Got Gold? Countries Without Will Lose During the Great Financial Reset Warns Maxime Bernier

The Daniela Cambone Show Aug 16, 2024

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“Canada is very vulnerable… We are the only central bank that doesn’t have any gold reserves,” says Maxime Bernier, Canadian politician and leader of the People’s Party of Canada. He explores why he believes a return to the gold standard could be the solution to inflation and economic instability. According to Bernier, anchoring the currency to a tangible asset like gold would limit central banks’ ability to print excessive amounts of money, thus curbing inflation and stabilizing the economy. “When we face a monetary reset or a new international monetary order, it will be very challenging for us,” he warns. Tune in to hear Bernier’s views on deflation as a pathway to increased purchasing power and prosperity, and why he advocates for smarter government policies that prioritize individual freedom and fiscal responsibility.

CHAPTERS:

00:00 – Gold Standard
07:11 – Canada Has No Gold Reserves
12:38 – Canada’s Deficits
14:33 – Housing Crisis
16:00 – U.S. Dollar
18:49 – Monetary Policy
20:46 – Canadian Conservative Party
24:24 – Justin Trudeau

TRANSCRIPT FROM VIDEO:

00:00
It haunts me knowing that Canada owns no gold. I mean, how vulnerable is the country here? Something will happen and we need to be ready. And what we as a country, we are not ready for that new monetary world order. We just have to look at the history and I did that. And that’s why, you know, I’m promoting that idea that it would be good for.

00:26
for every country, but it will be very good for Canadians if we have some money.

00:37
Hi everyone, Daniela Cambone here for ITM Trading. I’m just back from vacation, feeling refreshed, recharged, ready to go and provide you with incredible content and interviews. But before we get to that today, I just wanted to remind you and urge you to book a calendar appointment with one of my incredible colleagues at ITM Trading. Why? Well, you saw what happened during that global stock meltdown last week.

01:05
But what is resilient in the face of all of this? Gold. It is the ultimate wealth preservation tool. And that’s why I urge you all to book a strategy session where one of my colleagues will help you build a wealth preservation strategy centered around owning physical metals. It’s free, it’s educational, and I strongly urge you to waste no more time and get to it and book that calumny. All right, let’s get to today’s interview.

01:33
Hi, this is Daniela Cambone. Welcome back to the Daniela Cambone show here on ITM Trading with a really special treat for the audience today joined by Maxime Bernier. He is the leader of the People’s Party of Canada, but many of you will remember him from Stephen Harper’s cabinet where he served as Minister of Foreign Affairs amongst other titles, but he’s considered in Canada, one of the staunchest proponents for smaller government.

02:03
an advocate for political and economic freedom, and is considered one of the most innovative monetary policy thinkers in the country. Maxime, it’s so good to be reunited with you as we are, you know, shared with you offline. Over 20 years ago, when I started my career covering Canada’s insurance and banking sector, you were one of the first people I ever interviewed. I hope we had a good interview. I’ll hope I won. We did, we did.

02:33
No, but it’s just, you know, it’s amazing. Life’s amazing because to have seen how your career and your, you know, political just evolution took place was really, really awesome to see and to know that I met you so long ago. And, you know, I’m just very happy for all the success you have had. Thank you very much. And I’m happy also for your success, Daniela. And I’m very pleased to be with you today.

03:03
Well, I know, like I said, my Canadian audience definitely is familiar with you, Maxime. But my American audience might be saying, why Maxime Bernier? Well, I’m going to tell you why. Because like I said, he’s one of the most innovative thinkers in Canada when it comes to monetary policy, and he believes in a return to a gold standard. In fact, he campaigned on that very policy. So we’re going to get his thoughts today on the economy where he thinks that the economy

03:30
these things headed in the US, in Canada. And obviously we’re going to talk about gold. In fact, one of your monikers, Maxime, was Mad Max. It was coined a long time ago, I think in 2017, because of your relentless pursuit of going against the establishment. Absolutely. Yes, you’re right. As you said in the beginning, Daniella,

03:53
I jumped into politics only in 2006. And before that, I was working in the private sector in Montreal, financial sector. And in 2006, I was industry minister and after that, foreign affairs minister. But I decided to jump into politics because I wanted to have a smarter government that would respect individual freedom and personal responsibility.

04:17
And I tried to be the leader of the Conservative Party of Canada in 2017-2018. I didn’t win with 49% of the vote, but we had the real Conservative platform, you know, a small government. I can say also, you know, a liberal, a real classical liberal economic platform.

04:41
And that was very successful. And, but I resigned for that party because they didn’t want to speak about the real issues that are important for Canada, gold standard, immigration policy, balancing the budget, fighting for Canadian families. And so they were not doing that. So we created the People’s Party in 2018. And we are still there and fighting to have a better country in Canada, a better society.

