• Blog

    Gold & The Great Reset

    Mike Maloney forecasts what's next for money, markets & bitcoin
    by Adam Taggart

    Friday, November 27, 2020, 9:01 AM

The composition of the US dollar, including what it is backed by, has been replaced many times throughout America’s history. And another replacement is currently underway, warns monetary expert Mike Maloney.

After President Nixon fully severed its ties to gold, our government leaders have increasingly relied on expanding the currency supply to paper over (quite literally) today’s problems at the expense of the dollar’s purchasing power tomorrow.

As Mike explains in his excellent video series Hidden Secrets Of Money, such willful debasement of the currency by furtive and shortsighted politicians is nothing new. Over thousands of years, since the Romans intentionally progressively shrank the silver content of their coins, history is replete with such examples.

And now 2020 has arrived. The Federal Reserve’s response to the pandemic-induced economic slowdown has unleashed more ‘thin air’ creation of new dollars than ever seen at any prior moment in history:

21% of all US Dollars have been printed in 2020

And the leading developed countries of the world are now discussing the need for a Great Reset, in which it’s being proposed that new national cryptocurrencies (perhaps laying the groundwork towards a ‘one world currency’) replace the current existing fiat versions.

Using the lens of monetary history, Mike sees all this as simply a modern spin on the same cycles the world has seen before. Politicians will deform and abuse the currency for their own immediate needs until the system collapses, and a new, more sound alternative emerges from the ashes.

Which is why he remains so confident that gold will strengthen dramatically in the coming macro environment, despite being in a short-lived corrective phase at the moment. In fact, he sees today’s weakness as an excellent accumulation opportunity for both current holders as well as those new to owning precious metals.

And that’s why Mike agrees that now, more than ever, is the time to partner with a financial advisor who understands the risks in play, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate:

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

Related content
» More

25 Comments

  • Fri, Nov 27, 2020 - 10:16am

    #1
    brushhog

    brushhog

    Status: Gold Member

    Joined: Oct 06 2015

    Posts: 559

    18

    Great interviews..

    This is exactly the types of subject that inform my opinion that the Great Reset isnt going to be anything like what the elitists are hoping for.

    I know right now they seem to be controlling everything and almost all-powerful. But that illusion is going to end. There ARE natural laws that govern the economy, politics, and life in general. Though it seems like the powers that be have suspended gravity...its only a short term illusion.

    All these plans of controlling everyone and everything with technology, MMT, and the rest of it is a pipe dream. Its not going to happen, at least not for very long.

    There are certain patterns that governments and societies fall into. One of them is the loop of currency devaluation, followed by inflation, followed by price controls, followed by shortages, followed by rationing, followed by a break down.

    The problem with government tyranny is that it is anathema to prosperity but it REQUIRES prosperity to sustain it. Police and enforcement mechanisms have to be paid to force everybody to march to the tune. It takes alot of muscle, and muscle is expensive and it gets more expensive the more tyrannical the system becomes. Its very hard to sustain and at every turn people become more rebellious.

    I dont know what you have encountered but in my world people are PISSED already. They all say the same things...the elites have corrupted the system, everyone knows the election was a fraud, and everyone is looking at this "great reset" scheme with resentment and growing rage.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 10:29am

    #2
    Mike from Jersey

    Mike from Jersey

    Status: Gold Member

    Joined: Jan 22 2018

    Posts: 558

    1

    Mike from Jersey said:

    Here is a link to a graph showing the historic ratio of the gold price to the monetary base.

    https://www.macrotrends.net/2485/gold-to-monetary-base-ratio

    The graph goes back to 1918.

    The greatest historic increase in the monetary base of existing "created dollars"  (the size of the Federal Reserve balance sheet) in relation to the price of gold has occurred in past 18-19 years.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 12:44pm

    MKI

    MKI

    Status: Bronze Member

    Joined: Jan 12 2009

    Posts: 350

    2

    Reality of goverment

    The problem with government tyranny is that it is anathema to prosperity but it REQUIRES prosperity to sustain it

    This isn't true. A government, tyranny or no, merely requires survival. Certainly not prosperity! The USSR lasted 70 years. This is a person's entire lifetime.

