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The Fed Admitted It. The Treasury Blew It. The CPI Lied. — Transcript

by Peter Schiff · 11,676 words · 1,134 segments · language en · Watch on YouTube

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0:00What he's now doing, he just announced that if you wanna pay
0:03extra, you can get those posts a little bit sooner than everybody else.
0:08What is the purpose of that?
0:09Why would you need a post 10 or 20 seconds before everybody else gets to see it?
0:15I'm not really sure the time lag, but it's something very small.
0:18Who would care?
0:19The only person who would care is a trader who's got like a program, an algorithm,
0:24where he can program Trump's Truth Social account directly into the algorithm to
0:29immediately trade based on those posts.
0:32So Donald Trump is saying, if you want basically what amounts to
0:35insider information, market-moving information, I'll share it with
0:39you early if you pay me money.
0:42He's basically selling access to this information so you can trade off
0:46of it before anybody else gets it.
0:48How is there not outrage over what Trump is doing?
0:52'Cause it's actually an admission, too, that his posts can move the market,
0:56because that's the only added value.
0:59I mean, why would you, why else would you pay?
1:01Oh, these posts are so important, I need to pay extra to get them 10
1:04seconds earlier or 20 seconds earlier.
1:07Who cares?
1:08Except if you get them 10 or 20 seconds earlier, you can position yourself
1:12in the markets before everybody else
1:19Ship Show
1:24I'm gonna start off today's podcast by wrapping up some of the
1:27action in the markets this week.
1:31You know, I speculated in prior podcasts recently that the air may be
1:37coming out of the AI bubble, and we certainly got some more indication this
1:43week that that was in fact the case.
1:45Because the major stock markets all finished the week lower,
1:49led lower by AI-related names.
1:52They were some of the biggest losers.
1:55In fact, SpaceX, a stock that I talked about quite a bit on the last couple of
2:00podcasts, was one of the biggest losers.
2:03It was down about 5.5% today, and on the week now, SpaceX dropped 13.25%.
2:12It closed just below 124.
2:14The IPO price was 135, so even if you bought the IPO, you're down
2:226.7% if you didn't flip it, which obviously some people did, but
2:27pretty much everybody is now down.
2:29And in fact, if you bought the high, because two or three days after the
2:35135 IPO, SpaceX actually topped 225.
2:41If you bought that price, you're down 45% if you still hold your shares.
2:47And to me, again, this is indicative that the speculative froth is coming
2:53off the market, that people don't want to keep gambling on, on SpaceX.
2:58And I talked at length about the crazy valuation, not just, uh, the, you know,
3:04the trillion dollar plus market cap or whatever it was, two, three trillion,
3:09but the fact that it was trading at more than 100 times revenues and losing money
3:16And people are now getting nervous.
3:18And I pointed out that this is all happening with a tiny float.
3:21The float now is about 5% after the green shoe got exercised,
3:28uh, by the underwriters based on the initial demand for the stock.
3:32So that enabled the green shoe, where the underwriters can oversell it and then
3:36get extra stock to cover their shorts.
3:39Uh, so you have about 5% of the total company tradable.
3:45Elon Musk owns better than 40% personally, and his shares are locked
3:50up, I think, well into 2027, so his shares are not in the market.
3:55But between now and the end of the year, a lot of other, uh, employee-owned early
4:01investor shares become free trading.
4:04So between now and the end of this year, which is not that very long,
4:08we're gonna go from a 5% of the s- shares available to be sold to 40%, an
4:14eightfold increase in the supply of stock.
4:18That is a lot of overhang.
4:21A lot of people are already shorting SpaceX right now.
4:25Short interest is exploding.
4:26Now, I think that a lot of the shorts could be the people that own these
4:31shares that are currently locked up.
4:33What they may be doing is just shorting the stock now, and they'll cover
4:38when their shares are free trading.
4:39So they don't have any risk.
4:41If the stock goes up, well, they just get the current price, which
4:44they're happy to get because they got their shares, you know, for nothing.
4:48If they're employees, they just got issued stock.
4:51Uh, but it shows you a lot of people don't have the confidence to wait
4:54out the lock- the lockdown or lockup.
4:56They're selling now.
4:57They don't wanna take their chances on where the stock price might be.
5:01So the sentiment is turning 'cause remember, a lot of the hype that was built
5:07into SpaceX was AI, XAI, and all that.
5:12And, and so you're starting to see this across the board in that sector.
5:16I talked at length about it in my last podcast, so I'm not gonna
5:20repeat it again a couple days later.
5:22So if you didn't watch the podcast I did, uh, earlier this week,
5:27uh, go, go check that one out.
5:29And I went over all of the CapEx and the spending, uh, of these hyperscalers
5:35and why it's really unsustainable and the potential collapse that's coming.
5:39But just to look at the overall market, the Dow was down about
5:431.2% on the week, closed at 52,146.
5:51And the S&P, uh, down a little bit more because of the tech exposure, down 1.35%.
5:59Biggest loser on the week was the NASDAQ, down 2.2%.
6:03And the Russell 2000 only down .35%, so it, it held up the
6:09best of the major, uh, averages.
6:12You know, one of the stocks too that blew up today was Netflix,
6:16and it was down maybe about 7.5% on the day, something like that.
6:20But on the lows it was down over 11%.
6:22Its earnings are disappointed.
6:24Obviously, Americans are strapped, right?
6:27They can't afford to pay all the rising costs of all these streaming services.
6:31So Netflix was down about 8% on the week, so pretty much all
6:35the decline happening today.
6:36But Netflix is down 45% from its high too, just like, uh, SpaceX.
6:41It's just SpaceX got there a lot faster, uh, than Netflix.
6:46But, you know, Netflix was a high-flying momentum stock and,
6:50you know, the momentum is gone.
6:51And, you know, there's a lot of air, uh, beneath, uh, that stock price too.
6:56But gold, silver also down on the week.
7:01Gold down 1%.
7:03Gold spent a couple of days trading below 4,000, but it
7:07didn't close the week below 4,000.
7:09We closed at $4,017.30.
7:13It finished out the week with just over a $40 gain today.
7:18Silver, uh, fared much worse, down 4% on the week.
7:23Silver closed at 55.83, I believe.
7:26This is about the lowest weekly close I've seen in a while for silver.
7:30And the mining stocks did even worse or about the same as silver.
7:34The GDX was down 3.9% and the GDXJ down almost 5%, 4.8%.
7:42Once again, the markets have got this wrong.
7:45The markets are reacting, uh, to rising bond yields, uh, to the Fed, and I'm
7:52gonna get- I'm gonna go over, uh, part two of the Warsh testimony, uh,
7:58a little bit later in this podcast.
8:00But it's the idea that he is now this hawk that's gonna be tough on inflation.
8:06But also it was the real e- escalation of the war.
8:09You know, uh, the war really came back in focus this week, especially in oil prices.
8:17Oil prices closed up about 11 and a half percent on the
8:21week, closed at around $82.50.
8:25We're now up 22% so far in July for oil prices.
8:29Remember we were down 30% in June.
8:32We're already up 22% in July.
8:34So that also, uh, pushed down gold because, again, traders are
8:42assuming that war is bad for gold.
8:44Just because gold is lower now than it was when the war started, that's the
8:49new narrative, that war is bad for gold.
8:51No, it's not.
8:52It's always been good for gold.
8:54It always will be good for gold.
8:56The only reason that gold went down when this war started was because
9:01it went up so much before the war started, and part of that was due
9:05to the anticipation of the war.
9:07So this is a massive head fake that is creating an excellent opportunity for
9:12people who missed out on a huge rally to be buying both the metals and the miners.
