Colin Plume from NobleGoldInvestments joins us to discuss inflation, gold, and the future of the economy. We discuss modern monetary theory, economic conditions, headwinds, and what to look out for in the near and long term.
00:00:51.000We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
00:01:45.000Obviously, people are divesting into gold and silver and platinum, which I don't know if we have time to get into, but platinum is on the rise right now.
00:02:01.000Well, platinum is interesting because if you, anyone that's in the gold business for a long time remembers that platinum was more expensive than gold for many years until about seven or eight years ago.
00:02:12.000Platinum's sitting below $1,000 right now.
00:02:15.000And most experts believe that platinum, the use of platinum, is going to get moved over more into catalytic converters.
00:02:23.000Palladium went parabolic and hit over $3,000 an ounce.
00:02:31.000But they believe that platinum now will start to take over that use.
00:02:35.000So they think that platinum is undervalued.
00:02:37.000And for people that don't know about mining and all the things that happen there, platinum, gold, silver, platinum, palladium, platinum is the most difficult metal to mine and find.
00:02:47.000So sitting below $1,000 is a unique position for the metal.
00:02:54.000So let's kind of dive into some of the more economic macro stuff.
00:04:31.000I think people don't realize that the banking industry in general is in trouble because if they're not doing loans, which right now residential loans are down by almost 80%, they're not going to loan on any of these commercial buildings.
00:04:46.000They're nervous about which properties.
00:04:49.000How does a bank generate revenue if they're not doing any of these loans?
00:04:53.000And obviously, people don't want to keep money in cash.
00:04:57.000They're either going to different banks or a lot of people bought gold and just had it stored at their house because they just didn't feel comfortable.
00:05:03.000So if a bank doesn't have cash, they're not doing loans.
00:05:14.000We saw what happened with Bank of America as they finally got caught for opening up new accounts, which is one of the ways they make money.
00:05:21.000So they had a pretty hefty fine that they're going to have to pay for, which Wells Fargo has been doing that for years and years.
00:05:27.000But banks are in for a lot of trouble.
00:05:30.000A lot of original banks are in trouble.
00:05:32.000And so we're just in the middle of it, but I don't think a lot of people are talking about this banking crisis.
00:05:36.000Well, yeah, and the buried lead of it is that the Fed will lie about this, but they have very quietly expanded their balance sheet, which I think is the reason why the Dow has been going up the last four or five months, is we've actually seen increases in liquidity.
00:06:16.000You need more money out there in the markets.
00:06:20.000That's the only way we're going to see it go up because we haven't seen any positive GDP.
00:06:25.000We haven't seen rave earnings coming out from a lot of those companies that have been going up.
00:06:32.000And obviously, you see just this general shift up that's happening in the equity market.
00:06:37.000I believe that at the end of this year, and I've been saying this a lot, that they are going to lower interest rates.
00:06:42.000I know they did it, you know, they increased rates one more time, but I think at the end of this year, they're going to lower them.
00:06:46.000They're going to need to keep the economy going.
00:06:50.000Because if all this debt comes due in the next 12 to 18 months, all this debt, all this commercial debt, how are the banks going to survive with all this debt?
00:06:59.000If they end up getting all these buildings that they don't need, how are they going to survive?
00:07:03.000So I do believe that they're going to shift at the end of this year.
00:07:59.000Now, when you have a bank that has a hundred million dollar note coming due, they're going to try to negotiate that with the lender for many, many months.
00:08:07.000So it doesn't always happen right away.
00:08:10.000And that's why you see a lot of these office holders in San Francisco and all over.
00:08:15.000They say, Yeah, we tried to negotiate to the bank for a long time and we just weren't able to.
00:08:19.000And now they just release it back to the bank, which is, you know, obviously their last option.
00:08:24.000It's the bank's last option too, because they don't want to sit with a vacant building.
00:08:30.000There's a lot of things that the bank's not able to do.
00:08:32.000And in essence, nobody knows how to turn all of these historic, older, not fitted for residential buildings into places that people can live because that's really the only use that would monetize in some of these major cities.
00:08:48.000Everything else doesn't make any sense.
00:08:50.000No one's going back to the office in droves is never going to happen.
00:09:38.000Can you just, because I think the audience says, okay, commercial real estate, whatever, like, no, no, you have no idea.
00:09:45.000I would say a large portion of the American economy is built on the trust that commercial real estate is going to pay the bills.
