Ladies and gentlemen,
welcome to the
Solari Report.
I am really pleased
to invite Andy
Schectman here and
but this is also
a Miles Franklin
publication.
We’re gonna publish
it on both websites
at the same time.
Andy, you and I had
a conversation, it
seems like a short
time ago, but it was
really, was it six
weeks, eight weeks?
Yeah.
Maybe a little bit
less than that, but
it sure got a lot of
a lot of attention.
People sure loved
listening to what
you had to say.
I did too.
But it if you look
at everything that’s
gone on since then,
it just the world’s
changed remarkably
since that moment.
So I was really
glad that you were
available to come
back and do this.
So
I dropped everything
for you, Catherine,
and we had lunch
in in, and I
could assure
everybody you’re
even more charming
in person than
you are on online.
Thank you.
That’s very
kind of you.
So
she tells the truth.
Okay.
So let’s
just dive in.
Yeah.
W we obviously
you’re in the
precious metals
markets every day,
but my experience
since following
precious metals in
2000 is that whenever
you have war.
The drumbeat of
war gold drops.
It’s very
deflationary to gold
in the short term,
but of course, during
that drop, everybody
learns, gets quite
an education on
why they need gold.
And so it seems to
help in the long run.
But so I was
not surprised
to see the drop.
I think a lot of
people recently in
gold were surprised
to see the drop.
So tell us since
February 28th and
the war with Iran
started, tell us
what’s happened in
the gold markets.
Yeah, you’re
totally right.
I go back to the
first Gulf War.
I’ve been doing
this since 1989.
I remember being
in the Cayman
Islands family trip
with my family, my
parents first Gulf
War and gold fell.
And every single war
since then, the first
move is liquidation.
That’s what it is.
And the common
idea is that you
throw out the baby
with the bath water
for liquidity.
It seems in all
of these wars,
the lasting move
is inflation.
We were told
it would be $50
billion for a rock.
It turned out to
be 5 trillion.
And so I think that
what’s a little
bit painful is
that the United
States seems to
feel that inflation
more than others.
At least right
now we do.
I think the market
wants you to focus
on the headline
moving gold.
No question about it.
I don’t, I focus
on the plumbing.
On one hand oil
keeps flowing.
East China seems
to find supply.
Russia is still
selling their oil.
Seems that the
impact, economic
impact is hitting us
here more than we had
bargained for through
things like fuel
prices, the freight
insurance, and the
increasing inflation.
So how much though
of the liquidation
this time around
was paper?
Because you have
a paper market in
gold and silver,
but you have a
bullion market.
And from what I see,
there’s not a whole
lot of liquidation
in bullion.
It’s paper that’s
getting liquidated
mostly, but that
could just be
what I’m seeing.
The paper versus
the bullion market
is detached.
Paper market can
move price in the
short run, and it’s
the delivery that
exposes the reality
of all of this.
And even the Bank
of International
Settlements came
out and said this
move was largely
structural, not
fundamental.
It had a large part
to do with the
massive increase
in margins of about
300% in a month.
And also the levered
ETFs that needed
rebalancing at the
first of the year.
That both coincided
beautifully.
To me, Catherine,
it’s the
tremendous comex
delivery volume.
In March alone we’ve
seen about 12,600
gold contracts,
which is 1.26 million
ounces of gold.
And over 8,800
silver contracts,
which is 44.
Million ounces of
silver that are
issued and stopped.
That means delivered.
And it’s not just
delivering onto
Comex where some
of it stays, some
of it leaves.
In February, we saw
about 25,000,025
and a half million
ounces delivered.
We saw 30, almost
39 million ounces
leave the building.
160% of what was
delivered left.
Now this is every
single month.
If you put those
two numbers in March
with the month isn’t
even over yet, you’re
almost at $9 billion.
This is what
we’ve been seeing
every single
month over month.
But it’s not just
the United States.
The Chinese imports
for silver in
February after
silver got his
teeth kicked in.
In, in, in February
alone, 790 tons of
silver, excuse me,
in the first two
months of the year,
790 tons shipped, but
in were delivered,
imported into China.
In February, 470
tons, the highest
monthly import
volume ever recorded.
So silver’s getting
its teeth kicked in
and China’s vacuum
vacuuming it up off
of every shelf on
the planet at a past
never seen before.
And we’re seeing
the same thing
here on Comax.
The delivery
exposes the paper
price, which the
levered papers pri
paper price and
the removal of all
the leverage in
the system through
jacking up margin
rates, I think had
a, an effect on the
price that is in
no way reflective
of the demand at
the highest level.
The Central bank,
the commercial
bank, the sovereign
wealth fund, they’re
standing for delivery
and using these
pullbacks as a
subsidy for sure.
So the since nine 11
we’ve seen the Gulf
countries blossom
into a real financial
center, even.
I would describe
them as a real
intermediary between
East and West and
of course, major
gold ownership,
major gold dealer.
And yet they
thought their
security was
guaranteed
by the West.
It turns out
that didn’t work.
Was any of this
liquidations by
the in the Gulf.
How did the
Gulf impact,
I, I would say
the Gulf is it’s
gaining power, not
just because of
energy and money,
but also leverage.
And as crazy as it
sounds, when I think
of the Gulf, when I
think of United Bear
of Emirates and
Saudi Arabia, it’s
almost as if they’re
relatively neutral in
a world where finance
and treasuries are
being weaponized.
I think when you
look at Saudi Arabia
as a full participant
of the Enbridge the
second expansion of
the Shanghai Metals
Exchange of second
fault is being built
in Saudi Arabia.
You have a, an
exchange in the
UAE Dubai that is.
Is gaining
massive volume
and credibility.
And really it’s
the expansion
of the Shanghai
Metals Exchange.
The first one was
built in Hong Kong,
which is relevant
because when metal
leaves, China has to
go through Hong Kong,
and again, the second
one being built
in Saudi Arabia.
But they are building
a Brinks, a BrickX
ecosystem where you
will have vaults
that will connect
all of the vaults
in the Middle East,
in particular Saudi
Arabia, United of
Arab Emirates and
all of the vaults
that will be in
multi jurisdictions
that will allow
settlement outside
of the dollar in
local currencies.
Over Enbridge and
over the cross
center bank payment
system sips and will
settle imbalances
in currency and
in trade in gold.
And right now.
China has made the
yuan immediately
convertible into
gold for central
banks without
going to dollars.
So if you, Saudi
Arabia sells their
oil to China and
China pays for it
in digitally, Juan
Saudi Arabia can
immediately convert
it into gold.
And I think they’re
realizing not only
that when they
watched what happened
in Afghanistan,
where we left in a
very I Unharmonious
way, I think it woke
a lot of people up.
And I think a lot
hinges on this
operation right here.
How does it affect
the hegemony?
How do countries
really feel safe
with protection
by the United
States anymore?
Or where they find
safety in numbers
and a lot of it
centers around the
Middle East, no
question about it.
Yeah, I think
it has a bigger
outsize impact
than maybe even we
realize right now.