9:18And yes, silver is way off its high of a $1.25-ish down to 55.83.
9:25But what I focus on is the fact that we're above 50.
9:28We had a massive breakout- You know, there was tremendous overhead
9:32resistance just under 50 going back to 1980, and then again in 2011.
9:38So the silver chart looks phenomenal, and I think in a couple of years
9:42you'll barely notice the drop from 125 down to 55, where we are now.
9:48Uh, so it is a great opportunity to be buying.
9:52Bond yields did, uh, ease a bit on the week based on the
9:58better-than-expected inflation numbers.
10:00And I talked about the CPI on my last podcast, better than expected.
10:05The same thing happened with the PPI.
10:08That came out better than expected, too.
10:11In fact, I got those numbers right here.
10:14Um, producer prices in June down .3% on the month.
10:20Year over year, only up 5.5 versus the prior month up 6.5.
10:26And the core up .2, uh, better than the expectation of up .4.
10:33And year over year, excluding food and energy, you have producer prices up
10:384.7% a- and that's better than the 4.9%.
10:43So that's what, you know, caused bond yields to move down a bit as the
10:48probability of a Fed rate hike went down a bit based on these numbers.
10:55But the yields are still very high relative to where we've been.
10:59The yield on the 10-year Treasury closed the week at 4.54, and the 30-year at 5.06.
11:07So these are still high yields relative to where we've been, not
11:11relative to where we're going.
11:13And where we've been, you know, going back to the '90s or the '80s or the '70s,
11:17they're, they're low compared to that.
11:18But in recent memory, post-2008 financial crisis, these yields are
11:24about the highest we've seen, and they're going to get a lot higher.
11:28Meanwhile, the news on inflation really isn't good.
11:31What drove the drop in producer prices, the same thing that drove
11:35the drop in consumer prices, it was a 30% decline in oil prices in June.
11:42Well, they're already up 22% in July, so why are we celebrating
11:46a big drop in oil prices that has already been largely reversed?
11:50And there's a good chance that it'll be completely reversed.
11:53But even more significant than that, look at the numbers that came out
11:58today on import and export prices.
12:02I've mentioned this many times on the podcast.
12:04These are much more honest numbers than the CPI or the PPI,
12:08'cause there's no substitution, there's no hedonic adjustments.
12:13The numbers are the numbers.
12:15And year over year- Import prices are up 7.1%.
12:23Export prices are up 10.2%.
12:26Compare that to the 3.5% increase year over year in the CPI Or, and
12:33a little bit hotter, as I just said, in the producer prices.
12:36These numbers are far more reflective of the price increases
12:42that Americans are actually paying.
12:44Obviously, if imports are up 7.1%, we buy a lot of imports,
12:49we're paying those higher prices.
12:52Maybe the CPI doesn't reflect it, but we're paying it.
12:56Now, you might say, "Well, we don't care about the export prices
12:59because we're not paying that, so it doesn't matter if they're up 10.2%."
13:03But most of what we export we also consume ourselves.
13:08Let's say we export a lot of agricultural products, wheat, corn, soybeans.
13:13Well, we also eat wheat, corn, and soybeans.
13:17Pretty much everything we export we also consume.
13:20And so if the price of what we're exporting is going way up, well, the
13:24price of what we're not exporting must be going up by the same
13:27amount because it's the same stuff.
13:30And this relates to the cost of producing stuff in America.
13:35So the cost of the stuff we make ourselves rose 10.2% year over year.
13:41The cost of the stuff that other people make for us that we buy
13:45and import only went up 7.1%.
13:47So that shows me that the inflation pressures inside the United States
13:53are even stronger than the inflation pressures outside the United States,
13:57because the costs of the stuff we make here are rising faster than the
14:02cost of the stuff that's made abroad.
14:04But this shows you inflation is a much bigger problem than what the
14:08government claims, and that's why it's such a big concern, right?
14:11That's why the public is so irate about inflation.
14:15That's why it is the number one economic problem, is because
14:18the problem has gotten worse.
14:20Donald Trump promised that prices would be coming down on day one, and instead
14:26of going down, they've gone way up.
14:30And that's also why this is all they're talking about at these hearings.
14:35That's why Congress and the Senate are berating the Fed over, what
14:40are you gonna do about inflation?
14:41How are you gonna stop inflation?
14:43Of course, I pointed out on the last podcast they're helping to
14:46cause it, so they've got no right to criticize the c- the inflation
14:51that they themselves had a hand in creating, because inflation is a tax.
14:56It is the way government spending is funded, and they're the
15:00ones that are voting for the huge deficits that therefore
15:04necessitate inflation to fund them.
15:07But again, the reason the government wants to misdefine inflation, claim inflation
15:14is rising prices and not an expansion of the money supply, is precisely so they
15:18can pretend that they're not the cause.
15:20So they can try to blame whoever is raising the prices- And not accept
15:26responsibility for the inflation they created that resulted in
15:32people having to raise prices.
15:35Anyway, I'm gonna get right to, uh, that, uh, hearing.
15:39We'll take a quick break, so don't go anywhere.
15:41I'm coming right back
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16:43All right, so actually before I get into what, uh, Kevin Warsh had to say, uh, to
16:51the US Senate, I wanna talk a little bit about what I heard our Secretary of the
16:57Treasury, Scott Bessent, say on Fox News.
17:02He was being interviewed by Jesse Watters, uh, and he was taking him on a tour,
17:08uh, uh, I guess of, uh, you know…
17:11A- and on the wall there, there were, um, framed old, uh, Federal Reserve
17:19notes prior to 1968 or prior to 1933 where you had silver certificates and
17:27gold certificates where they were… It was legitimate currency, IOUs redeemable
17:32on demand in gold or silver coins.
17:35And, and so Scott Bessent is walking, uh, down the hall, pointing this out to
17:41Jesse Watters and explaining to him, you know, how our currency changed, how it
17:46used to be backed by gold and silver, and how now it's just fiat currency, right?
17:50Which, which is true.
17:52Of course, it's all unconstitutional, uh, he didn't get into that.
17:55But the, the reason I'm bringing this up is he then told Jesse Watters that
18:02if any of these old notes still exist, right, the, the silver certificates or
18:07the gold certificates, he said, "If you have one of these, you can bring it to
18:11Fort Knox and you could get your gold.
18:14You could get your silver." He actually believed that these
18:19silver certificates are still good.
18:22They're not.
18:23How could he not know that?
18:24Now, I guess I can forgive the average guy or gal on the street might not
18:31know that, right, that the government repudiated these notes years ago.
18:37It was Roosevelt, 1933.
18:40Roosevelt said, "If you have a gold certificate, you can no longer get any
18:43gold. There, you can't get gold for your gold certificates." The silver
18:46certificates remained good until 1968, but after 1968, those were no good either.
18:54You could not get any redemption- So yes, you know, maybe your
19:00typical guy, especially somebody who went to a government school,
19:03like what the hell do they learn?
19:04So they might not know anything about the monetary history of the
19:08United States or the Federal Reserve.
19:10But if there's anybody in the Trump cabinet that you would think would know
19:16this, it's the Secretary of the Treasury.
19:19I mean, he's the guy that actually signs the bills, right?
19:23He, he, he's supposed to know about the history of our money, and he thinks
19:29he does because he's, you know, he's explaining it to Jesse Watters as if
19:33he knows, yet he is completely wrong about something that's so obvious.
19:38I mean, I, I can't even remember when I originally learned this, but I've known
19:42it pretty much my entire adult life.
