1 00:00:06,080 --> 00:00:08,880 Edition of the Chicks on the Right podcast. Today we have with us the 2 00:00:08,919 --> 00:00:13,839 spokesperson from Birch Gold, our friend Philip Patrick, and man, this is 3 00:00:13,880 --> 00:00:18,199 a really good week that we've chosen to talk with you because of all of 4 00:00:18,239 --> 00:00:22,640 this horrible news that we've heard about with the port in Baltimore, the crash 5 00:00:22,640 --> 00:00:28,640 that happened with the container ship earlier this week and obviously a hugely important port. 6 00:00:29,600 --> 00:00:33,600 We're just now starting to hear whispers about how much this is going to 7 00:00:33,600 --> 00:00:39,119 disrupt the economy. And Congress just already recently passed this horrific budget which is 8 00:00:40,039 --> 00:00:44,920 beyond horrible in every way, and now there's talk of more spending to deal 9 00:00:44,960 --> 00:00:48,799 with this crisis. So what is your take on that? Yeah, I 10 00:00:48,799 --> 00:00:54,119 mean it's a disaster, right. So we reached an agreement this was Friday 11 00:00:54,240 --> 00:00:58,320 for a one point two trillion dollar spending package. This was minutes before the 12 00:00:58,359 --> 00:01:04,280 deadline. As of course we've come to expect looking through the two packages combining 13 00:01:04,319 --> 00:01:10,040 them, discretionary spending for the budget years are like one point sixty six trillion 14 00:01:10,120 --> 00:01:15,200 dollars. That's just discretionary spending that doesn't include Medicare, Social Security, det 15 00:01:15,599 --> 00:01:22,439 This payment it's twenty seven percent of total government spending. And then of course 16 00:01:22,760 --> 00:01:27,359 we have an emergency like replacing Baltimore's Francis Scott key Bridge. This is at 17 00:01:27,480 --> 00:01:33,200 least a half a billion dollar project, likely going to go up maybe closer 18 00:01:33,239 --> 00:01:36,560 to a billion dollars. And the President, of course has already stepped in 19 00:01:36,599 --> 00:01:40,400 and said the federal government is going to pay for it, which likely means 20 00:01:40,439 --> 00:01:46,280 we're going to get another emergency supplemental bill for more borrowing and more spending. 21 00:01:46,959 --> 00:01:51,159 Quite frankly, it's getting ludicrous, right. The government are already spending one 22 00:01:51,200 --> 00:01:55,719 point seven trillion dollars a year over the revenue that they bring in, and 23 00:01:55,760 --> 00:02:00,640 they still need to borrow more when the unexpected happens. Right, Remember Build 24 00:02:00,719 --> 00:02:04,760 Back Better in twenty twenty one, this was a two point two trillion dollar 25 00:02:04,799 --> 00:02:08,199 project exactly for things like this. But of course the money's gone already. 26 00:02:08,439 --> 00:02:13,360 Now we need more money. The federal government are digging the nation into a 27 00:02:13,400 --> 00:02:16,639 hole deeper and faster every single day, and I'm getting worried. You know, 28 00:02:16,680 --> 00:02:20,199 we're at a point where it's going to be too late to climb out 29 00:02:20,240 --> 00:02:23,599 of it. Maybe the only solution is to keep digging and see what happens. 30 00:02:24,520 --> 00:02:28,199 Okay, so do you do you think we could still get to a 31 00:02:28,240 --> 00:02:31,800 balanced version? If yes, Like, what do we need to do and 32 00:02:31,919 --> 00:02:36,879 what needs to be taken into it to real and government spending to ensure like 33 00:02:37,000 --> 00:02:40,000 any sort of stability in these I mean, because it's crazy. Everything is 34 00:02:40,039 --> 00:02:44,479 crazy right now. It's crazy. And we've got to remember when we talk 35 00:02:44,520 --> 00:02:49,280 about balancing the budget, what that means is just not going further into there. 36 00:02:49,400 --> 00:02:53,280 Right, that's not even addressing this monstrous thirty four trillion dollars of debt 37 00:02:53,280 --> 00:02:58,719 that we have. That would it be possible, yeah, I mean, 38 00:02:58,719 --> 00:03:02,759 look, federal government could cut discretionary spending to zero, right, no funding 39 00:03:02,840 --> 00:03:08,240 for any government agencies, no FBI, defense, agriculture. That's going to 40 00:03:08,280 --> 00:03:13,240 balance the budget. Right, wouldn't it be wonderful? Yeah, it would 41 00:03:13,280 --> 00:03:17,240 be wonderful. It's not going to happen, though. The other alternative is 42 00:03:17,360 --> 00:03:23,319 taxation. Right, Let's raise corporate taxes incomes