Transcription
Andy, how are you?
I am wonderful, thank you. Thanks for having me, Mario. I appreciate it, bud.
Pleasure is all mine. Um, look, I'm I'm excited for this conversation. Been watching your content for a while. And um, as I said earlier, like as that's the first time we're chatting, I'll ask you kind of a broad question. Is um your general thoughts about the the the uh the economy today after this war? How it looks like it's going to make sense of how things are behaving, whether it's gold, silver, oil, equities, etc. A lot of people, it's like everything people warned me about during the war and before the war, like if the war in Iran will happen, this happens, this will happen. Everything that was I was warned about before the war did not materialize. So I'm a bit lost trying to figure out what the hell is going on and hopefully you can kind of shed some light to it.
You know, I think that when it it depends upon where we're talking about, but you know, for me, what this really is is an extension of many of the things that we saw during the previous administration. And it focuses on one word, trust, or lack thereof, trust, of a system, a global system for 50 plus years has acted on trust. And when trust breaks down, whether it be monetary trust, fiscal irresponsibility, sanctions, um that in in I think much of the world looks at as hypocritical. Give you an example. Sanctions against Russia, uh taking their their treasuries, kicking them out of the Swift system for whatever they did. This isn't a declaration on any war, right? But the world looks, much of the world looks at the fact that we invaded Iraq 23 years ago under false pretenses, destroyed their country, and we're still there. And there are no consequences. Yet Russia does what Russia feels they have to do. And there are their their treasuries are taken. Four billion dollars worth. They're they're kicked out of Swift. Their countries that work with them are sanctioned. We see tariffs. Are they tariffs? Tariffs are supposed to be put in place to protect a domestic manufacturing base. It's almost as if they are sanctions masquerading as tariffs. And yet we have massive fiscal irresponsibility. We're we're nearly $200 trillion in debt and we are the world reserve currency. You know, everyone focuses on 40 trillion, but that excludes Medicare and Medicaid and Social Security and government military pensions. In essence, we're broke. And a trillion seconds ago was 31,688 years ago. So we're broke. We're going around the world and shedding and losing trust in a system that is all about trust. We're fiscally irresponsible. Um and this doesn't help anything in any meaningful way. Um, in fact, I think it just really starts to open the eyes of a lot of countries around the world that maybe it's even validation of what they've thought for a while now that if you end up on the wrong side of the United States, these kinds of things can happen. This is why we are seeing such an expansion in my mind of alternative systems that are being done very very gradually. In your backyard in in Dubai, we we see a new a new market that just opened up on Monday uh for immediate delivery of gold and silver, immediate delivery of gold and silver futures. I guess you can't really call it a future if it's immediate delivery, but immediate delivery. You see the same thing happening in Singapore. You see an expansion of the Shanghai Metals Exchange. Shanghai Metals Exchange is expanding into uh Hong Kong first. That's important because when metal comes out of China, comes out of Hong Kong. Next is Saudi Arabia and then the UAE. We look at the alternative payment systems like Embridge that just came out that United Arab Emirates is one of the four original designers of UAE, China, Hong Kong, Thailand and then the fifth was Saudi Arabia which is now completely operational. We look at the SIPs network, the cross interbank payment system which is operational. China just signed up all the countries in Southeast Asia, the the Asian is their acronym, ASAN, 800 million people, twice the population of the United States, China's largest trading partner by far. These things would have all been unimaginable years ago. And what we are seeing in my mind is a slow expansion of relationships, trade alternatives, trading in local currencies, the rails of the system. But the key is the expansion of all of these gold hubs and clearing facilities in Dubai, in Shanghai, in Singapore, in Hong Kong, in Moscow, in Mumbai, in you know uh St. Petersburg, all around the system and an expansion through the belt road initiative to ultimately challenge the western hegemony because of things like we are seeing right now. So for me, I look at a much bigger picture and I think all of these things are cumulative and adding to a a position of a system that is is is in need of some trust is in need of some accountability and I think that's what the system is gravitating towards and a lot of that will I think find its its happiness its home in blockchain technology tied to things like gold, a stable coin if if you will, issuance um where the people are no longer beholden to the US Treasury um where the people are no longer trading globally to the same degree in in US dollars. Now, this is a slow-moving process, but these are the kind of things like what we're seeing here in in Iran that is accelerating uh I think the desire for countries around the world to do this. And you know, as far as I'm concerned, nowhere do you see this more than the United Arab Emirates, who stepped out of um OPEC, who is straddling the line between um the bricks and the West, but is a full bricks member, is a signature designer to Embridge, is doing things to, I think, not antagonize the West, but to make sure that their affairs will be, shall we say, aligned with any new um union that seems to be gaining steam. So, I don't know if that really is what you were getting at, but to me, it's just simply this. What this is is an extension of the erosion of trust that I think is permeating through the world, and I don't see it getting any better anytime soon. Um, and I think what we're seeing is a manifestation of that in things that are happening around the globe, like in your backyard.
