On this Flashback Friday episode, Jason Hartman discusses his Ultimate Investing Equation. Afterward, he interviews Daniel and Gerard Adams for The National Inflation Association (NIA). They share what prompted them to start the organization, as well as their market predictions that were ignored.
Announcer 0:00
This show is produced by the Hartman media company. For more information and links to all our great podcasts visit Hartman media.com.
Jason Hartman 0:09
Hey, this is Jason Hartman, thank you so much for joining me. Do you know what day it is? Yes, it is flashback Friday, where you hear the best of the creating wealth show and you hear some good prior episodes, some good review. Remember, we’ve got almost 500 episodes out. And you know what? iTunes doesn’t even hold them all if you’re an iTunes listener, if you are listening on Stitcher, thank you for joining us. So we want to bring you some good review stuff. Now. What’s interesting about flashback Friday, it’s a little scary for me. I got to be very, very candid with you on that. Because you the listener, you get the chance to hold my feet to the fire. Did I make any predictions? Was I right? Was I wrong? I’ve been right about a lot of things, but I’ve been wrong about a few. So you can give me a hard time about that if you wish. But it’s flashback Friday, and we will give you the uncensored Best of the creating wealth show with a prior episode. So let’s dive in. Here we go. Remember, this is not current. It’s flashback Friday.
Announcer 1:20
Welcome to creating wealth with Jason Hartman. During this program, Jason is going to tell you some really exciting things that you probably haven’t thought of before and a new slant on investing fresh new approaches to America’s best investment that will enable you to create more wealth and happiness than you ever thought possible. Jason is a genuine self made multi millionaire who not only talks the talk, but walks the walk. He’s been a successful investor for 20 years and currently owns properties in 11 states and 17 cities, this program will help you follow in Jason’s footsteps on the road to financial freedom, you really can do it. And now here’s your host, Jason Hartman with the complete solution for real estate investors.
Jason Hartman 2:10
Welcome to the creating wealth show. This is episode number 174. In this your host, Jason Hartman. Thanks so much for joining me today. Today, we are going to talk with the two founders of the national inflation Association. I think you’ll find this interview very interesting. And we’re going to talk about monetary policy and all that good stuff that we haven’t really talked about too much lately, some big predictions for the future and how they impact you. And remember our philosophy, which is really the ultimate investing equation. What is that? Well, I’m not going to go into it in depth here, because we have on prior shows, but just think about it, you want to acquire as much in the way of packaged commodities as possible. What are packaged commodities? Well, I like them in the form of houses for plexes, apartment buildings, etc, etc. All of those building materials, lumber, labor, concrete, glass, steel, copper, wire, tons and tons of petroleum products, all of these commodities packaged and assembled together that you’re basically buying most of the time at half price today. Isn’t that unbelievable. And then you add to it a 30 year or maybe even a 40 year, a four decade long fixed rate mortgage, and then you see inflation coming along in the future. It may be in 2012, it may be in 2015. Nobody knows exactly when or how much but we all know it’s coming and you pay that debt back in cheaper dollars. Those commodities rise in value. The thing I know is that every human being on Earth has three common needs. What are they food, clothing and shelter, and let them rent that shelter from you. The population is increasing in the United States dramatically. We’re going to add an extra hundred million people in this country in the next 31 years, the global population in just 39 short years will increase by 50%. Think about the significance none of this has ever been happened before in world history, we will have almost 10 billion people on this planet in the not too distant future. In fact, that’ll be just after a mortgage you might take out today would be repaid, the population will increase by 50%. In the United States, over 100 million people before you make the last payment on a mortgage you might acquire today that has never happened before in human history, population increasing commodities, very bullish on commodities long term and paying your debt back in cheaper dollars. That is the ultimate investing equation. I’ve said it many other ways before let’s listen to the interview before we do that. couple quick announcements July 31, creating wealth in today’s economy here in Orange County. We’d love to have you at that event the Masters weekend in October some great products on our website. last issue show number 173 was a free sample of the audio version of the financial freedom report financial self defense in uncertain times. We’d love to have you in our subscriber family go to Jason hartman.com. For that, and right after this in just less than 60 seconds, we’ll be back with the interview regarding the national inflation Association.
