Rafi Farber on Gold, Silver, and CBDCs
In this special episode, I interview Rafi Farber, the End Game Investor. Join us as we discuss topics from the hidden monetary manipulations to rising global unrest. Dive deep into the shocking truth behind the inflation spiral, the awakened public’s clamor for change, and the startling parallels between historical collapses and today’s world. Don’t miss this eye-opening discussion into the matrix of our times!
CHAPTERS:
0:00 Raffi Farber
2:26 Unveiling the Matrix
6:11 Fiat Money
9:36 CBDC
19:02 Monetary Insanity
27:30 Elimination of Cash
31:27 BRICS
34:21 Accumulating Gold
37:23 Interest Rates
43:43 End Game Investor
TRANSCRIPT FROM VIDEO:
Rafi Farber (00:00):
You can, you can track the insanity of society with the degree to which the currency is inflated. You can even do it in the Roman Empire. The, the amount of silver in the coin in the Denarius as it became less and less and less Roman society became more and more crazy. And that’s what’s happening now with American society. It’s the same thing now. There’s nothing new under the sun. The core of all the corruption, all of it is the money itself always go back in time the year before, the decade before to the century before. And everything, all, we all stems from a commodity. And that commodity for a global economy is gold and silver and everything all ultimately goes back to them. So every fiat currency is really just another gold substitute or a promise to pay gold and silver in different ratios. So really everything we talk about extras pyramid, it’s all based on gold and silver. And we see this pyramid all the time. Everything on top of gold and silver is based on gold and silver. It’s all has to be exchangeable for that, or it’s worth nothing. What is the current dollar or the digital dollar or the CBDC or any other derivative? What is it all based on? It’s based on gold and silver. I’m not trying to convince people who believe in the fiat system or whatever we call the fiat system. You have to understand where this all comes from and dig there.
Lynette Zang (01:11):
You guys are in for a treat. I have on coffee with Lynette, a very wonderful guest, Rafi Farber. He is the end game investor. And as an investor, author, and proponent of the Austrian business cycle, he makes a whole lot of sense. I mean, all we really have to do is think about this stuff logically, but he began questioning economics as a child. So he’s been looking at this and questioning it for a long time. And he pays great attention to the treasury market operations and the massive increase in the debt issuance and the impact that that has, not just on the economy, but on society as a whole. I’ve listened to quite a few of his videos and found his perspective to be insightful and understandable, and his approach to community. Easy for many to implement where you’re not as insane as I am or have the ability to create your own community. He has a very simple way for you to create it right where you are, wherever that is. And so without further ado, I am so happy to welcome Rafi Farber with us today. The first question I wanna ask you is why you do the work that you’re doing?
Rafi Farber (02:32):
Why I do the work that I’m doing? Well the natural answer is that this is what I think about. I’ve seen the matrix the matrix of the corruption and the corruption of Western society is blooming in pretty much every sector, whether it’s education or medicine or academia finance. And I, I can go back to the, the, I tell these stories a lot very briefly. I remember having these questions when I was a teenager. And I would, I would ask certain things and then I would get these strange answers and they wouldn’t really fit. And I’d be like, okay, I’ll deal with that later. But the first the first struggle with inflation, and that didn’t make sense to me, was I found a 1000 shekel bill in my father’s desk drawer. And I didn’t know he was so rich. So I said, you know, abba father, dad, you have this you have a thousand shekels. And you know, a shekel was about three three to a dollar back then. It was like in the, in the mid nineties. And he said, no, that, that shekels worth nothing. It’s the old shekel because the, the shekel collapsed in inflation in 1984. And Israel says, it’s just a piece of paper now. So, and then I asked him like, why do prices always go up? And then he said, well, that’s how an economy grows. So, and then I tried to connect it back to the thousand shekel bill. That didn’t make sense. And I, I kind of asked him, well, if prices always go up, isn’t everything eventually gonna be a million dollars? And he had no answer. And then the next economics question I had was in my economics class and when I was a senior in high school. And, and the, the teacher said you know, she was explaining fiat money, that money used to be backed by gold. But now it’s just, it has value because the government says it does. And then I was like, well, that doesn’t make sense, <laugh>, but what if, what if people don’t believe the government? It’s like, you’re, you’re creating a loop there. And I was like, okay, I don’t get it. I’ll deal with that later. And then in 2012 or 2011, really I found Ron Paul in a sort of a offhanded way. I, I don’t, I I wasn’t really into politics, American politics that much, but I was looking up partial birth abortions. ’cause I didn’t know what they were. And I didn’t know why people were so angry about them. I didn’t even know what it was. And then I ended up on ron paul.com and he, and as an obstetrician, he was linking me to all these pictures of the procedure. And I was absolutely horrified. And I was like, who is this guy? So then he answered all my economics questions and I was like, okay, this guy has the truth. I’m gonna look it up. And then for the next five or 10 years, I was a Ron Paul Guy. And then I started reading Rothbard/Mises. And this is what I think about now. I see the matrix. I see I’ve always you know known that the corruption was going to spread. And then when it attacked me and my family personally with the medical tyranny, and I, we all know what I’m talking about mm-hmm then I became obsessed because now I’m under attack and my family’s under attack and are trying to take my kids. And I kind of went into overdrive. And now I, but I see, I still see that the core of all the corruption, all of it is the money itself. And I know that. And if we can get the inflation out of the system by going back to gold and silver, we will collapse the economic structure as we know it. And it’s going to be difficult. But that’s what we need to do. And we need to get the stackers to understand that, to rebuild society when this whole thing falls. ’cause It’s gonna fall whether we stack or not, but we may as well be prepared monetarily.
Lynette Zang (05:51):
Yes, exactly. And that’s a really good point because since the seventies, everything has been turned into a financial product. And that actually started long before, but once the central banks were in control. Well, what does central banks know? They know debt and they know interest. So I absolutely agree with you. But you know, you have a very unique proposition in that you say that there’s really no such thing as fiat money. Can you explain that?
