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<\/a><\/p>\nVIDEO TRANSCRIPT:<\/p>\n
00:00:00:00 – 00:00:04:08
\nThe worse that gets, the more we are going to have that long term problem.<\/p>\n
00:00:04:14 – 00:00:06:24
\nAnd it’s just you can see it in the numbers.<\/p>\n
00:00:06:24 – 00:00:08:07
\nIt’s just a matter of numbers.<\/p>\n
00:00:08:07 – 00:00:09:29
\nWe are near that inflection point.<\/p>\n
00:00:09:29 – 00:00:15:16
\nSo higher for longer keeps being the mantra for the central banks.<\/p>\n
00:00:15:18 – 00:00:19:09
\nThe markets believe that the Fed is going to pivot.<\/p>\n
00:00:19:11 – 00:00:23:13
\nthe meantime, debt right now is a whole<\/p>\n
00:00:23:13 – 00:00:27:09
\nlot more expensive via interest rates<\/p>\n
00:00:27:11 – 00:00:31:04
\nthan it used to be for the 15 years that they kept it<\/p>\n
00:00:31:04 – 00:00:35:17
\nat zero interest rate policy or in other words, zip.<\/p>\n
00:00:35:19 – 00:00:39:22
\nthis is a problem because that debt just keeps growing and growing and growing.<\/p>\n
00:00:39:27 – 00:00:44:23
\nhas that gone better or what are the implications for you and me?<\/p>\n
00:00:44:25 – 00:00:49:27
\nLet’s talk about this coming up.<\/p>\n
00:00:49:29 – 00:00:50:29
\nI’m Lynette Zang,<\/p>\n
00:00:50:29 – 00:00:54:26
\nchief market analyst here at ITM trading of full service<\/p>\n
00:00:54:26 – 00:01:00:23
\nphysical gold and silver dealer specializing in custom strategies.<\/p>\n
00:01:00:29 – 00:01:02:06
\nAnd by the way,<\/p>\n
00:01:02:06 – 00:01:06:21
\nif you haven’t gotten your strategy in place, click that cowardly link below.<\/p>\n
00:01:06:22 – 00:01:08:11
\nWe are running out of time.<\/p>\n
00:01:08:11 – 00:01:13:10
\nAnd I’m going to start out with Ray Dalio, who expects a revolution.<\/p>\n
00:01:13:10 – 00:01:16:02
\nAnd I you guys know I agree with him.<\/p>\n
00:01:16:02 – 00:01:18:00
\nAnd I think we need it badly.<\/p>\n
00:01:18:00 – 00:01:21:29
\nBut he’s also saying that the US is reaching an inflection point<\/p>\n
00:01:22:06 – 00:01:26:21
\nwhere the debt problem quickly gets worse because that<\/p>\n
00:01:26:21 – 00:01:31:01
\nall of that interest is like a hockey stick up now, right?<\/p>\n
00:01:31:04 – 00:01:33:19
\nSo that can crowd other things out.<\/p>\n
00:01:33:19 – 00:01:35:26
\nAnd we’re going to talk about that today.<\/p>\n
00:01:35:26 – 00:01:37:08
\nBut soaring U.S.<\/p>\n
00:01:37:08 – 00:01:42:19
\ngovernment debt is reaching a point where it will begin creating larger problems.<\/p>\n
00:01:42:22 – 00:01:46:27
\nEconomically strong means financially strong.<\/p>\n
00:01:47:00 – 00:01:50:12
\nAnd right now, this, I think, is interesting.<\/p>\n
00:01:50:19 – 00:01:55:01
\nThe government spent 659 billion on net interest cost<\/p>\n
00:01:55:01 – 00:01:59:25
\nin fiscal 2023 to finance the debt.<\/p>\n
00:01:59:28 – 00:02:02:21
\nNow, here’s the thing about that, though.<\/p>\n
00:02:02:21 – 00:02:06:14
\nWhen they don’t take in enough money and we’re going to look at this,<\/p>\n
00:02:06:18 – 00:02:10:29
\nwhen they don’t take enough money in to pay all the interest on the debt,<\/p>\n
00:02:11:01 – 00:02:14:11
\nand then any of the principal,<\/p>\n
00:02:14:13 – 00:02:18:02
\nall of that interest goes into the principal<\/p>\n
00:02:18:05 – 00:02:22:19
\nand it compounds and it compounds very rapidly,<\/p>\n
00:02:22:23 – 00:02:25:23
\nespecially in a higher interest rate environment.<\/p>\n
00:02:25:29 – 00:02:28:03
\nSo I thought that was interesting.<\/p>\n
00:02:28:03 – 00:02:31:03
\nBut you want to keep spending at the same level.<\/p>\n
00:02:31:09 – 00:02:34:19
\nThere is the need to get more and more into debt.<\/p>\n
00:02:34:22 – 00:02:37:11
\nThe way that works, it accelerates.<\/p>\n
00:02:37:11 – 00:02:42:23
\nWe are at the point of that acceleration, which creates a supply demand problem.<\/p>\n
00:02:42:24 – 00:02:45:14
\nIn other words, our governments are issuing a whole lot more debt.<\/p>\n
00:02:45:14 – 00:02:46:22
\nWho’s going to be buying it?<\/p>\n
00:02:46:22 – 00:02:48:20
\nWe’ve been talking about this.<\/p>\n
00:02:48:20 – 00:02:52:08
