Latest / SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT / Rafi Farber: The FACTS are SHOCKING 😳 (Silver Price & Gold)

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Rafi Farber: The FACTS are SHOCKING 😳 (Silver Price & Gold) · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

0:00
As we head towards 100% coverage of the Fed's liabilities with
0:04
gold, then the, the, the gold to silver ratio should descend near
0:10
20 to 1:15 to 1:00. Once we have that, once we have
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let's say silver to silver at 20 to one and, and the Fed's
0:19
balance sheet back by say 8090% by gold, then I, I, I think you
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can then I think it's time to buy stuff with your silver.
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Just buy whatever you can, whatever, whatever is being
0:30
offered. I do think that that you should
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be able to buy a, you know, a nice size house for 75 to 100
0:36
ounces of silver. Today we have a special guest,
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Rafi Farber from the End Game Investor.
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We're going to talk about gold, we're going to talk about silver
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and we're going to talk about the end game.
0:51
Rafi, welcome to Ron's Basement. Great to be here.
0:56
Well, we appreciate you joining us.
0:58
We know you're in Israel. So it's late at night for you,
1:00
early in the morning for me. But my first question, and I
1:04
think a lot of our viewers are curious about this as well.
1:07
What is the end game and are we getting close to the end game?
1:14
Well, the the end game is the end of of gold and silver
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derivatives, at least for this round.
1:21
I see all of the extras pyramids starts with gold and silver.
1:26
That's how the dollar was born. It was born as both a gold and a
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silver derivative right until 1873 when it became a gold
1:32
derivative exclusively, which itself was a a transfer of
1:36
wealth between from silver holders to gold holders.
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And of course the silver holders of the middle class and gold
1:42
holders are the the upper class, the rich.
1:46
So the, the end game is the end of all those derivatives of gold
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and silver, which begins with the dollar and then goes to
1:51
bonds and then goes to equities and, and all the way up to
1:55
crypto currencies. The end of it all.
1:58
And the since money is required for a division of Labor, right?
2:05
You need money to divide the labor that we all know how to
2:07
do. Without prices, without money,
2:09
we wouldn't know what we were doing at any given day.
2:12
We'd wake up and we'd have no idea what to do.
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Nobody would because there's no prices.
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And that's, that's a breakdown of the division of Labor.
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And it's really a zombie apocalypse.
2:19
I'm not saying it's going to happen.
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It's not going to happen, but something close to it is going
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to happen because all of the prices that that we are used to
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that we woke up in the morning this morning and, and we, we
2:32
based ourselves on the price array of yesterday.
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Those are all messed up prices based on them inflating the
2:38
money derivative supply. So it makes everyone think that
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there's more money than there actually is.
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So it it it creates bubbles, it creates very big imbalances in
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the division of Labor. It decreases the quality of
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goods and services, does all the things that what we call
2:52
inflation does. And the end game is the end of
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that. That means that all the
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derivatives are dead. And the only way you can trade
3:00
for a brief period of time is returning to money itself, to
3:03
gold and silver, because otherwise there aren't no prices
3:05
of anything. And so if you look at, if you
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look at any, any hyperinflationary country, you
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know, in the last, let's say 150 years or so, they all their,
3:16
their currency dies and they go back down the pyramid into
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inevitably the US dollar because the dollar is the base currency.
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But that's still a dollar, it's still a gold derivative.
3:27
So the question is what happens when the dollar itself
3:29
hyperinflates? You can't go back to a currency.
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There's no currency to go back to.
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So you have to go back to gold and silver.
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So for a brief period of time we will be trading gold and silver
3:37
coins for our goods and services until we are able to create
3:42
another derivative system, hopefully this time a more
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honest one. I don't I don't have anything
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against derivatives. I have a problem with
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derivatives that are lying about what they represent.
3:51
Yeah, like the US dollar is at at this point based on on
3:55
nothing. When you talk about Extra's
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pyramid, I want to get your opinion on this.
4:01
You know, you look at a gold and silver at the base of that
4:04
pyramid and then everything else, right?
4:07
All the synthetic, I like to call it derivative type
4:10
products. All the debt, all the, all the
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electronic money, all the, all the derivatives themselves, all
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the bonds, all the, you know, just everything up there.
4:22
I guess I don't, I don't even know if you can put stocks and
4:25
all that up there as well. But wouldn't it take just a even
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just a little bit of the synthetic part of that pyramid
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falling apart to make a huge difference in the silver and
4:36
gold market? Like you said, like the whole
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thing doesn't have to collapse. But if you know, several of the
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bricks fall out of the inverted pyramid and find its way back
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into silver and gold, I mean, that alone could have a big
4:51
impact. Is that is that a safe
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statement? I, I, I see what you're saying.
4:56
I would change it a little bit. First of all, I don't think that
5:00
the the dollar, in my way of thinking at least, the dollar is
5:03
not based on nothing. It's based on the assets that
5:05
the Federal Reserve holds. Like the the Federal Reserve's
5:07
balance sheet is literally the other side of the dollar.
