Monetary Reset: Frank Giustra Warns Of U.S. Dollar ‘Crisis’

Summary

In a thought-provoking interview, Canadian businessman and philanthropist Frank Giustra discusses the impending crisis facing the US dollar due to predicted massive federal debt increases and geopolitical tensions. Giustra, a prominent figure in mining and philanthropy, predicts a gradual decline in the US dollar's status as the global reserve currency, driven by efforts from BRICS countries and a push towards alternative trading mechanisms and currencies. He also touches on the potential for a monetary system reset, the role of gold in central banking, and the future of digital currencies. Additionally, Giustra shares insights into his mining ventures and perspectives on media and information trustworthiness.

Takeaways

• 💰 The Congressional Budget Office predicts a $20 trillion increase in federal debt over the next 10 years, raising concerns about the sustainability of the U.S. dollar.
• 🌍 Rising geopolitical tensions and conflicts are highlighted as potential threats to global safety and economic stability.
• 📉 The potential loss of the U.S. dollar's status as the global reserve currency is discussed, with implications for the U.S. economy and global power dynamics.
• 🏦 Central banks globally are diversifying away from U.S. dollar reserves, increasingly investing in gold and exploring alternative trade mechanisms.
• 🔗 BRICS countries (Brazil, Russia, India, China, South Africa) are leading efforts to establish a new global monetary system, moving away from U.S. dollar reliance.
• 🌐 The introduction of blockchain and Central Bank Digital Currencies (CBDCs) as tools for international trade and payment systems is explored.
• 🛢️ The discussion includes the possibility of oil trade moving away from U.S. dollar denominations, which could undermine the petrodollar system.
• 🥇 The steady accumulation of gold by central banks and its potential role in a future monetary reset are emphasized.
• 📈 Gold and Bitcoin markets are analyzed in the context of recent economic trends and their implications for investors.
• 🌟 Frank Giustra's business philosophy and successful mining ventures are discussed, highlighting a strategic approach to building mining companies.

Q & A

What does Frank Giustra believe is the future of the US dollar as the global reserve currency?

Frank Giustra believes that the US dollar is gradually losing its status as the global reserve currency, a change that may happen either gradually over time or through a sudden event. He points to actions by the BRICS countries, led by China, to reset the global monetary system and move away from the US dollar.

Why is there a push for a monetary system reset according to Frank Giustra?

According to Frank Giustra, the push for a monetary system reset stems from the desire for a fairer system, especially from the perspective of the global South. Issues with the current system include importing American inflation, high costs due to an overvalued dollar, and fears of US sanctions affecting countries' dollar reserves.

What is the BRICS' role in moving away from the US dollar?

The BRICS, led by China and Russia, are actively seeking alternatives to the US dollar by creating independent payment systems, such as a blockchain-based system, and discussing Central Bank Digital Currencies (CBDCs) for trade settlements, aiming to conduct trade outside of the US dollar system.

How do central banks fit into the changing global monetary landscape?

Central banks around the world are reducing their US dollar reserves and increasingly buying gold. This trend signifies a shift away from reliance on the US dollar and indicates that gold might play a crucial role in the new monetary system being envisaged by countries looking for alternatives.

What are some of the geopolitical risks affecting the global economy and currencies?

Geopolitical risks include ongoing wars and potential conflicts in places like Gaza, Ukraine, and Taiwan. These situations could lead to a global war and are part of the uncertain geopolitical landscape that might influence the global economy and currency stability.

Why is there a significant disconnect between the price of gold and gold mining equities?

Frank Giustra notes a disconnect between rising gold prices and stagnant gold mining stocks, attributing it to investors being distracted by speculative investments in technology and cryptocurrencies. He finds this disconnect bizarre and unprecedented in his career.

What is Frank Giustra's stance on the current state of media and information?

Frank Giustra expresses concern over the mistrust in both mainstream and social media, emphasizing the problems of misinformation, lack of regulation, and the potential dangers of artificial intelligence in spreading false information. He advocates for responsible media practices to address these challenges.

What is Giustra's personal approach to retirement and staying active?

Frank Giustra believes that retiring is akin to a death sentence and emphasizes the importance of staying mentally and physically active by continuing to work, especially in areas he is passionate about, such as the mining industry and philanthropy.

How does Frank Giustra view the future of gold as an investment?

Giustra sees gold as a crucial asset for wealth protection against economic and geopolitical uncertainties. He criticizes mainstream financial media for discouraging investment in gold and argues that gold's performance over time, especially against currencies and inflation, underscores its value.

What is Giustra's take on the future role of China in the global economy?

Giustra views China as a rising global power that is leading the charge against the current US-dominated monetary system. He believes that China's Belt and Road Initiative and its approach to offering development in exchange for oil, as opposed to the US's military-based strategy, will gain more global support.

Outlines

00:00

💸 The Looming US Dollar Crisis and Global Economic Shifts

The discussion opens with a concern about the growing US federal debt, predicted to increase significantly over the coming years, leading to a potential dollar crisis. Frank Giustra, a renowned Canadian businessman, is introduced as the guest to explore this topic further. The dialogue delves into the potential decline of the US dollar as the world's reserve currency, emphasizing the geopolitical shifts, including the rise of the BRICS nations and their efforts to move away from dollar-centric trade. The conversation touches on the consequences of the US losing its reserve currency status, affecting its economy, standard of living, and global financial influence.

05:01

🌍 The Necessity of a Global Monetary Reset

This paragraph delves into the concept of a 'monetary reset' as discussed by Frank Giustra, explaining the unfair advantages the US dollar system poses for low-income countries. The dialogue highlights the global call for a new monetary system, driven by countries in the global south and the BRICS nations, as they seek alternatives to mitigate the economic disadvantages of the current dollar-centric system. Giustra criticizes the US's lack of response to global pleas for a more equitable monetary system, pointing to the growing trend of countries using local currencies and investing in gold as steps toward a monetary reset.

