Transcript
0:00
the
dollar would collapse the stock market would collapse the bond market would
collapse banking system would collapse the insurance companies would
0:06
collapse
everything this is the great reset little by little by little I call it
logarithmic Decay little by little by
0:13
little
by little it starts to chip away as those dollars are no longer there's no
longer a necessity to hold them and
0:19
as
those dollars start to come home inflation rates would go higher and higher and
higher and higher and but
0:24
when
the world catches on that this is a trend a trend in motion that isn't going to
stop and we only get faster that's
0:30
when
things get very interesting and if we were to see an outright dumping globally
like an operation Sandman um as
0:38
Mike
Adams talks about uh it would be chaotic because the natural reaction of
0:44
of
the dollar creating hyperinflation being dumped across the globe hitting our
Shores in a tsunami of inflation
0:51
would
be a massive spike in interest rates and the overleveraging of the banks in
particular is a real big
0:56
problem
here when they say it's time and they flip the switch I think the West
1:02
will
have a hard time to push back against it because you will be talking the
majority of human population a
1:07
larger
military might a larger portion of GDP and the majority of the world's
Commodities I think they realize that if
1:14
they're
going to do this they need to be methodical about it and have all their ducks
in a row question is how fast does
1:19
it
accelerate and that's anyone's [Music]
1:24
guess
on the spot with Michelle mccy is brought to you by swan on
1:30
bitcoin
hello I'm Michelle mccy thank you for joining us in a major shift
1:36
Saudi
Arabia has let the Petro dollar agreement expire opting to sell oil in
1:41
multiple
currencies instead of exclusively using the US dollar the
1:47
agreement
of the past 50 years expired on June 9th now the so-called Petro Dollar Deal
reportedly stipulated that
1:54
Saudi
Arabia would price its oil exports exclusively in US Dollars and invest its
2:00
plus
oil revenues in US Treasury Bonds in exchange the US would provide
2:05
Military
Support and Protection to the kingdom this helped the US dollar cement
2:10
its
position as the world's Reserve currency and ushered in an era of American
Prosperity so Saudi Arabia now
2:18
looking
to move Beyond an exclusive relationship with the US marks a significant change
in global economic
2:25
Dynamics
and could have far-reaching implications for the US Dollars Dom
2:30
meanwhile
Saudi Arabia's Central Bank has also joined a trial for a China
2:35
central
bank digital currency crossb payment system known as project embridge
2:42
and
this could be another step towards less of the world's oil being traded in US
Dollars and this all happens as the
2:49
dollarization
trend continues with the brics plus Ministers of Foreign Affairs recently
meeting in Russia members
2:57
reiterated
calls to ditch the dollar and use their own currencies in trade and financial
transactions and it's arguably
3:05
the
weaponization of the dollar after Russia's invasion of Ukraine that has
accelerated the trend to dollarize and
3:12
as
the bricks members were meeting in Russia in Italy leaders of the G7 were also
meeting and they agreed to issue
3:20
$50
billion in loans for Ukraine that are backed by the profits of Frozen
3:26
Russian
Sovereign Assets Now ahead of the the United States decided to expand
3:32
sanctions
on Russia and China these new measures Target Chinese companies that
3:38
support
Russia's efforts in Ukraine and aim to deter foreign financial institutions
from dealing with
3:43
sanctioned
Russian entities this caused an immediate suspension of trading in dollars and
Euros on Russia's leading
3:50
Financial
Marketplace the Moscow exchange and Russia has also now officially adopted the
Chinese ywan as
3:58
its
primary foreign currency and this all comes as China has been dumping its
dollar assets Beijing
4:05
sold
a record 53.3 billion dollar worth of us treasuries and agency Bonds in the
4:11
first
quarter and has been piling into gold the precious metal now makes up
4:17
almost
5% of Chinese reserves the highest since at least 2015 now not only
4:23
are
central banks buying gold at record levels but they're also reducing their
share of US dollar res reserves
4:30
according
to the IMF dollar reserves held by central banks fell to
4:35
58.4%
during the fourth quarter of 2023 that is the lowest level in 25 years
4:43
well
here to discuss all of these developments and more what this all means for the
global monetary system the
4:49
fate
of the dollar and your savings and Investments is Andy sheckman Andy is the
4:56
president
and owner of Miles Franklin precious metals he has over three Decades of
experience in the precious
5:01
metal
sector and is a well-regarded expert on monetary history and political
5:06
economy
Andy it is great to have you back with us here on Kito Michelle it's
5:12
great
to be back thanks for having me I appreciate it Andy it is very good to see you
but every time we connect more
5:19
of
what you warn what happen in our previous interviews does indeed come to
fruition so it's always with a little
5:25
bit
of trepidation that we speak now Andy you have long warned that we will see a
change in the dollar denominated
5:31
money
order that the dollar will lose its status as the global Reserve currency and
asset and first time we
5:38
spoke
was January of 2023 where you warned that the trend to dollarize was
5:44
accelerating
especially following the sanctions imposed on Russia after its invasion of
Ukraine and banning Moscow
5:51
from
the international Swift system what many called the weaponization of the dollar
now since then much has happened
5:57
including
the expansion of the bricks something that you said would happen and member
countries formalizing bilateral
6:04
trade
agreements not using the dollar but their own currencies something you also
said would happen we've even had
6:10
non-member
countries like France ditching the dollar and completing natural gas deals with
China paid for
6:16
entirely
in Yuan you also correctly called that the Saudis would join the
6:22
bricks
or align with the bricks they do kind of have a little bit of a toal out of the
water there straddling it a bit
6:28
but
you will correct that they would align with the bricks and last time we spoke
you said that the Saudis joining
6:33
the
bricks would be of huge significance to the Petro dollar status and would
accelerate dollarization and seems you
6:40
have
been right again on that one now they've joined the bricks and just as a
reminder to our viewers the bricks plus
6:46
countries
produce about 44% of the world's crude oil now now the
6:51
Saudis
it seems have let this 50-year long Petro dollar agreement laps they
6:57
haven't
renewed it it doesn't look like they will now this is super important because
part of what keeps the dollar as
7:04
the
global Reserve currency has been its status as the Petro dollar meaning that
7:09
oil
could only be purchased using dollars so let's start off with some
7:15
history
some background here and remind our viewers how the dollar got the status of
the global Reserve currency in
7:21
the
first place if you would be so kind as to give us just a very quick recap of
Breton Woods then Nixon taking us off
7:28
the
gold standard and then signing the Petro dollar deal with the Saudi king back
in
7:33
1974
and how we got you why don't we start off with that
7:38
sure
at the end of World War II 1944 the Allies met at brenon Woods the dollar
7:43
replaced
the pound sterling as a world Reserve currency and we told the world at that
point that you take our dollars
7:50
but
can always exchange them back at a fixed rate of $35 per ounce of gold we will
in essence
7:57
back
the currency by gold making it as good as gold and it was that way until
8:03
you
know 1971 when several of the European leaders in particular de gal
8:08
from
France realized that we were printing more money to fund the guns and but
butter Endeavor and the Vietnam War
8:15
then
we had gold backing it and called our Bluff and sent warships to New York
Harbor filled with dollar bills
8:21
requesting
a transformation into gold and we did that so much so that over the
8:26
period
