Peter Schiff “What Are the Rich 0.1% Doing Before the Next Financial Crisis”｜EP46｜Bonnie Blockchain

0.031 - 20.031 Peter Schiff

We don't need inflation. All these stories that the economists tell to try to justify deliberately creating inflation, it's all wrong. The government has brainwashed people into believing that inflation is a good thing because the government benefits from it. The government steals through inflation. Inflation is really like a hidden tax and they should be raising rates, they're cutting rates.

20.011 - 36.276 Peter Schiff

We're pursuing a very inflationary monetary policy because we have so much debt. They're trying to bring down mortgage rates. They're trying to bring down long-term bond rates. They need to create inflation to do that. So they debased the value of the dollar. Foreign central banks can see this. They're getting rid of their dollars. What are they replacing their dollars with?

36.296 - 38.8 Peter Schiff

They're replacing it with gold. They're moving away from U.S.

38.82 - 41.344 Peter Schiff

dollars and U.S. treasuries to gold.

41.364 - 42.846 Bonnie

It's the debate with CZ.

43.366 - 65.897 Peter Schiff

People confuse store of value with price. Price is not value. Price is what you pay, right? Value is what you get. Bitcoin is nothing, has nothing in common with a physical, valuable, precious metal. What they say is that inflation is necessary to have a prosperous economy. We have to make sure prices go up. Prices went down, nobody would buy any, which is bullshit because...

88.34 - 93.265 Bonnie

You called out the 2008 financial crisis. Are we seeing the same thing now?

93.505 - 95.327 Peter Schiff

We're in a bigger bubble.

114.511 - 128.248 Bonnie

I am with Peter Schiff right now, and I am so excited because you're one of the most requested guests. People love you. Just read the comment section. People are talking about your style, your insights, also your skin and everything.

145.047 - 151.622 Bonnie

And I am intrigued. Why is the topic tokenized gold versus Bitcoin instead of gold versus Bitcoin?

151.67 - 181.407 Peter Schiff

Well, it's the origin of how this came about. And I think it's more of a conversation, obviously a bit adversarial, but not like a formal debate. There's no moderator. It's just kind of the two of us having a discussion about it. But the way it evolved. So I was doing an interview on another popular crypto podcast and the topic of tokenized gold came up.

181.505 - 197.623 Peter Schiff

And so I said, yeah, you know, I certainly think that that's a viable use of blockchain. Ironically, it's probably one of the few things that could actually come out of it would be a way of making gold an even better medium of exchange.

229.362 - 246.882 Peter Schiff

But with T-gold, you just buy whatever, you know, $100, $1,000, you know, $5,000 worth of gold or silver. And we don't deliver it. You buy it and it's, you know, segregated, but we vault it and have it stored for you. So you just have, you know, whatever quantity you want.

248.009 - 269.832 Peter Schiff

Ultimately, what I'm working on is in addition to being able to withdraw your gold physically, you'll be able to withdraw it in the form of a token. And that token basically just represents your ownership of that gold. But once you have it in the form of a token, you can transfer it to somebody else. Now they would own the gold instead of you.

270.293 - 288.177 Peter Schiff

And you don't have to transfer all of your gold, whatever fraction you want, because it's all divisible into tiny increments, just like Bitcoin would be. So I mentioned I'm developing this and, you know, also I'm going to have it so, you know, people can get a debit card, credit card tied to their gold account.

330.029 - 358.982 Peter Schiff

Right. So CZ saw the interview. and commented that, oh, this isn't going to work because it's like a trust me, bro kind of concept. Because he said, you have to trust the third party with your gold. So it's not going to work, right? Because Bitcoin is trustless. You don't have to trust any third parties. You just own your Bitcoin. And so when he said this,

359.182 - 380.469 Peter Schiff

My initial reaction was, who's he kidding? Because Binance is a third party. You put your Bitcoin on a Binance platform, you're trusting Binance. So people trust him all the time with their crypto. So how is that different than trusting a company? Like a Brinks, for example, to hold your gold.

380.53 - 408.834 Peter Schiff

They've been doing it for 160 years and nobody's lost any gold with Brinks. So you can trust third parties. But also, I know that one of the biggest things in crypto right now is stablecoins. And what's a stable coin? Well, that's where you have a third party who you trust with your dollars or your euros or your yen, whatever your token is stabilized to. Most of them are dollar tokens, right?

409.855 - 436.799 Peter Schiff

Like Tether, you're trusting Tether. When you buy Tether's token, you've trusted a third party that they have the dollars to back up your token. So if he's going to say that, well, tokenized gold is no good, well, then then neither are stable coins. He's basically throwing the whole industry under the bus at the same time he's criticizing tokenized gold. So I pointed that out.

436.839 - 452.526 Peter Schiff

I said, look, I'm happy to debate this with you. I love to debate tokenized gold versus Bitcoin, not just regular gold, because it was the concept of tokenized gold that he was that, you know, he was critical of and said, I had it wrong.

453.427 - 467.666 Peter Schiff

And so he said, yeah, let's do a debate. And I'm like, great. And I'm trying to figure out when, you know, all of a sudden, like everybody wants to host it. All these podcasters, big podcasters, we want to host the debate. We want to do the debate. Everybody wants to do the CZ shift debate.

468.207 - 488.119 Peter Schiff

And then CZ ends up saying, hey, why don't you, why don't we have the debate in Dubai at my, you know, blockchain week is coming up. which is not what I had in mind when I threw it out there. I was going to just do something from my home, you know, on the Internet, like, you know, some other like, you know, crypto debates I've had.

489.441 - 500.901 Peter Schiff

But since he extended the invitation and was gracious enough to, you know, accept the debate, I wasn't going to, you know, refuse it. So I came out here.