00:09:51.000Life insurance companies own these, which obviously is a big part of the economy.
00:09:55.000You have REITs, which most people probably watching the show have some exposure to REITs.
00:10:00.000They may not know how much they have that is exposed into office buildings.
00:10:05.000Office buildings were considered Class A almost in a way like bonds.
00:10:10.000So what we're seeing happen is sort of similar to what we had happen in 2008 when you had that bond crisis, that debt crisis, where they had all these bonds classified as class A and they were really like class D or F. That's what's happening today is that we've, you know, we classify these office buildings as great opportunities and safe.
00:10:29.000And there's a lot of REITs that own them.
00:10:32.000There's a lot of resident, there's a lot of people like you and I that have a little bit of our portfolio that are wrapped up in these properties.
00:10:40.000And they're going to come to the market and it's going to create a massive bubble and it trickles down from the companies that own them to even the banks.
00:10:48.000And a lot of them are large banks, but a lot of them are regional banks.
00:10:51.000A lot of regional banks have this debt.
00:10:54.000So it's going to create a massive problem for the economy.
00:10:56.000And that's why I think the end of this year, they're going to try to open up the money supply and bring rates down to hopefully slow down this massive debt bubble.
00:13:57.000Like prior jobs, you know, former employers, by law, there has to, they have to tell you about them, obviously, if you ask, because it's in your name.
00:15:02.000So the idea that you move it into a self-directed IRA so you get control of it, get the fees down is really a smart thing to do.
00:15:11.000Obviously, we can help you get into precious metals, but even if you moved it into and went into cash and then decided later what you wanted to get into, it's a great way.
00:15:20.000And there's a lot of lost money out there.
00:16:01.000It's one of the, I think, one of the few assets in an IRA you actually own by yourself.
00:16:06.000We at Noble Gold just help you facilitate that.
00:16:09.000So, for people that want to diversify, for people that want to get into something different, something tangible, it's a great option that we help them do.
00:16:18.000Yeah, and look, I don't do investment advice.
00:16:20.000I'm clear about it, but I do give you advice on who to buy from.
00:16:24.000That's what I will do, which is Noble Gold Investments.
00:16:26.000And I've been had some real bad experiences with some gold companies, let's put it that way.
00:17:20.000It's a brain fart right now, but ultimately what happened was they realized that millennials had more gold in their portfolio than the older generations.
00:17:31.000They had almost 16%, 16% of their portfolio was in gold.
00:17:35.000And so it was sort of a shocking revelation that younger people, and we've been seeing it, have been moving into gold.
00:17:45.000Fidelity Charitable released its latest giving report.
00:17:48.000According to the report, its account holders in 2022 recommended $11 billion to nonprofits in the mix, Planned Parenthood.
00:17:55.000In fact, according to the report, Planned Parenthood was just the sixth most popular nonprofit among Fidelity charitable account holders last year.
00:18:26.000So, Colin, one of the consequences of our involvement in the war in eastern Ukraine, which, by the way, is heating up beyond anything that I think people realize.
00:18:35.000Front page of the Wall Street Journal shows drones target Moscow high-rises damaged.
00:18:42.000So, Colin, is that the dollar is now being put into question as the world reserve currency?
00:18:48.000Russia is trying to get back at us by uniting the BRIC countries, Brazil, Russia, India, China, South Africa, which could potentially impact the dollar as the world reserve currency status.
00:19:02.000How real are these threats and what does it mean for the integrity of the U.S. dollar?
00:19:06.000Financial transactions between countries happen in the dollar.
00:19:09.000That's down a few percentage points from five or six years ago.
00:19:13.000The reserves of most countries in the dollar used to be in the 70, 75% range.
00:19:20.000We're at 58% right now, the dollar being reserves and central banks.
00:20:00.000So, they don't want everyone to go out and buy as much gold because obviously they have this currency coming and they're going to need to back it partially.
00:20:09.000They have a system that they've tried to introduce.
00:20:12.000It hasn't worked yet, but I think it could get more momentum if it was backed by gold.
00:20:16.000They have a BRICS payment system that would allow for their transactions to be done much quicker and much easier.
00:20:23.000And that's one of the things that's on the agenda at their meeting August 22nd, August 23rd.
00:20:30.000They're going to be discussing this, among other things that they need to discuss at that summit, but a big conversation.
