The large questions are, when will the financial system fully collapse? And the way can I defend my household and my wealth earlier than it does? I’ll reply each questions by exhibiting you historic cycle indicators and the present actions of those that are in command of your cash. As a result of we’re on the finish stage of each the regime and foreign money shift, in any other case referred to as the altering world order. There are six phases to the shift, and Ray Dalio simply wrote this month that we’re approaching the ultimate stage, the breakdowns are escalating. In case you perceive historical past, you understand there are at all times winners and losers in each disaster. I’m going to point out you precisely the place we’re, what’s coming, and how one can place your self to win.
CHAPTERS:
0:00 Finish of Fiat Cash Regime
3:15 Central Banks Buy File Gold
7:37 Inside Order-Dysfunction Cycle
11:49 Stage 6 = Conflict
16:14 Greenback’s Buying Energy
20:20 Instance of Gold’s Buying Energy
TRANSCRIPT FROM VIDEO:
The large questions are, when will the financial system fully collapse? And the way can I defend my household and my wealth earlier than it does? I’ll reply each questions by exhibiting you historic cycle indicators and the present actions of those that are in command of your cash. As a result of we’re on the finish stage of each the regime and foreign money shift, in any other case referred to as the altering world order. There are six phases to the shift, and Ray Dalio simply wrote this month that we’re approaching the ultimate stage, the breakdowns are escalating. In case you perceive historical past, you understand there are at all times winners and losers in each disaster. I’m going to point out you precisely the place we’re, what’s coming, and how one can place your self to win developing.
I’m Lynette Zang, Chief Market Analyst right here at ITM Buying and selling a full service bodily, gold, silver supplier specializing in customized methods. And battle is all about technique, isn’t it? And we’re undoubtedly in a monetary battle and sadly quick approaching a bodily battle, and Ray and I are undoubtedly on the identical web page. We’re simply taking a look at it. A teeny weenie bit completely different. However make no mistake about it, that is the tip of the fiat cash regime. That’s why I got here to ITM buying and selling in two, 2002. I already knew it was the change and we’re already seeing some shifts away from fiat. However in line with Ray, the great factor is that the scary realities at the moment are rather more broadly acknowledged. And what that actually means is that the general public is beginning to acknowledge that there’s undoubtedly one thing incorrect. That’s what that top inflation does, as a result of it’s noticeable to the general public. And keep in mind, it is a con recreation. This complete fiat cash construction, this complete fiat cash system is a con recreation and it requires confidence.
The unhealthy issues are that circumstances are deteriorating even quicker than Ray anticipated. And the trigger impact relationships and the way they progress are usually not effectively understood <giggle>. So there are a lot of unintended penalties that may come from the actions as we’ve been seeing of the central banks, the central planners, the and truly the completely different governments. Nothing a lot is being performed to halt their progressions. In fact not as a result of we’re on the finish of this technique, however what you’re taking a look at in right here is that bodily gold demand is rising as a result of it’s extra acknowledged that there are loopy issues a foot.
Central banks have bought within the second, within the third quarter, simply the third quarter, a report quantity of gold. And who is aware of extra concerning the financial and the monetary system than the central banks? So in the event that they’re shopping for a whole lot of gold than you must also 36% progress in bar and coin funding. And what it’s important to perceive that’s individuals such as you and me, that’s the retail investor. 36% progress. That may be a very, excellent factor. That’s indication of a flight to security, to actual security, not wall road’s made up security. We do know that different consumption has grown by way of gold, however let’s take a look at the place we’re within the three cycles that make up the large cycle. I mentioned six phases, however there are three cycles. So the place are we? Effectively, the long run debt cash cycle with main reserve foreign money international locations are approaching the contraction restructuring stage of this long run cycle. And we’ve seen that, haven’t we? I’ve been exhibiting you the liquidity points which can be occurring within the authorities bond markets in Nice Britain within the US with the treasury involved about liquidity. All people’s involved about liquidity whilst they’ve printed huge, huge quantities of cash. That’s all of this liquidity. The place did all these trillions and trillions and trillions go? Evaporated into the ecosphere or transformed into onerous property. Moreover, this happens when debt property and debt liabilities have each risen to such excessive ranges that the rates of interest which can be excessive sufficient to incentivize collectors to carry them are intolerably excessive for debtors to fulfill their debt cost obligations. So what they’re saying is with the Federal Reserve and the worldwide central banks elevating rates of interest to draw patrons of this debt, these which can be borrowing from, you possibly can’t afford to pay it. And that signifies that we’re going to have frankly, a whole lot of defaults. So when this occurs as it’s now, these property will probably be dumped. Now what you’re taking a look at listed below are fund flows. That’s the cash that goes into shares, bonds let’s see, bonds blended, which implies a mixture of each shares and bonds in addition to cash markets, which we’ve been taught to think about as protected. But it surely appears to be like like I’m fairly glad that persons are realizing they’re a mutual fund and so they have frozen, they froze in September, 2019 and once more lately, and so they simply wanted to do an entire bunch of this so that you simply didn’t notice it. However each time they do this, it’s much less and fewer efficient. That is the primary time on this cycle the place shares, bonds and shares and bonds in addition to cash market funds have been offered. Bought. So what does that inform you? That might inform you that the flight from fiat cash merchandise has begun into the tangibles as we noticed within the ranges, particularly of the bar and coin demand for the retail public. But it surely additionally might inform you that traders are shedding confidence within the system. And as soon as that confidence is misplaced, I’ve been telling you this for years and years, as soon as that confidence is misplaced, that’s after we will see the hyperinflation. And that’s additionally after we will see gold expressed to its true elementary worth.
