So were talking to mark malloch about this and mark i want to ask you gold as gong supernova again and its one of the best performing assets of 2020 so far how high does this go and is the price of gold an indictment of the front cover of the economist magazine free money. Yeah well the real question probably is not how high is gold going but holo its the dollar and all of the fear currency is falling and thats i think what were seeing in these this fall has been accelerating recently as you said and. To the moon i think its got a nice comparison for you here i mean weve saw this billions and actually trillions of money printing recently in the small calculation so the fed expanded the Balance Sheet by 3 trillion within a very short time recently so what is 3 trillion 1. 03 trillion dollars if you make a staple of 1. 00 coin this is a mind boggling staple of 33000700. 00. 1000 miles and this is a chilly. 20 light seconds high so this is actually several times the distance to the moon and this was just created out 2 of nothing within a few weeks and thats i think the real problem which we are facing and and people are waking up to this problem and i think thats a very interesting time when good analogy there with the staples and all that stuff its amazing when you put these graphics and you look at them how really incredible trillions and trillions of dollars as now of course gold is making new all time highs against just about every other currency in the world except the dollar now its made a new u. S. Dollar high and as you point out its an indictment if you have money for you have money is really crashing against against gault now Going Forward you know does that mean in inflation or deflation right this is weird topic because people have different definitions for these 2 words and it usually goes in june interesting conversation and but what it whats your take on it mark my army accent already takes it away and im austrian and im also a western in the economic sense of terms and the Austrian School of economics defines inflation this this. Is an increase of the money supply if im pick money supply if you talk about Price Inflation len we again have to specify what Price Inflation are we talking about are we talking about asset Price Inflation are we talking about consumer Price Inflation and so on well i mean this duty is inflation i agree to do that different issue and apparently we have seen price deflation which is usually what people refer to when they call the focus of the inflation or Consumer Price deflation we have seen apparently but if you ask me i really do not see it im sorry so that list. The east side of their plan take with a few weeks perhaps you have a few prices went low a little bit but if you go into the supermarket groceries in my view are just going to on the rich and thats is up so inflation is already creeping up even in the and the Consumer Price level and i think theres really no other way out if you want to try to read it develop these that bucks then you just have to reflate reflate then that sooner or later this Price Inflation will get much more severe said Goldman Sachs even just came out and this summer this in july and they mentioned that the u. S. Dollars role as a reserve currency could be you know addicts and do you agree with us and what exactly happens when it ends as the u. S. Dollar reserve currency weve been writing about this topic for years now in gold we trust report i think this is a gradual pope process which has been ongoing this what we are calling the doris ational of the a lot of other people call it the dolorous ation and then this is a process and it could could have been gradually gradually and then suddenly basically but i dont think that that things will change so soon i mean we have the psystar of president s of the of the british pound which was the reserve currency for for quite a while and and this status really also didnt didnt change overnight i mean the whole infrastructure is here to do International Trade with with the list but still i mean the Central Banks over the around the world are increasing their gold supplies and stocks and thats happening for a reason so they are preparing for a change and it could have been more epithelium to accelerate also but i wouldnt i wouldnt go. Im appalled with this topic for from now but thats a topic for this decade that i would say so yes mark souder dollars a should definitely a theme oh the next decade and the currency great around the world and central bankers around the world are all kind of scrambling to adjust to a new world order i guess you could say oh over there in russia the Russian Central Bank alvira believe not shes the head of the russian Central Banks you converted us dollar reserves into 25 heres the 520 tons of gold in the last 3 years alone will history see her as the Charles De Gaulle of central bankers justice france managed to get 300000000 worth of gold before the us shut the gold window in 1971 so too will russia be the last central bank to have stacked goal before it became unavailable at any price mark well i think thats a quite an interesting in the elegy you bring up. I dont think its quite comparable though because you really have this cold war situation when when the cold was there so you had the west and within the west france which was challenging the us a little bit. And right now you really have a different situation my view you have the u. S. As a skill political make power and it is being challenged by it but more than one state and also within within the perhaps the west an alliance this is happening if you look at the cold reception germany recreate recreate to their results. Some years ago but also china obviously is doing this in the in the large scale so so it is really looking as if we would be going into mum multipolar world but yes russia is obviously very