A $33’000 Gold Price Might Seem Crazy (Uncut) 02-26-2025

so the reason uh there are bulling Banks and the central banks hold gold is is because that’s the major mechanism to keep you in their game and I think as we’ve seen uh lately that game is on its last leg the lbma fractional Reserve game just like the London goldpool uh game uh ran for about eight years or a few years and then collapsed in 68 I I think we’re very in very much the same juncture Wednesday February 26 2025 Manco 64 home of alternative economics and contran Views well today we’re going to look at

M2 uh which is a measure of money supply and how it’s uh started picking up again the growth of M2 and we’re also going to look at uh the uh M2 adjusted price of gold because if you think about it uh M2 is the money supply really and what has been money for thousands of years well it’s gold so we’re going to look at the data going back to 1960 and today and do some uh uh comparative analysis of the gold price back in uh the 60s and now and what happened to the gold price and uh what kind of uh mechanisms

uh the central banks and the treasuries of the West were using to control the gold price before we do though just like to talk about a few things uh that’s uh that are going on really out there in the world uh the first one that I think is important for us here in the UK and and also in the EU or on the continent is uh the fact that um our governments our states the yeah the state here in the UK in the EU or Germany or wherever else in Europe uh they’re having a very tough time they’re in trouble and why is that

well the usual suspect is uh unsurmountable debts uh corrupt government big government and uh there resorting to fear uh and the prospects of war and that is not surprising and unfortunately I think it’s going to continue uh we’ve seen that uh yes the Prime Minister here kir starmer is going to increase uh military spending albe it it’s not a huge increase but he’s talking about sending troops to Ukraine uh and the the whole of Europe seems to be on a suicide mission and it seems strange to me but

uh if you really uh dig under the surface surface it’s all to do with a failing State uh and uh there’s nothing better to keep uh your subjects or your citizens under your control uh than uh pushing a lot of fear uh Fear of Everything fear of War fear of enemies like Russia right uh yeah there’s the old saying that war is the health of the state so what do we do in such a situation I think uh we need to try to not to fall for that the Trap of being fearful and um yeah try to uh try to tell people as

much as possible what you think is really happening so what’s the other uh topic I wanted to talk about before we go into M2 well uh the US economy we’ve seen uh weaker numbers again uh yesterday consumer confidence was a lot lower than expected and we’re even noting that the you United States Treasury secretary Besson has admitted he he he said that uh the economy is more fragile under the surface than economic metrics suggest so and that’s very significant I think because coupled with what we’re going to

see in M2 uh it’s not a good combination a slowing economy maybe even a recession and uh money Supply growing at the fastest space in a few years uh that’s going to lead to more stagflation and uh before we segue into money supply just wanted to uh make you aware that uh miles Franklin uh my us precious metals dealer uh still has some really great specials he’s got these here uh they called Junk silver he’s got uh half dollars pre-65 the 90% silver he’s got dimes uh and quarters and uh they’re all at very

reasonable uh premiums compared to uh the market price and uh I I know this because I I was with Andy in janary and uh he’s got quite a bit uh of uh the specials here but they’re not going to last that long is the pre-33 uh go gold uh pieces US Gold pieces so as you can see here he’s got $20 St Goden coins random ears uh only $50 over melt and they’re beautiful coins and I can show you one of mine so there you go that’s the St Gardens uh there you go this one is uh 1908 uh so yeah if you’re interested if

you haven’t started moving your Fiat uh depreciating fat dollars into real money think about contacting miles Franklin and telling them that Mario or Manco 64 uh sent you there uh all the details how to get in touch with them are below in the description so back to M2 well I think the first thing we need to do is look at the definition of M2 so I I’ve gone to uh in Investopedia M2 definition and meaning in the money supply it’s very simple so what is M2 M2 is the US federal reserves estimate of the total money supply

including all the cash people have on hand uh and coins I would say as well uh even though those are not become they’re becoming less and less important plus all the money deposited in checking accounts savings accounts and other short-term savings Vehicles such as uh certificates of deposits or CDs uh and retirement account balances and time deposits uh above 100,000 are emitted from M2 so that’s what M2 is uh and M2 M1 of course is just a the uh cash and coins and I have to add tra checks which is something that people

don’t use anymore but technically it’s part of M1 and then M2 you add M1 plus the uh money on deposit and checking accounts and savings accounts and short-term savings so that’s how it works and let’s go back uh to let’s say 1885 just picked a random year and uh we were uh or the US was on uh physical money standard gold and had silver as well circulating so all the money supply was gold and silver yes some people deposited their gold and silver in Banks and they got uh the bank notes right uh the promisory notes and those were from

like different banks there was no Fed so yes and the bankers of course uh they they uh a lot of times lent out and gave out those notes without having the gold or silver backing that’s called fraction reserve and it’s been happening since time in Memorial because the goldsmiths the money changers uh they realize that people uh don’t come every day for their uh money with their promisory notes so they’re able to get away with it which is kind of not right but uh that that’s the way it is and the way

