Nominal Confusion with Lynette Zang

Lynette Zang, Chief Market Analyst at ITM Trading, joins Jason Hartman in this episode to talk about monetary policy. Lynette shares her favorite chart from FRED (Federal Reserve Education Department) to help clarify nominal confusion and explains why gold is one of the three central pillars of dynastic wealth. The two also discuss total financial reset, FedNow, and The Vaccine Alliance.

Announcer 0:01
This show is produced by the Hartman media company. For more information and links to all our great podcasts, visit Hartman media.com.

Announcer 0:12
Welcome to the American monetary associations podcast where we explore how monetary policy impacts the real lives of real people, and the action steps necessary to preserve wealth and enhance one’s lifestyle.

Jason Hartman 0:29
It is my pleasure to welcome Lynette Zeng to the show, she is chief market analyst at ITM trading. She has a fantastic YouTube channel, I sort of met her I guess, sort of, you know, proxy fashion or virtually, I guess, sort of on George Gammons channel. And you know, he’s been on the show several times, and I’ve been on his show as well, many times. We are looking forward to diving into some monetary policy topics today. Talk about the economy in general, how you can prepare what you can do, and a whole variety of things there. Lynette, welcome. How are you? Oh, I’m great. Jason, I’m very happy to be here today. And you’re coming to us from my old hometown, Phoenix, Arizona, I lived there for six years. Yes, good stuff. Well, you know, the purchasing power loss. And I always talk about how inflation is a robber and a thief. And it’s just sort of secretly robbing people of their wealth, you can no longer put money in a coffee can pick it up 10 years later, and have it be worth the same amount of money and silver. We and we can we can dive into that do and then talk about metals all day long. But talk to us a little bit about that that purchasing power decline that we’ve had over the years, especially since the Federal Reserve was created, I think the dollar has lost about 96% of its value, somewhere around there. And you’ve got an fascinating chart I’m looking at on your website right now, which is just mind blowing. And it shows certain time periods with some big dips, I’d like to ask you about that a little bit as well. So let’s dive into that topic,

Lynette Zang 2:02
while you’re looking at one of my absolute favorite charts. And that is probably from the Federal Reserve educational department, the Fred, so anybody has access to it. And we’ve actually lost much officially much closer to 98% when they created the fiat money system. Oh, that one? Yes. When they created the fiat money system, they knew that people do not understand inflation. So the benefit for governments is that they get to tax you almost invisibly, and for corporations, they get to pay you less in actual value. And that’s actually what has enabled this big huge divide in income and wealth inequality. So when you’re looking at it, and up at the beginning, on the left hand side of the graph is kind of flat. That’s when there was a gold and silver standard. Because that makes governments have fiscal responsibility, where you start to see that big huge dip. That’s when we first went off the gold. Well, we started the Fiat standard. Now Fiat is the literal translation is government decree. So

Jason Hartman 3:29
see, I say by authority is the definition by authority, because the government says so you have to accept it. And of course, we have legal tender laws that enforce that. And by the way, for some who are listening to this only on audio and not watching on video on the YouTube channel, I just want to explain this chart a little bit if I can Lynette it goes way back to the 1700s. And I love it that it’s a long history. And even if you are looking at it on video, it’s a tad blurry, but I think people can make it out. So you know, you see some minor variations in the value of the currency. And then you see the war of 1812. That was, by the way in 1812. For those who went off the gold standard to fund the war, right. Okay, got it. So then you see the Civil War, and you see a huge decline. And I remember I actually have some of these coins in my coin collection, these protest coins that were right around the Civil War, because people were so angry about the loss of value in the currency that they started getting their own coins, right. And this is an interesting part of, you know, monetary history that people don’t talk much about anymore, because it’s a while back, but then we come up to the creation of the Federal Reserve just over 100 years ago. That was I believe the US is third central bank experiment. Okay. And I still say it’s an experiment. And then, you know, we see this big massive decline, and it is just falling off a cliff. You know, we thought we see 1933 where they had the gold confiscation. they confiscated gold at like $21 an ounce and then instantly revalued it to like $33 or $35 I think something like that. Yeah, 35 and wow, Lynette I mean, this is staggering. People don’t realize this. And one of the things that hides it is technology. because technology is a deflationary force. I’m sure we agree on that. And so it kind of does mask and hide some of the impacts of this bad fiscal and monetary policy that we’ve had to endure. Can you unpack that for us a

