Reaction & Commentary
So nice to see you I wish it was in person again uh especially since probably where you are it’s really freezing yes but you are missed it’ be nice for you to be here too yes and I just want to say the feedback uh that we
Received from uh your home tour and for those of you who missed it you you need to watch it because you’ll see the other side to to Lynette uh which was just beautiful so I just want to thank you again for that because it was just so
Well received and people just want more and more and more and we could talk about that later but first we have a lot of when you come out the next time though Daniela then we can go do that at the bugout location well that’s what the people want that’s those were the
Comments they’re like we want to see the bugout so yep we won’t say anything more perhaps we’re planning something very special but that’s what we’re going to say for now Lynette I’m happy you’re on joining us to kind of kick off our Outlook series which I like to do every year uh
With obviously our fan favorites I want to start with one of the biggest headlines this week about job openings unexpectedly falling in October to the lowest level in 2 years so is this a sign of a cooling labor market just for some stats here employment openings totaled 8.73 million for the month a
Decline of 6.6% the number was well below the 9.4 million estimate from Dow Jones and the lowest since March of 2021 were you surprised by this number Lynette or actually I was not really surprised by this number because you know with the rates being up where they are they are
And the corporations so dependent on debt and having to roll over this they have to cut corners and so what the FED wanted which was a cooling job market because clearly the public being able to ask for more wages was causing all of this horrible inflation
So no I was not surprised by this U maybe in how long it took for this to happen but we are really still at the very beginning stages of feeling the impact of those rapid rate Rises so yeah no and I think we’re going to see more
Of it too well I was going well to that point do you think this statistic or you know what’s happening in treasuries and whatnot and with the yields is going to change the course of action that the FED will take take at their upcoming December meeting I think the FED wants to stay
The course and not surprise the markets because they are really fighting for their credibility so uh yeah I don’t think that this is going to make any difference in the choice that they make because they it’s not like they want to stimulate the economy they still need to
Slow it down so let’s look at what’s happening happening in the banking space and what you can expect or what we can expect in 2024 because a report posted on the social science research Network found that 186 banks in the US are at risk of failure or collapse due to the
Rising interest rates um and a high proportion of uninsured deposit you know that we’ve been speaking at nauseum about the bank failures and even about how the mainstream media almost forgot about covering this but I bring this up because today Lynette Wells Fargo announced um and and warning of a
Severance cost of nearly 1 billion in the fourth quarter as layoffs Loom I mean one billion so right what do you what can we expect in 2024 with the banks here well you know the banks are in such a precarious position and I think that they will likely a a major bank failure
Would likely trigger that fed pivot that’s making the ri the the uh interest rates drop and the markets rise right now uh but I think we’re seeing actually a shift in Deb banking you know and I think that more money is going privately and and if you look at
What the banks have been doing this isn’t really new news they used to be market makers in other words support the treasury markets support the stock markets but that’s shifted to private hands which is also where a lot of money is now shifting so the deal making the
The money that the banks used to make on creating a lot of those deals is seriously in jeopardy with the rates where they are right now because everything is starting to slow down and um you know will we see a Fed pivot next year probably of course what’s going to
Happen to inspire that fed pivot is going to be it could be a bank failure but it could be an explosion in the debt markets and the treasury markets I mean there are a lot of black FL swans that are flying all around and this is what you try and
Educate the folks on right Lynette is if you do have large amounts of money in the banking system like yes a part of it is insured and whatnot but you you always say like why would you be putting yourself at risk like that like why would you be having all your funds in
The banks well you know I do say that and the interesting thing is whether you’re an insured depositor or an uninsured depositor the FDIC has less money now in its coffers in the diff fund to pay for failing Banks than they did back in March and April when we experienced the
The kickoff of the bank failures with the regional Banks so the insurance I mean when did they do that well they did that back in the 30s with all the other bank failures and it was just about perception management getting you to think that everything is okay and in
Reality things are not okay and I think that this is the leadup to watch the balance I don’t think they were ready for it in March and April but I think they’ve been getting ready for it because there’s no money in the diff fund to Pivot I want to talk
About the impact or what we’re seeing on the consumer the day-to-day American right because I know you alluded to this in one of your last videos that online spending you know shot off nearly 8% year over-year to 38 billi billion during that during you know Black Friday
And Cyber Monday so the consumer was absolutely present but at the same time Lynette we read head headlines of you know 60% of Americans when you know can’t afford groceries that they get out to get to the checkout line and they’re having to put groceries away because
They just can’t pay that so what is the truth when it comes to the consumer do think oh there’s no doubt about what the truth is with the consumer um Mo they you know really what’s been supporting even the consumer spending has been those that make north of 100,000 a year and that