You remember Wesley
Clark saying,
we’re gonna,
we’re gonna attack
seven countries
in five years.
Right after nine
11, about 10 days
after nine 11, I went
through the Pentagon
and I saw Secretary
Rumsfeld and Deputy
Secretary Wolfowitz.
I went downstairs
just to say hello
to some of the
people on the joint
staff who had used
to work for me.
And one of the
generals called me
and he said, sir,
you gotta come in.
You gotta come in and
talk to me a second.
I said you’re
too busy.
He said no.
He says, we’ve
made the decision
we’re going to
war with Iraq.
This was on or
about the 20th
of September.
I said, we’re going
to war with Iraq.
Why?
He said, I
don’t know.
He said, I guess
they don’t know
what else to do.
I said did they
find some information
collect connecting
Saddam to Al-Qaeda?
He said no.
He says, there’s
nothing new that way.
They just made
the decision to go
to war with Iraq.
He said, I guess
it’s like we don’t
know what to do about
terrorists, but we
got a good military
and we can take
down governments.
And he said,
I guess if.
The only tool you
have is a hammer.
Every problem has
to look like a nail.
So I came back to
see him a few weeks
later, and by that
time we were bombing
in Afghanistan.
I said, are we
still going to
war with Iraq?
And he said, oh,
it’s worse than that.
He said he reached
over on his desk, he
picked up a piece of
paper and he said,
I just, he said,
I just got this
down from upstairs,
meaning the Secretary
of Defense’s
office today.
And he said, this
is a memo that
describes how we’re
gonna take out seven
countries in five
years, starting with
Iraq and then Syria,
Lebanon, Libya,
Somalia, Sudan, and
finishing off Iran.
The last one is Iran.
And Iran is the
big leakage.
If you’re gonna
control the
financial system.
Iran’s the
big leakage.
So they’re
not in swift.
They’ve been
completely cut
off from Swift.
But their
difficulties
in accessing
their reserves
or transacting
globally is tough
unless the Chinese
and the Russians
let them through.
And what’s
interesting is.
They’re now saying
you can come through
the strai, but
you have to pay.
You have to pay
and you want, and
I’m wondering if
that’s because the
only since February
28th their currency
has fallen 40%.
So I’m wondering
if their way of
getting international
liquidity is by
collecting you on in
the straits and going
through China and
they’re being forced.
Into the
Eastern systems.
Yeah.
And that’s fine.
And I think
they would rather
choose that.
They’re members
of Bricks, they’re
members of the
Shanghai Cooperation
Organization.
They’re right along
the north south
corridor that was
built for finding
trade routes
that that really,
that the US Navy
doesn’t really
have access to.
And I think that’s
what they would
prefer actually.
Yeah, I, and I think
when you talk about
how this all plays
out, look, we invaded
a rock 20, almost
23 years ago, and
we’re still there.
We went there under
false pretenses.
So I think as
this shakes out
it’s the stakes
are pretty high.
I if we leave for
whatever reason,
and Iran still
controls the straits
I think it’s a
massive victory for
the bricks and a
massive knock on
the United States
knocking us down a
few pegs off the
hegemony level.
At the same time,
if this becomes a
long term war with
high energy prices
I think it, it will
have some very
adverse effects here
in the United States
with higher inflation
as a result of higher
energy costs, and
$10 trillion in
treasuries that need
to be refinanced
this year, when
we only bring in.
Five, 6 trillion
in tax revenue.
Not to mention
the deficit
we’re running.
At some point, it
just becomes absurd
that the World
Reserve currency has
to borrow money to
pay the debts that
are coming due, let
alone borrow money
for military, which
is purely discretion
to go around and
police the world.
It’s becoming a
situation that
is, is financially
mathematically
untenable.
And I guess we’ll
see how it all plays
up, but I do think
there’s more at
stake here because
of these points
than meets the eye.
Here’s the funny
thing, if you
there’s what’s
going on in the
military, but if
you look at what’s
going on financially
Iran is getting
drained by the.
Pinching and
squeezing of its
liquidity in the
drop in its currency.
But if you look at
the US, we’re getting
a squeeze by the
global de energy
depression and what
it’s gonna do to not
just our economy,
but all of our
allies, economies.
So both parties are
getting squeezed
financially, and
yet they seem to
be pitted in a
win-lose situation.
Because if the
US walks out,
that’s gonna be
very devastating
to its position
in many respects
around the world.
So you’ve got
this sort of win
or lose feeling.
And if you look I
hate to say this,
if you look at what
has happened to
countries let’s say
the United States
win, if you look at
what’s happening to
countries and how
the United States
wants to literally
implement the digital
control grid in
Iran, if you were
a thousand year
old civilization,
would you fight
to the death?
I would.
And and they want
to have oil priced
in dollars in that
region, obviously.
And it’s the last
are they clinging
to the petrodollar
dying hegemony.
Because many of
those countries, like
for example China
just signed up.
I know this is a
different region,
but it’s the
same argument.
They just signed up
all the countries in
Southeast Asia the
Asian countries,
which are 800
million people,
twice the population
of the us, China’s
largest trading
partner by far.
They signed them
up to the sips, the
crosser bank payment
system, right to
trade outside of
the Swift, to use
their own local
currencies and settle
in balances and gold.
That is the
entire thing.
Theory of what
they’re trying to
do with the bricks
is to open vaults
all throughout
the Belt road
initiative, right?
And then to trade
local currencies,
settle in
balances in gold.
But if we look at the
sips as an example
and see how that
would affect UAE
is part of bricks
and Saudi Arabia,
although they didn’t
fully accept it,
they’re straddling
because they are a
fifth member of the
Enbridge, which is
operational, right?
Which is the
cross-border
payment system,
which is 40% gold.
But if you look at
like these countries
in Southeast Asia,
which represent 35%
of global GDP as is,
they’re going to be
largely trading in
local currencies.
Meaning they don’t
need to hold as
many dollars,
therefore they
don’t need to hold
as many treasuries.
So settling in
dollars, right?
Not in dollars,
chips away at the
dollar the dollar
settlement status.
And then not holding
as many reserves
chips away at the
reserve status.
So this is a little
by little and
then all at once
type of deal, but.
The focus right now
of course is on
the Middle East,
but you’re already
seeing many in
the Middle East.
You can see what side
they have chosen and
while they haven’t
completely thumbed
their nose against
the United States,
they are definitely,
I think hedging
their bets with
a growing bricks
infrastructure
that seems to not
be losing steam.
Meet James.
He’s a CFO at a
mid-sized bank.
Last Tuesday, one
of his biggest
clients, a supplier
moving $2 million
across Borders
called Furious.
Why did my payment
get rejected?
There’s no fraud.
We’ve been partners
for five years.
James had no answer
because the real
problem wasn’t fraud.
It was his
compliance system.
Here’s what nobody
wants to admit.
30% of cross-border
payments, legitimate
ones get rejected
by compliance checks
every single day.
Not because of
terrorism, not
because of money
laundering.
Because the system
is broken, the
scandal, 95% of
those rejections
are false alarms.
