gold news

 But the thing that's interesting is that these um you know with a system under strain I guess this is why people like Jamie Diamond are saying gold's going higher and why um you know Morgan Stanley sort of turn around and say you should you [music] know put 20% of your portfolio into gold. Now that's an extreme statement a very extreme statement but I think that the the really senior bankers see these dangers. They must be concerned about it. And I think that they would have told the Fed,

look, you know, you can't go on tightening [music] like this. We're losing deposits which are going into the general account and we're not seeing it come out the other side. Um, we are under strain. [music] You know, if you carry on this this this way, you're going to see the same sort of thing we had in September 2019. You may remember when the repo rate suddenly shot up to about 9% and the Fed had to come in and sort it out. But we're not far from that sort of thing happening. I mean, it is

tight, very, very tight. But where does this take us? Well, the thing that's absolutely clear is that if we can look through this, the top of the credit bubble when it starts going down, Danny, [music] you will see inevitably um the uh duty if you like of the Fed and um [music] the US government basically is to keep the show on the road. And how do they do it? They would just accelerate the printing presses. What did they do in Germany in 1922? Accelerated the printing presses. We have exactly the

same situation. And on top of that, we can superimpose our lessons from 1929 to 1932. The difference [music] is that in those days businesses went bust because the dollar was on a gold standard and the only way in which credit got wiped out was by debtors going bankrupt and the debtors included something like 10,000 [music] banks. They went bust and didn't honor their deposits. Today, of course, you don't have that. So, where is the strain? What happens? How do you reduce the amount of outstanding credit?

Well, you don't reduce the amount of outstanding credit, but what you do is you reduce its value. Its value contracts, collapses even. And that's the way in which this is going to work. And the value of credit collapsing [music] starts with the currencies. Currencies will go down. And unless uh the political class actually wake up to this and unless their advisers get off all this macroeconomic rubbish and actually begin to apply proper classical economic lessons and inform the politicians of that reality, then there

is no way that the fall in the purchasing power of these currencies is going to stop. That's what's required. We got to go back onto a gold standard in effect. Do you see that? No, I don't see that. And I certainly don't think that 8,130 tons allegedly in the copies of the US Treasury are there. I don't think they're there. I think there's a big shortfall. So, you got a credibility problem which is being well aired and it's well aired even by people like Scott Bessant. Guess what? As soon as he

becomes uh Treasury Secretary and he gets under he's get his feet under the desk in the Treasury Department, what happens? He is told don't say anything about gold. Don't talk about it. Why? Well, I can see two reasons why. Firstly, they are in denial about gold because they um [music] they have been promoting the dollar as gold's substitute if you like. It's a dollar stand around the world. [music] The second thing is a lot of that gold I think went out. Um it was leased and

never came back. You open Fort Knox, I think someone rather cleverly said, you find a whole bunch of IU sitting there. We don't know whether this is rarely true because of course we can only surmise but uh intellectually and practically I think it's going to be extremely difficult for the mighty dollar to to um if you like get away from its total [music] collapse. So that's what we face. I mean this is a very serious time. Um and uh you know we are in a sort of if you like an intermediate stage where [music] you

know the Fed is is uh you know trying to put some liquidity back into the system. We're going to see some danger. It's been told the danger by its intelligence in the commercial banking network. That will give us a little bit of relief. It might even puff equities even higher. I don't know. But um the only way [music] you can get out of this basically is get the hell out of credit. It's really dangerous now. [music] Get out of which means getting into real money which is metallic money with no counterparty and

it is final settlement for all credit [music] and that is gold. Well, it's impossible to say how long the um final collapse of the dollar will happen. And you never know, I may be wrong. You could [music] find that um the authorities turn around and actually do something sensible like um uh secure the value of the dollar somehow. I mean, you know, there may be some sort [music] of fiddle they can do and all the rest of it. I mean, people have been talking about a reset for ages. You know, it's

it's not a reset. It's just to try and secure [music] uh the value of the dollar. Um the only way that can be done ultimately is basically by going onto a [music] gold gold stand. Um this slide I think could happen quite quickly. I mean once the credit [music] bubble bursts um I mean you know I got people who sort of uh uh you seem to have been very successful in [music] terms of um uh you know reading cycles and things like that and I think we're looking at March next year ultimately but I wouldn't be

surprised if it happens before then. When that happens, basically, you shouldn't you should already be completely out of out of credit because the collapse, I think, will be really quite rapid from that point. They will obviously try and uh do what they can to stop it and all the rest of it, but it's just going to undermine the purchasing power of the dollar. So, in terms of time, I don't think we're far away from the end of the fiat currency system. And the point about being uh close to the

end of the fiat currency system is that we're close to it fat currencies not being there. Now either they're replaced by something else like a new gold back currency or whatever whatever or they tie it to gold and incidentally have to take the economic actions to ensure that >> [music] >> um it sticks. We're nowhere near that. Nowhere near that. I don't know. Um I just sort of feel that we are actually moving more rapidly than we think towards the end game of fear. >> Every fiat currency system in history

has ended the same way. Crushed under the weight of its own debt. It always starts quietly, wrapped in optimism, and ends in denial with policymakers insisting that printing money can somehow replace real productivity. The United States, like every empire before it, has reached that stage. The cracks are visible and the numbers no longer add up. The US Treasury is now effectively funding itself through short-term T bills, a polite way of saying IUS. Not because it wants to, but because it has no choice. The long end

of the bond market is dead. There's little real demand for 10-year or 30-year bonds anymore because investors no longer trust they'll be repaid in dollars that still hold value. So, Washington has turned to the short end, constantly rolling over debt, robbing tomorrow to pay for today. That's not fiscal management, it's desperation. When a government relies on short-term debt for survival, it's like managing a mortgage that needs refinancing every 30 days at floating rates. The second

confidence falters. The entire system collapses. In effect, the Treasury is printing money through the back door. Tea bills are near cash instruments. When the government issues hundreds of billions of them to fund spending, it's flooding the system with liquidity, even if officials pretend otherwise. On paper, it's all denominated in Federal Reserve dollars. But functionally, it's no different from printing new money. Here's where it gets dangerous. When the Treasury delays spending during partial

shutdowns or political standoffs, that cash doesn't circulate. It piles up in the Treasury's general account, draining liquidity from the private banking system. The result is volatility and credit conditions. One week, the system is bone dry, the next it's overflowing. Add quantitative tightening QT to the mix and you get systemic instability. The Fed's QT program was meant to shrink liquidity, but it's already failed. They've quietly slowed balance sheet reduction and soon they'll have to

reverse course entirely. Quantitative easing QE will return because there's no other way to keep the structure standing. This is what I call the credit printing carousel. Every lever the authorities pull leads back to the same place. More credit, more money, more debasement. They can't stop without triggering collapse. The parallels to Germany in the early 1920s are haunting. The VHimar government faced enormous war debts, weak tax revenues, and social unrest. To stay afloat, it issued short-term bills to cover long-term

obligations. For a while, the currency held up until confidence broke. The mark collapsed, inflation exploded, and the middle class was wiped out. We're not there yet, but the pattern is unmistakable. The US is following the same playbook. rolling over unpayable debt, monetizing deficits, and pretending inflation is transitory. It's the largest credit bubble in human history, and the outcome is inevitable. When this bubble burst, and it will, the Fed and Treasury will step in to rescue the system. Subscribe, share, and join

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