00:20:37.000And a lot of people that talk about money and talk about currency are very much concerned about this currency being released and it being a much stronger currency than our U.S. dollar.
00:20:50.000So, how does this tie in with the push for centralized bank digital currency?
00:20:55.000Well, I think what it is, it would be a digital currency.
00:20:58.000They're not going to release anything paper.
00:20:59.000So, it is going to be a digital currency.
00:21:02.000And if they can figure out a way to make the transactions seamless between these countries, it would make sense for them to go with a currency that they have some more vested interest rate.
00:21:15.000At the end of the day, having the U.S., our currency, gives us power over the world.
00:21:20.000It allows us to dictate a number of things.
00:21:22.000It also, on the negative side, it allows us to spend freely.
00:21:42.000Without any consequences, what I think what we're looking at is countries are going to continue to divest into other currencies, but they're still looking for that replacement.
00:21:54.000The yuan has pushed pretty dramatically.
00:21:57.000They have a digital currency application in China.
00:22:00.000People are starting to use it in China.
00:22:05.000So, we are seeing more of a push away from traditional paper currencies and things that people are using day to day.
00:22:12.000It's becoming more of the next logical step.
00:22:16.000The problem for us is that then, if we do continue to move away from it, the world, then we have to sit down and really deal with our debt problem.
00:22:25.000And I think there's never been an issue that we've been able to solve.
00:22:32.000We had an opportunity a few months ago to try to lower some of our obligations, and the Republicans came to the table with a pretty sensible plan in a number of areas.
00:22:41.000And some of the things passed, you know, reducing the IRS agents and a few other things that passed.
00:22:48.000But there's some bigger issues that they were not able to hammer out.
00:22:52.000And that's why now we can just spend freely.
00:22:54.000I don't know if you remember that plan, but basically, now we can just continue to spend for the next years.
00:22:59.000There's no limit right now for the next two years.
00:23:02.000And so, they're just going to continue to spend freely.
00:23:04.000So, we're going to go from 31 trillion to probably in the next two years, my guess will probably be close to 40 or 41 trillion dollars in national debt.
00:23:13.000When I first started my activism in this space, it was 2010, 2011.
00:23:18.000The debt was right around $9 trillion.
00:23:21.000And so, let's get to the root cause of this, though.
00:23:24.000We have a system, a monetary system that is built on fiat currency.
00:23:45.000Was made by bankers and people that have a very specific worldview of, let's just say, allowing government to get big because big government is tied with big money, right?
00:23:57.000You cannot have big government if you don't have loose monetary policy.
00:24:01.000Gold used to actually back the US dollar.
00:24:45.000If you look at the average American of what they could afford until even the mid-70s, the amount of things that they could buy relative to today was much better for regular people, just overall people.
00:24:59.000Also, just savers in general, it was much better for.
00:25:02.000And people say like now the banks are finally offering a 4% return in some of these accounts.
00:25:28.000It typically goes for about six months.
00:25:30.000And then after that, drops down into the threes.
00:25:33.000And if you really look at it, making 3% on money in a bank, when you're going to get taxed on that money, it ends up being closer to about 2%.
00:25:41.000And if inflation is anywhere where I think it is, I know the government reports it's in the high fours, but let's just say it's a few percentage points higher.
00:26:02.000It allows the banks to just do whatever they need to do.
00:26:06.000And that's the only reason they're offering those returns.
00:26:08.000And so a few months ago, when a lot of the banks started to have problems, a lot of people started calling us and they just said, you know, if I have gold and I need it at some point, can I liquidate it?
00:26:26.000You could push a button, get it the next day.
00:26:28.000But with us with gold, if you're talking maybe two to three days, being able to get gold back and you can actually make potentially a better return, or at least you have the money out of the banks, a lot of people just thought getting it out of the banks or at least some of the money out of the banks made a lot more sense, especially people that are sitting with above that $250,000 limit.
00:26:47.000They were very nervous and they were just looking to get out any way they could.
00:26:51.000Well, and that's a common misconception that some people have is they say, oh, I have this piece of gold.
00:27:20.000So, you know, that's always the people that really concern what happens if there's an EMP or what happens, you know, the market shuts down.
00:27:26.000It's like these items are always going to be liquid.
00:27:28.000And I guarantee you, if the market has to shut down again, these will be even more valuable because they're so easy to trade these things and they're liquid anywhere in the world.
00:27:38.000Anywhere you go, people want to buy gold and silver.
