The Banking Crisis Is Far From Being Over | Says Andy Schectman.

you see the big big money leaving in mass and going directly to the treasury market would be my guess avoiding the problems with the banks and I I don't think the um you know the last chapter is written on this Saga not even not even close I don't know what you think but I believe this is just just beginning to accentuate itself Monaco 64 home of

alternative economics and can trans views today I have the pleasure of speaking with uh Andy scheckman he founded miles Franklin with his father back in 1989 right Andy uh 1990 yes 1990 and uh you're now the president and uh yeah we've been uh speaking for the last well I think a year or so and uh back in March I think it was just around the time

of the banking crisis things were pretty hectic so how are things now uh Andy uh almost two three months after that crisis you know I think people in this country Mario suffer from recency and normalcy bias where their memories are not certainly in any way in my mind long enough to remember the justification that they use to get to that point where there was this Panic

there was this chaos where we added almost 14 000 clients in 45 days where people understood what was happening around them and yet all it takes is a little bit of papering over and a little bit of time behind and people forget and so it's it's it's much more quiet and subdued right now yet I believe the problems in the banking sector have yet to even

begun to express themselves um and that's just my my feeling you know look you're seeing so if you listen closely you can hear that sucking sound and that sucking sound is the Federal Reserve sucking money out of the regional banks with interest rates on their treasuries north of five percent where in a Regional Bank the best you'll do right now is under five percent in a

one-year CD in a bank that Janet Yellen told us more likely than not will not be bailed out unless of course the fomc the FDIC herself and the president agree that the bank in question is too systemic and must be bailed out otherwise you're an unsecured General creditor and anyone who would leave their money in a Regional Bank in the United States that has bailout risk

or bail in Risk rather and the best return that you're going to get is less than what you can find in a treasury or in a money market with daily liquidity and you have to be locked in in a CD for a year you're out of your mind and so that sucking sound that you hear the aiding and abetting of The Exodus from the regional Banks

has not let up and quite you know quite to the contrary I think it it has yet to really accentuate itself and the allowing the continual allowing of the money markets to invest in the overnight repo Market is certainly not helping so on one hand you have the MU the the money markets which have reached record record like five trillion dollars in in deposits you have

the the ability by these institutions to invest in the overnight reverse repo Market by the Fed but on the other hand you have the big commercial banks that are supposedly where everyone is going and you see the big big money leaving in mass and going directly to the treasury market would be my guess avoiding the problems with the banks and I I don't think the um

a dollar but apart from that the the normal uh big banks in the UK are okay for now we don't have many banks left we only have like five or six big Banks and the rest really you can count maybe on your two two hands I think that's the playbook for the U.S ultimately yeah yeah but I I'm not like you I'm not convinced that uh

this crisis is over and uh that it won't spill over into the too big to fail either and that would hurt Europe is well because we're all connected and it looks like uh this is from May 5th but JP Morgan still sees uh risks uh recession risk and he they say investors moving to golden Tech amid recession risk and what's interesting is that um uh this

is what they say here uh the U.S banking crisis has increased the demand for gold as a proxy for Lower Rio rates as well as a hedge against a catastrophic catastrophic scenario they wrote so they don't even think that what we saw in March was catastrophic they're still waiting for it it seems I'm not I know they're not saying it's going to happen for sure and

the other thing that's interesting uh they say that um institutional investors and central banks as we know there continue to buy gold uh they're flocking into gold it says here but retail investors uh apparently I'm more interested in Bitcoin for now oh I I find that really interesting and uh I find that uh sentiment I think for for gold and silver are really low right now

how how do you see it and uh how is that being reflected in your business at the moment look bitcoin's done very well you know the old saying what have you done for me lately it's done well this year and there are a lot of people who who just believe that is the place to be um I understand that I mean I get it um I

think that you know the you look at the the smart money the big money you don't see the central banks loading up on on bitcoin uh you certainly see retail investment no question about it and and in in in a asset class that has maybe been the best performing over the last several months I get it you know people are are certainly still enamored with with

