gold news

 Silver's slingshot move has begun. I'm coming to you from Phoenix here where it's currently 106 degrees and the only decent light was out on my balcony. So, uh, this is going to be a short video before I melt. It wouldn't be a pretty sight. Anyway, the, uh, slingshot move is just beginning, but it's continuing. Uh last Thursday it broke 36 bucks and I said that this was a major event and I showed you the cup and handle pattern that had been building for more than 45 years. And this means that we're going

to be seeing some tripledigit silver sometime soon. But what is different this time around? You know, in many many videos, I've said that uh the that silver's really astronomical prices, the portion of the the market where it starts to outperform gold would come when there's monetary demand. When people uh want it as a safe haven investment, uh and they're fleeing dollars when when there's monetary demand, it's going to be big. And so, um what is different this time around?

Well, you know, if compared to the 1980s, if you look at what's going on right now, uh the stock market is getting really skewed. The Magnificent 7 is now making up most of the, you know, it's it's been this way for a while, but it's it's gotten worse where uh the whole market is very warped. And so this is going to be when whenever things get out of balance, they eventually come back into balance. It just takes a little while. So that is one of the factors. Another one uh this is the US

home prices and this is inflationadjusted uh compared to wages and what you see here is one of the greatest real estate bubbles in history. But at the bottom pane here we've got an excess overhang of inventory and it's only been worse at the beginning of what turned in to the global financial crisis back in 2008. This next chart, I have been presenting this since 2004. This is Dr. Robert Schiller's uh inflationadjusted home prices going all the way back to 1880. And when I started uh showing this uh

was way back in 2004 and five. My very first video recorded in 2005 uh shows this data. And that is when nobody knew who Dr. Robert Schiller was. He was just a Yale professor and he wasn't like uh producing data for standard and pores and stuff like that. Uh nobody cited him or referenced him. Uh and I was showing this data right where that red arrow is and telling people that we were going into the greatest re real estate bubble in history. And that's when everybody used to say, "Oh, but real estate goes always

goes up. There's nothing to worry about." And uh you know what the outcome was there. Uh but again, look at where it is today. This is currently the greatest real estate bubble in history. And then we've got uh delinquency rates of multifamily housing. This is Braavos Research. And what you see here is that um we are starting out this we're going into a recession and we're starting out this recession at rates that uh that it peaked at delinquency rates in 2010. The global financial crisis was here during

this recession and the rates the delinquency rates were very very low and they accelerated as everything crashed and uh and then uh we've got people falling behind in car payments and this is huge that uh it's we're back up above the levels of the 2009 and 10 during the global financial crisis. So, we're headed for a really bad recession coming up. And then Elon Musk uh retweeted this. It took over 200 years uh to for US debt to reach 12 trillion and we added another 12 trillion from 2020 to

24 on top of it. So, let's take a look at debt to GDP. Uh this is uh from long-term trends. And what you see is that uh after the American Revolutionary War uh to fund that war, we came out with the Continental currency and we printed that into oblivion and the debt it got up to about a third of the economy, a little less. And then uh we paid that down. And then the civil war, Lincoln came out with instead of the Continental dollar, we had the greenback. And he paid the troops with the uh greenback, this fiat currency

that was not the goldbacked dollar. And it fell by twothirds in value. It took uh three greenbacks to buy a silver dollar or a goldbacked dollar. And then we paid that down. And then we uh established the Federal Reserve just in time for World War I and created this phony baloney gold standard with a reserve ratio of they only had to have 40% reserve in gold. So they were able to expand the currency supply, go deeper into debt, and we got a little over a third of the economy one more time. And then they start paying that down. And

then the Great Depression and World War II and that peaked at 121% of GDP when the entire world was fighting for survival. And then we grew the economy much faster than the politicians could dig this pit of debt and we got it back down to about onethird of the economy. Uh then we went on this thing where supposedly deficits don't matter. And now where are we today? Well, let's zoom in on this. We'll go to the Federal Reserve's website. And what you see is that we're back up at 121 uh percent of

the uh economy, the size of the debt, and we're not in a world war. We're not fighting for our very lives. Uh this is uh disastrous. Basically, this is uh six fifths for people that are into percentages. Six. We we we we are uh that deep in debt. And the problem with debt is as Tavi Costa points out the uh public debt the net interest payment to GDP is approaching 5% on just the federal debt and that doesn't include state and local debt and uh so that puts us in a hole making it very difficult to climb out of

this. Moody's has downgraded the US credit rating uh citing concerns over increasing US government debt. And what's happening with the rest of the economy? Well, China's exports uh fell at the fastest pace in 5 years. Well, what does 5 years incorporated in incorporate? It incorporates uh the COVID lockdowns. It incorporates when the entire world just basically shut down and nothing was coming from China. And so, uh, this is bad news for the economy because all of those things that China that we import from China get sold

at like Best Buy and and you know, all these other places. And then we've got the uh ADP average uh monthly employment change. And so you've got the average from many many years past. And then in the blue bars here are 2025. And what you can see is January it was way under. February it was way way under. March it was about the same. Uh April it was way way under. And in May it was way way way under. And so job growth has slowed to where it's to me this is uh big evidence that we are going into a bad recession.

And when you couple it with all the other things that uh seem to be going wrong and this rush toward gold and silver, I think that silver is in for some astronomical gains coming up very shortly. Uh George Gman points out that uh IBM is replacing uh 8,000 HR employees with AI. And so this is going to be happening very rapidly over the next few years. Uh AI impacting jobs. But what it all points to is a shrinking economy and a slingshot move for silver that is going to be legendary. I want to thank you for watching. We'll see you

next time.