That’s billions
in working
capital frozen.
Thousands of
legitimate businesses
going elsewhere and
millions of hours
wasted investigating
transactions that
were never suspicious
in the first place.
The question
becomes why?
Here are three
reasons this spiral
keeps happening.
First,
regulatory chaos.
A payment that’s
perfectly legal in
Singapore, might
look suspicious
in New York.
Same transaction,
different rules.
So the system flags
it to be safe.
Second, the
money spent
solving nothing.
Banks drop $274
billion every year
on a ML compliance.
That’s not a typo.
Billions yet.
False positives
keep climbing.
Why?
Because the tech
hasn’t fundamentally
changed.
It’s still
rules-based.
Still wide net,
still dumb.
Third, the
compliance stack
is stuck in 1995.
Every correspondent
bank screens your
payment again
and again.
Each one adds
friction.
None of them talk
to each other.
The rails can
deliver money.
In one hour.
Your compliance stack
takes three days.
That’s not
regulation.
That’s incompetence.
But here’s the
plot twist.
Some banks are
winning at this and
they’re not doing
what you’d expect.
They’re not
adding more rules.
They’re solving
compliance,
efficiency,
a completely
different problem.
They’re asking,
how do we screen
faster and better?
Not how do we
screen harder?
That shift from
stringency to
efficiency separates
the institutions
keeping clients
from the ones
bleeding them.
So back to James, the
banks that solve this
aren’t doing anything
revolutionary.
They’re just
thinking differently.
So we keep getting
reports that Saudi
Arabia, that mbss is
promoting the war.
In other words,
he wants the US to
aggressively pursue
the war with Iran.
They
haven’t, they I
haven’t heard that.
But it I would
believe that on
one hand they
seem to be getting
closer in terms
of their alignment
with Brix and the
Shanghai Cooperation
Organization.
However, they’ve been
adversaries forever.
And deep down,
I think when, and
that’s really the
part that I think
is hard for us in
the United States
to truly comprehend.
You’re talking
5,000 years of
built in hatred.
I don’t think that
ends overnight
just because of
financial interest.
Would it surprise me?
Not one bit.
No, it wouldn’t.
So another thing
we’re facing, Powell
indicated, so the
Fed held the rates at
the last meeting, but
you got the feeling
from what Powell
said, that he was
ready to take him
up again if that’s
what he needed to do
to flight inflation.
And of course that’s
that’s always.
Dampening of
the precious
metal prices.
So do you think
interest rates figure
into this at all?
It’s funny because
the media focused
on that, right?
The media focuses
that was the catalyst
maybe to really
this last drop where
and we’re ready to
raise if we have
to, as you said,
to your point it’s
interesting the media
focuses on that,
but they ignored it
over the last few
years when rates
were skyrocketing
from all time lows
to where they were.
And gold kept
rising in the
face of a strong
dollar and strong
interest rates.
So I would argue
in under normal
circumstances, yes,
it would if the
dollar was as revered
and sought after.
And the United
States was respected
and trusted.
Then yes.
But when you look at
a currency that’s 200
trillion in debt, and
a trillion seconds
ago was 31,688 years
ago, and we have the
fiscal responsibility
of a kindergartner,
and we go around the
world with a stick
instead of an open
hand and cooperation.
We are sanctioning
and we go around
and we call them
tariffs, but they’re
actually sanctions
masquerading as
tariffs on our allies
and on our foes.
And you get this
rhetoric, and
again, I want
people to understand
I’m a patriot.
I thank God every
day I was born here.
I do.
And I would I
hasten to think what
the country would
look like under
Harris and Walls.
I left Minnesota.
Because of
Governor Walls.
And so I would just
simply say that when
you get rhetoric,
like either Iran
deals with us or
they’ll be destroyed.
That’s the kind
of rhetoric that
you could argue is
pushing everyone away
from the dollar and
from the treasury.
So when you look at
a war like this in
all of these other
wars, one thing
happens that we’re
not seeing right now.
Normally we do
see that bump on
dollar as a rush
to liquidity.
People sell and
there’s a demand
for dollars.
But you usually
see interest
rates go down.
Why?
Because everyone’s
buying treasuries.
It’s the
safety thing.
But we’ve seen
interest rates on
the 10 year move
up 40 basis points
since the beginning
because at the same
time, there is a rush
to settle debt and
get liquid bumping
up the dollar.
Why are rates
going higher?
That means
someone’s selling
10 year treasuries
and I think the
world doesn’t
wanna hold our
treasuries anymore.
Right,
and that’s a bigger
indictment, I think,
to the argument
one, one of the
rumors from the
Gulf from one of our
subscribers is they
were told You better
not sell treasuries.
So they had to
sell some gold.
Yeah, and I, again,
ruling with a stick
and how long does
that last I look I
certainly not rooting
against the United
States, but I will
tell you that I think
it’s getting old for
a lot of the world.
The world looks at
us and says they
came in looking for
weapons 23 years ago.
They’re still there.
They destroyed
their country.
They’re toppled
their regime.
They don’t even
really let them
handle their
own natural
resource revenue.
It’s largely held
at the New York Fed.
This is why a Iraq
is making dollars
illegal in the
country that no banks
hold ’em anymore.
And if you trade in
them as a business
owner, you’ll lose
your business.
You’ll go to jail,
the whole nine yards.
They’re not certainly
thankful or extending
gratitude for
what we did there.
And look we leave
and there’s a vacuum
and comes isis,
and look what we
did in Afghanistan.
And you look
around the world
and that it’s
really not better.
The places that we’ve
been over there,
Syria, just these
things aren’t better.
And I think these
are the trends that
are pushing the
world away from us.
And then they take
a look and say, what
the hell happened
to that country?
We’re listening
to them.
With all the
divisiveness and the
stuff we saw the last
four years before
Trump administration,
the election
interference and the
immigration and the
lawlessness and the
two tier justice and
all of these things.
People look at
this country and
say, my goodness,
what’s going on?
And they’re fiscally
irresponsible
and they’re going
massively into debt
and they expect us
to take their debt
and their currency
when it’s being
destroyed and can
be taken from you.
The, these if
you think about it
logically, why would
anyone wanna hold us
treasuries right now?
Or dollars which
seem to have the
value proposition of
a melting ice cube.
So I do think that we
are witnessing this
slow de dollarization
that this will not
help it in any way.
One of the things I
wanted to tell you,
one of the great I
don’t know if it’s
a quote or a tweet,
Matt gets send, I
would like a choice
another choice
between a party that
wants to transgender
my child and a
party that wants
to send my child
to the Gulf to die.
People will laugh
at me for saying
this, but I mean
it sincerely.
I lived in Minnesota
for 50 years and
it once was an
amazing state.
It truly was.
And it was
never better.
And don’t laugh.
You might, when
Jesse Ventura was the
governor, and he
did things for the
state, give back
a surplus two years
in a row, big checks
make the license
plate tab tabs, like
virtually nothing.