So moreover, the long-term inside dysfunction cycle, most international locations and ranging levels, particularly most western democracies and most particularly the US, at the moment are approaching the damaging inside battle a part of the cycle. How are you aware that? Effectively, it’s primarily as a result of largest wealth values and political variations since 1930 to 1945 interval. Isn’t that attention-grabbing? We do know that values have been shifting actually vastly. Nevertheless, we additionally see it within the wealth, the best degree of earnings and wealth and equality. And we additionally see it in our authorities. So going again and having a look at that, right here we’re in 1929. Does that date deliver something up for you? As a result of that’s when the punch bowl was taken away after you had the general public that received to hitch the celebration from the roaring twenties, proper? However you possibly can see at that time we had the best degree of earnings and wealth and equality. And naturally we went into World Conflict II. And that is the opposite level that I wanna make. And why you see, can we go to full display for a second? Why you see these props on my desk? As a result of battle at all times, at all times, at all times accompanies a foreign money regime shift. So if we cease and we give it some thought, and we’ll discuss a little bit bit extra about this, but when we cease and we give it some thought, World Conflict I used to be 1914, what occurred in 1913? Oh my, they instituted the Federal Reserve System and we began the transition to the financial, right into a fiat cash system proper off of a gold normal, off of a pure gold and silver normal. And what occurred within the forties? Effectively, World Conflict II occurred within the forties, however you then additionally had the Brenton Woods Accord the place the entire world was now connected to the US greenback. And the US greenback was supposed to stay at $35 for an oz of gold. 1971, we’ve got Vietnam. And what occurred then? We went off any sort of semblance of a gold normal right into a pure debt primarily based normal. So perceive battle, at all times, at all times, at all times a accompanies a fiat cash regime shift. And what are we being advised on this reset? It’s social, financial and monetary, proper? So we will see there we have been in, oops, sorry about that, in 1929, and right here we’re in 1971. And between 1929 and 1971, the lots participated within the progress that was round them within the financial system. However there was a shift in 1971 after we went fully off the gold normal. After which lastly, let’s take a look at the place we’re as a result of the inequality shifted and the pattern started within the mid Nineteen Eighties. This isn’t a coincidence. None of it is a coincidence. After which lastly, in fact, 2008 within the nice monetary disaster, effectively, we had a whole lot of protests. We had occupy Wall Avenue. They didn’t perceive what they have been preventing for. What they’re preventing for is to be pretty paid. It’s the financial system, the monetary, the underlying monetary system. And what about this most up-to-date Ok-shaped restoration? As a result of what that did was that made inequality even worse.
