the other thing I would add is thatth back in 1933 when the US was under the biggest deflationary collapse it’s ever experienced the Great Depression what was the first thing that President Rosevelt did while he closed the banks and he signed executive order 6102 to confiscate Americans uh gold so he didn’t go for the the parency for the paper money he went for gold because it’s the ultimate form of liquidity Monday june10 2024 monco 64 home of alternative economics and contran Views there are a lot of uh analysts out there who think we’re about to enter some kind of liquidity crisis that the whole system could implode and that in that situation uh everyone will want to have dollars and by dollars I don’t mean uh gold and silver dollars I mean uh the kind that uh is a debt instrument the Fiat dollar and that’s what I’m going to talk about today uh they might be partly right but in the end they’re going to be completely wrong in my opinion uh before I do just like to thank all of you again for your interest interest in the channel and uh all the new subscribers so if you do enjoy my videos and haven’t had a chance to subscribe make sure you do make sure you hit the little notification Bell uh as well to be notified of all my new videos and make sure if you uh like a particular video to hit the thumbs up and and share it uh so liquidity uh what is liquidity well in a heavily uh indebted system uh when you get asset prices moving up and down sharply or I.E we get volatility and especially to the downside we if we see Bond markets uh dropping and yields Rising very sharply if we see the stock market as well dropping and currencies uh go going all over the shop right um if you remember well uh almost 2 years ago now the pound uh plummeted uh back in September of 2022 to almost one: one uh that’s volatility liquidity really dries up because uh a lot of speculators investors even investors and even people who run your Pension funds they’re highly leveraged because for the last 40 years that’s all that people have known uh lower lower interest rates more leverage higher asset prices and uh I’m afraid to say we’re up to here in debt and it’s not just me saying that even the IMF is is warning now um over the weekend the one of the deputies uh Chief Economist there said IMF warns us on balloony uh fiscal burden Gita gopath urges Washington and other advanced economies to reduce their debt and she says advanced economies not emerging market economies or lowincome economies um what’s her solution well her solution is uh spending less government spending less uh less deficit spending trying to uh get the debt down the way they they look at getting the debt down is not by paying it off that’s the ks is hate paying debt off they they just want the economy to grow faster than the debt it’s called fi Financial repression they want countries to inflate away the debt as well which is financial repression but what the IMF doesn’t seem to understand is is that uh the system needs the debt so I’m sorry uh Miss go gopen whatever her name is this is not going to happen and they’re going to keep uh trying to pump the liquidity especially in time of Crisis and that’s what central banks are there for so yes there might be a liquidity crisis and we’ve seen it before like back in ‘ 08 back in 2020 uh back in the year 2000 and so on and in in the European sovereign debt crisis but central banks always come to the rescue with more liquidity and how do they do that well they just create fake uh reserves out of th air to inject liquidity into the banking system they they will do whatever it takes just like uh Mario drag said back in 2012 when the Euro uh was on the brink of uh collapsing right or dissolving or breaking up but I will give people who call for this uh some credit of course because who knows central banks might be overwhelmed even though I think they can create quadr drillings if they like to but just in case they don’t uh yes we could have a liquidity crisis could one be starting now well some people are talking about uh how gold dropped uh on Friday and how the dollar strengthen the dollar is around 105 in in the dollar Index that’s another uh how can I say a distraction because the dollar was at 100 uh back in 1973 when the dollar Index was created so it’s not really that strong if anything if you look at the dollar versus the major currencies and by that I mean the Swiss frank uh the Singapore dollar the Deutsch Mark and you can still look at the Deutsch Mark the dollar is massively down in the last 50 years even against the Yen longer term but even if the milkshake people AR partly right uh I still think uh all the fake liquidity uh is going to go down John exter’s inverted pyramid here as you can see and what’s at the top of the pyramid well derivatives unfunded go government liabilities uh so we know what unfunded government liabilities are is social security Medicare e e everything that the government owes uh the public uh what about derivatives well derivatives are most most of the Foreign Exchange Market which uh trades as derivatives because uh anything that doesn’t trade uh spot is a derivative it’s leveraged gold Futures are derivatives silver Futures are derivatives yes people who uh live by derivatives who live by leverage yes they will be clobbered in the liquidity crisis and of course derivatives are not the real thing they’re just bets on on gold and whatever silver on Bonds on stocks on interest rates uh another Commodities so yes there might be a lot of uh volatility but then we’re going to continue coming down this inverted pyramid so what what’s the second level here from the top non-monetary Commodities uh private business real estate and then we get down to corporate and municipal bonds securitized debt listed stocks and then we come down to government bonds treasury bills and then paper money which is what a lot of people call Cash and even that is erroneous in my opinion because in the old days cash was uh spey and what is spey well it’s real gold and silver coinage uh because if you look at a dollar bill or Bank of England note it’s a promisory note for the stuff that’s at the bottom gold and silver there’s no silver here but you can add silver to it so uh yes in the liquidity crisis everyone’s trying to sell their assets to pay off debt and that of course is if you have thatt not everyone wants dollars to pay debts or Pounds or Euros um I don’t have any debt I don’t need any pounds or dollars to pay off my debt but yes there might uh a rush towards not just a dollar but uh physical uh pounds Euros Swiss Franks but at the end of the day the only thing that will survive in a complete deflationary collaps are gold