Jesus Christ, that was a a sick summary.
All right. So, when people when I bring that up with guests, um because you know, obviously there's guests that are very critical of where the of the American system that was built post World War II, the political aspects of it and the economic aspects, the military aspects of it, and how it's been abused over the years. You've mentioned the sanctions on Russia, the sanctions on Iran, previous sanctions before this war as well and how the the the the dollar dominance has been abused, the the the Swift network has been abused. But when you look at things like SIPs and now bring it up, some of my guests tell me, Mario, you're still tiny. It's growing, but for something to grow from 0.5% of global transactions to 2%, it's like, you know, going from this to this while this is the Swift system. um how how vulnerable is the US economy? Because when you look at the national debt, you look at how bloated the economy is, you look at how fast China's moving and you you know compared to the US to China. Not many other countries like China to compare it to, but maybe compare it to China. It looks pretty worrying, but then you look at the metrics that matter. Equities are killing it. The US dollar is still high. Bond yields are not as catastrophic as one would have assumed considering how how bloated the debt is. So there's a dichotomy there that I don't get.
Yeah, I think that this is a high stakes game for sure. No question about it. And as you look at the SIPs as an example for your first question, yeah, I mean it's got a long way to go to really challenge the Swift system. But when you have all of the countries of the Asian nations signing up to the SIP system, that's roughly 30% of global GDP. It's twice the population of the United States. And as we continue, we see Embridge now rolling out. And as we see more and more and more countries stop trading exclusively in US dollars, as an example, that begins to slowly chip away at the settlement status of the dollar. But more importantly than any of this is the desire to no longer hold a copious amount of US treasuries which chips away at the reserve status. This is the bigger issue uh as far as I'm concerned. A a far bigger issue. If there was a word dtreasurization, it's far more important than than ddollarization. And you know the dollar and the milkshake theory is relevant. You need the dollar to pay down your debts and to transact global business. And so there is a demand for the dollar which has pushed it higher. Doesn't mean people want it. It needs means they need it in order to conduct business for now in order to build the rails to make this work. It has to be a slow-moving process. It's you can see what happens when the the west is immediately threatened. You saw that with Gaddafi. You saw that with uh Saddam Hussein. And both wanted to sell their oil for for euro and for gold. And and well that ended poorly for them. And I think what you see now and it's being put forth as an expansion or internationalization of the renminbi of the yuan. Um but it's really the rails of the bricks. It it is the rails of the bricks. And slowly not only do you have these countries strengthening their own monetary system, trading their own local currencies, which is beneficial to them more so than it is to the United States. But at the same time, when you look at gold versus the Treasury market, number one, it's doubled the performance over the past 25 years, literally double the 10-year Treasury gold has, and it's about 10xed it over the last two, but in your physical possession has no counterparty risk. And I think that is a theme that you see all of these exchanges that the Shanghai Metals Exchange intends to internationalize throughout the Belt Road in conjunction with the existing exchanges in Dubai and Mumbai and and now the new one in Singapore of course the new BRICS exchange that's coming up Moscow St. Petersburg. All of these exchanges and all of the new ones that are being built, including Saudi Arabia, will allow for settlement in currency and trade imbalances to be in gold. It's one of these things. The people often that analyze this stuff and say that to you Mario, they don't have the ability to I guess you can say look past maybe their own nose in the respect that people will dismiss something that takes long to unfold. The little by little by little by little type of progression that is needed to do this the right way. the regimented very very well-thoughtout and plotted progression that we are now seeing and it's beginning to accelerate. But you now have rails to trade. You have settlement hubs that are expanding for immediate delivery of physical gold whether it be through embridge or sips um as an alternative to the the treasury. So yes, it's slow-moving but it will it will progress to a point I believe at some point and I don't think you have to look that far down the road because it is happening and it's accelerating more than I really um can believe. Um to where it will be very difficult to challenge um so yeah I think it the skepticism is is is normal. it is and the dollar is still the king. But when you look at what's standing behind it, um you know, we are a nation that if things don't change, you could argue is in trouble. You know, we have 60% of the country with a literacy rate under the sixth grade. According to Ray Dalio just the other day, he said it again in a in a presentation. We're $200 trillion in debt. We don't make anything anymore. We don't have any manufacturing. And here comes AI just in time to kneecap what productivity we do have. And so I think that when you talk about, you know, the United States being the reserve currency, yeah, it has the rails and and that is what it has going for it. The liquid markets, the rails, the history, and it's