This chart was predicting greater than $9,000 an ounce,
but now that seems like an absurdly low price.
Okay, hi, I'm Mike Maloney.
I'm the author of the two best-selling books
on investing in precious metals,
and I have a gigantic presentation and not enough time.
So Dan here, my producer-director,
was trying to get me to just cut this down to a few frames,
but you'll see it's pretty much impossible
and so that I could relax and not have to talk so fast.
But my presentation is Protect, Profit, and Prosper
during Chaos, Crisis, and Catastrophe.
I do believe that there is a giant correction coming up,
correction, crash coming up.
And so most of these presentations are laid out
as problem, solution, and benefit.
And this is basically the problems.
The problems are that the financial markets are currently...
You know, I did a presentation in November of last year
at Rebel Capitalists Live,
and I took a lot of the important charts
that show that we are in hyperbubbles from my book,
and those charts are from October of 2022.
And so in this presentation,
I've updated just a few of the select charts
that show how massive these bubbles are right now.
And with every financial correction or crash,
there is an opportunity.
There is always an opportunity.
In fact, I'd argue if you position yourself right
that the opportunity is such that you can make
a whole lot more in a much shorter period of time
than you can with traditional investments.
And these crashes, when these bubbles pop,
these super hyperbubbles,
it's going to lead to a very bad economy.
There will be high unemployment and high rates of homelessness,
and it will probably lead to what I call
financial crisis 2.0.
Why is it 2.0?
Because if you think that the global financial crisis of 2008
was bad, this is going to be more than twice as bad.
And that will lead to political unrest,
and it'll probably be global.
You know, we've seen rioting,
and yet the economy is supposed to be doing well.
That political unrest, what happens?
What do leaders of countries do?
What do the politicians do when there are things
like crashes and a lousy economy,
high unemployment, high homelessness?
Do they raise their hand and they go,
it was me, I did it, it's all my fault, no.
They usually create a distraction,
and throughout much of history,
that distraction has been war.
And you can sort of, you can smell it,
you can feel it right now.
We are like getting sucked into these wars
in the Middle East and the Ukraine,
and this is a very, very dangerous period of time right now.
And so I want you to remember this,
the bubble century and then the saying,
the higher the cliff, the bigger the fall.
And so my first data here,
this is the only way that you can measure the stock market
that shows that it's not in the,
currently in the greatest bubble in history.
We're right there, right now,
so we're in the third largest bubble in history,
but the valuations of stocks are much higher than 1929.
This is the price earnings ratio.
So it's how many times the earnings per share per year
that you're going to pay for it.
It used to be that fair value was considered 12 or 15 times earnings.
That was fair value for stocks.
Now this is the S&P 500, so it's all average,
it's a broad average of the stock market,
but notice that red line.
That used to be considered fair value.
And actually this indicator,
this is Robert Schiller's data, it goes back to 1881.
And so fair value was very well established
and then everything went insane
and we are in the bubble century.
This is where the global financial crisis started.
It started at much lower levels than we're at today.
And undervalued is down under seven.
So what would happen if we had a crash
that took us down to undervalued where it always went before?
I do believe that with the next big crash
we've got all these people on the verge of retirement
and they're relying on their investments in their savings.
And when you see people losing 50, 60, 70, 80,
some will lose 90% of what they're counting on for retirement,
that they're going to be very risk averse after that
and they're going to shy away from the stock markets.
That's what causes undervaluation
is when people shy away from this investment.
But PE ratios are the only way that you can measure it
that doesn't show it at historically overvalued levels.
Nothing like this has ever happened.
This is the Buffett indicator.
So it's the value of...
It's basically what is the dollar value
of all the publicly traded stocks put together
divided by the entire economic output
of the United States of America
and currently the stock market is twice.
The value of it is double,
the entire economic output of the United States.
And there was a fair value range.
I'll show you that in the next chart.
But 50 to 70% is fair value.
And what you see is the markets went down into fair value in 2008
but then Ben Bernanke in response to the global financial crisis
created so much currency
and the way that currency is created,
it has to be directed into the financial markets
when the Federal Reserve is creating currency.
It goes directly into the financial markets
and then Jerome Powell with his response to COVID
has pushed this into a bubble
that we have never experienced before.
This is the first time in history
that we've been to this level of overvaluation.
