Massive U.S. dollar dump? BRICS to launch new currency causing tsunami of inflation – Andy Schectman

getco News special coverage of theVancouver resource investment conferenceis brought to you by first mining goldI'm Michelle McCrory and we are back atthe Vancouver resource investmentconference where one of the big themeshas been the challenge to the dollardominated monetary system and my nextguest says a global monetary reset isalready underway Andy schechtman is thepresident and owner of Miles Franklinprecious metals he has three decades ofexperience in the precious metal sectorand is a very well regarded expert onmonetary history and political economywelcome to Kitco Andy thanks for havingme Michelle it's great to be here it'sgreat to have you although as I said toyou earlier it's a little bit terrifyinghearing what you break down for usand it all hinges off this idea ofde-dollarization which seems to begaining momentum following Russia'sinvasion of Ukraine and the way thedollar has been increasingly weaponizedtaking Russia off the Swift system thebreaks taking notice of this and sayingwell perhaps we should have our owncurrency backed by Commodities we'veseen now as conversations happen anddevelop following the withdrawal fromAfghanistan which arguably was adisaster we had Saudi Arabia questionwhether they want to be part of thebricks and question their relationshipwith the United States and we've alsogot Russia for example offering to helpIran with the a gold-backed stable coinso we have all of these pieces fallinginto place and and perhaps notcoincidentally we've also seen centralbanks buying gold at record ratesnow you say all of these are just datapoints that if you connect them togetheryou see a narrative that points towardsa global monetary reset and it allstarted for you in 2017 when you sawthat the bundesbank Germany wasrepatriating its gold so why don't wetake it from there andy break down yourthesis joining those dots for us surethank youum that's well done that's a goodroadmap so it's true you know at the endof 2011 as the as the bull marketstarted to head down into a bear Marketum by by 2017 we saw capitulation onmany levels not only with the retailinvestor but also the Central Bankcentral banks were selling their gold itreally never made a whole lot of senseto me and by 2017 we were at really theat the peak of of the bear Market inprecious metals and this was whenBitcoin was taking off and there were alot of people people selling their goldand talks of central banks divesting ofgold and investing in treasuries orasset uh income producing assets andthen out of nowhere a story popped upthat the bundes bank had been trying torepatriate their gold for a few yearsbut started to really make a big deal ofit in 2017 it caught my eye why wouldthey want to repatriate their gold fromthe New York fed in the midst of whatseemed to be a a movement away fromprecious metals and into other forms ofinvestment it was very interesting theymade such a big deal and within a fewweeks of that you had the bank of turkeyin the Bank of Austria and the Dutchnational bank and the check NationalBank and the bank of Poland and all ofthese Banks the bank of Hungary theywere all saying send us our gold backnot just from the New York fed but alsofrom the bank of England and so it begana a movement that really caught my eyeand now in 2018 the following year thisreallyaccentuated when those same Banks boughtmore gold as a group than they did inthe 60 years previously combined now I'mstarting to get really interested andand really aware of what was happening2019 comes along those numbers that jumpby almost 100 percent north of 90percent the the accumulation of gold bythese central banks which you know waswas out of nowhere really if we lookback over the previous decade and thenthe bank of international settlementscame out with the Declaration ofrevaluing gold as a high quality liquidasset now there's been some dispute isit a tier one or is it in high qualityliquid asset in in the end they're thesame thing it's it's as good as cashwhen it's a hedge position it is viewedby the bank of international settlementsas good as cash and I think if you lookat that and realize that the acquisitionof gold and the repatriation of goldwhich was almost two two and a halfyears prior to this admission you wonderwere they clued in on the therevaluation of gold or on thereclassification of it where they toldget your house in order repatriate yourgold you might want to stop buying itbecause we're going to reclassify it asas good as as cash so this reallystarted to get me interested in what washappening and so I just inter rupt theU.S have been left out of thatconversationno the actually they were not this wasall part of the Basel three uh right butI'm saying if they were telling centralbanks you should start repatriating goldthis is what's going to happen whetheror not they were left out of it or theyjust decided not to do it or accumulatedother waysum it is I guess debatable andum you know you wonder where Gaddafi'sgold is where Saddam Hussein's gold isjust saying you know the Ukraine soldout of 25 billion dollars worth of goldto fund the war where did that go so Idon't know where the U.S if the U.S wasaccumulating gold or if they weren't orif they were getting it in other waysbut the U.S certainly wasn't part of thenarrative these were all the EasternEuropean Banks and ironically most ofthe banks that were doing it were eitherpart of the European Unionum or or in that General region but mostof them did not trade the Euro theytraded their own currency within theEuropean Union so these are the banksthat I believe ultimately will shifttowards the brics Nations I digress2020 I start to notice the second veryinteresting piece of the puzzle and thatwas the Chinese Belt Road and railinitiative and this is the largestinfrastructure project in human historyand it's connecting Asia and Africa andparts of South America and Europe theold Silk Road but thatbut that being for what over a decade ithas been but it really started to gainTraction in 2020 and I'm looking at itand realizing