gold news

 we will have to print excessive amounts of brand new dollars right at a time when the Federal Reserve is giving up on the fight against inflation I've been talking to you guys about this weakening economy for quite some time likely decades and the only thing that's changed between then and now is that now it's gotten excessively worse everything is setting up I'm just telling you what I'm seeing we're going to take a look into GDP China and Japan we're going to talk about unemployment all sorts of things

putting it together in one big picture about this last gasp economy you help yourself and myself and other like-minded people as well when you help spread this video by clicking on the like button that's all we ask and that's really appreciated by our entire team so here's the issues with the financial condition of America of course you know and your neighbor knows and your boss knows and the whole government knows that we've got too much debt much of it generated during the time of low

interest raids where it was easy to borrow a lot of money but instead of fixing the problem by having proper fiscal responsibility which would be painful and no one would ever be able to put that through because it' be so unpopular but that's the way to fix it so we're just left for this problem that's still there hanging above our shoulders in this vast unspoken widely held belief that we are being crushed by this debt and it's going to actually eventually explode in the Great American debt bomb

I explained to you so if you use logic you'll know that the debts either get paid or they don't we can't pay them so then they don't get paid and every debt has a counterparty so the money is owed to someone so those are people getting stiffed and we'll talk about it in this video about how much of that percentage is actually on your shoulders right now and they could avoid a default if they just create all sorts of new money and we're going to get into this video and I'll explain to you why we're going to

see double digit inflation as a government handles these massive debt loads by defaulting through monetary creation of course there's plenty of opportunities too that's what gets set up when there's all this chaos the more moving parts and things crashing together the more opportunities there are there you just need to know how to find them how to see them that's what we talk about in the financial newsletter I have for you we recently hit $1 trillion in Interest being paid on the federal

Deb Deb that's just the carrying cost to handle this Deb just like on your credit card the data in this is from the Bureau of economic analysis this chart is provided by the St Louis fed you can see that we broke over the $1 trillion just to pay the interest on the credit card so what options do the Federal Reserve have they're going to let inflation run away they're going to have to because if they raise rates more it puts a lot more strain on the government itself the entire economy which is is the purpose of it

but they were saying the economy is so strong so they're fighting inflation they realize now wait a minute Peter Leeds was right this whole time but in the meantime of all of this there's the government running an operational deficit every year and it also broke over $1 trillion for the first half of 2024 the government is running a cumulative deficit of $1.1 trillion so far in fiscal 2024 that's $46 billion more more than the same period in the prior fiscal year here's a chart of the trade deficit from

the Bureau of economic analysis This Is Us international trade in goods and services for March 2024 so the trade deficit just adds to the debt every single year every single day but what about all the taxation revenues doesn't that pay for all these things this is from tax policy center.org these are sources of federal Reven Vue but there is a bright spot on all of this and I just tell you what I see so it happens to seem like I'm a doomsayer but that's just what's happening but there's a big bra spot in

all of this listen to this this is from supply chain brain it's about manufacturing after several decades of progressive offshoring of operations to save on labor costs us and North American manufacturing is progressively coming back home there are varied reasons for the ship shift including geopolitical shocks Wars increasing labor costs and a deteriorating trade relationship with China and a little bit later in this video we're going to talk about sanctions being put on China while full revitalization could take decades

the Resurgence is happening and is evident not only in the US but in the manufacturing sectors of Canada and Mexico as well so we had all this offshoring and now the trend seems to be onshoring or reshoring coming back to America good news good news huge for the health of the economy that's the first positive thing I've seen with this economy in quite sometime so that's very good but it's going to take quite a long time in the meantime what are we going to do about this ongoing operating deficit

maybe you're one of the people who thinks well we'll grow our way out of it politicians love that phrase we'll grow our way out of it this is from Trading economics and the information from the US Bureau of economic analysis you can see the GDP growth rate that's how fast it's growing but as you can see from this anemic growth rate it's very low it would need to be a lot higher before it's ever going to be even worth talking about on a video so what have we been doing all this time because

this deficit has been going on for quite some time we always would borrow money from China and Japan check out this chart this is from USA facts nearly half of US foreign owned debt comes from five countries in Japan and China used to be the big finan for us they would buy our treasury bonds we'd use that money to buy weapons but they are slowing down in terms of their voracious appetite they're not only not buying anymore they're actually lightening the load and it's not that they're weaponizing it

people will tell you that China's weaponizing the debt and they could do that and it wouldn't be in their best interest either but that's for another time China right now has all sorts of problems that you guys know about because we talked about it on this channel housing the stock market in China and a lot of money flowing out trying to get into Bitcoin and gold which we're going to talk about in just a second in this video and China's currency is very weak right now so it makes it harder for purchasing expensive

