The World is Leaving the Dollar with Andy Schectman

Dollars have proven to be unsafe for depositors in the states and central banks around the world. Instead, central banks are buying more gold than they have since right before the US defaulted on its gold standard obligations. And right now presents a unique opportunity to store your wealth in gold.

Get your gold and silver from my friends at Miles Franklin
Email [e-mail] and tell them, Joe Brown, from Heresy Financial sent you
http://www.milesfranklin.com

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
I got a brother. All right. Well, thank you so

(00:08):
much Andy for joining me today. I'm really excited to
have this conversation with you, Joe. Thanks for having me, buddy.
I'm really thrilled to be here. I was very happy
to get the invite and been looking forward to it,
So thanks for having me. Absolutely, I am. We should
have done this a long time ago. We've known each
other for a while now, and I'm glad we finally
got the opportunity here. The first I just wanted to

(00:33):
kind of lead in with this story because I think
it's funny. The first time I was introduced to you
was your dad after he had watched my YouTube video
about the carnivore diet, and so I just thought that
was kind of funny. I was curious if he was
if he's still doing that, or I had kept the weight.
He kept the weight off. I think you know he's
he's the kind of guy that he could literally eat

(00:57):
a chicken leg for breakfast, for lunch and for dinner,
and a steak for a snack, So the carnivore diet
wasn't a problem for him. But I think that was
kind of a fad for him. I think he was
more more impressed with your transformation, your story, the way
you communicated it, and the fact that he reached out
to you and you responded in an in a world

(01:20):
that is so impersonal. I think he was really impressed
by that. And you know, something that's been one of
the keys to my success too, is is you know,
we're not your traditional company that is online and impersonal.
Weave for thirty three years have been all about relationships
and when you're watching someone on YouTube, you're impressed with

(01:40):
their presentation and their story and they reply to you.
I think he was really taken back by that. So
that's that's how he kind of I think looked at
it and and uh had me reach out to you
at the same time. And I will be happy to
admit that you actually got back to me too, So
you know, kudos to you for that. No, that's great.

(02:01):
I was glad to meet you and get introduced to
you your business. Like you mentioned when I first heard,
you know, before we kind of get into the topic
of today, I just it's so impressive when I first
heard that, with how long you guys have been doing
business and the lack of customer complaints, it's just unheard of.

(02:22):
I appreciate that. Yeah, we started on a Wing and
a Prayer thirty three years ago. My father's middle name
is Miles, and his best friend who lent US sixty
thousand dollars in nineteen eighty nine, his middle name was Franklin.
And in a one room office, the most unlikely cast
of characters to succeed, and we did. We recently eclipsed

(02:44):
eight billion in sales. We have never had a material
customer complaint. We are one of only twenty seven us
MINT authorized resellers in the world, and Honor were very,
very proud of and even though I moved to Florida
a year and a half ago, where I have had
a sad Light office for about eleven years, we left
our corporate entity in the state of Minnesota. It's the

(03:05):
only state in America that regulates what is a federally
nonregulated industry. So we're very proud of our reputation of
our us MINT accreditation, but the state of Minnesota doesn't care,
and we have to be licensed, we have to be bonded,
and we have to be background checked and every single year.
As a result, in the majority of the companies in
America won't do business in the state of Minnesota because

(03:28):
of this. We embrace it. It holds us to a
higher standard. So yeah, it's it's been a great run.
And I look back and pinch myself that I am
where I am, starting from literally nothing as a nineteen
year old kid, and here we are. Yeah, I love

(03:48):
that story. And getting into kind of what is going
on today in the business, I mean, this is kind
of a crazy time. So just for some context, within
the last couple of weeks, obviously right now, like banks
are collapsing, bailouts are happening for depositors. Before that, we
saw there was one of the might be one of

(04:10):
the largest scandals in the uh you know, the golden
and silver industry in a very long time, with the
person Mint deluding their gold um and a few years
ago this was I don't I think it was twenty
fifteen or so. UM China had been China had been
shipping out. I think it was tungsten uh that was

(04:34):
that had gold leaf on it as gold bars. So
this is an industry that right now it's kind of
kind of choppy. It's been hit with scandals, but also
people are piling in because it's not somebody else's liability,
as long as it's actually real gold. So what's what's
going on right now? Tell us about the give us
to the inside scoop. Yeah, well, I mean the industry
just like anything, just like a relationship, it's a foundation

(04:57):
of trust. And if you betrayed that trust. Even in
the the case of the Perth min and I would
argue that, you know, they kind of got the raw
end on this one. They've been beaten up a lot
over the last couple of years for various reasons. But
in this case, the bars never did drop below four
nine fine pure, but they did have too much silver

(05:20):
in them for the Shanghai Exchange standards. But I think
it fits part and parcel with this industry, and this
industry certainly has had somewhat of a checkered pass. There's
been in the last six or seven years. There was
you know, north A two hundred million dollars stolen by companies,

(05:42):
always the online cheap companies who end up stealing money.
It was tolving, it was bully undirect, it was Northwest
Territorial meant big big companies amongst others. That kind of
put a stain on this industry. I think it's a
shame and it's a stigma that we've had to fight
for a very long time, because when I look when
I started in this industry as a basically a twenty

(06:05):
year old kid, it was there was one rule my
dad said to me, in one rule only, he said,
you know, I can deal with that starting a company.
What's that rule, Dad? He says, you need to buy
something every two weeks. I said, okay, if that's the
only rule, I'm down with that. And for thirty three years,
every two weeks I have purchased something. I have never

(06:26):
missed a two week period. I've honored my promise to
my father, even though I owned the company and half
for two decades. He won't fire me anymore. But I
made that promise and I've kept it, and it's the best,
the best gift he's ever given me, the ability to
save and to pay myself first. And when I look
at gold and silver, it means so much to me.

