Darryl Robert Schoon famed author, lecturer, and the founder of Moving Through The Maelstrom sits down with Maurice Jackson of Proven and Probable to discuss some very, very important topics impacting all citizens. Mr. Schoon discusses his thoughts on the Trump Administration and how it will impact the nation. He will address the concerns we all should have regarding the U.S. Debt, Bonds and their relationship with the FED. Darryl shares with investors his views regarding the inflated stock market and the insurance plan that has served financial stewards for centuries. And most important what actions you the investor need to take!
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Maurice: Welcome to Proven & Probable where we focus on metals, mining and more. I’m your host, Maurice Jackson. Today’s show is dedicated to investors that wish to become financial stewards. We will address the Trump administration, the US debt, bonds, tariffs, the stock market, gold, and what actions you, the investor, need to take. Joining us for these very important topics is the host of Moving Through the Maelstrom and the highly-acclaimed author of How to Survive the Crisis and Prosper in the Process, Mr. Darryl Robert Schoon. Thank you for joining us, sir.
Darryl: You’re welcome, Maurice. Good to be here.
Maurice: Mr. Schoon, for first-time listeners, please share your background and where we can find your work.
Darryl: I think the reason why people make sense of my economics, my explanations, is I have no formal background in economics—I never took an econ course when I was in college. My major study was Political Science. And when I became interested in economics, it was on my own and I had some very fundamental questions I wanted to answer. And so I started studying on my own and came to conclusions without a formal education, which I think allowed me to explain it to myself and to others in a way that they would understand, which I don’t get from economists.
So, in 2007, I was a part of the closed network of out-the-box thinkers. The dues were $5000 a year. There were 65 of us. We met 4 times a year and I presented a paper on March 3, 2007—almost exactly 10 years ago—and I predicted that we were headed towards a catastrophic, cataclysmic economic collapse, that real estate would collapse and lose 40% to 70% of its value, that gold would double, triple, quadruple in value and the stock market would head towards the bottom. All those things had happened except the stock market and I can explain that in the interim.
But my basic framework is that 10 years ago, the economic fundamentals of capitalism, which is credit and debt, have reached such an extreme level of debt that credit was no longer able to create sufficient growth to pay off the debts that we have, and it was only going to be a matter of time until the whole edifice came tumbling down. And I was lucky in the fact that it started happening within months of my paper. And my paper, I sold it on the web and it was ordered in 25 countries and that’s how I got my reputation. I started writing articles. I started posting on YouTube and that’s how you found me eventually. But that’s really what it was, is that I—that my conclusions 10 years ago was that the credit and debt edifice was so unstable that it was going to come tumbling down sometime. I didn’t make a prediction when, but I was lucky that it started then and everything that we’ve had since I presented the paper has been a reaction from central bankers around the world to preserve their Ponzi scheme of credit and debt.
Maurice: Well, we’re particularly delighted to have you on our show today because you have the unique ability to discuss philosophy, critical analysis and monetary history. I’ve always found your body of work to be intellectually stimulating.
Darryl: It doesn’t make a lot of people happy, Maurice.
Maurice: Well, let’s begin shall we? We have the new administration in office. Give us your thoughts on the Trump administration.
Darryl: Trump is an outlier. He has come in and—like I said, at a certain time that the fundamental—economic fundamentals in the United States are in free fall. They’re falling apart. He is very simplistic. He caters to a sense of rage on Americans that they’re losing, all right? That we’re falling behind, that the good times that used to be taken granted are no longer there, and that somebody is going to save us. Well, I beg to differ on all of those counts. My sense is better times are coming, but only after the credit and debt edifice collapses and that’s going to be a very interesting process. It’s beyond saving. The jobs aren’t going to come back. He can put up tariffs. He can put up a fence. He can keep Muslims out. He can do anything to make people think he’s going to do something.
But the central bankers can’t fix it and they’re the ones who are working for the bankers. They are the ones working on behalf of the capital market. And if the central bankers can’t fix it, it can’t be fixed and that’s where we’re at now.
Darryl: The time and how it’s going to collapse, I’m not sure. The debt is too high to ever be repaid. It’s a matter of—we’re headed towards a wall and that’s all we know, is that there’s a wall. We don’t know when we’re going to hit it.
