Summary
➡ The article talks about how China is gaining wealth by keeping and buying more gold, while America is losing wealth as its gold stocks decrease. It suggests that real wealth should be measured in valuable assets like gold, not just paper money. The article also discusses disagreements within the Federal Reserve about whether to cut interest rates, with some saying it’s necessary and others arguing it could lead to more inflation. Lastly, it mentions that rising inflation, especially in basic goods, is a problem that can’t be easily fixed by raising interest rates.
➡ The article discusses the current economic situation, highlighting issues like inflation, job creation, and the impact of part-time versus full-time employment on the economy. It criticizes the way job numbers are reported, arguing that the focus should be on the economic output of jobs, not just the number of jobs. The author suggests that the economy is in a state of shrinkage, not growth, and that the increase in job numbers is misleading. They propose investing in physical metals like gold and silver as a potential solution to navigate through these economic challenges.
Transcript
All the stuff we’re seeing going on with gold and silver, folks, you want to jump on board, that is for sure. Before we get started, I wanted to, on the money side, address something that came up which I thought was a huge victory for us. The Arizona Supreme Court rules that a near total abortion ban from 1864 is enforceable. Right? So that was a Tuesday ruling of last week came out.
And, you know, it was a, it was standing that the criminalized abortion by making it a felony, punishable by two to five years in prison for anyone who performs or helps a woman obtain one. What did you think about that when you saw that news? When I saw it, I said, amazing. That’s just proof that God is still moving and active and alive in this world. And I think the only exclusion was for the mother’s life if she’s going to die.
But what a huge step forward, massive step forward when, when we live in a society where, I mean, I hate to say it so crass or vulgar, however you want to say it, but in Hollywood and everything else, kids seem to be dispensable, right? I mean, we live in a sick society, and now we see this start happening. It’s like somebody cares about life, somebody cares about kids in the Preborn kids.
And it’s like, this is amazing. And it put a huge smile on my face. Yeah. One of the things that I caught on to many others was that it actually happened August 8, right, is where President Trump actually came out and said, thank you for this ruling. And it tried to tell folks, like, don’t live in fear with this thing that’s going over, we see eclipses all the time.
I think that the enemy found an opportunity to make fear out of it. That’s why they said, oh, we’re going to strike absurn. We’re going to send three rockets called serpent, because they all, in my opinion, belong to the enemy. And so they found a way to try to put panic in everyone. Well, the panic is actually on their side because I think there’s, the tide is turning, and I’m really excited about how that’s playing out.
For all of us. So, good news on that front. Now, some other things that have been going on. You had some news to share on several fronts. Where’d you want to start? Well, I think I’d just like to start with the. The silver price action that we’ve seen over the last 60 days. So, you know, we’ve been. We’ve been having shows, like, on a weekly basis for, like, over a year, right.
And silver goes up and it’s come down. It goes up and it’s come down. And we keep talking about the fundamentals and the driving forces behind gold and silver. And I’ve had people that would call and say, kirk, it’s not moving. It’s not moving the way that you said that it would, and blah, blah, blah. It’s like, be patient. Sometimes markets can stay irrational longer than we can stay rational.
Right? But when the fundamentals are there, truth is truth. Right? And it will come to pass. And so, so, price action. You know, you look at when silver was. This is many, many, many months ago, it was like $23 an ounce, and it was coming down a little bit. And. And we talked on the show, it’s like, if it hits 22, 22 is a major threshold, and it goes below that, well, it could have a tendency to keep going down for a while.
But if it hits that and it bounces back up like a trampoline, that was a major support level. Well, that’s exactly what it did. Right? It hit 22, bounced back up. Now, we had a resistance level at 25. So why 25? 25 happened to be the 15 year moving average price of silver. Like a long term average. Right? So it. Over the years, it hit 25 came down.
Hit 25 came down. It was like this. This ceiling that couldn’t be broken. But if it breaks through it, that old ceiling becomes the new floor. Right? So. So what did we do? We broke through it in a big way. And so now silver’s like $28 over $28 an ounce, right? This week, it’s like, good grief. So not only did it bounce off of 22, blow through 25, we’re at 28.
