POST RESET CONVERSION, NATIONAL DEBT… Q&A with Lynette Zang and Eric Griffin

Transcript (provided by Youtube)

hello everyone welcome to our Tuesday

Q&A; with me I have Lynette Zhang our

chief market analyst you guys all know

America from president of AI team

trading and for those of you who don’t

know we take your questions

emailed to us at questions at AI team

trading comm read them to our live and

you get a real true organic response

yeah David M asks okay how exactly would

you buy a house or pay off a mortgage

post reset with gold or silver

presumably you would have to at least

briefly convert it into some sort of

currency right exactly and that’s the

whole point you can always convert any

physical gold or silver into any

currency any good or any service so to

pay off a mortgage yes you’re going to

need to do that with fiat same thing

when you’re paying your property taxes

and so you convert it but it’ll hold its

purchasing power and what might take you

know who knows ten ounces of gold right

now during the reset might even be just

an eighth of an ounce or something like

that who knows but yes you’ve converted

into fiat now on the other side of that

it depends if you’re going to purchase

property and you want to use your gold

for that you may indeed have to convert

that into fiat in order to do it so into

dollars in this country but if it’s a

private party they may not want all you

might be willing to take your gold and

silver exactly exactly so if you’re

dealing with a larger entity probably

not you’ll have to do the whole

transaction and you know currency the

current currency but it’s easy enough to

convert so yeah

all right les M asks if we are going

into hyperinflation can you tell me why

real estate is going to go down and

become a good investment

well because it’s severely overvalued

and everything everything as long as it


anyway the cycles always work from

undervaluation to fair valuation to

overvaluation to fair valuation to

undervaluation like a figure eight now

if it’s if it’s not real to begin with

they can just go poof and it’s gone but

real estate isn’t going to go poof in

its growth gone it’s it’s one of the

things that can actually survive regime

changes so and the other thing is it’s

valued in terms of those Fiat dollars

right now

so in terms of hyperinflation you know

it might look like more speaking of

numbers but the currency has no value so

your gold gets reset in terms of those

same dollars in this country and it

moves up somewhere near its true value

while the inflation in terms of gold

gets burned out and in fact I’m going to

be talking a little bit more about the

gold house ratio tomorrow but that’s

that’s why cuz it’ll burn out because

there won’t be as many buyers people

won’t be able to buy them and hold them

and think about all the debt right so so

kind of when you’re saying this

inflation burning out thing right we’re

kind of saying okay well the demand for

people buying houses goes down


why goes up yep dramatically because

people can’t afford to anymore right

right and so when supply goes up and

demand goes down prices go down in value

named out what further clarify what you

were trying what you were saying that

you said that they might still go up in

terms of the dollar amounts to buy but

in terms of gold gold will go up it will

outpace the amount that the real estate

goes up in terms of the Fiat dollars

correct right yes but you know since

we’re talking about real estate I’m

actually gonna do a whole series on it

starting tomorrow and tomorrow I’m gonna

be talking about like residential homes

but I’m gonna be also then talking about


Sholem of multifamily and then what’s

happened there’s a lot happening in the

real estate market right now

so I’m not sure whether it’s gonna be a

two or a three parter yet but it will be

at least a two parter and we’re gonna

start that series tomorrow and you and

egon von greates talked a little bit

about that in the in the interview that

you did you should check out that

interview that we posted up with Egon it

was a really good one

but you guys talked a little bit about

that about how the value of the gold

during this period of time rises and you

know other assets drop which then

creates the opportunity that you’re

always talking about exactly and you’re

gonna see that in graph form okay so

Brian B asks in a reset or hyper

inflationary scenario what are the

indicators that gold has reached its

peak and it’s time to to sell that’s one

part okay and then or exchange into

something else at the top okay

well first of all if you get ever get

out at the tippy-top of anything or in

at the very very bottom that piece is

actually luck but there are also those

repeatable patterns so part of the

strategy is not necessarily looking for

the absolute peak of gold in terms of

that fiat money but rather the

accumulation patterns in the other

assets with that generate income so I

mean I really don’t care because what

I’m doing is then trading some time you

will know when it goes past its

fundamental value but that’s all about

maintaining purchasing power so that’s

really what it is I mean who cares how

many dollars it will go to when the

dollars have zero value a trillion times