05:12
Well, we’re going to talk more about that, obviously, get your take, like I said, on the economy. But I’m just curious because, you know, you’re like the Ron Paul of Canada. I mean, it took guts to come out and say, you know, at one point you were quoted as saying you want to replace the Canadian currency with gold. Is that still an idea of yours? Is that still a policy that’s close to your heart? Actually, yes. I did a video a couple of years ago about the gold standard. And you know, I did a couple of speeches.

05:41
speaking about fiat currency like the Canadian dollar. And that would be, you know, in the 19th centuries, we had a kind of a gold standard and we didn’t have inflation. Actually, we had deflation a long part of the 19th centuries.

06:01
So it is the best system. And as you know, the BRICS countries right now are speaking about a new currency that will be kind of based on the gold standard. So yeah, you need to have some money and we don’t have that right now. But in Canada, we are in a very bad position because our central bank, the Bank of Canada,

06:25
didn’t have any gold reserves. Exactly. No gold reserve. And we are the only central banks that doesn’t have any gold reserves. And so when we’ll have a kind of a monetary reset or a new monetary order, international monetary order, that would be very difficult for us in Canada.

06:48
So it’s important to have these discussions, but on the political level and all these establishment politicians, the conservatives, the liberals in Canada, don’t speak about that. They don’t understand monetary policy, but this is having a great impact on our standard of living with inflation and creation of money out of thin air. Maxime, I’m so happy you brought up that point because it’s actually something I think about quite often and it haunts me.

07:17
knowing that Canada owns no gold. It sold the last of its gold, I don’t know what, over 10 years ago now, the little that it had. So let’s talk more about the, the vulnerability, right? How Canada is exposed. And like you said, um, if there ha if there was to be a currency reset, or there has to be a pivot, or, you know, if you’re even thinking about the idea of backing your money by gold and Canada has zero gold.

07:47
I mean, how vulnerable is the country here? Yeah, very vulnerable. And as you know, also, our economy is very linked with the U.S. economy. 80% of our exports are going to the U.S. And what is happening right now, we don’t have that any gold reserve, but our central bank, the Bank of Canada, has a lot of U.S. treasury bonds. But when that will happen…

08:16
when the BRICS countries will come back, come with their new currency backed on gold. And I believe it will happen. I don’t know when, but they are having discussion. The next meeting would be, if I understand well, in October. But also, you know, the U.S. will, as the international monetary currency that is used in international transactions, that will have a huge impact for the U.S. But for us, as a country,

08:45
it will have an impact. So what we, but on the good side, I must say that, you know, there’s a lot of gold miners in Canada, but you know, they’re private enterprise. And so if the country wants to build a gold reserve, it can be easy, it can be done, but they have to start right now. That’s why I’m speaking about that.

09:10
You know, the Bank of Canada must start to buy gold like other central banks around the world. And we have a lot of miners, gold miners here in our country. So, but that will have a huge economic impact and monetary impact. And, you know, we will have maybe more inflation because of that. As you know, the inflation in Canada is around 2.7%. That’s the official rate of inflation. But the real inflation must be about 5-6%.

09:40
And the Bank of Canada has an inflation target between one and 3%. So now they’re saying that, you know, with 2.7% inflation, they are in the target between one and three. But actually, I’m the only politician who’s speaking to a zero inflation target. And that must be important. I don’t want the Bank of Canada to create a money out of thin air like they did during the COVID hysteria. And so when they’re doing that, as you know, Daniela is creating inflation down the road.

10:09
and we have that inflation right now. So our policy right now as a political party is a zero inflation target for the Bank of Canada. So that would be very difficult for the bank to create money out of TINER. That’s the first step. The second step must be to promote a gold standard with our partners like US and other countries. It will be very difficult to do that alone to have…

10:38
a real song money based on gold in Canada, because if we’re doing that, you know, our daughters will gain values and our export, it would be very difficult for businesses and entrepreneurs to export in other countries, because you know, if we are the only one who’s having a gold standard and a real gold standard, our money, everybody would want to invest in Canada.

11:04
will have a real sum money. So the first step must be to have a zero inflation target, you know, no more creation of money off of TINER in Canada and promoting the gold standard like they’re doing in the BRICS countries right now. It’s absolutely ridiculous. And I mean, to your point exactly, here’s a country, the resource gold, right, is so pivotal to the Canadian economy. And yet there is this huge disconnect where there’s none in the central

11:33
and not in the pension funds. Yeah, absolutely, absolutely. It’s a, and it will be a big challenge down the road and it may come faster than what we think. And that’s why it’s very, I tried to have this discussion with the other leaders, but actually it may be something that will be an important part of our discussion at the next general election in Canada that may be in October, 20, 25th.