Lynette Zang 5:44
little bit? Sure. Because a lot of it is it’s called nominal confusion. And this is they knew two key things. They knew a lot of things when they put this system in place. But they knew that people do not understand inflation, and they marry the legal money of the state, because inflation causes nominal confusion. So if you had a $20, Bill 20 years ago, and you have a $20 bill today, nominally, they are identical. So you think you have a $20 bill. But in terms of purchasing power, what you could buy with that 20 years ago, 10 years ago, 50 years ago, a year ago, and what you can buy with it is very, very different. I like to tell the story is my father was a developer, and this would have been in the early 70s. I don’t know why this stuck with me. But he had this young couple at his house. And he worked for the guy worked for IBM. And I remember my mother banging her fist on the table and saying, he’s a comer. He’s a comer. He makes $12,000 a year. Yeah, well, back then the average wage was about 9500. And a family of four needed one wage earner. And I’m not saying they were rolling in it, but they were quite comfortable. So if somebody was making $12,000 a year, they were doing very, very well. And my father built very nice homes. Well, today, well, wow, look at what they just did with the stim the 12 $100 stimulus checks. If you make $75,000, a year or less, you got 12,000, you got a 12 $100, stimulus check, or 150. So that alone, you know, I think the average wage now is something like 55, or 58,000. So when you stop and think about it, you know, normal person will go well, yeah, I’d much rather have 50 1000 or 75,000, than I would 9500. But the difference is in that graph that you showed, it’s your ability to purchase. And I would also like to really point out that it’s because of what you just saw on the graph. And the tool, which were, which are interest rates, that’s the tool that the central banks have to regulate the rate and speed of inflation. So when they’re anchored at zero, where do you go. So that’s why I’m sitting here and really, we’re already we’ve already entered it. And it should be pretty clear to everybody life as we knew it is not the same and it will never be the same. We are 100% inside of a complete reset social, economic and financial. Okay, so

Jason Hartman 8:45
what does a reset mean, from the financial perspective? You know, people have talked that about a debt Jubilee. And, you know, I don’t think this is going to happen. I don’t know why anybody would go for that. You know, I can’t I can see why people, I can see why people that have a lot of debt would like it, but I can’t see why lenders whatever agree to that kind of deal or, yeah, I don’t know. You know, it just seems like a weird idea to me. I’ve never understood that too much. But I’ve done some shows on it was what does this reset mean? What does it look like? And then of course, let’s talk about what we can do.

Lynette Zang 9:22
Well, you know, what a reset does or Alright, if you have no tools left, the Fed is out of tools. All they can do is create more money, and they can go to negative interest rates and that’s what it’s looking like. So just recently, they read they did do a an kind of an invisible reset, where they changed how they were targeting inflation. And the Federal Reserve said we’re going to allow inflation to rate to run hotter in other words higher even though they haven’t officially been able to hit that 2% target though, your pocketbook would probably tell you different if you paid attention to food and education and insurance and all of the things that we need on a day to day basis. So what they need to do is they need to take us into a new system, because the old system is used up. And that’s the reset the way that they’ve done it, they’ve already started to come out with it. Have you talked with any of your guests about the Fed? Now, what do you mean, okay,

Jason Hartman 10:29
the Federal Reserve Program or something

Lynette Zang 10:31
is a program that the Fed just announced a few weeks ago, and they also announced the the dollar, the digital dollar. Okay, well, this leads, this all leads into that, because the the Fed now is about you as an individual having an account directly tied to the Federal Reserve. So when they issue UBI, universal basic income, which I think is going to be here, like within months, then they will make a direct deposit, they’ll just push a button, and there’ll be all of this money that’s set up in your account. And they’re going to do that every week or every month, I don’t know how what the frequency is going to be. But this is a consumer driven economy, they have to get the consumer to consume in the current system, when the Fed makes a policy, it takes about 18 months to work through the system, they use the banks to distribute that policy. And it takes about 18 months for them to know if the policy is working or not. But with these fed accounts, that is boom, an instant thing. So they push a button, and now you have money in there. If you’re not spending that money quickly enough, that money will start to evaporate, which will most likely inspire you to go out and

Jason Hartman 12:01
spend it. And really, it’s already evaporating through basic inflation. But there’s a more specific thing and what this is like, think of it this way, folks, this is like a gift card that loses its value over time, or it completely expires. But right. Interestingly, you know, that sounds terrible from an individual perspective. But for the collective. It’s kind of good in a way because they could force the velocity of money. Right? That. Yeah, yeah. And so that forces inflation because when there’s more velocity, that’s an inflationary pressure, meaning that money moves faster through the system, the more it’s traded, it creates inflationary pressure in the system. And that’s why even when you have a lot of money printing, or money creation is really the more proper way to say it, or credit creation to you can have like minimal or non existent inflation, because if people aren’t spending or there’s very little velocity, you know, it just doesn’t cause that inflationary pressure very much as it as it should. But, you know, it reminds me of george bush’s idiotic remark post 911, where he said, Go shopping, go out and spend money, you know, and yes, that is true, you know, that does stimulate the economy, I get it. But the basis of wealth in any society or any individual is capital formation, you’ve got to save in order to invest. And in printing, you know, if you’re a business, increase your production capacity, or if you’re an individual, increase your investment capacity or a family. So we’re a nation saying, I think individual nation, family, whatever, business, all of those categories, so And the thing that scares me the most Lynette is the idea of that could be married someday, to some sort of social scoring system like they have in China, where they can like, take your money evaporate from your phone, if they if they think you’re a bad kid, you know, maybe you’re posting things critical of the government or the fed on social media, your money could just evaporate, you know, they need to, of course, do it under the guise of our safety. And, and you know, first they would apply it to true criminals. But then the definition of what is a crime would keep changing to make that out. Right. Tell us we are