zero is zero look at Venezuela so it’s

not really the peak and you’re in a

guarantee you when you get to that level

you are not going to want to convert it

into the local fiat unless you have to

pay off a mortgage or something like


for that utility mm-hmm okay so I’m more

in the strategy it’s not how high in

terms of Fiat can gold go it’s in terms

of all assets but just like you’ll see

this recognizable pattern here that’s

telling you that the smart money is

accumulating which is quite clear it

excuse me in the spot gold the spot

silver as well as in the physical

markets as well we can see that

accumulation pattern in gold and in

silver okay so that’s really what I’m

looking for as a big key but also when

you get to a top well you know when a

reset it it’s a little different because

you’re resetting into another currency

but what will happen after that is you

will see again that repeatable pattern

it’ll top out and it’ll start to go this

way in terms of it may be more abrupt in

a reset because it depends on how much

Gold’s are gonna put to support the

currency and inspire people to have

confidence in it but but for me

personally since I’m executing the full

strategy and I know that they’re gonna

be bargains out there the gold will hold

that value and I’m and I’m more gonna be

looking for the cup formation there

could not the cup formation and gold

book cup formation and other amazing

right it works the same because that’s

the whole point is you want to

transition out of your gold and silver

when there’s opportunities about other

things on the cheap right not

necessarily sell out of your gold and

silver because you think you made a

profit and put it into a mutual bank or

whatever I right right are holding his

cash right because in a reset situation

or hyperinflationary situation you want

to hold your gold throughout the whole

trend cycle you don’t want to by holding

on to any fiat currency yes but I want

to correct one little things you because

we’re where I thought originally that I

would you should always own gold as the

foundation of a portfolio depending upon

the trend and where we are in that cycle

will determine the how much what

percentage of your hole

are in gold and silver but also a kind

of gold and silver that you’re holding

so that can vary but where I would used

to think that I would go pretty low on

my holdings after the reset when the

currency had the backing I don’t think

I’m gonna do that now I mean I’m going

to take advantage of the opportunities

but I plan on holding a larger position

afterwards because what we don’t know at

this point is what exactly they’re going

to reset us into I mean I’m very

confident it’s gonna be some kind of

digital currency but we don’t know yet

what that battle feel like it’s still

Fiat yeah but digital right yeah and so

I’m always gonna want to maintain my

purchasing power as much as I can right

but it’s you point to something that I

think is important for people to get to

is that you know we don’t really know

exactly how it’s gonna unfold it might

it might unfold that you get you find

some awesome opportunity that’s so good

you can’t pass up right and you might go

hey that’s I got to get into that and

yeah I got that port in Greece there you

go that was bought on a ton of debt so

so you you don’t know but that that gold

gives you that insurance policy and

think it keeps your wealth intact so

that you can make these moves when is

the right time yes and and just again

stay tuned tomorrow because you’re gonna

see the graph so I’ll repeat showing you

that pattern although this one is gonna

be on real estate and you’re gonna

recognize it looks pretty much like what

we’re seeing in gold and silver on the

spot market today cool alright so David

C asks what is the market cap for gold

and silver so knowing that you didn’t

know that off the top of your head right

I I went and for physical gold and

silver so I have him around hi I looked

up like I went to a couple of different

websites to try to find out what the

above-ground total ounces of physical

gold and physical silver and so I’m not

exactly positive because some of this is

speculation like we’re looking at one

of jam bullion sites about the the ances

of silver and they were kind of

extrapolating that they thought it was

3.5 billion ounces of silver so if you

take that and you multiply it times a

spot price of roughly $15 the market cap

would be 15 point fifty two point five

billion dollars market cap and on

physical gold the estimates I was

getting was about five point five

billion ounces at $1,400 announced at

seven point seven trillion but I thought

there was more above-ground silver than

there is gold right well here’s the

problem right right because gold is

indestructible silver gets destroyed

write a message and stuff like that –

right right no it’s it’s kind of hard to

tell but that doesn’t neither one of

that reflects the market cap because you

have to take into consideration all of

the derivatives the futures contracts as

well as the other products Wall Street

pron do you think you’d be able to do a

combination and figure out exactly what

it would be oh yeah are you able to pull

all the derivatives to see well it you