Used to be a lot of money yeah that that’s not a lot of money these days so the truth of the spender even when they get up there if they can’t break that down into 4 easy payments which is a lot of what happened and is happening during
The Christmas season they’re using those those um money it’s not the transfer but where you can break it down into small pieces in order to make the purchase and consumers are just they’ve kind of thrown any caution to the wind because when you know that you’re Beyond in
Trouble I mean what do you do when you know that you can’t pay it any and it makes me think how many you know maybe the consumers are just using those you know pay pay later scams as I call it for whatever material objects and maybe not so much for groceries um they’re
Using that’s the scary part Daniela is they’re actually using that quite a bit for Necessities for groceries you can live without a blouse but you can’t live without food and that’s the scary part so so this brings me to my next question because I know you did a deep dive on
Treasuries right yes um so we’re seeing all the headlines now treasuries are The Comeback Kid they’ve resumed their rally you know as the further labor market cooling reinforced speculation that the FED will be able to cut interest rates but just in September they were out of fashion now they’re the comeback kid again
Lynette what is your analysis because I know you did a lot of research on this on what’s really happening in treasuries and what is the takeaway here okay well first of all treasuries are still in deep doodoo they’re volatility as is the volatility in everything has come back down but that
Doesn’t mean that they’re any more liquid the reason why you see the change in the interest rates is because of the anticipation of the FED pivot pushing interest rates down so right now the markets are doing the the fed’s job but markets are really fickle particularly
When they no longer believe the Fed so you know I think that going into 2024 we we definitely well I can’t say definitely because I can’t guarantee anything other than I’ll show up and do the work but um I definitely think that we will see a major crisis that’s going
To happen into 2024 to force the fed’s hand and and and the market could actually push that because of what they are anticipating what kind of major like is it a financial major crisis oh yeah be between the banks and also in the treasury bond market and in the debt
Markets in general I think that with all of the debt that needs to roll over in 2024 and they can’t these corpor operations and these governments cannot afford this level of interest because we had been given that hopium of lower of zero interest rate policies so rather
Than taking advantage of it and doing it the right way to reduce debt corporations and governments use that to load up on even more debt and that debt has to roll over and a huge chunk of it needs to roll over in 2024 in a much higher interest rate
Environment than than uh they had when it was in zero interest rate policy right who buying the debt okay who’s buying the debt yeah that that’s such a good question and one that I keep asking and when I look at who’s buying the debt it’s primarily institutional buyers which are those
That buy for the public public right so they’re transferring the risk of the treasuries from the few from the stable hands like Banks which really haven’t been supporting that market and heck even the Federal Reserve if you look at their balance sheet they continue to run off their balance sheet it’s still at
Nose bleed levels but it’s it it is a lot lower and sovereigns foreign governments I mean the stable money that really doesn’t care what the bonds do in terms of price action they’re leaving these markets and the buyers are in the public markets whether it’s mutual funds or ETFs and
Pension plans so retirement plans IRAs 401ks this is a huge that’s what’s really happening right now is this huge transfer of risk from the few from the 1centers to the many to the nice public and that scares me even more I mean it is one way to take care of the
Retirement crisis isn’t it valid point and I know a big part of your strategy obviously your solution is owning gold and silver and everyone wants to get your take on the breakout what that we’ve seen in Gold yes we’re at alltime highs and yes mainstream media once again is interested I’m getting phone
Calls can you comment on what’s Happening gold you know when you get those phone calls you’re thinking oh oh exactly because we don’t really want to talk about it and there was a big short squeeze because we did you know gold uh spot gold because and I always like to differentiate between
Gold physical gold and spot the contract because the contract is so easy to manipulate so what do you see you saw spot do a triple top and then on Friday it was at a quadruple trle top and then if you look at the action because it actually broke out and made new highs
And especially in the Futures market and then all of a sudden all these short sellers come out to whack it below so we have to see if that breakout is pervasive but I my guess would be yes and my guess also well it’s not a guess
It just always happens there was um I think it was Wednesday or Thursday I have to go back and look on the chart it was a gap up which means that the price of gold closed here and then the next morning it opened up here right and
Then it continued up to go to new highs well whenever you have a gap and I think this is so important for viewers to understand because whenever you have a gap that Gap must be filled either higher or lower doesn’t really matter but there’s there’s that Gap so number one
A rising gold price is an indication of a failing currency and they don’t want you to realize the currency is failing so once it broke to those new levels it had to be whacked by the Central Bank minions at least in terms of the US dollar technically I can’t tell you when it’s
Going to fill the Gap but it wouldn’t surprise me to see it go down now and fill that gap before it goes to much higher prices and I think that that’s critically important for those people that are looking at positioning into asset protection gos because there’s all
