Currency which has been plunging over the past few years and part of the problem is that while Foreign Investors are piling in and driving up then they are higher than had fallen domestic savers Business People and stuff like that theyre piling into gold because theyre very familiar with gold they have a 3000 strong history year history with gold so that is kind of destabilized saying their local currency right well this is the game the Central Banks play with fear money and the gold market so the demand for gold is always there to some degree and the gold bullion banks on the Central Banks they play around with Interest Rates and they owe is get that 3 or 4 percent move up in gold which they then scalp on an almost daily basis they come in and they dump huge short shells or should say short sells into the gold market and they say. The market continuously thats why gold prices been very sluggish its moved up over the years but its very sluggish compare the amount of creation and debt creation but what happens if you lose faith in the central bank utterly like whats happening in turkey people are not going to be interested in playing these games anymore theyre just going to go along goal and if the central bank of turkey collapses theyre willing to accept that risk because number one their gold will skyrocket and number 2 theyre ready for a change and the government there is not the levering the changes that people want so the way to passively resist against the government is to own gold or to own bitcoin so in gold yes as you mention in turkey theyre very very familiar with gold much more so than big but the concept is the same globally people are now taking the same passive resistant approach to rogue Central Banks by plowing in to bitcoin as a form of passive resistance thats see that globally now well you know i talk about this in depth in orange hell podcasts over the weekend on sundays and so we are able to explore it over 2 hours like these sort of issues but these are part of the cycles that are queer are colliding all over the world the 4th turning you see you know its basically americas on track sinked up with the rest of the world now so we have these generational shift that are happening we also have these huge like multisensory geo political cycles happening so i think its just theres a common the common thing is people sense that this is all falling apart they sense that collapse of a big power that happens in nature as well if you know that the alpha lion is starting to weaken a little bit the group can sense it 1st they know when theyre you know when when the big power is declining and i think you see that but you know preston pish who weve spoken to before and here hes a great macroeconomic economist but he also talks a lot about decline and in reference to this bloomberg. Piece about gold he says and now as to the real story bloomberg bequeathing up 218 percent and there are while gold is up 66 percent gold performance in turkey relative to big down 69 percent on the annual basis the turks are wed really tight to gold that something in that culture for a very long time much more so than in america for example so you know however once they start to also shift into bitcoin then you could see a stampede there their imports on gold into turkey were massive like its over 22000000000. 00 so far so you know its soaring there so once they start importing big coin you know were going to see this in all countries the sizes turkey were not picking on turkey but if its going to happen to all countries maybe the United States might have to last but it will happen here its right wont we know for a fact that j. P. Morgan just played a 1000000000 dollar fine for manipulating the gold market yes this is something weve been reporting on for 10 years that they were manipulating and breaking the law and manipulating the gold market they finally paid a fine to that effect so the recent weakness in gold in the past week or so this is the folks like j. P. Morgan and others flooding the market with paper claims on gold sell orders for gold that doesnt exist thats been documented to be true because they desperately dont want people to get ahead of their ability to manipulate the Global Economy using Interest Rates and Central Banks by buying gold but what big coin is is he cant do manipulate because in this way because 1st of all there is no paper market. Like there is in the gold market and even if one develops which is highly unlikely given the amount of catching up bitcoin has to do to catch up to gold we wont see rilya to regain his market in bitcoin to the extent of gold until because it gets to 4 or 500000. 00 per bitcoin but even so the ability for private key holders to pull the rug out from any derivatives ponzi scheme is real and any derivatives trader knows that and theyre not willing to go make a risk on betting on manipulation of bitcoin like they will with gold because they know in the case of gold the amount of fakes so waters is virtually infinite and re hypothecation particularly in the city of london is in fact by definition infinite so this is why because it is the ultimate passive resistance that is the ultimate such a bank killer right well also in the pages of bloomberg this past week was Niall Ferguson who mentioned as well he discussed between and said that this is the future right and he said yes as a hedge against inflation but also about sovereignty and issue of sovereignty so this is going to be really important in these this sort of collision of all these cycles happening is that individual sovereignty will become very important as. The geopolitics might get a little bit lets call it funky right like it might get a little bit more difficult and i think the big point is unique with that is that its very difficult to cross any border from turkey with that 2 and a half kilo bar of you know of gold its east and out you get noticed well let me make this recommendation to countries