These are very very very painful moves And this is a huge one one of the things That happened 100 of the time around Currency regime chefs is war and that's Why it's so critical to be prepared Things are happening that we can't see Gonna either be a hyper inflationary or Hyper deflationary so there's a lot of Pain ahead if you're not paying Attention and you're not prepared eighty Percent of the population ends up in Abject poverty the last thing Central Bankers want you to do is buy gold like If they were going to do an overnight Reset tonight it would be easily in Excess of fifteen thousand dollars an Ounce everything has a life cycle so why Should monetary systems be any different Where we are today is quite simply at The very end of this currency's life Cycle it's done it's game over [Applause] Hi folks Canadian prepper here it's an Honor today to have on the channel Lynette Zhang who's a chief Market Analyst at itm trading she's been a Banker and sock broker and studied world Currency since 1987 a very important year in the Markets and she has a very popular YouTube channel I'd encourage you guys To go check it out after this interview And was recently hosted on Kitco news Among other very prominent YouTube
Channels and media agencies in the Financial space now one of the reasons Why I wanted to have you on today is That you have a knack for explaining Very complex Economic ideas in very simple terms that People can understand and I know we were Talking just before we started here About the fact that you have a bit of a Preparedness background as well that's In part motivated by your awareness of What's going on in the financial system So I'm hoping today that you can get Give my listeners maybe just an Introduction to how exactly are our Financial system works how it's Structured and why it's so flawed at the Core because I think many people Intuitively get the sense that something Isn't quite right it's serendipitous That we have you on during what may be a Black Swan week in 2023 here with Respect to what's going on in the banks What's going on with this banking crisis And and how is it a sign of a sick Financial system We've you've asked me a bunch of Different questions inside of this first Of all I'm going to say thank you for Having me Nate and I would and I would Say Um too that people need to understand That things are made intentionally Complex because then what happens most
People go wow I can't understand this But they certainly must know what's Going on they do that so that you don't Question them but in order to really Understand what's going on I think you Have to strip everything out and go Right to the basics which is what is Money And money originally was pitched to Everybody as as a way for the society to Specialize right so you can have a Banker you can have a farmer you can Have a lawyer Etc And they've tried lots and lots of Different things as money but only gold Meets all of the criteria so the Original criteria is as a tool of Measure A tool of barter a short-term store of Value to ensure that you are fairly paid For your labor and a long-term store of Value so that no matter when you use That money you are still being fairly Paid for your labor Pretty simple right but it created two Challenges one for governments and one For corporations for governments they Wanted to tax you but when we were on a Gold and silver standard if they did That you'd know about it and you had the Ability as as a population you had the Ability to walk in with this ten dollar Gold certificate walk if you didn't like What the government was doing you'd walk
Into the bank with this and you'd walk Out with this well this is actually a Twenty dollar gold coin so be half the Size of this right therefore the public Had the most control because it would Restrict how much debt the government Could issue so you the citizen could Pull it out of the system For they won't so the government wanted A way to tax you Without you knowing about it and not Having to go through legislation not Having to make it obvious Where corporations they wanted to pay You less but hey if you're used to Getting 10 bucks an hour you're not Going to accept five however if you Could make that ten dollars spend like Five well voila then you didn't get any Pushback so they transitioned Us in 1913 Into What's called the Fiat money system Fiat means by decree so what that Actually is is Government-backed government-backed System and inflation was intentionally Built into the system So for governments now they have that Almost invisible well right now it's not Invisible but almost invisible inflation Tax because whoever's closest to the Money and I know you had your gun Whoever's closest to the money and gets It first has it when it has the most Value
For corporations the same thing is true And corporations actually even get the Money before the government gets the Money so central banks then corporations Like banks are corporations and then Government So for corporations that inflation uh And for governments too but it creates What's called nominal confusion so if You had a twenty dollar bill 20 years Ago and you have a twenty dollar bill Today Nominally it is exactly the same but What it would buy you 20 years ago heck Would it would buy you six months ago And what advise you today is vastly Different So people don't understand what's Happening and when you're talking about Price stability which the central banks Talk about all the time For the normal person you think well That's they want the prices just to stay The same no no no no no no price Stability is the lowest level of Inflation where you the individual do Not ask for more money for your labor Right right that is price stability to Central banks So and and this whole system has been What has enabled wealth and income and Equality Particularly since 1971 when we Nixon Removed the Last Vestige of gold
Creating responsibility in the monetary System and it wasn't fully gold back it Was just you know quasi gold back So where we are today Like everything else there is a life Cycle for example I'm 68 I'm at a Certain point in my life cycle my Granddaughter just turned nine or eight One of those anyway she's at a much Different part in her life cycle than I Am and I don't care what you're looking At even the Earth everything has a life Cycle so why should monetary systems be Any different And they may start out stable but over Time you know especially when there are No restrictions I mean at least when we Were on the gold standard and you didn't Like it you'd walk in with this walk out With that and governments had to be more Fiscally responsible But today they don't and you know They're this is also really simple okay There is one way to fight inflation and That's with deflation there's one way to Fight deflation and that's with Inflation I remember in the 80s when I Was a stockbroker and I was there on Black Monday by the way as a new stock Broker best day I could have ever been In the business Um it was it was an incredible day it Made my career but you know you see the Transition I remember the discussion of