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Jason Hartman 6:04
It is my great pleasure to have the NRA on the phone today for an interview with us. And we have Daniel and Gerard an NRA stands for the National inflation Association. I have been following their work for a while now they produce some fantastic videos and a new documentary entitled melt up and these guys have some really interesting insights into what is going on. And really the scam that is being played. I’ll call it that that’s not their words, it’s mine at the highest levels of our financial system and how we can all best deal with it. Welcome, guys. It’s great to have you.
Daniel and Gerard Adams 6:36
It’s our pleasure. Thank you for having us.
Jason Hartman 6:37
My pleasure, Gerard, maybe I’ll start with you and just get a little background as to what NIH is and why you started it.
Daniel and Gerard Adams 6:46
Basically, an A is the National inflation Association. It’s an organization that we created, basically, because we were tired of all the propaganda that was being put out by the mainstream media, we felt that there wasn’t enough places for the people to go and get the facts about the economy and why they should be preparing for hyperinflation. And we’re basically dedicated to preparing Americans for that hyperinflation and helping them not only survive, but prosper from it.
Jason Hartman 7:13
Excellent. Well, that is that is a very noble mission. And I’m right with you there. So Daniel, what are your predictions for the future? I mean, obviously, you guys believe there will be a hyperinflationary future. And what does that look like?
Daniel and Gerard Adams 7:27
Well, you know, we’re looking at literally a depression the United States, but it’s going to be combined with inflation, because we have all the statistics looking at baby boomer data, looking at peak spending for consumers, all of this is pointing towards a huge contraction in not only spending but revenues for the government. But at the same point in time, we also will have the same projections for a huge increase in spending. So at the same time, they’re decreasing their revenue and taxes, as well as the local stores are decreasing their revenues and contracting and closing stores, we’re going to be matching everything that closes every everything that you look at would be vanishing in a depression like situation, they’re going to replacing it with more debt with more printing of money, because they don’t have a choice because they have an aging baby boomer generation. That is, yes, they’re going to be spending less than their older years. But the way our entitlement system is built, we are going to be spending even more on entitlements. For example, during the 90s, we had roughly 500,000 people a year enrolling on Social Security. And basically from this day forward, it’s going to be roughly between one and a half million to 2 million a year. So as you can see the situation the storm we’re going into is not only a depression here in the United States, but it is a highly inflationary situation where the government has forced inflationary policies.
Jason Hartman 8:52
I would agree with you. The thing is that if we parse up what you just said, it’s kind of interesting, because a lot of the stuff you said would really make one thing potentially that we have a deflationary future. I mean, think about it, if we have a contraction in the economy, if we have store closings, all that adds up to just sort of a smaller economy with less demand higher, less capacity utilization, and that would indicate deflation. On one hand. Why do you say we’ll have inflation though? I mean, certainly money printing is inflationary.
Daniel and Gerard Adams 9:24
Well, the biggest difference is this will be the first downturn global downturn old history where there is not one single currency that is connected to a precious metal not connected to gold, not connected to silver not connected to any commodity. So when you look at you know, economics one on one, yes, it spells deflation. But you have to remember all the books in the in history have a currency that is backed by gold. So when you look at the Great Depression, we still had a currency that was backed by gold, right? Oh, trying to compare the Great Depression in the 30s and the great Rate depression from 2010 to the early 20s, it’s really comparing apples to watermelons, because this time you have to look at the currency situation, it dramatically changes everything.
Jason Hartman 10:13
That’s a very, very good point. I mean, every currency in the world is now a fiat currency. And so there, we really get to this sort of race to the bottom phenomenon where all of them will potentially become worth their intrinsic value paper in ink. But maybe the US is, is the better of the lousy currencies. I mean, we’re certainly seeing that right now with what’s going on in Europe, where the Euro once thought to be the sort of star of the show just a couple of years ago, is now looking like a real disaster.
