{"id":34855,"date":"2023-12-08T12:45:55","date_gmt":"2023-12-08T19:45:55","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=34855"},"modified":"2023-12-14T14:00:38","modified_gmt":"2023-12-14T21:00:38","slug":"your-safety-is-not-their-concern","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/your-safety-is-not-their-concern\/","title":{"rendered":"Your Safety Is Not Their Concern"},"content":{"rendered":"

Uncover the Truth About Debt! 💸 In a world dominated by debt, the authorities want you to believe it’s all safe. 🤔 Many swear by treasuries as the ultimate safety net in government debt, but surprise! It’s not as secure as you think. 🚨 Municipal bonds are often hailed as super safe, especially for tax purposes. 🏦💼 However, the booming municipal bond market hides some lurking dangers you need to know about! Don’t be in the dark! 🔦<\/p>\n

CHAPTERS:<\/strong><\/p>\n

0:00 Municipal Bonds
\n1:25 Rent-A-Muni
\n3:11 No Employees?
\n4:18 BofA More Muni Defaults
\n5:26 Municipal Bond Blowup
\n8:19 Burned Muni Holders For Cash
\n12:51 NYC’s 7 Billion Deficit
\n15:35 Boosting Trading Volume
\n17:54 Spot Gold Market
\n20:20 Get Your Strategy Now<\/p>\n

SLIDES FROM VIDEO:<\/strong><\/p>\n

\"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a> \"\"<\/a><\/p>\n

\u200b<\/span>TRANSCRIPT FROM VIDEO:<\/strong><\/p>\n

00:00:00:03 – 00:00:03:11
\nYou know, in an all-debt-based system, the powers<\/p>\n

00:00:03:11 – 00:00:06:11
\nthat be want you to think that debt is safe.<\/p>\n

00:00:06:17 – 00:00:11:05
\nAnd a lot of people happen to think treasuries are the safest thing you can do<\/p>\n

00:00:11:05 – 00:00:16:11
\nbecause they are the largest and most liquid pool of government debt.<\/p>\n

00:00:16:14 – 00:00:19:07
\nWell, that’s turning out not to be true.<\/p>\n

00:00:19:07 – 00:00:24:12
\nBut they’d also like you to think that municipal bonds are really, really safe.<\/p>\n

00:00:24:14 – 00:00:29:12
\nPlus, you get a lot of tax advantages with that You need to be aware of it.<\/p>\n

00:00:29:19 – 00:00:31:09
\nYou need to know about it.<\/p>\n

00:00:31:09 – 00:00:33:22
\nAnd that’s what we’re going to talk about today.<\/p>\n

00:00:33:22 – 00:00:37:01
\nComing up,<\/p>\n

00:00:37:03 – 00:00:37:21
\nI’m Lynnette<\/p>\n

00:00:37:21 – 00:00:42:02
\nZang, chief market analyst here at ITB, trading, a full service<\/p>\n

00:00:42:02 – 00:00:48:08
\nphysical gold and silver dealer specializing in custom strategies.<\/p>\n

00:00:48:13 – 00:00:51:24
\nAnd if you don’t have one, click that cowardly link below.<\/p>\n

00:00:51:29 – 00:00:54:21
\nSet up a time to talk to one of our specialists<\/p>\n

00:00:54:21 – 00:00:58:13
\nand get that in place because time is running short.<\/p>\n

00:00:58:16 – 00:01:02:10
\nBut what I really want to focus on is a lot of people for<\/p>\n

00:01:02:10 – 00:01:06:23
\ntax purposes have turned to the municipal bond market.<\/p>\n

00:01:06:25 – 00:01:10:25
\nAnd in reality, the New York Fed did a study years ago that showed that,<\/p>\n

00:01:10:25 – 00:01:15:04
\nno, they weren’t really as safe as the perception that people had.<\/p>\n

00:01:15:11 – 00:01:19:24
\nAnd now we need to really talk about it because that market is exploding<\/p>\n

00:01:20:00 – 00:01:23:07
\nand you might not be aware of the hidden dangers.<\/p>\n

00:01:23:14 – 00:01:27:28
\nSo let’s just jump right into it and let’s have that conversation,<\/p>\n

00:01:28:00 – 00:01:32:13
\nbecause there are issuers rent to muni issuers scored<\/p>\n

00:01:32:13 – 00:01:35:20
\nmarket access for bonds that came out<\/p>\n

00:01:35:20 – 00:01:39:13
\nat $1 and are now at $0.11.<\/p>\n

00:01:39:14 – 00:01:44:00
\nNow you have to add a few zeros on there to make that more accurate.<\/p>\n

00:01:44:07 – 00:01:47:09
\nBut the PSA in Wisconsin has issued debt<\/p>\n

00:01:47:09 – 00:01:50:17
\nand businesses nationwide.<\/p>\n

00:01:50:20 – 00:01:54:11
\nSo you still have advantages in the federal level,<\/p>\n

00:01:54:11 – 00:01:59:16
\nbut not on the state level as far as tax taxation is concerned.<\/p>\n

00:01:59:18 – 00:02:00:10
\nOkay.<\/p>\n

00:02:00:10 – 00:02:04:23
\nLet’s take a look at this, because that was back in 2020.<\/p>\n

00:02:04:26 – 00:02:06:27
\nNow, who is the PFA?<\/p>\n

00:02:06:27 – 00:02:11:12
\nWell, the Public finance authority, the PFA is a political subdivision<\/p>\n

00:02:11:18 – 00:02:18:05
\nof the state of Wisconsin, created for the purpose of issuing tax exempt<\/p>\n

00:02:18:05 – 00:02:21:05
\nand taxable conduit bonds for public<\/p>\n

00:02:21:05 – 00:02:24:05
\nand private entities nationwide.<\/p>\n

00:02:24:09 – 00:02:29:28
\nSo again, this was an agency that was specifically created<\/p>\n