just ingrained in everything. But you could argue a system that no longer is backed by gold as we once were, is backed by trust. and the the arbiter of the um reserve currency is really the one that is I think losing trust and at the same time being judge, jury, and executioner for those around the world that do things really no different than we do. It's a system ripe for change. And I think to ignore that is is a mistake. And a lot of people ignore it. They do. Um but but that's to be expected I guess when you really don't hear much about it by the mainstream because what you are you're challenging a new system or you're challenging a system rather that has been ingrained for a very very long time. So yeah I I expect that we will see more and more and more realization that there are alternative systems being set up. You know United Arab Emirates and Saudi Arabia are two good examples of this as is India. They're straddling both sides. They're not antagonizing the West, but yet they're deeply involved in all of what's happening in the global south. I think that'll start to perhaps move more and more and more to the global south over time. Maybe it's 2030, maybe it's maybe it's next year. But I think to frame it as it happening right now immediate is the part that most people have a hard time dealing with. If it's not happening right now, then there's no way it can happen. But take a step back and look at what's being put underneath the the system, the rails and and the infrastructure. And it's hard to ignore that they're serious. The rest of the world is serious. And um I think it will be the undoing of a of a lot of people who who underestimate. Look, as it is right now, you put the bricks together, they represent three of the four largest nuclear arsenals on the planet. You put them together with the belt road, you have 60 70% or more, 80% of human population, the majority of all the commodity production, the manufacturing production, the the onland and onsea roots, um the the rare earth refining, the rare earth production. You have all of these things going for it in a in a in a group like the Shanghai Cooperation Organization that is all cooperative, not coercive. These things are starting to gather steam. and they're starting to gather credibility and it's not going to happen tomorrow, but it is happening and I think that's the most important thing to take away from this.
All right, man. I I've got a lot of a lot of notes and they just keep compounding. Um, I like what you said. The system moved from being goldbacked to becoming trustbacked and you've just been explaining for the last 10 minutes how we've broken that trust time and time and time again. And when you're backing it with something that you keep eroding, then what's it really backed by? So what is the so what happens then? And what is the because another argument that is being made is there is no alternative to the US dollar. The renminbi is far from it, doesn't have trust, doesn't have transparency and the euro the euro is doing worse than the US.
Correct. And and I would agree with that. Um I think what China is trying to do is expand and internationalize the renminbi which will be the rails of the bricks. I think this will be met between blockchain technology and gold redeemability on a central bank level. Um where the countries will through blockchain technology trade local currencies and settle in balances in gold. If you look at the Mbridge and the unit settlement currency, it's 60% uh bricks plus currencies, 40% gold, redeemable by the central banks upon request, held in multi-jurisdictional vaults. You know, people say who trusts China? Who the hell trusts the United States anymore? And I don't think a lot do globally. Trust is something once broken, hard to get back. And when you look at the fiscal irresponsibility of the United States creating a trillion dollars in debt roughly every 150 days um with zero aspirations of austerity to fix the balance sheet to get things done um to get our balance sheet in order uh I I think that argument is is is old. Um I think you look at what China is trying to do um by expanding um these rails they are all very transparent by nature um the way that they are designed especially Ambridge and especially having multi-jurisdictional vaulting of gold where immediate delivery is is um is allowed is part of the system. So what it will be in my mind is rather than see my my entire thesis on all of this Mario is that the United States is trying to shed the reserve status. I think that's what they want to do. They do not want to be the reserve currency anymore because it's impossible to have a manufacturing base if you do. There's something called Triffin's dilemma which speaks to this. It says if you're the reserve currency you can never have a trade surplus because the world needs more dollars than we can provide through trade alone. So let's just look at a country like um Cambodia. Well, we don't do much trade with them, but they still need as many dollars as any other country does in order to to buy energy and to transact globally. So they have to sell their Cambodian currency in the open market to buy dollars. And over time, the continual selling of their currency to buy ours creates a big imbalance. And someone over here says, "Hey, why don't we send our t-shirt manufacturing company to Cambodia? We'll make a lot more money." Sure, let's do it. And off it goes. and over time you hollow out your manufacturing capability because it all goes to where money is cheapest. Well, that's that's an economic theory. Triffin's dilemma. Vice President Vance has talked about it a lot as has the previous economic adviser to the Biden administration who was a total [ __ ] Um, watching him try to explain how um Treasury bonds are are created was rather embarrassing.