All sorts of things
he did that were
logical, he was
laughed at because
he was a former
pro wrestler in a
Hollywood actor.
But he embodied in
my mind, logic and
and just the average
person who would
look at things from a
pragmatic situation.
You’re right, it, you
look at both sides
of the aisle and
you shake your head.
They’re all just
crazy in many ways.
And
no they’re, there’re
there’s, so there’s
like a handful.
Some of the
greatest people in
the country, but
it’s a handful.
A handful.
I agree.
Yeah, that’s it.
That’s right.
But the handful
is the minority
and doesn’t get to
really exert their
ideology against
the majority.
I don’t know.
I think Massey
getting the Epstein
Falls for Lucy is
pretty amazing.
He and Ron Conan.
There are
amazing things.
That’s right.
But nonetheless,
it just seems to be
that the majority
that is somewhat
insane seems to,
I, I think they’re
afraid or they’re
either bought or
afraid, but there’s
a lot who are afraid.
So let me just
ask you if this
continues, we’re
gonna be looking
at serious energy
shortages around the
world, and that’s
gonna translate
into serious
food shortages
around the world.
What’s that gonna do
to the price of gold?
On one hand you
look at the mining
industry you can
say bullion is
money, but miners
are a business.
So even if gold
rises spiking oil and
diesel can certainly
hurt the margins of
the mining companies.
And the, and these
companies their
equities with cost
risk and energy
risk and maybe
most importantly
geopolitical risk.
But I think it all
boils down to it’s
a deeper progression.
This leads to higher
inflation, which
leads to higher
interest rates,
which in this case.
Breaks the system.
And so do you wanna
put your money into
treasuries at higher
interest rate when
the dollar’s getting
clobbered and the
system is breaking?
So it’s like
the normal rules
don’t really
apply right now.
I think in this case
it will benefit gold,
and gold can go up
in a environment
where rates are
rising, especially
when they’re rising
on the underlying
asset that really
is not demanded,
desired or trusted.
And therefore buying
treasuries in this
case instead of gold
seems silly to me.
I divide investment
in gold between the
core position and
investment position
and core position
is what you’ve got
to protect against
the worst case.
And my attitude
is, if you don’t
have your core
position, you get it.
You don’t wait,
you just get it.
So that’s the goal
to bribe the border
guards and you
don’t wait for that.
The investment
position
I’ve been
watching the
chart and we just.
We finally got into
oversold position
just for a tad, but
I’m waiting ’cause
it’s dropping more
today, so we’ll see.
But clearly to me
in this environment,
bullion is more
attractive than
the minors.
There’s no doubt
about that.
Yeah, and I think
if you don’t own
any, you definitely
need to have a core
position and trying
to pick a perfect
day in a world.
This unstable seems
to be a fool’s
errand, but yeah,
build the core first
and then worry about
trading or value
or cost averaging.
But I do think
this, and I’m dead
serious about this.
I think if you save
in dollars I think
you’ll go broke.
I do.
And I think it is
time to act like a
a contrarian and
that it’s never
been more important.
So I transact
in dollars I
transact in dollar,
so I transact
in paper money.
That’s what I have
paper money for.
I have it
to transact.
I don’t, it’s not
a store of value.
So the dollar is
certainly not a store
of value anymore.
Okay.
So I wanna talk
to you about Wall
Street and Washington
developments.
Because I
pride myself on
understanding what’s
going on, and I have
to take DI really am
trying to understand
what’s happening
with both the Genius
Act and the Clarity
Act and stable coins
and tokenization.
But I’m struggling
because there’s
a lot of talk
on Wall Street
about what they’re
planning to do.
But it’s very
conceptual and if
you’ve ever been in
a financial business
you absolutely
need to know the
transactional details
of exactly what’s
gonna happen and
how’s it gonna work,
and who’s gonna do
what and what the law
and regulation is.
And if you
don’t, it’s just
it’s la land.
So let me start.
The Genius Act, they
just put out the
proposed regulations.
They’re taking
comments till May,
the Clarity Act.
They thought they
had a deal, I don’t
know if you’ve been
following this.
They thought they
had a deal and
now the deal is
broken down because
Coinbase has said no.
Essentially the
issue is the
administration
has basically
said, no, you
can’t offer yield.
But of course,
the Crypto Bros
have found ways of
offering rewards
that is in essence
offering yields.
And so we’re back
in the Clarity Act
saying you can’t
offer yields, but
then there’s a lot
of absence of clarity
about what kind
of rewards you can
and cannot offer.
And it’s really
coming down to the
banks versus the
FinTech companies.
And I have no idea
which way it will go.
What I do believe
is gonna happen is.
The crypto universe
is going to use
rewards to suck as
much money out of
the banking system
globally as possible.
And that has dramatic
implications for Main
Street everywhere.
That’s why they’re
lobbying to not
allow through the
clarity act, the
interest on the
stable coins to be
passed to the holders
of the stable coins.
That’s exactly
why, because they
understand that
who in their right
mind would stay in
the over leveraged
banking system that
you could argue
is behind a lot
of the problems if
you could go to a
FinTech company and
earn greater return
outside of
the Matrix.
Yeah, I think
that is the fight.
If you send a hundred
percent of the money
circulating in a
country, whether
it’s Bolivia or the
United States to.
Into the
treasury market.
Instead of
circulating in the
economy, you’re gonna
implode the economy
and everything’s
gonna go through the
federal government.
You’re gonna, all
the money is gonna
get sucked up.
It’s Ross Pros
giant sucking sound,
and it’s gonna go
to Washington and
then Washington is
gonna hand it back
out to its pals.
Right and the way
that they have it
right now when I
look at it after
talking to you
about the plumbing
where even though
it is issued through
private enterprise,
it goes back in and
out of the treasury.
That is the the
beginning of
the surveillance
state for sure.
But it’s also a
funding mechanism
for short term US
debt, as it is no
longer being demanded
quite the way that
it once was because
to my knowledge,
everything just about
all of it will be
backed by short-term,
93 day or less
treasuries giving
synthetic demand
for the front end.
Everyone freaked
out about the new
Fed share who’s
supposedly hawkish,
but what can he do
with interest rates
if anytime money
moves across the
globe, it is buying
short-term treasuries
is gonna plaster the
overnight lending
rate to the floor.
And that’s part
of the deal maybe,
is that they are
trying to, in
essence, neuter the
Federal Reserve.
I don’t know.
I think that every
new stable coin
potentially becomes
a tool of monitoring
and a bid for
government debt.
So I don’t know.
I don’t think that
the FinTech companies
will win this battle.
That would just
be my guess.
I think the Clarity
Act is Washington’s
attempt to put
digital assets that
were never meant to
be regulated into
regulated boxes
and fold this whole
space into the Wall
Street ecosystem.
That’s what
they want.
So it’s sold as
clarity, but it’s
about, to your point,
control structure
and absorption.
And I think
that’s for sure.
That’s the
way I read it.
Anyway.
Okay.
So here’s the
next piece.
And I’ve never
explained this
to anyone who was
knowledgeable about
the financial system,
whose immediate
reaction was
not, oh my god.