Maurice: Well, speaking of the debt, let’s discuss the big elephant in the room and that is the US debt. Now, Darryl, has any nation ever had the amount of debt that the United States currently has?
Darryl: No. And not only that, even before money became debt-based, which it did in 1694 when the Bank of England started issuing debt-based money, which began capital markets and capitalism, even a thousand years before that, no paper money system—fiat paper money system has ever survived, ever, ever, ever. China started out with paper money. They were the first country with paper money in the world in 1124 and over the next 500 years, 5 Chinese dynasties collapsed because of runaway inflation, because of debasement of the currency, because of printing too much money. All right?
So, that was even before debt became an issue. Debt only became an issue when England started their first central bank, the Bank of England, and started issuing money in the form of debt. What people don’t realize is that if every debt were we paid, money would disappear. The money that you see is merely circulating credit and debt, all right? That’s what it is. All money is issued in debt as debt from a central bank. I don’t care if it’s China, Russia, the United States, England, Germany, Paraguay, Sri Lanka. Today, all money on the planet is issued in the form of debt from the central bank. If all debts are repaid, money would disappear.
Now, to make people feel better, don’t worry, that money is not going to disappear because those debts aren’t going to be repaid ever, ever, ever. The problem of the debt level right now is that not that it’s going to be repaid and money is going to disappear. The problem with debt is that there’s so much debt floating around that credit, no matter how cheap, can no longer induce sufficient economic expansion to pay off the interest rates on the debt that’s out there. And so it’s only a matter of time. Trump cannot change economic fundamentals.
Maurice: It’s truly disheartening to hear that. But if you would, please break down for us the true debt, not the one that’s reported in the mainstream news, but let’s discuss the omitted portion of that debt.
Darryl: US national debt right now is approximately 20 trillion dollars. When you ask people what does the United States owe? It’s 20 trillion. But the true liabilities that are “off the books” are far greater than that. In fact, there are probably 4 to 5 times that amount. This includes 30 trillion dollars in unfunded social security, 32 trillion in Medicare, Medicaid rates and 8.5 trillion off the books.
Now, to get back on that, the social security liabilities, there was a fund. There was a social security fund. Before, that fund was absorbed by the government. People paid money into that fund, all right? And expecting something back. The United States government took that fund, put it in the general fund and now there’s no social security fund, and now it’s just an unfunded liability of the United States government.
So, what we’ve got here—and this is really debt-based money debt. Debt-based money allow governments to spend more money than they had on the basis that they could tax the citizens in the future for the money that they are spending today. That money was generally spent on war until the last 40 years. Now, it’s not only spent on war. It’s spent on what we call entitlements along with war and the burden falls on the individual citizen because the corporation has so much influence that they don’t even pay—they don’t pay any of this debt. They don’t pay taxes. They can differ it. They can declare a paper loss. They own the system. They’re letting us end up with a bag and that’s what you and I have. We’re safe here. What with the system that’s enormous. Trillions of dollars spinning around out of control—our house, our retirement funds, everything is on the great roulette wheel that’s spinning.
And what we don’t realize is that the casino is on fire, that the chips that the casino uses to play with are bogus. And that the boys who own it have a sense that this is true and they have been taking the money off the table and trying to run out the back before it collapses on them. And you and I are sitting here on the floor trying to win the—you know, trying to hope our stock goes up. It’s an all-time high and thinking that we’re somehow lucky if we have money in the stock market, thinking that we’re somehow lucky. We have no idea of the enormity of the time.
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This is a systemic collapse of capital markets that’s been going on probably—it was triggered first during the Great Depression of the 1930s. It recovered only because World War II wiped out all the debt. The United States had all the gold in the world basically after World War II. We had 21,775 tons. We had enough gold to basically reflate capital markets around the world. In 20 years, that gold was basically gone and it should have been more because we had a positive trade balance. And now, we don’t have the gold that we owe people. The gold is gone. And so, there’s no basis of currency anymore. The money is fiat. It’s like—you know, my description of money, Maurice, is like a trading coupon with an expiration date written in visible ink. You know? And because we’ve never gone through a monetary crisis, we don’t think they’re real. We don’t think they’re real.
Maurice: But they certainly are. You know, my suspicion is that this administration along with any future administration is their resolve for the debt problem really is the issuance of bonds. And speaking of bonds, I’d like for you to address who are the biggest buyersof our bonds?