19:44I'm pretty sure when I was still in junior high school I knew that you couldn't,
19:49uh, take these notes in for redemption.
19:52In fact, you know, when, when, um, Scott Bessent said if any of these things
19:57were around, there's lots of them.
19:59There are a lot of these certificates.
20:01You know, I went on eBay, and that, you know, you could buy them on eBay, and
20:04I saw one set that was framed, right?
20:07So you could buy it with the frame, and it had three silver certificates,
20:13two $2 bills and a $1 bill.
20:17So that means that you could get five silver dollars back in the day, right?
20:20You could have gone to the government, handed them that, uh, you know, a
20:24$2 bill, and they would've given you two silver dollars, right?
20:28You either get, you know, a Morgan silver dollar or a Peace dollar, right?
20:32You, you got real silver You could buy those three bills.
20:39They were selling them in the set.
20:41It was like, um, uh, $31, $31.95 or something like that.
20:46That… You know, that includes the frame and everything.
20:49Now according to Scott Bessent, you could take those $5
20:55to Fort Knox and they will hand you five silver dollars which are worth about
21:0060 bucks a piece, $300 worth of silver.
21:03According to, uh, Scott Bessent you can do that.
21:07I mean, it would be funny if somebody, like, had that video, put it on their
21:12phone, went down to Fort Knox with some of these old certificates and
21:16said, "Hey, I'm here to get my silver.
21:18Scott Bessent said I just have to bring them down and you, you'd give me my
21:21silver." Now of course a lot of people when I pointed this out on X, people were
21:26saying, "Oh, come on Peter, he didn't really say that." He really said that.
21:30That is exactly what he said.
21:31Go on my X feed, I, I reposted the, the clip.
21:36Um, you know, the person who posted it didn't even pick up on it.
21:39I reposted somebody else because in the same clip he said that, hey,
21:43he's been down to Fort Knox and all the gold is there, so don't
21:46worry about it, it's all there.
21:48Well, I'm not gonna believe anything he says.
21:50If he doesn't even realize that the gold certificates are no longer valid
21:54and you can't get redemption or, into silver certificates, you know, why should
21:58I believe him on what's in Fort Knox?
22:01But the person who posted it just focused on, on that point,
22:05hey, how do we believe this guy?
22:06But I, the minute I, I'm listening to it I'm like, "Oh my God, how could
22:10the guy not understand something so simple?" And then other people were
22:14saying, look, you know, uh, he was… He maybe… He slipped, he misspoke.
22:19No, he didn't.
22:21Listen to what he said.
22:22He was very clear.
22:24He believed that you could still get your gold and silver for these
22:30notes, that they were still good.
22:31Now maybe he's confused by the fact that they're still legal tender.
22:36Yeah, I mean if you've got an old $2 silver certificate you can still
22:40spend it, it's still $2, but you're not gonna get $120 worth of silver.
22:46And what that shows you is how much purchasing power the US dollar has
22:51lost because in 1968 if you were dumb enough to keep the s- paper,
22:57then you still got two bucks.
23:00But if you converted it and got your silver dollar, you
23:03got, you know, 60 bucks.
23:05The difference is the inflation, right?
23:08The difference is how much money the government has created, uh,
23:12between 1968 and now to pay for the Great Society, the War on Poverty,
23:18the Vietnam War, you know, and, and everything that's happened since, right?
23:21'70s, '80s.
23:22All, all these expenditures, that's why the dollar buys so little,
23:27because the government robbed so much of the purchasing power.
23:30But anyway, so let me move forward, uh, to the Kevin Warsh,
23:36um, uh, testimony, day two.
23:39This is the US Senate, right?
23:40The day before he spoke at the House.
23:44And a lot of what he said was, was repetitious, so I, I'm not
23:49gonna focus, uh, on a lot of what he said because I already
23:53discussed it on my Tuesday podcast.
23:56So again, if you haven't watched the Tuesday podcast, make sure
23:59and watch that because I went over a lot of, uh, this stuff.
24:04But there were a couple of new things that came up, um, in, in, in, in the Senate.
24:11And of course, you know, it started off with Elizabeth Warren and, you
24:14know, really chastising him for all the things that, that Trump is doing, right?
24:20All the grifts, all the way he's making money.
24:22And in fact, he just announced yesterday his latest grift.
24:26And again, nobody in the Republican Party is criticizing Trump for this, but he uses
24:34his own, uh, social media, Truth Social, and he exclusively posts on Truth Social.
24:43And when he posts on Truth Social, a lot of times what he posts
24:47moves the market because his posts specifically re- relate war, peace,
24:53tariffs on, tariffs off, right?
24:54He… A lot of his posts, you know, result in stocks going up or down, or
25:00oil going up or crypto going up, right?
25:03What he's now doing, he just announced that if you wanna pay extra-
25:09You can get those posts a little bit sooner than everybody else.
25:14What is the purpose of that?
25:16Why would you need a post 10 or 20 seconds before everybody else gets to see it?
25:22I'm not really sure the time lag, but it's something very small.
25:26Who would care?
25:27The only person who would care is a trader who's got, like, a program, an algorithm
25:32where he can program Trump's Truth, Truth Social account directly into the algorithm
25:39to immediately trade based on those posts.
25:43So Donald Trump is saying, "If you want basically what amounts to
25:47insider information, market-moving information, I'll share it with
25:51you early if you pay me money."
25:54He's basically selling access to this information so you can trade off
25:59of it before anybody else gets it.
26:01How is there not outrage over what Trump is doing?
26:06'Cause it's actually an admission, too, that his posts can move the market,
26:11because that's the only added value.
26:14I mean, why would you, why else would you pay?
26:16Oh, these posts are so important I need to pay extra to get them 10
26:20seconds earlier or 20 seconds earlier.
26:22Who cares?
26:23Except if you get them 10 or 20 seconds earlier, you can position yourself
26:28in the markets before everybody else.
26:31Now, of course, if a lot of people end up buying the tweets early,
26:35then, or the posts rather, that's going to reduce their value, right?
26:39But pretty much everybody who's trading off of this is gonna have
26:42to pay up, because if they don't pay up, they're gonna be too late.
26:45So this is a massive grift.
26:47I mean, could you imagine, is this what all the presidents
26:50are gonna do from now on?
26:51They're just going to post exclusively on a particular platform
26:55and then charge you money so that you can see the market-moving,
26:59uh, posts that they're making?
27:01Um, but so a lot of the criticism, you know, that, uh, Warsh got was
27:07actually Trump criticism, right?
27:09They were, they were trying to get Warsh to agree that Trump was a bad guy
27:14and he was doing all this bad stuff.
27:15And of course, he's not gonna do that, right?
27:17So he's, so they're just grandstanding.
27:19They're just talking, you know, for a soundbite and for their own constituents.
27:24But there were a couple of interesting, uh, questions and answers.
27:28So one of them, and this was, uh, Senator Kennedy A- a- and this was
27:34probably the, the best exchange.
27:36So Kennedy asked Walsh what caused inflation, what caused it?
27:42He said, "I want a quick answer." And Warsh responded, "Monetary
27:47policy caused it." Yes, perfect.
27:51He admitted that the inflation that we have was caused by monetary policy.
27:56Well, who was in charge of monetary policy?
27:58The Fed.
27:59So Warsh admitted that it was the Fed.
28:02It wasn't COVID, it wasn't Putin, it wasn't supply chains.
28:08He acknowledged that the Fed caused the inflation.
28:14Now again, as I said on the last podcast, the Fed didn't cause it by itself.
28:19The Fed had a partner in crime, and that was the US Congress
28:24and the president, right?