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So the dollar is backed by mostly debt, about 93% debt and
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maybe like 7% gold, assuming they have it.
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So the, the, the end game looks like the assets on the, the
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Federal Reserve's balance sheet falling to nothing because they
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can't be paid because the debt can't be paid anymore.
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And then what, what, what has to happen is that the remaining
5:30
assets on the Fed's balance sheet being the gold that's
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still there that compensates for that lost value.
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So then what you end up having is a, a 100% backing of the
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dollar by the remaining gold on the Fed's balance sheet.
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So gold would have to go to something like forty, $50,000 an
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ounce. And there's really no difference
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between that and saying it goes back down to 35 and everything
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else deflates. It's, it's the same thing in the
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end. So it, I, there are going to be
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bricks that fall out of the pyramid.
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I mean, we saw one in March of 2023 at the regional banking
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crisis. That was a brick falling out.
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And before that, the Repocalypse, that was in
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September 2019 when repo rates went to like 10%, that was on
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the brick falling out. And then they rebuild it.
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So in in the end, I do, I do see the entire thing, the entire
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thing collapsing in terms of gold and silver.
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And then it's not like everything becomes worthless
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except the dollar becomes worthless.
6:27
And then all of the stuff on top of the pyramid on top of gold
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and silver becomes denominated in gold and silver oz just by
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force. It's not, it's not like there's
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not going to be, you know, a meeting in Congress or in any
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central, you know, elite institution or whatever three
6:44
letter, three letter acronym they have.
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It's not going to be them deciding, OK, well, I guess it
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didn't work. You have to go back onto gold.
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They're just going to be running for their lives and then the
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market will take us back to gold on a 100% basis.
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This is this is exactly what we saw in 1980.
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It's not like this hasn't happened before.
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It happened in 1980. When the, when the amount of, of
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the, when the liabilities on the Fed's balance sheet we're back
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to 130, a 130% by the gold on the Fed's balance sheet.
7:13
Because gold, gold in 1980 was so high that the the rest of
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the, the, that just the gold in the, on the Fed's balance sheet
7:20
backed all of the dollars that were that were in circulation by
7:25
gold. That, that is a gold standard,
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right? And we're, we're still on a gold
7:29
standard because you can still go to a coin shop and you can
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get gold if you give them $2500 like so it's still backed by
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gold. The minute it isn't the minute
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you the, the, the minute you go to a coin shop and you hand them
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a big wad of cash and I'm like, sorry, we don't take dollars
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anymore. That's it doesn't matter how
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much you give us. That's the end of the gold
7:49
standard. And that's the end of the gold
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standard is really the beginning of it.
7:52
Because then we go back to gold itself, right?
7:54
We don't go back to dollars anymore.
7:55
It's dead. You can start a new currency
7:58
system where you lop off 3 zeros like any other hyperinflationary
8:01
country. But then The thing is in a
8:03
hyperinflationary country that just resets that country.
8:05
But if you're resetting, the dollar resets the price of the
8:08
entire planet, which is going to be a lot more destabilizing, but
8:12
also a lot more cathartic. And it should get rid of the
8:17
various pockets of insanity that we've seen in every sector of
8:21
the economy, whether we're talking about mutilating
8:23
children or a medical industrial complex, military industrial
8:27
complex, All this stuff is because of inflation.
8:30
First Mining Gold is a development company advancing
8:33
two of the largest gold projects in Canada, Spring Pole in
8:38
Ontario and Du Parquet located in Quebec.
8:41
Each already has 5 million ounces of gold reserves, but
8:46
exploration initiatives are under way at both projects to
8:50
find even more gold. First Mining is well financed,
8:54
has zero debt and owns an interest in four additional
8:58
Canadian gold development projects.
9:01
So I heard you say something, Rafi that that I also say that I
9:05
think a lot of people maybe don't agree with or maybe
9:09
understand. And that is I, I think you said
9:12
that we've never really gone off the gold standard.
9:15
And I say that all the time, the gold and silver.
9:18
And I guess I refer back to extras pyramid that they've
9:21
always been there, even though in 1971 Nixon temporarily took
9:26
us off the gold standard. It kind of maybe, maybe a bad
9:31
analogy, but it's kind of like when a bear hibernates, right?
9:34
Gold and silver went into hibernation, but they never
9:38
died. They've always been there.
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And are we, do you feel like we are?
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And I guess we can bring this up to the the current, let's say
9:46
last two to three months where we've seen some big moves in the
9:49
gold and silver price. Are do you feel like gold and
9:52
silver are starting to kind of maybe wake up from their
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hibernation? If you agree with my analogy and
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that and that the world will you use the word by force be forced
10:07
to re recognize the increasing oh validity or power that gold
10:13
and silver have? I don't.
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Know if they have power, they're just they just happen to be.
10:19
I don't, I don't want to be misconstrued for religious thing
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around this subject. I don't think that gold and
10:24
silver have any specific power or anything like that.
