The End Game Is Absolutely Inevitable (Uncut) 03-18-2025

The End Game Is Absolutely Inevitable, Says Phil Low.

So you could think of it almost like a rubber band. So here is the $42, is the base, and then the present keeps going farther and farther and farther and farther and farther away from it. And eventually it’s going to snap, right, because this is going to lose all relation to this and the rubber band snaps.

Now what the revaluation, what they’re talking about, what the people who do not understand money saying is, if we revalue this to $3,000, it’ll just go bloop, and then there will be no more stress on the banking system, there’ll be no more stress on the monetary system anymore at all, right? We’re just going to go boop. It’s just a technical, it’s just a balance sheet issue. It’s a gimmick.

It doesn’t mean anything, but it’ll help the Treasury Department pay some bills. I could have an ounce of gold for $42.22 on an infinite time horizon at the end of time, or I can have it right now for $3,000. So if I bring that to the present day, now I can say, well, I can have at the end of time itself, I can have $3,000, I can have gold for $3,000 an ounce, or I can have gold for $3,000 an ounce right now.

So what are you going to do? People say, well, I’m not going to live till the end of time, so I’m going to take $3,000 right now. So everyone rushes out to buy gold, and that skyrockets the spot price of gold. So once again, back to the rubber band, it just shifts over, and so now the statutory price is $3,000, and the market price is $15,000, $20,000, $30,000 an ounce.

And this will happen within a couple of days as well. Monecco64, home of Alternative Economics and Contrarian Views. Today I have the pleasure of speaking with Phil Lowe.

He hosts a channel called The Bidder Draft. You can find him on Rumble. He also does live streams, I think, and videos with Rafi Faber of The Endgame Investor.

I think you’ve been here on the channel once, haven’t you, Phil? Twice. I did once. I did a Sunday live stream with you, Clive, and Rafi, and then I did a interview.

Yeah, it was great to see you back. How are you doing? Always a pleasure. Actually, I watch you every morning, Mario, so I’m a big fan.

Thank you. Thanks. So I wanted to start out with the new administration and President Trump, and you think no matter what he does, he’s going to face the endgame.

So maybe you could start by explaining to me and the viewers what you think the endgame is going to be like, and then second, how you think he’s going to deal with it. I know you made this video before he took over, so maybe your opinion has changed on how things are going. Sure.

So my next video is actually going to be advice I would give to President Trump were I on his council. So you’ve somehow dived into my head and knew what I was going to do next. But I can give you a preview right now.

So the endgame is absolutely inevitable. There’s nothing that Donald Trump or anyone else can do because we have essentially printed notes for money we don’t have. And if you math it out, theoretically there’s 8,300 tons in Fort Knox.

We’ve printed notes for 90 million tons of gold. So there’s nothing we can do to cover this. We must default.

Either we do a technical default where all the banks go out of business and we revalue to gold on just the cash front after a deflationary crash, which is sort of what happened in 1929. Or we have a hyperinflation where we just we try and you know that the government tries to keep this party going and it fails and the currency goes off into worthlessness. And then we revalue and chop a bunch of zeros off.

Those are the those are the only two possible outcomes. They’re equally miserable experiences. They’re slightly different in how they and how they go through.

But the result is the same. It’s a revalued currency and people rebuilding their savings, their real savings from scratch, starting at a much lower position from where they were. Now Trump’s economic advisors are not the best.

There’s like Peter Navarro and Steve Bannon and I’ve I’ve I’ve listened to them speak and they have the wrong mentality about this. Their mentality is that they can save the fiat dollar, that the dollar that this dollar can in fact be saved, but it cannot. So because they think it can be saved, they’re thinking, oh, if we cut spending, if we put up high tariffs, if we bring manufacturing back, that we will somehow keep this.

We can keep the fiat dollar going. We don’t need to go back to the gold standard. The problem is the way the scam is structured is that the debt must grow exponentially or you fall into a deflationary collapse.

It absolutely must. So to get the debt to grow exponentially, the dollars must leave our shores and never come back because we need foreigners to buy our to take our dollars and give us stuff. And we need to we need we in America need to sit down, sit down, get into debt and don’t do any productive work.