of about a year and a half about half of the gold held at the treasury was bled
down and this is what led Nixon
8:33
to
take the unconventional Step at that point of temporarily which never opened
back up the gold window and at that
8:39
point
our currency was completely Fiat that would be Breton Woods one Breton Woods 2
Loosely would be when Kissinger
8:46
as
you mentioned 50 years ago last week struck a deal with the Saudi Kingdom
8:51
that
hey we're going to protect you provide you Munitions but for that for that
protection uh you will by extens
8:59
men
of OPEC value oil in dollars and then take the excess reserves and and
9:05
recycle
them into us treasuries and it has been that way for as you mentioned
9:10
50
years now if we take that at face value that this deal was not renewed we
9:15
then
will follow what zultan posar says is Breton Woods 3 where we are right now
9:21
A
system that would be identified primarily by Commodities and I would add into
it transparency A system that was
9:28
predicated
on opaque debt instruments is and Promises by a government that is borderline
insolvent and viewed as I
9:36
told
you way back when uh in 2022 as being hypocritical and we are viewed
9:42
that
way by much of the Southern Hemisphere um I think the days of that being
accepted as a as an asset the debt
9:50
Promises
of a country that is viewed as hypocritical those days are coming rapidly to an
end and we see that by the
9:56
massive
sell-off and treasuries that we've seen over the last year to by the countries
that have been our primary
10:02
creditors
China and Japan and and and Saudi and all of these countries that have been
holding our treasuries seems
10:08
to
be that things are changing quite a bit and I think you can really highlight
10:14
not
only as you mentioned the weaponization of the dollar in the treasury market
but taking the unconventional very dangerous step of
10:21
confiscating
or right let's just call it what it is stealing the Russian assets whether it
be stealing the interest on
10:28
the
acral which the European Union is talking about to fund the Ukraine and
10:33
the
war or the United States confiscating the 5 billion in assets
10:38
we're
holding to fund Munitions to give to the country that we're Ste that is
10:44
fighting
the country we stole it from this is a line that you know once you cross it can
you come back from it it's
10:50
like
a broken glass thrown against the wall can you put it back together before mom
and dad comes home and I don't know
10:56
Michelle
if that's even possible okay before we get into all of those issues again I
just really want to help
11:02
our
viewers understand the significance of oil being priced in US dollars for
11:08
all
this time and what it could mean if indeed this agreement is now fully done
11:15
with
yeah so every country on the planet's had the stockpile dollars for the last 50
years in order to buy oil
11:21
the
significance of that is extraordinary almost as extraordinary as taking the the
reserves the excess and
11:28
putting
it into treasuries which is the reserve status of the dollar the settlement
status of the dollar where
11:35
every
country needed to to own it and stockpile it in order to buy oil is certainly
being challenged by all of
11:41
these
deals that are being done bilaterally where countries will trade with one
another in local currencies and
11:46
this
is a huge deal in other words what is the incentive of countries to hold our
dollars which are being inflated
11:54
away
at a rate of a trillion dollars in debt every single hundred days what used to
take2 200 years to accumulate a
12:00
trillion
now we're doing it in 100 days and and and a government that has chosen
weaponization uh of asset of of the
12:07
treasury
and the dollar if we don't align ideologically so the incentive of these
countries who have been forced
12:14
into
holding dollars and stockpiling them creating a synthetic demand You could
argue is no longer in place now
12:21
how
fast is this unwind is is is the big question but yeah the it's very very
12:26
very
significant the reason the dollar was called the Petro dollar the reason that
it had such great privilege and and
12:34
and
the hegemony if you will was created because everyone had to own it in order to
buy oil and oil makes the world go
12:41
around
you take that away and what is behind the dollar it becomes truly Fiat
12:46
backed
by nothing whatsoever but as Putin has recently said in a conference the
confidence of the United States
12:53
economy
and I I have to you know add to that the confidence of the United States
government and you ask yourself is that
12:59
waning
I'll leave that up to people to decide I'm sure we'll talk about that as this
interview goes on right so you know
13:05
the
dollar backed by the full faith of the US government but paint a picture for us
what happens when people stop
13:13
using
the dollar for oil what happens globally and what happens to people here
13:19
in
the US with dollars well ultimately it loses value I mean the the theory
13:24
really
would be that as those dollars are way more dollars outside the us then
13:29
are
inside the us because of the stockpiling to buy oil for for 50 years
13:35
and
as those dollars come home and and are sold back to the issuer because no
13:40
one
wants to hold them anymore now it hasn't turned out to a into a full-fledged
dumping which I could see
13:46
it
turning into that at some point but there still is demand for the dollar as you
mentioned still does represent 58%
13:53
of
of global reserves and there is dollar denominated debt that needs to be paid
off but little by little by little
14:00
I
call it logarithmic Decay little by little by little by little it starts to
chip away as those dollars are no longer
14:06
there's
no longer a necessity to hold them and as those dollars start to come home
inflation rates would go higher and
14:12
higher
and higher and higher and heaven forbid it's a dumping there's something out
there called project Sandman that
14:19
basically
says there's a whole group of 150 175 countries that have agreed to do
14:24
just
that to dump dollars and treasuries at a pre predetermined time question is
14:29
is
it orderly or is it chaotic but as those dollars come home the level inflation
Rises as those currency units
14:36
are
added to the currency base here which would then raise interest rates and
that's the big thing that I've
14:42
always
talked about is that Powell doesn't want to raise rates doesn't want to let the
the 10year treasury get above
14:47
5%
because of the over leverage system in particular the banks and the broker or
the insurance companies that are
14:54
massively
overleveraged and under capitalized and as rates rise and supposed L this magic
number is at 5% on
15:01
the
10-year treasury um things start to break now if all of a sudden the world
15:07
is
no longer holding dollars and in fact forsaking and dumping them and throwing
them back to the issuer creating much
15:13
much
higher inflation than the CPI would probably tell us the the the market would
demand a higher interest rate to
15:20
compensate
for that loss of purchasing power you can't have double- digigit inflation and
singled digigit uh
15:27
interest
rates your currency dies so interest rates would rise to meet that
15:32
loss
in purchasing power to compensate for that and when that happens that's when
you start to get into problems
15:39
where
as rates rise things that in this country that make people feel wealthy their
stock Holdings their bond Holdings
15:45
their
real estate holdings and the money held in the bank are all inversely
correlated to that moment and the
15:52
overleveraging
of the banks in particular is a real big problem here but if you think about it
if this
15:57
happened
all at once if it was all at once it would be catastrophic as everything in
this
16:03
country
is inversely correlated to a spike in interest rates including the banks and
the insurance companies and
16:09
when
you realize that that this is something that you know I've been talking about
for four years and has
16:15
materialized
much faster than I would have ever have dreamed when I started talking about it
nobody was and now
16:21
everybody
is and when I think to myself could this really happen in a in a in a
16:26
fashion