    The USA, China, and Europe have various hybrid systems of "tyranny". IMO this sort of government can last much, much longer that the USSR, primarily because the population kinda sorta believes they are free. The average Russian wasn't so stupid.

    On a sidenote: I'm constantly astounded how my fellow man actually believes in our political narrative of "freedom". I doubt this will last another decade. In truth, elections are mere playacting as we know from the empirical evidence that voting doesn't matter to legislation as the wealthy and business control what's important. Note this is no defeatist attitude, merely a realistic one that provides direction and focus to one's activities in the world (especially investing). A misunderstanding of reality due to belief and ideology is why gold bugs have been so spectacularly wrong since 1971. A strong sign of intelligence is how quickly one can incorporate new and seemingly conflicting data into whatever narrative they currently hold. It's difficult. In these parts, a similar narrative "you cannot grow to infinity" makes people feel good but doesn't predict a thing. Every investor needs to reflect on JMK's famous line: "In the long run, we're all dead".

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 1:33pm

    gkcjrrt

    gkcjrrt

    Status: Member

    Joined: Sep 20 2016

    Posts: 36

    1

    gkcjrrt said:

    Police and enforcement mechanisms have to be paid to force everybody to march to the tune. It takes alot of muscle, and muscle is expensive and it gets more expensive the more tyrannical the system becomes

    All true.  However, the Fed et al can generate unlimited capital and direct to whomever they want.  Think ancient Rome where they had to tax the population to pay the military.  No more, now they "print" and pay cops, mercs, covid social works, defense contracters, etc... you name it, anyone that needs to be persuaded with greenmail - and that appears now to be a large part of the population with all the stimulus and talk of UBI.  It's a quick way to enslavement and tyranny and having the power to print money and bribe or buy protection is the greatest threat IMO.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 1:35pm

    #5
    Lions

    Lions

    Status: Member

    Joined: May 19 2018

    Posts: 38

    1

    Comment on gold and the great reset

    Well Mike Maloney is good, I do not feel that he compares to Jim Rickards as a historian. I would be interesting to hear an interview with Jim Rickards. He also does not sell gold or silver, which I think is an important thing.

     

    Also, I wonder what Mike Maloney thinks about whether or not the government will confiscate silver? If they confiscate gold, I don't see what would stop them from confiscating Silver, as it is also considered a monetary asset, especially since they don't have any.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 1:38pm

    David Allan

    David Allan

    Status: Bronze Member

    Joined: Nov 15 2009

    Posts: 70

    3

    Gold bugs have been spectacularly wrong???

     "A misunderstanding of reality due to belief and ideology is why gold bugs have been so spectacularly wrong since 1971."

    Say what? A google search reveals

    Gold price (average close) 1971             $40.80

    Dow (average close) 1971                  884 points

    Taking gold at 1800 and Dow at 30, gold is up x44  while Dow is up just x33

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 1:59pm

    brushhog

    brushhog

    Status: Gold Member

    Joined: Oct 06 2015

    Posts: 559

    6

    Disagree MKI

    "This isn't true. A government, tyranny or no, merely requires survival. Certainly not prosperity! The USSR lasted 70 years"

    If you have any experience with people from the USSR, they will tell you that the last 20 years were a free-for-all. The government had lost control. Black markets ruled the day, and the enforcement mechanisms were broken.

    People I know who left the USSR in the last years didnt leave because of lack of freedom....they'll all tell you that they had almost total freedom because the government had stopped functioning for a long time. They left because the economy was a bust, and what was left of the communist legacy was already turning to ruins.

    We saw the same thing in China which adopted capitalism and freer markets in many ways than we have here in order to maintain itself. Venezuela, same story. When they were flush with money the adopted socialism which bankrupted the whole country and its basically anarchy right now. The government is too weak to do much. Its all black markets and everyone stepping around the government.

    I also disagree that it can last longer here because people believe they are free. I think that illusion is pretty much gone now. The more they clamp down the more angry people are becoming. I'm all over the net and talking to people and the general consensus is angry people who distrust the government....not a good start to the pipe dream of the Great Reset.

