Next Crisis Bigger Than a World War, It Would Bring Entire System Down Warns David Morgan
Sound money advocate David Morgan joins Daniela Cambone to discuss the Argentine election, the Dutch Central Bank preparing for a gold standard, bank failures, CBDCs, cyber attacks, and maintaining gratitude this Thanksgiving.
CHAPTERS:
0:00 David Morgan
1:58 Argentina Election
5:23 Ending the Central Bank
8:06 Gold Standard
13:14 CBDC
19:58 Gold and Silver Price
25:33 Giving Thanks!
TRANSCRIPT FROM VIDEO:
00:00
Music
00:08
Hi, this is Daniela Cambone and welcome to the brand new Daniela Cambone show, now on ITM Trading. For folks out there who are new to the show, new to me, I’m sure you’ll find some content that you’ll enjoy and for those of you who have followed my very lengthy career and followed me, I wanna thank you for continuing to be on this.
00:32
journey with me. We’ve had a resounding start so far. We had an in-person candid interview with Robert Kiyosaki, a tour of Lynette Zhang’s home. So if you miss those, I urge you to watch whenever you can because they’re really fantastic interviews. But for today’s show, I wanted to bring on a guest who was actually my first video guest back in 2008 when I started really covering precious metals.
01:01
and he’s been a great supporter and friend to me throughout all these years. So please welcome David Morgan of The Morgan Report. David, so nice of you to be with me. Thank you for joining me on my new journey here. So good to see you, friend. Always fun and a pleasure, Daniela. Thank you. I also want to add that first interview in 08, the first time we taped you, the audio didn’t work and you graciously allowed us to…
01:29
to re-tape you, so I’m always just so thankful for your patience at a time when I was just starting out. But how are you doing? Oh, I’m doing well. As you know, I’ve overcome some health issues, but I’m getting stronger daily, and I’ll be back on my feet in the new year, and all’s ahead of us. I’m just grateful for everything I have, and grateful to still be above ground, so here I am. Okay, well.
01:58
What a week, you know, we’re speaking Thanksgiving week, so we definitely have a lot of things to be grateful for and no shortage of news. And I want to talk about everything happening in the headlines. And I also want to talk about because you’re working on an exciting project regarding and based on sound money. And that’s why I thought you were such a perfect guest for this show today too, since my show is really based upon the principles of sound money. So I want to talk about that. But first.
02:25
I want to get your thoughts about all the buzz regarding the new Argentine president, Javier Millet. He’s making headlines all around the world, David. He’s been seen as the radical newcomer, described as a political earthquake. It has been welcomed by like-minded politicians such as US ex-president Donald Trump, who said Mr. Millet would make Argentina great again.
02:50
Malay has promised drastic changes which include ditching the local currency, the peso for the US dollar, and blowing up the central bank in order to prevent it from pitting more money, which he argues is driving inflation. What’s your take on the victory here? Well, I’m in alignment with the main principals. I mean, he’s basically a Rothbard student.
03:19
I mean, I used to sign off a lot of my podcasts, my weekly updates with, uh, there’s nothing more powerful than the truth. And the truth is all fiat fails. And what’s the solution to that? And that is sound money. And he’s a principle man. I find it fascinating watching a few of his interviews, which need subtitles for me to understand it. But it really calls out the political class and calls out basically, uh, the difference between the working class that produce things.
03:49
And the political class that basically takes things. He says, we don’t need them. And since we don’t, uh, so I find it fascinating that the Argentinian people got behind them in such a huge way and how outspoken he is, I probably, if it were me in his shoes, I certainly wouldn’t be swearing as much as he does, but it gets called out on it and he defends it. And, you know, there’s a time and place for everything.
04:15
And especially that culture. I don’t know that culture very well. I’ve been to Argentina many, many times. I’ve been to the Vida Marta. Sorry, I digressed with one of the richest silver mines in the world, which was kind of one of my bucket list check marks. But regardless, coming back to your question, it’s time for somebody to speak up. I mean, these, what I consider radical ideas are not. And just to go a bit further and digress, but I think it’s important for people to understand, especially our genre.