00:02:30:01 – 00:02:35:05
\nto generate an issue more debt for the state of Wisconsin.<\/p>\n

00:02:35:11 – 00:02:36:22
\nThat’s their sole goal.<\/p>\n

00:02:36:22 – 00:02:40:02
\nAnd they can go anywhere in the country to do it.<\/p>\n

00:02:40:04 – 00:02:44:23
\nThe PFA was set up a decade ago with the sole purpose of renting out<\/p>\n

00:02:44:23 – 00:02:49:27
\nits power to issue municipal debt to businesses all over the country<\/p>\n

00:02:50:04 – 00:02:54:06
\nfrom real estate developers and colleges to nursing homes.<\/p>\n

00:02:54:09 – 00:02:57:29
\nSo you’re buying a municipal bond that you think is safe,<\/p>\n

00:02:58:01 – 00:02:59:26
\nBut these are revenue bonds.<\/p>\n

00:02:59:26 – 00:03:01:19
\nThese are conduit bonds.<\/p>\n

00:03:01:19 – 00:03:07:28
\nAnd personally, this is an accident waiting to happen, in my opinion,<\/p>\n

00:03:08:05 – 00:03:12:22
\nand also possibly in reality, because they are<\/p>\n

00:03:12:22 – 00:03:17:12
\none of the biggest bond markets and they have no employees.<\/p>\n

00:03:17:14 – 00:03:23:13
\nLast year, 17 of its bond issues or more than half didn’t have credit ratings.<\/p>\n

00:03:23:20 – 00:03:26:27
\nSo it’s just about generating income for the state.<\/p>\n

00:03:27:02 – 00:03:30:15
\nThey don’t really care how safe it is for the investor.<\/p>\n

00:03:30:18 – 00:03:33:09
\nIt is a step frequently used by borrowers<\/p>\n

00:03:33:09 – 00:03:36:29
\nthat are are unlikely to receive an investment grade.<\/p>\n

00:03:37:07 – 00:03:40:12
\nAccording to data block, only qualified<\/p>\n

00:03:40:12 – 00:03:45:11
\ninstitutional buyers, those are buyers that buy on your behalf.<\/p>\n

00:03:45:12 – 00:03:49:18
\nThat’s what institutional buyers are, or accredited investors<\/p>\n

00:03:49:18 – 00:03:53:02
\nwho have to have a certain level of wealth and income<\/p>\n

00:03:53:05 – 00:03:58:17
\ncan buy these securities and those rated below triple B-minus.<\/p>\n

00:03:58:19 – 00:04:03:01
\nSo you can see and I got news for you, junk is always junk.<\/p>\n

00:04:03:03 – 00:04:07:15
\nMy mother always said it’s better to have one of the best than ten of the cheapest.<\/p>\n

00:04:07:22 – 00:04:10:22
\nAnd junk, frankly, is always junk.<\/p>\n

00:04:10:22 – 00:04:14:16
\nSo what in the world can go wrong?<\/p>\n

00:04:14:18 – 00:04:15:02
\nLots of<\/p>\n

00:04:15:02 – 00:04:18:22
\nthings, especially if you’re the holders of those bonds.<\/p>\n

00:04:18:24 – 00:04:24:13
\nBecause Bank of America and many others see more muni bond defaults.<\/p>\n

00:04:24:15 – 00:04:27:22
\nAnd part of that is because the revenues<\/p>\n

00:04:27:22 – 00:04:33:00
\non a statewide county wide, city wise level<\/p>\n

00:04:33:02 – 00:04:39:22
\nare declining in many areas, particularly in places like Chicago, etc..<\/p>\n

00:04:39:24 – 00:04:43:27
\nSo they have a lot of expenses via their pension plans,<\/p>\n

00:04:43:27 – 00:04:49:00
\ntheir defined benefit pension plans, but their income is declining.<\/p>\n

00:04:49:02 – 00:04:50:10
\nAnd guess what?<\/p>\n

00:04:50:10 – 00:04:52:29
\nWe’re seeing that even in the in the U.S.<\/p>\n

00:04:52:29 – 00:04:59:04
\nmarkets, first time payment defaults rose 122%<\/p>\n

00:04:59:06 – 00:05:02:06
\nin January from a year ago.<\/p>\n

00:05:02:13 – 00:05:05:13
\nNot for profit sector has led the defaults,<\/p>\n

00:05:05:18 – 00:05:10:15
\nbut there’s been defaults in not just not for profit but nursing homes,<\/p>\n

00:05:10:15 – 00:05:16:03
\nsenior living hospitals, as well as the not for profit sector.<\/p>\n

00:05:16:06 – 00:05:21:24
\nSo bond defaults in the muni area are going up.<\/p>\n

00:05:21:27 – 00:05:23:14
\nWhat do you think about that?<\/p>\n

00:05:23:14 – 00:05:26:14
\nAnd if you’re sitting in them, how would you feel about that?<\/p>\n

00:05:26:17 – 00:05:29:23
\nBecause a muni bond blowup exposes flaws<\/p>\n

00:05:29:25 – 00:05:33:24
\nin that particular 600 billion corner of the market.<\/p>\n

00:05:34:01 – 00:05:36:24
\nAnd what we don’t know, because they don’t talk about<\/p>\n

00:05:36:24 – 00:05:39:24
\nit, is how many derivatives.<\/p>\n

00:05:39:29 – 00:05:44:15
\nSo those big speculative leveraged bets,<\/p>\n

00:05:44:22 – 00:05:48:13
\nhow many of those derivatives are written against these muni bonds.<\/p>\n

00:05:48:20 – 00:05:54:05
\nSo it may talk about a 600 billion corner of the market, but in reality,<\/p>\n