(06:47):
It's not an investment. It's wealth, wealth that I hope
I never need to use, and if so, I'm darn
glad I have it. If not, I give it to
my kids. And so when we have to continually see
these negative worries about fraud or about in this case,
they called it doping of gold or whatnot. Yeah, it's
it's bother some. I do think it's these These are

(07:10):
few and far between, but I think gold and silver
are so very, very very important, and oftentimes the only
media coverage we hear of is of negative stories or
a negative connotation, and I wish it weren't that way,
because I think it really is very important nowadays to

(07:31):
look at gold, and as you mentioned, it is one
of the only assets that is not someone else's liability
simultaneously anyway someone else's liability, and I think in a
world of counterparty risk, a world of contagion, it's never
been more important to look at gold and silver, I think,
for the qualities that they they exude, and in particular

(07:52):
the lack of or the complete dismissal of counterparty risk. Well, so, okay,
so a couple of questions about all that. Number One,
when you say buy something every two weeks, that's personal
that that's not the correct That was just his way
of saying to me, you know, we come from nothing, Joe.
My parents sold their life insurance policies and borrowed sixty

(08:15):
thousand dollars from the guy who helped that's Franklin, the
Franklin and Miles Franklin, and he said, you're not going
to make the same mistakes that I made. If nothing,
you will learn how to save. And it truly was
the best gift that he's ever given me, the ability
to pay myself first, the understanding that if you don't,
you wake up one day and you're fifty two years old,

(08:36):
like I am, in wonder where the hell at all
the time go? And if you don't pay yourself first,
if you don't find a way to get off that wheel,
you never will will. And everyone who I've ever hired, ironically,
one of the things that's need about our companies, we
all the people who work for me go back literally
to childhood. And there's twelve or thirteen of us that

(08:57):
I've been friends with since elementary school, little league, junior
high school, high school, and college. And that's one of
the requisites. You're going to come work for me, You're
going to buy something for yourself every two weeks. And
they all have thanked me up and down, because it's
really easy to not save and to not pay yourself first,
and one of the neat things about gold and silver

(09:18):
is that takes a little bit of a modicum of
effort to liquidate it, to sell it, and having it
put away often is one of the best ways to
preserve your funds because it just disappears and you forget
about it. And I don't know. This systematic accrual every
two weeks honestly has been a godsend to me and

(09:41):
my family, and someday it'll be my kids. And I
think that if I can impress that upon anyone, I
will tell you it is one of the keys to
my peace of mind. I think you're touching on something
that is really widely misunderstood and is the reason why
so many people stay poor because a lot of people

(10:04):
you know, people that I've known, you know. The data
backs us up as well. People will try and implement
good financial habits. One of them usually the first one.
If it's not getting out of debt, it's going to
be trying to save and just as a you know,
an extreme example, you look back at the last three years.

(10:24):
Let's say three years ago, somebody put ten grand in
a bank account to save it for a rainy day,
and let's say, back then, that would have been able
to last them two or three months for their expenses.
Today that will only last them, you know, maybe one
to two months because expenses have gone up. And so
for the last hundred years, our monetary system has turned

(10:48):
saving into losing. And so I really like that you're
using the same language, but you're talking about gold and silver,
which is different than saving in fiat currency, which loses
its purchasing Yeah, I mean I saw great, a great,
great statement. They said, what if Elon Musk got up
on a stage and set a goal of tesla as

(11:10):
to lose two percent per year. Well, you know that's
what the Fed says, the mandate is, and you know,
you can see they're having a hard time doing that.
But you know, if you're losing two percent per year
using the rule of seventy seconds every thirty six years,
your currency has had and so you know, if you
go back and look at the GI life insurance bill
after World War Two, it was ten thousand dollars. When

(11:32):
my father graduated high school, i mean college in nineteen
sixty three, his goal was to have a job that
paid him ten thousand dollars a year. A brand new
Corvette in nineteen seventy four or five was about six
thousand dollars. So when you talk about the value, the
precipitous decline, the insidious decline of dollar bills, it's interesting.

(11:53):
You know, one of the things that people complain about
gold is that it doesn't pay a coupon. Well, first
and foremost, in a in a negative interest rate environment
that we see right now, it's sure beats the heck
out of negative three percent compounding on a ten year
treasury when factored against inflation. I'll take gold paying no
interest any day. But you can go back to nineteen

(12:15):
sixty and I often I use this example before, where
the average price of a house in nineteen sixty was
seventeen thousand dollars and gold was priced at thirty nine
bucks an ounce, And if you do the math, that
works out to like four hundred and thirty five ounces
something in that neighbor. I'm not doing the math here
right now, and you know, so if you had four

(12:36):
hundred and thirty five gold crew grands. In fact, let
me just do it to make it sure. The Census
Bureau told us a house was almost exactly seventeen thousand dollars.
It's four hundred and thirty five ounces. So if you
had four hundred and thirty five crew grands in nineteen
sixty and said should we pay for our house? You
say to your wife with the gold that we were
left by Grandpa IRV and you decide no, you know,

