Peter Schiff: Much Lower Standard of Living Coming for Americans.

"There are many industries that are excellent investments beyond just the resource sector, such as industrial metals, agriculture, and energy. In addition to these, we also invest in other businesses that provide essential services, such as utilities and healthcare companies. These healthcare companies offer necessary medical services that everyone needs. On the other hand, tobacco companies can also be profitable investments, as people who are addicted to smoking will continue to buy cigarettes even if the price goes up. These stocks also often pay good dividends. There are also a variety of companies that support the agriculture and energy sectors, such as telecommunications companies, which have been undervalued and offer good dividends. We also own stocks in beer companies, as although beer is not a costly drink, many people still consume it, and it can be a cheap way to cope with difficult times. There are many companies with real value in various industries, and it is important for people to invest in them rather than just holding cash. This is because governments around the world are printing too much money, leading to worldwide inflation. All central banks made this mistake, with the Federal Reserve's policies being particularly influential. When the US had low interest rates of 1% or 0%, other countries had to follow suit, with some even going negative in order to have lower rates relative to the US. This caused problems and led to irrational decisions. However, the US's monetary policy has had a worldwide impact and the world may reject the US dollar as a result. This is already happening, as the sanctions placed on Russia and the example set by the US have caused other countries, such as China, to want to decrease America's power and the reserve status of the US dollar. If the US loses this status, it will be a significant shift, as the US's ability to consume more than it produces is tied to the reserve status of the dollar. The US can print dollars and use them to buy goods and services, especially those that are not produced domestically. This is similar to how some people create cryptocurrencies out of thin air and assign them a value. The US does the same thing with the dollar, creating it without any cost and having others assign value to it."

Apart from the resource sector and that would be Industrial Metals you know agriculture energy you know the obvious places to be invested but we're invested in other businesses whether it's utilities that are you know providing people with Power that they need in their lives or some health care companies Medical Services which we all need you know everybody gets sick and everybody wants to get better and so health is important and so these healthcare companies are there almost an opposite side though but is tobacco because people like to smoke so these tobacco companies you know if you're addicted to smoking you're gonna smoke and if the price of cigarettes goes up well you're  going to keep smoking and you know you'll find a way to pay for I mean  those those stocks pay   good dividends  as well but there're all sorts of   companies that that service let's say    the agriculture or the energy sectors      telecommunications we own quite a few of    those those stocks have kind of been    left for dead for a while they're appear    pretty cheap    um you know to buy and they have good    dividends    so there's a lot of different stocks    that that people own we own some of the    beer beer companies Brewers people    you know it's not an expensive   drink    but a lot of people drink it maybe    people drink more   when times are bad    because that's a cheap way to make    yourself feel a little better and Escape    reality so we own some of those    companies but you know there are a lot    of different companies    that have real value    and you know people have to go somewhere    I think you just can't be in cash    because all these governments are just    printing too much money the inflation    problem is worldwide   and it's because    all these central banks made the same    mistake and unfortunately they were    pretty much following the fed's lead we    are the issue or the reserved currency    and so everybody else kind of you know    marches to the beat of our drum and we    we had interest rates at one percent or    zero and so everybody else had to come    down in fact some countries went    negative because they wanted their rates    to be lower than ours well when our    rates are zero how do you get below zero    so they actually went into Uncharted    Territory in the Twilight Zone of of    negative raids as irrational as that is    but that was only because we were at    zero that's why they had they had to go    negative they wanted he had to have easy    money in relation to a U.S well the us    we went to zero      so we kind of corrupted   the    monetary policy of the entire world      but I think the world is going to    reject the dollar it's already happening    I mean in fact with the sanctions that    have been imposed on Russia and the    example that we've sent to the world I    already think   you know the Chinese    and a lot of other   players are just    not liking that and and really wanting    to take away some of America's power and    the source of that power is the reserve    status of the dollar    and we lose that and it's a whole new    ball game here because the America's    ability to live beyond its means is a    function of the Dollar's Reserve status    because we could print dollars and use    those dollars that we print   to buy    goods and services mainly Goods that we    didn't produce you know it's kind of    like these guys that issue      cryptocurrencies out of thin air right    you know what would that FTX token cost    bankman free nothing to create and he    could just issuing them and have this    huge value well we do the same thing    with the dollar cost us nothing we    create them out of thin air and then    everybody assigns a value to them.   