10:02

🌐 Central Bank Digital Currencies and Global Trade Evolution

This segment explores the rise of Central Bank Digital Currencies (CBDCs) as an alternative to the US dollar in international trade. Frank Giustra discusses various global projects testing CBDCs for cross-border transactions, which could lead to a more efficient and US dollar-independent trade system. He speculates about the future role of gold and digital currencies in reshaping global commerce, suggesting that significant changes are underway as nations seek more autonomy in their financial transactions.

15:02

🛢️ The Future of the Petrodollar and Global Energy Trade

The conversation shifts to the petrodollar system, with Giustra predicting its decline as countries like Saudi Arabia consider trading oil in currencies other than the US dollar. The discussion addresses the geopolitical implications of such a shift, including the potential for increased global conflicts and the strategic moves by China to promote development in exchange for oil, contrasting with the US's historical approach of offering military support for oil. This part underscores the changing dynamics in global energy trade and the potential consequences for US influence.

20:03

💹 The Disparity Between Gold Prices and Mining Equities

Giustra addresses the puzzling lack of correlation between rising gold prices and the stagnating valuations of gold mining equities. He shares insights into his own investments in the mining sector, highlighting the undervaluation of gold mining companies despite the bullion's price surge. Giustra's critique extends to the media's portrayal of gold as an investment, countering mainstream narratives that discourage gold investment and emphasizing the metal's enduring value and performance compared to other asset classes.

25:04

📈 Gold's Unexplained Rally and Geopolitical Undercurrents

This section delves into the recent unexplained surge in gold prices, which Giustra finds atypical and indicative of behind-the-scenes geopolitical maneuvering. He speculates that central banks might be driving this rally, noting the absence of investor-driven demand in gold ETFs. Giustra hints at possible deeper geopolitical or economic reasons for this rally, distinct from the usual market drivers, suggesting a significant yet undisclosed shift affecting the gold market.

30:05

🏦 Frank Giustra's Continued Passion for Mining and Business

Frank Giustra discusses his ongoing involvement in the mining industry and his reasons for not retiring, emphasizing the importance of staying active and engaged. He details his involvement with AIS Gold and West Red Lake Gold, outlining his strategy for building successful mining companies through a 'buy and build' approach. Giustra explains how he selects projects and his vision for creating value in the mining sector, contrasting with riskier greenfield investments.

35:07

📺 Frank Giustra's Perspective on Media Evolution and Misinformation

Giustra shares his views on the future of media, expressing concern over the increasing mistrust in both mainstream and social media due to misinformation and the lack of effective regulation. He recounts his own experience with misinformation on Twitter and emphasizes the importance of media responsibility in a world where false narratives can have real-world consequences. Giustra's comments reflect a broader concern about the direction of media and the challenge of maintaining public trust in an era of rapid technological change.

Keywords

💡US dollar crisis

The US dollar crisis mentioned in the video refers to the anticipated severe devaluation or loss of confidence in the US dollar due to unsustainable national debt and deficits. The video highlights concerns that rising debt, estimated at $20 trillion over the next 10 years on top of the current $34 trillion, along with $100 trillion in baseline deficits by 2050, will lead to a situation where the debt cannot be serviced, thereby triggering a crisis. This is crucial as it underpins discussions on the dollar's future as a reserve currency and its impact on global economic stability.

💡Global Reserve Currency

A global reserve currency is a currency that is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. The video discusses the US dollar's role as the current global reserve currency and explores the possibility of its decline in this role due to various factors, including geopolitical shifts, rising debt, and alternative trading mechanisms. The potential loss of this status could have profound economic implications for the United States, affecting interest rates, inflation, and the overall standard of living.

💡BRICS

BRICS is an acronym representing a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. The video highlights how these countries are driving a shift away from the US dollar in international trade and financial transactions, partly as a response to geopolitical tensions and sanctions. This movement is part of a broader effort to reset the global monetary system, potentially diminishing the dollar's dominance and paving the way for alternative currencies or trading systems.

💡Monetary Reset

A monetary reset in the video refers to a significant transformation in the global financial system, similar to what happened with the Bretton Woods system after World War II. The discussion suggests that a combination of unsustainable US debt, unfair trade mechanisms, and geopolitical pressures is leading to a scenario where a reset is necessary to create a more balanced and equitable financial system. The reset could involve new currencies, trading arrangements, or digital currencies, altering the current US-dollar-centric model.

💡Central Bank Digital Currencies (CBDCs)

CBDCs are digital forms of a country's official currency issued and regulated by the central bank. The video discusses CBDCs as part of the evolving financial landscape, where countries are exploring efficient, cost-effective ways to conduct trade outside the US dollar system. This development is framed as a response to the limitations and risks associated with the current dollar-dominated system, including sanctions and the need for more equitable trade mechanisms.

💡Petrodollar

The petrodollar system is an arrangement where oil exports are priced and sold in US dollars, reinforcing the currency's global reserve status. The video addresses the potential decline of the petrodollar, with countries like Saudi Arabia considering selling oil in currencies other than the dollar. This shift indicates a move towards de-dollarization in global oil trade, which could further erode the dollar's dominance and impact US economic interests.

💡Gold

Gold is highlighted as a key asset and possible cornerstone in a new monetary system. The discussion points out that central banks around the world are increasing their gold reserves, a trend that may reflect a lack of confidence in fiat currencies, including the US dollar. The accumulation of gold by central banks is presented as a preparatory move for a potential shift in the global financial system, where gold could play a crucial role in backing currencies or facilitating trade.