Darryl: Yeah, basically yeah. Let’s go back to Donald (Trump), all right? When he was running. He says, “I’m going to negotiate with the people we owe our debt to.” All right? You negotiate. Well, Donald Trump, he’s business but he’s a real estate guy, all right? He borrows hundreds of millions of dollars and then he stiffs his creditors. All right? All the people who supply him, they sign on the deal for a certain amount of money and then he comes back, “this is all paid in 75%.” That’s the way he does business. All right? And he’s gotten away with it. That’s the way he does business. All right?
Now, so he comes in. He knows that United States has a debt problem and Donald Trump—you know, he goes, “Hey, we can negotiate anything. I’m a great negotiator. I can negotiate it down.” Well, the truth of the matter is, the US debt—everybody thinks China, you know, Japan really, they own more US debt than anybody else. China is in the ballpark. They’re almost equal with Japan. All right? Both of them probably have a little over a trillion dollars of US debt. OK? Other countries or other parties have 3.8 trillion. The major holder of US debt isn’t China, isn’t Japan. It isn’t other countries. It isn’t banks even. It’s the United States. It’s the Federal Reserve and state government and pension funds.
Maurice: Not just—allow me to interject here just for one second. I want to make sure our listeners are very keenly aware what we’re discussing here. So the Federal Reserve, they’re the entity in essence that gets to determine how much currency is in circulation.
Maurice: That currency is a debt obligation, hence, the word money is not printed on our currency. So that is our debt obligation. Now, they go in and purchase the bonds from the Treasury which is another debt obligation. Is cannibalism—it’s a Ponzi scheme—
Darryl: It’s a Ponzi scheme. You know, my friend, Antal Fekete I was really lucky to meet Antal years ago. He’s brilliant. This guy is brilliant. Have you ever—I drove to the airport and I said, “You know, Antal,” I said, “I don’t agree with everything that you say, but I’m not the person to discuss it with you.” He was so much smarter than me, you know. And Antal said, “We’ve got to check kiting scheme between the central banks and National Treasuries.” That’s what it is. It’s a check kiting scheme. And as long as it’s circulating, everybody’s interest is in that to keep working. It’s like to me we are on a debt plantation where even the slaves don’t want that plantation to be foreclosed upon. That’s how sunk into it we are. Everybody wants the debt plantation to continue even the slaves. And we’re at a place where it can’t. They’re printing money. They’re buying it from themselves. They’ve monetized the debt and they’re reaching a place where something is going to snap and if it snaps before they get there, then all hell is going to break loose.
Jim Rickards has come out with a new book where he’s got—he says they’ve got certain things up his sleeves. They’re going to do a currency reset, you know, the guy who did the big reset, thanks to the central banks. They’re going to pull out a currency reset. You know, I want to have some caveats here. Nobody knows what’s going to happen. There are some ideas about what they’ve got up their sleeves, the central bankers. They may be thinking of SDRs. They may be thinking of a new currency. They may be thinking of a basket of commodities. But, you know, to me it’s like Hitler had all these strategies about how he was going to take Moscow. All right? And so did Napoleon. Neither one made it.
When an army starts—be forced to go on retreat, they rarely—they never win. And the central bankers are in retreat. Their Ponzi scheme that has worked for over 350 years is now fatally destabilized. What they didn’t realize, Maurice, was when the United States yanked gold out of the international monetary system, this allowed countries around the world to print as much money as they wanted. When they had to back their currencies with gold, there was a limit to what they could print. And when we, the biggest game in town, said we’re not going to give any gold for any of our dollars, every country around the world started printing. The printing press started running and the level of debt, corporate individual sovereign debt skyrocketed after 1971.
We are on a trajectory to cataclysmic end, all right? Now, we’re not there yet and you’ve got the boys who come in telling you, “We’ve got this idea. We’re going to do this. We’ve got people who wanted to continue saying, “Oh, yeah, they’re going to do this. They’re going to do that.” Well, we’ve never been here before. We’ve never had the implosion, a global implosion of a fiat currency system and we’re about there. I can’t say when it’s going to happen. I made my prediction 10 years ago. All I know is we’re taking us closer to it. But we’ve done nothing to fix it. In fact, what has happened since the 2008 collapse is that central bankers have taken the interest rates down from 5-1/4 down to zero and it still hasn’t worked. They’ve used direct interjection of capital into capital markets to QE and then hasn’t worked. Well, there’s nothing else.