\nIt’s made worse by the other issues that we’re talking about,<\/p>\n
00:02:52:11 – 00:02:55:27
\nthe internal political issue, the internal societal<\/p>\n
00:02:56:01 – 00:02:59:11
\nsoci social conflict issue.<\/p>\n
00:02:59:13 – 00:03:04:19
\nYeah, and China in particular, looking at all the issues that the U.S.<\/p>\n
00:03:04:19 – 00:03:06:25
\nhas and others as well.<\/p>\n
00:03:06:25 – 00:03:10:00
\nChina in particular has cut its holdings strongly,<\/p>\n
00:03:10:07 – 00:03:15:26
\npulling back 17% during the period.<\/p>\n
00:03:15:28 – 00:03:18:25
\nThis is the problem when you’re in a debt based system.<\/p>\n
00:03:18:25 – 00:03:21:27
\nWhen you get to a point where it’s not just<\/p>\n
00:03:21:27 – 00:03:25:18
\nthat it’s not sustainable, but it is not payable<\/p>\n
00:03:25:21 – 00:03:28:21
\nand you need to take on more and more debt<\/p>\n
00:03:28:21 – 00:03:33:06
\nto pay the debt that you already have.<\/p>\n
00:03:33:08 – 00:03:37:11
\nAt some point, creditors say no,<\/p>\n
00:03:37:13 – 00:03:40:18
\nand we are getting rapidly to that point.<\/p>\n
00:03:40:18 – 00:03:43:18
\nAnd actually in some cases we’re already there.<\/p>\n
00:03:43:25 – 00:03:47:28
\nU.S. Credit Rating outlook Changed to Negative by Moody’s.<\/p>\n
00:03:48:03 – 00:03:51:23
\nNow, Fitch and S&P previously stripped the U.S.<\/p>\n
00:03:51:28 – 00:03:54:06
\nof its highest investment grade.<\/p>\n
00:03:54:06 – 00:03:59:19
\nSo the world is starting to shift in its confidence because the U.S.<\/p>\n
00:03:59:19 – 00:04:05:10
\nbudget gap doubled between 22 and 23.<\/p>\n
00:04:05:12 – 00:04:07:12
\nWait a minute.<\/p>\n
00:04:07:12 – 00:04:12:07
\nWe didn’t really have a whole lot of problems in 22.<\/p>\n
00:04:12:07 – 00:04:15:16
\nWell, 22 between 22 and 23.<\/p>\n
00:04:15:16 – 00:04:16:10
\nDid we?<\/p>\n
00:04:16:10 – 00:04:22:02
\nI mean, we’re told that our economy is really strong and chugging right along.<\/p>\n
00:04:22:04 – 00:04:23:15
\nWhat matters is<\/p>\n
00:04:23:15 – 00:04:26:21
\nless the aggregate rating and more<\/p>\n
00:04:26:21 – 00:04:29:21
\nthe constant reminder to markets<\/p>\n
00:04:29:23 – 00:04:33:24
\nthat fiscal risk is rising.<\/p>\n
00:04:33:26 – 00:04:36:26
\nIf you were if that were you,<\/p>\n
00:04:37:02 – 00:04:40:00
\nyou know, and it doesn’t matter whether you are a government,<\/p>\n
00:04:40:00 – 00:04:44:10
\na corporation or an individual, the laws of economy<\/p>\n
00:04:44:12 – 00:04:47:01
\nand finance work the same for everyone.<\/p>\n
00:04:47:01 – 00:04:50:15
\nThe difference is that governments and central bankers<\/p>\n
00:04:50:18 – 00:04:53:08
\nhave a money gun and they can just print money out,<\/p>\n
00:04:53:08 – 00:04:56:14
\nwill counterfeit it, because this is real money.<\/p>\n
00:04:56:15 – 00:04:57:28
\nJp morgan Chase.<\/p>\n
00:04:57:28 – 00:05:01:15
\nJp morgan said only gold is money.<\/p>\n
00:05:01:18 – 00:05:03:06
\nEverything else is credit.<\/p>\n
00:05:03:06 – 00:05:04:26
\nThat means that it’s debt.<\/p>\n
00:05:04:26 – 00:05:07:04
\nThat is an accurate statement.<\/p>\n
00:05:07:04 – 00:05:11:04
\nSo let’s take a look at what is really happening<\/p>\n
00:05:11:04 – 00:05:13:18
\nand how it’s likely to impact you.<\/p>\n
00:05:13:18 – 00:05:18:11
\nBecause revenues are decreasing, income tax fed remittances.<\/p>\n
00:05:18:11 – 00:05:21:19
\nWe’ve talked about both of those auction proceeds.<\/p>\n
00:05:21:19 – 00:05:24:18
\nAnd California tax receipts are all lower.<\/p>\n
00:05:24:18 – 00:05:29:06
\nAt the same time, increased spending on debt, interest rates,<\/p>\n
00:05:29:06 – 00:05:34:24
\nSocial Security, the FDIC bailouts, which I thought was really interesting<\/p>\n
00:05:34:24 – 00:05:40:20
\nsince they told us back in March and April and June, don’t call this a bailout.<\/p>\n
00:05:40:22 – 00:05:44:09
\nThis is it was a bailout because they weren’t ready for you yet<\/p>\n
00:05:44:09 – 00:05:48:16
\nto know about the balance, Medicare and defense.<\/p>\n
00:05:48:18 – 00:05:52:04
\nSo all of those spending things have increased<\/p>\n
00:05:52:11 – 00:05:55:11