04:44
pretty much burnt out for the last 10 years. I mean, basically, gold’s made a round trip from 2000 and 2011 back to 2000 today, dipped down, I think, 1150, and it’s been a long time for the last 10 years for gold and silver holders. Yet, if you look at the number one Stanley Cup winner or the Super Bowl winner or the NBA winner, they practice the fundamentals every day. And we need to practice those fundamentals, which is what I see your show is about.
05:13
Why is that money so important? So that the world doesn’t become Argentina and we go into a freckles where we’re just having to barter to just get by. We don’t want that to happen. If we could just hone in on his point about ending the central bank, David, do you think this will create some sort of domino effect? You see the euphoria surrounding his victory. Everyone’s talking about it. Do you think it could revive even the end the Fed movement?
05:41
that Congressman Ron Paul brought up once upon a time ago. Well, that’s a really tough one because really what he has indicated and I haven’t studied him very much is they’ll go to the US dollar standard, which is what Panama has done for years. And of course the dollar is still a fiat and it’s being degraded, but it’s being degraded at a lower rate than say the Argentine peso. So…
06:06
So it’s a step in the right direction. Certainly we don’t need a central bank. I mean, Andrew Jackson proved that, but we need some kind of means of exchange that’s fair, honest, and equal to everybody. And that’s basically sound money. You don’t have an advantage in a sound money system or as much of an advantage when you have a principled monetary system. So I think it’s a step in the right direction. I do think that I’m certain, or nearly certain, that there is a reset coming and it will be in the financial system.
06:36
and it probably will involve banking, and it’ll probably be all electronic and a cashless system. At least that’s what the powers that be have indicated. Mark Carney actually leading the charge a few years back. Whether or not that happens remains to be determined, and what you’re putting forth as a great idea is, well, will the people resist enough? And I think they will. I think that it’s gonna be the great reject, not the great reset. So then what happens? And that’s kind of a…
07:03
potential chaos where we don’t know what will happen unless somebody steps up and there are people stepping up. You go to the whole crypto world and that is a substitute for the system that exists. My big concern with the crypto world is so many are just electronic fiat. In other words, there’s nothing of substance behind a lot of these coins, whereas there are some that do have substance behind them and it doesn’t necessarily have to be gold and silver.
07:33
be oil, it could be cobalt, it could be a software that streams movies faster, it could be a lot of things, but at least there’s something viable behind the coin. And those have merit. So it’s a really interesting place to be in history in general, especially in monetary history and how it unfolds still in my mind remains to be determined because there will be people that just certainly will not go along.
08:02
with the next phase as it’s being outlined today. And I’m happy you brought that up because that brings to mind another news item I want to bring up. But first, let’s talk staying along the same narrative. The Dutch Central Bank admitting it has prepared for a new gold standard. I’m quoting an article from our friend Jan Nieuwenhuis here. He says in a recent interview, the Dutch Central Bank…
08:29
DNB shares that has equalized its gold reserves relative to GDP to other countries in the Eurozone and outside of Europe. This has been a political decision. If there is a financial crisis, the gold price will skyrocket and official gold reserves can be used to underpin a new gold standing, according to DNB. The author says, these statements confirm what I’ve been writing for the past years about central banks having prepared for a new international gold standard. What do you make of the news coming out of the Dutch?
