Dollar Running Out of Time As Congress Writes a Blank Check.

to buy here in Switzerland uh if we want one we've got to travel over to France so then you could only buy the 125 gram jars at a oh five or six euros and uh he bought me one in the UK and said it over with some uh a bottle of beer and a Cadbury's chocolate must have cost him an absolute Fortune but uh that's a

guy called Josh C uh what's his full name but thank you very much Josh C and I love eating some English food for a change yeah Marmite I like more of my uh uh I guess it's uh you either hate it or love it Marmite anyway uh I've got Clive on because he wants to talk about a serious a very serious topic about how when countries

start borrowing to pay the interest on on the debt and that's when you're really going downhill quickly and Clive is going to go through the numbers today but before we do uh you might find this strange I want to share uh an article or something that kim.com some of you might know who he is but he's like a internet entrepreneur he's originally German but I think

he lives in New Zealand and he wrote this yesterday uh June 5th and um I think it was a tweet he said this may be the most important thread I ever make big picture stuff about the major Global collapse that is coming I will try to help you understand why the future is not what we're hoping for it's worse than most can imagine our leaders know

but they're but what are they planning and I'm not going to go through the whole article I'm going to put a link for you guys in the description but he goes over the stuff that I've been talking about Clive has been talking about the huge chronic budget deficits uh the money printing as you can see here this is Jay Powell on 60 Minutes saying the ass

we print we print money and we buy treasuries and that injects cash into the economy and then kim.com does a pretty simple but really uh powerful analysis here he goes over the total debt of the United States not just the government but public private corporate which is 90 trillion uh he adds the unfunded liabilities so the U.S is uh in debt to the tune of almost

260 trillion and then he subtracts uh U.S assets everything that's worth something in the US and that's 193 trillion and he comes to uh a negative balance of 66 trillion which is huge of course uh at the world GDP uh for example is almost 100 trillion a year so Clive I'm going to stop at that and let you uh talk about what you've found uh which

I thought was really interesting is to do with uh how much interest the treasury potentially will be paying on the debt and that they might have to finance it I think we're approaching uh 800 billion 900 billion a year but um yeah I'll let you um let's start with the recent decision to raise the debt limit in the United States um first of all what they've

done is they haven't raised that debt limit they've got rid of it uh and they're going to decide again in a year and a half if they will have one in January 2025. so right now there is no debt limit whatsoever it's it's literally a free-for-all uh they can fill their boots uh with debt they can uh print and borrow as much money as they please

uh obviously it depends who they borrow from whether it's the Federal Reserve or the public at large but the the plan is to borrow from the public a bit large in general uh literally the debt ceiling is now unlimited at least for the next year and a half how many dollars will be borrowed well look it's as much as they could shovel out of the door

and there's no restraint no dollar amount it's a free-for-all uh they might have a cut here or there but honestly I can tell you there won't be any Cuts in the spending and it's going to exceed the budget and so what I wanted to do today is um two things uh just point your readers in the direction of where they can look uh if they want

to know how the government sees its own spending going and secondly to look at what happened in the past how their forecasts got it wrong and thirdly how it will look if they get it wrong this time around and I think they are going to get it wrong and I'll explain why in a minute and if they do get it wrong in the way I think

we won't be very long before the interest on the national debt of the United States exceeds their total tax taken so if I can just start Mario by by sharing a screen um let me bring uh bring this up uh do you do you now see uh the screen from the confederal budget office which has got various dates on it yeah the Congressional budget office CBO

yeah yeah so anyone could go go to this website and click on uh at the top uh you can see the 10-year budget protections and down here you can see the long-term budget predictions which go out a long way so if I just click uh here you can see how it's looking at the moment um and you can see what they see as revenues Social Security

Medicare and so on for the current for 2023 and year by year the line which is highlighted in yellow the the row the the column in yellow that's the get held by the public as a percentage of GDP currently they say it's 98 uh they're forecasting uh it's going to gradually rise and rise and Rise by 2033 which is the year I'm going to focus on

they think it will be 118 of GDP but if you look out further they're going to 194 of GDP but we don't need to go that far because the Dollar's not going to last that long anyway um so that was my first uh and you'll see this on that website if you click on one of the years uh but what I'm looking at now is how

they saw things back in 2012 so if you look at 2012 the debt held by the GDP uh uh debt as a percentage of GDP where my cursor is uh in 2012 they saw it at 73 of GDP and by the 2023 the line the the row in blue they saw it as 61 of GDP now remember we're just looking at a second ago it was