Rafi Farber (06:21):
Yeah, that’s just a simple, logical point. And that really is the point that I try to to hammer into the Austrian school. Stacker gold and silver, the whole coalition of people that we have that come from different perspectives, minimalist government people, libertarians, whatever we, we use, the problem is we use their terminology because we grew up with it. ’cause That’s what we understand. That’s what we all grew up with. And you can see that they’re, they keep trying to change language on us. They’re trying to get rid of the word women now, so that, that we stop using the word woman and we stop saying girl and boy. And then we, we, you know, we suddenly don’t know what a grown boy is anyway. It’s not gonna go that far, I don’t think. That’s too, that’s too basically biological to get anywhere. But they’re gonna try. So the problem with fiat money is that Mises the not, he’s not the founder of the Austrian School, but he’s really the guy who plugged in the micro concepts into the macro picture. And how Austrian school logic really extends out to the entire business cycle, the entire credit cycle. He makes a logical point that a government, just like price controls cannot work. A government cannot say, TV’s cost X tables cost y cars cost Z and we’re just gonna invent this currency. And that’s what the prices are going to be. That’s a price control of everything. And price controls can’t work because supply and demand always shift and always change. And that’s why prices that’s why prices divide labor because it tells you how much of something exists or just how much people want it. And, and money could, you know, market’s clear. So just like you can’t set prices a fiat a fiat money, what we call a fiat money is not really a fiat money. It’s a substitute for a previous price array, right? You can’t when you wake up in the morning, the only reason you know that thing, that how much work you have to do and how much you can spend is because you knew basically what it was the day before. And you can, you can you can make an estimate, right? It’s gonna be a pretty close estimate. And if you’re good at it, you make money. And if you’re bad at it, you lose money. That’s entrepreneurship. But there’s no such thing as just introducing a money based on nothing or a, a media, a monetary medium of exchange based on nothing. And then just putting that in the economy and saying that, that would be fiat from above that would be price controls of everything. Every, every new currency that exists is based on a preexisting price array from the day before. So really there’s no such thing as money because of what, what Mises calls the regression principle. You have to go back in time. You always go back in time the day before to the year before the decade before to the century before. And everything, all, we all stems from a commodity. And that commodity for a global economy is gold and silver. So gold and silver fluctuate against each other depending on their supply and demand and everything, all ultimately goes back to them. So, so every fiat currency is really just another gold substitute or a promise to pay gold and silver in different ratios. So really everything we talk about Exter’s pyramid, it’s all based on gold and silver. And we see this pyramid all the time. But if you internalize it, that’s physically not physically, but, but conceptually, that’s what it is. Everything on top of gold and silver is based on gold and silver. It’s all has to be exchangeable for that, or it’s worth nothing.
Lynette Zang (09:36):
Yes. That, that is a really good point. So let’s kind of jump just a teeny bit, because what the central banks are saying about the CBDCs, the way they’re going to introduce it is that if you let us do CBDCs, then there will be no inflation. So essentially what you’re saying right, that there would be total price controls. Do you think that’s possible? I mean, they’ll be deflation if they do that, but…
Rafi Farber (10:06):
That, well, inflation and deflation I see is a little bit differently when I think when you’re talking about inflation, you’re talking about price increases. Well, when they’re saying there’ll be no inflation, that’s just pure BS, right? There’ll be no price increases, prices change all the time, every second of every day. They always change. And really there’s no qualitative difference monetarily speaking between a CBDC and a digital dollar today. Mm-Hmm. Like when you mm-hmm. When you go into your bank account and you see a number there, whether it’s 10, you have $10,000 in your checking account. Well, 10,000 what? Like units of what? It, it’s not $10,000 bills. It’s not $110, you know, $10 bills or a hundred hundred dollars bills or whatever it is. It’s, it’s a, it’s a data, it’s a digital piece of data in your bank account that says your bank account has units of this data. So what’s interesting in that and a data that’s ha that’s blocked, that’s backed by a blockchain, right? Right. That it’s, it’s really the same thing monetarily. What the difference is, is only in the degree of totalitarian control of that unit because the CBDC, the central bank will able to, will be, will have a bird’s eye view of every single transaction exactly where that unit goes, because they’ll attach a code to every transaction, they’ll see everything. Mm-Hmm. <Affirmative>, you won’t be able to do a thing with privacy. And that’s really the, that’s the tyranny of it. But still, the price units, the pricing array of a CBDC, let’s say they introduce it will be based off the current price array of current digital dollars that exists. It’s just another layer of the pyramid. It is not a new pyramid. They can’t, you can, what people make, the mistake that people make is they see CBDC and it’s terrifying. And I agree, I don’t, I don’t disagree that it’s terrifying. It’s absolutely terrifying. But they see it as like a possible stability point of totalitarian evil that will be maintained, will have its own stability. But people don’t understand the nature of evil is that it consumes itself and it consumes everything it touches. So it’s inherently unstable. And, and CBDC will only be the layer on top of that, on yurt, the turtle’s tower or the, you know, the tower babble whatever they’re building. And it will fall just like everything now will fall. I mean, it, I hope it falls before we get to CBDC, but if we do get to CBDC, it’ll fall even. It, it will speed up whatever the, the process was of it falling in the first place. It’s not going to be stable. It’s not going to stay that way and it will end.
Lynette Zang (12:25):
Right, it’s not the end game. It’s part of the current game. Is that what you’re saying?
Rafi Farber (12:31):
Yeah.
Lynette Zang (12:32):
Well, if you, okay, so we’re looking at Exeter’s pyramid, right? And the foundation is commodity money, gold and silver. So you’re, you’re talking to stackers and people are accumulating it, but if the global, central banks have been raising the interest rates consistently on all of the money, but you say that higher interest rates actually cause the inflation. And, and what do people say? Well, you can’t eat gold, you can’t eat silver. So how do you connect those two, what the central banks globally are doing in a really coordinated manner, and then what you and I are doing and lots of people out there that are watching, which is accumulating real money, how do you, is that the battle?