10:27
They just happen to be the most liquid commodities in a, in our
10:31
economic system. And they always have been and
10:33
they still are. Look, I remember in my economics
10:37
class in, in high school, the, I didn't understand much of it
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because a lot of it was Kinsey and gobbledygook nonsense.
10:45
And so I kind of just like zoned out.
10:47
But one thing that my teacher did say that stubbornly is that
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economics is the study of scarcity and choice, right?
10:53
There are a limited amount of resources on this planet and you
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can't just create the amount of nothing.
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And that's, that's the, that's the fundamental economic lesson,
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at least of the story of the Garden of Eden, right?
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Got kicked out of paradise and now work is going to be hard.
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It's not, it's not going to be just us picking fruit from trees
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and, and, you know, just enjoying ourselves and consuming
11:13
where we're going to have to work.
11:15
So the whole idea of inflation that you can create in monetary
11:19
units and just, and, and that itself somehow increases
11:24
productivity. Like, what is it that doesn't
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make any sense in order to you have to create stuff in order
11:31
for wealth to be created. Money is just a way for of
11:33
accounting for it. And you can, you can lie about
11:36
how much money you have by printing more of it and saying,
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oh, look how much gold and silver I have.
11:40
Now we can, we can make all these investments, but doesn't
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it doesn't make sense. So it, it's it, it goes against
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the whole story of the garden of Eden and and the expulsion from
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paradise. It goes against the definition
11:53
of economics. The study of scarcity intro is
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if you can print digital units of nothing and that increases
11:58
wealth, well, then there is no scarcity because if you can just
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keep creating units, you can keep creating wealth.
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And then there's no such thing as scarcity anymore.
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And we just, we're back in paradise.
12:07
That that's, that's ridiculous. We're not, we're in the real
12:10
world. So, so in terms of the world
12:16
waking up from hibernation, I don't, I don't think that's you
12:21
could you could look at any isolated move in gold and silver
12:24
and going up and say, oh, the world's waking up now I've been
12:29
in I've been in this for like, you know, since 2008 and
12:33
watching the movies of gold and silver.
12:34
And you think that every every type of world's gonna understand
12:36
now they don't understand now. I don't think we're I don't
12:40
think we're there yet. What I'm looking for is
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something close to 1980 where we had a 100% backing of all the
12:47
Fed's liabilities buy gold. So we're headed to somewhere
12:51
around 30-40 fifty thousand, depending on how big the Fed's
12:55
balance sheet gets when we get there.
12:56
I know the world has woken up and that's the only way to go.
13:00
There's nowhere else to go. Yeah, yeah, You know, you, you
13:03
said something. I, I might, one of my props
13:06
here, my handy, you know, paper $1.00 bill.
13:09
But I think a lot of silver and gold investors, enthusiasts, we,
13:15
we sometimes, you know, forget about the fundamental fact, like
13:18
you said, there's only so much silver, there's only so much
13:22
gold on the planet. And these things as we know,
13:26
where I can be basically printed into Infinity.
13:30
And while they haven't been printed into Infinity yet,
13:33
they're getting pretty darn close.
13:35
They're working in that, in that direction.
13:37
And at the end of the day, am I correct in saying like, no
13:41
matter, no matter how you slice it or dice it, right,
13:45
mathematics shows no forgiveness on the altar of truth.
13:48
The more of these you print, the less valuable they'll become.
13:53
And you just can't print silver and gold.
13:57
That's, that's true on a general, on a, on a general
14:03
step, long term process, right? The more dollars you print, the,
14:08
the, the less they'll be worth. I mean, but theoretically it's
14:12
not necessarily true in every case.
14:14
Because if you, if you produce more stuff, if you produce stuff
14:17
faster than you produce dollars, then the purchasing power of the
14:21
dollar will still go higher. And that's, that's the whole
14:23
idea of how the, the state wants inflation to really work, right?
14:26
They want, they want us to produce more stuff faster than
14:30
they produce dollars in order to bid it away from us so that
14:34
we're being stolen from, but we don't notice it, right?
14:37
The, the, the analogy that I, that I come back to is the, the
14:40
apple tree in your backyard. If you're growing apples and
14:43
you, and it's really, really productive tree and your
14:45
neighbors like swiping a few apples from you every night.
14:48
But if, if they're still growing, you're not going to
14:50
notice it. So your, your neighbor gets to
14:52
pilfer from you without you noticing and you're not going to
14:54
fight them. But then eventually your
14:56
neighbor invites his friends over and his, his government,
14:58
right? His government gets a lot bigger
15:00
and starts stealing all of your apples.
15:02
And you start to notice that you're losing stuff.
15:04
And you know, it's your life is getting worse.
15:06
And since the state cannot stop itself from growing, they can't,
15:10
it's not like they, they don't even have an option to do that,
15:13
right? It's not like there is this
15:14
theoretical good government that can stop growing itself on, on a
15:19
Fiat system. The Fiat system that we have now
15:22
necessitates government growth because the, the way they, the
15:27
way that money is printed is that the Fed buys bonds and when
15:31
they buy bonds, they buy government debt.
