Lynette Zang Lays Out the Full Plan: How the ‘Genius Act’ Ends the Dollar | Kitco News
Summary
Historical Context: Lynette Zang highlights the historical precedent of government gold confiscation, suggesting a similar globally coordinated effort could occur in future crises.
Market Outlook: The current market is described as chaotic, with conflicting signals such as rate cuts by the Federal Reserve, sticky inflation, and a softening labor market.
Economic Disparity: Zang emphasizes the growing income and wealth inequality, likening the situation to "Nero playing the fiddle while Rome was burning," and warns of a personal depression for many despite official economic narratives.
Currency Life Cycle: The discussion touches on the end of the current currency life cycle, with Zang expressing concern over the potential for hyperinflation driven by stable coins and the Genius Act.
Investment Strategy: Zang advocates for investing in physical gold and silver to protect purchasing power, criticizing the manipulation of paper markets and emphasizing the importance of tangible assets.
Geopolitical Dynamics: The divergence between the West's focus on digital assets and the East's accumulation of physical gold is highlighted as a new front in global currency wars.
Systemic Risks: Concerns are raised about the fragility of the US Treasury market and the potential for a significant financial crisis, exacerbated by the reliance on derivatives and the evaporation of traditional buyers.
Central Bank Actions: The unprecedented actions of central banks, including the Federal Reserve's losses and the accumulation of gold by global central banks, are discussed as indicators of systemic stress.
Transcript
Back in 33, 1933, obviously Washington confiscated that private gold, $20 an ounce and revalued it to 35, kind of robbing the public with the 36 trillion or 37 now in debt that we talk about in central banks again hoarding gold. Do you think governments will try to do something similar in the next crisis? >> 100%. There isn't even one teeny weeny doubt in my mind because there over 4,800 currencies that have done this. And I don't think this time is different. But I do think that this time it will be a globally coordinated effort because when one country does it, it would be like a domino impact anyway. And we certainly saw since 2008 how central banks can coordinate and work with each other. [Music] Hey everyone, welcome back. I'm Jeremy Sappern. Now the market is facing a puzzle that conventional analysis is struggling to solve. On one hand, the Federal Reserve has opened the door to rate cuts, sparking a rally on Wall Street. Yet lingering doubts remain and policy makers themselves admit that they face a quote challenging situation with sticky inflation and a softening labor market. Now on the other hand, we see positive headlines like new home sales jumping in July. But the strength was driven by heavy builder incentives and easing prices, not organic demand. And this comes as consumer credit card delinquencies are rising at the fastest pace ever recorded. These are chaotic signals of a system under stress. And our guest today has built a five decade career analyzing these exact patterns. She's a former banker and stock broker who's been studying currency lifestyle life cycles since 1987. Now, when she was last with us in January, she laid out a specific framework for 2025. And she was pretty darn close. And today, we'll use that framework to make sense of what these headlines are. Let's welcome Lynette Zang, founder of Zang Enterprises. I hope you've been having a great summer down there in Arizona. Nice to see you. >> Well, it's good to see you, too, Jeremy. Thank you for having me on. It's a little hot here, but you know, I've been here for a long time, so I'm kind of used to it. >> You're used to it. You're used to it. Well, uh, let's talk a little bit about this official story versus the on the ground reality. I mean, there's a credibility gap, and you and I have discussed this before. We have that dovish Fed, strong housing headlines, but deeply stressed consumers. When do you see these conflicting signals? How does it fit into the historical lifestyle or life cycle pattern that you've studied for over 30 years here, Lynette? >> Yeah, it's true. And that's really why the things that we would have expected the normal setup inside of the system. Everybody's going, "Wow, that's never happened before." Well, actually, yes, it has. These are all indications that we are at the end of this experiment. And frankly, it should be obvious to everybody that we are shifting into a new system. >> Yeah. Yeah. Well, in our last conversation, I mean, you said that there's this quote huge humanitarian crisis that's already happening and that was with people using installment payments for groceries and and now we've seen those consumer stress indicators continue to kind of worsen all year. is the most significant disconnect that while Wall Street and and Washington debate recession probabilities, a large part of the population is already living in a personal depression. >> Well, I don't know if that's the greatest piece, but it's certainly a huge one. And it's kind of like a Nero playing the fiddle while Rome was burning. And I really think that that's the kind of thing that we are absolutely seeing now. Um though it's been coming for a long time. I mean these things don't happen boom overnight. We've been watching that income wealth and wealth inequality expand really since the early8s as the pure debtbased system kicked off and that's what we're seeing now too. Also it's the level of speculation. You know, when you have meme stocks being 10% of the volume on an exchange, it's all about speculation. >> Yeah, it's almost >> and that is definitely an indication. >> It's a little bit scary, a little bit frightening. Of course, we saw a little bit of profit taking on the the general markets today and with this new data, but of course, maybe it's going to be revised. I mean, when we spoke in January, you highlighted the constant revisions to data from the Fed, and we've seen those significant downward revisions to jobs, GDP all year long. How does this political battle over the data fit into historical pattern of a currency's life cycle? Well, you know, it gets very invisible and especially we know that doge that Doge went in in early part of the year and just sliced just sliced and diced a lot of those individuals that would actually be gathering and analyzing the data. So, as bad as it was before, quite honestly, now we are flying absolutely blind. absolutely blind. You don't like what the report comes out. Well, let let's just fire someone cuz it's their fault. >> Well, I mean, how can you make an educated choice when you have no good information to work with? So, this is really all an indication of the end of this currency's life cycle. And what most people don't realize, and Jeremy, this is the thing that has me seriously the most concerned, is that when President Trump signed the Genius Act, he changed the global monetary system and I believe so you can mark write this down and we'll talk about it in a few more months again, but there's really not one doubt in my mind, but that the stable coins and you always have to be careful of how things are named. named because it's usually just the opposite. But the uh stable coins will be the mechanism that will usher in and actually create the hyperinflation that we need to do the ultimate shift into the new system. But that's that's happened already. So I'm really nervous about that. >> I'm a little bit nervous uh about but we this is good because for the audience it's going to make us go they're going to stay with us longer because we're going to bring that up. the Genius Act, CBDC's, you know, the stable coin conversation. I want to get really really into that uh maybe towards the middle of the interview just so that we can keep a cliffhanger for him. But let's continue to talk about that war on data for a second because I mean the new administration has now fired the head of the BLS and installed EJ Anthony. He's a economist who for years has spent publicly stating the government's official inflation and jobs numbers are fundamentally flawed. And I should say full disclosure, he's been a guest here on my show as well. Uh, how significant is this unprecedented political move? >> Oh, wow. I I mean, quite honestly, it's like you're driving over a cliff and they put this pretty picture in front of the cliff and you're not going to know when you hit it. >> You are not going to know. It's going to happen just that fast. So, I think it's huge. And it goes to my very favorite question, which is how many times can you be lied to when you do not know the truth? And obviously the answer is every time. But this goes more than just this takes it more than just the lie because we are flying blind. It It's like you're in this huge airplane and the plane is coming down, but you cannot see where that mountain is, where that ground is, when you're going to hit, how you're going to hit. You have blindfolders on as you're as you're flying this ginormous plane. And those that are sitting in the back, they have no idea how close we are to hitting. And and those that are driving it, they have no idea either. It it scares the Hades out of me. I'm not gonna lie. It's very scary. >> I you know I do I went back and looked at our January interview over Vick and and you know one of the things that you did say in the quotes that I have is that exactly that. I mean you said that you didn't think the truth would indeed come out because if it did people would start to make different choices. I mean with critics now having more influence over the official numbers is the truth about to come out and what different choices do you expect the public to make if it does? I don't expect the truth to come out because the truth does not benefit those that are in power. >> Uh and really as this being the ultimate wealth transfer. Um yeah, I don't know. Uh this this is taking us into hyperinflation. So no, I do not expect the truth to come out. I think the the truth is being even more buried than it was. and and why so we lower interest rates which enable a lot more of this and every time they do this the value of what's out there goes down anyway and really when President Trump is asking for lower interest rates what he's really saying is that the value of this dollar the purchasing power of this dollar is too high and they want to take it down but officially there's only three cents left. So there's virtually no value and that sticky inflation. I mean, if they really believe either side of it, whether it's Pal's side or President Trump's side, take your pick. If either one of them actually truly believe what they're saying, then we're in even more trouble than what I think. >> Yeah. Yeah. Well, to your point, I mean, in January, you did tell us that we were at the beginning parts of that hyperinflation you just talked about. And again, we'll get into what it means with the Genius Act, but even as the official CPI was 2.7%, I mean, the government now implicitly admitting that the official numbers may have been flawed. Powell got rid of that 2% himself. I mean, do do you feel your assessment of the of the real on the ground inflation rate has been kind of vindicated here? >> Oh, there's no doubt about it. I mean John Williams who was instrumental in creating the system to begin with back in the 80s he has continued to track the original basket and uh according I haven't looked just recently but we're we're going to hear oh well we're our inflation rate or the CPI is 2.7%. He's typically over 10%. And what are the people's normal though? You go to the grocery store, you go to buy anything, insurance or education or anything. What's the real inflation? It's not 2.7%. It's not 3%, it's not 5%. It's definitely closer to 10 or 20 or you know, take your pick. And what I said by making different choices, okay, you can continue to sit in this or you can continue to sit in all assets that you can only convert back into this. You can have I have a $10 trillion Zimbabwe note, so I'm a trillionaire in Zimbabwe, but I can't buy anything with it. And so the choice that you make is what will you do on an individual basis to protect your purchasing power, to protect your ability to go to the grocery store and buy food for your family and not have to put it on those four easy payments every week? M >> because let me tell you, you know, if everything is on those four easy payments, those easy payments do not become any easier to deal with because now you're really piling debt upon debt. >> Yeah. >> Um it it's a huge problem. But you know what protects you? Physical silver, >> right? And that's what 38 bucks an ounce. You know, that's ridiculous. >> Almost 39 today. It's it's it's on the up and up. Well, there you go. And that doesn't reflect its true value, but it still does protect your ability to buy the same basket of food over time. So those different choices would be to protect your purchasing power, you know, and when you're looking at spot