Rafi Farber (13:23):
Yeah. Well, look, the, as I said, the, the, to all of the corruption and whatever, could people see different parts of the evil that’s going on, right? We have doctors that see the medical evil. We have educators and academicians that see the academic evil we have we have you know, medical pharmaceuticals that, that are whistleblowers in that area, and they see that evil there’s so much, and we have the environmental people that understand, you know, what they’re trying to do with climate change and what the real problems are and how we can solve them. We see all these types of we see different things, but what I see is that the money controls it all. So what, what the, what the, the central bankers, what, when, when, when people become so steeped in the system and so confident, right? The, the more evil people get the more confident in the system that they get, they don’t see what they’re on top of. So the, the central bankers, I’m not sure, maybe, maybe they do, I don’t think they do, they don’t seem to really understand it, but they don’t understand that they are part of the pyramid. They’re on it themselves. They’re not controlling it from some outward, you know divine bird’s eye view of the universe. They’re part of it, right? They’re, they’re right on top of the gold and silver. And when they inflate their money supply they are, they’re, they’re top. They’re making their pyramid more unstable. They’re they’re getting more power. Yeah. But eventually they’re gonna fall over. So what they don’t, what they don’t realize is they’re a part of the system and we’re digging underneath them without them even noticing. If we dig, if we dig enough and we dig that base of the pyramid enough that it gets thin enough that we have the gold, we have the money, and they have less of it, then they’re gonna fall over. So about, you know, people can’t, you can’t eat gold and silver. Well, you can’t eat dollars, you can’t eat any currency. You can’t really eat any money. What you can do with money is you can divide goods and services. It doesn’t matter how much food is on the planet or how much housing is on the planet, or how much goods and services are on the planet entirely, if there’s no way to divide them amongst people, you have a zombie apocalypse. You have a breakdown of the vision of labor. And what does the breakdown of the vision of labor come down to? It comes down to the fact that people don’t have money to trade with, right? If you’re part of a big division of labor and you know how to do this very specialized form of labor or this very specialized service, and you don’t have money to, to earn from that and then pay someone else for what you need, then you’re, then you have to become self-sufficient. And people can’t do that because they live in giant cities, and they’re all going to eat each other. So what you need to, to preserve a division of labor, which is what money does, is a money. And what is the current dollar or the digital dollar or the CBDC or any other derivative? What is it all based on? It’s based on gold and silver. It’s still is because there’s no such things a fiat money. So what we have to do, my job, what I’m doing, I’m not trying to convince people who believe in the fiat system or whatever we call the fiat system. I’m, my job is to focus people who see one part of the evil, and I’m gonna redirect them to, okay, I agree, that’s evil. You can’t fix that right now. You gotta go at the core. You have to understand where this all comes from and dig there. And that’s why we have to stack, not because we wanna be rich, we wanna be rich, that’s great. What we wanna do is speed up the end game before they get to CBDCs <laugh>, okay? That’s what we need to do.
Lynette Zang (16:37):
Or even, I mean, do you think that once they introduce the C BDCs, that that’s it? Then, then we’re all just finished? We can’t…
Rafi Farber (16:44):
No, we’re never finished. There’s not, right. The, when I say end game, I don’t mean the end of humanity. I mean it in a, in a positive sense. I’m an optimist. We’re, we’re not, we’re not gonna be finished the story of evil. If you want to, you know, if you want to go to JK Rowling and, and her and her story of Harry Potter and and Voldemort, right? He consumes himself at the end. But all, all good versus evil stories are the same thing. Evil eventually consumes itself, either when it becomes absolutely powerful and then collapses or slowly, and then, you know, maybe the good people can fight back and, and win back what they have. We have cycles of this in history mm-hmm. <Affirmative>, but no
Lynette Zang (17:19):
Lots.
Rafi Farber (17:20):
Yeah. I mean, the, I also go back to this comment. You know, I’m, I’m heavily I’m heavily invested mentally in Jewish philosophical sources. Mm-Hmm. <Affirmative>, there’s a better word for that. I study them, okay? And, and one of the earliest the earliest Jewish philosophical treatise where a rabbi sits down and says, okay, this is what life is about, and this is why we have the Torah, and this is why God told us in a, in a, in an organized book was written about 800 of the common era about 1400 years ago by 1300 years ago by a rabbi named Saadia Gaon. And he asked very basic questions in his book. And one of his basic question is, why can’t, why doesn’t the Bible, why doesn’t God allow us to steal?
Rafi Farber (18:06):
What’s wrong with that? Okay. And he, he answers, he, he doesn’t say, well, because it’s bad for your soul. He’s a very logical man. So he says, well, if we were allowed to steal, then everyone would steal. Nobody would produce anything because they’d get their stuff stolen. We’d run outta stuff to steal, and everyone would starve to death. Okay? So you cannot have society based on theft. You can have a society where some people steal and then you punish them. But you can’t have a society where the core of that society is itself theft that falls apart, and then everybody dies from starvation, and then you have to start over. But what, what is this society based on? What is Western society based on now? It’s based on an inflationary system, which is theft.
Lynette Zang (18:44):
Yeah. It is.
Rafi Farber (18:46):
Logically it has to collapse. And the only question is how many people will suffer and die before it does? And once it does, we can reorganize and we’ll be okay. Now, the question is, do you wanna survive that? If you do, you know, get some gold and silver help speed up the process and survive at the same time.
Lynette Zang (19:02):
Yeah, that makes so much sense. But, you know, can they kick the can down the road? A lot of people go, oh, well, they can just kick the can down the road. Well, well, what’s your feeling on, on how, you know, I mean, who knows how long, you know, <laugh> that, that’s, that’s the biggest challenge is exactly when is this gonna happen? Because I don’t know, I think people think they can go out the night before and get prepared for this, but what’s your feeling on the can kicking <laugh>?