I remember that. I saw that. I saw that video. I thought it was an AI generated video.
No, it was real, brother. it was real. But he did write a report called dethrone king dollar which speaks to this that we can no longer be the reserve currency. So along comes the genius act and along comes ideas like Judy Shelton's which we can dive into if you would like which to me is a way for the United States to bring back manufacturing. My mentor Richard Russell, God rest his soul used to say Andy the Fed has two choices. They can inflate or they can default because the third option producing more than we consume is off the table. We don't produce enough. In fact, we consume far more than we produce. So, you can inflate or die. Now, the third option would be to to find a way to produce more than we consume. But remember, we're broke, we're insolvent, we don't make anything, we're uneducated, and here's AI. And Triffin's dilemma says if we're the reserve currency, well, we can't do that. So, how do we do it? That's the question. Because in my mind, the the the folks in the global south understand this. They see this. They see it's coming and they see it's not immediate, but getting the rails in place before the whole system breaks apart is very important. Now, I believe President Trump understands this. I do. Um, and maybe I'm crazy to say it publicly just because I think it, but there are things that are happening, Mario, that I believe right in front of us make you say, hm, that's interesting. And I'm happy to dig into it if you'd like. But I will just simply say that I believe that the United States would rather not be the reserve currency. As crazy as that sounds, because if we stay the reserve currency, we're in big trouble. Really big trouble. Our children are in big trouble. and uh we don't have much of a future. If so, it's a privilege we can no longer afford.
Can you dig? You said you can dig into it further.
So here's what I think could possibly be happening. All right. So, let's start with the basic thesis. We need to bring back manufacturing. How do we put our kids to work? How do we look at Junior and say, "Junior, you too have a great future." The American dream, they call it, right? I know we're broke. I know we have massive deficits and a gigantic debt. and well AI is taking a lot of the jobs and yeah we're not real educated and what you can figure it out right no we need to bring back manufacturing no matter what right so the first piece of the puzzle was Jared Bernstein and Vance saying yeah you know Triffin's dilemma we can't afford to be the reserve currency anymore it it's it's it's hollowed out manufacturing has to stop right there's the first piece second piece would be if you were going to do something along these lines and we were going to use gold, which is part of my thesis, and I'll get to that. The first thing you would need to do is reshore gold. Well, since Trump won the election, we have seen somewhere in the neighborhood of um just since the beginning of the year, we've seen somewhere in the neighborhood of 45 billion worth of gold delivered. We've seen about 12 or 13 billion delivered so far in the month of June. So every single month for the last 18 months, there's been billions and billions and billions and billions of dollars worth of gold delivered every single month. Now what's unusual about that?
To the US?
To the US? It's never happened before. The less than 1% of contracts would stand for delivery my whole 35 year career. By the way, we've had since the be from January to May, we've had about 170 million ounces of silver physically delivered, too. And normally they would exchange pieces of paper, warrants. Now they're saying, "No, no, no, no. I want the numbered bars. Thank you very much." And so we're seeing massive amounts of gold and silver delivered every month. Now the mainstream media isn't saying, "Who the hell is standing for delivery in all of this gold and silver? Who's doing it?" Uh, in in the month of February, 4.7 million ounces of gold stood for delivery as the price was getting kneecapped, right? And same thing, China more silver imported in the three first three months of the year than ever in the history of the country as the price was getting kneecapped. 45 billion in gold delivered in Jan between January and May, right? About 10 million ounces as the price was getting kneecapped. Now, this is continuing to happen. No one says, "Who the hell just stood for delivery for about 13 billion in gold so far in the first three weeks of June?" No one's asking that. It's all that truly matters. So, let's just leave that on the sidelines for a second. All this gold is coming in. Don't tell anyone. No one says anything about it. Billions upon billions. All right. Part of the thesis. So, how do we do this?
