Gold Price Will Double the Dow-Mike Maloney
By Greg Hunter’s USAWatchdog.com
Precious metals expert Mike Maloney says, “According to dividend yields, we’ve never been in a bubble as big as we are today. So, I wouldn’t get involved in stocks at these levels. I think they’re insane.” Maloney wrote the best-selling book, “Guide to Investing in Gold and Silver.” Maloney says real estate and bonds are also overvalued. The only things undervalued are precious metals. Maloney contends, “I think you are going to see a day when the gold price is double the Dow because we are coming off the greatest bubble in history . . . gold really hit an all-time low in the year 2000. It’s a 5,000 year low, and we are coming off of that . . . it should be one of the biggest reversions in history.” Maloney also predicts a new monetary system by the end of the decade. He says, “When everything starts to fail, they will be looking around for what worked before. . . . It’s going to be a global financial convulsion the likes of which we’ve never seen.” Maloney goes on to say, “It’s a 100% failure rate. No fiat currency has ever survived, now all of them are fiat. So, this shift will be the most dramatic in world monetary history. It’s going to be the world’s greatest wealth transfer in history. Therefore, it’s the greatest opportunity in history.” So, how high will gold go? Maloney says, “The more you study it, predictions of $2,000 or $5,000 gold becomes absurd. It’s absurdly low.” Join Greg Hunter as he goes One-on-One with Mike Maloney of GoldSilver.com and producer of the new video series “Hidden Secrets of Money.”
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
I AM SHOCKED! A gold salesman who thinks the price will skyrocket. I didn’t see that one coming.
Paul,
Maloney laid out his case for why that would happen. You are welcome to lay out your analysis for why it will not.
Greg
Check
WHAT A JOKE! Gold price will double. When did I hear that before?
I think it was around $400 an oz.
Greg
W/regards to his views on prepping;
He may own a country home,w/large crop acerage, or have connectionsw/family members.
Owns a decent RV w/all camping gear. Ability to relocate quickly to great fishing/hunting areas.
Plenty of gold assets to buy his way around.
But for us common folks w/ 5 kids @ home
Seeds, a yr supply or more food, canning gear , 600 gal. Gas, chainsaws/related stuff, and a reasonable bug out of city location, chickens, rabbits, generators, invertors , water filters etc;
Brings us
Greg
W/regards to his views on prepping;
He may own a country home,w/large crop acerage, or have connectionsw/family members.
Owns a decent RV w/all camping gear. Ability to relocate quickly to great fishing/hunting areas.
Plenty of gold assets to buy his way around.
But for us common folks w/ 5 kids @ home
Seeds, a yr supply or more food, canning gear , 600 gal. Gas, chainsaws/related stuff, and a reasonable bug out of city location, chickens, rabbits, generators, invertors , water filters etc;
Brings us peace of mind
And Christ, peace of soul.
Everyone is different type of family
Finger, o. p usawd
Alols
Moloney teaches Hunter that money is a promise to tax in the future. He is on to something there, and Hunter woke up to it. Its called “inherent” value of our money, based upon threat of imprisonment for not paying taxes in FRNs.
I still don’t believe Mike’s “transfer of wealth” I don’t think gold purchase power will increase at these crazy rates. Sure the price might hit 10k but land, guns, food and fuel will increase the same.Of course its better than holding paper 🙂
Over all, great long interview. Thanks Greg.
Good interview! What he said about the masses voting for a person who promises change is so true, and so frightening. Especially since this is a global economic problem, that, like he said will affect everyone, no matter who you are. So will it be a global leader elected to save the world??? That’s just a real goid excuse for the anti-christ to come into power… And what you and he were talking about the pensions being government controlled makes my skin crawl. I know of sooooo many Boomers who are retired and living retirement check to retirement check. Anyone diminishing their pension, and a lot of them would be destitute real quick. That, if nothing else, would cause rioting and upheaval. Pray, people; we all need to pray!!!
Greg ,I didn’t think it was possible, but Mr. Maloney somehow figured out a way to put lipstick on a pig. The day after the crash when you wake up you’d better have a SR40 next to your bed stand instead of a Wall Street Journal. This is going to be ugly. Real ugly. We have massive numbers of people living off the government, and a large number of people who are depending on their 401K for their financial future.
You can only create money out of thin air, as long as there is someone there to buy your promise to pay it back. What happens when you don’t have anyone to buy it? Then what? The Chinese have backed away from buying our Bonds the last few months in favor of buying tons of Gold. So have the Russians. Do you think maybe they know something we don’t? This massive military machine that we’ve built will come to an abrupt end if we can’t find money to fund it. Checkmate again!
