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Mike Maloney: Everything Bubble Collapse – 25x More Capital Into Gold

Tom welcomes the well-known Michael Maloney to the show. Mike discusses the outstanding professionals he works with to create Hidden Secrets of Money, which has done very well on YouTube, with the fourth episode having reached ten million views.

He details how modern banks simply imagine money into existence with loans. Mike discusses the important distinctions between currency and money. Currency cannot store value over long periods of time, whereas honest money, like gold and silver, maintains its purchasing power. For the last 5,000 years, the predominant medium of exchange has been precious metals. The period of the 1970s was the biggest bull market for honest money, and we are overdue for a similar period.

Currencies are constantly devalued by creating more units of them, which is inflation, and they make poor measurement tools for value. Various asset classes move in long-term cycles, and we’re approaching another bull period for gold and silver; we’ve been stuck in a difficult mid-cycle correction since 2011.

The Federal Reserve creates currency when they decide to purchase an asset. However, they are only allowed to buy in the open market; this was supposed to create price competition. Their open market, however, is different than the public’s. They use the primary dealer investment banks and brokerage houses around the world. These are not banks in a conventional sense.

He discusses the concept of currency units per person, and the idea that currency has to end up somewhere and inflate some asset class. Low interest rates create more currency due to the increased uptake in loans. This, coupled with direct stimulus, means someone has to repay this new money eventually.

It used to be possible to borrow and increase GDP, but this is increasingly difficult today. This was back when real businesses were being built, but as a society, we’ve increasingly gone into debt. We’ve reached the point of no return where we can’t borrow ourselves into prosperity.

Central banks are increasingly buying gold, particularly the eastern banks in China, India, and Russia. Mike discusses recent changes in gold buying by the United States during the pandemic and how the U.S. has now returned to being a net seller of metals.

Whenever the middle-class becomes impoverished, we see political risk. Gold and silver is the only thing you can buy that doesn’t entail counterparty risk. If you don’t already have metals as insurance, you may find it impossible to obtain in a crisis. He explains why a lot of money is going to chase after gold and silver during the next bull market.

Time Stamp References:
0:00 – Introduction
2:43 – Banks & Money Creation
5:17 – Currency Vs. Money
10:35 – Price Vs. Value
16:22 – Money Printing & Theft
23:43 – Bernanke & Responsibility
31:22 – Treasury Remittances
35:55 – Doppelganger Dollars
47:12 – Gold & Silver – New Book
49:05 – Reverse Robinhood
49:57 – Socialism & Division
54:50 – Almost Everything Bubble
59:00 – Excessive Taxation
59:56 – Currency Units & Inflation
1:04:30 – Budgets, Taxes, & Crisis
1:09:05 – Solutions & Smart Money
1:14:40 – Gold in a Crisis
1:26:40 – More Book Details
1:28:20 – Wrap Up

Talking Points From This Episode

  • Modern banks can imagine currency into existence with loans, but it cannot store value over long periods of time, whereas honest money like gold and silver maintains its purchasing power.
  • The Federal Reserve creates currency when they purchase assets, but this new money must eventually be repaid.
  • Gold and silver is the only thing you can buy that doesn’t entail counterparty risk, and it is expected that a lot of money will chase after it during the next bull market.

Guest Links:

Our team is lead by Mike Maloney, the founder of GoldSilver, host of Hidden Secrets of Money, former Rich Dad/Poor Dad advisor, and bestselling author of Guide to Investing in Gold & Silver. Mike travels the world sharing his economic insights with audiences from Hong Kong to Rome to Silicon Valley to Wall Street. A veritable YouTube sensation, Mike has nearly 50 million views and counting.

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