axes by fifty percent, probably 43 00:03:23,360 --> 00:03:27,840 balance the budget as well. But the problem is neither of these are really 44 00:03:27,960 --> 00:03:31,039 possible. Right. You don't get elected by promising your constituents you're going to 45 00:03:31,080 --> 00:03:36,599 raise taxes or take away handouts. So instead what we're getting is this dog 46 00:03:36,639 --> 00:03:39,919 and pony show, lots of posturing, lots of handwaving, and ultimately another 47 00:03:39,960 --> 00:03:46,240 one point seven trillion dollars in deficit. So the answer is in theory it's 48 00:03:46,319 --> 00:03:52,199 possible, but not in reality today, And especially when we keep seeing these 49 00:03:52,240 --> 00:03:57,919 curve balls right like the Baltimore Bridge collapsing, it just becomes impossible. And 50 00:03:58,000 --> 00:04:02,400 this deficit spending then becomes highly inflationary and just adds to the problem. And 51 00:04:02,439 --> 00:04:06,360 that's why the FED is struggling so much to keep inflation under control. Yeah, 52 00:04:06,919 --> 00:04:10,039 well, and I wonder too if that has something. I mean, 53 00:04:10,120 --> 00:04:15,039 this is, you know, obviously inflation is already terrible, and this bridge 54 00:04:15,039 --> 00:04:17,800 collapse is gonna if there's gonna be more spending for it, it's gonna continue 55 00:04:17,839 --> 00:04:23,160 to raise inflation. So do you feel like there's because I feel like we've 56 00:04:23,240 --> 00:04:28,879 heard this line of thinking for so long, for decades now, with every 57 00:04:28,920 --> 00:04:31,439 president. We hear we're just kicking the can down the road, and our 58 00:04:31,519 --> 00:04:35,000 children's children are going to be paying for this, And we've heard it for 59 00:04:35,040 --> 00:04:40,240 so long that I wonder if people have tuned out of that message because they 60 00:04:40,279 --> 00:04:45,639 live their lives and nothing happens, like nothing really changes except for right now, 61 00:04:46,160 --> 00:04:48,279 we all do feel the inflation, I think for the first time in 62 00:04:48,360 --> 00:04:53,639 a long time. So do you think that that will change anything? Or 63 00:04:53,639 --> 00:04:56,399 do you think that we're just going to keep on kicking the can and it's 64 00:04:56,399 --> 00:05:00,319 just gonna get worse and worse. Look the way things are heading now, 65 00:05:00,360 --> 00:05:04,199 we don't seem to have policy makers that want to make hard decisions. And 66 00:05:04,240 --> 00:05:08,439 I think we've been kicking the can down the road for a long time. 67 00:05:08,720 --> 00:05:12,279 And I think that's a problem with the system that we have. Right if 68 00:05:12,319 --> 00:05:15,360 you're a politician, you step into office, do you want to make the 69 00:05:15,399 --> 00:05:18,600 hard decisions, go through the tough times? It usually doesn't lead to reelection. 70 00:05:18,759 --> 00:05:20,879 So what we've been seeing for a while they say, oh, let's 71 00:05:20,879 --> 00:05:26,199 just lower rates, pump money through the economy. That'll spark things. But 72 00:05:26,240 --> 00:05:30,439 we're creating a bigger problem. The thing is, the numbers today are getting 73 00:05:30,439 --> 00:05:33,720 to a point where it's unsolvable. Thirty four trillion dollars of debt is more 74 00:05:33,759 --> 00:05:36,920 debt than has ever been held by any nation in history. And we've heard 75 00:05:38,160 --> 00:05:42,360 people saying it, but you know, Powell came out not long ago in 76 00:05:42,399 --> 00:05:46,759 a sixty minute interview, and he said, listen, you are mortgaging the 77 00:05:46,800 --> 00:05:49,439 futures of our grandchildren. This is the head of the Federal Reserve, the 78 00:05:49,480 --> 00:05:55,600 guy that's in charge of maintaining the dollars purchasing power. And even he's telling 79 00:05:55,639 --> 00:06:00,319 our legislators to grow up and start dealing with their own problems and pay their 80 00:06:00,360 --> 00:06:02,879 own bills. And I think it's very telling. So I think people are 81 00:06:02,879 --> 00:06:06,959 starting to wake up because people are starting to feel that the thing with money 82 00:06:06,959 --> 00:06:12,319 printing is for so long it had a positive effect, right you know, 83 00:06:12,399 --> 00:06:15,600 stocks were going up, housing everything was just going up and up and up, 84 00:06:15,720 --> 00:06:18,600 so of course everyone was happy. We're now starting to see the realities 85 00:06:18,639 --> 00:06:23,000 of