Lynette Zang 14:25
definitely in a surveillance economy. And I did a piece on this maybe a year ago and took a look at and somebody just asked me this question the other day? Well, if we have these direct accounts, with the Federal Reserve, the individual does, then what’s the role of the bank? Well, here’s the thing. The banks are sitting in the middle. So the Fed has or any central bank anywhere you are in the world. They can just push a button and create that money as you indicated, but they don’t have the relationship with the clients. Right, that’s what the bank has. Now the technology has that’s big data, they have the data on your habits. And what we’re seeing is a merger of the three. And when that happens, you’re absolutely right. We’re already living in the surveillance economy go through any straw, I was driving in Paradise Valley yesterday. And I noticed cameras in the cactus. Right? I know, I know, we’re like, I actually did a U turn. Because I couldn’t believe what I saw. You know, there, it was very obvious, once you really know that that’s what you were looking for.

Jason Hartman 15:43
You know, it’s so scary. This is why I call it COVID-19 84. Because COVID has given the government governments around the world. And it’s all starting with China, of course, it’s a great excuse that’s giving them great cover to do contact tracing, you know, first it’s going to be phones and cameras, then it’s going to be Apple watches. And then it’s going to be it’s going to be chips implanted in our body. And that’s going to say that the chip will be in your wrist, and you’re going to just put it near the card reader chip reader. And that’s how you’re going to pay for things. And yes,

Lynette Zang 16:18
well, you know, I did, I did a research piece a little while ago, a few months ago, where I went to the lab where, where the COVID was, some said it was released from. And actually, if you read papers that are in there, you can actually see that they’ve known about this for a long time that they admit to engineering, and working on creating this super bug. They have beautiful flow charts, that shows how it transmits from animals, the bats to humans. And they also knew that it was a matter of time. And what was interesting to me, I mean, all of that was interesting to me. But it was also interesting that at the same time that they were working on creating the superbug, they were not working on creating a cure for this super bug. So that’s number one. Number two, I just found this the other day, I think this is a this is a new development, where they are putting I can’t remember the name of the company. It’s not in front of me, but I can send you the link to it putting a chip in a vaccine. And the government of Bangladesh is where they are rolling this piece out. Now they’re also this company is that does that chip into the vaccine, which of course, is Oh, GAVI. That’s right. Actually, this is bigger than bigger than just a company that is doing this. Because this is through, don’t hold me to this. I don’t have it in front of me. But something like the World Economic Forum, which their new their new symposium coming up is called the Great reset. But they’re working with GAVI, who was founded by, let’s say, Oh, it was id 2020. I’m sorry, I’m just, I’m going through so much data. Sometimes it takes me a minute if I’m thinking about it, but the name of the of the entity is id 2020. It was created in 2016. The Rockefeller Foundation was funded them initially as well as Bill and Melinda Gates. GAVI is a vaccine alliance that was created by the Bill and Melinda Gates Foundation, and they are working with the city or the country of Bangladesh, the government of Bangladesh to insert these chips through a vaccine vaccine. Yeah,

Jason Hartman 19:03
I know. I know about that. Yeah, it’s a it’s it’s pretty scary stuff, for sure. And I wouldn’t, and Melinda Gates, as far as I could throw them. I mean, think about it, Bill Gates, his his career started as he started as a ripoff artist. He basically ripped off. You know, what made him so rich in the beginning, but no one talks about that anymore. You know, and He’s the perfect sort of fatherly figure, you know, wearing a sweater, you know, he’s the perfect guy to pull this off, right. But hey, I want to get back to the thing on the banks for a minute. And let me show you this chart on my screen here for a second, because I thought this was interesting. It’s not kind of hopeful. You said with a Fed coin. Can you see this chart about square? So this is kind of hopeful. It shows that square the payment processing platform, and we’ve all started seeing these alternatives, you know, PayPal Venmo square Straight, right? And they’re all a little different. I don’t mean those are at all exactly the same thing. Of course they are, they are different. But the concept being the cashless movement, oh, yeah, and this doesn’t require a cryptocurrency. And it’s, you know, it’s a group of private companies. But what’s interesting about this is that squares valuation is rivaling some big giant banks. Now, look at this, for example, at its current valuation, it puts the company closer to the ranks of large us banks, Goldman Sachs, that’s on purpose. Okay. Goldman Sachs with a current valuation of 74 billion is just $20 billion ahead of square. I mean, look at Goldman Sachs has been around for a long, long time, right? larger companies like JP Morgan, Chase and Bank of America are still far ahead, but couldn’t be within distance, if square continues to capitalize on the new digital payment environment. And the same concept applies to other companies squares, just the example here. But we also like to point out, we really need a digital currency, you know,