gold, which again doesn't reflect the true value because it's everything has been turned into a trade. The economy is all about Wall Street. It's not about Main Street, but Main Street is the one that bears the brunt. >> Yeah. Always seems to. And this all while this whole sovereign debt endgame is is under criticism. I mean, if the official data is in question that feeds directly into trust in the foundation of the system, the US treasuries, which you've talked about extensively. I mean, your your single biggest concern at the start of the year was the Treasury market. The Fed's doubbish pivot seems to be direct response to the stress in that market. What is the hidden fragility that you see here? >> Oh my god. Well, you know, first of all, look at what's, you know, we're we're going to have to go back uh to the stable coins because, yeah, a big issue is the US Treasury market, which is the foundation of the global markets, but the traditional buyers and holders. Well, gosh, they kind of started turning away starting in 2008 with the banks no longer being the buy and hold. Now, I know they changed the rules, but it still takes a minute to ramp things back up. And foreign governments being the buyers and holders. And our two biggest buyers, Japan and China, well, they already started reducing their holdings and their buyings back in 2013. These are not things that come overnight. But if your foundation you require these buyers and holders, but now it is in traders hands really what the administration is attempting to do just like the administration did back in the early '7s when we went off the gold standard is to create an artificial market for dollars and dollar denominated debt. And whose shoulders are these going to be built on? It's on the public's shoulders, which is just about the right size to fail. If we stay splintered, right? If we stay as individuals, if we on a global basis come together in community now, we have a voice. If we don't do that, we have no voice. And we are being absolutely set up to fail in a very big way. And there's nobody you can complain to. There's nobody that you can talk to on this. Um it it's a horrendous situation really. >> And honestly, it's not getting a ton of headlines, too. I mean, official Treasury data shows foreign central banks have shed over $300 billion in those US treasuries over the last year itself, too. I mean, the Federal Reserve's own balance sheet still holds over 7 trillion in assets. But is this is is the public story about yields obscuring a private crisis among central banks where the traditional buyer base is just simply evaporating? >> You know, that's a really good point, Jeremy. And I would say that the yields, well, yes, cuz they should be considerably higher for the level of debt that's being issued and for the risk that people are taking just by sitting in dollars. And they don't realize it. They don't even realize the risk because these are things that are not being taught in schools. I mean, after all, if you really understood that what you're working for is debt that will never be paid, why would you do that? Why you wouldn't? >> No. And you you brought up stable coins, and it is a bigger conversation, but they're now a top buyer of US treasuries. I mean, Tether alone holds tens of billions. With the Genius Act forcing stable hoins to hold even more liquid reserves, are we building stability into the treasury market that they're talking about or or to your point creating a single point of failure? >> I think we're creating a single point of failure and uh particularly in third world countries that whose currencies have been high or hyperinflating running to stable coins eliminating the banks in the middle. Right? So it is direct failure to the individual. That's what the stable coins are. And you know there's an interesting parallel that I saw recently. And it's the same thing uh what's happening with the stable coins is actually the same thing that happened back in 1914 with the kickoff of this whole fiat money government debtbased money monetary system. And that is it was corporate debt. You know, the US held a certain level of gold. It was corporate debt that was converted into Federal Reserve notes at a 10:1 ratio that kicked this whole thing off. And now with the legalization of the stable coins and to your point, Tether being a huge holder of government debt, right? So it's they are corporations and I think we also talked about my question what was going to justify creating the new money >> because everything that I had read had said either debt or purchases >> and now the answer has been made quite clear to me. It's a combination of the two because who's issuing the stable coins? Amazon, Walmart. Yeah, you're going to have JP Morgan. You're going to have stable coins that are backed by other currencies. I mean, just because we said if you issue a US dollar stable coin, they must be uh backed by dollars, you're going to see a yuan stable coin, Hong Kong dollar stable coin, on and on and on. But this is an extraordinarily fractured system >> with corporations. Okay, you go to Amazon and you want to buy something and now you're in their ecosystem and you're using their stable coins cuz you watch. It's not going to take very long. And I would say within, you know, maybe another two months or something like that, you're going to see more and more advertisements to get you into that ecosystem, whether it's at Walmart or it's at Kmart or or wherever the stable coin is being issued. But there's a lot of danger in that because it's so fragmented. >> Yeah. And that's uh that has me really really really really really concerned because there's no middleman. The middleman has been eliminated, but it's the corporations that are going to generate all of that those new stable coins. They will well let let's see how do you buy those stable coins? Don't you use the money from the banks to buy those stable coins? Uh-oh. That means that the banks now have less money to lend out into the economy. And oh my goodness, Jeremy, that's quite deflationary. >> Yeah. >> And how do you fight deflation? >> Printon. >> Exactly. >> So, you'll see the Federal Reserve that has been allowing their balance sheet to run off. In other words, when a bond uh or note or bill mature, they're not they haven't been adding to it, but they're you're going to watch their balance sheet go right back up. It's going to have to. It's going to have to. >> So, I mean, between, you know, pension stuffed with treasuries, these stable coin users indirectly are financing Washington and households are paying the inflation tax. Has the US effectively nationalized its debt burden onto ordinary Americans without ever admitting it? Oh, 100%. Why in the world would they admit it? >> Yeah. >> You know, if they if they admitted things, if they told you the truth, you would make different choices. Their job is to lie. And when they're done with this lie, they find another lie and another lie and another lie because they have to keep you in the system. >> Yeah. And if the system only survives by siphoning wealth from the public at every level through retirement funds, bank deposits, stable coins, and inflation, isn't this less about sustainability and and more about extraction? I mean, at what point does confidence in the model collapse? >> That's what I watch all the time. And at what point would be the higher inflation? And I had also said that I thought we would see inflation start to tick up in June and it did at a very low level. Now we see it gaining more momentum and with the advent of the stable coins, we're going to see that even more. Even more >> interesting. So if the safest asset in the world quote unquote, which is technically or supposed to be the US treasuries, is no longer safe. I mean, what does that mean for traditional 60/40? Uh, you've been talking about this a lot. I mean, obviously gold and silver, but talk to me about what somebody holding bond ETFs or managing their 401k should be doing today in response to this. Well, I guess we have to look at, you know, why do they say this is the safest thing? Because your principal can be protected because they have the ability to just print as much money as they want to at virtually no cost. And gosh, they don't even have to print it. It's even cheaper if you push a button, you know, and create a whole bunch of money. So quite honestly, that's why they say it's the safest thing because you and I can't do that. If we do that, we're going to jail. But the government can do that. It doesn't make that money safe. So no, there is no no digital or paper asset that's based on dollars or euros or Canadian dollars or anywhere you are in the world. It's based on what? the full faith and credit of the government. So, as long as you trust them and you have that faith, you'll continue to loan them money. Okay. So, you brought up the the uh the confidence and it keeps bouncing off of the lowest levels, consumer confidence, inflation expectations. Um I have every expectation to see inflation even higher. That's what puts Jerome Pal and the Federal Reserve and frankly all central banks in a very tough place. Uh because in theory anyway you raise interest rates and then that uh produces less borrowing, less spending, less of this. >> But the problem really is >> my goodness that they need we're addicted to debt. I mean that's what it is. were addicted to debt. So they can't stop doing this. And so by putting interest rates down, the other part that people need to understand is once they create all that money, it goes into fiat money assets, stocks, bonds, ETFs, cryptos, derivatives, all of that garbage is all based on some form of this stuff depending upon where you are in the world. So, if this stuff is going down, you know, like that $10 trillion note that I have, what's it worth? Here it is. Here's that $10 trillion note from Zimbabwe that I can't even buy three egg. I can't buy anything with it. >> Yeah. Yeah. Yeah. Um, it's interesting because we watch this and we're obviously kind of watching the rise of of the corporate state as well. Well, I mean, if the government is struggling to fund itself through the traditional bond market, it would need other levels of power. And that kind of brings me to this whole new story about the government's unprecedented 10% equity stake in Intel. Officials are now publicly calling this a quote down payment on a sovereign wealth fund. But is this a move kind of a s a symptom of of the debt crisis? Well, you know what's a symptom of the debt crisis is how obvious it now is. I mean, who did not know that there was a a consistent revolving door between Wall Street and Washington, between corporations and the government. I mean, quite honestly, they were in it from the beginning because governments wanted to tax you without legislation and corporations wanted to pay you less. So that's why that corporate debt turned into Federal Reserve flipping notes. That's horrible. It's disgusting. And now with the stable coins again, it's the corporations that are working hand in hand. But now instead of trying to do it behind closed doors, it's out in the open. And so I think really I would rather have it more in the open. At least it's honest. Now, we have to believe what we're seeing >> and take action. >> Yeah. >> Because if you don't when you see it, you know, I mean, I hate to say this, but whose fault is that? >> Yeah. Accountability something uh we're not all being taught in schools these days, but that's a different conversation. Lynette, when Washington converts, I mean, they did $ 8.9 billion in grants and they turned that into a nearly 10% stake in Intel at a discount, no less. I mean, it does blur the line between free markets and in government controls. I mean, what you just said is a sovereign wealth fund that takes stakes in major companies, the final evolution of this trend, a formal merger of state and corporate power. I mean, what what are the historical precedents for this kind of economic structure? Well, it it is a takeover, but I don't know that I would say that it's the sovereign wealth fund um itself that shows that. I think it is the cross, it is more the crosspollination between the two and who's been put in place to run all these different agencies um in a a very overt way. And so yeah, I mean our government has certainly taken over corporations. I mean you can look at Fanny May and Freddy Mack as a great example. Um and also AIG during 200 the 2008 crisis where all of these corporations were made whole based upon their big bets. So So this is just more overt. It's it's just more overt because while Intel was struggling, it wasn't struggling to that point of a government bailout. >> But that's exactly what happened. And so I don't know that it's necessarily the sovereign wealth fund itself, but sovereign wealth funds are based upon excess. So like the uh for example the Middle Eastern countries that are selling all this oil and they had all of these extra dollars that they needed to do something with. Okay, what is it that we're in excess of that we need to put someplace? What are we shipping out