Episode 6: Rafi Farber and Andy discuss the current state of the markets

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Andy Millette: Good evening, Rafi. How are you doing?

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Rafi Farber: Pretty good. I had a I had a good week last week, and was it Sunday. Now. Yeah, it’s good. I’m good. How are you?

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Andy Millette: I’m doing? Well, some Sunday evening

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Andy Millette: where you’re at and about to not about it. It’s 2 in the afternoon where I’m where I’m at. Where are you?

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Andy Millette: I’m in Atlanta, Georgia.

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Rafi Farber: Yeah, I know it. Okay? And you’re in Israel. what part of Israel? And what kind of map? Just to get an idea all the way up

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Rafi Farber: some people call it Southern Syria and go on whatever

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Rafi Farber: yeah, disputed territory. I don’t know. It’s it’s in the go on above the key narrative of the like.

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Andy Millette: Got it now I just again a little bit about your story.

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Andy Millette: Would we? Were you ever in the States? Or.

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Rafi Farber: yeah, I grew up in. I grew up in Miami. I was. I lived in in the States till I was 23.

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Rafi Farber: I went to college at Brandeis.

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Rafi Farber: do you? I guess anything they call it. I don’t know what they call it now

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Rafi Farber: woke you And and then I I moved to Israel when I was so I lived in in a year in New York, and I went through a medical school in here for one year, and then I decided it wasn’t for me. And I came here and got married and

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Rafi Farber: Then eventually I found libertarianism somewhere between 2,008 and 2,012, when I figured out Ron Paul was right about everything, and then I started reading about economics and

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solved a lot of problems and put things together for me.

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Andy Millette: It’s got you so 2,008,

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Andy Millette: Ron Paul running for President. That’s really what got you interested in economics? No, it was 2,012, 2,008. I figured out something was very wrong.

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Rafi Farber: I didn’t know what it was. And then I I started turning more libertarian

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Rafi Farber: and there, there’s a there’s a like a libertarian activist in Israel. His name is Moshe Faglin. He’s He’s kind of a loose can. And Israeli politics. He wouldn’t probably probably wouldn’t know who he is. But he, yeah, he’s like the Ron Paul of Israel. So we put me in the libertarian direction.

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Rafi Farber: and as I was

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Rafi Farber: as I was a follower of his, and I was also his neighbor. I came across round Paul one night. I I didn’t even know he was until 2,012 and

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Rafi Farber: and then I I just I just kind of like fell into a giant deep rabbit hole, and I was up for like 36 h got it? Well, tell me how?

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Andy Millette: that’s how it? How is it like being a libertarian using your words living in Israel? Is that? Yeah. How does that work? What is Israel like? And how does that? Yeah mesh with

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Andy Millette: with government there and that sort of thing?

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Rafi Farber: it’s it’s it’s a complicated. I, I live in a very complicated situation. because. okay. Well, first of all, when you say, What’s Israel like, do you mean the people? Or do you mean the government? No, I got the people part. I would say. Well, that that could be the people, but I was more implying the government because and I’m coming from a place of being naive.

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Andy Millette: Obviously, since you’ve been in the States.

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Andy Millette: we’re supposed to be the land of the free, that sort of thing, but as throughout my life I am pushing 30, I’m I’m sorry pushing 50 years old here, and that has progressively gotten more bureaucratic and less freedom. So I mean, it’s been more of a struggle nowadays than it was when I was a child, or even a a young adult. So my, that was the context of my question, what is that

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Andy Millette: look like now in Israel? Or how does a libertarian like yourself?

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Rafi Farber: okay, so does that make sense. I I’m yeah. It’s it’s a it can come at this from many different angles. I’m not exactly sure what you’re looking for. I’ll just start talking, and if you like it, you like it, whatever.

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Rafi Farber: so I I I’m a I’m a deeply Jewish person.

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Rafi Farber: not necessarily like religious in the in the Christian sense of what religion would look like.

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Rafi Farber: But I’m very nationally connected to my people, and I do see the the Bible and Judaism as really the founders of libertarianism. Not in the strictest sense of like, you know, this is libertarianism, and this is, you know, the but it’s not. I’m not saying they’re equivalent.