and silver at least in terms of a monetary uh asset everything else uh will just be annihilated and it will be worthless and all the uh trillions and quadrillions because derivatives are in the quadrillions that have been created since the top in interest rates back in 1981 they’re just going to go uh yeah the way of the dodo bird it’s all going to disappear and people are going to realize that it was all mythical as President Putin would say mythical values and talking about President Putin he he mentioned at the SPI conference in St Petersburg uh over the this past weekend and it’s a huge conference I I I think the only people that are not attending are Western leaders and uh there are some I think Western business people attending but it’s huge it’s got over 130 countries attending uh from all over the world and uh he he said that America is the biggest de nation and he’s right he said the uh uh the US owes $54 trillion and uh to the world uh and I wanted to check here uh the list of countries with external debt because the milkshake people and a lot of people argue that uh Emerging Market countries will need to we will need dollars um maybe a little bit but I don’t think so look at who’s the biggest external debt uh holder in the world while it’s the United States here with $ 34.4 trillion in external debt then comes uh a distant second with 9.65 trillion the United Kingdom interesting isn’t it that uh the bullies of the world the anglo-american Empire are also the biggest uh external debtors in the world uh China is at number eight China doesn’t have a shortage of dollars uh China has plenty of gold uh some people calculate that they have 32,000 tons of gold and why would you be worried about liquidity if you have huge hordes of gold um and that’s how I see it yes maybe the dollar will look really strong just before the end but believe me unless you have debt and you need to pay it off why hold dollars uh I think it’s a big distraction because dollars and all other other currencies in the world are Fiat and you can never pay them off uh the system can never pay it off because you can’t extinguish it there’s nothing to extinguish it because we’re not on a on a gold standard or on an honest system uh the only way to keep to pay it off is to create even more debt and the most important thing in my view is that holding physical gold and silver as a monetary uh insurance or asset eliminates thirdparty or counterparty risk uh and that’s the worst thing uh in a deflationary liquidity uh collapse I would say my money though is uh of course on that uh central banks and governments uh they will do everything to keep the system going I.E they will uh inject liquidity monetarily and fiscally uh they’re not they’re going to fight till the end and that uh is going to have the same uh effect as a deflationary collapse the other thing I would add is thatth back in 1933 when the US was under the biggest deflationary collapse it’s ever experienced the Great Depression what was the first thing that President Roosevelt did well he closed the banks and he signed executive order 6102 to confiscate Americans uh gold so he didn’t go for the the currency for the paper money he went for gold because it’s the ultimate form of liquidity it would just be a hyperinflationary collapse where the currencies become worthless versus Real Money I.E gold and silver and uh why is it like a deflationary collapse well because the price of everything collapses versus golden silver it becomes really affordable uh but if you’re not holding gold and silver you’re not going to benefit from that and of course that’s up to you you could stick to uh having dollars you you know Fiat dollars or any other I you nothings uh currencies and I you nothings uh is a term that was used by John axter the man who uh devised that uh inverted liquidity pyramid I think you will be right at the end of the day whenever I if we have a deflationary collapse or liquidity collapse uh gold and silver Will Survive everything else will be gone uh but I don’t think he realized how desperate and extreme the central bankers and governments would become he did he didn’t see this coming all the QE all the massive uh deficit spending um yeah I think he passed away in 2006 just before the’ 08 crisis and everything kicked off so let’s quickly look at where the markets are this morning uh it’s 7:43 a.m. London time uh we got spot gold at 2289 right right on the lows down about $4 um the high’s been 2301 uh silver uh Silver’s up 29 or 1% at 2945 the low has been 2911 uh the high 2962 so what we’re seeing here is derivatives trading in Gold it’s not people getting rid of their phys physical gold and silver rushing for liquidity it’s speculators rushing for liquidity in the derivatives Market uh the Dow futures is down 50 uh NASDAQ 100 Futures down 15 S&P down four so very quiet here uh we’re seeing the uh currencies we’re seeing the Eur EUR down about half a percent so Euro’s down qu quite a bit here at 10750 what’s that all about well not sure could be related to the EUR EU parliamentary elections it looks like uh Europe is Shifting to the right which is a good thing in my opinion not that I care much about politics but uh there’s the feeling that uh Europe uh uh is going to have to move away from this green agenda because uh yeah there’s a lot of opposition to it people are waking up to the fact that is it’s a banksters uh scam really to take more and more tribute from you to tell you that the the climate is changing and the the world is going to be destroyed and you have to pay taxes and you have to do what they tell you right and uh yeah that’s a good thing in my opinion that uh this is being exposed uh the pound is pretty steady it’s down slightly uh the dollars up a quarter of a percent versus the Yen at 15718 uh what about um the Commodities well we got WTI Crude pretty much unchanged tradent 7542 and Brent as well up slightly at 7960 highr copper that’s up02 of a percent at uh 449 what about the bond market where are uh treasury yields this morning well the 10-year yield is up another three and a half basis points it’s approaching 450 it’s at 447 and uh yes on Friday Bon yields spiked quite a bit I think about 13 basis points so it looks like we could go back up um the um yeah we went down to around 4.3 uh which was a really important level a few years ago that we break broke above so there you go um we could see some liquidity problems but uh as I said uh they’re not going to let it uh get too bad and again they’re gonna inflate the system in my opinion so there you go with that I’m going to wish you all a very good day take care bye
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