Loading...

Style Switcher

Predefined Colors

Is 1 Crore Enough To Retire? How to plan your retirement?

Hi friends, welcome to Yadnya investment academy. We are going to talk about a topic of financial planning on Friday. And today's topic is very interesting. Because this question is asked regularly on many social media channels and workshops. That people have an amount in their mind that is 1 crore rupees. We think that if we have 1 crore rupees, our life will be good. So this question remains in the mind that if I have 1 crore rupees, can I retire now? Am I financially free? I don't have any tension of retirement now. Now whatever work I am doing is extra. So that 1 crore rupees is enough. And if you have retired now and got EPF money and total is 1 crore is it enough for you? And if it is enough or not, how much can you spend in both questions, when is enough and when is not. We will touch on all those things in this video. I will explain everything through a calculator. You can check that calculator on our website investyadnya.in as well. We cover many topics of financial planning in this session. If you want to make your own financial plan, then go to investyadnya.in website There are many products related to financial planning.

There are 1 to 1 sessions as well. You can check that out. Now I am going to my website and I am sure you can see my screen. If you go to the tool and calculator, here you can see the retirement calculator. I don't think you will get this anywhere else. Now the question is, suppose I have 1 crore rupees, is it enough for me to retire? First of all, I will be asked what is my age? I am just giving an example, 50.

Suppose I am 50 years old, what is my life expectancy? It is important to know when you will be retiring. I think we should keep it around 90. I am keeping it at 90. How much is the expense now? If you are retiring and you have 1 crore rupees, how much do you want to spend? What is your monthly or annual expense? Suppose I am thinking that I have 6 lakh rupees. I have put 6 lakh rupees here. How much inflation are you assuming? How much will my expenses increase every year? If India's inflation is around 6-7%, then you can assume that. Suppose 7% inflation till the end of life. Current asset, how much money do I have? I will put 1 crore rupees here. I have 1 crore rupees here. I will put that here.

How do you invest this 1 crore rupees? How much return will you be able to earn? This is a very important question. What type of investment do you want to put? Do you want to put it in PPF? Do you want to put it in Senior Citizen Savings Scheme? Or do you want to put it in FDs? Or do you want to create a portfolio of Mutual Funds like Hybrid Equity Funds? This is very important. Let's take all the scenarios. Suppose I want to put it in FDs. I don't want to do anything special.

I will get 7% return in FDs. Whatever is the post tax. Or whatever you think. You get 7.5% but let's keep 7% for calculation. Let's keep 7.5%. Let's keep 8%. We have put it in bonds, Senior Citizen Savings Scheme. And there is some money in EPF. So, we have kept some money in equity. So, my 8% will earn 1 crore rupees corpus. Which is 1% over inflation. I have taken 7% inflation and 8% returns.

I have to put these 6 fields first. If I submit this, My retirement corpus is in deficit of 1 crore. This means that I need 1 crore more to develop this scenario. If I am 50 years old and I have 6 lakhs per month. And 7% inflation. And 8% growth. I need 2 crores. 1 crore is not enough. Now, let's change the scenario. What should I do if I am not able to do it.

I can either reduce it. I don't spend Rs 50,000 per month. I can do 30,000. Then we can change the amount. We have done 36,000. And then we have put this change. So, 21 lakhs is still less. So, basically it will come to 3 lakhs. So, now our retirement corpus is only 67,000 less. So, I can spend 3 lakhs per year. If I can spend Rs 25,000 per month. And if I take 7% inflation. And 8% growth. Then 1 crore is enough in 50. If I spend 25,000. If I spend 50,000 with same scenario. Then I will need 1 crore. Now, you will say that I invest in mutual funds. I know investing well. And I think that my corpus can earn 10%. If 7% is inflation. Then I think that my corpus can earn 10% per annum.

Like our approach. You must have seen many videos on retirement. If you want to understand anything. Then put it in the comment section. If I think that I can do 10%. So, let's try it on 6% after spending 3 lakhs. So, now our corpus will be 47 lakhs. So, it means that I can spend 4 lakhs or 4.5 lakhs. So, 4.2 or 4.3. Means I can spend around Rs 35,000 per month. If I can earn 10% return. Now, you will say that I have already retired. I am 60 years old. And now tell me what is this scenario. So, in that I can spend 50,000 per month. So, in 60 years also if you are earning 10% return. Then there is a deficit of 24 lakhs. If this scenario plays. You say that I have inflation. I don't spend much.

50,000 per month. Next year, I will grow according to 5%. Then it is good. 5% inflation, 10% rate of return, 1 crore rupees. You have enough. You have just enough. So, you can spend 50,000 per month. If you are 60 years old, you will get that money for 90 years. Now, there is one more thing. Many people think that I have a pension. I have a house. He is giving rental. Or I am getting pension. Suppose you are getting pension of Rs 10,000 per month. Means it comes more than that. But I think 10,000 per month. So, I am getting a pension of 1,20,000. And we will make it 7 again.

Is there any growth of pension? It seems that 2-3% growth is there. So, let's grow it by 3%. Till when will the pension come? Will it come till 90? Will it come till life expectancy or will it come soon? Many times, for limited time, money is going to come. So, we sell those things. Rental is going to come. I have to sell that house after 10 years. So, you can put that also. So, I have to get pension till last. Till 90. So, then in 6 lakhs, 7% inflation, 1 crore, 10% and all. So, then almost I am there. Means 3 lakhs is the only deficit left. So, in this way, you can find out that the money you have, is it enough for your retirement? So, now you can change the amount.

If you have 2 crore, 3 crore or 50 lakhs, then you can change the amount. Accordingly, you can find out how much expense I will have after retirement, my work will go smoothly till life expectancy which I have planned. So, this will be very very helpful for you. So, if you like Calculator, then do share this video with everyone. I think this will be very helpful to many people in retirement planning. And from the perspective of financial freedom also. And if you want our financial plans and personalized approach, if you want to understand how to get 10% rate of return, or what all I can do after retirement, then you can go to our website and call our customer service, sales team or relationship team. You can WhatsApp or call or email. And then we will reach out to you and we will surely try to help you on those things.

That is all I have. I hope, do subscribe more. Because the topics of financial planning are not going on much. So, do subscribe and like the video if you like it. Have a great time, friends. Jai Hind..

As found on YouTube

Retirement Planning Home

Read More

Step 1 to Putting Together a Good Retirement Plan

[Music] what do you think is the first step in putting together a good retirement plan a lot of people start by looking at how much they have saved and thinking about how they're going to get that money out but that is not the first step to a good retirement plan your first step is to think about what you want your retirement to look like what is your retirement going to look like what are you going to spend money on what are you going to be doing in retirement how long is your retirement going to last that's your first step and you want to think about three different phases of retirement number one is the go- go years this is when you're first retired and you're active and you're going so you want to consider what do you want to be doing during that period of time do you want to travel do you want to travel over seas or get an RV do you want to travel to see grandkids that live in different places of the country how do you want to be spending your time the second phase is going to be the slowo years so once you've done and gone and and enjoyed a lot of retirement you'll just move into those slowo years and you'll be going and doing less probably spending less but you need to consider what is that going to look like for you are you going to still be living in the same house or do you want to downsize do you want to be closer to family what is that period of time going to look like and what will you be spending your money on and then the last phase is the no-o years and this is when you've reached the end of your retirement years and you're not going and doing because you can't go and do as much as you did before you may even need help you might need help with assisted activities of daily living you might need some assistance uh with Mobility with grocery shopping a lot of different areas that you could need more help with you may even need to be in a facility because of some Dementia or some other health issues so you want to think about that and think about where you would be living at that point in time and what that would cost so that you know what your retirement savings needs to cover so you take the total of all of those the early years where you're going and going and going those go- go years the middle years where you're not going as much you're probably not spending as much and then those later years where you may need more help you may be spending more money where you going to be how long are those going to last and what might you spend and putting that together that allows you to build the foundation of your plan now we're going to talk about that more in the next video so please subscribe to this channel if you don't want to miss it I don't want you to miss it because I want you to be on your best path for your retirement [Music]

As found on YouTube

Retirement Planning Home

Read More

RATE OF RETURN: What To Expect in Retirement.

Rate of return is a function of risk. It's kind 
of unique to each individual. We have a metric or   a gauge that we think certain retirees should be 
at. The level of risk is really unique. There is   a balance to not wanting to take too much risk 
because it's great to make a greater return,   but in markets like this, it's a lot 
harder to stomach the losses. Whereas,   if you have a well-balanced portfolio you 
may not make as much in the up markets but   it certainly softens these down markets. So, 
as much as we want to say there's one specific   rate of return like, five percent should be 
my rate of return or seven percent should   be my rate of return.

It really is a function of 
someone's risk and unique to them as an investor.   As far as the ranges of rates 
of return and retirement,   it should be somewhere between four 
and a half to eight percent. Again,   the more aggressive you are you could target 
that eight percent rate of return you just   have to expect more volatility and more 
price change in your portfolio. The lower   the rate of return expectation, the less 
volatility someone should experience. Which   is again a smoother path into retirement 
it just might mean you don't make as much.

As found on YouTube

Retirement Planning Home

Read More

Noble Gold Investments IRA Reviews| Worth the Fees? #goldinvestmentreviews

Noble gold Investments Ira reviews worth the fees I strongly believe that there is a perfect fit for every type of investor not only that but Noble gold is among the best and unique among precious metals Ira companies you can invest in with just five thousand dollars and in today's Noble gold review I'll share with you everything I've learned in my personal interactions with them so you can make an educated decision before you potentially invest not only do I have a personal relationship with Noble gold Investments which I'll share here but if you dive into other Noble gold reviews like I did you'll learn that their education process helps people understand the basics of investing in gold silver platinum and Palladium Investments Noble gold offers five minute individual retirement portfolio gold and silver retirement account transfers and gold Ira rollovers still unsure about whether to choose Noble gold Investments or not continue reading my Noble gold Ira review to find out the exact reasons why I feel this is a top-ranked precious metals company who owns Noble gold is Noble gold legit Noble gold reviews are incredible pros and cons why choose Noble gold Investments precious metals Ira approved one gold coins and bars two silver Ira coins and bars three Platinum coins and bars four Palladium coins and bars frequently asked questions about Noble gold the primary founders of noble gold are Charles thorngren and Colin plume in a world where anyone can speak up loudly about a bad experience that says a lot about the service and customer care provided by Noble gold Investments under the guidance of noble gold you can protect your retirement by Investing in Gold and Silver Platinum and Palladium and other precious metals Ira approved the Canadian gold Maple Leaf coins are known to have a purity of about 99.999999 this proofs coin is one of the two American Gold Eagle coins versions when it comes to Purity only a few coins are present in the world that can beat Canadian gold Maple Leaf coins the Canadian gold Maple Leaf coins are known to have a purity of about 99.99999 Noble gold offers popular silver coins investment among coin collectors which are given below these are America's official silver bullion coins which increases their worth in Precious Metals investment the popularity of these coins explains well that these coins are Ira approved for investing the dominations of these coins include one tenth of an ounce one quarter of an ounce half an ounce and one ounce it was first issued by Royal Canadian Mint in 1988 and is known as Canada's official Platinum bullion coin it contains bullion coins of gold and silver that can easily be liquidated in case of a stock market crash because the survival pack is eligible for home delivery of physical precious metals as discussed earlier the unique and Flawless Noble Gold's customer service has acquired almost five star reviews if you want to try your luck in Precious Metals investment you can get a consultation from Noble gold Ira there are various ways to invest in gold or other metals Noble gold is the top precious metals company that will help you throughout the process if not you can also consider investing in gold jewelry