90 I'll look at that again now they see all that code yeah they saw that coming down to 55 by 2033. so let's line those two up together and in orange or uh light pink you can see the line the numbers as they saw them in 2012 and you can see them as they see them here in 2023 so for example in 2012 they saw the

debt to GDP would B by 2023 be 61 in fact it was 98 they got it wrong back then they saw the debt to GDP in 2033 as being 55 they now reckon it's going to be a hundred and eighteen percent the reason why the debt is going up so much and so fast is literally the government is overspending versus their budget um I just flip

to a quick slide here uh and if you look on the far right hand column you see how that project is for 2022 went uh back in 2012 they saw it at 50 15 it's brilliant of debt held by the public uh by 15 it was 18 trillion by 2019 it was 19 trillion this is what they saw for for the current year uh by 2020

they saw it as 20 trillion and by may they saw it as 20 nearly 25 trillion so their projections are constantly changing upwards because the government is spending more than they expect and if you go to the website of the CBO you can see year by year as I show here this is the 10-year forecast and highlighted in blue you can see the absolute number of

debt held by the public this is the debt which is held by You and I by your pension fund by the government of China for example it's not the debt held by the Federal Reserve which is on top of this so they see this according to the latest budget which was just revised a few days ago um they see this and by the way it's revised

upwards meaning they're spending more than they saw back in February uh they see the debt in 2022 going from 24 trillion to by 2033 46 trillion that is the cbo's forecast but as I said they've got it wrong so many times in the past so what if they get it wrong by these same percentages as they got it wrong in the past so I'm just going

to scroll down here and look at how far they got it wrong so various columns here I've got the revenue column as they sorted 2012 and as it actually turned out in 2012 they saw they were going to get 5.2 trillion of Revenue they actually got 4.9 difference minus six percent which is about half a percent year cumulative uh difference over the 10 11 years period

uh same thing for outlays the outlays were higher so revenues were lower than expected outlays were higher than expected by 12 at point six percent uh the deficit because of the cumulative effect of those two is 354 percent worse than they budgeted for or expected and we'll see the debt held by the public is 60 worse gross Federal debts 44 worse uh one thing which worked

in their favor or worked in the government's favor was interest rates back in 2012 they forecast that they'd be paying 2.82 in interest over the next decade uh at least by 2022 in interest and actually in 2022 they paid 1.54 in interest so that did actually save the government some money but despite that we end up with a very serious uh deficit yeah and I'm gonna

just wanted to add one thing um we've seen in the last 12 months and even 18 months that uh a lot of the uh countries that help Finance the the US that uh the Chinese government and foreign investors they're starting to try to uh diversify away from the dollar uh so I I think that will I'm wondering if the CBO uh realizes that that there's a

huge move to the dollarize and I think that would make things even worse yeah suddenly I can confirm that around the world we see uh treasuries reducing their exposure to Dollar uh but not actually the UK who's increased it and don't ask me why the UK is a bit of an outlier there but uh the fact is that uh the major dollar holders are apart from

the UK are reducing their exposure did you know that the UK uh during World War II they had a land lease program the US for the UK for the war and the the UK only stopped paying that debt in 2020. okay anyway so should we have a quick look at what would happen if the extent to which they got it wrong in the past they get

it wrong by the same percentage going forwards so the uh looking we're now looking at the year 2020 2033 which is 10 years out the year I want to focus on uh the CBO is Reckoning they're going to get 7.10 or 7.10 trillion dollars of Revenue and they reckon they're going to spend 9.96 trillion so big deficit of 2.8 or nearly 3 trillion dollars that's what

they estimate the figures up but what if those numbers are wrong by the same percentage as they got it wrong a decade ago in other words the actual outcome they have six percent less revenue and they have 12 percent more outlays well we end up not with a deficit that year of 4.56 a lot of deficit of 2.86 trillion but with a deficit of 4.56 trillion