that we need to put that excess money someplace? This is taxpayer money that did that versus excess money from our exports. So, it's very different than um than other countries sovereign debt funds. But yeah, it's ridiculous. And it's ridiculous wherever it is. Look at Japan. Their sovereign wealth fund owns most of their stock markets and most of their bond markets. Is this just a tool to keep things going for another minute until Well, we need the crisis. I mean, that's we have to have a huge one. >> Yeah. And so that's what I see is a setup for huge huge financial crisis that will make 2008 look like chump change. >> Yeah, it's so interesting because of course you previously described the modern banking system as a as a big casino, right, that makes more money on derivatives than on traditional lending? And as the sovereign debt crisis deepens, what is the risk that these derivatives books, I mean, which the OC reports are in the hundreds of trillions of dollars, become the real trigger for that next 2008 style event that you're talking about. >> That is a the gazillion dollar question. And I can tell you that before they changed formulas, so like 2009, I counted 1.48 48 quadrillion. That was from the Bank for International Settlements. Then they never change behavior. They simply change how they account for that behavior. And I gotta tell you, Jeremy, the reality is is that all of those derivatives, which are just big unsubstantiated bets on the debt that was issued from 2009 at zero interest rate policy for 15 years. I'm sorry. We have not seen that explosion, but you know 100% that it had to have happened and it has to be happening underneath the surface. But it's these guys, the big banks that create this garbage that get to tell the world whether or not there is an issue with this garbage. That is the bottom part of that iceberg that we cannot see. And who saw it leading up to 2008 when it just overwhelmed the system? And do you think it's smaller since 2009? Heck no. You were referring to the office of the controller of the currencies derivatives in the FDIC insured banks. But when they changed the rules and made them a titch more accountable, you saw a huge jump in the derivative holdings, particularly in precious metals. >> I don't believe anything they say. >> Interesting. >> I don't believe any of it because I'm too deep in it. But I am fully protected and I became a prepper because of this. >> Yeah. Yeah. And you're not the only one, Lynette, and especially while these things are coming to fruition in front of our eyes. I mean, we've talked about it. We're always the doomers and the gloomers. But I mean, you know, if you actually look at the stats, we've kind of front run the story. And this brings me to the physical reckoning because if the banking system is a casino and the treasury market is fragile, investors need that true safe haven kind of thing. I mean, let's hold your asset forecast to light. January, you told us spot market was a joke and you said that the forecast was about 3500 to 4,000 gold by now. We're below that, but not by much. I mean, did your forecast miss something or is the paper market is it the paper market that's lying about the true value of the physical metal? >> Of course it is. That's spot on, Jeremy. It is always the paper market because that's just a trading market. And since you and I spoke, look at how much of the physical market, cuz in the US, it's primarily just a digital market, a trading market. In Europe, it's been more of a physical market. But look at how much of that physical market was, and I'm going to use the term because I think this what what happened, repatriated back to the US from especially the Bank of England. And since it's wasn't the Bank of England England's gold because they're not sitting on a whole lot of their personal gold, but they are sitting on a whole lot of other sovereign gold from countries around the world. So what gold did they ship over here to us? I'm thinking it was, and I'm maybe I'm wrong about this, but I'm thinking it's a lot of that sovereign gold. What happens when the governments request their gold back? that still lies in our future. We haven't seen that yet, but that's going to be that's going to overwhelm I I think I could be wrong, but I think that that will absolutely overwhelm the market's ability to hide the truth. And um yeah, you can't go buy the price that on anything. I don't care what it is. I mean, do you really think that stocks at nosebleleed levels are a true valuation of what is happening in the economy? >> So would would those shortages then kind of expose the confidence in the official gold market? >> Exactly. Yeah. >> Exactly. because if those if enough governments request their gold back at one time and we saw this we saw this um a a a little snicker snack taste of it in 20145 in in there with the sovereign debt crisis in Europe and a lot of countries at that time repatriated and asked for their gold back and even the Federal Reserve of New York with when Germany asked for it they said okay you can have it but we're it's going to take us I think six or seven years or something. It didn't quite take them that long. They got it back before that, but they had to buy a lot of time and I think it's much worse now. So, that lies in our future, but you need to have the physical metal in your possession cuz if you don't hold it, you don't own it. >> And if a government needs to do an overt confiscation in order to make that happen, they will. And if it's sitting in a retirement plan or something like that where you're not holding it anyway, that's where most of it is in the US, you know, most of it's not held privately. Well, you're going to see that kind of explosion. And yeah, the truth will begin to express itself. It's not going to fully go there to its fundamental value yet. >> That happens when they're attempting to regain confidence. >> You It's funny. I had somebody from the Bunt Bank on here talking a little bit about this repatriation from Germany and they said that some of the gold that they got back didn't match up obviously with what they sent over there too. I mean I don't know if you read this story in the Financial Times but uh I think his name is Shelman. He's a he's a gentleman over there. He just argued that the global gold market is too important to be left to private clubs like the LBMA. He's he claims that they're kind of these opaque groups and set rules behind closed door. Even if the if you know if the central banks rely on these private structures, doesn't that undermine confidence into gold's role as the ultimate reserve asset? >> Well, I don't think so. I mean, I it it doesn't for me personally because I understand the true value of an ounce of gold and I also understand its full functionality. Now, if it didn't have that full functionality, then I would have to say yes because there would be no other way to accurately ultimately value uh the gold and its importance in the market. And and what I mean by that because because somehow Wall Street never really talks too much about how gold and silver are used in every single sector of the global economy. >> So you have the greatest functionality, but you also have the broadest base of buyers. Um when you're looking at trade and contracts like we do here in the US, that's one area. and you know the private clubs that you're talking about, it is really about managing perception. That's what it's about. And so there will be a rise cuz there always is. I mean, we've had over 4,800 currencies that do not exist anymore. So we have lots and lots of examples. And at the end of the day, central bankers will use gold to attempt to regain the the public confidence. And that is when you will really see gold start to move toward its true fundamental value. And that's based upon, you know, the the uh amount of debt that's been created because this is money. This is fiat money. This is sound money. They're both money. They're just the opposite side of the coin. This is used in one place. This is used every place. >> So what'll ultimately happen as loss of confidence in not just dollars, but that would be true. Euros, yen, all of them, right? Loss of confidence in the fiat money it system will drive the value not the value but the price of this the visible price of this to its true fundamental value but it will not happen until governments are forced to attempt to regain the public confidence. >> Yeah. Interesting. You know, of course, while the paper price lags, although it has done obviously well this year, central banks, particularly in the east, are continuing their historic buying spree of uh gold, I think over a,000 tons for the second consecutive year. But speaking of data, I kind of want to know more, Lynette. I mean, do do you think that all this buying is being hidden or under reportported by countries central banks? >> Well, yeah. I mean, do you really if if their job is to lie, do you suddenly think in this one little area they're going to tell the truth? You know, maybe it's more truth because we are watching them accumulate global central banks, meaning accumulate more gold than they ever have historically in the last three years. We also have central banks, especially the Federal Reserve, that are running losses. And I believe we are now in the fourth year of losses for the Federal Reserve. That's unprecedented. That has never happened before because how do central banks make their money? Does anybody ever ask that question? And it's actually pretty simple. It's senior, right? It costs well this happens to be a $10 bill, but if there's a $100 bill, here's one. Okay. It costs $9.4 to print a $100 bill. Less to push a button and create it. Now, you and I have to work a hundred times harder for this. But that difference between the cost of creating that money and the face value of that money is central bank income. And that's what they use to fund their operations. And whatever they don't use up in a year goes to the Treasury. And so we are now in the fourth year of massive losses at the Federal Reserve and their inability to transfer any of that excess to the Treasury. But look at how much new money they've created. Why are they in losses? >> The big question. The big question. What do you think? >> It's it's the losses on on what they're sitting on on all of that debt that they bought at Zer. But that's a little scary, especially as this whole situation begins to expand and more and more debt is piled on and you've got the corporations that are now issuing these stable coins buying this debt. What happens when they have to sell it? These are not these are not entities that are there solely to support these markets. Can they just invent a deferred asset and and push its losses into the future? Isn't that the definition of just kicking the can? >> Well, that that's what they they kind of do. But look at the the point is they've created more money than they ever have before. Their income is based on the cost of that money and the face value of that money. How in the world are they running losses? I don't care where they put it on their accounting books. I'm just saying how in the world I mean, and I don't hear anybody question this. >> Mhm. >> I haven't heard one person question it. Now, of course, I haven't listened to everybody in the world, but have you? >> No. No. No. This is This is why we get guests like you, Lynette. There's a there's I also want you to explain this clear distinction between and you've made it clear for the audience before between silver and gold saying silver actually maintains your standard of living and gold obviously expands it. Just talk to me a little bit about the mechanics of that. I mean in a reset how do these two metals perform their different roles? Uh what are you preparing for? Well, historically, yes, you the good thing about at least the data up to this point is that through the Bureau of Labor Statistics, the BLS, I can go back and I can pull a a food basket and it's the same food basket, right? So, I pulled it from 1913 to the last one I did, 1925, I mean, a couple months ago. and that food basket and and even though the BLS's numbers are sketchy, okay, they're what I can use for consistency sake, right? >> So that food basket had gone up something like 2500% over that time frame. Spot silver, manipulated as it is, was up about 3,000%. So that's why I say it maintains your ability to buy that same stuff. Spot gold manipulated as it is, is up over 16,000%. So not only does it maintain your ability to buy the same goods and services, it actually expands your ability. Neither one of them reflect the true fundamental value because a rising gold price as the primary currency metal would reflect it does reflect the falling purchasing power value of the currency. So governments have to keep it suppressed because they don't want you to understand what's happening because then again you would make different choices. However, as confidence in the dollar is lost then or any currency is lost, then people are trying to figure out what they have to do to maintain that. >> So, primary currency metal and this