Top Three Videos – August 9, 2023

Quick Summary Bullets:

Financial Market Instability and Risks

• “The Final Chapter will be a credit event induced by either a tight or seized up credit system.”
• There is virtually no downside risk in the prices of gold and silver, making them attractive investments.
• The events in March and April represented six months’ worth of business, highlighting the rapid and significant changes that can occur in the financial markets.
• “It will only take one bank, one bail in, to trigger an absolute run as people start to worry if their bank is next.”
• “Non-recourse loans have to reset or be refinanced. It’s going to create a massive strain on the system one that there’s no way they’re gonna. We’re gonna get away from unscathed someone has to take the losses that’s the bottom line.”
• “Once the derivatives break, you could see many commodities that double, triple, quadruple in price literally overnight simply because the financial cushion of the derivatives suppressing the price is gone and then it’s discovered that the supply doesn’t exist.”
• The failure to deliver in the credit markets can cause financial problems, potentially leading to a bail-in scenario and mass hysteria among people seeking to exit the system.

Decline of the US Dollar and Global Currency Shift

• “Individuals and businesses are going to treat the dollar like a hot potato, causing a hyperinflationary moment when the dollar is dumped by nations stockpiling their own currencies for trade settlement.”
• The dollar is moving away from the system and towards extinction, as countries like Saudi Arabia, China, and Brazil are accepting other currencies like the Yuan for trade, signaling a shift away from the dollar as the global settlement currency.
• “When you put all these groups together…you’re north of 85 percent of the world’s people that are going to be indoctrinated slowly and then steadily and then all at once into a new settlement system.”
• “The 2022 balance sheet shows that the US has 155 trillion in debt versus just over 5 trillion in assets, with student debt being the largest at almost 40% of the assets – is that really a country that should have a AAA rating? I don’t think so.”

Transcript Summary:

