Programmable Money On The Way...Q&A with Lynette Zang and Eric Griffin

[Music] hello everyone welcome to our wednesday q a i'm eric griffin president of itm trading with me i have lynette zhang our chief market analyst for those of you who don't know or tuning in for the first time we take your questions that you submit to us via email to questions at itmtrading.com we ask them put them up on a screen ask them live so you get a real true organic response excuse me okie doke mike g asks how do you see pensions and social security payments being handled once the cbdc's roll out well the reason one of the reasons that they've stated that they're doing the cbdc's is because then they can eliminate checks and make it so much easier so everybody will have an account with directly with the fed and they will most likely push a button and that money will just be in your account um it'll be interesting to see if they put a shelf life on that money or if they state where you can spend that money but uh yeah that's that's it'll just show up in your account don't you think that eventually that's i mean you pointed to it but i think i think we both agree like that's the end game right is that the whole point of putting it there is to make it programmable controllable tell you when to spend tell you what you can spend it on so that it gives full control you know under the guise of what's best for the economy right and controlling inflation and all the all the things that they'll make it seem like they'll stress the benefits but downplayed the pitfalls and yeah absolutely i mean look in their own words the advantage for the government to have cbdc's is that they can do lifetime taxes because they'll see every single penny you make they will see every single penny you spend and they can just pull those taxes right out whenever they deem that they want to i mean you'll probably have some level of notice for the central banks right now it takes about 18 months when they put a policy in place to work through the system to see whether or not it actually had the effect but once we've got cbdc's and you're not spending i mean they would have real-time information on whether or not their policies were doing what they wanted them to do so what they said is then it removes any limitations from how low they can push negative rates in other words eat up your principal now you're sitting there and you're watching your bank account evaporate and you are not spending any money what are you likely to do start spending exactly and keep in mind this huge pattern shift which has never historically happened and particularly since you know they started transitioning us into a consumer in the u.s uh into a consumer-driven economy they really started that in the 20s ratcheted it up with credit cards in the 50s and at 59 they started tracking pce personal consumption expenditures which is the fed's preferred gauge for inflation and when you look at those graphs on that piece that i just did on thursday so if you haven't watched that you want to go back and watch that and and look at it more than once you know see that patternship because it's so it's obvious it was like i was working on it because of the inflation and i went oh my god wow this is a huge pattern shift on consumption this is a consumption driven economy and look at when you're online i mean the level of advertising that they're putting in your face is absolutely ridiculous i mean it really is i'm trying to work here and they keep throwing things in my face trying to get me to stop working and go shopping doesn't work but i could see how how it might but look at the shift in that so once they have a cbdc if you're not spending the way they want you to spend they'll have the ability to force you to spend more boom full control full flip and control that's why having physical gold and silver outside of the system is absolutely critical if you want to have any level of privacy or any level of freedom all right so bill r asks why are silver stackers i know you don't pay attention to this right i know you don't pay attention to the prices of things correct not in your realm of research but correct bill r is asking why are silver stackers willing to pay 12 dollars over spot for basically a 2022 american silver eagle now normal normal market right would be probably three to four dollars over a spot currently i looked today and we were at for a 2022 somewhere on average around 15 over spot for a 2022 silver eagle well my guess would be that because it's reflecting a true supply demand market and there's a lot more demand than there is supply correct it's interesting too i've seen a bunch of people in the comments recently saying like that the dealers are charging um you know 20 over a spot and i i wanted to a point of clarification here that we're not and no dealer is charging well i can't say no dealer because i can't speak for everybody but um was charging 20 over spot uh that that supply and demand factor that you're speaking of it trickles from all the way from the manufacturers down to the people who mint the coins and if it's the u.s mint then it's the u.s men's charging more then it goes to the distribution channels and they're charging more so it's the entire supply chain is is factored into that 14 or 15 over spot price it's not the dealers aren't determining that they're gonna charge that because then all that would happen is one a couple of dealers out there would just undercut it and then no one would buy from anybody it's no one would buy from the people who are charging 14 or 15 over because there's people out there charging for over so that that price actually gets to dictated all the way through the supply chain down to the dealer so um so