Dr. Mark Skousen: Mike, happy to be back on! The markets and the economy have looked strong so far — even under a new administration. Currently, I'm still 100% invested in stocks, technology, and commodities. But we are sowing the seeds of a bear market with monstrous deficit spending and the money supply rising sharply.

More inflation is headed our way, which is bullish for inflation hedges such as gold, silver, real estate, and some digital currencies.

My biggest fear is the radical proposals coming out of the Biden-Harris administration: wasteful government spending, sharply higher taxes on the wealthy and investors, and more regulation. It's discouraging to see all of the positive policies of lower taxes and deregulation gradually disappearing.

Dr. Mark Skousen: Mike, I'm glad you brought up gross output (GO) — the new macro statistic I’ve been advocating for years and which is now being reported quarterly by the federal government (U.S. Bureau of Economic Analysis or “BEA”) along with GDP.

Think of GO as the "top line" in national income accounting and GDP as the "bottom line." GO measures spending at all stages of production while GDP measures just final or finished goods and services. GO is more than double GDP, like you said, and much more volatile because it includes the supply chain, or B2B spending.

GO shows two things: One, business spending is much bigger than consumer spending; contrary to what the media says, consumption is not the largest sector of the economy and does not drive the economy. Actually, consumer spending is the effect, not the cause of prosperity (Say's law). And two, GO is a leading indicator of what GDP is going to do in the future. Right now, GO is growing faster than GDP, which is a good sign.



Government spending is rising sharply but it's no substitute for the private production of goods and services in the US and around the world. You can't just print your way to prosperity. The longer the government shuts down the economy, the greater the risk of stagflation — a recession with higher prices like we saw in the 1970s.

I issue a quarterly press release when the new GO data comes out. For the latest press release and more academic papers on GO, your readers can go to www.grossoutput.com.

Dr. Mark Skousen: Mike, Biden's infrastructure bill is as phony as a $3 bill!

Only 5% of the $2.9 trillion is going to rebuilding our roads, highways, and bridges. The rest is going to other things such as nursing homes and other vested interests. It's a shame.

Even then, most infrastructure is traditionally financed by private companies and the states — not the federal government. It certainly needs to be done. I've travelled to dozens of countries, and almost all of them have better roads, freeways, airports, bridges, and infrastructures than we do. We should be embarrassed. I just don't think the Feds will do a good job.

Dr. Mark Skousen: President Biden just announced that he is going to eliminate the long-term exemption from the capital gains tax, causing the rate to go up to over 43% for anyone earning more than $1 million, plus whatever the tax rate is statewide.

It's a confiscatory disaster and will deter millionaires and entrepreneurs from taking risks in creating new products — the backbone of progress. I can see why Wall Street is nervous about it passing. Let's hope some Democrats have the sense to reject this stupid policy of tax and spend.

I teach the correct theory of taxation in my classes at Chapman University. The "benefit principle" is the only legitimate principle of taxation — known also as the "user pay" concept. Taxation should be linked to the extent that someone or firm benefits from government service. But to impose a tax unrelated to its benefit is inefficient and dangerous.

Keynesian economists and policy makers are oblivious to the "user pay" or "benefit principle," and rely on the phony "ability to pay" concept. They favor a progressive tax on wealthy taxpayers and investors. In the case of the capital gains tax, it distorts investment decisions and where to invest capital.

Hong Kong has the most capital-efficient tax system in the world — zero percent! Under the Hong Kong model, investment capital can easily go to its most efficient use. But with high tax rates, even as little as 10%-15%, it begins to distort the allocation of capital and to lower economic growth.

I can understand a modest 5% capital gains tax to pay for the benefits of government such as establishing a stable, peaceful rule of law. But by what "benefit principle" can a government justify rates of 24% to 43%? It can't!

It's a disgrace that so few citizens understand the sound principles of taxation. I devote a whole chapter to the theories of taxation in chapter 21 of my free-market textbook, "Economic Logic" (available for only $35 at www.skousenbooks.com).