From where? Sorry. From where is it coming? If the US is importing it, China's importing it. I've heard other countries as well as repatriating their gold. Where is it all coming from?
Well, a lot of it's coming from London. Some comes from Singapore and Switzerland and Venezuela. Um, it's all coming in. Some's going out. Why is China in Why is a lot of it going to China? Because you have traders here that are stupid who realize that the the arbitrage that they are offering which hasn't gone away. Arbitrage only lasts a little time. The traders exploit it. The silver arbitrage has been about a year where they're offering about 11% 12% more than the West. Call it 1011 or more than the Western price. So you deliver 10 million ounces by exchange for physical to Hong Kong on Brinks, which is a comx contract. It's picked up and driven to the Shanghai exchange. You deliver 10 million ounces at 11 buck premium. You made 110 million and off you go to buy your yacht in Tahiti. A lot of that has happened. That's just traders trading stuff that isn't already spoken for by whoever. But the question is who the hell is doing it and and where is it coming from? Okay, fine. Let's leave that aside for a moment. So how do you do this? Let's start with the Genius Act. Most people don't even know what the Genius Act is. I know you do because you focus on things digital and stuff like that. You know what it is, but a lot of people don't. On my side of the table, the Genius Act becomes law in January. And the Genius Act says from January forward, anytime money moves, period, in dollars globally, it's backed by stable coin, backed by short-term treasuries 90-day or less in duration. So number one, you've just created synthetic demand for the US Treasury on the front end, which the dual mandate of the Fed, you've just pinned it to the ground. Worsh won't be able to do anything with the front end of the curve. If anytime money moves, it's pinned to the ground. I mean, buy a pack of cigarettes, short-term treasuries are purchased. Buy a new villa, short-term treasuries are purchased. Buy a new car, short-term treasuries are purchased. But what does it say about the interest? the Clarity Act, the interest on those treasuries, it's not transferable. It's between if I if I'm sending you a a a payment in dollars, it'll just transfer like that, right? We won't notice anything different when we look at it, but how fast it transfers. The interest does not go to you or I. It's held by the issuer. Now, the primary beneficiary of of the stable coin issuance so far, dollar base, has been Tether. And it's interesting, they've bought more gold over the last three years than anyone in the world with the exception of the Central Bank of Poland. I want to mention what Adam Glinsky, the central bank of Poland, uh the head of the central bank said. Remind me to tell you that. But anyway, so they've been buying all of this gold. That's interesting. And now Bo Hines, who was Trump's cryptosar, quietly slips into the role of CEO of USA Tether, the the branch of Tether that is already Genius Act compliant, right? So, you know, Tether was in trouble for a while. The Justice Department was investigating them and that just went away. You know, could it be this is the line of conspiracy and reality right here. Could it be that maybe there was a deal worked out? So, just like Steven Mnuchin, the architect of the Murkowski accord, somehow ended up at the Fed, could it be that Bo Hines is in there to kind of oversee things? And here's what, you know, the the deal was. Listen, you guys, you can't transfer the interest. You're going to buy gold, lots of gold. We're going to call this proxy accumulation for the US government. So, the US government, they're not inside, you know, their fingerprints aren't all over the gold market. You're going to do it for us. You're going to sell that gold to the treasury at some point very quietly. We're going to pay you a fair price. You're going to make a gazillion dollars. You're going to be happy everyone wins, right? The act of so every time money moves short-term treasuries. The interest isn't transferable. They're buying gold like it's going out of style. What does that do? Gold is the only neutral barometer by which you measure anything. It's the only neutral reserve asset. You know, we talked about Triffin's dilemma. Countries sell their currency to buy dollars. So you can't measure it against the Dixie, a basket of [ __ ] currencies. You measure it against gold, which is the one neutral asset you can measure against any asset or any currency. So as Tether buys more gold more and more and more slowly organically, even though it's synthetic in nature by it being tied to the money movement, genius, diabolically genius, but every time they buy more gold and more gold and more gold and more gold and more gold, gold goes higher and higher and higher. What happens to the dollar? lower, lower, lower, lower. When Roosevelt confiscated gold in 33, he paid everyone $20.67 for their $20 gold coins. That's a lot of money back then. 67 cents bought you, you know, five, six, seven dozen eggs for that, right? So, okay, but then he immediately devalued the dollar by 40%, making gold $35. By devaluing the dollar, you make gold higher. When when Nixon did it in 19 after he closed the gold window in 71 at $35, the next year he made it $38 devalued the dollar by 7%. The next year $42.22 where it's been on the books ever since. So you say to Tether, you're going to do this and anytime money moves, you're going to buy gold. You're going to put gold to the moon. You're going to devalue the