Transcription
Hi everybody, welcome to the Parallel Systems broadcast. I'm your host Mike and on tonight's show, I'm going to be answering some questions from my members over on Substack and also Patreon. So these are people who support the content and if you'd like to ask me some questions for me to answer here live on air in the next round of Q&A. You can become a member over on Substack. But without further ado, let's get to the questions. There's some fantastic ones tonight about financial resets, gold, silver, debt collapse. Many good questions. So, let's begin with the first one.
Hi Mike, we know what drives up the gold price in the 1980 to 2000 period. However, we saw a downturn for gold. I know these were totally different times, but what would bring down the gold price? And do you think this could happen or do you think the gold price will only go up from here? Warm regards.
Well, it's a great question. And the first thing that I'd say is nothing goes up in a straight line. So all bull markets will have periodic downturns where you have market corrections where people start to take profits and that's normal particularly in this Ponzi system where you have lots of people essentially trading paper contracts. So it will be normal to have some corrections. However, I would say what we're living through is not normal. We're not living through just a typical asset bull run. What we're actually living through is a financial reset. We're heading very fast now into the reset and we're going to see the entire system reset versus gold. So, this is actually a changeover of the global monetary system. And these things only happen every hundred years or so. They are always accompanied by periods of massive conflict. So, if you're wondering why we've got wars springing up left, right, and center, cyber attacks across the world, all kinds of geopolitical issues, trade routes and uh resource wars happening, trade routes being rewired, it's because of the reset. All of it's connected to the monetary reset. And I've been talking about this ever since my first few videos. So, it's certainly not something new for my listeners. But if you're new to the channel and you're wondering what's going on, it's because of the reset. So yes, what we're living through means that the gold price has to go up. It will rise relentlessly going into the reset. And I think it's going to be revalued twice. It will be revalued continuously going into the reset for all of the reasons that we always discuss. We've got currency debasement which can only continue because remember we're living in a Ponzi paradigm, a fiat Ponzi paradigm. And you can see we've got Extra's pyramid here. We've got two to four quadrillion in derivatives and unfunded liabilities. Those are bets upon bets upon bets and they've been pyramiding the debt for so long now that they're coming to the end of the road. They've got all kinds of unfunded liabilities. We've got sovereign debt that is now in most Western nations well over 100% debt to GDP. That's banana republic territory. You've got Japan which what is it now for Japan? I think it's 300% of debt to GDP. It's insane. So, of course, we are going to see some kind of expunging of the debt. We're going to see a debt collapse at some point. And the only thing they can do to kick the can further down the road is to add more and more liquidity to the system. And the only way they can do that is to debase the currency. So, that's one of the reasons that gold is going up. And that's also one of the reasons that I don't think they can turn this one around.
Now, we've got other drivers as well beyond just the debt and the currency debasement. We've got the collapse of the post-World War II order and that's something that I just alluded to. That's why we've got trade routes being rewired. New allies are forming and old allies are collapsing and turning on one another. That's only going to spiral as we see this bifurcation between east and west. All of that's revolving around gold as well. China started to put all of their reserves into gold. They've got the highest foreign exchange reserves in the world. But what people don't know is they've also got around 40 to 50,000 tons of gold because they understand that the system is going to collapse and it's going to go back to gold and everything's going to be revalued in gold. Russia the same. They have over 10,000 tons. China are the largest miner of gold on planet Earth. They're the largest importer of gold on planet Earth, but they don't export their gold. They keep it all for themselves. So, China's a huge hoarder of gold. And that's telling us something. They're expecting the system to be reset versus gold.
Now going back to your question, you spoke about that 1980 to 2000 period. Why did gold collapse from 1980 to 2000? It's very important to understand why that happened to make sense of whether that could happen again, which is your question. So let me just comment on that for a second. Between 1970 and 1980, the gold price had moved 2,300%. 2,300%. So that was a massive revaluation of gold. That was a financial reset and it was brought on by the collapse of the Bretton Woods system in 1970. And that takes us further back to 1933 when we had the original financial reset of the uh post World War I period which was when we had the gold confiscation in the US, a revaluation of gold and then the US dollar was pegged to gold through the Bretton Woods system and everybody would take US treasuries instead of gold which was a great trick for the US. That lasted until 1970. Then that collapsed. Then we saw gold free float because remember it was at it was at a fixed price the entire period up until 1970. The whole system started to come apart. So gold was free floating. It revalued itself 2300%. And in 1980 the gold price was perfectly situated to back the US debt at the same ratio as 1933. So the market was actually very rational. What it had done was it had repriced gold to the perfect level to backstop US debt at the same ratio as 1933 in gold because everybody expected us to go back to gold. So the gold price in 1980 wasn't overvalued. It was precisely where it needed to be to go back to a gold-backed system.
