1 00:00:00,080 --> 00:00:05,040 The problem in the economy right now is that credit growth is constrained, so 2 00:00:05,080 --> 00:00:09,960 when they raise the interest rate, it raises the risk of financial instability. 3 00:00:10,039 --> 00:00:14,599 The Senate already passed to one point five nine trillion dollar virgin A version of 4 00:00:14,640 --> 00:00:22,879 the budget, so the pressure is really on. Another DAG edition and the 5 00:00:22,960 --> 00:00:26,800 Chicks on the Right podcast today, we are joined by Philip Patrick from Birch 6 00:00:26,920 --> 00:00:30,839 Gold, who's going to help walk us through some of the more recent economic 7 00:00:30,920 --> 00:00:34,439 news that we all need to be thinking about. And one of the things 8 00:00:34,520 --> 00:00:40,600 that is on people's minds big time right now is the possible looming government shutdown 9 00:00:40,759 --> 00:00:44,799 that is potentially going to happen in the next couple of weeks. So what 10 00:00:45,000 --> 00:00:49,119 is at stake with this potential shutdown this time? There is a lot at 11 00:00:49,159 --> 00:00:54,479 stake actually, particularly with the economy is as precarious as it is right now. 12 00:00:54,520 --> 00:00:58,719 But the problem that we have so the government's fiscal year begins October first, 13 00:00:58,719 --> 00:01:03,400 and Congress needs to ask the twenty twenty twenty four sorry spending bill before 14 00:01:03,480 --> 00:01:08,239 then. The problem is that the Republicans already agreed to pay a one point 15 00:01:08,280 --> 00:01:14,879 four seven trillion dollar budget last year, but Speaker McCarthy and Biden negotiated a 16 00:01:14,959 --> 00:01:18,239 one point five nine trillion dollar budgets. So what we've got is essentially a 17 00:01:18,239 --> 00:01:23,280 one hundred and twenty billion dollar hole, which is a big, big hole 18 00:01:23,519 --> 00:01:29,280 right now. They've reached. Late on Sunday they reached an agreement the House 19 00:01:29,319 --> 00:01:34,200 Republicans on another short term stop gap spending bill. Basically it's called a continuing 20 00:01:34,280 --> 00:01:38,400 resolution. And if it sounds familiar, it's because it's familiar, right. 21 00:01:38,439 --> 00:01:42,920 It's the same tactic the Congress have you been using over and over again, 22 00:01:44,120 --> 00:01:48,519 essentially to stall time and to try and kick the can further down the road. 23 00:01:48,640 --> 00:01:52,439 But as I mentioned, the Senate already passed a one point five nine 24 00:01:52,519 --> 00:01:56,400 trillion dollar virgin A version of the budget, So the pressure is really on 25 00:01:56,760 --> 00:02:00,760 right now. I wouldn't be surprised if we did see a shut down over 26 00:02:00,799 --> 00:02:06,239 the issue, which would create uncertainty volatility in the economy, but it may 27 00:02:06,359 --> 00:02:10,000 force a discussion on spending finally, which I think is really that would be 28 00:02:10,039 --> 00:02:15,599 something, wouldn't it. Yeah, like about spending for words? Yeah, 29 00:02:15,639 --> 00:02:19,840 okay, So speaking so when you say precarious economy, speaking of it, 30 00:02:20,039 --> 00:02:24,199 what I would call a sucky economy. So the Federal Reserves Open Market Committee 31 00:02:24,400 --> 00:02:27,639 met this week, which I don't even know what that is, but what 32 00:02:28,039 --> 00:02:31,000 is your take on that and the take on their announcement that they made. 33 00:02:31,159 --> 00:02:37,400 So look the open the FOMC, Federal Reserve Open Market Committee, they decide 34 00:02:37,439 --> 00:02:39,560 whether to raise interest rates to not in raise interest rates, so they're in 35 00:02:39,639 --> 00:02:47,840 charge of the inflation fight. They decided to not raise the interest rates yesterday. 36 00:02:49,120 --> 00:02:53,039 It's good for us, right if particularly if you've got a credit card, 37 00:02:53,080 --> 00:02:57,159 but but look for the inflation fight. It doesn't bode well inflation. 