00:05:54:07 – 00:05:57:07
\nthis is just the tip of the iceberg that we can see.<\/p>\n

00:05:57:11 – 00:06:02:08
\nIt’s all the stuff that’s below the surface that we can’t see<\/p>\n

00:06:02:14 – 00:06:07:08
\nthat is really the danger to investors and actually to all of us,<\/p>\n

00:06:07:16 – 00:06:10:08
\nbecause this is going to have an impact<\/p>\n

00:06:10:08 – 00:06:13:15
\non all of us, whether we’re prepared for it or not.<\/p>\n

00:06:13:17 – 00:06:18:15
\nBut sports complex went bust less than three years after its debt sale.<\/p>\n

00:06:18:22 – 00:06:20:04
\nGuess what that means?<\/p>\n

00:06:20:04 – 00:06:23:05
\nThat means those muni bond holders,<\/p>\n

00:06:23:07 – 00:06:25:01
\nthey’re taking all those losses.<\/p>\n

00:06:25:01 – 00:06:26:29
\nThat money is not there.<\/p>\n

00:06:26:29 – 00:06:31:26
\nAnd there’s little vetting by agency with the history of rubber stamping deals.<\/p>\n

00:06:32:00 – 00:06:33:16
\nWhy would that be?<\/p>\n

00:06:33:16 – 00:06:35:18
\nWell, let’s talk about that.<\/p>\n

00:06:35:18 – 00:06:39:11
\nEach year, billions of dollars in high risk projects are financed<\/p>\n

00:06:39:11 – 00:06:42:11
\nwith little vetting or government oversight,<\/p>\n

00:06:42:16 – 00:06:47:22
\nall because they piggyback on the names of state and local municipalities.<\/p>\n

00:06:47:28 – 00:06:51:11
\nBut there are few checks and balances,<\/p>\n

00:06:51:17 – 00:06:56:05
\nlargely because the agencies aren’t responsible for the debt.<\/p>\n

00:06:56:06 – 00:06:57:20
\nIf a project fails.<\/p>\n

00:06:57:20 – 00:07:01:17
\nNo, it’s the project that’s responsible for it.<\/p>\n

00:07:01:19 – 00:07:03:06
\nThose are revenue bonds.<\/p>\n

00:07:03:06 – 00:07:05:05
\nThose are conduit bonds.<\/p>\n

00:07:05:05 – 00:07:06:21
\nAre you holding any?<\/p>\n

00:07:06:21 – 00:07:09:29
\nYou might not know because they could be buried so deeply<\/p>\n

00:07:09:29 – 00:07:14:14
\nin your pension plan that you can’t see it.<\/p>\n

00:07:14:16 – 00:07:18:12
\nThe securities are often unrated, and when interest rates were at rock<\/p>\n

00:07:18:12 – 00:07:21:21
\nbottom levels, some of the highest yields in the industry<\/p>\n

00:07:21:21 – 00:07:27:04
\nmade it easy to attract money market money market managers<\/p>\n

00:07:27:06 – 00:07:31:10
\nor attract money managers in droves.<\/p>\n

00:07:31:12 – 00:07:33:04
\nI mean, have you forgotten?<\/p>\n

00:07:33:04 – 00:07:36:05
\nAs the Federal Reserve held interest<\/p>\n

00:07:36:05 – 00:07:40:03
\nrates as zero or even negative rates, how?<\/p>\n

00:07:40:06 – 00:07:43:28
\nDidn’t matter how risky the asset was, it was paying a yield.<\/p>\n

00:07:43:28 – 00:07:45:25
\nIt was a reach for yield.<\/p>\n

00:07:45:25 – 00:07:50:10
\nBut that means that all of those bonds are vulnerable.<\/p>\n

00:07:50:16 – 00:07:53:19
\nRemember, interest rates, market value of the bonds<\/p>\n

00:07:53:25 – 00:07:57:16
\nas the interest rates have gone up, the not only have<\/p>\n

00:07:57:16 – 00:08:01:00
\nthe price action of the bonds declined because of that,<\/p>\n

00:08:01:02 – 00:08:04:01
\nbut also because of the increase in defaults.<\/p>\n

00:08:04:01 – 00:08:07:11
\nSo it’s really like a double, triple whammy.<\/p>\n

00:08:07:13 – 00:08:09:24
\nWe’ve set ourselves up for a decent<\/p>\n

00:08:09:24 – 00:08:13:11
\npipeline of four defaults.<\/p>\n

00:08:13:14 – 00:08:15:18
\nWell, who’s going to pay for those defaults?<\/p>\n

00:08:15:18 – 00:08:19:13
\nThe investors are meaning you, whether you realize it or not.<\/p>\n

00:08:19:16 – 00:08:21:02
\nHere’s a great example.<\/p>\n

00:08:21:02 – 00:08:24:15
\nDefaulted California plant turns to burned<\/p>\n

00:08:24:15 – 00:08:27:15
\nmuni holders for cash.<\/p>\n

00:08:27:15 – 00:08:30:26
\nThe venture firm that once that turns rice<\/p>\n

00:08:30:26 – 00:08:34:23
\nstraw into panels needs another $18 million.<\/p>\n

00:08:34:26 – 00:08:37:28
\nSo this was a muni bond. It defaulted.<\/p>\n

00:08:38:05 – 00:08:41:15
\nAnd then surging demand for junk<\/p>\n

00:08:41:15 – 00:08:44:26
\nmuni debt paves the way.<\/p>\n

00:08:44:28 – 00:08:49:11
\nBecause of that little pickup of interest, you are risking your principal.<\/p>\n