So let me
dive in please.
Larry Fink has said
he wants to trade
all stocks and
bonds with tokens.
So for let’s you have
a share of IBM stock,
and then you create
a parallel token.
And what’s not
clear to me from
everything he said
is what is the
legal or regulatory
relationship between
a stock and a stock’s
token that’s gonna
be used to trade it?
In other words is
there a legal
connection?
Is one
collateralizing
the other?
Are we just
creating more
naked short selling?
It’s not clear
to me exactly how
this is gonna work,
but let’s assume
for purposes of
discussion that he’s
gonna create a token
on a stock he holds
in one of his ETFs.
And so it’s fully
collateralized.
So one.
One token for an
IBM share is is
backed by one
share of IBM stock.
But and you’re
gonna, you’re
gonna trade it on
the crypto rails
one because it’s
gonna be easier to
do a 24 7 global
market with crypto
rails number one.
But number two,
you can put it
on blockchain.
You can have
access to all the
information easily
if you have the
resources to do it.
But you can also
make it programmable.
So if you’re not
good, I can freeze
or take your IBM
share, right?
So now I’ve not
only got complete
surveillance, but
now I’ve got control.
Okay, but here’s
here, so hold that
thought for a second.
The SEC has just come
out and said that all
the tokens created
to do this are in
fact gonna be under
CFTC jurisdiction.
They are not
gonna be under
SEC jurisdiction.
And are you
ready for this?
Hold your hat.
They will not be
subject to SEC
securities loss.
See, that’s not the
way I understood it.
I understood it,
is that the bond
stocks and bonds
would be considered
securities and under
the purview of the
SEC, maybe that’s
new information.
Everything else
I thought was
more along the
lines of the CFTC
because they’re
more commoditized,
things that are
being tokenized.
But maybe I’m
mistaken or
misread it.
I read what they
promulgated, and
I’ll go back and
look again but I’m
pretty sure the SEC
said we don’t the,
these are not under
the jurisdiction
of security US
securities law.
They’re not
securities.
Yeah.
And that’s where I’m
confused because I
thought they were,
but if they’re not.
You’re you’re
talking the Wild
West at that point.
Let me see.
I’ll go back, I’ll
go after we shut
down, I’ll go back
and I’ll look.
But that’s why I
said, oh my God,
because if you can
trade $250 trillion
of stocks and
bonds with no laws,
yeah.
That would be, like I
said, the Wild West.
I’m pretty sure.
Now, I would never
second guess you.
And
no, I hope I’m wrong.
I hope I misread it.
I hope I’m wrong.
I think you did.
But I say that with
all due respect.
’cause I’m
not positive.
Okay.
It was just it
was either last
week or early this
week that it came
out that I saw it.
Okay.
I’ll go check
that out.
If but if you look
at what has been
said so far, once
the Clarity Act
passes, somebody
from the White House
just said today they
thought it would
pass by April, but
let’s say it’s some,
sometime this spring.
If they’re really
going to tokenize
essentially as
many real assets as
they can, including
gold, we should
talk about that.
And stocks and bonds.
We are talking
about a tsunami.
A tsunami of
financial products.
The likes of which
I don’t think the
world has ever seen.
I agree.
Look what they
did with Bitcoin.
They they will
regulate it.
They will package it
and they will sell it
back to the to the
street as progress
just like they
did with Bitcoin.
When the CME group
put the, future
on the futures
market opened up
one for Bitcoin.
I’m like, oh boy.
And then you
have it very much
financialized through
micro strategies
and other ETFs.
And I think that’s
exactly what
they will do.
It’s a very
concerning thought
if indeed that
is the case.
But I do think that
is the way things are
going, including in
the precious metals
ecosystem, in fact.
I’ve been talking
with people and
companies in
discussions with that
want to do this, and
it coincides with the
World Gold Council
just issuing a white
paper on this that
basically says that
all of these forms
of digital gold like
Tether and Paxos
and others, they
all have different
technology and
they’re fragmented.
It would be an
analogy would be
like everyone
has different gift
cards for different.
Con department
stores instead of
having one Visa card
that is exchangeable
everywhere, and
that is what
they want to do.
They want to
have the ability
ecosystem with
interoperability,
different
technologies, but
all have similar
rules on the back
end that plug into
an ecosystem that
the World Gold
Council validates
and manages.
And it’s
permission based.
You have to of
course, get into
the system by
proving that you’re
legitimate and that
your technology
is legitimate and
sound and whatnot.
But they want to
be able to expand
through tokenization
and through
digitization, the
metals market so
that it can travel
cross border easier,
could be used pledged
as collateral.
And that is the way
things are going.
I think, and the
Genius Act, the
Clarity Act is the
opening the door to,
to, I think a wave
of tokenization.
It is coming.
Certainly it would
be nice to know, to
your point, what the
rules are, what boxes
these all fit into.
But I think to
fight that trend
is gonna be tough.
’cause it seems
that’s where
everything is going.
But what’s I, to me
what’s important is
if you look at what
they’re doing with
tokenizing gold,
it’s the same as
tokenizing all the
other currencies.
There are no
guardrails to stop
it from becoming
programmable.
And all of these
tokens already have
A-M-L-K-Y-C and
KYT technology
built into it.
And the KYT is the
one that always
freaked me out.
And that’s something
that was new
to me recently,
which is know
your transaction.
So it’s not only I
know who you are,
I know where you
got your money,
and now I know
what you’re buying.
It is concerning.
It is concerning.
I think
What’s new, your
transaction.
KYT know what
you’re buying.
So who are you
buying from?
What are you buying?
And that’s the
technology.
And I originally
learned about this
with something called
bricks pay, which
is the B2B and
B2C technology that
is being right now
rolled out to the
Belt Road Initiative.
And I was listening
to an interview
by the gentleman
who designed it
and he said, all of
these new digital
ecosystems are built
with A-M-L-K-Y-C
and KYT technology,
anti-money
laundering.
Know your
client, know
your transaction.
And to your point
that is the digital
surveillance state.
And when you add
into it this push
to the digital id,
as we talked about
before, digital
id, digital money
the, the ability
to slide that in.
It’s not a central
bank digital
currency, but
I think to your
point, when you and
I were talking,
it’s more dangerous.
It’s worse.
It’s dangerous.
Much more dangerous
because your
guard is down.
That’s right.
Yeah.
Who is Charles
Know your customer?
Anti-money Lottery,
anti-terrorism.
These things.
There’s this
wonderful book from
Ron Soot called
Treasuries War,
and it says, Hey,
the G Wat wasn’t
just fought on
a battlefield,
it was fought
by accountants.
There was all these
guys at the banks
and the financial
institutions, and
they created this
huge anti-terrorist
layer, and they
were monitoring
transactions to
try to understand
how does ISIS
get its money and
how does Al-Qaeda
get its money?
But inadvertently in
the process of doing
that, they removed
any notion of privacy
from the system.
And it’s very
uncomfortable
because now that a
policymaker knows
who’s sending money
where or what.