So what changed? Why did the gold price collapse? Why didn't we go to a gold-backed system? Well, if you go back to the original notes by Henry Kissinger, he was the person who set up the petrodollar with the House of Saud and when he was having his meetings with his chief advisors and economists, they said we don't want to go back to gold. Not because gold's a bad system, but because collectively the Europeans have more gold than us. This was back in 1973, I think this meeting I'm speaking of. And he said collectively Europe have more gold than the US. And if we go back to a gold system, that will give them too much power over the international reserve. And we don't want that. So we have to find a way to engineer a system to force them to sell their gold and go back into US debt. Now that is why from 1980 to the year 2000 we saw all of these nations and central banks selling off gold and going back into US debt because they created the petrodollar and it forced them to sell their gold and replace it with US treasuries so they could buy oil so they could buy commodities. So that was the rabbit that the US managed to pull out of the hat that kicked the can all the way to the year 2000.
Now, after the year 2000 and the dot-com crash, it was becoming increasingly apparent that the Ponzi system was going to collapse. And since the year 2000, gold has outperformed the S&P 500. The S&P is up 3, sorry, 350%, gold's at 1,250%. So clearly, what we're seeing now is that revaluation of gold setting up for the big revaluation as the monetary system collapses.
Now, the question that you're asking is, are we going to see the US pull another rabbit out of the hat? Well, okay. Technically, they could say, "Okay, Britain, France, Canada, you've got to take our stable dollar. We're going to back it with these stable coins. Uh, it's going to be a digital dollar. You've got to take it. Sell your gold. Go to stable dollar. Everything will be fine." But is the rest of the world going to follow suit? That's the question. Can they engineer a system where the entire world has to go to a shitty stable dollar? Absolutely not. Because the de-dollarization trend has been a trend that's been going on now for some 20 years. And it's only escalating and this year we've seen some epic moves where we've actually had international uh financiers selling off their US treasuries and going into gold. So we're seeing a mass exodus out of US debt and into gold. So that's really the end point for a fiat paradigm. And we also saw this year that gold has become the second largest reserve held by central banks. So it's also superseded the euro now. It used to be the dollar, the euro and then gold. Gold is now the second most held reserve asset by value and within 5 years it's going to take over the dollar because buying by central banks right now is around 1,200 tons a year. That's pretty stable, but it's only going to go up in my opinion. But let's just say let's just say it stays the same. The price of gold is being revalued relentlessly upwards again and again because we're seeing the mass exodus out of US debt and sovereign debt moreover because nobody trusts it. Why are you going to hold a 30-year US bond when in seven months the US dollar loses 10% and your bond was yielding 3%. So, you're already underwater and you've got 29 long years to go. You're not going to do that. So, where you going to go? To Japanese debt? Absolutely not. To British debt? Oh, god no. So, you're going to go into a real safe haven. And people are waking up to this now. All of these buffoons on Wall Street who thought they understood finance, all of these gurus on uh on YouTube and the internet who spoke about sovereign debt as a safe haven asset. These people are realizing, oh, it's not safe. It's dog and we need to go to something that's truly safe, that has no counterparty risk. The same way nations don't want counterparty risk. That's why they're repatriating all of their gold. That's why they are increasing their gold reserves and de-dollarizing at the same time. And we saw India do this recently. So we're seeing the mass exodus out of debt. There's no way to reverse that. The US cannot by fear force the rest of the world to sell off their gold and go back into uh into the dollar or into US debt. So do I think it's possible? No, absolutely not. There's just too many uh structural factors whether that's the debt whether that's the currency debasement that can only continue whether that's the de-dollarization or the growth of China and BRICS. All of those reasons no.