is also the metal that they do these overnight resets. They do it against gold as the primary currency metal which is indestructible which is one of the reasons why it is the primary currency metal. >> Silver gets used up in manufacturing. So, it is the secondary. And you know, I I get a lot of questions on the gold to silver ratio. And and initially here, this is my 20th of an ounce, $1 gold piece. I think you can see how teeny it is to an ounce of silver. So, this is the original. And that gold silver ratio, I'm sure we will see it grow more narrow for a period of time. But as the hyperinflation kicks in and people become more aware of it, then what happens is it expands again. So gold really does protect you much better in a high in every circumstance frankly. And and one way that the individual can test this on their own regardless of what I say is go into any currency exchange website. I happen to use xie.com, but you can use anyone and they're free. So, you go in there, pick a currency, any currency, and you know, they have it as shorter term, and it goes out, the one on XE goes out to 10 years. So, that's as far back as you can go in there. >> But, you put in the you put in the currency that you want to look at and put in against US dollars because the dollar still is officially the world reserve currency. put in spot silver for that same period of time, put in spot gold for that same period of time. One thing you will see, I've seen it a 100% of the time, is that spot silver and spot gold always outperforms the spot dollar. >> And then I'd say probably about 90.3% of the time, spot gold outperforms spot silver. But I have seen that flip-flop a little bit and it's usually by a very wide margin. And so for me personally, Spot is my choice for my barterable portfolio. So this is what I would take to the gas station. This is what I would take to the grocery store. Actually, I'd take probably more dimes to the grocery store because it's easier to put two dimes together than I'm not able to break that in half, right? So um I like silver for my barterability and my personal barterable portfolio for myself and my two daughters is 10 years worth of barterability and we can we have it all defined in our um in our salmon money strategy. And then I have barterable which fractional raw gold for things like property taxes or chronic illnesses or paying off a mortgage or things like that. So by a wide margin, my investment portfolio is in the collectible coins because it was just tested recently when uh the world thought that we were going to impose 39% tariffs on imported gold through Switzerland. >> Yeah. >> Yeah. What was it? It was the bars. It wasn't collectible coins. It was bullion. it was monetary gold. So I believe that it has a level of uh protection and since the US has a history of confiscated gold, we've done it three times. So to me that's that sets a historic precedence and even though they backed off from those 39% tariffs because that's what they do, right? You dip a toe, you see what the reaction is. Do I need to pull it back or can I keep going further and further and further? So that's I believe what it was. But I love the fact that it tested the monetary gold and not the collectible gold. That was great for me because it it was for me another element of proof on how I can keep my gold and use it in the normal marketplace to expand my wealth base into income producing assets that I can't outlive and my children I can pass it down as a legacy to my children. Ah, Lynette, I could talk to you all day and we got still a little bit more to get into before we take up your whole hour. But before we move on to I wanted to ask you about these silver price slams, but before we do it, I mean, back in 33, 1933, obviously Washington confiscated that private gold, $20 an ounce and revalued it to 35 kind of robbing the public with the 36 trillion or 37 now in debt that we talk about in central banks again hoarding gold. Do you think governments will try to do something similar in the next crisis? >> 100%. There isn't even one teeny weeny doubt in my mind because there are over 4,800 currencies that have done this. And I don't think this time is different. But I do think that this time it will be a globally coordinated effort because when one country does it, it would be like a domino impact anyway. And we certainly saw since 2008 how central banks can coordinate and work with each other. And frankly, Jeremy, that 37 trillion, we are not talking about any of those, I don't know, quadrillions of derivatives that are written against that debt. >> And I'd also kind of point out that if you think that that's all of the debt, there's this bridge in Brooklyn. I don't really own it, but I'd sell it to you. I wouldn't really sell it to you because I have more ethics than that. However, um I don't believe it's only 37 trillion, but I I'll use that data for calculation purposes. >> Okay. >> No, I hear you on that. And I mean, as we talk about if the paper markets kind of dominate prices and these same banks can slam prices at will, isn't the system kind of rigged by design, isn't the only safe move then for investors to leave the paper game and focus on the physical gold and silver? That is exactly the choice that I have made. And keeping in mind that I'm an ex-banker and an ex-s stock broker and I consider myself a technician. So I I believe I can read the technical language of the markets, but I am not a short-term trader and I don't buy in to the lies. I just don't. Yes, I I personally do not own any stocks or bonds or ETFs or mutual funds or annuities or any of that fiat money garbage because I am crystal clear that we're at the end of this currency's life cycle. And once they've gotten all the purchasing power, which essentially they have, then they must attack principle and that's what's coming up next. And so yeah, you got to get I am in safety and it's not just gold and silver. >> It's also food, water, energy, security, barterability, wealth preservation, community, which is arguably the single most important part of the mantra, and shelter because these are the things that we need to lead a reasonable standard of living. And this is this is what I talk about all the time. Local community to create shorty in all of those eight areas. Global community to create sound money in the system that and sound money is simply this. It is gold and silver that because it's used in every area of the economy, governments and central banks cannot inflate away. It is above them. That's where you need to be right now in absolute safety. >> All right. So, if we were to do the contrarian talk just because we have to. I mean, let's talk about the digital wild cards because obviously central banks are buying physical gold. Much of the public and Wall Street are still focused on digital assets. None of the 4,800 collapses that you've studied involved a non-svereign digital competitor like Bitcoin or a tool of potential surveillance like a CBDC. Do these new technologies break the historical pattern or do they just simply accelerate it? >> They accelerate it and they make it much much much worse. >> You know, I mean, think about it. This is so simple money. It's used in every single area. It's physical. It holds energy. And we do know that we have both an energy and water crisis on a global basis as well as a food crisis. But these digital currencies, the more complicated it is to understand the currency, the more ability they have to use them for abuse. And you know, when you stop and think about this system, it's 1.00. And maybe it can go out uh in in bookkeeping a few more zeros. But when with the advent of this stuff, which I will point out how much the visible representation of this is happens to be Bitcoin visible representation looks an awful lot like an ounce of gold, doesn't it? >> Right? They want you to think that these are the same things. But I'll tell you right now, I am not an engineer. And not only am I not an engineer, I am not a specific kind of engineer to understand the algorithms and the formulas inside of this garbage. Which means that they can easily take advantage of me and I would not have a clue. Just like we've been taken advantage with this stuff. And people don't understand this. It is worse. And by the way, Jeremy, I would say that it is not just central banks that have the ability to do surveillance money. I think all of these corporations in tandem with AI that knows your personality, studies how you think, can nudge you in the direction that they want you to go in with over overlapped the digital, the AI, and then the the um the um smart contracts. Before you know it, you're carrying all of your wealth on your phone and AI is nudging you to buy that new shirt or buy that boat. You've got all your equity on your phone. They've been talking about this. I think I first talked about it on air in 2015. >> Um, and you've got all your equity on your phone. Eh, it's just a little bit. I have all this equity. Before you know it, you get notified from your smart contract that you no longer own your house or your car or whatever else it is that you have allowed them to tokenize, >> right? >> And digitize. And that's why the W the World Economic Forum's prediction by 2030 you will own nothing. >> Yeah. What a time to be alive, huh? Well, you will over in Arizona, Lynette. Um, okay. Okay, we got a couple of things to get to before I let you go. One of them is we are I just wanted to because it's an interesting point. I just get your opinion on this. I mean, we're seeing that clear divergence. The West is focused on digital asset ETFs and the East seems to be focused on accumulating physical gold. I mean, what's happening? Is this the new front in the global currency wars, a battle between digital versus physical concepts of money? Like >> I I would definitely say that there is a huge battle that's going on. Um, and you know, I don't know if the people in the West have absolutely lost sight of any truth because the lie has worked so well for so long. Um, I I can't really explain it because it's clearly not the choice that I've made. You know, I feel very blessed that I happened to stumble across non-doll denominated bonds in 1987. Honest to God, had that not happened, I would not know any more than anybody else. This is not something that they want you to understand. Um, so it's it's really, you know, sometimes power goes to people's heads >> and they become think that they're more godlike. And I mean, I think that could be what we're experiencing, but you know, get me to safety. >> Yeah. get me into physical with all of those other pieces because you can't really eat gold and silver but you you can become your own central bank. >> Yeah. >> And create your economic stability inside of that and then that community piece which is something else that's really been you know divide and conquer. if we're not talking to each other, if we're not having these conversations, even if we disagree, right? I I love the disagreements. They have as much validity. Let everybody hear all of the sides and then step back and see what feels the most right for you. We're a trading economy. >> That that's when you're looking at the West, it is all about a trade. It is not about value. >> Yeah. Yeah. Of course, we're all we're going to get back to >> we're we're all humans, too. I mean, we've talked about the data, the debt, the the assets, but you argue that this is a human pattern. Let's end with the human element. I mean, looking at all the cycles that you've studied, what is the single most common mistake that ordinary people make when they begin to realize that the official story is untrue? Oh, the Okay. So, the mistake that they make when they realize that it's untrue. Well, actually then they they double down on the fiat money lie because and you'll see and I do think that we that we've entered this piece and that's the melt up phase where you see the crypto markets going up in terms of of fiat money, dollars or wherever you are in the world and the stock markets etc. Valuations don't mean anything. Central banks have trained the public to buy the dips no matter what. And I think that's the mistake that they make, thinking that that is going to maintain their ability to purchase when it really it really doesn't. And when they do that overnight reset, those markets reset real fast. Real fast. And you're in you end up with nothing. >> Yeah. Yeah. Just holding the bag. Um sad state. I mean, you called this wordopium when we spoke in January to describe what was kind of holding that system together for after eight months of crisis and intervention. What is the state of that opium today? >> I think it's alive and well. >> Yeah. >> And and I think that it just puts you in a much worse state because insanity is defined as doing the same thing over and over again and expecting different results. Some people might call me crazy, but not insane. >> Annette Zang, thank you for your time. I appreciate it as always. I could have spoken to you for even more things. I got notes and notes to get through, but of course, we'll have you on for a part two. Hopefully, it's before seeing you in Vancouver at that annual conference. And you never know, maybe we can bring Kitco down to Arizona for a visit. >> That would be awesome. And if you did, we could go up to my bugout house. >> Love it. >> And we could film from there. We could do some fun things. >> We got our producers watching now. I'll I'll talk to them. I'll get it going. Thanks, Lynette. Appreciate your time today. >> I appreciate you having me. Thank you so much. It's good seeing you. >> Thank you. You too. And of course, do you think the US dollar is entering its final stage? Let us know in the comments. Don't forget to hit the subscribe button for more interviews like this. For Kitco News, I'm Jeremy Saffron. Thanks for watching. [Music] Heat. Heat. [Music]