\nwhile their revenues have decreased.<\/p>\n
00:05:55:18 – 00:05:57:11
\nCan you see the problem?<\/p>\n
00:05:57:11 – 00:06:01:04
\nCan you see why the fiscal risk is rising?<\/p>\n
00:06:01:06 – 00:06:06:20
\nBecause Moody’s downside risk to the US fiscal strength have increased.<\/p>\n
00:06:06:23 – 00:06:08:14
\nWhat are you waiting for?<\/p>\n
00:06:08:14 – 00:06:12:10
\nThey want you to rush in and fill this gap in all the treasuries<\/p>\n
00:06:12:10 – 00:06:16:27
\nthat they want to sell to you because the normal buyers are out.<\/p>\n
00:06:17:00 – 00:06:20:00
\nWe’re at least severely reduce their purchases.<\/p>\n
00:06:20:07 – 00:06:23:02
\nThey need you, the public,<\/p>\n
00:06:23:02 – 00:06:27:24
\nto buy more debt so they can do more of the same.<\/p>\n
00:06:27:24 – 00:06:30:03
\nAnd rob you more U.S.<\/p>\n
00:06:30:03 – 00:06:36:09
\nkicks off 50 fiscal year with an 87% surge in interest costs.<\/p>\n
00:06:36:15 – 00:06:38:25
\nThe fiscal year ends in October.<\/p>\n
00:06:38:25 – 00:06:41:25
\nSo this was written on November 13th.<\/p>\n
00:06:42:00 – 00:06:46:11
\nThe budget deficit shrank in October because of deferred taxes,<\/p>\n
00:06:46:13 – 00:06:49:13
\nbut the interest cost climbing due to rising<\/p>\n
00:06:49:13 – 00:06:52:13
\nTreasury bills is really a problem.<\/p>\n
00:06:52:19 – 00:06:57:25
\nAnd this is for the fiscal year through September, actually not even October.<\/p>\n
00:06:57:27 – 00:07:00:03
\nEffectively doubled U.S.<\/p>\n
00:07:00:03 – 00:07:01:13
\ndebt interest bill.<\/p>\n
00:07:01:13 – 00:07:09:08
\nRockets passed a cool trillion a year.<\/p>\n
00:07:09:10 – 00:07:12:05
\nAnd keep in mind that the issuance<\/p>\n
00:07:12:05 – 00:07:17:18
\nnot just from 2020 as the government was dealing with the pandemic,<\/p>\n
00:07:17:20 – 00:07:20:14
\nbut all of the debt that has been<\/p>\n
00:07:20:14 – 00:07:23:25
\nissued needs to be refinanced.<\/p>\n
00:07:23:28 – 00:07:25:12
\nWho’s going to buy?<\/p>\n
00:07:25:12 – 00:07:26:10
\nThat’s the question.<\/p>\n
00:07:26:10 – 00:07:31:26
\nThe question besides deficits of over 2 trillion in the foreseeable future.<\/p>\n
00:07:31:29 – 00:07:35:25
\nClimbing maturities following the increase of issuance<\/p>\n
00:07:35:25 – 00:07:41:06
\nfrom March 2020 will also need to be refinanced.<\/p>\n
00:07:41:09 – 00:07:44:09
\nWell, the more debt they take on,<\/p>\n
00:07:44:12 – 00:07:48:06
\nthe more interest payment, the more interest they have to pay.<\/p>\n
00:07:48:14 – 00:07:51:11
\nAnd those interest payments can crowd out other<\/p>\n
00:07:51:11 – 00:07:54:18
\nspending programs like we saw.<\/p>\n
00:07:54:24 – 00:07:57:24
\nWell, if you watch Montre Monday, we’ve seen this<\/p>\n
00:07:57:24 – 00:08:01:00
\njust recently in<\/p>\n
00:08:01:03 – 00:08:05:09
\nwhere is a Chicago or there is somewhere that no New York City<\/p>\n
00:08:05:16 – 00:08:08:16
\nthat has to reduce their police force<\/p>\n
00:08:08:22 – 00:08:12:01
\nbecause of the interest on the debt that they’re paying.<\/p>\n
00:08:12:04 – 00:08:14:08
\nAll right. Well, let’s take a look at this.<\/p>\n
00:08:14:08 – 00:08:19:03
\nThe federal government already spends more on interest than on budget areas<\/p>\n
00:08:19:03 – 00:08:23:20
\nsuch as veterans benefits, transportation and education.<\/p>\n
00:08:23:22 – 00:08:27:08
\nIn this fiscal year, spending on interest will become greater<\/p>\n
00:08:27:08 – 00:08:31:13
\nthan mandatory spending for income security programs.<\/p>\n
00:08:31:15 – 00:08:36:00
\nSo SNAP, earned, Earned Income, Child and other tax<\/p>\n
00:08:36:00 – 00:08:39:29
\ncredits, supplemental Security Income, Unemployment compensation,<\/p>\n
00:08:40:05 – 00:08:44:00
\nfamily support and foster care and child nutrition.<\/p>\n
00:08:44:02 – 00:08:47:08
\nAll of these programs, we’re going to get to a point<\/p>\n
00:08:47:15 – 00:08:50:21
\nthat this interest is going to crowd them out.<\/p>\n
00:08:50:23 – 00:08:54:01
\nThey anticipate in 2024<\/p>\n
00:08:54:04 – 00:08:58:15
\nthat those interest payments will surpass the combined amount<\/p>\n
00:08:58:22 – 00:09:02:10