But let's just imagine that I had to come up with a way that they could do it. Let's just imagine I had to hypothesize that there is a way out there. What would it look like? Well, the US would firstly have to have a nuclear war in my opinion. They'd probably have to take out China. So to take out China, what would you have to do? Well, first you'd have to weaken China's allies. Probably the key one would be Russia. So I'd get Russia involved in a proxy war. That's the first thing that I'd do. And I'd just create a meat grinder. I wouldn't want it to end, you know, I'd want to try and make myself look like the hero, like I was trying to end it, but really secretly. I'd want it to grind on and on and on just to weaken Russia continuously, keep them occupied. And then simultaneously, I target China. And the way I target China is I would target what China is strongest at. I'd target what they're strongest at, which is trade. So I'd try and destroy their trade relationships with all of their allies. Uh I'd use all of my power as the global hegemon and as the protector of trade routes and the largest military and the leader of NATO and the holder of the US reserve currency. I'd use all of that uh in a dirty war. So it would be economic warfare for sure. Uh political and geopolitical strategizing, sorry. I'd use all of that and I'd get them to rewire global trade so it went to the US and I'd force them to decouple from China. I'd say it's us versus them. So that's how I'd start to weaken China. I'd try and create some kind of financial catastrophe within China itself. And because I've got the dollar that I can continue to print up until the debt collapse, I'd take full advantage of that because it's exorbitant privilege. And so that's what I'd do. And I'd also take out other proxies like Iran. I'd have Iran dealt with over in the Middle East. So yeah, maybe you can see now where I'm getting with this. There are ways to attempt this because every dying hegemon, every collapsing world superpower goes through the same process. They try and retain hegemony. They lash out. They enact war. They turn on their supposed allies and basically force them to become uh subjects of the aging empire. So they start to loot them and that's what we're seeing happen right now. So that's what I would do. That's the way you try and do it. And on the at the end of that, if you managed to get rid of China and all of the allies were forced to be beholden to you and completely dependent on you for food and for energy because you blew up the pipelines and they couldn't get cheap gas from another nation then and maybe then you could force some digital dollar on them and say we're not going back to gold and all of that gold that you've got. Well, send it over to us. Maybe you could, but you'd have to basically control the entire system again. And I think that's very hubristic. So, I think we're going to multipolarity. Uh, I think we're going to see the US try and create some kind of post-collapse empire for itself, much like the Soviet Union did after World War uh 2. We had the Soviet Union rise, and it used all of these auxiliary nations as commodity baskets to loot and steal from. I think that's what the US is trying to do under Trump. They're using him to try and rewire the trade routes to give the US the commodities it needs, the rare earths it needs. But listen, it's going to fail. The US can't go to war with China unless China sends the rare earths across that it needs to create the weapons to go to war with China. That's how ludicrous this is. It certainly can't rebuild its industry. Yeah, maybe in a hundred years, but it's not happening overnight. You don't have the intellect. You don't have the cost base. You don't have the resources. You don't have the cost structure. So, it's not happening. Uh, it's all fantasy. But what they are trying to do is set themselves up in my opinion for the collapse, for the war, for the conflict, for the reset. And it's going to look a lot like Soviet America in my opinion. That's where we're most likely going. So, no, I don't think it's going to happen. Yes, I think gold will continue to rise. All of that what I just discussed is going to happen and as it happens, gold will respond to it because it responds to chaos as well.
Okay, onto the next one. Martin Armstrong argues that war and international unrest is a larger driver of gold than of the gold price than inflation. Would you address this idea?
Well, I think I kind of did in the last one. I don't really know Martin Armstrong's work. I don't uh consume his content. I've not seen any interviews of him. So, when he talks about war, I'm not sure how he frames it, but I frame it like I just did that we're seeing the collapse of the post-World War II order. In fact, I've got a graphic here. Uh, no, I don't have a graphic here, so I'm not going to share it. But really, the post-World War II system was built on three pillars. It was built on the US dollar as the global reserve asset, and by that I mean treasuries. It was built upon the US being the protectorate of global trade. So what the US did was it had this big military and all of its allies were protected by the US and that created this freedom to trade and exchange. So it created lots of peace and prosperity for auxiliary nations or nations connected to the US. And then finally there was also free trade across the world. So even China was allowed to send its goods across the world. All three of those pillars are now collapsing. So the peace and prosperity that we had that rested upon these pillars has all gone. The peace, prosperity, and security is gone because it's going to collapse. Now those three pillars are crumbling. That's why a reset has to happen because within a few years, gold will have overtaken the US dollar as the global reserve asset. And at that point, the dollar is no more. It's toast. And you're going to see all of that debt come flooding back to the US. In fact, have a look at this graphic here. Uh, this is the reverse dollar milkshake theory. I based this up uh I based this upon Brett Johnson's dollar milkshake theory which I was always completely against. I thought it was ludicrous. Nothing against