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Rafi Farber: But the whole idea of you know, enslaving an entire people is an illegitimate thing, and you can’t just do that just because you’re powerful

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Rafi Farber: that that came from us. that that whole story. So I see our our mission here the the the Jewish people, as saying an example which we’re not doing very well. I’m not saying that we’re succeeding at that.

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Rafi Farber: But that’s why that’s why I’m here.

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Rafi Farber: I’m trying to. I’m trying to be both Jewish and libertarian together, and and

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Rafi Farber: show people that it can be done, and then it should be done.

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Rafi Farber: But meanwhile Israel keeps going in the in worse and worse directions. I mean, the government here is just it’s terrifying. It’s very frightening.

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Rafi Farber: and it keeps getting worse. I mean what what I went through when many of us went through, and in 2020 to 2022

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Rafi Farber: it, it changed my life, and my beard comes from there as I I got.

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Rafi Farber: you know, thank God! And my family was very strong. But I had. I I fought back

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Rafi Farber: against tyranny in ways that I didn’t think that I was capable of. I just kind of lost it, and I I I came to the conclusion I had. I have to kick and scream, and I have to fight.

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Rafi Farber: So it did, and a lot of people thought that I was nuts, and maybe I am. But I did what I had to do, and I hope that that the the virulence of the way that I fought back

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Rafi Farber: I helped stop some of the Terry, and it’s in his tracks. And I’m still involved in a bunch of lawsuits with that

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Rafi Farber: and that’s the you are there. But

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Rafi Farber: So yeah, I I I see my mission here in in Israel, and I I do see a a general collapse of society which I think is going to be a good thing. It’s going to be rough.

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Rafi Farber: But when it does happen I I I need. I need to be here with my people and other people need to be with their people, and we need to each rebuild our own cultures to what their ideal used to be, whether you’re American or Jewish, or you know, somewhere in Europe what whatever? Whatever was the best

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Rafi Farber: that your people could come up with, that’s what you got to rebuild We’re all gonna have to do that. So I’m here. You’re there and

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Rafi Farber: we gotta get to work. Yeah, perfect. that sets up the context, I guess, for your your view of the world, and

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Andy Millette: where you’re at. I guess that was really a great answer to my question. but I guess the next thing is that I’m very curious about is how this relates to to money right? in exchange. if you would and what I mean by that

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Andy Millette: is, you have an it. You specifically have an interesting

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Andy Millette: background, I guess, is because you lived in the States. And now you live in Israel. So you’re very familiar

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Andy Millette: with the dollar right? And so your point of view

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Andy Millette: and I’m somewhat on the fence. On this I used to be very Austrian, and I I am Austrian in my

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Andy Millette: in my thinking and my theory and my foundation. But

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Andy Millette: practically I’m on the fence. If you I would if you if you would. It’s just this idea of dollarization and D dollarization.

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Andy Millette: I’m curious working that out with you in your thoughts, you know in the context of like, if the dollar goes away for international exchange.

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Andy Millette: what else is there, or what would you say to somebody like that? Or and then I’m not saying that I’m I’m genuinely curious

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Andy Millette: about this.

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Rafi Farber: right? So The way I look at it. This kind of fell into place only 2 or 3 years ago. For me the

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Rafi Farber: things things just gradually fell into place, and some things fell to the wrong place. I had to move them. But this this one fell into place, I think, in the right place. I was listening to Peter Shift one time, maybe 2 or 3 years ago, and he and he said that

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Rafi Farber: that that that he said something like a sense like the the dollar as a money substitute. And then I remember me, saying that it

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Rafi Farber: in his book, theory of money and credit use. I think he used the term money substitute.

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Rafi Farber: which it that that phrase I I hung on to that. I was like what it is. That’s what the dollar is not. It’s not a money, right? It it was born as a substitute for something else like there was something already being traded

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Rafi Farber: for stuff. And then the dollar came in and said, Look, instead of using that stuff that you’re using. Just use this piece of paper instead, and it’ll be the same thing right? And then it was like, Okay, sure, So that’s that’s how that’s how paper money

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Rafi Farber: came into existence. It cannot come into existence any other way that it would be impossible, because

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Rafi Farber: any other medium monetary meeting that comes in to replace something else has to base itself on that previous price or right, or else prices make no sense, and you have no division of labor at all. It always has to go back into the past. There’s a chain, and it cannot be broken right? It can. It can be. You can have bumps in the road like serious bumps in the road.

