Steve Bannon Endorses Birch Gold Group

We’re very proud now to bring in Philip Patrick from Birch Gold. He’s their precious metals specialist. And I want to talk to you, this is very disturbing signs.

We’ve talked to Steve Cortez, a lot of people that advise us on finance here, Patrick. And this is about this coming, I think, inferno that we’re going to hit because of this outrageous six trillion dollars now of spending to boost aggregate demand with. They’re telling us now another two to four trillion to come.

And they’re all running for the hills how this is going to be paid for. So the first thing is the Fed. And I want to make sure you explain to people the Fed has had the federal head of the Federal Reserve said the other day he’s going to keep long.

He’s going to keep long term interest rates close to zero. Guess what? Surprising. He’s just picked a random date through the 2022 elections into 2023.

For people out there, what kind of impact is that going to have in these continual low, negative or near zero interest rates? Look, I think it’s it’s going to have a significant impact. A lot of people are asking whether the Fed are going to actually commit to that. And I think they have to for for a couple of different reasons, quite frankly.

The first is they need to motivate people to spend to keep the economy going right. Low interest rates encourage people to take money out of savings, invest that money in the stock market, the bond market. It fuels activity and essentially keeps the markets propped up.

They’ve been kicking the can, as I think, you know, down the road for quite a while here. The second reason, I think, is a big one. All right.

And it boils down to debt, government debt. National debt is approaching 30 trillion dollars in today’s climate. It’s manageable because obviously interest rates are low.

The average rate of interest on our federal debt over the last 30 years has been closer to five percent. If rates get back to this level, obviously the interest payments on our debt start to become untenable in relation to tax revenue. So I think they have to keep interest rates low, quite frankly.

When they keep interest rates low, help me understand, they keep interest rates low because they can set the interest rates for the short term. But the market gets up, the market gets a vote. Remember that the enemy always gets a vote on your strategy, right? Talk to me about the 10 year bond.

Aren’t we seeing that the markets understands what the scam is, understands what the game is? And are they are people that have to buy and sell and live in this market of bonds? Are they buying into what the Fed’s doing right now? Look, bond rates are incredibly low. You buy a five year or 10 year treasury today. I think I looked at a five year note the other day.

It was paying zero point eight percent growth annually. I mean, it does nothing to keep pace with inflation, with the cost of living. Bonds don’t provide the hedge they used to do.

And obviously it’s a sign of where they think the markets are going. So the bond market for me is very problematic in today’s climate. What about that? What about it? What about the percentage rate of in the 10 year treasuries? Aren’t they sure? Aren’t they implying that the bond market thinks there could be big inflation on the because people have been saying for years, hey, you only have a thing of hyperinflation because of the Obama bailout in 08.

Now this six trillion dollars have been spent and not just that. People forget we’re spending four to over four trillion dollars a year annually in a federal budget. That’s not going down.

In fact, they just put in, you know, they’re giving a wink and an eye to earmark. So the spending is just the orgy of spending is we’re just at the beginning stage of that. There’s no controls now with one party rule at all.

And they’re talking about four trillion dollars to an infrastructure and two in and green new deal. Right. And look, they’re going to try to squeeze the wealthy, but there’s only so much juice in that lemon.

Right. So is the bond market is a 10 year treasury. Are they indicating to us that the smart money thinks that inflation may be may be about to explode here in the next couple of years? It’s absolutely an indicator of that.

And I think quite frankly, it’s unavoidable for the reasons that you’ve mentioned. Right. Low interest rates in isolation are not necessarily an issue.

You couple that with with high inflation and that starts to become a big, big issue. As you mentioned, it’s the scale of the money that’s been printed over the last 12 years is unheard of in U.S. history. We printed more money in the last 12 years as we had in the entirety of U.S. history prior, all combined together.

Now, it sounds like a wonderful idea, right? The government owes money, they print money, they service debt. There’s no consequence. Sadly, money doesn’t work like that.

