The Silver Fuse to the Gold Explosion (Uncut) 01-31-2025
The Silver Fuse to the Gold Explosion Feat Bill Holter – LFTV Ep 208
The Federal Reserve has and is losing control of the yield curve, and that’s dangerous. They now have to keep printing while we crash. We’ve got this ticking time bomb.
Talking gold with the one and only Andrew Maguire. Welcome to Live from the Vault. Hi there, my name is Shane Moran, and I’ll be your host for this week’s episode of Live from the Vault, and welcome to the show that goes beyond the headlines and uncovers the truth about the precious metals industry and the effects on the global economy in these historic times.
With exclusive access to experts and insiders, we reveal information and we reveal insights that you simply won’t find anywhere else. Now, this week, we have the one and only Andrew Maguire, precious metals expert and whistleblower in the vault, and to help him pull back the curtain, we’ll be joined by a returning guest and by popular demand by you, our Live from the Vault community, precious metals expert, Bill Holter. That’s right, Bill Holter is in the vault, and you’re not going to want to miss a word of this conversation.
But just before we go and introduce our featured guest, for those that haven’t already heard of Bill, and head over to the UK, just please help us spread the word about this channel by liking it. If you haven’t liked it, hit the like button right now and share this information. Make sure you subscribe if you haven’t already done so.
These things really help the channel get the word out to more and more people. If you want to be notified in real time as each episode goes live, just click on that bell right there, and we’ll do just that. Now, for those that haven’t heard of Bill Holter, well, he is a precious metals expert, and Bill’s really a financial commentator with over two decades of experience.
He has been a vocal critic of market manipulation, the central bank policies, and the crucial role that physical gold and physical silver have in what’s happening here. And he’s also a well-known contributor to the Gold Antitrust Action Committee, and that’s GATA. And you can find more about Bill at BillHolter.com. And with that, let’s head over to the UK and talking gold with the one and only Andrew Maguire and our special guest, Mr. Bill Holter.
Over to you, Andy. Bill, it’s a privilege to have you back again. We’ve had, again, so many requests.
Every time you join us and then the requests start pouring in, obviously, what people love about you, Bill, is you’re a straight shooter, and you’ve got massive insight into what is going on in the smoke and mirrors world of these very complex global markets. So thank you for joining us, and I know you’ve got a bit of a throat problem today. Right.
Thank you, Andrew. Well, I think one last little gift from the Democrats, in her last official act at the 11th hour, on the last hour of the Democrat, whatever you want to call it, she warned that the US is going to hit the debt ceiling one day after Trump’s inauguration. That was a nice thing to do.
Yeah, and Janet Yellen also apologized for standing watch over $15 trillion buildup in the debt owed. I mean, basically, if you go back over the last eight years, it’s not quite a double, but it’s pretty close to a double. And I mean, it was unsustainable then, and it’s even more unsustainable now.
And what they’ve done at this point is they’ve put the debt saturation and the fact that the debt service now is, and even at these low interest rates, and these are still low interest rates over the last 50 years, even at these low interest rates, the amount of interest payable on the debt is greater than the total budget each year for the US military, which, by the way, is greater than all the defense budgets worldwide for the rest of the world. So Scott Bassett, I guess the new Treasury Secretary, he vowed that there’d be no default on his watch. How’s that going to work? Well, I mean, you can obviously, the way the system is set up, he can say that, and he can technically be correct, but they’re going to be forced to print ungodly amounts of money supply.
And that’s a default because you’re not paying back in the terms that you borrowed. You’re paying back in dollars. Those are the terms.
But you’re not paying back with a stable dollar. You’re paying back with a dollar that’s day after day losing purchasing power. And I think you wrote recently, I read something recently on your excellent website that basically you were raising, you were noting basically that in the event of a congressional standoff, that people tend to dump Treasury bills beyond or up to the date of where that deadline might be.
And you suggested that that creates a kink in the curve. That’s interesting to me because I hadn’t thought of that. Right.