that would be chaotic I think absolutely absolutely it could look it starts off
slow and the players that are
16:33
in
the no don't want to cut off their nose to spite their face so it starts with
little by little by little
16:39
dollarization
de treasuries replacing gold or replacing treasuries with gold doing it slowly
methodically but when
16:46
the
world catches on that this is a trend a trend in motion that isn't going to
stop and will only get faster that's
16:52
when
things get very interesting and if we were to see an outright dumping globally
like an operation Sandman
16:59
um
as Mike Adams talks about uh it would be chaotic because the natural reaction
17:06
of
of the dollar creating hyperinflation being dumped across the globe hitting our
Shores in a tsunami of inflation
17:12
would
be a massive spike in interest rates the dollar would collapse the stock market
would collapse the bond market would collapse banking system
17:19
would
collapse the insurance companies would collapse everything this is the great
reset could it happen I don't know
17:25
I
hope not but I think that we will see a a progression a continued progression
17:31
of
dollarization De treasuries that we have seen accelerate over the last few
years it's not stopping question is how
17:38
fast
does it accelerate and that's anyone's guess right so even if there isn't this
coordinated operation Sandman
17:44
for
everybody to dump the dollars at once even without that this is very
17:50
consequential
because Beyond agreeing to sell oil in dollars part of the deal was that the
Saudis agreed to invest Surplus
17:56
oil
revenues in US treasur treasury bonds and that's what helped the US dollar
cement its position as the
18:02
world's
Reserve currency and also ushered in an era of prosperity for Americans they
enjoyed the benefits of
18:10
being
the preferred market for Global corporations to sell their we to for all
Commodities and the inflow of foreign
18:16
Capital
into US Treasury bonds supported low interest rates and a robust bond
18:22
market
so what are the implications of that angle alone if the Saudis don't
18:28
invest
that Surplus money back into the US that is the angle alone and a lot of
18:35
people
who push back against this thesis say well you know the braks don't have a bond
market and and the bond market is
18:41
still
the most liquid and where do you put your reserves well I'll tell you where you
put your reserves first and foremost they have been putting them
18:47
into
gold and if you go back 25 years gold has doubled the performance of the bond
market it's average
18:53
9.9%
compounding per year for the last 25 years but what it doesn't have is
18:59
counterparty
risk so when you look at all of these these bilateral agreements
19:04
if
we go back to the meeting in South Africa last year that was the the the that
was the plan that was you know go
19:10
back
to the drawing board we still need to talk about how we reach a common
settlement currency and I want to talk
19:16
about
that for a moment because James Rickards has a very interesting take on that
and I agree with it but in the
19:21
meantime
let's all trade in local currencies where you know uh China just uh canceled
big orders for for grain
19:29
from
from Australia and the United States replacing it with with um orders from
Brazil the second largest producer
19:36
or
exporter of corn in the world and a big um grain producer and they will take
19:41
you
on for the payment not in dollars that chips away the dollar settlement and
then the reserves would then be put
19:48
into
gold instead of us treasuries which have a better track record and have no
counterparty liability but this is being
19:55
seen
everywhere whether it be between Iran and China or as you mentioned earlier
between China and and the United
20:03
Arab
Emirates or between Russia and India the all these countries are trading in in
local currencies that
20:08
chips
away at the dollar settlement status the reserve status gets chipped
20:13
away
when we see these country shedding treasuries like we've seen China's down to
just over 700 billion in treasuries
20:20
from
almost three trillion and their gold Holdings have increased other than this
month which has remained stagnant
20:27
for
19 straight months in a row that's indicative of all of these countries in the
southern hemisphere they are slowly
20:33
and
methodically deturi and accumulating gold and foreign or or Commodities in
20:40
replacement
and I really do believe that these Commodities as Zan POS are calls
20:45
Bretton
Woods 3 a system backed by Commodities have become more valuable than the
currencies that they're being
20:51
bought
with and so the lack of Treasury settlement is really the key and I think
20:56
this
is the one thing that the people who the dollar Bulls and the the recency
biased normaly bias people are missing
21:03
and
yes there isn't something like the bond market yet but I think gold represents
not only you know think about
21:10
it
treasuries represent but a very small sliver of history in terms of other
countries accepting a country's debt as
21:17
an
asset but gold has a 5,000-year history of that as do all of these Commodities
there's an old saying he who
21:24
has
the commodity or the gold rather makes the rules and this flow of Commodities
in particular gold and
21:29
silver
from the West to the east is being massively underestimated and and I
21:35
think
that under estim underestimation of the significance of that is a very very big
Achilles heel um this is
21:44
something
where these countries I believe are looking to Commodities to replace in
particular gold which is the
21:50
only
other tier one Reserve asset as as mandated by the bis in 2019 look at the
21:56
massive
accumulation of gold by all of these southern hemisphere countries and the slow
dollarization and deuri they
22:02
are
trading treasuries and dollars for Commodities that cannot be weaponized or
inflated away and and that's really gold
22:11
is
the issue here and it's being overlooked the Golden Rule Andy he who
22:16
has
the gold makes the rules right um now you mentioned that
22:21
2019
uh change in the bis the bank of international settlements the Central Bank of
central banks when they made
22:27
gold
18 tier one asset explain the significance of that because that was
22:33
one
of the first points that I think really started to trigger this process in your
mind that this dollarization
22:40
trend
is really going to accelerate yeah well since World War II there's been one
22:46
tier
one asset by Central Bank standards us treasuries and dollars and in 2017
22:52
when
we saw the bundis bank lead the charge to repatriate their gold from the New
York fed slowly thereafter the bank
22:58
Austria
Hungary turkey Poland the Czech National Bank the Dutch national bank they all
said give us our gold back from
23:04
the
bank of England in the New York fed and then quietly went on a buying spree
where in 2018 the following year those
23:10
same
Banks bought more gold as a group than they did in the 60 years previously
combined those numbers have continued to
23:16
increase
ever since but in 2019 the bis said oh by the way gold is now tier one
23:23
um
and that's a huge huge deal when you put all of this together and look where
23:28
we
are right now countries are continuing to do the same thing in fact what we saw
uh what do we see the Bank
23:34
of
India who just bought one and a half times the amount of gold they bought all
of last year just in the first four
23:40
months
of this year but they repatriated their gold they brought it back from the
23:45
Bank
of India to the point where much of their gold is or from the bank of England
rather much of their gold has
23:52
been
sitting there since 1991 they now hold almost all of their gold but this is not
something that is immune just to
24:00
um
uh India here or or or Center just on India we've seen Saudi Arabia and Egypt
24:05
and
a half a dozen African countries just bring all of their gold back from the New
York Fed so not only is gold a
24:13
tier
one asset a riskless asset if it's a riskless asset you want to have counter
remove counterparty liability so
24:20
these
countries who understand that it can replace the dollar in or the bond market
rather the treasury in terms of
24:26
its
its status as a Reserve um and being recognized by the bis they are also