Lynette Zang Lays Out the Full Plan: How the ‘Genius Act’ Ends the Dollar | Kitco News
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Back in 33, 1933, obviously Washington confiscated that private gold, $20 an ounce and revalued it to 35, kind of robbing the public with the 36 trillion or 37 now in debt that we talk about in central banks again hoarding gold. Do you think governments will try to do something similar in the next crisis? >> 100%. There isn't even one teeny weeny doubt in my mind because there over 4,800 currencies that have done this. And I don't think this time is different. But I do think that this time it will be a globally coordinated effort because when one country does it, it would be like a domino impact anyway. And we certainly saw since 2008 how central banks can coordinate and work with each other. [Music] Hey everyone, welcome back. I'm Jeremy Sappern. Now the market is facing a puzzle that conventional analysis is struggling to solve. On one hand, the Federal Reserve has opened the door to rate cuts, sparking a rally on Wall Street. Yet lingering doubts remain and policy makers themselves admit that they face a quote challenging situation with sticky inflation and a softening labor market. Now on the other hand, we see positive headlines like new home sales jumping in July. But the strength was driven by heavy builder incentives and easing prices, not organic demand. And this comes as consumer credit card delinquencies are rising at the fastest pace ever recorded. These are chaotic signals of a system under stress. And our guest today has built a five decade career analyzing these exact patterns. She's a former banker and stock broker who's been studying currency lifestyle life cycles since 1987. Now, when she was last with us in January, she laid out a specific framework for 2025. And she was pretty darn close. And today, we'll use that framework to make sense of what these headlines are. Let's welcome Lynette Zang, founder of Zang Enterprises. I hope you've been having a great summer down there in Arizona. Nice to see you. >> Well, it's good to see you, too, Jeremy. Thank you for having me on. It's a little hot here, but you know, I've been here for a long time, so I'm kind of used to it. >> You're used to it. You're used to it. Well, uh, let's talk a little bit about this official story versus the on the ground reality. I mean, there's a credibility gap, and you and I have discussed this before. We have that dovish Fed, strong housing headlines, but deeply stressed consumers. When do you see these conflicting signals? How does it fit into the historical lifestyle or life cycle pattern that you've studied for over 30 years here, Lynette? >> Yeah, it's true. And that's really why the things that we would have expected the normal setup inside of the system. Everybody's going, "Wow, that's never happened before." Well, actually, yes, it has. These are all indications that we are at the end of this experiment. And frankly, it should be obvious to everybody that we are shifting into a new system. >> Yeah. Yeah. Well, in our last conversation, I mean, you said that there's this quote huge humanitarian crisis that's already happening and that was with people using installment payments for groceries and and now we've seen those consumer stress indicators continue to kind of worsen all year. is the most significant disconnect that while Wall Street and and Washington debate recession probabilities, a large part of the population is already living in a personal depression. >> Well, I don't know if that's the greatest piece, but it's certainly a huge one. And it's kind of like a Nero playing the fiddle while Rome was burning. And I really think that that's the kind of thing that we are absolutely seeing now. Um though it's been coming for a long time. I mean these things don't happen boom overnight. We've been watching that income wealth and wealth inequality expand really since the early8s as the pure debtbased system kicked off and that's what we're seeing now too. Also it's the level of speculation. You know, when you have meme stocks being 10% of the volume on an exchange, it's all about speculation. >> Yeah, it's almost >> and that is definitely an indication. >> It's a little bit scary, a little bit frightening. Of course, we saw a little bit of profit taking on the the general markets today and with this new data, but of course, maybe it's going to be revised. I mean, when we spoke in January, you highlighted the constant revisions to data from the Fed, and we've seen those significant downward revisions to jobs, GDP all year long. How does this political battle over the data fit into historical pattern of a currency's life cycle? Well, you know, it gets very invisible and especially we know that doge that Doge went in in early part of the year and just sliced just sliced and diced a lot of those individuals that would actually be gathering and analyzing the data. So, as bad as it was before, quite honestly, now we are flying absolutely blind. absolutely blind. You don't like what the report comes out. Well, let let's just fire someone cuz it's their fault. >> Well, I mean, how can you make an educated choice when you have no good information to work with? So, this is really all an indication of the end of this currency's life cycle. And what most people don't realize, and Jeremy, this is the thing that has me seriously the most concerned, is that when President Trump signed the Genius Act, he changed the global monetary system and I believe so you can mark write this down and we'll talk about it in a few more months again, but there's really not one doubt in my mind, but that the stable coins and you always have to be careful of how things are named. named because it's usually just the opposite. But the uh stable coins will be the mechanism that will usher in and actually create the hyperinflation that we need to do the ultimate shift into the new system. But that's that's happened already. So I'm really nervous about that. >> I'm a little bit nervous uh about but we this is good because for the audience it's going to make us go they're going to stay with us longer because we're going to bring that up. the Genius Act, CBDC's, you know, the stable coin conversation. I want to get really really into that uh maybe towards the middle of the interview just so that we can keep a cliffhanger for him. But let's continue to talk about that war on data for a second because I mean the new administration has now fired the head of the BLS and installed EJ Anthony. He's a economist who for years has spent publicly stating the government's official inflation and jobs numbers are fundamentally flawed. And I should say full disclosure, he's been a guest here on my show as well. Uh, how significant is this unprecedented political move? >> Oh, wow. I I mean, quite honestly, it's like you're driving over a cliff and they put this pretty picture in front of the cliff and you're not going to know when you hit it. >> You are not going to know. It's going to happen just that fast. So, I think it's huge. And it goes to my very favorite question, which is how many times can you be lied to when you do not know the truth? And obviously the answer is every time. But this goes more than just this takes it more than just the lie because we are flying blind. It It's like you're in this huge airplane and the plane is coming down, but you cannot see where that mountain is, where that ground is, when you're going to hit, how you're going to hit. You have blindfolders on as you're as you're flying this ginormous plane. And those that are sitting in the back, they have no idea how close we are to hitting. And and those that are driving it, they have no idea either. It it scares the Hades out of me. I'm not gonna lie. It's very scary. >> I you know I do I went back and looked at our January interview over Vick and and you know one of the things that you did say in the quotes that I have is that exactly that. I mean you said that you didn't think the truth would indeed come out because if it did people would start to make different choices. I mean with critics now having more influence over the official numbers is the truth about to come out and what different choices do you expect the public to make if it does? I don't expect the truth to come out because the truth does not benefit those that are in power. >> Uh and really as this being the ultimate wealth transfer. Um yeah, I don't know. Uh this this is taking us into hyperinflation. So no, I do not expect the truth to come out. I think the the truth is being even more buried than it was. and and why so we lower interest rates which enable a lot more of this and every time they do this the value of what's out there goes down anyway and really when President Trump is asking for lower interest rates what he's really saying is that the value of this dollar the purchasing power of this dollar is too high and they want to take it down but officially there's only three cents left. So there's virtually no value and that sticky inflation. I mean, if they really believe either side of it, whether it's Pal's side or President Trump's side, take your pick. If either one of them actually truly believe what they're saying, then we're in even more trouble than what I think. >> Yeah. Yeah. Well, to your point, I mean, in January, you did tell us that we were at the beginning parts of that hyperinflation you just talked about. And again, we'll get into what it means with the Genius Act, but even as the official CPI was 2.7%, I mean, the government now implicitly admitting that the official numbers may have been flawed. Powell got rid of that 2% himself. I mean, do do you feel your assessment of the of the real on the ground inflation rate has been kind of vindicated here? >> Oh, there's no doubt about it. I mean John Williams who was instrumental in creating the system to begin with back in the 80s he has continued to track the original basket and uh according I haven't looked just recently but we're we're going to hear oh well we're our inflation rate or the CPI is 2.7%. He's typically over 10%. And what are the people's normal though? You go to the grocery store, you go to buy anything, insurance or education or anything. What's the real inflation? It's not 2.7%. It's not 3%, it's not 5%. It's definitely closer to 10 or 20 or you know, take your pick. And what I said by making different choices, okay, you can continue to sit in this or you can continue to sit in all assets that you can only convert back into this. You can have I have a $10 trillion Zimbabwe note, so I'm a trillionaire in Zimbabwe, but I can't buy anything with it. And so the choice that you make is what will you do on an individual basis to protect your purchasing power, to protect your ability to go to the grocery store and buy food for your family and not have to put it on those four easy payments every week? M >> because let me tell you, you know, if everything is on those four easy payments, those easy payments do not become any easier to deal with because now you're really piling debt upon debt. >> Yeah. >> Um it it's a huge problem. But you know what protects you? Physical silver, >> right? And that's what 38 bucks an ounce. You know, that's ridiculous. >> Almost 39 today. It's it's it's on the up and up. Well, there you go. And that doesn't reflect its true value, but it still does protect your ability to buy the same basket of food over time. So those different choices would be to protect your purchasing power, you know, and when you're looking at spot gold, which again doesn't reflect the true value because it's everything has been turned into a trade. The economy is all about Wall Street. It's not about Main Street, but Main Street is the one that bears the brunt. >> Yeah. Always seems to. And this all while this whole sovereign debt endgame is is under criticism. I mean, if the official data is in question that feeds directly into trust in the foundation of the system, the US treasuries, which you've talked about extensively. I mean, your your single biggest concern at the start of the year was the Treasury market. The Fed's doubbish pivot seems to be direct response to the stress in that market. What is the hidden fragility that you see here? >> Oh my god. Well, you know, first of all, look at what's, you know, we're we're