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Rafi Farber: but that that can displace a lot of people and say, well, a lot of this price system was wrong. So the prices of this stuff is going to go down. The prices of that other stuff is going to go up, and the people that we’re selling the price that goes down. They’re all messed up now right? And the people that are selling the the the stuff that the price goes up. They have a lot of money. Now, right? It’s a it’s well transferred because the price system is wrong. So that’s that’s kind of basically what happened in the Great Depression. Right there. There was a there was a price system, a price array.

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Rafi Farber: and it was discovered that it was all wrong because the Fed had been putting all these other money substitutes into the system

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Rafi Farber: that disturbed all the prices of everything, and then, when they no longer could do that right, then they stopped, and then everything got messed up so that, and then to to to try to

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Rafi Farber: go back to reality the fed, or was it Roosevelt, and he changed the price of gold from 2060, $20 and 65 cents. I think it was, or something like that. $21 to 35, yeah, to $35, right? And then everyone was like you. Could, you could look at that, as you know, in the current environment as well.

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Rafi Farber: Who cares what the price of gold is like, what? So it’s gonna cost you like 60% more to buy a wedding ring. Who cares like? What? Why is that even important?

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Rafi Farber: But if you, if you understand what gold is, it is not not just jewelry that you put on your finger when you get married, it’s money.

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Rafi Farber: and when the when, the price, when, when, when the exchange rate between money and a substitute is altered, the prices of everything gets altered. That’s which is why, in every single, every single hyper, inflationary economy that has ever existed, it’s gold that goes to infinity. Right? So what? What is what is that? Why should goal go to infinity when when that’s happening? Well, because it means the money is dying and the money is gold. And what you’re using is just a substitute for it.

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Rafi Farber: So when you, when you’re saying that the the dollar is going to leave in international finance, which will, what’s it going to be replaced with.

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Rafi Farber: It’s not going to be replaced with anything. I mean, it’s the substitute that’s going away. So when the substitute goes away you gotta go back to the thing. That’s not the substitute, which is gold itself.

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Andy Millette: That’s that’s what happens. So the the

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Andy Millette: what you’re saying is is gold’s going to replace the dollar in essence is what you’re saying. Not even that. I’m not saying gold is going to replace the dollar when you’re using a dollar. You’re using gold, you just don’t realize it

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Rafi Farber: got it. So when so when the dollar, when the dollar goes away, it’s not gonna be replaced by the dollar it. But we’re placed by gold. It’s just not going to work anymore as a gold substitute. So instead of using a gold substit that just doesn’t work at all. You got to use gold itself. There’s nothing else to use. Got it? No, that’s an interesting point. And I guess the I’m trying to game this out.

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Rafi Farber: Would such a situation be highly inflationary? Going back to the gold standard, or would it be? Seems like that would be very deflationary, and maybe even bring with that bring price stability. Then, in your point, in your view, highly inflationary, that it can’t going back to gold, cannot

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Rafi Farber: it? It can’t. It’s not even deflation, I think. What you’re talking about is, we will prices go up or down

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Rafi Farber: in terms of the pro like when you have an a hyper inflationary event going on. What is happening is that the prices of everything is going way, way, way down in terms of real money right? It seems that the price of everything is going up in terms of dollars

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Rafi Farber: or or vim are again whatever. Va. If I are not again, what? What was the the marks? Sorry? it. It seems like the price of everything is going way way up. But really, if you look at real money.

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Rafi Farber: We were like real. The real money is going crazy, and the prices of everything is going way way down in terms of real money. And what is that signaling at signaling the economy is begging. It’s desperate for liquidity, for real liquidity, because a other, because otherwise the division of labor is going to break down, and people are not going to be able to trade anymore. And then you have a zombie apocalypse. So so the the prices of everything going down in gold.