Greg there’s an old saying. Just because you can roll a turd in powdered sugar doesn’t make it a jelly donut. Let the MSM sugar coat our situation all they want. Its not going to change the fact we are all in serious trouble. I appreciate all you do. Thanks for keeping us posted.
jerry,
I think you are correct but I think you are going too light. A friend of mine just bought a Beretta 1201 FP.
Greg
Checkmate
All this talk about checkmate these days makes me wonder, are there any USCF ranked masters out there?
Greg,
Very nice job with Mike Maloney. I saw Martin Armstrong interviewed by Kerry Lutz over on the financial survival network website. Mr. Armstrong says that the stock market is going to double by 2015. If he is right and Mr. Maloney is right that would put gold at $64,000 per ounce.
I would love to see you interview Martin Armstrong and see if he would agree to that level on gold.
Regards,
Chuck
Chuck,
I don’t know where the price is going, but I think you are better off with PM’s than without them. I keep saying, “It’s all about possession not price.” You either have insurance for financial calamity or you do not. That simple.
Greg
If the stock market doubles by 2015 we are in deep trouble. Why? It has never been so far removed from fundamentals as it is now. We are not on an economic track or path to put a real foundation under it at its’ current dollar valuation, let alone an increase. If it doubles by 2015 the dollar will have lost a lot of buying power [hyperinflation].
Greg, thanks for bringing on Mike Maloney! I’ve read his book probably 6 times already and I hate reading. He is one of the top guys I listen to along with Peter Schiff. I think these 2 are absolute geniuses when it comes to what’s happening to the world financial system can help us all understand how to prepare for what’s coming. I still would love to see u interview James Wesley Rawles of Survivalblog.com. I don’t think he’s ever been on has he? Keep up the awesome work.
Paul T,
Thank you for your comment and support. I thought Maloney is smart and in the long term he will be proven correct.
Greg
In summation the good news is our metal will at some day finally be worth fair market value, used as money and we will be wealthy, but the bad news is we will be living in an impoverished world filled with angry desperate people under the sway of lawless despotic rulers………..I guess the real question for me is will enough people “wake up” in time to take meaningful action to endure the inevitable and looming crash of our currency and thus have a shot at impacting the shape of our society on the other side of such a crash….or will a majority of my fellow citizens just keep pumping whatever wealth that our glorious criminal corporate run government allows them to accumulate into a roach trap of a financial and taxation system until inevitability hits and they loose everything and thus are forced deeper into the arms of the very people whose utter lack of concern for their well being brought them into such dire straights to begin with.
It really is like some cruel act in a twisted play unfolding before a captive audience!
Greg: very soon, the PMs will be the investment of choice even to indoctrinated Westerners who are oh so slow in waking up to the imminent global economic implosion. Alternative investments are looking rather weak these days. As Mike says: Stocks, bonds and real estate are in definite bubbles just waiting for a pin to appear. In recent days, over 22,000 layoffs in the mortgage departments of major banks. So much for the housing recovery, and its presumed jump start of the general economy. The problem, as I see it, is that those in charge of policy making (on a global basis, just not in the West), have their backs against the wall and might do something that only true psychopaths would attempt. Dangerous times for the 99%, especially over the next 12 months.
AndyB,
You have made 150 comments on this site. This is one of your best! (And you have made many really good comments.)
Greg
Hi Greg,
Great interview and thanks for having on Mike Maloney!
I’d like to just put my .02 cents in on the confiscation issue. As you and Mike correctly fleshed out, gold was NEVER confiscated. It was nationalized and holders were subsequently paid for their gold at the fixed rate. Much of the talk of confiscation today are by numismatic coin dealers trying to sell coins with high premiums.
The uranium story after WWII gives us some insight into how the government may react here. In 1946 the Atomic Energy Commission (AEC) guaranteed a minimum price for uranium to increase the domestic uranium supply. This supported the mining endeavors at the time and brought a lot of uranium to the market.
The same thing could be done today. Governments would be far better off to promote a fixed (or better, free market) price of gold that would guarantee profits and cause much more gold to come to market and allow them to either grow the money supply or pay debt down. Many instances of government nationalizing mines have ended up in complete disaster. I just don’t believe this would be attempted. Sure they may raise royalties and taxes but I assure you that with the returns you will have you will still be compensated as an investor.
Another case here is instructive though some may not approve. Look at Venezuela. Chavez had the wisdom to NOT nationalize their gold minds but mandated that the gov get first dibs on all gold mined and they would pay market price. Brilliant. China (and Russia?) are currently doing the same thing.
Consider the consequences of nationalizing mines and gold and silver in America today. It would cause permanently damaged psyches in the minds of investors when retail investor participation rates are already in decline. Would the gov further exacerbate a dwindling (non-existent?) support level for government? Do they want to completely erode ANY trust left in the system? Very dangerous long term implications involved there.
