hey everyone welcome to bald guy money I want to say from the start that this is a very important installment of my program of my YouTube show because there are clouds on the economic Horizon and people are asking me almost on a daily basis how safe is my money in the bank so in this video I want to discuss some of the latest data and news stories that are exposing the growing cracks in the world's economy and banking system I will give you my take on how safe I think money in the bank is right now


and finally we'll discuss why I am quite literally banking on gold and silver right now to make sure I am positioned correctly for the day the House of Cards finally comes tumbling down now I want to start this video off by covering the situation in China and it's probably not The Story You're Expecting because I haven't seen anybody covering this and that story is that the Chinese yuan is in trouble now we all know that China manipulates its currency to keep it trading in a certain range versus the US


dollar to make Chinese exports more attractive for buyers outside of the country and I've talked about that countless times on the channel just go back to my last video about China if you want to know more about that but with China's economic recovery stalling and a sell-off of the Yuan happening as investors assess risks associated with the current state of U.S Chinese relations the Yuan has reached a level that is at the very bottom of what the Chinese Communist party has historically


been willing to accept and that is triggering panic not only in China as they search for ways to bolster the economy and their currency but also in the United States and it's triggered enough Panic that it compelled treasury secretary Janet Yellen to make a stop in China about two weeks ago to discuss how the United States can lend a helping hand because this is the part of the story that doesn't get talked about in the mainstream media and it's the fact that China is slowly selling off some of its


U.S debt on the open market to purchase Yuan to prop it up in something that's known as a currency intervention now these kinds of interventions happen all the time it's nothing to worry about in itself but China is the second largest foreign owner of U.S debt and big sales from them can cause rapid devaluations in the US dollar and considering the fact that the United States Imports a lot of their consumer goods that doesn't bode well for inflation but more importantly it doesn't bode


well for U.S banks because as you can see here Banks using your money have purchased an awful lot of U.S debt something to the tune of 5.5 percent of all U.S debt and with that number now well above 30 trillion dollars you can do the math on exactly how much they hold so if China decides to sell off a lot of its U.S debt Holdings to buy you on and prop it up that means the value of the bonds being held by many banks is going to be lower because after all you have to give incentive for the market to buy


the bonds and the more Supply there is the lower the price goes that's economics 101. and that's ultimately why Janet Yellen went to China she knows the U.S banks are still standing on very shaky ground and she's also very aware that the United States government is not in a position to rescue them I mean the truth is they couldn't afford to rescue Silicon Valley Bank and Signature Bank back in March but with interest payments on U.S debt expected to Eclipse defense spending very soon


it would seem to me that the situation is becoming dire because as you can see in the chart on the right from Piper Sandler federal government receipts also known as tax and collection revenues are dropping significantly and it's a clear sign that the U.S budget deficit will likely be larger than has been projected to be this year as well as a sign that we are indeed headed for an economic downturn just like we saw in 1980 2000 and 2010 as this image so clearly illustrates so with that said it brings


me to the second part of this video where I tell you all exactly how confident I am in the global banking system and I want to say in advance that this doesn't only apply to American viewers this is absolutely a global topic because what you have to keep in mind is that the financial system is so intertwined that contagion in one part of the world can take down markets in other parts of the world and when I saw this graphic from s p Global I saw an older version of this on Twitter before looking up the full report to get the


latest data but what you can see here is the number of bank failures in the U.S those are the numbers in the yellow circles in relation to total assets at failed Banks and this chart is intended to show the lagged Cascade effect large bank failures have on the banking system at large and although it's not a guarantee of what's to come it certainly suggests that we have only seen the beginning of bank failures and I will link the full report up in the description as I do for all of my data sources for those of you


who want to check this out for yourselves in deeper detail but I will say this before moving on I recognize the need to keep money in the bank in the 21st century I have money in the bank and I am by no means suggesting that people need to take all of their money out and put it under a mattress this is not that kind of Channel I am not that kind of person what I am saying is this is a moment where I'm being extra cautious I'm starting to hedge my positions that I had on the stock market


just as I covered in a recent video because I think we are reaching the top of this rally check out that video If you haven't seen it but now I'm also beginning to hedge my exposure to the banking system I don't have a crystal ball I can't tell you exactly what's going to happen but I see enough parallels to past banking crises and other foreign currency collapses to say now's still a good time to put a little cash into gold and silver this chart here is an update from a video I did on


what happens when things go wrong this example is specifically for silver but the same idea applies to gold and it's that as the Turkish currency has crumbled under gross mismanagement by the country's leader erdogan those who had real assets like silver and gold were able to protect the value of their money and although I expect a significant run-up in the price of medals over the next few years for many reasons beyond the dollar in banking issues we're seeing today I'm literally


banking on gold and silver at this moment for the same reason I take a jacket out with me on a warm summer's day I'm doing it just in case what's more is I feel good about doing it because here's another updated example from a video I did a while ago on lessons from stacking gold for 15 years and as you can clearly see when I buy the average price of gold during the course of a year not only have I gotten used to getting real nominal returns but I've also done slightly better than


inflation and that's almost been a guarantee since the beginning of time and that's not to be interpreted as advice or opinion that's just how I interpret the facts based on the data so those are my arguments in a proverbial nutshell and now it's time to move on to the viewer question for this video and remember I try to answer a viewer question from the comments section in every video so please feel free to add your questions to the comments section of this video now in the least I will


reply to you with text and this video's question comes from Jay Henson not to be confused with the Muppets guy and he asks what do you think about gold stocks and by that I assume he is talking about mining stocks and as I said in my reply I have been unsure about the mining stocks because of rising costs I have a small position in Newmont but I hadn't really given it too much thought as my portfolio my stock portfolio is traditionally focused on Tech growth or high yielding dividend stocks which although I have sold some


of my stocks nearly 15 to be exact to roll into gold and silver and I've talked about that before I haven't sold them all and what I can say is that I sincerely believe there are some mining stocks namely a few listed on the gdxj index for those of you familiar with the with that index that are becoming interesting simply because I see their costs stabilizing over the next year year or two and the truth is that when metals boom those stocks will also do very well and yield some huge returns if


you can pick the right ones and if that's something you're all interested in seeing please let me know in the comments I haven't dug deep enough into the gdxj stocks to pull out those names but I can cover this topic in a future video with some of my specific targets for big growth moving forward and for those of you who can't wait to hear me speak about this I've decided to start being able to answer this question better to dig into the gdxj a little bit as an index and I will be covering that


on my patreon tomorrow link to join my patreon is in the description of this video as well as the pinned comment it doesn't cost all that much to join and you can cancel at any time I just published an in-depth guide for people interested in coin there so if you're interested in getting my thoughts on other topics as well as hearing what I have to say going deeper on the topic of metals that's the place to do it but if enough of you request the topic of mining stocks here for the YouTube


channel in the comments section I I promise I will cover that in depth right here for you all and with that said that's it for this video I'm wishing you all a fantastic weekend ahead and as I always say at the end of my videos take care of yourselves and please remember we're all humans let's please take care of each other see you in the next one goodbye