That’s just the nature of the scam. It’s how it works. So if the if tariffs go up on our side and the dollars, the dollars can’t leave and get stuff in, then we enter into a deflationary crash, right? The banks can’t generate any more debt in America.

And therefore, you know, the people, the banks start going out of business and shutting down. And this, you know, the whole deflationary cycle starts, the whole deflationary crash. Now, if I could advise President Trump, what I would say is that you need to take the Javier Millet approach to this.

Stop telling everybody, because right now Trump’s messaging is, oh, we’re going to once we’re done, like the only problem you’re going to have is you’re going to have so much money, you’re not going to know where to spend it all. That’s literally his message right now. He said this, you know, on his press conference, oh, I’m going to make everybody here so, so, so rich.

You need to take the Javier Millet approach where you get on TV and you say, we have no money. You know, no hipata. That was that was that was his inaugural address.

No hipata. We need to Trump needs to be saying that right now because he’s setting up he’s setting up expectations for things that he cannot possibly do. And people like you and myself who are telling people to invest in silver and gold or to buy you can’t really invest in it because it’s money.

I’ve said this before. That would be a getting off a tangent. But to buy to purchase silver and gold with your fiat currency, we are telling people to do that.

But a lot of people that are big supporters of Trump maybe would otherwise listen to you and I. If Trump was not saying, don’t worry, I’m playing 40 chess here. I’ve got this all under control. And you know, you’re going to be you’re going to be unbelievably rich when I’m done here.

So the messaging he is giving out right now is going to impoverish a lot of his most fervent supporters who believe in his mission. And I don’t I don’t think he’s nefarious. I mean, you know, there’s there’s always the chance he is.

There’s something nefarious going on back there. But I don’t think it’s nefarious. I think he just genuinely believes that he can control the fiat dollar, which he cannot do.

And so I would say that we on the sound money front must continue our messaging and not treat the president as an ally on this front yet until he realizes that he cannot control this situation and starts encouraging people to move into gold and silver directly. Yeah, you said something about investing in gold and silver that you can’t do it, and I agree with you, but there are times when the. Well, the monetary system that we have is so out of whack that it almost becomes like investing.

I would say I think, you know, it is only in the gold standard or a sound money system that, like you said, it’s money. Sure. So invest the definition of an investment is a vehicle to get more money.

That’s what it is. That’s why people invest. That’s why you loan out your money to bonds and stocks is because you want more of it later on in the future.

Gold is gold is money. So investments are vehicles to get more gold fundamentally. Now, there is there is the dollar in between those two things that is sort of muddying the waters.

But at the end of the day, gold and silver are money itself. They’re not they’re not vehicles to get more money. They are they are, in fact, money.

Now, the way it feels like an investment is because they’re they’re purchasing power in dollar terms is going up faster, especially now going up faster than investment vehicles are able to generate more dollars to generate to be able to get more gold. So you’re better off buying the gold and silver right now than you are trying to invest to get more dollars to get more gold and silver later. So that that’s why it feels like it’s an investment.

Yeah. And you spoke about some of his advisers like Navarro and Bannon. Yeah, that they’re very pro trade war and tariffs.

And we’ve seen just as we’re talking today that President Trump threatened Europe with the 200 percent tax on on on wines from the EU because the EU is put a tariff on U.S. whiskey. I mean, are you of the view that this could trigger what we had in the early 30s? Some people blame the Smoot-Hawley Act for the Great Depression, even though I think it was part of it. I mean, President Trump argued correctly that this could benefit wine producers in the U.S. right.

And you could see more wine growing here. But I think when you start a tariff war, it can backfire and it affects like your supply chain in ways that you never thought before. And I don’t think President Trump and his economic advisers and also other countries who are retaliating, I don’t think they realize how dangerous it is.

And is that why you think there’s a danger of a deflationary collapse, let’s say, in the West? Yes. So we have to we have to separate this into two points. What what tariffs would look like under honest money and what tariffs look like under this inflationary system under honest money? Yet tariffs are tariffs are a tax.

And, you know, isn’t if you’re an anarcho-capitalist or an Austrian school economist, you’d say all taxes are bad and have inefficiencies. So I don’t I don’t particularly like tariffs. I think they’re probably better than an income tax if you’re trying to raise revenue like we were in the 1890s.

