Here’s the transcript for those who like to read.
Hi. So this is Mike Noone.
I'm out for my daily walk on the beach here in, sunny Wellington, New Zealand. (He said tongue in cheek
) and what I want to do is just talk to you about some of the risks you've got going forward if you're relying on the conventional financial system.
So if you've got a pension or superannuation, the odds are that, Um, inflation is going to outstrip any growth in the, you know, the payments you get because inflation has not gone away. Inflation is not going to go away. I mean, a couple of factors involved in that. One of those factors is energy.
So right now you've got Ukraine, which is drones at Russian nuclear plants. And so they're also, attacking Russian oil infrastructure. And what this is gonna do is it will drive up the price of energy in the form of oil and gas as well. Additionally, your bonus for five, we've got, a lot of unrest in the Middle East.
Um, so between Russia and uh, the Middle East, we've got, I don't know, 30, 40% of the wills hen energy production. Israel seems to be hell, Ben, on getting Iran involved in some sort of a conflict. So let's say Iran decides to sink a couple of, you know, supermax tankers and the straits of whole moves straightaway, that's gonna be 40% of the world's oil production that's gonna be off the table.
So let's say the price of West Texas Intermedia, or, you know, rent oil was to jump up to, I dunno, $130 a barrel.
I mean, in the moment it's around about 85 ish. that's like a Quite a substantial increase in the price. It's not a hundred percent, but it's, it's somewhere around about 80% increase in price of energy. Oil is what, the world runs on it. It doesn't run on, you know, green stuff. It doesn't run on electricity, not, not initially anyway.
Um, hydrocarbons and fossil fuels count as, I think my number's somewhere about 70% of the world's energy production. The rest is hydro, uh, nuclear, um, little bit of solar. I mean solar and wind power, that's around about 3%. So you've got this massive increase in the cost of producing and transporting your food.
You've got a massive increase in the cost of, freight. You know, every um, every good or every commodity on the planet that needs to be transported, it's gonna cost you more. And that is, not gonna be a good look because this is, something that the United States and NATO and the West cannot control.
They might be able to beat the crap outta Russia or beat the war drums against China. But the thing they can't control is the, the price of energy, because between them, they don't control enough of the world's energy supply. They've also got other interesting things going on.
I mean, the price of, let's look, the price of gold. Gold has jumped up to somewhere around about $2,360 an ounce, I think was last time I checked early on today. And yet this is not getting reported in the mainstream media. Why is that? Well, basically because gold is the canary and the gold mine for the, um, global financial system.
And so what's happening there and why is that happening? Well, round about two years ago, the United States confiscated something like $300 billion of, uh, Russian financial assets. The European Union confiscated a similar amount, and it was all done without any, legal proceedings.
There's no, we've got that and inside of our banking system, and you, you've gone and you've invaded Ukraine. So we're gonna just take your $600 billion equivalent of, your money. Now, just the two things. Yeah, one, okay, it kind of slowed rusher down for maybe about 10 months. Um, but it also made every other country on the earth that is basically at the moment forced to transact in dollars to go, oh, hang on a minute, when is it gonna be our turn?
When are we gonna say I do something that the United States doesn't like and they're gonna confiscate our foreign reserves? So ever since then, Lots of governments across the world have been looking at different alternative payment systems. And so countries like China and Russia, they've been working on this stuff for a long time, they're already fairly well advanced on it, but there's a lot of other countries inside of a Brix alliance that are also saying, well, hang on a minute.
You know, this isn't, this isn't, uh, how the rules based order is supposed to work. So they're looking for alternatives. And so one of the few forms of money around is gold, and gold is actually the only true money and has been for about 5,000 years, and that's why the price of gold's going up.
Because as and central banks, um, euros and central banks, uh, a lot of countries all over the world is just backing up the truck. And so last year I think Central Banks bought some like 1400 tons of gold, and I was looking at some figures for Hong Kong and China this morning and may bought something like 120,000 kilos of gold just in January.
So this is, um, gotta cause all sorts of problems and rions and of course it's quite likely the United States is going to, um, say, Hey, you know, We're not gonna let you opt out of a dollar system because the dollar is actually the United States great greater export.