Daniel and Gerard Adams 10:44
Hmmm, yeah, exactly. And it’s very deceiving, because people will follow the dollar index. What it is, is it’s illusions, priced against other illusions. And that’s why the national inflation Association and part of their 2010 predictions list was really to have people start focusing on the Dow price and gold. And as you can see, the Dow and most things relative to gold are actually seeing a contraction in their price relative to gold. So if you look at the Dow Jones, it was roughly I think, roughly over 40 ounces of gold in 2000. Today, it’s just hovering right around up just over seven and a half, just under eight and a half, kind of bouncing around there. But so if you look at the Dow Jones, I mean, you’re not really gaining any value, all you’re doing is you’re seeing the results of inflation. Of course, this is what the documentary, melt up shows with overwhelming evidence.
Jason Hartman 11:37
Yeah. And by the way, you guys did a fantastic job on melt up, I really got to say I’m impressed. And over half a million views of that, right.
Daniel and Gerard Adams 11:44
Yeah, just three weeks.
Jason Hartman 11:46
Fantastic. That’s, that’s really good work. We look at this 60 plus trillion dollar time bomb of entitlement liability hanging over our heads. This has never happened before in world history. We have aging baby boomers, we have Gen X, my generation that is much smaller coming behind them, and then Gen Y coming up after that. And yet at the same time, we have a reasonable sized chorus of people out there saying that the future is deflationary. I don’t agree with them. But I just like you to address what they say. And here’s what I hear them say I hear them say things like there is so much deleveraging going on and so much more deleveraging to come. They quote numbers like $46 trillion in in potential defaults coming up on on various forms of debt. And they say things like the government can’t print enough money to create inflation. Well, that to me on its face as a completely stupid statement. Because the fact is, there is no limit to the amount of money that can be created out of thin air. But what do you say to the deflationists out there, they are out there. And they say that everybody’s talking about inflation, but they say the future is deflationary. And the first part of this downturn really was deflationary in many categories, wasn’t it,
Daniel and Gerard Adams 13:06
What you’re looking at is the perceived value of a currency. And so right now, when things are kind of normal, the system is still, you could say relatively intact, although it’s being held together with simply nothing but print more money, it is the perceived value of the currency. And that is the biggest difference between the deflationists and the inflation is because if you listen to basically our arguments we’re reviewing, we’re looking at the same facts, we’re looking at the same statistics. And we pretty much agree all the way up until basically what is going to be the short term result. Even if you if you talk to some of the biggest deflationists, even Harry dent out there and prechter, they will tell you that yes, they believe in deflation. Of course, they’re they’re huge on deflation, but they also say, well, in about 10 years, though, we will experience huge hyperinflation. So the timing is really different. I think both camps do inevitably believe that it is going to be $1 situation. And so really, that’s what separates us. But just getting back to the currency, the dollar is is really, you know, if you keep interest rates low and keep the quantitative easing, you’re going to experience the results of hyperinflation because you are already doing it. If you raise interest rates, like everybody says, it’s just gonna be so easy to do. I mean, let’s be real well, what happened to the US economy if interest rates went up? 5%. I mean, we can barely sell homes by giving people $8,000 tax credits, and having interest rates for the banks of zero percent. If you raise interest rates, this economy will freeze up. And as it freezes up, just like the world is turning its back on Greece, they will look at the US dollar as no longer a stable currency because the US dollar is still backed by the US economy and the perception that we can grow ourselves out of this once they see it freeze up because we raise the interest rates too. 2% 3% 5%, the world will know they’ll know that the United States is either going to have to print to devalue their currency to pay off their debts, or they’re going to have to default. Either way. It equals people running from the US currency and investor demand for treasuries will collapse. It’s already contracting. there’s already some of our biggest Treasury buyers are already contracting in their in their holdings. So we’re already seeing the world look at the dollar, not like they have ever in the last 30 years,
Jason Hartman 15:33
Right, and what those Treasury auctions directly relate to mortgage rates. And that is why I agree that we must, is absolutely impossible that we will not see higher mortgage interest rates in the future, we must see higher rates, there’s no other way,
Daniel and Gerard Adams 15:48
Because we might see more mortgage defaults in the future and more forced liquidations on Wall Street. But that’s not going to change the fact that the dollar will not be looked at as a safe haven and that people need to position themselves into gold and silver, which are the only things that will provide protection from both the deteriorating economy and massive inflation.