(12:59):
let's stick it under our mattress instead, and where it
earns nothing but dust for the last sixty two years. Well,
the average price of a house right now is let's
call it, four hundred thousand dollars, and gold is eighteen
nineteen hundred dollars. So those four hundred and thirty five
ounces right now, which is are nothing but dust carried

(13:21):
no interest whatsoever, is now worth eight hundred and twenty
six thousand dollars. It buys you two houses, whereas the
sixteen thousand dollars doesn't even or seventeen thousand dollars that
it was worth back then doesn't even buy you, you know,
the furnishings in your house, a couple of couches and
a TV, and you're already past seventeen grand. The point

(13:42):
of it is is that gold is the barometer by
which the value of the currency is measured. It's not
gold that has gone up. It's the value of the
currency that has gone down. And it happens very slowly
with inflation, little by little by little. And of course,
so you could argue we are on a path right
now to much greater inflation, where prices are going to

(14:05):
start to increase much much more. But the idea is,
even if you go back to you know, you go
back to nineteen thirty three, if your grandfather had two boxes.
One box had twenty dollar bills in it, twenty Federal
Reserve notes, and the other box had twenty dollar gold pieces,
which are basically an ounce of gold ten thousand dollars

(14:26):
left for you know, you in two boxes. That ten
thousand dollars is worth squat, but the ten thousand dollars
or five hundred ounces of gold is worth one million dollars. Basically,
the point I'm getting at is that it is the
value of the paper fiat currency backed by nothing, that
continues to lose value. And while gold won't make you wealthy,

(14:48):
it is wealth, and if you own enough of it,
you will be wealthy. But it is something that I
think is a lesson that people need to understand. You
do not buy gold and silver to become wealthy. It
is wealth, and it is wealth that has outlived two
world wars, a German hyper inflation, the Great Depression, every pandemic,
everything the world has ever thrown at it, and it

(15:09):
is the only asset that ever every central bank on
the planet owns, which, by the way, in twenty twenty
two they accumulated more of it, the second most in history,
and more than any time since nineteen sixty seven when
the dollar was backed by gold. The big money, the elite,
the central banks, they understand what gold truly is, and

(15:32):
it's not an investment as we are told taught to believe.
It to me is wealth and that's why I own it.
Wealth that I hope I never need to use. If
I do not, just for an emergency, could be an
opportunity when the dust settles, when interest rates rise and
asset prices fall in terms of finding equilibrium with the
rising interest rates, there will be values. There will be

(15:53):
amazing opportunities to take advantage of into me. That's what
gold and silver are. Wealth that will be there when
you need it for an opportunity, an emergency, or if
not passing on to my children and grandchildren long after
the bills in my wallet are hanging from a frame,
and the Smithsonian as an example of what was gold

(16:14):
and silver will still be immutable wealth. And that, honest
to God, is the reason I own it and how
I look at it and how I try to educate
my clients and the people I talked to on these
types of podcasts as to what it means to me.
That's fantastic. A couple of things that you mentioned that
I want to kind of circle back to. The first
thing you mentioned was the price of housing when you

(16:37):
look at it through the lens of gold, and you know,
part of if we look at you know, nineteen sixty is,
you know, obviously during that time the price of gold
was heavily suppressed because it was pegged to the dollar.
And fast forward a few years and you realize the
real market value of gold, you know, pops into existence.

(16:57):
But even if you start the data from that point,
once the price of gold has popped, and look forward
right now, the ratio of the average single family home
compared to gold is very stable throughout time, and in
fact what happens is it goes down slightly, meaning that

(17:20):
you can purchase it takes less gold to purchase the
same house. But in addition to that, and this is
never because you can't do this data, You can't factor
this in, you know, on a large scale. I mean
maybe you could look at square feet and things like that.
But the house, the single family house today that is
being measured in this data is by very many measures,

(17:40):
way better than the single family houses from nineteen sixty
nineteen seventy. I mean, go over to your grandma's house.
It was built in nineteen fifty, nineteen forty, nineteen sixty,
and then look at the average single family home today.
There's no comparison when you look at the square footage,
when you look at the amenities, when you look at
the technology, the resistance to whether the you know, the
what's the word when the temperature can't come in and

(18:02):
out with the insulation. Yeah yeah, yeah. So from all measures,
it's like, even if that gold only will purchase you
still one single family house just like it would have
sixty years ago. It's a way better house today than
it used to be. So when you look at what

(18:25):
you're seeing is deflation through progress that over time, when
you save your money in real money and sound money
in wealth. Then what you're doing is you're you're preserving
your purchasing power, and slowly, over time you're gaining a
little bit. And then you don't have to be worried
about like the negative interest rates. You don't have to
be worried about the next big thing. You don't have

(18:46):
to be worried about the bubble, because you know that
long term you're preserving you're preserving your purchasing power, and
when stuff goes on sale, if you want to, you
can buy it then and you don't have to worry
about your dollars in the in Silicon Valley bank and
whether or not the government's gonna kinda bail you out.
That's exactly That's exactly it. And I think, I mean,

(19:08):
you set a lot there, and I completely and totally
I totally agree. I mean, when you have enough gold
and silver, you don't care what happens in the banking
system too. It agree, I mean you do, but you
you don't. You have you have a little bit of
detachment from the system. And in the world of declining
privacy and inflation and you know, brain dead monetary policy,

(19:31):
I think it's never been more important to own it.
And I think this is why you are seeing the
Colmax market being bled dry, while you're seeing the London
Metals Exchange being bled dry. Why you are seeing the
central banks go on a buying binge. And you know,
it's important to understand that when we talk about metal