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Rafi Farber: right? And silver is a signal that the most important thing right now is golden silver more important than food, water, or anything, because, you know people can still, you know, drink water and get food somewhere right, or they can barter other things for it. But but in terms of the entirety of the division of labor itself. You need a money, or it will break down

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Rafi Farber: So it’s it’s much, much more important to get gold and silver in that economy as soon as possible.

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Rafi Farber: and so is that it inflationary, though from I see the way I see it in an Austrian perspective inflation just means like, okay, we have. We have money, gold and silver. We have their substitutes. These paper things are digital things, or whatever substitutes they are. And inflation is when you say you, you increase the supply of the substitute, but you do not increase the supply of the actual thing.

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Rafi Farber: It’s so you’re lying right. And that’s that’s what inflation is. It has effects meaning. It disturbs the price right? Because it makes the economy think there’s more gold or real money in the, in, the, in the economy than there is

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Rafi Farber: so returning to gold would be the ultimate.

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Rafi Farber: It wouldn’t be a deflationary like

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Rafi Farber: I. I don’t see. Goal is deflationary. It’s just money that isn’t inflated right? There’s there’s money substitutes that are. You can’t inflate money itself. It’s it’s goal. You can’t inflate that

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Andy Millette: no, I’ll accept that definition.

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Andy Millette: I just have to think about it. And I guess to share with my point of view.

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Andy Millette: I am. I’m not trying to straddle

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Andy Millette: the fence. But I am.

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Andy Millette: I am solidly in your camp. From an ethics point of view. I am solidly in your in Austrian for many years for deck for decades, if you would

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Andy Millette: from even just a

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Andy Millette: even a practical point of view, I would say, but I was having this discussion

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Andy Millette: with the friend of mine over the last few weeks?

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Andy Millette: And these questions came up of that I just post to you and I I I thought there was, and I still think there’s something to it. It’s like, if if not the doll, what they gonna replace the dollar with. And if the dollar goes away. And I think that’s an interesting question.

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Andy Millette: you know, and I maybe maybe they it is replaced, and then then I would be the first in line

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Andy Millette: did to to have that. Don’t get me wrong. but it’s just something that I’m trying to work out if you would, and that’s also where you

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Rafi Farber: you came to top of mind to somebody I needed to talk to you. It’s it’s not something that needs to. I don’t think it’s gonna have to be worked out like, I think in your head you’re picturing. Okay? So one day the dollar it hyperinflates to nothing. And then people will be like, well, what do we do now and then? You have like a committee that gets together and decides it’s going to be Xyz. There’s there’s not gonna be any committees like it’s not like the the gold. The gold standard itself was not.

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Rafi Farber: you know, the League of Nations getting together and deciding. Okay, we’re going to use goal now because it’s the most. It’s just what people were using. And then if you wanted to be part of that global division of labor. You would have to use gold because all the people were using it. Because really, that’s that’s what

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Rafi Farber: that’s what money is like, you know if you want. Yeah, I don’t know if this analogy works. But if you want to have babies, you need a a boy and a girl. Okay, that’s just how it works. You can’t do it any other way. So if you want, if you want money you need in a global economy, you need the most liquid commodity that exists, and that is gold.

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Andy Millette: are you? Yes, true, in prisons you could have maybe kit tins of mackerel, or something

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Andy Millette: so fast forward to more, I guess. what’s happening now? Meaning

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Andy Millette: June 2,020

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Andy Millette: 3. We’re getting these signals that we’re hearing, or we’ve heard in the past

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Andy Millette: 12 to 18 months, all about inflation, and I am actually granted. I just I took my youngest son to the store. The whole foods here in in Atlanta, and we bought lunch, and I paid $50 for lunch for 2 people. so that’s obviously very inflationary that it was. then I can remember. But but my, what a month to ask! It is like, it seems like there’s a lot of deflation going on right now?

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Andy Millette: yeah, tell me about that. What exactly are we seeing and and what’s going on right now in the economy?