• 00:00 There is a possibility of a credit event in the financial markets due to a tightened credit system, while the gold and silver industry has seen an increase in demand recently with lower prices and premiums.
  • The speaker discusses the possibility of a credit event induced by a tightened or seized up credit system, indicating a problem ahead in the financial markets.
  • The speaker discusses the current state of the gold and silver industry and provides an update on the news from last week.
  • Premiums for gold and silver have reached their lowest levels in four years, with no further expected decline, resulting in minimal downside risk for buyers.
  • Business slowed down in the last two months, but there has been an uptick in demand recently, particularly in the last two or three weeks, with lower prices and premiums bringing more people into the market, and the demand has been bigger than last year.
• 04:08 The banks are no longer safe for people’s money, and a potential crisis is looming as the pressure on credit markets increases and people start losing their money.
  • The speaker discusses the unprecedented event of the banks no longer being a safe place for people’s money due to Janet Yellen’s actions, and warns that when people start losing their money and are bailed in, panic will ensue, especially if it exceeds the FDIC level of $250,000.
  • The increasing pressure on credit markets is causing a significant outflow of money from commercial banks, leading to a potential run on banks and a shift towards investing directly with the treasury.
  • The banks are facing increasing pressure and there is a potential crisis looming, as the current calm in the credit markets may be the calm before the storm.
• 06:46 The tightening credit markets and increasing velocity indicate a forthcoming problem, as individuals and businesses abandon the dollar, causing hyperinflation and forcing the Federal Reserve to become the buyer of last resort for U.S. treasuries.
  • Non-recourse loans need to be reset or refinanced, which will put a strain on the system and someone will have to take the losses; credit standards have tightened and a credit event will likely occur due to a tight or seized up credit system.
  • The tightening credit markets and increasing velocity indicate a forthcoming problem, as once velocity turns higher, it becomes the “Hot Potato” moment.
  • Individuals and businesses will likely abandon the dollar, causing a hyperinflation event, as countries dump their stockpiled dollars and settle in their own currencies, eroding the dollar’s reserve status and forcing the Federal Reserve to become the buyer of last resort for U.S. treasuries.
• 10:59 The BRICS nations and other countries are moving away from the US dollar, accepting other currencies for trade, and potentially creating a new settlement system, as indicated by recent events such as the downgrade of US debt by Fitch.
  • The BRICS nations are likely to announce a framework for moving away from US infrastructure, possibly with a timeline, at their upcoming meeting.
  • Countries like Saudi Arabia, China, France, and Brazil are already accepting currencies other than the US dollar for trade, indicating a shift away from the dollar and towards other currencies like the Yuan, which is convertible into gold on the Shanghai Gold Exchange.
  • The majority of the global population, including the Belt Road initiative, OPEC countries, and 150+ countries, will be gradually and then suddenly indoctrinated into a new settlement system, with the recent downgrade of US debt by Fitch being noteworthy.
• 14:46 The US’s high debt to GDP ratio has led to a downgrade in its credit rating, making it resemble a Banana Republic and raising doubts about the credibility of the US dollar as the world’s Reserve currency, while concerns are also expressed about the erosion of freedom and justice in America.
  • The speaker discusses the downgrade of the US credit rating and argues that the country’s high debt to GDP ratio makes it resemble a Banana Republic.
  • The US is now heavily in debt and has lost its reputation as a trusted nation with a strong rule of law, making it a Banana Republic both financially and in terms of governance, raising questions about the credibility of the US dollar as the world’s Reserve currency.
  • The speaker expresses concern about the unequal administration of liberty and justice, the erosion of freedom and first amendment rights, and the gradual decay leading to issues such as transgenderism, cancel culture, and censorship.
  • America is eroding its values of liberty and justice, and the division of justice is not being applied equally, which is a symptom of a greater problem.
• 19:37 Financial problems and declining inventories in silver are causing concerns about the acceptance of the dollar as the world Reserve standard, leading to potential failures in the credit markets and increased demand for gold and silver, which may force the Federal Reserve to implement quantitative easing.
  • There are alarming times in the monetary front and worldwide opinion regarding the acceptance of the dollar as the world Reserve standard, with concerns about deficits and declining inventories in silver.
  • The speaker suggests that a financial problem triggering a failure to deliver or a failure to deliver causing a financial problem will lead to a collapse in the credit markets, resulting in a significant increase in the prices of various commodities due to the absence of supply.
  • Financial problems can cause a failure to deliver, leading to a potential bank bail-in and mass hysteria, which could increase demand for gold and silver.
  • There is a significant increase in demand for silver due to green energy, military, industrial, and monetary demand, which may lead to a squeeze on the comex and lbma before the Federal Reserve reverts back to QE and lowers interest rates.
  • The Federal Reserve may be forced to implement quantitative easing due to tightening credit markets and potential failures in various sectors, similar to past cycles where rate cuts created bubbles that eventually led to rate hikes and subsequent economic downturns.
  • Rates are higher now than during the last hiking cycle, the US has a deficit and the world Reserve status is being questioned, with the US adding $1.8 trillion in eight weeks, which took 209 years to do last time, and if rates are lowered it shows a lack of desire to hold dollars and a disregard for inflation and interest.
• 26:11 The speakers discuss the tight credit markets and the pressure on banks, while also mentioning their upcoming book with Robert Kiyosaki and the availability of low-priced Silver Bullman rounds.
  • The speaker discusses the current state of credit markets and the pressure it is putting on banks, and also mentions that they are writing a book together.
  • They are working on a book with Robert Kiyosaki and have a title for it, and they hope to finish it soon.
  • Silver Bullman rounds are currently available at a low price, making it a good opportunity to buy, and the speakers appreciate each other’s presence on the show.
• 29:13 BlackRock has made advancements in their silver and lithium projects, including updating their geologic model and increasing the strike length of their vein system, while also dealing with a bear market in the silver mining stock space.
  • BlackRock silver has made advancements in their Tonopah West and Silver Cloud projects, including updating their geologic model and increasing the strike length of their vein system, while also testing high-grade veins in their Silver Cloud project.
  • BlackRock has made a lithium discovery at Tonopah North and has been funding exploration drilling, while also dealing with a bear market in the silver mining stock space.