around the world as this idea of a global reset is being talked about by the i. M. F. They will there will be. Sit down with the g. 20 nations or cheese 7 nations and they will do a Bretton Woods like reset of the Global Economy and theyre going to do it based in large part on gold and gold ownership but i would say this to turkey and to every other current country thats thinking about this when you sit down to the reset table with christine what are you have as much because in your back pocket as possible to give you leverage otherwise youre going to get creamed youre going to walk away from the table massively under on happy maxa still in a pre Christine Legarde to the e. C. B. She said the e. C. B. Concerning the i. M. F. I dont even know we dont like who pays attention anymore right you have big point you dont need to Pay Attention let me revise this to when you sit down at the table for the global reset the new print noise with whoever is running the i. M. F. At the time. If you dont have any bitcoin in your back pocket youre going to be miserable because thats the only stick you have to leverage thats right i mean i think gold will play a part in that as well so there is that gold will play a part in the new Bretton Woods but its coming and its coming soon and 2021 is the 50th anniversary of an all fia world so i think its important i saw a great tweet along the lines i forget who it was probably dan held and he said that you know the dollar is 49 years old the global reserve Dollar Standard thats 49 years old its still an experiment people acts like oh between us experimental and yes it is but its survived 11 years and it gets harder and harder whereas the u. S. Dollar gets softer and softer since its 49 years so you know like 49 years ago 4748 years ago or is 46 years ago 45 years ago you know in that sort of time here you could have a paul volcker who could raise Interest Rates to 20 percent because the. It was still hard and the economy here therefore was still made of Industrial Production and Wealth Creation now 50 years later as of next year were soft we have no more productive capacity we have no industrial capacity and so it we can even raise Interest Rates of on one for is that excellent point i mean the hardness of the dollars reach jello like consistency and its its just not hard at all its. You know hammering some jello to the wall like thats the u. S. Dollar thats everybody thats the great reset as well like theyre trying to peg all these currencies and try to stabilize this global Monetary System and yet gold has been around for 5000 years unlike the dollar which is only 49. 00 almost 50 years old the gold has how thats value for 5000 years because it is an experiment that is looks like its displacing gold and could eat some of its lunch however i dont think it will you know gold is not going the way of the dollar thats for sure not not at all but if you want to leverage at the very recent negotiating table the more because you have the more leverage are going to have that some say well speaking of leverage this is the final bit on this story the reuters analysis of this this turkey has no cure for a gold craze and what theyre saying is that turkish lira stuck between bullish foreigners and bearish locals turkeys lira is caught in a tug of war between Foreign Investors who cheered a big rate rise on government reform promises and locals who remain cautious and are stocking up on golden dollars the lira soward some 12 percent after erdogan replaced the Central Banks chief and finance minister in a shock overhaul earlier this month in the following week foreigners snapped up 5000000000. 00 in turkish assets but then slid back 5 percent this week as turks a local company stepped up to buy 2500000000. 00 and hard currencies that was see. As a discount so youre going to see this sort of tug of war as the great reset as the 4th turning happens as all these sort of shifts and cycles happen and theyre going global because were so hyper globalize and its such a just in time social media connected algorithmic driven world that these sort of things could have huge knock on effects whereas you know this sort of action would have taken months just 50 years ago at the start of the Dollar Standard right the turkish layer is much more volatile than bickley. Theyre turkish lira i mean a Life Experience at death rattle you know pop up little bit here and there but like all theocracies a setting for the theaters the graveyard for currencies get softer coin and gold the harder you know thats the point of this it doesnt matter what current the currency it is at this point once once the trust is gone once to face and that currency and the system is gone its hard to force it back like theres no paul volcker to come to the rescue of the Central Bank System speaking of taking a break were going to take a break and when we come back lots more coming your way. We are segregated only by social class. People also in poverty by 1st place if youre born into a poor family if youre born into a minority family if youre born into a family that only has a single parent that really constrains your life chances people die on average 15 years younger than if youre born into generational poverty. So by every day she you meet your needs and their needs. Your family. Welcome back to the casa report imax guys are trying to go to michael pena pepto port dot com michael welcome back to the kaiser report its always great to be on one of the most Brilliant Minds on wall street congratulations for making executive global d magazines front cover i know it was on the front cover once but they never said that i was one of those troops well while i thought i thank i have to pick why for this the you know its a chance but well get to that a moment 1st of all i want to pick your brain on some bigger topics theyre sad you know and i know that the worlds been printing money out of hand all the Central Banks are deeply in debt and now the i. M. F. Is demanding a new Bretton Woods now what does this mean michael what can we anticipate were going to have to tie the i turns hes to something i believe itll be gold im sure you believe it will be some kind of cryptic currency but the idea that our central bank the central bank that belongs to the worlds reserve currency. Could one time in their lives spend trends 85000000000. 