Jason Hartman 16:06
So yeah, very good point. So what’s odd is I’ve had Harry dent in Bob Proctor on my show before and oddly enough, Bob Proctor is very interesting guy and says Harry dent, of course, he’s still kind of believes in the metals, it seems like I mean, even though he’s a deflationists and he’s got that that big report, he wrote on coping with deflation. It’s sort of contradictory if he asked me and then Harry dent said something that I just don’t understand at all. He’s he talks about the fact that young people are deflationary when they enter the economy, and he’s referring to Gen Y 80 million Gen wires entering the economy and creating more innovation and that being deflationary. Well, I guess it is from a technology standpoint, but food and energy and commodities are what we all really live on, not iPhones, although they’re super cool, right? I just don’t get it. It doesn’t make sense to me.
Daniel and Gerard Adams 17:00
Yeah. Well, what he’s basically reviewing is, is the fact that young people pay less in taxes, and they make less money, people peeking income around 50 years old, they’re picking and spending around 46 to 48. Because they’ve got these teenagers in the house eating everything, they’ve got to buy car insurance, they’re paying for school. So I think that’s what he’s probably looking at. But see, we look at that, and we put the math together and go, Wow, we’re gonna have less income and more entitlement spending more spending, the spending is going to the spending doesn’t contract. It doesn’t matter. If you look at republican Democrats, it doesn’t matter who’s in the houses in the senate who’s in the White House. We know one thing about this government, they spend and if they don’t have the money, they have no hesitation is to borrow it. So we know the result of borrowing. And the result of printing is economics, one on one which is hyperinflationary
Jason Hartman 17:48
Yeah, no question about it. What do you consider hyper inflationary? Is there a percentage numbers that mean 20% 50% per year? Does it mean Zimbabwe? 10, zillion percent per year? What does that mean?
Daniel and Gerard Adams 18:00
Basically, when you’re looking at hyperinflation, by definition, we are already in a situation where we are hyper inflating our currency, when you look at the mp3, how it shot up over the last two years, you know, people talk about, oh, the mp3 is down, well, you know, stop recording on the moon. But, you know, it’s still really highest, you know, the Federal Reserve is, as so many bad assets has increased its books in the trillions. Look at the US. I mean, it took 40 presidents to hit a trillion dollars of national debt. We just did a trillion in the last seven months, some notes and you want to talk about hyperinflation, by definition, we are already hyper inflating our currency, we are just waiting for the results as far as what kind of percentage are we going to see in prices? That’s hard to say, for sure. In terms of dollars, I think you’re going to see double, and certainly need items, you know, in the triple digits of price increases, we really believe that the real rate of us inflation is already around to be five to 6%. And there’s no doubt that we’re in a hyperinflationary period. It’s just that we’re waiting for the results of that to be you know, price inflation.
Jason Hartman 19:09
So what has to happen for this hyperinflation to occur by the academic definition that Daniel was talking about, which is just really money creation, we’re already there, but people haven’t really noticed it yet. And I kind of like to say that we have inflation already and everything that really matters and everything that’s optional. We have deflation, but is it just a matter of that money trickling down from Wall Street and the banks? Are they just sort of hoarding that money and it hasn’t hit the streets yet, if you will? What has to happen for people to really notice this in their daily life?
Daniel and Gerard Adams 19:43
Well, the average American is already noticing because they’re paying at the pump food prices. This is a statistic that’s a month old now but there are 27% year to year when you combine food and energy up roughly 17% year to year so the average person is already filling this up to one second day. I mean, even food stamp usage right now is at an all time high over 40 million people are definitely seeing it. 40 million people
Jason Hartman 20:09
on food stamps.