28:25Because it was fiscal policy that he monetized that caused the inflation.
28:32So Warsh is accepting the Fed's responsibility, yet Congress
28:37is not accepting theirs.
28:40But then Kennedy followed up, and it was a great follow-up.
28:44He said, "Okay, is…" He said, "Is inflation, the high inflation gonna
28:49be there permanently?" And Warsh said, "Nope, not on my watch." And
28:53then Kennedy said, "Okay, what are you gonna do about it?" Perfect.
28:58What are you gonna do about inflation?
29:00And then Warsh said, "I got three things that I'm gonna do about inflation."
29:05And then he listed the three things.
29:07Number one, he's gonna make sure that the markets know that the Fed is
29:12serious about bringing down inflation.
29:15Right?
29:15And so then, uh, Kennedy said, "Okay, so you're gonna talk about it." Exactly.
29:19They're gonna talk.
29:21They're gonna say, "You know what? We're serious about bringing down
29:23inflation." The second thing they're gonna do was take ownership of the
29:27inflation, which he basically did.
29:29We own it, we created it, and then say that the Fed has the
29:33power to do something about it.
29:34In other words, more talk.
29:37They're gonna own it, and they're gonna talk about what they're gonna do about it.
29:40So of the first two things that he's going to do, it's just talk about it.
29:46Now he gets to the third thing that he's going to do.
29:49He said, "We're gonna look at our tools." interest rates and the balance sheet and
29:55decide if we need to make any adjustments.
29:57So they're gonna talk and they're going to look.
30:00How does that count as what they're going to do about it?
30:04I mean, doesn't he know what he's gonna do about high inflation?
30:08If he understands that the Fed caused it and its money supply and artificially
30:13low interest rates, why doesn't he say, "We're gonna shrink the balance sheet.
30:17We're gonna jack up interest rates," 'cause that's the only thing he can do.
30:20Instead, he doesn't wanna do any of that.
30:23He's just gonna talk.
30:25He's gonna look, right?
30:26That's why I said it's all bullshit.
30:29Meanwhile, look at money supply, M2, uh, up 5.6% year over year.
30:35That is not a Fed that's fighting inflation.
30:37That is a Fed that is creating inflation.
30:39Now, we haven't got the money supply numbers yet under Warsh.
30:44We'll get that, I think, in another week or so we get, we'll
30:47get the first monthly, 'cause they release these numbers every month.
30:50And we'll be able to see, uh, what happened, um, under his, under his watch.
30:57But we have been able to see the balance sheet, right?
30:59The balance sheet, uh, is there, and it's been growing.
31:03In fact, the most recent week, the Fed's balance sheet rose
31:07another, uh, 7.4 billion.
31:11The balance sheet went from 6.736 trillion to 6.743 trillion.
31:18So the balance sheet went up.
31:21It's expanding.
31:22Why is he doing that?
31:24In fact, he admitted that he was uncomfortable with the balance sheet
31:30in its current size, and he said it's so big to him it looks more
31:34like fiscal policy, which it is.
31:37It was the Fed monetizing government debt, so he knows the Fed's balance sheet is too
31:42big, yet he continues to make it bigger.
31:45So he can talk, but he can't act.
31:50And again, if the markets are not figuring this out, it should be obvious because if-
31:57Uh, Walsh did what he needed to do, the markets would be crashing if he did it.
32:03That's why he's not doing it.
32:03That's why he set up all of these task force to study a problem
32:08when the solution is obvious.
32:09And, you know, I mentioned on the, the last podcast that, you know,
32:13the Fed has 23,000 employees, right?
32:16Whereas it had 40 when they first started in 2014.
32:19So the real inflation has been in the number of people that
32:23work for the Fed, but we went from 40 people to 23,000 people.
32:28Can't those 23,000 cover it?
32:30We really need five new task force?
32:33We really need to bring on even more people to try to figure out what to
32:37do about inflation when none of these 23,000 has any idea, we need more?
32:41And i- it's not rocket science.
32:44It's easy, and because it's easy, that's why they're setting up these task
32:49force, because they don't wanna do it.
32:52You know, the, the problem i- is not knowing what to do, it's the fact that if
32:56you do it, you create such a big problem.
33:00That's why the Fed has always chosen to create inflation.
33:05And I mentioned, yes, Warsh says inflation is a choice, and he is going to choose
33:10inflation for the exact same reason that all of his predecessors chose inflation.
33:16Anyway, we got a second commercial break.
33:18I got a lot more to talk about, so stick around.
33:20We're coming right back.
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34:53Now there are also questions about AI, and I thought the, the most interesting
35:00one had to do, uh, with the AI bubble.
35:04And I don't remember which senator asked him this question, but he said,
35:09"What happens if- That the companies that spent all this money, the
35:16hyperscalers, building out the, the data centers and AI, what happens if these
35:21investments never result in a profit?
35:23Which is exactly what I was talking about on my last podcast.
35:26So he asked Warsh what would happen, what would be the consequences for
35:31the US economy if it turns out that all this money, uh, was a waste.
35:36Maybe not necessarily a waste in that there's no use for it, but that the
35:40companies that spent all the money are not gonna generate a profit, and
35:46therefore they're gonna have a hard time repaying their debt, uh, on,
35:51based on all the money they borrowed.
35:52And instead of saying, "Well, that's gonna be a big problem," which, which
35:56it will be a big problem, he basically dismissed it by saying, "Well, I guess
36:01that could, uh, you know, inhibit their ability to tap the capital markets.
36:06It may make it harder for them to borrow more money." What do you mean may and if?
36:10I mean, of course it, it will.
36:12It, it will be a huge problem if these investments turn out to have been
36:17malinvestments, if it turns out that from a corporate point of view, uh,
36:23the, the money was basically thrown away and now the companies don't really
36:27have the ability to repay this debt.
36:29So I think he downplayed… Now, he could have said, "Look, I
36:32don't think that's gonna happen.
36:33These are smart companies.
36:35These investments are probably gonna pay off." But that wasn't the question.
36:38The question wasn't what do you think, are these investments sound
36:42or not, it was in the event that it turns out that they can't make any
36:47money, that they overinvested and they're gonna lose money, what kind
36:52of economic impact is that gonna have?
36:55And he pretty much shrugged it off like it's no big deal,
36:58and I think it is a big deal.
37:00Uh, and that's one of the reasons that I am concerned about it.
37:03And of course it means a lot of people are gonna lose a lot of money in these stocks.
37:07You know, what are, what is the impact gonna be there?
37:10'Cause these are the stocks that dominate the markets.
37:13Uh, this is where most of Americans have their money.
37:15Now, Trump is, you know, bragging about these Trump accounts.
37:18He talked about them again in his speech he gave last night about,
37:22you know, voter fraud, talking about how rich Americans are gonna be.
37:25All the kids are gonna be rich because they're buying stocks.
37:28Well, they're probably buying these stocks that are gonna collapse
37:30if it turns out that these, uh, hyperscalers wasted their money.
37:34But of course, you know, Donald Trump talks about how rich our
37:37kids are gonna be in 20 years because of these Trump accounts.
37:41No, they're gonna be broke because of 20 years of deficit spending.
37:45The debt that they're going to inherit is gonna vastly exceed
37:50whatever stock portfolios they own.
37:53Um, but anyway, I don't wanna get, even get into that topic.
37:55I don't have enough time.
37:56I got a bunch of things I wanna talk about on this podcast.
37:59And by the way, one other thing I wanna mention on AI, 'cause I hear
38:02a lot of people, you know, they, you know, 'cause the, the public is worried
38:06that AI is gonna cost them their jobs.