US dollars with less valuable Chinese rmbe or whatever they're using in Japan as well also has their own problems this is from Marketplace most of our government debt is held domestically only about 30% is held abroad but about a third of that is held by China and Japan which comes out to a little more than $2.1 trillion in us treasuries but 30% is held foreign 70% is held domestically who is it owed to who is the counterparty in that when you figure out who the counterparty in that who's going to lose

out on this is then you'll understand why I'm always talking about this so if we can't borrow the money and we can't generate it through taxation there's only two options there's actually three and I'll tell you the third one first because it's so Preposterous that as I explain it you'll realize why it would never ever happen so it's not worth talking about after this moment that would involve truly fixing these issues by having jonian cuts across the board for services

massive spinning cuts across the board the elim of massive numbers of government workers all the while you're rolling out these massive operational efficiencies while spiking taxes again and again so let's put that solution the actual cure to the problem put it aside it's never going to happen so that leaves us with what I wanted to say originally only two options either we default meaning we don't make the counterparties whole people who are owed money don't get that money you don't pay somebody what you

owe them you're only pay them a portion of what you owe them or you're paying them at a time when it wasn't when you said you were going to pay them all of those are defaults not to be confused with all the bankruptcies and layoffs that we've been seeing here not to be confused with the spiking autoone delinquencies which are on the rise pretty strongly so either we default or we choose the simple easy always works path that is going to make everybody whole the politic critically expedient

path monetary creation the only way to pay for half of what we spend is by creating new money they'll print money and it won't work and they'll say oh we didn't do enough they'll do more but the point is it will never work because they're not fixing the problem just like with quantitative easing or say a better example the government shutdown they don't fix the problem but they act like they fix a problem everybody believes they fix a problem because there's no point in paying attention to stuff but

if you accidentally pay attention to it you realize that all of what I'm telling you is happening it's not going to be a good path ahead with all monetary creation congratulations to you if you want a house because your $200,000 house will become worth $400,000 but you'll also say how come this $2 loaf of bread cost $4 what is this can of soda cost $4 now your house is worth more some of your stocks are worth more but you're not actually gaining you're just sort of Treading Water swimming around in the foam on the

beer when they come over the top with a big Bel of new monetary creation even more than they've already done which I didn't even realize was so possible that anyone actually be so stupid to do this but the outcome of all of this is something I like to call Double Digit inflation and when that bu of monetary creation doesn't work they say it wasn't big enough and they come over the top with a even bigger amount that's when you might get into a little bit of hyperinflation I'm not saying that I'm

just saying if you're ever going to get into it it'll be then 50% increases in prices on products per month that's hyperinflation I don't think we'll get there though we'll just come close but what is this all leading up to it's leading up to what I've been telling you about for a while the recession and I believe this is going to be a consumer recession 70% of the American economy is consumer based consumer driven consumer s are feeling the strains right now they're going to start cutting back

they'll have no choice because they're still paying out the same amount of money because everything costs more but this consumer-driven economy can put on the brakes whenever consumers Stop opening their wallets and then you get the recession and it changes everything that we talked about in this video it just whatever you're seeing it's a little bit worse recession will Spike unemployment and then let's talk about China because now just talking about us sanctions on China but what is China the

world's top producer in you probably don't know this I hope you don't know I like to tell you something new it's actually the top producer of any country and how much gold they produce they dig it out of the ground at the same time China is also the country that Imports the most gold let that sink in all this gold wealth which is true wealth held in gold is moving moving to Asia from the West people don't remember or understand what gold is that's why I'm Shing on the rooftops

about this but while China's digging up the most gold and bringing in the most gold what are the people in China doing about gold well look at this four times as much buying they're going crazy for gold in China because they understand the value of it especially when their currency and when their real market and their stock market have all been under a ton of pressure they are going to Gold you don't have to wait till that all happens you don't have to wait till that all plays out before you can go to Gold you

go to go down to Costco right now buy a gold bar I looked into those they're actually good quality bars and the prices are okay but we were spoiled because we had the reserve currency everybody loves the US dollar here's a chart of the reserve currencies and you see that it's not that if you have the reserve currency it's a Birthright if you have the reserve currency it's a phase of time our phase of time as a reserve currency is at the end so as we start losing the reserve currency status albeit very slowly very

slowly and China is digging up and importing and buying the most gold along with all the other bricks Nations who are going to have a gold-backed currency India's buying gold Russia's buying gold their new goldback currency in my opinion will likely become the new world's Reserve currency at least for that portion of the world but 50% of everybody on the earth could use that as the reserve currency it's just an agreement or decision Iran can say hey Russia and China we're only going to use

this now and they all say yay and then that's what it is they're going to be using the new bricks currency as well a massive portion of the world so as our GDP struggles along and we go enter into a recession that's going to push unemployment rates higher which will then further reduce the already insufficient taxation revenues for every dollar expenses that the government spends you're only covering 50 cents on every dollar from the taxation Revenue that you send in we will have to print

excessive amounts of brand new dollars right at a time when the Federal Reserve is giving up on the fight against inflation that all spells double digit inflation and it's all beneath this big umbrella this massive American Dead bomb that is a summary of this last gasp economy but there will be a last gasp I don't know when it's going to be but it's certainly going to be soon and I'll say again that I don't believe that either you or I understands how difficult this is going to become

financially because this is Uncharted Territory nobody knows how this is all going to play out but I'm sure at some some point it will involve a digital currency we'll keep an eye on it for you subscribe to the channel the Peter leads newsletter is one of the most popular Financial newsletters on the planet for a reason