💡Inflation Export

The video discusses the concept of inflation export, where the US, by virtue of its currency being the global reserve, is able to 'export' its inflation to other countries. This happens as countries need to hold large amounts of overvalued US dollars for international trade, which affects their local economies by making imports more expensive and servicing foreign debt harder. This mechanism is cited as one of the reasons for the global South's interest in moving away from the dollar.

💡Sanctions

Sanctions are restrictive measures imposed by countries to achieve foreign policy objectives. The video touches on how the use of sanctions, especially by the US, has spurred countries to seek alternatives to the US dollar. Sanctions can freeze a country's dollar reserves and exclude it from the global financial system, motivating a search for more sovereign and less vulnerable economic arrangements.

💡Blockchain

Blockchain technology is mentioned in the context of developing new payment systems by the BRICS countries to circumvent the US dollar. The video outlines plans for a blockchain-based payment system that could facilitate trade transactions using digital currencies or tokens, providing a secure, efficient, and independent method of international settlement that reduces reliance on the dollar and traditional financial infrastructure.

Highlights

Frank Giustra discusses the potential loss of the US dollar's status as the world's reserve currency due to unsustainable debt and geopolitical shifts.

Giustra highlights the BRICS nations' efforts to establish a new global monetary system, moving away from US dollar dependency.

The conversation addresses the creation of a blockchain-based payment system by Russia and China as a step towards de-dollarization.

Central banks globally are diversifying reserves away from the US dollar and increasingly accumulating gold.

Giustra argues that the current global monetary system disadvantages the Global South, prompting a demand for a monetary reset.

The interview explores the concept of a 'monetary reset' and why it's considered necessary by many countries.

Discussion on the potential implications of the US dollar losing its reserve currency status, including increased geopolitical tensions and challenges to US hegemony.

Giustra criticizes mainstream financial media's negative stance on gold investments compared to their promotion of cryptocurrencies and tech stocks.

Exploration of the growing trend towards trading oil and other commodities outside of the US dollar, particularly among BRICS nations.

Insights into Giustra's mining ventures and his strategy for selecting and developing mining projects.

Giustra discusses his philanthropic work and the importance of staying active and engaged in business and social issues.

The interview touches on the evolving landscape of media and information, highlighting the challenges posed by misinformation and trust issues.

Giustra emphasizes the strategic role of gold in the new geopolitical and monetary landscapes, suggesting central banks are driving its recent price rally.

A look into Giustra's criticism of current trends in media and social platforms, including his legal action against Twitter over misinformation.

Giustra shares his perspective on retirement, the value of continuous work, and the joy he finds in building successful mining companies.