Globalization so corporations could go Outside of the borders and get cheaper Labor and we went into a period a long Period of deflation and so to combat That central banks wanted to create Inflation and they kept lowering after They ramped the interest rates up to Actually 21 and a half percent and per Day in back in the 80s they have Subsequently every time we will go into A recession dropped interest rates Typically five and a half to five and Three quarters percent and what did that Do that inspired borrowing And spending and creating new money And every time they do that the money That's already out there loses more Value so where we are today is quite Simply at the very end of this Currency's life cycle and the way that You as an individual know that Is because there are really two key Tools that central banks have they have Uh they have interest rate that's Probably the single most important tool That they have and that's basically been Anchored at zero since 2008 and we can See every time this is the second time The central bank has it made in this Country in this country has made an Attempt to raise interest rates but Globally every single time no exception Every single time Central Bankers have Attempted to raise rates above the zero
Something has broken Right because the whole system has Gotten used to free money And so when we're looking at what Happened with SBB Bank They bought a lot of long bonds and at Zero interest rate right and and I Always use this for this is interest Rates and this is Bond principles right So what have the central banks done They've been lowering interest rates and When you lower the interest rates the Market value of the bonds or the debt Instruments that you hold goes up right So that can hide a lot of what's Happening but now that they're trying to Reverse it when you raise interest rates What happens to the principal value of The bonds they go down So with svb bank they were sitting on a Lot of treasuries which is the Foundation of the global system And it's supposed to be the safest thing That you could do and it's not and Everybody should now know that I hope But when they started raising interest Rates and then there were there was a uh Started out as a mini run on the bank They had to liquidate these bonds that Were under water so they had to sell Them at a loss And 48 hours later boom gone So we have a what they call like a Fractional Reserve banking system
Here no no I don't have your money here And it's in Bill's house and fridge House hey what the hell are you doing my Money in your house Fred How much actual money is there I mean There was a time when it was it like 10 You had to have 10 percent in the vault Of whatever you were lending out where Are we at in terms of That right now would you say Well there's no reserve requirement in This country anymore they eliminated That so over time what they've done is They've removed more and more of those Limitations and indeed in 95 in this Country I mean first of all during under President Clinton they allowed Investment risk-taking Banks to merge With deposit taking Banks now those had Been separated through the Glass-steagall ACT since 33. so yeah What did we need that for because 1929 I Mean that's a whole other story and I Definitely consider myself an expert on That period of time but just to stay Current so they eliminated that and you Saw a lot of mergers between investment Banks and and uh deposit taking Banks And then in 95 they set up sweep Accounts so when you make a deposit into Your bank account that money even though Your perception is that it's yours no no No you have loaned it to the bank and They have the right to sweep it into
Sub-accounts in their name and then they Can do whatever they want with it and so Um that's that's one big piece it gave The banks a whole lot of money to work With and when you sweep it you don't Have to hold reserves so we're still Technically in a fractional Reserve uh Banking system but the other part of That is the allowance of Leverage and Derivatives you brought up derivatives Derivatives have been around for a long Time I mean if I'm a farmer and it's January and my crop isn't going to come To Market until September and I don't Know what the weather is going to do so I don't know am I going to have a good Crop a bad crop Etc I would buy a Futures Contract if you're going to sell In the future Buy futures So I would buy a Futures Contract as an Insurance policy so that when I got to September if I had a great crop okay it Was just the cost of doing business no Big deal it's an insurance policy if However I had a bad crop then that Policy would pay me off so I could live To plant another season so they've been Around forever and there there's Legitimate use for them But in the 90s they started turning Those uh those contracts into Speculative contracts and the first Derivative implosion was with long-term
Capital Management which I'm sure you Know in 98. and instead of then putting In oversight and that almost took the Whole global system down but Wall Street And the bay and the uh Wall Street and The FEDS went in and bailed that out so Most people didn't even know that that Even happened because we've got to keep It out of the public eye And then in 2000 so they tried to Brooksley Born tried to put oversight in There but you know Fed chair pal um not Powell at the time it was Alan Greenspan And Larry Summers was part of this and Reuben was part of it they said no no no The banks don't need oversight they'll Do it themselves and so what derivatives Really are are large leveraged bet many Times like a thousand times leverage or Or more and it's just they move based on The price action of the underlying Interest rates or stocks or bonds or Real estate or what color the sky is I Mean there's a whole bunch of derivative Products that are out there and there And the Legacy derivatives particularly So those derivatives that were created Before 2008 Are typically between two entities so There's no market for them and they're Still floating out there you just have To keep paying the fees so that they Don't settle but I think that we are Very close to the I mean what has to be
Happening right now since most of the Derivatives that we know of are interest Rate related in a rising interest rate Environment but it's a very opaque Market I mean things are happening that We can't see it's like we see svb well That's the tip of the iceberg The real truth of what's happening is Well below the surface That's why well my whole Mantra is Food Water Energy security barter ability Wealth preservation community and Shelter because these are the things That we need to sustain a reasonable Standard of living Okay we're gonna talk a little bit about Cbc's in a minute but if you could maybe Elaborate a bit on the treasury crisis If we can call it that right now because It appears as though the FED doesn't Have many options if as it's trying to Raise interest rates it's also playing The other side of the table with this New system where it's Effectively backstopping the banks which Some people are are chalking up to be Another elaborate form of QE so how do You ever get the the treasury yield back Up in this type of environment or is it Or is this just the end of the system is This That's it And we have to go into the new system And and I mean you can't get a backup
