[00:00:00] Voiceover: Welcome to Private Banking Strategies podcast with Vance Lowe and Seth Hicks your secret weapon to protect your assets and never have to start over financially again. Vance and Seth help, high net worth individuals, families, business owners, and investors structure, an asset protected tax-free fortress for their families.
[00:00:21] Learn how to keep what you earn and use the velocity of money to create your own private banking system. Join us on this journey. As we explore the secret strategies of the rich and political elite and helping take total control of your financial security now onto the show
[00:00:43] Aric Johnson: Hello, and welcome to private banking strategies with Vance Lowe and Seth Hicks, Seth, how are you today?
[00:00:48] Seth Hicks: Doing great, Aric. Thank you for having us.
[00:00:51] Aric Johnson: Come on. This is your podcast, man. Thank you for having me. I’m excited to be here. Vance, how are you doing?
[00:00:57] Vance Lowe: Oh, I’m doing wonderful. Aric. It’s great to be [00:01:00] on.
[00:01:00] Aric Johnson: Yeah, absolutely.
[00:01:01] Now, Seth, we have a guest on the show. This is your first guest on the show. I’m so excited. It’s a gentlemen that I’ve met before and he’s going to be fantastic. So you want to introduce them to the audience?
[00:01:10] Seth Hicks: Absolutely. We’re super excited to have Andy Shackman with Miles Franklin on our podcast today.
[00:01:16] And the Genesis of this invitation comes from our clientele, asking about where to put their cash value and an inflationary parabolic culture. And so we’re seeing hikes in food hikes in prices of gas. And I think it’s a pretty common understanding that we’re in an inflationary period. And so our clients who have cash value and don’t have it invested in something, are looking for places to hedge and to be safe and not lose purchasing power.
[00:01:50] And I think that Andy provides some awesome opportunities for private banking strategies clients and others who want to diversify and hedge.[00:02:00]
[00:02:02] Andy Schectman: Well,
[00:02:03] I guess that means I’m supposed to say something. So I’ll jump in. Seth, thank you. I really do appreciate Aric. First of all. Thank you, Aric. It’s nice to chat with you again, even a albeit in the background. So nice to chat with you again and Vance. I appreciate being here as well.
[00:02:21] Vance Lowe: Before Andy, before you start, let me just do a little preface here if I could with with some of the clients give uh, give us a little bit of background to go on and, some reasoning behind this. Just like Seth was saying, our clients are always looking for.
[00:02:39] Places to do investments that are safe put their money to work. And right now the inflation question is huge. In the past, we had dealt with precious metals a little bit with some of the major companies, but it seemed like we didn’t get full disclosure or they said they [00:03:00] would provide certain things, and your background and what you guys do.
[00:03:06] You know, it’s just, there’s just no question. The professionalism, everything that happens is just, it’s just always right there. And so we’re trying to provide to our clients a little bit of background and research on our part to be able to bring you on and say, Hey guys, a once should really take a listen here to see what he has to offer on this might just really be, an answer to some of your questions and something that you might be able to do.
[00:03:38] So Andy, we really, really do appreciate everything that you’ve done. And we’re really looking forward to some of the things that you’re going to tell us and maybe how to get it done.
[00:03:49] Andy Schectman: Awesome. I appreciate that as well, Vance. Just for, you know, the edification of your listeners, just a brief [00:04:00] synopsis of who I am and who we are.
[00:04:02] My father and I started this company together in 19 89, 33 years ago, nearly we have done over $7 billion in transactions. Without ever receiving a customer complaint. And I always tell my clients to try to find one on Google. We’re very proud of the fact that we’ve yet to find one in any industry, let alone an industry that is as personal, if you will and emotional as physical, precious metals you’ve been in this industry long enough, you certainly know what I’m talking about.
[00:04:35] We are one of only 24 United States mint authorized resellers and honor that I’m probably most proud of in my 33 year career is our accreditation by the U S mint. It’s an honor that doesn’t come very easily. Something that we worked very hard to achieve and have proudly worn that badge for over a decade.