Well, you look at what it’s done. Silver’s up over 15% in the last 30 days. It’s up over 24. 4% in the last 60. In 60 days, it’s up over 24%. So I was doing some research over the weekend, last weekend. And Comex, which is the global depository, the source for all gold and silver, where manufacturers buy their bars off of Comex and everything, over the last 18 months, LT Comex available inventories are down 70%.
70. So that means there’s 30% left. Well, in over 18 months to come down 70%, that’s a decline of inventory of 3. 8% a month. So what’s 30% that’s left divided by 3. 8? At current drawdown rates, Comex global silver supplies will be gone in eight to nine months. Gone. So what are the manufacturers going to do? And what’s the driving force behind that? It’s solar, it’s electric vehicles, it’s fuel cell technology, it’s electronics.
Right. And that demand isn’t diminishing even in a sluggish economy. So what we’re seeing is silver probably is going to hit ridiculous highs because we’ve got now the fundamental and technical confirmation happening at the same time. And so for everybody that’s been patient over the last twelve months, it’s like, oh my word, it’s happening just like we said that it would. But we’re not God, we don’t control the markets.
You know, sometimes things take a little bit longer than what we had hoped because there’s a lot of manipulation. But here’s where I think the manipulation game is ending, because the new numbers that are coming out show that China is the massive owner of precious metals around the world, right? So they, like, own the majority of metals. Like the majority, over 50% are owned by the asian economies.
I’m like, look at this chart here where gold is flowing east. China, 160 tons since April. India, Turkey, Thailand, Saudi Arabia, Malaysia, Hong Kong. Right? So wealth is moving from the west to the east. Oh, wow. So, so here’s where now that they own the majority, the west has lost its price setting capability because London and New York could, could actually set the price when we were the majority owner.
And for, because of the western banking, they wanted to keep suppressing the price of gold and silver. Well, now that China owns the majority of it of. And what do they want to do? They want to back their new central bank digital currency with gold. Their motive is completely different than the west. They want the price to go through the roof, right, because they’re using it as their backing.
So they don’t have price suppression. That’s not in their vocabulary. So now that they own the majority, I think this is a pendulum shifting moment. Lt where we’re now that wealthy has transferred from the west to the east in terms of gold and silver reallocation of the world, right? And they don’t have price suppression as a rationale in their vocabulary because they want it to just go through the roof as they want to back their currency with it.
This is really interesting time. So with that being said, Congress is seeing the same chart that you’re seeing, right? They’re seeing this outflow. So Congress sends a FOIA, a Freedom of Information act request to the Fed and said, we want to know what countries are repatriating their gold and how much is going away. Right. Well, okay, so a congressional freedom of information request to the Fed. What did Jerome Powell do? He thumbed his nose at him, basically, and said, I’m not giving you that information.
It’s like, what? It’s like, whatever happened to the rule of law in America? Lt. What, what happened to it? Because the Biden family gets FOIA requests often. It’s like, senators get it. It’s like, eh, we’re not going to comply. We’re not going to give them what they ask or we’re not going to comply with a congressional subpoena. It’s like, what do you mean? Is there no, is there no teeth to these requests anymore? People don’t seem to care.
So what Jerome Powell said was he said, well, we’re not going to give out that information. If you want it, go to the New York Fed. But they’re not going to give you the information either. So he deflected and said, but they’re not going to give it to you either. So they’re just not giving it up. Why are they not wanting to give it up? Because of that chart that shows China plus 160 tons, america -130 something.
Right? It’s like, wow. There is a mass exodus, a transfer of wealth from the west to the east. And the Fed doesn’t want people to know what they don’t have, right. Because it’s going to expose the game. It’s going to expose that they’ve lost, to expose that China and the BRiCS nations are winning. And they don’t want the world to know that. My goodness. I mean, this chart right here, when it, when it talks about flow net, imported gold from the west since April, or can you explain a little bit more to me what this means? Does that mean that they’re, they’re shipping golds from us to them to China? Is that what it means? So, okay, so let’s take, just take China, for example, okay? China is the largest mining country for gold on the planet.