which when you work through the numbers translates into the debt being held by the public going from 46 trillion remember it's 24 trillion at the moment yeah but 46 trillion in 2033 to 74 trillion in other words three times as much as it is today in a decade if their numbers are just slightly wrong we're talking about uh half a percent a year difference in the

revenue and one percent of your difference in the outlays which is what actually happened in the past if that happens on the far right hand corner where you see my cursor above the yellow box you can see the net interest expense based on an interest rate of 4.55 which is the current yield on the two-year treasury so we're assuming by 2033 the current yield of 4.55

is still the same you'll see that they again have an interest expense of 3.43 trillion which is just over half of their revenue for the year so more than 50 of their revenue will be going to pay the interest on the national debt but what if the interest rate moved to something along the lines of where we were in the 1980s and I think this is

more than possible for reasons which I'll explain in a minute which I put in 8.9 percent and we must remember almost in 1980s interest rates were almost never below eight percent one there was only one year when it dropped to seven percent but almost never below eight percent and mostly how many years it was above or at 15 so I put the 8.9 so if the

interest rate was to go to 8.9 by 2033 in yellow the interest expense would be 6.71 trillion dollars exceeding the the possible revenue of 6.6 trillion dollars so they would have nothing to spend after paying the interest on the national debt so the only way to spend money would be to borrow from Peter to pay Paul uh now I just stopped I'll just stop sharing temporarily

here uh Mario yeah so we have to bear in mind uh the outcome is very uncertain it's a bit like a game of chess uh you know when a grand Masters playing a game of chess he makes his first few moves he might be able to guess how the board will look two or three moves later but ten moves out he hasn't got a clue and

it's the same with forecasting for the uh the Congressional budget uh that they're doing their forecasts as they stretch out are nothing more than Pie in the Sky guesses as to what the figure will be but I'm going to tell you why I I think their figures are going to be wrong and there's two major reasons for that the first reason is the assumption that they

are making uh about the amount the government will spend uh they've always got it wrong and the government has always spent more than they budgeted now it's not their fault that they get the wrong number in there they have no choice they have to put in the official budget what the government plans to spend but we all know the government spends more than expected that's just

the way the governments are but they can't put in make-believe numbers I the government says we're going to spend a million they can't put in one and a half minutes that makes no sense so they've got to put in the government's official number that's the first reason why these numbers are going to be wrong because we know from their track record the government spends more than

they'll say they spend but the second reason why it's going to be wrong is the interest rate that they are assuming they are assuming that over the life of the debt I'm sorry of the life of the next 10 years the average interest rate they'll pay on the national debt is 2.9 percent and in the last year they reckon it will be 3.2 percent now both

of those interest rates are way below the current interest rate it's it's unlikely that we'll see interest rates of that low over the period particularly since according to their own numbers they want to borrow their that double the amount they borrow from the public at large and according to my calculation they'll actually triple it or potentially triple it uh you can't ask the public the governor

of China your pension fund my me and you to lend more money to the US government unless they offer a higher interest rate than at the moment it's not going to happen so realistically speaking those interest rates that they are forecasting are of 2.9 on average and 3.2 terminal rate are way too low those rates will have to rise uh the only way they won't rise

is if the Federal Reserve buys all that debt but that's not what's in the plan the plan is that the public at large will buy the debt uh obviously the Federal Reserve pays the debt they can buy it at whatever interest rate they're liking and manipulate interest rates much lower than they should be and that's what we've had in the last decade when interest rates were

manipulated downwards to nearly zero but the Federal Reserve with their words about quantitative tightening aren't actually uh saying that they will buy debt um having said that in the official plan uh there is nevertheless uh an official uh in the budget cbo's plan there is a plan for the Federal Reserve to keep buying debt uh they say I'm just looking for things they expect that the

Federal Reserve will buy let's look yeah because the Federal Reserve one they buy it's not that held by the public so the FED could buy like uh 10 trillion keep rates down around two or three and uh all those projections work but but then the value of the dollar just goes down the down the tubes I would say if the FED were to do that I