As found on YouTube

401K to Gold IRA Rollover

Read More

Inequality – how wealth becomes power (1/3) | DW Documentary

this is the airfield for private jets at düsseldorf Airport entrepreneur Christoph gröna is one of Germany's super-rich people who have a lot of say in this country but a rarely heard in public corner is worth millions and private assets and company shares all of it and self-made [Music] let's say you have 250 million you could throw it out the window and it'll come back in through the door you can't destroy it you can buy cars and they go up in value you buy houses and real estate is worth more you buy gold and the gold prices go up you can't destroy money by consuming we've been following coasts of Kona for six months through him and many others this film takes a look at inequality in Germany a first glance Germany is a rich and powerful country full of opportunities but if you look closely you'll see wealth is more unevenly distributed here than in just about any other industrialized country success often depends on your background [Music] why is that do the differences threaten social cohesion and democracy to find some answers we go around the world and speak to a Nobel Prize winner and other experts who have looked deeply into the issue of inequality the world is at a crossroads today people sense that the control of their nation is being stolen from inequality is the most pressing social problem facing us today welcome to the land of inequality [Music] it's almost 8:00 in the morning in Berlin good longer my house the driver is already waiting when the boss comes he has to get moving right away Christophe Colonna a teacher son has made his way to the top often working 20 hours a day he's what's called a high achiever I don't have a driver because I'm lazier I think I'm too good for that on the contrary I like driving I'm a passionate motorist but the question is what does my company pay me for for sitting behind the steering wheel or for working corner earns his money with real estate hardly any company in Germany builds as much as his cg group does and in the housing market the prices only go in one direction upwards his company has just bought a very special building the developer wants to turn their Stieglitz a Keisel office block into the tallest residential tower in the city custom governor is always up for a challenge he wants to run all the way to the top in less than five minutes a race against himself 30 floors 120 meters 600 steps an employee times him with a stopwatch it's half a minute faster than the last time angry well it was pretty perfect but I could still do it better I could still remember back when I was finishing high school I watched Boris Becker when in Wimbledon and I thought just you wait I'll be right up there with you you know today's an apartment here will cost between five and ten thousand euros a square metre from up here corner can look down on many of his construction projects you can actually follow the trail of the last 20 years here in Berlin nearly 4,000 apartments and another 3,000 are under construction we've played a big role in housing construction here one stop this is Coronas headquarters in Berlin every company like this is a realm with the boss at the top and the staff beneath him corners company now employs 500 people they all have good contracts he says the 2015 tax statement from your brother there's a lot to pay one of his most important employees is his personal assistant Angelique Lisa you still in Dusseldorf then he'll be going on to Zurich then tomorrow he'll be back in Berlin Friday and Leipzig and then he'll be away over the long weekend and what about sleep not a lot there are rumors of between four and six hours I also don't think it'll be much more depending on how busy he is or whether he's traveling you can tell from when his emails arrive I'm an assistant like her has at least the same level of stress I have the boss is only as good as his assistant you don't notice it with her she's only been in the job for a few months so she's still fresh but she also has the Constitution for it Mario Lauterbach guards the door downstairs he's had a permanent contract as a security guard for half a year benzine outside gets in yeah but I went to school for 14 years I speak two or three foreign languages so if I ever got the opportunity again and had the initiative I could imagine becoming a lawyer or a judge that's something that interests me a lot latter Bach earns about 2,000 euros a month gross that's enough for a modest life but not much more his boss on the other hand has been able to build up millions of euros and assets can the guard live on what he earns from me that's what counts if he can then I've done my job as an employer if I pay a guard so little that he can't live off a salary then I've done something wrong so you think comparing him with you is nonsense of course it's nonsense I've stayed home from work due to sickness three times in 30 years ask my guard how many times he's been out sick if I have a slipped disc I come to work if I have a 40 degree fever I come to work if my wife quarrels with me and keeps me up all night I still come to work ask my security guard comparing us isn't fair or correct justification is miscarriage dismissed fish dish will he ever be able to afford a house with a pool of course not but he does not want that I know my security guards I know my caretakers would you like to trade places with her groaner didn't say yes right away I guess if I had to answer spontaneously my first answer would be no and I believe if I thought about it for a long time it would still be no that's actually got a lot less to do with him as a person or what he does it's just a question of my own attitude I wouldn't want to have that much responsibility would you like to have a house with the pool yes but then maybe not here in Germany where in Greece so whereas the one can only dream of a house with a pool the other can afford several properties Kristoff corner has a villa in Berlin and a penthouse in Cologne with a view of the cathedral but little time off how much distance should there be between those in the middle and those at the top and how big is the gap in reality there's a lot of data about poverty in the poor but very little about the rich estate asset registry would help but there isn't one and so a team from the German Institute for Economic Research is trying to find out more if you try to represent the wealth distribution in Germany in a graphic way you can do it quite simply on an a4 sheet of paper and a few look you can imagine a coordinate system like at school with an x-axis and a y-axis and with the y-axis this here I show the amount of wealth you can easily display ninety-five percent of the population on this sheet here in the – area because a part of the population is in debt or even insolvent and then there's a relatively broad area where assets are virtually zero until it finally starts to increase exponentially at the outer edge instructors this describes 95 percent of the population but the question is of course how far away is the richest person from this manager magazine puts the Reimann family business at the top of its rich list for Germany the family's estimated worth thirty three billion euros so if 95 percent of Germans are graphed on an a4 sheet that aemon's would be a whopping six point six kilometers further away every era has its mother lode in the past car makers made big money earlier still the families who owned the big trading houses became hugely wealthy now real estate developers have joined them gustaf corners rice began here in leipzig 20 years ago he invested when prices below it was all ruins or scrap [Music] I love everything you see to the left and right has been redeveloped built and rented out by us his company says it now builds one in three new apartments in the city but coast of Cavanaugh's Korea has been unusual he was not born a boss he used to work on construction sites himself every other stone has been replaced here with expertise with a sense of proportion to create an entirety and it helps if you have worked on scaffolding like this yourself I can do masonry I can lay concrete I can lay steel I can plaster walls lay tiles put up the sods that was my career the company started out as christophe grew nabokov Steen's to building services then we took on specialized construction then contractor work and project development until we became the company that we are today Kona has also invested in this former industrial district this is the class family Thomas and Kirkland with their two children they live in a rented apartment around the corner they wouldn't mind having one more room well you have to say it's an oasis in a built-up environment each building has nine classic apartments and two penthouses one large and one small at the top I'd like to show you all the floor plans in the trailer so we're about where the woman is right no the house is next to that the houses themselves or at least 20 meters further back to the penthouse apartments there we have a four room 123 square metre apartment with a 60 square meter roof terrace I think we need to be realistic the penthouse isn't what we need or what we can afford I take a classic four-room apartment with a balcony or shared garden I think that's what we'd be looking for that would interest us then let's take a look at a floor plan parents would practically have a separate wing here a sandpit playground and recreation area so in general the target group is young families yes typical young families give me some idea of the scale I'd be interested in a four-room apartment first floor would come at three thousand four hundred fifty euros the foreign apartment would cost four hundred and fifty thousand euros to buy the classes are a typical middle-class family they both have good jobs buying property used to be the way to start building up assets was a Matthias tarbush at the spoke we were 30 before we could even start to think about our old age and accumulating wealth to date now I'm almost 40 and we still haven't managed to put away much in terms of reserves I even come up with the minimum amount of capital so that banks will be able to give us a loan a sticking point the screens not food the other fueled 94 percent of buyers here aren't from Saxony that means this is currently a market where normal Saxons can't participate even each Michi encode the class family isn't the only one with little chance of owning their own place in all the richest 5% of Germans own half the apartments and houses every second person owns no property at all most Germans rent and are having to pay more and more for living space the purchase price of an 80 square metre apartment has soared in the last 10 years leipzig is an extreme case only 10% of the people here own real estate 60% of all new buildings and 94% of refurbished all buildings have gone to bias from out of town [Music] don't you want to get your shoes dirty mister I can feel pretty fastidious while the Klaus family hesitates others are snapping up the houses on the market did he make a killing again he did did he get another bargain we keep getting repeat offenders here they buy one house after another this is the third right it's his second his second complete one and the apartments before we went for a meal and I said it won't cost less than 4.5 and he got it for 3 well I'm crazy right today the time is ripe for us to make money here with the standard and my company urgently needs it that's not a crime no I don't think it is such a bad thing the real estate market is symptomatic it enables those on top to make more profits while others can hardly afford to live in their own city anymore behind this is the more basic question does profit for the one mean loss for the others today's typical property buyers are rich people well-off retirees yes and investors the others like Thomas Klaus and his colleagues can only look on [Music] honestly when I look at what's being built in the sluicey district I need a practical apartment to live in and I don't think they're building them to be lived in they're building them as investments and I can't join in that game none of my colleagues can't either that probably also creates housing that doesn't meet the needs of the city and most of the population scary because many people are being left behind banks digna there are many parts of life see who are nowadays you find one place with high priced apartments and another where the people who just couldn't afford to live in them anymore had to move to it's a crappy situation when you say that for whatever reason you have to get out of your apartment but you'd like to stay in your neighborhood but that's not possible [Music] in a neighborhood in the eastern part of Berlin bigger schlosser has been the scene of an escalating conflict between residents who are afraid of losing out economically and the man they accused of making the deal of his life here Gustov kkona arrives and his security guard stays close by when he's here he usually gets police protection I'm going to be disturbing your lunch break today so let me at least say good morning Korea has been the focus of an angry backlash his opponents filmed the first encounter with residents and protesters let me ask you is this a dialogue it was nice whether they were meeting me for the first time we could call it the birth of the boogeyman they got to see an entrepreneur who has arguments on his side and won't back down and it's precisely this stupid thinking that prevails in society there's always a direct connection he makes money and he's become wealthy so we must have stolen it from someone it's all about politics he's charging 12 euros a square metre nobody can afford that well we have smaller apartments 35 40 50 square meters which any nurse can afford even at 14 euros a square metre as long as it's well made has great light she'd love to live there instead of in 60 square meters over there for 8 euros a square metre Clara knows that many of his workmen or the police officers who protect him had difficulties finding affordable housing but he says his millions of square meters are not the cause of the problem but part of the solution [Music] how do you strike the right balance between rewarding achievement and letting everyone share in it what consequences does inequality have for society the real general finding is that inequality being a way of making people feel more distance from one another stretches the social fabric it phrased the social fabric it pulls us apart from one another physically experientially and psychologically there's nothing necessarily wrong with inequality of course people have an unequal endowments of intelligence and beauty and they have different parents and where I start to worry as a sociologist is when people accumulate dynastic wealth and dynastic wealth means a lot of money that gets transferred down through generations because that starts to stabilize systems of inequality across society and that constricts the opportunities available to everybody else coast of Ghana may have worked his way to the top but even for him there's still a glass ceiling you can't buy your way into the world of dynastic wealth you can only be born into it Kirsti on fly – best all-time traces his family tree back to the year 1135 he's a descendant of the fogers one of the richest families of the Middle Ages you can always use a winch to pull in the deer and you've killed a stag which normally weighs well over 100 kilos then you need mechanical help to get it into the vehicle would look a bit odd when you drive around towing a dead deer in a trailer people sometimes find that a little strange the car he's is to transport dead stags as an old Austrian military vehicle when bechtolsheim uses it in the 300 hectares of forest he owns somewhere in central Germany we're not allowed to say exactly where back was his condition for letting us film him discretion is everything why had some visits in the morning a forest is a wonderful feeling because you have the run of it so to speak Keltie I think it was the publisher of deed site countess den Hoff who once said you always have to own everything you love I can comprehend the question philosophically but if I answer according to my natural instincts I'd say yes I like owning things that I find beautiful man rush to gardenia demonize Shirin imprinted by citizens not Eagles it had the great inequality that exists room on your folks is wanted for the economy and it's unavoidable obviously if you're an entrepreneur and you have inherited something and keep it running properly you will have more than someone who's just an employee do you think that things are by and large fair in Germany yes by and large I do I don't sense any real feeling of injustice and the part of most people on the street lights Lord after stars it can be not having during the week from best Hawthorne works with a view of the main river in Frankfurt he heads what he calls the family office this exclusive establishment is essentially what used to be known as a private bank perhaps you should add that this is one of the few old Frankfurt patrician houses that survived the Second World War intact this old terrazzo floor or this handle this banister you don't often find them in Frankfort today these display cases you can see the remnants of what once made patrician dining culture so special Oscar Moffitt you have to imagine a family office as just that an office that takes care of the interests and all the financial needs of a single family or an individual that ranges from let's say five or ten million to several hundred million not even the employees know all the names of the bank's clientele the wealthy come via personal recommendations they know that from battle time will offer them something that normal savers can't get from a bank these days interest and returns on their money we've done work together to create an asset structure one for the future let's say you want to invest so and so much in real estate and with real estate you also have apartments and commercial buildings and maybe even logistics stick stocks it's maybe thirty percent you might put 10% into pensions and 10% in cash the rest is invested in other things private equity forestry and so on we help families to maintain their fortunes for generations that is what we aspire to the legend surrounding germany's post-war economic recovery sometimes and evokes the notion of a kind of monetary zero-hour when everyone supposedly had to start from scratch if you wanted to get rich you had to work your way up according to the myth what's photomask Noveck shortly before the first world war a former interior ministry official published an almanac of millionaires in buda Shanda in these books you still find numerous names that look very familiar today if you look at the lists of the wealthy you get the impression that old money plays a huge role among the big fortunes today I'm hiding guns awesome for moving our biases line the ups transition dean dean the gap between those who only have work do you and those who belong to the upper class has increased enormously if i took for clue such i think if people understood how how deeply unfair economic competition was in the modern global economy they really would be up in arms [Music] it's the end of Thomas class's shift after visiting the construction site he and his wife considered the real estate agents offer at the moment the family lives essentially from his income his wife has reduced her workers to take care of the children [Music] the children are eager to tell their father about the events of the day they visited their grandmother once the children go to bed the parents talk about buying the apartment in the middle of the city when this dish walked on join us mommy first you are all enthusiastic and a bit dazzled by the idea and the beautiful project and by the question about whom the project is aimed at well at young families like you on the one hand that's flattering but on the other hand when you then hear the price and think about it again these are dimensions where I say that a family like us are out of it we aren't expecting an inheritance or any other sources of outside money we have to earn it on a monthly basis four hundred fifty thousand euros I don't even know how many annual incomes that would be as I income in the severan so at some point you start to worry that the step downwards into the lower middle class is much closer than the step up into the upper middle class I think everyone has the same feeling I'm lucky I have a big employer I feel like I have won the jackpot in Leipzig but that doesn't mean that we can keep up with the developments in the real estate market being mauled the classes are not poor but they belong to a group that has come under pressure in recent years the middle class the people who have no fortunes but have to work for prosperity in recent months thousands have sent in comments online for this film project under the hashtag on Graceland for example they've reported their salaries an industrial clerk in the car industry 1600 euros net a social worker in a rehab clinic 1648 net a civil engineer nearly 2000 net a medical specialist work 12 years of training 2768 net a net income of 3500 euros puts a single person in Germany's top 10% of earners accumulated wealth is particularly unequal half the population has less than 17 thousand euros in reserve that would let them buy a base-model VW Golf all shoes and clothing for 1.6 children from birth to the age of 18 or just 3.3 square meters of a newly built apartment in Frankfurt the vast majority of the gains and income have gone to people at the very top of the income distribution in the top 1% of the income distribution and incomes for people in the middle class and below the middle class have essentially not increased or have even fallen at the bottom very large middle class is necessary for peaceful and democratic societies and if you now have polarization in rich countries and if you have shrinkage of the middle classes then you really have a problem or you are really moving to a new territory that is just unexplored yet in u.s.