00:08:49:14 – 00:08:52:17
\nIs it worth it? No, it’s not.<\/p>\n

00:08:52:24 – 00:08:55:29
\nYou want to keep your principal intact<\/p>\n

00:08:56:06 – 00:09:00:06
\nso that you can live to fight another day.<\/p>\n

00:09:00:09 – 00:09:03:11
\nHaving bonds, having stocks, having cash<\/p>\n

00:09:03:18 – 00:09:07:08
\nthat is not diversification, because all of those are dollar<\/p>\n

00:09:07:08 – 00:09:13:09
\ndenominated, having physical gold and even physical silver outside of the system.<\/p>\n

00:09:13:11 – 00:09:18:05
\nThat’s diversified because you have a tangible as well as an intangible.<\/p>\n

00:09:18:10 – 00:09:24:22
\nIntangibles are so easy to to rob you of because you don’t hold it.<\/p>\n

00:09:24:24 – 00:09:29:19
\nBut the reality is, is if you don’t hold it, you don’t own it.<\/p>\n

00:09:29:22 – 00:09:31:08
\nThat’s simple.<\/p>\n

00:09:31:08 – 00:09:32:05
\nOkay.<\/p>\n

00:09:32:05 – 00:09:36:13
\nStill, the plant, which started making panels in November,<\/p>\n

00:09:36:20 – 00:09:42:23
\nneeds about 18 million more to fully scale up to commercial operations.<\/p>\n

00:09:42:25 – 00:09:45:20
\nBondholders appear to have faith.<\/p>\n

00:09:45:20 – 00:09:49:24
\nDespite the missing debt payments, the company is poised to win<\/p>\n

00:09:49:24 – 00:09:53:05
\nfinal approval from California officials<\/p>\n

00:09:53:11 – 00:09:57:28
\nto sell that amount of new securities, most of which<\/p>\n

00:09:57:28 – 00:10:01:27
\nwill likely go to the existing investors.<\/p>\n

00:10:01:29 – 00:10:06:20
\nThis was roughly a little bit more than a couple of three years ago.<\/p>\n

00:10:06:20 – 00:10:08:17
\nTwo years ago. Right.<\/p>\n

00:10:08:17 – 00:10:09:08
\nDo you get that?<\/p>\n

00:10:09:08 – 00:10:12:24
\nSo California had to approve additional debt sales<\/p>\n

00:10:12:27 – 00:10:18:21
\nafter this bond, this municipal bond defaulted.<\/p>\n

00:10:18:23 – 00:10:21:07
\nAnd and investors are trying to save<\/p>\n

00:10:21:07 – 00:10:25:04
\nwhat equity they have by throwing good money after bad.<\/p>\n

00:10:25:07 – 00:10:30:09
\nThe company has equity backing from entities, including a subsidiary.<\/p>\n

00:10:30:11 – 00:10:31:07
\nHow do you like this?<\/p>\n

00:10:31:07 – 00:10:35:06
\nTeachers in California include being a subsidiary<\/p>\n

00:10:35:06 – 00:10:38:26
\nof the Teachers Insurance and Annuity Association of America.<\/p>\n

00:10:38:26 – 00:10:40:05
\nSee what I’m saying?<\/p>\n

00:10:40:05 – 00:10:46:02
\nYou might not even know that you are sitting in this garbage, but<\/p>\n

00:10:46:02 – 00:10:53:04
\nyou are from those institutional investors that invest your money.<\/p>\n

00:10:53:06 – 00:10:54:11
\nWhat’s their risk?<\/p>\n

00:10:54:11 – 00:10:57:11
\nIt’s your risk they’re taking on your behalf.<\/p>\n

00:10:57:16 – 00:10:58:22
\nThank you so much.<\/p>\n

00:10:58:22 – 00:11:01:05
\nNot me. Not me.<\/p>\n

00:11:01:05 – 00:11:03:22
\nLet’s see.<\/p>\n

00:11:03:22 – 00:11:04:08
\nLet’s see.<\/p>\n

00:11:04:08 – 00:11:08:08
\nSo the Teachers Insurance and Annuity Association of America<\/p>\n

00:11:08:11 – 00:11:11:00
\nhas already borrowed 344<\/p>\n

00:11:11:00 – 00:11:15:25
\nmillion since 2000 and seventeenths through sales of unrated<\/p>\n

00:11:15:25 – 00:11:19:09
\ntax free debt, most of which is in default.<\/p>\n

00:11:19:17 – 00:11:23:08
\nBut let’s just keep going because guess what?<\/p>\n

00:11:23:11 – 00:11:25:08
\nThat was 2021, right?<\/p>\n

00:11:25:08 – 00:11:26:24
\nWasn’t that 2021?<\/p>\n

00:11:26:24 – 00:11:29:14
\nYeah, nine for 2021.<\/p>\n

00:11:29:14 – 00:11:30:05
\nHere you are.<\/p>\n

00:11:30:05 – 00:11:34:06
\nA couple of years later, October 5th, 2023.<\/p>\n

00:11:34:11 – 00:11:37:09
\nRight. With bankruptcy completed.<\/p>\n

00:11:37:09 – 00:11:41:04
\n500 million cal plant sustainable building<\/p>\n

00:11:41:04 – 00:11:45:05
\nproducts factory in willows is to be liquidated.<\/p>\n

00:11:45:08 – 00:11:47:29
\nThe equipment, land and other assets<\/p>\n

00:11:47:29 – 00:11:51:07
\nof the groundbreaking Cal plant factory and willows,<\/p>\n

00:11:51:12 – 00:11:56:26
\nwhich saw investment of more than 500 million, are to be liquidated.<\/p>\n