i wanted that to be clear to everybody like if you see a price on the internet on somebody's website and it's high but you go to another website it's high you go to another website at thai it's because it's throughout it's the supply and demand fundamentals that is creating that price discrepancy and and we were i think gosh when was the last time you and i talked about this because we talked about premiums right right and the premiums are always expanding and shrinking especially in this market right now i mean 2012 to 2018 we really didn't see much difference in the in the premium it was constantly really in that low one spot but now we're seeing it increase decrease increase decrease quite regularly and the more there the more the demand is the tighter the supply gets the more the premiums are going to push up right and and you know let's keep in mind too because people look at spot and they think oh well that's how much gold and silver are worth and that's not really true that is a contract price for with dependents because they're different size contracts but 5 typically 5 000 ounces of silver 500 ounces of gold and it doesn't cost very much to create a whole bunch of paper gold and paper silver so it makes it look like there's a whole lot more of it than it is don't be fooled by that because neither one of those spot prices reflect the true fundamental value and ultimately one i mean i learned a lot from my uncle al but one thing i hundred percent in the physical world a hundred percent of the time things always go from under valuation to fair evaluation to over evaluation to fair evaluation to underevaluation in a constant loop and if it's in the physical world it doesn't go to zero unless maybe if it's for a rock or you know some it's a fad but on anything like gold or silver or fine antiques or fine jewelry or find whatever you know you always have that infinity pattern now intangible assets that's completely different those can and do go to zero frequently but when you're in the tangible world there are you know there's more utility and therefore there's more buyers depending upon what it is and bill to answer your question a different way too if you're if you're liquidating i didn't i should have done that before i came in to this q a was look at what what is the current market bid price for a silver eagle because it's much higher now if you were to liquidate your if you had a monster box of silver eagles and you went to sell it right now into the market you're gonna get a lot more than what you would normally get for a premium um over spot in a normal market right if if the spot market is getting you know you're buying for four dollars over a spot in a normal market and maybe you're getting a dollar over spot for when you sell it right now it's probably excess of six or seven or eight dollars if i had to guess it might even be more than that for a uh 2022 silver eagle so you're actually getting more in this market too the the premiums on the on you know are rising on the bid and the ask yeah all right so jen l asks i believe that we are headed to central bank digital currencies and a one world currency central government if we all have to use their cbdc's how a how can we convert our gold right b what if they ban us from converting gold into cbdc's what if the government shuts down gold dealers and says they're no longer allowed to buy gold can this happen if so what would we do to prepare for that well that is really let's let's take one piece of that at a time and uh but a great question jen i agree with you that we are headed to a cbdc not necessarily a one-wall currency central government and the reason why i don't think that we're going to have i i or at least it won't appear to be that way it could very well be that way right now but they need to keep the new currency as close to normal or as close to what people are used to as possible to get the fastest and easiest adoption you can take a look at what happened with china and china has the ability to force the population to adopt and you know they they've had a bit of a hard time with that even so so they need to keep the currency as close to what we're used to as possible so my bet is that we're going to end up with the imf's digital sdr as the world reserve currency because that's a basket of currencies and then every country will have a local cbdc so we'll have the digital dollar the digital yuan the digital euro etc so i think that's more likely than just one big one because everybody would know and they would get a lot of pushback so if we have if we all have to use our cbdc how can we convert our gold and that goes back to like we would convert if you were selling the gold back to us we would convert it into whatever the local barterable legal tender currency is so that really wouldn't probably change from what we're already doing that would be the same if it was a cbdc we'd sell it we'd give it to you in the central bank digital currency because we'll all be forced to be using it exactly now what if they ban us from converting gold to cbdc's which is a possibility i can't say that they won't do that because that's certainly far beyond my pay grade to be perfectly honest with you um but would you like to add something well don't so don't you think too like i i would i would guess and this is a question for you i would guess that if they they wouldn't necessarily ban it from converting gold into a cbdc i would say that they would do what they've done in the past historically which is go to a confiscation thing and then make it illegal to own and then you would can you would essentially then convert it you would basically be giving it to the government then they would be converting it into it you would