38:09And yeah, a lot of people are gonna lose their jobs, the jobs they
38:11have now because of AI, right?
38:15I mean, people lose jobs.
38:17I mean, when, when, when the telephone came around, the telegraph operator
38:22lost his job on the telegram.
38:24Now maybe he got hired, you know, as a telephone operator instead, right?
38:28He- you know, or the guy that was making, uh, you know, buggy whips,
38:33uh, he lost his job, but maybe he got a job at an auto company, right?
38:36So, you know, but there's always a transition.
38:39Uh, jobs are lost and, and jobs are created.
38:41So people are always saying that, yes, jobs will be destroyed, but
38:47even more jobs will be created.
38:48So they're trying to say that on balance, that AI will create
38:54more jobs than it destroys.
38:56That's probably not true.
38:57It will destroy more jobs than it creates, and that is a good thing.
39:02That is progress.
39:04What AI will do is mean that human beings don't have to work as hard to
39:11get the things that we need, because we'll have machines do the work for us.
39:15But what will happen is we'll have fewer better jobs.
39:20See, some people won't need jobs at all, or they'll work less.
39:23They won't have to work as much.
39:25They'll be able to enjoy more leisure because of increased productivity.
39:30So we'll destroy lo- jobs that we don't really need anymore, uh, and we'll replace
39:37them with other jobs that the AI can't do.
39:39But those jobs will end up being higher paying, so the people
39:43who still want jobs or need jobs will be able to get better jobs.
39:47But the truth is that some people who don't want jobs at all, more people will
39:51have that option, the option not to work, uh, because of the increased productivity
39:56of everybody else who still works, and in particular, the increased productivity of
40:02computers and robots and all those things.
40:04So that's the idea behind automation and progress is so machines work
40:10harder, so humans can work less, right?
40:14They work more, we work less.
40:16So that, that is a good thing.
40:17And overall, uh, that is what, that is what'll, what will end up being happening.
40:22But a couple of other things that I wanna talk about that happened, um, regarding,
40:28you know, my battles with the government.
40:31So first of all- I, I had a FOIA request.
40:36I mentioned earlier about Truth Social.
40:39Well, one of the things that Trump used Truth Social for was to call me out as
40:45a jerk, and a loser, and a Trump hater, and this is back in December of 2025.
40:52Because I went on Fox & Friends on Fox News, and I was critical
40:56of the president's economic policy, particularly inflation.
41:01And I said that prices are still rising, uh, the inflation problem is
41:06not going away, and, you know, I, I blamed, you know, the big spending
41:10of Trump and the big, beautiful bill.
41:12And so I said, you know, "Inflation is getting worse."
41:15That really pissed off Trump.
41:17And, you know, it was like 5:00 in the morning when I did this interview.
41:20Now, I was in Dubai, so it was m- you know, late afternoon for
41:24me, early evening, I forget.
41:25But the president was up at the crack of dawn, right?
41:28And he's watching Fox News and, you know, before he even gets out of bed,
41:32he's on Truth Social talking about what a, you know, a loser and idiot I am.
41:37And in this post he, um, claimed that I was totally wrong about prices, that
41:46they were actually falling substantially since he became president, which
41:50was, you know, blatantly not true.
41:53And then he publicly berated the booker.
41:56He was like, "Who the hell book, booked this jerk? I mean, what's
41:59the problem with that guy?"
42:00Like … And obviously that scared the bejesus out of the booker, right?
42:04'Cause now the President of the United States is pissed off at you, right?
42:08You, you don't, you don't like that, right?
42:09And, and, and so anyway, um I don't know, I forget, like a, a couple of
42:16weeks later I found out that this guy, Jonathan Copage of the Federal Housing
42:24Finance Administration, sent an email to a company that stores clips of TV
42:33interviews, and then if you need a clip, you call the company up, uh,
42:38Gravian, the company, great, good company, um, and you can get the clip.
42:45And so this guy, Jonathan Copage, sends an email to Gravian, um, and he
42:54says, "Hey, I want a copy of the, the interview." And, and this is the email.
42:59It says, "Hi there. I saw the president post about Peter Schiff
43:02being interviewed on Fox & Friends Weekend this morning. Could I get
43:05that interview?" Question mark.
43:07"Thanks, John." Now, I'm thinking, "Okay, I gotta, I gotta do a FOIA request.
43:14I wanna find out, like, like what they discussed, what was said," because I
43:19have not been invited on Fox News since.
43:22So that was in December of last year.
43:25This is July.
43:27And not only have I not been invited on, in fact, that appearance on
43:31Fox & Friends, I was on it a week or two earlier, so they, they were
43:34making a habit of inviting me on.
43:38And not only have they not invited me on since this, but nobody
43:43will return my emails over there.
43:45The guy that booked me or none of the people… I mean,
43:48I've emailed them a few times.
43:49I can't even get a reply, right?
43:52So I became concerned.
43:54You know, what did they do?
43:56They requested a copy of this interview.
43:59Then what?
44:00Like, what kind of discussions, why did they request a copy?
44:03What did they do after they requested a copy?
44:05So I do a FOIA request, and I specifically asked for all the emails from this
44:10guy or anybody else in the FH- Housing Administration That, that mention
44:17me, that mention Peter Schiff or Fox News, uh, from the date December 6th,
44:21right, when this email was sent, till the date of the request, which was,
44:25you know, uh, in January sometime.
44:28And about four months later, I get a reply from the government that
44:33says, "We searched all the records.
44:34There's no emails.
44:35There's no data.
44:36There's nothing that relates to you or Peter Schiff." Right?
44:40Case is closed.
44:41We found nothing responsive to your request.
44:43I replied and I said, "Well, that's impossible because I know of at
44:46least one email because I saw it.
44:49So how could you have found nothing when I know there's at least one?
44:53Can you go back and look?" Right?
44:56And, and there's… There was another guy, this guy Nicholas
44:59Jacobs, that was also copied on the Jonathan Coppage email, right?
45:03So two guys at the Federal Housing Finance Administration, you know, are getting…
45:08And I said, "You gotta… There- You must have missed something." So just a couple
45:12of days ago, so it took another couple of months, they, they, they contact me
45:17and they say, "Aha, okay, yep, here.
45:19We, we found, uh, e- an email that is responsive, and this is
45:25the only one there is, and that we consider the matter closed."
45:29So what they gave me was that exact email that I just read.
45:33So initially they didn't even have this one, and then when I said, "Well,
45:37I know of one," the only thing they sent me was the one that I already had.
45:42Now, that's not even believable because obviously the company emailed them back.
45:48They must have.
45:49I don't know for sure, 'cause I haven't seen a copy of that one.
45:52But I can only imagine, 'cause that's their business, right?
45:54They provide, uh, these clips.
45:57And so I'm sure they got the clip.
46:00They didn't produce that email.
46:02But then what did they do?
46:04So they ask for a, the clip of my interview, and then that's it?
46:09They never discuss what I said?
46:11They never talk about it amongst themselves?
46:13Neither of these guys?
46:15You know, uh, there's no way to believe that.
46:18Obviously they asked for this interview for a reason, and
46:23there must have been something.
46:24Now, what I think happened is that they contacted Fox News about
46:29this, and they got me banned.
46:32Now, it's possible that Fox just decided, "Hey, Trump doesn't
46:37like Peter Schiff," right?
46:39He called him a jerk and a hater.
46:40Let's just not book him anymore because, you know, we don't
46:42want to upset the president.
46:44You know, our audience loves the president.
46:47The president doesn't like Peter Schiff.