Well, my thought process, very simply, was who’s going to lend the money? I mean, if we’re running a $2 trillion per year deficit, who’s going to lend that money? And as we go further and further down this rabbit hole, foreigners, they’ve already started to back away, but foreigners are going to become outright big sellers. So who’s the buyer? The only buyer, the only lender, it leaves you with the Federal Reserve. And I might add that this, if this wasn’t the plan originally, they didn’t think it through.
But starting in 1913 with the Federal Reserve, where we stand right now is exactly where you could have modeled, you couldn’t have modeled, you know, the time factor or how long it was going to take. But you could exactly model where we are today as far as debt saturation and the interest payments eating up too much of the budget. Interesting.
And one other thing, Andrew, just one other thing. And I’ve spoken about this probably, I don’t know, three or four times on interviews now over the last month. The DOGE, Department of Government Efficiency, you know, they wanted to cut two or three trillion out of the budget annually.
And immediately when I saw that, my very first thought was, so you do a great job and you cut two trillion or three trillion or whatever the number happens to be out of the budget. And that money doesn’t get spent. What happens to GDP? GDP gets crushed because all that spending is part of GDP.
So if we’ve run, you know, a trillion, trillion five, two trillion per year for the last five years, 10 years, whatever. If you took those expenditures out of GDP, we probably would have had a negative GDP for the last 10 years. Wow, I hadn’t thought.
Yeah, I guess I see you’re thinking on that. Interesting. Now, in our last episode, I had Craig and Andy Sheckman and Robert Keene, so it was really excellent.
But Craig mentioned, he was pointing out that talking about recessions and obviously we’re thinking all the signs point to a potential recession. And he said, usually they start when the yield curves un-invert again. Does that make sense? Yeah, that’s true.
Once they invert, then your risk of recession explodes. And once they un-invert, that’s when the recession actually occurs. And we live in such a strange world today, Andrew.
I mean, in Europe, your neck of the woods. Germany has been in a recession for what? Is it two full years now? Sure. Basically a year and a half, two full years.
And where is their stock market? Their stock market’s at all time highs. So the point I’m trying to make here is that the stock market is not the economy. The real economy and financial markets are two separate entities.
And they have figured out how to rig financial markets worldwide well enough so that you can have all time highs in the stock market a year, two years into a recession. Really? I mean, this is all happening at about the worst possible time. And I think Andy on that last episode, Andy raised some interesting things there.
He’s suggesting that the Fed faces really a stark choice either to control inflation or prioritize liquidity. And I guess really what I was taking from that was because of the way that they issue longer date treasuries, it drains the repo markets. And now we’re lacking liquidity.
So the yield curve control could flip the switch and trigger bank failures. I mean, this was the take I got from that. Yeah, actually, I think that switch has already been flipped.
Wow. If you go back, when was it in September when the Fed first started cutting? They’ve cut, what is it, twice or three times a full one percentage point is what they’ve cut. But what is the 10-year treasury done from that day forward? The treasury has gone up one full percentage point.
So the point I’m trying to make is it looks, maybe it’s too early, maybe it’s not. But it’s looking to me like the Federal Reserve has and is losing control of the yield curve. And that’s dangerous.
Extremely dangerous. And I think one of the other things, and I’m trying to think of all the events around Trump, because it’s all new. This is new.
And I think there’s so much uncertainty out there. And clearly, that’s reflected in the gold and silver markets, because you’ve got the EFP spreads, Contango, widened right out. And so normally, Bill, you’d say, well, look, hey, there’s $1.30. I think at one point, it was $1.30. $1.30 Contango in March silver.
Well, what I would do as a market maker, hedge fund, my job would be to arbitrage that. I would then sell that short by spot. Trouble is, the trouble is by doing that, I’m sucking spot.
And that’s particularly silver here. I’m sucking spot, which is already incurring a four-year supply deficit and has reached critical, critical supply levels. So what I’m doing then is I’m shooting myself in the foot, because to me, that’s a risky, risky trade, because that could then widen that spread even further.