00:11:57:01 – 00:11:59:14
\nWhere were they before with that?<\/p>\n

00:11:59:14 – 00:12:00:14
\nLet’s see.<\/p>\n

00:12:00:14 – 00:12:04:02
\n18 million more tied to the to them.<\/p>\n

00:12:04:04 – 00:12:06:15
\n344 million.<\/p>\n

00:12:06:15 – 00:12:09:25
\nPlus another 18 million.<\/p>\n

00:12:09:28 – 00:12:12:28
\nAnd what is getting defaulted on?<\/p>\n

00:12:13:03 – 00:12:16:03
\nyeah, that’s right. 500.<\/p>\n

00:12:16:08 – 00:12:18:25
\n500 million.<\/p>\n

00:12:18:25 – 00:12:20:13
\nSo how do you feel about that?<\/p>\n

00:12:20:13 – 00:12:23:19
\nAnd how do you think you would feel about that if you owned them?<\/p>\n

00:12:23:19 – 00:12:29:01
\nAnd by the way, would you even know that if they’re buried inside of your pension,<\/p>\n

00:12:29:04 – 00:12:31:28
\nare you really getting all the data and the facts?<\/p>\n

00:12:31:28 – 00:12:33:18
\nBecause they probably have sent you<\/p>\n

00:12:33:18 – 00:12:36:18
\na little email about it, which you probably ignored,<\/p>\n

00:12:36:21 – 00:12:39:18
\nor maybe they even did a little glossy one sheet.<\/p>\n

00:12:39:18 – 00:12:46:02
\nIf they send you a hard copy of anything but nothing to worry here<\/p>\n

00:12:46:04 – 00:12:48:29
\nuntil this really ratchets up.<\/p>\n

00:12:48:29 – 00:12:51:29
\nAnd then we’ve got something huge to worry about.<\/p>\n

00:12:52:00 – 00:12:57:10
\nBond investors largely ignored New York City’s 7 billion deficit.<\/p>\n

00:12:57:12 – 00:12:58:08
\nThere you go.<\/p>\n

00:12:58:08 – 00:13:00:22
\nThis was just done November 21st.<\/p>\n

00:13:00:22 – 00:13:07:03
\nDemand is high for bonds that yield more than 3% tax free.<\/p>\n

00:13:07:06 – 00:13:09:23
\nSo you are risking your principal<\/p>\n

00:13:09:23 – 00:13:14:14
\nfor 3% tax free.<\/p>\n

00:13:14:16 – 00:13:17:05
\nWell, Evercore is wealth management.<\/p>\n

00:13:17:05 – 00:13:21:10
\nHoward cured the risk of holding Citi Debt outweighs the reward.<\/p>\n

00:13:21:11 – 00:13:23:13
\nI 100% agree with that.<\/p>\n

00:13:23:13 – 00:13:26:02
\n100 zillion percent.<\/p>\n

00:13:26:02 – 00:13:28:18
\nHe points to the city’s looming 7<\/p>\n

00:13:28:18 – 00:13:32:05
\nbillion budget deficit, exacerbated in part<\/p>\n

00:13:32:05 – 00:13:36:22
\nby spiraling costs of sheltering asylum seekers and other migrants.<\/p>\n

00:13:36:23 – 00:13:37:26
\nBlah, blah, blah.<\/p>\n

00:13:37:26 – 00:13:43:07
\nDeclining Wall Street profits and job cuts at major investment<\/p>\n

00:13:43:07 – 00:13:46:27
\nbanks will put pressure on city tax revenue.<\/p>\n

00:13:46:29 – 00:13:48:10
\nYour revenue.<\/p>\n

00:13:48:10 – 00:13:52:06
\nIf you’re taking on more debt, your revenue has to grow,<\/p>\n

00:13:52:06 – 00:13:55:20
\nat least at the same level<\/p>\n

00:13:55:22 – 00:13:58:22
\nas your debt repayment grows.<\/p>\n

00:13:58:22 – 00:14:00:20
\nAnd that is not what’s happening.<\/p>\n

00:14:00:20 – 00:14:03:24
\nAnd we’re not in that environment on a federal level.<\/p>\n

00:14:03:25 – 00:14:07:07
\nWe’re a municipal level. Can you see that?<\/p>\n

00:14:07:09 – 00:14:12:27
\nSo all of these muni bonds that you might think are safe, maybe not so safe.<\/p>\n

00:14:12:29 – 00:14:16:09
\nGeneral obligation bonds are a little bit safer because<\/p>\n

00:14:16:09 – 00:14:18:14
\nthat comes out of the general fund.<\/p>\n

00:14:18:14 – 00:14:23:01
\nBut when you’re looking at conduit bonds or you’re looking at bonds<\/p>\n

00:14:23:01 – 00:14:26:12
\nthat are specific to, you know, a<\/p>\n

00:14:26:14 – 00:14:29:23
\nrevenue bond, you better look again.<\/p>\n

00:14:30:00 – 00:14:31:20
\nYou better think about it hard.<\/p>\n

00:14:31:20 – 00:14:35:21
\nYou better see where it’s at on this spectrum<\/p>\n

00:14:35:21 – 00:14:39:21
\nof market values and the risk that is associated with it.<\/p>\n

00:14:39:21 – 00:14:44:24
\nBecause you certainly saw what happened to the Cal Bond investors that ended up<\/p>\n

00:14:44:24 – 00:14:49:02
\nputting 500 million in the buy 500 million.<\/p>\n

00:14:49:05 – 00:14:54:00
\nDon’t risk your principal for a little bit of interest.<\/p>\n

00:14:54:02 – 00:14:59:12
\nThe risk is not worth the reward.<\/p>\n

00:14:59:14 – 00:15:00:24
\nAnd, hey,<\/p>\n

00:15:00:24 – 00:15:05:10
\nit also suggests, let’s say, declining Wall Street profits and job<\/p>\n

00:15:05:10 – 00:15:09:06
\ncuts at major investment banks will put pressure on city tax revenue.<\/p>\n