But they’re not you know, they’re not good because they they they do encourage domestic wine production. That’s if we were to use wine, for an example, yes, California wine growers would do better. However, everyone that consumes wine will end up paying more money.

So wine becomes more expensive for the consumer. So everybody except California wine growers is worse off and California wine growers are better off. And there’s a lot more consumers of wine than there are producers of wine.

So in general, in an honest monetary system, no, tariffs are not good for for economic growth. Now, the inflationary monetary system, as I said, the dollars, like I said, the dollars absolutely must leave our shores and they can’t come back. If they come back, then we go into then we then we experience hyperinflation, you know, galloping inflation because the dollars are flooding back in.

Now, fortunately for fortunately, we don’t really make anything anymore. So there’s not a lot of reason. There’s not a lot of stuff to buy in America that Americans make to to export.

There are some things, but there’s not a ton of it. So what what Trump is inadvertently, he doesn’t realize what he’s doing, but what he’s inadvertently doing is crashing. He’s crashing the expansionary monetary credit growth and he’s going to cause he’s going to cause a panic like 1929.

Now, I want to give the viewer and yourself some notes of some notes of real optimism here. The Great Depression was not caused by the crash of 1929. The Great Depression was caused by the socialist response to the crash of 1929.

So Roosevelt, you know, confiscated all the gold, you know, and instituted all these like, you know, trade trade trade restrictions and, you know, quadrupled quintupled whatever the size of government made all these new agencies that were running around wagging their fingers at free industry. And that ground everything to a halt, particularly the gold seizures. Right.

So people would have, you know, gone and put their money in a bank. But if you put in when I say money, I mean gold. But if you put your gold in the bank, the government’s going to come along and take it.

So what are you going to do? You’re going to bury it in your backyard. You’re not going to use it anymore. All right.

So that that that ground things to a halt and really stopped free flow of goods and services. I think Trump is more free market than that. Now, on the other side of this, Steve Bannon has said things that I really do not like.

He has talked about confiscating wealth from the rich. He said the rich, the rich have been skating on this forever and they need to pay their their fair share. When you do that, the rich will bury their gold just as they did in 1929.

And we don’t want that. Now, we we do want to end the inflationary system. The people who are rich now have gotten rich by standing next to the money printer.

It’s called the Cantillon effect. You know, you just stand next to the money printer to get rich. That doesn’t mean they were bad people.

They just were following the price signal. The price signal said, hey, stand close to the money printer and you’ll get rich. So someone like Elon Musk makes a rocket company that primarily caters to the government.

You know, SpaceX. It mainly does business for NASA and gets taxpayer funding for that. He made a electric car company that was responding to a bunch of government subsidies for electric cars.

Right. I don’t know. I don’t know if there’d be a massive electric car market if there weren’t a bunch of subsidies encouraging people to move into electric cars.

Right. Most most of Elon Musk’s companies are government funded and government subsidized in some way or another. That doesn’t mean he’s a bad person.

He was just following the price signals most do. Now, that doesn’t on the when the crash occurs, that doesn’t mean that Bannon or if Bannon wants to raise revenue, that doesn’t mean we should seize Elon Musk’s wealth without recompensation. That’s what people are complaining about in South Africa right now.

They just passed a bill that they can, you know, take white farmers land without red without compensation and just seize it and give it to whoever they want. And then you end up with Zimbabwe where people are starving to death and the currency circumsiding. So I strongly encourage Donald Trump not to listen to Steve Bannon on the economic front.

Peter Navarro is a little bit better. He’s just a he’s just a big fan of tariffs. But as far as I can tell, he is free market internally, if not externally.

Yeah, you spoke about the Great Depression, and I agree that Roosevelt interfered a lot. The New Deal and he did pass that executive order that kind of pushed people into handing in their gold. But even before that, from what I’ve read, Herbert Hoover was interfering as well.

And I also think the banks, I think people lost a lot more money with bank failures during the Great Depression. Isn’t that isn’t that right? And do you think that the banking system right now is like above board? Because we saw in 2023 those bank failures in the beginning of the year with Silicon Valley Bank. Do you think the banks are safe, safer now? No, not at all.

But let me let me go back to Herbert Hoover real quick. So that that entire period, that early that late 1800s, early 1900s was the progressive era. And the progressive era was intellectually it was if I could explain if I could sum it up very quickly, the progressive era was marked by the thought that nature nature is messy, nature is sloppy and nature is suboptimal.