Different kinds of gold and some gold is impacted more by the spot Market than others um so I mean it broke out and that was from a triple top and that is Major those things don’t happen often or easily and technically no no and you know when Goldman Sachs is calling
$2,500 gold but let me ask you this let me ask you this Lynette is a positive to the ring gold price right is it gets interest from the public right like I had a girlfriend that I haven’t spoken to in 10 years you know calling me up saying you know how
Do I buy gold right so is is is that a positive that in a sense at least it wakes up people who had never thought about gold right or were never educated on owning gold or silver to the idea of hey there’s other there’s other things outside of the
System yes and and and we’ve been witnessing that and it is the public by I mean look at they’re holding they’re having gold bars at Costco and they’re selling out yes right yeah they’re selling out as fast as they get them and that’s an indication of public awareness
And so it I I did a video not that long ago on the trend cycle and where we were in the trend cycle and recognizing those patterns and so none of this is unusual but what will take it to the next level and I’m just referring well no I’m
Referring to both the spot markets as well as as well as the physical only Market maret is that public awareness and that’s already underway and I’m happy you brought up the weakening currency because I want to bring up this news item with you about Vladimir Putin’s visit to Saudi Arabia
Now it’s extremely important because it’s his only third trip outside the former Soviet Union since the invasion of Ukraine the other two trips Iran and China so if Russia wants to dollarize the global energy trade and the U us obviously does not then Saudi the world’s biggest oil exporter will likely
Hold the key to whether the US dollar retains its Primacy over the global energy market so which way Lynette do you think Saudi would turn well I think we’ve been watching it as they joined the bricks I think you can see it in even the new relationship or the relationship that they’re the
Tighter relationship that they’re getting with Venezuela um I I think our days the dollars days as the world Reserve currency are quickly coming to an end and uh and you’re right I mean was Saudi Arabia that enabled us to retain that title all these years and I
Think it’s over so what would be the counterargument people say but look Lynette look at Argentina now they actually want to adopt and embrace the US dollar so yes there may be people turning their back on their the US dollar but there are also Nations who want to still embrace the
Dollar yes uh well even when you’re looking at those Nations that are embracing the dollar it’s because our currency is devaluing slower than their currency and the dollar is still more recognized you know rather than really understanding that this is good money and and this stuff is just you know I
Know people don’t like it when I call it garbage but it is real it is really garbage um and if you look at Venezuela you know their currency has more value as a napkin for an empanada and we’re all going there so even though there are countries that are trying to
Tie their currency or their economies to the dollar it’s about perhaps generating some level of confidence public confidence but it’s really only because it’s losing value more slowly but make no mistake about it you see it every time you go to the grocery store or you buy anything the dollars values going
Away and it doesn’t matter how many you have it matters what you can convert it into what you can use as a tool of barter and that all goes back to the public and the public confidence because every other layer of confidence bank to bank Central Bank to
Central Bank Market to central banks the last level of confidence in this system is the public confidence and that’s why it is so critically important to hide what’s really happening in the real gold market in the physical only Market which is has been making new highs well in
Especially up at that one per per Center level the Rarities that’s all-time highs alltime highs whereas when you’re looking at the more normal collectible Market which still is a physical only Market that had its break out a while ago right so for the spot Market to now
Be breaking out it is all going to get more visible by the public and you can say you know bye-bye because once that confidence is gone there is no more confidence left there’s your hyperinflationary depression there’s your reset into the new system and what are you going to have to protect yourself
And I guess to to wrap this all up because I know we threw a lot of information at at folks right now and this is really the start of our Outlook right and and your views of how you’re preparing for 20 I know you’re always preparing but and and and you warn of
You know your your concerns about a major financial crisis I mean heading into 2024 what’s really at top of mind I mean you mentioned that we didn’t even we didn’t even talk about cbdcs but I mean they’re not even hiding it anymore I mean everyone must have seen the IMF
Headlin saying like there’s no turning back it’s it’s coming um but exactly top of mind for you 2024 what are really things that you’re you want to focus on or I news items that you think we can’t we can’t without doubt right I mean with without a doubt it is the treasury
Market because that is the foundation of the system and it is il liquid you cannot go in and sell a large block you have to break it down into itty bitty pieces um so that’s one thing the other thing that I’m also uh looking at uh
Although not as heavily as that I would say that that and the depth markets and all the need to roll over a lot of risky debt um is is top of mine but I’m also watching what’s happening in Bank outages and uh people having trouble accessing accounts because everything is done
Online and so I think that there might be some and I could be wrong about this this is just my opinion I I don’t have fact in it but when I see it seems like there were a lot more outages at and and uh the loss of people’s ability to
Access their brokerage accounts their bank accounts Etc and they’re saying oh well a little glitch over here a little glitch over there I think we may see a lot more glitches and so I think it’s absolutely critical I think it’s critical for people to have a plan and