Brett, I don't know him, but I did hear about this theory and I said it was ridiculous because at the end of the day going into a reset, people don't rush into the dollar. They may rush into the dollar during the Ponzi era because of course the US dollar is the global reserve. If we have a crisis like in 2008, yes, we saw people rush into US treasuries because they were considered the safe haven. But as we got to 2020, the US dollar was not looking like a safe haven anymore. It was looking like financial nuclear waste. And we saw this in 2025, this year. People were rushing out of the dollar. We had the US stock market down, the US dollar down, and Treasury yields spiking because there was a mass exodus out of the dollar. We've been seeing central banks de-dollarize and we're seeing institutional investors now sell their treasuries and rush into the dollar. But there's a big difference between US treasuries and gold. Sorry, I meant rushing out of US treasuries and into gold. And there's a big difference between US treasuries and gold in that you can't print gold. Takes about 15 to 20 years to get more uh more gold online because you have to build a mine. You have to explore, find the mine, dig a giant hole, get permits, do all kinds of environmental uh precautions. Now, it's very expensive. Capital expenditure is huge. And often times, these things fail. So, you're talking 15 to 20 years just to get more gold. Now, there's 28 trillion of marketable US securities. We're talking treasuries here. $28 trillion of treasuries. And every day, 1 to 2 trillion worth of treasuries trade back and forth. Now, let's put that into context versus gold. There's only $400 billion worth of gold available annually at $3,500 per ounce. Now, granted, we're a little bit above that. When I made this slide a few months back, it was $3,200 per ounce. That's how fast the price is moving. But my point in explaining this is every year there's only around $400 billion of gold coming online. And most of that is already taken up because the central banks account for most of that buying. Then there's jewelry. And then there's about a hundred billion dollars that's available for investors, for people like you and I, for family offices, for hedge funds. Now, 400 billion and a hundred billion available versus 1 to 2 trillion daily. It's only going to take a small amount of that capital that's in treasuries to rush out into gold to destroy the milkshake glass. As you can see there, it's going to shatter that glass. Now, you can't create more gold out of nothing. You can't print it. You can't do a Truth Social tweet and say there's more gold out there and just magic it. It doesn't work like that. You have to mine it. And it takes decades. So that's not going to happen. So what's going to happen? Well, you can see here the price of gold must rise substantially to account for all of the new demand. And again, that's why the gold price is going to continue to go up uh in the coming years.
Now, where am I going with all of this? My point is that yes, we are going to see the gold price go up because of conflict, but we're also going to see it go up for many, many other reasons, too. It's multifaceted. There's never been more tailwinds in the sales of gold than there is right now. And that's why this reset is certainly not going to reverse course. It's going to continue. And then at the end of it, we're going to see one giant revaluation as all asset classes have to be revalued versus gold. All of the debt has to be burned out of the system using gold. And so I predict gold's going to be up in today's money of around at least $35,000 per ounce. I think that's a conservative guess based on my study of history. And you know, we've already been there in 1980 inflation adjusted using shadow stats that was around $35,000 per ounce. So for those people that tell you you are insane, that's what happened during an interim reset. Now imagine what happens during a full-blown reset. What you're living through right now. So yeah, that's the kind of answer to that question.
The next one is how about suggestions for starting a self-sufficient mini farm? Books, websites, your insights with so many things coming at us, starting a discussion on solutions uh might be uh seems important.
Well, you know, I think we, you know, factoring in everything that I've just said that we're seeing the collapse of the post-World War II order. We're seeing all of these people, these people at the very top, these so-called elites, they are setting up for a technocratic system. They want to use this reset to trap you in digital chains. The mark of the beast system. Look what's happening in the UK right now. Digital ID for everyone. How about you uh go I'm not going to I know I almost said some naughty words here on this video. I'm not going to say it. Uh I'm going to be the bigger man, but absolutely no. And we're not going to take that system. I'm certainly not going to be uh putting myself in that system. But that's their goal for you is to trap you in the system. That's what we're seeing in America. We're seeing Palantir. We're seeing Oracle AI. And they're talking about having facial recognition AI cameras that are going to be policing you. Who was it? It was Larry Ellison saying, "Oh yeah, we're going to make sure the citizens behave." He's one of Trump's main guys. I think he's the richest man in the world right now. You've got Brain Chips. You've got Stable Coin, which is basically a CBDC. It's happening across the world. It's happening across the world. I've written articles on it in Ukraine right now. They're implementing asset registries where they're going to have all of your assets, including physical assets, by the way, like gold, artwork, um, anything that you own physically in terms of property and land, that's going to be tokenized and put into a digital registry. They want to control you completely. So, for all those reasons, you want to have some self-sufficiency. And also because going into this collapse, it's going to be chaotic. You know, look what happened in Spain and Portugal earlier this year. We saw a blackout for 2 days. 2 days. Now, 2 days isn't so long. It was soon fixed. But imagine