11. Why Gold is Going Up…Waay Up

Welcome to RIGGED, the podcast that helps you RIG the wealth game back in your favor. I’m Terry Sacka AAMS of Cornerstone Asset Metals.

(00:05):
This is RIGGED. I’m Terry Sacka. Today, we’re going to talk about gold and why it really matters. And what’s really going on. What’s going on with all the money printing and the gold prices continuing to rise and what it really means to you, your future, basically your savings, your standard are living in the future. So let’s get into that because this is going to be an episode that will definitely benefit those that are concerned about buying power in the future. Meaning how much is your savings and your investment really going to buy you? It’s not what it the number says on the paper in your portfolio, but what does it translate to, and really by you, but what is really going on out there. But, you know, we know, obviously Gold’s going up. We know we have the Corona virus crisis, and then we know, you know, the markets are, were crashed and he, you know, they’ve come back.

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And what does it really really mean to us as individuals and how will it really make a difference in our life? What we have to do is go back to really 1790. Let’s just say, go back to the beginning of it all, where we had a population and we had debt. And of course, you know, we had all these issues in the course of mid 18 hundreds. We had this civil war, but what’s really fascinating about our us debt to GDP versus really our population growth is that the only time that we have seen the debt, the GDP rise way above normal way above our population growth way above our ability on our GDP to function was world war two. Now we know in world war two, we had at that point up to 70% of the world’s wealth, well, the world’s gold. And then of course we get what wrapped into war, which was interesting.

(02:06):
And then we blew a lot of that wealth, but it was in world war two. We were actually 119% debt to our gross domestic product. What we produce. We had really gone into that, but at that time, and that was considered, if we all remember the, the history of it, world war II, who was considered the Epic of financial, like let’s buy the war, bonds, let’s support the nation, let’s support this war. And we really went through a long period of financial suffering and our debt was explosive. Well, what’s astonishing today in 2020, not just by the Corona crisis, mind you, we are currently 155% debt to GDP. We’re literally 30%, 35% higher than we were world war II. Now let that sink in 35% higher. Now we’re going back all the way to 1,790. And the only spike we had of this magnitude of severe debt to our ability gross domestic product was world war two. And today we’re really technically not at a war, right? But yet we are 155%, 35% higher than what we were in world war two. That’s pretty astonishing. Now what we’re trying to do is outline why this is so valuable because if you have retirement or if you have obviously over the next 10 to 15 years, a projection of a standard of living, what that paper currency note in your wallet, in you, your portfolio is actually going to buy you. This is going to matter. This is important.

(04:10):
The reason this is happening, isn’t just the COVID crisis. I really believe that I’m not going to get on the bandwagon and say the COVID crisis is something that was completely plotted. But I will tell you this. This is the fact in September, the banking global banking system was already collapsing. It was in the repo market repurchasing agreement market, where banks go overnight to borrow money from other banks. The overnight interest shot up to 10%. The banking system was collapsing and the federal reserve came in and started bailing the banks out to the tune of hundreds of billions of dollars during the holidays. Now, here we are at, this is a systemic global banking crisis. And then miraculously comes this virus. Now I’m not saying it’s correlated and not going to get into the details today of what I think about China, letting it out to the world, but not letting anyone travel from Wu Honda, the rest of China.

(05:08):
That’s another conversation. What I am saying is the world definitely took the opportunity to blame the COVID virus. And that’s where I truly believe more than anything else because the hospitalization and death numbers do not match the paranoia and the fear. It doesn’t match. The fact we shut down the world’s economy. I believe that the malfeasance of the banking system was able to now divert the attention. Oh, it was the virus that caused the financial problems, not our malfeasance ever since the virus hit the federal reserve has stealthily bailed out the banking system to the tune of three point $5 trillion. Now think about that for a minute, three point 5 trillion. We have bailed the baking system out. Thank God they put a little bit of love towards we, the people and gave stimulus and helped us through unemployment and is trying to help us. But folks, they have overwhelmingly bailed out the financial system more than we, the people, and to really put it in perspective, it really goes back to 2008 in what they call the great recession, which was really the great depression.

(06:36):
You just didn’t know it because they gave debit cards instead of making you stand in bread lines. But this one was coming from the actual levy economic Institute at Baird college. And they finally did a real deep dive analysis on what happened in 2008. And in 2008, the federal reserve bailed out the world’s financial system. You ready for this to the tune of $29 trillion? Wow. 29 trillion is what we really know that’s done in swap line loans, currency swaps, and all this other technical jargon. But in the end of the day, folks, it really doesn’t matter because what they really did was dilute your ability to save. They stoled wealth from the world citizens, and it will be done through inflation, even though we’re in deflation, we’re in inflation. It’s the craziest time I’ve ever seen 29 trillion in 2008. And now here, we got the COVID crisis and you have central banks globally.