I’m the reason I’m talking about this is that uh when we’re going to look now at M2 adjusted price for gold uh we’re also going to look at uh the gold cover which means uh that uh you don’t need as much gold in order to to back the money supply and it’s mainly because of the fractional Reserve uh situation so just wanted to show you here uh Zero Hedge came out yesterday uh and it’s weird because I I was looking at this topic prior to seeing this uh post on X I was looking at M2 I look at it regularly to see what

it’s doing and I had the idea of making this video and lo and behold uh uh sorry Zero Hedge says M2 Rises at fastest Pace in 30 months and uh I hadn’t Cal calculated the pace like they had I I had seen though that as you can see here that M2 is uh almost back to the levels where it was in April 2022 uh when M2 reached uh its record of around 21.72 trillion right now we’re back to 2.56 trillion yes uh it did uh unwind that’s real deflation we had deflation uh by October 2023 uh M2 was uh down to 20 around 20 uh6

trillion but now as you can see it’s picking up and if you can remember well out here um during Co M2 was way below where it is now was 154 trillion and it really picked up it was the probably the biggest increase in the money supply ever I think 75% of all the Federal Reserve notes or the money supply were created uh in that period short am short amount of years which is amazing and it’s interesting because when I went to the US I got some uh Federal Reserve notes or dollar bills if you want to

call them and with the exception of one or two they are all signed by Steve minuchin uh which is not surprising because it was under his watch as Secretary of the Treasury that all this uh currency was printed and he had to sign it so it wasn’t just the Biden Administration that got the inflation going it was also the Trump Administration a and I’m and I’m not uh saying that what Trump is doing now isn’t good but I’m just uh giving credit where it’s due but anyway back to M2 so I saw this yesterday I thought wow it’s

growing back again almost uh back to record highs and uh and Zero Hedge confirmed that it’s growing really fast and despite that the economy seems to be slowing down as the Secretary of the Treasury said so what about gold and M2 and by now uh hopefully you understand why uh M2 is so important to determining the gold price so I thought I’d look at uh M2 back in 1960 because as you can see here you can go all the way back to 1960 and it’s easy to know uh what the gold price was then because it was fixed

at $35 per troy ounce so I I did a little calculation I took uh M2 at the end of 1960 and it was at uh $12.4 billion it wasn’t in the trillions yet and then I had to uh find the gold Holdings for the US how much gold did the US uh per port to to have you know how much do they say they have and it’s easier to find if you go gold reserves on Wikipedia it gives you the gold reserves of all major Nations but it also gives you a really good chart of official US gold reserves uh from 1900 to 2008 and if you go to

1960 uh you can pretty much estimate that the looking at the chart that Us official gold reserves were at 15,000 uh metric tons which is uh well almost double where it’s now but as you can see as well it had been dropping ever since uh the well late 40s early 50s uh it got up to uh around 22,000 tons back uh just before the 1950s so yeah I converted of course metric tons into uh troy ounces and uh the reason I say troy ounces is because it’s really important that you different differentiate between ounces and troy

ounces because uh one uh Tri oun is 31.10 35 G and one normal ounce is 28 gam so that’s why people say troy ounces but anyway the in troy ounces was 48226 million uh ounces of gold reserves so it’s very simple uh you take the money supply 312.50 billion divide it into the gold Holdings and I got a number of 666. 45 no I’m not trying to give a message here with these numbers it just accidentally came to that uh and as we spoke earlier about the money changes in the fractional Reserve uh mechanism

um we could say that the the gold price should be let’s say a a third or or 40% you know uh the the FED had a a bylaw had to keep a 40% gold gold cover so let’s see what that would mean in terms of price 40% gold cover well uh that would be a price of uh 266 uh .58 so you might be asking now well H how how were they able to keep that $ 35 uh dollar price uh during the 60s well there are two reasons why they’re able to keep first one that is that the uh you couldn’t trade gold in the US up until 1975 it was illegal so