12:03
in a year, about a year from now. So, and because the economy will be central of that election, as you know, we have the inflation rate that is more than 2.7 percent, we have mass immigration, we have also big deficit, big debt. So the economy will be central of that next federal election. And I want to bring that in front of the discussion with these other establishment politicians.

12:33
I just saw this survey, Maxime. Canadians, like you say, in a major pinch in the pocketbook, exacerbated by the high taxes, the run report showing that in 2023, the average Canadian household is spending 43% of its income on taxes alone. Yeah, it’s more than shelter and food. Yes. So, yeah, that is…

12:57
That is only the official taxes if you take into account the provincial taxes and the federal taxes and also all the GST and the consumption taxes. But if you must add to that, the inflation tax. You know, we have a real inflation in Canada, the real one about, like I said, five or 6%, inflation is a tax like Ron Paul always.

13:24
said it is a tax, it is a very bad tax. So politicians don’t have the courage to tax us for these huge deficits or to tax a little bit more to pay for these deficits. They know that Canadians won’t tolerate that. So what they’re doing? They’re asking the Bank of Canada to buy bonds and they created inflation. So inflation is a tax. We need to balance the budget first and we can do that in one year in Canada. As you may know our deficit is 40%

13:54
billion dollars and it’s a lot for a country like us. So we need to tackle that deficit and we can do that in one year. But I’m the only one who’s speaking about that. Having a balanced budget and a 0% inflation target for the central bank and like that, the inflation will go down and we may have deflation. People are saying, oh, deflation is bad. We had a lot of deflation in the 19th centuries and that was good.

14:23
When you have deflation, your purchasing power is increasing and everybody is richer. So we need to have these economic discussions at the federal level. Yeah. And Maxime, I’m curious to get your thoughts. I mean, is Canada also on the cusp of a housing crisis here? I mean, as we know, half of Canadian mortgages are up for renewal next year. Yeah. But with many Canadian homeowners, you know, facing a sharp rise in mortgage payments, they can’t make these payments, they’re bailing on their payments. I mean, what could the housing scenario look like?

14:52
you know, one, two years from now in Canada. Absolutely, you know, there’s a lot of owners that will have to renew their mortgages, and that will have an impact, because the interest rate is a little bit higher than it was five years or three years ago. That will have a huge impact. But also, just on the demand side, we have more people. You know, we have mass immigration in our country. Canada will come 1.2 newcomers last year, 1.2 million newcomers last year.

15:21
So we cannot tolerate that with a country of 40 million people. So that’s, and all these people need a roof. And so we need to build more houses, but I’m looking at the data and last year we built about 250,000 new homes, but we need to build 700,000 new homes every year just to meet the demand. So that’s another problem, the interest rate and the demand that is growing.

15:50
So that’s why a house, it’s unaffordable for a new couple or to have a house. It’s very difficult. I know, you know, just get circling back to the US economy. You also spoke a lot about the dethroning of the US dollar and how for you a currency reset is inevitable. Can you just share with our audience a little bit about your theory here, your thesis as how you see the US dollar getting dethroned?

16:20
But you know, the US dollar will always be used in international transaction, but it’s a bit less or maybe more less than it is right now. When the BRICS countries will solve their challenges and bring that new currency or that new system that they are speaking about, we don’t have a lot of details that will come later. You know, what is happening right now? We have all these emerging countries.

16:45
that didn’t want to use the US dollars anymore because of the weaponization of the dollar during the war in Ukraine. So, and what the foreign policies coming from the US, you know, if you have a lot of treasuries as a central bank, you don’t know what can happen. Your money can be freeze or a lot of things can happen. So the political risk is important for these.

17:13
emerging countries. So they want to go with the BRICS countries and they’re going there. I still believe that the US dollar will be used, but not as it is right now. And that will have a huge impact because all these US dollars will go back to the US. That will create more inflation. So the next couple of months will be very challenging for the US economy and the Canadian economy because of that.

17:41
So it’s a very bad monetary policy in the US, and what they’re doing to the, and the impact and also the politics in that. You know, now you have the politics that are using the dollars just to, you know, weaponize the dollars. If you don’t do what the US wants, it would be dangerous if you own a lot of US dollars as a central bank. So a lot of countries…

18:09
know that right now and that’s why that will have an impact. So, but I believe that the US dollar will have a role, but not the same one. The transition, the transition will be very difficult, but I’m all for that reset. We need that, we need some money. And if that transition, sorry, brings more, you know, better US dollar based on, I don’t know, gold or something like that, I don’t know what will happen, but.

18:36
something will happen and we need to be ready. And what we as a country, we are not ready for that new monetary world order. Let me ask you, Maxime, when did it come to you that gold should play a central part of monetary policy? Was it early on in your career? Was it while you were with the conservatives? I mean, when did it all come together for you?