There's no question that gold is going to re-emerge as the monetary unit of choice for the world I mean it's not an accident that gold was money for 5 000    years it's been money for so long because it works but governments you know didn't like the gold standard because if they wanted to spend money they needed the gold and so they needed to collect it through taxes because they didn't have gold the private sector had gold and so if the government wanted gold to pay for some spending program they had to take it    from the people well you know as much as    the people like government programs they    also hate paying taxes and and so    governments wanted a way to have their    cake and eat it too they wanted to give    people government programs but not give    them the bill    now you know one way is like well we're    going to tax the rich right don't worry    about it we're going to give you all    these good goodies but the rich people    are going to pay for it right well you    know eventually you know you've taxed a    rich to the point that you can't tax    them any higher or you know    and and and now you have just a middle class left and there you know they don't    want to pay more taxes so they just print money we run these huge deficits and we pay for government with inflation and that's why we have so much inflation because we have so much government that we didn't pay for through taxation so    we're paying for it through inflation    which means higher prices so I think    that the free market is going to reject      the dollar and other currencies    because they're a flawed form of money because they are no longer a store of    value right they they can still function    as a mean of exchange you can still use    them as a unit of account but if they're    not good a good store of value then you    know they're not good as a you know    medium of a deferred payment they're not    good for Lending and borrowing because    you really have no idea if I loan you my    dollars for 10 years I mean in the high    inflation environment I have no idea    what those dollars might buy me in 10    years they may buy me nothing so when    the public starts to lose confidence    in the value of the dollar    what are they going to use as an    alternative well they can use gold    now the inconvenience of using gold    is well I've got a bar gold or I got a    gold coin I mean you know one gold coin    how am I gonna how am I gonna buy things    with it I mean how am I going to just    you know exchange it    now of course at one point we did do    that people had gold coins in their    pockets    and they had bills in their pockets that    were backed by gold and if they wanted    to buy something small well they paid in    silver or they paid a nickel or they    paid in Copper right that's the penny    um but today because of the      technology that we have now that we    didn't have in the past when we were    using gold as money because we have the    internet because we have blockchain we    can    tokenize the ownership of gold    an issue digital currency backed by gold    instead of paper currency backed by gold    that can circulate as a medium exchange    very efficiently so that people can make    big ticket purchases with gold I could    buy a car and pay in gold or I could buy    a pack of chewing gum and pay in Gold    because you can break gold down into a    fraction of a gram and then I can send    that fraction of a gram around the world    for a fraction of a cent so it's like    you know I the the the the current    technology and that's the irony because    all these Bitcoin guys are like oh see    blockchain is the death of gold no it's    going to lead to the rebirth of gold    because Bitcoin is what we don't need    gold is what gives the digital currency    its value   because gold actually is    the store of value but with blockchain    it's a better medium of exchange than it    had been in the past because it has all    the attributes of Bitcoin except better    because it's faster and cheaper to    transact but it's also a store of value    which Bitcoin can never be because    Bitcoin has no underlying value that can    be stored but    there was never a guarantee and it    worked for you know hundreds of years    with paper you know you have trusted      third parties that compete in a free    market   and there will be certain      tokens that will have a higher degree of    trust and therefore will be more    marketable   than than other tokens and    of course companies can can say our gold    is audited here's our independent    Auditors we have insurance we've paid    let's say Lloyds of London to ensure our    gold so even if it gets stolen Lloyd's    has you know we've bought an insurance    policy and then of course if Lloyd's is    insuring the gold then you have another    set of eyes that's going to make sure    that it's secure otherwise they won't    write the insurance policy you know you    can store it with a company like Brinks    right Brinks has been storing precious    metals for over 150 years they've never    lost an ounce that seems like a pretty    good track record so look trusting third    parties is what everybody does in    account in capitalism and if you if you    have life insurance you've trusted a    third party to pay the claim you know    when you die the same thing with fire    insurance or or auto insurance all    Insurance requires a third party to pay    in the event that whatever you insured    against happens that doesn't stop people    from buying Insurance because they have    to trust the third party they just make    sure when they buy insurance they buy it    from a third party they can trust and    what do these insurance companies