So let’s check out that as a result of in truth we all know that that in our authorities, we’re extra polarized than ever and it’s onerous to get too many issues performed as a result of that is about as a result of individuals wanna stand their floor. However what’s occurred to that earnings and wealth and equality? Wow, let’s take a look at earnings first. Mainly, you understand, you could have these which can be on the highest, the highest 10% that earn the lion’s share of earnings, however even worse than that, in addition they have 90% of the wealth. So we all know on this inflationary surroundings, that simply will get exacerbated, the worldwide prime 10% owns 76% of the full family wealth and 52% of the full earnings captured simply this goes by 2021. So it’s gotten even worse. And we additionally know that when persons are hungry and hopeless, they make selections they’d not in any other case make. And people selections might topple governments might topple central banks. And I gotta inform you, that’s my hope. However the world’s main powers are clearly in late stage 5, having intense conflicts between rival powers which can be getting ready to stage six, which is an precise navy battle preventing over existential wealth and energy with international locations within the arms of populous nationalists who’re extra inclined to battle than to attempt to work issues out, which we’re seeing between the Democrats and the Republicans on this nation. However we’re additionally seeing it in lots of different locations just like the battle between Russia and Ukraine and different NATO international locations. The US’ battle with China, which perhaps that was walked again a bit, however we’ll see as a result of Taiwan is a large hotbed challenge that we sort of poked the bear on that when Nancy Pelosi went over to Taiwan final summer season. After which North Korea’s threats to its neighbors and Irans conflicts with Israel and Saudi Arabia. And the way about Turkey and battle with Greece? Indian battle with Pakistan and China Yemen and battle with the UAE and Saudi Arabia and Palestine and battle with Israel. There’s a whole lot of battle and that’s why Ray is saying that we’re clearly in late stage 5, however in most international locations there’s additionally both nice will increase in inside battle, like I mentioned, Democrats, Republicans and likewise you and them, proper? We’re are being very divided. It’s divide and conquer. You may keep in mind all the battle through the, through the covid complete covid factor between vax and un-vaxxed and plenty of different issues and a whole lot of, a whole lot of freedoms that we’ve had being taken away. So there’s both nice will increase in inside battle or sturdy suppression of inside opposition. And I personally can attest to how I really feel about sure issues that I can and can’t say on air. So I self censor and a whole lot of different individuals do too due to that sturdy suppression. They don’t like what I’m saying, they only take me off air after which I do no one any good. However so long as you perceive that battle at all times, at all times, at all times an organization’s foreign money regime shift as a result of it’s a bait and change. Look over right here whereas we’re doing this over there. Oh, the battle is inflicting the inflation, not all the cash printing that we did, that’s not inflicting any inflation. In fact not. It’s the battle that’s doing it. In order that they use that to justify the inflation and likewise to distract you from what’s actually actually occurring.
However then what occurs to gold throughout these intervals of time? Effectively, we all know that when persons are uncomfortable and nervous, they go to a flight to security. And gold sellers swamp by demand as battle creates inflation scare. Effectively, what do you assume? As a result of gold protects you from inflation. And we’re gonna discuss extra about that in only a minute. However frankly, gold is taking part in its age outdated function as protected haven in instances of battle and disaster. And folks everywhere in the world are piling in and they’re. So we’re seeing them beginning to actually flee from the fiat cash intangible facet into actual cash gold as a result of that’s what protects you. Even in line with the BIS financial institution for worldwide settlements, gold held at residence just isn’t topic to political insurance policies. Mm. Yeah, maintain it, personal it. In case you don’t maintain it, you don’t personal it.
However let’s simply, let me present you what this actually appears to be like like as a result of this goes again to 1913 when the Federal Reserve was put in. And in case you simply take this one little zero away, what do you bought? You bought your buck, you’ve received your greenback, and this big drop off, 50% drop off was as a result of, and I’ll present you this in actual time, however it was as a result of a twentieth of an oz of gold, proper? So let me simply present you the distinction within the sizes. That is an oz of gold. You may see it fairly good. This can be a twentieth of an oz of gold, proper? So it was once {that a} twentieth ounce of gold backed $1, however after they put in the Federal Reserve, now this little twentieth of an oz of gold backed $2 and 40 cents, that’s why you see this main runoff. However I’d prefer to additionally deliver your consideration all the way down to zero, proper? So we will see. Now look, it mentioned that the greenback achieve buying energy in 1933 through the the despair within the thirties. Let me ask a query. In your whole research on college and all the pieces, have you ever ever heard anyone being higher off as a result of they might purchase extra stuff through the despair? And I imagine that what we’re coming into is a hyperinflationary despair. Nevertheless, having mentioned that, I’d such as you to note that it sort of appears to be like prefer it’s trailing off. However let’s check out the place we’re proper now, as a result of that’s from 2008 and clearly it’s persevering with to go down. And what the speedy inflation actually does is it erodes your buying energy much more rapidly. They’ll do something they need with paper, proper? They’ll make spot gold go up, down, sideways. However the actuality is they’ll even make change issues and make the inflation numbers look nevertheless they need. So, ooh, whoops to do. We’re down at 7.7 which continues to be terribly excessive in line with the central financial institution’s calculations and the way they jury rig issues. But it surely doesn’t matter whenever you take a look at the CPI as a result of do you see this buying energy going up? And apart from whether or not or not you see it, are you experiencing a capability to purchase extra stuff with the identical variety of {dollars}? That will be a no, as a result of that is by design and it must be actually apparent from my buying energy graphs. And for these of you that look to, you understand, who can we discuss to about them? This could be it.
