Every Time This Happens, the Economy Cracks… And Its Happening Now

Every time gold prices outpace the stock market, two things have happened. Number one, something in the economic system cracks. And number two, some people become incredibly wealthy, and we're seeing it happen right now. Take a look. In the last 100 years, we've only seen gold prices outpace the stock market on five different occasions. Number one was around the early 1930s, which is of course when the Great Depression happened. Number two was in the early 1970s. This was when we saw the Great Stagflation, super high inflation, wages that were falling, and a deep recession for the United States. Number three was around the year 2000, when the dot-com bubble burst, and people were concerned about the economy and the dollar. Number four was around the 2008 time, when the entire great financial crisis happened, when the housing market crashed, and people were concerned about hyperinflation because of all the quantitative easing. So gold prices outpace the stock market. And then number five started in 2020 during the pandemic. And you might say, well Jaspreet, we already saw that crack. The pandemic led to the economy shutting down, so people were concerned then. Well, here we are in 2025, and gold prices are now outpacing the stock market again. History doesn't exactly repeat itself, but it does rhyme. And what we've learned is that every time in history, gold prices have outpaced the stock market. This meant something bad for the economy, and some people became incredibly wealthy. So my goal in this video is to go over what's actually happening in the economy, and how you can find the investment opportunity for yourself. Now to really understand what might be coming, we have to take a look at history. In the early 1900s, we ran on the gold standard here in the United States, which meant gold was money. But that first started to change during this time period, because we ran into a big financial crisis. People were running out of money. Businesses were going bankrupt. So people were concerned. And what did they do? They started to pull their money out of the banks. Bank after bank across the country is hit by panic withdrawals. Depositors swarming to snatch out what savings they have left before it's too late. Banks by the hundreds, by the thousands are forced to close. The whole financial system quakes and totters. And again, money was gold. So people were pulling their gold out of the banks, and they were hoarding this gold in their houses because they were concerned about all the bank runs. Remember, during this Great Depression, there was no FDIC insurance. So if people pulled their money out of the banks, banks would run out of money, and they would collapse. So people were scared. They were hoarding their gold, and the United States government needed money. They needed money to pay bills. They needed money to help stimulate the economy. And remember, money was gold. So that was when the president at the time, Franklin D. Roosevelt, signed Executive Order 6102, which made it illegal for you to own more than $100 worth of gold. If you owned more than $100 worth of gold, you were required to sell that gold to the And if you did not sell that gold to the government, you were going to go to jail. And fun fact, as soon as the United States government bought your gold for $20.67 an ounce, they immediately then revalued your gold for $35 an ounce. That way, the United States government had more wealth to help pay back the bills. After that happened in 1933, our money went from being gold to being money backed by gold. It was a contract that said, hey, this $100 bill that you have is a promise that is backed by $100 worth of gold. But then that changed in 1971. The United States government now had a lot of debts. We had a lot of foreign countries that wanted to be paid by the United States government because they had lent us money, and we didn't have enough money to pay them back. And in order for us to create more money, we needed more wealth. And remember, our money was backed by gold, so our government couldn't just print more because we needed more gold to justify printing more money. And that was when, in 1971, Richard Nixon temporarily took the United States dollar off of the gold standard. That way, the United States government could now print an infinite amount of more money. I have directed Secretary Connolly to suspend temporarily the convertibility of the dollar into gold or other reserve assets. And that's what happened. We printed more money. We then paid off all of our debts. And all the problems were solved. Except not really. Because that then led to the inflationary crisis that happened because we printed so much money without having more wealth, which made the dollar effectively less valuable, causing the prices of things to go up while wages were not growing and the economy was slowing down. And that also led to now our dollars no longer being backed by gold, which is why today our money, or what we call money, is not backed by gold or any other precious metal. It's backed by a promise that our United States dollar has value because it's backed by the strongest economy in the world. It's backed by the strongest government in the world. And this is why people get so concerned when gold prices outpace the stock market. Because when gold prices go up, it's not because the value of gold is going up. It's because the value of the dollar that's buying the gold is going down. People are buying the gold because they're concerned about something. Compare that to something like Amazon. When Amazon stock price is going up, it's generally because they're producing more value. It's generally because they're trying to make more profits, because people are excited about the future products that Amazon is going to create. They're excited about the growth that Amazon might have. That's why Amazon stock would go up. Why would gold prices go up? Because people are scared. Now, to understand the concerns that people might have, we have to take a look at what's been happening with the dollar, or specifically the creation of the dollar, especially over the last few years since this time. One of the simplest ways