How much of that do they sell? None of it. They keep it all. They’re also the largest purchaser of gold on the planet. So estimates are, if you if you look at like World bank numbers, World Gold Council, they estimate that China has about 5000 tons of gold. 5000 tons. Okay. But they don’t report the numbers. They tell the world what they want the world to hear. Right.
So, so when, when you are the largest gold mining country on the planet and you don’t sell any of it, and you’re also the largest purchaser of gold because they’re keeping mountains of gold, estimates are now that they don’t have 5000 tons, they probably have about 30,000 tons. Oh, wow. Because these countries aren’t reporting, they’re not reporting the true measure. So, so what these numbers are showing is whatever gold that the mines in those countries produce, they’re also importing x number of ounces.
So, like India is importing from another country those 80 tons and turkey, 62 tons in Thailand. And what is America doing minus. Right. So our gold stocks are diminishing where other countries are increasing. And this is the flow of what I would call wealth. So we need to stop thinking of wealth in terms of how many paper dollars do we have. Right, right. We need to start thinking of wealth and how many ounces of something that’s true and something that’s valuable do you control.
Right. Because that’s actually true wealth. So I was doing some math earlier today before we were recording, and, okay, this is going to be interesting. Back in 1920, 919 29, gold was like $20. 96 an ounce. And what was the average house price? It was $4,900. So it took about 230oz of gold to buy a house. Okay, fast forward to today. So with gold being $2,300 an ounce, roughly times 230, that gets you how many ounces it took to buy a house in 1929.
So we’ll take 230oz times today’s price. That comes up to $555,000. The average home price in America is 389. So if you would have actually just kept those 239oz of gold from 1929, you could have gotten a house and had $171,000 left over. See, but, but if you would have just had $4,900. Well, you can’t buy anything with $4,900. You can’t buy a house with $4,900 today, but your ounces of gold would still buy you the average price home in America.
Plus have $170,000 left over. Oh, wow. So this is where gold is going to maintain its purchasing power over time. Which is why I say we need to start measuring our wealth and how many ounces we control, not how many paper dollars we have. Right. Because 230oz of gold equaled $4,900 in 1929. 230oz of gold today equals what it equals 555,000oz. I mean, dollars. I mean, this is start looking at wealth as how much you can control what is the real tangible value of what that gets you, right? And so here’s where that, to me, is really important, because this is why the Fed basically said, we are not going to release that information, because it shows that America is on the road to serfdom, on the road to poverty, and where the east is on the road to wealth.
Because look at all the gold that they own. And they know this, right? So with that, you know, you start to go down some rabbit trails, right? When you start to look at what the Fed is doing, what they’re saying, what they’re lying about, and so they’re not going to comply with the FOIA request. But now I love it that there’s infighting in the Fed. All right, so, so, lt, when you were a kid, did you ever watch like, okay, I’m gonna embarrass myself? Because my grandpa, my grandfather, made me believe that professional wrestling was real.
Okay? So I’m like nine years old. It’s like, what? You know that that’s real, grandpa? I said, yeah, it is. It’s like, how many words? So silly. But you’d always have, like, these battle royales, right, where all the wrestlers get in the ring and they all start beating up on the one guy that you thought was going to win, and it’s because the masses start beating up the one he loses, right? So this is how I view the Fed today.
It’s like the battle royale because Jerome Powell is out there, and he spoke at Stanford last week and said, you know, I’m holding true to my course of action. We’re going to have two to three rate cuts this year, right? But then he kind of took a little sidestep and said, but inflation is persisting, so we might have to adjust a little bit. But no, we’re going to have two to three rate cuts because we won this battle against inflation and we’re really good at what we do.
So that’s kind of his mantra. So now you’ve got the Federal Reserve Board of governors and these Federal Reserve presidents, because the Federal Reserve is a system of banks. You’ve got, like the Kansas City fed, the Dallas Fed, the Atlanta Fed, the Minneapolis Fed, they’ve got a lot of federal Reserve banks. And so their presidents are the ones that vote for the official fed rulings. So listen to what they’re saying, so Atlanta fed president Bostic, so he says, we’re only going to see one rate cut this year and it’s going to occur in the fourth quarter.