do to    preserve that trust well you know that    that trust is is value that's their    brand that is their Goodwill of their    company that they want to preserve      and so it's fine the idea says hey we    can't use gold is money because we need    to trust the third party is nonsense    we've always been trusting third parties    and it's worked the only time it doesn't    work is when the third party is a    government that's when they screwed us    because when we trusted the government    like when we trusted the United States    government because the government had    the gold and they said hey here's our    notes they're backed by gold what did    Nixon do Nixon devalued twice although    Roosevelt devalued first he took the    gold the dollar and said hey it was    worth you know gold was it 20 an ounce    and now it's 35 so now you need 35    dollars to buy an ounce of gold before    you needed 20. But then Nixon says well    he devalued it from 35 to like 40 and    then 42. but then he said you know what    I'm defaulting we're not giving you any    goal for your paper so the US government    screwed everybody    the private sector doesn't have a    history of doing that is government so    that that's why I'm saying that I think    it's the private sector that is going to    lead the world back to a gold standard      not governments governments don't    have any vested interests to want to do    this but the public does right just like    you know did the post office have an    invested interest in Federal Express no    but the free market did you know taxi    cabs didn't want Ubers but now they're    here right why are they there because    the government provided you know    oligopolies you know with you know these    taxi cabs they were overcharging people    so that that was a window the post    office is a monopoly overcharged people    the government has a monopoly on money    and we're being overcharged through    inflation to use government money so the    private sector comes up with an    alternative but you know Bitcoin won't    work as an alternative but gold will      based on the same principles utilizing      you know blockchain and the internet    now I agree with you and look like I am      I hold physical gold and silver and    you know I could I could Envision that    world I I can't but I think a real a    realistic barrier to that is the next    two and three generations of    investors consumers all of this they've    been nurtured in a 99 virtual world    right they've they've lived their whole    life in in the digital landscape and    there's going to be a barrier for them    to understand    this this hard asset mentality and    that's part of the reason plus they've    been indoctrinated by the rise of    cryptocurrencies and that this could be    a sound money and it's decentralized so    therefore you know it lacks corruption    and manipulation and you know if you    have the keys then you have possession    like you would a physical coins and so    how do you think that the message that    you're discussing and that I buy into    could be communicated and educated right    to the next two and three generations    which are gonna carry the torch and pick    it up    well look look at how they were able to    spread Bitcoin message look at how many    people around the world not only you    know know about Bitcoin own Bitcoin    so in many respects    it's a similar message    it just doesn't have the get risk quick    element and that that's what kind of    made Bitcoin appealing to certain people    was that they thought they would get    rich buying it so when you're talking    about using gold as money and a crypto    backed by gold you're not talking about    a get rich quick scheme but you're just    talking about empowering people to have    a better monetary system so that they    don't go broke so that they can save and    have their savings grow in value over    time rather than sink and freeing a lot    of people from a banking system and    making it easier for people in a lot of    countries who are unbanked to actually    easily have a account that they could    use as a pick to facilitate payment so    that they can buy whatever they want or    they can receive money in exchange for    their services and be paid and the    beauty of gold is is it Universal money    it's the same all over the world and and    so you know you can be a poor person in    Africa and you could just be you know    taxing around   tourists that come to    your country and they could just easily    pay you in Gold   through your    smartphone and you could receive your    payments doesn't matter whether they're    coming from the United Kingdom the    United States you know France Japan    Australia you know know they could all    pay you in gold and then you could use    your gold to pay all your bills and you    don't need a bank and whatever you don't    spend that you save it's going to gain    value because over time   prices go    down in relation to Gold   and and you    know you you can grow your grow your    purchasing power   through through your    savings so   people I think when they    learn about it    you know will will adopt it I think    Merchants when businesses have an    opportunity to be paid in real money    they'd prefer it if it's just as easy to    get paid in phony money I think workers    would like their wages in real money    um especially people that are signing    long-term contracts to be paid over    longer periods of time I mean inflation    can wipe you out but if you're going to    get paid in grams of gold you know    that's a lot better especially if you    know that your landlord what if your    rent is also in goal because your    landlord