Transcripts

the CBO which is nonpartisan um

Congressional budget uh office has

predicted that in the next 10 years

we're going to get an additional 20

trillion added to the $34 trillion of

federal debt right now and there's a 100

trillion

dollar dollars of Baseline deficits it

going up to 2050 that at 5% interest

rates think about it that is absolutely

insane it cannot be serviced it's

unsustainable and it's going

to it's going to eventually create a US

dollar crisis is the US dollar about to

see a crisis never before witnessed is

the world seeing a rising tide of

geopolitical tensions that may damage

not just our portfolios but perhaps

challenge our safety and prosperity as

more Wars take front and center in

global headlines let's discuss these

themes along with what's happening

recently with Bitcoin gold and the stock

markets with our next guest Canadian

businessman and philanthropist Frank

justra Frank is the CEO of the fury

group the founder of Alliance gate

entertainment and the co-chair of the

international crisis group uh he is the

founder of former director of weat and

River uh later gold Corb and he's had a

storyed career building a number of

successful mining companies uh a few of

which we'll be talking about later on in

the interview he's also the recipient of

Canada's highest civilian honor the

Order of Canada in 2019 Frank welcome to

the show an honor to host you thanks for

being here hey David it's great great to

be on again Frank this idea that the US

Dollars days as the so Reserve currency

are numbered is an idea that's been

passed around for quite some time but

the implications of this idea are what's

most important for uh people like uh me

uh and investors like yourself we want

to know what this means for the world

because if the US dollar is no longer

the global Reserve currency could that

also mean that the US dollar is no

longer the sole super power could that

mean there's going to be a rising uh

superpower to challenge the us could

there be more conflicts could there be

more Wars that's what we're here to

discuss today so Frank let's start with

the US dollar do you think that it's

losing its status as a reserve currency

and a global hedgman yeah they are it's

just a function or a question of how

long it will take and it may happen very

gradually over a period of time or it

may happen with some event that creates

a more sudden uh switch to some other

mechanism but it's happening and it's

happening right in front of our eyes in

many different ways um the bricks are

driving this China is leading the bricks

in this quest for uh reset of the global

monetary system they have been for quite

a while and since the Russia invasion of

Ukraine has gathered a lot of steam as a

result of the West sanctions on Russian

reserves and elimination from the Swift

Swift

uh settlement system so um the

mechanisms are many and there are lots

of other mechanisms that are being

discussed but in essence what is

happening is that the World At

Large LED Again by China by uh Russia to

some extent are are finding different

mechanisms in which to conduct trade

that is outside the US dollar system and

like I said there there are many we can

go through a laundry list of the

the the the mechanisms that are being

discussed but what is actually being

used at the moment while we're waiting

for some new monetary system reset which

is would be something like what happened

uh with the uh Breton Woods system when

it changed after World War II we're

heading towards a reset but that may

take time in the

meantime most countries around the world

are finding ways to trade using local

currencies and and again the laundry

list is long and growing every day um

and it's mostly within the bricks

countries in the global South that these

mechanisms are being put into place so

that takes away from the demand of US

Dollars and this is happening at the

same time as central banks around the

world are dollariz selling their US

dollar reserves and in many cases buying

gold you know gold has been accumulated

on a very steady basis for the last 14

years and and now at an accelerating

Pace central banks around the world are

dollariz and buying gold and so all of

these things will

eventually become problematic for the

United States because if the US loses

its US

dollar all Supreme Reserve status which

it has it has a lot of repercussions on

the US the economy in terms of standard

of living interest rates inflation all

these things will impact be impacted

negatively and um so it's just a

question of whether it happens gradually

or suddenly and you know but it's

happening okay Frank I want to come back

to some of those points but first you

mentioned monetary reset several times

I've heard that term before first of all

what does that word exactly mean to you

and second why do we need a monetary

reset what's wrong with the current

Global monetary system today

well it's when you look at it from the

perspective of the global South for

instance okay the US dollar system is

basically unfair to countries that have

to

import American inflation so the US

exports its inflation to lowincome

countries with an overvalued dollar and

commodities as you know are mostly

priced in US dollars so as commodity as

the dollars

overpriced commodity cost for low-income

countries becomes excess

um most sovereign debt around the world

especially in the global C is priced in

US Dollars and they have to service that

debt so when you get an overpriced US

dollar it becomes very expensive and

that's why the UN was begging the FED to

lower interest rates last year and the

FED has stubbornly refused to do so up

until the UN was begging the the UN was

begging the FED I didn't oh yeah no the

the UN was begging the FED on behalf of

low-income countries to lower interest

rates this is last year and you know uh

the US is doing what's good for the US

and doesn't really think much about the

rest of the world so so that sovereign

debt has to be serviced in very

expensive US Dollars and then there's

the fear of sanctions you know because

when the US the West led by the US

sanctioned Russia and froze its dollar

reserves eliminated it from the Swift

settlement system many countries around

the world you know they don't have to be

unfriendly to the US but they're

thinking who's going to be next on the

naughty list if the US deems you like

they've deemed Venezuela or Iran or

Russia uh North Korea to be the enemy

they will sanction you and they could

easily free if you have US dollars in

your Central Bank Reserves they can

freeze those dollars because they're in

the form of treasury bills and so that

fear and then additionally the US fiscal

system is in really serious trouble you

know you got $2 trillion deficits every

year as far as as far as the I can see

the CBO which is nonpartisan um

Congressional budget uh office has

predicted that in the next 10 years

we're going to get an additional 20

trillion added to the $34 trillion of

federal debt right now and there's a

hundred trillion

dollar dollars of Baseline death

deficits it going up to 2050 that at 5%

interest rates think about it that is

absolutely insane it cannot be serviced

it's unsustainable and it's G

to it's going to eventually create a US

dollar crisis so for all of those

reasons the world wants a different

system different monetary system and

again China which is an adversary to the

US has led this charge but it's catching

on you know now you've got the

with 11 members and 20 more applicants

standing in line uh and they're going to

control most of the world's GDP at some

point or a very large chunk of it and

they want a different system they're all

begging for it they've talked about a

bricks currency which I think will take

is no it's not going to happen overnight

and it's going to take a bunch of years

but in the meantime you're going to get

a mish mash of weekly dominant

currencies basically competing with the

US dollar and that's what's happening

okay well let's talk about the uh bricks

currency in just a bit but first

speaking of the bricks they've recently

announced this is an article from Fox

Business dated March 3rd uh March 5th

rather they recently announced a new

payment system away from the US dollar

I'll just read you the headline and the