Right. So we’re letting these we’re letting these regional bank managers in Topeka, Kansas and, you know, Podunk, Mississippi, we’re letting these individual banks set their own interest rates and they’re getting it wrong because they sometimes they get the interest rates wrong and they run out of money and they raid their demand deposits and then then they have a run on a bank. Right.

So this has always happened in banking throughout time. They said, if we can get our hands on the demand, you know, they mess up the time deposits. Right.

So, excuse me, let me backtrack one second. A bank has two primary functions. One is the demand deposit.

So you go and you put your gold and silver in a bank and you get notes off of it. And at any time you can come back and you can reclaim your gold and silver. That’s called the demand deposit.

It’s checking account. Right. The other service that a bank provides is what’s called the time deposit.

So that is where they match. They find a lender and they find a borrower and they match them together and they say we will give you yields. Now, you have to you have to pay for demand deposit.

Nobody is going to sit there and offer you money to vault your gold for you and just look at it. Right. So you have to if you want somebody to protect your gold and have armed security and the big vault and the alarm system and the insurance, all that stuff costs.

So you have to pay for demand deposit. Now, many people, especially if you have large deposits, they balk at the cost of that and they say, well, why don’t I loan some of it out in a time deposit so that the banker acts as a middleman. So he finds the he finds somebody who wants to borrow money and he connects them to you and you get a you get a percent of yields on your loan and the bank gets a small cut of the yields as well.

Now, the problem with time deposits is sometimes the banker messes up. Right. He loans out your money to someone who can’t pay you back.

Right. The business didn’t work out, whatever. So the banker sitting there tossing and turning at night, he says, oh, my God, I have loaned out of, you know, I’ve loaned out this bad loan and they can’t pay me back.

And the time deposits coming due. What do I do? What do I do? And so he looks at the giant pile of gold sitting in the man deposits and he says, you know what? They’re not all going to come back for this gold at the same time. So I will just take some gold out of the man deposits, use it to pay off the time deposit, you know, and I’ll figure it out later.

Right. The trouble is there’s once you have once you’ve done that, you’ve created Schrodinger’s dollar because you have you have a dollar sitting in the demand deposit and you have a dollar. You have that same dollar that was used to pay off the bad loan.

And there’s no there’s not there’s only half the gold underlying that. Right. The gold can only satisfy one of those two dollars.

So you have guaranteed at some point someone somewhere is going to have a bank run because there’s not there’s no longer enough gold to satisfy all the notes for gold. Now, excuse me, the the. Where was I going with this? Herbert Hoover, I think.

Oh, yes, yes, yes, yes, yes, yes, yes. OK, so the progressive era said these these when a bank has a bank run, it collapses. Right.

And the bank collapses and everyone had their deposits, loses everything. And this this has always happened throughout time. There’s always some banks fail.

And the competition between banks in general keeps the market healthy, the market overall healthy. But banks inside the market do occasionally fail. And it’s a it’s a real tragedy for the people who have had who put their investments in a bad bank.

Now, the progressive era, the progressive intellectual said, OK, we see this problem. Here’s the problem. These bankers, these you know, these individual bankers are messing up.

So what we’ll do is we will create a central bank and the central bank will manage the interest rates for all these people because these these these bank managers can’t do it right. And so they formed the central bank in 1913. The Federal Reserve was formed in 1913.

The other banks have preexisted this. But the progressive movement is the intellectual underpinning for central banking. Now, of course, they made a huge they made a whole hash.

They made it much worse. You had the boom of the 19 teens and in the 1920s. And then you had a huge crash in 1929.

Now, Herbert Hoover, even though he was a Republican and the the progressive movement was worming its way into all other intellectual disciplines and even people who were previously be considered, you know, you know, real hardcore free marketeers. You know, there’s that saying there’s no there’s no atheist in a foxhole and there’s no free marketeers in a crash. Right.

When there’s a crash going on and everyone’s losing everything and not just a bank or a few banks, but every bank in the country is going bankrupt at the same time, you know, the president, it’s almost obligated to to try and get involved somehow. Now, there’s nothing there’s nothing he can really do. But the intellectual movement will say, well, just print more notes and we’ll inflate our way out of this.