Lynette Zang 21:09
well, we don’t need a digital currency, the central bankers needed digital currency, and they need to get rid of cash, because what gold did to them is put restrictions around how quickly they could rob us through inflation. Now, the dollar is actually a debt instrument that pays no interest. So they have to get rid, they have to get rid of this piece of paper. Because as long as this piece of paper is out there, they can’t go, well, what’s the dollar, it’s 1.00. Right? In a digital currency, there are no limitations on how far past that that point that they can go, and so keep, but now they would be attacking your principal, not just your purchasing power. However, having said all of that square, and any of those other FinTech companies like that, they may look neat and clean. But if you were to look underneath, I think what you see is Goldman Sachs or Goldman Sachs, or JP Morgan, or all those guys have a big chunk of that. So they’re not really as removed as it would be nice if they were, but the central banks, there’s nothing left, there’s no valuation left, the only thing that is left is our confidence, remember goes back to when they started this whole Scam. what they knew is that people marry the legal money in the state. Hence, we’ve got the US dollar here, and we’ve got a digital dollar. Right? If they changed the name, people would know. And I think I might be older than you. I remember all of the chaos and the craziness that was happening back in the 60s in the 70s. With the Vietnam War, women’s lib, civil rights, the oil embargo. I mean, there was a high inflation, the stock market. I remember all of that. But what I didn’t know then, as a teenager, I knew that there was a lot of change in the air, I could feel it. I even remember saying to myself, don’t ask me why a 17 year old girl would think about this. But I remember saying to myself, Social Security isn’t going to be there for me by the time I get there. And frankly, you know, here we are. I had a $20 bill in my wallet in June of 1971. I had maybe it was even a brand new $20 bill in my wallet in September of 1971. They looked almost identical. So I didn’t know anything had changed. And you listen to that Nixon speech. And he says, oh, and he said temporary?

Jason Hartman 24:04
Yes. Temporary. Yeah.

Lynette Zang 24:07
Yeah. Well, not only is it temporary, but you don’t have to worry about inflation. Because if you buy American goods, your dollars gonna buy exactly the same amount. And as you pointed out in that first graph, lies, lies lies. Yeah, but but I want to just go back and talk a little bit more about this COVID thing, because there are so many coincidences that I don’t think it’s a coincidence.

Jason Hartman 24:37
coincidence, things are amazing. It’s the handiest thing for government ever. I mean, this is you if you’re a government control freak. This is your dream come true. What’s going on? I know

Lynette Zang 24:50
it if you just start to read all of the IMF, the BI s and the federal government, the state just start reading those documents. You don’t have to think about conspiracy theory. It’s actually all out there in open language. It’s just that nobody goes and reads there. But remember, have you talked much about the library or the the created benchmark? They created it in the 80s? And then I don’t know not a lot we talked about

Jason Hartman 25:21
that we covered. We covered the library scandal back then. But we haven’t talked too much about live or tell us more.

Lynette Zang 25:29
Let me tell you, Well, okay, in 2012, it came to light that this was a stated rate. So banks would get together and say, Oh, this is what I think the interest rate should be. This is this is so shocker that it’s manipulated. It’s not even a market rate. But once the public knew about it, they had to get rid of it, you covered it back then, well, the date that it goes away is December 31 2021. So since that period of time, you have about five or six central banks that have attempted to create a new benchmark, and they’ve created it in this country, the s o f r. But then they attempted to create a market for this new benchmark. And guess what they couldn’t get, they couldn’t get cooperation, they could not create that market. Now, in this recent turmoil, especially when they came out with the main street lending program, or all these other lending programs, frankly, they had the opportunity to really develop that market, look at the trillions that they’ve created. So they could have in my opinion, but apparently I’m wrong. They could have created that market and forced it. Instead, they went back to the library, knowing full well, that it’s going away in how many months do we have left? 15 months, 16 months? So that was that that is failing? And the problem is, is you have about nominal again, there’s that term nominal, whenever you hear that term nominal, you have to know that the truth is being hidden in any

Jason Hartman 27:17
way. Nominal means in name, the number that’s the definition of nominal,

Lynette Zang 27:22
yeah, right. So we have about 6 trillion in nominal contracts that are tied to live or that must be reset restructured is the way they the term they is and tied to this new benchmark, which nobody’s been able to really create that market for. And it was a big experiment anyway. So you know, the timing of all of this, the fact that they were instrumental and helping create the superbug and then it magically came out and the way that it impacts people. There’s,

Jason Hartman 28:01
there’s a lot of good questions for sure. And, you know, we may never know, or at least not know, for a long time, but Lynette, let’s kind of switch gears and talk about what we can do about things. What should we be doing to protect ourselves? I have a feeling you’re going to lean toward metals as a store of value. But what do you think?