going to have to go back uh to the stable coins because, yeah, a big issue is the US Treasury market, which is the foundation of the global markets, but the traditional buyers and holders. Well, gosh, they kind of started turning away starting in 2008 with the banks no longer being the buy and hold. Now, I know they changed the rules, but it still takes a minute to ramp things back up. And foreign governments being the buyers and holders. And our two biggest buyers, Japan and China, well, they already started reducing their holdings and their buyings back in 2013. These are not things that come overnight. But if your foundation you require these buyers and holders, but now it is in traders hands really what the administration is attempting to do just like the administration did back in the early '7s when we went off the gold standard is to create an artificial market for dollars and dollar denominated debt. And whose shoulders are these going to be built on? It's on the public's shoulders, which is just about the right size to fail. If we stay splintered, right? If we stay as individuals, if we on a global basis come together in community now, we have a voice. If we don't do that, we have no voice. And we are being absolutely set up to fail in a very big way. And there's nobody you can complain to. There's nobody that you can talk to on this. Um it it's a horrendous situation really. >> And honestly, it's not getting a ton of headlines, too. I mean, official Treasury data shows foreign central banks have shed over $300 billion in those US treasuries over the last year itself, too. I mean, the Federal Reserve's own balance sheet still holds over 7 trillion in assets. But is this is is the public story about yields obscuring a private crisis among central banks where the traditional buyer base is just simply evaporating? >> You know, that's a really good point, Jeremy. And I would say that the yields, well, yes, cuz they should be considerably higher for the level of debt that's being issued and for the risk that people are taking just by sitting in dollars. And they don't realize it. They don't even realize the risk because these are things that are not being taught in schools. I mean, after all, if you really understood that what you're working for is debt that will never be paid, why would you do that? Why you wouldn't? >> No. And you you brought up stable coins, and it is a bigger conversation, but they're now a top buyer of US treasuries. I mean, Tether alone holds tens of billions. With the Genius Act forcing stable hoins to hold even more liquid reserves, are we building stability into the treasury market that they're talking about or or to your point creating a single point of failure? >> I think we're creating a single point of failure and uh particularly in third world countries that whose currencies have been high or hyperinflating running to stable coins eliminating the banks in the middle. Right? So it is direct failure to the individual. That's what the stable coins are. And you know there's an interesting parallel that I saw recently. And it's the same thing uh what's happening with the stable coins is actually the same thing that happened back in 1914 with the kickoff of this whole fiat money government debtbased money monetary system. And that is it was corporate debt. You know, the US held a certain level of gold. It was corporate debt that was converted into Federal Reserve notes at a 10:1 ratio that kicked this whole thing off. And now with the legalization of the stable coins and to your point, Tether being a huge holder of government debt, right? So it's they are corporations and I think we also talked about my question what was going to justify creating the new money >> because everything that I had read had said either debt or purchases >> and now the answer has been made quite clear to me. It's a combination of the two because who's issuing the stable coins? Amazon, Walmart. Yeah, you're going to have JP Morgan. You're going to have stable coins that are backed by other currencies. I mean, just because we said if you issue a US dollar stable coin, they must be uh backed by dollars, you're going to see a yuan stable coin, Hong Kong dollar stable coin, on and on and on. But this is an extraordinarily fractured system >> with corporations. Okay, you go to Amazon and you want to buy something and now you're in their ecosystem and you're using their stable coins cuz you watch. It's not going to take very long. And I would say within, you know, maybe another two months or something like that, you're going to see more and more advertisements to get you into that ecosystem, whether it's at Walmart or it's at Kmart or or wherever the stable coin is being issued. But there's a lot of danger in that because it's so fragmented. >> Yeah. And that's uh that has me really really really really really concerned because there's no middleman. The middleman has been eliminated, but it's the corporations that are going to generate all of that those new stable coins. They will well let let's see how do you buy those stable coins? Don't you use the money from the banks to buy those stable coins? Uh-oh. That means that the banks now have less money to lend out into the economy. And oh my goodness, Jeremy, that's quite deflationary. >> Yeah. >> And how do you fight deflation? >> Printon. >> Exactly. >> So, you'll see the Federal Reserve that has been allowing their balance sheet to run off. In other words, when a bond uh or note or bill mature, they're not they haven't been adding to it, but they're you're going to watch their balance sheet go right back up. It's going to have to. It's going to have to. >> So, I mean, between, you know, pension stuffed with treasuries, these stable coin users indirectly are financing Washington and households are paying the inflation tax. Has the US effectively nationalized its debt burden onto ordinary Americans without ever admitting it? Oh, 100%. Why in the world would they admit it? >> Yeah. >> You know, if they if they admitted things, if they told you the truth, you would make different choices. Their job is to lie. And when they're done with this lie, they find another lie and another lie and another lie because they have to keep you in the system. >> Yeah. And if the system only survives by siphoning wealth from the public at every level through retirement funds, bank deposits, stable coins, and inflation, isn't this less about sustainability and and more about extraction? I mean, at what point does confidence in the model collapse? >> That's what I watch all the time. And at what point would be the higher inflation? And I had also said that I thought we would see inflation start to tick up in June and it did at a very low level. Now we see it gaining more momentum and with the advent of the stable coins, we're going to see that even more. Even more >> interesting. So if the safest asset in the world quote unquote, which is technically or supposed to be the US treasuries, is no longer safe. I mean, what does that mean for traditional 60/40? Uh, you've been talking about this a lot. I mean, obviously gold and silver, but talk to me about what somebody holding bond ETFs or managing their 401k should be doing today in response to this. Well, I guess we have to look at, you know, why do they say this is the safest thing? Because your principal can be protected because they have the ability to just print as much money as they want to at virtually no cost. And gosh, they don't even have to print it. It's even cheaper if you push a button, you know, and create a whole bunch of money. So quite honestly, that's why they say it's the safest thing because you and I can't do that. If we do that, we're going to jail. But the government can do that. It doesn't make that money safe. So no, there is no no digital or paper asset that's based on dollars or euros or Canadian dollars or anywhere you are in the world. It's based on what? the full faith and credit of the government. So, as long as you trust them and you have that faith, you'll continue to loan them money. Okay. So, you brought up the the uh the confidence and it keeps bouncing off of the lowest levels, consumer confidence, inflation expectations. Um I have every expectation to see inflation even higher. That's what puts Jerome Pal and the Federal Reserve and frankly all central banks in a very tough place. Uh because in theory anyway you raise interest rates and then that uh produces less borrowing, less spending, less of this. >> But the problem really is >> my goodness that they need we're addicted to debt. I mean that's what it is. were addicted to debt. So they can't stop doing this. And so by putting interest rates down, the other part that people need to understand is once they create all that money, it goes into fiat money assets, stocks, bonds, ETFs, cryptos, derivatives, all of that garbage is all based on some form of this stuff depending upon where you are in the world. So, if this stuff is going down, you know, like that $10 trillion note that I have, what's it worth? Here it is. Here's that $10 trillion note from Zimbabwe that I can't even buy three egg. I can't buy anything with it. >> Yeah. Yeah. Yeah. Um, it's interesting because we watch this and we're obviously kind of watching the rise of of the corporate state as well. Well, I mean, if the government is struggling to fund itself through the traditional bond market, it would need other levels of power. And that kind of brings me to this whole new story about the government's unprecedented 10% equity stake in Intel. Officials are now publicly calling this a quote down payment on a sovereign wealth fund. But is this a move kind of a s a symptom of of the debt crisis? Well, you know what's a symptom of the debt crisis is how obvious it now is. I mean, who did not know that there was a a consistent revolving door between Wall Street and Washington, between corporations and the government. I mean, quite honestly, they were in it from the beginning because governments wanted to tax you without legislation and corporations wanted to pay you less. So that's why that corporate debt turned into Federal Reserve flipping notes. That's horrible. It's disgusting. And now with the stable coins again, it's the corporations that are working hand in hand. But now instead of trying to do it behind closed doors, it's out in the open. And so I think really I would rather have it more in the open. At least it's honest. Now, we have to believe what we're seeing >> and take action. >> Yeah. >> Because if you don't when you see it, you know, I mean, I hate to say this, but whose fault is that? >> Yeah. Accountability something uh we're not all being taught in schools these days, but that's a different conversation. Lynette, when Washington converts, I mean, they did $ 8.9 billion in grants and they turned that into a nearly 10% stake in Intel at a discount, no less. I mean, it does blur the line between free markets and in government controls. I mean, what you just said is a sovereign wealth fund that takes stakes in major companies, the final evolution of this trend, a formal merger of state and corporate power. I mean, what what are the historical precedents for this kind of economic structure? Well, it it is a takeover, but I don't know that I would say that it's the sovereign wealth fund um itself that shows that. I think it is the cross, it is more the crosspollination between the two and who's been put in place to run all these different agencies um in a a very overt way. And so yeah, I mean our government has certainly taken over corporations. I mean you can look at Fanny May and Freddy Mack as a great example. Um and also AIG during 200 the 2008 crisis where all of these corporations were made whole based upon their big bets. So So this is just more overt. It's it's just more overt because while Intel was struggling, it wasn't struggling to that point of a government bailout. >> But that's exactly what happened. And so I don't know that it's necessarily the sovereign wealth fund itself, but sovereign wealth funds are based upon excess. So like the uh for example the Middle Eastern countries that are selling all this oil and they had all of these extra dollars that they needed to do something with. Okay, what is it that we're in excess of that we need to put someplace? What are we shipping out that we need to put that excess money someplace? This is taxpayer money that did that versus excess money from our exports. So, it's very different than um than other countries sovereign debt funds. But yeah, it's ridiculous. And it's ridiculous wherever it is. Look at Japan. Their sovereign wealth fund owns most of their stock markets and most of their bond markets. Is this just a tool to keep things going for another minute until Well, we need the crisis. I mean, that's we have to have a huge one. >> Yeah. And so that's what I see is a setup for huge huge financial crisis that will make 2008 look like chump change. >> Yeah, it's so interesting because of course you previously described the modern banking system as a as a big casino, right, that makes more money on derivatives