Every time they're trying because Because the the markets are addicted to Free money And I I have contended this and I will Say this probably to my dying breath the System actually died in 2008 and then it Just went on life support so they could Create the new system to shift us into And they have to get you used to it Because this transition has to seem as Normal as possible So I mean let me ask you a question Are things the way they are the way they Were prior to 2008. you know it it's Hard to say because I was in my 20s and I was probably doing a lot of stuff I Shouldn't have been doing so I wasn't Really paying attention to the markets But you know things were you know life Was a little more challenging in some Ways of course technology came in and uh But I think like you're saying they're They're hiding a lot of the the Inflation a lot better than perhaps they Used to you know we we have all this Technology and we we feel more connected But really when you when you crunch the Numbers at the end of the day you're Working longer for Less the food has Less nutrient value you know you're it Seems like uh things are just moving so Fast and you know everybody's just Trying to keep up with things so I would Say that yeah I mean pre-2008
Life was a little bit more challenging But it was also simpler so I don't know What's your take on that Pre-2008 well I think it was Um when in 2008 is when the system died And that's when we went into that that Morphine drip of free money so that's Probably what made it seem easier right Because that is how they do it right They they give you something if you Think about 1913 and then what did we Have we had the Roaring Twenties where There was a whole lot of credit Available for the first time there was Credit available to the masses the Markets were going up the real estate Market was going up the bond market was Going up right and then as the Population started to participate in it Then boom they shut that credit window When quite honestly the industrialists The people that understood were selling Out uh kind of like Becker sold the Whole bunch of stock on February 27th The head of SBB tank I mean hmm you Think he might have known something I Don't know you know maybe he did maybe He didn't I'll let all your viewers kind of Determine that But Um yeah so free money And also in the 80s remember the greedy 80s I mean I know you're really young
But you kind of heard you know the Wolf Of Wall Street and Um what's his name Michael Douglas Played that character greed is good you Know Gekko uh well sure we transitioned From at least a quasi-goldback system And prior to the 70s Into a pure debt based system in the 80s And you know I'm I'm very happy to be as Old as I am because I was old enough to Not really understand what was happening Then but I know what it smelled like Tasted like felt like I was old enough That I have those memories so it it's a Good thing and now host 2008 I mean I've watched all those Changes happen and then post 2008 with The free money life has gotten a whole Lot more expensive than it was prior to 2008. and I think more importantly the System has become a lot more fragile as We're seeing now so they're saying that There's 620 billion in unrealized losses Uh as a result of these diminished Treasuries the FED is pledging I think 25 billion to help backstop the market I'm not a mathematician I'm not an Economist Something about those numbers don't Particularly add up but uh you know Obviously there's the FDIC who's going To be ensuring some of that let's talk About that let's talk about that yeah Let's talk about that okay because you
Can go in and pull for those that that Want to do this the diff dif report Which is the fund that's set up to Backstop insured deposits and the most Current one takes us through December of 22 and they had about 128 billion Dollars in in that fund but that was Only just a teeny bit more than one Penny for every insured dollar now They're saying you don't have to worry About it because we have the diff fund And the diff fund is going to backstop All deposits insured and uninsured And it's not going to come from the Taxpayers this is what they're telling Us not going to come from the taxpayers Because the banks will have to pay a Levy into that Well there's a couple things number one If the Fed is indeed I mean there is Just no flipping way on God's green Earth that's why they have to prevent a Run that there's even enough money for The insured deposits in there let alone The uninsured deposits and when you're Talking about the Federal Reserve Backstopping it what does that mean Get Your Gun babe because this is what it Means and who backstops exactly and who You know that's fun they're the first One I got to do that with yeah But you you know and and who backstops The central bank's balance sheet Taxpayers
So whether you want to call it a bailout Or a bail in or whatever you want to Call it they had to and also when you Stop and think about who were the the Um customers of SBB Bank Venture capitalists Right so I think 97 of the deposits were Uninsured How do you feel this this current Banking crisis is going to play out like Do you feel as though the public Confidence has been recouped and like it Seems as though there's some banks that Are bouncing back today is that just a Dead cat bounce or is Is it that uh people have been appeased By the fed's plan is His confidence in them Trying right I could not tell you me that That I think that the markets definitely It's a dead cat bounce because you know When everything plunges like that you're Going to see that kind of behavior but I Think the jury is still out as far as Public confidence and and that's another Key tool that central banks have and I've been watching over the years that Confidence just going away and once it's Gone then it's gone so in other words You know it was bank to bank confidence Back in 2008 when they had the interbank Lending and then Banks They stopped lending to each other so
That confidence level was gone then in 2015 Um it was the Swiss surprise so Central Bank confidence that sent the Swiss Central Bank had come out and repeatedly Vowed to maintain their pegged Relationship with the Euro and we that's A whole nother show to be honest with You but they vowed they vowed they vowed They vowed and two days later after they Really vowed it hard they Changed their mind so that was Central Bank to Central Bank confidence Then it last August and this one freaked Me out I don't know why they gave it Away but when they kept promising Meaning the Federal Reserve kept Promising a 50 basis point hike a 50 Basis point height and then they did 75 The markets learned they couldn't trust The central bank there is only one level Of confidence left and that's the public Confidence in the central banks in the System The rapid inflation erodes People's confidence in this crap right But What just happened with the banking System and so the jury is still out I Can't tell you that they've gotten this Confidence yet back or not but that's Why they rushed to backstop everything I Mean 2008 they went from a backstop of a Hundred thousand in terms of a hundred