     

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 2:14pm

    brushhog

    brushhog

    Status: Gold Member

    Joined: Oct 06 2015

    Posts: 559

    0

    gkcjrrt the power to print

    .....has limits. And we've seen countries go through this time and again throughout history. Wealth cannot be printed up. Currency is a medium of exchange that allows us to trade goods...if they print up more money, it doesnt create more things.

    It just waters down the value the money. They can't support all the markets, pay everybody a UBI, pay the police to enforce their edicts, bribe the whole world etc,etc all at the same time. Its going to break down...and fairly soon, I suspect.

    Its been tried many times before and it always fails. Maybe this time it's different but I see no reason to believe so.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 2:14pm

    MKI

    MKI

    Status: Bronze Member

    Joined: Jan 12 2009

    Posts: 350

    2

    Gold bugs have been spectacularly wrong???

    You neglected Dow dividends plus the extreme cost of holding/transacting gold when buying it and selling it paycheck after paycheck. Nobody "buys a lifetime worth of gold in 1971" and hold it forever. Those who have actually traded in gold, stocks, and RE in real life since 1971 in the USA know the reality on the ground, why rich people own stocks and real estate and hold about 10% in gold.

    But that wasn't my point, which was gold bugs have been predicting the collapse of the fiat system since 1971 and have been spectacularly wrong in doing so.

    Login or Register to post comments

  • Fri, Nov 27, 2020 - 2:27pm

    brushhog

    brushhog

    Status: Gold Member

    Joined: Oct 06 2015

    Posts: 559

    4

    The

    The idea that you could have "bought the dow in 1971", is not an actual thing. Of the 12 companies that made up the original DOW, I dont think many of them even exist anymore and some that did arent even on the Dow anymore.

    When a company underperforms, it gets thrown off the "Dow". I think GE was the last original company and it was thrown out last year. So if you bought all the conpanies on the "dow" in 1971, you'd probably be bankrupt today.

    As far as "transaction cost/holding cost" of gold they are lower than broker's fees...1% over spot in most cases. As far as these high "holding cost" you mention...I have to disagree. Holding costs are 0. You can fit a million dollars worth of gold in a shoe box.

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 2:24am

    #11
    Geedard

    Geedard

    Status: Bronze Member

    Joined: Oct 13 2014

    Posts: 84

    4

    March 2021 - when the stock market will dive and the Great Reset will begin

    March 2021 - is the month that I believe the stock market will dive and the Great Reset will truly kick off for real.

    Why?  Because the Davos crowd are slated to meet in Luzern, Switzerland in May 2021 (18th to 21st May 2021).      To justify the Great Reset button being pressed, I believe they will want the world to believe that they are heroes "solving" a big global fearful economic problem.      I believe they will create perfect timing.      I believe they will "trigger" a global economic problem + stock market dive circa 6 weeks before they meet.    That will be enough time to elevate a lot of fear and a problem big enough for the WEF crowd to "solve" during the 3 day event.   They will leave the 2021 WEF with an aligned "action plan" that will then be implemented immediately thereafter.

    Before the meeting they will announce COVID vaccines (so COVID will no longer be seen as a future problem).   And the Great Reset will allow them to "fix a global economic problem" of their own design...and at the same time claim it to be a perfect green solution too...whilst sliding totalitarianism in through the back door.

    How do I know all this?   I don't...I'm just guessing...I'm no expert.   Let's see.

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 5:28am

    Ian B

    Ian B

    Status: Member

    Joined: Mar 19 2018

    Posts: 13

    6

    Great Reset in March 2021?

    Hell of a lot to go wrong before then!

    I agree up to point, that is what the Davos Crowd are planning for, but knowledge of the Great Reset is getting out amongst the "proletariat".

    Resistance to vaccination is also growing - which is surely the intended master key to keeping everybody docile when things get difficult. Here in the UK all the focus is on the vax to “get rid of Covid” and we are due to start in two weeks!

    On top of that, due to the damage the lockdowns are doing, Boris, Matt Hancock (Health Secretary) and the scientific advisors are hated viscerally by many and frustration is building with the endless "tier" restrictions that will supposedly go on until April! Many (government side) Members of Parliament are kicking up a fuss and may well vote against.