first two paragraphs Russia China team

up against the US dollar with planned

blockchain payment system it says here

the bricks block of countries led by

China and Russia are moving ahead with

their efforts to move away from the US

dollar with an announcement that they're

planning to create a payment system

blate based on block blockchain the five

Nation bricks group um uh told an

Russian agency T late Monday we believe

that creating an independent bricks

payment system is an important goal for

the future which could be based on

state-of-the-art tools such as digital

Technologies and blockchain so first

evaluate why they're doing this uh and

talk about what whether or not you think

blockchain is a solution to what they're

trying to achieve here well what they're

referring to is Central Bank digital

currencies as a means of settlements on

trades between countries okay and um

that is a reality there's probably 130

countries around the world that are

testing Central Bank digital currencies

and I don't know if you've heard of the

mbridge project between China Thailand

and the UAE which has been in effect for

the last couple of years which is

testing crossb settlements using Central

Bank to Central Bank ledgers and

completely outside the US dollar system

so this is what they're referring to and

it's more efficient it's going to be

less expensive and it

removes the you know a large part of the

world from the uh what they perceive to

be a problematic US dollar system so yes

that's absolutely happening and it makes

sense if you're if you're one of these

countries if you're Saudi Arabia if

you're turkey if you're Egypt if you're

Nigeria uh Venezuela it makes sense to

have a system that's more efficient and

less costly and is not going to be in

Jeopardy of being attacked by the US

government right but if they do this

Frank uh if they go ahead with not just

a cbdc but a common bricks currency an

idea that's been talked about a lot what

does that look like well I we don't know

yet and and again I think the the idea

of a bricks currency like a Euro for

instance is a long ways down the road

because you know you've got a number of

countries that uh within the bricks

group that are adversaries India and

China being the prime example um and so

I don't know whether they're going to

you know I think think it'll happen

eventually I think it'll take time uh

and in the meantime you're getting these

bilateral Arrangements between countries

to trade in their local currencies and

that's going to and that can move to a

digital world quite easily and that's

what's going to happen I think first and

then I think that gold is going to play

some role in whatever this new system is

going to look like and uh that will you

will we'll wait and see how that plays

out but there's a very good reason why

all the central banks around the world

have been absolutely piling up their

gold reserves I mean it's it's again

they broke a record u in 2022 2023 was

almost equal to 2022 and there's still

if you look at the January and February

numbers of 2024 central banks led by

China again are really buying up all the

physical gold gold is moving from the

West physical Golds moving from the West

to the East and it's happening right in

front of our eyes and hardly anybody in

America is paying attention are central

banks price sensitive in other words

will they typically buy gold when they

believe it's at a fair

value well David you know think about it

they've been steadily buying gold for 14

years since

2010 they haven't wavered and the price

has gone from what you know from since

2010 it's had a low of 1100 and a high

of today it just hit 2200 today okay

they they keep buying so so thus far

they haven't been sensitive to the price

but so you don't think this is an

indicator of higher prices just because

central banks are moving in investors

shouldn't look at it that way well I

think investors need to pay attention to

what central banks are doing they're

they're in the node they know what's

going on they're seeing what's happening

around the world I think investors in

North America are are not paying

attention they're too focused on you

know Bitcoin and crypto currencies and

they're not paying attention what's

happening in the real monetary world and

so I think that it it it it makes a lot

of sense to pay very close attention to

what central banks are doing let's talk

about the petrol dollar now the idea

that uh somewhere down the line uh oil

will no longer be denominated in US

dollars or at least there might be a

bifurcation in our Global uh system

whereby we have your oil priced in

dollars and oil priced in something else

is that what's going to happen next

Frank yeah it's already it's already

starting to happen and I think you know

Saudi Arabia is the key player in this

in this game of uh maintaining the Petro

dollar status and even Saudi Saudi

Arabia has toyed with the idea and I

said it publicly that they would

consider consider selling oil and Yuan

uh many other countries including the

UAE is trading oil in other currencies

outside the US dollar they're already

doing it with Indian durhams um these

oil trades are happening um in other

currencies Ghana has said they will sell

they will use gold to buy oil instead of

US Dollars um so it is

happening the the the tricky part I

think and and again Saudi Arabia is the

key player in OPAC and I think from

their perspective they have to walk a

very delicate balance between their

relationship with China on one hand and

the US on the other you know they have

security arrangements with the United

States but they see China as the future

in terms of where their trade is going

to come from and they have an

arrangement with China to to uh to sell

oil and and and China will invest in

Saudi Arabia in other things so I think

that the days of the Petr dollar are

numbered but again you know countries

are have to be very careful not

to upset the United States by completely

abandoning the P dollar because that

would be a national security issue for

the United States and they would react

very violently in my opinion if that

were to happen so what's happening in

the world and the way you have to look

at it is that China is promoting the

idea for many years the US promoted the

idea to the world um we will

uh buy your oil and sell you arms okay

that was the arrangement basically with

L we'll keep you safe the world you know

we have the largest Navy in the world

we'll keep the waterways safe uh we'll

sell you arms and you sell us your oil

and you do it in US Dollars okay uh you

have to use the US dollar that was

always the case China has a different

sales pitch they say we'll give you

Prosperity we'll buy oil and invest in

your country and your development it's

oil for development instead of oil for

arms and that is selling very well with

a large part of the world because China

as you know with its belt and Road

initiative is invest has invested very

heavily around the world uh in

development uh in and in many cases in

order to secure energy and mineral needs

um and so you know when you think about

it from the perspective of of a lot of

the world the bricks the global South

you know oil for Prosperity makes makes

a lot more sense than oil forarms and so

this is this is going to be the battle

going you know as we move forward is the

US selling one idea and China selling

another here here's the thing a lot of

people agree with you Frank that there's

going to be a bifurcation of global

strength and power and monetary systems

and whatnot but are are we ready for

another superpower to take over let's

just take up talk about the global Bel

and Road the Chinese belt and Road

initiative by the way which has been

criticized as a lone shark Chinese loone

shark problem a lot of the African

countries that China is building in

can't even pay back the loans that China

is giving them and so they're paying

them back in other ways by basically

being imperialized right that's one

criticism you know and that is a bogus

claim when you think about it know

listen China is doing what's good for

China as every other country in the

world does the same but the idea that uh

this is uh uh debt

diplomacy by China to U basically

enslave countries through this unpayable