I also know like
you buy guns or I
also know you voted
you’re giving money
to this politician.
Or I also know
that you have
land in a certain
area or you have
certain preferences.
If I’m against
that preference
set, or I think
that’s politically
inconvenient to
me, I can now use
that information
to weaponize it and
go against you and
politically censor
you or harm you
with soft power.
It’s not only your
guard is down,
but the front of
the currency is
not subject to all
the obligations
and requirements
of a government
or central bank.
They’re free of all
that, but behind
the scenes, the
government can
pipe in anything
they want.
Right.
And it’s just, if you
remember the Twitter
censorship, the
government’s pulling
the strings, but
everybody’s saying
Twitter’s a private
business, you.
You can’t complain,
you’re agreeing
to use it.
So it’s the, you
get the worst
of both worlds.
So
yeah, they should
have put the word
diabolically in
front of the Genius
Act because it is
diabolically genius,
not only yes to
provide synthetic
demand for a treasury
market that needs
it, keep rates low,
but also to quietly
walk us into that
surveillance state.
You’re right.
So think of
it this way.
So think of countries
all around the world
and their treasuries
and their sovereign
wealth funds are
rejecting tre, that
they don’t wanna
buy the treasuries.
So instead what
we’re gonna do is
we’re gonna tender
for their citizens
through the crypto
rails and say,
okay, if you’re not
gonna, if you’re
not gonna buy them
at a wholesale
level, we’ll just
suck up all your
retail money.
It is diabo by
Diabolically genius.
Yeah.
Okay.
So we’ve been working
with the states and
one state, Utah has
passed a bill to
put up guardrails on
programmable money.
Idaho’s working
on legislation.
We didn’t get through
in Tennessee, but
we’ll try again.
And we’ve
learned a lot.
We’re gonna repackage
our model legislation
and come back around.
But one of the things
that surprised me
Andy, is when you
talk with legislators
you’ve got these
very, most of ’em
are pretty smart.
Most of them really
pay attention.
They have no idea
what’s coming, none.
No idea.
They don’t see it.
They don’t hear it.
They don’t feel it.
They’ve lived in a
world of financial
freedom their
whole life, and
they can’t fathom
it disappearing,
let alone quickly.
Yeah.
It’s concerning.
First they got us
used to things like
Venmo and Zelle and.
Rapid transmission
of funds that they
will call progress
and convenience
and liquidity.
But yeah, it’s, it
is concerning when
you think, I’ve
watched, I’ve been
involved in the
Florida legislation
here and watched
the, how the process
and they didn’t even
really know what they
were doing so much or
really understand by
their legislation the
impact it would make
on this industry.
And they’ve
subsequently I’ve
been I think loudly
protesting at some
high levels and I
think they actually
listened and they’ve
done some things
to to make it more.
Friendly to companies
like mine, but I
will tell you that
the plan that they
have, Texas and
Florida in general,
both of them are
pushing back against
digital money
like Central Bank
digital currencies.
But both of them have
a program in place
or building one
where state sponsored
de depositories
will take people’s
gold and silver
eagles and put them
into an ecosystem.
Now, in both of
these states, the
law says you can.
Trade gold
and silver.
For all debts,
public and private.
It is a legal tender.
However, if the
opposite end that the
shopkeeper doesn’t
want to take ’em,
they’re not obliged
to where they are
going with this.
Realizing that
walking into a store
with gold and silver
may not be the
most practical way,
especially through
getting change and
safety and all that
stuff is through
digital where you
will put your money
into an account and
they will digitize it
and you can then off
app, off your phone.
Buy things.
The one thing that
they are doing
to incentivize
people for doing
it is to eliminate
state sales tax.
And capital gains
task federal still
applies, but you
bought it up here
and the price fell.
Does that mean you
get to right off plus
get no sales tax?
They are moving
in that direction.
Everything seems to
be moving in that
direction and that’s
why I I so admire
what you’re doing.
I am a cash person.
I just went skiing
in Vail and a
few weeks earlier
was up in Whistler
when I was up
at the Vancouver
Resource Investment
Conference, which
is owned by Vail,
one of the biggest
corporations in
the United States.
They are fully
cashless.
You go there with
nothing but cash
in your pocket,
you won’t ski and
you’ll starve.
And that is a trend.
I know that in
the Super Bowl
when it was at
Tampa Bay, they,
it was cashless.
They had visa.
Reverse ATMs,
you put cash in
and outskits a
right.
A, a credit card.
So sadly, it seems
that is the direction
we are going, even as
it pertains to state
legislation that
is very friendly
to gold and silver.
Ultimately, their
vision is to digitize
it and allow it to
be used that way
as legal tender.
So the danger to me
is you’ve got, in
most states in the
country, you’ve got
a population that
doesn’t own a lot of
gold and silver and,
but they have land
and they do have
some cash deposits,
some bank deposits.
Your stablecoin
is gonna suck
all the money out
of their banks.
And if you force
them in a position
where they need
gold and silver to
transact and they
don’t have it,
the only way they
can get it is to
sell their land.
So to me, you’re
putting the whole
country in a
short squeeze.
And the way to
protect against
that is for the
state to buy actual
gold and silver and
for the citizens
to buy actual
gold and silver.
Now
I am closely
connected with the
owner of Glint.
I invested in
the company
long time ago.
He was in Glint was
involved, and this
is public information
with selling I
think $50 million
worth of gold to
the Utah Treasury.
I think Wyoming
just bought some
gold as well.
And there are states
that are buying
it and putting it
in mind you very
small toe dipping
into the water.
But nonetheless,
there is some sanity
at that level where
these legislatures,
to your point get
it, are trying
to break free
from the insanity
of the federal
irresponsibility and
the indebtedness.
And, subjecting
their constituents
to holding wealth
in dollars.
That is really silly
when you look at
how it is losing
value precipitously
in relation to
things like gold.
And I like to do an
exercise for people
to get that you
can take any asset.
And the only reason
I’m gonna use 2005
here is I’ve done
it a hundred times
on a podcast.
And that is if you,
in 2005, were to
decide to buy your
new house with gold
in 2005, the average
price of a house
was $240,000 in the
United States, and
gold was four 50.
Works out, I think,
to about 530 ounces.
You decide, no,
I know gold pays
no interest.
We’ll shove it under
our mattress where
we’ll earn nothing
but dust until today,
21 years later.
The house is 500,000.
Good move.
You’ve doubled
your house in the
price of dollars.
Your house
has doubled.
But look at that
stockpile of gold
that’s been sitting
under your mattress.
The 530 ounces is
worth two and a half
million plus it buys
you five houses.
And so when any
asset you look at
in dollar terms,
they’re getting more
expensive and you
think that you did,
measure it in gold.
And you see just
about everything
is deflating
and falling.
And this is the
lesson here that the
states, I think are
finally realizing.
And that is if you
save your money
in gold, I mean
in dollars, you
will go broke from
a standpoint of
purchasing power.
And this is the
reason I think
you have some of
them doing this,
so I just have to
push back against you
please.