00:15:09:09 – 00:15:12:23
\nDimming New York’s fiscal outlook that suggests<\/p>\n

00:15:12:23 – 00:15:16:05
\nthe city’s general obligation bonds.<\/p>\n

00:15:16:07 – 00:15:20:07
\nSo even the gio bonds aren’t particularly attractive<\/p>\n

00:15:20:14 – 00:15:24:23
\nat current valuations.<\/p>\n

00:15:24:26 – 00:15:27:02
\nInsanity is doing the same thing<\/p>\n

00:15:27:02 – 00:15:31:24
\nover and over again and expecting different results.<\/p>\n

00:15:31:26 – 00:15:35:23
\nAnd we’ve got a lot of history on these results.<\/p>\n

00:15:35:25 – 00:15:41:03
\nSo does it really matter because investors dive into 4 trillion<\/p>\n

00:15:41:03 – 00:15:45:25
\nmuni bond market boosting trading volume?<\/p>\n

00:15:45:28 – 00:15:47:13
\nAre you kidding me?<\/p>\n

00:15:47:13 – 00:15:50:13
\nLook at the volume right there.<\/p>\n

00:15:50:14 – 00:15:53:05
\nHighest well, at least the highest<\/p>\n

00:15:53:05 – 00:15:56:05
\nsince they started tracking this in 2020.<\/p>\n

00:15:56:11 – 00:16:00:02
\nAnd it’s all about demand and supply.<\/p>\n

00:16:00:07 – 00:16:02:09
\nBut who’s really the investor?<\/p>\n

00:16:02:09 – 00:16:03:28
\nIs that mom and pop?<\/p>\n

00:16:03:28 – 00:16:10:00
\nOr is that your retirement funds, your pension funds, etc.?<\/p>\n

00:16:10:02 – 00:16:15:02
\n401 KS, IRAs, annuities, all that stuff.<\/p>\n

00:16:15:04 – 00:16:18:29
\nInvestors rush into the market as yields rose,<\/p>\n

00:16:19:04 – 00:16:23:29
\nand now we’re being sold that this is a great time to buy and put out duration.<\/p>\n

00:16:24:04 – 00:16:25:26
\nIn other words, go longer.<\/p>\n

00:16:25:26 – 00:16:28:20
\nBut this is what happens. Okay.<\/p>\n

00:16:28:22 – 00:16:30:09
\nInterest rates<\/p>\n

00:16:30:09 – 00:16:33:12
\nwill current market value when they issue it.<\/p>\n

00:16:33:12 – 00:16:35:26
\nThis is when issued, right, right there.<\/p>\n

00:16:35:26 – 00:16:38:23
\nSo when they issue it, when interest rates<\/p>\n

00:16:38:23 – 00:16:41:23
\ngo up, the principal value goes down.<\/p>\n

00:16:41:26 – 00:16:43:14
\nThis is maturity.<\/p>\n

00:16:43:14 – 00:16:49:01
\nYou can see how much more the principal declines the longer out you are.<\/p>\n

00:16:49:03 – 00:16:49:24
\nSo that’s what<\/p>\n

00:16:49:24 – 00:16:53:25
\nthey’re wanting you to do right now, because the reverse is true as well.<\/p>\n

00:16:53:25 – 00:16:56:23
\nRight. So they’re counting on the Fed pivot.<\/p>\n

00:16:56:23 – 00:16:59:29
\nYou have to understand what’s happening when we get that Fed pivot.<\/p>\n

00:17:00:06 – 00:17:02:10
\nBut they’re counting on the Fed pivot.<\/p>\n

00:17:02:10 – 00:17:07:08
\nSo then if the Fed put pivots and starts to push those interest rates down,<\/p>\n

00:17:07:14 – 00:17:10:25
\nyou can see what happens to the market value of the bond.<\/p>\n

00:17:10:27 – 00:17:15:06
\nAs long as the bond doesn’t default.<\/p>\n

00:17:15:09 – 00:17:18:14
\nThen if you hold it to maturity,<\/p>\n

00:17:18:17 – 00:17:21:09
\nyou may get your principal back.<\/p>\n

00:17:21:09 – 00:17:26:04
\nThe purchasing power is another story, and that’s what inflation erodes.<\/p>\n

00:17:26:10 – 00:17:29:21
\nAnd we know that we’ve talked about it a long time.<\/p>\n

00:17:29:23 – 00:17:33:10
\nBut, you know, again, I have to ask this question.<\/p>\n

00:17:33:10 – 00:17:36:01
\nYou know, this is not the first time I’ve asked it.<\/p>\n

00:17:36:01 – 00:17:38:23
\nWhy would you risk your principal<\/p>\n

00:17:38:23 – 00:17:43:23
\nfor a little bit of interest when you can hold your principal,<\/p>\n

00:17:43:23 – 00:17:47:03
\nyour purchasing power intact right here<\/p>\n

00:17:47:03 – 00:17:53:13
\nin an undervalued asset that has full global demand?<\/p>\n

00:17:53:15 – 00:17:54:15
\nJust a thought.<\/p>\n

00:17:54:15 – 00:17:58:09
\nLet’s take a look at that, because what you’re looking at here<\/p>\n

00:17:58:11 – 00:18:01:11
\nis the spot gold market.<\/p>\n

00:18:01:12 – 00:18:03:19
\nAnd it’s easy to control it<\/p>\n

00:18:03:19 – 00:18:08:00
\nwhile the controlled market yet waits for the ultimate breakout.<\/p>\n

00:18:08:00 – 00:18:11:19
\nSo it’s got to go above here and it very well could do that<\/p>\n

00:18:11:22 – 00:18:15:01
\neven between now and the first of the year.<\/p>\n

00:18:15:03 – 00:18:20:01
\nBut let’s take a look at what’s happening in the key dates and rarities.<\/p>\n

