in the headlines at this hour the czech president says his country needs to start using russia's vico vaccine and calls for the health minister to be fired for refusing to approve the drug. the european medicines agency urges countries to keep using the astra zeneca vaccine after 4 nations suspended the drug over reports of severe blood clots. britain shuts down for brand new covert emergency hospitals built at a cost of half a $1000000000.00 pounds while public anger boils over a mere one percent pay rise for frontline health workers. to knock it off. and yet another protest to new york against the governor with more

calls for him to resign pressure is already building against andrew cuomo over his handling of the pandemic we heard from the daughter of one care home victim who is demanding answers. to. those are this hour's headlines up next sophie co talks with investor peter schiff about the latest craze and the future of money. would be. to bring about a new financial regime. about this i'm joined by peter schiff. stockard chief economist. so.

it is she said further chief economist in london strategies this is the capital flows into the generation with us thanks for having me on your show but says he says there isn't worth anything like france's gold but he had bothered to cash out a coin i'm going to say $50000.00 or whatever for a that action that he used to buy gold. it's been worthless is it is it really that there's a difference between the value and the price i mean mid-point certainly has a price because people are willing to buy it and so people value would in the sense that they think it's worth something and so they're willing to buy it. that's different from something that actually has real value intrinsic value i mean gold doesn't have value simply because people believe in it gold has value because it's

a metal and it has properties that are very unique that other metals don't have that makes gold extremely useful so there's a lot of demand for gold in the real economy not just jewelry which is one of the you know most obvious uses for gold but it's use in electronics and dentistry in aerospace because it has properties that other metals really can't replicate so you're always going to have demand for gold now the reason gold became a monetary metal in addition to a metal in a metal for luxury goods and jewelry is because gold retains all of his properties over time. and so if i have some gold i don't have to use the gold today i can hold on to it and somebody else can use it in the future and it won't diminish and so it became a store of value because you know the value didn't go away over time and because it

had other attributes it was easy to use as a means of exchange but because it doesn't have any of those attributes i mean big calling derives its value simply because people believe that of they own it somebody else will give them more for it in the future but that believe you know may go away in the future you know you confidence is a very cynical thing because if people desire bitcoin soley because they think the price is going to go up if they no longer think the price is going to go up they no longer want it and when the sentiment turns there's no bottom i mean the market could just implode that doesn't happen as something with real value like gold or people don't want to own gold because they don't think the price is going to go up there's a lot of people who need to buy gold regardless of what happens to the prize so you have you know natural demand there's only like have an assassin for human terrorism

right mood copper consomme star or whatever all those things can be when i read that they are a is never that the hotter copper has value because again it's a metal. that is used i mean every commodity has value because of what you can do with it what you use it for investments have value because of the returns that they generate real estate has value because i can rent it out and i can also live in it myself but apart from that i can rent it out and get in stocks have value because there are companies that have earnings and they can pay those earnings to me in dividends they can buy back stock but they can return value to me from their income that they generate bonds are on an investment because i lend somebody money they pay me interest they pay me back the principal plus they pay me interest but big $1.00 is not an asset and that sense of the word in that it doesn't throw off any

type of return and it's not a commodity in that you can't use it for anything. now if people say well it's a digital currency well except it doesn't function as a currency it's very expensive to actually use and it's very volatile so you can't really price things in it and it's too expensive the transact in it so the only use case you have left for big one is to hold onto it and hope the price goes up but you know i hope it's not a strategy and eventually the price is going to crash and i think a lot of people unfortunately are going to lose a lot of money because they put their faith in a fiction writer to surprising me is that citizens of from to currency that this is bubble that sound secondly it isn't have that's how they clearly still think investors into i mean i listened to and says these claims that the dentist invited you are going to trade it for things to currency and you know because your

stuff what is it worth why you think like a camel was nothing i don't own a big one and i had if i had some that were gifted to me that i lost so but i don't have a very well but i've never actually bought any big point i mean. yeah i would it would have been great had i bought it a long time ago because clearly i could sell it and you know to a greater fool and cash out but you know i think that there are some wall street firms that were initially and correctly skeptical of bitcoin and now they're kind of been bracing it just because the public is into it and remember wall street is going to sell whatever the public is foolish enough to buy i mean they were manufacturing all kinds of dot com stocks during that bubble and they wiped everybody out they were busy packaging up subprime mortgages and selling them to their clients when there was demand for them and and that bubble popped so wall street has a history of getting involved in bubbles near the peaks just because they're trying