08:59
central bank preparing for a new gold standard. Were you shocked to see this headline, David? No, I’ve known Yad for years and it’s interesting. I just did an interview about this very topic and I’ve maintained that the reason the central banks are buying so much gold, they set a record last year, most go buying in I think five decades. This year they’re on track to do the same. And the reason is bankers…
09:27
Gold to the bankers are the money of last resort. In other words, if everything else fails, you go back to a gold or pseudo gold standard. It doesn’t have to be a gold coin standard with 100% banking. It could be, as Jim Rickards has said many times, 40% or whatever, but at least it’s tied to specie, to gold that’s been recognized as money for 5,000 years. So I think that’s kind of a backup plan for a lot of the central banks. And as far as the Dutch central bank is concerned,
09:55
gone sees it differently and it could be right. I pointed out in that previous interview that when, you know, and having lived through it, and you have to be about my age to have lived through it, I mean, I became a sound money advocate at like age 11 or 12, but the, when we saw this rapid inflation taking place last time in the United States, gold took off. I had some contracts on it, $300 gold for December of 1979, I rolled them over into January and
10:25
that month to the next month, it went from 300 to 850. So it rapidly went up and this is when Volcker stepped in. And the point being is if you took the M1 money supply versus the amount of gold purportedly in Fort Knox, you got a full 100% gold coin cover at $400 gold. And yeah, gold went to 850. So we had double what we needed in gold reserves to go right back to the Bretton Woods agreement.
10:54
But no one wanted to do that. No one proposed it. And so my point being is as he said in the article, gold accelerated to a high enough price, you could go back to a gold standard and then you’d have to lock it in and that’s the problem. Because every time you go on a gold standard, the human element comes into it and they start printing more receipts than their art of gold to back it up. That’s why the Bretton Woods system failed.
11:22
Okay, well I was going to ask you that to that point, David, because one of the, you know, common pushbacks regarding, you know, whomever it is, BRICS, Dutch Central Bank can’t go to a gold-backed currency is that there’s not enough gold. There’s enough gold. It’s not, that’s the wrong question, really. There’s always enough gold. It’s just the maintenance of keeping the gold standard. Gold is like a policeman on the currency.
11:52
So if you put out currency and digits on your phone and it’s a cashless system, as long as there’s truth in the system and the amount of gold is equal to the amount of digits, you have a fair equal and one of the best systems that we’ve seen in history. The problem is, again, the human element where somebody cheats and wants to get an advantage and puts out more digits than there is gold to back it up. Now you either have to adjust the price of gold or digits to gold ratio, or you are going to
12:22
mess up the system. And this was what happens. It’s been from the time of the early days when there really weren’t banks or just merchants that held gold in reserve and put out these receipts and then saw that only 10% of the people came back to get their gold. So I said, aha, I can enrich myself by printing up more receipts than there is gold. And then people catch on. There’s a bank.
12:49
and they go to the gold window and they say, here’s my receipts, give me my gold. And if you printed twice as many receipts as gold that exists, now the fraud is discovered. And everyone says gold standard doesn’t work. No, gold is a nerd. It’s an element off the ground. It has nothing to do with anything other than, as I said, a policeman on the currency. But it’s the human element that gets involved that can destroy a really sound money system. Well, sad David, and when…
13:15
You know, just to go back to your prior point where you’re talking about resistance, made me think of this article, news headline, I wanted to get your comments on, that the IMF is now saying central bank digital currencies, CBDCs, can replace cash. This is not the time to turn back. Now, you and I have been sounding the alarm about central bank digital currencies for a very long time when folks were telling us, you know, it’s not going to come, highly unlikely. But now…
13:45
I mean there’s no stopping the future here unless we resist, David. Yeah, it’s really hard. I mean you can’t really be outside the system. I mean it’s very difficult. There are people that are meaning that they never have a bank account. I looked it up recently. I think it’s 1.6 billion people on the planet are unbanked. And one of the…
14:07
Subtle subtlety to this CVDC is that the bankers want everybody digitized. They want everybody to have a real ID and be in the system, meaning their system. But I digress. There will be people that reject it and there is a counterbalance to it. I mean, as I said earlier, you could be on a, let’s say gold back digital currency. Bitcoin is pretty anonymous. I mean, there’s things that you can do to mitigate the problem.