The question can really a successful democracy exist with very polarized of citizenship with lots of people who are rich but also lots of people who are below the middle-class level the world is at a crossroads today that if it doesn't try to write a new social contract those who have been hurt the many many people who have been hurt will repel [Applause] there are a few places where all social strata come together but even where they do exist it doesn't mean that the pool the rich and the middle classes actually meet how are they doing they're playing tactically Costa Fiona has paid for a place in a luxury suite in Leipzig main soccer stadium we in the luxury area of paying for their cheaper tickets through our high contributions everyone makes their own contribution maybe that guy pays 20 years for a ticket I'm actually paying 2,000 for mine there's a certain justice there now at the family office in Frankfort the bank's own Forester has come to call I brought all the figures let's start with Finland Christian fund bechtolsheim has been using his clients money to buy up forests in Finland New Zealand and Uruguay what's benefited us you can see it here in the timber prices in Finland the development last year spruce and pine have seen a huge increase since 2016 and that works to our advantage the Sweden solution copy mm-hmm authorities German forests are just insanely expensive there are very few areas available and when an area opens up people jump on it like crazy surprises a double tripled quadrupled over the past 10 or 15 years of course this is also due to the low interest rates that we currently have people are looking for everything they can find where can you invest money where can you safely invested or invested very profitably it's an intrinsic conflict can we briefly talked about Uruguay how does the return look relative to our plans we're doing quite well Uruguay is our most conservative projects this is a new global form of capitalism financial capitalism to find out how the system works sociology stat Brooke Harrington first trained as an asset manager it's a global profession and that's why I had to go to 18 different countries you know from the Cayman Islands and the BVI all the way out to the Cook Islands in the middle of the South Pacific to the Seychelles and Mauritius to New York and London and Switzerland all over one of the things you learn in wealth management school is to regard the world as kind of a legal financial shopping mall and you go to each different state in the world the way you would go to shops in a mall picking out the laws and the conditions that are most favorable for what you want to do or what your client wants to do with a particular asset so what you have to know is a wealth manager is where's the best place to get the laws that you need to do what you want to do with the art collection or the yacht or the family business the family office is the starting point of a global investment chain the wealthy entrust from best all time with their money among other things he invests with these fund managers they send it all around the world ensuring it earns much more interest than say a normal savings account I'm glad that you're here to say it at the outset we are really satisfied with the performance you have achieved so far currently we are at nine point three percent since the beginning of the year they say the secret of their fund is automated investment they have an algorithm that scans the global economic situation and converts it into traffic light signals green means the computer buys a lot of shares and when the signal jumps to yellow will read fewer yeah the curve is flat and you can see it because the signal isn't dark green we do the market timing we are the ones who ensure that a customer can re-enter the market because we operate without emotion we have no emotions our entire set up our entire algorithm is purely quantitative normal geopolitical upheavals such as those in Syria or Ukraine none of them has such a global economic dimension that it could really knock the world economy out of sync and that's our benchmark where we would intervene in the traffic light it has to be an event that knocks the world economy off-balance and at least in history no conventional war has done that many people would now say here are six well-to-do people sitting at the table and all they're doing is trying to increase their wealth for many you are kind of an economic bloat what would you say to them frankly nothing because no one ever asks net I think it's pretty tricky in Germany everyone thinks he can join Deutsche Bank as a trainee at 18 then become an authorised signatory and then eventually a department head and then retire at the age of 65 as a class-b director with a palm tree in the office and a chair with arm rests that world is definitely over that's for sure in the context of modern investor capitalism there's been this massive shift of power from labor to investment it's called financialization dissonance cloud these are very clear elements of an artificial world for which only an abstract amount of money counts a vanished but not the quality of life locally among the peoples in the markets in society now you can get rich from being a rentier capitalist that is not from your work not from the sweat of your brow as they say but from putting your money at the right place and at the right time the right things Tomasz class has been working as an engineer for siemens for nine years he sits on the works council and could imagine staying here until he retires with or without a palm tree we have employees who have been trained here they've worked here all their lives it's like a family it's not just work it's a bit of family and a bit of life the staff and I are very attached to what we do here together during the day good mind some – just recently Siemens posted six billion euros in annual profits but then worrying rumors began circulating investors were reportedly putting pressure on the company saying this plant wasn't fit for the future actually nothing is secure even everyday life living in a rented apartment is insecure we're currently secured by a single income and that is now on very very shaky legs you suddenly realize that when you get a situation like the one we're in now students really insist [Music] a few streets away from the Siemens plant cassava corner has invited all his staff to the company Christmas party he just bought this old post office railway station his wife Anna and his youngest daughter are the first to show up then the boss arrives a lot is riding on him his employees are also worried for much the same reasons as Thomas Klaus in recent weeks the financial Press reported that investors have taken over 50% of the company's shares [Applause] before though dear friends family it's amazing to be able to stand among you you are my motivation seasoned minam will to pursue is easy where my strength yeah I think you have been convinced by a letter from the management perhaps signed by me that we are still the same family no matter who owns the shares no matter who will have a say and so forth yes we do Capital Markets yes we have to refinance ourselves yes we have to reposition ourselves I will also be doing that no matter in what post I will be available to you in the future what we have achieved so far as to be a truly great and big family have a nice evening and thank you at some point every company reaches a certain size where its banking and financing structures are no longer sufficient I have to deal with the financial institutions and all that if I have that under control then I will remain in my post but if I don't then I'll be voted out faster than you can possibly imagine [Music] it looks like the whole world is being shaken up by big money it's a game that few can play and even fewer can win but when those at the top stopped a jump ship and those below have to worry about a crash what effect does that have on a country today and in the future [Applause] [Music] [Applause] [Music]

As found on YouTube

Retire Wealthy Home

Read More

How Do I Choose A Gold IRA?

how do i choose a gold ira how to buy ira gold to put ira funds into gold you have to establish a self-directed ira a kind of ira that the investor manages directly and is permitted to own a wider range of investment products than other iras six for a gold ira you need a broker to buy the gold and a custodian to create and administer the account what banks offer gold ira best gold ira companies in 2022 augusta precious metals best overall gold co best endorsed company birch precious metals most expertise noble gold investments simplest to use is augusta precious metals legit who is augusta precious metals augusta has been in business since 2012 and has a wealth of precious metals experience at their back they have a 4.8 or higher average review from facebook google reviews and trust link is gold co a reputable company gold co has an a plus rating from the better business bureau consumer reviews on the bbb site give goldco 4.87 out of five stars the few complaints filed have all been resolved thoughtfully by the company gold co has a triple a rating from the business consumer alliance is birch gold a legitimate company birch gold group is a gold and precious metals ira firm based california it provides you with the opportunity to start a gold ira or transfer your current ira to a self-directed precious metals account gold and other precious metal iras are an investment and carry risk is noble gold trustworthy is noble gold investments legit noble gold is a legitimate precious metals company and its reviews seem to indicate a high level of customer satisfaction it offers a variety of comprehensive gold ira resources and works to ensure each investor is satisfied for a comparison of the best gold ira companies visit https colon slash slash www.boldera401convesting.com goldira company slash click link in the description below

As found on YouTube

What is a precious metals IRA

Read More

Financial advice for retirement: On Your Side

INVESTIGATION INTO THE CONTAMINATION SINCE THE FACTORIES IN ECUADOR. STARTING TO PLAN FOR YOUR FINANCIAL FUTURE IS ONE OF YOUR NEW YEAR'S RESOLUTIONS, WE HAVE SOME HELP FOR YOU. >> A FINANCIAL EXPERT THAT HAS SOME TIPS YOU SHOULD KNOW ABOUT. >> IT IS A REALLY GOOD RESOLUTION TO HAVE. TO SAVE INSTEAD OF JUST SPENT. I AM JOINED BY CEO TERRY KENNEDY THANK YOU FOR JOINING US. I FIRST WANT TO TALK ABOUT PENSIONS. AND A LOT OF PEOPLE DON'T UNDERSTAND HOW THEY WORK. YOU ARE SAYING NOW IS THE TIME TO FIGURE IT IS THE PENSION SYTEM IS BROKEN. IT'S BEEN BROKEN A LOT OF TIME. THEY HAD TO PULL BACK WHAT THEY ARE GIVING PEOPLE. PEOPLE NEED TO BE EDUCATED ON THEIR PENSION, WHAT THEY DO HAVE SO THEY CAN SAVE ON THEIR OWN. >> CAN YOU EXPLAIN WHAT YOU SHOULD BE DOING THIS FINAL WEEK BEFORE JANUARY 1.

>> IF YOU DON'T HAVE AN ADVISOR, I WOULD GO FIND ONE. SOMEONE THAT CAN HELP YOU. I WOULD SAY GO FIND SOMEBODY. YOU START SAVING AS SOON AS POSSIBLE. YOU NEED GOOD TIMES ON YOUR SIDE IF YOU SAY. I LOOK AT MY BUDGET RIGHT AWAY AND SAY HOW CAN I TIGHTEN UP A LITTLE BIT AND NOT SPEND SO MUCH >> GET YOURSELF AN ADVISOR. START SAVING AS SOON AS POSSIBLE COMPOUNDING INTEREST IS ON YOUR SIDE, LIKE I SAID. THREE, TIGHTEN UP YOUR BUDGET. MAKE SURE YOU GET INTO SAVE MONEY STRATEGY SO YOU DON'T LOSE MONEY. LOSING MONEY ACTUALLY HURTS WORSE THAN MAKING MONEY.

>> 250,000 TEACHERS NATIONWIDE. POTENTIALLY LOSING 40-50% OF THEIR INCOME IF THEY DON'T TAKE SOME PROACTIVE STEPS. >> PAYING OUT 50% NATIONWIDE. SAY YOU ARE MAKING $80,000 A YEAR, IMMEDIATELY GO TO 48,000 AND YOU ARE RETIRED, THAT HURTS. YOU NEED TO SAVE UP SO YOU CAN DRAW FROM THAT TO PUTT WITH YOUR PENSION. >> ALONG THE LINES OF TALKING ABOUT TEACHERS, YOU ALSO HAVE A NONPROFIT THAT GOES INTO UNDERSERVED SCHOOLS. DOES A LOT OF VACATION PROJECTS. I KNOW YOU HAVE DONE STUFF WITH LAUSD WHILE YOU ARE HERE. CAN YOU TELL US A LITTLE BIT ABOUT THAT.

THEY DON'T KNOW WHERE THEY WANT TO GIVE HER WHAT THEY WANT TO DONATE TO. >> APPRECIATION AMBASSADORS. WE GO TO THE SCHOOLS. WE DO THINGS LIKE LANDSCAPING, PAINTING. WE'VE DONE SOME COOL ART MURALS. WE'VE DONE BASKETBALL COURTS AND BASEBALL DIAMONDS AND ALL KINDS OF STUFF. WHEN THE KIDS COME IN, IT IS THE MOST AMAZING THING TO SEE THEIR EYES. WE HAVE NOW BEAUTIFIED THEIR SCHOOL. WE DO IT WHILE THEY ARE NOT THERE AND IT JUST UPLIFTS THE WHOLE PLACE. >> WE HAVE ONE MORE WEEK LEFT IN THIS YEAR. IS THIS A GOOD TIME IF YOU HAVE A LITTLE EXTRA MONEY TO DONATE IT AND THEY GET THE TAX INCENTIVES? >> ABSOLUTELY. YOU DON'T GET THE YEAR TO DONATE AND TAKE THE DEDUCTIONS..