    The police are fed up with enforcing the inconsistent and arbitrary lockdown rules and it is doing their reputation no good at all. In Liverpool recently, a small group of Police trying to disperse a demonstration were taunted with mass chants of “Shame on You!” It was relatively peaceful until one of the Police squirted pepper spray point blank into a protesters face. (Not reported by the BBC obviously). Then it was arrest everybody they could get hold of.

    The resentment will build.

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 8:02am

    #13

    000

    Status: Bronze Member

    Joined: Dec 10 2013

    Posts: 397

    0

    The Future Looks Bright, You Will Be Happy or else...

    https://www.biospace.com/article/the-future-looks-bright-for-mrna-based-vaccines/

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 9:13am

    #14
    EddieLarry

    EddieLarry

    Status: Bronze Member

    Joined: Jul 04 2020

    Posts: 174

    1

    Don’t spend it all in one place

    Gold was up $2.60 on Friday!

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 3:17pm

    Mots

    Mots

    Status: Silver Member

    Joined: Jun 18 2012

    Posts: 446

    1

    "We saw the same thing in China........"

    BrushHog
    You assert that "we saw the same thing in China....its basically anarchy right now. The government is too weak to do much. Its all black markets and everyone stepping around the government."
    This is very interesting and completely opposite to what I "saw" in China.  Maybe I went to the wrong place. Could you please post a reference or some evidence of this? Thanks

    Login or Register to post comments

  • Sat, Nov 28, 2020 - 3:56pm

    #16
    Chuck in Belize

    Chuck in Belize

    Status: Silver Member

    Joined: May 23 2020

    Posts: 216

    1

    What could possibly go wrong?

    Now, here's a headline that's SURE to cheer you up until you actually think about it.

    It's a rhyming verse from history ripped right from today's headlines.

    What could possibly go wrong, I ask?
    Let's all party like it was 1929, I suppose. That's what it seems to suggest.
    We may not like the hangover, though.

     
    Dow, S&P 500 head for best November since 1928
     
     
     
     

    ReplyForward

    https://www.foxbusiness.com/markets/dow-sp-500-head-for-best-november-since-1928

    Login or Register to post comments

  • Sun, Nov 29, 2020 - 5:20am

    brushhog

    brushhog

    Status: Gold Member

    Joined: Oct 06 2015

    Posts: 559

    1

    Never said China was anarchy...

    Please reread my post. I said China had to adopt capitalism in order to maintain itself.

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 1:36am

    #18
    planfortomorrow

    planfortomorrow

    Status: Member

    Joined: Dec 28 2017

    Posts: 2

    2

    planfortomorrow said:

    Ken McElroy predicts a Real Estate Crash in 2021.

    Steve Keen sees a Financial Crisis in 2021

    We will be dealing with the Corona Virus into all of 2021 and hope that goes without a glitch.

    We have 10 million people still looking to be employed so they can pay their bills. Many won't be able too so housing is going to get creamed is a good guess. When the housing gets to start rolling like a snow ball, downhill, it is going to really mess things up. The thing I don't always understand is how the housing industry, a Pillar of strength now may get creamed if Commerce ( Wilbur Ross) don't allow the Mill operators to start cutting more wood at the Mills and allow Canada to supply us with their cheaper lumber and supply us enough so the stick wood is available at much better prices so that contracts already signed can be completed but, if we don't start stockpiling and lower these prices then the real estate bust is going to be a Man made blunder that need not happen. " it doesn't have to be this way".

    We will by June have an oil shortage and a production cut in American Oil Company's where oil production goes from 11 million (+or-) down to 5 million a day come June if Art is right and he is the best so?...

    You can see how each will interact, causing a Deflationary spike and the spin off economy taking a horrible hit. This of course will bring on a massive Bankruptcy run that will ruin the middle class further and severely hurt Banking and takes its toll.

    All of these and more are pillars in our Financial World and all work for and against each others. So Yes, I can see some trouble that are basically baked in the cake.