24:32
removing
counterparty Risk by taking it back from the bank of England which is the same
thing as the London medals or
24:38
the
London bullion Market Association and the colx which is the the the New York
fed this repatriation is just as
24:45
important
as the accumulation yeah um and in fact Andy according to a study by
24:51
Invesco
last year a substantial share of central banks were concerned about what we saw
with sanctions against Russia and
24:58
68%
of respondents said that they were keeping Reserves at home compared to 50% in
2020 so in 5 years according to this
25:06
Invesco
survey of repatriation uh that figure is expected to rise to 74% of
25:12
countries
repatriating their gold we know China has been on a massive gold
25:17
buying
spree buying at least for the last 18 months apparently a pause in the last
month we can get get into that
25:23
where
is Saudi Arabia with its gold purchases Saudi well again you know not not
everything a lot of the the trading
25:29
is
done in a very um opaque Manner and what's called the over-the-counter market
and the London
25:36
Metals
exchange so it's far more private far less less scrutiny um less
25:42
transparency
they've spent a tremendous amount of money investing in in um uh
25:49
natural
resource discoveries in Gold and Silver Mines I don't know how much they've
been buying suffice it to say by
25:56
all
estimations they are have been buying a lot and using the selling of treasuries
and replacing it with gold
26:03
for
the reasons that we just spoke about and it was Nigeria South Africa Ghana
senagal Cameroon Al Algeria Egypt and
26:10
Saudi
Arabia that just brought all their gold back from the New York Fed so I don't
have the official numbers how much
26:16
they've
been buying but if it's anything like the rest of the countries in the southern
hemisphere a lot and let's
26:23
remember
one other thing that Saudi Arabia has been selling their oil for the last year
to China for Yuan and what
26:30
then
happens is that yuan is immediately convertible because maybe China doesn't
want to hold the Yuan they can
26:36
immediately
send it back and convert it into gold on the Shanghai Gold Exchange which is
Cash and Carry give them give
26:41
me
the money take the product and we're seeing an extraordinary amount of action
coming off the Shanghai Gold Exchange
26:48
where
these countries are accepting the Yuan for example you know all of the
26:54
like
for example you take a look at uh at at Iran who who just struck a deal with
with China to
27:01
modernize
their uh their biggest airport they're paying for it in oil but any
27:06
transactions
that are done where yuan is received they are immediately convertible into gold
on the Shanghai
27:12
gold
exchange this is how countries like Iran selling their oil for for Yuan or
27:17
or
Saudi Arabia doing it or Russia doing it these assets that are being sold for
Yuan can convert into the world's only
27:24
other
tier one asset my guess a lot more than we would be led to believe and the
repatriation from the New York
27:30
fed
I think speaks volumes about their their desire and their Outlook to hold gold
themselves and what that actually
27:37
means
so let's get back to this Petro dollar agreement has there been an
27:42
official
statement from the Saudis or from the US is this
27:47
confirmed
I haven't seen really a ton that confirms in an official statement I
27:54
wouldn't
expect the United States to say anything really I mean that would just fit like
a hand and glove but in term
28:00
look
I've seen in several Russian news outlets that confirms it but I have not seen
anything from the Saudis the Saudis
28:07
seem
to kind of be playing both sides of the of the of the fence here so to speak
28:13
and
and I'm sure they have reasons to do that but I mean look um the Saudi just
turned down a meeting an invitation to
28:20
join
the G7 meeting that was just here just a few days ago uh in Italy they turned
it down they didn't want to go
28:27
there
they are they are uniting very very closely as you can see with the rest of
these countries and when you
28:33
take
a look at their they just uh joined fully project embridge and people have
28:38
been
following me know I've been talking about project embridge for over two years
and that is a crossborder digital
28:44
payment
system that was designed by China uh Hong Kong uh United Arab
28:50
Emirates
and Thailand and they are now a full member I'll read to you it says Saudi
Arabia has joined a China
28:56
dominated
Central Bank digital currency cross border trial and what could be another step
towards less of the world's
29:02
oil
trading being done in US Dollars the move announced by the bank of
international settlements on Wednesday
29:07
will'll
see Saudi Central Bank become a full participant in Project embridge now
29:13
what's
interesting about project embridge they did two trial trades in 2023 the first
was uh China using a
29:20
digital
Yuan crossborder with United Arab Emirates for oil and the second one was
digital W Yuan crossb for gold and
29:27
in
both cases here I think what you are seeing are the two assets that are being
remonetized as I mentioned Iran is
29:35
paying
um China in oil to remodern their their biggest airport and you know when
29:42
you
take a look at what gold represents and the massive amount of gold accumulation
by the Southern Hemisphere
29:47
and
the the draw down in all of the world's exchanges and the convertibility of
gold off the Shanghai gold exchange
29:54
for
youan all of these things are coming together where I think it's it's fitting
29:59
you
know it's setting up for a perfect storm where zultan posar is right this
30:04
is
about Commodities leading the way and these countries are in a race to slowly
30:10
methodically
accumulate Commodities without causing too much attention so am
30:15
I
surprised there hasn't been any official announcement no not yet but their
actions are betraying their lack
30:21
of
uh rhetoric and I think it will become very obvious at some point and that's
when the dollarization and the
30:28
det
treasuries accentuates these countries don't want it to happen too quick um you
30:35
know
as James Rickards talks about the common settlement currency the reason
30:40
you
don't see it yet is they want greater mass well there was five and now
30:45
10
and 59 countries you you had mentioned a meeting in uh novigrad and
30:52
what
came out of that meeting were several things but the one thing that that I
noticed the most that came out of
30:57
that
meeting was 59 countries have expressed interest and said they're going to join
the bricks and you know
31:03
Jim's
comment was look if you only have 10 countries to to trade with in your
31:08
local
currency that doesn't give you enough shopping options but if you have 59
countries in order to or 60 or a 100
31:15
in
order to to buy goods and services from that is when they will issue their
common settlement currency which will
31:22
then
you know give them the ability instead of pigeon hoing them into a handful of
choices to what would
31:28
represent
the majority of human population a larger swath of global GDP and and the
majority of the world
31:34
shipping
lanes and the majority of the world's Commodities and all of these things that
start to add up when you put
31:39
all
of this together yeah I think it's it's going to happen but until then I
31:44
truly
do believe that gold and oil have been remonetized and are look being looked at
around the globe as a form of
31:51
money
that lacks counterparty risk and uh project mbridge is just another
31:56
example
so whether Saudi announces this officially their actions for the past
32:01
two
or three years joining the bricks all of the OPEC countries on on the Belt Road
uh joining the Shanghai cooperation
32:08
organization
which is the largest regional financial and military organization on the world
joining the brickson Development Bank their actions
32:16
are
speaking loudly and to put an exclamation point on it uh you know the crown
princing I'm not going to come to
32:23
the
G7 meeting thanks for the invite you know those those actions or lack of
32:28
actions
speak very very loudly to me and I think we'll see more and more of this as
time goes on and we'll get more into
32:35
uh