Bitcoin um you know the retail public the retail Market is is the reason so few people are ever successful in investing is they follow the herd but if you look at what the big and the smart money has been doing methodically for quite some time now they have been accumulating gold and silver and if you look at the drawdown of all of the exchanges look at

even the Shanghai gold exchange the biggest one-day drop or a delivery in silver in the history of that market since they've ever been allowing silver to be traded you look at what's happening on the lbma gold and silver are falling you know to to ridiculously low levels look at what's happening on the comex the exact same thing look at the back dooring out of the ETFs

the exact same thing the the most sophisticated investors on the planet are using price suppression on comex in the western markets to drain the exchanges so that that article doesn't say that gold being the best performing asset of 2023 is attracting all of the tension this is the Playbook that they've been writing for a very long time Andy could you tell us a little bit about

the specials you have at the moment for uh gold and silver yeah you know we we're not running a special on gold this week although we have good value in it I have such a hard time looking past the value that we find in general in the silver market so we're running two specials this week in silver the resumption of one that we ran last week

the 10 ounce silver ital preziosi bars they're lovely they're a great a great price and also for those people looking for something that gives you greater utility in silver a lot of people think that maybe someday they'll be trading with their silver or have questions about the potential for doing that we have some quarter ounce 2023 Noah's Arc um silver coins the the 10 ounce Bars

by the way are 3.49 an ounce over the price of silver the uh one quarter ounce Noah's Ark coins are 3 dollars and 25 cents per coin over the price of silver they're higher premium coins but fractional silver always costs more money to buy from the refineries and the and the mints uh these to me are a great choice for those people that want to have

something that gives them great utility without buying the pre-65 junk silver that has ridiculous premiums right now it's something I like an awful lot yeah so if you are interested in those make sure you go to the description of this video contact uh miles Franklin and tell them that Mario or Monaco 64 sent you that is exactly right our new website is up we are still

tweaking some things regarding United States sales tax in about eight states so we're not delivering in some of those States at this point until that software is plugged in we hope it to be plugged in in the next few days the special for the quarter ounce coins you need to reach out to us we don't have the quarter ounce coins on the site at this moment

and if we do their different price so reach out to us on the quarter ounce Noah's Ark info at milesfranklin.com Mario sent me you can get a price list for larger orders because the website only goes up to ten thousand dollars if you want to spend more ask us we'll send you a current price list and uh we we certainly appreciate it very much Mario looking

very forward to helping any of your listeners and uh appreciate working with you very much and that is to use price suppression and suppression of or or or so not suppression manipulation of rhetoric to allow them cover for their de-dollarizing into their preferred asset class and that's gold and silver and when you see the most sophisticated investors on the planning you know we can say they

have the biggest money in the central banks but they know the Playbook and their closest to the information and they're the ones that are massively accumulating precious metals that gives me the conviction that the the rhetoric The Narrative that we see about Bitcoin as an example um is it's misdirection it's misdirection to me and so you know I understand price action in this industry is something

that is very disappointing from time to time it's something that is very counter-intuitive and exasperating but take a step back and ask yourself if if price was really indicative of value then why are the exchanges being bled dry and I want to just reiterate when you pull this metal off of an exchange two things are in place number one it is very difficult to do I

mean within that front within the meaning of that that sentence I mean it's not easy to pull metal off of these exchanges it's sophisticated and it it takes uh either a very sophisticated Trader doing it or a good amount of effort and number two more importantly than the level of sophistication it takes to to withdraw metal from the lbma or the comex or the Shanghai gold

of exchange it it also um loses the industrial liquidity component and so when you talk about Metal being yanked off of comics or the lbma when there are industrial buyers Samsung or Tesla or Sony or whatever it is whatever entity says well we want to buy those bars from you at a big premium right now as long as they're on the exchange and already you know

acid will take them when you pull it off the exchange you've lost all industrial liquidity and then where are you going to store this stuff so it's a one-way ticket is what I'm getting at so yeah I think the the the draw down from the exchanges where you know we have under 30 million ounces in the registered category on comex right now but if you look

over the last two months there's been over 230 million ounces of silver in exchange for physical delivered off the lvma so you have these these Clues if you look closely enough that the most sophisticated well-funded well-informed Traders on the globe are using this environment of underperformance and counter-intuitive price action in the metals and and the Public's being enamored with things like Bitcoin um to continue their

bleeding dry of the world's supply of metal so yeah Mario I think that that price is the greatest tool of misdirection and this is exactly what the the the sophisticated money has used for a long time to run cover for their accumulation so yeah I I understand what you're saying and I understand that the people love Bitcoin but to me you don't see the central banks

of the world loading up on it well I agree I agree with you I mean I I looked at Big Bitcoin first back in 2011 and uh the white paper and what it meant was almost like it was written for for gold bugs and people who believe in sound money so I I think it has been a a huge uh distraction away from gold and I'm

not slagging or off Bitcoin it might it will probably be do better than the Fiat dollar but against gold I'm not sure because it doesn't have the it's so volatile compared to uh to Gold that is not really a stable store of value and uh you said that we need to look at the bigger picture and uh you've probably seen this uh already uh increment some