Voodoo economics doesn’t work. You know, my metaphor about where we are, Maurice, is we’re hydroplaning. We’re hydroplaning. The whole—all of us are hydroplaning. I mean the Russians, the Brits, the Americans, the French, the Italians, the Chinese. We’re all hydroplaning. All right? I mean it’s out of control. We’re out of control. And there’s no—nobody knows what to do.
You know, when Wall Street collapsed in 2008, they were all, “The emerging markets are going to save us.” Emerging markets all have this debt-based debt and they can’t save us. They’re trying to save themselves now. They’re in trouble. Everyone is in trouble. We’re hydroplaning. We’re going along merely because of momentum and false hope. And at a certain hope, at a certain point, it all comes to an end. Nothing lasts forever, not even blind hope and denial. We’re basically down to denial. I mean the Trump vote is like “Holy shit! I don’t like where we’re going. Let’s go this way” because I know we’re headed for disaster. Well, we’re at a point where every option is disaster because a system cannot be saved.
My belief, Maurice, is a better system is going to evolve out of it. But the first system, the debt slavery plantation has to collapse first. And as I said before, even the debt slaves don’t want it to collapse. Well, I understand that, but that isn’t going to change anything. That doesn’t change the amount of debt. That doesn’t change how it’s going to be paid. There are only so many options. They’ve all been used up, you know, big deal.
Maurice: You know, speaking of an option that’s to me already been used up but is being revisited is tariffs. Now on the surface for someone with no background in economics, it makes sense. But why is this sophism so widely accepted time and time again?
Darryl: Well, because the last time we used tariffs and it collapsed the world economy was in the 1930s, all right? It’s like we’re living in a real estate development that got flooded out 70 years ago, all right? And then nobody built there for around 40 years. And around 50 years later, people started building and now we’ve got condos in the flood plane, all right? And, there we are again and now we’re in the same trouble that we were 80 years ago. They put—during the Great Depression, they put tariffs in to protect the US manufacturer and it collapsed world trade. It collapsed world trade, but nobody remembers that. Nobody remembers that. Nobody remembers. It’s too long ago. All right? And you’ve got too much self-protectionism. You’ve got too much fear to go back and see, “Well, if that’s not going to work, why are we doing it?” Because you’ve got basically a person who’s catering to these instincts of an electric that really has no understanding of the trouble that they’re in.
The elites that own the system are only trying to take as much as they can off the top before the system collapses, and we’re just stuck with them. We’re stuck with an elite that doesn’t want to change anything because they’re going to the bank—they’re making bank every day. You know, and the fact that they don’t think that this is going to end because they never do until it ends. You know, the royalty in France was shocked when they started the guillotine. What the hell? They never expected to end. And the poor people always end up poor but, you know, they really don’t see that the very system that they’re a part of is untenable. So they’re hoping against hope that doing something is going to do something.
You know, I don’t say that we should do nothing and, in fact, I don’t say anything anymore. You want my point of view. No one is going to listen to me. All right? And you’re listening to me. The people who are listening to you may listen to me, but we’re like people in the 1930s and Europe is about to go to war, all right? They’re about to stick the Jews in the gas chambers. All hell is about to break loose and we’re trying to figure out what to do with our lives. I’ve just basically said that this is not only a deflationary collapse in demand that’s going to be even worse in the Great Depression. It’s going to be accompanied by a currency crisis because in the 1930s, the money wasn’t banned like it is today. All right? There was some stability to the system. Now there’s none. Our money is printed paper coupons all over the world and money—paper money has always reverted to its mean value throughout its 2000 year history—a thousand year. It’s only a thousand years old. We never had paper money before a thousand years ago. All right?
So, even though we think there’s some sort of historical value to it—there is historical value to the lessons, that they’ve always been bad over the long run, that everybody who tries to gain the system which is government, which is bankers, in the end destroys the system itself. All right? Now, you and I aren’t trying to gain the system, all right? We’re in the system. We’re living in the system, all right? We’re spending money and “saving” money theoretically that has value but that really it really doesn’t. It has temporary value. Paper money has only had temporary value throughout history. That’s why gold and silver at the end of the day are going to be worth something when this thing does collapse and the system reorganizes itself as it always does in another manner.
