accumulated throughout the years. What we've got is a war cycle and an economic and a financial cycle and a political cycle all ending at the same time, which is a recipe for disaster.
• 15:38
  Seth Holehouse: And the fourth turning. The generation
• 15:39
  Speaker 2: of the fourth Yeah, like Neil Howe's book, right? So when you've got a fourth turning, all of this stuff happening, who can be the shining knight on a on a white horse that comes in to save the day? Right? Well, how about China with the BRICS nations? Right?
• 15:58
  How about them coming up with their own currency? What about governments issuing central bank digital currency, which you and I talked about this on a great interview we had. It was a joint interview with some others where we talked about central bank digital currency. The fact that you can't have somebody invest in or even want a currency that's issued by the federal government because who trusts the government right now? Well, nobody.
• 16:28
  I mean, really. So if they issued a new currency, who's going to trust it? Well, hardly anybody Because cryptocurrency is already its own thing. Private sector cryptocurrency, you know, Coinbase, FTX, these exchanges where you can do Bitcoin, you can do Dogecoin, you can do whatever you want. Right?
• 16:49
  Well, how about you dismantle the credibility of those? Because now if private sector cryptocurrency looks like it's in failure mode and you don't know who to trust, well, all of a sudden people can say, well, you know what? Maybe I should trust the government again. They do have centralized digital currency. Right?
• 17:09
  The only reason they're going to that is because they need a way out from a collapsing currency system. And so the Fed is going the way of cryptocurrency. Right? There's there's a method to my madness in this story. Right?
• 17:23
  So so the Fed's going to central bank digital currency to try to shore up their problems. Where Russia and China are saying, yeah, we want central bank digital currency too. But what if we had a currency that's backed by gold? What if before we get to that point, we have something that's tangible and that's real that people trust, gold, because most currency have been backed by gold in the past, and say, let's attract all foreign demand for our currency by giving it some kind of a tangible backing. This is where I think this article is all about.
• 18:03
  Long story to get to this answer, right? But I think that the central banks are saying, we've got to gobble up more gold. We got to have a currency that's backed by gold. Now, there's more to it than that article explains. Because earlier this year, there was minutes in the Federal Reserve Board of Governors minutes that said, we're going to revalue gold.
• 18:28
  To mark to the market. Right. Is what Right. Yes. Which is what every central bank around the world basically their gold holdings, whether they have eight tons or 11 tons or four tons of gold, right?
• 18:42
  They market to the market, which means it's valued number of tons that they own times the price per ounce of gold, which is roughly $1,800 an ounce, right? So what does the Federal Reserve value their gold hoard at? It's eight and a half tons. But for whatever stupid reason, they valued it at $42.02 an ounce because that's what they paid for it back in the fifties. Right?
• 19:08
  So so with eight and a half tons at $42.00 2, that gives them $571,000,000,000 worth of gold. Well, what if they just said gold is worth what it's worth rather than $42.02 an ounce? Well, that would put their gold holdings at over 27,000,000,000,000. So here's the thing. They need to do that because central banks around the world are buying up all of this gold to have de facto backing of their currency.
• 19:40
  The US is behind the eight ball by valuing it at $42.2 an ounce. So people have talked a lot about what comes next, right? What does a currency look like after the aftermath of free fall in the markets, right?
• 19:57
  Seth Holehouse: Kurt, before we get to that, I just want to kind of frame my understanding of where we are so far. Then we get into kinda like what this basically, and I want you to see, am I correct in understanding that basically what this looks like is that since, like, the dawn of time, you know, precious metals, especially gold, has been the basis for currencies. Right? Obviously, you had, you know, you know, in the primitive times, people maybe were trading with, you know, necklaces or or tools or livestock or grains. But really, you know, this is an age old mechanism for currency.
• 20:27
  And but what it was, though, is when the corrupt politicians and banksters basically said, look, if we, you know, you can't print gold. You have to dig it out. You have to mine it. You have to process it. You have to, you know, kind of pour it, etcetera.