And now we have the modern banking system. So to answer the question about the modern banking system, no, we have been the central bank has been printing inflationary notes over the banking supply, over the real money supply for almost a century now. The real money supply is the 8300 tons in Fort Knox, which is probably not there or at least not all there.

And like I said, we’ve printed notes for 90 million tons of gold over which we have 8300. So we are in exponentially worse shape than we were in 1929 as far as the financial system goes. But once again, I want to stress that doesn’t mean we’re going to have something exponentially worse than the Great Depression.

We don’t have to. A financial panic is just a financial panic. If the market is allowed to clear, despite the despite the fear and the shock of the financial panic, you can actually recover very, very quickly.

So if you look at something like the French, the hyperinflation, you’ve read the book, The Hyperinflation of France. All right. That was a miserable experience.

Yeah. Yeah. Hyperinflation of France in what? I think it’s 1783, right? No, it’s Fiat Money Inflation in France, the book.

It was between like 1790 and 1796 during the revolution. Yeah, right. OK, you got it exactly right.

So what happened right after that? Napoleon came in and started paying everything in gold and silver and France recovered. They were no longer starving in the streets and eating their cats and dogs and, you know, wearing rags for clothes. They did recover.

So you can you can you can recover very, very quickly from a crash. If you respond with communism and socialism, then you don’t recover. Then you do.

Then people do starve to death in the streets and you eat cats and dogs. Yeah. And so you spoke earlier that you think Trump and his advisors are going down the deflationary path.

But is there a possibility that they’re going down the hyperinflationary path? And maybe you could cover that and how it would, in your opinion, affect people who have a lot of debt. That will really be up to Powell, not Trump and Peter Navarro or Scott Besant, unless they seize it. They might seize control of the Fed from him, which I also recommend they don’t.

You know, Trump Trump loves to grab control of things. He wants you’re doing it wrong. Give it to me.

I would advise Donald Trump do not grab control of the Federal Reserve. That is a that is a live hand grenade that is about to go off. You don’t want your name anywhere near that.

But when that when the deflation because of the fiscal policies of the of the administration, like the tariffs that is accelerating the deflationary crash, the the Powell can respond and he probably will by generating by a by a vertical money print, sort of like what we saw during covid, but but not turning off this time. So we’re talking, you know, I think Rafi’s thrown out 10, 15 trillion dollars in a couple of weeks of new of new of new credit being generated. Right.

And then just accelerating on from there. And then you have the zeros, you know, you have the five bazillion dollar notes, all that all that sort of stuff happening. If the Fed does not print, all the banks go out of business.

We have the deflationary crash and then we revalue and and we go on from there and new banks emerge and the Federal Reserve is hopefully destroyed. If the Fed does print, then the currency becomes worthless. Everyone abandons the currency.

We revalue again to and then all the banks go out of business and new credit emerges. Like I said, it’s it’s the same it’s the same side of the coin. There are slight differences along the journey.

So, for example, in a deflationary crash, you are you don’t most people that own houses and mortgages, most people that have mortgages on their houses will have to default on their mortgages. Almost everybody will. So you’re just going to say and your house value is going to crash.

So like right now, for example, my house, I have I have like a four hundred thousand dollar mortgage. My house might collapse down to twenty thousand dollars of value. So I tell the bank, look, I I’m not paying a four hundred thousand dollar mortgage for a twenty thousand dollar house, but I you know, I have some gold vaulted away.

Why don’t we work out a deal where I can trade you some gold? The bank will probably say yes at that point because we’re going to be heading back into a gold standard in a hyperinflationary crash. The house, the house, the more, you know, the house value skyrockets to a billion, five hundred quintillion million dollars, and I can go and my mortgage is still four hundred thousand dollars because I’m in a fixed rate mortgage. And so I go and I take my broom and a broom pan and I go and sweep up four hundred thousand dollars worth notes on the street.

I just take it down to the bank and I say, here you go. Here is the entirety of my mortgage paid off right away. Right.

But if I if I don’t have if I don’t have gold and silver, even though I’ve paid off my mortgage, I’m going to have to turn around and sell my house again to get gold and silver to buy food. So a lot of people hyper people think hyperinflation is, oh, it is it is a credit collapse so that you can you know, all the debts are forgiven. It’s a debt jubilee.