dollar. Now that's the first part of the deal, right? That's the the genius act. So here's where I start to think, wow, what if Judy Shelton was right? Judy Shelton is the smartest lady I've ever talked to, one of the smartest human beings I've ever ever spoken to in my life. She uh was Trump's nominee to run the Fed in 2016. Now, this is her story, at least what I'm about to tell you, and I've kind of taken it a little further. She said to me, Andy, when I was on the transition team, Trump administration, in no uncertain terms, he told me July 4th, next week, is the biggest day of his presidency. It's the 250th anniversary and it is my belief that he will issue a 50-year treasury peg to gold. Now I'll explain what I mean by that in a moment. In her book, Good as Gold, which is a New York Times bestseller, she says it starts as a 50 with a very small coupon, maybe half a percent or one, but then over time will be 5, 10, 20, and 30-year treasuries redeemable in gold at a fixed amount of gold, zero coupon. I'm going to connect all the dots for you here. So whether or not this happens July 4th doesn't mean it's dead in the water. If it did, why? There's going to be a lot to talk about, but she says this is what they're going to do. So why would they do that? Well, here's what it would do. If they did that, let's use a 20-year because it's easier to to figure out. If we use a 20-year bond that is deliverable in 20 years at $20 million worth of gold today, that's 4,000 ounces of gold just about, right? So, uh, or excuse me, 5,000 ounces of gold, $20 million at $4,000 a piece. 5,000 ounces. If I sold you a bond for $20 million bucks, deliverable in 20 years worth of gold, it's 5,000 ounces in 20 years. Well, you have a company, VANC, the mutual fund company, um, their emerging market bond team, said, you know, just recently, if the dollar really did lose reserve status, we could see gold going to $139,000 an ounce. Instead of the US government revaluing gold like everyone thinks they're going to do, maybe they market to market, every $4,000 increase in the price of gold gives a Treasury General account 1 trillion free and clear. Market to market. James Rickard says, "Well, what if they market to $24,000?" Well, they could. It It doesn't need congressional approval. That would give the Treasury $6 trillion free and clear. But let's just say they market to market, right? Or or don't. But here's what happens. So if Judy Shelton is right and they do issue those bonds and and you do see the dollar quietly soft default on the reserve status, why? To pay down the debt as gold goes higher and the dollar goes lower to bring back manufacturing. Everyone in the world has sold their currency against ours to make their currency cheap to sell us their stuff. Triffin's dilemma says that ain't going to work. You will never have a trade surplus. So now you back the back end of the bond market with gold deliverable in 20 5 10 20 30 zero coupon means zero upfront borrowing costs in that $20 million scenario I now build a brand new state-of-the-art manufacturing facility for $20 million and as the price of gold goes higher and higher and higher because every time money moves via stablecoin it's backed by the treasuries the interest isn't transferable Bohines and Tether put it into gold Gold goes higher, the dollar goes lower. That gold gets sold to the treasury. Te Te Te Te Tether is happy as a pig in mud. The US Treasury has all of this gold that keeps going higher and higher and higher and higher and higher organically. And now in that bond like like Van fund says $139,000 if the dollar loss reserve status in dollar terms. Well, that's about 120 ounces of gold instead of 5,000 ounces of gold in 20 years. So, you put it all together, you would be able to bring back manufacturing because you can build updated state-of-the-art manufacturing with zero borrowing costs. And you can pay, you can sell your manufacturing to the world in a dollar that keeps on getting devalued as gold goes higher and higher and higher and higher and higher. You haven't done anything other than what the market is doing. You can pay down that debt much easier. You can sell your products to the world much easier. You have a shot a shot at building something to to to allow your children to have a future. It's the Shawshank Redemption, brother. A Andy Andy um
Defrain had to crawl through two miles of [ __ ] to get to the other side. We have to crawl through that too to get to the other side. We can inflate the hell out of the currency as all governments have done. We can default. We got to find a way to produce and we cannot be reliant on the rest of the world for everything from aircraft parts to aspirin, everything. And we have to give our children a future. We have to give them the ability to to have a job. And this is how you would do it. You would instead of the United States being the leader of intellectual property. How about the lead leader in manufacturing? And all we would have to do just like Vance has said, just like Jared Bernstein has said, we can't be the reserve currency anymore. So the moral of the story is you save in dollars, you're dead. Um you you save in assets, you're not. And so maybe for the very first time ultimately the United States wants gold to go to the moon so that we have a shot of bringing back manufacturing to sell our products to the world to give our kids a chance and to you know look at the future generation and say yeah you guys have a chance to opportunity the way we did because right now I don't know that that's the case the way things are right now. Does that make sense?