And lastly, as Jim Sinclair points out, when gold was nationalized in 1933 we were on a gold standard. We are not now. QE is effectively taking the place of that prior insidious process of deception and trickery. Think about it, 80 years later and people are STILL distrustful of the gov and what they did back in 1933!!!
That’s all. Thanks again for all yo do!
Finn,
Thank you for adding your perspective and analysis to this post.
Greg
Finn,
why would the feds make a noise and draw all the eyes to gold as money if you can slam the price down with naked short position that can go without any legal consequences and still trash gold….I CALL IT SMART CONFISCATION….it has been happening for a while but most people do not feel it.
Nationalization=confiscation with nice makeup
I don’t fully understand your question. Most people are unaware of the gold market so they are doing their best to NOT draw attention to themselves. I’m aware of the mechanisms they are using.
Learn about the gold stock to flow ratio.
Hello,
Lately, I had conversation with three of my schoolmates from
MIT. Two of them have phd with math and engineering degree.
They all don’t believe in gold. They said gold have no intrinsic value. They also don’t belive America have troubles in the future. Because other countries still trust the US dollar and their military might.
Kl chew,
I am sorry to say your buddies are going to be in for a very rude awakening.
Greg
KI chew’s friends are highly intelligent, and adamant that they are right about an area they know nothing about. They are in denial, or perhaps they haven’t gotten to denial yet.
Your friends are my friends….
KI chew,
Perhaps you would like to show your friends the following picture I took off of a building entrance near Santiago, Chile.
http://silverstrategies.blogspot.com/2013/09/chilean-view-of-dollar.html
I asked a local about it and they told me, “everyone knows the dollar is going to blow up. Your banking system is crazy”. This was just an average person.
Maybe MIT engineers aren’t all that. Or maybe their arrogance gets in the way. I’ve argued with more PHd’s over the past year than I care to recount. Every one stuck with some ideology that narrowed their world view because they thought they were more intelligent than me.
What’s great about FACTS is that you don’t need intelligence to disseminate them.
i would say a lot of those phds actually do know what they are talking about in many cases but are also every bit as vulnerable to brainwashing. i don’t necessarily disagree with maloney, but i’m not qualified to know either way. he doesn’t seem to have a deep enough math background so i’m curious if he has any phd’s who will standby his thesis.
Great interview Greg. My family thinks I’m crazy as well for accumulating physical gold/silver, emergency food, firearms and ammo. It’s a very scary time for us all and like most wise people, I won’t take chance of my young sons going hungry and broke. Keep up the good work.
Orlando,
If you are wrong there really is very little downside. If you are right (and I think you are) it may be a matter of life or death. At the very least, If you are right it will provide a comfortable life instead of extreme poverty.
Greg
Greg,
If you are going to retain your own credibility you have to hold guys like this accountable when they are obviously spinning.
When he says gold is less than double from 1980 prices you are letting him cherry pick the data to make his point. If you compared it to 1980 prices ($35/oz) gold would be up 38-fold. Looking for cherry picking of data intervals is an old and obvious trick that you should be up on.
I also heard him say that Fiat money had been tried thousands of times and had failed every time. That can’t be true either.
Please step up your game on the fact checking.
Douglas M Dillon,
Douglas M Dillon,
You may want to check your facts first. In 1980 gold clearly passed the $850 mark. Here’s the chart and link: http://bullnotbull.com/archive/gold1980.html It was NOT $35 an ounce in 1980. As far as fiat money, please tell me the un-backed currency of yesteryear that is still around today. Maloney’s numbers and facts are both correct.
Greg
Gold was more than $35/oz in 1970’sthe when Tricky Dick closed the Gold window at the feds. America’s gold supply was being suckes out at terrifing rate becuase they could give fed $35 and then sell it for $40 or more. Its called arbitrage.
droidX-G,
Thank you for this little historic monetary lesson.
Greg
@ Douglas M Dillon,
Did you really just reprimand others for not fact checking and then state: “I also heard him say that Fiat money had been tried thousands of times and had failed every time. That can’t be true either.”
Now that is RICH! LOL!
“I heard…”??? “That can’t be true…”?? Hilarious. I mean sad.
Previous comment should have read… If you compared it to 1970 prices. How about if you compared it to 1990 (up three fold) or 2000 prices (up 6 fold).
One more important thing.
I didn’t hear India mentioned anywhere in this discussion. The most obvious place for it to come up was in the discussion of confiscation.
Punitive taxation (as is occurring in India) is a much more likely outcome for US holders than outright confiscation.
Also, the huge uptake in government intervention in India throttling their demand (largest buyers in the world for decades) is the most important story on Gold fundamentals since the April price drop. Its also quite bearish. Anyone who claims to be presenting an objective outlook for Gold and who doesn’t cover this is just a spinner in my book, not a looking out for the good of his readers/listeners/viewers.