(19:52):
being taken off the Comax, I'd like to just touch
about that for one second. We're seeing record amounts of
deliveries over the last three years. In fact, whole new
group of traders emerged on the Commitment of Traders report,
which forever just showed the positioning of the commercial banks
on one end and the specs or the hedge funds
on the other. And twenty twenty they put a third

(20:13):
group of reportables that I'd never seen before, called the
others and the others. And this is a report, by
the way, the COOT Report that has published each week
by the Commodity Exchange, the Chicago Common Exchange, that the
CME group, and and it talks about the positioning of
the largest traders on the exchange, and this group the others,

(20:34):
in twenty twenty out of nowhere started taking massive deliveries
and deliveries leaving the ecosystem. I'd like to explain what
that means for a moment so people can understand that
this is a one way ticket. We did a very
large order earlier this year, a fifty million dollar order,
and the client wanted to have the majority of it

(20:56):
in thousand ounced bars held at our Brain Salt Lake
City facility. We have a wonderful program with Brinks. We
have seven vaults around North America. The only one that
is a Comax vault is Brinks JFK in New York City,
and that's the Colmex facility. The rest of the others
in Toronto, Vancouver, Montreal, Miami, Salt Lake City in Los

(21:19):
Angeles are Brinks facilities, but not COMEX facilities. And so
the gentleman that I secured the thousand ounced bars from
is one of the two Royal Canadian mint distributors, has
an amazing deal in Canada, that is, has an amazing
deal on thousand ounce silver bars. Had them held at JFK,

(21:41):
and I said to him, listen, you know, I know
the price for all these thousand ounce bars. They're talking
a million ounces of silver. And I said for that
was just for half of the money that she was spending.
And I said, you know this is at Brinks JFK.
How much will it increase in price to have it

(22:02):
moved to bring Salt Lake City where she would prefer
to have it stored. And he said, you don't want
to do that. She doesn't want to do that, And
I said, well, why's that? He says, because it will
lose Colmes chain of custody. I said, but it's going
from Brinks JFK to bring Salt Lake City by brings truck.
No one touches it but brings. Why would that be
the case And he said, because look, once it leaves

(22:25):
the Comex ecosystem, even if it stays within the Brinks ecosystem,
it would have to be reintroduced and reassayed. And if
Elon Musk came up and said I'll pay fifty dollars
premium for every ounce of silver that anyone wants to
part with on comes, they would not be able to
take advantage of that in a fashion that would allow
it to allow them to react quickly enough. They would

(22:46):
have to have a ship back, reintroduce, reassated at a
big cost and a time leg. And so the point
of it is is that when this money, which is
wholly sophisticated because pulling metal off of Colmex in the
LBMA is very difficult. You'd have a much easier time
giving me fifty million dollars in buying gold bars and
silver bars than trying to take possession off of Colmex.

(23:09):
But once it leaves, it's lost all industrial liquidity. So
whoever is taking possession of the copious amount of gold
and silver is doing so in a fashion that is
removing industrial liquidity. And I don't think obviously they care.
Where is it going. Well, India imported three hundred and
four million ounces of silver last year and that's more

(23:32):
than the entire Coalmex ecosystem has about two hundred and
eighty eight million, of which only thirty nine million is
in the registered category. So you're witnessing massive amounts of
gold being delivered off of the COMEX and the LBMA,
and it never happened before. It was never a vehicle
that was made for delivery. It was a vehicle that
was used to offset risk. Yes you can take delivery,

(23:55):
but it never happened until twenty twenty. And it is
a trend that we continue to draining in a precipitous
fashion all of the industrial sized gold and silver bars.
And I would argue using price as a tool of misdirection,
and it is what betrays the lack of price appreciation

(24:15):
in an environment where it should be screaming higher. But
after all, it is the canary in the mind shaft.
So the West has incentive to hold the price down,
while the rest of the world uses that against us
and its accumulating massive amounts. Like I said, the most
gold accumulated by the central banks second most in history,
in the most since nineteen sixty seven. They are using

(24:38):
suppression of price in order to do that. And one
last point, and then I'll defer to you. I asked
my head trader the other day, because we hedge all
of our exposure to medals, and I said to him,
I said, Ryan, how much does it cost to purchase
one hundred douns gold contract? And he said, all we
need is seven thousand dollars in our margin account. Seven grand.

(25:00):
And my margin account controls one hundred and ninety thousand
worth of gold. What if I am a central bank,
or a sovereign wealth fund or a commercial bank with
a billion dollars in my margin account, I can create
whatever perception or reality I want, and that's exactly what
they are doing. They are suppressing the price and gobbling
it up, and you're watching a systematic withdrawal that we've

(25:23):
never seen before in all of the major exchanges. And
I think it's important to understand for those who look
at price, I would say it is the greatest tool
of misdirection. Instead of look at price, look at what
the biggest money in the world is doing and how
they are dedollarizing, and they are using price suppression to
drain the exchanges. It's a big deal to me what

(25:46):
is going on right now that you've just described. And
the fact that you brought up in nineteen sixty seven,
most people don't realize. If you take nineteen sixty seven
and you fast forward for years, you get Nixon in
the gold window. The reason for that is because starting
in sixty six sixty seven, the world started to realize

(26:07):
the United States doesn't have the gold they say they do.
That was a global bank run on the last trace
of a gold backed monetary system. The rest of the
world said, hey, look, we're gonna go get our money,
so they started sending the dollars back to get their gold.
That's why there was so much gold purchasing then, and
after a couple of years of that accelerating, the United