[00:04:54] Now on top of that, we uh m my corporate office now I live in Florida. I moved here [00:05:00] a year ago out of the madness in Minneapolis, after the George Floyd the passing and the ensuing craziness that led me to Florida, but I left my office, my corporate office in Minnesota, Minneapolis, Minnesota for a very distinct reason.
[00:05:17] And that is that the precious metals The industry guys is federally non-regulated it’s akin to the wild west, if you will. As a result there has been a lot of fraud and theft, several hundred million dollars, really at least 200 million that I can for sure speak to from my handful of the biggest companies in the country, most of them online over the last several years.
[00:05:40] And so, as a result, the state of Minnesota, handful of years ago, adopted. Bonding licensing and regulations akin to the securities industry. And they’re the only state in the United States that mandates it, whether you are domiciled in the state as a corporate entity, as [00:06:00] my company Miles Franklin is or whether you live in another state in the country and sell into the state of Minnesota, you damn well better be licensed, or you’re going to have a big problem with regulators.
[00:06:10] And as a result, almost every company in the United States has boycotted the state of Minnesota. Because if it’s the only state that requires bonding alone, which is a financial disclosure, Commitment to the nth degree for the owners on top of continuing education licensing and background checks of everyone in the company, myself included every year.
[00:06:31] It’s somewhat onerous if you will from a business ownership standpoint, but it really holds us to a much, much higher standard in this federally non-regulated industry. So I guess what I would say to sum it up is on top of having what I proudly believed to be the best reputation.
[00:06:49] In this precious metal space doing business with us is undoubtedly the safest because of our us mint regulation excuse me, U S mint accreditation, and also [00:07:00] our state of Minnesota licensing and bonding. So it is from that standpoint that we move forward. I would like to just lay out one other piece of.
[00:07:10] I don’t know, call it the way that I look at things before we start. As I mentioned, I started this company with my father. He’s long since retired, but when we started the company, he said to me, Andy, there’s going to be one rule and only one rule or I’ll fire you. And as a 19 year old kid who wanted to be a baseball player at the university of Minnesota, before I hurt myself, I could deal with one rule.
[00:07:33] I mean, at that point, but heck what’s one rule. That one rule was that I would buy something every two weeks. If that’s the only rule I’m okay with that. As I mentioned, he’s long since retired, but I have honored my commitment to him for 33 years. He’s not going to fire me any longer, but I have honored that commitment to him every two weeks.
[00:07:57] I have purchased something for 33 [00:08:00] years and I have never missed a two week period ever for me, accumulating gold and silver is not an investment. And not even a little bit it’s wealth. It’s been wealth that has outlived two world wars, German hyperinflation, the great depression and every pandemic. And so it is from that standpoint that our conversation should move forward so that when people are listening to my advice, take it for what it is in terms of why or how to own gold
[00:08:31] and silver please understand that to me, you are buying wealth. You are not making an investment. Now. It, very well may perform like a heck of an investment but I want people to understand that I look at this as well, that I hope I never need to use if I do. I’m damn glad I have it. And it’s not just for an emergency, could be an opportunity.
[00:08:51] We can discuss what those opportunities would potentially look like down the road. But if not, I’ll pass it on to my [00:09:00] children through my estate outside of probate. And so I just think it’s important to understand that I’m not here trying to sell an investment or anything to anyone. What I’m here to talk about is an intimate relationship that I have with precious metals in the respect of wealth accumulation.
[00:09:18] And with that being said, I’ll turn it over to you guys. Vance and Seth and follow your lead. Yep.
[00:09:25] Vance Lowe: Go ahead, Seth.
[00:09:26] Seth Hicks: I was going to say you, you have you’re the absolute example of dollar cost averaging, then high end. And I guess that frames it in the context of an investment, which you said that’s not your paradigm.
[00:09:39] I, I agree. It’s a wealth accumulation, but no matter the price you’ve just consistently continued to purchase bi- weekly.
[00:09:48] Andy Schectman: Yeah. There, there’s no better way to smooth out the uncertainty curve then. To cost average over a long period of time. But, you know, I mean, in reality, it’s really easy to spend [00:10:00] money and the older you get and the more successful you get, you understand that, and but it’s not easy per se.