• 20:42
  So they're saying, well, if we can get our currency off of that gold system, then we can print as much as we want, which gives them insane power. Like, is the reason why America is so powerful militarily around the world because we can just print more money. It's like, hey. You want our trillion dollars to fund an Iraq war? Yeah.
• 20:58
  Just press the button. You know what I mean? And so so, basically, though, that they create these fiat currencies, which which is why Rome ended up falling. One of the key, you know, reasons to fall of Rome, which we we talked about, is that they they took their currency off of that gold standard. They printed it, and eventually, you know, these fiat currencies have a life cycle where they eventually die and collapse.
• 21:18
  And so with what's happening right now, you know, because the the dollar was this global reserve currency, And it's like the governments, the central banks, you know, the Fed, they tricked all these other countries into say, hey, trade us, you know, buy our our our treasury bonds, etcetera, or, you know, give us your gold. There's even exchange for it. And then in '71, that's when Nixon closed that window saying, look, you can no longer exchange your US dollar that you own or you're holding for gold. And so it's almost like that the the western central banks have played this trick on the entire world, this Babylonian money magic. Right?
• 21:57
  Really, like, for a very long time where they've convinced everybody to, like, basically give them gold, and they're gonna give you monopoly money in exchange. And the reason why that monopoly money had values for some time, they made this agreement. They said, okay. Well, you have to use our monopoly money to buy oil. And so, well, we have to buy oil, so we better keep some monopoly money.
• 22:19
  And that's what gave it its value. And so, like, what we see happening right now is, especially now that Biden weaponized the dollar against Russia by kicking them out of the SWITS system, you've got China and Russia leading the charge saying that we can see that your your Western fiat, you know, currency based system is, like, on basically on the verge of collapse. You know? And we we we are at war with your countries. We're at war with NATO, war with America.
• 22:45
  And so they're looking at and saying, okay. Well, we're in and this isn't like they just came about this past year. They've probably been planning this for decades. That, you know, Martin Armstrong knows cycles. I guarantee you that the top advisers in China and Russia, they know cycles just as well, if not better.
• 22:59
  Right? And so they're looking at this and saying, okay. Well, how can we when when the Western banking system nears this period of collapse, how can we accelerate that collapse, right, faster than than the Western banks have their new system ready, which they want to be a CBDC? And so they're basically so what we're going through right now is we're witnessing the collapse of the dollar hegemony of the world, where the whole world is really owned by the US dollar. We're seeing that system collapse and being replaced by a system, which is a gold based system again.
• 23:33
  Right? And so that's why all these central banks why is it that you're not seeing that the in that list? Why is it Turkey, you know, UAE, some of these other countries in The Middle East? Why isn't it America, Canada, The UK that are buying gold? Because they're kinda holding on to this failing system, whereas everyone else is like, look, like, your ship is getting ready to sink, and they're moving everything.
• 23:54
  And so am I correct? Is is that why all these banks and even you, it's not just the banks. It's these these elite private wealth funds that the families, they're buying up gold and silver like never before because they see the writing on the wall that this old system is really, like, in its deathbed, and they're they're kind of prepping and getting out of that. Is that a correct kind of way of framing it all?
• 24:18
  Speaker 2: It's perfect way of framing it because it's what it is. I mean, we have to get out
• 24:23
  Seth Holehouse: of the
• 24:23
  Speaker 2: mindset as a country that just because we're the we're America, we have the US dollar, nothing bad is going to happen to us in the long term. Right? Because people are used to that because we've had a gold standard or we've had a petrodollar standard, you know, since basically everybody who's alive in America has been alive. Right? So they've known nothing else.
• 24:50
  But but here's what I started with. It's like we don't have we didn't have a fiat based currency when you have some kind of tangible backing, whether it's oil by default or gold prior to that. Well, now that China is taking away the the oil demand with the petrodollar through their mechanisms that they're doing, what where does that leave America? It leaves us purely with a fiat based currency where we're no different than who? We're no different than Venezuela.
• 25:20
  Seth Holehouse: Venezuela.
• 25:20
  Speaker 2: We're no different than Argentina. We're no different than Weimar Republic
• 25:25
  Seth Holehouse: Germany. Yep.