So that was the crash of 2008
that wiped out a lot of people.
A lot of people were hurt in that.
Look at the scale of the potential crash
if we go to the undervalued area.
This will dwarf 2008.
This is proof that that Buffett indicator is correct.
My researchers had to really dig deep for this one.
One of them searched the internet
and it was like a month for him to find this paper
by Dmitry Kufchenov and Kaspar Zimmerman,
two economists in Europe,
that measured 17 advanced economies
and created a Buffett indicator for the world
going all the way back to 1870.
What it shows is that there was an equilibrium
with the stock market and the economy.
The price levels of everything else in society
and then in the late 90s everybody went insane
and started paying these multiples for stocks
that were just insane.
This data ends in 2016.
If I was to update this chart right now
it would go right off the top of the scale.
This is the number of work hours.
This is automatically inflation adjusting.
The number of work hours it takes to buy one share
of the S&P 500.
The average used to be 23 worker hours.
Today it's 123.
This one goes back to 1860.
The Civil War started in 1861.
This is very, very reliable data
and you're looking at it from a whole bunch
of different directions now
and so when they all corroborate each other like this
what you've got is pretty much a slam dunk proof
that this is true.
The markets are incredibly overvalued
and for some reason people connect the economy
with the stock market now.
If the stock market is doing good
they think the economy is doing good.
It should be the other way around
but it's not.
Now, most of you are real estate investors
and this is Dr. Robert Schiller's data on real estate.
Now I've been presenting this data since 2004.
So in 2005, 2006, and 2007
I was with Robert Kiyosaki
and he was taking me around the world.
He likes people that disagree with him.
I was presenting this information
and I was saying real estate is going to have
an enormous correction soon
and you have to get prepared for it
and most of the people ignored what I had to say
because it'd go on for another year
and there was no correction and then another year
and then when it finally,
when I was finally proven to be right
a whole lot of those people were broke
real estate fell by about 50%
and during that time from in 2008
gold bottomed it under $800
and by 2011 it was $1,900
so it had almost tripled at the same time
that real estate fell by about half.
This is proof that the whole system
is crumbling right now.
The whole financial system, the monetary system
is broken and you don't have
I believe that we don't have a whole lot of time left.
What we've got here is bank reserves.
There is a separate monetary system that the banks use
that's not part of the monetary system that we experience.
Every member bank of the Federal Reserve system
has a checking account at the Federal Reserve
that's called bank reserves
and at the end of the day they all do settlement
they pay each other and borrow from each other and so on
and so the bank reserves
it only took 40 to 50 billion of bank reserves
to make the financial system run smoothly for decades
that's all they required.
That's the upper left.
The upper right is the interest paid on reserves
and there was no interest rate until 2008
so it's at zero.
Then Ben Bernanke when he did QE
he created a whole bunch of currency
a whole bunch of bank reserves
and to keep that from leaking out of the banks
and causing inflation
he decided to pay interest on them
but when one man has the arrogance
to think he knows so much
that he can like fix the economy
with just his ideas
that comes back to bite you
because there's always unintended consequences
and he won the Nobel Prize for this stuff
and we are about to suffer the unintended consequences.