(26:30):
States was about to run out of gold. So Nixon said,
we're either going to leave the gold standard in two
weeks when we have no gold, or we can leave
it today and still have some gold. And so they
left it today and maintain some of their gold. So
it's very interesting to me that what's been going on
since twenty twenty and is accelerating. I mean, it wasn't
just twenty twenty as an outlier and then it fell off.
It was twenty twenty two was the most since nineteen

(26:53):
sixty seven. Just last year, and moving into this year,
when you look at the January and the February data,
it is continue even like Singapore record amounts of gold purchasing.
And so we're seeing right now the world do something
extremely similar to what happened last time there was a
giant transition in the global Fiat monetary system. It was

(27:16):
a start, it was an end and a start of
a new monetary system. So the world loaded up on
gold because they knew that was the only asset that
was not at the same time somebody else's liability and
those dollars they were holding where liabilities and central banks
are doing the exact same thing today, and what they're
getting rid of instead of dollars, it's time is treasuries,

(27:38):
because that's the asset that they've been holding. Japan one
point three trillion dollars down to one trillion dollars, China
one point three trillion down to nine hundred billion. I mean,
everybody who's the biggest holders of treasuries is getting out,
getting out of the door without sparking a panic, and
everybody's loading up on gold instead. And so it's it's
a really eerie echo of what happened right before he

(28:03):
left the gold steam. Yeah, totally. And I'd also like
to mention you know, the lbmade last year had lost
seventy five percent of their aluminum stockpile and over ninety
percent of their zinc stockpile. I'd like to read to
you something that according to JP Morgan, a report that
just came out, China holds eighty percent of the global
copper inventories. We keep hearing coppers disappearing, seventy percent of

(28:24):
the global corn inventories, fifty one percent of global wheat,
forty six percent of global soy beans, seventy percent of
crude oil inventory and twenty percent of global aluminum inventories.
On top of aggressively stockpiling all the gold and silver
they can get these countries, they are using commodities. Zoltan
pos are one of the smartest guys I've ever read.

(28:45):
Used to work for the New York Fed. Now is
the repo market guru back then, and now he's the
money plumbing expert at ubs and he calls what's happened
right now Bretton Woods three and a system that will
be dominated by commodities. And you know, going back to
seventy one, I often ask people, Joe, what makes the

(29:05):
dollar world reserve? And few people know. You know, prior
to being completely FIAT, when Nixon closed the gold window,
everyone had dollars. It was the world reserve currencies. So
in nineteen seventy four, when the deal was struck with
Saudi Arabia and OPEC to denominate oil globally in dollars,
everyone had it at dollars. It just made good sense.

(29:28):
And when you see Saudi Arabia, and I've been talking
about this for three years now, Saudi Arabia joined the
bricks Nations. Saudi Arabia signed a joint military cooperation agreement
with Russia, as did Nigeria. Saudi Arabia in Davos just
a few weeks ago, saying they're open to taking other
currencies for oil. When you look at the Belt Road Initiative,

(29:51):
the largest infrastructure project to human history, one hundred and
fifty countries or so upon it connecting Asia, Africa, South
excuse me, Asia Africa, South America and parts of Europe.
Every one of the OPEC producing countries are on the
belt Road. You look at the Shanghai Cooperation Organization, many
of them are part of that. You look at the

(30:11):
bricks six or seven of the OPEC countries are have
applied to or already on the bricks Nations. You know,
if we lose that Petro reserve status, which it appears
we are getting closer and closer and closer to doing.
Because you put all of those entities together, they get
damn near close to eighty percent of human population and

(30:33):
they're not going green and the West is So what
does OPEC need us for? What has given us this
extraordinary exorbitant lifestyle and privilege to be the Petro dollar
to have every country on the planet need to buy
dollars stockpile them to buy oil. And if that changes,
the one thing that really frightens me the most, and

(30:54):
I talk about this a lot, would be a systematic
dumping of dollars. If OPEC comes out and says, thanks
for the memories, We've joined Bricks, We're gonna price oil
now in the new Shanghai Cooperation Organizations gold settlement currency
for the whole Eurasian continent, or the new Bricks commodity
backed currency, or just the new petro Yuan bond that

(31:16):
they've had now for two years that allows countries to
sell oil and natural gas to China for a bond
to nominate yuan, which is immediately convertible into gold, and
the Shanghai Gold Exchange or whatever it is, rupie, ruble, gold,
you name it. If it's not just dollars, and the
world dumps dollars all at once because they no longer

(31:37):
need to hold it anymore. Because these countries have coalesced
against the Western hegemony and the Western perception or perceived hypocrisy,
and the sanctions and all of the things that we
are doing. That just a counterintuitive If that happens. That's
when things get very real, and maybe this is why

(31:57):
you're seeing such a drive by all these trees. Look
at Turkey as an example. An ally of ours who
has formally applied to bricks bought more gold than any
country in the world last year, and same thing here
in January. In January they bought another thirty seven tons.
I think it was more than any other country in
the world in January. These countries are moving away from

(32:19):
the West, and they're moving away from dead instruments and
a system that is opaque into one that is transparent
based upon commodities. And this coalition of countries is what
people should be focused on, not what Jerome Powell and
Janet Yellen will or will not do. The rest of
the world is growing tired. Like you said, these countries