Thousand to 250 and then it's stuck so What are they going to say okay we're Just going to ensure every deposit and Oh by the way if they are how are they Going to do that this is how they're Going to do it because this is the only Tool they have left And what does that do to inflation yeah How bad do you think this could Potentially get like what is people Always talk about economic collapse There's many ways that could happen Whether it's de-dollarization uh you all You always talk about the uh the dollars Worth how it's been diminished How do you foresee like if this Bank Run In a loss of confidence in the system How do you have you ever imagined how That might play out That's why I prep right yes the way that It and and I believe it's already Started Um it's going to be in in some kind it's Going to either be a hyper inflationary Or hyper deflationary and by the way Those are the same coin it's just the Opposite side of it uh and that'll burn Off all the debt And then we'll reset into a new system But it's not going to be that easy so Unfortunately during these periods of Time on average globally on average I Mean there's always there's over 4 800 Inst instances so there's lots of data
On this So on average 80 percent of the Population ends up in abject poverty In Venezuela that number is 90 but I Didn't say a hundred percent This is a wealth transfer mechanism to Push us into the next phase Unfortunately most of the time the General public is not prepared so it's Just those in the know like the old who Now is sitting on a boatload of gold and Others right you want to be in the right Place at the right time with the right Asset because if you can hold your Purchasing power intact which is goals Most important function then you can be In a position to scoop up those other Assets when they are severely Undervalued like gold and silver is now Right so there's a lot of pain ahead if You're not paying attention and you're Not prepared hence my Mantra food water Let's see Food Water Energy security Barter ability wealth preservation Community and shelter and that's what I've been working on building Um around me And If you're sitting in something that Right now is severely undervalued when Everything else is severely overvalued That's going to flip-flop and Historically 25 ounces of gold
Could buy an entire city block buildings And all So there's opportunity but it's going to Be Very very very very nasty For most people unfortunately Well it's incredible just thinking about The value of the dollar and even when I Was growing up the cost of a home was You know obviously a lot cheaper than it Is today so we have all these asset Prices which are severely inflated just Like the market that is still riding at A pillar Schiller p ratio of higher than It was during prior to the 1929 crash How do you how fast do you see this Hyperinflation happening and how exactly Do we get to hyperinflation from where We are now if that were to ever play out Well it really is about confidence right So with the with the rapid inflation That's been happening if you have the Ability to move a purchase forward Because you think it's going to be more Expensive down the road if you have that Ability you've been doing that you've Been buying those things but Unfortunately with all of the increase In wages actually last year between After the wage increases after the Inflation the average person actually Lost 1.4 percent of their income So you know I mean we're in just a Really precarious position and I think
That everybody needs to step back and Say okay what is the true fundamental Value of this asset and the fundamental Value is based upon its most important Function not what you wanted to do but Whoever created that what was the most Important thing that they wanted that to Do when you're talking about money the Most important thing this is my opinion But you so you can you know think Something different but my opinion is is That the single most important function Of money is to hold its value over time But what has been happening right since The central bank has controlled the Interest rates and the debt and they put The push the interest rates all the way Down people have been forced to take More risk just to keep Pace with the Inflation and where was all that QE Inflation held Stocks bonds real estate That all has to reverse what we don't Know I I did an interview one time and You know and I was talking about this Stuff and and she kind of was a little Snide and she went oh yeah zombie Apocalypse well there are zombie Corporations that have been inspired by All of this low interest rate and the Banks have kept them on their book this Is a concern of mine right the banks Kept them on their books by loaning them More money now a zombie Corporation has
Not had the ability to pay all of the Interest due from their earnings forget Any principle but they can't even pay The interest from their earnings that's Why they're called the zombie Corporation for at least three years Three years But the banks have not wanted to show Those losses on the books so they've Just been lending them the money so that They make those interest payments or at Least enough of the interest payments to Satisfy it and what does that mean that Just means their debt has grown and Grown Well if interest rates are going down Okay it's easier to handle that debt Once the interest rates start going up Well then it becomes more difficult to Service that debt roll that debt over Take on new debt and that's the problem Because this whole system is based on Constantly compounding and growing debt So what if the What If the Fed decides To Pivot and goes back to reducing Interest rates what happens to the System then Position the obvious inflation that you And I see So that's what happens And the the faster the inflate and There's your hyperinflation because the Faster the inflation Rises the less Confidence people have in the money
The less confidence they have in the System it's done it's game over and so What happens if they raise interest Rates if they keep raising it they're Between a rock and a hard place aren't They so they raised interest rates that Means that all of the bonds and the debt Instruments that are out there are Losing more and more and more and more And more value And so we have more and more collapses Like svb So what you're saying is we're we're Effectively screwed and it's just a Matter of time before the whole thing Comes apart it's just what what is going To be the the Catalyst for that it seems Like they've at least for now for today Anyways as of two o'clock Central Standard Time there's still confidence In the system but That could change any moment Yes and I'm not sure that there's Confidence in the system just because The market bounces yeah the market Bounds because they think the fed's Going to Pivot And these are Traders these aren't the General Public Right these are professional traders That are just looking to make money Yeah so they're not the Yeah they're just in it from the Day-to-day as opposed to