\nthat the federal government spends on major health care programs<\/p>\n
00:09:02:12 – 00:09:03:26
\nother than Medicare.<\/p>\n
00:09:03:26 – 00:09:06:28
\nSo Medicaid, children’s health insurance programs<\/p>\n
00:09:06:28 – 00:09:10:15
\nand premium tax credits by 2028.<\/p>\n
00:09:10:17 – 00:09:14:08
\nThey’ll spend more on interest than on defense, and this could happen<\/p>\n
00:09:14:08 – 00:09:18:05
\nmuch sooner, especially with that higher for longer mantra.<\/p>\n
00:09:18:07 – 00:09:22:06
\nIn 3031, the federal government will spend more on interest<\/p>\n
00:09:22:06 – 00:09:26:24
\nthan on non-defense discretionary, which includes funding for transfer<\/p>\n
00:09:26:24 – 00:09:30:13
\nstation, veterans, education, health, international affairs,<\/p>\n
00:09:30:19 – 00:09:34:17
\nnatural resources and environment, general science and technology,<\/p>\n
00:09:34:23 – 00:09:37:16
\ngeneral government and more.<\/p>\n
00:09:37:19 – 00:09:39:21
\nCan you see what I’m talking about?<\/p>\n
00:09:39:21 – 00:09:42:06
\nBecause debtors want to get paid.<\/p>\n
00:09:42:06 – 00:09:44:00
\nThey want to get paid.<\/p>\n
00:09:44:00 – 00:09:46:21
\nAnd this is why we’re goofing around.<\/p>\n
00:09:46:21 – 00:09:49:19
\nOur government is goofing around with our credit rating<\/p>\n
00:09:49:19 – 00:09:52:19
\nbecause the lower the credit rating is as well.<\/p>\n
00:09:52:20 – 00:09:53:23
\nGuess what?<\/p>\n
00:09:53:23 – 00:09:56:17
\nThe higher investors demand?<\/p>\n
00:09:56:17 – 00:10:01:28
\nAnd for taking that risk, of course, they can hide that risk for a long time.<\/p>\n
00:10:02:03 – 00:10:04:26
\nSovereign debt. Government debt.<\/p>\n
00:10:04:26 – 00:10:08:29
\nBut this is through October 24th.<\/p>\n
00:10:09:01 – 00:10:12:09
\nThe federal surplus or deficit.<\/p>\n
00:10:12:09 – 00:10:15:09
\nAnd you can see what I was talking about before<\/p>\n
00:10:15:13 – 00:10:18:14
\nwe actually had no it was an accounting gimmick.<\/p>\n
00:10:18:14 – 00:10:19:10
\nIt wasn’t real.<\/p>\n
00:10:19:10 – 00:10:23:18
\nBut okay, we actually ran a surplus<\/p>\n
00:10:23:20 – 00:10:26:20
\nback in like 99.<\/p>\n
00:10:26:20 – 00:10:28:26
\nRight. And you can see that<\/p>\n
00:10:28:26 – 00:10:32:19
\nonce we went off the debt standard, it’s deficits ever since.<\/p>\n
00:10:32:21 – 00:10:36:12
\nWell, this is 2008 right here.<\/p>\n
00:10:36:15 – 00:10:39:22
\nThis is 2020 right here.<\/p>\n
00:10:39:24 – 00:10:45:23
\nAnd you can see that it’s going down again with all of this spending<\/p>\n
00:10:45:25 – 00:10:50:00
\nin 1971, the deficit was 23.3 billion.<\/p>\n
00:10:50:02 – 00:10:55:13
\nNow it’s 1.7 trillion.<\/p>\n
00:10:55:15 – 00:10:58:10
\nCompounding interest.<\/p>\n
00:10:58:10 – 00:11:03:02
\nCompounding interest is not a good thing when you’re the one that’s paying it.<\/p>\n
00:11:03:05 – 00:11:05:18
\nThink about your credit card bills, right?<\/p>\n
00:11:05:18 – 00:11:10:26
\nIf you don’t pay all the interest plus principal,<\/p>\n
00:11:10:29 – 00:11:13:12
\nthen you start to compound interest.<\/p>\n
00:11:13:12 – 00:11:15:24
\nYou’re never getting out of debt when you do that.<\/p>\n
00:11:15:24 – 00:11:17:18
\nAnd this is what it looks like.<\/p>\n
00:11:17:18 – 00:11:22:03
\nThis is the federal debt, the total public debt,<\/p>\n
00:11:22:05 – 00:11:28:00
\nwhich is North 33.7 trillion in October of 2023<\/p>\n
00:11:28:03 – 00:11:32:16
\nand going much higher because of all of the debt issuance.<\/p>\n
00:11:32:18 – 00:11:36:09
\nAnd you know, the other part that I want to point out,<\/p>\n
00:11:36:09 – 00:11:40:25
\nall of these gray bars or are official recessions,<\/p>\n
00:11:40:28 – 00:11:44:13
\nand you can see that every time we hit a gray bar,<\/p>\n
00:11:44:16 – 00:11:47:13
\nthe speed at which we grow debt<\/p>\n
00:11:47:13 – 00:11:51:06
\nis faster and faster and faster.<\/p>\n
00:11:51:08 – 00:11:56:22
\nSo welcome to that hockey stick where we are, essentially.<\/p>\n
00:11:56:22 – 00:11:57:21
\nWell, look at this.<\/p>\n
00:11:57:21 – 00:11:59:02
\nWe were straight up there.<\/p>\n
00:11:59:02 – 00:12:00:29
\nWe’re straight up, we’re straight.<\/p>\n