Daniel and Gerard Adams 20:10
Yeah, it’s at an all time high. I think it just topped 40 million. I
Jason Hartman 20:13
think it’s 40.2. And you know, the nanny state is here, isn’t it? We are we’re living in a socialist country. I mean, it’s just like, Everywhere you look, the government is showing out money. It doesn’t have to buy votes. It’s just amazing to me. Incredible.
Daniel and Gerard Adams 20:27
I was at the grocery store today and with my wife and you know, I don’t know if anybody else has noticed. But I sure did. You know, when you look at like, the dryers ice cream, they are smaller than they, they were last year, very good boy,
Jason Hartman 20:41
same price. Another form of inflation, just shrink the size, keep the price this
Daniel and Gerard Adams 20:45
absolute. That’s a big thing. And you see it going on with Frito Lay here in Southern California. There’s no more 24 packs of soda. Now it’s 20 packs of soda, but still the same price. So there’s a lot of shadow inflation out there as well.
Jason Hartman 20:58
Yeah, that’s a very good point. I know a lot of people don’t really notice that that packages are shrinking all over. I was out at dinner last night, and I ordered a drink. And I commented to the person I was with, I said, Hey, this martini glass is actually smaller than it used to be. And I remember thinking before this restaurant has very big generous glasses, and the glasses are getting smaller. So you’re absolutely right. No question about it. Stay tuned, we’ll be back in less than 60 seconds.
Daniel and Gerard Adams 21:25
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Jason Hartman 21:58
Talk a little bit more if you would about the Dow gold ratio because I think that is a very significant measuring stick gold is a reliable measuring stick and the old joke is 2000 years ago, you could have purchased a toga and a pair of sandals with one ounce of gold. And today you can buy a man suit and a pair of shoes and it’s pretty darn consistent. And when you talk about the Dow gold ratio, Peter Schiff about two years ago, had a very interesting interview, very telling on CNBC with Mark Haines, and he said that there has been no real appreciation in the value of the Dow since 1929. The returns have been dividends. That’s it, then he had this guy from BFA on and you may you’ve probably familiar with this video, it’s floating around. And he’s trying to argue that the power of a processor has increased and all of that hedonic scams that they use to measure inflation and lie to us about it. But what else do people need to know about the Dow gold ratio Talk to us a little bit more about that because I think that is a very, very interesting metric that everybody should be looking at.
Daniel and Gerard Adams 22:59
During Gold’s last bull market we saw gold rise to from $35 to over $850 for over 2,000% gain. And from Gold’s low in 2001. of that thing was about $255 per ounce. We saw the same percentage game in that bull market to send it to over $6,000 per ounce back in 2001. The only way to look at it is with the Dow you know the Dow Jones and gold ratio, which at in 1980 had bottomed at one meaning that the price of gold match the Dow Jones if we saw gold in the Dow Jones meet the medium current levels, we could see it rise to over $5,000 per ounce. Today,
Jason Hartman 23:42
that’s an incredible we’re in this huge mess of entitlement liability and I’ve identified six ways that the government might get itself out of the mess and I just like to run them by you guys and see what you think if I may The first one is that they could just default on the promises. This of course is way too harsh. It’s politically unpopular. I don’t think this is going to happen but it may to a small extent or they just say hey, we can’t pay the Medicare we can’t pay the Social Security etc. Again, harsh unpopular unlikely number two raise taxes Of course they can’t raise taxes enough to pay for this liability they’re in so underwater it’s it’s just not possible but think it’ll be somewhat of a blend of all six of these things. Number three is have a yard sale sell off assets to raise money. A few years ago we thought about selling the ports to Dubai that was a big political football the BLM sells off land now I guess we’re considering selling military equipment to Muammar Qaddafi or former enemy foreign country’s own toll roads and so forth in the US number for the American military or the Economic Hitman. I had john Perkins on the show I’m sure you know who he is really interesting guy just steal from other countries steal their assets, their commodities. Number five would be good news and that would be innovation, especially in the area of technology. Energy, biotech nanotech, that would be good news. But number six and most likely, and I think this is what you guys really agree with is just simply inflate their way out of the debt, huge inflation, they’ll keep the promises and nominal dollars, while in real dollars, everybody just gets poorer and poorer, and our debtor countries, China, namely will get paid back in more and more worthless dollars when he thoughts on those six ways out of the mess