It's not Ford Motor cars or Apple computers. It is the dollar and the dollar has been weaponized, which is why everybody else is running away from it. So, so that's just a bit of context, a little bit of background for you on what's happening there. And you've gotta ask yourself, I mean, the price of gold has gone up from about $1,960 an ounce to $300 more.
Um, that's since middle of December. So that's round about four months. And what that means is that there's a flight to safety and, um, I don't see it stopping anytime soon because as I mentioned in my earlier video, the United States has set to increase its deficit by $20 trillion over the next 10 years.
And interestingly enough, the United States is printing money over a rate of a trillion dollars, roughly every a hundred days. So that is a phenomenally rapid growth in the currency supply. And as you know, inflation is an increase in the currency supply. And so what that means, you've got more dollars chasing from the same goods and services, and that's why you got inflation.
And here's an interesting side note about inflation. If it was measured in the same way that it was in the time of President Bill Clinton or Richard Nixon, the true inflation rate for the United States would be somewhere around by 1818 to 19%. And this has been sort of backed up by, um, research done by an organization called Shadow Stats.
And they've got a a, a website there, it's shatter stats.com, and you can go and look at their inflation figures as opposed to the, um, inflation figures published by the United States Bureau of Labor and Statistics, or some people call it the Bureau of Liar and Statistics. So there's lots and lots of potential headwinds to your prosperity.
And the, the thing is, The Where do you put your money or to a more precise currency, because what's in your wallet isn't money as currency. And the reason it's currency is one of the qualities of money as defined by, I think it was Plato, is that it must be a store of value, but when it's losing purchasing power, um, yeah, you've probably noticed in the grocery store that yeah, your, your bags of groceries going out are somewhat lighter than they were even a year ago.
Um, so yeah, it, it isn't a store of value, so it's not actually money, it's, it's as much money as you have the stuff you get in a monopoly set, you know, monopoly the game and it gets printed with same sort of gay abandoned.
So, I mean, I could go on and on and on about this, but I got drive us to a close for now, and I will come back to this topic probably quite often because it is so important.
But before I do a couple of things you need to know. First one, you might say to yourself, well, you know, I've got, I'm all right, I've got a hundred thousand dollars in the bank. And what I would say to that is actually under current global banking laws and regulations, what you've actually got is a claim on a hundred thousand dollars in the bank.
Once you put your money into a bank, you no longer own it, you become an unsecured deposit, which means that in the event of the bank getting into financial difficulties or some form of insolvency, then what happens is they just recapitalize the bank with your hard earned money or currency rather.
And, um, so you end up with situations similar to the one in Cyprus where, you know, the bank closed on the Friday night, I think it was back about 2013, something like that.
On Saturday morning, people went for the bank to get the money out to go and buy groceries, and they're closed and the ATMs didn't work. And when, so two or three weeks later, the banks did open again, the depositors found that anywhere uping, 30 and 60% of their money had been taken by the banks to recapitalize themselves with. And a really crappy bit about it is, it is entirely legal.
And you might say to yourself, well, hey, I've got, um, I've got some investments, I've got some shares, you know, I've got some IBN shares, I've got some Apple, I've got some Nvidia, whatever it might be. But it's the same situation. All you've got is a claim on most shares because there's some changes in the law that happened, I (···0.9s) think it was right about 2011 whereby a centralized register for all shares was put into place.
And so all you've got is a claim on your shares, and once again, you'll the back of the queue. So if you have a New York stock market as t**s up and they need to rec recapitalize the nasdaq, guess who shares we're gonna be using it to do it with?
And it won't be JP Morgan Chasers won't be Wells No, it'll be yours. Um, we got a very corrupt financial system that is just the begs belief, some of the antics these people get up to. And so, I'm cross the road, I'm going into here.
So you, you need to get some form of store of value outside of a financial system. So one of the best ways to do that is through your own company because you can legally leverage up the value of it, the enterprise value.
You can increase your prices, you can slash your overheads using some of the strategies which we share with our clients, and you can, increase your average order value, all sorts of things, increase your productivity. And this is what we are doing, this is what we're encouraging all of our clients to do, because what we see is some really nasty stuff happening
Currency and geopolitical risks