The long-term outcome of higher Inflation as a result of this Long-anticipated fed pivot So what about you talk a lot about De-dollarization as well that's another Factor in all of this with what's going On geopolitically in the world how do You think Is it can we expect that people are Going to start to lose confidence in the US dollar as a result Of what's going on right now at the Banks I mean in Russia right now they're They're kind of poking fun at the fact That they're disconnected from Swift so That they they kind of were done a favor Last year that they were disconnected From this system Um how do you see maybe explain what D Dollarization is and I I wanted to send You a infographic that I came across the Other day it goes through the global Reserve currencies throughout the 20th Century and it's kind of it shows the Shift and a lot of people are convinced That the USD as the global Reserve Currency is something which is just Written in stone and that's never going To change But if you do see the dollarization who Do you think would come to replace that Hey that's a great question number one Yes I do see it and I've actually seen It for quite some time because it was
December I think 13th don't hold me to That but I'll probably be pretty close Of 2002 when the Federal Reserve first Started buying treasury or uh treasury Bonds that is something that a third World nation does and we never talked About it did we never ever ever but you Can go on the Fred f r e d which is the Federal Reserve education department and You can see for yourself if you put in You know treasuries held by the Fed so This is actually something that's been Coming for a while and I think that it It begs the question of well why is the World dollarized to begin with and that Was once we made the transition just to Keep a long story short the transition In 71 from a gold back currency to a Debt-back currency Henry Kissinger went To Saudi Arabia and created the Petro Dollar and that means that if you are a Government a corporation or an Individual going outside of your borders To buy anything you had absolutely no Choice but to do it with U.S dollars So That created an artificial demand for The dollars that also created a lot of Advantages for Americans that got to use The dollar because we were the only Country it's not true anymore but for a Very long time we were the only country That could actually go in the back room And print the dollars that we needed to Pay our debt so that's a huge Advantage
But and you mentioned the Swift system Which is the global payment system we've Weaponized it Right and if you don't think the whole World watches the US Dollars you don't Do what we like boom you're kicked out Of the Swift system so we've abused that Privilege and we've been exporting Inflation Now So there's a whole bunch of countries That that are holding dollars but as We've seen Saudi Arabia recently said You know we don't have to just accept Dollars we can accept rubles or gold or Yuan or anything else So that then puts us in a completely Different position The international monetary fund the IMF Which is just a regulatory body that's Made up of every Central pretty much in The whole world uh every Central Bank Chief and every treasury secretary None of them are elected officials The IMF in 1969 created their own Currency called the SDR it stands for Special drawing rights but it's just a Name just like the dollar is a name just A name However what that is is it is a basket Of currencies At the moment there are five currencies In there but in reality they could put Every currency in there if they wanted
To It's been around since 69 so everybody Has a whole lot of it especially in 2009 They went in and they tested all of the Mechanisms For shifting out of the dollar into the SDR or any other currency And so and then just recently they Injected a massive amount of sdrs into The global system now anybody you could Go to your local Postal Service and up In the search bar put sdrs and and You're gonna find that they're inside of The system so in my opinion this is Going to be the next World Reserve Currency Because it makes the most sense and you Know I mean I didn't know what it was Going to be but then China in 2009 it Was China who came out and said what About the SDR and I thought well that Makes perfect sense they don't have to Reinvent the wheel they just have to Tweak the wheel that is already in place So they could They could add every single currency in There and we would end up with a Global Currency and a local currency and they Have what they call a substitution fund So if you are any other country but the US and you could deposit whatever your Dollar Holdings are And then the IMF would convert them into SDR Holdings
And in theory they could then regulate The speed at which the dollars would Come back to the U.S So that would slow Slow the the pain of Inflation somewhat Yeah but I don't think they're going to Do that I don't think it's going to work Right right So yeah I mean there's all these dollars Held out there you have these countries Who have a vested interest in in the Whole house of cards staying staying up Propped up That's at some point they get scared Perhaps they start cashing in their Chips buying stuff With the money How does it all work how does it come Undone Well it you know For one thing the assumption is that They want to keep kicking this can down The road can down the road well what if We're at the end of the road who do you Think would know that better than Anybody else The central banks yeah so I but they but But they tell us everything's fine Well of course that's their job don't Look behind the curtain everything's Fine yeah well they worked all weekend So I'm thinking it's not so fine because They don't usually like to work on the
Weekends very true Right especially Bankers yeah Yeah yeah That'll work on the weekends unless they Have to exactly So so it's a sign that this is this is Definitely serious and one of my primary Concerns with the FED is that they are Because they're so authoritative and Because Of just the media the media complacency In general nobody's really going to Question it right so they're going to Tell us that everything is fine until it Isn't and then it's going to be Blood in the streets Um Yeah did Becker come out the day before They were taken over by the fda's Don't Panic everything is fine don't panic That's how con games work Well even Jim Cramer just a month before Was promoting swb as one of the best Banks top 20 Banks And uh you know was encouraging people To invest in it and it was undervalued And it's going to the Moon So have you seen Jim Cramer's discussion From his days as a traitor on how he Would how easy it was to game the system No Search that out it's a lot of it's very Interesting Very interesting yeah and did you by any