to understand this is by taking a look at a national deficit. What that means is taking a look at the United States government's spending of dollars that they don't have. Because remember, the United States government has one form of income. It's tax dollars from taxpayers, people like you and me. But what we've been seeing happen, especially over the last number of years, is that the United States government has been spending a lot of money that they don't have. And when the government spends money that they don't have, they have to borrow that money. Where do they borrow that money? They can borrow the money from people like you and me, they can borrow the money from foreign countries like Japan and the United Kingdom, or they can borrow that money from our central bank, the Federal Reserve Bank. Now, although they're called the Federal Reserve Bank, they're actually not a bank because you and I can't go there to deposit money. They're actually not a reserve because they're not sitting on any cash reserves and they're actually not federal. It says so on their website. But what the Federal Reserve Bank can do is they can print money and lend it to the United States government. Now, remember, the Federal Reserve Bank would be printing money without having more wealth and so when you create more of this money out of thin air, what happens to the value of each individual dollar? Well, it goes down because we're just creating more money without creating more wealth. So let's go over what a national deficit has looked like from 2019 to 2025 and I'll talk about now what this means for you as an investor because, well, it becomes very important for you to understand this from an investment standpoint. And by the way, for those of you that are investors or want to become an investor, I have a free investing masterclass where I walk you through how you can get started as an investor and find hidden investment opportunities before everybody else. I'll show you the exact framework that my firm and I use to research investment opportunities before they hit the headlines. And when you register for this masterclass, you're also going to get access to market briefs, which is my newsletter for investors, completely free as a complimentary bonus. So if you want to get the investing masterclass and market briefs all for free, all you have to do is register. And I have that link for you down in the description below. In 2019, our national deficit was $984 billion. In 2020, during the pandemic, it shot up to $3.1 trillion. 2021, $2.8 trillion. 2022, $1.4 trillion because things finally started to normalize. But check this out. By 2023, it jumped back up to $1.7 trillion. 2024, $1.8 trillion. And in 2025, we don't have the final numbers, but it's expected to be something around $2 trillion. This is where the key thing that I want you to understand is that the value of the debt is not what's important. It's the ability to pay back the debt, and it's the real value of the debt relative to the value of your assets. Because if you have $100 worth of debt, is it a lot or a little bit? If your net worth is $2, that's a lot of debt. If your net worth is $1 million, now $100 worth of debt is not that much. And so if the United States government has $38 trillion worth of debt, the reason why it's such an issue right now is because number one, our fastest growing expense in the United States is interest payments because we have so much debt. And the second reason why it's so important is because our national debt is growing way faster than our national wealth. And this is where investors are getting concerned. And this is where now the Trump administration is looking to make some changes with gold, looking to make some changes with crypto to help alleviate some of these concerns for investors and to alleviate some of these concerns about the economy. Remember I said a few minutes ago, where in 1933, it became illegal to own gold. And FDR ordered that you sell your gold to the United States government for $20 and some change. And after the United States government seized that gold, they revalued that gold at $35, which meant the United States government bought gold and then immediately became wealthier because they changed the value of their gold on their books. Well, that could potentially happen again. It hasn't happened yet. But in August 2025, the Federal Reserve government published an article on their website, revealing the idea of doing another gold revaluation. What the article said is that they are considering quote, which is currently valued at $42.22 per troy ounce. So if we do some quick math, if we have 261 million ounces of gold, you multiply that at $42.22 per ounce. That means we have $11 billion worth of gold on our balance sheet. And this is where the Federal Reserve Bank is saying, what if we just change the value of our gold? In the article, the Fed proposed $3,300 per troy ounce. So now we can do the same math equation. Let's assume we have the same amount of gold, which hasn't been verified. But if we assume that we have the same amount of gold, we change this to $3,300 per ounce. Now, we don't have $11 billion of gold on our balance sheet. Now, all of a sudden, we have $860 billion worth of gold on our balance sheet. We now immediately became wealthier by doing nothing except changing the value of our assets. And hopefully the goal here is if we do that, it makes the United States look $800 billion wealthier, which will hopefully ease some of the concerns of investors about our national debt. Now, of course, this does have a risk though, because if the value of gold falls below this, now investors are going to be even more concerned because that means now we're underwater on our assets. And we know that gold prices don't always go straight up. Take a look. Between 2008 and 2012, gold prices skyrocketed when people were worried about inflation and the economy crashing. But then in 2012, when those fears went away, the economy recovered, gold prices crashed. They didn't hit new record highs until 2020, almost 10 years later when the pandemic hit and those same concerns about the dollar came back. Remember, gold as an investment is not producing value the way that a stock does. Nike