Daniel and Gerard Adams 25:26
looking at the list you just provided, you know, certainly Of course I agree with you it’s going to be default by devaluation, the government has no problem doing this. I mean, if you look at everyone runs around talking about our standard of living how well it’s you know, it is compared to 20 years ago, look, because of the results of all the money creation, all the borrowing, you know, the borrowing from the future with foreign borrowed prosperity, here you have, it now takes two people to raise a family, it takes a credit card, it takes a homoclinic credit, you know, I just talked to a couple a few days ago. And they told me how they were debt free now, because they had lumped every credit card and loan they have into their house. Okay, so people don’t even understand the concept of really being debt free anymore, because they’re just so used to this lifestyle 20 years ago, took a grocery clerk to raise a family of three or four. And now it takes two people working full time jobs. So the standard of living has deteriorated. When you look at seniors, they’re absolutely being ripped off. Because as bad as it seems, when you look at the debt for Social Security and the obligation for Social Security, it would be even worse, if we just calculated inflation the same way we did 2530 years ago, according to john Williams, from shadow stats, right now we’re under paying our senior citizens 43% because of all the different gimmicks that you’ll see in melt up that we do with inflation, how we calculate the CPI, which is how we give them their standard of living increase. So if you watch the movie melt up, for those of you who have already seen it, you’ll know that we’re no longer measuring the cost of living, we’re measuring the cost of survival.
Jason Hartman 27:03
Yeah, that’s, that’s a great point. And you are so right about that. Because with substitution and waiting and hedonic, and then just out stripping things out of the index, it’s completely bogus. And the government has a huge incentive for misleading the public number one to buy votes and make them think they’re having a better life than they really are. But number two is all of the entitlements are indexed to the CPI, which is controlled by the government. So there’s a huge motivation to mislead when it comes to this no question about it. What do you think people should do? I mean, really, what is the strategy of an IRA? And namely, what sectors do you think will see this hyperinflation and this is in a good way for the investor? Obviously, you guys like precious metals? I think, right?
Daniel and Gerard Adams 27:52
Absolutely.
Jason Hartman 27:53
Are there any other areas where you see big opportunity for investment?
Daniel and Gerard Adams 27:57
Just so you know, we we released a review on our website, a golden silver bullion review for those people who do want to invest into the gold or silver, many websites out there, they actually sell the bullion right online, we’ve reviewed many of them, and you can visit our website for those reviews. But we’ve made the best investment of the next decade to be silver, we believe silver actually has more upside than gold. And it’s in history, it’s always outperformed gold, and it’s actually a lot cheaper than gold right now, a lot of people, we get a lot of questions and emails from our members that say, you know, it’s hard for them eggwin A Gold’s, you know, $1,200 an ounce, but you can actually invest into silver. And it’s what you know, below $20 an ounce still right now, and we feel this, there’s a lot of upside potential there. But other than silver and gold, we do believe that agriculture, as you know, as we’ve seen, food inflation, we believe agriculture is going to continue to, to rise. And we’re very bullish in agriculture, as well as oil, we’re getting ready to release our next stock suggestion, which will be an oil play, it’s our first oil play. And we do believe oil has a lot of upside, especially to take advantage of the recent BP oil spill. Again, if you sign up to our newsletter, and we consistently put out different suggestions in different companies, not only do we suggest to invest into the bullion itself, but we also do suggest to play the miners and there are companies out there that are actually producing the gold and producing the silver and farming. And these are the companies that we believe actually even have more upside based on the market. So again, sign up to the newsletter, and you can go to the website and see many of the sub stock suggestions that we’ve had, you know, almost all our stock suggestions have been up since our since we’ve released our our website, so definitely check it out.