you could keep that statutory price of 35 uh but the problem was the international market in London and Zurich uh and they had a problem because I’m sure people were looking at that uh at the money supply people like uh John axter at the time who started buying gold even though it was illegal there were ways around it to they could buy foreign coins that were considered numismatics uh James Dy started looking into this in the 60s and he told his friends on Wall Street that the price was going to go way through that 35

level and he was basically ostracized and had to leave Wall Street but the other way that they were able to keep the price at 35 is that they uh created something called the London Gold pool and London Gold pool and that was the US Treasury and the major treasuries of the major European countries like uh Britain Italy Germany France Belgium and the Netherlands they got together and they used their gold uh to uh keep the $35 price there they they probably used a lot of paper gold as well they did a

lot of leasing like the lbma has has been doing for the last 30 years back then and they were able to keep that $35 price up until 1968 when confidence in this London pool scheme uh broke and the French started saying no we don’t want to do that anymore and they started taking uh their gold uh they started redeeming dollars and it broke the whole system and eventually it broke the whole bretonwood system in 1971 and uh that price of 666 uh was not like outlandish if you waited and if you’re patient enough

because by 1980 of course gold got almost up to 900 uh so where are we now you you must uh be asking well right now the money supply we saw that it was let’s say uh where was it uh let’s have a quick look 2.56 1 trillion right so we do the same thing that we did for 1960 uh we TR take that money supply the gold reserves now though are a lot lower they’re like kind of half of what they were even not not so good 261 million troy ounces were thereabouts and uh at 100% cover for the money supply with

gold I I get 82,6 110.71202012 uh it shows you how old I am my dad uh my dad uh used this and uh it’s the the reason why I used it uh he said you should get one anyway uh if you use 40% cover the gold price would be uh 33,000 uh which doesn’t sound that outlandish but one thing so we’re going to stop right here and you can do this exercise yourself use the cover that you want you can use 100% 50 40 30 whatever you want but yeah one thing I wanted to say especially with what went on yesterday with the

gold and silver price uh yes it’s kind of uh annoying and uh disturbing to see these big moves but it’s part of their scheme uh to keep uh people away uh from uh gold and silver is to make it uh the paper Market very speculative once in a while you see these uh sharp moves down and it puts people off uh and the reason they do that of course is because they don’t want you to have physical gold and silver they want you to stay in their fractional Reserve fiat currency system because that’s how they

keep control of you and uh have you ever wondered why if we’re not supposed to be under a a gold back system or have you ever wondered why if gold is not that important why central banks hold it and why they’re uh bullying Banks I mean a lot of people uh the majority of people I would say don’t even know what bulling banks are so the reason uh they are bullying Banks and the central banks hold gold is is because that’s the major mechanism to keep you in their game and I think as we’ve seen uh lately that game is on its

last leg the lbma fractional Reserve game just like the London Gold pool uh game uh ran for about eight years or a few years and then collapsed in 68 I think we’re very in very much the same juncture and uh yes what you need to know as well in my opinion is that when this scheme unravels uh there’s not going to be any Bank out there and uh yes a lot of people are going to ask me what about credit unions or this and that no there’s going to be no safe Banks out there and that’s why I think it’s really

important that you keep as little as as possible of your savings with these Banks uh I I guess you have to keep some for day-to-day transactions and for emergencies and if you’re running a business you you need some liquidity but I don’t think they’re safe at all uh and uh there will be a a day when uh yeah everything unravels and gold and silver are going to come back uh and I think it’s already coming back despite uh what might happen in terms of revaluation or Fort KNX the fact that you have

um Tucker Carlson interviewing Luke groman about gold for an hour and a half uh the other day is very significant gold is back in the uh public domain people are talking about gold not as jewelry but about how important gold is to the system and I highly recommend you watch this uh interview Tucker Carlson has a YouTube channel he also has a his own website uh which you have to pay for which isn’t that bad actually I actually pay for it and some people say well Tucker Carlson is CIA and he’s a mocking

bird uh media um maybe so but I think he’s bringing out a lot of truths out there and we have to uh give them some slack because uh people change their minds you know when you grow grow up uh or you grow older you realize things I didn’t know uh a tenth of what I know now 30 35 years ago um and um yeah so there you go um I’m going to stop right here uh the markets are pretty steady this morning um and um yeah we’ll keep in touch and uh I hope you’re all doing really well and uh I wish you all also a very good day take

take care bye