how project embridge challenges the Swift system as well as how the breaks
currency as we said challenges the
32:42
dollar
but part of the Petro Dollar Deal Andy was that the US was supposed to
32:47
provide
Military Support and Protection to the Kingdom of Saudi Arabia now you
mentioned how Muhammad bin Salman
32:54
snubbed
the invitation to attend the G7 we know that tensions between the Biden
Administration and Saudi Arabia um have
33:03
increased
I mean since the beginning when Biden called Muhammad bin Salman a parah on the
world stage there was also
33:10
that
big signaling with the way the Biden Administration pulled out of Afghanistan
and the debacle that that
33:18
was
and the agreement that you'll get into between the Saudis and the Russians
33:23
for
protection there after but again part of the Petro deal was that the US
33:28
gives
the Kingdom of Saudi Arabia protection does this mean that they
33:34
don't
want a military defense pack with with the us anymore what happens to that I
mean say what you will at least for
33:40
now
the US is still the military superpower are are the Saudis giving up on that
part of the deal how do you see
33:47
that
well no I I don't I don't that's why I think they're playing both sides but
let's just talk about first of all
33:53
the
Shanghai cooperation organization is the largest regional military organization
in the world
33:58
the
bricks control what two or three of the four largest nuclear arsenals on the
34:03
planet
so when you talk about protection yes that is what the Saudi deal was
34:09
originally
about was military protection and you know it's one of these deals
34:14
where
I think that you when you add the combined military might of the countries
34:21
that
they appear to be aligning with um it it it renders what the United States
34:26
has
to offer far less meaningful now they have been talking about this other deal
that they're working on which it
34:33
depends
on a lot of things what's going on between you know the relationship between
Israel and and Saudi Arabia and
34:40
all
of these other things that we can add into it but which is kind of the reason I
think they're straddling the
34:46
line
here but what they are asking the United States for is very high-tech Weaponry
which they've never given the Saudi Kingdom they are kind of holding
34:54
out
for that and and who even knows if this other deal that they're talking about
pans out I would just simply say
35:01
that
they're aligning with a portion of the world that combined together has a
35:06
far
greater military capability than the West alone does and that would be covered
but here again the one thing I
35:14
admire
Michelle about the bricks more than anything is how methodical they are
35:19
you
know when you look at Bitcoin and Nvidia to me that's emblematic of the way the
people in the United States
35:24
expect
everything to work just like that right now you know instant gratification is
not quick enough and you know I look
35:31
back
on 34 years of of working in this industry to get to where I am now nothing
comes quick nothing Richard
35:38
Russell
my my um Mentor used to say if you earn 7% per year you're a rock star
35:45
and
that takes time and compounding of time and of interest but time what the
35:51
bricks
have been doing for the last 18 years this is not something that just came out
of the ether it's been 18 years
35:56
but
now the acceleration is happening but they do things in a very methodical
fashion and they're not doing it shotgun
36:02
they
are not trying to be instantly gratified they are doing it where they they get
one chance at this the West has
36:09
Ruled
The Roost for what 500 years um collectively and and they I think they
36:14
realize
that if they're going to do this they need to be methodical about it and have
all their ducks in a row so this is
36:20
something
that I think is is I admire how how they're doing it and building
36:26
all
of the backfilling and building the alliances and doing it with shipping lanes
with commodities with military
36:32
with
GDP with human population and the connection when you add the Belt Road
36:37
into
it um you're talking 90% of human population at some point when you put
36:43
all
of these groups together one of the things I mentioned with you way back when
was the Eurasian economic Union and
36:50
the
Shanghai cooperation organization I said they would join the bricks and it's
they're the same countries uh Rickard
36:56
said
it last year and now the president of bellarus is calling for a summit to join
these groups together into the
37:01
bricks
what you are seeing is a coal of countries around the world that are uniting
under you know whatever it be
37:09
pushing
back against the hegemony finding safety and numbers or looking at this as
their chance to become
37:15
industrialized
into a new system that they prefer one that seems to be more
37:20
Cooperative
rather than coercive and when they say it's time and they flip
37:25
the
switch I think the will have a hard time to push back against it because you
will be talking the majority of human
37:32
population
a larger military might a larger portion of GDP and the majority of the world's
Commodities um and that's
37:39
an
important thing you know especially for a country that's supp supposedly going
green because there was just a
37:45
report
that came out of uh JP Morgan that that said um China's dominance real
37:52
dominance
lies in the mineral processing capabilities where they've processed 100% of the
world's graphite Supply in
37:58
2022
90% of the rare Ur and 74% of the Cobalt the majority comes from the
38:03
Eurasian
continent anyway but see these are the kinds of things that they are all
Gathering and the countries in which
38:09
they
align with and if you look at the comments that came out of that meeting uh in
novag grad the countries that they
38:15
want
are all going to be related to strategic shipping lanes and and natural
38:20
resources
they're putting it together and doing it the right way methodically regimented
and when they say
38:28
now
uh it'll be a religious experience because that's when everyone that's when you
would see The Dumping a massive
38:34
dumping
where the dollar Bulls who have been right um albeit to a lesser and
38:40
lesser
and lesser degree all of a sudden will realize that it's over and I hope I hope
that doesn't happen but it appears
38:46
as
though that's exactly what they're doing and doing it the right way rather than
shotgunning
38:51
it
okay we we lot to unpack there and and we'll get to that now trigger in a
38:56
bit
but Andy yes granted you know China plays the long game and it's easier to
39:01
do
when you have you know one president that doesn't really need to worry about
term limits president she effectively
39:08
you
know making it so that he can run full life and I I get that you admire aspects
of this um but you know one
39:15
could
argue that you say that it's it's co more Cooperative than coercive but
39:21
you
know one could argue that China doesn't and and many of these bricks current
countries don't really
39:28
represent
the same value system of the West right a value
39:34
system
which may have shifted but at least in theory is supposed to be one of
39:39
freedom
of speech of Liberty of equal rights and you know the fact that China
39:45
can't
play the long game is because as one example they don't have these term limits
it's not a real you know
39:51
democracy
So when you say you admire these countries I mean I I just want you
39:57
to
kind of elaborate on on what you're what you really mean there well the where's
the freedom of speech in this
40:03
country
what happened to it censorship cancel culture um a and where is you
40:09
know
the look at the the justice department and the inequality there and the and the
the questioning of a
40:16
two-tier
justice system and and look at how this country has lost its bearings and this
is what I mean about being
40:22
hypoc
hypocritical we go around the world telling people the way to do things and
look at what's happened in our own backyard
40:27
we've
let 17 million people into the country illegally our immigration system is a
mess and and you know our justice
40:34
system
our electoral system all being questioned the wokeness the lack of free speech
every single YouTube video that I
40:41
did