    My only concern very soon will be to get into all cash and get my Cabin up. After this I think it best to be conservative and the only investment I will contemplate is Oil and Gas. Barb and I are living well below our means so we will get though this pretty well as we have no debt and will only have to wait to see what rebates are offered before we put in our Solar Panels. I believe subsidies will all take effect pretty early on in the Biden Presidency so will just be patient. Gas is fairly cheap and should still be cheap enough where I can wait for the better prices for Solar so will wait for clarity.

    My only focus will be to get our Home put together and asses in what direction we are heading. We have lots to do yet so will take things one day at a time, hire some work out so we can get more of what we need done so that our little Farm starts paying for itself in mental equity. I cannot imagine that our plans will only make things exponentially better than even this year and any year that puts away the calories of tomorrow is a good accomplishment.

    Our times spent talking allows us to dream of excess food, excess power, and more things to accomplish just to better run our system where we have much to barter and saving enough in energy that we can put away for the next upgrade so hopefully the systems we put in while watching our consumption would then result in a system that pays for itself.

    Finally, with being out of debt we will not need our wages so all of his can be banked and invested, we won't need the cash...not now anyways. We have set aside what will be needed for taxes for the next 10 years, we will invest this cash to to make enough in the investment to factor for inflation. It is an amazing feeling to know we will not pay interest on anything again and that peace of mind that utilities are all we need to pay and that looks to be water only. The bulk of our energy needs will be Solar Powered. Once I see the costs with the government in there offering subsidy's, the State Government theirs's and rebates from Solar Company's. Helping that we will be as resilient as can be. We will have sundries to purchase that we can't grow so we will buy enough flour, sugar and stuff to stay well stocked.

    If 2020 wasn't enough, I look for 2021 to be good and bad, so a repeat of 2020 only with a different set of issues. Lord knows I love this stuff.

    Peace BOB

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 7:46am

    #19

    Beckett Bennett

    Status: Silver Member

    Joined: Feb 06 2011

    Posts: 114

    2

    Would you pass Polly’s test?

     

    Group conformity, as seen in the video, is very powerful. How many of YOU would pass the test?  I would.

     

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 8:48am

    #20

    Beckett Bennett

    Status: Silver Member

    Joined: Feb 06 2011

    Posts: 114

    2

    Can’t make this stuff up - strip clubs deemed as “essential” in CA so Paster strips (sorta) to be able to have church open,

     

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 9:02am

    Mohammed Mast

    Mohammed Mast

    Status: Platinum Member

    Joined: May 17 2017

    Posts: 1437

    2

    Polly?????????Really????????

    Well it does not take long in the internet world for a site to go downhill quickly.

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 9:16am

    #22

    Beckett Bennett

    Status: Silver Member

    Joined: Feb 06 2011

    Posts: 114

    5

    Mohammed Really?

    A disparaging remark to belittle and diminish.  No discussion on “group conformity”?  Over the target maybe?  PS, did you miss me?

    Still a curmudgeon! AKGrannyWGrit

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 11:42am

    Susan7

    Susan7

    Status: Bronze Member

    Joined: Feb 15 2020

    Posts: 163

    1

    Susan7 said:

    Mo, perhaps you can patiently explain to this “stupid Amerikaan” what you found objectionable in the video. I thought it was pretty good.

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 12:47pm

    #24
    cgarcia

    cgarcia

    Status: Silver Member

    Joined: Sep 02 2020

    Posts: 116

    0

    Gold will devaluate severely, hoard food instead

    Gold will devaluate a lot.

    IMO it's better to buy long lasting food to both eat it yourself (you can't eat gold) and use it as barter for other goods.

    Nice salted meats come to mind as they have protein, all the nutrients in meat, salt and they last a long time.

    While you can hoard grains and they last a long time, you can't become vegan and expect to remain healthy for a long time. You need meat.

    Login or Register to post comments

  • Tue, Dec 01, 2020 - 6:13pm

    westcoastjan

    westcoastjan

    Status: Gold Member

    Joined: Jun 04 2012

    Posts: 473

    1

    You are indavertently channelling Les Phelps.......

    While you can hoard grains and they last a long time, you can't become vegan and expect to remain healthy for a long time. You need meat.

    I am sure it won't be long before he weighs in.... 😉

    Login or Register to post comments