(32:40):
are shedding our bonds. Of course they are. Why would
they want to hold bonds that are yielding a negative
return in a country that has chosen inflation. And they
just did that again yesterday by bailing out the banks
over the tough decisions. And I think this is a
scary time and I think people, as Rick Ruloff and says,
we need to embrace the fact that if you are
not at least a little bit of contrarian, you're gonna

(33:02):
end up being a victim. And this is the time
to look at the world a little bit differently. The
process that you're describing, I think. I think some people
have a hard time with looking at the data which
is all verifiably true, and then they think, Okay, well
this means everything collapses in the apocalypse starts tomorrow, and

(33:23):
then two months go by nothing changes, and they think, okay,
well that was wrong. I'm just gonna go along living
life like I was before, not realizing how long it
takes for these things to unfold sometimes. I mean, we
look at the housing crisis. People were talking about that
in two thousand and one, two thousand and two. It
took years for that to finally break and people to

(33:45):
start to realize, oh yeah, they were right all along.
Even looking at just the inflation from the money printing.
Money printing started in twenty twenty March. It was March
of twenty twenty one before the inflation rate CPI got
back up to two and a half percent. It was
a year before the inflation the official inflation rate got

(34:05):
back up to what it had been before, and then
it spiked. I mean, it takes a long time. These
things happen gradually, and then suddenly people central banks since
sixty seven buying gold and then takes until seventy one
for the gold standard to finally break. So these things
don't necessarily happen overnight. You see the red flags, you

(34:27):
see the signs, you see the signpost pointing to the
inevitable reality, just because of math, and sometimes it takes
longer than you'd expect for the consequences to actually start
to four hundred percent. I mean, and you can see
it's a chess game. The pieces are being moved into
place right, and even you know, the reconciliation between Saudi

(34:47):
Arabia and Iran, who have been a dagger point for
decades in a China broker deal. They're now re establishing
diplomatic ties and opening up embassies, and the same thing
between the Saudis and in Egypt, and you know. And
so in January, the central banks, most of them in

(35:07):
the bricks nations, added another seventy seven tons of gold.
That's one hundred and ninety two percent month over month
increase from December, and so you are seeing massive massive
amounts of commodities being purchased, relationships being made, and even
those that have been centuries old of hatred against the

(35:29):
West because this is their one chance to break free
from the Western hegemony. And my enemy's enemy is my friend.
And that is what I believe you are beginning to see.
These countries are have a plan. And the Chinese have
always thought in terms of decades, while we think in
terms of days or in terms of weeks. But if
you really look at the Belt Road Initiative, at the

(35:50):
Bricks Nations, at the Shanghai Cooperation Organization, in the Eurasian
Economic Union, and you read about it for a few days,
you'll walk away say, my god, it happening. They are
not only is it happening, but countries that used to
be on our side, like Saudi Arabia, like Turkey, like Mexico,
like Egypt, they are either joined or have expressed interest

(36:12):
in joy. And there's over sixty countries on the docket
to join the Bricks, over one hundred and fifty in
the Belt Road. You're talking the majority of human population,
and it's happening, and we are squandering the good graces
of our foreign creditors with our ridiculous monetary policy and
the poor decisions that we're making, and more than that,
with the sanctions and the hypocritical decisions that we are

(36:36):
making globally where you know, we're five billion dollars is
too much to build a border wall to protect five
million people entering this country illegally, many of which are
pouring bringing fentanol in with them. But one hundred and
fourteen million dollars to give to the Ukraine, isn't there.

(36:57):
These are ridiculous, ridiculous times we live in, and yet
eighty five percent of the world is still trading with Russia.
So I think we're looking at things through a polarized lens,
and I think we are alienating not just a good
portion of the world, but many of these countries that
claim to be our allies. So yeah, it isn't going

(37:17):
to happen all at once until it does happen all
at once. That That's how I think it was Ernest Hemingway.
They asked him how he went broke little by little
then all at once, while if you look, it's little
by little. These relationships are changing. Look at Iraq as
an example, a country we we liberated, so to speak,
and put trillions of dollars into and now for the
first time they are taking you wand for settlement outside

(37:40):
of the dollar, India trading with Russia, taking using rupee
for settlement instead of instead of dollars. All of these
countries striking deals unilaterally that are sidestepping and usurping the West,
little by little by little, and the unison or this
chorus of countries joining together is becoming extraordinary. So yeah,

(38:03):
it isn't something that will materialize all at once. And
the sad part about it is that most people in
this country will be completely blindsided by it. And that's
one of the things that I think is most frightening
is that, you know, most of this is verifiable, but
most people have never heard of the Belt Road Initiative.

(38:25):
Most people don't know that the Bank of International Settlements
reclassified gold, and most people don't understand these massive changes
in you know, the bricks Nations, what it really means,
the Shanghai Cooperation Organization, what it really means. And I
think people would would be well served to spend a

(38:45):
little time researching that instead of just focusing on what
Jerome Powell will or will not do with monetary policy,
because to me, it amounts to a hill of beans
a half a percent, fifty basis points, twenty five basis points.
What happens if these frees dumped dollars and bonds all
at once. Mike Adams calls it Operation Sandman, where you
got one hundred and fifty two hundred countries from around

(39:07):
the world are all in agreement to add a certain
point dump dollars once the chess pieces are moved into place,
and the tsunami of inflation that that would create as
all of those dollars. There's more dollars all outside the
globe because of the Petro standard than there are at home,
and if they all get dumped and fled home at once,
the byproduct are interest rates that go parabolic, and stocks,

