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 The deleveraging has begun and it's going to be vicious and costly and severe. It's going to affect everyone and everything. It's going to affect you. It's going to affect me, your co-workers, your boss, the corporation you work at, the municipality you live in, the state you live in, corporations that you work for, even nonprofit organizations, even countries all over the world will be affected by the deleveraging starting in America right now. Now, the good news is, if you want

to stick with me through the end of this video, I'm talking about the only one of the only lifeboats in this incredible economic chaotic time, which is going to feel a lot like a stock market collapse in an economic collapse more than a healthy action of deleveraging, which is actually theoretically healthy. You want to have less debt. You want to have lower debt levels on your credit card, on your mortgage, on everything you owe money for. You want to have less of that. But it's not going to feel like a

good thing as we delever. Unfortunately, a true deleveraging is going to feel a lot like a stock market and economic collapse more than a healthy recovery to getting into a place of less overall debt. Now, I always like to ask you guys early on to help us help more people like us to avoid this train that is derailing. And I ask you to do that simply by clicking the like button on the video. Please do that. It helps us a lot. Now, back to deleveraging. Deleveraging simply means reducing your debt level. We've expanded way too much.

And it's mostly because of when the interest rates were low here and here. Not just in America, but worldwide because so many different economies peg their economy or or watch or react to what happens with the US dollar. This affects everybody over this period of time. Everyone, every nation, organization, corporation around the world, individual around the world, well, not every, but I'm just trying to say a lot. Everybody took on a lot of debt because it was easy to sustain a large level of

debt. When the interest rates were so low, you could take on a million dollars in debt and it doesn't even cost a lot to sort of carry that debt. But then interest rates go up and then all a sudden we're in a different situation which is where we find ourselves now in which is why I've been talking again and again about this big economic pivot that we're going through right now going from years of mistaking a bull market for brains into years of harsh reality the pain of taking the

band-aid off. According to consumer data from an organization by the name of Hearts and Wallets, they estimate about six to seven million American households are trading on margin or trading options. Both of which are forms of leverage. You're taking on leverage by borrowing money from your stock broker to invest in stocks. It's a debt. It's a liability. But what's one thing I keep on harping about? There's so many similarities to the 1929 period right before the world's largest ever stock

market collapse. And just bear with me and listen to how similar these things are lining up. And I'm not saying that things are going to play out again the same way. I'm just saying that the way things are setting up are incredibly similar to what it was like in many ways before the 1929 stock market crash. The leverage expansion is similar to 1929 where it suddenly just ramped up. 1929 significant expansion of leverage particularly in the form of margin buying played a role in the stock market

crash. Margin borrowing where investors borrowed money to buy stocks reached a high of around 20% of the New York stock exchange market value. This combined with the growth of investment trusts and public utility holding companies contributed to a bull market fueled by debt. Now to give it a more modern slant, you can replace those two words when they talk about the growth in investment trust and public utility holding companies. That's just what it was like then. Now you can substitute anything else you want in

those two spots. Instead of public utility holdings, why not talk about cryptocurrencies or real estate speculation or all these new technologies? ETFs are another one or the sudden swell in inexperienced investors which is identical to 1929. And I checked out how much margin debt is there and I looked into some stats from FINRA. Margin debt is at a current level of $918 billion and that's up from a year earlier at $743 billion. That's an increase of 23% from last year to this year in margin debt. When margin debt

increases by 1% then 3% then 5%. That's a notable trend. But then when it suddenly goes like a python and just balloons or swells significantly just like I did in this last year. Listen to what happens. I have actual numbers here about what's going to happen historically. What has happened? The total market capitalization of the New York Stock Exchange is 28.33 trillion as of July 2024. And if you factor in the fact that there's $918 billion in margin debt, that means that the actual total margin

debt is closer to 3.5% compared to 1929's 20%. So we're pretty low compared on that specific variable from 20%, now it's closer to 3 and a half%. But overall, it's irrelevant because the thing that's going to bring the markets down this time is not necessarily the same thing that's taking them down back in 1929. People were suspenders back then. It's a long time ago. Here's a screenshot of the S&P versus margin debt as a percentage. And you'll see and what

I wanted to tell you about how things are going to play out. The astonishing surge in leverage in late 1999 peaked in March 2000. What else happened around that time? A similar surge began in 2006, peaking in July 2007, 3 months before the market peak. In February 2009, debt declined a lot. A lot of deleveraging there. Debt hit a trough. But the same month, the market hit a bottom. It then began another major cycle of increases. Most recently, we saw a surge after the COVID pandemic peaking in October 2021,

two months before the market's all-time high. If you get hit by the sudden deleveraging, then shame on you. It's absolutely clear. Everything I explain here can be checked yourself. Plenty of information, and there's plenty of historical precedents, all of which agree with what I'm saying. But it's not just America that's down in the stock markets right now. Japan, Italy, China, and I'm talking these are countries where their markets are down close to or more than a correction of about

10%. Hong Kong, France, Germany, but there's a lot of ways to delever because this is an absolute necessity for any economy. You can't not delever. When you start seeing some of these bankruptcies, that's a form of deleveraging. When you start to see margin calls, that's one way to delever. Foreclosures on unpaid mortgages is deleveraging. Repos, repossessions on your automobile, that's a deleveraging because your amount of debt you owe gets reduced. Sometimes the company is taking

a bit of a hit. Sometimes most of the hits on your shoulders. But either way, people have too much debt. And as we shrink how much debt we all have, corporations and countries too, it's going to be painful. That's how you get out of this stuff. You have to take a lot of pain. The biggest, quickest way to delever would have been to revalue gold to $25,000 an ounce or something like that. That wipes out a bunch of debt compared to assets. Repayment of debts is a way to delever. being generally more responsible by not

spending as much and putting savings down against your debts, paying off your credit card bills. But the big one is margin calls. Margin calls are always like dominoes. And that will also then play into more margin calls with more people. And again, there is a safe haven in this storm. And I gave you guys a safe haven throughout this whole downturn so far. A lot of you are doing really well with your investments. If you're been around at all with me, you're into some really good highquality

gold and silver mining companies which are doing tremendously well while everything else around us is crashing as I told you it would. And of course, you waited long enough and as I promised, the one lifeboat in all of this is, you're going to be glad to hear this for most of you who have been around with me for a while, but it is gold. Gold is a lifeboat and this deleveraging because it's the same thing as the overall stock market just collapsing and the real estate market collapsing and the

cryptocurrency altcoin market collapsing. It's all one thing and the war is breaking out. You are going to want to own some gold. I've told you that maybe 80 times now. And if you don't, then I guess you don't listen to me. But gold mining and silver mining investments, the good highquality ones that are not going to go bankrupt out of business, they will do a lot better and even very well throughout this economic deleveraging. And if you want to learn all about these kinds of stocks, we talk

about it in the Peter Leads newsletter. If you want the Peter Leadeds app, it's available at peterleadeds.com. And if you want to become a Peter Leads insider, you got me holding your hand digitally for the rest of your life 247.