And we saw that in COVID. Well, yeah, what you’re talking about is arbitrage, where you buy in COMEX and you sell in London. You take that spread as profit.
What that does is it drains the physical supply out of COMEX. So, and Andy, I mean, we’ve known each other for over 10 years, and you know that entire time, I have said that ultimately, when all is said and done, there is going to be a failure to deliver on COMEX for both gold and silver. And I think it will start with silver.
I’ve said that all along. And now, you know, now that you’ve got, you know, the demand that we’ve seen out of China, out of India, out of just the solar industry alone, it literally eats up all of the global supply. Well, I recall you, oh, three, probably three years ago, you said, and it was a bold statement, you said, and this was way back.
While, you know, as we’re discussing silver, you observed, I think it definitely was you observed that silver would actually be the catalyst to implode the financial system, which no one else had said that. And then I thought about it. It actually makes sense.
Because it’s so small. You don’t need a lot of money to do it. Yet, look at the Office of the Comptroller statistics, where you see gold and silver derivatives in the billions, in the actual billions.
And obviously, so that is a major problem, because ultimately, if it blows, if it does implode, those positions are dead in the water. And then that interconnects to what would be a what, a two quadrillion, I’ve lost track of how many quadrillions the derivative markets are all interconnected to. But that, I get it, because this is massive.
Yeah, and I mean, my thought process with gold and silver, silver, the market is so much smaller, it’s probably not even a 10th of the gold market. I’ve all along called silver, the fuse to the to the gold, golden nuclear bomb. But you cannot have silver go into a default status and gold ignore it.
I mean, it would immediately be followed by the gold market. You’d have buyers left and right. And I mean, we’re at the point now, let me just talk about inflate or die.
Richard Russell’s famous saying, from a debt standpoint, because it’s a Ponzi scheme, you have to continually create more debt to feed the Ponzi, to feed the Ponzi monster. If you don’t, you know, if you don’t feed the debt, then the debt collapses. So they’re going to feed the debt.
But when you feed the debt, what you’re doing is you’re expanding the money supply. So if money supply is going up 5%, 7%, 10, 11% per year, yet gold and silver production is static or slightly declining, what’s happening is, you know, it’s the classic, you know, too many dollars chasing too few assets. And it’s that way.
It’s that way system wide, because GDPs are only growing worldwide at what, 2%? But yet money supplies are double, triple, quadruple that just to keep that 2% growth. So it’s a dangerous situation. And like you said, when gold blows, confidence breaks.
And that will literally blow up the entire derivatives complex across the board, which includes all sorts of commodities, all sorts of sovereign treasuries, equity markets across the world. The derivatives market gets taken down when gold becomes unavailable, you know, to deliver. And silver could be the trigger for that in itself.
I think it will be. Yes, absolutely. Like I said, you can’t have a default in the silver market and the gold market ignore it.
That cannot happen. Yeah, and just while we’re still on silver, I think I would love you to share this, because you put it so eloquently. I recall that you said, Andrew, you think to after one.
No, what you need to look at is the historical pricing model, and that I think it was closer to 10 to 1, 8 to 1, 10 to 1, I can’t remember. But you explained how that was the case, and it involved mules and all manner of things. So can you please, because people will be so interested in this.
Yeah, silver comes out of the ground at just under 10 ounces for every one ounce of gold. So God’s ratio is, let’s call it 10 to 1. Man’s ratio right now is 88 to 1. For hundreds and hundreds of years, it was 16 to 1. So if God’s ratio is 10 to 1, why did man settle on 16 to 1? And that’s pretty simple, because years ago, 150, 200, 300 years ago, if you were going to transport capital or pay, you had to transport the metal. And because you had to transport 10 times as much silver by carriage, by horse, by whatever, man discounted silver because of the inconvenience.