elementary in this development and the russian policy on gold has been very consistent and they. Specing gold and the probably know why that definitely have the strategy and theyre in my view theyre doing a very smart move preparing for this move to colo google or the somebody did point out to us i believe it was josh crumb who used to be at Goldman Sachs as one and they are Commodities Task so he did mention that what russia you could clearly see was doing was looking out the Oil Gold Ratio the Gold Oil Ratio and stockpiling gold when you know it only took 17 barrels of oil to buy. Actually one ounce of gold but 700 barrels of oil and now its Something Like 40 or 50 so theyve stopped so you can see them playing that energy versus real money arbitrage or trading some commodity for commodity money right thats also a group quite i mean there are quite a few analysts who are watching this story or it ratio we also featured in all report well i think i think always do obviously on the key is the number one commodity when it comes to consumption its the biggest commodity by far in terms of markets bail you out and all that so its hugely important from a cheap political point a few so so this go Gold Oil Ratio is something i think which one should look at and i think josh could have a point there. As you correctly mentioned russia stop their purchases of called halston perhaps so that may really be the reason i agree with judge mark to cover the gold market extensively here report is widely read as kind of the Industry Standard i would say so youve got your ear to the ground let me ask you what about peak gold the site there really that weve hit a narrow a time now in gold mining where were kind of running out of gold you know that of south africa theyve actually getting so far deep into the. Earths crust there hitting the lava right there suspect they cant going deeper can you give me an update on that well people are always comes up when the price goes up and i think its a new and interesting story i mean yes obviously this planet is finite so so there are a finite numbers of gold at times on this planet. But still. I really dont subscribe to to peak gold at the anytime soon because this is also i think proven by the constant stock to flow ratio which has been constant for so many many years so the amount of gold would just go out of the ground every year is very concept and to see regret regardless of the Price Development so people really get more and more efficient in looking for gold and searching for gold but they also call it over supply the market because because its just this magical thing a poke gold it has the most constant stock to flow ratio and the high the stock the freight through its low ratio in the material well at least. And thats why its such an interesting story about whether you and the 2nd half will talk about hyper big queen as a shannon the stock inflow ratio in an bitcoin and how bitcoin might position itself in a post dollar world but you know follow up on this last few minutes here in this 1st segment here i want to ask you about that asteroids everybody keeps on talking about the Asteroid Belt and how theres all this gold in there and you know every single multibillionaire in america what thats jeff bezos or eli musk is trying to get into outer space do you think that is actually ever a genuine risk that we could have this huge supply of a gold made the asteroid well i mean ever this is obviously a strong case of know about very far into the future but but for the time being i really think this is always a overblown this as being a potential risk fulfill the price of gold that we suddenly stop. To get gold from out of space i really do not subscribe to the theory this actually really reminds me a little bit of the story that one actually can also extract some pots of gold from the senior from the oceans and this also comes up from client times it was already 100 years ago off the gemini of last will one people said now we can we can perhaps find that golden in the oceans and 100 years later were still not able to do this in a feasible manner so i think that mining is nothing which will come in the next well next time marvelling were going to take i start break and come back and talk to you some more mark malloch of incremental gault hyper big going to zation or trying to get stuff coming your way go away. As the us economy was booming during numbers of people will need us. You can work 40 hours in a week and still not have enough to get housing everybody believes america still is the land of opportunity the reality of it is that were not financially equality and im not going to floatable for a living minimum wage many people neutralise the bill thats been a problem with the city and always turn their backs on the cold or stay way out almost all of the food if there is no answer because yes that requires resources the most vulnerable are abandoned on the streets to become the invisible comes. The sudden and illegal takeover of the government by a small group. Rather than the revolutionaries all soldiers of the small group the operation when you have a tiny people who have all the power you have some means to make sure the rest of us dont. Get together and take it back. Please or sacrifice some. Places that capitalism exploited and destroyed for profit and left behind misery poverty environmental devastation and so you see things like Voter Suppression building more prisons you seem gerrymander. Democratic practices. In that world. This. Question of the. Welcome back to kaiser apart summer. And so back to stacy and our gas mark valley over there from incremental they put out an incredible report we should check it out if you can now mark you are a gold guy who also likes bitcoin and thats unusual because a lot of the gold folks dont like to climb but you do so 1st can you explain why you