00:18:20:06 – 00:18:23:06
\nThis is only the only physical market.<\/p>\n

00:18:23:11 – 00:18:26:06
\nThere’s no paper contracts written against that.<\/p>\n

00:18:26:06 – 00:18:29:21
\nSo as I’ve shown you many times, it is easy<\/p>\n

00:18:29:26 – 00:18:32:26
\nto manipulate the visible price of a contract.<\/p>\n

00:18:33:03 – 00:18:35:19
\nBut only gold.<\/p>\n

00:18:35:19 – 00:18:38:25
\nOnly gold is money.<\/p>\n

00:18:38:27 – 00:18:41:27
\nEverything else is credit.<\/p>\n

00:18:42:02 – 00:18:44:12
\nEverything else is a contract.<\/p>\n

00:18:44:12 – 00:18:47:12
\nAnd any time you have a contract,<\/p>\n

00:18:47:14 – 00:18:50:01
\nyou are running counterparty risk.<\/p>\n

00:18:50:01 – 00:18:54:23
\nAnd that’s the risk of default from the other entity.<\/p>\n

00:18:54:25 – 00:18:57:25
\nBecause if you don’t hold it, you don’t own it.<\/p>\n

00:18:57:27 – 00:19:01:20
\nThis is your best defense with what we’re going through right now<\/p>\n

00:19:01:26 – 00:19:05:18
\nbecause it’s not even so much if you get your principal back.<\/p>\n

00:19:05:21 – 00:19:09:13
\nBut inflation has shown you<\/p>\n

00:19:09:15 – 00:19:13:02
\nthat you lose purchasing power value.<\/p>\n

00:19:13:07 – 00:19:17:25
\nSo even if you get that value back, you hold it to maturity and you get it back.<\/p>\n

00:19:17:25 – 00:19:20:16
\nWhat’s it going to buy you? A whole lot less.<\/p>\n

00:19:20:16 – 00:19:24:05
\nAnd that’s a guarantee because that’s the way the system is set up.<\/p>\n

00:19:24:07 – 00:19:27:10
\nSo in this, this is what the one percenters do, right?<\/p>\n

00:19:27:10 – 00:19:32:24
\nBecause a lot of the coins in there will go for millions and millions of dollars.<\/p>\n

00:19:32:26 – 00:19:36:03
\nThis is the category of this coin and the category<\/p>\n

00:19:36:03 – 00:19:39:10
\nthat I personally work in, which is a lot lower.<\/p>\n

00:19:39:10 – 00:19:42:22
\nAnd that, too, has had a breakout out.<\/p>\n

00:19:42:24 – 00:19:45:23
\nSo, you know, while we’re still struggling to<\/p>\n

00:19:45:23 – 00:19:50:24
\nto break out in the paper market, what are you listening to them for? Why?<\/p>\n

00:19:50:26 – 00:19:53:19
\nThey’re just lying and lying and lying some more.<\/p>\n

00:19:53:19 – 00:19:56:19
\nFor them, it’s just about a pick up and a little bit of money.<\/p>\n

00:19:56:23 – 00:20:00:16
\nBut the physical only market, that’s where you’re finding the truth.<\/p>\n

00:20:00:22 – 00:20:05:20
\nAnd both of them are breaking out, especially the one percenters that either<\/p>\n

00:20:05:20 – 00:20:10:04
\nwrite the rules or have the ability to influence those that write the rules.<\/p>\n

00:20:10:07 – 00:20:16:20
\nThey are clearly breaking out in a very large and pervasive way.<\/p>\n

00:20:16:22 – 00:20:20:18
\nSo I’d like you to just pay attention to what’s going on.<\/p>\n

00:20:20:21 – 00:20:24:16
\nDon’t be suckered in by the lies.<\/p>\n

00:20:24:19 – 00:20:27:23
\nIt’s their job to lie.<\/p>\n

00:20:27:25 – 00:20:30:25
\nIt’s my job to help you see the truth<\/p>\n

00:20:30:27 – 00:20:34:24
\nand your job to follow the links and do your own due diligence.<\/p>\n

00:20:34:26 – 00:20:36:25
\nDon’t take my word for anything.<\/p>\n

00:20:36:25 – 00:20:38:23
\nDon’t take their word for anything.<\/p>\n

00:20:38:23 – 00:20:41:17
\nEither I give you the links.<\/p>\n

00:20:41:17 – 00:20:45:26
\nYou can find them on the blogs and you can follow every single thing<\/p>\n

00:20:45:27 – 00:20:48:26
\nif you come up with a different opinion than I do.<\/p>\n

00:20:48:26 – 00:20:51:23
\nWho am I to say that your opinion is less valid?<\/p>\n

00:20:51:23 – 00:20:53:23
\nA random OPM opinion?<\/p>\n

00:20:53:23 – 00:20:58:10
\nYes, that is definitely less valid than my well-educated opinion.<\/p>\n

00:20:58:12 – 00:21:02:08
\nBut I want you to actually have well-educated hearted opinions<\/p>\n

00:21:02:11 – 00:21:06:07
\nso that you can put your best interests first.<\/p>\n

00:21:06:10 – 00:21:09:18
\nThat’s what the strategy is all about.<\/p>\n

00:21:09:20 – 00:21:14:16
\nThat’s why if you click that cowardly link and you talk to one of our specialists<\/p>\n

00:21:14:18 – 00:21:18:23
\nthere, if you don’t know how to define your goals, they’re going to help<\/p>\n

00:21:18:23 – 00:21:23:25
\nyou define your goals and then it’s doing the right tool for the job.<\/p>\n

00:21:24:02 – 00:21:27:19
\nWhat are you trying to accomplish?<\/p>\n

00:21:27:21 – 00:21:28:00
\nNow, I<\/p>\n

00:21:28:00 – 00:21:31:00
\nthink it’s really important if you haven’t done this yet,<\/p>\n