And I believe in the Constitution, the US Constitution, it’s 15 to 1 or 15 and a fraction to 1. And the world settled on 16 to 1, basically, to compensate for the inconvenience of having to transport 10 times the weight, 10 times the size of what you could do with gold. It’s mind boggling. It’s mind boggling.
And I think most people just don’t appreciate it. But really, where does that put silver today? I mean, even at a suppressed $30 spot price, let’s just pick the number, round number. That’d be $275.
I mean, in round numbers. I mean, why not? Why would it not be? Because there’s been a concerted effort for 100 years to suppress the price of silver. Actually, you could go back to, I think it was, what, 1897 in the US, when there was the big fight between the East Coast, the gold people, and the Western markets that were digging up a lot of silver.
I mean, it goes back. So it goes back 125, 130 years, the price suppression. At this point, think about the uses of silver.
I mean, there’s so many uses. There’s industrial uses. There’s technological uses.
There’s medicinal uses. And now we’ve got the green energy uses. So there’s so many more uses for silver.
And there’s almost no uses for gold other than jewelry and reserves, bank reserves, or individuals holding it. So there’s so many uses for silver. What if you woke up tomorrow morning and silver was $200? What would happen to a lot of the products, a lot of the uses that are in place right now? What would happen to those? Some of those, probably many, maybe more than half, those uses, the model wouldn’t make sense.
So I mean, that would bleed through to the entire system, where you would see an inflation of all sorts of goods and all the uses for silver. Would that upset the whole system? I don’t know. But I know it would certainly upset a lot of industries.
And it’s used in weapons systems. It’s used, as you say, so the military complex would just continue to buy it. I mean, I think, was it you that mentioned how much silver goes into the head of a tomahawk or something? It’s over a monster box.
In essence, what they’re doing is they’re launching monster boxes. And it takes more than 500 ounces for that application. And that’s lost, completely lost.
Oh, it’s gone. Yeah, it’s gone. It’s vaporized.
Well, I mean, and then we are in a four-year supply deficit. And I think people, because this is the most common discussion, people talk to me, yeah, but silver, it doesn’t go anywhere. Well, no.
And we explain, well, we can see because of the leverage. But when it does, it does. When silver makes a move, the moves are enormous.
Oh, and one thing we haven’t spoken about, Andrew, is I think it was between, it might have been just before Christmas, it might have been just after Christmas, that Russia announced, oh, by the way, we’re also going to be buying other commodities such as silver. I mean, where in this market is there room for Russia or any country to start buying silver? The supply is not available. At this price.
At this price. And it’s like anything, Bill, as you say. I mean, there’s always an offer to sell at a price.
So if I’ve got silver or gold or whatever, whatever commodity it is, and I’m not going to sell it for a price that doesn’t suit me. And so therefore, the offer price to sell bullion at this price is just not there. So you’re dealing with this huge spin of derivative, this game, and then it ends up with a four-year supply deficit.
Yeah, which leads to the final act, if you will. And this is something my partner, Jim Sinclair, he passed away a year and a half ago. He talked about the potential of in the absolute end game, you could see gold at $10 an ounce offered on COMEX and no bids.
And $100,000 bid in the cash markets, but no offers. Then we would get to a point where no one would release gold, no one would release silver for any fiat price, because fiat being viewed as nothing. You’re giving something away for nothing.
And he explained this, and he would ask the question, he would ask, what is the value of a contract that cannot perform? And the answer is zero. So that’s how he got to that thought process. And it does make sense that if you could buy a gold contract, but you know you’re not going to be able to convert it into gold, why would you buy it? There’s no value to it.
Which is being realized now. And I think that’s one of the interesting things about the threat of the uncertainty of tariffs maybe coming in to just regionally into America, whereas the rest of the globe not. So therefore, it’s created this exposure of just how leveraged and just how worthless these paper contracts are that pretty much centralized, obviously, in the COMEX exchange, which we call the casino, where the open interest is not gold, silver.