But everybody that hasn’t stacked is now completely, completely, completely broke because you are holding when you hold notes, when you hold dollars, you’re holding someone else’s debt. So if all the debt is collapsed, then you’re holding someone else’s worthless debt means that your notes on that debt is worthless as well. So now you are you are in a position where you must sell your house to go get food.

So either way, it looks it looks almost identical. There are slight variations of the journey, but, you know, it’s it’s it’s what flavor of crash do you want, Mario? Yeah, and it’s interesting because I had a look here and you’ve probably read this book When Money Dies about. Yes, yes.

And on page, what page is it? A hundred, sorry, 226. They talk about 1924, the aftermath of the hyperinflation that actually some creditors got some of their loans paid back at like 15 percent of the gold value prior to everything imploding. So the other thing I would say to what you said there, yeah, I think the debts will be wiped out.

But don’t be don’t be, let’s say, 100 percent sure that they won’t come back to try to get something from you. I think you mentioned that you could negotiate with the bank if you had some gold, but I wouldn’t tell the bank I had any gold. But so, yeah, I think what you’re saying then is that deflation or hyperinflation, you know, it’s a it’s like a double edged sword and we might fall on whatever edge and the consequence will be the same deflation.

No one has any money. And in hyperinflation, everyone has loads of money, but it’s worthless. So it’s almost the same.

Maybe we could conclude talking a little bit about the new treasury secretary, Scott Besson. You recently spoke about his knowledge of money, which you don’t think is great. And then you spoke about revaluation, which is something apparently he mentioned, and then he said no.

And yeah, maybe explain to the viewers how the gold market would be impacted if they raised the statutory price from forty two dollars and twenty two cents to the market price, how that would affect gold. For to do this, I have I have a very large budget, Mario, so I have I can afford a prop for this. So if you think of the statutory price of gold on the Federal Reserve’s balance sheet is forty two dollars and twenty two cents an ounce and the market spot price is two thousand nine hundred.

Actually, I think it’s three thousand dollars right now. I think we just had a massive jump today. So the if you think of the dollar as a note for one forty two of an ounce of gold, but the Federal Reserve, the gold window is closed temporarily.

So it’s like a restaurant. This is the example I use. It’s like a restaurant.

Let’s say you have a coupon for one free meal at a restaurant and you drive over to the restaurant and the restaurant has a sign on it that says temporarily closed for renovations. Right. That coupon is not worthless.

Now, if the restaurant said we out of business, you know, out of business, lights off. That’s that’s now a worthless coupon. Right.

Because there’s nowhere to redeem it. But because the restaurant says temporarily closed renovations, you say, well, I’ll just hold on to this coupon until the restaurant reopens and then I’ll go back and spend the coupon. So because the gold window is temporarily closed, that note still has some value.

And if you listen to Nixon’s speech, he specifically said, I have temporarily closed the gold window. He didn’t say we’re done with gold. It’s out of here.

He said we’ve temporarily closed it. So this the because it’s closed, you can think of the the forty two dollars and twenty two cents note coupon as an offer for gold on an indefinite time horizon or even an infinite time horizon. So at the end of time itself, when the last stars have twinkled out and only black holes exist, you should be able to go down to the door of the Eccles building and knock on it and say, I would like to.

Can I redeem my note now? Right. Can I redeem it for forty two dollars and twenty two cents an ounce now? But if you want it today, if you want gold today, you have to pay. That’s like a futures contract.

So if you want it today, you have to pay much more money, much more dollars. You have to pay two thousand nine hundred and fifty dollars. Right.

So you could think of it almost like a rubber band. So here is the forty two dollars is the base. And then the present keeps going farther and farther and farther and farther and farther away from it.

And eventually it’s going to snap, right, because this is going to lose all relation to this in the rubber band snaps. Now, it’s what the revaluation, what they’re talking about, what the people who do not understand money saying is, if we revalue this to three thousand dollars, it’ll just go and then there will be no more stress on the banking system and there’ll be no more stress on the on the monetary system anymore at all. Right.

We’re just going to a book. It’s just it’s just a technical it’s just a balance sheet issue. It’s a gimmick.

Doesn’t mean anything, but it’ll help. It’ll help the the Treasury Department, you know, you know, pay some bills. If you were to revalue this to this, what would happen is it just it would just shift over.