[00:10:07] I mean, don’t get me wrong. Precious metals are incredibly liquid, maybe more so than anything, but it does take a modicum of effort. And so it, not only is it accumulation of wealth, it lends itself to savings, to accumulation. And it’s not easy to click. It’s not as easy as clicking a mouse button or pulling out a piece of plastic or taking cash out of the bank.
[00:10:32] It’s just one of these things that allows you to continue to save and put money away, to put wealth away in a form that, for 5,000 years has been viewed as wealth. And in terms of, in times of great uncertainty like this I take great comfort and haven’t lost any sleep, even though I know I could have made more money in other areas, I haven’t lost any sleep because I feel really sound.
[00:10:56] About the foundational qualities that gold and silver possess, [00:11:00] especially in these times that we’re, I’m sure we’re going to get into and talk about.
[00:11:05] Vance Lowe: Okay let me jump in here. So Andy, what I think our audience is really going to be interested in is having you walk us through of how to get involved.
[00:11:18] You know, for a neophyte somebody just trying to get involved. We’ve heard that gold and precious metals are a good thing to be in. How do we look at this? How do we do our research? Is this something, if I have $500 I want to get into, or do I need a minimum threshold throwing a bunch of little questions, but kind of start, dipping into this process.
[00:11:40] Of how our clients can, if it’s every two weeks like you’re doing, if it’s some way that they could buy on a regular basis. Great. So walk us through this. Will you?
[00:11:53] Andy Schectman: I mean, the answer is yes to all of your questions. I mean, you can buy it any way you want, and I don’t think the [00:12:00] amount really matters. I think people of all means should own.
[00:12:06] Precious metals in their portfolio. And if that means $500. Or $5 million. It really doesn’t, it doesn’t matter to me. I think the first thing, and that’s why I was very succinct about saying that this is wealth to me. I think you have to delineate what your. Intentions are, are they to profit? Or are they to preserve wealth?
[00:12:30] So is it a profit motivation as an investment or are you looking to a wealth preservation? And the qualities of precious metals offer in that respect? And then from that, I think it’s easier to identify how you should move forward. I’ll get, guess I’ll give you an example. A lot of people’s.
[00:12:49] Over the last couple of years have expressed great interest and anxiety. Over the way things are progressing, whether it be political or geopolitical or economical, or [00:13:00] even morally or socially, or even spiritually, I hear all sorts of reasons why people want to purchase precious metals. And some people are in much more of a hurry to.
[00:13:11] Get their position in place. And so, there’s nothing wrong with cost averaging. I believe it to be. Like I said the greatest way to smooth out uncertainty, but if you’re late to the game and you’re concerned about where we are I think it’s very important to probably not cost average because.
[00:13:32] What we are seeing is an expansion of interest globally into precious metals. And with that expansion and with the supply chain distortions, as interest has increased four or five fold from what I have been used to my whole career the. Supply and the inability to source readily product has decreased almost [00:14:00] proportionally with the increase in demand.
[00:14:01] And you know, as a us mint authorized reseller, the silver Eagles are a good example. If you would have called me the day before Thanksgiving, 2019, not knowing that your world was going to be thrown into chaos a few weeks later. And you asked me how much some silver Eagles would cost you.
[00:14:25] I would have told you $3 and 39 cents over the price of silver. And if you said what will you buy those back for? I’d say $2 and 65 cents over. So roughly a 65 to 70 cents spread between buy and sell. If you would have bought those silver coins and then decided to sell them four months, five months later.
[00:14:46] In March of 2020, I would have paid you $11 over the price of silver. So what I’m getting at is that we are entering a period of time or have already entered a period of time where volatility [00:15:00] and instability has increased. And this is not just a north American phenomenon, you know, in the U S and in Canada, in north America, we have the two primary.
[00:15:11] mints, the United States meant north America and Royal Canadian mint, north America. Everything else is cross the Atlantic. You’ve got the UK mint, you’ve got the Australian mint. You have the Austrian mint, the south African mint. So you have about six primary mints two thirds of which are outside the United States.