As found on YouTube

Retirement Planning Home

Read More

Retirement Planning During Bear Markets – Especially if It’s Your First One In Retirement

bear markets can feel a lot different when you're retired and you're no longer earning income from work especially if this is your first bear Market since you stopped working when you were younger you know you had time on your side you know you may have even seen drops in the market as an opportunity because it gave you additional time and you got to purchase more shares well things were on sale so to speak but now most likely that's not the case the relationship between our money and our accounts now are of money going out versus money going in to put it simply and plus you may have noticed that there's this psychological component now around money and not wanting to mess things up because the decisions we make really carried much more weight now when we're close to or in retirement and it's really that's not only psychological or emotional it's true because planning the distributions is much more complex than the the planning around around saving and putting money into the investment accounts what led to our investment success the last 30 years is a lot different than what's going to lead to success the next 20 or 30 years or at last that's at least what we've been seeing at streamline Financial since 1998 since we've been around so I want to share how to endure through bad markets if you're close to retirement or you're already retired and then what you can do to actually take advantage of of this even if you're already retired and you're no longer saving money and we're going to do that because we know a universal law of physics that can't be disproven and we can actually apply it to our retirement and make it a little bit better if you're thinking Dave what the heck are you talking about here's a brief explanation so Newton's third law of motion is that every action there's an equal and opposite reaction right you've heard that before so the way that I see it is there's a positive to every negative and the same thing there's a negative to every positive it's the law of polarity so I want to share what the positive is to take advantage of during bad markets and by the way if I haven't met you yet I'm Dave zoller and Tim and Luke and I and Sean we run streamline Financial it's a retirement planning firm and we've been around like I had said since 98 so we've seen clients really go through it all the.com bust the financial crisis and then covet and then all the things in between all those uh you know those mini panics that we've had so we created this channel to share what's working and what has worked for them and so that you can hopefully glean some wisdom from them and then apply it to your your own life so the first thing we need to be aware of is that the previous 30 years there were four bear Market Corrections so that's a drop of 20 or more and then the 30 years before that there was a total of five bear Market Corrections so the main takeaway is we need to expect these bear markets to happen during our retirement during that next 20 30 years right the second thing is we don't want to make a change solely on an emotion right and it's not not just making a drastic change like selling everything and putting everything under the mattress right it's we were just talking to someone yesterday and emotions can cause us not to take an action when we know doing so is actually the Smart Financial thing to do for instance during March of 2020 when it wasn't easy to rebalance your accounts it was very difficult to do but if you did follow through and and do the correct rebalancing system or strategy if you were looking back now it could have made a lot of sense the third thing is update your income plan because that helps guide us and make really good planning decisions around our investment plan so it's really start with the income plan you've heard that before and that helps us make the investment decisions versus the other way around and updating your income plan during bad markets that can also give you some confidence as well as you're looking at where we are today and then looking at over the next few years and and seeing that things maybe aren't as bad as it might seem at least when you've got those two things of the unknown and then the known updating the plan is the known and you can get a little bit better picture on what the future might look like for you now to the two things that maybe could give us an advantage during a time like this this is back to the law of polarity so the possible things that we might be able to use here are well first before I say it as always this is not specific advice to you so we're not looking at your your plan together so before you do anything just talk to a financial professional but idea number one to think about is tax loss harvesting that could be a way to write off some of the losses while still keeping your investment strategy intact and I talk about this concept a lot more in other videos so I'm not going to go into details on it today but just keep that in mind the one thing to to really pay attention to though when we're we're talking about the law or talking about tax loss harvesting is that wash sale rule right so look for the other videos or talk to that Financial professional before thinking about doing that the second thing that could be a possible opportunity for really the first time in a very long time is that ability or option to lock in higher yields in that conservative bucket as you know the the bucket strategy you've seen that before where we've got the possible three buckets and having that conservative bucket here is a great way to plan out and prepare for for bad markets and now at the time of this recording some of those historically conservative asset classes are paying a higher interest a higher yield than what we've seen really over the last decade which could be a silver lining during this period of time so those are just two things possible things to look at which maybe could be taken advantage of by you for for your benefit so those are just two things to think about during this period of time that we're in right now if that short video was helpful please like this and then share it with others if you think it could help them too and if you'd like to talk more about your plan feel free to reach out to me in the in the description below or go to our website streamlinedplanning.com for get you click on the get started button we don't always have space available but you'll hear back from me either way so I hope that was helpful and then I'll see you in the next video

As found on YouTube

Retirement Planning Home

Read More

Average Retirement Savings by Age 60. Are You Almost Ready to Retire?!?

In this video I'm going to show you three 
things, what the average retirement savings is   for a 60-year-old if you're comparing that 
60-year-old against a population of savers,   I'm going to show you that same number if 
you add in the-non savers in this country,   and I'm also going to show you what you 
should have at 60 years old to retire   in the same lifestyle that you're living 
right now. Coming up next on Holy Schmidt. Holy Schmidt. So you're 60 years old, five to seven years 
out from retirement, maybe a little bit more   because of the pandemic that we're all in right 
now and you want to know where you should be.   Well, that's a very good question. And it's a 
very complicated question because the pool of   60-year-olds spans the gamut from those that have 
saved virtually every penny they've made up until   this point in their life to those that have had 
massive financial obligations, are deep in debt,   and don't have a dime and everything in between. 
So let's talk about each one of these categories.   First, let's talk about the average retirement 
savings for a 60-year-old when you're comparing   that 60-year-old amongst a group of savers. 
This number comes directly from the Fidelity   401(k) balances and it's quite accurate, it's 
a good representation of where folks are.

Now, I want to point out two things. First, the 
difference between average and median. Let's say   you have five different 60-year-olds 
and in their 401(k) one had $700,000,   one had $100,000, the next one had $61,450, number 
four had $45,000 and number five had $17,550.   This totals $924,000 amongst those five 401(k) 
participants. And that gives an average balance   of $195,500. Now, even though I'm showing 
you five balances here I could have easily   have shown you 55,000 or 5 million and it 
would have looked very similar to this. The average balance for a 
60-year-old in their 401(k)   is 195,500 and the median balance is 61,450. So 
let's write these down. Average, 195.5K, median,   61,450. There are many, many problems with this 
information.

If you went to fidelity.com and you   got this information, and that's where it 
came from, most people watching this video   would just call it a day. They'd say, "There's 
no chance I'm going to live well in retirement."   That's because retirement funds like Fidelity, 
Vanguard, et cetera, have a very strong interest   in you depositing more into your account, which 
is of course good for you, but it's also good   for them. So let's take this information, I'm 
just going to tell you what it actually means. The average balance of $195,500 is comprised of 
a few, very, very large balances at the top. The   flip side is this right here, 81% of Americans 
have less than $5,000 in savings. The problem is   this number right here, the $700,000, we'll call 
those the trust fund and super saver 60-year olds.   Some didn't have the same bills that you might've 
had. Others lived very spartan and saved more than   most. , Maybe they lived at home until they were 
50, who knows? But they were able to sock away a   lot of money but they don't represent the masses, 
but they do skew the number of the average way up.   This number, the median is the number that's more 
important here because this is the more accurate   representation of where you probably should 
be if your average is $61,450 in your 401(k).

Now, what happens if you overlay this population 
right here? 81% of Americans have less than $5,000   in their 401(k), 81%. So that brings these 
numbers way down, in fact, the actual numbers   when you factor in the non-savers are 
an average of $39,191 and a median of   $15,725. 81% of the population has almost nothing. 
When you add that in 39,191 is the average and the   median is 15,725. The question is, what should 
you have? Well, they'll tell you it's 8X,   8X your current salary.

So if you make 
$50,000 a year you should have $400,000. And before you shut the video off and pretend like 
you didn't turn it on, let's talk about this. This   assumes two things. One, it assumes that you 
get a rate of return of six and half percent   while you're working and 5% after, but more 
importantly it assumes that you have the same   exact expenses when you retire and therefore need 
the same exact income that you're making today.   The fact of the matter is when you retire you 
won't have an endless mortgage that you need   to pay off, you won't have college education 
for your kids.

You may have already paid for   your child's wedding. You might have already 
taken the funds that you needed to set aside   to care for an elderly parent or a relative in 
need and put those aside and dealt with that.   So at 65 years old a lot of your expenses that 
you are paying for right now may or may not exist.   Certainly by the time you get to 70, 75, 80, 
those expenses are going to drop way down. So, while they say you should have 8X for your 
savings in order to achieve the same income   that you have now in retirement at six and a half 
percent, I actually think for many people the   numbers are about half that, as little 
as 4X. So don't worry if you don't have   8X, you can't change the past.

Don't even worry if 
you don't have 4X, if you don't have 195 thousand,   or even 15 thousand because there are 
things you can do now and even in retirement   to help your income go up or expenses go down. 
We'll talk about those in an upcoming video. If you like this video, please give it a thumbs 
up so that other people can find it as well. Also   don't forget to click subscribe and notifications 
down below and that will alert you the next   time I post a video, I try to post them twice a 
week.

This is Jeff Schmidt, thanks for watching..

As found on YouTube

Retirement Planning Home

Read More

The Case for $20,000 oz Gold – Debt Collapse – Mike Maloney – Silver & Gold

If you know how the world financial system works you know the game
that you're playing and if you don´t know the game
and the rules that we're playing by you are going to get slaughtered, you are going to get slaughtered. Ever since the Federal Reserve was born,
we have been living under a lie. In order for us to mantain the levels
we've got and to maintain the prosperity Obama has to be twice as far in debt
when he leaves office than when he came in, or the whole thing
is starting to collapse.

The Federal Reserve, they're buying
bonds directly from the Treasury. This is Quantitative Easing,
they're calling it, and that means there's
an emergency going on. I can see that there was not anything in history as far as finances goes, that was
as much as a sure thing as gold and silver accounting for the
expansion of the fiat currency supply. There is absolutely no chance
in hell that this won't happen, right now it takes about 15000 to
20000 dollars an ounce of gold. I believe that there's going
to be a deflation first and then all of the
world's central banks will start printing like crazy to get us
out of that deflation and Ben Bernanke will be leading the charge. You can´t have a debt that is 10
times the size of your economy. It's not posible. Everything comes
to its screeching halt first. I've got to show you the world's stock markets and real estate bubbles have to continue crashing because all it is is the market trying to seek fair value.

It's trying to seek equilibrium, this is what the markets do. It is their job. Basically, you know, our entire currency system is imaginary, it doesn't really exist. It's just that
we're all dreaming the same dream. If anybody chooses to wake up… it's over with. Thank you very much! I'm Mike Maloney author of the bestselling book
on precious metals investing, Guide to Investing in Gold
and Silver, is part of the Rich Dad series that
Robert Kiyosaki started, the original book. Robert
Kiyosaki says: write a book no other instructions: write a book, and so I start writing this book two and a half years of
research and writing probably 30 hours a week, every week for two and a half years.
It's a very well researched book.

The one thing I really worry about is perpetuating misinformation,
I want it to be accurate and then I tried to boil it down and
make it real simple. I read all these books by economists like Milton Friedman Murray Rothbard, Ben Bernanke, if you get a chance to
read some Ben Bernanke, don't! He is a horrible author, just horrible. They're all trying to write over each
other's head and impress each other And by doing so, they make
economy sound so complex that everybody thinks well,
I can't understand economics. It's really simple. Economics is very simple if you
boil it down to its essence and it's not that difficult to
understand and that's what I tried to do in my book.

For the people that
have not read my book, about 75% of it is not about investing in gold and silver,
it's some history of money and then how the world economy works
and what could potentially happen you know, where we came from,
where we are today and what could potentially happen. By the way, I really couldn't care less
about gold and silver, I don't want gold and silver, it's just in its
cycle right now, it's a stupid lump of metal that doesn't have cashflow or
spinoff dividend yields. And so I don't
want gold and silver, it's just that right now
I don't want anything else. They're just in their cycle right now
and they're going to be outperforming everything else, in my opinion
from all of my research, and they're going to be able
to buy a whole lot more other stuff.

A whole lot more real estate, whole lot more stocks, whole lot more oil wells, farmland, all the true wealth. It's in the buildings, the businesses,
the farmland that is out there, and people get this
picture in their head that if there is an economic disaster,
if there were some sort of collapse that it's going to be like this nuclear
wasteland afterwards, it's not. All the buildings still are going
to be there, the apartment buildings. It's just that they're all going to be on sale. The problem is when investments are
on sale nobody buys, the public comes charging in, and they
chase investments after they're going up.

Gold and silver get hot whenever they're going up and
as soon we see them take a dip, it's like sales turn off like a
light switch, most of the time. And I don't want anybody to get slaughtered. I really don't want these bad things
to happen, I just think that all the evidence is there. What our leaders have done
to the economic system is going to cause these things to
happen and it's inevitable, and I'm trying to warn
as many people as possible as quickly as possible.
My company has a mission, to get as much gold and silver
in the hands of the middle class as quickly as possible, because when there's great economic upheaval,
there is great political change, and usually goes along with it In the hyperinflation in
Weimar Germany in 1923, this hyperinflation ended on November 15th, 1923.
On November 8th, one week before the end of the hyperinflation, Hitler's storm troopers pointing machine guns at the front
door of the Burgerbraukeller where there was a political meeting,
this big beer hall where there about 3000 people
listening to politican speeches and on that night
he took the stage at gun point and to this literally captive audience
gave a speech that changed the world.

Nobody knew the name Hitler,
nobody knew who he was until he gave this speech to a newly empoverished middle class people that were scared and
looking for somebody to lead them, and here this charismatic guy takes
the stage, gives them a scapegoat and says "I know the way out of this". The next day, those
people in that beer hall followed him to try to do
a military… a coup to take over the government and it failed. He was imprisoned, he was tried for high treason, his trial went on for an entire month, and during that month he
had the ear of the nation. He was covered in every newspaper all across Germany, and the judges were
sympathetic to his beliefs so they let him go on for hours
on end with the speeches and that's when he gained power
was when the middle class was scared. The middle class defines a
country with their vote. The country, as the middle class
goes so goes the country, and so what I'm worried about is not the loss of my
financial well being, it's the loss of capitalism,
it's the loss of our quality of life, it's the loss
of our freedom of choice.

That's what I'm worried about, and I know that there are certain people
that I'm not going to be able to reach. Joe-six-pack, I refer to
the guy that comes out of his beer and
football induced coma at the very end of the bull market and
comes charging in and buys at the peak. I can't do anything for him.

I'm hoping that I can do
something for all of you. These are wealth cycles. If you have
two asset classes that are rising, you have for instance, let's say
that this is real estate on the bottom and on the top here
we've got precious metals. Precious metals in this last decade here, precious metals outperformed
real estate and stocks but everything went up. Stocks went up, bonds went up, real estate went up
and so did commodities and precious metals. Is that possible? Can everything go up?
Think about it for a minute. If we've only got so much stuff in
society and if you've got these 3 or 4 asset classes and everybody rushes toward one, pushing
it to a bubble shouldn't it be drawing currency away from the others?
Shouldn't the others be going down? Well, they didn't in the last decade.