that all 13 OPEC producingcountries are on the Belt Road almost 70percent of human population and 40percent of global GDP on this thisgrowing group of countriesand and it's all void of US dollarparticipation most of it's settling onthe new Chinese digital Yuan and so itstarted to get my I started to to getthis feeling that looka lot of the countries that are part ofthe Belt Road China and India and andRussia andum these are countries that areaccumulating all of the gold and and andproducing all of the gold and you startto see this growing group of countriesand kind of the isolation of the dollarnow this really didn't all fit into whatI was talking about until shortly after2021 2020 the banks are still buyinggold and um 2021 rolls around and we seethe day that we leave Afghanistan in ina very unharmonious waySaudi Arabia I think at that pointsigned the death warrant for the end ofthe Petro dollar the day we leftAfghanistan or the day after and I thinkthere is no coincidence in the timingSaudi Arabia announces a joint militarycooperation agreement with Russia youknow I often ask and just to recapleaving Afghanistan deserting weaponsdeserting allies deserting Personnelleaving our own servicemen and womenBehind Enemy Lines was something thatwould have been considered inconceivablein in the United States that I grew upin and I think that really signaledsomething to our allies and certainly toour foes andum you know I asked people what makesthe dollar the world Reserve currencyand most people don't know but in 1974after three years after we closed thegold windowKissinger went to Saudi Arabia andstruck a deal with the Saudi Kingdom andsaid hey we'll protect you but for thatyou'll denominate oil globally indollars and and they have through OPECand this has created a massive syntheticdemand for the dollar for the last 50yearssignaling a change in that by a jointmilitary cooperation agreement withRussia was a huge huge move that reallygot very little of any attention in thewestern media but now things are reallystarting to click in for me and I'mstarting to see not only Globaldedolarization but also groupings thatare are growing together like all 13 ofthe OPEC producing countries on the BeltRoad like shortly thereafter China andNigeria who also signed the samecontract with Russia selling their goalto China for the Petro Yuan bond whichis immediately convertible into gold onthe Shanghai Gold Exchange and this ishow countries like Iran have sidestepsanctions for quite some time sellingtheir oil to China for a bond that isimmediately convertible into gold andthey take possession of it right off theShanghai Gold Exchange so these thingsare starting to speed up at this pointand and I'm really starting to noticethat there's a growing group ofcountries that are formulating aroundthe brick that are I think coalescingagainst the dollar the hypocrisy the thehegemony of the dollar andum you could see it you could feel itand and you could watch all of the goldthat was was being sent Eastward and theaccumulation and and the D dollarization2022 rolls along and the weaponizationof the dollar as you mentionedwhere I believe it's not the prerogativeof the West to say who can and can't useWorld Reserve currency it should be morefor public opinion not forthe administrator of the currency todecide who can and can't use it and itwas that moment and I often ask peopledo you think this was intended you knowwe have 130 trillion in debt 31 trillionthat's on balance sheet and Medicare andMedicaid and Social Security which is 55trillion underfunded in and of itselfand government military pensions renderus insolvent most of this debtaccumulated at the lowest interest ratesin human history was it intended did wewant to pick a villain tocreate this great reset to to accept toall of a sudden start the dendollarization and this is where thestory gets very interesting as it turnsfrom here okay well let's let's revisitsome of those points thereso the dollar starts to unravel in thisnarrative when Saudi Arabia starts tomake deals with China and the Petrudollar is in Jeopardy yesso you're saying Saudi Arabia is nowlooking at Russia for protectionandif you're Saudi Arabia you're thinkingtwo things but one thing you're watchinghow the doll was weaponized in theRussia an invasion of Ukraine and you'regoing we don't want that we can't havethat happen to to our assets what if theU.S wakes up one morning and don't likeour human rights policies for example orsomething else or some othersituation that could happen in theMiddle East and decides to do the sameto us maybe this isn't the best way tokeep our Reservesbut you've also got Russia not reallyprojecting tremendous strength via thisconflict in Ukraine so why would theSaudis make such a bold decision beforeseeing who is the bigger military powerin place yes that has that is part ofthe equation that's a fair that's a fairstatement this was before the UkraineInvasion number one and secondly youknow the day after these announcementscame out Zero Hedge ran an articlesaying Saudi Arabia announces to theworld that their their nuclearsubmarines are outfitted with hypersonicicbms these this is the technology theWest doesn't have the state departmentcommented and said they're veryconcerned about it these are themissiles that can go back 10 up in theatmosphere and hit the ground at thespeed of an asteroid that was I thinktheir way of saying don't even try to dowhat you didto Gaddafi and Hussein don't even thinkabout it it was A Veiled Threat let'ssayum and I think this is another reasonwhy you when you realize that also lastyear we see the Saudis say well we havesubmitted our application to the bricksso you have a a a growing Unison of compcountries that are joining together thatin and of themselves Maybe Can't projectthat strength maybe can't stand up tothe west but together as a group theirtheir militaries are stronger their gdpsare bigger I think it's it's a growingchorus of countries standing up to thathypocrisy standing up to to the West ina way that they've never been able to doin and of themselves andum well we'll leave the word hypocrisyaside