a blackout for 5 days in a place like the US. That's going to be uh that's going to be chitty chitty bang bang with all of those pistols out there and we're going to see people looting and raiding and it won't be safe and you certainly don't want to be in a city. But that's just really the best case scenario. The worst case scenario, which would almost certainly happen with a blackout of, let's say, 7 days or longer, there'd be no food. All of the supply chains would collapse. Now, the supply chains are going to collapse because of the trade wars and the resource wars and the kinetic side of World War II anyways. But let's imagine a massive cyber attack takes down the energy grid. Within a few days, all of your sewage is backing up. There's no sewage processing, so all of that's clogging up. You've got a biohazard there. The hospitals' backup generators are failing. So you've got millions of people dying in hospitals. You've got people who have no food and of course there's no food being transported. Nobody can pay one another. All of the shops can uh no longer sell food because they'd sell out within a few days and there'd be no more uh suppliers coming to re uh to resupply the shop uh the store. Then you'd have no petrol. So no transport would be happening and uh you'd have chaos on the streets. You'd have no water. You know, the water treatment facilities, they would break down within five or six days. Backup power's gone. And then the energy grid itself, you'd have to do a black start. Once you've had no power for, you know, 5 days, you'd have to do something called a black start, which is extremely difficult to do to go from no power back onto power. Well, you need power to get the power restarted. It's a disaster. Of course, you've got nuclear power plants. Cooling facilities would start to fail. It would be worse than a nuclear war. It'd be worse than a nuclear war. And in today's day and age, you could easily do a cyber attack and target the energy systems. So my point in all of that uh in saying all of that is you definitely want some self-sufficiency. You want to have the capacity to protect yourself. You want to have the capacity to grow some food. You want your own water supply, your own heating supply. All of those things could disappear overnight. And going into a reset, make no mistake, they might think they know how this is going to pan out. They might have a plan, but these things always have a way of taking on a life of their own. And these people who are enacting these things, who think that they're going to succeed in reigniting the US empire or whatever it is, nonsense propaganda, they're telling people uh they are living in cuckoo fantasy land. That's not the way the real world works. These systems are extremely complex and they're designed over many decades. They're very sensitive and they in normal times with a lot of input and a lot of uh technology and different systems working, yes, they'll be fine and you can fix any problems, but going into a chaotic time, no, you could see the breakdown of all of these complex systems very, very quickly. And that's why you don't want to depend on technology. And that's why the idea of adding more technology and going to digital currencies and hyper-technologizing the world so that everything's dependent on energy and tech is insane. You know, it's the most insane idea, but there you go. So, yeah, I think you need to go back to small-scale farming. In terms of how to do it, you know, it's not easy because most people have jobs, they've got a career, and it really is a lifestyle change. You have to give up that old lifestyle. You have to have courage to rewire your own life, to re uh reorientate yourself towards this new way of living. You have to learn a lot of new skills. The first thing you need, of course, is some land. Now, it's probably not as much land as you think. Most people, just 3,000 meters around your house with gardens would be more than enough because most of my growing takes place just outside in my gardens. I've got three polytunnels. I've got lots of raised beds. Got about 30 to 40 fruit trees. We grow apples. Uh, we've got a little orchard. We've got pears, cherry trees, walnut trees, hazelnut trees, um, plums. I've got about 40 different types of berry bushes around the property. We grow lots of stuff over here, but it takes a lot of time. Um, I've got a well, of course, you need water. As I just said, you need your own clean source of water. I've got about five or six water catchment systems, too. So, multiple water systems. I've got about 100 chickens. Uh, so I get probably about 70 eggs a week. Uh, and we harvest chickens for meat as well. So that's probably about enough, you know, 3,000 meters. But it's an expense. You need to be able to buy the land first and foremost. And you need to buy that in a place that's out the way. There's no point in having all of that in a city. You want to be in a place where there's other farmers, other people growing. That creates a lot of insulation in the community because nobody needs to steal food off one another. They've got food in abundance around you. So, you want to be in a country where or or a place at least within a country where there's lots of farmers. Uh, and of course, if you want to have livestock and you want to have bigger uh animals like cows for milk or goats, then you need a bit of land additionally for all of that. So, that's when you'd need some fields, but again, you can do a lot in a small space. So, you need money to do that is my point. Then you need a lot of time because you ain't doing that on a full-time job to tend the gardens, to plant, uh, water, weeding, harvesting, preserving, dealing with all of the pests. That takes a lot of time, and you're certainly not doing that with a full-time job. So, again, there's a certain level of affluence I think you need to have today. Or you need to be very creative and very determined. That's the other way. You could have two people, one person, one of you could be working full-time, the other one not working at all. You could both work part-time. Maybe one person could work full-time on one part of time and the other half of time in the garden. That