uh in Gold We Trust they came out with their 2023 um uh issue and I always like to look at this gold performance since 2000 in various currencies and uh I mean it just goes to show that uh gold uh I I mean it's uh it makes even more sense what you said there misdirecting people they don't want people to protect themselves I mean look at

it in dollars it's gone up 9.3 percent since 2000 every year not just in total uh Euro 8.9 pound 10.6 I mean look at the Yen it's one of the worst uh worst performing currencies at 10.4 so yeah um you know if you ask people Mario even sophisticated Traders if you ask people who watch your show if you ask people who who watch me um they

might get it but I doubt it most people this is how successful the cartel is at control and price and rhetoric what has you know what what percentage has gold gone up over the last you know 25 years annually and no one would say 10 per year nobody and yet it's it's the it's the tortoise not the hair and you know people are are I want

to know what have you done for me lately people want you know double digit returns all the time that's what kind of we've fallen into this this um this dogma of of you know double digit returns since 2020 and and cryptocurrencies and and suppression of interest rates and and a deluge of money poured on the system that has enabled all of these massive returns at the

same time little old gold just Meandering its way to a nine point whatever percent annualized return that's exactly right I mean there are very few if anything assets that have performed better since 2000 you know I remember in 2002 gold was 252 bucks an ounce and here we are just under 2 000 it's up nine-fold no one would really think that unless you thought about it

or looked at the numbers no one would get that same thing is true with silver I mean it was what six seven eight bucks an ounce and even with its under performance it's still up four fold so yeah I think the this is part and parcel the big money who has been accumulating it for the last five years or so has been doing it incredibly methodically

and yes they use suppression of of of price keeping it in a tight Zone but great great volatility and hitting it when it should be going up that counter-intuitive nature of price action throws so many people off the scent because it doesn't behave the way the textbooks say it should but if you've watched The Playbook long enough and understand how it works I mean the majority

of my career you have the commercial Banks who suck in the speculators let the price rise and right before options expiration smack the crap out of it it doesn't matter if that coincides with the war or with bad economic news or something that should make gold and silver really take off they don't care this gives them the opportunity to hit it and de-link the rationale people

would put together with owning medals in other words it's a thing of the past it's archaic it you know it's it's it's not relevant any longer that's exactly what they want people to think as the central banks continue to copiously accumulate it as The Sovereign wealth funds in the family offices and the smart money uses that rhetoric and that that price action which is indeed quite

counterintuitive very often to to reposition and we'll wake up on a Monday night and a Monday morning rather and it things will be very different in my opinion when that happens and you can see that by the way that the metals are flowing uh you know Eastward so I think there will be that moment where we cross that Rubicon where we wake up to a new

reality not there yet but you can see the positioning is in in work yeah the other thing uh point I wanted to make about this uh scorecard for gold in different currencies is that it totally uh destroys this fallacy that um a strong dollar it means a weak gold price yes it might happen it might be in the short term but as you can see uh

the dollar is like not really the best performing versus gold is down you know gold is up 9.3 versus The Swiss franc Swiss franc is uh it's only up 6.6 and I I hear also all the excuse that oh treasuries and bonds they pay an income uh gold is a dead asset but the income you're getting and you've been getting in uh treasuries and government bonds

for the last 15 years uh they're all like negative in real terms so it I think it's a fallacy and uh yeah so um it is a fallacy and and certainly you know an asset that doesn't pay any interest is better than one that pays negative interest and you know that that is the reason look people need to understand the term very simple term called Gibson's

Paradox which is the inverse relationship between gold and real interest rates and so if you have a negative real return Then gold should do very well this is the Crux of the gold suppression for a very long time in fact a report that Lauren Summers wrote with the professor named barsky from Michigan State where they won all sorts of accolades and awards was called Gibson's Paradox

Revisited this is a guy who understood that if you are going to maintain a suppression of interest rates a western suppression of interest rates for a very long time and why would you want to do that well you suppress interest rates to stimulate the economy that's the Keynesian Playbook you step on interest rates you make you make stocks and bonds in real estate seem far more

attractive and the Playbook that they would use all those years is that the central banks of at least their gold to the commercial Banks who would sell it to the market drive down the price take the proceeds of those short sales and buy treasuries which would further strengthen the bond market the treasury market the real estate market the stock market by suppressing interest rates supporting the

bond market they would take the proceeds of those sales the profit and pay off their short position they were being told to do this by the central banks this is the whole Crux of the whole manipulation scheme forever was to support the bond markets to to to make everything look like it was a strong dollar that that interest rates were low as a result of it