Rafi Farber (19:33):
Look, they can all, they’ve been kicking the can down the road since 1933. I’m counting from then, because that’s when the entire gold supply was pilfered by FDR his name be erased. And from then on, the inflation started at that point, 1971 was really just an admission that you know, we’ve been inflating and we can’t pay the gold anymore. So we’re just not, we’re not gonna pretend to have a static exchange rate between dollar and gold. Doesn’t mean the exchange rate doesn’t exist. It doesn’t mean we’re off the gold standard. We’re still on the gold standard. The gold standard is the exchange rate between gold and the dollar. That’s the gold standard. That’s the gold window. We need to close the thing. So how, how long can they kick the can down the road? I can’t, I’m not, I don’t know exactly. I don’t think it’s that many more years because for two reasons. First of all, we see the, the incredible waking up of, of many different sectors of society. I’m not talking about the majority. The majority are still asleep, but we don’t need a majority. We need like 10-15% maximum. That’s all we need. We, and we need to be vocal, which is what we’re doing, which is, which is I mean the, the gold and silver community, the people that understand the matrix, even the people that understand the medical tyranny, like I’m reading, I’m reading RFKs book now, and I was just woken up to the whole let’s not use the bad keywords here, right? But the whole injection thing I was only woken up to it based on what happened with with the other disease that we, you know, had a pandemic about mm-hmm. and then, then I looked, I looked deeper into what’s been happening in the past when I was, you know, in high school, and they were talking about H I V and AIDS and this kind of stuff, and I’m reading it. I’m like, I can’t believe this is going on. And it was the same story, but it was much, it was much less understood then because there weren’t all these media channels and people talking about it. People would write a book here and there about what’s going on and what, you know, Fauci is doing and this and that. But now a lot of people are, they saw what happened now, and they’re digging into the past and they see this is a whole picture that’s been going on for decades mm-hmm. <Affirmative> whether it’s the childhood schedule, etcetera, etcetera. So we’re ha we’re seeing people wake up in much more massive waves now and seeing different pieces of the puzzle connect to what we have now. And in terms of monetarily, if you, it, it, the, you can, you can track the insanity of society with the degree to which the currency is inflated. You can even do it in the Roman Empire. You can see, right? You can track the, the, the amount of silver in the coin in the Denarius as it became less and less and less Roman society became more and more crazy. And that’s what’s happening now with American society. It’s the same thing now. There’s nothing new under the sun. We’re all going nuts. Everyone’s going nuts. And, and we we’re, we feel like we’re trapped in an insane asylum, and everyone’s acting crazy, and we’re trying to reach out to each other and say, look, hi, I’m here. I know what I’m, I know what you’re talking about. You, you found me. I found you. I found a whole bunch of other people in Israel, and none of them understand all of it, but we all have a different part of the picture. And our goal again, is to focus them on the core of it all, because that’s what we understand. We’re at the core of it. And even we didn’t understand everything that it was connected to until all this crazy stuff happened.
Lynette Zang (22:39):
Right. Well, and, and so they’re kind of tipping their hat. But, you know, before what we were just talking about before 2020, let us say there was a rise of the public, right. Populism, and then of course it was quashed, but now it’s rising up again. I mean, you live in Israel, so you know what’s going on there in France in South America. I mean, all over the world in the US I mean, we’re certainly not immune. What do you think about that? I mean, is that the public waking up? Is that…
Rafi Farber (23:14):
Yeah, the public is waking up, but it doesn’t, but the public doesn’t understand what’s wrong. Right? They just understand it. It’s just, it’s very unhappy. You know, when, when people, I was talking about this in a, in a class that I gave that the, the derivatives of money, right? We, we use derivatives of money derivatives upon derivatives, upon derivatives of money. The farther away we get from real money, the more depressed we get. But it’s the same thing with food like we don’t eat real food anymore. We don’t eat fruits, vegetables, and meat, which is basically what our, our diet’s supposed to be. Just like, eat a piece of broccoli, eat a fish, eat a hunk of beef, eat an apple. Just, just the thing. Right. You know, don’t process it. I mean, a, a coke is a concentrated, or a Coca-Cola or a soda, like a regular soda would be sugar, which is a molecule that your body uses. It’s a food, it’s a food, but it’s not itself a food. There’s no like sugar tree. Like there’s, there’s sugar cane, which is very little sugar in it, but you concentrate it and you put it in a, a drink, and then you drink it, and then your body doesn’t know what to do with it. You mess up your pancreas because it’s never dealt with this stuff before in our millions of years of evolution. And all of a sudden everybody’s got diabetes. So the doctors say, instead of, stop drinking coke, well, why don’t we just give you this drug so your, your pancreas can handle all this sugar. And then you think about it like, that doesn’t make any sense. Just stop drinking the poison and eat regular food. How about that?
Lynette Zang (24:33):
Yeah. What a concept.
Rafi Farber (24:35):
<Laugh>. So it makes, it makes everybody sick and depressed.
Lynette Zang (24:38):
It also, it also, that’s
Rafi Farber (24:40):
Where we are now. Whether it, it has to do with
Lynette Zang (24:44):
Well, and I was, I was gonna say it also dumbs you down. It also, it also blunts your ability to think critically.
Rafi Farber (24:52):
Right. Which
Lynette Zang (24:54):
Actually plays in.
Rafi Farber (24:55):
Right. So the, the people who understand that they eat real food, and then they kind of wake up and see more of the corruption. And then if we can get them over to the money side, we can get them to start digging with us. We wanna be, you know, gold miners <laugh>. Yeah. Digging under the foundation of this pyramid. Again, I keep going back to that. So we have more and more people waking up and they can’t kick the, the can down the road much longer because the more people that wake up, the more people that will make up will get to our critical mass. And if you look at the money supply, it’s, it’s going pretty much vertical. And not right now. Right now we’re in the deflationary pyramid, but period. But it’s eventually we hit a fault line where we hit the next financial crisis and the fed moves vertical again. So I think that we have one more financial crisis to go, and that’ll be the end.