• 25:26
  Speaker 2: And Cyprus, then Greece, then Holland way back in the day. I mean, any country that has no tangible backing of their currency, it's human nature. When you need funding for anything and you have a printing press, you just go to the printing press. Because it's easier to do that than to raise taxes to try to generate more revenue. Right?
• 25:48
  So so this is what they've done. But, sadly, we've got this horrible administration right now that's raising taxes, raising interest rates, slow down inflation they're creating, printing money like there's no tomorrow. I mean, it's the worst of all possible scenarios. Now because it's the worst of all possible scenarios, we've got rising prices, wages are decreasing. I mean, look, Seth, This is this is why what China is doing when I we keep referencing this this first article.
• 26:17
  Well, it's actually about central banks around the globe. Right? But who are the ones that they referenced? Kazakhstan, Ubezistan, UAE. Right?
• 26:27
  What are they all doing? Well, they're part of the the kind of, I would call it, the Asian Silk Road economies. Right? They're all tied to China. UAE, Saudi Arabia want them to be part of the BRICS nations, right, with all of their oil demand.
• 26:43
  This is this is an absolute assault and attack against the US dollar. Well, this is why it's such a big deal, because we've gone from gold backing to oil backing to now nothing backing. Right. When this process is finished, which means we heard stories last year of of inflation in Venezuela being 1000000%. It's like, how could that happen?
• 27:08
  Right. Fifty years ago, they were the fourth largest economy in the world because of all their oil. Now they've got a % inflation here. It's not like they're a backwards third world economy. They were once huge because of their oil.
• 27:22
  China knows this, right? They know that if they can't beat America militarily, they can beat us economically. And this is exactly what's happening. They're pulling demand of international banking assets from the West to the East. They also have the world's largest manufacturing country in China.
• 27:49
  They now have the world's largest oil producing country in Saudi Arabia. They have Russia, which is one of the world's largest agricultural and oil producing nations on the planet. So now you've got this bloc, political power bloc, economic power bloc, military power bloc. When you combine the Russian military with the Chinese military plus everybody else that they're bringing in, it almost makes you shiver and say, woof. How can we compete?
• 28:24
  It's hard when we're so decentralized and fractured as Western economies. It's not like America's totally on board with the NATO nations and with the European nations or with Canada and Mexico. And it's like we're all individualized. The BRICS nations are all coalescing their power. And this to me is nothing more than a power grab, which will ultimately release be manifested in a loss of freedoms, in a loss of our economic power, in a loss of jobs as tariffs and trade impacts come into play.
• 29:03
  Right? So China's playing this really good. So is Russia. Right? And I hate to say it because I'm an American.
• 29:13
  I want I want the US dollar to be strong. I want us to have an amazing economy. I want us to flourish and to boom. Right? But but what they're doing is probably eliminating that forever unless there's big unless.
• 29:32
  Right? And that's unless the people of America wake up, we get rid of the central banking system as we know it. We go to a gold backed currency like what Russia is doing, what China is doing, what all these countries are doing, and we compete with them on the same playing field because we still are America, right? Got the smartest people in the world. We've got the most ingenuity in the world.
• 29:54
  We've got a strong military. We've got a vibrant economy. We've got a big infrastructure. To compete then with them, you have to go to the road that they're going down or else we go down the road to surf them. Right?
• 30:07
  So how do you go down the road they're going on? By doing the same thing, having a gold backed currency, maybe going to a quantum financial system, which is a cryptocurrency backed by gold. But the but the common denominator is something that's tangible, something that's real, a currency that's backed with gold. Now, central banks around the globe are seeing this trend, which is why they're all adding after the the kind of the dismantling of the petrodollar system in the early 70s. Why do you think gold purchases are as high as they've ever been since the 70s?
• 30:43
  Because the petrodollar system is being dismantled. Countries are vying for economic superpower status and they're allocating into gold to back their currency. This is where we can get excited, Seth, about investing into something that they're creating the demand for. And when you that'll diminish the supply. When you have low supply and high demand, prices go up.