The Federal Reserve buys financial assets
that have to be guaranteed as to the principle
and interest by the United States government
that's part of the Federal Reserve Act
so they're pretty much handcuffed
to just buying U.S. Treasuries
and mortgage-backed securities
and they have to buy them through a network
of what are called primary dealers
the biggest brokerage houses on earth
there are always between 18 and 30 of them
but if you watch this
the Federal Reserve makes a profit
I don't have data before 2011
on the payments to the Treasury
but at the end of every week
the Federal Reserve is supposed to deduct their expenses
and then they pay all of their member banks
the stockholders in the Federal Reserve
a 6% dividend
whatever is left over goes to the U.S. Treasury
the U.S. Treasury puts it into the general fund
and that lowers the deficit that week
if they don't get that payment
they then have to issue more U.S. Treasury bonds, bills
or notes that week
and put us further into debt
and then what nobody has done
and I'm really surprised because
we came up with this and it's in my book
and it's in a free chapter online
that you can download
and you can email it to anybody
but no financial analyst or economist has done this
you take the number of bank reserves
times the interest rate they're paying
and you get the amount that Ben Bernanke
typed into existence
and gave to the biggest brokerage houses on earth
actually it's their banks
their division all of the brokerage houses
have a bank that's connected with it
and so I'm going to start playing this now
and you'll see them all going live
at the same time
and so the bank reserves are pretty constant
and then when 2008 comes on
you'll see interest rates go up
there's now an interest rate
there wasn't before
and you see that there's a few billion here
that were paid to the banks
and nothing yet on the payments to the Treasury
because that data doesn't exist
but this all, all of these payments
came out of your pocket
so now we're continuing
and we've had QE1, QE2, QE3
and you see the payments to the Treasury
reducing the deficit
so they don't have to indent you
more in the future with the national debt
and then this stops again
in March of 2022
you'll notice that as the interest rate goes up
those payments go down
and then the interest rate's going to come down
the payments will start going up
and the amount of bank reserves
when Jerome Powell
when COVID happened
and the pandemic
he made Ben Bernanke look like a little piker
that you know his response to it
with the amount of currency creation
in such a short period of time
but the interest rates are low
when the interest rates are low
those payments to the biggest banks
and brokerage houses in the world
sort of go flat
but then in March of 2022
he started raising rates
at the fastest pace in history
and you'll see what happens next
so the banks here
I think that says $157 billion
that they had been paid thus far
and there's still payments to the Treasury going on
however they're lower than they would have been
every week some of it is going over to the banks
but watch what happens starting in March
and then in September
the Federal Reserve went bankrupt
they are broke
and they cannot pay the Treasury
so you'll see what they owe the Treasury
and you're going to see where it went
and it all came out of your pocket
now they go broke
they currently owe the Treasury
close to $200 billion
and when you add that $200 billion
to the amount that
they didn't pay the Treasury
each week before that
that they were paying the banks
the total is that you have been billed
almost half a trillion dollars
and whenever the interest rate goes up
it literally rains a deluge of free currency
on the biggest banks and brokerage houses in the world
and you paid for it
because those Treasury bonds, bills and notes
that were issued to make up for this
are going to be paid for out of your taxes
so if you pay taxes
this gift that Ben Bernanke made
to the biggest banks on earth
came out of your pocket
this is a chart that shows that
basically I said this at George Gammon's
Rebel Capitalists Live
we're screwed
when we go a dollar deeper in debt
that's that red line
when the US borrows a dollar
and the national debt goes up by one dollar
what do we get back?
well after World War II in the 1950s
they would borrow a dollar
and we'd get somewhere between six and eight dollars
worth of GDP growth
and this is where politicians have been sort of trained
that they can borrow and spend their way to prosperity
that we can borrow ourselves out of a hole
because it used to be true
but as we built up more and more debt
this has gone down and down and down
and then when Ben Bernanke introduced what I call
Bernanke economics
when he changed the fundamental economics
of how the US monetary system
and thus the world monetary system works
this went negative in 2008
and it's been negative ever since
and today this was updated just recently
and today when we borrow a dollar
we get 50 cents worth of GDP growth
and so when all of the politicians do
this amazing deficit spending that they are doing
and currently we spend about 35% more than our income
every single month
and all they do is they dig a deeper hole for us
and one day the walls of that pit that we are in
are going to start collapsing
but that creates a big opportunity
so will we have a stock market crash?
I'm almost certain of it
that headline bloodbath is probably quite appropriate
will it lead to higher unemployment
and higher homelessness rates?
I can almost guarantee it
I mean I really think
that this is lying out there in the future
and I don't think we have a whole lot of time
will it lead to social unrest?
Yes, we've already got rioting
what's going to happen when the economy gets really bad
high unemployment and high homelessness
is you're going to have a lot more conflicts going on
around the world so we're heading in
to a period of extreme chaos
now the distraction throughout history
has been to get involved in war
are we going to? I believe so
because I mean you can smell it right now
we're right on the brink of it
we're being sucked in to two wars globally right now
and that is so that the politicians can say
well it's not my fault you've got to be patriotic
and you've got to support this war
so you've got to support me
and it's just a distraction
but where does all of this pain
and suffering and death
end? Once this starts
the emotions build
and you just want to get back at the other guy
and so to keep this from escalating
there's no politician talking about peace
they're all trying to outmaneuver each other
and so how do we keep this
contained? How do we keep it from escalating?
History proves that this is a very difficult
thing to accomplish
and what's the worst
outcome possible?