00:12:00:29 – 00:12:02:04
\nFrick it up.<\/p>\n
00:12:02:04 – 00:12:04:15
\nHow can you afford that?<\/p>\n
00:12:04:15 – 00:12:06:27
\nAnd how about that appetite?<\/p>\n
00:12:06:27 – 00:12:10:16
\nSo again, I go back to institutional investors<\/p>\n
00:12:10:22 – 00:12:16:01
\nthat invest your money in mutual funds and ETFs in 401<\/p>\n
00:12:16:01 – 00:12:21:04
\nKS and I are raised in in, in pension plans<\/p>\n
00:12:21:06 – 00:12:24:06
\nbecause they’re not the ones that are going to eat it in the shorts.<\/p>\n
00:12:24:08 – 00:12:26:13
\nYou are<\/p>\n
00:12:26:16 – 00:12:26:27
\nyou may<\/p>\n
00:12:26:27 – 00:12:30:01
\nnot have choices, but I’ll tell you right now,<\/p>\n
00:12:30:01 – 00:12:35:20
\nif you don’t have choices, you better balance out your portfolio with gold<\/p>\n
00:12:35:22 – 00:12:36:25
\nbecause that’s going to give you<\/p>\n
00:12:36:25 – 00:12:41:12
\ntrue diversification.<\/p>\n
00:12:41:15 – 00:12:43:03
\nAnd do you think that investors<\/p>\n
00:12:43:03 – 00:12:47:04
\nare going to demand higher interest rates for the added risk<\/p>\n
00:12:47:07 – 00:12:52:03
\nso the markets are going nutty on the Fed pivot,<\/p>\n
00:12:52:05 – 00:12:53:23
\nbut those are the markets.<\/p>\n
00:12:53:23 – 00:12:55:00
\nThose are the interest rates<\/p>\n
00:12:55:00 – 00:12:59:18
\nof the overnight markets that they can control directly,<\/p>\n
00:12:59:20 – 00:13:00:21
\nindirectly.<\/p>\n
00:13:00:21 – 00:13:06:26
\nIt’s buying more of the debt to create an illusion of demand.<\/p>\n
00:13:06:28 – 00:13:09:22
\nAnd they’re trying to run off their balance sheet<\/p>\n
00:13:09:22 – 00:13:16:06
\nto give them some headroom to grow that balance sheet again.<\/p>\n
00:13:16:08 – 00:13:19:20
\nBut we are in such a precarious position<\/p>\n
00:13:19:20 – 00:13:22:20
\nwhen you just don’t realize it.<\/p>\n
00:13:22:21 – 00:13:26:26
\nAnd this is federal government interest payments on the debt.<\/p>\n
00:13:26:26 – 00:13:30:09
\nAnd remember, we’re not really seeing the truth<\/p>\n
00:13:30:11 – 00:13:34:13
\nbecause there’s compounding interest in those deficits.<\/p>\n
00:13:34:15 – 00:13:35:22
\nThey don’t talk about that.<\/p>\n
00:13:35:22 – 00:13:38:05
\nGod forbid they should talk about that.<\/p>\n
00:13:38:05 – 00:13:41:19
\nBut you can go into the Fred, you have all the links on the blog,<\/p>\n
00:13:41:21 – 00:13:44:03
\nyou can go into the Fred.<\/p>\n
00:13:44:03 – 00:13:47:24
\nAnd actually the one that you would go into<\/p>\n
00:13:47:27 – 00:13:52:29
\nwould be this one, the the total debt.<\/p>\n
00:13:53:01 – 00:13:54:12
\nAnd you can<\/p>\n
00:13:54:12 – 00:13:57:12
\nclick a button and you can see the total debt<\/p>\n
00:13:57:19 – 00:14:00:05
\nall the way back and do your own calculations<\/p>\n
00:14:00:05 – 00:14:02:14
\nand you’ll see that what I’m saying is true.<\/p>\n
00:14:02:14 – 00:14:05:18
\nBut even when you’re looking at this, these are the interest payments<\/p>\n
00:14:05:18 – 00:14:09:23
\nand look at how that has spiked since 2020,<\/p>\n
00:14:09:23 – 00:14:13:04
\neven ignoring the fact<\/p>\n
00:14:13:06 – 00:14:17:19
\nthat that those interest the interest on that debt is compounding.<\/p>\n
00:14:17:19 – 00:14:19:03
\nThis does not reflect that.<\/p>\n
00:14:19:03 – 00:14:22:12
\nThat simply reflects the interest on the debt period.<\/p>\n
00:14:22:14 – 00:14:26:18
\nSo I think you can see how we already are at that hockey<\/p>\n
00:14:26:18 – 00:14:32:18
\nstick level of going straight up and what’s the mantra Higher for longer?<\/p>\n
00:14:32:18 – 00:14:34:00
\nHigher for longer.<\/p>\n
00:14:34:00 – 00:14:37:07
\nit’s a big problem when they’ve got to issue a whole bunch of debt.<\/p>\n
00:14:37:10 – 00:14:41:22
\nBut you can see where we are in the interest.<\/p>\n
00:14:41:22 – 00:14:45:01
\nThe Fed funds effective rate because this is the rate<\/p>\n
00:14:45:01 – 00:14:48:08
\nthat the government or the central bank controls<\/p>\n
00:14:48:08 – 00:14:51:16
\ndirectly, the overnight rate.<\/p>\n
00:14:51:18 – 00:14:55:02
\nAnd you can see, you know, that’s broken out, etc..<\/p>\n