(39:31):
bonds in real estate are all inversely correlated to that.
That is the great reset. Is it the one Klaus
Schwap talked about. Don't know, but in an environment where
asset prices have been blown sky high over the past
fifteen years thanks to low interest rates, suppressed interest rates,
and easy money, it's created distortions and asset prices. And

(39:52):
you know, this is probably why the FEDS stopped jumped
into to bail out the depositors to keep a massive
run on the banks and an implosion of of um,
you know, the market. And I think it's just one
end of it. You see interest rates go sky high,

(40:13):
it's all over that. There's not a lot the FED
can do. But we are on Matt Razer's edge. And
I you know, I wish that the things that I
talked about weren't so gloomy. But I think there's a
fine line between reality and pessimism right now, and I
think it's closer to reality than most people would like
to believe. For me, the where you draw the line

(40:36):
is in the action that you decide to take U
and so uh, personally, I think, yeah, it would be
a doom and gloom Outlook if you just decide that,
you know, to throw up your hands and say, hey,
there's nothing I can do. But that's not the reality.
The reality is. It's it's like, Okay, I'm gonna, you know,
prepare for the worst. I'm gonna hope for the best,
but i'm gonna I'm gonna plan for just in case,

(40:58):
uh this this turns out the way that it looks
like it might turn out, and like we've been talking about,
one of the best ways to do that is purchasing gold.
Now I want to address I think one of the
most um pervasive reasons that people use to not buy gold,

(41:18):
which is what you talked about earlier, central bank manipulation.
It's so easy, you need so little money to short gold,
paper gold, push the price down while with your other
hand you're loading up on physical To the extent that
that is happening, it represents the best buying opportunity for
gold since nineteen sixty nine. Yeah, because that the price

(41:42):
is lower than it would be without that manipulation. And
the manipulation must stop. It never can continue into you know,
in perpetuity, which means that if it is happening to
the extent that we think it is, that means that
it's undervalued. JP more and paid a nine twenty nine
hundred twenty million dollars fine for suppression of medals. And

(42:07):
I think everyone who owns gold and silver or has
wondered about what you just said, needs to do one thing.
My good friend Chris Marcus of Arcadia Economics did an
interview with then CFTC chairman Bart Chilton, and I think
you should Google Bart Chilton, Chris Marcus Arcadia Economics. Now,

(42:31):
Bart Chilton admitted what I'm about to tell you on
this video on a YouTube on a podcast just like
this here, and he had only said it to one
person one time, and it was Chris Marcus. Now. Coincidentally,
he died six days later. But I will tell you
that what he said in a nutshell was that bear

(42:51):
Stearns went bankrupt because of their short bet on silver,
largely because of it, not entirely, but that was a
good portion of it silver one to twenty one bucks.
They went bankrupt. Jamie Diamond was called into Hank Paulson
and Ben Bernanke's office and they said, Jamie, we need
you to take over bear Stern Shore position. And Jamie said, okay, guys,
I'll do that, but I will be in violation of

(43:13):
position limits. Well, Jamie, you have a certain amount of time,
let's say ninety days, and just get yourself in order
and close out some of those shorts so you're not
in violation a position limits. Okay, thanks guys. Out the
door he went, and he took over Stern Shore position
in silver. At the end of the period. Bart Chilton,
who was the head of the CFTC went into his

(43:35):
superiors and said, guys, not only have they not decreased
their short position, they've increased it. They need to be prosecuted.
They are in violation of our agreement. There in violation
of anti trust law. They're breaking the law. They're manipulating
the market. We need to prosecute. They said, Bart back down.
It's a political decision. This is the head of the
Commodity Police admitting this to Chris Marcus, and then he

(43:57):
died six days later. I'm not saying that as a connection.
Maybe it's just a pure coincidence. It is the only
time he ever admitted this, and anyone who questions manipulation
of the metals market needs to listen to that. Well,
why would they do it. There's a term in economics
called Gibson's paradox which speaks to the inverse relationship of
real interest rates in the price of gold. So if

(44:19):
your intent is to suppress interest rates to create an
illusion of prosperity in our home prices are four oh
one K to force speculation to incentivize debt accumulation, then
you have to step on gold and silver. And that's
exactly what the West has done for a very long time.
They have done it to maintain an illusion of dollars

(44:40):
strength and market strength. And this was the name of
the game for a very, very, very long time. And
so you're talking about concerted effort to suppress the price
of gold, because it's as if you pull back the
curtain and see a little frail man in the Wizard

(45:01):
of Oz, not the big booming voice, when you realize
that if it were not for the four or five
banks that have abnormally large shore positions in gold and silver,
the price would be markedly higher. You look at silver
has the largest concentrated shot position by four banks of
any commodity traded on the commodity exchange. Why why do

(45:23):
they go to such great lengths to suppress the price
of gold and silver when they let every other asset
price go to the moon. And it is because they
are the monetary metals that show the fragility of the
Western system. Well, for a long time, that was the
game they played, and now our foes are using it
against us. They are using our own leverage, our own

(45:45):
suppression of the metals, to drain the exchanges and ship
them eastward. When I told you it leaves the ecosystem
of Comex, it loses all liquidity. They don't care. They
want it shipped. There is a branch of Valcabi that
just opened up, I don't know, twenty miles from my
house here in Florida. Valcambia is a seventy year old refinery.
All they do is buy scrap. They don't sell anything.