15:33
So the, the, the, the government has to spend that money into the
15:37
economy in order for the Fed to print money in order to keep the
15:40
Fiat system alive. So the, the, you know, we can
15:43
talk about, you know, right wing conserve fiscal conservatives or
15:46
liberals, and one of them is better than the other.
15:48
I don't think so. They just spend their money on
15:51
different things. You know, the conservatives
15:53
spend it on war and funding Israel and Ukraine, which I
15:56
resent. You know, even even as an
15:58
Israeli, I don't want any of your money.
15:59
I think it's horrible for both of us and Ukraine even worse.
16:05
And then the liberals, they just spend their money on domestic
16:07
crap. It's but, but they, they all,
16:09
they all spend it right. And, and if it, if it comes to
16:12
the point where somebody balances the budget, you're
16:14
gonna have a banking crisis. So, so the, the, The thing is,
16:19
you have to get off the Fiat money.
16:20
The Fiat money is the problem, which means we're going to have
16:23
to cause a major, major crash of the entire banking system and
16:27
we're going to have to live through that.
16:28
There is no escaping that. There's no solution that will
16:31
prevent the worst consequences from happening.
16:34
All you can do is protect yourself with real money and
16:37
family, insane people, and a community that you can surround
16:40
yourself with, with people that at least have a decent sense of
16:43
morality. Yeah, wow.
16:46
Thank you, Rafi. Great, great commentary.
16:49
If we if we come back to what's been going on recently in the
16:54
gold and silver market, gold obviously has been breaking out
16:58
the new all time highs, silver doing well, I think $28.65 on
17:04
Friday. Any general thoughts are you,
17:07
I'm hearing a lot of people say that this rally that we had in
17:11
gold and then now this, you know, kind of late developing
17:15
ketchup that silver's been doing that it feels different this
17:19
time. Any any thoughts from your
17:20
perspective on what you're seeing when you look at the gold
17:23
silver price I. Don't know, when people say it
17:28
feels different this time, it's usually, you know, feeding into
17:31
their own emotions and and reflecting back.
17:34
It's hard to remember exactly what you felt like during the
17:36
last silver Out gold rally. What was anybody really feeling
17:39
like in 2011? What were people really feeling
17:41
like in 2020? Or, you know, August 2020 when
17:43
gold passed $2000 for the first time.
17:47
It certainly felt apocalyptic, like we were losing our minds,
17:50
locking down the entire planet, you know, for reasons that I
17:53
don't want to go into. And that that was, you know, one
17:57
of the most terrifying times in my life.
17:58
I fought that in very risky ways and I never want to go back
18:02
there again. So I mean, this is different.
18:06
I mean, it's a lot calmer now, at least compared to 2020.
18:10
But but now like, you know, they're bombs falling fairly
18:13
close to me. So there's that.
18:14
But at least that. But at least, you know, those
18:16
those risks I understand, like I understand the risk of bombs
18:19
falling. Like, I get how those are
18:21
harmful, but you know, the whole medical thing that happened in
18:24
2020, I didn't, I didn't understand what, what, what was
18:27
going on there other than just like scary stuff.
18:30
So it even if it feels different this time, it's best not to
18:36
indulge in those emotions. Oh, it feels different this
18:39
time. Therefore, I'm gonna go all in.
18:40
I still think ahead of us is going to be one more
18:43
deflationary panic because the Fed still isn't printing money
18:47
and they haven't been printing money since 2021.
18:50
So the money supply, meaning the dollar supply has been falling
18:53
since 2021. They're going into more and more
18:57
and more debt with a, with a smaller and smaller and smaller
19:00
monetary base since 2020. That's them shrinking their
19:03
balance sheet. So eventually a smaller monetary
19:05
base and more debt, eventually you're going to hit some kind of
19:08
deflationary crash like we saw in 2019 with the Repocalypse.
19:12
And, and that is going to cause the Fed to print something like
19:16
5-6 trillion dollars in a few days.
19:18
It's going to be something like that and that I think is going
19:21
to, is going to be when gold and silver go vertical.
19:24
I try not to time that. I don't encourage people to try
19:27
to wait for that to happen because when it does happen,
19:29
it's going to freak everybody out.
19:31
Just like in 2020 when, when gold fell, sorry from about
19:35
let's what was it 1800 to 1450? It felt like, it felt like, you
19:39
know, it was over for gold. Silver fell to like $11.00 or
19:43
something. Everyone was panicking, but
19:45
really, gold prices were following the least of any other
19:49
prices, excluding consumer prices, right?
19:52
They were following the least of any other asset.
19:54
And it was that point that gold was at its high in real terms,
19:56
all time high that we haven't even gotten close to.
19:59
So, so just be careful. We should be having one more
20:03
round of deflationary panic at some point soon.
20:06
And then once the Fed responds to that it'll it should be over
20:10
in a few months. Interesting.