to make a buck off of the you know irrational exuberance of their customers so i think this is no different when it comes to big line but you know whether or not we're at the top clearly there's no way to know you know how many new highs of it going to make i mean it got up to 58000 and change as we're recording this i mean it's around 49000 i mean so was 58000 a top i don't know i mean maybe it's going to make another new higher several new highs but you don't know but also maybe it was the top and it's just going to keep going down from here you know at some point it will be the top and the bottom is 0 you know and that's probably who has go it. so i married her and cindy did in 2008 financial crisis which has lost that house and the united states says bakeries another bubble of sewer and it will burst someday just as. she sat under what

circumstances do you think it will happen well again the house financial crisis wasn't caused by the housing bubble the federal reserve inflated the housing bubble with the help of the u.s. government and what caused the financial crisis was all the leverage in the housing market because a lot of banks and other is either you know investors have loaned money to people to overpay for houses and those loans went bad when the real state prices went down and it was that that you know led to the financial crisis now you don't have that much keep borrowing with good going to mean there are some circumstances where i've seen people borrowing money against their bitcoin but by and large most people you know aren't leveraging their bitcoin and that's that's a good thing because that means the losses won't be as severe when this bubble pops but i think that the source of the bubble is still the same it's the fed you know it's ironic that all the people that are in the big coin bubble you know talk about

the other bubbles that the fed has inflated without recognizing that they're in a bubble themselves i mean it's like a bubble is generally in the eye of the beholder nobody can tell their own bubble and so you've got all these people who are involved in the crypto bubble they can't see it it's very ironic because the federal reserve inflated that bubble too because people are saying that well you should buy big coin because the fed is printing all this money because all the q e we're going to have all this inflation and so you need to buy big point but because it doesn't provide a hedge against inflation because big one is nothing i mean goal is a hedge against inflation because gold has a historic price relationship with all the other commodities like we corn. so i beans copper or oil and those are the prices that are all going to go up with inflation and so if you hold paper dollars then all those commodities will get more expensive but if you hold gold the price of gold will go up along with the price of

all those other commodities so you can maintain your purchasing power but because it is not a commodity it has no price relationship to any other commodity and it has no use case so you have no idea whether or not anybody is actually going to want big quon in the future so you don't know that people are going to be willing to sell you their corn or their soybeans or their copper for your bit going you know they'll be willing to exchange it for goal because they've been doing after thousands of years since morning sickness is used to thinking well half or 2 of the economy is you know. bursts and there is a crisis is it because that is a sense because one is not a big part. but i do think that big corn is also. part of the general bubble in risk assets so and if you look at the correlation between big calling it trades a lot more like you know like a tesla or all sorts of other nasdaq stocks than it does you know gold so big

point is a risk asset and it's part of that bigger bubble so if bitcoin crashes all along with all these other risky assets then that is you know that is the problem but midpoint in isolation if that coin were to go down and nothing else then it's only going to be a problem for the people who own it. and of course most of the money that's in decline is just on paper right because it has this huge market cap you know was a trillion dollars but a trillion dollars didn't go into big quite you know that's just the paper value of the appreciated that quite so when the price collapses people most people aren't losing the actual money they're just losing the money they thought they had but they never actually had it because they never saw all so a lot of this paper wealth was going to disappear but yes people that put real money into big coin that bought a lot of bitcoin at 30040050000 yeah they're going to lose

a lot of money and the money they lost was the money that the other people gain by selling them those overpriced big clients and their real winners in a bit calling bubble are the people who got it early and cashed out which of course was the case with every bubble be able come in early before it's a bubble and then it hypes up and then they're smart enough to sell but a lot of people aren't that smart and they write it all the way back down and take a break right now that will continue talking to parish stuff economists and global strategists to say capital what's the difference to us.