that inflation was in check and and all along it was a ruse and you know and that's what like uh this uh Lawrence Summers he he went to work with uh Robert Rubin Rubin was the Secretary of the Treasury under Bill Clinton and Reuben had uh started out at Goldman Sachs at J Aaron which is the bullion trading department and then he brings in uh Summers

to be his Deputy who's written about Gibson's Paradox and I remember the treasury secretary himself after that yeah I remember at the time it was always the strong they always kept saying they wanted a strong dollar policy but people always ask how how are you gonna do that and I think it in the background there are doing it by suppressing the price of gold and keeping

rates artificially low and I think that's what triggered the.com bubble that was a big part of it uh yeah it's really interesting that um and he's still uh kind of uh involved in things Larry Summers he's advised every president since yeah there's no question about it and he understands very well the implications of letting gold which is the canary in the gold mine letting it accentuate

itself in an environment of suppressed interest rates as it should but you know that's why they step on it that's why they've stepped on it for a very long time and yeah oh sorry to interrupt you that article I showed in the beginning about the JP Morgan analyst they actually said that they expect gold to do well because real rates are going to go lower because

there's a chance a very good chance of a recession so yeah they they know that too almost a hundred percent chance of recession as far as I'm concerned you could argue we're already in it and then you throw into it high levels of inflation employment unemployment that is starting to go higher as 70 major corporations in the retail space have already gone under and many more

on the horizon um you're talking textbooks you know stagflation maybe even down the road hyperstagflation we've been talking about this for a very long time you know higher prices uh uh characterized by you know higher Taxation and and lower growth and and this is not a good environment to certainly to be in it and you know um I think things are going to start to get

much tougher and and this is all going to have effects on the banking system and I I think it's important to to mention and I'm not sure if I mentioned these two people to you last time but uh lail Brainerd I think you we've talked about and the other is Jared Bernstein now Jared Bernstein was just nominated by President Biden as his top chief economic advisor

he wrote a report in 2014 and was picked up by the New York Times Google in 10 seconds pops right up uh and it was titled titled um Dethrone King Valor in it he advocates for the dollar shedding its World Reserve status and because of the distortions and the bubbles and and the trade imbalances it creates so on one hand your top economic advisor Advocates removal

of the world Reserve status on the other hand you have Lele Brainerd who Advocates uh removal of all the banks and if you look at what's happening the issues with the banks and the weaponizing of the dollar and all of the people moving away from it it's almost as if these two people their their screenplay their thesis is playing out in real time on one hand

you have banks that are crumbling and I don't think we've even begun to see the end of it and they are intentionally I Believe by allowing the money markets to invest in the overnight reverse repo Market they are aiding and abetting the The Exodus from these Banks you are seeing this play out and then on the other hand Jared Bernstein who wants the dollar to be

gone you can look and see all of the things we have done to antagonize Saudi Arabia and and to weaponize the dollar we are not clinging to the world Reserve status we are doing all we can I believe to to push it away from us so at interesting times to say the least Mario yeah and it's interesting that you mentioned uh Brainerd and uh Bernstein who

I think I heard you speaking about him uh on another uh podcast uh and it seems like uh not just them but what the US has been doing in terms of sanctions it's almost like they're trying to push these countries to to diversify and uh I think this came out a day or two ago so look at and you've been following this uh petrol dollar dismantly

for many years I've been talking about it since like 2017 uh and Saudi Arabia now they they want to join the new development bank which uh is also known as the brics bank so that's like huge I think because it's the global heavyweight as gold Telegraph says they're in the energy Market yeah for sure and and United Arab Emirates already signed up with them and look

at the countries that they are China's getting into bed with you have you know besides Russia you have Venezuela UAE Oman brain Qatar Kuwait and Saudi Arabia do you see a common denominator there these are all countries that are very very um productive in uh in oil production and so you know to see these con and if you look at Saudi Arabia which is really the

linchpin of of the dollar hegemony look at it for a minute I mean not only did they sign a military agreement with Russia the day we left Afghanistan they formally applied to brics they formally applied uh to the Shanghai cooperation organization even as a as a Observer or I forgot the exact terminology it's one step away from Full uh engagement with them but they've applied they

they also told folks in Davos they're open to taking new currencies for oil they just signed up with the with the brics bank that everything they are doing because we're a nation going green and those countries which comprise 80 percent of human population are not everything that they are doing is putting the pieces in place to say hey thanks for the Memories we're done taking dollars

now they're not going to do that until they are all the pieces are in place and you can see I mean you have to be blind to not see that they are one by one by one by one checking off all of the boxes in in relationships and in infrastructure and I think they're this close to saying to the world you know we're we're no longer

going to take just dollars maybe that comes in unison with the bricks issuing their new Reserve currency Peg to Commodities who knows um Aleister McLeod is talking about the Shanghai cooperation organization issuing a gold-backed reserve currency for the entire Eurasian continent the the Shanghai cooperation organization is the largest realtor military and um uh Financial Regional group in the world and they comprise 60 of all the

