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We have all kinds of aggressive moves by world powers and I'm afraid it may not end so well. And uh since we talked many u markets have gone ballistic. I mean many assets have gone up substantially in price and others have gone down. And so there were big movements in the markets to make money. I mean let's say when we last talked uh nobody was interested in precious metals.
This has changed. I'm not saying that all you viewers should rush out and buy gold and silver and platinum but uh this has been a big change over the last two years. the outperformance of precious metals against financial assets. I'm an economist and I studied economics but I wrote the thesis about mostly fiscal and financial policy fiscal and monetary policy and financial reforms in the 19th century.
And uh I mean I have to say I'm sort of surprised how much money I certainly have. It's hard to believe. You know that you have a stock portfolio and uh you have a portfolio of precious metals and suddenly the value goes up that much and then you say to yourself the wealth inequality has grown dramatically because I worked since 1970 and therefore I always had savings and surplus income.
had more income than I used and therefore I have assets and these assets have gone not a lot in value and I'm thinking about the 50% of Americans that have no assets or if you look at the global population most people have nothing. I live here in Thailand in the north. I see it every day. There are people they go to bed, they have maybe $100 in total wells, you know.
I mean it's really in some cases heartbreaking but I was fortunate and therefore I have assets although I as a social observer as an economic historian as an economist and also as a sort of political philosopher I have to say that the system is rotten because in a society Basically, you want to be a society like the US in the 19th century.
Why did people want to go to the US in the first place? Because the opportunities were so much better in America than in Europe. So, they all fled to the US and went to the US not because of social security, not because of all kinds of benefits. They went because if they worked hard they could improve their lives which was not a given in Europe.
So I went to the US the population of the US grew from 4 million in 1800 to 80 million in 1900 and there was no inflation. Why there was no inflation? Very simple. There were no stupid economists and central bankers that destroyed the economic system through interventions which they have no clue about.
The prime in example of interventions without any clue is Mr. Trump. He's a clueless interventionist. I would have voted for him any time compared to say Camala Harris and Mr. Pu uh Bush. But he's an ignorant interventionist that is dangerous. But anyway, I what I wanted to say is so you know I look at my the southern wealth because assets went up and I say to myself, can it go on forever?
No. Now you will say, Mark, we talked about this already 10 years ago and you said it won't go on forever and it's still going on. and I would respond, "Yes, you're right. I started to work in 1970. In 71, Nixon went off the gold standard. Then inflation picked up and then in around 1980, I met the strategist at Mary Lynch.
They all said a debt collapse is going to happen soon." These were the famous strategists Dan Salvixson and Ironstein, Mike Aronstein and Charlie Mter and they predicted that the whole debt system in America would collapse by the end of the 80s. Well, we had a crash in ' 87, but uh it's remarkable how the system held together, especially, you know, I I predicted the 87 crash.
I accidentally it happened the next day. One of my major predictions was the collapse of the Japanese stock market. So 89 Japan was more than 50% of the world's stock market capitalization and my view was that if Japan would go down it would affect other markets. Yes, it affected the money flowed out of Japan into other markets and they performed well like the NASDAQ and so you know when you look at predictions a lot of things happen but the impact is different than what you thought a collapse in NASDAQ stocks now in the max 7 which are in a bubble stage very clearly the valuations are skyhigh high and semiconductors as well and so forth and then we could have other markets going.
I want to tell you the outcome because I have helped numerous poor people. The first minor storm that occurs after they received say the sort of money that you are talking about and I gave people much more. You can give to someone a coin of gold worth say $10,000 or what not. Uh they have a slight problem either with their children or the parents or what not.
They give it away in that environment. I want to be diversified. And I'm not saying that gold is cheap here. No, because oil is much cheaper. You know, we can compare prices. So oil is cheap against gold and wheat and corn and soybean is cheap against gold. Coffee is relatively high and so forth and so on.
But one thing is evident to me whatever happens I think the precious metals will kind of maintain their purchasing power because people have a maximum of one or two% of their assets in gold. They don't have much gold. If you go to cocktail party in New York and so forth and then of course the women will say, "Yeah, we own gold." And so forth.
If you dig a little bit, they own an earring in gold or an ounce in gold, but not like a ton of gold or a kilo of gold. No, that they don't own. And most people I want to tell you as the price started to go up for gold and silver they sold it. We can measure how much money is in the ETFs very small.
I mean there are periods and I just looked today at the chart of the 10 years Japanese bond. Do you know what the yield was in 1990 of the 10-year Japanese bond? I don't. 7%. Wow. This is a remarkable thing if in financial history. You have the stock market in Japan being the largest stock market by market cap in 1989.
I mean the peak was December 31st, 1989. Then the market start to go down and as you said the market cap was over 50% of the world and it it went down to like less than 5% now and then at the same time interest rates went down and you had in history one of the biggest bull markets in bond prices. I mean the 10 years went to almost 0%.
It is remarkable. I was also in the US in May 2020 the low for the 10 years US Treasury was 0.57%. We're now at 4% something. And this is something.
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