is working to produce shoes. McDonald's is producing burgers and building real estate. Amazon is selling products in AWS. Gold is just sitting there looking back at you. This is why gold is considered a debasement trade. It's because people generally buy gold when they're concerned about the value of the dollar dropping. They buy gold when they're concerned about the economy. They buy gold as an insurance. And when that insurance, that hedge, that protection is growing faster than the value of other assets, that's where people get concerned. We're also seeing the Trump administration make some changes in the cryptocurrency side of the world to help make our national debt not look as bad. In March 2025, President Trump signed an executive order which established a new strategic Bitcoin reserve and a broader digital asset stockpile. What this meant was not that the United States government was going to go out and start buying Bitcoin. Instead, when the United States government were to seize crypto assets, instead of selling off this Bitcoin that they used to do, they're just going to keep owning that Bitcoin. Because now if they have this Bitcoin on their balance sheet and Bitcoin goes up in value, well now the United States government looks more wealthy because they have more assets on their balance sheet. Now the reason why this matters is the government says that over the years we have seized something around 170,000 Bitcoins which we have sold off. But now if we didn't sell it off, we kept those Bitcoins, it'd be worth a whole lot more money because when Bitcoin is worth $80,000, $90,000, $100,000, it's worth a lot more. And this is where the government says we're going to start keeping that Bitcoin because if Bitcoin continues to go up in value, well that's going to make the government more valuable and if our assets are higher, our national debt does not look as bad. But of course there's a concern because if we keep that Bitcoin and Bitcoin drops in value, well if we value that Bitcoin on our books at just say $100,000 a coin and Bitcoin falls to $60,000 a coin, well now we look underwater on those assets especially if we've borrowed against those assets. Now what does this mean more specifically for you? Should you buy gold? Should you buy crypto? Well maybe. Personal finance is personal and yes there's a place for gold in a portfolio, there's a place for crypto in a portfolio and you're going to have a different ratio and percentage than I do. But the real thing that I want you to understand here is that the trend is not changing. The United States government is spending more money than we generate from taxes. That has an impact because anytime we create more money that makes one person rich. It's not the workers, it is the investors. Period. How do I know? Well we can just take a look at the last five years because what we've seen is that investments have grown way faster than wages. We've seen the median household income grow by less than 25%. It's actually estimated to be around 22% over the last five years while the stock market has grown by around 90%. It's the same trend that we've seen for the last five decades. So if you want to become wealthy in this economic system you cannot do it based off your salary alone. Period. I'm not saying it's bad to work a job, it's not bad to earn a salary but you've got to convert a piece of that salary into assets. What are assets? Stocks. Real estate. And by real estate I don't just mean the house that you live in, I mean rental properties. It could be crypto, it could be gold. There are many places for you to invest this money but you have to own these assets because as more money gets created, inflation happens and when there's more inflation, consumption becomes more expensive. That means you go to Amazon, you spend more money to buy things. You go to Kroger, you spend more money to buy the guac. You go to Walmart, you spend more money to buy whatever you gotta buy. And that means more money doesn't just go into the hands of the workers because workers get a small percentage increase the more dollars go into the hands of the investors, the owners. And this is why it's so important for you to become an investor. And it's going to become even more important as we continue to spend more money. And what we see is that this trend of spending more money is not going away. In fact, it is amplifying which is why it becomes exponentially more important for you to become an investor. And I know it's difficult during a time where, yeah, it's already tough to pay your bills but you have to if you want to build wealth in this system. Again, if you want more resources on how to become an investor, I have my free investing masterclass for you down in the description. But the whole idea here is you have to own assets that are going to benefit from money being created, period. Because if you just hold onto your salary, you just hold onto your savings, those things are losing value. The $100 you have in the savings account, the $50,000 you have in your bank account, it doesn't have as much buying power next year as it does last year. I mean, just think about what you could buy in 2019 versus what you could buy today with $1,000. It's a pretty big difference. That's going to continue happening. It's happened for decades. It's going to continue happening into the future which is why you have to convert your extra savings into investments. That way you can protect your wealth but also grow your wealth. In this economic system, the way you become wealthy is by becoming an investor. And unfortunately, we were never taught this stuff which is why I've really made it my mission to help spread this financial education. So if you got value out of this video, the best thank you is a referral. So if you could, please share this video with a friend, family member, colleague, or fellow investor. The Fed just announced that they're going to end quantitative tightening come December 1st. In plain English, that means that the Federal Reserve Bank wants to start printing money and boosting markets again as we go into 2026 as a way to stimulate the economy. This economic shift is going to affect everybody. It affects the stock market, it affects the...