one of the worst mass shootings in america was in less than 2017 the tragedy exposed a little of the real last. election officials are controlled by. the. reveal . really and now it's part of. the american public barely remembers that it happened just shows you the power of money and. the powerful showed that true colors when the. most contagious contagion we've seen in decades and then you have a mayor who doesn't care so here's care i goodman offering the lives of the vegas residents to the control group. deep indifference to the people could have been saved if they were taken action absolutely. money

machine huge cash is ran by people who don't care about people's lives. we're back with your shift starts after tis economists and the global strategist of the year this is the capital peter i see space center vast i think room for instance and they're already creating their own cysts is that corporations sentiment in fact or do they see. this i think governments

like the concept of taking their feet out paper currencies and making them digital i mean number one it is easier i mean what block chain is shown us and big going i mean to the extent that if it didn't have the problems of the high cost is that you know you can exchange value i mean if i had a. digital currency the cost of transacting in that currency would be very low and you know already ordered nothing and merchants can easily accept payment in digital currency rather than you know a credit card or a paper currency so i think governments want to you know be at the forefront of that but i also think governments look at digital currency as a better way to take more control over the currency and over their citizens which is something that i don't like about it because when we have paper money you know if i have you know

a few $100.00 in my wallet i can spend that money and the government doesn't know that i've spent it the government doesn't know what i've purchased that doesn't government doesn't know who i bought it from so they can really spy on me but if they can get rid of all the paper currency and the only way i can buy something is to transfer digital currency they know everything that i'm doing they can track every purchase i make they know exactly what i'm buying they know who i'm buying it from and i just don't like governments having that much information about the citizens i thing. it's you know it makes it easier for governments to become corrupt and become oppressive and then it makes it a lot harder for the citizens to rise up and to try to overthrow or correct a corrupt government because now the government knows everything you're doing and they can easily target you they can put you in prison in you know you know as a political prisoner so i just don't like giving governments this much power to

know so much about all the people you know that they're governing well. you know very much currency. here in response to 2000 and crosses from people's trust in traditions that national institutions are shaken and in a peer to peer transaction you know. and i'm fascinated to currents is killing the initial idea to currencies having 1st say isn't the idea of no middleman or oversight well of course i mean that was the original appeal of bitcoin was that it could be actual currency and you wouldn't have to go through all the regulatory hoops you know if you want to transfer money from one bank to another there's all sorts of k.y. see an anti money laundering laws and it's complicated and with bitcoin it was like i'll just send it to a friend and nobody has to ask anything well you know the government doesn't like

that and so more and more regulation has come on these exchanges and i think a lot more regulation is coming on bitcoin that is actually going to make big calling a lot more burdensome if i wanted to send somebody big coin in the future it could be a lot more difficult and a lot more expensive than sending traditional currency because the government really wants to crack down on these on these transactions and meanwhile the other problem with a big point is when very few people were using it then the cost was minimal but as more and more people. on the network the cost of using it actually goes up it's not like you know you have the economies of scale which you would have with most businesses the more people that try to use big point the more expensive the transactions become which is the biggest problem that you get you can scale it up i mean so that it is no way it could be used as a currency which is why they've tried to just reinvent it as a store of value but if it doesn't have any use and it doesn't have any real value

then what are you storing you know you can't store price i mean that's all big coin has a price but i can't store price because tries can change a price can collapse. our financing he's a decent kurd says and the more interested they could exist clive promptly sent a state digital currency from green and he made straight. changes some of the cost of the current more interesting. is that i and i don't think that we're going to keep seeing more and more of these visual currencies and it is thousands and thousands of them now i mean the only ones that would work would be digital currencies that were backed by real things and that would be fine. and you can do that the problem is you know the governments and all the regulations may make these businesses unprofitable you know that that is that is the real problem in that we

have the technology to develop medium of exchanges of money digital there's no money backed by gold 'd or silver or whatever you want to back it by you know you can you can back a currency by anything but the key is it has to be backed by something to give it a real value. and there can be plenty of. businesses entities that have good reputations that people could trust to be the deposit terry for those assets that underlie those crypto currencies and you know putting them out there and making them available for the public so the public can choose the money that they want to use i mean that's all there the only problem is government government doesn't like competition government wants to maintain a monopoly on issuing currency they don't want private sector to issue currencies of us appear of value because currencies that are issued by governments you know

they're extremely risky because they governments can print dismay as they want and they can destroy the value there's they're not tied to anything so if the private sector started issuing a superior currency that was backed by something more and more people would want to use it and the governments don't want that so the governments are putting all these regulations which may make it impossible for the private sector to compete with government because of the cost of compliance. it got its control over financed nuisance as a result of the loss of the money printing monopoly where that benefited regular general only to just in more financial turbulence than we have now no i mean if we return a sound money would benefit everybody particularly the average joe you know we would have much stronger economies if we return to sound money we would have smaller governments which means governments would impose smaller burdens on the