debt is bogus and you have to there was

a Bloomberg article on this last year

that you should look up which is

basically said you know it it and and if

you look at it what what take Africa for

instance Africa where where China is

very heavily invested it has strategic

Partnerships with 44 countries in Africa

including n space programs with nine

countries in Africa it's invested 1.3

trillion dollars in various in about

20,000 projects and when you look at it

and it's and these are government to

government deals which many countries on

around the world prefer rather than

dealing with corporations and if you

look at it from the African Count's

perspective they they're not complaining

they're not the ones that are

complaining it's the West that is

labeling um these loans as unpayable and

unfair and whatever when when you look

at what the IMF has done to a lot of

these countries over the years you know

it's you know it's really a bit of the

kettle calling the pop black you know

and but it's it's a competition you have

to understand this is a global

competition for Global

Supremacy China is going to is onest way

become the number one economy in the

world all already isn't and the US

doesn't like it and the US is reacting

and it's no different than what's

happened throughout history and the

patterns are all the same so I think

that the idea that China's loans and

arrangements with countries around the

world I've been labeled as totally

unfair is completely wrong it's bogus I

mean you got to just get real about

what's what's going on and compete the

US has to compete instead of

complain explain devil's advocate here

the the the antithesis to what you've

been what we've been talking about the

last 20 minutes is that there's no

there's no dollarization Trend franking

mean look at the dxy it's it's been on

an uptrend for the last couple of years

relative to other currencies it's

relatively strong and now on the on the

subject of the bricks taking over the US

China has its own economic problems is

that's got a housing bubble that's

already collapsing um we don't even know

if it's going to become the world's

largest economy and sustain that level

Russia's got problems of its own that

you know are obvious the US is doing

quite well relative to the other peers

right that's that's that's the

counterargument here we don't need to

worry if we're in the

west okay you want me to respond to that

yeah please go ahead okay well listen

first of all when you compare currencies

with other currencies it's an

abstraction you know it's it's an

illusion you can't that's not the way to

measure the value of a currency So when

you say that the USR strength has been

consistent for the last few years yeah

because us jacked up its interest rates

to 5% uh and has led the world in terms

of interest rate hikes and that attracts

investment like treasury bills

Investments and that's all fine but you

have to measure the only true measure

of currencies is a currency against

measured against gold okay and that's

what you have to keep an eye on and up

until recently you know that wasn't yeah

really evident but now starting to

become evident now and when you say that

the US is doing well

really I said relative to its peers

right I mean it's got everyone's got

problems yeah yeah yes it's its economy

has been stronger than some of the rest

but at what cost at what cost how how

can you say that the economy is strong

when it's fueled by government debt to

the tune of2 trillion do a year deficits

that's not strength that's an illusion

and one day is going to come back and

bite it and so you have to look at the

reality of what's going on in the world

as opposed to what is being promoted as

economic strength and so I I don't

believe that the US economy is as strong

as they would like to to have you

believe and you can't you just got to

look at their fiscal situation it's an

it's very problematic those are very

very big numbers you mentioned gold may

be the solution to these problems you

actually tweeted about this recently you

criticized the CNBC article you said

when CNBC misleads its Audience by

cautioning them against buying gold it's

time to actually pay attention I'll just

cite a few uh quotes from this

particular article here it says uh first

of all uh don't be enticed by the gold

rally investors buy gold and hope it

doesn't go go up uh one helpful way to

think about the recent gold rally it's a

case of shot and fla the yellow metal

does well when other assets in the world

are in trouble and then it goes on to

list a few reasons why gold has not been

a good investment over time despite

brief rall the average return annual

return for gold uh far legs stocks and

bonds according to experts so it's

really just a safety play that doesn't

really last is what this article is

saying yeah so David and they used their

measure and again you can play all sorts

of silly games with Statistics okay so

well from

2014 uh the S&P outperform gold to the

Hey listen I'll give you two other

statistics since the turn of the century

since 2001 gold has outperformed stocks

and bonds since 1971

to the present gold has

outperformed uh gold has gone up 5700

per the Dow Jones Dow Jones has gone up

4,00% the cnbc's of the world are really

shs for Wall Street you listen

I CNBC will never promote gold they

never have and they never will because

it's is it's a counter argument to the

The Narrative that they're putting to

the public that everything's fine you

have to invest in stocks and in bonds

and cryptocurrency anything that

generates fees for Wall Street and

creates wealth for Wall Street is what

cnbc's of the world like to promote and

the fact that gold has outperformed

everything else over time they don't

they don't like to admit that because

they would be admitting that gold has a

true role in protecting wealth um and so

I don't don't buy any of this stuff and

in the meantime the same day they came

up with that article David yeah yeah

they put out another article that

Bitcoin could possibly go to $98,000 a

coin you know when it's trading at 60

something so they promote Things That

Wall Street makes money off of right and

they they po go so I don't I don't trust

the

NBC I they're I I think that're you know

Jim Kramer oh my God the guy's never

right and I don't even know why he has a

following it just it's it's all

entertainment it's a show and none of it

makes any sense to me listen to this

sentence from the same article should

investors take part in the Doomsday

holding okay it's calling gold a literal

doomsday holding can you evaluate that

uh that term is it is it correct it's

it's true gold is sort of a hedge

against almost every other stupidity in

the world it always has been and so uh

the the question of whether you should

be um what what that sentence is

insinuating is should should you be

rooting for a doomsday and again I'm

going to say to you it doesn't matter

what you're rooting for the question is

should you be putting your money to

something that will protect you in the

event of an unraveling that's you know

that's that's the question and so it's

not about what you're rooting for it's

about being realistic well here's the

thing uh Frank gold currently as we're

speaking today on Friday

2185 right already pass alltime highs

Bitcoin briefly surpassed alltime highs

very very briefly the S&P Dow Jones

already broke alltime highs weeks ago I

think all these assets are probably

responding to another four something

else that's going up because you've got

risk assets and gold which is a safety

plate all going up at the same time

right what's going on well that's

probably the best question you've asked

today because the answer is I don't know

and I'm telling you and don't listen to

all the Talking Heads that are trying to

explain this recent gold rally this

recent gold rally that's happen this

past week is very different there's

something going on and we're not going

to

learn the reason for this rally because

it seems to be

uninterrupted the

manipulators that are usually in the

market have stepped out of the way

there's something going on that will be

explained later because who whatever the

powers that are driving this gold pricer

up to they don't they're not going to

let you know that until they've