Chance hear the FDIC resolution meeting Last November where they were laughing About the fact that the public had more Confidence in the banking system than They did yes that was quite telling that You know all of this happens within a Couple months of that meeting taking Place Yeah It's Their job is to keep us calm it's called And they have a formal name for it Perception management Because if they can manage how you Perceive things then they can manage how You move forward Why do you think they've made that Meeting public like why would they ever That's a good question why would you Make a meeting like that public well I Think it has to be public but knowing That it's public why would you make Those statements yeah Because clearly they don't have faith in The system That they're trying to alter the Perception of us to have faith in so Yeah it's very disconcerting to say the Least So obviously You know obviously people are trying to Protect themselves against What could potentially be coming down The road gold and silver obviously some
Of the things that you promote Um You have a a team that assists people With Giving some strategy on how to navigate These Precarious times I've been studying Currencies and currency life cycles Since 1987 and there are very simple Repeatable patterns and even though I Can't guarantee what's going to happen Tomorrow I'm kind of thinking that if We're doing the same thing we are most Likely get the same result that has Happened a hundred percent of the time In over 4 800 times I mean maybe this Time's different but I don't think so And so that actually makes it pretty Simple to number one understand where we Really are inside of this cycle and Number two how to get into a position to Benefit from it I'm an economist first And it was because uh in 2008 I was Getting ready to retire and I had a Little two-bedroom condo that I could Just lock up and go wherever I wanted to And and be done with it and then 2008 Happened so I bought it's just a half an Acre here it's just a half an acre and I'm not a gardener by trade I'm not a Prepper I mean that's not really that Wasn't my thing I am absolutely a Prepper now but I believe my research Because I know how deeply I dig into
This stuff And I know that I'm going to the horse's Mouth so I bought this property because It was big enough for my children my Family and I said okay I got to figure Out how to grow food for 20 people but Now it's much larger than that because I Took out all the grass and and I have an Urban farm and this is some of the Produce from my farm Um so I definitely can eat and I have Lots to share but in in April of 2020 There were riots really near my house And also near my children's house I live In dead Central Phoenix so I live in a Very urban area and there were riots in Both places and I thought there's the Hole in my strategy so I went out and I Bought I have 41 Acres on the top of a Mountain Nice putting up hot houses I mean it's It's really it's a great piece of Property it's completely off grid with Solar with water with all of the Mantra Pieces and the food part is getting Finished like as we speak Um so what was the question yeah no I Think I I think that's great that you're You're prioritizing those things because I you know you get a lot of and even I I Was talking to Peter Schiff about this That's one of his I trust people more When they have those bases covered like Gold and precious metals are kind of
Secondary to having a means of of Self-sustainability if things begin to Get very difficult uh but they're a way To preserve wealth obviously they're a Way to help you thrive and potentially Rebuild Out of the ashes so even in a better Position Right remember remember this has Happened so many times before and when I First became a stockbroker nobody ever Talked about outliving your savings Now they certainly talk about that so This is actually a way to build wealth I Mean I'm 68 at some point I'm I don't Know if I'm ever going to retire but at Some point I might want to start Or I might want to stop working this Hard so I'm always going to have a need Of income and this is opportunity Positioning as well as all those other Things because this holds wealth it Holds a store of value and here's the Other piece of that It's how they do those overnight Revaluations they take this garbage that Has no intrinsic value And they reset it against gold that is All intrinsic value and the reason why Gold is all intrinsic value is because It is used in every single sector of the Global economy So it has the broadest base of Functionality and the broadest base of
Buyer So when you're going into a fight like This what do you want you want something That has no value and is going away or Do you want an Arsenal and so how do you Do you have any advice on storage of Breakfast Metals is it just like bury it In the back 40 or is it put it in a safe In a bank somewhere is it uh what do you Recommend not that one yeah not that one Uh but if you don't hold it you don't Own it regardless of your perception So you know there are lots of different Ways that you can store it depending Upon your circumstances Um and obviously I have kind of fewer Choices because of how visible I am but Before I was visible there are so many Hidey holes in your home like for Example that two inch kick plate Underneath your pots in your kitchen That's dead space I had those bottom Shelves removed and and they became just Removable shelves right they put notches Where you can't see yes you have to move Your pots and pans when you want to get To your gold and silver but who's going To think that you have gold and silver There So you have to be a bit creative Um right now I have to hold mine in a Private Vault not a bank vault because a Bank vault can close you out and a Private Vault holds a lot of different
Things So it's it's safer and also being Diversified inside of that I know a lot Of people like to hold their gold Offshore but if you hold it offshore and You need it you might not be able to get Your hands on it so and there's Different kinds of gold and different Kinds of silver for different kinds of Functions so like this for me is Barterable and by the way this is a Sterling silver Chopstick which is 92 And a half percent pure right so there's All different ways that you can hold Your wealth you think about India where You know they wear their wealth on their Bodies so you just have to see what's Right for you but silver for me is Barterable gold for me is about Preservation and opportunity and Dynastic wealth wealth that I can pass Down to my family is critically Important to me too it's not important To everybody but it is is to me so that Would be more rare so I'd say like in The strategy that we were talking about Based upon those repeatable patterns we Start with your goals what are you Trying to accomplish What are your means what do you have to Work with to accomplish that and then You build the portfolio of the different Kinds of gold and the different kinds of Silver that supports your goals