It’s just, in fact, it’s 96% leveraged. So clearly, I think that’s one of the good things. It really exposes this.
And I don’t think there’s any going back from this bill, because too many people see it. Yeah, there is no going back, Andrew. Because the realization that world trade was something for nothing, the US would import real goods and export dollars, which are nothing.
That’s the reason or one of the main reasons behind the formation of the BRICS in the first place. I mean, that’s why they’ve joined together. They want free and fair settlement.
And fair settlement is not where you give goods and you get a piece of paper that continually, day after day, loses value because they’re printing more of it every day. Yeah, and I think this leads kind of into one of the things we’re looking at, we’re all looking at, at this time. And a lot of people don’t get, really, when I say, a lot of the mainstream analysts don’t either get it or talk about it.
But essentially, for example, Goldman, all through 2024, said, oh, yeah, 3,000 gold. And then in January, he said, oh, well, actually, maybe we should push that out to 2026. And their rationale, this exposes everything.
Their rationale was that, well, maybe higher bond yields, higher dollar, maybe caused by a lack of rate cuts. But what they’re missing is what every central bank out there, every BRIC central bank, everybody who’s savvy into the wholesale markets knows that because the physical markets are being settled outside of this CME or BMA ring fence, and because they’re physical and you have to own a bar before you can buy it or you have to buy it, own it before you can sell it. So then, basically, what’s happened is that we’ve seen gold and gold rising into rising bond yields, into a rising dollar.
And people don’t get the fact that actually, also, and what’s even and making that even more, even worse, is that we’ve got pension funds in Switzerland saying, yeah, sell the US treasuries, swap some US treasuries for gold, first year asset gold. We had UBS, the asset manager for UBS, three or four weeks ago, controlling 1 point something, 3 trillion in reserves. Oh, yes, we are actually selling US treasuries for gold.
I mean, so when you’ve got all of this going on, obviously, that accelerates the spike, the yield price to go up, because there’s a lack of buyers and you’ve got people selling and that people are not getting the fact that you can’t discount gold’s rise because the dollar is rising or your bond yields are rising. It’s an interesting dynamic, which a lot of people are confused about. Right, that’s it’s what we’ve seen.
Well, really, what we’ve seen since October of 23, and I’m going back to October, November 23, because that’s when the Biden administration sequestered the 300 billion of Russian reserves. So I think that’s what changed the game, because typically, when you see higher rates or a weaker gold, that’s been the past. You’re not seeing that now.
And I think the reason being is the world saw what the US did with Russian reserves and is thinking to themselves, well, hey, wait a minute, if they can do it to Russia, they can certainly do it to us. So let’s sell our treasuries that we hold as reserves and buy gold and hold the gold in hand, you know, in a vault in their country. And let me just comment.
I think the reason a lot of mainstream, not mainstream media, but mainstream financial people miss this whole thing is because they’re Keynesians. They’re not Austrian economists. Austrians, to simplify it, it’s common sense.
Austrians are like the perfect common sense. And Keynesians, it’s like it’s it’s like a thought process is made up, if you will. And the thought process with the Keynesians is that the best asset on the planet is US government debt.
And when I say the best asset, that means gold is not there. Gold is, you know, a lesser asset. When in fact, that’s not the case, because the treasuries, the currency of treasuries can and is being diluted.
The danger of not being paid back, you know, an outright default is rising, although I don’t think that’ll happen because they can always print. But there is that danger. And on top of that, then there’s the danger that the US Treasury will decide, oh, well, we don’t like what you’re doing.
Your money is now ours, like what they do with Russia. So I think the Keynesian thought process is flawed from the respect of they don’t understand what’s the true foundation to the financial world. It’s gold.
It’s not treasury bonds, although for the time being, it is treasury bonds. But there’s going to be a comeuppance that the likes of the world collectively has never seen before. Yeah.