know probably one of the easiest places

to pull it huh it would take it would

take a level of work because I would

have to go to the Bank for International

Settlements which anybody can do

does calm and they do a quarterly update

on the derivatives but in addition to

that you would also have to go into

places like the CME for looking at the

futures contracts I remember you know

each contract that costs 150 bucks for a

bank it’s cheaper for the central banks

but that controls 500 ounces of gold and

we also know that they also sell a lot

of gold and silver you know last time I

look something like 200 days worth of

production right and in addition to that

you would also have to go to the OCC

where they break out the precious metals

from the derivatives so I think

so she just told you guys how to do it

so if you think you haven’t answered

more email it to us at questions that I

team trading whoever is gets it right

well will pump will will announce it on

the next QA how are we gonna know who

gets it right we’re gonna we’re gonna

oh hey I mean that’s the whole point

when I when I just in that one biz area

before they change how they accounted

for it which is really what they do I

personally saw with my eyes I’m sorry a

convoluted because I didn’t really know

how to capture it properly then but I

saw with my own eyes I counted it out

this was a credit Bank for International

Settlements for every one physical ounce

of gold that has been that exists in

ground or above ground there were 62

thousand ounces of digital gold Wow and

that is dramatically increased place in

just in a couple of years that’s just

one place so I don’t even know I mean if

we could actually get an accurate Wow

right well I would love I would love to

know I would even just love to know cuz

now that I’m looking at these numbers

isn’t there more silver in ounces and

there is gold this is awesome I actually

don’t think so because again silver gets


correct correct as I mean Jam bleeds a

credible source and I that’s where I got

the 25 billion ounces of silver but is

it 5.5 billion ounces silver of gold is

correct so it just seems like that’s

wonky then well the Department of the

Interior also publishes in ground and

above annually so the US Department of

the Interior publishes a report on

above-ground an inground both gold and

silver as well as other physical metals

so we can pull that to see what they’re

saying you know as far as how much

actually exists but website do you use

that when we’re calculating on the

strategy uh well when I worked well

actually the numbers I pulled were from

the Department of the Interior for the

strategy and then

just use the debt clock for the other

part of that equation because with

physical gold or some get the number of

ounces from the Department of Interior

correct okay all right we’ll get that

corrales we’ll figure this out okay

move on to a different question but it

is really interesting because what

people really have to understand is that

there’s I don’t care what it is in

physical form there is a finite amount

of it but in digital form there’s an

unlimited amount of it and these things

especially ones that are done

over-the-counter OTC derivatives they’re

pretty much opaque because they’re

between so this is one three entities

who that knows I mean really even if you

go into all of those places

the reality is digitally physically yes

we can figure that out Department of

Interior reduces there’s there’s places

that give that information this is why

Gold’s not it’s true fundamental value

isn’t it Thanks yes Eric yes exactly so

he manipulated exactly and it’s easy to

do and it’s cheap to do hmm if you and I

were gonna spend 150 fiat dollars we

have to earn it but the central bank

doesn’t have to earn it they push a

button and for them it’s a hundred and

ten dollars literally a hundred and ten

dollars well how much is five hundred

ounces of gold at spot okay and a

hundred and ten dollars controls that

you want to talk about leverage okay so

George s asks what happens when the

interest on the debt exceeds the income

needing to pay it well typically that’s

bankruptcy mmm-hmm and in the report

that I did maybe I should update this

one of these days when I find an extra

minute or two when I did a report and

I’m pretty sure it was 2009 when I ran

these numbers seventy-seven percent of

the debt that we were servicing was

compounding interest and every time you

hear a government say we’re running


does that mean that means that they’re

spending more money than they have

coming in so not only are they not

paying for what they are spending but

they’re also not paying the interest on

that now they make it look like they are

oh the interest is only costing us I

don’t know whatever it is five hundred

and sixty four billion or whatever

whatever that garbage number really is

but that does not take into account all

of the compounding interest because if

you’re not paying all the principal and

you’re not paying all the interest that

goes on top and becomes part of the

principal so even the way they typically

account for it is bogus it hides the

truth but the good thing is is you can

have access to the underlying

spreadsheets so you can actually with a