be giving them the currency right you would give them the gold they would convert it into a central bank digital currency whatever the set price was and then rather than just banning you from converting it then they can control the asset right exactly yes thank you for that because you're absolutely right i mean their goal would be to get all the gold so yes and what if the government shuts down this goes back to your same answer what if the government shuts down gold dealers and says they're they are no longer able to buy well can this happen anything can happen so i can't say yes or no and how would we prepare for that well frankly that's why i only buy collectible gold because it is in a different classification because remember when they do some even if you listen to what's happening right now when a government wants to punish you they don't want to make it harder on themselves right they just want to punish you so making monetary gold illegal like they've done historically in the past and even recent in other countries um yeah that that's the most likely outcome from that and so if you have collectible gold and it's in a different category then you'll still have that as a good currency to use a tool to barter with which you could either convert into the cbdc's and use the cbdc's or in some cases possibly even making that transaction directly gold for whatever it is that you're buying right and where where lynette gets this from for those of you who haven't been watching our channel forever because we do talk about this on a somewhat regular basis but um the kind of the precedent that we use is what was said in 1933 which is gold coins that are rare and unusual have special value to collectors those type of gold coins were exempt from the confiscation in 1933 so that's when she says i wanna you know i buy collectibles because we know that historically they've been safe in the past doesn't guarantee that in the future that they will be right but like eminent domain laws like we've talked about in the past kind of make it more difficult because by law they have to give you what is the current market value for something that they're going to take like if they're going to take your land to build a freeway they have to give you the appropriate fair value exactly so um that's that's the reason why we and i'm the same this exact type of goal that i buy too because it's the safest it's the safest right and there's and it has and back to the premium question right is the premiums on those fluctuate differently that's totally driven by supply and demand so while some of the coins what value will be derived by whatever the spot price is if supply gets tight and demand gets really hot and people are trying to buy a bunch of it then the premiums go up so right maybe instead of 30 or 40 over spot a value it jumps to 80 or 240 percent of our spot we've seen before so there there's extra benefit in there that's layered in there as well right and and i just want to add to when they did that back in 33 another piece of it is they wanted to be able to continue to buy and hold gold without oversight because there were jewelry dealers etc etc but those all had to report there was oversight with them so i mean can that can that be different this time sure it can who can guarantee that that's beyond but it's not likely to so just as a general rule of thumb and this is i don't feel the same way about silver regarding that but you look at what you what the government classifies as monetary gold and that's easy just look at the kind of gold you can hold inside of an ira so i do not buy the kind of gold that you can hold inside of the ira period because that's easy for them to confiscate inside of the ira but it's also that that really tells you what their definition is of monetary gold yeah and if you ever have if any of you guys ever have questions about this it's one of the things that we when we talk about the strategy every single type of gold and silver has its place right in your overall goals and objectives it's just a matter of what are you trying to accomplish and what's right for you and and people you know say what's the minimum i should have well you know depends it totally depends what are your goals and objectives what's your concerns what are you preparing for so on and so forth so you can always schedule a call with one of our experts here and you know anytime and get the get the advice that you need how'd that yeah have that conversation and it's an important conversation to have sooner than later all right so reagan b asks thank you for your stellar work thank you knowing about the plan for the cbs dc's coming how specifically can we avoid it is there a workaround i have gold i have silver i have bitcoin i also have property that's becoming more and more sustainable how can we specifically avoid cbdc's they're you know if we can come together in community before these are put in place maybe we have a shot but i'm i'm pretty certain that this is the future of money so the only way that you can specifically avoid it is like i uh talked about where you don't convert your gold and silver once all at once you kind of hold it back and because there is there's different kind of gold and different kind of silver based upon the function of what you're trying to accomplish but the only way really to avoid it the only work around is to not put everything you have into cbdc's that that's how you do it so you know for me part of it is in the um legacy kind of gold coins that i anticipate where the goal is just to pass them down through generations and generation kind of like the queen of england right you look at the wealth that has lasted in families at least 300 years and they're all hard