(46:07):
They buy scrap and send it to Switzerland. And where's
all that metal going once it's refined in Switzerland? Look
at the numbers. It's all going to China, to Russia,
to India, to Saudi Arabia. It's going eastward. And so
all I can simply say is why this hasn't materialized
Because this is a high stakes game, and I think
they're trying to squeeze as much out of the system

(46:29):
as they can. And when a new system emerges, one
that will be pegged to commodities. And you talk about
distributed ledger technology, the Chinese digital you want has been
what most of the contracts have settled for or with
on the New Belt Road initiative. They started using it
at the Beijing Olympics. It's been four years of beta

(46:49):
testing north the twenty five billion in successful transactions. What
better way if you are going to issue a competitive currency,
a reserve currency, a digital current see but to use
distributed ledger technology to show what every one of these
countries is pledging to the system. You know, I heard
people say, well the Euro doesn't work. Why will this work?

(47:10):
This union of countries like Saudi Arabia and Iran who
really don't like each other but are trying to mend
fences and are trying to create a union against the West.
What will make it work? What didn't make the Euro
work as you had all of these different cultures pulling
in different directions. What will make this work with the
same environment, maybe even more severe, is the pledging of commodities,

(47:34):
and each one of these countries will have equals, say
at the table by what they pledge to the system,
using distributed ledger technology like Allah, the digital Yuan or
the rails of it to show the immutability and the
veracity of what each country has pledging to the system
to make it work. And when you realize gold was
reclassified by the BIS in twenty nineteen and the world

(47:58):
looks at it now as a riskless, high quality liquid asset,
basically tier one. It makes a whole lot more sense
why all the central banks are gobbling it up. Because
a new system will rise from the ashes of this
fiat system. It will have to be pegged to something,
and trust has been compromised. What better way to roll

(48:18):
out central bank digital currency than to show what is
pledged to it. So I think these things are happening.
And to your point, it's a good one, Joe, it
is a good one. Why hasn't happened yet Because this
is a very high stakes game. You get one shot
at it. And I think they're putting all of their
pieces together in unification of trader arrangements in a new

(48:40):
currency that will be backed by something probably on the
rails of the Chinese digitally one. And I think it's happening,
and it's frightening to think of what will happen. Look,
I got three kids. My youngest is fifteen. I'm scared
for the world she grows up. And if we lose
the reserve status, and I think there's a high probability
we will, Who the hell would want to buy our

(49:01):
bonds earning a a you know, a negative yield right
now and an a currency that has been signaled by
the powers that be to be inflated away, and the
decisions they made this weekend only underscores that I completely agree.
And for any individual that doesn't yet have any allocation.

(49:25):
One of the other objections that I hear a lot
is about you know where to put it, and so
there are a couple of solutions. But to put it
into perspective, you're a high net worth individual. You've got
ten million dollars and you want to make a high
allocation of gold of let's say a third of your
net worth. You can fit three million dollars of gold
in a shoebox, so you don't you don't need that much. Yeah,

(49:47):
there's forty thousand dollars right there. You know that. That's
pretty much forty grand And how many of these could
you put in a shoebox? Well, a lot, And so
you're right, it is easy to store. And I think
you hold it yourself. I think counterparty risk is going
to become a big deal over the next next few years,
and the removal of counterparty risk is a good deal.

(50:10):
So to hold it yourself until you get to a
point where you no longer feel comfortable doing that. There
are other options, but yeah, I think holding it yourself
is the best way to do it well. In a
world where we've seen time and time again trust gets broken,
whether it was breaking the gold standard and going back
on our promise to deliver gold for dollars in nineteen

(50:32):
seventy one, whether it is you know, the promise of
your dollars being safe in the bank account and then
the bank, you know, loaning them out into assets that
lose value and you go to get them and they're
not actually there. We're seeing that trust is becoming more
and more of an issue today, and that's one of

(50:52):
the reasons why I have so much respect for you
and your company is because of the integrity, because of
the trust. I'm going to be linking Miles Franklin in
the description in the show notes. If you're on listening
on a podcast where you don't have the show notes,
it would it's Miles Franklin dot com. Yeah, and our
new website, which was supposed to be launched for five

(51:17):
months ago, will be launched in the next week or two.
We are hopeful for that will allow people to purchase online.
In the meantime, they can send us an email at
info at Miles Franklin dot com request a current price sheet.
We will not be undersold. You will find we are
amongst the most competitive in North America. We've never had

(51:37):
a customer complaint. And I will make damn sure the
people listening to this podcast Joe won't be the first ones.
And for the sake of being able to track all
of this and to make sure the people listening are
treated with kid gloves, it would be great if they
put Joe Brown sent me and in the subject line
ask any questions. We can return an email or a

(51:59):
phone call with the answers to those questions and an
updated price list with no obligation. And jeez, I'm just
really thankful to be here with you today. Joe. I'm
a big fan. I watch everything you do, and you
have a great grasp on what is going on, and
you know in a world where you know, traditional media
is leaving people completely blindsided by what's coming. In my mind,

(52:22):
guys like you and the Economic Ninja and Chris Marcus
and all the folks that I am friendly with and
watch every day, that is the real media. That is
where we're getting real information on how to save, on
how to get out of debt, on what is important
on geopolitical events, and I just am very appreciative for

(52:43):
being here and just a phone call away anytime you
need me back or a perspective on what's going on
in the metals market. Certainly happy to come back anytime. Fantastic. Yeah,
we'll definitely have to have you back. And thank you
again Andy for coming on the show. I know everybody's
going to enjoy this. It's of great insights and we'll
talk to you. Stay well, buddy. Thank you