[00:15:30] And when you look at what’s happening and you got to go back to world war II to see inflation anywhere near where it is here right now and in Europe. And so you have an understanding between sanctions and inflation globally, the importance of owning precious metals. And it’s never been more difficult
[00:15:48] to get. And mostly silver is what is becoming harder and harder to get. And don’t get me wrong. We did 600 million in sales last year. So we ended up getting the product, but I’m telling [00:16:00] you, premiums have never been this high nor have delivery delays or difficulty in getting product. It’s akin to buying a firearm to protect your family.
[00:16:10] I think depending upon where you believe we are in the cycle, you don’t buy a gun and then wait for bullets to go on sale To purchase them. I think you buy a gun, you buy enough bullets to make you feel comfortable, and then you cost average at that point forward. In other words, developing a core position is really very important, I think.
[00:16:29] And where we are right now. You could argue, maybe it’s more important to be a little bit less. Concerned about cost averaging and a little bit more concerned about developing a core position. If you don’t have one, however, we are happy to work with any client, any size, and then any timeframe or time scheduled that they have.
[00:16:55] Voiceover: Do you see yourself in that story? Do you feel like you are generating [00:17:00] a lot of revenue, but are not moving forward as fast as you would like? Are you ready for help please call private banking strategies at 8 1 7 2 0 4 7 7 7. Or visit us@wwwdotprivatebankingstrategies.com.
[00:17:23] Seth Hicks: Andy, let me ask you this with the inflationary culture that we’re experiencing and runaway pricing on stuff. Many of our clients have come to us and said, we need some type of investment to put our money to work. Our purchasing power is getting cut in half quickly, and what’s going to happen next year and the year after that.
[00:17:43] So can talk to us about precious metals as a hedge and how you see the future for inflation in America, in the coming year.
[00:17:54] Andy Schectman: I love the question. I don’t mean to put you on the spot either Seth, but I’m [00:18:00] going to ask you a question. And please know that I have maybe one person that I asked this question to every single day.
[00:18:09] I ask people this question every single day, what makes the dollar, the world reserve currency? Do you know the answer to that?
[00:18:18] Seth Hicks: I’m going to say oil and gas.
[00:18:20] Andy Schectman: You are a smart man. You might be maybe number two of all the people that I’ve asked that question to in, in the better part of the last several months.
[00:18:29] And I do, I make a very strong point of asking that question too, to really encapsulate an answer. The one that, the question that you just asked me, because it all centers around that. After world war II, the dollar was the world reserve currency because it was pegged to gold and towards the tail end of the Vietnam war President de Gaulle of France realized that the U S was printing more dollars and issuing more treasuries than there was gold behind it at the treasury.[00:19:00]
[00:19:00] So he sent warships over from France, filled with dollars to New York Harbor demanding gold, and he was given it bleeding over half of the gold. From the treasury down to the supposed at 8,300 metric tons that we have right now, although it hasn’t been audited in the past 60 years nearly at that point, president Nixon closed the gold window in August of 1971, breaking our promise to the world and severing the relationship between gold and the U S dollar making a completely Fiat.
[00:19:29] It was three years later. That Henry Kissinger flew to Saudi Arabia in 1974 and made a deal with the Saudi saying, Hey, we’ll protect you. We’ll provide you a joint military cooperation. We’ve got your back. We’ll sell you arms. We’ll protect you. And we’ll do the whole nine yards for that. You’re going to value oil globally in dollars.
[00:19:53] And and it’s been this way since 1974. Dollars have been [00:20:00] exclusively the currency of OPEC. And so every single country on the planet earth has to own dollars as the world reserve currency in order to buy oil as the petrodollar every single country on the planet earth has to have dollars in order to buy oil.
[00:20:17] And so it has created this massive synthetic demand for the U S dollar. I’m gonna touch a little bit on the federal reserve towards the tail end of the answer of this question, because I think the real inflation has yet to even be thought about, and you talk about a fed that, that says we’re going to get tough on inflation.
[00:20:41] And they raise the federal funds rate by 50 basis, points to three quarters of 1% with inflation at 9%, they say, they’re going to sell off their balance sheet to get tough on inflation yet they’re going to wait till June. If they really want to get tough on inflation, they would have raised it instead of dicking around with a 50 [00:21:00] basis point increase, maybe a 500 point.