00:14:55:04 – 00:14:56:18
\nBut if the government is spending<\/p>\n
00:14:56:18 – 00:15:00:11
\nmore than it’s making, they’re borrowing to pay the interest on the debt.<\/p>\n
00:15:00:11 – 00:15:02:16
\nAnd that’s exactly what’s happening.<\/p>\n
00:15:02:16 – 00:15:05:23
\nAnd therefore, the laws of compounding ensure<\/p>\n
00:15:05:29 – 00:15:10:09
\nthat the interest on the debt will crowd out other spending.<\/p>\n
00:15:10:15 – 00:15:12:23
\nThey’re going to have to reduce security.<\/p>\n
00:15:12:23 – 00:15:16:20
\nThey’re going to have to I mean, they’re really going to pay for infrastructure.<\/p>\n
00:15:16:22 – 00:15:20:05
\nNo, just like they’ve been postponing it forever and ever and ever.<\/p>\n
00:15:20:11 – 00:15:22:03
\nThey’re going to be raising taxes.<\/p>\n
00:15:22:03 – 00:15:24:25
\nThey don’t have any choice about that.<\/p>\n
00:15:24:25 – 00:15:28:07
\nThis can help protect you from that.<\/p>\n
00:15:28:10 – 00:15:30:00
\nSo you have to get used to<\/p>\n
00:15:30:00 – 00:15:33:20
\nlike the Bank of England said, get used to being poor.<\/p>\n
00:15:33:23 – 00:15:35:17
\nWell, is that okay with you?<\/p>\n
00:15:35:17 – 00:15:39:22
\nBecause I suggest you click that cowardly link and get a strategy in place<\/p>\n
00:15:39:22 – 00:15:42:24
\nand get it executed and fight.<\/p>\n
00:15:43:00 – 00:15:44:00
\nThat’s how we fight.<\/p>\n
00:15:44:00 – 00:15:46:23
\nWe fight with our wallets.<\/p>\n
00:15:46:23 – 00:15:48:06
\nYou’re going to stay in the system.<\/p>\n
00:15:48:06 – 00:15:48:28
\nThat’s your vote.<\/p>\n
00:15:48:28 – 00:15:51:28
\nYou’re going to buy gold and silver and pull it out of the system.<\/p>\n
00:15:52:00 – 00:15:54:25
\nThat’s my vote. What’s your vote?<\/p>\n
00:15:54:25 – 00:15:59:25
\nS&P defies Fed pushback in longest win since 21.<\/p>\n
00:15:59:27 – 00:16:02:27
\nThe markets no longer believe the Fed<\/p>\n
00:16:03:04 – 00:16:06:03
\nits bets on that Fed pivot next year.<\/p>\n
00:16:06:03 – 00:16:09:27
\nThat sends bond yields sharply lower.<\/p>\n
00:16:10:00 – 00:16:13:03
\nBut it’s having problems getting past a certain point<\/p>\n
00:16:13:08 – 00:16:17:02
\nbecause of all the problems that we’ve discussed, not just here<\/p>\n
00:16:17:02 – 00:16:21:01
\nbut ad nauseum for quite some time.<\/p>\n
00:16:21:04 – 00:16:25:20
\nThe really important piece of this is that the markets no longer<\/p>\n
00:16:25:20 – 00:16:31:16
\nbelieve the Fed and confidence is critical in a Ponzi scheme.<\/p>\n
00:16:31:21 – 00:16:32:21
\nIt’s critical.<\/p>\n
00:16:32:21 – 00:16:36:14
\nYou gotta have that confidence and they gave it up.<\/p>\n
00:16:36:14 – 00:16:39:08
\nI mean, that was like a key tool that they had.<\/p>\n
00:16:39:08 – 00:16:41:09
\nThey don’t have that anymore.<\/p>\n
00:16:41:09 – 00:16:47:08
\nAnd by the way, how much more interest will markets demand?<\/p>\n
00:16:47:10 – 00:16:52:09
\nBecause when the Fed does pivot and pushes the rate those rates down,<\/p>\n
00:16:52:12 – 00:16:56:14
\nhow much damage will have been done to that point,<\/p>\n
00:16:56:17 – 00:17:01:06
\nnot just in our confidence, in our trust in the markets,<\/p>\n
00:17:01:08 – 00:17:04:08
\nbut in what’s happening in all of the markets.<\/p>\n
00:17:04:14 – 00:17:09:07
\nHow many of those zombie companies will be out of business<\/p>\n
00:17:09:15 – 00:17:13:15
\nbecause they’re on the verge of it right now?<\/p>\n
00:17:13:18 – 00:17:15:02
\nHow awful<\/p>\n
00:17:15:02 – 00:17:18:09
\nis the landscape, the market landscape<\/p>\n
00:17:18:09 – 00:17:22:00
\ngoing to look because of these high interest rates?<\/p>\n
00:17:22:05 – 00:17:27:06
\nThey got us used to this hope, Liam, of, you know, free money, which I already did.<\/p>\n
00:17:27:06 – 00:17:29:09
\nThis is no more in there.<\/p>\n
00:17:29:09 – 00:17:32:20
\nBut they’ve already gotten this used to zero interest rates<\/p>\n
00:17:32:20 – 00:17:34:13
\nand all of this free money.<\/p>\n
00:17:34:13 – 00:17:35:26
\nIt’s like an addict.<\/p>\n
00:17:35:26 – 00:17:41:09
\nYou have to keep giving them more and more and more to make them seem normal.<\/p>\n