in 2020 the guest would or the host would say to me Andy don't say the
president's son's name don't mention the
40:47
name
of the virus by its name or I'll get cancelled and I mean I I even been
40:52
on
shows a lovely lady named Sarah West Hall where GoDaddy took her domain so when
you talk about free speech and all
40:59
of
these rights that the United States used to be so proud about look at what's
happened to this country and ask
41:05
yourself
is it the same country when we talk about democracy I think the world looks at
this country and doesn't look
41:11
at
it the same way so they're making a tough choice do we align here or do we
align there and and it's never an easy
41:17
choice
but I would say to you and I'm glad you brought that up because I think the
fundamentals and actually bothers me
41:23
more
than anything the fundamentals that this country stood for you know the nuclear
family the respect
41:29
of
authority even something as mundane as saying the Pledge of Allegiance the
little things in this country where you
41:35
respected
your teachers and your parents and and and and the police officers and
41:41
I
left Minnesota because they defunded the police I mean literally I mean I I
watched the city where Little House on
41:47
the
Prairie and Mary Tyler Moore was filmed go to hell in a very short period of
time and the lack of things that this
41:56
country
stood for and stands for have bothered me more than anything but if you think
that that's lost on the rest
42:02
of
the world I got a bridge to sell you the rest of the world sees this country
and says what the hell is happening in
42:07
the
United States and um I I think that is part of the reason you're seeing more
42:13
countries
have an easier time making the choice do we take Cooperative industrialization
regardless of the fact
42:20
that
we don't align maybe with the bricks but do we even align with the United
States anymore is what they are
42:25
pedaling
real or not and I'll leave that up to people to decide but I will tell you it
disheartens me as a father of
42:32
three
kids more than anything to think of the world my kids are growing up in and and
the things that I've seen in the
42:38
last
three years that I can't even believe I've seen in terms of um you
42:43
know
what's happened to this country on a social level on a moral level let alone
economics but mostly spiritually
42:50
socially
and moral it ain't the same place that I remember right so you know if what's
backing the dollar is the full
42:57
faith
of the US government and that's coming into question not only let's not forget
credit let's not forget the full
43:04
faith
and credit so I mean yeah what is$ 35 trillion of debt right Andy $35
43:09
trillion
of debt and growing uh full faith and credit of the US government which you
know we've said is is waning
43:15
on
the world stage and and also domestically and despite that we had
43:20
this
whole bringing it back to the Petro dollar we had this whole Petro dollar deal
to some degree propping this up now
43:26
you
you say this is a very big deal but you know you could say we've already seen
oil sold in other currencies right
43:34
um
the expiration of this agreement is it that fundamental if according to JP
43:40
Morgan
Chase around 20% of global oil in 2023 was brought and sold in on US
43:46
dollar
terms so short of the Saudi saying we do not accept dollars anymore
43:53
which
they haven't said and I don't think they're likely to say just to push back
here is this really such a game
43:59
Cher
that this Petro dollar agreement has expired if the trend had already be
44:05
gone
yeah it is it's just that it's accelerating and again this is what I mean is
that they do things methodically
44:12
it's
one of these things that once you cross that line the immediacy of of
44:19
the
reaction would be profound so I think it's more along the lines of doing things
slowly and methodically and and
44:25
doing
it the right way it is a big deal you know it used to be 100% okay now
44:31
it's
80% and even a bigger deal to me is the lack of of of using the treasury
44:38
market
the the realization that holding treasuries is not only risky in a government
that you know ultimately has
44:45
chosen
inflation over austerity where rates ultimately have to rise even if the budget
was the the the budget was
44:52
balanced
you mentioned a 34 almost $35 trillion debt and remember trillion seconds ago
was 31,6 188 years ago we
45:00
will
inflate and rates will go higher because how the hell do you pay um uh I
45:05
don't
know uh $99 trillion shortfall in Medicare Part B $22 trillion shortfall
45:12
Med
Medicare Part D the prescriptions 77 trillion shortfall in Social Security
45:18
government
military pensions the expansion of all of the welfare state you know if people
should check out the
45:24
cloward
Piven Theory blow your damn mind CL Howard Piven Theory I don't know if you've
talked about it but this is a
45:30
very
very very scary um similarity let's just simply say and if we have time to
45:36
talk
about it we can but all of these unfunded liabilities that amount to nearly 200
trillion who's going to pay
45:43
for
those who and who in their right mind is going to buy a a longterm a long
45:49
dated
duration treasury in a country that is in essence broke who has chosen
45:54
inflation
over austerity and the rest of the world is selling treasuries in order to buy
Commodities so when you talk
46:01
about
you know this being you know is this could this be not a big deal yeah it's all
part of the same thing and I
46:09
think
really what we are seeing is more along the lines of you know how do we
continue to look the Congressional
46:15
budget
office Michelle which is the last nonpartisan group in in in Washington said by
20131 100% of of in of tax
46:23
revenue
goes to pay just the interest on this debt we're accumulating a trillion
dollars of debt every 100 days just to
46:30
pay
the interest and mandatory entitlement like Social Security but ask yourself
this how does the West maintain
46:37
its
Supremacy even militarily when military spending is discretional so we
46:43
have
to borrow money to fund a military to go around the world coercing people ain't
going to happen and and that
46:48
doesn't
take into account the 17 million people who have entered this country illegally
who's going to pay for their
46:54
their
food their housing their clothing their their medical and you know um God
47:00
forbid
that one or two% of them have bad intentions to this country every 1% is
170,000 people 5% is way bigger than any
47:08
standing
military You could argue everything is different now in this country and it's
starts with what
47:14
amounts
to even if the majority of these people are seeking a better life at 5%
47:19
aren't
you're talking almost a million people that want to disrupt this country so
when you talk about buying gold and
47:25
silver
or look looking at the reasons to do these things it's not to become wealthy
it's because it is wealth gold
47:32
and
silver are wealth and the biggest money in the world is proving that by their
acquisition and their repatriation
47:38
the
lack of trust is profound and the bigger question is how do we ever get that
trust back and hopefully the new
47:44
Administration
if there is God willing a new Administration without being political can can
pull us out of this
47:51
nose
dive but short of that I think we're in big trouble and that's why I tell
people to own gold it's not to get
47:56
rich
it's because it's it's something that's outlived everything the world's ever
thrown at it and the big money
48:02
around
the world seems to Echo that with their acquisition and repatriation well we'll
get into a new
48:08
Administration
and if that can perhaps reverse some of this damage but I want
48:13
to
focus a little bit more again on this agreement because it's gotten very little
coverage in the mainstream and an
48:20
argument
that's being put out there is because it's not really such a big deal because
it wasn't really an agreement in
48:26
the
first place there was a big article in market watch quoting various economists
saying that this is fake news
48:33
and
they bring up Paul Donovan who's the chief Economist well fake news and the
fact that this is a big deal that there
48:38
was
this real agreement uh Paul Donovan Chief Economist at UBS Global wealth