00 a month and we thought that was off the wall now theyre printing 120000000000. 00 their challenge fitting under in 20000000000. 00 if you got each and every month. It is absurd so grab the thinner Central Banks and some fashion. The link one each of gold and you who probably say bitcoin well theres one thing we can do the children families are thats shorter to originally in 1913 to be an emergency lender of last resort and then more earth and evolve into an organization that is now supporting really state stocks trade yuris it. Can sure abandon it and now is even going to be charged with ending racism so we need to fetter the central bank for sure frei because a sams like the central bank has become this all knowing deity and people are going as you point out they want the central bank to fix racism they want the central bank to fix Climate Change they want the central bank to affect inequality and in this has become a cult over there more so than at any time and. You know gold certainly would be that one of the top beneficiaries of this money rampant money printing goal seems to be kind of stuck in a rut at the moment it is this just a pullback before a bigger move whats happening the fact is that gold is real genuine money and it trades at such so what is real money done doesnt like real money that doesnt pay a yield doesnt like rising real Interest Rates and this would still go in fact i want to record talking about a vaccine deadzone that would occur sometime towards the end of the year and id sold my miners and i sold almost all michael now and have 5 percent position in gold or you know after making a good return on it earlier this year. The fact is that your rising religious rates dont do not bode well for a silver and especially go ringback because its real money bitcoin on the other hand is not money in my opinion its a commodity its raised like a commodity it has the volatility aspects of the commodity and its reacting on the same. Functionality as cowperwood or you see was happening in corner cocoa or you can you know some other commodities. It is acting as a store of value and a hedge against the reshaping currency appreciating dollar much more than gold would because as i said gold is money if your money is competing with the odds and is getting a higher Interest Rate then goals going to go down thats exactly whats d he saying because hes acting like a store of value that same to be the prevailing wisdom because when he talked to people like the folks at j. P. Morgan Blackrock Potter Jones now stan truckin miller you know they theyve all started take a possession theyve got in the case Stan Druckenmiller hes got a call physician that hes got a pick Point Possession so the institutional money same so recognize because its value as a store of value and they are talking about inflation and how to cut and Paul Tudor Jones us words because it would be the fastest horse in the race so. You know if rates are rising now that doesnt sound inflationary to me. You know what whats your take on this if Interest Rates are rising it doesnt sound inflationary here in the aca is it supports the dollar and then a rising dollar would be would be deflationary not inflationary well if you look what happened in the seventys and mean you know Interest Rates tend to rise commensurate with inflation ok so this is this is not my is that we have been dry history of who was the what was the Interest Rate on zimbabwe. You know look whats happening in turkey so you know is there a sense or eyes of the it with rising inflation and real Interest Rates or the death knell for gold you know i am led to be you know i would like to be someone who espouses a bit coin and protect her and shes in general i certainly missed this is the 1st initial wave and i missed this next wave which could be a double cup im not sure if it is or isnt yet time to tell. But i will play. I have to understand a fiduciary i have to understand what i own from my clients and i dont understand why big coin has a value per unit close to june 25th aus in dollars i just cant understand why that is i dont understand why gold would be 16. 00 to 18. 00 to 2. 00 down around that price because it takes about 1200. 00 the whole of energy in capital to pull their ounce of gold from the ground. If it takes 5 or 6000. 00 of energy or the energy to create a big train unit then shouldnt it be closer to 10000. 00 or 12000. 00 not 20 very hard. d you know what i find it very hard to justify the price of a point where it is right now and also one of the characteristics of real money is that its indestructible in that its limited in supply so god only you know the certain amount of stardust exploded and treated a you and put it in the ground its very hard to mine an ounce of gold there in the ground there are thousands upon thousands of cryptic currencies which all perform their commodities that all perform the same basic function they can move a coin in your private key which matches up with the public a who is your coin along the block chain and the block change transaction is immutable and its essential ised and its anonymous as far as i know all the currencies reform pretty much that same primary function. Is in my mind it is not limited in supply it itself forks or splits like getting much more often so i dont understand what makes it so valuable because you can create new critic current cs at will takes just a matter of hours and they dont lose everything existing unit a big romantic or right and none of them have gained any market share at all of the market