says you know I'd rather have    this a a rent in Gold so now you have    your rent in Gold but then your salary    is in gold right so as the world starts    moving away from from these Fiat    currencies to gold and they start    pricing things in terms of gold right    and the governments are irrelevant and    now they have to be honest because now    if everybody wants gold and nobody wants    their paper well now if they want to    come up with a government program    they're going to have to provide people    with gold   because that's what    everybody wants and so now they have to    be honest now they have to have taxes    that meet their expenditures they can't    run these massive deficits and monetize    them and cover the the shortfall by    creating inflation    now do you think that what you just    discussed has anything to do    with the record Central Bank buying of    gold because in order to buy something    get to sell something if you look at the    Ledger it's largely been an exchange of    U.S treasuries in order to buy gold    that's been transaction do you think    central banks are thinking about it that    way at all or is are those two separate    things I don't know if they're thinking    about the world returning to a gold    standard I think what they are concerned    about    is the backing behind their own currency    and they recognize that dollars are    going to lose a lot of value    based on the enormity of U.S government    deficits and the size of our debt and    the fact that we just can't possibly    service the debt let alone repay the    debt you also have the baby boom    generation of which I'm a part of    um you know we're in retirement and more    of us are entering retirement and it's a    huge generation I mean I'm at the tail    end of the baby boom I'm about to turn    60.   but there's a lot of people that    are just around my age or are now    already 65 and and they're retiring and    Social Security is broke and so it's    already spending more than it's    collecting especially with the labor    force participation rate so low    and so this massive       deficits    have to be funded these unfunded    liabilities    and central banks realize that the    dollar is going to lose a lot of value    treasuries are going to lose a lot of    value so they're holding all these    dollars all these treasuries so they    want to get rid of them but what do they    want to buy I mean they got they gotta    they got to buy something they're not    you know they're not going to just spend    it so they're buying gold I mean Gold's    a better asset I suppose they could sell    their dollars and buy Euros or they    could buy yen but you know you got    problems in Europe you got problems in    Japan gold is a monetary asset that's    nobody else's liability and you don't    have to worry about a gun a country you    know over printing gold because they    don't they can't print gold it has to be    mined and you know the the production of    gold is slow maybe the price the supply    will increase one one and a half percent        next year   the supply of Fiat    currencies will grow at a minimum five    to ten percent maybe more depending on    on the currency   so you know there's    massive inflation in the Fiat world you    don't have that with real money so    central banks are doing this and I also    think too as I said earlier    you know Russia had reserves in dollars    that got Frozen    but their reserves in Gold they still    have those yeah and and so the message    that we sent to the world is that your    reserves had better be in Gold because    that's the only way to keep them safe    because if they're in dollars well you    know we tell you what you could do with    those reserves and if you do something    we don't like you're not going to have    those reserves that doesn't inspire a    lot of conference in people why would    you want to hold your reserves in a    currency where the United States could    just yank it away from you like if you    do something America doesn't like    they're in a position to punish you well    I wouldn't want to be in that position    especially if I know America doesn't    like me right like China right everybody    wants the bass China they've got    trillions of dollars over there you know    they've loaned us all this money and so    I would think [ __ ] we want to get rid of    this and I think that's what they're    doing they're just divesting themselves    of dollars and and what that means is    our ability to export our inflation to    China is coming to an end because that's    what we did for years the Chinese sent    us goods and we sent them paper and they    took that paper and they bought our    bonds and it was a win for us because we    got cheap prices and low interest rates      but you know that they're we're going    to lose that ability and that's you know    that's a big change for the United    States it means a much lower standard of    living for Americans    yeah that's a very significant event and      I I wonder if in 10 years we'll look    back on that freezing of U.S dollar    reserves by by the U.S government    towards Russia as significant as we now    look back on Nixon taking    um the US dollar off the gold standard    if we'll look back on it with similar    significance now I know I mean I think    the world was going to move away from    the dollar as a reserve anyway it was    inevitable but I think that   action    certainly sped up the process so right    right it will happen sooner    as a result of that action then it would    have happened anyway but it was    inevitable that it was going to happen    in fact it should have already happened    it's long overdue yeah.