You don’t want to be in that category do you, Greg?
Douglas M Dillon,
If you don’t like gold please just say it and be done with it. You can pick any point you like to make any point you like. Hey what about the folks that bought gold at $350 per ounce? What about the folks who bought at $600 per ounce. The Indian government bought at $1044 a few years back. This was a 40 minute interview! I covered a lot of ground. Maloney wrote a best selling book on buying Gold and Silver. What are your credentials? I happen to like physical gold and silver. There I said it. I have said repeatedly, this is not a trade. At this point, Au and Ag are all about possession and not price. You either have insurance for financial calamity or you do not. I DO NOT SELL GOLD OR SILVER or any other investment for that matter. I have Google ads, and I have no control over what adds are placed on the site. Please note, I did ask Mr. Maloney to address the folks who bought gold at a much higher price in the last few years. I do not appreciate the suggestion I am misinforming people for profit. Anyone who would come on my free site and question my credibility with a weak one sided argument is way off base in my book. You don’t want to be in that category do you, Douglas?
Greg
Greg,
I notice you have an Ad for Sun Ovens. How come nobody accuses you for making a profit selling Sun Ovens?
People. Wake-up! The dollar has collapsed. Since 2006, it has earned basically zero interest and needs $trillions of printing to keep it afloat until it finally spirals into worthless mode. Nobody wants bonds, nobody wants T-bills–except those purchasing them in large quantities to dump them later and basically own us….
PMs, food, water, defense, debt reduction, are not an option but a mus-do if you plan on surviving the very near future. But even then, it is not a guarantee. But at least you tried. Better than needing and waiting for Govt help….
Ugly,
Thank you, that’s a good point. Remember all the ads you see come from Google. I have no control in what ads are placed. I think everyone that can afford to should buy some gold and silver coins for protection. How much is up to you all. (I do not sell gold, silver coins or metal of any kind.) Thank you for your nice comment and yes, folks should buy food and water. It is very cheap insurance.
Greg
Well if the bail ins and dept annihilation happens, then the financial collapse will be apparent and will be followed by economical, political and in the case of USA social collapse, social unrest and even civil war may break out. In case of Europe, well several charismatic Hitler-ish mass murderers may came to power. It is all about the trust resp. its lack.
Because look at the Cyprus, they economy evaporated, If because of bail ins € and $ will became worthless (because the lack of trust) and supply chains will be broken, than nothing good and civilized will happen and don’t expect fast recovery. He is too optimistic because, if the trust evaporate, its hardly came back.
So that is why I partially disagree with Mike Maloney.
What do you think Greg?
Oracle 911,
It is very hard to predict an outcome with our current financial crisis because this has never happened before in human history. The world has never been on a fiat system. There has never been this much leverage and debt in the global financial system. It is many times the world GDP. There has never been this much fraud and criminality and government sanctioned accounting fraud (FASB April 2009). We’ve had money laundering for drug cartels and terror groups, securities fraud, mortgage fraud. LIBOR rate rigging fraud just to name a few. And big bankers have gone to jail!!! On top of that, we have never been this close to a world war that could turn nuclear on a global scale. I think you have to be ready for anything. There is an old saying in construction: “When in doubt, go stout.” So, “go stout.” Mr. Maloney was suggesting things may end up in the middle between “everything is OK” and “Mad Max.” If we do end up with and outcome in between the two, then it is still going to be very rough for the 99%. Thank you for your comment.
Greg
Well the scenario depends where you lives (I hope Orlando will it read to).
In Europe where I live, there is Russia with its natural gas, oil deposits and with pipelines so if the financial and economic system collapse they will sell oil and nat gas but I have no clue what will they want for it, so expect fuel, energy shortages and riots+civil unrests. In other world the situations here will resemble Argentina in years 1999-2001, maybe its rougher version.
Well in US the scenario will depend which part you live your life,
because some places may be intact/less damaged like Texas (according this article Texas may became independent again: http://12160.info/forum/topics/texas-official-state-actively-preparing-to-become-an-independent?xg_source=activity ) and some places became Mad Max-ian Detroit like concrete jungle for example New York, LA, Washington, Miami or Las Vegas (and their close vicinity). Yes I’m talking about the scenario in which USA may fall apart into 2-4 parts.
How it play out don’t know exactly, it depends on mass psychology and money/energy dependency and energy/food availability of the region.
So trust in system (as the economy) will evaporate practically overnight and how bad will be the outcome for you depends where and how do you live. And yes it will be rough for 99% of people in WEST, in far East well China will have unpleasant time and the rest of the world will be hammered.
I recommend read something about permaculture and learn how you grow your food, it may be necessity.
Still want to know what do you think.