couple of places not as hard as not as

hard as finding out all the gold and

silver derivatives yeah but you know

there are a few places where you can go

in and you can pull how much the

government is spending you can pull the

government revenues and you can

certainly pull what the current debt

level I mean it’s over 22 trillion right

now not including the entitlements and

all that stuff right so actually I I

think we’re pretty much there and what

that really does is if you’re if if all

of your income is going to service your

current debt then you have trouble

growing more debt and an indepth based

economy it’s a problem that’s where

they’re talking about modern money

theory where they could just spend

without creating any debt although what

does that do to the value where do you

know that even creating the debt removed

you know really almost a hundred percent

of its value and it only has value

because you and I agree to work for it

you and I agree to use it for our

bartering and you and I agree to try and

save it for use in the future but when

that confidence

and they knew that they knew that when

they created this that people marry the

legal money of the state I can’t

possibly imagine that the dollars never

gonna go away

look it’s lost officially its lost all

of that purchasing power value so you’re

just denying your personal experience

and the end result is that ultimately

the confidence is lost that’s why

they’re always checking confidence

because it’s a con game and con games

require confidence and as long as you

think there’s value in there they can

keep it going all right so I like this

question Ryan Jack asked 40 ounces of

silver or 1/2 ounce of gold if someone

were to buy today o me what would I do

if it were what depends on what I’m

trying to accomplish if I’m wanting to

maintain my day-to-day living mmm that’s

kind of hard because quarters ago all 20

ounces of silver yeah probably

something like that cuz you need both

you know but it really depends on what

you’re trying to accomplish that that’s

what I always look at first what are my

goals and then what is the best tool to

support that goal so I have them both

all right let’s see although I will say

though I will say one more thing – if

you’re exiting executing a strategy it

is much easier to come up with what 15

16 bucks an ounce on silver yeah than it

is on 1,400 bucks for the gold yeah you

guys talk about that yes on that

interview with Egon – exactly so you

know check out that interview it’s good

answers a lot of these questions yeah um

the Tony be do you guys recommend a

vaulting service if I’m going if if

we’re getting a vault I would say one

near you if you can you know because

like she always says you want to have

accent you won’t have access to it

because if you don’t have access to it

you’ve taken away a lot of the reasons

even home old physical own physical gold

and silver it’s an insurance right and

the physical is the best insurance

possible so you want it as close to you

as possible rather than you know

someplace it’s far away right because in

a crisis how are you going how are you

gonna get it and some people have asked

to cuz you guys talked about I don’t

remember if you Andy go and talked about

that and somebody was asking that why

didn’t well why do you say in a vault

far away is okay well I even actually

right he did he’s right right that’s his


yeah and so smart and so in that case

you know we would probably say it’s

better to keep it close to you and maybe

hide it someplace right the the

difficult part is if you have in your

home like Egon said you know you could

lose it somebody could come in and steal

it put you at gunpoint you know try to

take it from you right so your best bet

then is the high I think hide it really

well somewhere near you right I would

default towards that than having it in a

vault far someplace far away that would

not make me feel comfortable right

because I don’t know how I would be able

to get it and even for me I don’t hold

because I’m so visible and and I really

appreciate everybody’s you know concern

for me which is really really nice I

just am on a mission on this planet

right so I don’t hold my gold at my home

at all but I could walk to my vault

right and maybe a little I don’t tell

anybody that you’re buying gold and

silver right you can hide it somewhere

safe and no one would know and we have a

one sheet with some ideas so if you’d

like that just you’ve been you’ve been

call our pressure forty of access to it

then we can put it in the description

okay cool we can but they can also call

any of our precious metals consultants

our strategy specialists and they can

talk about it you just want to be

creative you know because because how

many people in this country were

actually in the whole world other than


I mean there are some countries that are

really attuned to gold but you know

certainly in this country I I think I

read somewhere that there that if if

every citizen in the US and I could be

wrong about this but if every citizen in

the and they divided up all the gold and

gave it to every citizen it would work

out too you know

less than the ring you know the wedding

rings something like a twentieth of an

ounce or not even so you know nobody’s