I don't I don't have the figure in front of the spread at the moment but the the point is the Federal Reserve according to the cbo's plan is going to buy some of that debt uh on top of the huge doubling a nearly doubling of debt that they foresee for the public at large so if the Federal Reserve does buy it of course that's quantitative easing

and that's inflationary but if the Federal Reserve was to buy a lot of this debt which is targeted to go to the public then that will be extremely inflationary so one way or the other we're going to end up with a very difficult situation um either the Federal Reserve manipulates rates lower by buying all this debt and we have massive inflation with very low interest rates

or they sell it to the public and we'll have very high interest rates to such a point that the US government will be paying out all of it all of its uh revenues in interest and some and have nothing left to spend um just another comment on the uh bill which has just passed in Congress where they've agreed to raise the debt limit to Infinity temporarily

um the spending cuts that are imagined in there are absolutely illusory uh the if if you look at it we've got um isn't the bill called the uh fiscal responsibility act yeah yeah that's it it's it's been uh I think they had another name for it earlier which was uh spent it had something like spending cuts in it but they've got rid of that um but

if you if you look at it two-thirds of the spending uh by the federal government is going to be on Medicare and Medicaid food stamps Social Security uh which They Call Mandatory that's going up by five percent this year uh so no Cuts there um and those those agencies are not in good shape they're all running out of money and they're going to go for go

be bankrupt I think the time scale is approximately 10 years when they'll be bankrupt uh but nobody so there's no responsibility there nobody's gonna do anything about that so that's two-thirds there's no attempt to cut that leaves only one third they've got to play play with which is called discretionary spending but half of that's military so that's uh that that leaves one-sixth of the military they're

putting up the budget by three percent uh so you've got one sixth less left which is What's called the um the non-military discretionary spending Even If you eliminate that one-sixth 100 of it eliminated to zero get rid of it all the budget still won't balance they will still be spending more money than they're taking in taxes um and just to illustrate there's a very very good

speech by Senator Rand Paul um he gave a few days ago you look it up on YouTube uh in which he illustrates some of the ways the government is spending money uh which is a complete waste of time he he select one of the government agencies which is the National Science Foundation and he cites studies that the government is spending money on such as what makes

people fall in love uh they spent a million dollars uh having young people take selfies of themselves to see how they feel later in the afternoon to see if it makes them feel happy they spent one and a half million dollars on a study of the meeting calls of Panamanian frogs to see if the mating call of a country frog is different from the city frog

these and you know this goes up these are the kind of ridiculous things the government is spending on money on which could be cut literally 100 another example they're they're doing a study to see if the Japanese quail is more promiscuous when it's on cocaine I mean do the public at large really want to pay taxes to do these kinds of things the answer is absolutely

not and uh at the end of the day unless the government gets in hand and cuts everywhere and I mean they've got to cut even in the areas which hurt such as Medicare and Social Security as well as the military uh which are the main areas where they could do unless they do this uh literally we're going to reach a point of no return and I

think we've probably passed it already where uh investors of the dollar just say you know what I want to hide into nothing here and they start to move into other assets yeah and with that uh Clive I think people still have time to try to diversify away from the Fiat dollar uh especially with precious metals and that's why I'm gonna give a shout out to my

uh Affiliates if you want to find out how to buy a physical precious metals go to the description below of this uh interview and you can also buy precious metals via a warehouse in Switzerland that's through the glintpay app so yeah this is uh I I mean uh another question I have Clive because a lot of people are going to say oh you've been talking about

this for for years and nothing ever happens um what what do you say uh to those people a lot of people think that things will carry on as normal until they don't um you know it's the old toilet paper story uh we have seen nobody panics or rushes down to the supermarket to buy toilet paper until there's a line in the Press saying there might be

a shortage and suddenly the shells are empty and it's the same thing with a dollar or gold or silver nobody's going to do anything about it until they collectively uh have a a crowd-like behavior oh my God I won't know to get any so uh that's my first point so we have to wait for the trigger moment when the trigger moments uh we will see tangible

assets being highly desired and that would include gold and silver uh but it would include anything people could lay their hands on we might find this the in a panic the shop shells are emptied um which I think would be the excuse for the government to reset the currency um but I think if if if if you take the view that currencies are on a hiding