And what's happening here if you've got
two things that are going up, if you're invested in this one down here, when you've got to sell, you can't
buy as much as this one. If you're invested in this one, when you
sell you can buy more of this one. They're both rising in price, this one is falling in value when you sell it you can't
buy as much gold, or food or oil. Your house is worth half as much
in oil, as oil was 10 dollars a barrel in 1999. So your house measured in oil has crushed,
the stock market measured in oil has crushed. If you start looking at your home
or all of your investments and you divide them by something
else, you measured them in the price of a bushel of wheat, a pound of copper, a ton of iron shares of the Dow or ounces of gold, you're going to discover something. These two things that
they're going up, eventually the people that are invested
in this one realize that the smart investors realize that
it's going into a bubble,they sell and they buy undervalued asset, and then this trend reverses.
It can't go on for ever, and if it did, if gold outperformed real estate
for ever, there would come a day where one ounce of gold would buy
the entire planet and we all know that that can't happen.

Right? So, eventually one becomes overvalued
and the other one becomes undervalued and the cycle reverses, and then it reverses again, and what is happening is that they're
printing currency about this rate and that's the reason you can't see it.
People would say: "well, at least my house is worth a
100.000 dollars more than it was in the year 2000", or "it's worth 20 per cent more" Well, in fact if the inflation was 40 per cent
it actually went down in value.

They'd say that, you know, they looked
at the stock market and the Dow right know is just
barely above its 2000 high. In the last decade stocks
have gone sideways for a decade. We've had inflation during that time,
they inflated the currency supply. So, if you start measuring one thing with
another thing, so you're measuring stuff against stuff instead of using
currency, what you discover is that everything is trapped
in this valuation channel, where it goes from overvalued to undervalued
to overvalued and undervalued again, and the thing that you're
measuring it with is doing the exact opposite mirror wave. The trick is sell the overvalued asset near the peak if you can, find the undervalued asset
and I call this wealth cycles.

And if you can do that, it's a road to true wealth, you're
escaping that valuation channel. Here is a real example,
this is the Dow measured in points. And what are points? Points are derived by the dollar value of the
underlying stocks, so basically its points are dollars, and one of the reasons that
they measure it in points is just like when you go to Las Vegas, they take your
currency and they give you chips. Now they're pieces of plastic, so
you don't care, you're just having fun. So change it to points, and it's not as bad as if
"Wow, you lost so many dollars" "it went down so many points". Anyway, that's the Dow
measured in points, but if you go every month during this
entire graph from the year 1900 to today, and each day you take the points on the Dow
and divide it by the price of gold you get how many ounces of gold one
share of the Dow is worth, and this is what it looks
like measured in gold. It's not going anywhere, it's got a mean of about 4 ounces of gold,
which means that the price of gold should be one quarter of the
points of the Dow and then things will sort of be in equilibrium.

It's fair value when the Dow is only four
times the price of gold, but what you see here is that it goes into, it goes from fair
value into a bubble 18 ounces of gold, it crashes down to 2 ounces,
another bubble of 28 ounces of gold because the bubble was bigger, because they print more currency in
the meantime, when it crashed it went down to one ounce of gold. There was a
day in 1980 when gold was 850 and the Dow was at 850 points, one ounce of gold bought the Dow.
Conversely, if you cash out you could only buy one ounce of
gold with the proceeds of your stocks, and then we're going on to the
biggest bubble in history. There's no time in history,
this point in 1999 – 2000 there's no time that gold
was as unloved and ignored as in that time period. It was no
nation's money and it had gone down for 20 years, it was "the worst investment
you can possibly make", nobody wanted it.

Take this, This is the price of the Dow measured
in gold. Flip it upside down and you've got the price of
gold measured in the Dow. Put these two things together, and what you find is
that there's a cycle here and if you've written
stocks up to 1929 and then sold your
stocks and bought gold, and then in 1932 gone to gold … and then, gone
back to stocks I mean, and then in 1980 go back into gold, and so on, uh… this is the road to true wealth,
I mean, you're making massive gains here. I show two hypothetical
families in my book and one goes from 35 bucks to
11.000 bucks over that time period and the other one goes
from 35 bucks to 11 million and that is the difference,
one family creates a dynasty the other one didn't even break even.

This is the Gold-Dow ratio instead of the
Dow-Gold ratio, so you're measuring gold's value per ounce measured in what
percentage of a share of the Dow that it would buy, and what is showing is that gold is nowhere near a bubble,is very
undervalued here and still has to go up, the mean should be 25 per cent or more. and in every bubble in history
and in nature, I used to be an electronics engineer in physics, when something is out of whack, when it
reverse back to the mean it overshoots. if it's more out of whack, when it
reverses to the mean, it overshoots further, so I'm expecting the day where the price of gold would be
double or more the points on the Dow.

This is the Silver-Dow ratio. Silver has just I mean, the gains here
should be immense. This is just gold
for the past decade. I just challenge anybody to go and find
an index or stock or anything, that looks that good over
the last 10 years. This is a perfect chart, it's very bullish, there's nothing here saying gold, in this information that you're looking at,
this is what technical analysts look at when they're trying to figure out whether
to buy an asset or sell an asset, and this is saying that gold is probably going to continue
rising, there's nothing bearish in that signal. This is the SP 500 over the
last decade, so representing stocks of the 500 largest companies
in America and there is gold. uh… Here we have silver and I recently spoke at the 8th annual
banking conference in Socci Russia, this is the big banking conference
for all of Europe and Russia. And I was showing them this
at the very end, they cut me off it was really interesting.

I was running out of time, and you hear this voice
come over the loudspeaker and it is their Finance
Minister in their parlament, telling me: "mister Maloney, mister Maloney,
you've got to stop now mister Maloney" they were trying to cut me off,
I was presenting this information they did not want presented
at this conference, and then he comes up to me afterwards, he's got
a copy of my book that he bought, he wants it signed! Oh, by the way, please visit our
table afterwards, we're giving away, these are 100 trillion dollar bills, they are real,
they are from Zimbawe, we are giving away 20 quatrillion dollars at my table, so…

Uh… come and get your 100 trillion! OK, so… what I showed here was that
there is an inverted head-and-shoulders and this works just as well upside down,
as it does rightside up, you can see the head hanging,
it's like this guy hanging from his feet. This is the head and shoulders
that I'm tracing out here in blue, and then, you draw across the neckline, and you invert that
head in a predicted move and you see this, if you watch my…if you google "10 dollar oil" you'll see a video where he's cutting me off, and
I'm sort of flashing through this, I don't get a chance to describe it, but
I was predicting that silver would make a big move and guess what? That's what silver did. It doubled from where it was. This is the spot price of silver.

This is the price of silver IOUs,
the price of gold and silver is determined by people going:
"I owe you 5.000 ounces of silver, I owe you 5.000 ounces of silver, I owe
you 5.000 ounces of silver and handing this things out, and they're trading this IOUs
on the Commodities Exchange and that's what determines
the worldwide spot price. Now you can do this naked…it's called the
naked shorts. If you don't have the silver to cover it, if you're not sitting on a
pile of silver and you are writing IOUs, you can still sell them. And some big banks do this, like
J.P.Morgan and they crash the market and then come in and cover their shorts,
they buy those IOUs back at a lower price than they sold them for
and they get to make the spread. They fleece the public and
some funds that invested in silver for hundreds of millions
of dollars by doing this, and they do it, they've
done it on a regular basis. But Silver fell too low this
time and so did gold, and investors that were looking for physical
realized that it was just too cheap, and they all had to get some
and shortages developed, and all across India, Europe
and North America the cupboards were bare.

There were 3 months
where we can only get one silver product
at a time, and we had no gold. We didn't have gold and my
dealer shipped for 3 months and I deal with 4 of the world's largest
wholesalers and they could not find gold for us. People don't realize how much gold
and silver there is on the planet. There are 6.6 billion
people on the planet, there are only 2.2 billion
ounces of gold. That's a third of an ounce per person. Silver is even
more rare. There's only about 14th of an ounce per person.

That means that 14 people have to
share that same one ounce of silver. And right now, you can get a whole lot for your currency. uh… I'm going to take a little detour here. I did not define the difference
between currency and money, and you will hear me say: currency, currency,
currency, over and over and over again. Back…before World War One, uh…

Each note the Treasury issued,
each dollar in existence in the United States would say that there have been deposited
within the United States Treasury 20 dollars in gold coin, and payable
to the bearer upon demand. The money was in the vault, the currency was a note they
gave you, it was a claimcheck, only a claimcheck on
the money. The same as if you go to the dry cleaners
and give them your shirt, and they gave you a
claimcheck for your shirt.

The value is that shirt at the
dry cleaner's, not the piece of paper that says that
you own that shirt. So our currency that circulated, was the paper US dollars,
and they were claimchecks on money, and people do not understand that
money has to be a store of value. Only gold and silver
qualify as money. They have all the attributes that
you need. They are portable, durable, divisible, fungible… and then money
is a store of value over long periods of time. One of the things that
I always start with is how currency is created, because if you know
how the world financial system works you know the game
that you're playing.

And if you don't know the game
and the rules that we're playing by you're going to get slaughtered, you're going to get slaughtered. So this, just by knowing this,
increases your odds just a hundred fold of winning. So…uh… "When you or I write a check
there must be sufficient funds in our account to cover the check, but when the Federal
Reserve writes a check there is no bank deposit
on which that check is drawn. When the Federal Reserve writes a check it is creating money". And that is "Putting it Simply" from the Boston
Federal Reserve's website. Basically, the way this works is: the trader of the
United States is the US Treasury.

Uh… but every country has the
equivalent to our Treasury so the Treasuries around the world uh… create a bond and, what is a bond?
A bond is just an IOU: Loan me a trillion bucks and I promise
that over a 30-year period, I'm going to pay you back 2 trillion That's basically a bond, an IOU. And there's something in the middle
here called open market operations, that I'm gonna just show
you real quickly, but the open market operations
is just a shell game that obscures what is truly going on. So banks show up at the
Treasury Auctions, primary dealers they're called, and then the Federal Reserve comes along
and through open market operations, they write a check to the bank
and they buy that bond from the bank, so the Federal Reserve
ends up with the bond but then the next month those banks show at the
Treasury Auctions again. Now the Treasury has the dollars and the Federal Reserve has the bond,
and this process repeats itself over and over and over again. And there is a build up of
dollars at the Treasury and bonds at the Federal Reserve, So, we borrow currency into existence
with an IOU, that bond, and the Federal Reserve opens
up the bigger checkbook that doesn't have a single penny in it, and writes a bad counterfeit check and hands that to the Treasury, dollars spring into existence, then the Treasury deposits that in
the various branches of the government and the government does
some deficit spending, on social programs, public works and war, and then they pay those government workers, the contractors
and the soldiers.

And all of those people deposit
in their private banks, "Banks create money by 'monetizing'
the private debts of businesses and individuals". Federal Reserve Bank of New York. So, now the miracle of fractional
reserve lending comes in to play. Fractional reserve lending
is just what it says. They reserve a fraction
of what they've got, if you go to the bank
and you deposit 100 dollars, the bank is allowed to keep 10 dollars
in your checking acount in case you want some
of that 100 dollars, and they get to steal 90
dollars of it without telling you.

Your checking account never has
the balance that it says it's got in there. They have borrowed most
of that currency out of there, and they're going to
loan it to other people. When those people sign their loan,
currency actually gets created because you had a 100 dollars on deposit, and they have 90
so now there's 190. Then, they go and buy something, that's
the reason they're taking out a loan. And they buy a house or a car, or someyhing like that, and when they buy that thing, the seller then deposits it in his
bank account so that 90 dollars get deposited and then they get to go
and steal 90 per cent of that meaning 81 dollars, so now there's 271 dollars
on deposit. Can everybody see how the currency supplies is getting
magnified by the banks here? And that process happens over
and over and over again, and under a 10 per
cent reserve ratio, every dollar deposited
can create another 10.

So if you deposit a trillion in base
money, you can create 10 trillion, uh… And that is basically it, there is nothing else.
Our entire currency supply is either IOUs or receipts for IOUs. That's all that it is. It's all an imaginary agreement
and it is all giving value because you experienced yesterday
that the dollar purchased you something, so you expect that is
going to tomorrow. So you have this agreement that is, basically, you know, our entire currency system is imaginary. It doesn't really exist, it's just
that we're all dreaming the same dream. If anybody chooses to wake up, it's over with. So it's really just a couple
of bucks that is whipped up in this little voodoo hocus pocus
scheme here, where the Treasury and the Federal Reserve
write IOUs for each other, a check is an IOU,
a bond is an IOU, and they swap IOUs: dollars
spring into existence.

A dollar is a receipt
or a claimcheck: an IOU! Then the rest of the currency supply is a bunch of numbers that the
bank type in their computers. They don't exist. In my book, I call things money until I get to the point
where I define what money is. And the difference between money and
currency and from that point forward, I only call gold and silver money, and I call everything else currency, but in the original manuscript, when I start talking about the massive
currency creation that is going on, and how banks are just debasing their
currency supply all over the world and how this Mandrake
mechanism works, I start referring to it as
the numbers supply. the M3 number supply, uh… the base number supply because they're just numbers that somebody made up.
I can write numbers on a post-it and hand them out like this. They make them up, they type them
in a computer, it is nothing but a supply of numbers, How many numbers are there? It's infinite! So it's nothing but a number supply.