20:12
Rafi, do you mind if we talk about Fortuna Silver for one
20:16
moment? I know it's a a company that you
20:18
follow. I hear you talk about you do a
20:20
weekly video for arcade economics.
20:23
Fortuna Silver right there. They sponsor my channel to big.
20:28
It's a stock that I own in Full disclosure, but I'd like to get
20:32
some general thoughts from you when when you think about
20:36
Fortuna, the stock's done pretty well lately.
20:39
Any any thoughts that you want to share with our audience about
20:43
what you're seeing going on with Fortuna right now?
20:46
And then I'll give my my thoughts as well.
20:49
Well, first of all, what I like about them is that I know the
20:51
people in charge of it and I like, and, and the, the group of
20:55
sponsors that they have are trustworthy.
20:58
Your, your, yourself included. And, and Chris, I know him
21:01
personally and he, he wouldn't affiliate himself with companies
21:04
that are, you know, anything near pump and dump or anything
21:07
like that or shady in any way. And, and I know Jorge Canoza and
21:11
some of the staff there and, and they seem to be like very hard
21:14
working, serious people. And I think that's the most
21:17
important thing when you're investing in a company,
21:18
especially something that's potentially as opaque as a mine
21:21
as as a mining stock, right? How much of us in the gold and
21:24
silver community really understand geology?
21:26
I don't like, you know, almost none of us do.
21:31
And you know, when, whenever I see these numbers, it kind of
21:34
just like makes my head spin. So I really just have to see how
21:37
much they're producing, how much debt they have, the people in
21:40
charge. And I know all that.
21:42
And the other thing I like about Fortuna is, is that they're,
21:46
they're not afraid. They, they, they haven't been
21:48
afraid to just, you know, change their, their, their business.
21:51
They went, they went heavily into gold.
21:53
Was it two years ago? They made a, they made this deal
21:55
with rocks gold, and that has been very productive.
21:59
And, and you know, as much as I like silver and I do, it's hard,
22:04
it's hard to hang on to a company that is dedicated
22:09
strictly to silver as a primary producer because like it or not,
22:12
silver's very volatile. And, and, and if you want to
22:16
hold on to it without panicking and, you know, miners are
22:19
volatile either way, you know, so if you're going to pure
22:23
silver miner, it's going to be hard.
22:24
It's, I'm not saying it's not going to go up, but there's
22:27
going to be very, very volatile times.
22:29
And and then moving into gold and succeeding there in West
22:33
Africa and having a new jurisdiction there.
22:36
I think it's a very smart move for them.
22:38
And it's, it's paid off, I think.
22:40
And I think I think they're going to do very well and I'm
22:44
comfortable holding them. So yeah.
22:46
Thank you. Yeah, I, I would agree with you.
22:48
The people there that I deal with, Adam Circus, Carlos and of
22:54
course, Jorge, high quality people.
22:57
I also like to think about the fact that Jorge has been
23:01
building that company for almost 20 years at this point.
23:04
And he's methodically, I mean, built mines now 5 operating
23:09
mines, all of which have been successful, right?
23:12
Obviously starting in Latin America.
23:14
And then as you said, I think it was 2021.
23:18
They, they, they purchased rocks gold and moved into West Africa
23:21
with a, a mine in Burkina Faso and their newest Seguela mine in
23:27
Cote d'Ivoire, which is producing, I mean, they built
23:30
that mine, they've built these big mines.
23:33
And the Seguela mine, last I'd heard was producing like 2025%
23:38
above its name, nameplate capacity.
23:41
The other thing, and you mentioned this, Jorge always
23:44
talks about a fortress. I'm an old accountant, right?
23:47
So I'm always looking at the balance sheet and cash flows and
23:50
Jorge always talks about a fortress balance sheet, right?
23:53
A company that can withstand any market environment.
23:57
And fortunately for all of us right now with these higher gold
24:01
prices and silver prices, they're in an environment where
24:05
he likes to use the word harvest, right?
24:07
They, they're harvesting some, some good gains based upon smart
24:13
decisions that they, that they'd made in the past.
24:15
And I made a little list here just just recently when they
24:19
announced their first quarter production numbers, they paid
24:22
off more debt. I think in the last like nine
24:25
months, they've made $340,000,000 debt repayments,
24:30
like 120 million altogether. And they already had a, a
24:34
relatively low debt level to start with.
24:36
They're buying back shares. I think they bought back a
24:39
million shares during the first quarter and they bought back 1/2
24:43
of the royalty I think it was Franco Nevada has on their
24:47
Seguela mine in West Africa. So they're generating a lot of
24:52
cash and it just, it feels like to me that that Jorge and the
24:57
executive team there, but they're a little different than
25:00
what you see in a lot of companies now.
25:02
I, I think Jorge makes actually makes long term decisions, you
25:07
know, doesn't go just quarter by quarter.