to nothing and let's face it the British pound has lost 99 of its value since 1971 the US dollar has not lost 97 of its value since 1971. if you take the view that currencies are heading to zero it doesn't really matter what you own if you own tangible assets they will still be there after the reset um is a reset coming well we've never had

one in a major economy up until now and will it be the same as previous resets no it'll be different but the the reality is when you do get a reset uh the reset is when a new currency is brought in to replace the old one those who hold nominal assets like Cash Money Market funds Bank deposits and bonds denominated at the old currency are most

likely to find they're left holding those old currencies and they're not convertible to the new currency on a one-to-one basis or not convertible at all uh and when when's that going to happen my time skill is obviously it could be next week or next month if we have a Black Swan event but um I think the idea from the governments of the central banks is to

keep kicking the can down the line until uh they've got the ducks in a row and what do I mean by the Ducks of the road well obviously that's the where the Central Bank digital currency comes in if they can get the economy up and running on the cbdc and it's one to one against your other currency or your bank deposits your bonds your cash your

money market fund and so to the man of the street the cbdc will look like it's exactly the same thing as the money in your bank you think they could be running on the cbdc so you're paying your taxes and cbdc you're receiving your salary in cbdc dollars or pounds uh you're pet buying the shops and cbdc it's a very easy move to say we're bringing

in a temporary restriction on how much of your old bank deposit you can put into the cbdc sorry guys we've got to do this because there's a lot of Hoarders around there buying up all the stuff pushing up prices making it hard to get food hard to get this or that or the other um and so temporarily it will stop you from putting too much into

your cbdc so you can't actually spend it to the shops but of course that temporary move will potentially become permanent and if it's permanent it means that the government is now or the liability of the company national debt will be in what is to all intents and purposes a defunct currency which from the government's point of view is a brilliant thing because they can now re-leverage

borrow up again in the new cbdc they can bail out the Pension funds they can bail out the pensioners who only had cash in the bank they can bail out anybody who's unfortunately hard done by they can introduce a universal basic income to make sure nobody's going to starve they can basically look after anybody who's hard done by by borrowing money and they'll still have loads

of loads left over in terms of what they could borrow without going close to the current debt limits so they'll be able to start infrastructure programs employment programs education programs all kinds of spending that they're not doing at the moment um you know what is from the government's point of view a debt-free world yeah and uh I uh Listen to I think Kevin McCarthy and he's

a good actor I guess a few months ago he said oh I haven't seen President Biden for 75 days he doesn't want to negotiate and he said we're not gonna touch um you know the uh the one the spending that's mandatory you know the Social Security Medicare Medicaid and he said we're going to cut discretionary he said he wasn't going to cut discretionary spending but he

was gonna cut the rate of increase to to one percent but from what you've told me they're raising it by five percent so it seems to me that there's no political will on both sides to to solve this problem so uh do you think there are people at the at the treasury uh advisors economic advisors that are so ignorant that they don't see the problem with

these projections and that mathematical impossibility of keeping this thing going or maybe it's on purpose and they do want to bring everything down and do a reset uh I I don't think the people who are paid to know these sort of things are ignorant I think they know exactly what's going to happen but on the other hand uh and and many uh many people in the

government also know uh but there'll be many who don't uh but the bottom line is if someone says uh we have to cut spend the left right and Center that means I want to cut spending everywhere except for my pet program which deserves more so the will to cut spending uh is the will to cut other people's spending not the will to cut your own spending

so whether you're a democrat or a republican you have your own uh pet projects on which you want to spend whether it be military or social security or student loans or whatever it happens to be uh you're not going to want to cut your own pet project which means that realistically speaking they're going to when they when they do have these debt ceiling negotiations as we

just had um and that we won't have one for a long time but when they do have these debt ceiling negotiations they're going to negotiate with each other uh but the end result is both sides are going to get to spend more not less yeah and uh you know now we're in a free-for-all where there is actually no limit they could anyone could spend anything they

like and uh maybe you want to show the viewers the uh the history of the U.S 10-year yield um to just yes idea that what we've had since 2000 uh is quite extreme compared to uh where rates were back in the 70s 80s and 90s what you see on the screen at the moment is the 19 in the 1980s the 10 year yield now you remember