might you might get away with that. Uh, but those are the real obstacles for most people. Uh, they suffer from a lack of imagination. They say, "I'll never be able to do that. It's too expensive." And they're unwilling to sacrifice for it. That's their choice. I would, if I was out there and I was thinking about doing it, I would do whatever it takes to get to some land because ultimately gold, silver, Bitcoin, stock market, none of that matters if you don't have food, water, and energy. None of it matters if you don't have the capacity to take care of yourselves. If you go back to the 1920s, if people had a little bit of excess wealth, do you know what they did with it? They bought some more land. They bought some more woodland for firewood. They bought some more animals. They planted a new field of potatoes. One in four people lived on a farm back in the 1920s. So going into the Great Depression, lots of food was readily available. And these farms back in the 1920s, they were farms like I just described where people had lots of different fruits, vegetables growing, different livestock. They had everything they needed to survive on that one homestead or that one farm. It wasn't these big massive agricultural units today where they grow one crop that gets sent off to be used as animal feed. So you have to think going into a crisis, you want to be on one of those self-sufficient units and you want lots of those self-sufficient units around you so that everybody has enough. Then you can trade and barter and focus on things like security and taking care of business. But yeah, I think I would do anything to get to that right now because there's so much uncertainty. The structures above us that are going to come down are massive. This is a period of change unlike anything we've seen in the last 500 years. And if you go back right to the beginning of the modern era, every time we have a changeover of the global reserve currency, there's a lot of war, whether that whether that was the League of Cambrai with the Venetian Ducat, the Anglo-Dutch Wars, the Napoleonic Wars, World War I and World War II, and now we're in World War III. So, it's very serious. And I'm not saying that to be uh to try and make people feel afraid. I think you feel less afraid once you've managed to get some kind of self-sufficiency. That's the hard part. The hard part is getting yourself to that. If you manage to get to that point, and I think it's within anyone's grasp who really wants it, you've just like I said, got to sacrifice. When I first came up with the idea, I had no money. I had to learn to invest. I had to learn to save. I had to do a lot to get to the point where I could afford to buy a farm. And when I did, I bought it outright in cash because I really focused on it. I went all the way on that vision. And that's what you have to do. And if you want to do that and you're serious about it, you can do it in a much shorter period of time than most people think. So that's the hard bit. But once you get there, if you manage to reorientate your life to do that, the planting and the setting up the gardens, that's the easy bit. You don't need a lot of knowledge. You'll figure it out as you go along. Yes, it's a difficult first few years. Yes, you'll make lots of mistakes. Yes, a lot of the people online on YouTube give bad advice because remember, every plot of land has different soil, different environmental conditions. Where I live, it's a cold part of the world, so we don't have a long growing season, but we do get a lot of water, so it swings and roundabouts. We have lots of uh abundance of water. There's no issues there, whether that's my well water or whether it's the rain that I get a lot of. But I've got friends. I've got people in my community. There's Liz over in Portugal. She's got land that's got a really long growing season, hot weather all the time. She grows an abundance of food, but she has water issues because it's a lot hotter. So, you have swings and roundabouts in terms of climate. You have to figure out what works for you. You have to overcome the unique obstacles and barriers that you have in your uh specific location, but there's lots of uh tutorials that will help you get started. Personally, I like to keep things simple. Uh permaculture is nice and easy. I don't really like the very expensive uh bourgeois permaculture stuff you see nowadays where people go and spend 15 grand to have a course. It's like no, just buy yourself Sepp Holzer's book called Permaculture. Sepp Holzer is like the old school original. He was fighting the system before it was cool. Uh he bought a plot of land in Australia on not Australia, sorry, Austria on a mountainside, a very difficult place to farm. Most people would say it's impossible, but he decided differently. And what he did was he started to create plateaus in the mountainside where he could grow food. And he cut into the mountain to create little uh sties for animals. So little caves where they could uh sleep at night. And he turned an entire mountainside into a very dynamic farm where there was water retention, there was ponds, and every system on that was kind of like built upon another system. So it all fed into each other. So it was a very nice setup where it meant the minimal amount of work for him and his family and the maximum amount of food and enjoyment. Now, they didn't like that in Europe because in Europe, they want people to farm, like I just said, they want everyone farming these big monoculture crops with lots of toxins and crap. And they subsidize farming to force you down that path, which is why most of the small family farms that used to exist in Europe. And it used to be an entire continent of small family farms, now it's these big, massive industrial agricultural units that in a food crisis would be useless. They would be absolutely useless. Well, he refused to do that. So, he got himself in a lot of bother with the authorities because they kept trying to force his farm to close and, you know, they wouldn't allow him to farm that way, but he did and he pushed through. So, I'd check out his book, but like I said, there's many, many others that you can find online as well. Uh, okay.