46:49Let's just not have Peter Schiff on.
46:50That's possible.
46:53Uh, but it's also possible because the, the g- the, the, the, you know, the
46:58Trump administration actively tried to get a copy of this following Trump's
47:03criticism, it's possible that they reached out and they said, "Hey, do us a favor.
47:09Don't let this guy on anymore.
47:11We, we don't like it.
47:12He's saying stuff that we don't like.
47:13We don't want the president's base that watches Fox News to hear this stuff.
47:18We don't want any negative talk about the economy.
47:21We don't want people saying that prices are rising," which in fact they were.
47:25We don't want people telling the truth when the president is
47:28telling all these lies, right?
47:29We, we… Especially, you know, at Fox because these are the people that need
47:34to believe the president's lies, so don't put somebody on like Peter Schiff.
47:37I was hoping that, you know, I might find something like that that would prove that.
47:41Of course, they probably either, either they destroyed all the evidence and so
47:45therefore it didn't exist, or they're just hiding it just like the IRS did.
47:50Remember, I had to sue the IRS to get them to comply with my FOIA request.
47:56So I would probably have to sue the, the FH- uh, FA or whatever, housing
48:01authority, to get this information.
48:03Because, you know, the, the government is a bunch of criminals, right?
48:06They do something illegal, and then they c- they do something
48:09illegal again by covering it up.
48:11And I know there are a lot of people who are saying, "Peter, I'm making
48:14a big deal about this. I'm being a crybaby." Look, I don't care.
48:17I, I don't really care if I'm not on Fox News again.
48:20I mean, I'd like to be on, but I mean, if I'm not on, I'm not on.
48:23It's the principle that bothers me.
48:26It's the fact that this is censorship.
48:29And, you know, the most important, uh, part of free speech is freedom to speak
48:35critically of the government, right?
48:36Th- 'cause normally the government doesn't care.
48:38If I wanna speak critically of my neighbors or just somebody else,
48:42they don't give a damn, right?
48:44Where freedom of the press is important, where freedom of speech is important,
48:47is where you're free to criticize your government, 'cause that's where the
48:51government can, you know, stop you, right?
48:53An oppressive government will clamp down on your right to complain,
48:57to point out what they're doing.
49:00And, and this is what is happening if the president was involved, if the admini-
49:04if they leaned on Fox News in any way to get them not to book me, that is a big,
49:11big problem And especially since one of the things Trump ran on was, hey, let's
49:17re- freedom of the press or free speech.
49:19You know, where all this political correctness and cancel culture, you know.
49:23Well, he's trying to cancel me, right?
49:26From, from speaking my mind.
49:28Political speech, the most sacrosanct speech that needs protected.
49:32I went on Fox and, and spoke politics, and now I can't go on, I think.
49:38Now, now maybe it's just a coincidence.
49:39Maybe they just haven't decided to invite me on.
49:42But they would… You know, why, why didn't they respond to my emails?
49:45I've sent them multiple emails.
49:47They don't bounce back.
49:49The email addresses are still valid.
49:51I guess these guys are even afraid to, to, to answer me.
49:54Now, I have been on Fox Business since then.
49:58Just one show, the Klaiman Countdown.
50:00So it's obviously not a complete ban all over all of Fox.
50:06But, you know, I'm clearly not welcome on Fox & Friends, and maybe
50:12not the entire Fox network because nobody else has contacted me.
50:16And in fact, the only person who has contacted me on Fox Business since
50:20then has been, you know, Liz Klaiman.
50:22So to her credit, I'm still on, and I guess she hasn't had any pushback.
50:27Um, but, um, this is a big issue.
50:31But the even bigger issue that I've been fighting with FOIA, uh, is about my bank
50:41And I just got some more explosive information.
50:46You know, it's coming out in drips and drabs.
50:50And these are emails that were previously redacted, and when I sued the IRS,
50:58the judge agreed with me that the redactions were inappropriate, that the
51:02exceptions that the IRS gave for hiding this information from me did not apply.
51:09And the judge ordered the IRS to release the documents without the redactions so I
51:16can actually see what was written there.
51:18And so I got a new batch of documents a couple of days ago, and
51:24I got some more explosive evidence that I, I did not know about.
51:31Um, and, and I posted it on my website, Nine Fraud.
51:37And, you know, if you have never gone to Nine Fraud, uh, this is
51:41where I'm putting all this stuff.
51:42And the reason it's Nine Fraud is because it's Nine in Australia, Channel Nine,
51:47uh, which is the network in Australia that ran the defamatory 60 Minute piece.
51:53Uh, and they also… The, the company also owns, uh, The Age and the Sig-
51:58the Mor- Morning Her- Herald, you know, and that's where this guy Nick McKenzie
52:02works, who basically, uh, did this defamatory sto- story, this news story.
52:08So, um, that's the name of it.
52:10But I, I have all this FOIA stuff up on there.
52:13So you gotta go there.
52:15After you- after this podcast, go to ninefraud.com and look at the exhibits.
52:23And the most recent one I just posted, it says, "Latest FOIA evidence: The
52:28ATO, Nick McKenzie, and the manufactured success of Operation Atlantis."
52:34And I learned some interesting facts that I kind of suspected, but I didn't
52:41have as much evidence as I do now, uh, that, that this in fact was the case.
52:49So first of all The, um, OCIF commissioner, there was an email
52:56from the OCIF commissioner about the rescheduling of the press
53:01conference to shut down the bank.
53:04And at that point it was scheduled for June 20th, and they kicked
53:09it back to June 30th because they had a scheduling conflict with,
53:15uh, the head of, uh, criminal investigation, um, Jim Lee at the IRS.
53:20He couldn't get down to Puerto Rico for the press conference on the 20th, so they
53:24postponed the action to the 30th, which again shows you there was no emergency
53:29that was worthy of a cease and desist.
53:31They were more concerned about the optics of the press conference than
53:35protecting the bank's customers.
53:37But also in that email, uh, Natalia Zacaria, who was the OCIF commissioner
53:43at the time, she said that they were gonna issue this cease and desist, they
53:49were gonna file it early that morn- early that morning, but they were gonna hold
53:53off on telling the bank until about an hour or so before the press conference
53:58because she wanted to make sure that I didn't have enough time to go to a judge
54:03to get a, uh, a, an injunction to try to stop, uh, th- this from happening.
54:09So think about that.
54:10She, she's deliberately withholding something that she knows she's
54:15gonna do, and she knows this is already weeks in advance.
54:19She knows that she's gonna file it But she doesn't want me to
54:22have enough time to react to it.
54:24Because in theory I could have stopped it because there was no reason
54:29to put the bank into receivership because it wasn't insolvent.
54:32No customers were at risk.
54:34In fact, one of the other interesting things about the over 500 pages
54:39of emails that I've read is not a single email mentions the fact
54:44that the customers were at risk.
54:46There's no emails that say, "Oh, we gotta do something to protect these
54:49customers. The bank is insolvent." No.
54:52There is no discussion at all.
54:54In fact, in an earlier email, not one of the ones I just got, but there
54:59was revealed to me a, a cost-benefit analysis that the, um, Puerto Rican
55:07government did on closing down my bank.
55:10So the cost, the downside of closing my bank was the loss of jobs, right?
55:15They were gonna shut down a bank.
55:16We're gonna fire people.
55:18So they, they, they were worried that, yes, some Puerto Ricans are
55:20gonna lose their jobs when my bank is forced out of business, right?
55:24So that was the negative.
55:25But what were the benefits?