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Rafi Farber: well, right right now. if you’re talking about the money supply, it’s deflating the the money supply hit a peak

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Rafi Farber: of like 11.5 trillion something in April 2022. And now we’re down to like 10.6 10.5 trillion. So about a trillion dollars of

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Rafi Farber: have been erased out of existence, and in about a year. And the reason that is happening is

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Rafi Farber: that that as the just, just, the mechanical reason that’s happening is that the fed on its balance sheet

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Rafi Farber: is the the weekly. This is term the Feds balance sheet. Well, the the Federal Reserve, which is the issuing bank of dollar units. They issue those dollars for stuff. Now, what stuff do they have? Well, they have a bunch of. They have some gold, and they have a bunch of debt from the government and debt for mortgage owners right? And then ultimately they own these mortgage back securities, they on these treasury. So all of this, all

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Rafi Farber: the when it ultimately that all gets paid back to the Federal Reserve, and when money

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Rafi Farber: is paid back to the Federal Reserve because they own a lot of the debt.

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Rafi Farber: then those dollars that they are paid no longer exists. Right. The the fed is the black hole from which all you know monetary matter comes, and all matter to monetary matter gets sucked back into it

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Rafi Farber: so

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Rafi Farber: as the if the fed continues to allow the debt to be paid off

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Rafi Farber: that, it owns. Then more and more dollars will just come out of existence, and you’ll have more deflation.

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Rafi Farber: But But still I mean, compared to what, how much you money was in the system. How much dollars in the system in, let’s say, 2019 we’re still way above that. We’re just plenty of extra dollars left over, and that and that’s why consumer prices are still going up, and they they will keep going up. I don’t see them going down

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Rafi Farber: and in the in the late stages. that’s what happens like consumer prices. Just keep going up and up and up as you have more and more intense financial crises, and then eventually, the in order to stop the financial crisis, the the the central bank has to keep printing more and more and more, or everything will collapse, because everything, everything, the entire price, array the entire. Why, that the United States and really the entire globe, because everyone’s everything’s based on the United States. Monetarily.

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Rafi Farber: the whole lie that’s been building up since 1,933, when Roosevelt stole the gold that’s been building up for like 80, 90 years, and that’s going to, that’s all going to come up collapse either way. It’s going to collapse, either through hyper inflation where the dollar unit doesn’t have any definition anymore at all.

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Rafi Farber: and or it happens through hyper deflation where the fed just sticks to it. This is not gonna happen. But if the fed really 6 weeks guns, it says, No, we’re never going to print again. Then eventually all of the debt that it owes on its balance sheet will be paid back to itself, and then you’ll have no dollars left.

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Rafi Farber: And then the in this, just theoretically, just to to to understand the process here, and and then all you have left is the gold left and balance sheet which cannot be destroyed, and then you have gold at a a, a dollar in gold at 100% reserve ratio again, and then you’re back to like $35 an ounce

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Andy Millette: alright back to restart. So where? Exactly in your in your mind, where are we at now? The fed’s been very aggressive.

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Andy Millette: talking in and in actuality, taking money out of the system. but with all of the banking which everybody’s been talking about, so we don’t really need to talk about it. But the the banking crisis going on that has not been solved. asset prices coming down real estate prices coming down

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Andy Millette: here in the Us. I can speak for anywhere else in the world where, exactly in your mind.

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Andy Millette: where is the fed at? I mean, are we close to have it?

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Andy Millette: All of that work that out for me. I wish I knew the exact answer this question, because then it would kind of be a lot more calm. But I.

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Rafi Farber: But just to make a more global point. like, every day, the world seems to get crazier and crazier. People are making less and less sense.

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Rafi Farber: And I really like.

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Rafi Farber: it’s clear to me that a society and we are in a global society.

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Rafi Farber: aside, you can

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Rafi Farber: the the sanity of what people are living for, and how they’re behaving.

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Rafi Farber: I think it can be proportionally measured against the dilution of its money, like the more inflated money gets, the more inflated it’s money gets, the more insane people tend to be.

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Rafi Farber: so I think that’s very clear. So for the sake of sanity, and I don’t want any more people getting hurt and children getting hurt and having all these, you know, surgeries. I’m not. Gonna you know what I’m talking about. it’s just it’s just horrifying what the hell is going on.