19:05
When I’ve read Mises and and Ron Paul and I look at the history, I look at what happened in the 19th century when all these countries had a kind of a gold standard and so we had prosperity, no inflation, deflation. So you know we just have to look at the history and I did that and that’s why you know I’m promoting that idea that it would be good for

19:32
for every country, but it would be very good for Canadians if we have some money. And the one who’s speaking always about that, was speaking always about that, is Ron Paul. And I had the privilege to have a cup, I think I’ve met him two times when I was elected, and we had a good discussion about that gold standard. And we need to do some education sometime in politics.

20:01
But politicians usually don’t want to do that. They are telling people what they want to hear and they’re doing politics by survey or pollings. We are not at the People’s Party. We have an idea for this country. We have a vision for our country. And we believe that some money will be the best thing for Canadians. And that’s why I’m speaking about that and educating some people about the importance of the monetary policies. Absolutely. Well, I think, unfortunately,

20:30
We do a poor job in the education system, Maxime, of educating people on monetary policy. They have no clue. And I would probably argue most people have no clue that Canada has no goals, unfortunately. But you mentioned Ron Paul is a great friend of the show. And I thank you for helping, whatever your political views are of people watching out there.

20:56
At least there are people like Maxime who are trying to make a difference and educate folks on thinking outside of the conventional box. So let me ask you, you’re obviously gearing up for the next election. You had exited the Conservative Party. Are you, and obviously they’re your opponent now, but are you happy or content with the direction that the Conservative Party is going in?

21:21
No, I’m not, but I understand that if you look at the survey and the polls right now, Pierre Poilievre is the leader of the Conservative Party of Canada, may win the next election with a majority. That would be a better government than the Trudeau government for sure. But Pierre Poilievre won’t speak about the most important issues like the immigration crisis, the housing crisis, the solution to these challenges, you know, adding some money.

21:51
pushed the Bank of Canada to have a zero inflation target, speaking about the cultural changes that we’re having in our country. So, Poilievre won’t speak about that. I see my role as the leader of the People’s Party to keep him honest and being a real conservative because right now, they’re only conservative in name. And I’m saying that both the liberals and the conservative are the unique party. So we are offering an alternative to Canadians and our…

22:19
You know, we are at about 5% in the polls right now, a new political populist, political party in Canada, and the next election would be an important one for us. So I’ll see what will happen. But we are pushing the real conservative ideas that Poilievre won’t talk about. Who was the last true conservative for you? Was it Stephen Harper? Was it a Brian Mulroney? Who was it for you?

22:42
It was not Stephen Harper. Stephen, I was part of that government. And we had a minority government in 2006, another minority government in 2008. And in 2011, we had a majority conservative national government. So I said to myself, we will be conservative. We will have privatization, smarter government, and doing reform. And we didn’t do anything because Harper was looking at the polls, and he wanted to be elected with a majority.

23:12
And during that time, he did the biggest deficit in the history of our country. So the real conservative prime minister that we had that tried to have a smaller government was Jean Chrétien. Jean Chrétien and Paul Martin, they were liberals, but they balanced the budget. They did strong reform. In Canada, the federal government is interfering in provincial jurisdictions. And that’s always bad for the unity of our country.

23:39
but Jean Chrétien and Paul Martin started to end that and in the beginning. So, you know, it’s a very, you know, bizarre to say that, but the real conservative government was the liberal government under Jean Chrétien and Paul Martin. I think that makes a lot of sense and it is ironic, right? You know, the two conservatives at the helm of the liberal party. Yeah. All right. Well, it was a great…

24:09
Just catching up with you, Maxime, I wish you luck. I don’t know what your thoughts are on Justin Trudeau, but Kevin O’Leary comes on the show quite often reminding us that he is the worst manager in Canadian, he calls him a manager, in Canadian history. Do you think that’s a fair assessment? Yes, that’s a fair one. I know Kevin.

24:34
As you may know, during my leadership contest, Kevin was against me. That’s right. He came on my side at the end of the campaign and he is a very wise man. But, you know, we will get rid of Trudeau at the next election, I’m pretty sure. But we need to have a real conservative government. And I don’t believe Poilievre will be that one. So that’s why the People’s Party exists.

24:57
But yeah, we’ll see what will happen. But thank you for Daniela giving me that opportunity to speak with you. And again, I don’t remember actually our interview 20 years ago, but that was fun. And pretty sure that we will be able to be together another time. I hope so. I was just a young cub reporter, Maxime, long, long time ago.

25:25
But so good to see you, best of luck, bonne chance. And thank you all for watching. We’ll have more great exclusive content coming your way here on the Daniela Cambone Show. So be sure to stay tuned and sign up at danielacambone.com. That’s it for me. We’ll see you soon.