uh I took a rate uh at which the government will run out of money uh will I where the interest on the national debt will exceed the revenue for 2023 uh of 8.9 which is on this chart which you can see the red line here 8.9 percent we're looking at a chart of the 1980s and the interest rates of the 1980s and you can see that

there was only one year when the interest rate was below eight percent or eight below 8.9 that was 1986. for the rest of the time interest rates were above that level and touched a peak of 15.8 percent at one point and had quite a bit of time up at the tens and twelve in double digits and 10 12 so the possibility of interest rates being much

higher than the 3.2 percent that they're forecasting in 2033 uh is absolutely there but as I said it's been like the game of chess 10 moves out you can't actually see the way things will be we might have interest rates of 30 or we might have interest rates of minus five I have no idea but my view is it's not going to be minus five it's

got to be much higher otherwise the public won't be buying all that debt that they think they want to buy if I could just zoom out a little bit Mario um and I zoom out to the last nearly 100 years over 100 years here you can see uh that after 1971 when we went off which is which is about here when we went off the Fiat

uh system rather when they suspended the goals so that when we went on to the Fiat system but uh completely cut 100 when the gold window was suspended the interest rates Rose rapidly because of the rate of inflation going up and what's rate of inflation the rate of inflation is because they print money as money is printed it causes prices to rise there's more money in

the system people ask for higher salaries the prices of raw materials go up there's more demand for everything so raw materials go up salaries go up and prices of the shops go so we had very very high inflation going up to uh I can't remember how much it was in the United States but it was very high and that caused interest rates to be quite high

and then we had the Advent of technology which allowed many many items that we use on a day-to-day basis to be made by robots and that reduced the rate of inflation to not the rate of monetary inflation because money inflation rate remained very high but it reduced the rate of price increases in the shops to quite low levels of the order of uh two or three

percent and that's when interest rates came down but there's a limit to how far um inflation uh you how far robotization can reduce prices um so uh suddenly we we're in a situation where they're printing of money is likely to continue to rise in the future based on the spending needs getting bigger and bigger and that will cause interest rates to raise sorry Clive um if

you could leave that chart there for a second uh bo can you bring that back the that hundred year chart yeah exactly because I've spoken about this if you look at uh 1941 which is around when the U.S entered the War uh interest rates uh bottomed and then they they went went on Rising for like 40 years because they topped in 1981 and then uh from

then they went they dropped for 40 years and bought them in 2021 so what I'm trying to say here it seems like there is a 40-year cycle here as well so even um you know if the FED tries to uh I think uh negate this cycle we could see a complete collapse of the dollar but either way uh you said that in the 70s interest rates

started going up after Nixon closed the gold window because they were able to inflate the fiat currency and it seems to me that now they want to inflate everything we with all this spending going you know a free-for-all as you said uh that's right uh this is the current plan to spend faster and more than they spent ever before in history and the budget deficit is

now as opposed to what they were forecasting in 2012 which was for the um budget to uh more or less stay slightly negative but more or less balance and eventually uh some years out from here uh balancing now the forecast is for is for the budget deficit to get bigger forever and the debt to go up forever uh so you know there's been a change in

mindset from let's at least have a go in terms of planning to get to some sort of balanced budget to now there is no point in having a balanced budget let's just go on increasing forever and ever hmm what's the other chart you've got there the last one that's the what we're looking at here is the two-year yield which you can see has risen uh over

the last 12 months um back 12 months ago it was at 0.2 percent uh 0.1 percent on a two-year Treasury and we're now at four and a half percent uh so we're 45 times as much interest on the two-year Bond or note to your note as we were back in May last year and may uh May 2021 I think so why am i showing this well

the government is planning that the interest rate they get a play on the national debt over the next decade will be 2.9 rising to 3.2 percent but frankly the interest rate today if you have a maturing Bond and if they borrow for two years which is one of the periods they might borrow for they're going to be paying four and a half percent and if they

borrow uh at the 10-year rate which was what we saw over here just going back they're going to be borrowing at nearly four percent so that rate that they are thinking that they're borrowing at uh for the current year of 2.8 and uh for future years of uh of eventually at the end of the period 3.2 has no relation to the much higher rates where we