Interview with Karen Hudes, it contains information which made me think (together with previous linked article) USA may fall apart if the things go really wrong-watch the video: http://www.zerohedge.com/contributed/2013-09-11/smartknowledgeu-exclusive-interview-world-bank-whistleblower-karen-hudes-worl
What do you think Greg?
Oracle 911,
The consensus from my guests: The banking system was never fixed since 2008, and it is much more leveraged today. The next crash will be a monster that the Fed will not be able to rescue us from.
Greg
2 Greg
Serious question: Do the FED and other want save the American people (and the world economy in general) or just their “friends”?
I think the FED and other central banks don’t want save the people, they want save just their “friends” AND what is the worst thing they want sink the people just for profit and power over the people.
Oracle 911.,
So far the Fed is clearly putting their “friends” as the top priority.
Greg
If the calamity happens under Obama: I think the impoverished middle class may vote for what they believe is the more conservative candidate. Imagine our society making this type of change relative to our current societal status. My knee jerk reaction to part of the interview.
Thanx Greg,
I still think u need to give more shrift to alternative, contrarian, and ‘out of the box’ guys.
My gut tells me there’s a think tank brewing rite now with guys like Kurzweil and Musk to come up with a jazzed up globalized federal reserve, 100 trillion dollar bond, or any one of several cockamamie digital schemes that may or may not have some degree of gold or commodity basket backing.
They could implement this at the implosion point or shortly thereafter to avert martial law and chaos.
It would probably skyrocket gold & commodities overnight but I wouldn’t put it past them to have some scheme in their back pocket to prevent that from occurring.
Amen!
Hello Greg, Another good interview i have looked at Mike Maloney
videos before he knows all about the history of money and how it relates
to fiat currencies, but does not involve himself too heavily in current political events. He says things like gold could go to £5000 in ten years time whereas a more political aware person would be saying anytime soon, so Mikes information is understanding markets and how gold functions in this scenario, so a good interview overall.
Thank you John and J Marty for the kind words and support. I am sure Mr. Maloney appreciates it.
Greg
Greg,
Just a great interview. I like your idea, “It’s all about possession not price.” I think you have hit the nail on the head. If you will recall, we are in a ammunition run. Almost no one has had ammo for many months, despite the fact that these companies are producing it 24 hrs a day. When things go really bad, the run on gold and silver will make people forget all about ammo. Unlike ammo, gold and silver has to be mined. This will make it much more scarce and valuable.
Greg, I notice you always ask whoever u interview where they think prices (or purchasing power) of gold and silver will go. As you say, you either have it or you don’t. Chris Duane points out that roughly a silver dime (silver denarius) in Roman times was a days pay for a soldier or tradesman for a 12 hour hard days labor. So to put that in today’s dollar perspective, I would say that’s between $100 and $150 a day. So that puts a silver dime worth that much in real terms at fair price, (provided that silver today is as rare as it was in Roman times). It may be more abundant or more rare due to industrial usage, I don’t know. But if all that turns out to be true, then that puts an ounce of silver in today’s dollar terms between $1400 and $2100 an oz! I don’t expect that at all(who knows),but that’s just Chris’s math.
Greg I’m going to ask your readers (who I consider some of the most informed) again ….how do we get out of this 100 Trillion (total debt) debt bubble without a collapse? When you put a pencil to the math, it doesn’t compute. I’m not trying to be a smart ass, I’d really like to know?? If printing worthless money is the only solution that the wizards in Washington can come up with, it just makes good sense to invest in precious metals, jewelry, or something that has real value, no matter what the return is right now. I mean one half of a loaf of bread is better than no bread at all right Greg?
That is unless you need toilet paper.
Jerry…eventually, no one world wide will want the US dollar. Most of the dollars printed are overseas.
When people worldwide have had enough of our paying debts with worthless paper, inflation will roll in like a tsunami wave of beyond epic proportions…the only grace for them at this point is that they can use our fiat to purchase tangible items.
Soon that won’t even matter.
CYA…use common-sense to survive.
Greg,
I just read the article on the absurdity of these smaller estimates of future gold pricing in light of its true historical pricing and the need for a new monetary system. Let me just leave that opening remark in broad terms.
Here’s my concern. I agree the fiat system is a failed religion that was created for the benefit of banking leverage. I agree that our global monetary system is headed for a reset, collapse, call it what you may. I agree that pure mathematics of the global debt scenario is unsustainable. Now, when we do institute a new global currency system, and I go believe we are unmistakenly headed for globalism, we do recognize a likely basis for this new currency is gold, or rather “backed by gold”, due to the original limitations of holding physical gold. Who will have the gold? If the global system of currency issuance is supported by gold, I can assure you that we may not be on a gold standard, it will be more indirect. Therefore, the governing body, whether we call it the current IMF or Bank of International Settlements, will be the sole owner of the gold, and its underlying owners. Why would any government entity leave gold in the hands of its individual public.