• 31:08
  Seth Holehouse: Now Kirk, what do you see if when this this transition happens, right, and the Western financial system really kind of starts to meet its end. All these countries are now buying tons and tons of gold at, say, $1,800 an ounce, whatever that is. How do you how do you what what do you see as being the change in gold and silver prices? I know that silver is actually closely tied to gold, and that, you know, this is all gold. Silver is like its its brother that goes everywhere it goes.
• 31:37
  Right? Yeah. And so because we've also, I think we've witnessed that there's been a suppression of these gold and silver prices for a very, very long time. Right? They they haven't really reached their true potential.
• 31:47
  So when this flip happens, and we see the the new dominant reserve currency is a precious metal backed currency, I know this is very speculative, but I don't see the gold and silver prices going down with that. Right?
• 32:00
  Speaker 2: Oh, I I don't. It's actually seemingly impossible for that to happen when you have so much built in demand and already low supply. But here's the thing. It's like we've been talking about gold and gold backed currencies in these countries collapsing. It's like, why Kirk, why don't you invest in gold?
• 32:17
  Well, because the historical ratio between silver and gold is 20 to one. So let's say that the demand for gold causes prices for gold to go up to $3,000 an ounce, which is not quite double from where it is today. Okay? But the ratio between gold and silver gets back to its historical average, which is 20 to one. Three thousand divided by 20 would put silver at $150 an ounce.
• 32:46
  So all that we're doing is we're saying, Okay, this is logical. This is math. Let's go into silver, take advantage of the outperforming growth. I mean, here's what people don't understand, Seth, is like you look at silver over the last twelve weeks, it's up 26%. In twelve weeks, What's gold up?
• 33:08
  Gold is up too, but it's not up 26. Silver is outperforming. You'd be happy with gold. You'd be really happy with silver. I don't care if something's going up or down.
• 33:18
  I want to know why. Right. So then we can allocate into it. Well, pressures that are pushing silver up are the unsustainable debt, this political chaos and war and the cycles that Martin Armstrong talked about, the inflationary pressures, the debt, all of that is causing gold and silver to go up, Seth. And so we allocate into silver because of where the ratio is at 80 to one.
• 33:45
  When we get to 40 to one and and gold is even still at its same price, well, means silver has gone up. We get to 20 to one. Well, let's say gold is is only $3,000 an ounce. That's $150. Right?
• 34:02
  Well, what if it's $5,000 an ounce? I mean, now you're starting to look at, oh man, these prices of silver at $100 1 hundred and 50 dollars an ounce, 205 hundred dollars an ounce. I mean, these numbers that people like Bixweer, Bo Pony are talking about of silver six and fifty thousand dollars to $2,500 an ounce, all of a sudden kind of makes sense. Right. And I don't care what it is.
• 34:32
  I mean, I've been telling everybody I'd rather under promise and over deliver. Right. I think a tripling to quadrupling with the supply chain disruption is a normal number to expect, which is $75 to $100 an ounce in silver. Here's the thing. We lock in those profits in silver when the time is right before we start having currencies and central banks backing their currency with gold.
• 34:59
  And at that point, it's going to be perpetual growth moving forward. You've locked in higher prices in silver to maximize the number of ounces of gold that you own. Then you own gold through the economic transition when currencies are transitioning into a gold backed currency. It's like, oh my word, what did we just do? We just put a smile on our face because we're operating within the trend that's right underneath our nose that you don't even have to speculate about.
• 35:28
  And you keep moving forward with that wisdom and that discernment and being in the right place at the right time, maximizing your return while minimizing your risk. And this is all based on what? The news that we're seeing today. That's what's exciting about it.
• 35:45
  Seth Holehouse: Yeah, really it's arriving. That's for sure. It really is. I mean, people have been talking about the collapse of the dollar for the past, you know, what, ten, fifteen years. A lot of people have been been talking about it probably a little bit longer, you know, people that understand that the cycles, what happens with fiat currencies.
• 36:00
  And so that's here. So, Kirk, I know that we're we're kind of running tight on time. I know that, obviously, folks, if you've watched any of my shows, I promote Kirk's company. I work with Kirk's company when it comes to precious metals. He's someone that I I do trust.