have in place today so I think it's Pie in the Sky yeah and uh it's strange because I don't think it's just the government the politicians um thinking that rates are going to go lower even people on Wall Street I think uh they're pushing this um this narrative that interest rates will get back to like two percent that there is no inflict there won't be any

inflation I still hear uh the bank of Japan talking about the fact that they want to protect against deflation even though the CPI there's four percent and uh so yeah I still think that the majority of investors there uh on Wall Street and uh speculators not all of them they they're still buying into this narrative that uh this is a one-off this increase in inflation and

everything is going to be uh go back to like it it has been since the year 2000 and I think when they realize that that's not the case uh and they they see what we see I think that's when uh the fear and the the rush away from from the dollar from paper assets will happen uh is that the way you see it too um I

think so I mean the problem the problem is people at the moment are not earning enough to compensate them for inflation when I was a young lad and uh as a young worker as well the interest rate that you got on a bank deposit uh whether it be in the USA or in the UK was higher could soon be higher than the inflation rate that's gone

out of the window for many years we've had it lower than the current inflation rate and now it's knocking around something similar uh but I think people are are moving towards expecting real interest rates particularly if you're paying tax uh you know you you if you earn four or five percent on your bank deposit where you don't get that sort of rate but uh you can

in a money market fund you're earning four percent and you knock off half of that in tax you're down to two percent but there's no way uh a long-term wealthy investor is going to be happy with two percent when they're inflating the money supply by 15 to 20 and retail prices and consumer prices are rising by six or seven percent and probably going at a higher

rate of the future yeah so what's your uh message to the viewers out there uh be they young and starting out or you know working in their midlife or retiring before before we wrap up uh today's um I but I don't think the social services uh programs to bail you out and your Pension funds are going to be worth very much when you retire I think

you have to make your own provisions and don't rely on your pension fund if your pension fund uh somehow is worth something when you eventually retire all well and good but I think you need as an individual uh if you don't have too much Surplus to cut your spending somewhere so you can put aside some money every month and invest it in tangible assets of some

kind um and obviously I'm not a hundred percent all in on gold but I do think that will be holding its value but I think you can spread that around and could property you could include machine you could include things you might use in the future you can you go to equities and there are other things which are realistically going to hold their value over time

uh but obviously a very liquid way to do that will be a seems to be gold and silver um and by the way Mario yeah I'm sorry I couldn't come on your last show I got a call from my uh bullion dealer who'd got a bunch of um silver eagles in uh the story was quite interesting it was a elderly man who bought these Eagles a

few years ago expecting the entire system to collapse soon but unfortunately due to price rises in the shops uh he was running short on spending money and he brought the Eagles it was quite a large number I couldn't buy the wall but I bought some of them he brought these silver eagles back in the shop and he made a uh according to the bully deal he

made a small profit um and then the bullion dealer passed and wanted me I uh he wanted to he wanted to charge 25 above the silver price uh but I then selectively pulled out a few sales on eBay I was a little bit selective but I I showed him those said look uh here's what some other people bought things for and I managed to get it

down to about 21 over the silver price um for those who want to buy coins do bear in mind the spot price is not the same as the price for silver coins and silver bars these kind of things do trade at quite a reasonable premium that means whether you're a buyer or seller you should expect to get more than the silver price for coins because it

costs money to Mint them uh so those people who uh go to a shop looking to buy one at the silver price will be disappointed you can't do that uh before you do go to the shop make sure you understand the price that you look look around on the internet see what prices these things buy and sell for and then you'll have a good idea what

you should be paying if you're going to a shop or if you're dealing on eBay or or person to person yeah and uh I would say that you you got a good deal on the silver eagles at 21 I think in the states there are a lot more at the premium the other thing I would say is that eventually if uh what you talked about all

this uh uncontrolled spending and deficit spending and uh borrowing to pay the interest uh and people waking up to the inflation tsunami I I think uh you won't be uh you'll be valuing things in terms of ounces of silver and uh grams of gold eventually right now if you can still buy buy gold and silver relatively close to the spot price that means the system's still

okay but when things get get really crazy uh the dealers might even close shop for a while because they they don't know what where the price is so there you go Clive uh thank you for coming on again and uh I wish you a great uh rest of the week thank you very much Mario it's great talking with you and your listeners thank you