Lynette Zang 28:25
Well, okay, so what is gold, gold is good money, and it’s been good money for 6000 years. And there’s such a thing that’s called it’s called the dynastic wealth stool. And that represents wealth that has been in families, at least 300 years, you can think about the Queen of England, at least 300 years, and it has three legs, real estate, rare collectibles, and gold money. So if you’ve got this that’s going away, then you need real money that holds its purchasing power. And I don’t know if you have a gold chart to put up there. But you know, even though it has been admittedly, the price has been admittedly manipulated and suppressed by the central banks and their minions. In other words, you know, JP Morgan, and all that commercial banks. It’s cheap and easy to do no big deal. Well, even so, what happens in a reset in a financial reset, is they when all confidence is lost, so the worst is yet to come. And when people lose all confidence in this currency and in the financial system, and in what, in the short term, they think of traditional institutions. Well, they reset that piece of paper that I just tore up and throw away against Real Money, gold, and then gold expresses to it somewhere near its true value. For its most important function, which is to hold its value your purchasing power value, even use,

Jason Hartman 30:09
is that the same thing as investing, or is that just insurance in storing of wealth versus investing? See, I think a lot of people get confused about the purpose of gold or silver or platinum or palladium, you know, they think, Oh, this is gonna give me like return on investment. It’s kind of like saying, okay, I, you know, I don’t have a bunch of debt. I’ve got my financial life together. But I’m still listening to Dave Ramsey, which is not going to teach me anything about investing. He’s just gonna teach me stuff about getting out of debt. But they they don’t graduate from the Dave Ramsey School, which I think Dave Ramsey’s fine for the group he serves. The problem is people keep listening after their past they’ve graduated, you know, from ramseys. So, so that’s the thing, you know, I mean, when something doesn’t produce income, it doesn’t give you tax benefits. You know, I think it’s fine as insurance. But is it investing? I don’t think it is.

Lynette Zang 31:08
It’s not, it’s not really investing per se, but it is. So it is, you’re right, it’s wealth insurance is its most important function. And right, wow, storage, exactly right. It holds its value intact. Over time, anything can happen short term, easy to manipulate. But here’s the other piece. Personally, I prefer to have the lion’s share of my wealth in an undervalued asset that is in a long term positive trend, and the least amount of my wealth is in it in an overvalued instrument that is in a long term negative trend.

Jason Hartman 31:52
What is that overvalued instrument? Is that the dollar or

Lynette Zang 31:56
exactly the dollar? And it’s also the stock market. But that’s a different story. And do you know how absolutely 100% it’s overvalued. The central bank seems telling you we need more inflation. And what that really means is, the currency is overvalued, and we’re doing our best to take it down. And you showed that chart at the beginning of the show. There you go.

Jason Hartman 32:20
Sure. But the central banks would say enough, we they do say we need more inflation, we know that that’s their stated goal is 2%. But is there an argument that the 2% target inflation rate looking at the Phillips Curve and looking at GDP growth, which by the way is not adjusted for inflation enough, at least often enough? And population growth? I mean, is there is it fair to say that inflation Lynette can grow at the rate of GDP, and or population? Or is it just Are you a purist is saying there should be no inflation no matter what.

Lynette Zang 33:03
Okay, I would say that I’m probably what I would say is, is that inflation is not a monetary phenomenon. It is

Jason Hartman 33:13
not a no. Yeah, no, no,

Lynette Zang 33:17
it is a fiat money phenomenon built into the system to get you to accept working for less. And it is an invisible way for the government to tax you more. Because think about this, with inflation, things go up, right? Because it takes more money to buy the same goods and services. So we’re just using real estate as an example, you have a house the house has, if it’s a place where you’re living, the house has a function, right? Well, I can remember, when my father sold that house, they were making $12,000 a year in the 70s. I don’t really remember, but maybe that the house that he sold them was, I don’t know $20,000, something like that. Sure. In today’s market, that same house as a really nice house is probably closer to 500,000. So you sell that house, it’s really not the house going up in value, it’s really the currency going down in value. But unless you reinvest those dollars, you’re gonna pay taxes on that inflation.

Jason Hartman 34:28
And when that you know, I love what you just said, because that’s why I love income property. Because when you finance it with debt, you basically get paid to borrow that money. You can get a three decade fixed rate mortgage Of course, it’s subsidized by the government through Fannie and Freddie So hey, I want I want my subsidy to you know, investors deserve their own form of welfare and they better go take it you know, because, you know, your your borrowing had below the cost of real inflation and in taxes, and that’s not to mention the fact that you’re, you’re outsourcing that debt to the renter, the renter pays the debt, you don’t pay it yourself, it’s a wonderful thing.