00:21:31:05 – 00:21:35:05
\nto watch securities ization market breaking down,<\/p>\n

00:21:35:07 – 00:21:38:02
\nbecause again, a lot of this Wall Street<\/p>\n

00:21:38:02 – 00:21:41:18
\ngarbage has been turned into products and sold to you.<\/p>\n

00:21:41:23 – 00:21:44:14
\nSo they’re making money hand over fist.<\/p>\n

00:21:44:14 – 00:21:46:11
\nBut you’re the one that’s taking all the risk<\/p>\n

00:21:46:11 – 00:21:48:05
\nand that appears to be breaking down.<\/p>\n

00:21:48:05 – 00:21:49:24
\nSo you definitely want to be<\/p>\n

00:21:49:24 – 00:21:53:10
\ntaking a look at that and looking at what you’re holding.<\/p>\n

00:21:53:13 – 00:21:57:01
\nYou know, you might be in something that you can choose to liquidate.<\/p>\n

00:21:57:08 – 00:22:00:02
\nYou might be in like a403b or something<\/p>\n

00:22:00:02 – 00:22:03:11
\nlike that, that you have no option to liquidate.<\/p>\n

00:22:03:13 – 00:22:06:04
\nIn which case you need to get yourself diversified.<\/p>\n

00:22:06:04 – 00:22:07:27
\nReally important.<\/p>\n

00:22:07:27 – 00:22:11:11
\nAnd you know, you’ve seen it and it’s awesome.<\/p>\n

00:22:11:12 – 00:22:14:24
\nThe materials that are coming out from the three of us,<\/p>\n

00:22:14:24 – 00:22:19:02
\nincluding Daniella Cambone and Taylor, Kenny and me.<\/p>\n

00:22:19:08 – 00:22:23:27
\nSo there’s lots for you to look at when you might have a little bit of time,<\/p>\n

00:22:24:00 – 00:22:27:18
\nalthough we are in the holiday season, so<\/p>\n

00:22:27:20 – 00:22:28:17
\nyou’ll do<\/p>\n

00:22:28:17 – 00:22:31:17
\nwhatever is going to be comfortable for you and your family.<\/p>\n

00:22:31:17 – 00:22:34:12
\nWe’re just trying to get you protected here.<\/p>\n

00:22:34:12 – 00:22:37:05
\nAnd if you haven’t already, make sure you subscribe.<\/p>\n

00:22:37:05 – 00:22:39:02
\nYou need to know what’s going on.<\/p>\n

00:22:39:02 – 00:22:40:07
\nLeave us a comment.<\/p>\n

00:22:40:07 – 00:22:44:17
\nGive us a thumbs up and share, share, share.<\/p>\n

00:22:44:20 – 00:22:49:07
\nBecause this, my friends, is your wealth shield.<\/p>\n

00:22:49:09 – 00:22:50:29
\nAnd until next, we me.<\/p>\n

00:22:50:29 – 00:22:53:24
\nPlease be safe out there. Bye bye.<\/p>\n

SOURCES:<\/strong><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2020-12-08\/rent-a-muni-issuer-scored-market-access-for-bond-now-at-11-cents?sref=rWFqAg1Y<\/span><\/a>\u200b<\/p>\n

Who is the PFA\u00a0<\/span>wisconsin<\/span> conduit municipal bonds<\/span><\/a><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2016-01-13\/inside-a-muni-market-powerhouse-no-employees-lots-of-customers?sref=rWFqAg1Y\u200b<\/a><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2023-02-07\/bank-of-america-expects-municipal-bond-defaults-to-rise-in-2023?sref=rWFqAg1Y\u200b<\/a><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2023-11-17\/muni-bond-blowup-exposes-flaws-in-600-billion-corner-of-market?sref=rWFqAg1Y\u200b<\/a><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2021-08-04\/defaulted-california-plant-turns-to-burned-muni-holders-for-cash?sref=rWFqAg1Y\u200b<\/a><\/p>\n

https:\/\/www.bizjournals.com\/sacramento\/inno\/stories\/news\/2023\/10\/05\/calplant-factory-liquidated-willows.html\u200b<\/a><\/p>\n

https:\/\/www.bloomberg.com\/news\/articles\/2023-11-21\/nyc-s-7-billion-deficit-is-largely-ignored-by-muni-investors?sref=rWFqAg1Y\u200b<\/a><\/p>\n

Investors Dive Into Muni Bonds, Sending Trading Volume Surging – Bloomberg<\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Uncover the Truth About Debt! 💸 In a world dominated by debt, the authorities want you to believe it’s all safe. […]<\/p>\n","protected":false},"author":23,"featured_media":34856,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[31,36,53,81,83,92,242,322,1282,1375,1378,1473,1526,1607,1720,1839,2100,2345,2627,2987,2988,2989,2990,2991,2992,2993,2994],"class_list":["post-34855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-bonds","tag-buy-gold","tag-federal-reserve","tag-hyperinflation","tag-inflation","tag-municipal-bonds","tag-investing-in-gold","tag-precious-metals","tag-central-banks","tag-dollar-collapse","tag-lynette-zang","tag-economic-collapse","tag-buy-silver","tag-janet-yellen","tag-cbdc","tag-currency-reset","tag-jerome-powell","tag-brics","tag-de-dollarization","tag-inflation-news","tag-us-recession","tag-stock-market-crash","tag-bank-crash","tag-bank-crisis","tag-brics-currency","tag-buy-physical-gold","tag-eric-griffin"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=34855"}],"version-history":[{"count":19,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34855\/revisions"}],"predecessor-version":[{"id":34956,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34855\/revisions\/34956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/34856"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=34855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=34855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=34855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}