for now but let's just saystanding up to a system where the U.Scan continue to print dollars and thenthat makes the debt that they owe theU.S become bigger and bigger absolutelyso we'll put aside the moral argument ofthe US's role on on the global yes andit is a perceived you know perceivedhypocrisy I'm not saying it is butthat's their perception that's that's afair enough point so we're going to seethis bifurcation of the global monetarysystembreak that down in further detail howdoes this play out from here well youhave all of these countries joining thebricks that you put them all togetheralong with the Shanghai Corporationorganization and the Belt Road you'retalking north of 80 percent of humanpopulation and all it would take now youhave to remember we're coming from aperiod of time where asset prices wereblown Sky High over the last severalyears with more money being created inthe last three than in the history ofthe country preceding it a lot of thatmoney found its way into assets and youhave the misallocation and thedistortions that are created by thisall it would take would be for SaudiArabia to stand up on on the stage asthey just told the folks at the Davosconference that we're now going to goingto uh consider taking other currenciesfor oil we've already been told that thebrics currency would be pegged to goldor to Commodities and the Assumptionbeing gold being one of the commoditiesI think all it would take would be SaudiArabia to say to the West Thanks for theMemories it's been great we appreciateit but we're going to open up oilpurchases in other currencies not justdollars maybe euros and Ruble and rupeeand gold and all of a sudden bang all ofthe countries that have had to holddollars for the last 50 years no longerhavereally have any interest in holding themand if they all start to dump dollarsand I think it would happen quickly orthey would all dump dollars you have atsunami of inflation hitting the shoresof the Westthat would immediately create a spike ininterest rates to compensate for theloss of purchasing power this is how wesee a great reset as as interest ratesspike in in relation to a crashingdollar which then is inverselycorrelated to asset prices that havegone stratospheric over the last fewyears and I would argue irrationally andas interest rates spike in this inversecorrelation hits the Shore's stocksbonds and real estate along with thecrashing dollar all collapse at the atthe very same time and when I asked doyou think it was intended you know Iguess I'm kind of tongue-in-cheek but ifyou think about it now you have avillain instead of blaming the FED forcreating these distortions and lettingthis happen you know you have the FEDthere saying they're going to raiserates but they they've done a woeful jobat raising them high enough to tackleinflation all right let's let's put apause on that one before we get into thegreat reset which I understand alsoopens the way for Central Bank digitalcurrencies in a complete revamp of thesystem and let's first focus on how weget to this de-dollarized global economyor at least an economy where the dollarplays a less significant role so in thespirification of the global monetarysystem what relevance does the Dollarhavedollars I mean it's still in place yeahthe dollar will always have a relevanceto it and maybe it's not in its currentstate but the thing that I think isreally important to understand is thatthese agreements that are being madewith the bricks represent such a massivepart of of of GDP and of population atwhat point does the West decide to orattempt to trade with this group arethey even going to be welcomed into it Idon't know it just seems they're beingisolatedwell because the dollar is so powerfuland because the United States hasenjoyed so much privilege having aglobal Reserve currencywhy would it just give it up without afight I mean they will fight and theywon't just give it up but you know a lotof people will make the analogy to theeuro that all these countries cametogether and it didn't work and I thinkthere's something to be said for thatbut when you look at all of thesecountries coming together again in asimilar rallying cry for whatever thatrallying cry is against the West it isthe backing of the new system byCommodities and perhaps all of itdenoted on a distributed Ledger the newthe digital you want which has beenrunning for the last four years backingthe the Belt Road to the tune of over 20billion in successful transactions wouldbe I believe the rails to a new bricscurrency that would show theimmutability of what every countrypegged or pledged to the new system thatgives it the glue to make it work whereeveryone has the same equal footingequals say at the table this to me iswhat would make the system work asZoltan pozar calls it a new systembacked by commoditiesBretton Woods 3 rather than a systembacked by dead instruments and promisesand Andy we have had other guests on theshow Frank jooster for one who mentionedthis over a year a year ago that he seesthe trend developing where you will havea central bank digital currency ordigital currency on the blockchain backnot necessarily pegged by backed by goldand a basket of other Commodities andthe transparency that the blockchainallows creates a sense of Faith amongstthe other countries going to theexpressionum that there's perhaps distrust amongstthem with regards to how they handletheir own Affairs right so but againthe idea that the United States is justgoing to hope that it will be includedin this trade systemit just seems a bit far-fetched thatthere wouldn't be a more aggressive pushto maintain that kind of status wellwhat would that look like what wouldthat look like I I don't know exactlywhat that looks like I'm sure they'llresort to any and all options is it awar is it a kinetic War it certainlylooks like we're heading in thatdirection right now you know with what'shappening we're funding the Ukraine to atotal of almost 100 billion dollarswe're selling them Stinger missiles anddrones providing you know tanks and andintelligence I mean you could argue inin a court of law we would be anaccomplice to a