(07:50):
Now stimulating the world to the tune of trillions and trillions our own federal reserve, not only trillions, but then we have congressional trillions. And now I know this trillions can get washed out. And all of a sudden we stopped thinking, Oh, well, Chilean here, Chillionaire folks. That’s 999 billion per trillion. And yet we have this magnitude of number hitting us. So what it really is telling you is that the dollar currency note you hold in your wallet and that your stock portfolio is actually based off of is really diluted. If you want to put it in perspective, do it like this, take a jug of cranberry juice and dump it in the toilet. It’ll be pretty much red. Take that same cranberry juice and dump it in an Olympic swimming pool. It will dilute itself out. You will. You probably won’t even notice, right? That’s what’s happening to the U S dollar and the world’s currency systems.

(08:50):
That’s why I contend. We are near a global currency reset. That’s going to change all the valuations of currencies currently because it’s impossible to dump that cranberry juice in Olympic swimming pool and not have an impact because you’re not going to see it, right. That’s what’s happening to our dollar. We are printing so much monetizing, so much of the currency, that what your saving for the future and what you’re saving for the standard of living. You think you’re going to have in retirement is in severe jeopardy. And this is why you’re seeing gold break away from this currency system. The best example I can give you is the gold global reserves held in gold vs. Global reserves held in U S treasuries, which used to be the daddy of, of debt was, was a, usually they kind of stayed together. Well, it wasn’t just here in 2019 and summer of 2019 gold reserves started shooting through the roof and people started dumping us treasuries.

(10:04):
Currently today, gold is up 14% year to date for the year yet the stock market is down 14% year to date. That’s actually a 30% swing in value. Now keep in mind that the bond and equity markets are 200 trillion in value and the gold market is less than 5 trillion in value. So there’s a, there’s something in play here. Now, the manipulation is extraordinary. The off book accounting, the whole entire system is rigged and I get it, but what’s coming in gold is going to be astronomical. We will see tremendously higher gold prices, not counting silver when silver is allowed to be let go. Soon as they unwind those positions and Scotia bank finishes unwinding their historical short manipulation in silver. Silver is going through the roof. That’s why I highly recommend we are sponsored by cornerstone asset metals. I highly recommend registered for information. Getting started the process of being diversified.

(11:10):
If you’re all in, in the paper system right now, you are an extreme jeopardy to what we call inflation tax, because gold is going to continue to rise. Mainly because of these currencies are going to collapse. I wouldn’t be surprised if we have a short term run in the dollar again, but it doesn’t matter. The whole system is rigged right now. So there’s no real functioning economic reality to the numbers. The bottom line is central banks have created false markets since 1913. If you go back to 1830 and I’m going to wrap up with this because this is pretty extraordinary. But when you go back to 1830, basically 18, and you come all the way up to 1913, we had something called a trend line with over a 75% confidence, bam, where you would see at the point on the trend lines where stocks were high and gold was low in price.

(12:08):
And then it trends down where gold was high and stocks were low. And we had a lot of real gold high Darren of course, the mid 18 hundreds, which was the civil war period. And then we had high stocks during the 19 hundreds leading up to the great depression, but it stayed in this confidence band. It was fascinating how it trended up and down really for almost 120 years, and then walk in the federal reserve in 1913. And we’ve had three radical up and down swings over the last 100 years. Obviously the first being the great depression where stocks were high and gold was low, and then it collapsed and gold became very valuable and stocks were, we know very low, right? And then we took the last handful of decades after that, running up into the sixties where stocks were high and gold was low, and then an absolute collapse in 1980, all the way down where gold was the asset to hold.

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And then since 1980, we’ve been going through all this fake monetary system of printing and diluting our wealth. And then we’ve risen so high on the trend line. Stocks were a high and gold was low. And then we had the 2008 collapse, which didn’t really correct properly because they didn’t allow it because they went in full overdrive on the rigging and the manipulation of the monetary system. Now we’re sitting here teetering, where we still are at stocks, very high, but yet gold is continuing to rise. And if we follow this trend line, going back to 1800, we are eventually going to see a half a point or one to one ratio, meaning gold and the stock market will be equal. Think about that. Folks gold in the stock market will be equal. Where’s that value going to be? So if you’re on the wrong side of history, if you’re on the wrong side of the fence on this one, it’s coming gold will continue to rise.

(14:08):
If you saw what was going on underneath in the supply chain globally, you would know it is so important to diversify your portfolio. I would say a minimum of a third. That’s just my opinion to each their own on that walk, but to get diversified because we will see that ratio one to one where stocks and gold will be equal. The question is, what side of the fence will you be on? And what will that price be? So until next time folks, this is what’s happening in gold. And I would highly recommend starting the process of being educated and being diversified in tangible assets, if you have not done so, because by the time you around to it, it may not be available. So until next week, God bless each. And every one of you.

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