[00:21:02] 500 basis point increase or 5%. Maybe they would have sold off their balance sheet after they told us it wasn’t transitory after all inflation. They’re not really in a position to do what they say they’re going to do about inflation, which I believe is only going to get much worse. And here’s the reason why in September of 2021, when we left Afghanistan, with our tail between our legs.
[00:21:26] The day after that something happened and I had been screaming on every podcast I’ve done since then, that was the biggest event of my career, of most of our lives. And that is that Russia signed a joint military cooperation agreement with Saudi Arabia. Let me just say that one more time. Russia signed a joint military cooperation agreement with Saudi Arabia.
[00:21:48] The day after that. They signed the exact same agreement with Nigeria. The day after that, they came on it and announced that they had I a hypersonic ICBM’s on [00:22:00] their submarines and the state department quickly came out and said, this is something we are very concerned about. We do not possess this technology.
[00:22:08] These are missiles that travel many times the speed of sound and hit the ground at the speed of an asteroid. It’s a big, it’s a big difference. And that was their way of saying don’t mess with us. Anyways, that to me was the beginning of the end of the dollar as the singular world reserve currency. And subsequently our fed chairman Powell has come out and said there is room in the world for more than one world reserve, almost acquiescing to this.
[00:22:35] Anyways, I believe the fed is looking for a scapegoat and if you want to find escape, What better way than to weaponize the U S dollar push the Russians out of SWIFT into the open arms of the Chinese who have created something called CIBPS the cross in our bank payment system, very much similar to SWIFT.
[00:22:55] And I believe they are sort of forming a coalition of [00:23:00] bricks nations that want to stand up to, dollar hedge ammonia, and all of them are wondering in one way or another, whether they verbalize it or not. Are we next? Are we the next country to have our assets frozen, to be kicked out of SWIFT? And I think that this is incentivized and hastened the Exodus out of the dollar and ultimately it’s demise.
[00:23:27] Let me continue. Subsequently from this announcement in September of 2021, just a few weeks ago, Nigeria, the second largest OPEC producing country in the world made an agreed. With China to sell their oil and Yuan. Let me say that one more time. China agree to sell their oil and Yuan excuse me. And Nigeria agreed to sell their oil in Yuan
[00:23:56] this is a massive departure from anything we’ve seen in [00:24:00] 50 years. And this Yuan payment is what’s called the Chinese Petro yuan bond. That bond is immediately convertible into the Shanghai gold exchange for gold. This Shanghai gold exchange is a perfect substitute for the Colmex market. And it may end up actually one day being just that.
[00:24:22] And the day after that, or a few days after that Saudi Arabia came out and said, we are in negotiations with China due to the exact up to do the exact same thing. And I believe they have. So you have Saudi Arabia and you have Nigeria being protected by Russia selling their oil for yuan, which means you are also being protected by China because China has embarked upon the belt road initiative.
[00:24:54] Let’s not forget about that. The largest infrastructure project in human history connecting [00:25:00] 75% of human population in mind. You guys, I am going somewhere with this, going to get to your inflation question, but you have to lay the foundation to answer what I think is really going to happen.
[00:25:10] Anyways, this program called the Chinese belt road rail initiative, the largest in human history. It’s connecting Asia and Africa between. Bridges and railways and maritime channels and other forms of connection, even digitally, which is a big boon for silver when you’re talking 75% of human population.
[00:25:33] But they’ve also been doing this with the Chinese digital yuan over 8 billion in transactions have settled on this currency since 2021. And Nigeria is part of this. Declaring any type of action against Nigeria and or Saudi Arabia would be akin to starting world war three. Now, when you talk about the dollar hedgemony being broken, the first crack in this [00:26:00] hedgemony was the agreement to be protected by Russia for Saudi Arabia.
[00:26:05] After all it is the protection of the Saudi kingdom that has made the dollar, the world reserve currency period since 1974. So. Go back to the fed. They tell us they’re serious about inflation, right? But they’re not because if they were, they would’ve done what Paul Volcker did and raised interest rates above the rate of inflation.