00:17:41:15 – 00:17:45:11
\nBut it comes to a point where it doesn’t matter how much you give them,<\/p>\n
00:17:45:14 – 00:17:46:29
\nnothing is going to work.<\/p>\n
00:17:46:29 – 00:17:48:26
\nAnd that’s what Ray is talking about.<\/p>\n
00:17:48:26 – 00:17:51:04
\nThat’s what I’ve been talking about.<\/p>\n
00:17:51:04 – 00:17:53:01
\nAre you ready for that?<\/p>\n
00:17:53:01 – 00:17:54:22
\nWe don’t have years.<\/p>\n
00:17:54:22 – 00:17:59:07
\nLook at where we are. We don’t have years.<\/p>\n
00:17:59:09 – 00:17:59:20
\nAnd it’s<\/p>\n
00:17:59:20 – 00:18:02:20
\ngoing to impact the level of interest.<\/p>\n
00:18:02:23 – 00:18:07:20
\nBoth of these things, the Fed credibility and the demand from investors,<\/p>\n
00:18:07:20 – 00:18:11:12
\nwhich we’ve seen will have an impact on the level of interest<\/p>\n
00:18:11:12 – 00:18:14:27
\non this mountain of compounding debt and compounding<\/p>\n
00:18:14:27 – 00:18:17:27
\ninterest,<\/p>\n
00:18:17:29 – 00:18:19:09
\nbroad based buying.<\/p>\n
00:18:19:09 – 00:18:20:23
\nSo what’s the solution?<\/p>\n
00:18:20:23 – 00:18:24:11
\nWell, let’s see what the central banks are doing for themselves,<\/p>\n
00:18:24:11 – 00:18:27:03
\nbecause who knows more about what they’re doing than they do<\/p>\n
00:18:27:03 – 00:18:30:17
\nbroad base of buying, which suggests that increasing gold<\/p>\n
00:18:30:17 – 00:18:35:26
\nallocations are becoming an accepted prudential strategy across the segment.<\/p>\n
00:18:36:03 – 00:18:41:17
\nYou think this is global central bank buying through the third quarter?<\/p>\n
00:18:41:17 – 00:18:46:03
\nSo we just got this and let’s take a look at that<\/p>\n
00:18:46:03 – 00:18:51:14
\nbeing the highest that they have done on record.<\/p>\n
00:18:51:16 – 00:18:54:22
\nThe highest, and we haven’t completed the year.<\/p>\n
00:18:54:29 – 00:19:01:07
\nWhy do you think global central banks are buying so much gold?<\/p>\n
00:19:01:10 – 00:19:03:05
\nCause they know<\/p>\n
00:19:03:05 – 00:19:07:03
\nhe or she who holds the gold holds choices,<\/p>\n
00:19:07:03 – 00:19:12:04
\nand freedom holds your freedom.<\/p>\n
00:19:12:06 – 00:19:16:11
\nAnd if you are self-sufficient with food, water, energy, security,<\/p>\n
00:19:16:12 – 00:19:21:24
\nbarter, ability, wealth preservation, community and shelter,<\/p>\n
00:19:21:26 – 00:19:25:27
\nyou’ve got your freedom, you’ve got your choices,<\/p>\n
00:19:26:00 – 00:19:29:00
\nand they can’t force you into compliance.<\/p>\n
00:19:29:04 – 00:19:31:01
\nYou keep everything in the system.<\/p>\n
00:19:31:01 – 00:19:32:27
\nYou’re forced into compliance.<\/p>\n
00:19:32:27 – 00:19:34:22
\nYou’re not going to have any choices.<\/p>\n
00:19:34:22 – 00:19:36:11
\nI want everybody that’s watching.<\/p>\n
00:19:36:11 – 00:19:42:17
\nI want everybody that’s not watching to retain those choices.<\/p>\n
00:19:42:19 – 00:19:44:29
\nCentral bank demand for gold saw no<\/p>\n
00:19:44:29 – 00:19:49:09
\nlet up in Q3, building on the record breaking first half of the year.<\/p>\n
00:19:49:12 – 00:19:54:18
\nGlobal official gold reserves rose by 3337 tons,<\/p>\n
00:19:54:21 – 00:20:00:04
\n120% higher quarter over quarter<\/p>\n
00:20:00:11 – 00:20:04:20
\nand the second highest third quarter totaling Q3<\/p>\n
00:20:04:20 – 00:20:07:20
\nin 22 2022.<\/p>\n
00:20:07:21 – 00:20:10:15
\nOn a year to date basis, central banks have bought<\/p>\n
00:20:10:15 – 00:20:14:10
\nan astonishing net 800 tons,<\/p>\n
00:20:14:12 – 00:20:19:02
\n14% higher than the same period last year.<\/p>\n
00:20:19:04 – 00:20:23:17
\nWhat does that tell you?<\/p>\n
00:20:23:19 – 00:20:26:29
\nI believe so strongly that you should always do<\/p>\n
00:20:26:29 – 00:20:31:20
\nwhat the smartest guys on any given topic are doing for themselves.<\/p>\n
00:20:31:20 – 00:20:35:24
\nAs I have shown you ad nauseum how easy it is<\/p>\n
00:20:35:24 – 00:20:40:21
\nto manipulate that paper contract spot gold market that takes nothing.<\/p>\n
00:20:40:21 – 00:20:43:29
\nIt doesn’t even take very much money, easy peasy,<\/p>\n
00:20:43:29 – 00:20:47:17
\neasy peasy to manipulate.<\/p>\n
00:20:47:19 – 00:20:50:18