Dr. Mark Skousen: Mike, I prefer B2Gold over Franco-Nevada. Franco-Nevada is a great mining finance company but it's still selling for over 80 times earnings and has a pitifully small dividend (less than 1%) for a royalty and streaming company.



Meanwhile, B2Gold is selling for less than 9 times earnings and has a rising dividend yield of over 3% — one of the highest in the mining industry. It is enjoying record revenues, earnings, and dividends. The only reason it's not priced at $7 or $8 today is because of the political/military risks of its mines being located in Africa and the Philippines.

Dr. Mark Skousen: I like Barrick Gold (NYSE: GOLD)(TSX: ABX), which I am recommending in my trading services. It has a decent dividend yield (1.5%) and is selling for 17 times earnings.



Pan American Silver (NASDAQ: PAAS)(TSX: PAAS) also looks good as a leveraged way to play silver.

In general, gold stocks have been suppressed recently by a strong dollar, higher long-term interest rates, and the rise of Bitcoin as an alternative inflation hedge. But I think, eventually, gold and silver will head much higher. And I recommend buying both gold-silver coins and stocks.

Dr. Mark Skousen: Mike, I have recommended bitcoin-related investments off and on for the past five years and have made a lot of money in Grayscale Bitcoin Trust — although we sold half of our position after making 200% on our money in three months. Why get greedy!



I feel that digital currencies are a legitimate asset class once all of the hype settles down. The blockchain technology is a huge advance in data storage and record keeping in financial and real estate transactions.

I like investing in Amplify Transformation Data Sharing (NASDAQ: BLOK) — a fund that invests in blockchain companies that will benefit from the blockchain technology.



I don't trust the government at all when it comes to approving a new currency that they can't control. I'm not surprised that authoritarian regimes in India, China, and Turkey are trying to suppress Bitcoin or are creating their own digital currencies. To protect your assets, I recommend investing in both digital currencies and gold/silver.

Dr. Mark Skousen: Mike, Americans are quixotic when it comes to how we view wealth. We all want to be rich but are envious of those who are already rich. Surveys show that the majority of Americans favor taxing the rich, and that's why the Democrats are constantly pushing for higher taxes on the wealthy.

Even the majority of wealthy Americans favor higher taxes on themselves — Warren Buffett being an excellent example. Once again, they don't understand the sound principles of taxation. The key to economic growth is capital investment and high saving rates. But if you tax capital and savings at high rates, you won't get economic growth. You will get stagnation.

Most politicians and Keynesian economists don't realize that a tax on the income of wealthy Americans is a tax on capital. A tax on interest and dividends is a tax on capital. A federal estate and inheritance tax is a tax on capital. And a capital gains tax is a tax on capital.

Who can better use capital — the public (the state) or private enterprise? I dare say if you asked Warren Buffett, "Who would do a better job of investing your capital; you or the government?" even he would say, "I would!"

A wealth tax is one of the worst taxes you can impose because not only is it a tax on capital — which fuels economic growth — but it takes away your financial privacy. It makes everyone a criminal because you are forced to disclose all of your hidden assets including coins, jewelry, diamonds, art work, real estate, stocks and bonds, etc.

Do you really want the government having a list of ALL your assets?

Dr. Mark Skousen: Absolutely! Mike, I've been a collector of gold and silver coins, not bullion, all of my adult life. My first investment was a silver dollar after reading Harry Browne's books in the 1970s.

I've been recommending Morgan silver dollars, junk silver, and bullion coins for a long time. I like the gold double eagles and one-ounce gold bullion coins issued by various countries.

The American eagle silver dollar is our official symbol at my annual FreedomFest conference.

American eagle silver dollar.

And we encourage attendees to buy silver dollars in large numbers from the coin dealers at our show. It's an insurance policy; up to 5% of your investments. Just make sure they are stored safely!