25:09
Of course, you know, they, they keep a, a tight focus on what's
25:12
going on day-to-day in the business, but is willing to make
25:16
and I think the rocks gold decision, which has proven to be
25:20
very wise, is a good example. He's willing to, to make, you
25:24
know, long term decisions that he thinks will benefit the
25:28
company. And maybe that's why they've why
25:30
they've done so well for the last 20 years.
25:32
Thank you for asking that. You know, another question that
25:36
I've had from a couple of people, Rafi, that they wanted
25:39
me to ask you was obviously you're joining us from Israel.
25:43
There's a lot of tension, to say the least in the Middle East
25:46
right now. What's life like in Israel right
25:49
now? It's very frustrating, a little
25:53
bit scary. There's no faith.
25:56
There's no faith in the we all know this is a show.
26:01
We look, I don't, I don't know what exactly happened on
26:04
Shminyatzarit. What, what you know is October
26:06
7th, it was a Jewish holiday. They chose to attack us on a, on
26:11
a, a major holiday. I, I, I can't explain to you why
26:18
the Army didn't do anything for 8 hours.
26:21
I don't understand. You know, I have some theories,
26:27
some ideas, but it's not like anybody in this country trusts
26:31
our government to protect us even in the most basic sense
26:33
anymore. And we're, we're hamstrung
26:37
because, because unfortunately, we rely since 1967 on American
26:41
weapons. And it should never, it should
26:43
never have been that way. It, it creates resentment in
26:47
both countries. You know, if you think the, the
26:50
last war that Israel actually actually really won, the last
26:53
war that we won was in 1967 and we didn't get a dime from
26:57
America. We didn't.
26:59
And that was that was the war that we won.
27:01
Why? Because we were, we were, our
27:03
backs were to the wall and we decided that we had to, we had
27:06
to attack or we would be annihilated.
27:09
And we did. But now, now everything is now.
27:12
Now, we can't really do anything and anything that we do, we're
27:16
accused of war crimes or whatever.
27:18
But like, you know, everybody around us wants to kill us all.
27:22
So what are we supposed to do? It's a, it's a, it's an
27:24
impossible situation where I think the only solution to it is
27:28
going to be the collapse of the dollar that will cut us off from
27:32
American money once and for all. And then we'll be, we'll be in
27:35
an existential situation where we'll have to decide what the
27:37
hell are we going to do about it.
27:39
And I don't have any fear at all that the Jewish people are going
27:41
to be annihilated. That is, that's impossible.
27:43
It's a metaphysical impossibility.
27:47
We, our, our greatest victories come when we have no choice.
27:50
And we're going to get to that. We're we're going to get there
27:53
when there's no more money to give us.
27:55
And then we have to decide what to do.
27:58
And Netanyahu can't do it. None of the people in charge
28:01
have any. They, they, they're all
28:03
responsible for October 7th for not doing anything for eight
28:05
hours. What Iran lobs like 300 missiles
28:08
at us at like a snail's pace, giving us two or three days
28:11
notice as if this is some kind of stupid show.
28:13
And then Oh well, we shot them down.
28:15
Yay. We're so great and wonderful and
28:16
amazing. It's all stupid play by both
28:20
sides that that are, that are trying to like, you know, gin up
28:24
their populations as you know how, how, how amazing they are.
28:27
It's it's all just a waste of time and money.
28:31
Yeah, you know, I I agree with you.
28:33
And I told my wife Susie it when it when it happened, I said this
28:37
has to be the most telegraphed attack.
28:40
It's like it's not. I mean, it's how do I say like
28:43
if you I mean it was like it was like made for TVI guess is to a
28:48
certain and it's not we're dealing with human lives, right.
28:52
So it's not, I don't want to minimize the impact of this, but
28:56
it almost felt like it was made for TV And I think, like you
28:59
said, maybe made for show and, and and I don't know.
29:04
It's are, are people scared? Are I mean, are people in
29:09
Israel, do you think fearful about about what's going?
29:13
I mean, obviously to 1° or another, but are are or you, you
29:17
seem rather calm to me about the whole situation.
29:21
It's. Not that I'm, it's not that I'm
29:22
scared. I like, I'm more scared of the
29:24
tax authorities than I am of Iran.
29:26
I'm. Not.
29:29
I'm not, I'm not, I'm not scared that we're going to be
29:32
annihilated or something like that.
29:34
I'm just, I'm just incredibly frustrated and uneasy because
29:39
our, our leaders are just so spectacularly incompetent that
29:46
that and there's, there's no way to vote them out because there's
29:49
no replacements for them. It's not like anyone who's in
29:52
the Knesset now would be better than Netanyahu.
29:54
So you know what, what was, there's no political solutions
29:58
to any of this. So it's just, it's just a
30:00
feeling of just being stuck and, and things, and things just
30:05
getting worse. But I know that, that, you know,
30:08
things that we're, we're gonna let loose at some point because,
30:12
you know, speaking from my own religious perspective, you can
30:15
agree or disagree with it. Like we, we came back to our
30:18
homeland after, after Rome, you know, expelled us after 2000
30:23
years. We didn't, this didn't happen by
30:25
accident and we're not leaving again.
