Watch and listen to U.S. Money Reserve's Coy Wells and Patrick Brunson talk about how Gold is here to offset inflationary costs
Why It's So Important To Own Gold- Video Transcript
Coy Wells: 00:00
Good morning and thank you for watching daily market insights. Today we're here with Mr Brunson again and today the topic is going to be inflation. One of the things that we talked about last week was the u s economy and how the markets were acting so erratically and a lot of that was due to the interest rates and some other factors that were taking place. The one thing that we also talked about is how gold is here to stay and how gold is here to help offset inflationary costs. One thing I want you to think about folks is if you watch the news over the course of the past few weeks or in the upcoming weeks, that word inflation is going to be talked about more than ever and the reason for that is due to interest rates. Today, Mr Brunson is going to help us talk about interest rates and inflation and he's going to talk about why it's so important to own gold at this point in time of the game. Mr Brunson, go ahead.
Patrick Brunson: 00:42
Yes sir. So inflation is a big topic in the media right now. It's been one of the main things that have caused the stock market correction over the course of the last week and a half. We're starting to rebound back now that the inflationary jitters or the scare of it is starting to wear off, but that's what's interesting about this whole thing. We're seeing the stock market correct, 10 11 12% inside of a week. Just off the thought that inflation will kick in. That says a lot because the inflation hasn't even kicked in yet. In fact, if you look at the last nine years with Obama and then transitioning into the Trump administration, they printed more money in those eight years under Obama than all of the presidents before him combined, but yet we didn't see any inflation at all. That's the big thing that nobody's talking about.
Patrick Brunson: 01:37
What that means is none of that money has actually hit the economy. We haven't felt the effects of all of the QE programs that have been implemented over the last decade. They haven't even hit us yet, and so the big question is, is when it does, how bad is it going to be? Some economists are saying that it could make the Jimmy Carter era look like a child's birthday party. And to interject here, you're exactly right and Mr Brunson is 110% correct. The reason why this is important to understand is is while Janet Yellen was head of the Federal Reserve for nearly eight years, we didn't raise interest rates. That means we didn't really truly balance the checkbook of the country. And when you don't balance a check book for the country for over eight years, and as Mr Brunson said, you print more than $4 trillion under quantitative easing and you don't do anything to offset that by printing that money and not having the income to support it, something has to give here.
Coy Wells: 02:28
We now know that treasury bonds have been an issue and we've talked about that too. We've also talked about other issues from countries being leery about holding onto u s treasury bonds. So the country right now is sitting on a pile of treasury bonds at the Federal Reserve and the only way to be able to balance that or get those off the balance sheet of the Federal Reserve is to raise interest rates. And as those interests rates raise, the companies and corporations know that the dollar is going to go down and inflation sets in because as Mr Brunson stated, that money's now going to have to be forced out at some in time and it's going to be forced out through services and goods and it's going to cost the American people a lot of money. So I know what you're thinking. Okay, I just won't put my money in the stock market.
Patrick Brunson: 03:07
I'll get out, I'll just stay on the sidelines, I'll stay in cash. But that's where people are gonna make the biggest mistake this next go around because just by getting out of stocks are getting out of annuities or other types of financial assets and just giving into cash that's not getting on the sidelines, that's actually putting yourself in play on the field because this next bubble that we're talking about, it's not just going to be a stock market bubble or a bond bubble or a massive autocar bubble. It's not going to be like that. The next bubble that we're going to have to deal with is a bubble that's in the dollar itself and by staying in cash, you put yourself at the most risk, so you have to be able to protect your cash by getting out of the dollar entirely and that as we've stated in previous videos, that's where gold comes into play.
Patrick Brunson: 03:58
So coming up, we are going to have our 2018 annual report. That's going to be in the coming weeks, but until then you can still click on the link below or call the phone number to pick up your copy of the fiscal states of America. This is a real good report that will help you see what's happening in your state. If you're a retiree that's relying on a state pension, this is going to really outline how at risk that retirement plan really is. So click on the link, pick up this report and read about what's going on in your state until that 2018 annual report comes out. And also if you want to click the link below or type in any comments you're more than welcome to do so and both of us will get back to you or we'll give you a call to help you understand what's really taking place in the economy. As always, thank you for watching daily market insights and we look forward to you watching us again next week.