Gold Hits Historic Highs: Is America's Economy About to Implode? | Impact Theory Tom Bilyeu

Peter Schiff, welcome back. Hi, Tom. Thanks for welcoming me back. Great to be here. Man, good to have you. And I know that right now, Gold is at or over all time highs. And you've said that the rising price of gold is a warning sign. So what I wanna know is what is a high gold price a warning sign of? Yeah. Well, first of all, gold closed today above 4,200. It was just a week ago that it traded above 4,000 for the first time, and now we're $200 higher than that. Silver closed above $53. That's an all time record high for the price of silver. Back in the, I guess, the latter nineteen nineties when Alan Greenspan was fed chair, he was asked about gold, you know, when he went to congress to testify because he was an old school gold bug. You You know, he wrote an article, the case for gold, which is in one of Ayn Rand's books, capitalism, the unknown ideal. So he was a big gold advocate, and so he was often asked about gold. And in one of these, questions, he said that even though we're not on a gold standard, he said that he uses gold as a tool. Mhmm. And he looks at the gold price as an indication of whether or not he's got the correct monetary policy. And he said if gold is, you know, up towards 400, that means that my policy is too loose. And if I see it down, you know, at 300, then, too tight. Of course, at the time, it was around $3.50. Right? So he said, look. You know, I'm watching gold's reaction to see what it does to know if I've got the correct interest rate because I'm looking for a market signal. So he said, while we're not technically on a gold standard, I'm using gold as as a way to conduct monetary policy because it's a market mechanism to let me know if the policy is correct. Well, now gold is soaring, and so what that would tell Greenspan, if he was still Fed chairman, is that monetary policy is too loose and that interest rates need to be higher. Yet despite this, the Fed is poised to cut rates even more. And and so gold is a warning sign, a, that the Fed has got the policy wrong, that these rate cuts are a mistake, and that in fact rates are too low and they need to be raised. But I also think it's a bigger warning that the world is getting rid of the dollar, that foreign central banks, foreign governments are losing confidence in the dollar as a stable long term store of value. They have no confidence in the fiscal responsibility of the United States Congress or the president to get his house in order. And they're losing confidence in the independence of the Fed, which is being, you know, beat up …