Top Three Videos – August 16, 2023

Quick Summary Bullets:

Market Indicators and Financial Risks

• Michael Burry, known for predicting the subprime crisis, has shorted the market with a significant portion of his hedge fund, indicating a bearish stance on the current market.
• The inverted yield curve suggests that when the Fed lowers rates, short-term treasuries will increase in value, potentially creating opportunities for investors like Warren Buffett.
• The government has added over 1.8 trillion dollars in debt in just over eight weeks, which took them 209 years to create the first 1.8 trillion, highlighting the alarming acceleration of debt.
• The speaker suggests that the current state of stocks, bonds, and real estate indicates a potential bubble that could have significant implications for retirement savings.
• The “great unwind” in the financial sector can lead to a self-fulfilling prophecy and a death spiral as individuals and institutions rush to sell their toxic assets before they become worthless.
• A potential risk to retirement is the flight to cash, which could catch many people off guard if they don’t see it coming.
• The United States is woefully underfunded by debt to GDP standards, with 155 trillion in debt backed by only 5 trillion in assets, making it resemble a Banana Republic.
• The biggest money in the world is draining Comex, the lbma, and the Shanghai Gold Exchange, using the Western suppressed price as cover.
• The “great unwind” is causing BRICS nations to seek alternatives to the US dollar and US treasuries for trade settlement and liquidity.

Retirement Planning and Asset Protection

• Keeping money in banks leaves individuals vulnerable to various issues, including bail-ins, which raises the question of why anyone would choose to keep their money in banks.
• People often dismiss warnings about the risks to their retirement and label those who sell gold as “doom and gloomers,” but it’s important to consider the sound and logical motivations behind such warnings.

Transcript Summary:

• 00:00 Many people are unaware of the risks to their retirement and may be caught off guard by unforeseen events, such as economic downturns, so it is important to consider historical data and logic when making financial decisions.
  • Many people are unaware of the risks to their retirement and may be caught off guard by unforeseen events, such as economic downturns, and it is important to consider historical data and logic when making financial decisions.
  • Andy Schectman, CEO of Miles Franklin precious metals, provides a weekly market update on August 15, 2023, discussing the risks to retirement.
  • Existing retirements are at risk in the current regime, and people who think their certified financial planner will take care of them may be in peril if they don’t consider the looming risks to their retirement.
• 03:22 Warren Buffett and Michael Burry are holding cash or shorting the market, indicating potential risks to retirement investments, as the inverted yield curve, high mortgage rates, inflated property values, growing debt, bank downgrades, and the “everything bubble” in stocks, bonds, and real estate pose threats to retirement plans.
  • Warren Buffett and Michael Burry, two prominent investors, are both holding large amounts of cash or shorting the market, suggesting potential risks to retirement investments.
  • The inverted yield curve suggests that when the Fed lowers rates, short-term treasuries will increase in value, potentially allowing Warren Buffett to take advantage of upcoming opportunities, while the high 30-year mortgage rates and inflated property values may pose risks to the broader markets and real estate holdings.
  • Valuations relied upon for retirement may fall further than expected due to a higher interest rate environment and a growing mountain of debt, with the government adding over 1.8 trillion dollars in debt in just over eight weeks, resulting in a 50 percent increase in debt in just a few years.
  • Banks are being downgraded, leading to the selling of bonds and increasing pressure on unrealized losses, potentially forcing them to sell more bonds and causing a significant amount of money to be at risk.
  • We are currently in a highly unstable and risky time, and those who believe they are secure in their retirement need to consider the potential for sudden changes and the possibility of banks being bailed in overnight.
  • In order to navigate the current risks to your retirement, it is crucial to regularly reassess your financial plans and be aware of the potential consequences of the “everything bubble” in stocks, bonds, and real estate.
• 10:07 Bankers panic to sell toxic assets before they become worthless, potentially causing a death spiral that affects retirement and pension plans, while bond portfolios perform poorly and investors seek higher yields by bypassing commercial banks and going directly to the US Treasury.
  • The former bank director discusses the panic that sets in among bankers when they realize they need to sell their toxic assets before they become worthless, and this could lead to a self-fulfilling prophecy and a death spiral, affecting retirement and pension plans.
  • Bond portfolios are performing poorly, and keeping money in a bank account with low yields is not advisable when there are options like money market accounts with higher returns.
  • Investors are bypassing commercial banks and going directly to the US Treasury to eliminate the risk of the banking sector and obtain higher yields.
• 13:24 Retirees who rely on traditional markets may face financial difficulties, so it’s important to diversify investments and be aware of the risks, including the flight to cash, but storing retirement savings in paper cash is not a viable solution due to inflation and the rise of cashless societies.
  • Retirees who rely on overvalued and unstable traditional markets for their retirement assets may face financial difficulties and regret not diversifying their investments.
  • Most people won’t understand the risks to their retirement until it’s too late, so it’s important to prepare and be aware of the numbers, fundamentals, logic, and history, as there will be a moment that catches many off guard, including the flight to cash.
  • Physical paper cash is not a safe asset as it has no intrinsic value and its purchasing power is being eroded by inflation, so it is important to have emergency liquidity in the form of food, water, and cash, but storing your retirement savings in paper cash is not a viable solution.
  • Having cash in the bank may not be worth it due to the low returns and counterparty risk.
  • Having a two percent inflation target is illogical and detrimental to the standard of living, as inflation rates are actually much higher and cash is becoming less necessary due to the rise of cashless societies and the introduction of Central Bank digital currencies.
• 18:38 Mitigate risk by not keeping large amounts of money at home, as the US debt is increasing and could negatively affect banks, pension funds, and insurance companies, leaving retirees financially vulnerable and potentially leading to reduced payments and inflation in retirement.
  • Mitigate your exposure to a fracturing system by not keeping large amounts of money at home and instead consider other options, as the rating agencies are downgrading the US debt due to both the debt itself and the governance, with the national debt nearly doubling since 2019, which could lead to banks being negatively affected.
  • Pension funds and insurance companies are at risk due to a cascade of higher interest rates, leading to a significant shortfall in the country’s pension funds, and it is important to think critically and outside the box to address this issue.
  • Many people are unaware that their pension plans, including Social Security, will not be able to support them in retirement due to reduced payments, inflation, and underfunded pension plans, putting retirees at financial risk.
  • The speaker suggests that the United States may intentionally blow up its debt and issue a central bank digital currency, which could negatively impact entitlements like Social Security and the value of the dollar, leading to a potentially unfavorable retirement experience for many.
  • The United States is heavily in debt, with 40% of it being student debt, making it underfunded by debt to GDP standards and resembling a Banana Republic.
• 24:17 The silver market is being manipulated by well-funded investors, causing prices to drop, but commercial banks are now in a position to profit; there is a potential shortage of silver in the near future, so consider investing in silver to protect against inflation.
  • Things are changing and it’s important to be aware and prepared for what’s coming, so share this information with others and consider investing in silver as a way to protect against inflation.
  • The most well-funded investors in the US have manipulated the silver market, causing the price to drop, but now the commercial banks are in a position to profit as they are net long in silver futures.
  • There were a significant number of September contracts for silver, but most of them will likely roll over to December.
  • Commercial banks are draining the Comex, LBMA, Shanghai Gold Exchange, and ETFs of silver bars, causing a massive shortfall and manipulating the price, resulting in silver being massively oversold and a potential shortage in the near future.
  • Schectman discusses the bullish potential of silver due to short covering by big money managers, leading to higher prices and optimism for the future, and encourages viewers to sign up for their free newsletter.
  • Rick Rule discusses the importance of taking action after being exposed to new information multiple times, and encourages viewers to sign up for Liberty and Finance’s emails to stay updated on interviews and specials.
• 30:36 Schectman warns of a growing trend in the fall where countries will seek alternatives to the dollar and US treasuries for trade settlement and liquidity, known as the “great unwind.”
  • He anticipates a continuing trend that will gain more attention and discussion, particularly in the fall when people from Europe return from vacation.
  • Former bank director Aleister McLeod describes the need for countries to find alternatives to the dollar and US treasuries for trade settlement and liquidity, which is part of the accelerating “great unwind” that Andy Schectman alerts us to.
• 32:56 The fastest forms of payment are bank wire and cryptocurrency, metals will ship within 3-5 business days, and domestic shipping charges are $15 for orders under 500 ounces of silver or 10 ounces of gold.