That’s why—that’s what people don’t understand about it. They think that today is—you can just extrapolate it. They think that, you know, “When I was in high school, I couldn’t think beyond high school. When I was in college, I really couldn’t think beyond college. When I was in my 20s, I couldn’t really think beyond, you know, beyond then.” At every moment, you’re constrained by where you find yourself now. All right? I mean that’s just how it is, which makes it very difficult to do any long-term planning because the thing is is to believe that what has been always will be and, you know, that’s true for some time. But in times of great change, that not only is not true, it’s fatal and we are in a time of great change. We are in a time of systemic, deep paradigm change. Not only is the economy moving out from underneath us. I really think that the globe is going through change and it’s just huge and we’re blind to it. All right? And like I say, Maurice, being able to do something about it is really can’t, but if you can be aware of it, it allows you not to get so plugged into what’s going on and making erroneous decisions.
Maurice: Amen to that.
Darryl: All right? Everybody is in erroneous decisions these days.
Maurice: Well, Darryl—
Darryl: They’re just clumped with erroneous decisions that they did.
Maurice: Yeah. Well, you know, you’ve been mentioning the economy. Let’s discuss the stock market here briefly. Now the stock market has responded favorably thus far to the new administration.
Maurice: Is this a direct correlation with the Dow being at an all-time high with President Trump?
Darryl: To me it’s delusion, all right? You know, when I wrote my book and predicted that the markets were going to collapse and basically capitalism had its day, I said the stock markets were going to drop 70% to 90%, and I did this based on what happened during the Great Depression, all right? Because it did drop 70% to 90% during the Great Depression. But the big boys on the top, the central bankers learned something about that experience. So they goosed the stock market since the collapse in 2008. You can correlate every rise in the Dow to the injection of QE, the Federal Reserve. Every time they started a new program of quantitative easing, the stock market went up.
Now, the Trump effect is very different. The Trump effect is blind hope that what he’s going to do is just spend more money and revitalize this moribund economy that we’ve got. All right? He doesn’t know how he’s going to do it, all right? He says he’s going to do all the infrastructure spending and, you know, there’s a guy—Strauss and Howe, they wrote an extraordinary book. I don’t know if you’re familiar with it, called The Fourth Turning.
Maurice: Ah, yes.
Darryl: Steve Bannon is into it and I think Bannon is totally wrong in how he interprets and I think Bannon is going to come out with the short end of the stick, all right? But it was a brilliant book and it predicted—they wrote the book in 1997 and they said, “According to historical cycles, the United States is going to hit a rough spot, a real bad rough spot in the new millennium.” They said, “Sometimes around the year 2005, economic hardship will beset the land. Questions of empire, race, power will go on the table,” and that’s what we have. You know, I don’t care if the Supreme Court says race is no longer an issue. Man, let me tell you. It’s an issue. All right? And empire is an issue. Power is an issue. And economic hardship has beset the land. And they said, “This is going to take 20 years” and we’ve gone through these periods before. The first period of crisis happened during the—they said happened during the American Revolution. 80 years later, we had another crisis during the Civil War where we went to the wall. 80 years later, we had another crisis which they said was a twin crises of the Great Depression and World War II. And they said, 80 years after that, we’re going to have another crisis. Well, we’re in it. 2008, we’re in it.
What Strauss and Howe said was that we’re going to come out of this in 10 years because we’re 10 years into it now with a new resolve about how to face the future and there would be regrets about recent mistakes, all right? And I—you know, I’ve known about this book since the early 2000s. So I thought, “Well, what would the regrets be?” And I thought, “Well, maybe we’re going to regret going into Iraq.” You talk about a terrorist attack. You have these people out of the blue shocking, all right? We accuse them of having weapons of mass destruction, which they don’t have, and we just blow the country to smithereens. Now that’s terror. All right? That’s state terror.
And after that, Saddam Hussein’s old Sunni Bath party became the backbone of ISIS, all right? So that’s terror. OK? And I thought, “Well, maybe that’s going to be the regret that this country has.” The election of Donald Trump and the polarization of this country has now led me to believe no it isn’t. The regret about past mistakes is going to be regret about voting in Donald Trump. What we’re seeing here in my opinion—in my opinion, Maurice, and it’s only mine. Everybody has got an opinion—is that angry white men really got mad about how this country was going and they basically overthrew the party structure, the GOP party structure in 2016 setting off a reaction of angry women.