55:27The benefits were all publicity, how it was gonna look in the media, how
55:31it was gonna look to their reputation, shutting down a bank accused of
55:35money laundering and tax evasion, how this would help Puerto Rico,
55:39uh, repair, uh, its reputation so it wouldn't be viewed as a tax haven.
55:44Because here they were shutting down this bank that was accused
55:48of tax evasion, money laundering.
55:50But nothing in the cost-benefit analysis focused on actually stopping
55:55money laundering or tax evasion.
55:57No, that wasn't there, putting a stop to crimes.
56:01Or, I'll begin, there was nothing in there about protecting the customers.
56:04And in fact- Not a single email really from anybody at the IRS or the ATO
56:11when they talked about the success of Operation Atlantis, the Atlantis
56:16investigation of my bank, it was always framed in media and publicity.
56:22How many articles were written about the Atlantis investigation
56:27and the shutdown of my bank?
56:28How many social media posts?
56:31And they, they, they, they basically, you know, w- listed them all.
56:35How many reposts?
56:36How many likes?
56:37I mean, they were so obsessed with publicity and using the shutdown of
56:43my bank to lend credibility to the J5 and to the J5 tax chiefs themselves.
56:51This was like their crowning achievement that they had shut down my bank even
56:56though my bank did absolutely nothing wrong, and they knew that it did
56:59nothing wrong because there's nothing in these emails that even suggests
57:04that my bank did nothing wrong.
57:07And you know, but what I did find out that I really didn't know is that
57:10the real driving force behind the entire thing was not the IRS, it was
57:16the ATO, the Australian Tax Office.
57:20They were the motivators.
57:21They got everybody else going.
57:23They basically wrote the entire script that everybody else wrote.
57:27In fact, Jim Lee's opening remarks that he read were prepared and written
57:32for him in Australia by the ATO.
57:36So why was the Australian Tax Office the one that was so concerned with it?
57:44They're the ones that had the idea for the global press conference.
57:47They wanted it, and they were, they were giving marching orders
57:50to everybody else with respect to how to promote it, what to say.
57:55You know, why?
57:56Nobody in Australia used my bank to evade taxes or launder money.
58:01Nobody.
58:02They, they accused, right, the 60 Minutes, uh, broadcast said that hundreds of
58:09Australians, hundreds, multiple hundreds, were using my bank to evade taxes.
58:15When I sued for defamation Nick McKenzie, 60 Minutes, Charlie Grieve,
58:21The Age, we asked them- Show me one.
58:26Give us one guy, one gal who used Europe Pacific Bank for tax evasion in Australia,
58:32and they couldn't come up with one.
58:34So what is this big victory?
58:36If not a single tax cheat was caught, if not one extra dollar of money came into
58:44the ATO, what the hell was achieved here?
58:48Nothing was achieved.
58:49But what they achieved was publicity, and that's what they wanted.
58:53Read all the stuff they wrote.
58:56They craved this publicity.
58:58They said it's very important.
59:00But also, one of the most important aspects of it, they specifically said that
59:05it was important that this global press conference was important to Nick McKenzie.
59:12They mentioned him by name more than once.
59:16We need to do this for Nick McKenzie because he has an interest in the story.
59:21Now, he didn't just have an interest in the story.
59:24He was a defendant in a defamation lawsuit where I sued him.
59:30And why did I sue him?
59:32I sued him because he accused the bank, or he accused me of using my bank
59:39to facilitate tax evasion and money laundering, which was not true, and he
59:44had absolutely no evidence to prove that was true I think what happened is he went
59:51to the ATO, his source, who likely leaked him the information in the first place.
59:56'Cause I also found out that this massive publicity campaign
1:00:00that happened in early January of 2020 on the day of action, right?
1:00:06They call it the day of action when everybody took action.
1:00:09That's the day that these two IRS agents came to my house
1:00:12and gave me a subpoena, right?
1:00:14And lied to me about who the target of the investigation was.
1:00:17But this was their day of action.
1:00:18But there was a big PR campaign around the day of action, but
1:00:22they never identified the target.
1:00:24They just said it was some bank in South America, which obviously it wasn't even
1:00:28my bank, 'cause I'm not in South America.
1:00:30But now that I've found out that all the PR came from Australia,
1:00:34they probably don't know South America from the Caribbean, right?
1:00:37Down… Uh, no, they're, they're nowhere near us, right?
1:00:39So they, they, they thought my bank was in, was in, was in, oh, Central America.
1:00:43They said Central America.
1:00:45Um, but they had all this publicity around the day of action, but
1:00:50they didn't mention my bank.
1:00:52But they mentioned some target that they suspected there was this massive
1:00:56money laundering, tax evasion, uh, thing going on, and, you know,
1:01:01they're gonna put a stop to it, right?
1:01:02This big day of action.
1:01:04Now, I think what happened is, you know, seven, eight, nine months into the
1:01:07grand jury investigation, when it became obvious that we did nothing wrong, right?
1:01:12There was a complete waste of time, right?
1:01:14They thought that the bank was facilitating tax evasion, money
1:01:17laundering, and it turned out that that wasn't the case, that we actually had
1:01:20very rigorous, uh, compliance, KYC, AML.
1:01:24So we probably had less tax evasion and money laundering going on at my bank
1:01:28than anyplace else, which is why not only was not a single employee of the
1:01:33bank charged with any crimes, but to my knowledge, not a single customer.
1:01:37Not one customer out of the thousands and thousands of customers that we had.
1:01:41Not a single one, to my knowledge, has been charged with
1:01:44anything, let alone convicted.
1:01:46Nobody.
1:01:47That shows you how tight the ship was that we were running.
1:01:51So I think what happened was when they found out- That we didn't do
1:01:55anything wrong, yet they made a big deal about, uh, the day of action.
1:02:00They, they, they, they gave some information to Nick McKenzie so
1:02:05he could do a story about the bank and how the bank was guilty.
1:02:08They had no proof the bank was guilty, so they could do nothing legally,
1:02:12but they figure, "You know what?
1:02:13Let's, let's get some publicity.
1:02:15Let's just get some newspapers or this report- reporters to come
1:02:18out and talk about this great investigation and how we've got this
1:02:22bank that's doing all this bad stuff.
1:02:23We can't prove it, but the media doesn't need any proof.
1:02:26They'll just allege it.
1:02:27They'll just say it." So Nick McKenzie, they do the 60 Minutes broadcast,
1:02:31they do the articles, they get The New York Times, they get Matt Goldstein
1:02:34in on it probably to get extra credibility is, um, what I'm thinking.
1:02:37And they accuse me of tax evasion, money laundering.
1:02:40They really play up the J5.
1:02:42These guys are great.
1:02:43They're super cops.
1:02:44They're on the job.
1:02:45They busted this bank.
1:02:46They're putting a stop to tax evasion and money laundering, right?
1:02:49What they didn't count on is I file a defamation lawsuit.
1:02:54Uh, and, and then nothing happens to the bank.
1:02:57Nothing happens because the story is false.
1:03:00They're gonna lose the defamation lawsuit.
1:03:02So I think Nick McKenzie goes to the ATO, goes to his contact, and say,
1:03:07"Hey, you gotta help me out here.
1:03:09I mean, I, I, I'm stuck.
1:03:11I ran your story.
1:03:12We said the guy was guilty, and nothing has happened.
1:03:15Something needs to happen to this bank.
1:03:17You gotta do something.
1:03:18I need some evidence to defend against this defamation lawsuit
1:03:22'cause otherwise I'm gonna lose.
1:03:23You gotta do something to prove that I was right." And I think what happened
1:03:28was the ATO reached out to the IRS and pressed them to do something.