Lynette Zang (25:41):
Okay. And, and why do you think that it’ll be the end? I mean, I know why, I think it’ll be the end, but I wanna know why you think it’s gonna be the end.
Rafi Farber (25:50):
Just I’d say mathematically we still have a, a very high CPI in what they say, 3.2%. But if you, this is what I wrote in the Endgame investor in my last report. If you look at the biggest component of the, the CPI, it’s a owner’s equivalent rent, which is a made up measure, but it’s, it’s based, it’s a derivative of reality. It has some truth to it. It’s, that’s still at like 7.7%, and that goes down very, very slowly. So the next financial crisis, when it hits the biggest and, and most stable and strongest measure of the CPI is still gonna be at like 7%. And from there, it’s gonna go way, way higher. So the next move up in the CPI is gonna be supercharged. And at, at that point, people are gonna start dumping the dollar and getting whatever they can for it. And then you start a hyperinflationary spiral. Once you start on an inflationary system, there’s no stopping the end game. Right? Right. That, that, that you can only kick the can down the road. So many times the question is, can you do it once, two, two more times, three more times? I don’t think they could do it more than once. And then if you push me hard enough, I’ll just move to my religious instincts and say, too many people are being enslaved now. The planet is in too much of peril. The demented people that are in charge are just too dangerous now. And we’re in a global problem, and this is really God’s planet. It’s not ours. And he’ll save it when he has to, as long as we do our part. And okay, I understand that doesn’t appeal to everybody, but that’s what I go to. And ultimately I’m not in charge and I’m just going to pray.
Lynette Zang (27:23):
Well, I’m gonna say just be you because everybody else has taken anyway, Rafi, <laugh>
Rafi Farber (27:30):
<Laugh>
Lynette Zang (27:30):
You can, you can only be you, but when you’re, when you’re looking at this, part of what I look at are the patterns and the cycles, and the assumption is, is that they wanna keep kicking the can down the road. But I personally, I’m not so sure about that because we’re at the end of this currencies, this current experiment. So they need to transition us into their next experiment, and they have to get us to comply and go along with it voluntarily. That’s the way they do it. And you made such a good point earlier, was, well, what’s the difference between a CBDC and a digital dollar, which is what they’ve gotten us used to over all these years, so that they get us to just accept that.
Rafi Farber (28:20):
That’s the elimination of cash, the eliminate. Yeah. The elimination of cash is really trying to get us from sort of the bottom of the pyramid, the, the, the dollar to somewhere up higher in the pyramid, the CBDC. But it’s, it’s getting, it’s putting us on a, on a much bigger portion of the pyramid, but much higher from the base. So we’re much more unstable putting us all there is just gonna make it heavier.
Lynette Zang (28:41):
Well, it’s, it’s that stability. How unstable do you really think everything that they’re doing? I mean, I mean, do you see an internal implosion right now, external is when everybody else sees it, but do you see an internal struggle with what’s happening in the banking sector? What’s happening in the political sector? I mean, look what just happened in Argentina.
Rafi Farber (29:04):
Yeah. Okay. So that, that was what I was gonna talk about before the connection got a little bit messed up. So the public does understand that something’s wrong, but it doesn’t understand what it is. Donald Trump. He I’m not a Trump guy, like, but I, I understand where he came from. He came from like this unfocused, confused message of we’re angry and we don’t know what to do about it. Mm-Hmm. <affirmative> and Trump, Trump also doesn’t know what to do about it. That was clear when he, you know, signed off on operation warp speed, and he stood next to Fauci and he did everything that he did, and he was like, okay, lockdown, sure, whatever. I don’t know. Like he, he just, he got sucked into it because he, he doesn’t understand what’s going on on, so the public understands that something’s going on. We just have to focus them mm-hmm. <Affirmative> and and, you know, our RFK is not perfect either. He’s got a lot of strange problems and, you know, 1980s Democrat problems. But I take a 1980s Democrat over what we have a thousand times over, and you can tell he’s more focused than Trump. He also understands that something very big is happening and something’s very wrong. He doesn’t understand money very well. But if you talk to the guy, he could probably understand it and then, and then internalize it. I don’t think Trump has the ability to do that. He, he’s too far deep into the fiat system. But if we, but whether RFK wins or not, he can spread a message just like Ron Paul did, right? He can reach more people than Ron Paul did. And and so yes, politically people were waking up Argentina, I don’t know what the hell that was. That just like, came onto my radar just suddenly I didn’t, I didn’t even know what was going on in Argentina. All of a sudden this Rothbardian and won a primary. I’m like, okay. I, I’m not the guy that thinks that politics is gonna save us.
Lynette Zang (30:42):
Yeah. I’m not either.
Rafi Farber (30:43):
I don’t, I don’t think that somebody’s gonna come in charge and he’s gonna be a Messianic figure and saves humanity because he’s a politician. But I do think that politics can focus people’s communication and messaging. That’s what Ron Paul did, even though he didn’t save us by being in charge of anything, he focused the libertarian movement into something that made sense. Yes, RFK can focus the can, he might not win, but he can focus the, the, the, the medical dissidence and the environmental dissidence into something that makes more sense. And then, and then the next guy can focus it more and then eventually will come out of it with their help. Whether they win or not, they’re, they’re, they’re public messengers. That’s what they are. So I wish them luck and hopefully they can change something politically. I don’t know if they can, but they can definitely focus the conversation, what we need to be talking about.
Lynette Zang (31:27):
Yeah. That, that’s really important. But a lot of people think that the bricks, this, this meeting that’s coming up, that they’re gonna back a BRICS currency with gold. Do you have any opinions on that and what you think, whether or not that will save us?