Now, you’re a guy. You know what happens when you shove women over the edge? I don’t care how long you’ve been in a relationship, but when you push women beyond their point, there’s no coming back. You can plead. You can say yank and screw around no more and maybe you can convince them once again. But I think what they’ve done this time is they’ve gone too far. They’ve gone too far and the GOP knows it. They have canceled their townhall meetings because people are screaming at them, all right? Tom McClintock, Roseville, republican GOP in Sacramento had to be escorted out of his townhall meeting with police. This is what’s happened since the Trump election. This country has never been—this country was polarized before we went in. The election of Trump—Do you know what would have happened, Maurice, if Trump had won the popular election and lost the electoral college?
Maurice: Oh my.
Darryl: There would be bloodshed on the streets. All these people who are now crawling about “Well, he’s our president. Give him a chance.” If they had been, if the shoe had been on the other foot, the streets would be running in blood. And so they got what they wanted. Trump did get elected, but it’s in chaos. We are 1 month into the presidency. His attempts to create slogans can win you an election. Slogans cannot change reality.
Maurice: Very well said.
Darryl: And that’s where we’re at.
Darryl: That’s where we’re at.
Maurice: Now, in—
Darryl: You know, I always ended—if you’ve been familiar with my writings, I’ve ended every article with these words, “Buy gold, buy silver, have faith.” And people understand—some people understand gold. Some people understand silver. People rarely don’t understand faith, all right? And, you know, I’ve been rich. I’ve been poor. I’ve gone up. I’ve gone down. And to me what really is the hardest thing to get through any crisis is faith, and faith can be based on denial and blindness, but real faith is the belief that there’s something going on that’s going to continue this thing going on and you’ve got to find that in yourself. You ain’t going to find—you may find it in church like that way. You know, this is stuff that’s flourished in the of personal crisis.
And we are headed towards something, Maurice, that we’ve never been in before. We’ve had a catastrophic meltdown of capital markets. That happened in the 1930s. This one is going to be even worse, but we’ve never had a collapse of currencies and this is going to be global. All right? So, the next crisis, they’ve thrown the kitchen sink at it and it’s still there. We’re down to zero interest rates, all right? The sovereign debt crisis that almost took away Europe in 2011 is spreading again. The spreads between Greek debt and German bonds are accelerating, all right? And now we’ve got China, China which came in basically saved the global economy with money printing is now in trouble. That’s why the Chinese are uptight saying, “Listen, we saved your ass because of our money printing and now you’re blinding us?” Well, they really didn’t try and save the world. They were trying to save themselves. And in the interim, they created so much global demand that the whole—that the economies around the world got off the gurney and started walking around again. And now all the economies are starting to sit down because nobody is doing so well. That fake tan is wearing off.
Maurice: Well, you know, Darryl you mentioned faith. Regarding the Dow, I have some very, very deep concerns for investors and I’m referring to those that have 401(K)s. I’m not referring to a day trader.
Darryl: Yeah, I know.
Maurice: Because the stock market in my opinion is not healthy. You know, I think of it as someone on steroids. They have dominating physiques but their organs are being destroyed and—
Darryl: Yeah. But let me tell you about the people who are still in stock market. We’re 10 years into the economic crisis, OK? They have finally learned that real estate may not be the investment that their parents thought it was. OK? They now know that dancing around in sophisticated markets may not be their gain, that their financial adviser whose last money is not doing really well. The stock market is the only place that they’ve been able to keep spending and spending money, all right? You’re absolutely right, Maurice, that the stock market is a trap, all right? That it’s filled by steroids, but it may be the last trap that goes. All right?
These people who are still in the stock market are there out of blind fear that there’s no other place that they think they can go. The only place that they can go is to gold and silver, and the boys have shocked them up about gold and silver after at least—after gold hit $1900 in 2011 and they’ve shut it down to $1150 last year and now what is it? $1250? So they shoot them out, all right, with manipulated markets and if you understand it, then you know that’s what they did. So now the people in stock market, they don’t understand gold. They don’t understand silver. They don’t understand the paper money cabal. They don’t understand it. All right?