On glint, and
I’ve said this
to the glint guys
themselves, you
are not getting
me into a system
with MasterCard.
Mean.
Understood.
Understood.
And and I don’t
really even, I don’t,
to me, I get that
I do get that.
I understand.
And the funny thing
is I don’t use it.
I don’t use
it for that.
Some people it
unbelievably
expensive.
Yeah.
And there’s
capital gains and
this and that.
I like, I liked
the idea and I
found myself never
wanting to use the
MasterCard feature.
I will tell you
that the way that
you think is the
way that I think.
Right.
I’m always trying to.
If you don’t roll
with the changes as
a business owner,
oftentimes you get
rolled by them.
Yep.
So you throw as
much as you can
against the wall
and see what sticks.
But we’re getting
to a point now in
particular, and
when you look at
MasterCard and Visa
and the patents
they have on this
cashless society that
we are moving towards
and even those that
are tied to the
digital idea, gets
me very concerned.
To your point,
I don’t dispute
it at all.
I just finding
something that is,
is making gold more
relevant in the
21st century is
something that I
keenly jumped on,
but I don’t dispute
what you’re saying.
I
was just in
Switzerland and I
have a wonderful ally
and he and a precious
metals dealer I know
are, have created a
token system, which
is a store of value.
So you buy a token.
In gold and you,
the gold is in a
very good fault
in Switzerland and
it’s redeemable
At any time.
They’ll ship it to
you or you can go
pick it up, but it’s
not meant to transact
with just because
if you look at the
difficulties right
now of transacting
maybe that will go
away, but it’s simple
and it’s clean.
And it’s redeemable.
That’s why.
So that is what the
World Gold Council
is trying to do.
You take that
technology I’m
talking to another
group, and they’re
looking at doing
things, and then
there’s Tether
and there’s Pax
and they’re saying
all of these are
very fragmented.
We need to find a way
of interoperability
to connect all
of these into an
ecosystem where this
guy can pledge the
gold in Switzerland
and to do it for
collateralization or
to spend it and send
it across border.
The way that the
Bitcoin crowd talks
about the benefits of
borderless Bitcoin.
That is the way that
the metals market
wants to move.
That is the whole
idea behind the
white paper on the
right,
at the World
Gold Council.
So those kind of
technologies may
have a future into
things that are a
little bit bigger.
Here’s what the
world needs.
So if you read my,
one of my favorite
monetary historians
is Alexander Delmar,
and if you look
at the history of
great currencies,
what did they, what?
What was the thing
that made them
the greatest?
It was an, it
was a trustworthy
governance system.
Right?
What could possibly
go wrong here?
And so what you
need, whether
it’s fiat or it’s
gold, is you need
a trustworthy
governance system
and management.
And I don’t see yet
anybody emerging on
the world stage who
I would describe
as trustworthy.
Do you?
No, but if we look
at, and I’m not
saying the bricks
are anywhere near
exerting themselves,
but their ideas
are admirable.
The presidency
rotates the currency
will be a basket of
currencies and gold
redeemable on demand
by by sovereign
governments.
And we’re not any
one power or any
one entity controls
all of the power,
but you’re right.
And people say
who trusts China?
I say, who trusts us?
And that’s why I
think gold is being
quietly reintegrated
into the monetary
system because
it is trusted.
If you have a way
of, I guess what
they’re going to do
is probably marry
blockchain technology
with gold and find
a way of immutability
and redeem ability.
So
I’m.
I’m sorry,
what?
I’m gonna, I’m
sorry I was
interrupting you go.
No, I was just
gonna say, but I
get your point.
There really isn’t
an entity that the
United States after
World War II stood
on a high moral,
high ground that
we’ve trampled on,
and I don’t think
we’re trusted at all
anymore globally,
even by our allies.
So I, I agree with
you there, and
I’m just saying
if anyone has any
attempt, it is a
disintermediated
approach like this,
where not anyone
power controls the
game, but I’d love to
hear your pushback.
Here’s the, I just
did an interview
with Aaron Dan,
Steve Patterson, and
one of the things
Patterson said, he
is such a genius.
He said we need
to let a thousand
flowers bloom.
We need to try
lots of stuff.
And I do think
that’s the case.
And we need to try
lots of stuff in
the analog space
and lots of stuff in
the digital space.
We need.
’cause we need
both and they
need to be great.
But ultimately
what this is gonna
come down to is.
Technology can’t
make something
trustworthy.
Commodities can’t
make something
trustworthy.
It’s the, it’s
people and the rule
of law backed up
by a culture that
is trustworthy.
And once upon a time,
I remember dealing
both in Switzerland
and the United States
and in England with
systems that were
at, and institutions
that were 100%
trustworthy for
financial liquidity.
And something
that was wonderful.
Now it doesn’t
exist anymore.
But that’s
the question.
How do we create
a human culture?
This idea that
we’re gonna put the
machines in charge
and do everything
with drones, robots,
and data centers.
I don’t see how
that comes up.
I see how that comes
up with control, but
not with a culture
that’s trustworthy.
And so I think
in addition to
commodities, in
addition to, to
technology and
all these other
things, I think
we really need to.
Deeply about
how we create
the rule of law.
That’s the
most important
thing, right?
No question about it.
Just the very concept
of respect is
something that it
seems to be few
and far further
between these days.
I couldn’t agree
with you more.
And as someone who
owns a gold company,
I rallied against
that stuff more than
anything, right?
Over the last several
years because it’s
all connected and
it’s a country where
now, it used to be
you weren’t defined
by who you voted for.
It used to be
you could go
to Thanksgiving
dinner and have
a conversation.
Now my wife says,
you open your mouth.
When you walk in that
door, you’re dead.
Because I’d like to
stay through dinner.
I’m serious.
That happened
two years ago.
And I was just
trying to have a
normal conversation.
The whole concept
of respect
of difference
of opinion.
I say things and
then this is why
you’re so smart.
You’re also very
intelligent,
but a lot of
intelligent people.
Learn more and more
about less and less
till they’re experts
on nothing and they
are never able to
expand their thought.
You can be street
smart and not really
educated, but be
smart because you
have the ability
to say that’s
a great point.
I might have to think
about that and change
my opinion and listen
to varying viewpoints
and try to grow.
I think that is
more important
than anything is.
When I started
in this industry,
Catherine, the people
I talked to were
your grandfather’s
age and you know
the old World War
II vets and yeah,
they were amazing.
You, they said
something to
you, bang you.
It was their word,
was their bond.
You trusted it in
your soul just by
the way they said it.
And I’ll never forget
I was 19, 20 years
old and I said, hi
John, how are you?
He said, what’s
this John stuff?
It’s Mr. Smith
to you and I From
that day forward,
I never made that
mistake ever again.
But that’s the point.
It’s the trust,
it’s the respect,
it’s the.
It’s doing things
in an honorable way
that you look around
you and you wonder is
there a path to that?
Because we can have
a monetary system and
all of that, but if
we are not united,
if we are not trusted
and let alone
our institutions
now lack trust or
judicial system,
our everything.