\nIt’s the physical market where we see the truth<\/p>\n
00:20:50:18 – 00:20:55:05
\nand whether you’re looking at the top tier or the average tier,<\/p>\n
00:20:55:12 – 00:20:59:12
\nthose have both broken out because demand is exceeding supply.<\/p>\n
00:20:59:17 – 00:21:03:10
\nIt’s a true cement demand supply market.<\/p>\n
00:21:03:13 – 00:21:06:13
\nWhat are you doing about it?<\/p>\n
00:21:06:16 – 00:21:08:26
\nThe other thing that I want to keep in mind<\/p>\n
00:21:08:26 – 00:21:13:11
\nis that it’s not all doom and gloom and being in the right place<\/p>\n
00:21:13:11 – 00:21:18:26
\nat the right time with the right asset puts you in a position<\/p>\n
00:21:18:28 – 00:21:19:29
\nwhere you can<\/p>\n
00:21:19:29 – 00:21:24:26
\nretain your this is your freedom for yourself, for your family,<\/p>\n
00:21:24:27 – 00:21:28:19
\nfor people that you love and care about,<\/p>\n
00:21:28:21 – 00:21:30:21
\nbecause everything else is a lie.<\/p>\n
00:21:30:21 – 00:21:32:10
\nEverything else is a contract.<\/p>\n
00:21:32:10 – 00:21:37:28
\nEverything else runs counterparty risk.<\/p>\n
00:21:38:00 – 00:21:40:03
\nSpeaking of that,<\/p>\n
00:21:40:03 – 00:21:43:15
\nyou make sure that you watch the latest video on the<\/p>\n
00:21:43:18 – 00:21:48:08
\nmunicipal debt danger because we think that these things are so safe<\/p>\n
00:21:48:14 – 00:21:52:05
\nthe way they’ve been sold to us and they’re not.<\/p>\n
00:21:52:07 – 00:21:56:08
\nAdditionally, I’m sure you are really loving the lineup<\/p>\n
00:21:56:08 – 00:21:59:29
\nthat we have put together with Daniella Cambone and Taylor.<\/p>\n
00:21:59:29 – 00:22:05:14
\nKenny I mean, it really we have such a good team on this desk.<\/p>\n
00:22:05:14 – 00:22:07:12
\nI’m really proud of us.<\/p>\n
00:22:07:12 – 00:22:11:17
\nAnd again, if you haven’t done this yet, click that Colon Lee link below<\/p>\n
00:22:11:19 – 00:22:16:16
\nand start your gold and silver strategy and get it executed.<\/p>\n
00:22:16:19 – 00:22:18:24
\nBecause having the right gold and silver<\/p>\n
00:22:18:24 – 00:22:23:00
\nfor your objectives and your goals is absolutely crucial.<\/p>\n
00:22:23:04 – 00:22:24:04
\nAnd you want to do it<\/p>\n
00:22:24:04 – 00:22:28:08
\nwhen you have the most number of choices, which is today, tomorrow.<\/p>\n
00:22:28:08 – 00:22:32:16
\nI mean, I’ve seen choices be reduced since I’ve been accumulating.<\/p>\n
00:22:32:18 – 00:22:34:16
\nWho knows about tomorrow?<\/p>\n
00:22:34:16 – 00:22:38:05
\nThis is a physical demand and supply market.<\/p>\n
00:22:38:08 – 00:22:39:11
\nIt’s off the market.<\/p>\n
00:22:39:11 – 00:22:41:06
\nYou’re not going to be able to get it.<\/p>\n
00:22:41:06 – 00:22:44:21
\nSo you want to get this done and executed a.S.A.P<\/p>\n
00:22:44:21 – 00:22:47:14
\nbecause we are absolutely running out of time.<\/p>\n
00:22:47:14 – 00:22:50:11
\nAnd if you haven’t done it yet, make sure you subscribe.<\/p>\n
00:22:50:11 – 00:22:51:24
\nLeave us a comment.<\/p>\n
00:22:51:24 – 00:22:53:11
\nGive us a thumbs up.<\/p>\n
00:22:53:11 – 00:22:58:14
\nShare, share, share, share.<\/p>\n
00:22:58:16 – 00:23:02:01
\nAnd remember that this<\/p>\n
00:23:02:03 – 00:23:04:06
\nis your wealth shield.<\/p>\n
00:23:04:06 – 00:23:06:19
\nAnd until next, we meet.<\/p>\n
00:23:06:19 – 00:23:08:24
\nPlease be safe out there. Bye bye.<\/p>\n
SOURCES:<\/p>\n
Ray\u00a0<\/span><\/span><\/a>Dalio<\/span><\/span><\/a>\u00a0says U.S. reaching a point where our debt problem gets even worse (cnbc.com)<\/span><\/span><\/a><\/p>\n US Credit-Rating Outlook Changed to Negative by Moody\u2019s – Bloomberg<\/span><\/span><\/a><\/p>\n US Kicks Off Fiscal Year With an 87% Surge in Interest Costs \u2013 Bloomberg<\/span><\/a>\u200b<\/p>\n US Government\u2019s Debt Interest Bill Soars Past $1 Trillion a Year – Bloomberg<\/span><\/a><\/p>\n https:\/\/fred.stlouisfed.org\/series\/FYFSD<\/a><\/p>\n \u200bhttps:\/\/fiscaldata.treasury.gov\/americas-finance-guide\/#:~:text=In%202022%20the%20federal%20government,2022%20was%20Individual%20Income%20Taxes<\/a><\/p>\n https:\/\/fred.stlouisfed.org\/series\/A091RC1Q027SBEA\u200b<\/a><\/p>\n