[00:26:25] That’s how you get serious. But they know that if they do that, there’s a problem. What’s that problem? The problem is that over 60% of every dollar ever created in the history of the United States has been done in the last two years and all of that money where a good portion of it, I should say. Has created massive distortions and misallocations in resources and capital and distortions in price discovery in real estate, in stocks and in bonds.
[00:26:56] And they have reached all time highs, [00:27:00] accumulated at the lowest interest rates really in human history . So you have, as the Austrian economics, call it the crack up. Boom. Taking place where massive expansion and capital leads to distortions in credit leads to distortions and miss allocations of capital.
[00:27:17] It’s exactly what we’re seeing, where house prices can double in a year where people’s 401k is have doubled , in a couple of years, but that’s not. In 2008, the fed balance sheet was 800 billion. Now it’s 9 trillion. This is courtesy of massive injection of money, low interest rates quantitative, easing, and massive stimulation to the economy.
[00:27:39] And that’s about to end in many ways. So whether we take the fed at their word and say, okay, they’re going to continue to raise by 50 basis points every, every meeting, which is kind of spitting in the ocean. When you realize you have 9% inflation, which by the way, excludes food, energy and housing in 1980, they used to [00:28:00] calculate it a different way.
[00:28:01] If you go to shadow stats.com, John Williams will show you the way they really calculate it now. But anyways, so my answer to you is this. I think if the fed wants to blow everything up, they can do that. They can raise rates and do it quickly. They’re not going to, they can sell off their balance sheet as they’ve promised 60 or 80 billion a month.
[00:28:23] And they’re really not even doing that either. What they’re doing is letting the bonds on their balance sheet mature. And instead of renewing them, they’re just letting them fall off 60 to 80 billion a month. But all of that is going to have consequences, but more importantly than that is what’s happening in Saudi Arabia.
[00:28:42] If we wake up one morning, To find OPEC saying, we’ve decided to open up the sale of oil in other currencies because maybe they feel are we next? Maybe the Saudis are thinking, are we next? And if they do that, [00:29:00] because they’re now being protected by Russia and China, how fast do you see things getting out of control?
[00:29:05] I see it happening overnight where there’s 7 billion people outside the west, and every one of those governments have to hold dollars to buy oil. And what happens when all of those dollars get dumped because they no longer need to purchase oil in dollars, those dollars come crashing onto the shores of the U S if you think inflation is bad now watch what happens to the rate of inflation.
[00:29:31] When three quarters of the world starts dumping dollar. Because they no longer need to take it to buy oil any longer.
[00:29:40] Seth Hicks: Andy, what do you think the timeframe for that? A devaluation and perhaps complete catastrophe implosion would be, I mean,
[00:29:49] Andy Schectman: I think it can happen any day and honest to God, I never would have said this. You got this cloud Schwab saying the great reset you’ll own nothing. And like it. And I remember when he said that, I thought that’s just a joke. I mean, come on. Think [00:30:00] about. Think about how this could be set up. You print more money in two years than in the history of the United States.
[00:30:08] And a lot of that money goes to hedge funds as an example, who borrow it at next to nothing, plowed into equities and real estate and bonds and cryptocurrencies, mind you making a fortune. Those will, those loans are paid back so easily. They make huge bonuses. They’ve created all of these distortions.
[00:30:26] And then you. Weaponize the dollar you kick Russians out of SWIFT. You incentivize them to find alternatives like CIBPS and through all of this, our biggest our wild card. What makes the dollar is being challenged right now by the Saudis. They are. In essence, you can see they are moving away from the dollar as the petrodollar.
[00:30:55] So the fact that they’ve signed the agreements with China, [00:31:00] the fact that it’s actually happening right now, you see Russia doing the same thing. I think what will happen is this, I would not be surprised to see that announcement being made. Now, remember the Chinese have already done 8 billion in transactions on the digital yuan.