Our government
lacks trust.
Our markets
lack trust.
When you see a
gold market on the
CME group that has
glitched four times
since Thanksgiving,
twice on the up
on the night of
Thanksgiving at 11
o’clock at night, the
server farm overheats
on the thousand
commodities traded.
Obviously, all
the gold traders
are trading at 11
o’clock at night
Thanksgiving night,
and it overheats
for 12 hours.
It did it again
both times as the
metal was roaring.
And then as it fell.
Unabated, sorry.
There was a glitch in
the circuit breakers.
They didn’t work.
And you look
at something
like Jeffrey
Epstein, right?
The night before
he died, supposedly
his cellmate was
transferred out
and the guards
fell asleep and the
cameras didn’t work.
And it’s are we
gullible or are
we just lying
to the world?
Now openly and
you wonder how
do you get back?
And to me that’s
more aggravating than
anything because I
think the monetary
stuff hopefully can
work its way out.
But you’re right,
if we don’t have a
good foundation by
which we build it,
and it is actually
a surveillance
tool that, that is
programmable, that
can do things that
are that cash can’t
be, can’t happen
to cash these days.
Yeah.
Then we have
a much steeper
hill to climb.
But God bless a
person like you
who puts your money
where your mouth
is you take these
efforts to the
legislature and more
people like you.
We need more
people like you.
I’ve tried to do my
part with the gold
industry, but you’re
doing your part
in spades on a
much bigger level.
And that is cash
isn’t about nostalgia
anymore and it’s
more along the
lines of control.
And the more I look
into it, the more it
becomes very visible
that is the truth.
Although if we can
come up with some
digital projects
that are also
out of control,
that, that would
be hugely great.
I think I told you
in the nineties when
I first discovered
we got the internet
really going, we
created, we were at
Hamilton Security,
so we were creating
something called
just in Time Money.
It was an early
form of crypto
was, anyways,
a lot of fun.
If only you would’ve
followed that string
a little bit further
and we were
doing it, we had
a software tool
called Community.
It was Community
IPO In a box.
We had Community
Wizard, which would
map out all the money
in your neighborhood.
We had we had
a whole suite of
software tools
to revolutionize
finance.
But the Department of
Justice ceased, our
office has ceased all
the software tools.
Took me six months
to get them out
from court control.
Six years to get
them out from
court control.
We got interrupted
by the Department
of Justice.
Shocking.
I I know that you
were interviewing me,
but I have was one
question for you that
I’m dying to know
your perspective on.
If you don’t mind.
I know we’re running
outta time, but
just one question I
read recently of the
Google Willow chip,
which is a pro it’s
it’s not fully
operational, but
they’ve made it and
they claim that it
is whatever it’s
something
they’re claiming.
They have quantum
computing,
right?
And it does in 10
minutes what the
world’s fastest
supercomputer does
in 10 sillion years.
I don’t even know
what septillion
is like 10 to
the 25th power.
With the rise of
quantum computing
and the probability
of quantum computing
meshed with ai, does
that concern you?
Are we gonna go back
to writing notes
and pen and paper?
This goes so far
the other direction.
Are you concerned
about that?
Yeah.
So there are many
concerning things
about it, but one
is you gap into a
two tier society.
Where one has
no ability to
have any privacy
whatsoever because
this can you’re,
you can’t have a,
you can’t have a
pin for your bank.
Be every password
in the system with
rare exception
can get cracked.
Right?
Scary you.
It’s very scary.
These are the things
that when we think
about stable coins
and digital money
and all of these
things, and the
rise of this type of
technology the old
saying, be careful
what you wish for.
I don’t know who’s
wishing for the
digital currency, but
I will tell you that
just seems a little
too simplistic.
When you look at this
kind of technology
that seems to be
growing by leaps
and bounds, when you
say we almost had
cryptocurrency 40,
almost 40 years ago.
It’s wow, that makes
you think geez 35
years ago, what is
technology today
and what will it
be like next year?
And anyways, I was
just curious on, I
don’t mean to go down
that road and steal
your thunder, but
I Yeah.
But I think this
is a very important
road to go down.
So one of my favorite
interviews I show
of Jared Kushner
is him saying
I’m gonna be the
last generation to
not live forever,
the first generation
to live forever.
Referring to the
developments in
life sciences.
Or Sean Parker
saying, I’m a
billionaire, so I’m
gonna live to 150
from the last
year, the one thing
I’ve tried to put
a priority on since
I left the White
House was getting
some exercise in.
I think that there’s
a good probability
that my generation
is hopefully with the
advances in science,
either the
first generation
to live forever, or
the last generation
that’s gonna die.
And we need to
keep ourselves in
pretty good shape.
So what you’re
talking about with
Google or what
Kushner was talking
about with life
science, we’re
talking about
a world where a
very primitive
culture is suddenly
having to handle
wildly advanced
and sophisticated
technology, and
that’s a lethal
combination.
I
like to live long
enough to see the
implications of this.
Fully realized
be, because then
we’re gonna live
much longer, more
productive lives.
And because I’m a
billionaire, I’m
gonna have access to
better healthcare.
So I’m gonna, I’m
gonna become one.
I’m gonna be like
160 and I’m gonna be
part of this class
of immortal overlords
because Warren
Buffet the old
expression about
compound interest
give us billionaires
an extra a hundred
years and
you’ll know what,
you’ll know what
what wealth
disparity looks like
when we grapple with
how do you create a
sound money system.
That’s the issue
we’re grappling with.
Fundamentally the
question is how
do we grow up?
Because you can’t
imagine getting
in a spaceship and
going back to the
Neanderthal agent
giving a bunch
of laser guns.
Caveman, what
do you think is
gonna happen?
Right.
Yeah.
Don’t ask my wife
that question.
She’ll tell you
I still haven’t
grown up, so I,
she won’t have an
answer for you.
But Katherine,
I think you are
very cool lady.
And if we ever have
a committee where
it’s voted on by
the people who gets
to help design this
new system, you are
definitely going to
be my first vote.
And
no worries.
We’re in the
invention room now.
That’s what
we’re doing.
We’re in the
invention room
altogether.
I’m honored to be in
the same room with
you and honored to be
asked to come on your
show, and I would
drop everything to
do at any other time
you need a fill in.
But thank you for
having me and for
indulging me and,
you’re amazing.
I look forward
to picking up
where we left.
Have a wonderful
golf game tomorrow.
Okay.
I sure will.
Did.
Can you tell,
can, is it showing
on my forehead?
I’m playing
golf tomorrow.
No, you told me.
Oh, okay.
Good.
You told me that’s
my Friday game.
I can’t miss it.
And that’s one of
the perks of living
in Florida instead
of Minneapolis now.
But I look forward
to it, but if you
called and said,
I need you for
a podcast, I’d
drop it and come
back on anytime.
Okay.
Andy, thank you.
And ladies and
gentlemen, thank you
for joining us on
the Solari Report and
Miles Franklin Show.
Thank you, Catherine.