For the first time
I mean back in the Cuban Missile Crisis
this was a possible outcome
and right now
we are just so we're always
like minutes away from
World War III now
with the Ukraine conflict especially
and so once this
gets going how do you keep it
from running away and will they
so you have to sort of
I'm
I'm preparing for the worst
but planning for the best actually
because there is an opportunity in this
and I do believe that if we can get through
just the next five years
that between AI
artificial intelligence and robotics
that we have an incredibly bright future
in front of us
that all of
the economics, the monetary system
everything that we've been
depending on is going to be
pretty much irrelevant
and we're going to see levels of prosperity
that we just can't even imagine right now
or
I think it's a binary outcome
or we end up dealing with
a future like this
and that will plunge us
into a dark ages
with the way how intricate
supply chains are
and the monetary system
and then everything connected to that
even the education system
I just think that
Elon Musk has warned about
the possibility of a future dark age
so chaos plus
crisis
equals catastrophe but I want to show
you how I'm trying to turn it
into my opportunity
and this is the great precious metals
bull market of the 70s
I've turned it into a horse race
and the number
four horse there is the stock market
if you had bet a buck
on
August 15th, 1971
when gold became free trading
on that day and then this race
ends January 1980
when gold and silver peaked
if you had bet on the stock market
your return would have been a buck
40 so you bet a buck
you got a buck 40 back but was it the same
dollar? we had double digit
just raging inflation during the 70s
actually that buck 40
would only buy 30 cents
worth of goods and services
if you had spent the original
dollar back in 1971
the buck 40
only bought 30 cents
so the actual purchasing power
went down by 70%
real estate didn't fare that
much better you bet a buck
you got $2.30 back
but it still didn't keep ahead of inflation
gold you bet a buck
you got $25.10 back
silver
$41.30
from a single buck to that date
that was the greatest bull market in history
only to be eclipsed by cryptos
what was the world like in 1970
who drove the price of gold
from $35 to $873
that was the actual
peak in 1980
well up until
the first day of 1975
it was only Canada and western Europe
it was illegal in the United States
in Australia
first day of 75 it became legal
in the United States
76 Australia
back then news traveled really slowly
you'd turn on that old vacuum tube
TV set on and
Walter Cronkite would tell you the price of
gold but you were using
yesterday's news that was
7.30 in the evening after the markets are closed
or you could pick up the evening
paper and get
yesterday's news basically
or you could turn into the one
and only financial
program being
made back then wall street week
with Louis Rue Kaiser on
PBS Friday night
after the weeks trading was done
and you had to wait until Monday
to take action on it
and if you wanted to buy gold
you picked up your phone
to call your broker
he would call Chicago if it was the
commodity if it was gold stocks
he'd call New York and tell
that office and then they had to
get a message to the floor trader
and you would be lucky if that trade
got in on the same day
today it's only North Korea
where it's illegal so the number
of people and the number of exchanges
and markets around the planet
it truly is global
you know back in the 70's
most of the rest of the world
the Mexico
South America, the Caribbean
Africa, Southeast Asia
there were all these commercials on TV
to raise funds to save all of these
starving children in all of these
countries the famines that were going
on back in the 70's
and 80's it was really global
so nobody there could afford
to buy gold
today we've got all of these
financial news channels this is just
a tiny little sample of where you
can get financial news
let alone the tens of thousands
of like I've got
a financial channel on YouTube
I've got 120 million
views and 3 quarters of a million
followers
but then there's X.com
and Facebook and
all of the so it's
24-7-365
and then
you can get onto your laptop
or check the price of
gold on your cell phone
and you can buy gold
while you're crossing the Sahara
on your camel today
so this frame
I forgot to take out I'm sorry
today
the number of billionaires
on the planet there are more than
600 billionaires in the US
and in China
the green countries it's
50 to 599
and the blue countries there are
countries in Africa today
where everybody was starving to death
back in the 80's now that have
10 billionaires in that country
according to the OECD
there's 55 times more
currency on the planet
we keep on creating currency
there is 16 trillion dollars
in the United States
alone
sitting on the sidelines
waiting to go somewhere
and I believe that
when there's a crisis
people seek safe havens
they have been taught
to seek US treasuries
normally
but the US treasury is starting
to become suspect
are you going to be paid back
if you loan your currency