than on traditional lending? And as the sovereign debt crisis deepens, what is the risk that these derivatives books, I mean, which the OC reports are in the hundreds of trillions of dollars, become the real trigger for that next 2008 style event that you're talking about. >> That is a the gazillion dollar question. And I can tell you that before they changed formulas, so like 2009, I counted 1.48 48 quadrillion. That was from the Bank for International Settlements. Then they never change behavior. They simply change how they account for that behavior. And I gotta tell you, Jeremy, the reality is is that all of those derivatives, which are just big unsubstantiated bets on the debt that was issued from 2009 at zero interest rate policy for 15 years. I'm sorry. We have not seen that explosion, but you know 100% that it had to have happened and it has to be happening underneath the surface. But it's these guys, the big banks that create this garbage that get to tell the world whether or not there is an issue with this garbage. That is the bottom part of that iceberg that we cannot see. And who saw it leading up to 2008 when it just overwhelmed the system? And do you think it's smaller since 2009? Heck no. You were referring to the office of the controller of the currencies derivatives in the FDIC insured banks. But when they changed the rules and made them a titch more accountable, you saw a huge jump in the derivative holdings, particularly in precious metals. >> I don't believe anything they say. >> Interesting. >> I don't believe any of it because I'm too deep in it. But I am fully protected and I became a prepper because of this. >> Yeah. Yeah. And you're not the only one, Lynette, and especially while these things are coming to fruition in front of our eyes. I mean, we've talked about it. We're always the doomers and the gloomers. But I mean, you know, if you actually look at the stats, we've kind of front run the story. And this brings me to the physical reckoning because if the banking system is a casino and the treasury market is fragile, investors need that true safe haven kind of thing. I mean, let's hold your asset forecast to light. January, you told us spot market was a joke and you said that the forecast was about 3500 to 4,000 gold by now. We're below that, but not by much. I mean, did your forecast miss something or is the paper market is it the paper market that's lying about the true value of the physical metal? >> Of course it is. That's spot on, Jeremy. It is always the paper market because that's just a trading market. And since you and I spoke, look at how much of the physical market, cuz in the US, it's primarily just a digital market, a trading market. In Europe, it's been more of a physical market. But look at how much of that physical market was, and I'm going to use the term because I think this what what happened, repatriated back to the US from especially the Bank of England. And since it's wasn't the Bank of England England's gold because they're not sitting on a whole lot of their personal gold, but they are sitting on a whole lot of other sovereign gold from countries around the world. So what gold did they ship over here to us? I'm thinking it was, and I'm maybe I'm wrong about this, but I'm thinking it's a lot of that sovereign gold. What happens when the governments request their gold back? that still lies in our future. We haven't seen that yet, but that's going to be that's going to overwhelm I I think I could be wrong, but I think that that will absolutely overwhelm the market's ability to hide the truth. And um yeah, you can't go buy the price that on anything. I don't care what it is. I mean, do you really think that stocks at nosebleleed levels are a true valuation of what is happening in the economy? >> So would would those shortages then kind of expose the confidence in the official gold market? >> Exactly. Yeah. >> Exactly. because if those if enough governments request their gold back at one time and we saw this we saw this um a a a little snicker snack taste of it in 20145 in in there with the sovereign debt crisis in Europe and a lot of countries at that time repatriated and asked for their gold back and even the Federal Reserve of New York with when Germany asked for it they said okay you can have it but we're it's going to take us I think six or seven years or something. It didn't quite take them that long. They got it back before that, but they had to buy a lot of time and I think it's much worse now. So, that lies in our future, but you need to have the physical metal in your possession cuz if you don't hold it, you don't own it. >> And if a government needs to do an overt confiscation in order to make that happen, they will. And if it's sitting in a retirement plan or something like that where you're not holding it anyway, that's where most of it is in the US, you know, most of it's not held privately. Well, you're going to see that kind of explosion. And yeah, the truth will begin to express itself. It's not going to fully go there to its fundamental value yet. >> That happens when they're attempting to regain confidence. >> You It's funny. I had somebody from the Bunt Bank on here talking a little bit about this repatriation from Germany and they said that some of the gold that they got back didn't match up obviously with what they sent over there too. I mean I don't know if you read this story in the Financial Times but uh I think his name is Shelman. He's a he's a gentleman over there. He just argued that the global gold market is too important to be left to private clubs like the LBMA. He's he claims that they're kind of these opaque groups and set rules behind closed door. Even if the if you know if the central banks rely on these private structures, doesn't that undermine confidence into gold's role as the ultimate reserve asset? >> Well, I don't think so. I mean, I it it doesn't for me personally because I understand the true value of an ounce of gold and I also understand its full functionality. Now, if it didn't have that full functionality, then I would have to say yes because there would be no other way to accurately ultimately value uh the gold and its importance in the market. And and what I mean by that because because somehow Wall Street never really talks too much about how gold and silver are used in every single sector of the global economy. >> So you have the greatest functionality, but you also have the broadest base of buyers. Um when you're looking at trade and contracts like we do here in the US, that's one area. and you know the private clubs that you're talking about, it is really about managing perception. That's what it's about. And so there will be a rise cuz there always is. I mean, we've had over 4,800 currencies that do not exist anymore. So we have lots and lots of examples. And at the end of the day, central bankers will use gold to attempt to regain the the public confidence. And that is when you will really see gold start to move toward its true fundamental value. And that's based upon, you know, the the uh amount of debt that's been created because this is money. This is fiat money. This is sound money. They're both money. They're just the opposite side of the coin. This is used in one place. This is used every place. >> So what'll ultimately happen as loss of confidence in not just dollars, but that would be true. Euros, yen, all of them, right? Loss of confidence in the fiat money it system will drive the value not the value but the price of this the visible price of this to its true fundamental value but it will not happen until governments are forced to attempt to regain the public confidence. >> Yeah. Interesting. You know, of course, while the paper price lags, although it has done obviously well this year, central banks, particularly in the east, are continuing their historic buying spree of uh gold, I think over a,000 tons for the second consecutive year. But speaking of data, I kind of want to know more, Lynette. I mean, do do you think that all this buying is being hidden or under reportported by countries central banks? >> Well, yeah. I mean, do you really if if their job is to lie, do you suddenly think in this one little area they're going to tell the truth? You know, maybe it's more truth because we are watching them accumulate global central banks, meaning accumulate more gold than they ever have historically in the last three years. We also have central banks, especially the Federal Reserve, that are running losses. And I believe we are now in the fourth year of losses for the Federal Reserve. That's unprecedented. That has never happened before because how do central banks make their money? Does anybody ever ask that question? And it's actually pretty simple. It's senior, right? It costs well this happens to be a $10 bill, but if there's a $100 bill, here's one. Okay. It costs $9.4 to print a $100 bill. Less to push a button and create it. Now, you and I have to work a hundred times harder for this. But that difference between the cost of creating that money and the face value of that money is central bank income. And that's what they use to fund their operations. And whatever they don't use up in a year goes to the Treasury. And so we are now in the fourth year of massive losses at the Federal Reserve and their inability to transfer any of that excess to the Treasury. But look at how much new money they've created. Why are they in losses? >> The big question. The big question. What do you think? >> It's it's the losses on on what they're sitting on on all of that debt that they bought at Zer. But that's a little scary, especially as this whole situation begins to expand and more and more debt is piled on and you've got the corporations that are now issuing these stable coins buying this debt. What happens when they have to sell it? These are not these are not entities that are there solely to support these markets. Can they just invent a deferred asset and and push its losses into the future? Isn't that the definition of just kicking the can? >> Well, that that's what they they kind of do. But look at the the point is they've created more money than they ever have before. Their income is based on the cost of that money and the face value of that money. How in the world are they running losses? I don't care where they put it on their accounting books. I'm just saying how in the world I mean, and I don't hear anybody question this. >> Mhm. >> I haven't heard one person question it. Now, of course, I haven't listened to everybody in the world, but have you? >> No. No. No. This is This is why we get guests like you, Lynette. There's a there's I also want you to explain this clear distinction between and you've made it clear for the audience before between silver and gold saying silver actually maintains your standard of living and gold obviously expands it. Just talk to me a little bit about the mechanics of that. I mean in a reset how do these two metals perform their different roles? Uh what are you preparing for? Well, historically, yes, you the good thing about at least the data up to this point is that through the Bureau of Labor Statistics, the BLS, I can go back and I can pull a a food basket and it's the same food basket, right? So, I pulled it from 1913 to the last one I did, 1925, I mean, a couple months ago. and that food basket and and even though the BLS's numbers are sketchy, okay, they're what I can use for consistency sake, right? >> So that food basket had gone up something like 2500% over that time frame. Spot silver, manipulated as it is, was up about 3,000%. So that's why I say it maintains your ability to buy that same stuff. Spot gold manipulated as it is, is up over 16,000%. So not only does it maintain your ability to buy the same goods and services, it actually expands your ability. Neither one of them reflect the true fundamental value because a rising gold price as the primary currency metal would reflect it does reflect the falling purchasing power value of the currency. So governments have to keep it suppressed because they don't want you to understand what's happening because then again you would make different choices. However, as confidence in the dollar is lost then or any currency is lost, then people are trying to figure out what they have to do to maintain that. >> So, primary currency metal and this is also the metal that they do these overnight resets. They do it against gold as the primary currency metal which is indestructible which is one of the reasons why it is the primary currency metal. >> Silver gets used up in manufacturing. So, it is the secondary. And you know, I I get a lot of questions on the gold to silver ratio. And and initially here, this is my 20th of an ounce, $1 gold piece. I think you can see how teeny it is to an ounce of silver. So, this is the original. And that gold silver ratio, I'm sure we will see it grow more narrow for a period of time. But as the hyperinflation kicks in and people become more aware of it, then what happens is it expands again. So gold really does protect you much better in a high in every circumstance frankly. And and one