Rafi Farber (31:44):
I don’t think it’s gonna save us. I don’t think it’s even anything. I might be wrong, and if I’m wrong, fine. I, I’m not like a political insider. I don’t know what’s going on. I don’t have any friends that are giving me phone calls from the BRICS meetings, <laugh>, I’m just, I’m just analyzing this logically. First of all, I really hope it doesn’t work because as bad as America is, as bad as the United States is right now I really don’t want China in charge of everything, because they don’t even have a western tradition of liberty as even a previous value in their generations. They don’t value liberty at all. It’s not even a thing. So if China’s really the superpower in the world, you know, we’re pretty much screwed. We’re never screwed. Totally. But Xi Jinping being in charge because he has the money as a terrifying prospect even more terrifying than Putin, I think. So but logically I don’t think that it’s, it’s sort of like, like when, when people, when, when big states or blocks of states negotiate these trade deals and they’re all complicated and this and that, and this tariff and that tariff or, or Brexit, and like, how exactly is it gonna work? And, and, and all these details make no sense to anybody, and they’re all just there to obfuscate. But the thing is, look, if you wanna trade in gold, trade in gold, okay, you want something, go pay for it in gold, ship the gold or, or, or have a hundred percent, you know backed substitute for it and then credit the gold to somebody. Just trade in gold. You don’t have to make a, you don’t have to make this complicated currency system of whatever. And then, you know, and back it with gold, this is all nonsense trading gold is just trading gold. That’s all you have to say. And anyway, you can’t real, other countries cannot get out of the dollar by going to another currency because other currencies are derivatives of the dollar. It’s like you’re saying, you’re getting outta the pyramid by going to a higher layer. That doesn’t make sense. So if, and, and if these countries went to a hundred percent backed gold currency, then they would be collapsing their whole trade systems. And what they really want is what the United States has now, the United States now has a right to print a bunch of digits and then hand them out to people and get a bunch of stuff, which is why America’s so rich and everyone else is so poor. That’s what they want. They don’t want fair trade. Fair trade means that they lose their power or they give their citizens power. They want the right to inflate. And that’s what they, that’s what they’re trying to do. And so I don’t trust them and and, and if to even want gold as a trading mechanism, and they’re not gonna do it. So I don’t even know what we’re talking about.
Lynette Zang (34:21):
<Laugh>, I’d agree with that. I brought it up because a lot of people think that they’re gonna magically just create this new currency and automatically back it by gold. I am on board with you. Even the BRICS Bank said that it’s, it’s about having the ability to trade with their own currency in the member’s country. So it really is more about trade. But I had to ask you, because a lot of people make this assumption and they think that it’s just so easy. And I don’t know, they, that’s the part of the world that has been accumulating a lot of gold.
Rafi Farber (34:57):
Yeah. I mean, good for them. They’re accumulating gold. But it doesn’t, it doesn’t mean that when, when a central bank accumulates gold, the gold bugs get all excited. There’s two reasons not to get excited. First of all, you don’t get excited because we don’t want central banks to have gold because I don’t want them to have power ’cause they’re evil. Right? I want them to have no gold. I want the stackers to have gold. I want rich libertarian billionaires to have gold <laugh> That’s what I want. And, and second of all, when they’re accumulating gold if you look at the, the, the central banks of let’s say Turkey then they’re excellent at trading gold. They they bought gold at a low, they sold gold at a high good for them. So what, I mean, it doesn’t stabilize their currency. Their currency is still hyper inflating garbage. You know, essential bank can buy gold as much as it wants, but if it’s, if it’s using gold to sort of manipulate the value of their currency or their dollar exchange rate, then the gold is so what if they have gold? It’s just an asset they’re trying to manipulate. If, if they’re buying gold for the eventual purpose of saying, okay, now we’re going to make our currency, all the currency that still exists on our balance sheet, it’s gonna be exchangeable for the gold that we have on our balance sheet, then they have to all fire themselves and do nothing. And ’cause we don’t need them to do anything anymore. And they’re just a gold substitute manager. So what do you need them for? They’re not in the business of, of making themselves irrelevant. So their gold stocks and gold hoarding doesn’t even matter.
Lynette Zang (36:21):
Hmm. See, I, I think they’re doing it so that they retain control and they can retain choice and they retain power against everybody else, which is the same reason why an individual should be accumulating gold and silver. Right? Yeah.
Rafi Farber (36:36):
So yeah, you’re right. I agree with you on that. They’re definitely trying to maintain power, which is why they’re buying gold, but they don’t, they don’t know how to use it <laugh>.
Lynette Zang (36:44):
Right.
Rafi Farber (36:45):
And, and even if they’re trying to maintain power, the amount of gold that they can put in their central banks is nothing compared to what we can stack. How much, how much gold is in private hands, a lot more than it’s in the hands of central banks. And when, when currencies no longer, no longer work, then the public is gonna have a lot more gold than these central banks can ever, can ever have. And by the way, their currencies are gonna be in collapse. And, and their, their the FOMC equivalent of each and every country might be lynched in the street just like Mussolini was. And I don’t, I don’t, I’m not saying that that should happen. I’m not rooting for it. I’m not making any calls to violence. I’m saying they’re gonna be in trouble when their currencies collapse. Yeah. And, and good luck if they survive it.
Lynette Zang (37:23):
Yeah. But you brought up Turkey and Turkey is so interesting because they really went against the rest of the world and were lowering interest rates to fight inflation as, as all the other central banks were presumably raising interest rates to fight inflation. And you have such an interesting take on all of this rates as far as it relates to inflation. Would you share that please?