All of the arguments that I hear regarding gold confiscation speak to the fact that we are not on a gold standard today. Granted, but it’s coming back indirectly and the support to the world’s new currency standards. How can we say with any confidence that private gold ownership will survive this global initiative that is clearly coming?
If gold is needed to instill confidence in this new system, whatever form it may be, it will be deeply held within the governing body of that new system and not in public ownership.
I agree with you Steve, I think the only caveat however is the size of the market this time around. I understand it’s always been a global market but the amount and type of players have changed. They will let it rise first to new highs before a system is put in place, you will be deemed “evil” for owning gold but will have a chance to cash some out before it gets to that stage. A black market will exist but most will take the “currency buyout” option while the getting is good.
History doesn’t repeat itself, but it does rhyme-Mark Twain
Greg,
I’ve seen a couple negative posts, and I just wanted to tell you I appreciate the work you do along with the interviews. Mr. Maloney being a salesman of precious metals doesn’t bother me, when you study monetary policy and look at the history, the logic all makes sense. Anyway, just wanted to give some support, and to keep up the good work!
R.J. Perry,
Your support is noted and appreciated.
Greg
Thanks Greg, great interview!!
Greg,
Nice interview. Many of comments show you have a high level of
fans and listeners.
The economy is analogous to a huge balloon full of hot air. The hot
air is the total money supply. If the hot air were let out the of balloon and disappear the economy would end in deflationary collapse.
All the money (hot air) that fills the balloon (the total economy)
must be borrowed into circulation for interest either via the private individual for via some government entity through the private international banker owned central bank.
When any debt is paid off the money used to paid off that debt ceases
to exist. The interest is the bankers profit and goes into his pocket. A paid debt means some hot air is let out of the balloon except for the interest. So to keep the balloon inflated someone else has to borrow more hot air for interest to replace the prior paid off debt.
The problem comes in because the interest also has to loaned into
existence for interest which means the total debt can never be paid off where the people live in a debt forever system in which the whole world finds itself today. The one percent (the bankers) own everyone and everything; e.g. the collateral on the total indebtedness. Your birth certificate is proof of the collateral that government(s) uses to borrow money for interest into existence. That’s the reason the 99 percent are now known as human resources.
As Bill Still pointed out in his money masters film there was a non gold and silver money that really worked called the tally sticks of merry old England. However, there is no paper money in the history of the world that didn’t become worthless. Ask the Chinese who first
invented paper money.
Bottom line. The people are debt slaves forever to a debt that can never be paid. For over 100 years the US government and the banking elite behind the money system pulling the strings comprise the greatest criminal enterprise in the history of the world. It’s not going to end well.
No matter how much prepared with metal and meals you are the only real
solution is for the American people to clean out that rats nest in Washington D.C., and tell their state and local governments to shape up or else. Otherwise we will all be vaporized and radiated into a pool of melted metal and flesh.
Nationalized not confiscated? Nationalized at the point of a bayonet.
Executive Order 6102 criminalized the possession of monetary gold by any individual. Violation of the order was punishable by fine up to $10,000 (equivalent to $177,352 today) or up to ten years in prison, or both.
Yes they paid $20.67 in FRD well under the true value.
Tell Frederick Barber Campbell, his Gold was not confiscated;)!
GOOD INTERVIEW THOUGH!
While they may be able to phony up the price here, no one will sell at those prices when they see an overseas price that correctly reflects the true value
I bought Two silver coins – Maria Theresa Thalers – a couple of years ago. They went from 350 to 2200 in the local currency. Now we can’t find any except in the provinces. I aim to buy much more. Real soon.
Amman,
Please tell us what country we are talking about. This is good stuff. Thank you for posting it.
Greg
thaler daalder daler dollar
Mike stated he doesn’t [strongly] expect gold or silver coins to become circulating “crisis” money or currency [if I heard him right]. During the OPEC embargo gas supply crunch in the mid 1970’s there were long lines for gasoline in high population density areas. In LA one gas station owner opened one gas pump just for people who paid with 1964 and older 90% silver coins. There was little waiting in that line while others with paper or credit cards waited hours.
I think good preparations would include some old silver coins, or fractional silver bullion 1/2, 1/4, 1/10th ounce coins.
Great interview Greg,
But what happens to fiat debt based jobs when dollar crashes? Do government and health care jobs disappear? Those alone amount to around 45 million out of 145 million. Manufacturing is only 8%.
What good is a new monetary system with no real jobs?
Here is the problem I have with guests like Mike Maloney.
They have a financial bias toward there comments. If he feels gold is going to hit $5-10 thousand and fiat currency is going to erode.