Dr. Mark Skousen: Absolutely, Mike. FreedomFest is meant to be THE place where freedom lovers from around the country come together once a year to learn, network, socialize, and celebrate liberty — or what's left of it!

It's been a big success over the years with 2,000 to 2,500 attendees every July. We have hundreds of speakers and exhibitors, all of the freedom organizations, the Anthem film festival, and a 3-day financial freedom conference. Authors, professors, economists, politicians, heath experts, musicians, and investors come in droves.

Every year, we have a big-name celebrity speaker, such as William Shatner, George Foreman, Kevin O'Leary of Shark Tank fame, and even Donald J. Trump in 2015. As John Fund says, "FreedomFest doesn't just ride the wave — it invents it."

Steve Forbes and John Mackey (CEO, Whole Foods Market) are our co-ambassadors and attend the entire conference.

For the past 14 years, we've held it annually in Las Vegas — an intellectual feast in the entertainment capital of the world. But last year, the imperial governor shut us down with a hearing, apology, or offer to compensate us for our huge financial losses. We discovered rather quickly that Nevada was not as libertarian as we thought! I'm still in shock how the monied casino interests apparently had no sway with the almighty government.

So we made the decision to leave Sin City and move our conference to the Badlands of Rapid City, South Dakota. We are only 20 minutes away from Mount Rushmore. The dates are July 21-24.


The move turned out to be a wise one as we already have over 2,100 attendees coming! We are likely to have over 3,000 attendees. People are coming from all over the country — flying, driving, biking, even coming in RVs and making it a family vacation.

I'm amazed how many people have never seen Mt. Rushmore in person. We are planning many excursions during FreedomFest. It's God's country there — really beautiful.

Your audience members can check out our list of big-name speakers, panels, and debates at www.freedomfest.com and you can register there as well. Or they can also call our toll-free number at 1-855-850-3733, ext 202 to register.

If you’ve never been, you’ll be glad you came. It will change your life meeting so many people of like minds. Plus it can be highly profitable!

Dr. Mark Skousen: Indeed, I do! Last year, we were shut down so I didn't get to reveal it to the attendees. But this year, we will be meeting.

I have a great source for deeply undervalued mining companies… and this year's pick definitely has the potential to double or triple in value.

I can't reveal this stock to all of my 15,000-plus subscribers so I'm limiting the "Secret Gold Stock" to those who attend the conference in July. Stay tuned!

Dr. Mark Skousen: Yes and with a record 3,000 expected attendees, our biggest concern right now is hotel space. Rapid City is no Las Vegas! We’re taking over all of the hotels in the entire city. We just confirmed a block of rooms in several more hotels but they will sell out fast. I urge you all to call now and make your reservations.

Dr. Mark Skousen: Thanks, Mike. I did start my newsletter, Forecasts & Strategies, in the year that Ronald Reagan was elected. I consider him the greatest president of the 20th century, and we actually met up several times.

My first promotion for my newsletter announced "Reaganomics will work! Sell your gold and silver and buy stocks and bonds!" It failed miserably because nobody believed me. But my forecast proved to be accurate, and I have been writing my monthly newsletter for 41 years and counting.

I'd like to think my investment advice has improved with age. And I've had a number of good calls, and my portfolio has consistently beat the market for the past 15 years. I plan to keep writing for another 10 years at least — so come join me.

In addition to the monthly newsletter, you will receive my hotline every Monday. For details, your audience members can go to www.markskousen.com. We offer an introductory first-year subscription for only $77 (full price is $250 a year).


I also have four trading services that offer ways to make money fast using stock options. Your readers can visit my website for details.

Dr. Mark Skousen: Thank you for having me on again, Mike! As you know, I always sign off my hotline with the phrase, "AEIOU." Your readers can look it up to figure out what it means.

Dr. Mark Skousen: My pleasure, Mike.