Execute it and and you know part of that plan is is having some cash even though it’s garbage it’s still the recognized tool of order outside of that banking system do I think we could see a bailin this year maybe toward the end of the year I
Don’t think at first but maybe toward the end of the year would not surprise me because I’m looking at the opportunity that they had and remember it wasn’t supposed to impact uh the public right the Banks were supposed to put more money into that diff fund to
Bail out the banks but it’s lower the most current report is showing that it’s even worse and less than what they had when wow Fed chair pal and Janet Yellen bailed out the banks don’t call it a bailout but they do have that on their books uh bailed out the banks in March
So bank failures uh bailin treasury market and accessibility are I think going to be really interesting this coming year and I you just reminded me of something because a lot of folks ask me you know what is that cly Link in our description of YouTube but oh if you’re interested
To know more about what Lynette’s talking about I always say if you want to explore more of the subjects um you can you know schedule an appointment to speak with one of our colleagues about the topics we cover or if you need a strategy surrounding gold and silver PS
I do realize it can be overwhelming for a lot of people um but once you break it down all of a sudden it just makes a lot of sense that said yes it it does and the other thing is is what we’re talking about here are repeatable patterns yes
Because people are confused right even when you’re listening to the Talking Heads wow this hasn’t happened before this hasn’t but but the reality is when you step back and look at a longer picture a longer term picture what you see are these repeatable patterns happening over and over and over again
So you know if you click that calendly leak our strategy at itm trading because I’ve been studying currencies and currency life cycles since 1987 you’ve been in these markets for a very long time do you know anybody else that has been studying currency life cycle since 1987 I think so right you take
Crown so but but you know the key really is it’s not rocket science you just look at that pattern it tells you where we are in the cycle and then you know what to do to protect yourself and you can get all of that information in the
Calendly link set up a strategy but get it executed because I don’t think we have much time left and on that point well I wanted to end it on two lighter notes so one okay one I thought of you when I saw Elon Musk unveiling his new Cyber truck that apparently is
Bulletproof and he was speaking this is the truck to own for the coming apocalypse so even Elon Musk is preparing but I was like would Lynette get that truck well the problem is that you can’t fit a bicycle in it ah so you want a bike
Rack well it’s not I want to be able to put stuff in it okay uh even though I have everything I need at the bugout location yeah I still need to put my chickens from down here in there and get them up there but yeah I might I I’ve
Looked at I’ve looked at uh the range isn’t the range is not long enough right no well fortunately in a bugout location you really want to be close enough that even if I had to walk I could walk yeah I mean it would take me a minute I’m not
Denying that but if I couldn’t get through on the roads we’re else going to they were thinking about putting in a helipad I mean yeah you want to have a a strategy and a way to fulfill your goals and my personal goal is to create a safe Community for the community that I’ve
Developed so far and my family yeah it’s a beautiful thing and you’re included in that Dani so I’m so blessed for that um and the second thing I want although you’re a city girl I think it will be very fun to get you up there I really am H anyway we we
Have to take a a we have to take images of your face along the way we will do that okay but second I have been following these holiday Christmas characters since I was born but I didn’t know they had a name until I came to your house and you said
Oh the what are I can’t even remember the Island of Misfit Toys Misfit I didn’t know that was their name anyways I love the Island of Misfit Toys and Lynette Zang recreates this at her house we have a photo of it I love that and I love how what were you saying offline
Because we are all just a bunch of Misfits well AR aren’t we though and that’s part of what the people that see what’s coming so the people that listen to you and me and others in our Arena they feel like they’re Misfits because everybody else looks at them like they
Have you know two heads or a unicorn you know head with a dog body or or whatever Misfits but we’re not Misfits and and people also feel like they’re in an island they’re not on an island they’re not alone so you’re you’re anybody that sees and understands or even sees what’s
Coming and attempts to to understand it and prepare for it you are not a misfit although we’re all Misfits to your point danela and you’re not really at an island alone there’s lots of us out here that’s the importance of community and coming together and supporting and helping each other love
That well on that note I want to wish you a wonderful holiday season and all the best despite all the ugliness sending love lots of it your way thank you so much for continuing to educate us all thank you thank you thank you oh I I
Back at you because you do such a phenomenal job and you know honestly I’m glad that you’re with it because you are like the best interviewer that was never my strong site deep Dives that kind of stuff that’s my strong suit well and then now together now we’re working
Together so could you just imagine 2024 will hold we’re just scratching the surface I can’t even it’s going to be fabulous is the limit yes all right well Lynette we will speak me to you soon um and thank you thank you again and thank you all for watching we’ll have more
Incredible content coming your way so be sure to stay tuned to the Danel koni show here only on itm trading and don’t forget to sign up at danela kumon.com to stay on top of it all that’s it for me we’ll see you next week