Right. The more money you print, the more you throw into the system. It dilutes the potency of that currency and it ultimately fuels inflation.

There’s a guy called Alan Meltzer, who was a Federal Reserve scholar at Carnegie Mellon. I think he summarized this point very well. He said, look, never in history has a country that financed big budget deficits with large amounts of central bank money avoided incredibly high levels of inflation.

So it feels an unavoidable consequence. I just want to go back and once you repeat that to the audience, I don’t even know that statistic about the amount of dollars, amount of money has been printed, but in the last 12 years is more than an entire history of the country. Is that is that the point you’re making? That is absolutely correct.

More money printed in 12 years than the entirety of history prior. Listen, this is what this city doesn’t get because not a lot of finance guys here. But here’s what I want to make sure the audience takes away in the holiest week of the year.

The thinking downrage or I’ll try to signal not noise is that the reason that we have the ability to do that is where the prime reserve currency, every transaction throughout the world’s got to be converted into dollars in order to take place. The greatest export we have is not our manufacturing because we got it on Wall Street, gutted our manufacturing and shipped it to China so that the poor Lao Beijing is now the slave labor of the party of Davos’s business model and in the in their controllers are the criminal element, this transnational criminal element that is the Chinese Communist Party in Beijing. But being the prime reserve currency allows you to do certain things.

The day we’ve not we don’t become the prime reserve currency, we are like Argentina. Then you can’t just sell six trillion dollars of bonds or two trillion dollars of bonds. Right.

You can’t do it because there’s you have to jack up the interest rates so high then you have then you’re forced, you’re forced to get your house in order because you become like Argentina and inflation explodes. Philip, I just want to ask, we’ve got about 30 seconds here and I’ll hold you over the break. Yeah, the Chinese and the Russians are meeting this week and the first thing they’re talking about, we don’t know if it’s crypto, we don’t know if it’s a gold backed RMB, we don’t know if it’s a petroleum backed, but we got to get off the U.S. dollar because the Americans don’t take it seriously.

The Americans are devaluing this dollar every day by the way they’re keeping their financial house. Am I incorrect in saying that? Or is that essentially what’s going on in the world? They’re trying to get off the dollar because the dollar is being devalued. You’re 100 percent correct, and it’s not as recent as as some might think, the Russians and the Chinese have been putting pressure and, you know, they’ve signed bilateral trade agreements to trade between themselves outside of the U.S. dollar.

And I think it’s a matter of time. So you’re spot on. Hang on one second.

We’re going to bring back Philip Patrick, Birchgold’s analyst. Be back with us in a second. War room pandemic with Stephen K. Bannon.

The epidemic is a demon and we cannot let this demon hide. War room pandemic. Here’s your host, Stephen K. Bannon.

OK, Maureen Bannon, you’re Maureen, you’re still there. What are you putting in live chat right now? You’ve got something update on the Dallas story. What are you putting in live chat? I am I’m putting in the contact info information for Reverend Edward J. Burns.

Of the diocese of Dallas. OK, so you got the email and you’ve got the phone. So either email it or call it.

We’ve got we have to have Deirdre Hairston’s back. OK, thank you very much. By the way, for here’s the thing.

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Remember, the work on oneself begins with oneself and that would be you. So take action today. OK, we’re turn back to one of my favorite topics, and that is the incredible lack just the the the in this city, the lack of seriousness.

You know, Bill Maher had the great thing from Lawrence of Arabia. You’re a silly people and it’s our leaders in Beijing. They’re dead serious.

These gangsters are dead serious in here. It’s it’s it’s not serious. And what is happening to the finance? What’s happening to the balance sheet of the Federal Reserve? What’s happening to the dollar? And they just continue to talk about it.

Let’s talk about a four trillion dollar, you know, infrastructure. I’m all for infrastructure is one of my big things, the White House. But hey, you’ve got to be logical about not on top of six trillion dollars of just spending to take care of aggregate demand.