14:34
But whether or not that would have enough traction to outdo the bankers, it may need to be determined. A lot of people just aren’t aware of monetary history or what’s coming down the pike. And they will just automatically say, well, what’s the difference? I use my phone to pay for everything anyway. I use Apple Pay or BMO or one of these other payment systems. It’s just another one. Who cares? So they won’t see what’s really behind it that they want to basically track and tax you at every point of sale.
15:03
Then they want that data to be used to basically control your life until you eat too much meat. You can’t buy hamburger anymore. Yeah, but I got a million dollars in my bank account. We don’t care. You still can’t buy meat. You had too much this month. That type. Wouldn’t you argue, David, that’s exactly the mindset that they would want people to have of that being the response of, well, we already use plastic. I’m already using debit. Who cares? And that’s my greatest concern is when I hear the folks.
15:31
Well, what does it matter? I already lost my privacy. Does that just not, I mean, drives me bonkers, by the way. Well said. I couldn’t say it better. I agree totally. It’s like, so what? They just, you know, until the problem surfaces where it affects them directly, they’re not going to see that it’s a problem. That’s the problem. I overdid it. Okay. So this kind of leads me to my next point. Because we have…
16:00
done quite a few segments regarding the bank run. One of our segments had over 2 million views, probably close to 3 million views. So my question to you is this, because we just saw the fifth US bank fail, Citizens Bank.
16:20
Yeah, well, there’s a lot. Sorry, go ahead. No, no. And I was going to say, would you not agree that that news item kind of came and went? There wasn’t a lot of attention paid to it. It’s like we’ve become now passive to the news of banks failing. Well said. I think so. I mean, I would use the word numb. Numb is a better word. We saw these people, they’re kind of numbed out. Oh, ho, hum, another bank. At least it wasn’t hard. Exactly. And they go on with the…
16:49
Not realizing, you know, myself and many others in our peer group, our contemporaries have said that, you know, when the Silicon Valley Bank went down, that this is the beginning and it’s going to go on for a long time. And if you look at this Chinese bank, what is it, ICBC or something, that’s purportedly one of the largest banks in the world that had a cyber attack and it really messed up the treasury auction, or at least that’s what the mainstream financial press is saying.
17:19
I mean, these are big, big problems, huge problems. And yet again, you know, people are kind of numb to it. Most of the people don’t study the financial markets as strongly as I do, and others in our genre, but they’re oblivious to the fact that this Chinese bank is having massive problems because of a cyber attack. That’s my main concern. I mean, this may sound harsh and I’m concerned about Ukraine and Russia. I’m concerned about the Israeli situation.
17:45
But I’m really more concerned not for people getting hurt, but the system getting hurt by a cyber attack more than I am in actual physical war. I hope I’m saying it in the right context because I wouldn’t sound insensitive to people getting hurt or dying. I am very sensitive to that. What I’m saying is those casualties, as harsh as they are, could pale if the whole system goes down in a cyber attack and no one could get to their money. Because…
18:13
Even though energy makes the world go round, people believe money makes the world go round. If they couldn’t access it, we’d have a real problem. And I’ll just go one point further, and that is that Klaus from the WEF talked about a cyber attack that would make the COVID situation pale in comparison. So what does that say about the crypto sector then? And then are you not better off?
18:42
I mean, would owning physical gold and silver save you then? It could. Would it only? It could, and not necessarily would. It would depend where you were and what your community was like. I mean, in Argentina it would, and Venezuela it would, because these people are used to trading in gold jewelry. Not everyone has gold Krugerrands. I mean, that’s mostly North America. But when you’re in the Hispanic, the Latin countries,
19:11
gold rings, gold bracelets, silver jewelry, silver earrings. It’s still silver and gold. And you go to the open air market, and you trade your silver for bread. You trade your bread for a jacket. So there’s a barter system that springs up pretty much on its own because they’ve done it so many times. Would that work in the United States? Yeah, in some areas it would. In some areas it wouldn’t. But…
19:38
It’s not the savior of last resort for everyone everywhere, but it certainly would mitigate a cyber attack where you couldn’t get to your cryptocurrencies, and it would pop up naturally on its own. And of course, again, it would be more easily adopted in some places than others. David, just a comment from you regarding the price action we’re seeing now.