[00:31:15] But one of the things that I did not mention that’s very important is that in 2019, April the bank of international settlements, reclassified gold as the world’s only other tier one reserve asset, as it pertains to central bank. Gold is the only other tier one reserve the first or the only other tier one reserve are us dollars in treasuries.
[00:31:39] And it’s been that way. I dunno, since the end of world war II. So think about this. Who’s been the largest producers and accumulators of gold in the world for years and years old, that would be the Russians, the Chinese and the Indians. So all of that gold they’ve accumulated and Allister McCloud believes they have over 38,000 metric tons, which would be nearly [00:32:00] five times what we supposedly have.
[00:32:01] That’s just China. All of that gold has been accumulated at subsidized prices as the price has been. Kept low by the Western banks because they didn’t want to shine a light on the frailty of the Western system. So they would manipulate gold with leveraged futures, contracts on Colmex. And so the east didn’t care about that.
[00:32:22] They were accumulating it, China, Russia, India, they’re all accumulating it. And it was reclassified the world’s only on other tier one reserve. So think of. All of these pieces being put into place, the Chinese have. The Shanghai gold exchange, which takes the place of the Colmex, the Chinese have the Chinese Petro Yuan bond which they’ll use in settlement for energy.
[00:32:49] So if you don’t want to own yuan for your energy, you can convert it into gold immediately and take possession of it. The Chinese have the digital Yuan where 8 billion of [00:33:00] transactions have already taken place and they have built the largest infrastructure project in human history
[00:33:05] connecting 7 out of 10 people on the globe and the U S isn’t part of it. These roads and bridges and maritime Trent channels that they’re building will only be used by military and commerce. So the military will protect the trucks and the ships that are float, floating, and driving, and the trains, everything will be protected by military and it will.
[00:33:25] It will be the Panama canal on steroids and the U S isn’t part of it. So three quarters of the world’s population is being indoctrinated into a new digital currency by the largest accumulators and producers of gold in the world. The world’s only other tier one reserve asset other than us dollars. And they are being coalesced almost forced into a coalition by the U S own action.
[00:33:52] Through sanctions and through weaponizing the dollar and the destruction of the value of the dollar and the fact that [00:34:00] the world can now see that the fed is impotent. If they want to get tough on inflation, then they sure have a stupid way of going about it because getting tough on inflation is what Paul Volcker.
[00:34:13] And he raised the federal funds rate to 19 and three quarters percent in 1980, if they would have raised interest rates to 9% last week, instead of three quarters of 1%, what do you think the stock market would have done? What do you think the bond market would have done lost? 90% of its value? 98%. How about the real estate market with 15, 16, 17% 30 year mortgages.
[00:34:37] You see they can’t get tough on inflation, but if you want to talk about your clothes, Schwab reset moment where you’ll own nothing and be happy. Think of this, all of those assets that have blown up stocks, bonds, and real estate are inversely correlated to what arises in rates. How do you get that rate rise [00:35:00] without taking the blame?
[00:35:01] I’ll tell you how you incentivize the world to move in a different direction. You weaponize the dollar, you push the Russians out of SWIFT. You destroy the value of the dollar over two years through massive printing, you blow up all assets and then comes the big bang. And that is when OPEC says we’re being protected by Russia and China.
[00:35:22] We’ve decided to open up currencies, all currencies or a handful of currencies yuan and Rubel and yen and rupee and whatever Euro, not just dollars and overnight those dollars come flooding home, which creates hyperinflation, which is going to push rates to the moon. When that happens in a matter of minutes, you vaporize everything.
[00:35:47] There’s your great reset. And then they’d come in with their new central bank, digital currency, but the east, I believe they will joined together on the heels or on the back of the Petro. I mean, the digitally yuan, which [00:36:00] has already been proven for two years, that it works or almost two years that it works and they will all pledge a tremendous amount of gold and they will peg it
[00:36:10] using distributed ledger technology showing the gold, the immutability of it. They won’t let it be convertible because de Gaulle from France proved that convertible currencies convert, but they will peg it. And I think they will use distributed ledger technology. And they’ll come out and say what are using it so you can see the gold, but in essence, there are other monetary reasons at the central banks.