Lynette Zang 35:10
Now, let’s kind of Let’s stay on this key piece, because real estate inside of a reset faces to issues that goals can help you with, and you need gold, or you’re going to be in trouble. Number one are those real estate taxes. And during the Depression, if you had the property paid off, if you could not pay those taxes, you lost that home. So if you have birdorable Gold over time, then that gold in terms of dollars goes up. And so that ensures that you can always pay those taxes. And I have a strategy that I created for myself. So we’re looking at all of that. And so there’s a certain level of gold that you need based upon the current property taxes, that can help ensure that no matter what happens, you can meet those property taxes and hold on to that property.

Jason Hartman 36:07
I’m so glad you mentioned that because number one in these areas that are these left leaning poorly run areas that are so in debt, you know, New York, California, etc. There’s more, but those are the two poster children for big government disaster, property taxes are going to go up in those places, oh, taxes will go up in those places, because their tax base is fleeing. I mean, it is fleeing stripe, the credit card processing company, which by the way, I’m a customer of you know, we use them to process our cards is, you know, they’re they’re offering people $20,000 one time bonuses. Now, if they will move out of their offices in New York City and San Francisco to a cheaper place, because they know that they can, they can keep them for less money. And they don’t have to house them in those overpriced offices in those cities. So the cities are just an absolute disaster. And they’re going to lose their tax base. And so their taxes are going to go up now. And this is why I say to investors do not pay off your properties. There’s no such thing as a free and clear property. Almost everywhere on planet Earth, there are scarcely very few exceptions. You have a perpetual lien on your property called property taxes. And worse yet, you might have a homeowner’s association too. So don’t pay them off, keep them encumbered. They’re never free and clear. good, so good.

Lynette Zang 37:30
So in that case, to their Oh, God, you brought up so many things.

Jason Hartman 37:37
We could talk

Lynette Zang 37:38
the opportunity. So and we’re talking about how gold is. And remember, there’s that three legged stool, right? So the other risks that you run inside of a reset, is having the ability to pay off the mortgage. And a lot of people experience this in 2008. You know, I know people that went ahead and took those plans because they were losing their houses. But if you read those documents, boy Oh, boy, did they get screwed? Oh,

Jason Hartman 38:06
I hope I get what documents? Are you talking about a loan modification that loan? Yes, those loan modifications? Well, I’ve modified several of my properties. And it was fantastic. They just like giving me free money. I loved it. Well,

Lynette Zang 38:18
the person that I read her documents for, which happened to be one of my sisters have a lot of them. She basically is paying like interest only. And not even all of the interest or something like that. And after 30 years, she still owns those this huge block of money,

Jason Hartman 38:39
money that they differ probably

Lynette Zang 38:41
smarter than she was, you probably weren’t as desperate as she was. So I’m gonna tell you because if I read those documents, there’s no way I would have done made the choice that she made. Frequently, when these things get modified, they are not in the naive person that doesn’t understand what they’re doing. Not in your best case.

Jason Hartman 39:04
Tell us about the reset.

Lynette Zang 39:05
Okay, so in a reset, you want to have the ability, even though you’re going to always have those property taxes, if you need to, you want to pay it off, rather than reset it inside of a hyperinflationary reset. So because gold is severely undervalued me in my latest calculation, and the more debt they grow, the higher this number goes. The true value, the fundamental value of one ounce of gold is north of 12,500 bucks.

Jason Hartman 39:38
Wow. You know, I’m constantly giving Peter Schiff a hard time he was on my show before and I remember seeing him shortly after that interview on my show, when he was on years ago on CNBC saying that gold would be $5,000 announced by the end of Obama’s first term if Obama was elected, that was before Obama was elected. And, you know, the complete opposite happened. I mean, you know, how can you predict this stuff? You know, and when you look at the the manipulation, like, you know, you look at gadda, the gold antitrust activity and, you know, they claim that Gold’s all manipulated, I believe that the central banks have an incentive to push the price of gold down and stay down. Well, right or until they can’t one or the other. Right?

Lynette Zang 40:23
Well, okay, but understand, yeah, I think to understand this, and I’ll tell you where I come up with that number to where I want to do a reset of the currency, the way that has been done every single time, over 4800 times, is they take that fiat money that has no intrinsic value, and is used in one place, and they revalue it against that gold money. That’s when they need the gold money to go up in terms of Fiat to re set it. So a simple formula. Since money is created by debt, or credit and or credit, you take all of the debt that’s out there as a proxy for all of the money that has been created. And that can be an unlimited amount. And that’s why I said, the more debt they grow, the higher that number goes. But with gold, physical, whether it’s in the ground above the ground, regardless of the form, because it’s indestructible, you just divide all the debt by all the gold, and it’ll get you somewhere near its true value for its most important function, where Peter Schiff was wrong. And I’m not really a fan of his, but where Peter Schiff was wrong, was in timing, because we weren’t ready for the reset yet. But we’ve been basically the whole world has been anchored at zero since 2008. It was 2008 when the system actually died, and was then put on life support. And all they really did was mask all the problems and allow them to get bigger and allow the financial system to get more fragile. But ultimately, the system has to reset because there’s no place to go. How far below zero, do you think we can go? They made my terms,