20:08
2000 an ounce silver, holding close to a little over 23 bucks here, close to 24. Thoughts on the rally, which could be over by time this airs, but right now. Yeah, well, the world actually is doing its job. We are going into a new dynamic as we talked about, the resets ahead of us when and where exactly no one knows.
20:37
But gold is signaling that and gold usually will lead. So you may see, you know, that $2,000 barrier broken. And then we start to move up to 21, 22. You got to remember, I know you know this, I’m saying it for the audience. Gold is at an all time high in many, many, many currencies. It’s just that everybody seems to measure gold in terms of us dollars. And in that case, it hasn’t hit a new high and sustained it, but it will. I think once you see that.
21:05
take place, again, usually gold leads, meaning that not long thereafter, I’m going to guess six months, a year, you’ll see the ultimate proposal of the new CBDC or something like that come to the fore and, you know, there’ll be a huge sales pitch on why it’s so good for you and no one can steal your money and you never have to worry anymore. Your real ID system is going to prevent anybody from
21:33
hurting you and you have security like you’ve never had and on and on it’ll go. But of course it’s really a prison system. But if there’s a cyber attack, David, sorry to interrupt, but if there’s a cyber attack. You’re done. You’re going to have to get in the car. Right. So you can access that digital cash. No, you’re done. Ah, and then you’re completely exposed. Yeah. Well, I wrote back in whatever, early 2000s, the 10 rules of silver investing and the first rule goes something like this.
22:03
Nobody wants to be a profit of doom, but in the unlikely event of an all-out financial collapse, silver will be the money of last resort. Gold will have too high unit value to do everyday trading, but silver will be used as money again, and therefore everybody should have some silver coins on hand. That’s basically the first rule, and it sounds very bizarre, but it’s happened in history over and over, and we think, well, in a modern world of technology.
22:32
Technology could be our doom rather than our savior. I mean, as you keep saying, look at what happened to the truckers with Trudeau. I mean, it didn’t matter if you were on the CBDC or not, you still got your bank account shut down if you were doing a peaceful protest against something where the people have a right to voice their opinion and yet they close their bank.
22:56
Really fantastic talk here, David. I want to wrap with this final headline, which was a major headline this week, from The Economist. You may have seen the headline, David, where it says, Donald Trump poses the biggest danger to the world in 2024. Here’s a quote. Mr. Trump’s indifference to human rights might make the Saudi government more biddable once the Gaza war.
23:23
is over and strengthen relations with Modi’s government in India. I mean, what a headline. He could be the biggest threat to the world.
23:35
I don’t even know how to respond. I’m not a Trumpster. I’m really not, but, uh, you know, I look for principles and men and women of principles and, you know, the foundation for our way of government on the foundation was pretty easy to understand. And we’ve gotten so far away from that. We’re really in this distorted system now that’s basically corrupt from top to bottom.
24:02
And I think anyone that could come in and undo some of that corruption and put it on a different path is worthy of listening to. I don’t see him as favoring one group over the other, although perhaps that’s true. I mean, get into the Zionist argument. I’m not going to go there. But what I can say is that someone that steps up and is willing to speak truth to the elite power behind the scenes. Remember when Kennedy gave his speech, he talked about
24:30
secret societies and all this stuff. And most people don’t know, and it’s been in the publications for years, but most people don’t study this stuff, of the men that really run Washington are unknowns. They’re behind the scenes. They’re not your political class that’s put out front in front of the camera. There’s people behind them that are pulling the puppet strings. So is Trump one of them or not? I really can’t determine that, but I do know he certainly…
24:56
stirred up the pot enough for the mainstream to really be against him. And whether all that or not is a show, I’m not certain. What I do know is that he has held more to principles that we were founded on than any president in my lifetime. And for that, even though I didn’t vote for him and I didn’t vote for the opponent either, I didn’t vote because I don’t like to encourage the political class. But regardless, you know, I think that’s an unfair characterization. I really do.