And as you watch these friends of yours that still have their 401(K)s in the stock market, you can talk to them until you’re blue in the face, but they don’t tell you. They said, “Hey, it’s still going up. It’s still going up.” Now you know that it’s artificial, but that’s what you know. They don’t. We’re 10 years into the crisis. The people—I know people bought gold and silver years ago and they’re in shock with it going down. Gold and silver were manipulated since the 1980s. They still are. They still are. This is a long protracted crisis. How it falls none of us knows, but it’s going to fall. Those people who still have money in the stock market, Maurice, I mean save your breath. Save your breath, you know. They’ve got a weird feeling that things aren’t right either, but it’s the last place—it keeps going up and they don’t know why. They don’t know—you know, I was like, “Do you understand why some people make money than you do?” Some people get tall. Some people get them short. Some people—they don’t understand this either, but to them it’s a winning bet, you know. In the long run, it is a losing bet, but you can’t tell a person who’s got a winning bet that it’s a losing bet when it’s still winning.
Maurice: Absolutely. You know, Darryl, we’ve outlined the challenges and you’ve hinted more or less on the solutions. So let’s discuss precious metals and how they factor into today’s discussion.
Darryl: Precious metals, we are headed towards a collapse of credit of what we called capital markets, all right? And in the beginning, the Ponzi scheme was created when the boys at the top said “this piece of paper is money.” In fact, let me prove it to you. Because you can take that piece of paper down to the bank and we’ll give you gold for it or silver. It’s money. All right? It’s real money.
Now, it’s paper but it’s convertible to precious metals. That was the truth for capital markets until 1934 more or less. You bet—So it went from 1700 to 230 years later and people got used to it. “Oh, man. This is as good as money,” all right? And then all of a sudden it wasn’t as good as money. OK? And people didn’t understand the role that gold played on the left and the right. Milton Friedman, the poster boy of paper money on the right, said that gold was bullshit, you know, that paper money didn’t need any backing. John Maynard Keynes on the left said, “Paper money didn’t need any backing. All right? And so it was. And you and I spent paper money and we treat it like real money.
But let me tell you the difference between paper money and gold coins. If you and I are going to buy a car, all right? And we have gold and silver. Maurice, you’re not going to offer that person with the car your gold or silver.
Maurice: No, you’re correct.
Darryl: You’re going to offer paper money. You’re going to get rid of that paper money because you know that gold and silver is like an insurance policy for an economic collapse. You’re not going to spend it. It’s not going to go into circulation until the circulation system has collapsed. Gold and silver are insurance plays against the catastrophic currency collapse that’s coming. They’ve been that way throughout history. That hasn’t changed. The paper boys who manipulate the markets with gold futures and silver futures, they print all the money in the world. And what they have at risk is their capital markets, their Ponzi scheme. They don’t have an advantage in the markets per se unless they control the market with paper. They print it and they’re going to do everything in their power to keep their Ponzi scheme going.
I’ve always said that when push comes to shove, the only thing that’s going to be left standing is gold and silver. That’s all. And so converting your savings at least a portion of them to gold and silver is the prudent thing to do in times of change and chaos.
Maurice: And that’s very—
Darryl: And we’re headed towards that end.
Maurice: That’s very important for listeners to understand. You know, I’ve conducted a number of interviews. I’ve had a number of private discussions with the financial elite and they all share the same word of advice that you just conveyed right now, is that they actually don’t hold a savings account at a bank. What they do is they convert that savings, that fiat currency, a good portion of that, they convert into precious metals and they have the precious metals outside the banking system.
Darryl: System, yeah.
Maurice: Now, it’s amazing how great minds think alike not knowing that that was going to be your answer, but it just seems there’s a consistency here and I want listeners to grasp a firm hold of what you just shared which is a portion of your savings should be in precious metals. Anything that you and I convey, we practice it. We just don’t preach it.