Jason Hartman 42:26
when you say that your weight? When you say that you’re you’re referring to negative interest rates, right? Yes, I am. Yeah. Yeah. You know, you know, what’s interesting, just conceptually about the negative interest rate. I mean, it’s such a weird idea. You know, it’s just a weird concept. I think, you know, the whole concept of the time value of money makes a lot of sense. Because I would rather have the utility of that money today, to be able to use it. When I was a kid, you know, I learned about inflation through Popeye. Okay, the cartoon and wimpy the characters always said, I’ll gladly pay you Tuesday for a hamburger today. And I thought, that’s a pretty good idea. I’d rather have the benefit of the hamburger today and pay on Tuesday. What’s so weird about that the time value of money, though, is flipping that equation on its head. When you have negative interest rates. It’s almost like if you have gold, right? You have to if you don’t want to keep it in your house, which is very dangerous, because you know, you could have a home invasion robbery, like my grandfather, who was a gold bug and a coin collector, did you basically pay for a storage unit or a safe deposit box? Right? And you store it there and you pay to store your, your precious metals? Well, you know, in a way, why wouldn’t you pay to store your money in a bank? Right? You know, that’s basically what negative interest rates are. Yes, it’s weird, except

Lynette Zang 43:49
that you’re paying to store a diminishing instrument, versus paying to store an undervalued asset that’s in a long term positive trend.

Jason Hartman 44:03
Fair enough. But people do that all the time. That’s what every storage unit in America is full of is depreciating assets, right? You know, they’re old. They’re old junk foods and obese origins. That’s, that’s probably kind of a silly

Lynette Zang 44:15
thing they might want to like, rethink that. However, if I have an asset that I 100% know, and I do, I’ve been in this industry on some level since 1964. And my uncle was a major antique dealer. And I’ll tell you the story because this really had a much bigger impact on me than I ever realized. But he was my very favorite uncle. And he really taught me how tangible assets move from undervaluation to fair valuation to overvaluation to fair valuation to undervaluation constantly in a figure eight, okay. And he had, I was there and remember, this was 1964. I was 10 years old. We were my parents and I ran his house. And he said, Come here, I want to show you something. So we went into this back bedroom. And he had two huge floor safes. And he opened up the doors of those safes. And he said to my parents, I was, I don’t think it was paying a whole lot of attention. I was 10. But he said, if anything should happen to me, and birdie will be well taken care of for the rest of her life, because of what’s in these safes. So I turned around to look, now, I didn’t really understand too much of what I was looking at. Now, having been in the industry, if I had to guess, I would say that there were probably the equivalent of 1500 ounces of you know, three monster boxes, or 1500 ounces of gold in each safe. So 3000 ounces. But in 1964, it was illegal to hold more than five ounces of gold in any other way. But the way my uncle was holding them, and that was pre 33 coins, they were raw, they weren’t slabbed yet, because there wasn’t really a huge market, it was just those that were in the know. And at that point, he was probably picking him up for 35 bucks an ounce when he would go into higher end estates. So think about that for a minute. And I kind of want to, I kind of want to double back to the mortgage, and then the opportunity if I can

Jason Hartman 46:31
write cars, and that’s what I want you to close with is any other action items,

Lynette Zang 46:36
okay? Because big and this is an action item, right? So if you’re holding a mortgage, then if you were in a position where you were forced to pay that off, or reset on terms that you did not like, right, you have gold that is undervalued here, and frankly, real estate that at this point is overvalued, it was targeted for reflation, well, that flip flops, right? Now you can take this gold, what might let’s, let’s make life easy. And let’s just say you have a $200,000 mortgage and spot is that 2000 bucks an ounce. So you could either take that tooth out that 200,000 and pay off your mortgage, or you could take that and buy all of that gold, but when it flips around, now, what might have taken you, you know, 100 ounces to do, boom, you take it, and you pay it off with one ounce or two ounce, because historically 25 ounces of gold, or the equivalent would buy an entire city block buildings at all, which takes me to New York, because you know, that at some point, those real estate, well, it’s already started, but the real estate prices are going to drop. And in Japan, commercial real estate in the early 90s, dropped 95%. So now when you see this pattern, it’s called the cup formation. And it’s an indication that smart money is quietly accumulating. Now you start to take some of those gains here. And you convert it into what will be at some point, undervalued real estate at a bargain price,

Jason Hartman 48:22
right. But that whole that whole discussion is predicated on market timing, and market timers tend to not that tends to not work over the long term. But let’s just say it does. Fair enough. The one thing I’d like you to keep an eye on that. Well, I know fair enough. Hang on. But before you differ with me, let me just tell you one thing, you’re fine, you’re happy to differ with me, it’s more than fine. But what I’m saying is, people are valuing real estate prices based on the price of the property rather than and nobody buys on the price. That’s why it’s allowed to go up so much they buy on the payment, and the payment Real Estate’s actually gotten cheaper since the peak in 2006. It’s cheaper today. And you know, it depends what real estate where you know, it’s complicated, of course, right? Take if you take the same, you know, the same mortgage in 2006. For the same payment, you get $100,000 mortgage today you get $170,000 mortgage, and that property has not gone up that much. It’s actually cheaper today, interestingly, go ahead.