But it becomes real when you work for some of that currency supply, that number supply, and at that point, it now represents your blood,
sweat, labor, ideas and talent. You are what gives the
currency supply value. It would have no value without you. And the way that that value is enforced
this is the really cruel joke here. Let's say you save a part of that
currency supply, so you can pay tax to the tax collector in the
United States, that is called the IRS, so that they can turn that over to
the Treasury so the Treasury can pay the principal plus the interest on that bond which was paid for
with a check from nothing. So, you can see that, right? Everybody sees how this works? Now, there's another joke. There was interest
due on that bond.

Let me ask you, if you borrow a
dollar into existence and it's the only dollar that exists on the entire
planet but you promise to pay back 2 dollars, Where do you get the second dollar? Has anybody got the answer on that one? You borrow it into existence. When people say they're
just printing money, they're wrong. First of all, they're printing currency,
but they're borrowing currency into existence. The Fed doesn't just print money, what they do is they
indebt us in the future.

Everyone of these loans that we
took out of the bank that created the vast majority of our currency supply,
95 per cent of our currency supply, roughly, has been created by the banks uh… i think actually is 93
percent now and the Federal Reserve
created about 7 percent but uh… before the financial crisis the actual physical paper dollars
are what the Federal Reserve and the Treasury creates it's known as base, they call it
base money, I call it base currency uh… and then we create the rest of the currency supply by going to the bank and borrowing for home or something like
that or buying dinner and sign our credit card. When you sign a credit card receipt
you've expanded the currency supply of the planet. The problem with this system is that every single month
there is a payment due on that bond for the principle
plus the interest and there's payments due on your home
mortgages and on your cars and on your credit cards every single month you've got to make a payment on that currency that you borrowed into
existence and on the balance sheet that payment extinguishes the currency
that you borrowed into existence, so the currency supply
starts to collapse.

This system requires that we go deeper into debt every month
than were the previous month, we have to always borrow more
currency into existence than we are extinguishing
every single month or the whole thing
starts to collapse, and I'll show you what that
collapse looks like in a minute but first I'm going to show you the
base money, this is the these are the physical paper dollars
uh…

It's basically cash in circulation plus the deposits that the big commercial
banks have at the Federal Reserve uh… all of the banks have a checking
account at the Federal Reserve and their deposits are redeemable in
paper dollars so it's a measurement of how many paper dollars exist. It took 200 years to go from
zero dollars in existence to 825 billion dollars, then came along, came
the financial crisis of 2008 and it has only taken two and
a half years to triple that. We are now at about uh… 2.4 trillion dollars of base money from 825 just two-and-a-half years ago, so this looks like the currency supply
of the planet is just exploding when you look at this and most economists and newsletter writers
are talking about inflation, inflation inflation is right around
the corner, this is going to happen.

I believe that we're going
to have, I wrote in my book we would have the
threats of deflation followed by big inflation which we have already
had, that's what this is, followed by a real monetary deflation
which is the collapse of the currency supply: inflation, deflation are properly referred to as an expansion
or contraction of the currency supply prices follow but there's a delay, uh… and so uh…
consumer price inflation keeps your eye off the ball.

If you can look at what's
happening in the currency supply you're seeing into the future. And I believe that there's
going to be deflation first and then all of the
world central banks will start printing like crazy to
get us out of that deflation and Ben Bernanke will be
leading the charge, and so back in March of 2006 uh… the Federal Reserve hid the broadest measure of
the currency supply, the currency supply
that is M1, M2 and M3 uh… M1 is uh… cash in circulation uh… plus checking, checking accounts uh… M3 was the broadest measure that
incorporated the most different types of of bank deposits and so on, not at all the entire currency supply,
the entire currency supply is actually total credit so about 53 trillion
today and it's uh…

Stalled and started to shrink. But M3, they used to
publish it every month it was the uh… measurement of the
currency supply that most newsletter writers and uh… on the news
that they would report and the Fed hid it from us
in March of 2006 claiming that it was too expensive
to compile all this information and that it was useless anyway that you
couldn't glean anything from M3 that you couldn't get from M2. Now, here's the real kicker. There is a… uh… M3 is… you take a whole bunch
of different monetary aggregates that the Fed publishes and you add them
together and you get M3. The only one that they don't publish
I believe it's uh… uh… euro-dollars I can't remember,
I believe it's euro-dollars, it was 0.6 percent of M3 so you can still reconstruct M3
off of all the other monetary aggregates plus minus
0.6 percent accuracy and there are several companies that do this,
shadow stats, shadow government statistics or shadowstats.com, is one of them, it's by John Williams. He's
one of the people that does and all the people that do their data agrees, so I'm like 99.4 because is there a 0.6
percent plus minus, I'm 99.4 percent sure that this information is correct, and what you see here is that
there's a little collapse going on of the currency supply up here, and it's not huge we've gone from
you know this would be 15 so about 14.7 trillion dollars down
to just under 14 trillion dollars in M3, but base currency is a component of the M3 that red part
on the bottom is part of it, and they've been pushing
that up like crazy Why? Because there's a credit
collapse going on right now.

When you deduct the base money from the credit based portion of this part of M3, so the portion of what we
borrow into existence what happens is that it shows this enormous
collapse going on. This is M3 minus base money and there's a 1.7 trillion-dollar collapse of the currency
supply, it's about 13 percent, Now, there's no time in history that this has
happened, this goes back to nineteen sixty except the beginning
of the Great Depression, that was the last time the currency
supply contracted was, the beginning of the
Great Depression. Usually there's a time lag
between stuff like this happening and the public feeling it so the Federal Reserve is borrowing currency
into existence like crazy and they're now doing direct purchases
of bonds from… They don't even go through that open market
operations shell game, that keeps you from
seeing what's going on, they're buying bonds directly from the
Treasury, this is Quantitative Easing they're calling it and that means there's
an emergency going on.

They're telling us that
everything's fine, that, you know all of their emergency efforts cured
everything, and the economy is OK what the hell is this right here? why in just the past couple of months
this is part of the quantitative easing why is the currency expanding? from uh… 2 trillion to 2.4? If everything was fine, the Federal Reserve
would not be doing that! They're scared shitless,
so it's happening they're doing anything they can to
prevent this deflationary collapse that I predicted in my book uh… you know I first started buying gold
when it was 325 bucks an ounce, actually it was 315 uh… 326 for golden eagles uh… that was October 2002, by April 2003 I had discovered silver and I was all in. I can see, I was reading in 2001 and 2002 I was researching what was going on in
the global economy every single day, I was addicted to it. And by October of 2002 I
started making my commitment and by April of 2003
I was all in. In 2004 I started speaking on it.

In 2005 I incorporated goldsilver.com
and became a precious metals dealer and start writing my
book and that was published in 2008, so I didn't just bet my portfolio
on it, I bet my entire life on it. I can see that
there wasn't anything in history as far as finances go that
was as much of this sure bet, a sure thing as gold and silver accounting for the
expansion of the fiat currency supply.

Gold and silver are denominated in this fiat currency, these digital numbers
that they type into the computers and paper notes so they just run off the
printing press and it's all borrowed into existence. Periodically throughout history
for the past 2400 years they have done this. This is… the lower line is the value of
the gold held at the Treasury so the uh…

The number of ounces
of gold times the price. The upper line is the currency in
circulation, base money. And that this is from the
year 1918 and here we have the stock market crash in 29
and these are the bank runs of the 30 where people
were asking for gold. But they printed too many receipts for
gold. If you can go back to before World War One these two lines
would converge. They diverge there and we've
created this lie where we were creating all these receipts for gold,
these claimchecks on gold that didn't exist.

When people wanted it, Roosevelt had to make private ownership
of gold illegal because there was a run on gold, and in the United States
americans could not own gold. And then a year later they
unpegged the dollar from gold and the dollar's value plummeted, so that it took, it went from
taking 20 dollars to purchase one ounce of gold uh…it then required 35 dollars to purchase,
so they called it a change in the price of gold, they can't change the price of gold
when you're on a worldwide gold standard, and gold has, you know, it's got
a certain intrinsic value.

The dollar fell. And so… what's amazing is accounted for
the currency supply. This is the free markets in the will of
the public forcing the government hands forcing them to change the rules.
Here's the same chart again uh… but now I've taken the
dates out further, so you can see uh… World War Two, the expansion
of the currency supply then in 59 uh… Charles de Gaulle,
the president of France uh… says we want our gold, other countries
started jumping on board and gold started leaving the vaults. Then I'm taking it out further
because that one goes out to 1971 In 1971 we go off of gold
but there's another line here, a blue line. how many here would say the credit
cards are replacing cash in circulation? Credit cards are replacing
cash in circulation. I believe they are and when you sign
a credit card receipt and you paid that merchant, the merchant's checking
account does not know the difference between credit card currency
that you created and cash that the Federal
Reserve created.

It can't tell the difference and that
currency that you created circulates until somebody saves it up and
pays down credit card debt. And so uh… I add that to the currency supply. Once Nixon took us off of gold, and
gold became a separately traded commodity/currency uh… the will of the public and the free
markets drove the price of gold up until once again the value of gold
held at the Treasury exceeded the currency supply and there was
a year where we could have gone back on the gold standard and it also covered outstanding
revolving credit for an entire month. So all it was doing is the
same thing as it did in 1934 and in Weimar Germany and
hundreds and hundreds of times since the year 407 BC with the
first grade inflation in Athens. This is the same chart again but it shows Ben Bernanke panicking
over here and this is the increase of base money.

That's that first chart that I
showed you, not first chart, but one where there was a red area on the bottom, so that's the increase
in base money. Well, there's the outstanding
revolving credit piled on top of it, uh… here's gold and what this means is that gold has to
rise from here to way up there to do the same
accounting that it has already done twice in the United States and
hundreds and hundreds of times in history. This is a natural thing. It does this
automatically. The will of the public and the free market force
this to happen.

I'd believe that is there's absolutely no chance
in hell that this won't happen, right now it takes about 15000 to
20000 dollar a ounce of gold So, here is another way of looking at the
same thing, and it's a great way of looking whether gold is undervalued
or overvalued. If you take just the paper
dollars, that base money and you say there's a certain amount of
paper dollars, how much gold do we have as a percentage of those
paper dollars to cover them? And so gold is expensive when we've got too much gold,
more than uh… paper dollars, and it's cheap when we don't have enough,
and it's very cheap uh… when uh… when it's way down here. Well, this is where we are as far as just the paper
dollars. Here's when you add outstanding revolving credit. This is what a debt collapse or
currency collapse looks like. We borrow uh… two units of currency
into existence here uh… and uh… to do that we promise to pay back, we're borrowing
this currency into existence with the bond the bond is over here,
say you've got uh…

These two units
of debt plus interest, so you owe back more than you're borrowing into
existence but then each month you're going to pay off a small portion of that debt, and so the next month we go
on borrow more into existence and we pay off, we keep on hang
off that debt every month and we always have to borrow more into
existence than we're paying off, but notice something. You notice how the debt is now growing
faster? It was only fifty percent higher but now it's a double,
it's a hundred percent. It grows faster than the currency supply. There comes a day where
this is unsustainable. If the public gets scared and they
stopped borrowing currency into existence and they save
up and pay down debt, the whole thing goes
into a deflationary collapse. This is what I was predicting and this
is what is happening right now. Thank you. uh… This is how much debt we owe
compared to the size of our economy.

If you owe fifty cents and
your economy is a dollar you owe fifty percent of
the size of the economy. If you owe five hundred billion and your
economy is one trillion you owe fifty percent the size of your economy. It's the same either way so uh…
this what this chart shows, is how much debt
the United States has, the National Debt, compared to the size of its economy, and it goes back to 1792, which was
when the original coinage act of the United States was created, and there was debt leftover from the revolutionary war and,
so that's this debt here at the very beginning of the chart, right there and what you see is that it never
exceeded the fifty percent level, until World War Two, this includes the Civil War, World War One and the
establishment of the Federal Reserve, uh… the Great Depression. You see that during the twenties we were
growing the economy faster than the debt, and so the debt compared to the size of
the economy is a smaller and smaller uh…

Portion because we were having the roaring
twenties, the economy was growing and the debt wasn't
growing as fast, so on this chart the debt is shrinking
through the twenties but then suddenly in 1930 it goes up. Why? It wasn't because we were borrowing a
whole bunch of currency and going into debt, it's because
the economy shrank and our debt
stayed the same, so that was the last great deflation
that got us into uh… a deeper debt because we couldn't afford to
pay the debt that we owed, uh… the economy shrank faster then we do the deficit spending for
World War Two and we can exceed this level of fifty percent because now we
have this fiat currency system, where we could just borrow
currency into existence but when you do that a bond, bonds range from like a month to
thirty years out into the future that you're going to pay them back, that means we're borrowing prosperity
out of the future.

You remember how I said you save up some of the currency
supply and you can pay tax to pay the principle plus interest. So the prosperity that we're
enjoying right now, this moment is owed back in the future. We have to pay a principle plus interest
for the privilege now of having currency that we can use. Somebody is skimming off
the top basically, this is the way the banking system sort of skims
off the top, is through inflation there's people that get
rich off of this without having to do any work and putting their value into the
system, they get to skim purchasing power out of the
system through inflation. But every dollar that we borrow into
existence puts us in debt in the future, so we are every year borrowing
prosperity out of the future and we spend it today.

The average roll over for all the bonds
is about four-and-a-half years, so the prosperity that
we're enjoying right now we owe back uh… we've got to pay for
four-and-a-half years from now. And right now the taxes
that you're paying are paying for prosperity
during the Bush administration, We have already
spent it, it's gone. So then we started growing the economy
faster than we were doing deficits spending, so our debt compared to the size of the
economy goes down during the Korean War, in Vietnam, and then we have the end of the gold
standard and then Reagan says: "deficits don't matter" we can just go ahead and
spend as much as we want. uh… The debt increases. Just before
this era of the financial crisis, there's a little slope where it starts to go
down, that's the Clinton era.