to the United States government
for 5, 10
20, 30 years
people are starting
to realize our levels of
debt to GDP
and the population demographics
sort of say that no
you're not going to get paid back
there are now 18 times more people
who can buy 55 times more
currency
56 times more millionaires
200 times more billionaires
and 220 times more
available consumer credit
than in January of 1980
when gold peaked
now silver
it's still
it's a little more than half
of it's 1980 high
name something else
that's still selling at a discount
to it's 1980 price
okay
it advanced two frames
accidentally
I had my
chart guru
Adam Alan Hibbard
create a chart where he lined up
the S&P 500
and gold on the day that gold
bottomed from it's 1980
high to today what was the lowest price
and the performance
of the S&P it's up almost
300% but gold
is up almost 900%
why would anybody take
all the risk that is involved
you know gold is an asset
you can hold in your hand
and it requires no
counterparty to make it good
if you were in stocks
and your brokerage house was
Lehman Brothers what happened
in 2008 to your portfolio
it vanished
it requires the performance
of a counterparty
gold does not
there's something called
Elliott wave analysis
I had Alan line up
on the day that gold bottom
the previous bull market
in gold the 70's bull market
that's the blue scale
and the blue line
with today's bull market
that started in 1999
the orange scale
and the yellow line
and when we did that
I had him then squeeze
today's bull market in time
and in magnitude
and when the two peaks
it's called Elliott wave
where markets will go up
in a 1, 2, 3 pattern
or they'll go up in 5 waves
and when we saw this we went
oh my god this is greater
than a 0.97 correlation
meaning that is more than
97% the same
it was echoes of the past
but this was for my book
so the chart was done
in October of 22
where has it gone since
today and what happened
there's a divergence there
why? well we had the pandemic
and then we had massive currency
creation and then massive
inflation and gold sort of
yawned and went sideways
well I believe that that is
just storing energy
it is storing the energy of all
of that inflation and currency
creation and with the next crisis
it is going to explode
and that energy will cause it
to go right off the top of this chart
this chart was predicting
greater than $9,000 an ounce
but now that seems like
an absurdly low price
when you measure the quantity
of gold that we have against the expansion
of the currency supply against prices
in fact in
1999 gold was $250
now it is $2,500
the gold didn't change
the dollar lost 90%
of its purchasing power against gold
and you just have to ask yourself
do you think
the dollar is going to gain value against
things do you think prices are going to go down
or are they going to
will the government
in the Federal Reserve get a hold of themselves
and stop creating
massive amounts of currency
and so if you want to know more about it
go to ggsr21.com
and there you can there's these
online chapters
read those
download them
send them to anyone you want
it's free and we don't even ask for your
email address
this is something that you can do right now
chapter 3 is the easiest chapter to read
and it will benefit you for the rest of your life
it's real simple
and it's about how somebody that
creates a chart can create that chart
to lie to you
or skew your perception
chapter 4 is the hardest
if you want to understand how currency
is created
and how the global economy works
and how the world's central banks
and the banks enslave you
and constantly
suck what I call economic energy out of you
suck wealth out of you
chapter 4 is the chapter
it's not an easy chapter
it's written in 7 parts
but
go to ggsr21.com
and goldsilver.com
there is a wealth of information
on both websites
so problem solution
benefit
and hopefully
I just helped you change that to problem solution
jackpot
so the 5Gs
Robert Kiyosaki
took me around the world from 2004
to 2010
speaking to audiences all over
and he likes people that disagree
with him
and I got the nickname
the angel of death
back then because
I would sort of depress the audience
with my information but you know
I was showing them real estate was going into a bubble
the stock market is going into a bubble
you got to get prepared
and then the global financial crisis of 2008
well we're at that point right now
but as you've just seen
it's much bigger than before
Robert would talk about how to become
super resilient and that is the 5Gs
you have ground, grub, gas
guns and gold
well I've already got the gold
but I'll show you what I'm doing
to get prepared
I'm making a bet on the upside
and a bet on the downside
so I'm preparing for the worst
but planning for the best
simultaneously
so that wraps up the first part
of my presentation at the Limitless Expo
in Dallas, Texas
in the coming weeks I'm going to show you
how I'm preparing for the worst
but hoping for the best
with the rest of this presentation
and an update on the farm
so if you got anything from this video
please like and subscribe
and we'll see you next time