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Rafi Farber: so yeah, I really hope for that, for the children’s sake. that this is almost over.

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Rafi Farber: because the minute the minute that this is done they will be much safer from all the lunatics that are out there doing whatever the hell they’re doing.

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Rafi Farber: so we are we a more economic economics? Answer to that question. I don’t know. I I

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Rafi Farber: I I build like these these scenarios in my head given what we have now.

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Rafi Farber: and I I try to like fit things together. Look! We saw we saw the banking crisis, the regional banking crisis, and on the on the fence balance sheet. There there is. I’m working on this on the the endgame investor. I’m trying to to triangulate exactly where we are in this curve that goes like this, and then up and up and up. And what’s the angle? That? What’s the equation of it?

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Rafi Farber: You know I’m not equation. But, like, you know, I’m Austrian. I don’t work with equations, and you cannot. Okay.

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Rafi Farber: So I’m just. I’m looking for a heuristic here and And the way I see it

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Rafi Farber: for now is that that housing prices are are falling year over year for the first time since 2,012, but really for the first time seriously, since 2,008, I think 2,012 was just like things stabilizing. And

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Rafi Farber: but really in 2,008, they were really crashing the difference between now and 2,008 monetarily just speaking from the Feds perspective as the issue or of the dollar is that in 2,008

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Rafi Farber: the fed didn’t own any housing bonds. They didn’t own any mortgage back securities right? So the housing market and the dollar were not connected not directly, at least. so housing could fall, and the dollar could strengthen as all those all that dollar debt, those that that mortgage back security that defaulted, but not

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Rafi Farber: it wasn’t on the Feds balance, she said. Private debt defaulting right and the money supply shrinking from a from a private perspective.

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Rafi Farber: Now, when, when now that the fed owns like not all of the mortgage back securities, but they they own like a fair amount of it. It doesn’t matter how much they own, but the the the balance sheet of the fed, I think mortgage back securities make up about 30%.

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Rafi Farber: So if these bonds start really defaulting

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Rafi Farber: that, that the fed owns the bonds of the Federal, that means like 30% of the of the dollars backing just disappears.

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Rafi Farber: and then that that has to be taken up by something else on the balance sheet. Right left is. There’s treasuries, and there’s gold.

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Rafi Farber: So could be that both of them go up But eventually even the treasuries are going to default.

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Rafi Farber: so I think this whole. This starts with with another housing crash. and then the the fed is going to have to print more and more. I think they’re gonna have to reach like 10 to 12 trillion on the next round, and there I think they’re at 8 trillion now.

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Rafi Farber: And it’s at that point. I just can’t even imagine that this. It’s those numbers are so big not to interrupt you. But

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Rafi Farber: I mean they they they’re all the same like what’s in the 8 and 12 trillion. We’re more like, so nothing, anyway, just units of nothingness.

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Andy Millette: You’ve made an interesting question, I guess. Thank you. Thank you for your answer. but you made an interesting that question. But point

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Andy Millette: that’s really a I thought in a recent interview or a presentation that you did

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Andy Millette: specifically about the metals, and this more specifically about silver. that I think that some people can use.

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Andy Millette: And people can use all of this, but specifically shorter term. You are talking about how the open interest in silver as it as it grows.

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Rafi Farber: the price would tell me about the correlation between the price and the of of still running the open interest in the features market. Talk to me about that. It’s not. It’s not just silver. it it just it tends. It tends to be that when

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Rafi Farber: opening, an open interest means the amount of contract that exists, that there’s a long on one side. There’s a short on the other side. They’re always equal, because you have to be just so, you know. But yes, go ahead. So the the higher the open interest.

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Rafi Farber: that that tends to correlate with highs in the golden silver price, and really any commodity? and as and as the price falls you have the shorts buying back. There are a buying back their contracts and closing out, and then you have an open interest falling

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Andy Millette: right?

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Rafi Farber: So I’m really, I’m really following golden this less silver

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Rafi Farber: and we’ll tell you what. So the the low, in all an open interest in gold.