management uh he said that uh you know
48:46
there
wasn't really this a proper agreement and they did accept other
48:51
currencies
after the agreement at least for a year afterwards like the British pound and
it was just an agreement on
48:57
joint
economic cooperation and uh it was the Saudi Arabian Joint Commission on
economic
49:04
cooperation
it was formally established they do say that by Henry Kissinger as we've just
discussed but that it wasn't
49:10
this
like it only will deal with dollars exclusively and that it was intended to
last only five years and then it was
49:17
repeatedly
extended but not even that officially repeatedly extended and that there was
perhaps this secret agreement
49:24
between
the US and Saudi Arabia in 1974 which promised military aid and
49:29
equipment
in exchange for the kingdom investing billions of dollars of its oil sale
proceeds in in the US but they say
49:36
that
you know there wasn't this official must be sold exclusively in dollars
49:42
Petro
dollar agreement and therefore it's not a big deal and those talking
49:47
about
it they're not in the mainstream media are fake news and conspiracy theorists
and and trying to create
49:54
unnecessary
Panic what what say you to that can I say horseshit because that's a bunch of
horseshit as far as I'm
50:01
concerned
I'm sorry if you have to bleep that out but that article I read and it talked
again about the real the real
50:08
value
is the US Treasury and where are people going to put their money look at what
these countries are doing selling
50:14
treasuries
and buying gold replacing it it's outperformed the bond market over 25 years by
100% it's doubled its
50:21
performance
of the bond market with no counterparty risk and these these what
50:26
else
are Wall Street analysts going to say this is their life we God forbid we
actually think outside the box and these
50:33
analysts
are wrong this is a massive deal it is a huge deal you can't get out of the way
of what you don't see coming
50:39
and
some of these analysts they've learned more and more about less and less till
they know everything about nothing and they don't look at the world
50:46
with
an open mind and I mean you don't even have to look in that much further than
to that meeting that we just saw in
50:52
novag
where 21,000 people attended from 139 Nations $80 billion in bilateral
50:59
deals
were signed on the sidelines 59 countries have have have said they plan
51:05
to
join bricks so yes it is a big deal regardless of what they are telling you
51:10
about
the Petro Dollar Deal being a nothing Burger it is not a nothing Burger when
you see Saudi Arabia decline
51:16
an
invitation from the G7 to come to do to admit themselves and immerse
51:22
themselves
in all of these organizations including project embridge which is a system that
allows for trading outside
51:28
the
dollar and the Swift system you are setting yourself or they we are setting
ourselves up for a big letdown if we
51:36
believe
that this is is non-consequential and what else are they going to say see this
is where everyone
51:42
is
focusing they are focusing on the bond market but gold is better than the bond
market gold has no counterparty
51:49
risk
and has outperformed the bond market for 25 years handily so the way
51:54
that
these countries look at it is like why would ever want to hold those assets
which are losing ground to inflation
52:00
it's
a country that does not align ideologically with us and they are going to
weaponize their treasury against us
52:07
and
steal it and maybe even give it to the country we're fighting a war against
you've crossed that line you don't come
52:13
back
and these people who cling to this recency bias these normaly bias you know the
old saying you have to roll with the
52:19
changes
they're going to be rolled by the changes because they they can't see past I
think what is a massive tectonic
52:27
shift
it's just not bang in your face like that it's happening if you do the if you
do the work and dig you can see
52:34
it
if you actually have eyes open enough to to believe it Andy again just to play
52:40
Devil's
Advocate um not saying I disagree but we had the chief Global investment
strategist at Charles Schwab
52:47
Jeffrey
kleintop uh saying that the end of the Petro dollar agreement between the US
and Saudi Arabia is pretty
52:54
meaningless
for at least three big reasons and I want to hear you count of these the global
oil financing insurance
53:00
and
transport system remains almost entirely dollar-based um one while oil
53:06
could
be increasingly bought at or sold in other currencies Chinese Yuan Indian rupee
Etc once the proceeds are received
53:12
by
Saudi they are likely to be invested in dollar denominated assets treasuries
rather than Yuan or rupe denominated
53:19
ones
and there is about 10 times as much oil traded in Futures than physically
53:25
delivered
and the Futures are denominated by dollars dominated and
53:31
denominated
by dollars easy easy first of all you have the Shanghai you have
53:36
all
of these exchanges that I think are are realizing around the world that that
53:41
the
comx and the lbma are fugazi and you take a look at the amount of Leverage
53:47
that's
being traded in all of these markets where and I'm going to answer your
question but as an example on the
53:53
lbma
they've admitted or the London bullion Market Association they've admitted aded
that their contracts are
53:58
10
times what they report they're trading 20 million ounces of gold a day
54:04
well
that would mean 200 million they're trading uh 290 million ounces of silver
54:09
that
would mean almost three billion ounces of silver per day and it's all synthetic
and this is where the tail
54:16
wags
the dog well the same thing is true about oil how the hell do you get oil to
ne40 a barrel in any real world while
54:22
you
you do it on a on a Futures exchange with which distorts the price
54:27
and
if you take a look at for example the bricks Grain Exchange where they came out
and said all of these
54:32
Commodities
and including including what what they've said about uh the Shanghai
54:38
Gold
Exchange where the head of the Shanghai Gold Exchange 15 years ago said we
produce and consume these Commodities
54:44
yet
they're priced in the west and once we have the right to speak at the table the
real price of gold will will be
54:50
observed
same thing they said about the bricks Grain Exchange that the the Comax prices
all of these Commodities and we
54:57
produce
more grain than they do so at some point we are going to repic based upon
demand and the same thing will be
55:03
true
about oil that's the the third question uh the second question well
55:09
we've
already said they're not going to go back into treasuries they will choose
Commodities which are replacing in my
55:15
mind
gold already has and oil already has replaced the treasury as a preferred
55:20
form
of of of you know recycling these excess reserves into money that cannot
55:27
be
taken away and what was the first question I'm so sorry will we repeat the
first question again let me uh yes so
55:35
again
he was saying that oil could be increasingly bought in other currencies
55:41
we
we touched on that he was saying that the financing Insurance transport system
is dollar based and again that the
55:47
Futures
markets are dollar denominated and and dollar dominated yeah well the
55:52
fut
infrastructure from from Futures to uh transport system financing and insurance
dollar based right well the
55:59
Futures
Market I believe ultimately will go by the way of the dodo bird because it's a
system based upon all of this
56:06
leverage
where it should you when the Futures markets were created it was is a
56:11
way
to offset risk and it wasn't a way to outright speculate it was to offset
56:17
risk
in in commodity holders or Farmers or whatever producers and I think what you
will see is a transition from the
56:24
Western
dominated markets the lbma and the comx look who just bought the London
56:29
medals
exchange oh yeah it's the Chinese that's right they bought it that's the base
Metals the like copper zinc they
56:36
understand
what's going on they're playing the long game and and what did Putin just say
about the countries that will come into the bricks fold they
56:43
wanted