US ends up Yeah. And then the US will end up with a weaker dollar, easier to pay back its debt, more gold and a manufacturing to the world, state-of-the-art manufacturing, all of this stuff. Because think about it, if you have a big debt, you can inflate, you can default. What else do you do? You you you produce more than you consume. And we're the opposite of that. We consume more than we produce. That's the problem. So this is I think a way to do it and and I've said this to really smart people. Um and I don't really people start to think now is it going to happen? I don't know. But I would say to you that if if he is doing this, God bless him. There's nobility in what he's doing. He couldn't say it. Um because I I quite frankly I got three young kids, man. And and I'm worried about the future they're growing up in. I'll give you an example. My oldest, my son works for me now, but he went out of college and went and worked at Price Waterhouse. They paid him $80,000 a year to analyze a balance sheet of a real estate investment trust. Now, you tell me what the hell do they need a kid grand with benefits to analyze in essence a glorified Excel spreadsheet when done. Okay, you're fired. So, my point is, but that's that's going to be a lot, right? Um, I had to make a PowerPoint presentation for um a a a conference I'm speaking at next month here in Bokeh, the Rule Investment Comments, Rick Rule. I never make my own PowerPoints, but I was going to do it to help the person who makes them for me. And in in 15 minutes when I uploaded the the uh outline that I made, it made the most ridiculous PowerPoint I've ever seen in my life. It's like things are changing and we need to have a way of putting our kids back to work. And even aside from that, it's a matter of national security. We cannot be reliant on everyone else for everything we need in a currency that is being inflated away and in a treasury that no one wants anymore. This is a problem. So synthetic demand for the front end, gold backing on the back end to weaken the dollar to push and you look at a company like Tether. Um maybe maybe
So by the way I was going to tell you um the I don't
In a world in a world that's del globalizing as well like this is bring having it the manufacturing back in the US is becoming more of more and more of a necessity and the Iran world demonstrated that.
Yes. And that's exactly right and and he's been talking a lot about it too. I'll see if I can find um and then one other thing that's really interesting uh that makes me go hm um Kevin Worsh's first hire as his key policy adviser is a man named Paul Winfrey. Well, what does that mean? Paul Winfrey um is an economist and he was one of the economists that wrote a chapter in the project 2025 mandate. is one of them and his chapter was on the Federal Reserve chapter 24. In it, he talks about running a parallel gold standard to fight the inflation and boom and bust cycles created by the Fed. He highlights gold convertible treasury instruments, aka gold bonds. That's Judy Shelton's idea. That's his first hire. I mean, again, I don't know, but I just struggle I just struggle to think they're really that long-term oriented and and to be honest, that intelligent. I just don't know if they think 10, 15, 20 years ahead. all the decisions they've made, the fact that we're in this debt is because they are not long-term thinkers and everything you said is very very long-term strategic thinking. Don't know.
Well, it could be and you you you chances are you're probably right, but
All Trump cares about as the next two years. It's like someone has to, but every president just cares about their administration, the midterms, the next election, whoever they back.
Is not designed for long-term thinking.
Then we're then we are destined to fail.
Pretty screwed. Exactly. In my opinion. Yeah. And and I I don't think I have the exact quote, but I'm going to going to paraphrase it because if unless I can find it here really really quick. Um because it's fascinating. I'm going look here real quick. I It's fascinating
From the Polish uh Polish.
Yes. His name is Adam Glinsky. And I think you of all people would like this. Um, if I can find it in 10 seconds, I'll read it. If not, I know what he said and I'll paraphrase it.