of the others dont even equal 2 percent of the clients market and terms of the computational resources that go into decline but i you know i wanted to get your thoughts on how Going Forward this is going to play out because if in fact these major banks and Money Managers decide that they love big quine an. They suddenly have been confiscated well because and heres a funny thing with Michael Saylor over at micro strategy they had a choice they can either buy back their own stock and enhance their earnings that way and then that with that they are banking on the continuation of the cheap money at the fed thats what the thats what that program is all about for all these companies but his view is that inflations you know going to become is really here for real and these bank stock buyback schemes are going to collapse like i. B. M. Brought back 130000000000 in stock to stocks 110000000000 right its diminishing returns. So you know this scenario is this one of these Companies Just decide on mass that theyre going to put trillions of dollars in a pickle and its completely off its its on confiscated will the government cant do anything about it they cant get it they can effect of late secede from the Banking System and the Banking System therefore could face a somewhat existential threat in this regard and as a fiduciary and a year your money manager do you feel that this is when youre looking at stocks and youre doing stock picks by the way micro strategy stock is up 100 percent since they bought the coin when you when you do your for do your Due Diligence is this a factor that you would weigh ense year yeah i know you have a very involved screening process for your for your picks your stock picks do you at some point include whats happening on the edges of these markets now with this the this move into because im not concerned max because that innocent until you mention the 1st question to me what separates big when i have to do more research understand what chip rates make when the rest of the credit card sees what makes it unique i dont stand that well there is some utility to somebody stop the cars buy them very sympathetic before you lay it mailbag you know when understand that trip becomes all about im very empathetic to what theyre trying to create i mean theyre actually its a revolution against fionn turn cheese and i completely agree with that and by the way if you look at some of the utility it especially with bitcoin is a jury hyper inflationary economies when you just have to get your money out of a certain country and that countrys currency because were just very well so maybe its for sharing whats going on with our Federal Reserve system again were talking about a 120000000000. 00 of of money every month right there every night my question but to follow up on my question a lot of it so i understand your your your view is what it is but im what im saying is. The market is down coming together in an interesting way where huge corporations are dedicated portions of their Balance Sheet cash to this new asset because so im just saying as a fiduciary when youre so screening stocks and picking stocks its a line item on your analysis at some point its gotten that big i mean when we 1st Start Talking about it it wasnt as big as it is today but its quickly becoming the go to asset for to actually trillions of dollars around the world doesnt that become something you have to factor into your analysis whether you like it or not you still have to put it into your Analytical Framework where you know like i said i deem big coin as a commodity and as a new sherry isnt not something i have to go so. I dont own cobalt i dont have to own you know tools i dont have to own anything i have to where i have to do is put my clients interests before my own but your companies or you invest in own pick for example companies i dont micro strategy now its an Pension Funds all over the world and you might be an investor in one of these companies therefore you would be fit responsible to know that and weve got about 60 seconds left so my point is that even though your view on whatever it is the market is such that as a fiduciary you have an obligation to a lets say refresh your Due Diligence so that its more current to prevailing circumstances and i would i would recommend Michael Saylor stocks because he talks on your level you guys you know you should really get into what he said hey michael im always willing to learn new things and im always willing to admit if i have been wrong so yes i will do some even more Due Diligence just for you very good michael thanks so much for being on the kaiser report. Well. Then i was going to do it for this edition of the kaiser report with me max kaiser and stacy i would like to thank our guest michael. Porte dot com so next time to. Come. On. Some of the. Things become more extreme than we teach to right when this is like breaking norms not really in a good way. Is the. Right. One the reality of. The. Be cheap but then you improve all that come through so lets ideas theyre right its going you are scum he said if you ever look to the past. Discomfort. This is what we dont understand how we are in such a country. The nurses are the ones at the same time. Noticing. The. Similar. One. The minutes of on board not they got to meet leave again with the phone the computer with the plane. Come back to the 3 story you have to see. The best. You. Believe. Russia says its kind of a job will cost less than 10. 00 put down to size at present sputnik be to you one member state. Full of people all killed all draw a large explosion not a wall street Wastewater Treatment plant in the west of england. On record saying so see and im stumped meetings on leaks by project very top its the conservative group claims the tape show the t. V. News network is biased against president trump. Bring me the stories that matter all day every day this is all to
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