Our guest is Philip Patrick. He’s the precious metal specialist and analyst over at Birch Gold. The dollar is is is being trashed and is under huge assault.

And we know that the Chinese Communist Party and trying to control the Eurasian landmass has got their partners in Pakistan and the mullahs in Iran, Turkey, Erdogan and Russia. Now they’re all with the vassal state of North Korea. They’re all trying to figure out the one belt, one road crypto, all of it.

An alternative. It’s not easy, right? Because these are not economies that got a lot of depth to them and their dollar and their their currency certainly does. But it’s under assault.

That being said, then what are the alternatives? How and I know you’re you’re not a day trader in the Birch Gold guys. You’re not day traders and spot things of gold and silver. But what why is precious metal? Why are you guys why is it even an alternative for people to think about in days when you see what could potentially happen with inflation or more importantly, what could happen with the devaluation of the dollar? Look, I think you summarize, it’s not that gold and silver are better than other options.

It’s all about the climate and what’s going to be most conducive. And I think today we’ve highlighted many of the issues, right? We have inflation as a concern here in the United States. We have dollar devaluation as a concern here in the United States.

We have a stock market that’s two and a half years into the longest bull run in history. We have concerns about corrections that it’s in those sort of climates that safe haven assets like gold and silver perform. Right.

So they’re conducive. Right. To give you an example, when stocks crash, people often flood towards safe haven assets.

They can increase in value. 2008, we saw a 50 percent decline in the equity market. And within 18 months of that decline, gold and silver prices doubled in value.

What is the technical definition of inflation? Essentially, it is the rising cost of commodities and services over time. What are gold and silver? By definition, they are commodities. By definition, they keep pace with inflation.

Gold specifically and the dollar have a directly inverse relationship when the dollar falls in value by proxy gold prices increase. So they can be very conducive for climates like this. How do you when you do the analysis of the dollar as you project out, is it the continual deficits we’re talking about? Because right now we’re going to spend another four trillion dollars, four point two trillion dollars in just a regular federal budget.

You’ve still got this this drop in aggregate demand that we keep putting these bridging mechanisms, which is now at six trillion dollars. And they’re talking about another unbelievably four trillion dollars in infrastructure. And then the second is kind of the Green New Deal, which I think is essentially social engineering because they don’t really have a specific plan of what they’re trying to do.

What kind of pressure do you think the dollar is going to come after? It come if all that by this fall of all that’s done. Look, the dollar has been under pressure for a while. We get very comfortable with our position as global reserve currency.

Right. But I think any student of history has to understand that this circles right before the U.S. had it. It was Great Britain where I’m from.

Originally, they had global reserve currency from 1815 until 1946 at Bretton Woods. Prior to that, I think Portugal, France, Spain. So global reserve currency circulates throughout history.

I think on average, one nation will hold it for about 90 years. So we’re coming up to the point where just historical averages suggest we lose it. And it’s the things that you mentioned earlier that I think are key.

Right. Russia, China, two of the largest emerging economies have been putting pressure for a long time now to remove the dollar as the standard for international trade. The OPEC, the oil producing nations have been putting that pressure on as well.

And the reality is, you know, as much as a world run by China frightens me, you have to think about it impartially. Right. If you’re China, Russia or Canada, you’re holding trillions of dollars in reserve and you’re watching the U.S. government, the Federal Reserve printing money, debasing currency.

It becomes a problem. Philip, how do people get more, more access to you in your thinking, your analysis? How do you how do they get to your website? How do they get to you? Of course. So our website is it’s a great resource.

There’s a lot of good resources there. It’s www.birchgold.com. You can give us a call. There are a lot of specialists like myself.

We’re here to guide you through and help. OK, we’re going to stay on top of this thing with the spending is, I tell you, because the economy dries so much. This thing is scary and it’s out of control.

Philip, thank you very much for joining us today. Thank you for having me.