seem to go against some of the gold bugs and youd like bitcoin can you just describe your your journey into becoming a big point fan yeah thats absolutely correct so as you mentioned weve been looking at gold very intensively fought for many use. We are writing a report on gold and for this report we do extensive preparations Extensive Research we basically cover all the news which was happening during one year and and and therefore we always are looking at what is happening on the monetary in the Monetary System and we therefore also discovered bitcoin pretty early on we i think got it conceptually pretty early because we knew the stock to flow ratio i mean back then they actually did nobody was talking about the stock to flow ratio we featured it you know report i think the 1st time in 2011 also. So thats why we knew what bitcoin was trying to achieve and is probably going to achieve at the end of the day it is the attempt of creating deflationary Monetary System in my view and thats something very interesting and also from the point of view of investments lets something very interesting if you find such thing and it actually. Manifests then and then its a huge. Huge lee huge. Investment which which can make a lot of money and therefore weve been following youve been investing and weve been also know. Offering Investment Solutions for professional investors and thats a very interesting time for us as well therefore some marked yeah youve been contrarian sense 2011 and you take a commonsense approach you look at in terms of stock to flow which is a great way to look at it and you have migrated easily from gold to bet coin and theres another dimension to this which is that also fits into an Austrian School of economics once again the gold bugs that that are critical of bitcoin identify themselves as Austrian School economists and yet they dont identify bitcoin it seems like an oxymoron are some kind of separation there but you see the connection so what is the connection between and the austrians call well i think because its very austrian i mean even the supreme you wrote in a paper i think 2012 was that that bitcoin has its roots in the Austrian School of economics high you wrote the part in national a sation of card seized in the seventys i think that probably did inspire the create the creators of the question to to to start this whole thing. And also there were a way of wealth gold a way a way off the stock to flow ratio of the code or code all this knowledge together and combine that with with a very interesting take you can all that and a great incentive structure but anyway i think its crucial to to think bitcoin as a complement to gold i really i really want to bring up the message its on the one hand it is a competitor but on the other hand its very complimentary and again from an investment point of view combining these 2 is so attractive one can really make a very end. Misting risk adjusted returns with with a combination of both but i think also gold has a play a role to play if for coyness why i think the problem of can still is the volatility and the volatility could actually be dampened if one basically if many investors basically arbitrage to gold big question re sure so if the big question rises too fast they perhaps a little of the big question and go back into gold and vice versa so that could actually be something which also perhaps one day Even Central Bank just to put at least investors could start doing that it makes a great investment and it also helps them the whole the till see saw i really would like to put out this kind of world do you. Like to hear what what you guys think about that for instance play i think thats pretty genius but i do want to talk further about volatility and lets go to the poor mans gold silver do you see self are falling all them decline higher in this post dollar world war and this whole process of the post dollar world starting to happen well super silver is a very interesting one. As kind of a gold bug i mean to say yes the silver is great and its a great investment it is but i really to some extent see. The bitcoin as a little bit of a competitor to sill books i dont think that super will regain a real monetary role in a mall in in the world so so for for that point a few i think the upside is is not so great for instance as in bitcoin still as you said super is the poor mans gold and during potentially inflationary environment the upside still is very interesting but just the case for super as a monetary metal i think has weakened during the during the last. Kate since the rise of lets be quite frank great points there sort of medicate the risk or the volatility of bad coin you can do some arbitrage between bitcoin and gold and the stock to flow ratio for sober is probably not as attractive as it once was and maybe would be deescalating in terms of a monetary model particularly with a competitor like big point now. Kind of nipping at its heels and. Kind of looking at these from the big picture mark you know weve been following gold youve been following gold for quite a number of years now weve seen 2 major legs of a bull market weve been waiting for the 3rd leg which is typically the most explosive leg up are we now entering the 3rd leg of this bull on the gold market well it certainly does look like it because i mean all fundamentals focal just look really brilliant i mean its got this huge debt load youve got this increasing the insane amount of money printing so and then you have a chart which technically really looks good i think i mean. We saw all time highs recently and now gold a speck in the media so i think you put it exactly right this part of the bull market is to keep the strongest and thats what we are expecting in this day kate so do you knowing what we trust report we talk a lot of up to the potential developments within this decade