The last question I think I'm going to do for this one is any hints how much of your wealth to put in precious metals and how much in what else?
Well, you know, this is a very personal thing. If you go to the traditional advice, it used to be 5% in gold. 5% in gold. Now, I've always said that no, going into a reset, you want to be much heavily much more heavily weighted in gold. There's times to have less gold. Like between 1918 and 2000, for example, at the end of the 1970s when gold had gone up 23 times, maybe that was a time looking at the ratios to start cycling out of some of your gold position and into other assets because other assets were becoming very cheap versus gold. And that's how you value things. It's always versus one another. So, you look at ratios. How much oil do I get for an ounce of gold? For example, how many barrels of oil? How many properties do I get for uh so many ounces of gold? Or how many properties or how much is a property worth in gold? You're always looking at ratios. And if you look in the 1970s, at the start of the decade, if you sold the average price British house and put the money into gold, at the end of the decade, the same amount of gold it took to buy one property now bought you five properties. So when you look at that ratio, at the time you'd have probably said, "Oh, you know, I can buy five times the amount of property now than I could a decade ago." And because I positioned myself correctly in gold, now I can transfer out of some of that gold and buy some more acreage or some more uh residential properties or you could have bought US treasuries because it was a great time to buy US treasuries then. Where we are now is at the complete opposite end of that cycle. So what we're seeing today is that gold's outperformed the stock market for 25 years. The stock market is up 3 uh sorry 350%, gold 1,250%. And that's speeding up now going into the end game. So I've always said, and I'm going to share this screen with you in a second, but I've always said going into the end game, you want to be massively overweight gold because it's going to make you much richer and it's going to protect you going into the financial reset because going into a reset, there are mass defaults on all of the other obligations. All financial assets will be defaulted on. You know, we spoke about the Great Reset a lot on this channel. They're backstopping the debt pyramid. I've got it here on the screen. They're backstopping that two to four quadrillion at the top with your retirement accounts, your bank deposits, your private investments. They've accepted your property rights so they can backstop that so that a select few elite banking factions can survive the reset and you'll have everything taken. And that go takes us back to the uh to the idea that they want to put you in this technocratic system. So, you want to be in an asset that's going to protect you financially that we know is going to be the reset asset. That's why the central banks are holding it. That's why all the wealthiest families hold it. That's why it's going up relentlessly. And it's got no counterparty risk. So, therefore, your wealth foundation should be gold. Now, I created a tool to help me with my clients. It's called the wealth preservation pyramid. And I'll share it with you now. And you can see the wealth foundation is physical gold. Now, people used to say 5% in physical gold. I say no. You want to be 40% minimum going into a reset. Now, you might say, "Well, that's terrible. Why would I do that?" Well, the reason you do that is because it's outperformed the stock market for 25 years. So, you want to be in the best performing asset that has the least risk and that's physical gold. Especially if you know they're planning to reset the system and we're going into a debt collapse because that ensures that you survive. It's also highly liquid. And if you look at how I structured the debt, sorry, the wealth preservation pyramid, the bottom two sections, wealth foundation and savings are the liquidity section. Now, gold's extremely liquid. You can transfer that into currency at any point at any time in any country. You just take it in, you trade it in uh for the spot price and you'll get the currency of that nation. So, it's the king of money and it's also going to protect you in a reset. So, that's your foundation. If everything else fails, you will still have your wealth foundation and therefore you will see yourself and your family through to the next system. But if it's only 5% of your portfolio, it's going to be pretty meaningless. So it has to be meaningful. And the fact that it returns better than the other assets anyways, well, it's a no-brainer.