And we have our friends across the I’m like phone. Listen, I telephone every morning, five o’clock in the morning. I phone all the desks around Asia and I speak to everyone and every single day, without exception for the last couple of years, and I could be going further back than that, they buy as far as they’re concerned.
Gold sub 3000 is a buy. And they don’t care what’s going on. They don’t care what the yields going.
In fact, if the dollar is rising, they capitalize on getting more gold for their dollars. And and and flipping, as you say, flipping US Treasuries. And the thing is, a lot of people forget that US Treasuries, when gold revalued by on the on the 1st of January, two years ago, almost exactly two years ago into a first year asset class, because it has to be physically backed.
So therefore, what happened was it then is of it’s a first year asset that runs alongside the US Treasury. However, the US Treasury is backed by what bill? It’s backed by faith. It’s backed by to me.
So where’s the where’s the better asset class? First year gold physically backed, no counterparty risk. Or really a US Treasury to me has counterparty risk, does it not? Yeah, it absolutely does. US Treasuries are backed by the full faith and credit of a government and of a of a treasury and central bank that is technically insolvent, as opposed to gold, gold, nor silver, neither can default, neither can bankrupt.
And if you have it secured where it can’t be taken or stolen or whatever, there is there’s if you have it in hand, there is no counterparty risk whatsoever. I mean, gold has value because it is. Treasuries have value because the US military tells you they have value.
Yeah, and that sums it up nicely. And and so now you mentioned the sanctions that were put on Russia and seizing assets. But essentially now when I the one thing I’m listening to Trump about and it’s yeah, tariffs.
Yeah, maybe you use that as a bargaining tool. Maybe you set yourself up to be strong. But if you did impose tariffs, is that really a net positive? Because it’s a it’s a sanction, is it not? I would just go back to 1929, 1930.
What what happened then? Tariffs were raised all over the world. What happens? Trade collapsed. And that’s what’s going to happen here.
You know, he does go through with these tariffs. And when I first heard it right off the bat, I’m like, that’s not really a great idea because that is going to harm trade. And trade is what creates if you want to call it velocity worldwide.
It creates, you know, money moves. It creates liquidity. You you put on you put some sand in those gears and you’re going to have a hard time getting the machine going again.
Yeah, that makes it does make sense. And so I mean, and yet what what as the threat of these sanctions, tariffs or sanctions, whatever you want to call them, is what is driving the acceleration of BRIC central banks, facing central banks to purchase more gold? Because, again, for just the reason you’ve outlined out, it underscores the very reason that you’ve just outlined. Well, yeah, and I kind of want to go back to what we were just talking about.
Everything in the world and I’m not talking about physical assets, I’m talking about financial assets. Everything in the world has the possibility of bankrupting. Gold and silver cannot bankrupt, thus making them the perfect foundation to be the the last two financial men standing, you know, when this thing comes down.
And like I said, creating tariffs. It’s. You’ve got to be really careful because then you could you could create a tariff war slash trade war and, you know, trade slows down.
China is super leveraged. We’re super leveraged. And all you have to do is is, you know, not the train, not one of the wheels off the track and the rest are going to follow.
And that’s I think that’s tariffs the way they’re being explained to the American people that they’re a good thing and you won’t have to pay as much in taxes because foreigners are going to be paying the taxes. Well, what tariffs are going to do is it’s when you slap a tariff on something, you’re going to get less supply of it because some suppliers are not going to send it. So now you’ve got less supply, which that on its own raises the price.
But if you add 10 percent or 25 percent or 50 percent, whatever, to the good, the widget that you’re making, that that money is going to ultimately be passed along to the consumer. So something that cost ten dollars yesterday and then they put the tariffs on, it might be 13, 14 dollars. So you’re you’re feeding the inflation monster and you feed, I guess, most importantly, you feed inflation expectations.
And what that leads to is people basically just trying to spend their currency before it goes further down in value. Yeah, yeah. Why would you hold on to your currency if you’ve got inflation? Absolutely right.
It’s a hot potato. The polar inverse of owning a safe haven asset. Right.