Rafi Farber (37:50):
Okay. So if you look at the, people assume that the higher rates go it’s bad for gold. That’s true in a very, in a very short term mechanistic sense. If you look at any specific trading day and the Fed raises interest rates, and then gold goes down, but it doesn’t…
Lynette Zang (38:06):
That’s spot market, that’s spot gold. And there is a difference between the paper gold market. I don’t mean to interrupt you, but, but this is a point that most people just and, and it isn’t directed at you, but they refer to the spot market as gold. And that is a trading market where you can create as much gold that does not, or ever will exist. The physical gold market is very different. And so are the prices That’s true supply and demand. I’m sorry, I didn’t mean to.
Rafi Farber (38:35):
Okay. I agree with you on that too, and I can hone that point. But before I do what, what was I was saying about interest rates so if you, if you look at at nine, you know, 1978 to 1980, and that was the point where Volker got in and you said, look, we got a, we got, we have to stop the money supply from growing. He, he basically, he said he wasn’t, you know, hiking rates, he was trying to target a certain money supply growth rate mm-hmm. <Affirmative>, and he was using rates as his tool to do that. So he pushed rates as high as it they needed to go in order to stop money from being created. And that, that’s what he, and during those times, gold went from what was it, a hundred, $200 to $870 or whatever it was, silver, from about $6 to to $50. And that was specifically when interest rates were being raised and raised and raised. But why were they being raised? They weren’t being raised. They, they were being raised because they had to, to save the currency. That was like the, the fiat currency that we call it today, that was taking its first baby steps. And it was mm-hmm. It almost fell off the, the rail back then, you know, it would’ve been much better for us if it did. Mm-Hmm. <Affirmative>, but it didn’t Volker is not a hero. He’s a villain. I mean, he’s a, he’s a hero in terms of responsibility, but he’s a, he’s a villain not even knowing that he was, because he preserved the system that we’re still in today. So on the, on the longer term higher interest rates if they’re, if they’re being hiked in order to in a, in a panic to save the currency, which you see certain third world central banks embarking upon.
Lynette Zang (40:05):
Yeah. Well, Argentina just supposedly did that, right? Yeah. The overnight rate.
Rafi Farber (40:09):
Yeah, exactly. So if, if, if they’re raising it and raising it and raising it because they’re in a panic then that the, the public smells that fear and they just buy gold anyway. Mm-Hmm. <affirmative> and the, at that point, they can’t control it anymore. So Yeah. About the spot gold market versus the gold market here, I what you’re saying is true and allow me in, in my, in my way of thinking about it, it’s, I can, I can categorize it a little bit, a little bit more. Exactly. There’s two prices of gold. There’s the commodity price of gold, and there’s the monetary price of gold. Okay? So the com the commodity price. When, when you’re trading a gold futures market or a gold derivative, really, it’s it, it’s, it’s the, it’s the commodity price of gold. How much does a, a dentist need to pay to buy his gold supply for the fillings that he needs? Or how much does a jeweler need to buy the, the gold for the, the jewelry that he needs to make? And the reason that we don’t see shortages in the gold market for the commodity price is because the futures prices, you know, it’s pretty good for gold as a commodity, right? But what’s, what’s the, what’s the gold price for gold as a money? Well, that would be the a hundred percent exchange rate between everyone who has dollars in any currency and the, and the gold that’s available. That’s like 40k-$50,000 an ounce. So if, if people are just, if everyone is exchanging their dollars for gold at the same time, then yeah. The future’s market’s gonna crash. It’s, and it’s not, it’s not gonna work. ’cause You the, if gold isn’t money, then there’s no need to trade gold futures. The gold futures market is designed to push down the monetary price of gold. Mm-Hmm. <Affirmative> and only reveal the commodity price of gold. And once, once we demand gold as a money again, then the, the futures market breaks down entirely. Mm-Hmm.
Lynette Zang (41:47):
I can’t wait to see that, to be perfectly honest with you, because it’s such a lie. And how many times can you be lied to when you do not know the truth?
Rafi Farber (41:57):
Yeah. Well, before 1974, there was no gold futures market because gold was the money. And what controlled the supply was how much it cost to dig it outta the ground. You didn’t need futures to hedge that. It didn’t make sense.
Lynette Zang (42:09):
Exactly. So do you think that we’re going to, are, are they able, are the central banks able to control inflation with interest rates? ’cause I really, you know, you have such, such an interesting perspective on raising rates versus lowering rates and…
Rafi Farber (42:26):
So are they able to they’re able to bring down consumer prices for a while? Because when, when, when central banks are raising interest rates, they’re, they’re making people bankrupt who had a whole bunch of debt before. And when you make people bankrupt, their money goes away. Like their debt that was part of the money supply gets defaulted on, and the money falls for a little bit, which is what we’re seeing now. And their demand for goods and service in the economy falls. So you see a collapse in demand due to the poverty that they are producing or that they’re revealing, really they’re not producing it. They’re revealing the lie. And for a while, the, the higher interest rates controls consumer prices. But then if, if you keep rates high enough for long enough, what you’re going to do is you’re going to inflict you, you’re going to push down supply even faster than you’re gonna destroy demand. Right. It’s gonna bankrupt businesses which are not gonna be able to produce the same amount of stuff they’re producing before. And then the supply of goods and services is gonna shrink because of the higher interest rates and then prices if things are gonna go even higher. And that’s the next wave. That’s why it goes in waves. Hyperinflation goes in waves of hyperinflationary panic and hyper deflationary panic in the next financial crisis and up and down and up. We’ve been going in those waves since 1971. They’ve becoming faster and faster and faster now. And we’re at the final waves, I think.
Lynette Zang (43:43):
Well, I agree with you and I wish we could keep going on ’cause you’re so interesting to talk about. But I want you to please explain to the people number one, anything that we haven’t talked about today that you really feel that they should know. And number two, how they can find you.