25:26
It’s attacking the man instead of the principles. Let’s look at what he did, not at what he said, and judge it from there. I think the argument was that the economist is seeing how he’s doing in the polls, and he’s leading the polls, and has the media chain already started, basically. But I always say it’s interesting how even outlets like CNN, David, they built up Trump to just…
25:53
And it’s not just Trump, right? They build people up to just tear them down. And that’s usually how the media narrative goes. Exactly. If I may share with you the front cover of the New Yorker. Okay. But I thought, you know, ahead of Thanksgiving, I wanna just share this cover. It’s a family all on their iPhones. The dad is on his iPhone and a vape pen. But hopefully people will be in the moment.
26:22
will be fully in tune and listening to their family and friends and just being present this Thanksgiving. Well said. I guess I’ll just add to it and hope that can add something worthwhile. But you know, to me it’s the idea of people know the price of everything and the value of nothing and that’s an exaggeration. But what is priceless? Your family, love, sincerity, honesty, commitment.
26:52
priceless. I was really messed up on the money system, not the money system, but money in general when I was younger. I was kind of the belief that money can buy happiness and these tried and true sayings that the best things in life are free. I didn’t buy into that as a youngster. Of course, as I got older and more mature, I certainly do and I do today and I think it bears a little bit of talking about, but just think for an example.
27:21
that this Thanksgiving is the last time you’ll see someone you really love. I mean, if you spent time on the iPhone instead of with them, how would you feel later? And I’m just asking as a question, it’s your answer, not mine. But we really don’t value each other as much as we should. And this is what makes us great, is our connection to each other and high integrity, where we live our word and we are people of principle, where we know that whatever we committed to, we’re gonna follow through on.
27:48
Many people don’t and they learn that because this is the way that the media portrays real life which is really a big fiction. So commitment, sincerity, being truly grateful for what you have rather than what you don’t have, measure yourself against yourself, be your best you. You don’t have to be as good as the next person. It’s really unfair to compare. What you really want to do is be, as Gandhi said, be the change you want to see or be the change you want to be.
28:17
I think is a way to go through Thanksgiving this year. That’s what I would say. David, I can’t add anything to that. You absolutely gave me goosebumps and shivers with those comments. I just, if I could just add, I am grateful for you. I am grateful for your friendship. I’m grateful for your support throughout all these years and I’m happy to see you’re doing well. And I wish you all the best. And
28:44
Thank you so much. We’re just getting started here at the Daniela Cambone show on ITM trading. We’ll have more incredible content coming your way. Be sure to sign up at danielacambone.com so you can stay on top of this incredible content. Don’t forget to subscribe to our channel. Thank you so much and happy Thanksgiving.
SOURCES:
https://www.aljazeera.com/news/2023/11/20/argentina-election-whats-next-after-javier-mileis-victory
https://www.gainesvillecoins.com/blog/dutch-central-bank-admits-prepared-new-gold-standard
https://www.cnbc.com/2023/11/15/imf-says-central-bank-digital-currencies-can-replace-cash.html
https://www.newyorker.com/culture/cover-story/cover-story-2023-11-27
https://www.cnbc.com/2023/11/10/icbc-the-worlds-biggest-bank-hit-by-ransomware-cyberattack.html
https://www.nytimes.com/2023/11/20/world/americas/javier-milei-argentina-trump.html
https://time.com/6132383/klaus-schwab-davos-2022/
https://thehill.com/homenews/campaign/4318846-trump-expands-lead-over-biden-in-2024-match-up-poll/
https://markets.businessinsider.com/commodities/gold-price
https://markets.businessinsider.com/commodities/silver-price