30:28
And this is it. And it's, it's going to get
30:30
rough. It's going to get very rough.
30:31
And a, a lot of people are unfortunately going to die.
30:33
And I don't know if I'm going to be one of those, but I'm not
30:36
leaving. I'm much more scared of America
30:38
now than I am being here. Because when the, when the, when
30:42
the dollar does collapse, I don't see anything else holding
30:47
America together other than spending.
30:49
America's going to break apart into how many pieces, I don't
30:52
know. But, but Israel, we're not going
30:55
to break apart again. We're like a, we're like a very
30:58
dysfunctional family. But when we're under attack, we
31:01
do fight together, even though we hate each other.
31:05
It's more like how a family hates each other, hates itself.
31:07
Like we, we kind of like get over that and then move forward.
31:11
So we're, we're going to head to that when the dollar collapses.
31:13
And what happens after that I don't know.
31:15
Thank you. Thanks for that insight, Rafi,
31:18
because I think most of our viewers, let's say in the United
31:21
States don't have a, you know, don't really have a good feel as
31:25
to what is going on in Israel. We don't really get, I mean,
31:30
our, our media is so dumbed down.
31:35
I would say that, you know, unless you want to talk about
31:39
Donald Trump or Joe Biden, we don't really get a feel for
31:42
what's going on in the rest of the world.
31:44
So I appreciate you sharing that with me.
31:46
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31:50
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31:54
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32:03
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32:08
will too. And be sure to tell them that
32:11
you're from Ron's basement. I want to bring everybody out to
32:15
a place where they can learn more about Rafi, the in game
32:18
investor on substack.com. Rafi, you want to tell people
32:23
kind of what you offer here and, and, and how they might be able
32:27
to learn more about you and your your writings.
32:31
Yeah, sure. So I, I my specialty here.
32:35
I guess my strong point is that I, I write everything from a
32:38
logical progression. I try to get the people to
32:42
recognize logically what the end game is and how the various
32:45
movements in the bank system in the monetary system are are
32:49
leading to it. So you understand it from an
32:51
intellectual perspective, right? If you, if you understand what's
32:54
going on with your in your mind and you get the structure of it,
32:59
then then crazy movements are not going to throw you off The,
33:03
the, the like a, a, a danger to, to being part of the end game or
33:08
investing in the end game, investing in the end of the
33:10
dollar is that, that if you, if you don't quite get what's going
33:15
on structurally, like in terms of the pyramid, then you can
33:19
get, you can get caught up in things like Bitcoin.
33:23
I'm not, I'm not totally against Bitcoin.
33:25
I think Bitcoin should be legal. I think people should be able to
33:28
use it if they want to, but I think it's a distraction.
33:32
And if you have like in very volatile days where gold and
33:37
silver are way down and you have this final deflationary crash,
33:40
you could throw a lot of people off if they don't understand
33:44
what's going on. But if you, if you understand
33:47
that that there is no escaping this, that gold and silver
33:50
literally are money right now, that the only reason the dollar
33:54
has value right now is because it is still exchangeable for
33:56
some amount of gold. If you understand that
33:58
principle, you won't be thrown off.
34:01
And so you have to have a certain amount of cash in order
34:04
to stay emotionally balanced and you have to have a certain
34:06
amount of gold in case the end game comes tomorrow.
34:10
But no, I, I, I, I keep at this from an intellectual,
34:16
philosophical standpoint and less of a technical trading up
34:21
and down my price targets to keep people mentally balanced
34:26
through what is probably going to be one of the most
34:31
destabilizing events financially of our lives or probably the
34:34
most. Yeah, yeah.
34:37
Thank you. Rafi, can.
34:38
Do you have time for one more question 1 short question?
34:43
I think at one point, I remember you mentioning that, that, that
34:48
silver investors in particular may have a little window of
34:52
opportunity to exchange their silver at some point in the
34:57
future for other real assets. And correct me if I'm wrong, but
35:00
I think you even mentioned like, hey, at some point the
35:03
possibility exists that we could see a little window where you
35:06
could trade, let's say a couple 100 ounces of silver for a small
35:11
house. Do do do you think that's still
35:15
in the cards potentially for us? Yes, I, I do, I do think that's
35:19
still in the cards. It's not going to last very
35:21
long. But I can tell you that, that
35:23
once, once we have the Fed's liabilities on its balance sheet
35:29
backed close to 100% by gold, which is what happened in 1980,
35:32
went even higher than that 230% for a day.
35:35
I, I wouldn't, I wouldn't, you know, wait for 130% and then
35:39
then buy a house. Like as we head towards 100%
35:42
coverage of the Fed's liabilities with gold, then the,
35:47
the, the gold to silver ratio should descend near 20 to 1:15
35:51
to 1:00. Once we have that, once we have
35:54
let's say silver to silver at 20 to one and, and the Fed's
35:59
balance sheet back by say 8090% by gold, then I, I, I think you
36:03
can then I think it's time to buy stuff with your silver.