This is what I’ve been saying for months, is they’re not going to have rate reductions because they can’t, because they haven’t won the battle against inflation. So if you lower rates in an inflationary period, the inflation is going to persist even more because raising of rates is what slows down inflation. But if you raise rates when you’ve got debt up to our eyeballs, you’re going to cause the biggest recession, depression in the history of America.
So this is why they just sit there and they say, okay, we’re going to pause this month. We’re going to pause. We’re going to pause. They’re not doing anything because they know either action is going to have a negative outcome, so they just do nothing. And we’ve talked about this. It’s like they’re going to do nothing for a while because they can’t do either alternative. But if they do do something, they might do one rate reduction because they want to save face.
Right? And this is what I’ve been saying for a while. And this is what the Atlanta Fed president says, we’re going to do it in the fourth quarter. It’s like, of course they are. Right before the election, you’re going to lower rates. So people think they’re winning this job and they’re doing something great and blah, blah, blah. Now take Neel Kashkart. So he’s the president of the Minneapolis Fed.
So he says something different. He says we’re not going to have any, any rate reductions this year. We’re not going to have any because we can’t, we haven’t won this war against inflation, right? So Kashkari is saying no rate reductions. This other guy from Atlanta says, we’re going to have one. Other Federal Reserve bank presidents are saying the same thing. We’re just going to have to post for we can’t raise rates, can’t lower them.
And so there’s this infighting where the people that are voting within the Fed system are deviating from Jerome Powell’s political message of, yeah, we’re going to have two to three because we’ve won. These people are, they want their jobs. They don’t want to go out there looking stupid. Right? So they’re saying more of the truth than what Jerome Powell is saying. Now there was an article this morning that I read that came out because the, the super core inflation numbers came out.
So what’s super core? So core inflation is everything that we buy, minus housing and basically gas. Right. So super core takes out even rent. Right. So the problem with supercore is it’s gone up. It’s gone up way more than what they thought, which is a staples of everything that we buy, food and things of that nature. And that’s very sticky. And so what the problem is with supercore inflation going up is economists know that supercore inflation isn’t really fixed with interest rate hikes.
If that inflation keeps persisting and you raise rates to slow down inflation, it’s not going to stop super core inflation. So it tends to be very sticky, and it also becomes a structural part of the economy. Meaning what they’re so nervous about is that these numbers are going up and it’s hard to fix them. We’re probably going to be stuck with higher prices for quite some time. Again, this is what I’ve talked about for a decade, is inflation is not rising prices.
Rising prices are a symptom of inflation. Inflation is nothing more than an increasing money supply. That’s why it’s structural. So you’ve got all this money that’s floating around, and now they’re starting to come out and saying, well, boy, this is a problem. This supercore inflation, it’s sticky. We don’t know why it’s sticky. It’s like, I’ll tell you why it’s sticky. I’m an economist, too. It’s because you’re printing money.
I was looking at this chart a couple days ago because the employment numbers came out. Boy, employment’s really good. This Biden economy, it’s amazing. We’re creating so many jobs, and this is ridiculously good. It’s like, okay, you look at the jobs that were created, and if you look at a chart, part time jobs going way up, full time jobs coming way down, it’s like, that’s not real. That’s not job growth.
Because let me put it into perspective. Let’s say that you were a software engineer at Microsoft, full time job, making 180 grand a year and doing really great, and you lose your job. So you go out and you get a bunch of part time jobs just to make ends meet, and you’re flipping burgers at Wendy’s, you’re a greeter at Walmart, and you get a third job at Taco Bell just to try to feed the family, right? Well, you’re only making half of what you used to make, but you’re working three jobs and working your fingers to the bone and there’s not enough hours left in the day.
So what does the job numbers tell us? The job numbers would say in that situation you lost one job, gained three. That’s a plus two overall. So they would say they created two jobs. But it’s like, wait a second, they’re part time jobs. Oh, it doesn’t matter. They’re only counting the number of jobs. What they need to count to have an accurate number is the economic output of those jobs.