38 00:02:57,240 --> 00:03:00,240 The last inflation numbers that came out, inflation was on the rise again, 39 00:03:00,400 --> 00:03:06,479 which is causing a problem, right And we'd seen recently headline inflation coming down, 40 00:03:06,479 --> 00:03:09,599 but it was being driven predominantly by oil prices. By energy prices, 41 00:03:09,599 --> 00:03:14,439 they'd gone up so much they started to come down. They're now on the 42 00:03:14,560 --> 00:03:17,719 rise again, which is driving headline inflation up. So the Fed had a 43 00:03:17,759 --> 00:03:22,439 decision. If they really wanted to try and combat inflation, they would have 44 00:03:22,439 --> 00:03:25,400 had to raise the interest rates. But the problem in the economy right now 45 00:03:25,479 --> 00:03:30,400 is that credit growth is constrained, so when they raise the interest rate, 46 00:03:30,680 --> 00:03:37,039 it raises the risk of financial instability. We saw six months ago they raise 47 00:03:37,120 --> 00:03:39,759 the rates to try and combat inflation, and look what happened to the banks, 48 00:03:39,879 --> 00:03:45,520 right, So I think right now they're picking stability with the banks over 49 00:03:45,960 --> 00:03:50,639 the inflation fight, which it's good. Short interest rates are a little bit 50 00:03:50,639 --> 00:03:53,919 lower, but it means that prices will be higher for longer, and I 51 00:03:53,960 --> 00:03:59,400 think it extends out the inflation fight. So they're stuck between a rock and 52 00:03:59,439 --> 00:04:01,680 a hard play. So, and inflation, of course, is what is 53 00:04:01,800 --> 00:04:06,840 causing some of the flight from the American dollar. And we've been talking about 54 00:04:06,840 --> 00:04:11,080 that quite a bit over the last couple of weeks, about bricks, about 55 00:04:11,280 --> 00:04:15,000 how all of that is impacting everything. What can you tell us about that 56 00:04:15,120 --> 00:04:18,240 right now? Yeah, it's it's I'm glad you've been talking about a lot. 57 00:04:18,319 --> 00:04:23,399 It's a big deal. The world right now is distancing from the US 58 00:04:23,519 --> 00:04:28,040 dollar, and it's driven partly from domestic policy, the inflation, which is 59 00:04:28,040 --> 00:04:31,480 making the dollar less attractive for other nations to hold. The other side of 60 00:04:31,560 --> 00:04:35,560 things is weaponization. Right We've been using the dollar as a stick. We've 61 00:04:35,600 --> 00:04:42,120 been acting as the world's policemen, and countries like Russia and China are starting 62 00:04:42,160 --> 00:04:44,759 to realize, Look, if we want to do what we want to do, 63 00:04:44,959 --> 00:04:48,399 we've got to end the dominance of the dollar. So the bricks currency, 64 00:04:48,480 --> 00:04:54,720 the Bricks Alliance is picking up the two new Bricks members, Saudi Arabia 65 00:04:54,759 --> 00:05:00,120 and the UAE, are already now starting to settle oil trades in the our 66 00:05:00,160 --> 00:05:04,639 own currency, so away from the dollar. That's breaking a sacrosanct agreement between 67 00:05:04,759 --> 00:05:10,720 Nixon and the Saudis that Saudi oil would only ever be traded in dollars. 68 00:05:10,720 --> 00:05:15,199 So that's broken now, and it's a big concern. Right, these nations 69 00:05:15,199 --> 00:05:19,199 are no longer a joke. They have a GDP larger than the G seven, 70 00:05:19,319 --> 00:05:23,639 Right, they're bigger than the West. Now, if they start trading 71 00:05:23,720 --> 00:05:28,120 outside of the dollar, global demand for the dollar starts to wane. Purchasing 72 00:05:28,160 --> 00:05:30,240 power comes down, value comes down. So I think it's a case of 73 00:05:30,319 --> 00:05:35,920 watch this space as it picks up traction. It could be problematic for all 74 00:05:35,920 --> 00:05:39,600 Okay, So like it's everything is really depressing. Okay, So we're looking 75 00:05:39,639 --> 00:05:44,680 at We're I'm gonna need to start drinking in like two seconds, all right. 