gonna go ah these people might have gold

of course not

but Leo gee you’ve asked this question a

couple of times but when you when you

type it out the way you do it’s it’s

really hard to understand exactly what

you’re asking can you maybe we’re not

going to answer that one on on this one

but you can email it see questions at

ITM trading comm and type it out more

clearly of exactly what you mean by by

what you’re saying because that you

typed it out this way and the questions

and it’s hard to understand what you’re

even asking I think I know what this is

Leo G and I think I connect I think I

know what he’s asking what’s bad Bank

okay well okay the bad bank they did

this in 2008 and have been doing it like

ever since right and what thing we

should create another one again read the

question is youth it that way they know

what you’re answering so why don’t you

read the question as you understand what

he’s asking okay um and what he’s asking

is can I explain

Deutsche Bank moving derivatives to a

bad Bank so what they’ve done and all

and how does this affect the market gold

silver and us are visit us or Zoe Wes or

what is that well prop me I’ll say us

because that’s fine because it’s gonna

happen it’s gonna have an impact on

every single person on the planet no

matter what and it’s it’s like they know

that this bomb is about to explode

well if it explodes inside of their

current structure then there is no

bailing that

so what they’re attempting to do like

they did during the crisis with all of

those bad loans and those bad derivative

bets is they moved it off of their

balance sheets it doesn’t mean that they

still don’t have the exposure but nobody

can see that exposure anymore now I

think what they’re attempting to do is

isolate it so if there’s like an atomic

explosion of the derivatives I mean in

theory if they have enough steel around

it it won’t have an impact but so is

what is bad bank is it a separate bank

yes exactly they move these derivatives

over onto a shell corporation almost yes


okay yes it’s exactly that Wow well it

could be actually even called the bad

bank so I don’t know I’d have to see

what they’re naming it but they are

absolutely insolvent and they and a

derivative explosion at Deutsche Bank

would take down the entire system mm-hmm

so what they would do arise exactly so

what they’re trying to do is is put some

form of firewall between there but they

also need to get their stock price up so

if they move those bad derivatives but

that’s off their books then that could

also justify a higher stock price which

is down like 90% since the crisis or

something like that I mean it’s it’s

it’s too little too late because you

can’t get rid of these derivatives I

mean the legacy derivatives which were

derivatives that were created prior to

2008 are all unique and so they can’t

actually settle them out meaning we have

a bet just between you and me who else

wants that bet nobody it’s just between

you and me

that’s a that’s bi-lateral trade when

they talk about that in addition there’s

trilateral which means there’s a bet

between you me and Megan we have a bet

between the three that’s it

who else wants that bet

nobody it’s not relevant to anybody so

they keep paying the fees on these bets

because there is no market for them and

we saw that in 2008 there were lots of

bad banks that were created to take the

bad loans off the books so it didn’t

look so bad

now to take the bad derivatives off the

books so it doesn’t look so bad but it

doesn’t make them go away and it really

doesn’t even insulate so yeah this

derivative explosion is when you’ll see

golden so it’s gonna force the reset and

that’s when you’ll see gold and silver

move toward its fundamental value

regardless of how many are or higher

because of all of those derivative

contracts against them to you know what

do I really think that we could see

silver or gold at I think I you know

this is gonna sound outrageous in terms

of today’s dollars because in feet well

if it’s hibernation Airi dollars that’d

be billions or trillions of dollars in

our seat I mean that’s what it is a

Venezuela right right billions yes no

you know so exactly terms of today’s

fiat dollars you know I think that’s

what you were talking about ten thousand

right at a minimum yeah

at a minimum I think we’re both an

agreement if they did it today it would

be really closer to 50 yeah so but the

question that we just answered it’s a

good example if you’re submitting

questions to us and you wanted to be

considered make sure that you type it

out in a way that it’s where we

understand what you’re asking cuz if you

don’t I just ignore them to be honest I

if I don’t know what you’re trying to

ask me I don’t consider them to go on

the show to ask so just make sure that

you’re typing it out don’t use

abbreviations type it out let me know

what exactly it is that you want to know

cool okay good awesome

well yeah and yeah and she like no for

me she write know what you’re trying to

ask but she doesn’t review the questions

I don’t so if I’m seeing abbreviations

or stuff that I don’t know or you’re not

saying stuff out completely then I’m

gonna be able to articulate it to her

right she knows way more about this

