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 this is the end my beautiful friend those are the words of Jim Morrison but he had a rather dark outlook on life however it is the end there is no way out for the world's central banks and for the monetary system the way it is currently designed the global monetary system this is the end and it's going to be chaotic but like I've always said this could be the best thing that ever happened to you financially you're just gonna have to stick around for the end of this video because there are a couple

of different outcomes but all roads lead to the same destination so in my video where I covered the website WTF happened in 1971 there were some charts that I came across and I made some promises to you that I would follow up on those charts because there was more behind those charts than I could cover in that video it would have made that video an hour-long video but here what when I got to this chart and I was talking about income distribution this is the bottom 90% in the top 1% the top 1% used to

make more than the bottom 90 and then the bottom 90 made gains that 1% had losses and then it's come back up and I don't know exactly where we are here in 2020 the way they're measuring this this is the top tenth of a percent I'm sorry not the top 1% but one of the things that I said was back here in the 50s the income tax rates were above 90 percent I said 94 percent well actually that was in 1944 I took a look into it a little bit more and refreshed my memory on that one and the other charts that I said I

would come back to is federal debt held by the public and this is as a percentage of GDP these are basically the same chart this has just zoomed up on this area right here and I wanted to come back to you because there is a lot behind these charts that you need to know and all of this has to do with the out come where things are going and how it's going to affect you and how you could possibly benefit from it but it's going to change the world a lot just like I showed you if you would if you didn't

watch this whole video you should watch the whole video WTF happened in 1971 because down near the bottom you see that the when we made the disconnection when we severed the tie between money the gold and silver that backed our currency and the currency and the currency became backed by nothing but a promise to tax you and me in the future when it became backed by Treasury bonds which are debt where the government collects taxes in the future to pay that debt that was the point where everything

changed and it changed our lives it changed the world a lot there was a certain trajectory we were on before that and the trajectory changed radically after that and you'll see that if you watch that video WTF happened in 1971 but in that video there I inserted a piece from an old presentation that I gave back in it was a July or August of 2020 18 called early warning and it was early but it was a warning about what is happening right now everything that is happening was destined to happen it may

have been able to go on until later this year or something before the bubbles start to burst the pandemic turned out to be the pin but our economy was basically a bug in search of a windshield we have bubbles in search of pins the pandemic happened to be the pin but the economic consequences though they're going to be made a lot worse because of the lock downs and everything else the economic consequences were destined to be and one thing I pointed out I showed a very long term chart that was in WTF

happened in 1971 of interest rates going back 3000 years and you saw that there was a cycle to them of low interest rates high interest rates low interest rates high interest rates low interest rates high interest rates it's just a wave that goes throughout time but when you pick the minimums the lowest interest rate in a period in one of those cycles it turned out that the highest interest rate was almost exactly in the center you know within a month or two of the exact center of those two low interest

rates and taking that same theory and applying it to today's cycle this data ends in I believe July of 2018 here and so now we're out here but the interest rates have come down further but they should reverse sometime between 2021 and 2023 unless the Federal Reserve tries to keep them from reversing I'm going to show you why they would do that and I'm going to show you what the outcomes are either way so getting back to the presentation this was WTF happened in 1971 and I'm going to expand on this

gross federal debt and one of the things they were showing was held by the public that's the part to remember so these are Treasury bonds bills and notes that are being held by the public this they use this term very loosely this is a document budget for a better America it starts off with a letter a message from the President to the Congress of the United States but later down at the very you know this is like 80 percent just commentary it's page after page of words and then you get down to the very bottom

and there's some tables down there and the very last page of all the tables page 143 out of 150 of the PDF it's if anybody's interested is page 31 39 of the document but what we've got here is debt held by government account so I'll show you that in a little while and this is the debt held by the public and then there's this little footnote it says six right there and so these numbers you know the the projections are quite inaccurate they're always projecting things low another thing that