Then why does he want to swap out his metals for dollars?
As for selling survival food on his web site. I cant imagine it would be cheaper then loading up at costo.
Roger,
Fair enough. Thank you.
Greg
I agree with all mr Maloney says. Elliot wave says that our equities, real estate, and bonds are all at the top of a three hundred year pattern. Deflation is more a probability, as sovereign debt will be in default. All principle destroyed. Less liquidity. This is the question; does the PM sector get the last bubble? Or does default cause margin calls that force a sell off of PM holdings? Any thoughts?
I have deep respect for Mr. Maloney, but his gold price predictions will not come about. Maloney, James Turk, Eric Sprott, Peter Schiff, Adrian Douglas, et all make these predictions based on the World Gold Council’s statement that there are about 170,000 metric tonnes of gold on the planet. Yet in fact the amount of gold is many times that. Most of it is hidden away, but when currencies are revalued, it will become more apparent.
Silver on the other hand is way under valued, as the gold / silver ratio is way out of whack and will correct itself at some point. But gold will not reach the tens of thousands of dollars that many conservative / libertarian economists predict.
Greg,
I’ve heard Mike Maloney prior to this. It was several years ago. If he is an engineer, so be it, but I am an engineer too, and yet I do feel Mike embellishes an awful lot of what he says. I do hold both gold and silver, but I certainly do not expect it to be ‘double the Dow’ or a certain price of $5,000 to $10,000, nor think I need to be told those numbers are absurdly low.
Its impossible to predict how or when a currency will cease to exist, just as its hard to predict a market top, or a crash.
What we do know about Gold, and silver for a fact, is that they are convertible into every currency out there, and you can go to a place like Kitco, and see how gold is doing against all major currencies.
I don’t see that aspect talked about by much of anyone, including guru’s like Sinclair, or even Rick Rule of Sprott.
In my view that tells you all you really need to know about gold or silver bullion. I bought my first gold coins back before the market crash in 2000. Did I ever expect them to more than quadruple in value or get well above $1500 at some point ? Nope.
They could just as easily drop back to below $1000 or $500 in USD amounts, and I would still hold the coins from back then, and any I’ve purchased since, and as recently as the lows just below $1200.
Its mostly about diversification, and the future ability to be liquid in just about any scenario or country or currency. One’s house may be viewed as an ‘asset’ but its not liquid, it can’t be sold to someone who wants to live in China, or Canada, unless they happen to want my house for an ‘investment’ property in the exact same area I live here in the US. The same can be said for any number of other things, such as art, or even collector cars. They just are not easily turned into something with which you can buy something else.
Personally, I think too many people get way too caught up in speculating or dreaming that the price of gold or silver will achieve x, due inflation, war, QE, deflation, and all sorts of other financial parameters that largely are irrelevant. SO while Mike’s comments are certainly interesting, and even entertaining, if not informative to many, if people really understand what gold and silver are all about, its just simple common sense, to have them as part of important assets or something that is so readily convertible into virtually any other monetary medium.
Again, I am an engineer by degree, specifically mechanical, and I base nearly every single decision on good old fashioned common sense. Derived by using basic deduction, and thinking that any good engineer comes to learn to use. I didn’t need the degree to be able to call myself an engineer either, as I have built, fixed, and repaired numerous things my entire life.
Maybe common sense is what’s in such short supply these days, and that’s what people should be focusing on. I do think most of your readers here have a fair amount of common sense. Thus my recommendation to anyone and everyone, is if you hold any one of the world’s currencies, then it just makes good sense to take some of those currencies and convert them to PM’s. Pick a percent, any percent, that you are comfortable with and just do it. Once you start, then you’ll learn more as you go, and then over time you’ll become just as comfortable holding it as you do US dollars, or Yuan, or whatever currency you happen to be using at present.
Don’t worry about the POG or the POS, or timing the purchase (I call it conversion, rather than ‘buying’ the metal) or the volatility of either metal in terms of price. Currencies are also highly volatile and most people don’t even think about that when they hold and use those.
And truly, even if the metals you convert to, don’t amount to a large percent of what you hold, you will find that you gain a real sense of peacefulness, and security that you may not have ever experienced before. Other cultures like China, or in India, have been around far longer than we have, and if you take some time to learn about them, you’d likely learn why they too convert some of their labor into gold and silver. Probably moreso gold, than silver in those two situations. Lastly, nearly every person in every country, is likely to know what gold is, and associate it with some inherent value.
Interesting interview. As far as the middle class disappearing, that is happening now. The middle class is not buying gold because they are more concerned with feeding their family and meeting general needs. Civil servants are the middle class and that cannot go on for much longer.