So we’d have, you know, the the stack for price goes from forty two dollars to three thousand dollars. But then you can think of it as. So I could have I could have forty I could have an ounce of gold for forty two dollars and twenty two cents on an infinite time horizon at the end of time, or I can have it right now for three thousand dollars.

So if I bring that to the present day, now I can say, well, I can have at the end of time itself. I can have three thousand dollars. I can have gold for three thousand dollars an ounce or I can have gold for three thousand dollars an ounce right now.

So what are you going to do? People say, well, I have I’m not going to live till the end of time. So I’m going to take three thousand dollars right now. So everyone rushes out to buy gold and that skyrockets the spot price of gold.

So once again, back to the rubber band, it just shifts over. And so now the statutory price is three thousand dollars and the market price is fifteen, twenty, thirty thousand dollars an ounce. And this will happen within a couple of days as well.

Now, this the gold is the price matrix, Mario. It is we are we are still on a gold standard. We never left it in as far as pricing and other goods and services in gold.

In 1971, right before they closed the gold window, a cup of coffee cost five cents and an ounce of gold was thirty five dollars. So a cup of coffee was one seven hundredth of an ounce of gold. Now, a cup of coffee costs three dollars, a small cup of coffee.

I think on Liberty Finance, I think I said six dollars. I meant to say three because I don’t I don’t I drink coffee at home, so I don’t know what it is at a restaurant or at a cafe very much. It’s about three dollars, apparently.

And gold is three thousand dollars an ounce. So it’s one one thousandth of an ounce of gold. So coffee in gold terms has actually gotten cheaper over time, not more expensive.

If gold goes to three thousand dollars an ounce, that story goes to fifteen, thirty, thirty five dollars and thirty five thousand dollars an ounce. Then we’re going to see things like coffee being thirty five dollars a cup. We’re going to see gas being one hundred, two hundred dollars a gallon.

Right. We’re going to start seeing absolutely crazy, crazy prices in dollar terms just from the revalue. And this will happen within days to weeks of the revalue.

This is why they don’t revalue because people say this is my rejoinder. Say, can I go ahead? Yeah, I was thinking of that because I’ve looked into this revaluation a little closer in the last few months because they’re talking about all this gold going back to the US. And I actually researched, Phil, that the price of the dollar or the price of gold has been revalued four times.

Once it was in eighteen thirty eight from nineteen dollars and I think thirty three cents to twenty dollars and sixty seven. That revaluation was six point six six percent. Interesting number.

And then Roosevelt, 30th of January 1934, revalued it from twenty dollars, sixty seven to thirty five. And then in 1972, they revalued from thirty five to thirty eight. And then the next year they revalued from thirty eight to forty two, twenty two.

And I looked at the free floating price of gold in the 70s. And after they revalued in 72, 73, gold was way above those statutory kept going. So I think you’re right.

You know, they haven’t revalued it because they know it’s like opening a Pandora’s box. Right. Absolutely.

If look, if it was just a balance sheet thing, they’d do it already. They would have done it. They would have done it hundreds and hundreds of dollars ago.

And that’s here’s the thing. Here’s the scary thing. Right.

So the value, the revaluation from twenty dollars to thirty five was like a major epic shift in 1933. Right. That was a big, big, big deal.

We’d have to revalue it to like sixty thousand dollars now, Mario. I mean, it’s really scary if you think about how much how many notes for gold have been printed and how intense the revaluation will have to be. So, no, this is like the idea that, like, it’s just some sort of balance sheet gimmick and this is not going to affect our daily lives.

Absolutely not. If they even attempt to revalue, they’ll start the endgame because we’re going to be looking at two hundred dollar gasoline. With two hundred of the gasoline, you have empty grocery stores, you have riots in the streets, you have Walmarts being burned to the ground.

It’s the endgame. So they’re not going to do it until the hyperinflation kicks in. And then then it’s going to happen anyway, whether they try to stop it or not.

Yeah, well, maybe maybe it will be like Italy, where before the euro, a cup of coffee was like five thousand lira or something like that. But so with that in mind, Phil, how do you think things are going to evolve from now, now until, let’s say, the end of the year, until the end of this year? I think another part question into that. And how do you think people should prepare financially? Because that’s what we cover here.