Jason Hartman 29:35
Excellent. And you know, I’d have to say that as far as the metals go, and I’m not as much of a metals bug is you guys are but as far as they go, I think you’re absolutely right that silver is the play because traditionally that silver gold ratio, I think has been about 17 to one and it’s currently 68 to one so if that tradition holds or even comes anywhere near where it used to be silver has a big upside. Absolutely agree with you there
Daniel and Gerard Adams 30:00
The American Silver Eagles that have been sold as is also at an all time high right now,
Jason Hartman 30:06
In terms of the the number being sold.
Daniel and Gerard Adams 30:10
I mean, yes. But there’s not a lot of supply out there, you know, with compared to the demand. So there’s definitely a lot of different characteristics out there that point December being a huge investment opportunity right now. Yeah, and
Jason Hartman 30:21
it’s an it’s truly an industrial metal, whereas gold, it really isn’t anymore. So I do want to run a couple things by you in terms of the metals. Look at I’m a metals investor, and I agree with you that it’s not bad, I just kind of look at metals is the way to preserve your wealth, I don’t really call them as much of an investment as many other people do. And I’ll tell you why. And I just like to run this by you. They don’t offer any financing or income or tax benefits. And if you’re a little paranoid like I am, they’re subject to confiscation, potentially, and also subject to manipulation by central banks. And I think they’re being largely manipulated now. And I know that you had a video on silver manipulation. And you were right about your prediction there. That was just about a month ago, I believe, which I found interesting. And, you know, I agree that manipulation can never go on forever. But the question is, can I go on longer than any of us can wait. And there’s that old joke about the markets referring to the stock market? The markets are irrational? Well, yeah, you may be right, but that the market can remain irrational longer than we can remain solvent. So I’m certainly think you probably agree that central banks are manipulating the prices of the metals, right?
Daniel and Gerard Adams 31:34
Yeah, there’s no doubt about it. It’s to our advantage. I mean, you don’t want to buy something that’s been manipulated up, you want to buy something that’s been manipulated down. So when you buy silver for 18 bucks, send a thank you card over to JPMorgan, because the reason why you can buy it for $18 and not pay north of 100 $200 for an ounce of silver. And as far as the metals not offering a dividend, specifically, looking at what we believe, like Gerard said was, you know, the investment of the decades silver, if you’re a technology investor, or a commodity investor, I mean, silver is where you want to be because silver, let’s say you like using cell phones are going to do really well or you think, you know, China and Asia are gonna industrialize? Well, that’s what the players right for silver is in all these different components that we use every day. It’s in computers and cell phones, it’s a catalyst for medicines. It’s in the windows for skyscrapers. So if you believe Asia is going to continue to industrialize, we are using so much silver. And the really the supply and demand situation is the most bullish factor for silver. If you look at 50 years ago, above ground available silver was 10 billion ounces. We have shrunk that within 50 years, down to less than a billion ounces of above ground available silver.
Jason Hartman 32:50
That’s amazing. It really is.
Daniel and Gerard Adams 32:52
Yeah, we’ve already started to see that their silver tighten up. And you know, we definitely believe that there will be there could be a major short squeeze in the near future. And that’s why we try to expose it in melt up and we hope that many people out there see melt up and can help spread the word and the more that we expose it, you know, I think the closer will become to seeing that squeeze.