stuff than I do I’ve been doing your the

yes I was 10

yeah I mean I mean literally yeah that’s

not even figuratively seriously on some

level I have been studying these markets

and the patterns of the trends and the

valuations since I was 10 years old yeah

and I’m almost 65 thank you yeah what do

you got for reminders oh yes okay so

this is let me say that because we’re

excited right right right right

but first I’ll talk about this afternoon

I’m gonna be on minute to midnight which

is always fun and I know Megan will be

happy to make the arrangements to do

that in a one-on-one in New Zealand

right so we’ll let you know what we’re

when we’re gonna release that but today

unfortunately it’s not gonna be in New

Zealand however you’re on their Channel

right I’m on yeah so it’ll be it’ll be

there and I’ll be in hot Phoenix and

then we have two coffees with Lynette

I’m looking at the calendar that’s why

you see me looking over here we have two

coffees with the nuts next week well I’m

gonna do both of them when I think we’re

gonna release the following Oh gotcha

okay okay so but the one that we are

going to release yes the one that we’re

gonna release next week is with Jim

Rickards I can’t I literally cannot wait

I’m so excited about yes it’s awesome I

have guys don’t oh my audience doesn’t

necessarily like him but I mean the

guy’s a smart guy he’s a very smart guy

and he is an insider so he gives you

vantage points that you would not

otherwise get and I and I do know that

some of the issues that people have is

because he’ll give a date about what’s

going to happen and we’re gonna talk

about this so we’re gonna talk about

this because it in my personal

experience when I have followed up on

what he said was going to happen

honestly it happened every single time

but people always expect big huge

thunderclaps right even when I’ve given

a date because they’ve given me a day

which is really what he does he doesn’t

guest dates he knows that if this

meaning or this whatever is gonna happen

on this date it’s because he they

announced that that’s the date but

remember they don’t want you to know

anything about it until it’s too late

for you to do anything about it so

anyway well we’ll talk about that and

lots of other things I’m like so excited

about this interview and then the other

interview that Eric was referring to

although if you guys really want two

coffees with Lynette released in one

week you know we could certainly do that

because I’m certainly working hard

enough on both of them is with way your

idea because then it gives it that gives

it some time right in the two right

there why not then we can do that right

but I also really want to talk about the

real estate you know and and that’s at

least a two-parter probably a three

parter I I had it almost all done but I

had so much material and as I was

reviewing and I went on I gotta change

this there’s there’s too much here I

want to just kind of dig into one area

at a time so yeah you know but the other

ones Wayne jet right yes and you might

have yes and you might have actually

recently heard him on Greg hunter hmm

that’s right and he talked about and I

think it was you guys that told us to

get him on to get us on a channel right

exactly so he’s coming on I am about to

start I’m just finishing up Jim’s new

book and then my next one is is Wayne’s

knew his book which is like that’s it oh

geez so I got reading a lot but we’re

getting all that together and we have a

lot of other wonderful people coming up

so get your questions in for either Jim

or Wayne and if you want them to be

considered make sure you put records in

the subject line for any Jim questions

and jet or Wayne jet in the subject line

for any questions that you want for him

so that way we know this is where

they’re supposed to be directed yep

on Twitter and Facebook are you

monitoring those though and pulling them

and given it can give it to me the best

bet just put them at questions at item

training because then you know that I

will see them if you put them on there

you know and you don’t for some reason

submitted or whatever then we can miss

the boat on it yeah best is set them

questions and I team training comm yep

so I think that’s it for today unless

you guys want to hear about my ducks no

that’s 35 minutes oh alright oh but I

had a funny thing with the Ducks this

morning it’s okay

okay oh well if I have time I’ll tell

you tomorrow but at any rate please keep

in mind that wealth shields are made of

physical silver and gold

surely not derivatives or contracts or

promises with the fingers crossed behind

their back yeah well we’ll maintain that

value ya know so until tomorrow and I’m

really excited about the one for

tomorrow because you’re gonna see the

patterns and wait till you see what wait

till you see what I found actually I did

want to say something about that okay

I’m not gonna say too much but I’m gonna

talk about it tomorrow that there’s

something that just occurred that is the

first time that it has ever occurred

since the Treasury started keeping

records of of their rough bond auctions

and that goes back to 1929 so we’re

going to talk about that tomorrow make

sure you show up and until then please

be safe out there

bye bye