crime You could argue weare moving in that direction and maybethat is what they're going to resort tobutum I don't know I don't know and I Ithink the bottom line is simply this weare indebted to a level that will neverpay it back and interest rates arerising so at what point do people wantto start receiving something that istangible for the Commodities thatthey're trading or for the business thatthey're doing with with a country thatis is ispaying them in inflated dollars andcertainly the treasury market is Rifewith with risk at this point in in arising interest rate Market I think thethe bloom is off the rose for the Westso what does it entail how do they fightback I'm sure they will and maybe it isWar I don't know but your point is validis the the conflict then against theSaudis or the Chinese because it seemsas though you're saying that the Saudisor the king makers and all of this ifthey come out and say no more Petrodollar so who would the U.S potentiallydirect its wrath atthat's a good question I think theSaudis are joining the brics nation sothat they have they have protection fromcountries that have the ability to toback them and stand up to the West Ithink you know certainly the the Saudiswould be the linchpin of it all yeah butif they're joining a group a group thathas the ability to stand behind them andprotect them as part of a unified Nationor a unified groupit would seem that they're picking afight with everybody right well let'sfocus on the r in the bricks and that'sRussia because a lot of this dependson the Russian invasion of Ukraine whichmany would say is a proxy war with theUS really being so active andparticipating now sending tanks whichwas a line they said that they wouldn'tcross initially uh potentially there'snow a request from Ukraine for f-16swe'll see if that happensif Russia loses the swore what does itmean for this whole reset Theory does itjeopardize the brics ability to launchthis currency that challenges the dollaryou know what may it may slow thingsdown it may derail it may change the waythat it it plays out but look ever sincesanctions you're still seeing north of80 percent of the world trading withRussia it hasn't bothered the majorityof the world so and I guess what doeslose mean I don't knowum how how bad does this get and whogets dragged into it there are a lot ofwhat ifs and suppositions there I don'tknow and these are all valid points andagain this is a a chain of events thatI've seen accumulating over time and Iguess there's fluidity to it there's noquestion about it and it certainlyum I'm sure it certainly changes makingthis something that's cut and dry therewill be an outcome that I guess we'llhave to see butI don't think it changes the the globalde dollarization the global drive awayfrom the dollars and if if Russia is umhampered in any way by their ability tohold up their end of the bargain withthe bricks so be it I still don't thinkit changes the ultimate move away fromthe U.S well look Andy every GlobalReserve currency known to man has lostits place in the sun you know so it hasbeen dethroned it is sort of the naturalcycle of events and and to your pointabout these countries sort of not reallypaying that much attention to thesanctions we just hadum Yellen in South Africa speaking topresident Cyril Ramon Plaza saying heyyou guys are kind of contravening thesanctions a little bit you need to playnicely but if we don't know how muchweight a word has if we're not seeingthe U.S willing to back it up with withwhat military right I mean is that isthat what it comes to why have peopleplayed along all this time was itbecause of the assumed military might ofthe United States I think that was ithad a lot to do with it and look a lotof these countries a decade ago were inno position to do this you know when thewhen in when in 1974 when when uhKissinger signed this contract you knowthe Middle East was was was a poor apoor area they weren't enriched and theyweren't developed the way that they areright now and you could say the samething about China the progression thatthey've made as an industrialized nationis is extraordinary so I guess it's justlike you said to your point it's it'sthe timeyou go back to the 1400s almost everyevery currency had between 80 and 100Year lifespan we're already you knowwe're out we're on the outskirts of thatliving on borrowed time you could arguefrom an historical perspective so maybewe've just run the course of of ourcurrencyAndy who's on team dollarwho would prefer the dollaralthough you argue that this may be away to reset everything and we'll getback to that but who would prefer forthe dollar to maintain its status Isuppose those countries and that arepart of the Western Alliance Canada uhAustralia the United Kingdom Japanand I don't know if they really do wantit to continue I don't I don't know whois on team dollar I guess I haven'tthought that that far out to be quitehonestly I haven't thought about it thatwayI guess all I'm looking at is ismathematics and when you see such amassive shift of human populationcoalescing against the dollar and it'svery obvious to see when you see shiftsaway from accepting the dollar for oilby countries already and admissions byby Saudi Arabia to look to othercurrencies I think you have to take areal hard look at what happens if all ofa sudden the world doesn't need to owndollars to buy oiland and it's not just oil because we'reseeing a move away from you astreasuries globally but well certainlyfrom China of course not just ChinaSaudi Arabia all of these countries whywould anyone buy our treasuries earningthree percent with inflation double thatby metrics that arguably are wrong youknow I don't know if you've ever hadJohn Williams or Shadow stats on yourshow but you know he'll show you numbersthat the way the inflation wascalculated prior to 1980 when theychanged the numbers and he would sayinflation's at 15 right now but evenusing seven percent inflation with athree and a half percent yield on the10-year treasury you're guaranteed areal return of negative three and a halfpercent compounding over 10 years whywould anyone want to do that