1:03:36Now, they obviously didn't say, "I, we need to do this to help Nick McKenzie
1:03:42defend himself against a defamation lawsuit." They probably said, "We,
1:03:46we just want it for the publicity.
1:03:48We want some finality here.
1:03:49In fact, on many occasions in the emails, they talk about, you know, phase two, the
1:03:57debanking of Euro Pacific Bank, that it's important that we have this debanking.
1:04:01Of course, this is months before it actually got debanked.
1:04:06Uh, but it was… They, they said they wanted to have some concrete results.
1:04:11They wanted something tangible and real to show for Operation Atlantis.
1:04:17But Operation Atlantis was a complete failure.
1:04:20They had nothing concrete to show, and so they needed to
1:04:24get OCIF to shut down the bank.
1:04:29Now, one of the things I also found out in this new batch was that the IRS originally
1:04:36reached out to OCIF about the bank in, um, December of 20- or no, January of 2021.
1:04:49Now, I had thought that the earliest they spoke was in December of 2021.
1:04:56It actually was January.
1:04:58I didn't know that until just the other day.
1:05:00But the earliest emails I've seen so far are from April of 2022, and that's because
1:05:07the only FOIA request that they've so far complied with is the one that specifically
1:05:13dealt with the press conference.
1:05:15So clearly they didn't start pranning, planning that press conference
1:05:18until April, and that's why my email production started in April.
1:05:24But obviously before they planned the press conference,
1:05:27they had to shut down the bank.
1:05:29I haven't seen any of those emails yet, but I'm gonna get them because the
1:05:33judge ordered the IRS to produce them.
1:05:37Because I had two FOIA requests.
1:05:39One was almost completely redacted, and I got the judge to order the
1:05:44government to remove the redactions so I can actually read what was produced.
1:05:48That's the 500 and some odd pages I got.
1:05:51But my second request asked for all the records that mention me, Euro Pacific
1:05:59Bank, uh, Operation Atlantis, going back to, uh, the, um, uh, the, the
1:06:07day that they first started, right?
1:06:09The day of action in January of 2020.
1:06:13They didn't give me any of those records.
1:06:15The government claimed, "Well, that's too broad.
1:06:16We can't figure out what you mean.
1:06:18We're gonna give you nothing." When I sued, the judge
1:06:21said, "Oh, that's bullshit.
1:06:23It's obvious what he wants.
1:06:24Give it to him." So I'm gonna get all this, but basically what it
1:06:28really means is that had I never filed my defamation lawsuit, had
1:06:34I just left well enough alone, the bank never would've been shut down.
1:06:39I would've been able to sell it.
1:06:41Because the only reason the ATO pressured the IRS to get OCIF to do
1:06:48something was to help Nick McKenzie defend against my defamation lawsuit.
1:06:53'Cause I think absent that, they would've left well enough alone, right?
1:06:58They got the 60 Minutes broadcast.
1:07:00It was already out there.
1:07:02They already talked about how great the, the J5 was, um, and all this stuff.
1:07:08And, you know, that was out there.
1:07:10They got all that publicity.
1:07:11They didn't really need the finality.
1:07:14And in fact, the IRS didn't need it.
1:07:16The, the, the, uh, the British didn't need it.
1:07:19The Canadians didn't need it.
1:07:20It was all Canada.
1:07:21Canada was the only country of the J5 that was really not only pressing
1:07:27for it, but leading the charge, scripting the entire narrative.
1:07:31Why was that?
1:07:33Because that's where Nick McKenzie was was.
1:07:35So it wasn't just publicity for the ATO, for the IRS.
1:07:41The bank was shut down to bail Nick McKenzie and 60 Minutes
1:07:46out of the defamation lawsuit.
1:07:49Because the problem, 60 Minutes, they introduced the action against
1:07:55the bank as their only evidence.
1:07:58That was supposedly the proof that, um, my defamation lawsuit was wrong.
1:08:04Because they said, "Look, the bank was shut down.
1:08:07It was guilty of tax evasion.
1:08:08It was guilty of money laundering.
1:08:10Schiff is a criminal.
1:08:11We were right.
1:08:12He was the mastermind behind the whole thing." But the problem was the judge
1:08:17actually looked at what was said, the specific reason given for shutting
1:08:23down the bank, which of course was a pretext, but that was solvency.
1:08:28It was internal controls.
1:08:30And in fact, the OCIF commissioner said at the very press conference
1:08:35that they tried to use as evidence, the OCIFs, uh, commissioner said
1:08:40that no evidence of money laundering or tax evasion was found, that the
1:08:44bank was being shut down specifically for not having enough capital.
1:08:49And of course, the irony was the reason the bank didn't have enough
1:08:53capital is because it lost so much money as a result of the bad
1:08:57publicity generated by 60 Minutes Australia, The Age, The New York Times.
1:09:04It was the leak of the information falsely accusing the bank of committing
1:09:09crimes that the bank was ultimately exonerated of committing that caused the
1:09:15very financial problem that resulted in the bank supposedly getting shut down.
1:09:20The media, which enabled the J5, the ATO, to claim credit.
1:09:25They said, "Look, this bad bank was shut down." Yes, it was shut
1:09:29down because you destroyed its reputation with a bunch of false
1:09:33allegations that you could not prove.
1:09:36If there was any evidence that the bank did anything wrong,
1:09:40somebody would've been charged, but nobody was charged with anything.
1:09:44Nobody even talked about what the bank did wrong.
1:09:47In fact, one of the other things that I found out, uh, in the most
1:09:52recent production, Jim Lee- That was written by the ATO on the morning,
1:10:00the morning of the press conference.
1:10:01He had no idea what the bank did.
1:10:04He sent an email to the, the, uh, publicity guy at the IRS and said, "Okay.
1:10:09Hey, what exactly did this bank do wrong?
1:10:12Give me a couple of examples of how they helped the customers launder
1:10:16money and evade taxes." And the answer is still, uh, redacted.
1:10:21So I'm pressing the IRS to release the answer, but it was
1:10:24very short, like a paragraph.
1:10:26He also asked about six or seven other questions, but the IRS agent said, "It's
1:10:31better if we discuss this over the phone."
1:10:34Why did he wanna discuss it over the phone?
1:10:36Because he didn't wanna put in writing that the bank did nothing
1:10:38wrong, that there was absolutely no evidence, let alone they couldn't come
1:10:42up with one example, let alone two, that the whole thing was a charade.
1:10:46It wa- it was a farce.
1:10:48It was a PR event, that the bank was being framed.
1:10:51I guess he didn't wanna put that in writing.
1:10:54So he told Jim Lee, "Hey, let me- let- I'll talk to you about it." Right?
1:10:57Uh, and so I, I got all this new information.
1:11:01I'm gonna get more.
1:11:02Again, go to ninefraud.com and, and, and check this out.
1:11:06And by the way, you know, I apologize, this last bit, bit of the, the podcast
1:11:11is all broken up because I ran out of memory in my computer, and so
1:11:15it's screwing the whole thing up.
1:11:16I have to keep starting and stopping it.
1:11:18Uh, so I gotta figure out, you know, what's wrong here so I
1:11:20can, you know, ele- erase some files so I can do this next time.
1:11:24But anyway, if you like the, uh, the video, make sure to give it a
1:11:28thumbs up, um, uh, comment on it.
1:11:32If you're not watching on YouTube, go to YouTube, subscribe to the YouTube channel.
1:11:37Have a great weekend, everybody.
1:11:39I'll be back again next week with more, uh, podcasts on
1:11:43the Peter Schiff Show podcast.
1:11:44So bye for now

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