I find to be sort of hilarious always is every administration does this they show the debt as a percentage of GDP increasing under their reign and then once they're out of office it's supposed to decrease and we're gonna get back to a balanced budget one they always show this but down here if you look at that footnotes note 6 at the end of 2018 the federal reserve banks held 2.3 trillion trillion dollars it's this is two thousand billion so 2.3 trillion dollars of federal securities and the rest of

the public I had no idea that the Federal Reserve was part of the public but according to all of this accounting it is the Federal Reserve is part of all of us did you know that did you know that the Federal Reserve is like your neighbor your friend so we held a thirteen point four trillion and they held 2.3 well that two point three as I'll show you in a minute has gone up to four trillion since this was published so here it is this is assets securities held outright these are US Treasury securities and all of them bills notes

and bonds and they come out with the level every Wednesday and so what you see here is that before the crisis we were at about 0.8 trillion eight almost eight hundred billion not quite and then they gave a bunch of those to banks and swapped them for much more risky assets during the global financial crisis to keep a bunch of banks from going under and then we have QE one and this is qe1 qe2 qe3 and then they've got quantitative tightening QT and then the crisis that we are in actually started in

September of 2019 and they started responding to some emergency by counterfeiting typing currency into existence and buying Treasuries pushing more currency into the system and then you know as of March we locked down the economy that came out with all these emergency measures and bailouts and so on and it's going crazy and we're over four trillion so this again is what the Federal Reserve owns of the public debt that chart of debt held by the public divided by gross domestic product the

Federal Reserve owns four trillion of that debt held by the public this is the total assets of the Fed that includes mortgage-backed securities and a bunch of other different types of assets not just the bonds and it's getting close it'll pass seven trillion very shortly before the financial crisis it was at about Oh point nine trillion less than a trillion is about to surpass seven trillion and you can see that their balance sheet was down to three three and three-quarters trillion back in

September and now it's going to be close to seven so within a few months from now it will have doubled since last September pretty scary thought actually and I'm gonna show you in a little while how all of these relate so this is the federal debt held by the public remember that the Federal Reserve they're their debt is their the bonds that they hold is considered part of the public debt so the bonds that they they bought by typing currency into existence so this is their debt and before the crisis of

oh eight this is debt all debt held by the public it was at you know a little over five trillion and then the Krait since the crisis ovo eight here were over seven so there's two of Trillian that it's increased since the crisis of 2008 then we go to federal debt total public yet and this is the one I always get a I mean I had cracks me up federal debt public debt please make up your mind they can't and then I sort of got it Oh federal there are the ones that get to create the debt the by

spending what we don't have and the public is are the ones that become indebted and have to pay it back except remember Federal Reserve doesn't have to pay it back it's you and I they have to everything that the Fed has our Treasury bonds that they bought through counterfeiting it didn't cost them a dime it's just keystrokes and they own those Treasuries you and I have to pay though those are part of this public debt and we have to pay it back through future taxation that's our debt that we're all

in this is federal debt held by agencies and trusts so if you go back here to debt held by the public that's at 7 we're gonna round this to seventeen point two trillion right and then you go to total public debt and this is 23.2 so from 17 to 23 is six trillion and this is six trillion so this is what was missing is federal debt held by agencies and trusts what agencies interests are these these are federal agencies and trusts the Trust's they're talking about is the Social Security trust fund and

there's a few other trusts trusts for black lung disease for coal miners there's trusts for railroad workers and and other agencies and anything that is part of the US government that had an account that had currency in it if there were dollars there the the Treasury creates a special Treasury bill bond or note and and takes the cash and as it to the general fund and spends and leaves IOUs in its place and you know almost half of this is social security I can't remember what the exact

number is right now it might be half of this six trillion it might be two trillion I can't remember but it's it's in the multiple trillions and what's interesting is the Social Security trust fund now which was supposed to be our savings account to retire on and it's full of IOUs but the government doesn't think it counts because we owe it to ourselves so we're all going to be able to retire on those IOUs that they left us with just try and go into the grocery store and buy food with an IOU from the