I think all of these   platforms    that had any kind of debt or that    offered any kind of yield on investments    of of crypto    are inherently suspect you know just    like you know I did some   debates      with this guy    um machinsky from Celsius and when he    told me about the interest he was paying    I immediately thought okay well this is    some kind of Ponzi you know this is    impossible what kind of risk and he was    like denying oh we're not taking any    risks a few months later the whole thing    is bankrupt in fact I think if I would    have looked into Sam bankman Free's    company and FTX if I would have spent 10    minutes like doing some due diligence I    would have spotted the fraud myself I    just never even looked at it that was my    mistake I should have like paid more    attention to it but I mean I never    considered putting any money there I    mean had I been thinking about it than I    would have   but you know when I look    back at some of the interviews now that    I never saw earlier because I didn't    really pay attention it's like this was    like such a you know flashing red light    this guy   and the fact that people    just accepted that he was worth close to    30 billion dollars how what did he do he    has some exchange how does he have all    this value where is he getting all this    money I mean and and this kid I mean    this young guy that doesn't even know    how to comb his hair you're telling me    he's got all you know the whole thing's    just didn't smell right when you just    look at it    um but you know there's a lot of    potential blow-ups what about tether I    mean how does tether actually have you    know dollars and and how much of    tether's reserves maybe were in FTX    liabilities how much money did FTX load    tether I don't know they're not audited    I mean what if tether doesn't have    anywhere near the dollars what if    there's a run on Tether because tether    supplies a lot of liquidity to bitcoin    and other cryptos so if the tether has    no value how you can you know you you no    longer have a way to buy you know   and    a lot of people that that have sold    their Bitcoin and got paid tether if the    tether has no value they got nothing for    their Bitcoin so I don't know that    there's I think there's a lot more shoes    to drop I think this is going to be the    textbook centipede when it comes to shoe    dropping   and FTX wasn't even the    first one as I said there were other    bankruptcies that happened before FTX    and in fact FTX was trying to bail out    some of the companies that went bankrupt    before it if that was the irony of it    because it itself was broke and it was    bailing out all these companies   and    now of course who's going to bail out    the next company that fails because the    company that was bailing them out well    it's failed too    so I I just think this whole thing is    going to unravel this was the a crazy    Mania that was a byproduct of central    banks and the casino-like environment    that was created as a result of massive    inflation zero percent interest rates    and quantitative easing and I know all    the politicians are going to want to    blame capitalism and claim oh it just    proves that we need more government we    don't need more government we need less    government we need more common sense we    need more personal responsibility yes    that's the best Safeguard against fraud    and this kind of stuff a government    Regulators are always corrupted by the    people they regulate and they owe it    always results in more fraud and more    people losing money than if we had free    market forces   that would be doing a    better job but it's amazing to me    that so many people are still in denial    that are in this space that are looking    at Bitcoin at you know 17 000 you know    it popped up today so now it's you know    closer to 18 or 70 whatever it is but    and not realizing that they can still    sell I mean they're like trapped in this    mentality that oh my God I can't sell it    at 17 because it used to be 69 and it's    70 percent down and oh it's a bargain I    I'm not I can't sell you're it's it's    seventeen thousand dollars for nothing    seventeen thousand dollars is a lot more    than zero which is ultimately where    they're going but you can't be fooled    into thinking that because it once was    69 000 that that represents some    Benchmark that you know it's going to    return to someday and that anything    below that is just a sale it's a going    out of business sale and so if the    prices are going to keep getting marked    down and the longer you wait to sell the    bigger the markdown you're going to see      in order to sell later .

The media was complicit because they    were bought and paid for they were    shills because these these   crypto    companies were buying ads on all these    networks yeah and so the the the    reporters and the shows didn't want to    criticize their customers in fact they    wanted to give them some free publicity    to get the paid publicity so everybody    was in on the action but I was out there    you know screaming I was like taking    CNBC to task so I thought I was like    this these guys are doing a horrible    service to Their audience they are    treating this like as an actual    investment they're putting one shill    after another on their Network to talk    their book and pump up this crap and    there's no counterbalance there's nobody    like me on there saying it's all a bunch    of nonsense and all of the reporters are    all eating it all up all the anchors      and you know and it's just fueling it    but you know what's going to happen and    I've been saying this since the    beginning    everybody who made money in crypto    including the people who were paid to    advertise crypto they're all going to    get sued you know by the people who lost    money I mean at the end the lawyers are    going to have the money that's    unfortunately how it always works but    everybody who lost money is going to sue    everybody who made money that's just it    you know that's how it's all going to    end    because you know it's a zero-sum game    right it was all a transfer of wealth    some people made money because other    people lost money because no real value    is created out of Bitcoin it was just a    transfer mechanism from the people who    sold it to the people who bought it well    you know it's a Bernie Madoff thing it's    a it's a natural Ponzi a a pyramid    scheme a chain letter you know it's like    it was a chain letter on the blockchain    but that doesn't change the nature of    what it was you know this actual chain    letters are illegal but if you have a    blockchain letter somehow it's legal.