assets gold real estate rare collectibles that's how you get a and how many how many currency crisis has england had in the last thousand years do you think that's how you get around it you hold a good high quality hard assets physical gold because when you hold it you own it if you don't hold it you don't own it regardless of your perception i personally cannot think of um any any other way to avoid it i'm i'm really happy reagan that you have such a nice diversified portfolio and you have that and you're more and more sustainable that's excellent that's how you avoid it you're doing the right things all right so george k asks how much time do we have to pay off our variable rate date debt such as a credit card before hyperinflation becomes too high for us to pay it off as soon as possible george because we're already watching raising rates and that's you know that's not going to be stopping anytime soon especially when the fed attempts to run off their balance sheet which they're now saying to the tune of of what almost a trillion dollars a month 950 billion a month no flipping way yeah a trillion a month yeah no flipping way are they that's craziness you want to engineer a soft landing [Music] i mean i hate to say it but it's it's almost laughable what they're talking about doing you know half of 50 basis points a month and then running off their balance sheet to almost a trillion dollars a month it ain't going to happen i'm telling you right now they may do it one time [Music] but do you realize what the markets how the markets would respond they even there's even been a bill submitted i was i was hearing this as i was driving into the office today where they're just going to take the fed down to one mandate and that is to fight inflation yeah you mean the inflation that they created with all the money printing and the easy money policies and interest rates nailed at zero and all the more debt that has been grown that now has to be rolled over and will be rolled over at higher rates already so it's it's it's a joke i mean it is seriously there's there's no way they can do it i'll go on record saying they'll try it once well and they're going down a path central bank digital contribut currencies will be a solution to solve the problem don't believe it until they put a component of gold inside of the new currency to get your confidence again don't believe it it is not the solution because they don't change behavior no they just double down on their behavior it's ridiculous even if they put in a component of gold it's only going to change their behavior well no well because they can manipulate that component of gold right well they'll start to do that right and they'll start to do that and then they're not going to go to 100 backing no but they'll they'll go to whatever level they feel will garner enough confidence public confidence to use the currency again but remember that that on average so i can't say how many times this is going to happen but on average they do three overnight revaluations because they do one they say okay this is going to fix it and somehow people believe them i don't know why but somehow people believe them right until very quickly they find out oh that didn't really that didn't stop the inflation it didn't change anything my circumstances are getting worse and worse and worse right but somehow i mean actually i had a client years ago years ago who had worked for a delta and had his pension basically demolished and given to the pb gc whatever he that happened to him three times three times three different airlines he's a pilot and yet when i talked about the possibility of that happening to him again he couldn't believe it i said but you've already experienced it three times how can you sit there and say this could not possibly happen again right i don't get it i to this day i don't understand reception managers yes yes and that's the trouble with the currencies right what did they knew no they knew two key things they knew many other things but they knew two key things they knew that people marry the legal money of the state and they also know that people do not understand inflation not one man in a million so they use those numbers people get blinded by numbers right and they use that and they rob you absolutely rob you until you end up with nothing so you know variable rate debt we said we were going to watch what's going on with the interest rates they're spiking you want to get out of your variable rate debt as quickly as you can all right well that's it for today oh amazing well if you haven't done this already and i really hope that you have but if you haven't you need to get your strategy in place so you can survive and dare i say it even come out the other side of this mess better than you're entering it and so you need to start your gold and silver strategy and you can click that calendly link below and talk to one of our experts and they'll help put together a strategy based on your goals so have in mind this is what i'm trying to accomplish these are my goals and and sometimes that's hard to do they'll walk you through it with questions so that you can solidify and define what your goals are and then get your strategy implemented as quickly as possible but if you like this please leave us a thumbs up make sure that you leave a comment and share this video with everybody and anybody that you can think of that you care about i mean it's critical that everybody understand what's going on these days and so with that i'm going to say please please be safe out there because it's getting more and more dangerous it is it just is and until next we meet bye bye [Music] you

2022-04-14 21:10

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