They said that we had surpluses, it was uh… bullshit. If you look.. I don't look at the
government's accounting of whether or not they say we have a
surplus or deficit, what I look at is the National Debt. Did it go up? If it went up it meant we
spent more than we had. If it went down it means we had a surplus, we had excess
income above what we're spending and during the Clinton years
there was never a year where the actual national
debt went down. I don't know of the people in the United
States, from the United States here, remember when uh… Gore and Bush
were running against each other they're both telling us how they were
going to spend all this currency that was flowing in.

You know, they were each trying to compete on all the free crap they're
going to give us in the future, and uh… you know, that's how uh… actually that
isn't how Bush won… but that's another story. Anyway, These statistics are from the
congressional budget office. This is what our government is going to tell us,
is going to happen in the future, and it's not pretty. It's completely unsustainable,
it is impossible, it cannot happen,
you can't have debts that is ten times
the size of your economy. It's not possible. Everything comes
to a screeching halt first, and so something has to change. Right now, uh… I don't know if it got passed or
not, but the government I dont't keep up with the news,
I consider it all short term noise, it distracts you from what is
really going on, so I'm not sure did uh…

They settle on some sort of
budget and is the government gonna keep on running? Does anybody know this? Yes, they did? Did the republicans, who were trying to get
this thing passed whose gonna pay down the debt that they win? There's some sort of compromise. You see, it's deflationary. It would cost a financial collapse to try
and pay down this debt, you have to go into.. In order for us to maintain the levels we've
got and to maintain the prosperity Obama has to be a…

We have to be twice as far in debt when
he leaves office than when he came in. Or the whole thing is
starting to collapse. uh… so, more proof that we are
going into a deflation first. This is what a dead cat
bounce looks like. This is the stock market.
The stock rises uh… it peaks, takes a little dip, a bunch of investors come in, thinking
that they're scooping up deals and they start buying and it rises again and then
the crash continues because when they started buying it hadn't
reached fair value yet. It had just rollover taken a little bounce in
the market that's still uh… looking for a fair value so there's
the dead cat and it bounces.

There's the Nasdaq, so that's uh… uh… what a dead cat bounce
looks like. The initial crash on the Nasdaq was
38 percent. The total crash was 78 percent. This is the Dow in the 1929 crash
and the dead cat bounce, uh… the initial portion of
the crash was 48 percent, and the total crash was 90 percent, so in the first examples was
38 percent, 78 percent. 48 percent, 90 percent, so if
the initial crash is larger the rest of the crash
is going to be larger. We are going through a giant
version of the 1929 crash or the Nasdaq crash. We just had the biggest
crash in history: the Dow which is supposed to be the biggest,
safest, securest. The 30 largest companies in the United States uh… just crashed by 56 percent and we are in a
dead cat bounce, meaning that ultimately the total crash should be greater
than 90 percent from its high. This is the best way of measuring the value of a stock, and I'm sorry if I'm going
fast and this isn't sinking in, I've got lot of stuff here and
I've got to cover it, only got twenty minutes left, I gotta show you that the world's
stock markets and real estate bubbles have to continue crashing because all it is is that market trying
to seek fair value, it's trying to seek equilibrium, this is what the markets do, it is their job.

The SP 500, these are PE ratios,
how many here knows know what a PE ratio is? OK, how many do not? It's OK, raise your hand
and say that you don't. OK, it's the price of a share of stock divided by the earnings
of the company. So it's basically how much is this
stock costing me, compared to how much is the company making. And one of the best ways, the entire industry stock market, the
industry, the financial industry agrees that this is
probably the best way of measuring the true value of the stock,
whether it's overpriced or underpriced when you're buying it.

The S&P only goes back to the
year 1950 but professor Robert Shiller of Yale University uh… reconstructed the S&P and took the
500 largest companies in America and took it all the way back to the year 1880. So you have a hundred and twenty years or two hundred
and twenty one years of data here. Fair value is when PE ratios are about
12, meaning you're paying twelve times the
earnings of the stock, so if you buy a stock its going to…
if nothing else changes and the company continues making the same amount
every year, it's gonna take you 12 years to make your uh…

Money back and be in profit. Undervalued is anything under 10,
overvalued is 15 to 18, anything over 18 is a bubble, and so here's the data
going back to the year 1880 and what you see here is that there is no time in history that
we go from fair value to overvalued, once it hits overvalued, it does not stop, it bounces
on the way down, and visits undervalued, overvalued,
undervalued, overvalued, undervalued, overvalued, undervalued. The greatest bubble in history, the year 2000 PE is at almost 45, absolutely insane
investing in a stock and having to wait 45
years to be in profit. This was nuts and people were chasing
stocks like crazy. This is the tech boom and so on. Well, it crashed down the fair value
during the market crash of 2008 and it bounced back
into a bubble, where PE is about 23 or 24 right now. The stock markets seek equilibrium. They
seek fair value over the years. This is their job, that is what they do. There's a famous trader
named Bernard Baruch who said in the short term the stock
market is a voting machine, is like a stock machine, I mean, it's
a slot machine or voting machine it does what the public
thinks it should do.

The public chases after
something, it goes into a bubble, but in the long term
it's a weighing machine, it balances, its scales balancing each other. That's what the stock market is
always trying to do: seek fair value. It's only there for brief
moments in history, but the point is that every
time we are in a bubble, it visits severely undervalued and the
greater the bubble, usually the greater you overshoot fair value. uh… This is the second best way of
measuring a stock's value: the dividend yield. If you
buy a stock for a buck and that company pays you six cents every
year into your brokerage account you're getting a six-percent yield. I have inverted this chart because uh… the higher the yield the more
undervalued the stock is, the lower the yield more overvalued it is. So I inverted it, so
the bubbles are up and undervalued is down, uh… so fair value is uh… four and a half
to almost six uh… so there you see the
same pattern as before, but here's what's alarming.

It's that there is no time in
the first 118 years of data that we have been
in a bubble this large. This is absolute insanity
and it can not last. There are two ways that the
market can seek equilibrium. One: the market goes sideways for a decade
while we have raging inflation that will balance this out and then bring
dividend yields and PEs back into line. Two: it crashes, the markets go down, the currency supply is collapsing, therefore this has to be a
deflationary collapse, this can't be an inflation in what they
call an invisible crash.

Uh… these are the
world stock markets, so there you have the US stock market,
the England stock market, Germany stock market, this is Singapore and Japan. Notice that before the year 2000 Singapore and Japan used to trade in
different direction than the United States. The United States could be going up
while their stock market was going down. But before the year 2000 all of the markets
of all the major economies trade in the same
direction at the same time. Here is Brazil and here is Russia and in about the year 2003 they started trading in the same
direction and since the market crash of 2008 all markets,
all world markets go the same direction
at the same time. The S&P, the Dow they're way,
way overvalued in a bubble, we're having a deflationary
collapse of the currency supply, the markets have to go down, when they do, the rest of the world's,
where the United States goes so goes the rest of the world. These markets all have to collapse.

Now, we have some real estate bubbles going
on. The real estate bubble in the United States uh… took it basically burst in
the year 2007-2008 and it's been falling but I measure something
called the mortgage rent ratio, uh… fair value on a home is
if you're paying about a uh… uh… a dollar to a dollar five for the mortgage, the monthly
mortgage on a thirty-year mortgage plus your carry cost
like insurance and stuff, for each dollar that you can rent the
house for, if you were going to rent it.

We went into a bubble of a buck
twenty five in 1989-1990, fair value is about a buck five, and then we had the recession and it
went to ninety cents, on national average in the year 1995 uh… real estate cash flow by ten
percent, a single-family medium price home in the United States except you couldn't get a loan
back then, credit was tight, the economy was lousy, then we went into this real estate
bubble that was the greatest bubble in world history, where people are paying a buck
eighty-five, a buck ninety, almost two bucks for each dollar they
could rent the house for. uh… And then that bubble popped, and it came back down not to fair value but
to a buck twenty five and bounced, so it came back
down to the height of the previous bubble, it bounced, and we are right now at a buck twenty
five, so valuations on real estate are still as high as they were
in the bubble in 1989.

They have to come down or rents have to go up. This is all deflationary, which means
that rents are not going to go up, real estate is gonna come down. All of this travels
together, like I said. Now, when the world
stock markets crash, does anybody know about the bubbles that
are going on, the real estate bubbles that are going on in
the rest of the world? How many here are watching the videos
that we produce each week on Youtube and so on? OK, do you enjoy those videos? Yes, good. Are they informative? Yes. Do we try to sell you anything? No. All we do is we educate. So here is a video that we made in
Las Vegas uh… this is our driver very well-informed
man, very educated. uh… he was very informed on world
finance, the stock markets, real estate, he really knew what
was going on in Las Vegas and behind him there is a
uh…

Big casino project I can't remember the name of this one uh… there's the… Venetian in the background and
there's a building going up in front of that. this is the the casino project
that they were developing uh… and that's another shot of it. See that tall building behind it? That's a hotel called the Fountainbleu. If you go to the other
side of the Fountainbleu what you notice is that there's a bunch
of windows that are boarded over, this thing is skinned on the outside,
it's not finished on the inside, they've got a billion and a half into
it, now looking for another three billion dollars to finish this thing, and this stuff is all over Las Vegas, it's not
just in Las Vegas, it's all over the world.

This is in Moscow, this is a development called
Moscow's City Center, there's the project, you can't read it
unless you read Russian, uh… but all of these beautiful
buildings here, there's nine buildings one of them was completely in the
framing stage, another one was uh… half way completed of the others there are two that are
occupied and one that is one-third occupied, the rest are just skinned over, and they're not
completed on the inside. The project is at a standstill, uh… and then in front of this project there's
this giant hole in the ground and this is where the centerpiece
was supposed to be. This was Russia's bragging rights, this was going to be the
tallest building in Europe, Federation Tower, and it's
a hole in the ground, and it'll remain a hole
in the ground, that will never be finished.

Does anybody know what the Singapore
flyer is? I've only got ten minutes and I'm not gonna be able
to finish this thing, It's a big ferris wheel in Singapore, it's
one of the tallest in the world if not the tallest, I think it is the tallest, and here I am looking at
their real estate bubble and if you noticed there's cranes on top
of all these buildings here, uh… there's cranes everywhere. Look at
all those buildings being built uh… All bubbles burst, we are in
a worldwide credit bubble, when these markets rollover the giant real estate bubbles that were going up and then took a
little breath when our markets crashed their bubbles kept on going after
pausing, when our real estate bubble uh… popped and started
reverting back to fair value. The markets are just trying to seek fair
value, that's all they're doing. But people and the world
central banks go: "Oh, my God!" every time there's a little crash "we gotta do something about it!" It doesn't feel good to be in a recession
so they try and pump everything up but they don't realize that they're
just making everything worse later.

Everything they do is gonna come
back to haunt them as more uh… inflation eventually uh… or this deflation I'm talking about
is the expansion of credit contracting. Here's another thing that is going on that is going to mean that this decade
is different than anything else that you have known. uh… People don't realize
that every 30 to 40 years the world has an entirely
new monetary system. It changes every 30 to 40 years. In 1873 Germany started
the Classical Gold Standard uh… and by 1900 pretty much every developed country
on the planet was on the standard where every note in circulation that was
put out by their treasury was backed by an equivalent amount of gold, so it was 100 percent backing, uh…

Then World War One happened, all the combatants in Europe went
off of the Classical Gold Standard and started printing, and between the wars we had something called the gold
exchange standard where it was a mixture of debt and uh… gold backing the currency uh… then that was a very poorly
constructed man-made system, and anything man-made
cannot last, so basically they were uh… the Federal Reserve, under the Federal
Reserve Act there was a 40 percent reserve ratio and they were allowed to put uh…

A fifty dollar bill into circulation
for each twenty dollars worth of gold that they had
backing the fifty dollars, so they're putting claimchecks on gold
in excess of the amount of gold that they actually had. Ever since the Federal Reserve was born
we have been living under a lie. And if people say that we've got free
markets in the United States, they're wrong. You cannot have free markets
without free market money. Your currency is fifty percent
of every transaction, all of the transactions
are the free market. If there's a small group of men
deciding what currency is and how much the cost of currency is
going to be, the interest rates, that isn't a free market.

We do not have free markets,
we haven't had since the year 1913, then we have uh… something called the
Bretton Woods system, the Classical Gold Standard broke down, the Bretton Woods
system was from 1944 where uh… all of the world's uh… currencies would be backed
by the US dollar at 35 dollars an ounce and foreign
central banks only could exchange those dollars
for gold at the New York Fed, for 35 dollars per ounce, so all the world's currencies were
pegged to gold but through the US dollar. uh… All of these countries started
asking for dollars and gold flowed out of the vaults and Nixon had to take
us off the gold standard in 1971, so you've got 30 to 40 years,
30 years, 28 years, 39 years plus what's next? In this decade there's going to be an
emergency meeting of the G7, of the G20 countries, and there going to be trying to hash out a
new world monetary system and they're already working on it, they're trying to figure out what they're going to do
when the dollar collapses.