Government    prosecutors are a lot shrewer than that    I mean if you knew that a guy that you    were about to charge was going to go on    record and testify under oath in front    of Congress I'd like yeah let's wait for    that I mean he let's see what he says    that we could use against them because    it's all he's waving his Fifth Amendment    rights he's going to go out there and    and say a bunch of stuff it didn't make    any sense they should have arrested him    after he finished testifying before    right I think the reason that    the media is treating him the way they    are first they want the interviews right    so they know like sure we want this is a    major coup he can interview this guy so    but we got to treat him nice or you know    you you know he he will leave but also    part of his fraud    was that he was one of the good guys    right he was a liberal he was a he    supported all these Democratic    politically correct causes you know and    and so he he didn't you know he wasn't    out for himself he wasn't one of those    greedy billionaires who just wants to    make money he wanted to give all his    money away right he was a good guy he    was this new kind of capitalist that    that earned to give right and they still    don't realize that was part of his fraud    this guy was as greedy as anybody else    in fact greedier he lived a very lavish    lifestyle while he pretended that he was    driving some beat up Toyota Corolla and    you know having 10 roommates in some    little apartment. I mean this guy was you    know surrounding himself with opulence    and all the trappings of wealth while    pretending he like you know was was a    monk you know and wanted nothing for    himself but you know because he was you    know he had this Persona about him and    now he's like acting like well I didn't    know you know I'm just good guy Ai and I    just didn't you know I just didn't    understand what I was doing and I just    oh God I wish I'd done a better job and    oh you know    God I really feel bad that I just wasn't    smarter and didn't have more experience    you know I'm just a kid I was in my 20s    and you know I didn't really know what I    was doing    you know yeah I mean it's hard to take    that much money and not realize that    you're that you're taking it so yeah    it's like    you know I mean it it    and the thing too and this is what what    almost gets me is you know you have    these people that invested with him    you're supposedly smart people    I put money with them and what's worse    that you gave your money to a criminal    who stole it or you gave your money to    an incompetent idiot who lost it    I mean to me it's almost better to think    oh he stole it because I'm completely    inexperienced irresponsible I have no    idea what I'm doing yet all these people    trusted me and now all these people that    trusted him are now like turning and    when I hear some of these bigwigs like    you know Michael Saylor you know or      Mike novograts you know criticizing him    and I'm thinking like you know you're in    a glass house what are you doing    throwing stones I mean Mike   a Michael    Saylor when Bitcoin was over sixty    thousand dollars a coin or token    whatever it is he was telling people on    television    to put all of their net worth in Bitcoin    but when they finished putting    everything they had in Bitcoin he said    that's not enough go out and mortgage    your house and put that money in Bitcoin    borrow money on your credit card and put    that money in Bitcoin he was saying that    on air and like the reporters were like    they weren't like they weren't saying    anything like what are you nuts how    could you possibly be doing that anybody    who followed his advice is just as wiped    out as the person who put money at FTX    maybe more maybe they just lost their    house because they because they they    followed his advice and so he's now    going to be criticizing,   FTX but the media lets him get away with    it I mean he's still one of the    favorites you know   everybody wants to    interview Michael Saylor. He's got    three million Twitter followers right, he's a big   big crypto guy, but you    know Nova rats or you know all these    guys are out there they've been pumping    this stuff up for years   recklessly    and irresponsibly, you know, was it criminal what they did, I mean you    know I don't know, maybe it depends on    what they were doing I mean how much      Bitcoin was Michael Saylor selling as he    was telling other people to mortgage    their house to buy it I'd be interested    in knowing.

Especially Bitcoin but I    mean because it's spy it's very nature, it's highly speculative, so I mean you, wouldn't you wouldn't be going into debt    to buy it that's ridiculous.