private sector so the private sector could be wealthier and there'd be more opportunity to be more economic growth and that would benefit the average person the most i mean the rich are rich and their lives are are pretty good and they can afford the cost of government is to middle class and the poor that are affected the most by the burden that government places on the economy and and so they would feel the effects of being liberated from that burden the most to the extent that we can shrink government and you know alleviate you know the burden that that it had played places on society. since digital currency requires different aspart that the traditional financial institution will see for instance tasha coming in and playing the role of the new they. will develop their own coin will they become fast competitors well i guess

a lot of companies could do it just like you know you have airlines that issue frequent flyer miles i mean obviously those frequent flyer miles could be tokenized digitally and could circulate as many of exchange because everybody who flies you know well i could use them for airline miles of course they devalue every once in a while the airlines say oh now you need more miles to buy a ticket so they're not like fixed you know if they made him fixed and they say we're never going to change this then they could be an inflation hedge too and it would make them better as you know as meat means of payment but i don't know you know what companies i mean you know you have facebook out there that had a trial balloon about launching their own digital currency that initially was going to be backed by a basket of currencies i mean i don't know they should have picked gold that would have been a much better or for that currency than a basket of other fee at currencies but now i think maybe they're thinking about

issuing one that's only backed by the dollar thinking that that will be easier to get through the regulators that libor project but again this who knows i mean they launched at a couple years ago and so far nothing has come of it so i don't know i just hate to go the regulations are going to be so strike from governments that it's hard to say what's going to happen but absent government sure the private sector would be very innovative and there'd be all sorts of things that would be happening and the public would be able to choose and that would be good but the government is interfering in that just like they interfere in a lot of things and so they're preventing the benefits of the free market from flowing to average people. still it would have to look at it i buy things and pay taxes i'm mongan in the frantz who are a money battle line i care whose he is back. to the metal on the coins and the more do you think these are the last days of cash are already implements yeah i mean

clearly that's going to happen but you know it would be much better if we're all even though we're transacting digitally that we're transaction is something real that at the end at the back end of those days it all transactions lies real money which would be gold and in fact a lot of people think oh gold is you know that's the stone age you know we've evolved you know no it's not i mean gold you know gold was an evolution you know be it before we had all we had barter but the market can make gold even more efficient as money because initially you know we did have coins people figured out how to make a gold coin and that was more efficient than a big car but then people had gold at the positive oris it banks with blacksmiths and then we started issuing notes that were backed by the gold but the gold was still there giving value to the paper knows that it that it backed up and so the next evolution of that process would be to have

a digital medium but ultimately to have gold. backing it up so that you have something real that you can hold as a store of value and that governments can't debate. so peter is money is the congress still in most of the great eastern what is it really may think it's a pound or a dollar and or is iran is virtuality of money the sure past as well towards like the cool moves single currency well now i mean what gives those 5 currencies value is the confidence among the public that people will accept. those currencies in the future for the goods and services that they're offering and and you know to the extent that that confidence is lost because governments are printing too much money. then their currencies will collapse and they won't have any any value anymore they don't have any intrinsic value but they do have. a price

that people you know because they are used and people have believe in them but of course you have governments that mandate them as legal tender so that helps them and governments required taxes to be paid in those currencies and so you have no you know you have you need those currencies to pay taxes so people have to eat you really. but even even that if they print too many. know what is going to want them . and that's actually where we're headed and that's why i think that we're going to come to an end of this fee out system ultimately we're going to have to go back to sound money once the public loses complete confidence in the system. thanks a lot for his wonderful insight into the wrong thing i think i have said. it's really interesting team to see what's going to happen and the nearest teacher and i hope we get to do this again maybe 3 years time since. they responded to that day.

yeah well maybe a lot of well the way valve on may i think something could happen pretty substantial you know it in a shorter time frame than that well i one year who knows i think this is going to be this is going to be a very interesting year 2021 and i think you are either one or. every day there are a great. advice. and .

it's rather sad. hopeful on what i saw. that either on friday show i think that stuff i thought before was.