Uh… Here's the differences between the seventies bull market and today and
this is the reason I say that you really can't compare them,
their isn't any comparison, and remember in eight years gold went up 24 times its price
silver went up 36, these are enormous winnings in such a
short period of time. uh… In the seventies it was basically
North America and Western Europe, that drove the price
of the precious metals, the exchanges were the
London Metals Exchange, and the Commodities Exchanges
in the United States, that's where the price of
gold and silver was set. All of the USSR they could not participate, there were no
exchanges there, there's no market for gold and silver and even if you could buy some, it was on
the black market, so your investment did not affect the worldwide price. Those
people were excluded in participating in this bull market and driving
the price of gold forward.

China under Mao, same thing, first of all everybody was making a
subsistence living, very few people even had electricity let alone being able to
go and invest in gold. India, Mexico, South America, these
countries were all very poor at that time, the world's richest man is Carlos Slim, and uh… he lives in Mexico City, uh… you have massive investors in all
of these countries now and in Shanghai investing is a sport, people will sit around in a room like this
and watch tickers go by and make their bets, uh… the rest of the world,
Africa, I mean, pretty much the whole rest of the world was excluded in
that bull market and gold went up 24 times and silver 36. So what…and back then too, news traveled very slowly, you turned on that old vaccum tube
TV set waiting 60 seconds for it warm up and then Walter Cronkite would
come on give you the price of gold and or you open the newspaper
the next day and uh…

Get your news 24
hours after it happened, and then you pick up the telephone and call
your broker and if you were lucky he can get an order onto the floor of the
exchange for you the same day, but possibly the next day. So, news and reaction
time was very slow. uh… Also the development
of the investor mindset. before the Arisa Act and before
Nixon took us off of gold, before 1971 when Nixon
took us off of gold if you went to work between your
late teens or mid twenties, depending on whether you went
to college or not, you could expect that if you saved ten percent of your
income every month then when we got into your sixties you can
retire and live off the interest in your savings account.

Can you do that today? Nobody
can live off the interest of its savings account, unless he got
twenty million bucks sitting there, fifty million bucks, that's the
only way you're going to get by. and you wouldn't leave in the savings
account because you're losing to inflation, your principle is
getting whittled away because of inflation. uh… So, my parents' generation were savers not speculators and investors. uh… What's different today? Today, the entire world
can participate. It's roughly ten times the
populations that can participate in this bull market. News travels at the speed of light over
a tremendous variety of media outlets. You can get the news on your cell phone, on your laptop, uh… And an investor crossing the Sahara, we're out filming in front of the
pyramids and there's this Bedouin guy sitting on the ground and he's
got some sticks and he's starting a fire to make some tea, and he's on his cell phone.

This guy crossing the desert can take his
Apple Iphone, check the price of gold and place a trade right there. Is this a different world or not? Yes? OK? uh… Then you have the development of the
investor mindset. Along comes the tech bubble, and Nasdaq and everybody got themselves a
trading platform and became a day trader, uh… and then they got
punished, the market crashed. Then you've got a real estate bubble that
happens and everybody starts chasing real estate, and then they get
foreclosed on, on real estate, the bubble popped at least
here in the US and England, the bubbles are still going on all down
the coast of China and Australia and New Zealand, those bubbles are massive and
they're about to burst.

Uh… And so they got punished, nobody has been punished on
precious metals for 30 years. Our memories just aren't
that long so the next great bubble is absolutely
destined to be precious metals. Nobody has been burned out on it, you
know, nobody that's chasing after an investment to either secure their retirement or to
buy them that new Lamborghini. uh… And so the development of the investor mindset,
this is really critical to try and figure out.

How many units of currency around the
planet are gonna come chasing the same tiny little pile of gold and a
pile of silver that's about one fifth the size that was in 1980? uh… It's at least ten times the
eligible populations, each one of them has at
least ten times the currency, and, you know, as I think about this it's
probably greater than these figures I was saying that there
was somewhere between ten and one hundred times
more investors but think about this: In all of the USSR and China, more that
half the world's population, there was not one investor, not one and today it's the sport in Shanghai.

So i think this is probably over a
hundred, it might be a thousand I don't know. So you can take these figures and
possibly add a zero to them and that's the potential amount of units of
currency that can come chasing the same… I mean we had 2 billion
ounces of gold back then, uh… on the markets, and today there's
2.2, so it's 10 percent more gold, but silver there's only about
600 million ounces of silver on the exhanges, 500 million
ounces, 600 million ounces. uh… Here's the 747, and here's a little man with very strong
legs that just dropped out of the sky, this is for scale, and if you took all of the
silver ever mined in history it would fit into a cube about that size
on the scale and all the gold ever mined in history would be a cube about that size,
however, gold has two basic functions: money and jewelry, and that's a pretty much it.

Only 5
percent of gold production gets used in industry. Silver is the second most useful
commodity known to man, oil is the first with about 30.000 uses, silver is second with about 10.000
uses but we use it in microscopic amounts. When you type on the keyboard you're
typing on silver, when you look at a DVD or a CD you're looking at silver, when you look
in the mirror, you're looking at silver. When you look through a thermal pane
window, you're looking through silver. It's everywhere, it's a biocide,
it's going into superconductors, it's going into RFID chips, but you know what?
None of that matters.

What's going to drive the price of
silver is investment demand, it's the public rushing into this and
when gold gets too expensive for the public, they switch their preference to
silver, this is what happened back in in late 1979 and early 1980, silver lagged gold and then uh… silver
just exploded because gold got too expensive. But silver has already been
outperforming gold, and there will come a day when there's
commentators on MSNBC, Fox News, CNN they're going to be showing with… Whenever you're in a bubble,
whatever is in a bubble and the public is chasing, they want to hear about,
and the news accommodates, they give you whatever you want to hear
about, they don't tell you what they should be telling you, they tell you what
you want to hear.

And there's going to be
people on air like me showing charts and saying: "Of course,
silver has been outperforming gold, there's less of it". "There's five times more gold for
investors to buy than there is silver" that's the reason is been outperforming
gold so, is it possible that silver could actually exceed the price of gold? Sure, it is. All you have to do is look at
these insane bubbles that have happened in the past like
the tulip mania of 1637. I don't know if it will, I don't
actually expect it to, but it definitely could because it's
more rare and the markets do something called the price discovery
mechanism where they try to find out, uh…

they set the price based upon
the equilibrium that's determined by the rarity of the two items. uh… That's been going
on for centuries, the price discovery mechanism
is not broken, it still works, uh… and I expect it to work, so we use up
the silver, so the result is, this is what they look like today. Now, cubes are deceiving that so
the gold cube's actually about four, five times larger than the silver cube. If you take a cubic foot,
that's a foot by a foot by a foot. And if you make it 2 feet by 2 feet
by 2 feet, it hasn't doubled, it's now 8 cubic feet. So, uh… as you double the measurements on
a cube, it goes up in volume eight times, so there's actually about four, five
times more gold than there is silver on the exchanges that
investors can buy, so when people come flooding into this,
I do expect this…

Right now silver's value is 1/35 of gold. I expect it to outperform gold
by at least a factor of 3.5, I'm expecting a 10/1 ratio
at an absolute minimum. uh… Silver being 1/5 of
gold's price is perfectly logical, if it's going up slow and it hits gold's
price then all the industry will just switched to gold because that's the
only other metal they can use in most of these instances. They can use platinum, rhodium,
paladium and gold but they only mine 5 million ounces each per year of
platinum, rhodium and paladium. They use 900 million
ounces of silver so there's not enough of those other
metals, the only alternative to silver in most of these applications, like
keyboards in electronics, is gold. uh… So if it was going up slowly and
it did hit the price of gold, gold can stop it in its tracks, if there's a
rush gold can go past, however silver is much cheaper to mine than
gold and it wouldn't stay there. uh… We are always trying to figure
this stuff out at our company, trying to measure it and see
when to buy, when to sell.

Now… Can you roll that… This is a clip from one of our Youtube videos,
and this is the insiders video that uh… our customers at Goldsilver.com,
they got to see this two months ago and then we just released it, and so this is the type of
information that you get, and when we're nearing a top, our
customers are going to be informed on what we are doing, so, can you roll that video, please? And what you see is that when you're
coming off the bubble, when it's overvalued it has never in 130 years, just gone back to fair value and gone
back up into a bubble, it always continues on its uh…

Way down in a
bear market until it goes to severely undervalued and then a new bull market
starts again and it start rising. Well, we are in a bubble, it has to seek equilibrium,
it's probably gonna blow right past it and go to severely
undervalued, just like it has every time for the
past 130 years. So real estate and stocks are
doing this at the same time, while we're in a bull market for
precious metals and there is a problem with currencies.

So we are going to be measuring all
these things very carefully, and then using some confirming
indicators that should flash to us when to get ready to sell and
we're going to be letting you know, so thanks a lot, I hope you have some
great holidays, I'll see you later. I was standing in front of a green screen just sort
of drawing this charts out of memory and our animator Adam had to sort of flow the charts
in front of me and move them around to match them up with my finger, but uh… uh… that is what you
get as a customer, it's on the Youtube channel "Why Gold
And Silver?" so if you do a search for "sell silver Mike Maloney", because it's when to sell your gold and silver
so "sell silver Mike Maloney" you'll get that video in its entirety,
and there are dozens of videos on "WhyGoldAndSilver" "GoldMikeMaloney" and "WealthCycles".

So those are the 3 Youtube channels that you can go to, and each one of them
has a few dozen videos on it. uh… This is the gold panic
in 1948 in Shanghai, if you wait until the last minute, I'm not very good at swearing,
Robert Kiyosaki is great at it so I usually don't swear much on stage, but if you wait until the last minute,
you are shit out of luck, up shit creek, without a paddle in a
barbed wire canoe, fucked! Thank you! Unlike the second
to the last frame here, here's one thing
people do not realize. It does not take Ben Bernanke to print the dollar
into oblivion for gold to go to 10.000 dollars an ounce,
50.000 dollars an ounce, 100.000 dollars an ounce. All it takes are a few very wealthy investors
to try to get theirs before the masses wake up
and the herd comes charging in, but this is the masses,
this is the people waking up out of their beer-and-football
induced comas, coming in at the last second, well,
this is sort of a different situation, because their currencies were going to
to go to zero because of war, but basically, you've to get in
ahead of the trend, and then get out when everybody
else is panicking like that.

Like I said, this is the greatest
wealth transfer in history, but you have no idea
of the scale until you think. If we do have a change
in our monetary system and if we have to go back to
some sort of asset backed currency that means that the people that are
holding non asset backed currencies, which is all the currencies
on the planet today, their wealth is transferred to
the holders of precious metals. This is the greatest wealth transfer in
history, therefore it is the greatest opportunity in history. By the way, is Stephanie Wing here? Stephanie stand up for just a second.
Stephanie's grandfather's sister was the Secretary during the
roaring twenties and through the stock market crash and then
in the depths of the Great Depression, she started buying stocks
when everybody else was selling and when stocks were like the bad,
and the poisoned investment that you did not want
to get involved in. Stephanie's grandfather's sister
started buying the stocks, she is an example of wealth cycles, she rode this stocks up and I
don't know exactly when she did it, but she must have sort of innate sense
that the stocks were overvalued, and she sold the stocks and bought real estate.
If you go to the French Embassy in Washington DC that was her hotel, thank you, Stephanie.

So, thank you very much, we'll see
out in the lobby where you can get Free 100 trillion bucks from us, thanks! So, I just came off
stage of the event, and you know, it's great, the event went great, all the information
was very well received, it was a great audience, but, you know? Even though it's so rewarding to talk to the people live
and hear their reaction still reaching a few hundred or a few thousand people at a time. It's not good enough any more,
we're really in an emergency and we need to start reaching
millions of people at a time, and that's why I'm trying to go more video oriented, than travelling around the planet
like I have been, country by country, telling 400 to 4.000 people at a time. So, you know, hopefully I'm hoping that I don't
have to make any more personal appearances, that I can just produce videos, write books
and get the information out there as fast as possible and reach millions instead of thousands.

Well, we've been working on a
documentary and we have been around the world, Taiwan, Singapore,
Australia, New Zealand Colombia, Peru, Ecuador, London, Saint Petersburg (Russia), Moscow Germany, Rome, Paris, Athens (Greece), and we shot in front of the pyramids in Egypt,
it's been a spectacular trip, trying to put together this documentary and I think that's going to be really enjoyable
for people and highly educational. No chance in hell that
it's gonna happen, as far as a one world currency
that everybody is going to use. But what you see here
is that in the XAU since the early eighties, on the average, gold and silver outperformed the
stocks, on the average. …you've gotta get started, that'why…
the free markets always overwhelm manipulations, it's a doomed plan, eventually it will fail, but, they've got to position so accordingly,
they've got to be ready, you can't wait… because you can see 200, 300 point gap days for gold.

Basically,you know, one
thing you find out is that all fiat currencies eventually
fall to their intrinsic value, because they ruin it by puttink ink on it.
It's the amount of energy you can extract from it, the amount of the BTUs, from combustion, when you burn it, and you saw
that during the Weimar hyperinflation, people used the currency as fuel to heat the house.
Currencies have been backed by oil, by gold and silver by land, but as soon as you remove
some things that you can't, some things that put financial constraint, where
you just can't print as much currency as you want, the currency is pretty much doomed. It's beyond astonishing… If it
wasn't for the horrific effects, it would be more ludicrous, it would be actually comical,
that we can stop and have some fun with, and it's actually horrific, if you look back
in history in the last 3000 years, every episode of this kind of silly crap ended very very badly…

As found on YouTube

401K to Gold IRA Rollover

Read More