With the Great Recession still upon us, and many men and women still unemployed throughout the country, financial expert and best selling investment author, Mike Maloney joined me to discuss how families can turn an economic crisis into opportunity. He discussed what lies ahead for the U.S. economy, why you should invest in gold and silver, how we can prepare our families for another downturn, and much more.
Candace Rose: What do you think lies ahead short term for the U.S. economy?
Mike Maloney: “I try to never think short term. Short term, you just have a whole bunch of noise going on. Markets go up, markets go down…you don’t know what’s going to happen tomorrow. And then the news media tends to keep us preoccupied with things like the debt ceiling and so on, which is absolutely delusional. We live in a world that has a monetary system that requires ever increasing levels of debt or the whole thing goes into a deflationary collapse. Therefore, a debt ceiling is ridiculous and they always have to raise it. It’s just designed to drag out this dog and pony show every now and then, and keep us distracted from the things that are really going on.
And what is going on right now is the greatest financial emergency in history. The Federal Reserve just last month- people aren’t paying attention to this now because the news is a month old. Ben Bernanke announced that he wasn’t going to taper. Taper is just a reduction in how much currency they print each month. It took 200 years to go from no dollars in existence to about 800 billion. That’s what existed in 2008 before the crisis. That’s 0.8 trillion. They now create more than a trillion every year, and they’re not stopping. That’s 200 years worth of currency creation every year. The scale of this emergency is unfathomable. There will be economic consequences to the feds actions. They just don’t realize what the economic consequences are going to be.
Throughout history what you always see is that gold and silver always do an accounting of the expansion of the currency supply. And we’re expanding currency supplies around the planet like we’ve never seen before.”
Candace Rose: What can people do now to best prepare their families for another downturn?
Mike Maloney: “Well, the best thing that anyone can do for themselves is to become financially educated, and a foundation is to learn some monetary history and some simple economics. Those sound like really boring subjects, but they’re not. They are actually very exciting when you see how history repeats, and how it reflects on your life. The best place to get this foundation is at HiddenSecretsOfMoney.com. My recent video series is all about this and it’s all free.”
Candace Rose: How should people be investing their money during today’s uncertain times?
Mike Maloney: “I don’t make recommendations. What I tell people is what I do; and I’ve been buying gold and silver now for the past decade, and I continue buying. I think that gold and silver are still undervalued compared to the quantity of currency that they’re printing. There are only two currencies they can’t print, and that’s gold and silver; and gold and silver are also real money. The expansion of the currency supply – gold was $850 back in 1980, it’s a little over $1300 right now. Silver was $50 in 1980, it’s selling at about half that, at about $23 right now. They’ve created about 10 times the amount of currency since then. So for gold and silver to be in a bubble, gold would have to be about $8500 and silver would have to be $500 an ounce- and it’s only $23. They are on sale right now, they’re selling at absurdly low prices, and what happens periodically throughout history is the public wake up and realize how much currency the governments are printing and they rush back toward gold and silver and they bid up the value to account the expansion of the currency supply. The last time this happened was the 70s, before that was the 1930s. And during the 1970s gold rose 24 times its price, silver rose 36 times its price. The precious metals market has just barely begun. You’re going to see something breathtaking happen in the future here. I believe this is the greatest opportunity in the history of mankind, because this is the greatest crisis in the history of mankind.”
Candace Rose: As you mentioned, you’ve introduced some new educational video series “The Hidden Secrets of Money”, can you tell us more about it?
Mike Maloney: “It’s shot in 16 countries, we have two full time animators. It’s just a very entertaining and simple look at monetary history, how it reflects on your life. People think these subjects are boring…they’re not. They’re very exciting, they’re intriguing and what it leads to is when you learn these things, you make different choices. Those different choices create a different future, and it’s probably a far better future for the individual.”