36:06
Just buy, buy whatever you can, whatever, whatever is being
36:10
offered. I do think that that you should
36:12
be able to buy a, you know, a nice size house for 75 to 100
36:16
ounces of silver, which is not unprecedented.
36:18
It's not unprecedented. It's happened before, but it's
36:21
very brief when it happens. And it's not, it's not that it's
36:24
not the fact that silver is so valuable all of a sudden that
36:27
everybody wants silver and therefore they'll they'll
36:29
wouldn't sell a house to you. It's the fact is that once once
36:34
everyone who has dollars and all these derivatives of gold and
36:36
silver and they realize that they're actually worthless, what
36:39
they have to do in order to re establish a division of Labor is
36:41
offer their real assets to you at such spectacular rates to
36:45
real money. So if they have some money so
36:47
they can plug back into the division of Labor because
36:48
otherwise there isn't one. So they they need money.
36:52
Once an economy without money needs first and foremost, money.
36:57
It's more important than food. It's more important than water
37:00
because, you know, it's not like there isn't any food and water
37:03
like you don't, you don't have famines because there's no food.
37:07
You have famines because there's no money to divide food among
37:10
the people. That's the problem.
37:14
You you had a video you made on Friday on the Arcadia Economics
37:19
channel where you you talked about this prospect of the gold
37:23
to silver ratio dropping down to this 20 ish range.
37:28
Am I correct in remembering that that actually happened in 1980,
37:32
that the gold to silver ratio got to that level when we had
37:35
the $50 top in the silver? It's happened more than that.
37:39
I mean, even even, sorry, even in 19701971, Fort Nixon closed
37:45
the gold window, which is really just him just like saying I'm
37:47
not going to pay anymore. You know, just to just to
37:51
comment on that for a second. Like he didn't really close the
37:53
gold window because the central banks wanted gold instead of
37:56
their dollars. They could have just bought it
37:58
on the free market instead at at a higher price than 35 because
38:01
they didn't, they didn't do that because they wanted to maintain
38:03
the the system. But yeah, so in 1970 to 1971,
38:08
silver was 20 to one and it hit around around 15 to one in
38:11
January 1980, it hit 15 to one in 1968.
38:15
Also with the fall of the London Gold Pool, it hit 15 to one in
38:18
1919 after World War One. And it was 15 to one for like
38:21
200 years from like 1700 to 1950, that that's that's where
38:25
it was. So maybe not, maybe not 1950,
38:29
maybe like, no, sorry, not 1950 from like 1700 to 1873.
38:33
And then it got wobbly. So that's that.
38:35
That's the natural monetary ratio, and that's where it
38:38
should go. Back when, when gold derivatives
38:41
no longer are no longer trusted, you can't use a gold.
38:45
The reason gold derivatives are so good is because they divide
38:48
gold into retail amounts. You can take $1.00 and divide
38:50
gold into 2400 pieces and buy a pack of gum or whatever it is.
38:55
When those no longer work, you can't use them anymore, so you
38:59
have to use silver. And that's what we're waiting
39:01
for. That's the end game.
39:03
Yeah. And I, and I'll throw in one
39:04
final comment. At $2400 gold, if we had a 20 to
39:09
1 gold to silver ratio, because I have a degree in advance
39:13
degree in accounting, I was able to figure out that would be a
39:16
$120.00 silver today. If we did, if you know, if we
39:20
were living in an environment with what has like, as you said,
39:25
Rafi historically happened that we have a, a, a gold to silver
39:28
ratio somewhere in the 20 range. Rafi, did I forget to ask you
39:33
anything? Did I forget you?
39:34
Anything more you want to mention before we bid farewell
39:38
to our viewer? You can check me out on YouTube,
39:41
on my channel, it's just called, just my name, Rafi Farber.
39:44
I try to make things funny, try to put humor in all my stuff
39:47
just because it keeps me sane and, you know, without laughing
39:51
at everything that's going on. I would cry so.
39:54
Well, I'll put a link in the description of this video to
39:58
Rafi's sub stack which we visited.
40:01
And also Rafi's YouTube channel as well.
40:05
And then I think on it seems like every Friday, you have the
40:08
video that comes out with Chris Marcus from Arcadia Economics as
40:14
well. And it's a video that I never
40:16
missed. So Rafi, you're very well liked,
40:20
very popular within the gold and silver community.
40:23
I know many of my viewers on my channel are huge, huge fans of
40:28
yours. I want to say thank you to AI.
40:31
Think a mutual subscriber that we have Cliff who helped kind of
40:35
facilitate our meeting. It's been a big honor for me to
40:38
have you on. I, like I said, I'll say it one
40:40
more time. I just really enjoy listening to
40:43
you and I learned from you pretty much every week something
40:47
interesting. And from a selfish perspective,
40:50
it gives me something to talk about on my channel.
40:52
So thank you, Rafi, and we'll be looking, looking forward to
40:58
seeing you again soon. Thanks for having me, Ron.