You can paraphrase it. Yeah.
So, basically what Adam said, they asked him, Adam, why does Poland buy so much gold? He says, because when po the Polar Central Bank buys so much gold because when someone pulls the plug on the global financial system, which is completely based on electronic accounting records,
We want to be able to rise from the ashes. Now, we don't expect that to happen, but is the duty of the Polish government of the central bank to be prepared even for the most unfavorable circumstances. That's about 99.9% accurate. So, you have a central banker saying, "Well, when the whole system goes upside down because it's all based on electronic accounting records, we want to be able to still operate." So, but Tether has bought more gold than anyone in the world for three years in a row but the Polar Central Bank. And and when you talk about central bank um transparency, they've claimed that they bought 15 tons this quarter. I believe they the um World Gold Council says that that's not right. You guys have bought 250 tons, not 15, roughly 20 times more than they say. 15 20 times more than they say. They're not being honest about it. They're like the import export numbers are are saying that's you're way off. So all of these governments are not really going to be forthright about what they are doing. I'll tell you this and your point about forward thinking is spot on. And that's why you have so many followers cuz you're smart. You see things clearly. This administration is doing [ __ ] different than any I've ever seen. And maybe they realize that this is our one shot because if not, we're going down a very dark place as a country. um this is how you would have to do it. Someone has to start thinking about the future and uh maybe that's what this is. I'm I'm trying to be as
I hope but but why the Iran war like the only way to kind of connect this everything you've explained with the decision to get into war with Iran and thinking of it strategically 5D chess controlling the shadows for leverage over China as part of that long-term strategy. But that still doesn't really add up knowing that it's impossible to not to control the shadow of homo unless then you go with the other theory that the US would do better relative to other countries because they're a net energy exporter. But even that theory gets a lot of people poking holes in it. So then how do you fit the Iran war which Trump expected to end in a few days? Such a strategic failure. Some people don't think so, but most people think so with such a 5D chess long-term plan for devaluing the US dollar to bring back manufacturing home.
I mean, maybe it was just a blunder. Maybe it's more than that. You ask a guy like Tom Lango and he'll tell you it has everything to do with the Bank of England
Has everything to do with with the old system um that the Bank of England is and and and old London is largely behind um using Iran as a proxy and Hezbollah and all of these things again
Who's that who who's that
Tom Lewo very interesting man and he basically now part of his theory is that Trump believes that the bank of England and London was behind not only the election interference um perception of it in 2016 um or excuse me 2020 but also the um color revolution in the United States and that they it was all done in an effort to keep him out of office that he believes this part of what you're seeing in the Bank of England with the LBMA being bled dry largely the theories that the banks in the United States have gone net long in London exposing the banks in Europe exposing the banks in Canada, the ones that h are massively short and all of the deliveries at some point will blow up the Bank of England. All of it is a theory based upon again this is his thinking that that London is responsible for much of this and he's trying to dismantle this old old money system. Uh again, look, some things happen I guess that maybe aren't part of the grand scheme of things and maybe maybe
Mistakes get made.
Yeah. And maybe he just overestimated, overplayed his hand. I don't know. But all I can tell you is simply this. If something doesn't change, we're in big trouble. That I do believe.
That I do. I I think if you save in dollars, you're destined to go broke. Period. You must save in assets, not in dollars.
Agree, Andy. That was incredible, man. I'd love to do this again. I learned a lot. I'll probably I don't usually listen to my own interviews, but I'll probably have to listen to this one again and take notes. I really enjoyed it and you've got it all on your channel where you do deeper dives, but it was a great conversation. Thank you so much for your time, man.
I would love to do it again. I'd love to have you on my show and thank you very much for having me and uh having an open mind. I appreciate it, brother. And look forward to doing it again.
Thank you so much, Andy. I appreciate it.
You got it. Stay well.
All right, guys. Uh it's one of those conversations where you trying to digest everything and understand it all. Uh, but I highly recommend you listen to this again. The things that Andy's been talking about, a lot of my guests have mentioned it briefly here and there, but he's done an incredible job summarizing something so important, so complex in a very short period of time. I highly recommend you listen to it again. It's very, very important conversation and it's one I would love to have again. Now, we have Sal Mogalaniano in 9 minutes and then we have Larry Johnson right after. I'll talk to you guys shortly. Bye-bye.