Again, talking about Gresham’s law here, aren’t we? We are. Well, Bill, I know that you’ve been you’ve been a real trooper here with your voice. Yeah, I apologize.
It just started coming on. But Bill, thank you very much for sharing a little bit of wisdom here. I mean, it’s obviously, you know, this whole Trump regime is going to be interesting as it rolls out.
We’ve identified some pros and cons, and certainly there are both. And then there’s the Bitcoin thing. You know, who’s going to I mean, who’s going to surely the Fed is the only central bank that hasn’t revalued gold.
The whole Bank of International Settlements, every every global central bank except the Fed is actually going long gold. Of course, they have to. I mean, you have to.
And it leaves a big yawning gap here, because somehow some way that’s got to get on board. And I don’t know if they will revalue gold to some degree. But I suppose.
Can I tell you how I think they could do it? How I how I think they will. What you’re saying, revalue gold. You know, there’s been talk of.
Of using. Using the gold, the supposed 8300 tons that the U.S. has using that as either collateral or selling it to buy Bitcoin and creating a Bitcoin reserve. And Bitcoin is going to be, you know, 20 million dollars in 10 years.
And that’ll bail out. You know, it’ll cover the entire the entire Treasury debt spectrum. That’s how about if if they actually do go through with that, which is lunacy.
First off, I don’t think the gold is even there. But even if it was, I mean, it’s complete lunacy because you’re taking the ultimate real asset and putting it into the ultimate unicorn asset, whatever you want to call it. But that would require the Federal Reserve to revalue the gold, wouldn’t it? Yeah, they would.
Because if they use it as collateral, they’re not going to use $42.50 or whatever it is that’s on their books. They’re going to use 2750. If they turn around and sell gold to raise capital to buy Bitcoin, they’re not going to sell it at 4250.
They’re going to sell it at the current market price. So I think that’s the mechanism that if gold does get revalued by the Federal Reserve, that’s how it’ll be done. Just my guess.
If so, and if they’re again, the chances are empirical evidence says it’s rehypothecated. And yes, if you did revalue it to market, all that’s going to do is provide some actual supply for the BRICS members, China, Russia, and the BRICS members to buy, and they will take every ounce of it. And the price won’t go down.
It’s not even $1 trillion worth of gold. I know. Something like $700, $800 billion.
It’s nothing. And China has $3.4 trillion of shadow banking reserves, FX reserves, which Brad Setzer drew attention to a couple of years ago. So I mean, this is folly, absolute folly, because the power to take that gold, and then if the US has zero gold and the rest of the world has gold, I mean, I know which side of the fence I want to be on.
Right. Well, and that raises the question, if that’s truly the case, then what happens to North American mining operations? Yeah. That’s a whole other can of worms.
Well, Bill, thank you so much for spending your time with us today. I mean, there’s some stuff here to really think about. And these episodes are really just about education, people getting opinions and thinking about stuff maybe they haven’t thought about.
So and as I always say, this is all about learning to take responsibility for oneself, which is something that I know you’re an advocate of that. We all have to take responsibility, must. And I think I said, you said must take responsibility for ourselves.
That’s stuck in my mind. And I and and that is what this does. Well, thank you, Andrew.
My pleasure. I always enjoy talking with you. Thanks, Bill.
Thank you so much. And we look forward to having you back because I know we’re going to get a ton of requests tomorrow for you to come back. Thanks.
All right. Thank you, Andrew McGuire and Bill Holter for another fascinating discussion. And remember to our Life in the Vault community, buy physical, make sure it’s backed one to one and understand the difference between what Andy calls the casino paper gold and silver markets and the actual physical gold and silver markets.
They’re not the same. Don’t be fooled. And there you have it.
That’s all we have for you today on another episode of Life in the Vault. Now, keep keep spreading the word about this channel. And all you got to do to really help the channel out there is to hit the like button, share this information and also subscribe if you haven’t already done so.
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