And in terms of I've heard that some people recommend Jewelry because if you ever did have to Barter you know if you had Gold coins people might think to Themselves oh this person has a lot Right see as a personal security thing Do you have you considered jewelry as a Potential method of barter as opposed to Utilizing coinage you think I'm wearing But it's a much larger markup Right it's a huge it's much much larger Markup so Um It's a combination but I definitely Am overweighted here I mean this is Where this is where without a doubt I Hold the Lion's Share of my wealth Because it's also easy to travel I mean I'm not recommending anybody get a one Ounce coin for eight million dollars However you can and you can put it in Your pocket and you could travel Anywhere in the world with it there is a Market for it and if you go through TSA Or whatever they don't know the stuff They look at a 20 face value All right so Yes I I definitely am a proponent of Jewelry I like jewelry I've given Jewelry to my daughters since they were I started them at 12 and you know gold And when I travel I put chains Underneath my clothes so I take silver And gold chains with me but the Lion's
Share to execute the strategy is most Definitely this and this but it's also Chopsticks or Aunt Bessie salt and Pepper sterling silver salt and pepper Shakers or sterling silver jewelry Sterling silver is 92 and a half percent Pure 925 Silver is nine and a half Percent pure So 14 karat 18 karat you know but I Definitely do most of it in coin form But I definitely do also do jewelry what Is your price prediction I I hate Dropping this question on people because It kind of puts them on the spot but and Really for me I've always thought that The price of gold is somewhat irrelevant Especially considering it is I think We've passed Peak gold production Supposedly so by 2030 it's supposed to Dry up a lot so that only means that It's going to go up in in value but when We're waiting it against the US dollar We have to be careful people get excited About a three thousand dollar price Point they forget that well that does That mean that the value is the value of The dollar is eroded that much what it But if you were to maybe throw out a Price prediction for gold what what Would that be and when would it hit that Target Okay so if we're talking about like if They were going to do an overnight reset Tonight right so what they want to do is
The price of gold in terms of dollars Has to go up To cover A number of dollars that they have Created out there So if they had to do that tonight it Would be easily in excess of fifteen Thousand dollars an ounce Now recent examples of it you know Lebanon the over because the rising gold Price is an indication of the failing Currency so they artificially suppress It with paper gold of which there's an Unlimited amount right but when they do The reset that's when the rubber hits The road so tonight I would say at least Fifteen thousand dollars in Lebanon I Think the overnight reset it went up Like thirteen hundred percent Um in Venezuela the first reset that They did and then it's been going up From there was like 3 500 percent So I can't tell you what that coverage Is going to be but it at 1900 it's a Bargain And silver I mean please it's a bargain And what are your thoughts on Cryptocurrency are you a believer in Bitcoin what do you think the The Russian to Bitcoin in the last few Days like it was down a lot now it's up Like 20 almost in just a few days I think that's also based on the FED
Easing Um you know I read the 1996 NSA white Paper on how to make a mint And if you have you read that no I Haven't no oh it's pretty interesting And you'll see a lot of things that have Actually come to play Um in there I don't personally think That it's coincidence that Bitcoin was Introduced in January of 2009 and Quantitative easing was issued in March Of 2009 because the last thing Central Bankers want you to do is buy gold Right Um I know that there's a very loyal Following for Bitcoin but this is the Test and the test isn't what happened Today for it to bounce it has really Never gone through this Um now I do know that the bank for International settlements in their money Flower Has a little teeny space in that flower For private cryptocurrencies and we've Certainly seen Wall Street adopt this I Mean otherwise we couldn't even have I Mean I think it's quite interesting who They're choosing to bail out this time And and again I go back to that's Because it benefits them that they're Bailing out all these tech companies Etc And Venture capitalists So I am not personally a proponent Because I think that it was just a tool
To divert people away from buying gold It's the same kind of mentality people Are trying to go around the system and Get away from Central Bank control but This is a lot less visible and a lot Less accessible so for me I'm gonna wait And see who survives this debacle I'm Happy to wait in my gold and silver and My food water energy and all of that And then after the dust settles same Thing with stocks I mean I don't own a Stock now that's not always been true And I don't expect it to be true always Into the future But I would look at it because it is a Handy way to move a lot of wealth you Can put it on a thumb drive and take it Somewhere But I have yet to have one person Explain its functionality other than That You gotta have a conversation with Michael Sayler probably he seems to have A lot of ideas with respect to it but One thing I find and I never really put Those two things together what you just Said it made an appearance right after The Great Recession and It made a very mysterious appearance at That you know we don't know who made it Some mysterious Satoshi guy just came Out of thin air came out of nowhere and All of a sudden you know I wasn't all of A sudden but
You know suddenly people started to Pile In And it certainly makes you wonder What it's all about right yes it does Yeah so I think the tried and true way To go uh you said something that You know if this has happened 100 of the Time in the past then we should expect It to happen again there's always this Exceptionalism that we find when we're Assessing our current situation and Every generation thinks that they're Unique and they have it figured out and This time is different and don't listen To the Warren buffetts and the you know The uh the guys who are saying uh what We don't want to hear because you know We're different now we're more involved Right but I think Time and time again I'm sure at some Point we're going to get to a point Where ones and zeros are going to be the The dominant form of currency but I Don't think we're quite there yet in Fact I think that we probably need To sort out a lot of the geopolitical Stuff first And who knows where that's going to go Do you have any thoughts on Just the the State of Affairs between China Russia United States Well I can tell you one of the things That happened 100 of the time around Currency regime shifts is war