and soyou're right it's not just the dollarmarket it is the treasury market and weare incentivizing by the theunderperformance and the mismanagementof the dollar and what's happened to thethe yields on the treasuries for otherpeople or for these countries to findother ways and I guess you know thelooking at the U.S with thisunprecedented fiscal and monetarystimulus printing away and saying wellnow our debts are larger the US is justdevaluing our reserves so I canunderstand how the sentiment against thedollar would be building up in thescenarioso let's assume this does play out andwe do have a split in the monetarysystem and the dollar loses its valueand perhaps this brics Reserve currencywhich is digital which is backed byCommodities comes into play and becomesa leading player on the global stagewalk us through what happens to thedollar and for those holding dollarsback home yeah I think at that point youknow you have a a wave of dollarsselling every country on the planetnearly 85 percent of all oil sales havebeen in dollars for I don't last 50years if not more all of these countriesit's the foundation of their currenciesand if all of a sudden the dollar startsto tank it'll be a a tsunami of sellingsell sell sell in order toum not be crushed by the wave of sellingand I think when when that happens andyou have all of the dollars hitting theshores here you have that inflationaryspike in interest rates it has tocompensate for the loss of purchasingpower interest rates would have to spikeand when I started in this industrystocks and bonds were inverselycorrelated to one another one another itwas called risk on and risk off andwhen you realize that they are nowpositively correlated to one anotherbecause interest rates have been drivenso low a spike in interest ratescripples both the bond and the stockmarket and of course the real estatemarket the pillars of wealth in theUnited States center around stocks bondsand real estate if the dollar getsdumped globally and there's way moredollars outside the U.S than there aredomestically if all of a sudden they getdumped globally because you don't haveto hold them to buy oil anymore and theyhit our shore spiking interest rates yousee a collapse simultaneously in allthree pillars of wealth including theDollar on this idea of oil though therehas been an attempted shift away fromoil towards solar towards natural gastowards various other forms of cleanenergy nuclear even perhaps so is itthat relevant what no oil is priced inno because if the shift is away fromfrom oil no because this is the wholereason that OPEC and Saudi Arabia wantto leave us why would they want to notonly receive our depreciating dollarsand treasuries and and sell us their oilwhen we're telling them in 30 yearswe're going to be completely green soinstead they're focusing their energy onwhat amounts to north of 80 percent ofhuman population who is not going greenand who is not challenging their way oflife and so I think it is actually theCatalyst by whichSaudi Arabia makes this shift once theyhave their alliances and they feel safeI think they'll make that switch and itwill happen quickly I think when thatswitch flips it happens really quicklybut no I think in fact we're making amistake by doing that I think we'remaking a very big mistake by by makingthe admission to the Saudis that we wantto go green we're ruining their way oflife is the way they're looking at it sowhy would they want to do any specialfavorites for us and this is why theycame out and said to Xi Jinping that youare our most important trade partner inoil today and for the next 50 yearsthat's a big deal because we've beentheir biggest trade partner for the last50 years so I think really it is the keyPoint only in reverse okay that mattersbut it matters more for them than itdoes for us well because you could saythat developing countries have been putoff by this idea you guys have usedcarbon fossil fuels to grow youreconomies now that we're trying to dothe same you're telling us no we can'tdo that in hampering our growth andthat's why you see 152 countries on theBelt Road initiative yeah and these areall the developing nations and that'sexactly right and this is this groupingof humanity that I think and that's whyI say the word hypocrisy this is not myword it's just my perceive my perceptionof the way that they would view Us bymaking these declarations what aboutother Commodities that are not oilthat you would still need to use dollarsto buy do you is that where the splitthen just comes in well I mean you couldargue you have to as the dollar is theworld Reserve currency all of theseCommodities come into play and it'sinteresting the the president ofone of the one of the Asian countriesand it skips me right now recentlyrecently came out and said that thatthese countries because most of the rareearth metals are found in Eurasia shoulduh Institute a OPEC style cartel forrare earth metals and we're going greenyet most of what we need to makebatteries are found in the Eurasiancontinent continentmaybe you have to use dollars to convertto the new currency to buyrare earth metals I don't think we'vethought this through very well and so Idon't know if we if the dollar loses itsReserve statuswho's going to want to sell theircommodities for dollars first you'llhave to convert to whatever it is theythey want to accept all right and as yousaid you're joining the dots data pointsthat seem to be making sense in thisnarrative that seems to be unfoldingwhat would be a projected timelineyou know I don't know I I think thetiming is the hard part but I will saythis when I started talking about thisthree years ago it was spinning slowlyand you can see the rapid Ascension andand the progression of these alliancesbeing made and just in the last fewweeks we see Saudi Arabia make thatadmission about China being their mostimportant trade partner and just lastweek the admission that they're willingto accept other currencies for oil itseems to be accelerating and and sincethe weaponization of the dollar in 2022it seems to be spinning much much fasterI don't know when it when the switchflips but sooner