to be those that are in particular dealing with shipping lanes and look at the
the Belt Road and look
56:51
at
the north south Corridor and all of these things in both the bricks and the
Belt Road that are connecting they
56:57
understand
the significance of shipping lanes and and of of of having ways to to
57:04
move
product that sidesteps the US Navy and sidesteps the the United States
57:10
interference
so whether it be about Futures markets that are fugazi that will move to those
countries that
57:15
produce
and accumulate and utilize all of the Commodities the prices will be set over
there whether it talks about
57:21
all
of the excess going into treasuries and that's the main argument that is a
dying argument and I think zultan posar was right this
57:29
is
Bretton Wood's three give me the gold I don't want your promises of of of
treasuries that can be rehypothecation
57:36
that
can be uh watered down that rates can go up we can default we can inflate
57:41
we
can confiscate fugazi that's moving out and and every single argument that
57:46
these
people throw out I don't care what their title is how how how uh
57:51
prestigious
it is to be the head commodity guy at at at Schwab or wherever you said I don't
care they none
57:58
of
them are looking at things through any any other lens than what they have
58:04
achieved
success in and I don't think that that they're looking at things the right way
they're going to get run over
58:10
by
this with that type of mentality and you can see that's exactly what the the
bricks and the Chinese and the so all
58:17
these
countries that's what they are counting on because of that you don't see people
rushing to crowd them out of
58:23
their
trade into gaining uh entrance into all of the Commodities and buying all the
gold and standing for delivery
58:29
this
is all being done by the other countries around the world who are using this
ignorance and this dollar-based uh
58:37
recency
biased against us including using the suppression of the Futures
58:42
markets
where we can create distortions and Illusions in in World Commodities
58:47
like
that by re hypothecating and Commercial Banks throwing billions and billions
and billions of dollars in
58:53
hedge
funds doing the same thing to distort real value prices of Commodities and that
will be used against us and it
58:59
is
being used against us right now just like we saw recently 500 million ounces
59:05
or
$500 million worth of gold delivered to Brinks Hong Kong where in 2015 comex
59:10
put
up a a um a new contract where you can deliver comx contracts to Hong Kong
59:16
to
Brinks which is a comx facility through what's called exchange for physical
those bars get trucked over to
59:21
the
Shanghai Gold Exchange and sent out to the world this is happening and it is
being IGN Ed by the mainstream
59:27
completely
and totally and the worst thing that you can do is listen to these people who
have no idea what's happening
59:33
around
the globe and you'll be far better off than listening to you Michelle and all
the guests you have on your show not just me but all of them
59:40
who
are saying things that are more Illuminating and more real than these so-called
experts who who are talking
59:47
about
things that I think perhaps are really changing from the way they used
59:52
to
be so I appreciate uh the endorsement uh there andy I know we're getting into
59:59
the
the weeds here and we will continue to explore further but you know uh big
picture since it's happened
1:00:08
and
again we've just explained why I mean the dollar has gone up you know according
to the Dixie um it's it's it's
1:00:14
up
what 0.7% in the last five days or so up over 1% in the last month up 4.1%
1:00:20
year
to date dollar ear getting stronger again um this is according to how it's
measured against to boset of other
1:00:27
currencies
six other currencies which arguably should be updated because it hasn't been
updated for a while in terms
1:00:32
of
the currencies in that boset but the bigger picture Andy is you know the
argument has always been yes yes yes but
1:00:37
the
dollar is still the best of a bad Bunch cleanest dirty shirt in the dirty
cleanest shirt in the dirty laundry
1:00:43
basket
can't be replaced what will replace the dollar and then we go to this you know
potential commodity backed
1:00:51
bricks
currency right that's the answer to what will replace the dollar so give
1:00:57
us
a sense of where we are with that what's the progress on that where are the
breaks with officially coming up or
1:01:05
putting
together this plan I mean I don't I don't know where exactly they are we know
they're working on it the
1:01:10
finance
ministers have told us that and I think Jim is right when it will be all
1:01:16
about
a a mass adoption by enough countries whereby they have 59 or 60 or
1:01:21
100
countries to go shopping in for goods and services not just the 10 that we see
but more relevant what about the
1:01:28
West's
response you know when I first met you and we did that interview you asked me
what could change this and I said well there was just a report that
1:01:35
came
out by the IMF saying it was called gold A barbarous Relic or gold an
1:01:40
international
Reserve currency comma A barbarous Relic no more you had crystalina georgeva
the head of the IMF
1:01:47
come
out and say if a cbdc not pegged to something would just be Fiat what is the
only other tier one asset gold how do I
1:01:55
think
that there's very high probability that you also see the west or the IMF issue
some form of a digital currency
1:02:02
also
pegged to Gold using distributed Ledger technology and gold showing the
veracity and the immutability on The
1:02:08
Ledger
and backing it so I don't know where they are but they we are moving in that
direction there is no question
1:02:14
about
it we keep getting uh updates from the the finance ministers that indeed
1:02:20
this
is what they are working on and they want everyone to come back to the meeting
here in August in Russia and
1:02:25
Report
their findings but I think indeed when you see these are the countries that
have been massively accumulating it
1:02:31
for
a long time and repatriating it that it is on the docket it is how you
1:02:37
inspire
confidence but not until it's time so what have they been doing in the meantime
trading in local currencies and
1:02:43
and
and buying gold and oil instead of us treasuries they're not going to tell us
exactly when they're going to release
1:02:49
it
until they release it but I think any system any system whether it be from the
1:02:54
west
or from the the rest of the world that wants to have credibility has to be
something where immutability and
1:03:00
veracity
come together that's gold and blockchain Technology it doesn't have to be um
redeemable because deal from
1:03:09
France
proved that convertible currencies convert but if you show the immutability on
a blockchain you have it
1:03:15
audited
by independent Auditors where there is indeed the the inspiring of
1:03:21
confidence
and veracity you have a shot and whether it come from the west or the rcks
first I don't know but I will tell
1:03:27
you
in my heart and in my soul I know that there will never be another Fiat
completely Fiat based system trust ever
1:03:34
again
you can only pee in the punch bowl so many times before people stop drinking
the punch and I think now you
1:03:40
have
to just start all over and that starting all over comes with trust and
1:03:45
Trust
in immutability would be things like Commodities and blockchain so don't know
where it is but I know they're working on it and I think Jim is right
1:03:53
it
will be something that they will issue once they have countries that represent
a large enough swath of human
1:04:00
population
in order to issue it safely and know that it will will work the first time out
so Andy you're saying
1:04:08
regardless
the era of fiat currency is done and again Fiat means by decree
1:04:14
Latin
for by decree and essentially currencies you know backed by nothing what is the
timeline and I always ask
1:04:21
you
this and it seems to accelerate every time we speak but but you see you
1:04:27
know
what is the ultimate fate of the dollar that you're seeing here and under what
timeline Play Play that out for us
1:04:34
on
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