Now let me present you in additional actuality, I’m gonna present you this presentation that I did in your capacity to buy utilizing this little, any bitty teeny weeny twentieth of an oz of gold. Are you able to guys see that? You may barely see it. Okay. And right here we go. This, which you’ll be able to barely see, however you’ve seen an image of it, proper? Is a $1 gold coin. It’s 0.0484 ounces of gold. So roughly, roughly a twentieth of an oz of gold. And again in 1913, this might purchase 9 loaves of bread as a result of again then a loaf of bread was 11 cents. Okay? So you can have purchased it with this little gold coin or this silver greenback or this silver certificates, and what does it say on that payable to the bearer on demand one silver greenback, proper? So you possibly can see what this all appears to be like like. However then they began the transition. So what did the fed do? Effectively, they only began printing and printing and printing sort of slowly as a result of they needed to undergo Congress. And what does it say on these? Effectively, they’re not gold certificates and even silver certificates, however now they’re federal reserve notes, and a observe is a debt instrument. So what I’d actually such as you to see is how they make this transition. And also you see the cash, there’s a half greenback and also you see it’s all silver. You may see that line. Then you possibly can see the transition the place not is it a full half ounce or roughly a half ounce of silver. It has copper in it with just a bit bit 40% silver. So we went from 90% silver all the way down to 40% silver, however my goodness sort of appears to be like the identical as you possibly can see. So they might make that transition. And the general public didn’t notice that something had modified. When in actuality in 1971 all the pieces had modified as a result of then all the pieces went to this. Now you possibly can see how intently the greenback payments, the $10 payments that from the gold certificates to the fiat cash certificates, you possibly can see how intently they appear as a result of what they know is that individuals marry the authorized cash of the state. So individuals received used to seeing this gold certificates and this silver certificates in order that when it transitioned right into a fiat certificates, nothing modified. And in any case, we have been advised that if we purchase America made merchandise, nothing will change. In fact, they shipped all the roles abroad for the manufacturing jobs. So all the pieces has modified. And after 1971, it’s been fixed with that. So this little $1 gold coin the place this silver greenback the place these 10 silver dimes, now you know the way many loaves of bread this buys? Effectively if we do the mathematics proper, so 0.0484 ounces of gold in a single and a $1 gold coin. Then at a greenback 53 a loaf, which is what the BLS says, the typical worth of a loaf of bread is would purchase you 56 loafs. So maintain on a second, let me get ’em. Okay, so we’ve received 9, 10, 14, 25. I’m gonna donate all these loafs of bread after we’re performed with this experiment. 28. I imply, do you get the purpose? It’s not that this bread is price that rather more cash, it’s that the {dollars} are price much less and fewer and fewer. So whenever you see the worth of a inventory market going up or actual property going up, is it actually that that’s price that rather more cash? No, it’s that due to all the printing and all the debt, it’s price that a lot much less. The operate of the cash in the present day is to get you to volunteer your labor and your work and switch that their manner. So what we’re gonna speak about is to how one can defend your buying energy, how one can defend your actual property values and maintain them.
And admittedly, with all of the excessive inflation, you can now even get extra loaves of bread than what I confirmed you in that video. However I believe it makes the purpose. You’ve received to just remember to are protected. We’re on the finish stage. When?
I can’t inform you the precise second, however I can inform you we’re nearer and nearer and nearer each single day. Now, when you have not already performed so, ensure you watch my Espresso with Lynette, interview with Wolf Richter. He’s sensible. And final week’s treasury liquidity video, which is critically necessary that you simply perceive. I imply, I’ve been speaking about liquidity for some time, however you might want to perceive that that is the muse. So ensure you do this. And likewise go to Past Gold and Silver, the place we speak about the remainder of the mantra, Meals, Water, Vitality, Safety, in addition to some Barterability, Neighborhood, Shelter, and a little bit little bit of Wealth Preservation. So the Calendly hyperlink is under. If in case you have not but, set your technique up. This isn’t the time to procrastinate or delay. Get it performed and get it executed as rapidly as you presumably can. And in case you like this, please give us a thumbs up. Just be sure you subscribe. Hit that bell. We’ll let you understand after we’re going reside. Depart us a remark and share, share, share. And till subsequent we meet please. Please be protected on the market. Bye-bye.
SLIDES FROM VIDEO:
SOURCES:
https://www.linkedin.com/pulse/changing-world-order-approaching-stage-6-war-ray-dalio/
https://inequalityjd.wordpress.com/2022/05/17/world-inequality-report-2022-a-summary/
https://www.dallasnews.com/opinion/commentary/2022/11/13/are-we-more-polarized-than-ever/