Rafi Farber (44:03):
What you should, what you should know is just in terms of when the end game does happen you probably wanna be out of high-rise buildings, high-rise cities and be, you know, now you don’t wanna be stuck in them when this happens because all of a sudden everyone in the city is not gonna have any purchasing power, and you’re gonna be in the middle of a big building and in the middle of millions of people. You don’t want to be there. So move to either at least the suburbs and if you can, if you are able to then move out into the country. And I would say get to know people who have skills. Farmers, carpenters, people who can work with their hands, people who can, you can trade with in a, make a local economy. Now you don’t have to be like a crazy prepper. I’m not, I’m not a a, a sophisticated prep or anything, but I have people’s numbers in my phone. I don’t know if the phone’s gonna work, but I know where they are and and I’ll be able to, to contact them hopefully. And I live in a remote area and also have a bag of junk silver on you. Gold is useful for wealth preservation. It’s not gonna be useful on a retail level. So the first thing you need is junk silver bags. Mm-Hmm. <Affirmative> dimes, quarters half dollars, that kind of thing. And just have a bag of it available. And if you can get, if you can get a gun license be armed just to be safe so you can sleep at night and don’t worry about trading so much. Don’t worry about whether gold’s up one day down one day, <laugh>, that’s all. Just screw with your head. And where can you find me? You can find me at the End Game Investor. You can put it into any search engine. You’ll find that it’s on Seeking Alpha. And I write about three, four times a week with a weekend report. And what I do there is I basically, I focus people intellectually on what’s going on and the logic of what’s going on and why, despite all the, the, the, the volatility, this is still the direction we’re going in. And I use examples from what’s going on in the day or the week from an Austrian school, logical positivist perspective. And I also have a Patreon where I go into a more biblical angle on these concepts. And I go into monetary and economic and political examples from the Bible, from the Tenah from the Jewish testament. And and so we can know that these issues have been going on for 3000 years. And people who appreciate the Bible and appreciate what, how society came to be can see these same things that are going on now, going on then. And it provides it provides a bedrock of, of emotional, intellectual stability, whether or not you believe in it as a divine source of anything.
Lynette Zang (46:42):
That really good point. And I love your approach to Community, so I’m really glad that you brought it up. ’cause That was one of the things I wanted to talk about. But we’ve talked about so many other things. So it’s even, I definitely am a prepper. So I’m kind of building my own community. But that’s a great way to do it. If you’re living somewhere, go and get to know your neighbor. Go and, and find out what their skill sets are. Develop your own skill sets. Know a know a farmer that grows food, meat all of those things and create that relationship now while you still can. Right. So that they know you, so that when you need them, if you’re not, if you don’t have the ability or you’re not insane, like I have tried to do it all yourself with my community that I have been building. I mean, that’s a great way to approach it. You know, I take it very local because that’s what happens during either hyperinflation or deflation. Things get very local for a while. So Rafi, thank you so much for joining us today. This has been so interesting and I’d love to have you back on so that I can ask you more of the things we can talk about what’s going on. I love your perspective.
Rafi Farber (48:00):
Great. And I hope to have you on too, on my channel. This is excellent.
Lynette Zang (48:03):
Excellent. Yeah. Absolute. Well, this has the community, right? We have to you. You know, you made such a good point. We don’t need everybody to know what’s going on. We just need a very vocal minority because people are waking up. They can feel that energy. And I was around during Volcker’s time and I remember that energy and what was happening. So yeah, it’s just a repeat of history and that helps you know what to do. Yeah, right. To get prepared. So I hope everybody got as much out of this as I did, and go and visit Rafi, his channels and listen to his words. He’s very, very bright. He’s been studying this. He’s got a great unique perspective. And until next time, please be safe out there. Bye-Bye.
Rafi Farber (48:53):
Bye.
SOURCES:
Rafi Farvehttps://www.youtube.com/channel/UCYhpYwnKIVsuHZs1txP6biA
Exter’s Pyramid: https://seekingalpha.com/article/4332917-re-imagining-exters-pyramid-in-todays-panicked-market
Roman Imperial Coinage: https://www.worldhistory.org/image/10115/roman-imperial-coinage/
- Denariusof Emperor Nero (reigned 54-68 CE) of the Julio-Claudian dynasty. The silver content of the coin (fineness) is >.92. Nero’s jowly face, gazing to the right, is recognizable, but barely. This coin was clipped around the edges in antiquity because the value of its silver exceeded the value of the coin.
2. Denarius of Emperor Domitian (reigned 81-96 CE) of the Flavian dynasty. The fineness of this coin is approximately .90. A layer of fine oxidation (black) can be seen on its surface.
3. Denarius of Commodus (reigned solo 180-192 CE), as Caesar to his father, Emperor Marcus Aurelius (reigned 161-180). This coin dates from the years 177-180 CE, and has a fineness of about .8. The remarkable skill of the ancient engraver is immediately noticeable.
4. Antoninianus of Caracalla (reigned 211-217 CE). Note the radiate crown. The value of this coin was officially two denarii, but only contained only 1.5 times the silver amount. The result was price inflation.
5. Antoninianus of Gallienus (reigned solo 260-268 CE). This specimen contains no more than about 20% silver. If the surface oxidation is removed, the coin is dull gray in color due to the admixture of base metals and copper.
6. Antoninianus of Salonina, wife of Gallienus (murdered 268 CE). The shoulders of the Empress rests on a half-moon, which designates this coin as an antoninianus. However, this coin contains no more than a few percent silver at most.
7. Centenionalis of Julian II (reigned 361-363 CE). Bronze coins of this type were common currency, but had little intrinsic value. Millions of them were minted; the green color of this coin is due to the oxidized copper present in bronze. By this time, the old denarii and antoniniani had long since disappeared.
8. Nummus (i.e., coin) of Valentinian III (reigned 425-455 CE). The face of the Emperor, in profile, can be seen on the left-hand side, facing right. This bronze coin is crudely engraved and has an actual diameter of only 8 mm. However, Valentinian III continued to mint in gold, as did all his successors down to Romulus Augustulus in 476 CE.