Darryl: Yeah. See, the thing with paper money, it’s your kicking around money. It’s what you need to get on a plane to fly and you’re not going to spend your gold and silver. Gold and silver is your rainy day money, but it’s rainy day money for people who know there’s a deluge coming. That’s the difference, all right? Rainy days happen and then they don’t happen. Weather gets inclement and then it gets sunny again. Those of us who look at the capital market system, at credit and debt, know that more than rainy day is coming, all right? That it’s already started to rain. They put up flood gates. They put up, you know, everything they can. They try to make you convince that it’s stopped raining, yeah, whatever they do, that it’s all right to go outside again, you know, and people are going outside again.
But the ones who really look at it, they may, you know, consider us paranoid but it’s just a matter of you studying the system that no fiat money system has ever, ever survived, all right? That we’re well into an economic collapse, Austrian economics, I mean, you know, Ludwig von Mises said—you know, he said, “We’re headed towards the ultimate blow-off.” At a certain point, credit creation is going to get out of control. You’re going to see runaway asset inflation and then you’re going to see the collapse. All right?
The runaway asset inflation is basically when that money is chasing stocks up those highs, all right? When you had a 30-year bond rally, a 30-year bond rally. You don’t have a 30-year bond rally with stocks making the same high. They usually run in opposite directions, opposite directions. And yet you’ve had—since Reagan got in and they started printing money like he was going out of style, and the truth is, it was just ironic that it is going out of style. We don’t know what’s going to replace it with, but paper money is going to go out of style because there’s going to be a day of reckoning.
Now, you may not believe it, it’s all right, you know. I mean, you know, everybody is placing their bet. Even if you’re not betting, you’re placing your bet. By being here, choosing not to act, you are betting that you don’t have to act. Well, you know, you may be right, but everybody is betting whether you know it or not. There’s something going on and we’re in the end of a system that’s faltering. They don’t want you to know that it’s faltering because if you get scared, you’re not going to take out the next loan and they make money with you borrowing. Most people are borrowing money not because they’re thinking they’re going to make money. Most people are borrowing because they’re using borrowings to live on. That’s how deep it’s gotten. There’s not going to be a comeback from this one.
Maurice: And ladies and gentlemen, I just want to be clear on this. You know, we’re not using a scare tactic in a doomsday proposition because we’re not advocating that you drop everything and convert it to precious metals. The key here was again a portion of your savings, so obviously for most people—and most people actually don’t save—but for those that are prudent enough to have the discipline—
Darryl: That still have something.
Maurice: That still have something, correct.
Darryl: That still have something at this time of the game—
Maurice: Convert it.
Darryl: You can put yourself a cushion in because we are at a time that we’ve never been at before since the Great Depression and it’s going to be, in my opinion, it’s going to be even more cataclysmic than that period and precious metals are your life insurance policy in a literal sense. But, you know, we’re all in this. Everybody has got a different issue. Everybody is looking at it a different way. Some people don’t feel so dire and, you know—I mean, hey, that’s the thing about free will, you know, or voting. You always get the vote the way you want whether or not it turns out the way you want is the question.
Maurice: Well, Darryl, thank you so much for your introspect here, in conveying your thoughts. It’s been a great discussion. Before we close, please share with listeners your website and contact information.
Darryl: My website is www.drschoon.com. That’s just a general website to keep up with, you know, postings and writings. And then I have a YouTube channel called Schoon Works that has all my videos, but I’m doing much less of those. You know, Maurice, I basically said everything that has to be said about money. I used to write a lot. I used to really be out there and my articles would be there all the time. I write very little. There’s nothing that I can add that I haven’t said before and it’s—and so I’ve sort of pulled back from it, but I am writing another book. And my first book, you can still go to it and find out. It’s called Survive the Crisis, www.survivethecrisis.com and you’ll find out what happened with that book and that’s basically precious metals, you know. It’s 10 years old and, you know, I wrote an update in 2012, but nothing has changed. We’re just deeper into the crisis. The economic—the rot has only gotten worse. They’re using perfume to make the stench go away and I just wish that everybody who is out there just be a little more aware and a little more cynical about the answers of politicians and the government and the boys who own the media and the ones who say the media are liars. They’re just all in it for different reasons.
Maurice: And last but not least, please visit our website, www.provenandprobable.com. Through Miles Franklin Precious Metals Investments, we offer gold, silver, platinum and palladium, self-directed IRAs, offshore storage, and safe deposit boxes which are fully insured and secured by BRINKS. The website again is www.provenandprobable.com. Darryl Schoon, thank you again for joining us today on Proven & Probable.
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