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Rafi Farber: the recent low is like a 420,000 contracts. I think we’re like 433, 434,000, and that that could close it forms in 20,000,

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Rafi Farber: you know, in a day that you could almost that many contracts in a day. So I I’m I’m not. I’m not like super into this stuff in terms of technical. And, like, you know, I’m I’m not going to say like I 420,000 go all in it. It’s fine. I’m not. I’m not like that. I I’m not that religious on technical signals like this, but it is. It is something to to monitor as a sign for a potential very being very close to a bottom. So I think we’re going to get around 420,000 contracts, just because

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Rafi Farber: since 2,020 Open interest has been subsiding and and trending downwards, and I think that trend is going to continue, as the physical markets get more important. And the paper markets get less important.

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Andy Millette: Yeah, yeah, it’s interesting. It’s something that

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Andy Millette: I used to pay attention to years ago when I was really active trading, and I hadn’t in a while, and I saw that you mentioned it. And so I thought that was a

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Andy Millette: a really good point of interest. how about I guess my next question would be in just a practicality structuring a portfolio. Not that this is advice at all, but if

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Andy Millette: like so, for example, if we see a sell off

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Andy Millette: if we see a sell off and inequities in general, or assets in general, what is your view on how gold and silver would be respond, and I say that

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Andy Millette: because I’m assuming they would sell off as well. But my point of reference is 2,008, 2,007. I was really active, and I’m active now, but I was actively managing a lot of money during that time, and everything sold off because there is a huge liquidity crunch. I guess I’m curious what your point of view is now, what that would look like, and I don’t really have

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Andy Millette: an opinion, but I’m interested in yours.

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Rafi Farber: Hold on. I’m pulling up a chart here. Maybe I’ll try to share it to show

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Rafi Farber: It’s something that

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Rafi Farber: that might shock people a little bit.

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Rafi Farber: so give me 1 s. Here. let’s go back to 2,006 on this chart.

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Rafi Farber: Okay.

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Rafi Farber: so here, can you share my screen?

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Andy Millette: let me see if I can.

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Andy Millette: So host disable participants share screen sharing. So if you can enable that. Let me see if I can do that for you.

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Rafi Farber: Okay, I don’t know if I can. If I can’t my apologies

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Rafi Farber: alright. Well, if not, it’s fine. I’ll just look at it and describe it.

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Yeah, if you could just describe it to us. And I apologize. So

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Rafi Farber: okay, we’ll disable that next time around. So we’re not on the fly. Go ahead. Okay. So So if you if you look at it, you know, in 2,008,

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Rafi Farber: right It looked like gold was really, really collapsing right?

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Rafi Farber: But if you measure goals

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Rafi Farber: versus commodities versus any other like a whole, a basket of other commodities. I’m looking at the gold versus Gx. Commodity index. That’s a production weighted, Commodity index. So if you look at that gold hit a low in terms of other commodities, mostly oil. In June 2,008. That was when oil was like $150 barrel, right. So they hit a low here of like 1.0 4, and then that’s in May. That’s in in May 2,008, and then

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Rafi Farber: from May 2,008 to to March 2,009. That March 2,009, was like the the full deflationary that that was it, like the the finished crisis, was, the acute phase of it was over, and and everything had deflated, and gold had had gone from like 1,040, something to like 600 and

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Rafi Farber: 80 something whatever, and it was like a scary drop. So if you look, but if you look at the gold chart versus other commodities. At that time it jumps from like one to

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Rafi Farber: to 3 and a half. Okay, so it it it more than triples

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Rafi Farber: in terms of other commodities. So so like, did gold go off as you go down like, okay? So it went down it. It went down in dollar terms. But it it really skyrocketed, as everything else was deflating so much faster.

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Rafi Farber: so so really like in a deflationary time, when when dollars are coming out of existence, and all assets are deflating the purchasing power of gold versus all versus anything is going to rise, even if the dollar price, if it falls.