than we probably thinklet's now connect the two parts of thedollarization and the great reset whichis an agenda of the world's economicForum best crystallized by the line youshall owe nothing and be happy and theirtimeline which of course is 20 30. somake the connection for us betweende-dollarization and the great reset andalso explaining food what the greatreset is well that's that's just what Isaid you have asset pricesstratospherically High where priceDiscovery has become impossible becauseof the distortions and in the moneysupply and in interest rates and it'screated environments where corporationscan buy back their shares where hedgefunds can borrow money and plow it intointo the markets and and make hugeReturns on and huge bonuses but havecreated distortions and asset prices soif we see that moment and when you knowI tried to factor in what Klaus Schwabsaid and the possibility of it happeningand it all centers around theweaponization of the dollar wasn'tintended did they did they know that bymaking this unilateral move that itwould create a backlash and and have avillain to point to OPEC in Russia andChina and these they did it we didn'tthey did it to us and and in thatenvironment where asset prices are veryhigh and the dollar is is forsakencreating that environment of spikedinterest rates and and an inflationarytsunami of dollars sitting our shore yousee everything collapse that's when theywould come in and roll out their newcbdc we know that they're already doingit they're already creating it the bankof international settlements said everycountry has to have it by 2025. thisgives them cover to roll it in if youlook at the fed the number two person atthe FED is lail Brainerd in fact Ithought she was going to actuallywin the spot for the FED uh instead ofPowell they reappointed him but theymade her number two she's a modernmonetary theorist she wants to get ridof the Commercial Bank she wants to domonitor monetary policy directly to youriPhone and so it would fit perfectlythat this would happen sometimein the next few years anyway where shecould come in and administer a uh acentral bank digital currency and Fromthe Ashes of what would be a a newsystem and maybe they come out and issuea gold back cbdc who knows the point ofit is is that if you wanted to create areset and I couldn't think of any otherway that they could do it because lookif Powell wanted to create a resethimself all he would have had to do isjacked up the reserve requirements atthe banks and raise interest rates to 20percent just like Paul volcker did bangit's over just like that instead theypussyfoot around with quarter and halfPoint interest rates that still renderthe return on the 10-year treasurynegative they're not doing anything tofix inflation so if they really wantedto reset the system jack up asset pricesand then incentivize the world to findan alternative weaponize the dollar andit's done for you with the villain topoint to that's why I put the dotstogether not saying it's going to happenjust simply saying what's that Occam'srazor you put everything together andmaybe the most plausible logicalexplanation is the right one I hope I'mwrong my youngest is 15 years old andand I don't I don't want to be right butI have a feeling unfortunately that I amwell on the Oxford Missouri you couldsay that the simplest explanation isjust sharing competence never attributesto malice what can be ascribed tostupidity fair enough fair enough eitherthey're really really stupid or they'renefarioussaying theythey who's behind the the world economicforum who who look who the FederalReserve they have to understand thatwe've dug ourselves into a hole that wecan never dig ourselves out of atrillion seconds ago was 31 688 yearsago you know how do you dig yourself outof a hundred plus trillion in debt asinterest rates rise you don't you can'tand so they being the people thatrealize the mathematics have gotten toobig and we have squeezed as much utilityout of a currency a dying currency and aKeynesian system as we humanly possiblycan so either it either wedefault or inflate I guess that's reallythe only two options or as you suggestburn the whole thing down yes and startover with the CBD it's a Monopoly boardand throw it up in the air and startover new game and that isthe conclusion that I came up with onlyby connecting these dots and saying whywould people go along with it why wouldpeople that havea lot at stake in the current monetarysystem not pushed back on this thebillionaires why do you see recordwithdrawals off the comex and the lbmawhere the lbma is losing not only itsbase Metals but all its precious metalswhere the comex is at the lowest levelof of inventory in terms of what theyhave in the registered category maybeever close to it but a massive drawdownwhy are we seeing the central banks buymore gold than at any time in the last55 years the people who have who areclosest to the the information and havethe most moneywell they're making an exodus quietlyyou know why do we see uh uh IndiaImport 400 million ounces of silver andthe mainstream isn't talking about itthese countries not only are and andplayers wealthy family offices sevenwealth funds they're not justaccumulating the metal they'rewithdrawing it off of the exchangessilver and gold yes and where it loses agood deal of its industrial liquidity ifyou want to have metal as an investmentyou leave it in the Comax Warehouse isbecause you have industrial liquiditywhere Elon musk's has outpaid 50 premiumfor every ounce of silver people want tosell no this stuff is being shippedoutside the exchanges it's a very bigdeal so to your point just like in 1933when gold was confiscated so much of itthe Insiders shipped their gold to thesafe deposit boxes by steamship ofSwitzerland before FDR confiscated goldmaybe these people who are draining theexchanges in a precipitous way for thelast three yearsour front running one is coming and somost people in this country 60 of themor so are living paycheck to paycheckthey can't even write out a check forfive thousand dollars so they'll behappy to be given stimulus and handoutsattached to a new