way that the individual can test this on their own regardless of what I say is go into any currency exchange website. I happen to use xie.com, but you can use anyone and they're free. So, you go in there, pick a currency, any currency, and you know, they have it as shorter term, and it goes out, the one on XE goes out to 10 years. So, that's as far back as you can go in there. >> But, you put in the you put in the currency that you want to look at and put in against US dollars because the dollar still is officially the world reserve currency. put in spot silver for that same period of time, put in spot gold for that same period of time. One thing you will see, I've seen it a 100% of the time, is that spot silver and spot gold always outperforms the spot dollar. >> And then I'd say probably about 90.3% of the time, spot gold outperforms spot silver. But I have seen that flip-flop a little bit and it's usually by a very wide margin. And so for me personally, Spot is my choice for my barterable portfolio. So this is what I would take to the gas station. This is what I would take to the grocery store. Actually, I'd take probably more dimes to the grocery store because it's easier to put two dimes together than I'm not able to break that in half, right? So um I like silver for my barterability and my personal barterable portfolio for myself and my two daughters is 10 years worth of barterability and we can we have it all defined in our um in our salmon money strategy. And then I have barterable which fractional raw gold for things like property taxes or chronic illnesses or paying off a mortgage or things like that. So by a wide margin, my investment portfolio is in the collectible coins because it was just tested recently when uh the world thought that we were going to impose 39% tariffs on imported gold through Switzerland. >> Yeah. >> Yeah. What was it? It was the bars. It wasn't collectible coins. It was bullion. it was monetary gold. So I believe that it has a level of uh protection and since the US has a history of confiscated gold, we've done it three times. So to me that's that sets a historic precedence and even though they backed off from those 39% tariffs because that's what they do, right? You dip a toe, you see what the reaction is. Do I need to pull it back or can I keep going further and further and further? So that's I believe what it was. But I love the fact that it tested the monetary gold and not the collectible gold. That was great for me because it it was for me another element of proof on how I can keep my gold and use it in the normal marketplace to expand my wealth base into income producing assets that I can't outlive and my children I can pass it down as a legacy to my children. Ah, Lynette, I could talk to you all day and we got still a little bit more to get into before we take up your whole hour. But before we move on to I wanted to ask you about these silver price slams, but before we do it, I mean, back in 33, 1933, obviously Washington confiscated that private gold, $20 an ounce and revalued it to 35 kind of robbing the public with the 36 trillion or 37 now in debt that we talk about in central banks again hoarding gold. Do you think governments will try to do something similar in the next crisis? >> 100%. There isn't even one teeny weeny doubt in my mind because there are over 4,800 currencies that have done this. And I don't think this time is different. But I do think that this time it will be a globally coordinated effort because when one country does it, it would be like a domino impact anyway. And we certainly saw since 2008 how central banks can coordinate and work with each other. And frankly, Jeremy, that 37 trillion, we are not talking about any of those, I don't know, quadrillions of derivatives that are written against that debt. >> And I'd also kind of point out that if you think that that's all of the debt, there's this bridge in Brooklyn. I don't really own it, but I'd sell it to you. I wouldn't really sell it to you because I have more ethics than that. However, um I don't believe it's only 37 trillion, but I I'll use that data for calculation purposes. >> Okay. >> No, I hear you on that. And I mean, as we talk about if the paper markets kind of dominate prices and these same banks can slam prices at will, isn't the system kind of rigged by design, isn't the only safe move then for investors to leave the paper game and focus on the physical gold and silver? That is exactly the choice that I have made. And keeping in mind that I'm an ex-banker and an ex-s stock broker and I consider myself a technician. So I I believe I can read the technical language of the markets, but I am not a short-term trader and I don't buy in to the lies. I just don't. Yes, I I personally do not own any stocks or bonds or ETFs or mutual funds or annuities or any of that fiat money garbage because I am crystal clear that we're at the end of this currency's life cycle. And once they've gotten all the purchasing power, which essentially they have, then they must attack principle and that's what's coming up next. And so yeah, you got to get I am in safety and it's not just gold and silver. >> It's also food, water, energy, security, barterability, wealth preservation, community, which is arguably the single most important part of the mantra, and shelter because these are the things that we need to lead a reasonable standard of living. And this is this is what I talk about all the time. Local community to create shorty in all of those eight areas. Global community to create sound money in the system that and sound money is simply this. It is gold and silver that because it's used in every area of the economy, governments and central banks cannot inflate away. It is above them. That's where you need to be right now in absolute safety. >> All right. So, if we were to do the contrarian talk just because we have to. I mean, let's talk about the digital wild cards because obviously central banks are buying physical gold. Much of the public and Wall Street are still focused on digital assets. None of the 4,800 collapses that you've studied involved a non-svereign digital competitor like Bitcoin or a tool of potential surveillance like a CBDC. Do these new technologies break the historical pattern or do they just simply accelerate it? >> They accelerate it and they make it much much much worse. >> You know, I mean, think about it. This is so simple money. It's used in every single area. It's physical. It holds energy. And we do know that we have both an energy and water crisis on a global basis as well as a food crisis. But these digital currencies, the more complicated it is to understand the currency, the more ability they have to use them for abuse. And you know, when you stop and think about this system, it's 1.00. And maybe it can go out uh in in bookkeeping a few more zeros. But when with the advent of this stuff, which I will point out how much the visible representation of this is happens to be Bitcoin visible representation looks an awful lot like an ounce of gold, doesn't it? >> Right? They want you to think that these are the same things. But I'll tell you right now, I am not an engineer. And not only am I not an engineer, I am not a specific kind of engineer to understand the algorithms and the formulas inside of this garbage. Which means that they can easily take advantage of me and I would not have a clue. Just like we've been taken advantage with this stuff. And people don't understand this. It is worse. And by the way, Jeremy, I would say that it is not just central banks that have the ability to do surveillance money. I think all of these corporations in tandem with AI that knows your personality, studies how you think, can nudge you in the direction that they want you to go in with over overlapped the digital, the AI, and then the the um the um smart contracts. Before you know it, you're carrying all of your wealth on your phone and AI is nudging you to buy that new shirt or buy that boat. You've got all your equity on your phone. They've been talking about this. I think I first talked about it on air in 2015. >> Um, and you've got all your equity on your phone. Eh, it's just a little bit. I have all this equity. Before you know it, you get notified from your smart contract that you no longer own your house or your car or whatever else it is that you have allowed them to tokenize, >> right? >> And digitize. And that's why the W the World Economic Forum's prediction by 2030 you will own nothing. >> Yeah. What a time to be alive, huh? Well, you will over in Arizona, Lynette. Um, okay. Okay, we got a couple of things to get to before I let you go. One of them is we are I just wanted to because it's an interesting point. I just get your opinion on this. I mean, we're seeing that clear divergence. The West is focused on digital asset ETFs and the East seems to be focused on accumulating physical gold. I mean, what's happening? Is this the new front in the global currency wars, a battle between digital versus physical concepts of money? Like >> I I would definitely say that there is a huge battle that's going on. Um, and you know, I don't know if the people in the West have absolutely lost sight of any truth because the lie has worked so well for so long. Um, I I can't really explain it because it's clearly not the choice that I've made. You know, I feel very blessed that I happened to stumble across non-doll denominated bonds in 1987. Honest to God, had that not happened, I would not know any more than anybody else. This is not something that they want you to understand. Um, so it's it's really, you know, sometimes power goes to people's heads >> and they become think that they're more godlike. And I mean, I think that could be what we're experiencing, but you know, get me to safety. >> Yeah. get me into physical with all of those other pieces because you can't really eat gold and silver but you you can become your own central bank. >> Yeah. >> And create your economic stability inside of that and then that community piece which is something else that's really been you know divide and conquer. if we're not talking to each other, if we're not having these conversations, even if we disagree, right? I I love the disagreements. They have as much validity. Let everybody hear all of the sides and then step back and see what feels the most right for you. We're a trading economy. >> That that's when you're looking at the West, it is all about a trade. It is not about value. >> Yeah. Yeah. Of course, we're all we're going to get back to >> we're we're all humans, too. I mean, we've talked about the data, the debt, the the assets, but you argue that this is a human pattern. Let's end with the human element. I mean, looking at all the cycles that you've studied, what is the single most common mistake that ordinary people make when they begin to realize that the official story is untrue? Oh, the Okay. So, the mistake that they make when they realize that it's untrue. Well, actually then they they double down on the fiat money lie because and you'll see and I do think that we that we've entered this piece and that's the melt up phase where you see the crypto markets going up in terms of of fiat money, dollars or wherever you are in the world and the stock markets etc. Valuations don't mean anything. Central banks have trained the public to buy the dips no matter what. And I think that's the mistake that they make, thinking that that is going to maintain their ability to purchase when it really it really doesn't. And when they do that overnight reset, those markets reset real fast. Real fast. And you're in you end up with nothing. >> Yeah. Yeah. Just holding the bag. Um sad state. I mean, you called this wordopium when we spoke in January to describe what was kind of holding that system together for after eight months of crisis and intervention. What is the state of that opium today? >> I think it's alive and well. >> Yeah. >> And and I think that it just puts you in a much worse state because insanity is defined as doing the same thing over and over again and expecting different results. Some people might call me crazy, but not insane. >> Annette Zang, thank you for your time. I appreciate it as always. I could have spoken to you for even more things. I got notes and notes to get through, but of course, we'll have you on for a part two. Hopefully, it's before seeing you in Vancouver at that annual conference. And you never know, maybe we can bring Kitco down to Arizona for a visit. >> That would be awesome. And if you did, we could go up to my bugout house. >> Love it. >> And we could film from there. We could do some fun things. >> We got our producers watching now. I'll I'll talk to them. I'll get it going. Thanks, Lynette. Appreciate your time today. >> I appreciate you having me. Thank you so much. It's good seeing you. >> Thank you. You too. And of course, do you think the US dollar is entering its final stage? Let us know in the comments. Don't forget to hit the subscribe button for more interviews like this. For Kitco News, I'm Jeremy Saffron. Thanks for watching. [Music] Heat. Heat. [Music]