accomplished what they need to

accomplish this is a very different gold

rally it it's happening without any

explanation and and and it's not about

what Paul said the other day or about

interest rates about it's not about the

dollar there's something going on that's

very profound and I don't have the

answer I I can speculate and there could

be a whole bunch of reasons but this

rally is Extreme ly different and I've

been watching gold my entire adult life

and what's happened this last week is

unexplainable it's not it's very

different than every other rally that

I've ever seen and it's happening almost

at an uninterrupted Pace marching its

way forward a couple hundred bucks an

ounce and no one can explain it and I my

guesses will find out down the road what

happened but it it I'm I'm certain it

involves geopolitical players okay so

it's not we we'll finish off here and

then I want it's certainly I'll tell you

what it's not it's not investors this is

not a gold rally that's been driven by

because if you see what's happening with

the gold ETFs we're actually getting

outflows of ETF money in the gold ETFs

during a spike in Gold so it's investors

and certainly not in North America

they're not the ones that are doing this

my guess is that there are central banks

involved in this rally that's all I can

guess this is not an investor driven

rally this is a geo this is a

geopolitical player rally and it's most

likely central banks

somewhere one or a number of them acting

in concert who knows well we we know

what gold reacts to geopolitical risks

the dollar the dollar has not been you

know going down or exploding it's just

been flat the dxy so it's not really

reacting to the dollar inflation hasn't

been you know inflation hasn't been

skyrocketing gold Hedges against

inflation so that's not that uh we

talked about the fed the FED has

announced that it's going to lower rates

at some point but you said it's on an

interest rate thing so the only variable

left that I mentioned is geopolitical

risks right do you see a War or conflict

breaking out is that what's the gold

market is pricing in yeah I think that's

part of it but I don't think that's the

reason for the re recent rally what

we've seen the last week I think that

there's part of yeah yeah the world is

very fragile

you've got two major Wars going on each

of which could trigger the involvement

of global Powers into a direct conflict

both of those Wars Gaza and

Ukraine have the and then there's Taiwan

and China um all of these conflicts and

Brewing conflicts have the potential of

creating a global

war and so that's but that's been that's

that risk has been there for a couple of

years years already uh that's not the

reason this rally happened okay I think

there's something else going on okay

we'll find out what it is we'll follow

up perhaps you write an article in the

Toronto Sun or somewhere else and uh we

read about it there uh Frank Frank let's

talk about some of your recent Holdings

but before that why aren't you

retired why why what why why aren't you

retired why why are you still working so

hard what are you trying to achieve now

yeah people people die when they retire

okay I will never retire I think that's

that's a death sentence and I and I mean

that I think that you have to keep your

brain active you have to be involved in

things doing things you will live longer

and have a healthier lifespan if you do

that as opposed to retiring so I will

never retire I got way too much on my

plate as you know most of my world is my

philanthropic work I 80% of my time is

on my foundations and working with

crisis group as co-chair there um but um

I like the mining business I I grew up

with it I've made all my wealth from it

uh and I still enjoy it I enjoy I've

staffed up my office with you know a

couple of dozen of geologists and

engineers and corporate finance people

because I see a market coming not only

in Gold but in the battery Metals which

I think we're going to see a huge

deficit of Supply over the next 15 20

years and that's going to mean much

higher prices for for the metals um so

my my my my expertise in business is in

mining and I love it I absolutely love

it I love creating companies I've

created many many mining companies

throughout my career and I will continue

to do so I enjoy it uh the two projects

I want to bring up that you're involved

with AIS Gold West Red Lake gold right

what have you selected to parting with

these projects here Aris is is is is a a

gold producer in Colombia mostly in

Colombia uh we have two producing mines

down there uh we just came out with our

numbers yesterday um and very impressed

Rive you got 250,000 ounces a year of

gold production going to 500,000 ounces

by

2026 um just on our currently fully

financed and permitted projects plus we

have another massive project Soto Norte

which uh is going through the permitting

phase uh and our ambition is to be a

million ounce a year producer and we'll

get there you know I think we have a

pathway to get there um now here's the

disconnect and it's not just AOS by the

way although AOS is at the extreme in

terms of valuations I've in my 45 year

career seen such a disconnect between

the price of gold and the price of the

gold mining equities that mine the Gold

it's like Gold's going up

dramatically but the gold mining stocks

are barely moving and so you've got ays

with the numbers I just gave you they

they had $156 million us eida 150 156

million Us in eida it's got a $450

million Market again and you know in in

my career I've never seen anything like

that and there I've got other gold

mining positions that are equally

undervalue and I think that that's going

to as gold now maintains its uh alltime

high and goes higher I think that

sentiment will change but I'm surprised

it hasn't changed yet I gotta be honest

with you I think this is it's it's a

weird bizarre Universe we're living in

right now where this disconnect exists

but so that's ays and so ays you know

is I this my fifth gold mining company

I've created in the last 20 years and uh

you know we as always we have a three to

sevene time Horizon where we try and

create a million ounce year producer

we've done it before and it will create

wealth uh for its shareholders over over

time and it's incredibly undervalued

I've never seen anything like it the

numbers speak for themselves not not

promoting it just is but again we're not

alone you know I have friends that have

other mining companies that are that are

suffering the same could could I just

suggest a theory as to why there's this

disconnect well it just it's from this

it's from the tech sector right I mean

the speculative money has flowed into

this new hot trend of AI and everything

with

it that's true Tech sector so you know

the mag magnificent 7 cryp Bitcoin with

all of these Bitcoin ETFs that's

stealing a lot of the Thunder from and

again these are North American investors

okay the physical Gold's being bought

all in the East and so that's happening

but but certainly investors here are

distracted by you know this easy money

that's being made in tech stocks and and

and and

cryptocurrencies you're you're you're a

major shareholder of West red leg gold

so AIS is producing West red leg is not

what's your thesis behind holding first

of all before we talk about the project

itself what's your reason for holding a

a junior mining project that isn't isn't

produced producing right now it's a

great opportunity and so we bought I

know how much you know about West Red

Lake but it was we bought it out of

bankruptcy it was a fully built mine

fully permitted with a couple million

ounces in the ground that the previous

management messed up you being quite

honest they just messed it up too much

debt too much in a rush made too many

mistakes and it went into bankrupts and

we bought it for a very low price um uh

last year and our job is now to do what

previous manag should should have done

which is to put it into production in a

in a responsible manner it will go back

in the production in the next sort of 12

18 months and so the upside when you

know it's got a current market cap of

say $130

million um and I've already raised uh

close to $70 million in the last year to

do the work that was necessary to put it