Central Bank digitalcards and of course with the CentralBank digital currency which isprogrammable you just click in everybodyautomatically gets what they need that'srightso break down the relationship betweenthe cbdc's well firstly is it one cbdcrepresenting the bricks backed byCommodities and then how do the othercountries come in with their versions ofcbdc's so uh I think ultimately it willbe one a lot of the countries oneuniversal yes for the cbdc but right nowthey're all creating their own and theChinese built something called thembridge as in Mary M Bridge which is across-border payment system for CentralBank digital currencies and they didthis with United Arab Emirates and oneother company Singapore country maybeSingaporeI forgot the third country but it'sirrelevant the point is is that thisallowscross-border uh payments sidesteppingthe Swift system in Central Bank digitalcurrencies that's the bridge if you willto a common currency but they are allde-dollarizing they are all moving awayfrom the dollar as sole settlementturkey just created their own turkeyalso imported more gold than any countryin the world last year and they justapplied for bricks so they're all doingit little by little by little they askedumErnest Hemingway I believe how did yougo broke little by little by little thenall at once and I think that's what'shappening slowly it's a chess game andthey're moving the pieces and then theysay Checkmate but not until they're allin position so to your point earlieryour question timing don't know butwatch how the chess pieces keep so howdoes gold play into this role if you ifyou're backed by Commodities youeliminate the option of printing whichtakes away a lot of power for thecentral banks themselves absolutely asthey've been able to do for their owncountries but I get that they would needto do this to have legitimacy on theglobal stage so they would have to Iguess sacrifice the ability to printmoney in order to be seen legitimate onthe world I think they would do it intwo ways they would not allow it to beconvertible because de Gaulle fromFrance proved that convertiblecurrencies convert and they wouldfractionalize it maybe 20 percent ofevery new brics currency is pegged togold or to a commodity that has shownthe veracity of the immutability ofwhich is shown on their distributedledger so I don't think it would be aone-to-one pegging that would still givethem the latitude to enact monetarypolicy but I think gold would be theanchorinstead of being able to let them printunabated it would allow them at least torun monetary policy with some tether toPrudence so let's assume we've listenedto you and we've bought some goldourselveslet's assume it's 20 30 which is thetimeline of the world economic Forumwhich is only seven years away right andwe've got Central Bank digitalcurrencies which to me are veryterrifying because every singletransaction can be seen by thegovernment every single time you spendpay for something zero privacy zeroanonymity and perhaps more concerninglythe ability to program when and what youcan spend on but let's assume we'rethere but I've listened to Andy and I'vebought some gold and I have my gold barsand gold coins and silver coins safelyhidden awayhow would I practically be able to usethat to my benefit in this world becauseI think it allows you safety when thesystem collapses so look if a cbdc rollsout and we all have no choice but to useit either you use it or you're in aBlack Market but what it does is itgives you options when others have noneandum you know that's why guys like JimRickards and Jim Sinclair say gold willreach crazy levels ten thousand an ouncebecause it'll be pegged to a new systemso not only does it allow younot just to survive maybe even Thrivemaybe this is why the biggest money inthe world is drawing down the suppliesof all of these exchanges before itbecomes obvious that's their life raftbut it'll be options and what what maybeyou have to sell it and go into the newcbdc when you decide to do itwe have to play with within the gamethat you know the rules that are areafforded to us but I think it gives youoptions when others have them so itwould allow me to preserve my wealth yesand then I would need to convert it Isuppose into cbdc's in order to tofunction correct or faster I guess intheory but or perhaps have a side systemwhere people are dealing well you neverknow I guess it depends how the cbdcgoes over where where do you seesomething like Bitcoin play into thisbecause we've had people who are sayingthe same narrativebut instead of gold they have Bitcoin asas the awesomeyou know I'm not a Bitcoin Basher butI'm I I look at gold as it's it's livedthrough two world wars Germanhyperinflation the Great Depression andevery pandemic and it's still immutablewealth what is the only asset everyCentral Bank owns gold and I think thatthere are some that own Bitcoin not allof them well on that point I mean Canadacorrect me if I'm wrong where wecurrently are has sold off the majorityof its gold and then so did in the Bankof England I mean Canada practicallyNoble stupid well maybe they think it'sthe gold in the ground maybe at thatpoint they nationalize it I don't knowit makes zero sense really does but youknow again that was a trend that washappeningfor quite some time I think if I'm notmistaken they just bought some gold forthe first time not mistaken they justbought some in 2022 now I'm not positiveon that but I'm pretty sure I'm rightpoint of it is is thatum I think there will come a realizationthat you know interest-bearing Assets inthis environment isn't the mostimportant thing and you would think acountry like Canada would rise up theycertainly have a lot of it in the groundsome of the most in the world so maybethat will be their their answer to thisas we nationalize the minds and don'tallow any of it to leave leave thecountry don't know right but it's a goodpoint yeah it's you bring up a lot ofgood points thank you it's a scary worldyou're you're painting here Andyagainis there a mastermind is thisorchestrated by someone or is this justhow things develop and certain playersare positioning