that, and those realities are inflation, and that becomes painful. So 86 00:06:23,240 --> 00:06:26,839 I'm hoping people are waiting, Oh my gosh, such anxiety and total anxiety 87 00:06:26,879 --> 00:06:30,519 over that. Okay, so gold price just hit another record. It's over 88 00:06:30,560 --> 00:06:34,519 what twenty two hundred dollars an ounce, And so tell us how you think 89 00:06:34,560 --> 00:06:42,879 that plays into our current like awful? Mean and why and why you think 90 00:06:42,879 --> 00:06:46,319 it's a good time right now to buy gold for people? Of course, 91 00:06:46,360 --> 00:06:48,759 Well, I mean gold is moving because of the economy that we have. 92 00:06:49,000 --> 00:06:51,639 But a couple of things to mention. So first of all, yes, 93 00:06:51,720 --> 00:06:56,959 gold has hit highs in nominal terms in terms of the dollar amount twenty two 94 00:06:57,040 --> 00:07:00,360 hundred, but in real terms, the high for gold was in the nineteen 95 00:07:00,360 --> 00:07:03,279 eighties. In January nineteen eighty gold here, I think it was eight hundred 96 00:07:03,319 --> 00:07:08,399 and fifty an ounce. If we adjusted that to inflation, that would be 97 00:07:08,439 --> 00:07:13,079 the equivalent of around thirty three hundred dollars today. So essentially we're there in 98 00:07:13,120 --> 00:07:16,399 nominal terms, but in real terms, gold would have to rise another fifty 99 00:07:16,480 --> 00:07:23,160 percent in order to set a record in terms of actual value. Look, 100 00:07:23,839 --> 00:07:27,680 to answer the question, adjusted for inflation, gold's price is about the same 101 00:07:27,720 --> 00:07:31,240 as it was back in January twenty twenty one, the dollars down seventeen percent 102 00:07:31,319 --> 00:07:36,000 since then, gold is up the exact same amounts, up seventeen percent in 103 00:07:36,079 --> 00:07:40,560 the exact same time period. And it's not a coincidence. Right, That's 104 00:07:40,560 --> 00:07:44,319 why people buy gold when currencies up in the air, because gold and the 105 00:07:44,360 --> 00:07:49,560 dollar have a directly inverse relationship. But it's not the only driver, right, 106 00:07:49,600 --> 00:07:53,959 We're seeing, you know, drivers all across the economy. Look at 107 00:07:53,959 --> 00:07:59,360 demand right, central bank gold buying twenty twenty two was the single biggest year 108 00:07:59,439 --> 00:08:03,920 for say, central bank gold buying ever in history. Twenty twenty three the 109 00:08:03,000 --> 00:08:07,600 single biggest year for gold buying full stop, because individuals plug the gap. 110 00:08:09,079 --> 00:08:13,639 So the reality is we're seeing drivers all across the economy, and we've got 111 00:08:13,680 --> 00:08:16,399 to understand central bankers are seeing the same challenges that we are, right, 112 00:08:16,720 --> 00:08:22,720 economic uncertainty, inflation, a loss of purchasing power, you know, the 113 00:08:22,839 --> 00:08:26,079 sheer number of issues, black swan events, warrants in Ukraine. All of 114 00:08:26,120 --> 00:08:31,399 these things are positive drivers for gold, and I think resolving one or two 115 00:08:31,399 --> 00:08:37,000 of them still leaves a very conducive climate. So I think we've got more 116 00:08:37,080 --> 00:08:41,039 records in front of us for gold price and about the best climate for gold 117 00:08:41,039 --> 00:08:43,919 that I've seen, which doesn't vote so wealth for the rest of the economy, 118 00:08:43,960 --> 00:08:48,399 but it does for gold well. And it's because it seems like the 119 00:08:48,399 --> 00:08:54,440 more crises we have, the better it is for gold, which you know, 120 00:08:56,080 --> 00:08:58,639 that's good and bad, right, it's good for it's good for sponsors 121 00:08:58,679 --> 00:09:03,559 like gold, but it's but but I but I worry like that means, 122 00:09:03,679 --> 00:09:07,600 you know, I don't want to look forward to any more crises. You 123 00:09:07,639 --> 00:09:11,759 know what I mean. I'm happy to sell a little bit less gold for 124 00:09:11,799 --> 00:09:16,679 a while. It's the world, I promise, totally exactly, Philip Patrick. 125 00:09:16,759 --> 00:09:20,240 Always great to have you to help us break down these kinds of issues, 126 00:09:20,320 --> 00:09:26,039 especially when there's so much confusion around. You know how to protect people's 127 00:09:26,080 --> 00:09:28,320 finances, and this is just one way to make sure you're diversified. We 128 00:09:28,360 --> 00:09:31,879 appreciate your input as always. Thank you.