back into production in a way that it

will produce gold very profitably yeah

um if we achieve the goal of putting it

back in production as I expect we will

the upside is tremendous this company

that owned it before had a $1.2 billion

market cap at some point based on this

mind okay so I look at it as a risk

reward and we put together an an

exceptional mining team that knows what

they're doing with underground mining

and knows they can put it back in

production those were the mistakes were

made and there were mistakes that

shouldn't been made they were like you

know

just basic mistakes they were in a rush

to put it into production they wanted to

sell the company and they messed it up

it's as simple as simple as that well

why why well I mean why yeah but that's

that's a difference of strategy right I

mean why why would you want why would

you as a shareholder want to go into

production as opposed to just selling it

off and not dealing with the cap Capal

cost because like with everything else

I've created I have a plan you know my

all the mining companies I've created

since gold Corp Endeavor

mining uh Lea gold ays and now west

redle have a plan the plan is very

simple it's called a buy and build

strategy so you start with one mind all

these companies started with one mind

and then through a series of efforts

including m&a including buying projects

and putting them in production you build

a gold mining company with multiple

mines and that's where the wealth is

created and I've proven it in the past

it's has worked very well it's a formula

that works very well so West redley much

like AIS the plan my plan is Canadian

okay so it's a Canadian mine we'll put

it back into production but there will

be other things attach to it either

through m&a or through putting other

projects into production my objective to

build a Canadian gold mining company

that will

produce many hundreds of thousands of

ounces a year and that's

how I do it and like I said done it

before there's no guarantee of success

but it's what we do

best do you have a last question on

money we'll end it here do do you have

an approach to picking projects I mean

West R Lake for example is a it's a

Brownfield exploration project okay it's

long history behind that particular

deposit do you that is that something

you go for something that already has

had a history of mining where do you

where is there better value you think in

picking something that's

Greenfield uh green fields are tough

okay and you know I've i' I've invested

a bit in Green Fields it's a very very

Risky Business um I've made money I lost

money doing it but it's it doesn't fit

the formula of what I just

described to have to to achieve what I

achieve and have achieved in all my

mining companies you start with

something that is either already in

production and can be improved upon or

something that's ready to go into

production and needs capital and and

management expertise to get there okay

Green Field stuff that's a different

game that's a completely different game

you can make a lot of money on that and

lose a lot of money on that what I do

has a lot less

risk okay perfect final question I want

to give your take on the future of media

you also founded Lions Gate

entertainment uh love the work that's

that company has done by the way um

you've you've had back and forth between

uh Twitter uh you know you've criticized

for what they've done now what is the

future of how people consume media is it

social media is it online is there still

room for cable TV are you still

venturing in the media space what's the

future here I'm not um you know that's

that that was my past um but the way I

see it is that uh we live in a world of

information where information is is the

most important commodity and the problem

we have today is a m trust in

information okay mistrust with

mainstream

media uh mistrust with social

media uh social media is largely

unregulated so you can you know now with

the uh introduction of artificial

intelligence it's getting really scary

because who's going to determine and how

do you determine what information is

true and what is false what is

misleading what is meant to lead you um

and that's a very scary world to live in

and I don't know how it's all going to

play

out but I see nothing but problems with

the way that the media works today and

the lack of trust in media

people are believing things that they

are told because they live in Echo

chamers both with respect to the

mainstream media so you got Fox you got

CNN or Fox and SMBC two separate

universes there yeah giving different

information to their viewers and then

you got social media that does the same

thing you know you've got all sorts

of uh narratives

being promoted on social media and much

of it is complete misinformation and

disinformation well you've been the

subject of some of these attacks right

on on social media on Twitter yeah

that's why I see Twitter I see Twitter

several years ago it was a you know bit

of a bold move but I sued them for and I

sued them for a dollar I didn't sue them

to make money I sued them to make a

point and the point was that I was

getting death threats on lies that were

being told by the qanon crowd through

Twitter and I complained and I you know

I you know wrote letters to Jack dorsy

and I said you know and got zero

response so I thought okay I'll get

their attention so I Su and now I can't

talk about the settlement because we

signed an NDA but um you know I I was I

was making a point saying change your

ways you you can't tackle this

misinformation you can't tackle when

these Bots are manipulating information

can tackle death threats you know they

weren't doing it before now you know

they CH El musk is doing the exact

opposite he's actually fired a majority

of the team that's responsible for

censoring quote what he calls it

censoring content you just call it

moderation he calls it censoring so uh

that's not that's that's not really the

future that the current owner is wanting

to take I don't think he agrees with you

there Frank he doesn't and and that's

fine you know that's his take on it I

have to make a point about what was

happening before and death threats are

unacceptable sure you know just unaccept

because we live in a crazy world and

some people believe these crazy stories

about pizzagate and you know Hollywood

people drinking the blood of children I

mean there are people that believe this

stuff and they want to do something

about it and there's already been cases

where people that are not quite stable

go out with guns and try and and and and

and and be the Vigilantes that fix this

problem you know it's it's a crazy world

out there so you know the media has a

responsibility and a lot of times the

media does not take on that

responsibility of not firing up you know

a a population with lies that makes them

react Frank where do we learn more about

you and the uh Fury group and what are

you're working on with these days what

do you mean where do we learn more is

there is there someplace we can follow

you uh oh TW listen Twitter's my my you

know even though I sue Twitter I'm still

on

it no again I was making a point I made

the point that's behind us now um but

Twitter is where I Express My Views

about everything from geopolitics from

conflicts to macroeconomics to the

dollar to go any anything that I feel

where the world where there's an

injustice taking place and I comment on

so many things I write about lots and

lots of stuff including you just just go

there you'll find everything I've

written gets posted there all my

opinions and dayto day I will see an

article on something and I'll aine on

and say you know this is where I believe

it's right or wrong and uh and I point

out things that a lot of people don't

pay attention to and I enjoy it and it's

my it's my platform okay you haven't

considered final question I'll let you

go you haven't considered launching your

own social media platform taking the

Donald Trump

route why would I do that what kind of

an audience would I have seriously I

don't know yeah no I'm happy to use

somebody else's platform okay perfect

thank you very much for your time today

Frank we've learned a

David always my pleasure thank you for

watching don't forget to like And

subscribe