It is going to get bulgy boys and girls – food and ammo then gold…
This is a Laughable interview. You are very foolish if you think the Gov. will not confiscate your gold. That is a fact. Your guest needs to explain BOTH sides of economic history Greg.
Great interview. I agree that Maloney has an “agenda” but you could just as easily argue that his business is a result of his personal convictions. Mike is definitely a believer in precious metals.
One point regarding the seemingly contradictory nature of pointing out the worthlessness of fiat money, yet then throwing out (seemingly) pie-in-the-sky fiat money “projections” as proof of how “valuable” PM’s are(i.e., if fiat is supposedly so “worthless”, why do we even _care_ if it goes to $10,000 or even higher — and for the record, I would imagine that any price above about $4000 would probably be indicative of hyper- or at least very high inflation, which makes the fiat:PM comparison spurious anyway.) Mike has been very consistent since I have been following him that there will come a point when one will trade precious-metal hard assets for other hard assets (namely farmland or real estate) that will be proportionately _undervalued_ at the same time that PM’s are _overvalued_. This makes sense, as I would imagine that real estate will experience deflationary pressures even during a time of very high inflation, as deflation will most likely affect things that generally take credit to buy (e.g., real estate) whereas inflation will moreso affect basic consumer staples and food (i.e., things that people buy on a day-to-day basis that do not require credit.)
I pretty sure Mike got to start dealing in gold and silver long after he started to accumulate said metals as an investor. Wouldn’t anyone who has Mike’s ‘savvy’ do exactly the same thing? It’s a no brainer as far as I’m concerned.
I lived in Utah for a long time, and know a little about the chain of events that started in 1985-
1986, when the copper miners went on strike.
Anaconda Copper at Carr Fork , on the western slope of the Oqquir Mountains, is
directly across the ridge from Kennecott Copper, and both companies locked out the striking miners.
Then they spent about half a billion $ completely modernizing the Anaconda mine into a ‘DEEP SHAFT COPPER MINE”…..I don’t think that there are too many of those, so what was the real target?
Gold, of course, and they hit it big. So big that Kennecott bought Anaconda and spent about $1.5 bil (when a billion was still a rarely mentioned amount) to redo their smelter (and upped production 10x, and cut jobs by 75%). Then Exxon bought Kennecott, and sold it to BP, which
promptly sold it to a new entity, Rio Tinto…which still owns it.
When the new super mine at Carr Fork was demolished, after operating for about a year,
I bought some of the virtually new steel from the three bin crusher;and ended up walking around to see the site. I met an insider that witnessed the whole thing, by the name of Mike Kallas, who had been the “Head Blaster” for Kennecott for 35 years. He was sitting in the core sample warehouse, and overseeing the demolition. When I asked him about the extensive ore samples that were in endless racks as far as I could see, in the Walmart sized building; he described the Carr Fork mine as the “largest known high grade ore body on the planet”; assaying out to “6-7 oz/ton, gold.
He said that the deposit was 200 yards in diameter, and went “as far as they have drilled”. the record is there in the samples, which were at the site when I saw them.
That mine has been shutdown for over 20 years, and all of the new equipment was demolished, except for the 330’ high concrete Head Frame, and the elevators that go down to -7000’. that is the big hidden secret that makes Kennecott so important to the Big Oil people that rotate through the RIO board…Mr. Skinner was president of BP before he was Chairman of RIO.
There was a big story in the Wall Street Journal a few years ago about a “hostile takeover”of RIO by BHP when ACH (those wise Chinese Billionaires) tried to get a share of the Kennecott Production for $20 Billion; and were turned down.
RIO and BHP are the left and right hands of the Oil Barons, who can manipulate the price of copper easily, so the low price was quickly run up to avert the “hostile takeover”, and keep the ownership in the “right hands”.
My question is: What is RIO doing with the gold that is shipped out of the country everyday as “by product” (at the same time that they built the new Carr Fork mine, they spent $1.5 Billion to rework the Kennecot Smelter, which increased output by about 100% cut the work force by 75%, and recovered a lot more “by products”, probably in the range of 500 lbs of gold/day, and who knows how much platinum and other exotics)…just think of how that resource could alter our present Fed operations…if we could get ownership of that lode for the common good…
For the last 5 years I have been telling people I know that we are going to have a crash in the US dollar and I think it will be before the end of 2015. We have nothing to stand behind the dollar and stocks and bonds will not be worth any thing. Yesterday the Ukraine President sold his country out to Russia our President is and the government of this country have sold us out a long time ago. The President we have now talks a good talk but he is not smart enough to get us out of the mess we are in now. If you want to have any thing in the future you need to open your eyes and buy something that will be worth something when we get through the mess we are in now and the mess that will come in the months to come.
Mike Maloney is a good head. I understand that he holds a degree in Engineering which increases his credibility in my opinion.