I know there’s a lot of other things that one needs to prepare during a hyperinflation, but we’ll stick to the financial part. Sure. So so Rafi is better predicting the endgame than I am.

And he thinks the endgame is nigh. So I tend to agree with him. I mean, I don’t I don’t have a reason not to.

So I would expect I would expect gold and silver, particularly silver, to start going vertical quite soon. Resource shortages everywhere, you know, chaos, panic, you know, dogs and cats living together, horses riding people, all that all that all that crazy stuff probably this year. And I’m hoping it is mercifully very quick if they revalue, if they revalue to the sixty thousand dollars and, you know, tell everybody, hey, surprise, everyone’s broke.

Then then we can rebuild from there. And it should be like I said, I’m hoping it’s very quick. I’m hoping and I think I’m maybe I’m Pollyanna.

Maybe I’m just relentlessly optimistic and I don’t want to look at the truth. But I’m based on what I’ve seen. If done correctly, we can be back to doing wonderfully, you know, firing on all cylinders, everyone working, everyone getting, you know, getting their savings in gold and silver.

We can be back up to that in just a couple of years. It’s a tough couple of years. It really is.

But that doesn’t we are not condemned to 20, 30, 40 years of famine and Great Depression and, you know, people boiling their shoes. None none of that is required. So so I want to I want to leave people with the words of encouragement is as big as the financial panic is.

And it is going to be big. As long as the market can clear. I think we will dodge the worst of it.

So how do you think the market clears? No, but how do you think the things can be fixed? And what do you mean by the market clearing? Sure. So people will start selling their houses and the gold and silver holders will be buying those houses for, you know, like I think Rafi says about 7500 ounces of silver for a house. I agree with that.

We’ll be buying, you know, Lynette Zang says 25 ounces of gold will buy a city block, including all the buildings. I agree with about that estimate. So the stackers will go out and become the next round of capitalists.

And I mean and I mean monocle wearing, you know, leather leather spats, capitalists undreamed of wealth and asset accumulation. And very, very quickly. This is assuming this assuming no government intervention and, you know, no confiscations.

But if no if there’s no government convention and the world can hold itself together well enough that the capitalists can go out there and acquire all the capital, then we’re talking about, you know, Walmarts being turned into factories within weeks. People people that know how to sew generate, you know, becoming seamstresses and generating clothes and locally and, you know, farmers taking their their goods to market in the ruins of the supermarket. So the supermarket will shut down, but farmers still got food they got to sell.

So they’ll drive their trucks over and they’ll still they’ll sell their goods in in the supermarket and people will still get food. Right. It’ll be a lot more decentralized, a lot more decentralized, but it will be it will still work.

People people have found a way to make these things work and they work very, very quickly. So what was the other part of your question? I mean, yeah, I think what you meant then by letting the market clear it is letting the market do its job and have no government interference. And I think that’s the only solution.

I guess the big question is whether even President Trump, who’s far from being a socialist, is if he’s going to let that happen. Yeah, Trump will be judged. History will judge Trump by one thing and one thing only.

If he takes down the Federal Reserve, if he shuts it down and returns us to a gold standard, he will be the greatest purveyor of human liberty since Thomas Jefferson. If he does not destroy the Federal Reserve and they try and save it and they try and get the scheme up and running again, then he’s going to be a failure. And worse, worse than that, he might end up being a tyrant because the best the best of intentions doesn’t matter if what you are doing is tyrannical.

Yeah. And I think you answered my question already. OK.

And yeah, I think that would be the best thing, because if you keep the Fed going and you keep keep at this game of printing funny money and trying to keep this debt bubble going, it’s the end game is going to be a lot worse down the line. Is that the way you see it? That is exactly how I see it. Great.

Great. OK, Phil, that was really good talking to you. It’s been a great chat, Mark.

It looks like your end game seems to be I’m not saying it’s happening right. It’s going to happen tomorrow. But it seems to be the balance that seems to be shifting towards the owners of real capital.

Exactly. So to conclude, like everyone get capital now. Get real capital right now.

It’s gold and silver, guys, not Federal Reserve, Federales, right? OK, great, Phil, I wish you a good day and we’ll speak later. Take care. Take care, Mario.

Take care.