themselves to takeadvantage of it are there evercoincidences I don't know I would likethe scariest part of it all Michelle isare there is there a mastermind behindit if it is it makes it much morefrightening because it is orchestratedit is thought out it is planned outumand maybe it's a combination of bothmaybe it's circumstances that have comeinto play that are now being takenadvantage of to paint the narrative or apicture that they want and who was theyI don't know they are the ones that arepulling the strings uh the FederalReserve the the big moneyum the world economic Forum maybe theyhave more clout and more pull than wethink but anyways I think might be acombination of both if I had to reallyguess I would say that this is thoughtoutand it all comes down to the fact thatif you don't see the consequences ofweaponizing the world Reserve currencyon a world stage when 85 percent of theworld is still trading with Russia theneither you're you're really stupid or oryou're you're really you see what you'redoing and you know the outcome are youthe stupid or arrogant or an artistrightso with thatis there anything that derails this isthere anything that happensanything at all even if it's even ifthis war escalating into a nuclearcrisis I mean what what derails thistrack from happeningmaybe the U.S comes out and beats thebricks to the punch and issues a goldback cbdc right away and has showshere's all the gold that we said that wehad the 8 300 metric tons that hasn'tbeen audited since 1956 and here it isand we are now connected it to a centralbank digital Ledger for everyone to seeand here's our new gold-backed currencyand maybe it allows us to pull ourselvesup from our bootstraps and we don't seethe world dumping dollars maybe I meanthat that certainly would be a step inthe right directionbecause I think there comes a time whereyou knowwhere you just keep drinking the waterdown milk and pretty soon it's not milkanymore and and I think we're at thatpoint so to me that would be the oneplace that we could so the U.S getsahead of the current realizes it needsto do a reset anyway right wipes a slateclean but comes out with hey we have ourown cbdc digital doll effect coin backedby gold so use this for the new systembut let's just forget about all thatdebt in conjunction with theinternational monetary fund yeah whichis 150 countries from around the worldwho all join on board but what I'mhearing that either way is that a cbdcdigital money programmable on theblockchain is inevitable and I thinkit's less to do with the Privacy aspector certainly the government like saidand more to do with monetary policy theway money is created right now by beinglent into existence by a commercial banksystem that doesn't want to lend moneyinto this economy where two trilliondollars is in the overnight repo Marketwhere the the FDIC systemic resolutionboard publicly in November has a videothat's now out saying that you knowmaybe we shouldn't tell the the thecountry that there's going to be a runon the banks because of the unintendedconsequences and maybe we don't want thepublic to know that they have moreconfidence in the banking system thanthe people in this room do so when yousee all of these things coming togetheryou know you have to wonder where doesit lead I don't know Michelle and Idon't for you know profess to be asoothsayer or a prophet just simplylooking at all the pieces and saying ifI were over there and I had something asprecious as oil I don't think I'd wantto sell it for dollars and treasures anylonger you know on the FDIC comment wehad Lynette Zhang on who broke down howDodd-Frank actually allows for bail-inswhere the banks can take deposit themoney of depositors and bail themselvesout and that's legal that's their andthat was that meeting that you weretalking about that they just don't wantto tell people even though it's therepeople just need to to pay attention andwatch absolutely well Andy you'vecertainly been paying attentionso what is the recourse of action for anindividualdo what the big money is doing removecounterparty risk and de-dollarizemitigate your exposure to the dollarlook my friend Rick rule says it best ifyou're not a contrarian you're going tobe a victim I think this is a time to toembrace that and to um truly diversifyoutside the dollar when people talkabout a diversified portfolio all of itcomes back to the dollar and I thinkhaving something outside the systemlooking with the biggest money in theworld is doing not just big money butsophisticated because when you'repulling that much money off of comex andthe lbma you're sophisticated too followwhat they're doing and I think that'sthe best thing you can do and that iswhat take possession of metal buy goldand silver take possession of it look atit as wealth it's not an investment it'swealth and I think if you own enough ofit you'll be wealthy but I tell peopleto own metals because it is wealthoutside the system and outside A systemthat may be coming to its end stages andand that's really I think all you can dobecause if interest rates do Spike theway that I think there will be very fewplaces in fact as as my mentor in manyrespects Richard Russell said in a verybad bear Market he or she who losesleast wins and I think that's what thisis all about losing least puttingyourself in a position to at leastretain what we've worked so hard to toaccumulate all these yearswell Andy I hope you're wrongso do I it's been enlightening but Icertainly hope you're wrong Michelle Iappreciate uh your pushback you askedsome great questions and raised somegreat points that I'll give a lot ofthought to and they're all valid but Ihope I'm wrong too I really dounfortunately I think it's growing alittle bit more and more and more likesome of what I'm saying if not all righthas a chance of happening I'm not sayingI think you're wrong I'm just saying Ihope you yeah I I I'm right there withyou all right well Andy thank you somuch appreciate it thanks for joining ushere on Kitco thank you Michellegetco News special coverage of theVancouver resource investment conferenceis brought to you by first mining goldforeign[Music]