[00:36:32] It’s like a central bankers wet dream, having a digital currency for the ability to conduct monetary policy directly to the end user, but more to the point, also being able to remove all privacy and have their fingertips on everything. But the west. I believe we’ll then experience a religious experience.
[00:36:54] Those dollars come flooding, home, pushing interest rates, straight up, making massive [00:37:00] inflation. And it’s the first time where all three of these asset classes. Are inversely correlated at the same time to arise and rates, stocks and bonds used to be inversely correlated. They’ve lost that inverse correlation.
[00:37:14] It used to be called risk-on risk-off. That’s why you have a 60, 40 split between stocks and bonds by almost every advisory on the planet. It’s because they were inversely correlated. Not anymore. They’ve lost their inverse correlation. And when rates rise, they all implode. And so how do you reset the clock?
[00:37:32] How do you throw the monopoly board up in the air and start over and be happy? That is exactly how you blow asset prices up to the moon. You incentivize three-quarters of the world to move away from the dollar. And they do, and Saudis and Russians and Chinese and Indians they’ll be blamed for it, not the fed and the fed is the one who created the problem.
[00:37:52] But when that happens and interest rates, spike, everything collapses. And that’s when you get a company like BlackRock, who comes in and scoops up everything on in the [00:38:00] United States at pennies on the dollar. And then they come in and they issue a new digital currency. Central bank, digital currency, and they too will peg it to gold.
[00:38:08] It is the only way that anyone will ever drink the Kool-Aid ever again. I believe so. When you talk about inflation and I know I definitely bent the clock on this one and I apologize, but it’s important to understand that if you get blurred, By what the fed is talking about. You’re missing the point altogether.
[00:38:25] The fed cannot get tough on inflation. They will not get tough on inflation and be responsible for blowing. The whole thing up. Most analysts will tell you, they expect them to do this a few more times. The market’s going to crap the bed and they come in and reverse course. And go back to accommodating and lowering rates and injecting money.
[00:38:44] But when that happens, that signals the destruction of the end of the U S dollar that, that signals the hand of all credibility for the fed. And so. They’re damned if they do, they’re damned if they don’t in this case, the great reset, I believe lies squarely in the [00:39:00] hands of the Saudis and of OPEC and of the Chinese and the Russians.
[00:39:04] And if this happens, which I would say there’s a better than 50% possibility or probability, you will see inflation many times. If you think supply chain problems are bad now, and inflation is bad. Wait to see what would happen if the dollar is no longer, the petrodollar then all hell breaks loose.
[00:39:20] Seth Hicks: Andy, that’s just an amazing foundation that you laid in and setting the stage for what we may be coming into in these coming months and years. What I’d like to do is in this podcast now and start the second part of our podcast with with a question that I’ll lay foundation for, which is financial privacy in the transaction.
[00:39:43] Purchasing and selling metals. One of the pillars of the private banking strategies is financial privacy, Andy, and our clients are going to be very concerned and motivated to do things in the most private way possible. So I think you just set the stage [00:40:00] perfectly for us and that context and looking forward to hearing you again.
[00:40:05] Awesome.
[00:40:07] Aric Johnson: All right, gentlemen this has been fantastic, Andy, thank you so much for being on the show. You’re talking about a foundation. Holy cow, that was impressive. And a little scary, to be honest with you. And I know that you’re not a peddler of fear. You’re spitting so many facts that it makes the mind.
[00:40:22] It just boggles the mind. It makes me think a lot. And I know that’s what every listener is going through right now. So Seth, I’m super excited about this next podcast that you’re going to have. Thank you so much for bringing Andy on the show. Vance, I appreciate you also facilitating this. This is just great education for everyone listening.
[00:40:37] And of course, to you, the listener, thank you so much for tuning in and listening to the private banking strategies podcast with Vance Lowe and Seth Hicks. If you have not subscribed to the podcast yet, please click the subscribe. Now button below this way. When Vance and Seth come out with a new podcast, especially part two to this one, it’ll show up directly under listening.
[00:40:53] Again, thank you so much for listening today for everyone at private banking strategies. This is Aric Johnson reminding you to live your best day [00:41:00] every day, and we’ll see you next time.
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