Eurasian land mass as is 40 50 60 percent of population of the world this is just one group you add into it the bricks the Belt Road initiative the Eurasian economic Union and you know you're talking the majority of human population that are all coalescing and it's as if we are incentivizing this by weaponizing you know 30 of of the world the G7 is and it

just seems that uh or sanctioning rather you know 30 30 of half of the you know the countries around the world are being sanctioned by G7 countries we are pushing this making this happen we are incentivizing it either that or completely stupid and naive and you know I that's why like I said when they came out and blamed inflation on Putin I said they're looking for

a villain that's it they're looking for a villain because inflation is an increase in the money supply period and by them pointing to Putin it said to me well when this all blows up they'll blame Putin and Xi Jinping and OPEC for for doing this yet we're incentivizing it I mean it's so clear to me I I hope I'm wrong but I have a feeling that's

the ultimate playbook there's your great reset without falling on the sword there's your uh sorry Central Bank digital currency yeah so yeah it's almost as if they uh they know they have to do this because the US is so much that that that has to be written off and what better way to do it than to uh blame it on uh blame it on other people

not on the fact that the FED has been printing uh money for for the last 15 years the treasury's been borrowing like a a drunken sailor and talking about drunken sailing the treasury uh could we uh finish off uh with what's going on uh in Congress today and whether you think it's that important and uh how do you think it could impact things yeah I mean

I I look I I it's a kind of impact things no I mean if they would have defaulted I guess it would have I think that it to me it's um it's pathetic that supposedly the the most prosperous Advanced economy in the world continues to find themselves in this position it was just a few months ago six months ago in January when Janet Yellen had to

resort to um Extreme Measures to raise the debt ceiling then and as I mentioned on so many podcasts it took me forever to find out what those Extreme Measures were I found it in the Yahoo finance article the only place I could find it where they said that she borrowed from the civil servants retirement fund the Postal Service retirement fund and the disabled veterans retirement fund

in order to raise the debt ceiling at the same time we've given nearly 200 billion dollars to the Ukraine and yet we have to raise the debt ceiling continually because we keep running out of money it's I find it to be uh crazy to be honest with you and we've reached a point where the FED is either going to have to print more money and devalue

the dollar or make their debt more attractive by raising rates one or the other and if that happens if rates rise you can see what happens to the entire system it's going to break so they're going to do what happened last year didn't we yes sorry it's they're going to print that's the bottom line look Mario you have the elephant in the room that no one

talks about and that's the Medicare Medicaid Social Security and government military pensions that are 100 plus trillion dollars 130. 77 trillion short in in Social Security alone so forget about the 32 trillion dollar debt say we have a balanced budget how the hell do we pay 100 plus trillion that's off balance sheet most of it given to the American Republic in terms of those entitlements I

don't know you would inflate that's the bottom line inflation is here to stay yeah inflate or die I think Richard Russell used to say that uh Andy uh thank you for uh coming on the channel it's always my pleasure Mario I think um you're you're one of the best in this industry I watch everything you put out I appreciate I appreciate being here I got one

question for you though real quick as we wrap up you know everything that we're talking about focuses on the us if we see that moment in the U.S where um that moment where things collapse whatever the reason is how does this all play out in the United Kingdom something I've been trying to think about how does it play out if if the dollar is no longer

the petrodollar well what happens to the UK well it's not good either because uh we are like we always follow the US uh we don't have that much gold we got 300 tons of gold as reserves U.S supposedly has 8 100 but the the biggest reserves we have foreign exchange reserves guess what they're dollars I I think the UK holds over 200 billion dollars in reserves

why they don't don't they convert that into into gold so the UK will not be uh in in good shape and I think if anything the UK will go first before the U.S that seems to be what happens uh we saw that last year in uh September October we had that again Market collapse and the the defined benefit pension system almost imploded and then six months

later in March we had the crisis in the U.S so if anything uh keep an eye on the UK because a lot of times what uh when uh you know what hits the fan here you will find that it will hit the fan in the US later on so it will not be an alternative to for U.S investors to come to the UK I think they

need to stick to gold and silver I understand well if that happens Mario I have a room for you here in Florida we can play golf until the world implodes and uh you feel free to come this way if that ever happens but thanks for having me you know I always appreciate and I look forward to jumping back on with you hopefully not too long down

the road you're welcome and thanks for coming on again tomorrow