• 36:14
  So and it look, folks, you know, gold and silver, it's up to you. You know, you can do whatever you wanna do with it. It's for me personally, that's if I have any extra money, that's what it's going into. So if folks do wanna reach out to you, Kirk, because I know you guys your team, they do consultations. You really help set people up.
• 36:31
  How do they go about doing that?
• 36:33
  Speaker 2: So just give us a call, (720) 605-3900, and just say, hey, Seth sent me over, right? And we'll get you all squared away. That way you get to us right away. Or you could fill out the form because I know that you feel you have a landing page where people can do the same thing and reach us.
• 36:56
  Seth Holehouse: Yeah. Which is just goldwithseth.com. So goldwithseth.com. Or you can call go ahead and do the phone number one time, Kirk.
• 37:04
  Speaker 2: Seven two zero six zero five three nine zero zero.
• 37:10
  Seth Holehouse: Yeah. And look look the way I look at this is and folks, if you're watching this, if you know someone that you're buying gold from already, price shop. See what see what it's like. You know I mean? It's like, if you have someone you trust, great.
• 37:20
  But there's a lot of people that aren't very trustworthy. And so if you need help making that decision, Kurt can help you. I'd look. I look at gold and silver the same way I look at buying a 50 pound bag of wheat berries or digging a well. You know, I'm trying to protect and secure my future.
• 37:36
  I'm not speculating. I'm not saying, hey. Can I get it become a rich, rich man by doing this? I'm just trying to say, look. I wanna be able to feed my family in a couple years when things really get difficult.
• 37:45
  So, Kirk, thanks again for coming on. It's always great to have you. And any final words for folks before we sign off?
• 37:53
  Speaker 2: I mean, everything that we've talked about is in the news today. I mean, some of the backdrop that I was talking about, I just want to mention it briefly. I know that I've got to run, but I want to take the time to explain it. So household excess savings, the report came out yesterday morning. It will be gone.
• 38:14
  Excess savings will be gone by mid twenty twenty three with the current downturn. What does that mean? Your expenses will equal your income and you have nothing left over. America completely living at the margin. When you don't have any excess, you're not going to spend.
• 38:29
  When you don't spend, stock prices come down. Right? So excuse me, something in my throat. That's what's in front of us right now. That number just came out yesterday.
• 38:41
  What else came out? Wages. The wages, the net income that people are making compared to inflation. Inflation's at 7.7% officially. Wages came down 0.9%.
• 38:56
  So for inflation to not have an impact, wages would have to go up 7.7% to equal inflation. Not only did they not go up, they went down. Right? So so here again, when people are already living at the margin and now their wages are not keeping up with inflation, they're going in the opposite direction, massive negative impact on the stock market, right? So everything that we're talking about is grounded in reality of the reports and the news that's coming out.
• 39:27
  Add that to what Jerome Powell said last week, which amplified what you and I said two weeks ago. We knew he was going to say it. They're going to keep raising rates at a slower rate, though, than than three quarters of a point, which kills the economy, but indefinitely. They're going to keep raising rates until inflation dies. This just caused the stock market to take a huge digger.
• 39:52
  It caused silver to jump up another 7% in a week. Right? So so what we're talking about is your escape from from the the doldrums of a bad economy where your portfolios are decreasing. And we can have a smile on our face. We can grow our portfolios.
• 40:10
  We can thrive. And that's what's exciting about it. And it's all based on the news from yesterday and today. Right? I mean, we're just talking about the news and giving you an option to succeed rather than have a frown on your face and watch your your lifeline or your investments, your retirement, your four zero one k's, your four zero three b's, your IRAs deteriorate because of stupid government policies that we can't control.
• 40:38
  What we can't control is us. That's what I wanna leave people with.
• 40:41
  Seth Holehouse: Perfect. Perfect. Alright. So, again, folks, it's gold with seth.com or (720) 605-3900. thank you so much.
• 40:51
  It's always great having you on. It's always great seeing you and seeing your happy smiling face. I think we should all be smiling these days. It's because there's a lot of reasons to be smiling. So thank you again, and until next time, take care, and god bless.
• 41:04
  Speaker 2: God bless. See you.
• 41:07
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• 42:48
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