Now, the second tier is savings. Now, the savings tier is dynamic. That's money that you're going to be using in the next six to 12 months. So, let's imagine that you, for example, was selling your property and you put your property into cash or bank deposits. I would say you put it in T-bills, short-term treasuries, because you know you're going to buy another property in the next 3 months. Why wouldn't you put it into gold? Well, because in the short term, gold can be volatile. It could fall 15%, 20% if you have a major market crash for the simple fact that we have a lot of paper selling. Of course, it would rebound as people rush to safety, but you also need liquidity for immediate use if you're going to buy a property or you've got, for example, if you sold a lot of your investments because you thought the stock market was going to crash and you wanted to be liquid so you could buy back in at the bottom, you wouldn't again put that into gold. You'd probably put most of that into savings. So, there's a savings tier here. You don't go into the reset with a lot in there. That's just for short-term usage. Anything that you you that you're saving for long periods of time goes into the wealth foundation. And then the top part of the pyramid is your growth and income. So that's equities, bonds, investment, real estate, and then at the very top speculation. And as you can see, the sections get smaller and smaller. So the savings part is optional. That's when you need savings. Otherwise, it would be wealth foundation and then growth and income and speculation. Now, most people have this completely backwards. Most people have this growth and speculation and no wealth foundation. So in a market crash, everything could be lost. In a great reset or a great taking, it's all gone. You've got nothing. So that's most people. That's not where you want to be. Our wealth foundation ensures that's not us. And then we strategically go into equities, bonds, and other assets when the time is right. When there is an opportunity where we have a really high chance of getting great returns for very low risk and that's possible but you have to be good you have to be patient you have to time the market a little bit and then you can even have a little bit of speculation but it might be only 5%. So for me I think going into a reset you wouldn't want more than 10% of your net worth going into equities and bonds. Now, for most people that would be blasphemous. They'd say 10% I'll never earn enough money. But yes, you can if you actually understand the cycles and you get in at the right time and you take profits and then you convert your profits back into what? Well, you convert it back into the wealth foundation. And uh and you can also have other assets too like farmland for example or other physical assets. It doesn't just have to be physical gold, but gold is the liquidity part of it that's very liquid. And you'll also notice that going up the pyramid is increasing risk as well. So that's just a short explanation. And in terms of the ultimate answer for you as an individual, well, it's based on uh it's based on your own situation. But I would say if you told me 40, 50% in uh in gold, I'd say yeah, that seems reasonable to me going into a financial reset. And you know, then you can find other opportunities along the way. In fact, I shared one earlier this year with my subscribers of my uh Substack and Patreon community. It's called Why I'm Betting Big on Uranium. And earlier this year, we saw uranium had collapsed for almost 13 months straight. So, in 2024, very early in 2024, we saw the peak in uranium. And we saw a huge correction. It took place over about 13 or 14 months. And as we got to February, March time this year, I put out an alert and said, you know, I think the market's going to bottom. And I'm adding to my positions of a company called Yellow Cake, which is a company that stores and holds uranium. So, it's a very safe company. It's not a minor. And for many reasons, I don't like the miners for the most part right now. Certainly, at times, miners can be useful. But I think going into a reset with the bifurcation of east and west and trade routes being rewired, we're going to see lots of nationalizations of mines, capital expenditure is going to collapse going into the great depression, great air depression, and we're also going to see all kinds of uh fraud come to light, too. So, I like companies that have low risk is my point. And Yellow Cake is one of them. The Sprott Uranium Trust is another. Uh, so, I put an alert out earlier this year. Uh, we've seen a 32% gain since then or actually it's a little bit more because I buy in trenches and I recommend people do so that means that during this whole period at the bottom round down there we was uh buying over three tranches so around 40%. So yeah, that's another uh that's another asset and way of investing is be very strategic. Get in at the right time, but always take your profits too. And that's what I teach in my investor's coaching is how to do that. Understand the cycles. Uh, and you don't want to be hanging around in stocks for decades because we don't know if we have decades. We might not even have five years. So that's why I think your equities position should be only 5, 10% maybe. If you was fully allocated, it would be 10%. But for the most part, it's even less than that because there's not a lot of opportunity. But when there is opportunity, you strike while the iron's hot. You take your profits and then you convert back in that back into your wealth foundation. And it's almost like using the stock market as a cash machine. This buy and hold strategy, it ain't working anymore because we don't know when the system gets reset. I think it's going to happen soon. But I'm not going to say when because that's a question I'm going to be answering in part two for members over on the Substack. I'm going to answer another round of questions from members. So, one of them is about when do I think the reset's happening. Another one is about gold and silver miners, which I'm very interested in. I have a very different take on gold and silver miners to most people. So, I'll tell you a little bit more about that in the second part if you stick around for it. Another question is, what's first, gold revaluation or tokenization? Uh, how do you see interest rates after the upcoming reset and crash? So, lots of great questions to answer in the second part. If you're leaving us here, thank you so much for listening. Please give it a like, thumbs up, and subscribe if you haven't already. And if you would like to listen to part number two, head over to the Substack and I'll see you there. Thank you for listening. Have a fantastic week, and I'll see you in the next one.