76 00:05:44,959 --> 00:05:47,439 So we're looking at a government deadlock, all right, a fad that 77 00:05:47,600 --> 00:05:50,480 just can't seem to like get its act together when it comes in inflation, 78 00:05:50,759 --> 00:05:55,920 and then a world that's turning away from the dollar kind of like what you're 79 00:05:55,920 --> 00:05:59,120 saying, So that if the rest of the world is dedollarizing, does that 80 00:05:59,160 --> 00:06:01,040 mean that we need to do that? Are we should we be doing that 81 00:06:01,120 --> 00:06:04,560 too? Look, I first of all, I'm sorry to be the bearer 82 00:06:04,560 --> 00:06:13,680 of bad news. Shoot the messenger. We will not do that, thank 83 00:06:13,759 --> 00:06:18,160 you. Look, the answer is yes, rider on a level, yes, 84 00:06:18,279 --> 00:06:23,639 So the world is moving away from the dollar right twenty two, Central 85 00:06:23,720 --> 00:06:27,959 government holdings of dollars was at twenty five year lows for the reasons that we 86 00:06:28,000 --> 00:06:32,000 mentioned, and what they've been doing in response is buying gold. Last year 87 00:06:32,199 --> 00:06:38,199 the single biggest year for gold buying by central governments in history. Now, 88 00:06:38,360 --> 00:06:42,439 the reason that they do that, when you're worried about currency decline, you're 89 00:06:42,439 --> 00:06:45,879 buy gold. And the reason for that is that gold and the dollar have 90 00:06:46,040 --> 00:06:48,920 an inverse relationships, and when the dollar goes down, gold goes up. 91 00:06:48,959 --> 00:06:53,959 So it's the best way to hedge. Now, people countries hold dollars, 92 00:06:54,000 --> 00:06:57,920 but we as individuals hold dollars as well. So what applies to central government 93 00:06:58,079 --> 00:07:00,519 applies to us of course on a smaller scale. So I think everybody just 94 00:07:00,600 --> 00:07:05,600 needs to think about how they can hedge some of their exposure to dollars or 95 00:07:05,639 --> 00:07:11,800 dollar denominated assets. Precious medals work really really well for that. And okay, 96 00:07:11,480 --> 00:07:14,600 yeah, so can you can you just talk for our audience? Can 97 00:07:14,639 --> 00:07:16,480 you talk? Because we talk about Birch Gold all the time and what a 98 00:07:16,560 --> 00:07:21,519 great education Birch Golds gives. People who text the word chicks to nine eight 99 00:07:21,759 --> 00:07:25,199 eight nine eight, they get this free information kit. They get all this 100 00:07:25,399 --> 00:07:29,879 education with no obligation. But if somebody gets that information kit and they are 101 00:07:29,959 --> 00:07:32,279 like, yes, I want to do this, can you walk through for 102 00:07:32,319 --> 00:07:36,519 our audience what happens if they pick up the phone, if they send an 103 00:07:36,560 --> 00:07:40,839 email or whatever, what does the process look like for them? Of course, 104 00:07:40,920 --> 00:07:44,800 so as you mentioned, it starts with information we have for your viewers, 105 00:07:44,800 --> 00:07:48,399 for your listeners, we have a free information kit which will guide them 106 00:07:48,399 --> 00:07:51,560 through all of the basics. Now they read that and they think, hey, 107 00:07:51,560 --> 00:07:55,560 this makes sense, they can give us a call. There are people, 108 00:07:55,680 --> 00:07:59,879 many people like myself at Birch that are there to guide people through whole 109 00:08:00,160 --> 00:08:05,600 your hand and we can help people ultimately either roll over any portion of an 110 00:08:05,639 --> 00:08:09,720 existing IRA or eligible four oh one K, and we can help to put 111 00:08:09,759 --> 00:08:15,759 any portion of that into physical metals. As well as those that are sitting 112 00:08:15,759 --> 00:08:18,720 out there with cash in the bank that's losing to inflation, we can put 113 00:08:18,879 --> 00:08:24,879 physical metals in their hands as well, so we help to facilitate physical medals 114 00:08:24,879 --> 00:08:28,439 as part of a portfolio. Education is key to us, so, like 115 00:08:28,480 --> 00:08:31,759 I said, starts with a guide, but you've got people like myself that 116 00:08:31,799 --> 00:08:35,440 are there to tailor make and walk people through the fantastic because so many people 117 00:08:35,480 --> 00:08:39,000 just do not understand how to do that, and so you guys are a 118 00:08:39,039 --> 00:08:41,799 great resource for that. Philip Patrick of Birch Gold, we appreciate your time 119 00:08:41,799 --> 00:08:46,360 today giving us the update. It's not necessarily great news, but at least 120 00:08:46,360 --> 00:08:50,759 it gives people the information they need to You're delightful, so we've totally delightful, 121 00:08:50,840 --> 00:08:54,279 So thank you for joining us. Yes, you guys are very kind. 122 00:08:54,279 --> 00:08:54,159 You've cheered me up.