Right. What is the net benefit to society? Because the net benefit to society on working three jobs means that those parents aren’t with their kids. It means that those parents don’t have benefits and health benefits because they’re all part time jobs. It means that societal decay is what that means. And so, but the Biden administration would say, we created two jobs. I just showed how that is absolutely detrimental to society because they’re not measuring the right thing.
They’re measuring the number of jobs with some are part time, not full time. But they need to measure the economic output of those jobs to show if an economy is really in growth mode or shrinkage mode. So it’s in shrinkage mode. So when you’ve got what’s going on, this is how you can have increasing job numbers. But GDP that’s coming down. This is where you can have wages that are coming down.
This is where you can have profitability from companies that are coming down because wait a second, jobs are going up. People should spend money. It’s like they are spending money, but they’re barely making ends meet. And so the stock market is ultimately going to come down. See, this is the problem and why you can’t take numbers the way that they’re reported and assume for them to be 100% accurate.
That’s right. So this is what’s happening in our world right now. And so this is where the numbers are making things lie. And so this is proof in the pudding. The Biden administration is saying, look at all these jobs that are created. This is why we have inflation because the economy is growing. See, a growing economy does bring inflation. That’s actually kind of a healthy inflation because people’s wages can keep up with the inflated prices.
And that means economic growth. But what we’re seeing right now is inflation not being caused by job growth, but inflation being caused by a printing of money with job reduction, wage reduction, that’s called stagnation, where you have lower economic output but higher prices and people aren’t working. That’s like the Carter years, but now on steroids. Right. And so this is the ugly reality of the world that we’re living in and it’s only going to get worse.
And this is why the Fed presidents at these banks are saying we can’t lower rates because we got to keep printing money. And the Brics nations that are rising up that are really putting a basically a monkey wrench into the system because they took away the petrodollar. Yep. The built in demand for our currency, which means we’re going to have to print even more. And here’s the Fed thinking, wait, we got to print even more money, but that’s going to cause more inflation and we know that.
And, but we can’t raise interest rates to slow that down because that’ll cause a depression. It’s like, what do we do? This is what happens when, when you don’t let normal market forces just play themselves out and you try to pretend you’re God and control the markets with interest rates and all this other stuff and what they’re doing. And it’s like, you know what, LT, we’re going to have to face the music as a country.
And what we can do to actually counteract that is allocate into physical metals, gold and silver, just like what China’s doing, just like what India is doing, just like what that chart showed us, this, this wealth transfer from the west to the east. And I would put it into christian terms. I’m not saying that these countries are evil or good, but you know what? I think there is going to be a wealth transfer from the wicked to the righteous.
Right? And when you start to identify this babylonian system, this evil money system that’s based on debt, and we as believers, a, get out of debt, b, identify what’s going on. C, act with wisdom and discernment and discretion and creativity and do the right thing and allocate into strength. We can have a smile on our face given the times that we’re living in. That’s our goal and that’s our motive.
And shouting this from the rooftop every single week is we can thrive even in the horrible economy that we’ve been talking about. How I can have a smile on my face, I’ve taught you. It’s how you can have a smile on your face. Because even though the world’s getting darker, we know that there’s solutions that we can take advantage of. That’s right. That’s why it’s amazing to see silver and gold go up.
Of course, that’s helping my IRA with you guys. So thankfully we jumped on board when we did. And it’s not too late, right? Anytime folks can give you a call, they can reach out to you and get that whole thing started. They can even ask all the questions that we can’t cover here in just 20 to 30 minutes. So looking forward for more of you guys to go to amwaynode.
com gold in the description box below this video. All you have to do is reach out to Doctor Kirk Geldy and his team and they will take you on a wonderful journey on what you can do through this crazy time that we live in. That’s for sure. Well, it’s my pleasure to help. It’s my pleasure to be called and used and anointed to do this. And so it’s a pleasure being with you every week.
Lt. I love helping all the end we know viewers because it’s just a blessing to us. They’re amazing. And we’re looking forward to the crews this August 11 through 18th. We’re going to have Doctor Kirk Elliott with us and it’s going to be great to hear you, talk to you on stage with so many folks. It’s going to be great. It’s going to be fun. Can’t wait. All right.
We’ll talk to you again next week. Sounds good. .
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