and the think this ticket will be very good well for for Gold Investors indeed the other big story of 2020 so far has been the rapid escalation and tension with china how much do you think that sort of tension is a result of like its hard to determine cause and effect which came 1st the tension or the dollar crisis like was that built into that relationship. It has a part in there a theme so. I think thats most. Mostly used as a new spike to perhaps talk about very short Term Development of gold i really think that the long term that that the fundamental problem is that unsustainability of this Monetary System of the stat based Monetary System which needs to go deeper and deeper into debt and needs to print more money and so its built in to the system that it actually has. Limited lifespan and were ending the lifespan so thats i think that the core problem what were looking at some arc around the last time we spoke with you know i believe some Major Economic monetary history has been made and i need to get your take on it and thats the creation of negative Interest Rates so a negative Interest Rates i think believe it may have started in japan and europe people are saying it may end up in the United States with the World Reserve currency its never been done before in 5000 years time negative Interest Rates its an incredible phenomenon and you talk to different economists and the tie in differently what it means what what whats your take on negative Interest Rates mark. Yeah thats something fascinating i mean its obviously contrary to to all human intuitive. Reason that because i mean negative Interest Rates just doesnt make sense on the level if you ask me i ask in the konami economist and you get a very different audience of probably i think. If negative Interest Rates do come to the u. S. Then thats probably the final case of this too to the Research States because i mean thats the perfect incentive to to really grow up your reserves if you are International Central bank and then its obviously full for gold and also big question that that will be the there. Launching of the. Bull market so if they want to do it yeah go for it but it wont so the problems and it will make gold much more attractive and i think it will reduce the lifespan of this field money system ok so youre an austrian economist in the last few moments of this Summer Solutions offer some solutions to the ordinary investor out there because austrian economics really deals with currency collapse what happens during that time so how can the ordinary person maybe they only have a 1000 euros to their name like how did they start or start to prepare for this. Yeah well thats a very good question the me nothing. Saving heart my money which is not inflate support on a regular basis can be actually achieved was also very small amounts of money i mean there for we mentioned super is perhaps one answer but also suppose shes another answer so you can really you can really stack these kind of things. You just need to make sure that you dont have 2 small denominations when it comes to gold and silver because the prices are really not good for small terminations there you have a vantage for bitcoin so d if you stacking hard money i think thats thats a very good 1st starting point and you also work on your personal sovereignty so thats also a good thing in my view and ok thats the individual what about on the nation state level what comes afterwards how can big queen help resolve these global trade imbalances that are seemingly a consequence of the at current say. Theyre definitely are i agree. So yes we need a good unit of account which cannot be created by any individual party and then we will also have perhaps belen straight and also balanced budgets which are i think both important components for sound economy for a peaceful economy at the end of the day yeah bitcoin is perhaps the best attempt weve weve had to to to create a Monetary System which is out of scope of any single individual or any group who can actually increase the money supply and do this old trick of inflation. Im im hoping so i mean this this is a perhaps for humanity the chance to to to really take a leap forward and separate money from the states as we separate religion from the state i really think thats the mission we have to achieve to to get that that the next big step forward right mike resolutions for. Kaiser reports Summer Solutions thanks for being on mark. And thats going to do it for this edition of kaiser report Summer Solutions with max and stacy want to thank our guest mark baloch of incremental join to catch us on twitter its kaiser apart and so next time. How can you explain love ive been to 82 countries i did in 12 but i came here and on those 3 days i just filled with hope. And. Sick show. I made my decision to come here because i felt i knew i could build a new life. God decided that this money is no good to be free. My one dream is that all my children d find the same kind of happiness i do. I love my home i love cold weather i like the culture i like the history i like everything about it. I know that. I am. A russian fama. The world is driven by a dream shaped by. No dares thinks. We dare to ask. Joining me every thursday on the alex simon show and ill be speaking to guest of the world of politics Small Business im show business ill see that. Hello from rhode island where i live is where play in the safe during the pandemic and why is the corona Virus Outbreak more severe in the usa then in other developed countries one big reason is fake news its everywhere controversial Sinclair Broadcast Group notorious for dictating conservative content to some 200 t. V. Stations has published and on line interview with a conspiracy theorist who claimed that dr felt she created the corona virus using monkey cells fox news
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