00:27:42.000They'll trade it for anything that you want.
00:28:01.000And the reason is, not only is it, so they made this coin in 2010, and every month or two, they release a new coin with a different national park.
00:28:10.000So part of the proceeds goes to that national park, which obviously that's one of the reasons our country is so beautiful is we have so many amazing, you know, natural places that people can go and hike and enjoy.
00:28:24.000The other reason I like these coins is that they only make between 30 and 35,000 of each national park.
00:28:29.000So there's really a limited supply of these coins.
00:28:32.000So that's really nice to get a bullion coin at a fair price, but also over time, these coins will go up in value because they're not making that many of them.
00:28:42.000And, you know, 30,000 may seem like a lot, but at the peak, you know, in 2009 and 2010, they were selling 37 or 38 million Silver Eagles, these coins right here.
00:28:56.000So to give you an idea, the 30,000 in these per park is pretty low.
00:29:00.000So that's why it's one of my favorite coins and one of the reasons I typically offer it for people that are rolling over qualified IRAs.
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00:31:34.000I'm just going to read part of this article here.
00:31:38.000JP Morgan has come out and they say we're in a very prime place and we think that gold ownership and long allocation to gold and silver is something that acts as both as a late cycle diversifier and something that will perform as we look to the next sort of 12 or 18 months.
00:31:51.000Colin, I'm sure you're seeing and hearing this a lot right now.
00:31:55.000And it's funny, I was just thinking about it.
00:31:57.000For all the times I've been on your show, I think every time I've been on your show, gold and silver are up pretty dramatically in the last three times.
00:32:09.000Silver, yeah, silver at a nice bump today.
00:32:12.000You know, silver just is, it's sort of hard to figure out why it's not near its all-time high, you know, sitting around 50 again.
00:32:20.000But yeah, I mean, I think it's prime for this kind of environment.
00:32:24.000We're in a, in a choppy, I think that's what everybody's seeing right now is that you look at some of the reports and you go, okay, well, unemployment seems to be low, but then people say, you know, I can't keep up.
00:32:47.000So you're getting a lot of mixed signals.
00:32:48.000But I think ultimately, when you have a market like this, a JP Morgan and a lot of these big institutions are going to take some money off the table and get into more stable assets.
00:33:00.000They don't want to be too risky with what they're looking to do.
00:33:03.000So they're going to take a portion off and get into the physical metal.
00:33:07.000And I think that if you look at inflation, let's say it's going to sit in the 4% or 5% range.
00:33:13.000And let's say gold's going to be sitting in that, doing that or maybe a little bit better over that time period.
00:33:19.000It's nice to have an asset that has a limited supply.
00:33:22.000And so that's why you have all these large institutions really kind of diving into it.
00:33:28.000You have the Brick Nations talking about backing a currency with gold.
00:33:31.000And that obviously could push things very dramatically, very quickly.
00:33:35.000And then you just have the dollar just sort of when is the dollar going to lose its status?
00:33:40.000And so you have all these elements happening there, and it just creates a lot of nervousness in the market.
00:33:45.000And that's why you see people take off and get into things that are stable, like gold and silver.
00:33:50.000And, you know, you've seen oil pretty much do pretty well.
00:33:53.000So a lot of commodities are doing well in this market right now.
00:33:58.000This is an unprecedented economic climate right now.
00:34:02.000And so I want you guys to check it out.
00:34:54.000Closing thoughts, NobleGoldInvestments.com, promo coachli, Colin Plume.
00:34:58.000Pretty much the opposite of what I've been seeing out there.
00:35:01.000The way to get this economy moving again is to empower entrepreneurs, give them the ability, small business owners, the ability to grow a business.
00:35:10.000And right now, in this environment, it's still very difficult with interest rates this high for someone coming out of the gate that's new in business or looking and looking to get money.
00:35:22.000We got to get our spending under control so we can get rates down and we have to empower entrepreneurs.
00:35:27.000That's the way that we get out of this economic crisis that we're in.
00:35:32.000And yes, the numbers of 4% look great and everybody.
00:35:34.000But if people can't afford to pay their bills, it doesn't matter what the unemployment rate is.
00:35:38.000If they can't afford to pay day to day, that means they're not keeping up.
00:35:42.000And so I don't care what the inflation numbers is.
00:35:45.000If 65% of Americans say it's going pretty bad, then I think that's a pretty fair test that our economy is not going well and we're not going in the right direction.