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Rafi Farber: Okay, that’s that’s what that’s what’s gonna happen. Same thing happened in 2,020. We had December sixteenth, 2,009. Look at the chart here, and we’re at 3.4 versus this commodity. But commodity basket, and then in and then that’s December 2019, and then April 2020, with all, all the lockdowns are like, you know, everyone’s freaking out, and what? And then we’re at an all all time high and 7.3. So that’s a move of it’s a doubling

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Rafi Farber: and just in just

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Andy Millette: 6 months, and that and that was when gold fell from

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Rafi Farber: and 20 it was that crazy? 2 to 3 week deflationary plunge that was like from

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Rafi Farber: 1,800 to 1,450, or something like a similar to the to the 2,008 scenario. But what’s really going on is that that everything is deflating, and gold is following the least.

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Rafi Farber: Yes, that’s what’s happening. So it yeah, it’s it’s not good buying goal. It’s not about investing. And it’s not. There’s

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Rafi Farber: some people use gold to increase their dollar holdings because they want more dollars. Right? Those are gold traders and stuff. I don’t use gold to increase dollars. I mean, I I like more dollars. I’m not gonna complain if I have more dollars. But what I what I what I’m what I’m playing for is I use dollars to increase my gold supply. That’s what I do.

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Rafi Farber: because I know that in the end this is all coming down. and when it does, I want maximum. I want the maximum purchasing power, because it, that’s what I want for society. I want the people with the goal that are smart enough to understand. This is all an illusion.

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Rafi Farber: I want them to have as much purchasing power as possible, so that they have all the power to reorganize what they can in their perspective societies and bring people back to sanity, and they need money for that.

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Andy Millette: I’m with you 100% on all of that. as as we wrap up here it is. What’s one piece of advice you would give to somebody. I know they can be anything. It can be

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Andy Millette: one more gold if you want, or it could be, you know. go knock on your neighbor’s door and say, Hello, But W. Whatever it is, what’s one piece of advice you would give our listeners out there. in the context of the times that we’re living in.

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Rafi Farber: get local.

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Rafi Farber: Get local find out who’s around. You find out who’s good at growing food, find out who’s got the skills. Find that? Who can fix your whatever you need.

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Rafi Farber: that, think about what you would need in in a in a world where you can’t just buy something from Amazon and have a ship from China. It’s not gonna work anymore. Or if the supermarkets aren’t, they’re empty, because

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Rafi Farber: that they, the the dollar, is dead. So what do you do like? Make friends with farmers, make friends with carpenters.

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Rafi Farber: Make friends with your neighbors

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Rafi Farber: try to find people who also understand. This is all going down and start start a a local economy, a local community of people who trust each other and have similar values. And if you’re in, if you’re in a city in a high rise building, get the hell out of there now.

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Andy Millette: I don’t know which time it was

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Andy Millette: all right. Excellent! Well, if how can somebody reach out to you? I’ve reached out to everybody listening. I reached out to you on Twitter, and you’re very. You’re responsive same day, if not in a few hours. But how would you recommend people reach out to you.

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Rafi Farber: so you can Google, the endgame investor.

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Rafi Farber: that’s a which I have done. Okay, yeah. So I right there, 3 to 4 times a week with the weekend report, and you can find me on Patreon, where I give more Biblical perspective on these issues. because that’s that’s what gives me fees, or it gives me strength to to to keep going. I I know I know guys behind all this

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Rafi Farber: and if if I if I didn’t believe that I don’t think I’d be able to wake up tomorrow.

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Rafi Farber: And you could find me on Twitter. You can message me if you want

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Rafi Farber: and like, find me on Youtube, I I’m sorry I don’t like Youtube. Be there, but that’s that’s where it is.

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Rafi Farber: And I do a video, maybe once or twice a week, sometimes an interview like this. And

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Rafi Farber: yeah. So

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Andy Millette: well, it’s all this listening. again, I found Rafi. I’ve been a a a listener and interested party listening for the last few months.

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Andy Millette: and Rafi was very kind and gracious to respond to me. So If you do reach out to him, I’m sure. I’m sure he’ll respond to you. Alright. Thanks, Rob, you don’t sound like a Chinese bot, and I’ll get your message. That’s right, all right. Thank you so much if you want to hang out after I stop recording this. So there we go.

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Rafi Farber: Okay.