Lynette Zang 49:28
Well, I probably depends on where you are. And that is a really valid point because that is exactly why they push the interest rates down the same reason why the stock market is going up. Okay, so these are all manipulations, what I’m talking about what I’m taught and hey, in Denmark, they have negative interest rates on 10 year loans right here

Jason Hartman 49:53
are the happiest country.

Lynette Zang 49:56
Buy this real estate won’t pay you to buy this real estate. So Because that work and that push, of course, all these manipulations can push the nominal price up. However, when we’re talking about a reset, and this is not market timing, this is history that I’m talking about not talking about market timing, I’m not going to tell you this is going to happen. By the end of Trump’s reign, I’m telling you that when confidence in the currency in the institutions are lost, and we’ve watched that confidence, deteriorate over time, and it’s pretty low right now, that’s why we have the rise of populism. That’s why we have all of these riots going on. When that confidence in this con game is lost, they will have to reset the system. And that’s what that’s what everything they’ve been working for, is happening. I can’t tell you, it’s going to be tomorrow at 835. I wouldn’t even try and tell you, it’s tomorrow at 835. But what I do know is that that live board reset, or the library going away, rather, they put a deadline on it. And that is December 31 of 2021.

Jason Hartman 51:15
What does that mean to people when the lightboard goes away? I mean, I know a lot of these mortgages and so forth. But what

Lynette Zang 51:22
right? I mean? That’s a great question. You know, it means a lot of things. But the biggest thing that it means is that the all of the valuations on all of these loans, and all of these mortgages and all of that stuff that’s tied to our live or when when the live war goes away, that means that those rates are either fixed at that level, and therefore there is a change, here’s where the biggest is, there is a change in valuation, even if they force it onto a new benchmark. It is a change in valuation in the whole system. So for you or me, we’re not going to see it coming. But for all of the banks and the financial institutions that are holding all of those contracts, including all of those derivative contracts, I mean, it’s very complicated. But you’re looking at many, many hundreds of trillions in nominal value. And the last time that I saw it before they change the accounting laws, I counted out 1.4 quadrillion in in these nominal derivative contracts. And that was a while ago. So it’s worse now. All of that valuation changes in the entire financial system, and the system implodes. So there is a forced reset with a deadline that I did not give it because, hey, I don’t have that kind of control. I would never tell you a date, unless, unless the powers that be set a date, because they’re the ones that can change it. They’re the ones that can do it. So what it means to you and me is that the entire financial system will go into a forced reset. That’s why the convenience of Coronavirus were there justifying and pointing fingers and trying to deflect so that the guys that got us into this set, this problem can remain in power afterwards. That’s what this whole thing is about. And that’s why you need physical gold, physical silver outside of the system. Because it’s not subject to those same things. And and it isn’t me saying I can’t tell you that spot is going to go or gold is going to go to 12,500. I can tell you that at the time that I did that that was his current fundamental value. But if you look at what happened in Venezuela, overnight, because it’s that piece, you know, we’re in a constant reset, we’ve already started. But the big one that people are going well, what is that going to happen? When is it going to happen? That piece happens overnight. So it’s kind of slow, until fast. And

Jason Hartman 54:08
it’s kind of Yeah,

Lynette Zang 54:10
so there’s some nuances in there, Jason, that I’m referring to. But that’s how a reset is done. It’s not because I say gold is going up, right? It’s because that’s how they do it. And there’s only been one way to do it. They’ve tried other ways it doesn’t work. So over 4800 times, I can’t guarantee tomorrow. But I kind of think if something has happened the same way every time. It’s most likely and we’re doing the same thing. We are most likely to get the same outcome. So it is wealth protection. Absolutely. But it’s also opportunity positioning, because there’s going to be a lot of stuff that when this whole debt bubble explodes, it’s going to come back on the market and if you are holding your wealth firm, you’re going to Be able to take advantage of that. That’s what I’m talking about. And the rest of the action, food, water, energy security,

Jason Hartman 55:07
bright community and Shen and birdorable and community. You know, you a lot of your stuff reminds me a little bit of Catherine Austin Fitz. I had her on the show years ago, and she talks about some of the same things with permaculture and so forth. Really, really interesting. Lynette we could talk for an awfully long time, but we got to wrap it up. give out your website.

Lynette Zang 55:29
Yeah, it’s ITM trading COMM And also if you go on YouTube, and that’s where you see my work, I produce at least 346 pieces a week. And that’s and that’s on YouTube ITM trading comm to or you can Google my name, Lynette Zang, and I’m pretty sure I’ll come up good stuff.

Jason Hartman 55:47
Lynette saying thank you so much for joining us and happy investing.

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