Jason Hartman 33:12
Yeah, I agree with you. This is just such a big scam. And so few people are really aware of what is going on with the ultimate weapon against them. And that is the value of their currency. So in what form would you buy silver Silver Eagles that your favorite
Daniel and Gerard Adams 33:26
Personally, I don’t think it matters. I personally just buy silver bullion or silver mining stocks. So but uh, one thing I can tell you what not to do is don’t get into the collector value. Don’t start paying $200 an ounce for silver, I was on some shit, you want to buy the metal. Right, the bullion, the first quarter of 2010 us ministry sold over 9 million American Silver Eagles Just so you know,
Jason Hartman 33:49
Incredible. So there hasn’t been much talk about this. But I have read and heard a little bit about it. And that is the possibility that the komax exchange is a Ponzi scheme. And I tell you if if that is true boy we are in for a very rude awakening. A lot of people think they’re investing in the metals because they own it in a fund and an ETF. And that’s really to me just another fiat currency, they’re getting a piece of paper for their dollars and they think it’s a piece of metal yet they’re not taking delivery of it. So I like your system, which I think boils down to physical delivery and mining stocks. So if you’re in the metal, you hold the metal. Have you heard anything about that in terms of the COMEX?
Daniel and Gerard Adams 34:35
Yes, we have and that’s the main reason why we’ve said you know, I think there will come a time where people will call and ask for the physical silver, we could see a comics default we definitely suggest like you said to buy yourself hold on to it yourself. You know many of those companies that sell it are on our website, and we definitely believe in a lot of the miners. Right now. There’s a lot of silver miners out there that we are researching that and that we’ve also suggested that around On our website that are significantly undervalued fundamentally, and, you know, we definitely think there’s a huge opportunity there. And again, once that comics default, happens, and people call for the rest of the actual physical silver, we can see one of the biggest short squeezes that the world has ever seen.
Jason Hartman 35:17
Yeah, I tell you, if everybody asked, and that run on the bank, if you will, on the komax ever occurs and people want to take delivery. I don’t think they have all the metal there. I mean, I think that is a very strong possibility that that is true. But again, there’s no way for me to personally know what do you think about the other metals? What do you think about copper, palladium? Platinum? Do you guys have any thoughts about that? Are you just kind of all around silver?
Daniel and Gerard Adams 35:42
Well, I personally would sound like a broken record, because I don’t buy the other metals as much, because there’s every argument you can make for Platinum or copper, that same argument is there for silver only times 100. It just like the same argument you can make for gold, it’s all there and silver, but it’s not vice versa. I cannot make all the arguments that I have for silver for gold, I certainly can make all the arguments I have for silver for copper and platinum. So when it comes to the smaller investor, I believe silver is without a doubt their best opportunity.
Jason Hartman 36:15
Okay, good. What would you like people to know? And do just kind of summing this whole thing up? I mean, definitely, people have got to see the documentary you’ve created melt up, which is great. I can highly recommend that myself. What else should people know? You know, you know what I want to know, when? That’s the million dollar question everybody wants to
Daniel and Gerard Adams 36:35
know, but right now, I mean, that everybody really needs to start paying attention and educating themselves. And that’s the main reason why we’ve created an IRA is to help educate people, people need to get educated people need to start spreading the word. So their friends and family, people need to start watching documentaries, like melt up, and they really need to start looking at the facts and start following the mainstream media. So you know, the first thing is basically, I think people should go to inflation.us, they should sign up, they should sign up to many other publications out there and start following people that we that we also believe in my grandpa, and we felt Peter Schiff and Jim Rogers. And obviously, we had an exclusive interview recently with Joe cilenti, which was great.
Jason Hartman 37:15
Had him on the show, too. He’s great.
Daniel and Gerard Adams 37:16
Yeah, yeah, he’s great. And we, you know, we suggest checking out the trans Institute. And we definitely think that people need to start getting out of the US dollar and positioning themselves into gold and silver things that will preserve their purchasing power. But most importantly, it’s, we want people to start getting educated. Very good advice.
Jason Hartman 37:33
Well, thank you so much, gentlemen, for joining us today. Really appreciate it. And I want to just tell you, keep up the good work. give out the website if you would.
Daniel and Gerard Adams 37:39
www.inflation.us inflation.us.
Jason Hartman 37:42
Everybody go check that out. Daniel and Gerard, thank you for joining me today.
Daniel and Gerard Adams 37:47
Thank you. Thank you for having us on.
Announcer 37:48
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