And I'm not really convinced in my mind That that's them and this is us because I'm not convinced that they're they're Trying to kick the can down the road I Think they're more trying to create Crisis to get everybody's buy-in and if You look at what's been happening we've Been going from crisis to crisis to Crisis to crisis keeping everybody off Balance And so lastly Uh I think I'd be remiss if I didn't ask You your perception of this supposed Great reset and what the role of the The notorious World economic forum is in All of that What is this great reset we keep hearing About and how does it relate to what We've already talked about today I've actually been talking about the Reset since 2009 after a half an hour Interview on Bloomberg News which isn't There anymore with Christine Lagarde uh Who was the head of the IMF at that time And she used the term reset we need to Reset the financial system reset this Reset that about 28 times during that One interview and I went holy crap we Have entered the period of reset and What that is is is resetting us taking Us from one monetary and financial and Social system and resetting it into Another one these are very very very Painful moves and this is a huge one and
That's why it's so critical to be Prepared that's why I've done all of This To be prepared so that we can make this Everybody no matter how prepared you are We are all going to feel this it doesn't Matter however we have a choice and we Have an opportunity when you're talking About the world economic Forum what do They say you will own nothing and be Happy except wealth never disappears in Merely shit's location and so the goal Of the elites is to have more of it Shift their way and then guess what Happens if you are now renting Everything Right who's going to dictate that price And oh by the way I think I haven't had Time to go back in and look and find This I think it was a 2015 IMF uh Article On the transition where they talked About uh with the autonomous driving and With all of this smart contracts so you Know on your houses and what have you That if you miss a car payment the car Can lock you out and drive itself away And guess what Ford just came out with Uh that patent applying for a patent to Do just that don't worry they don't plan On using it Of course not so we have an opportunity Because the reality is is we vote with Our with our wallets we vote with our
Purses if you buy stocks that's your Vote If you stay in currencies that's your Vote here's my vote this is my vote and This basket of food this is my vote And if we all got behind that and voted It guess what they couldn't do Because there's a lot more of us than There are of them You look at what's happening in Nigeria And they only had a half a percent of The population that adopted their cbdc So now they tried to demonetize in other Words if a government says this is money They can also say no longer money and so They were trying to demonetize Most of their currency which India did In 2016 and Venezuela et cetera Etc That's where we're headed so you have a Vote you vote with your purse if you're Going to prep that's your vote If you're going to buy gold and silver That's your vote if you're going to stay In these markets that's your vote I vote For Independence And Community I mean communities Arguably the most important part of it As one person can't do it all themselves And I would venture to say that it's not Necessarily all or none either you know Like a person could Play the cbdc game when it comes around But at the same time Hedge their Bets with what you're
Talking about today is that not possible Yes Um it's highly possible if we have no Choice right if the cbdcs are legalized As our tool of barter and what we have To work with then we're not going to Have any choice but What I had originally intended to do was Convert a chunk on the and you'll know When we're on the other side of this You'll know because they'll put a Component of gold in into the new Whatever it's going to be because that's They're going to need to regain your Confidence so that's what history tells Us they're going to do so um But I had intended to put probably a Little bit more or a chunk of my gold And silver converted into the new Currency not going to do that I'm going to convert it as I need it Right but other than that I'm going to Hold it in here because one thing they Say is once they have the cbdc's there Are no limitations on how low they can Push interest rates they already have All your purchasing power you put up That chart now they got to attack your Principal once they've done with all of That we're reset into a new system and If you don't fight back if you don't Prepare on every single level what Choices do you have you are giving up Your freedom
You are giving up your choices Absolutely well it's been uh very Fascinating conversation with you today And uh I hope to have you back we'll see How this plays out in the coming weeks And months ahead uh it all could crash Really quick and then in that case we'll Have to get you on much much quicker but Where can people best find you on the Internet Well I have a two YouTube channels so I Have the one on itm trading where I try And explain all of this very complicated Stuff and then I have Beyond gold and Silver where we talk about all the rest Of the Mantra and we try and meet you Wherever you are so if this is new to You okay here are simple things if You're a master come join us and help Teach other people how to do it and also For the variety of circumstance we have A uh we have a website itm trading.com And we actually love human communication So we can you can always call us at 888-696-4653 we're active on Twitter on Instagram on tick tock on Facebook and We do podcasts so we're we're out there A lot yeah I would encourage people to Take a look because they you really do Have a knack for making these very Complicated topics I know we've we've Went a little deeper than I thought we Would today for some things but you know For people who are not very well versed
With economics you do make it easy to Understand and I think that's why you're You're trending so well right now I know A lot of people are using your Clips in Various videos and they're getting Hundreds of thousands millions of views So Yeah no it's good so just uh keep it up And go check out her Channel guys and uh If you have any questions for Lynette Post them in the comments section below And then when we get her back on we'll Be sure to ask Thanks for coming I look forward to Coming back this is fun and uh last but Not least one more Looks like my camera guy is going to be Doing some cleanup after this I know poor Edgar and this is part of His job all day long picking up picking Up fake dollar bills just like working At the FED I guess eh yes indeed you Want real money this is real money Awesome good stuff well thanks a lot for Coming Lynette appreciate it pleasure Thanks for having me bye The best way to support this channel is To support Yourself by gearing up at Canadianpreparedness.com where you'll Find high quality survival gear at the Best prices No Junk and no gimmicks use Discount code prepping gear for 10 off Don't forget the Strong Survive but the Prepared Thrive stay safe