government and see if it works but anyway so where Social Security is having more outflows and inflows now because of the retirement of the baby boomers so they're having to steal from other portions of the government more and you're going to see some signs of that later this is the chart that you saw on WTF happened in 1971 was the federal debt held by the public as a percentage of gross domestic product and this doesn't look that worrisome you know you've got this peak we were up at

a hundred and six percent back in 1946 and we recovered from that we grew the economy much much faster than the politicians were able to spend us into a pit of debt then we started digging the pit deeper faster than the economy could grow and then so this is federal debt held by the public again 78 it looks like we've got some Headroom we can do a bunch of deficit spending we'll be okay but then if you take a look at gross federal debt all the federal debt including that debt that we owe

ourselves which we do have to pay back because you can't buy food with the IOUs that are in Social Security they have to give you dollars so we either have to the Federal Reserve either has to type those dollars into existence or they have to tax all of us in the future and by the way when they did the act back in the 80s to allow the Treasury to create these special bonds to steal all of the cash that was in any government account when they did that act that same Act made Social Security benefits

taxable and the benefits are your taxes being returned to you that they're then going to tax so this is all of the debt including the intergovernmental transfers that's that debt that's that's in the Trust's and agencies of the federal government as a percentage of gross domestic product and it was at a hundred and six percent on the debt held by the public its 119 at the World War two peak here when you include all other forms of debt that the government has but what I want you to look at here is

the relationship between this peak here and where we are here at this was a will round it will say 106 because it's definitely way over that now this is at this is annual data so this is the end of 2019 and the 2019 fiscal year ends on the last day of September and so you're talking about September 2019 so here we are a year and a half later roughly a little more than that and I think I don't know can't do the math in my head that fast sorry but watch the the difference between the level of this

peak and the World War Two peak when I go back and forth between debt held by the public it looks like we've got a lot more Headroom that they can do a lot more deficit spending before we start getting into trouble but we've got a lot less Headroom than that WTF happened in 1971 website was showing then we get to the federal debt held by the agencies Trusts as a percentage of gross domestic product and as you can see here they're not able they they were stealing at a certain rate you know and this is what

they passed the this I can't remember whether it was in 81 or maybe it was like 1983 that they passed this bill they did this study that was just a bunch of baloney they say they did a study in a year that Social Security had more than 500 million dollars surplus so it was going up and they said if we don't do something about Social Security Security it's going to be broke in a year and they passed this this was right after the Kemp Roth tax cuts that Reagan passed so the first thing was passed the

task tax cuts now the deficits deficits explode to offset the deficits they said well what we're going to do Social Security is going to be broke that's a savings account for you we've got to do something about it Social Security is good income taxes are bad so we're going to lower income taxes but we're gonna raise your Social Security tax because it's a savings account for you and the following year they make it legal for them to replace the cash in the Social Security trust fund with IOUs so they're

just taxing you anyway but you can see the angle that it was growing at and then after the crisis of 2008 and the baby boomers starting to retire and drawing on this trust fund so there's more outflows and inflows this starts to decline as a percentage of GDP so there that that decline is something they don't want that to happen it's forced and it's part of this whole system starting to freeze up part of what I'm getting to in this video the the real point of where we're headed and

the different roads we could take to get there this is federal debt held by foreign and international investors investors this is a that is used very loosely if you can call China and investor because china owns I forgot it's at least a trillion of this six point seven trillion so this is almost seven trillion dollars of the twenty three trillion so you're talking almost a third this is I didn't do the math but it's probably more than twenty eight percent less than thirty I don't

know but it's a large portion of the national of the country that foreigners have a claim against you have to look at you know this we have mortgaged the United States and the mortgage holders almost a third of those mortgage holders are foreign governments and foreign investors this is the effective federal funds rate so we're starting to get to the point of all of this and I've taken it back to nineteen fifty four here and what you see are the I mean ever since the inception of the Federal Reserve

we've had these crazy rates I mean 0.25 back in 54 zero point one three so basically a tenth of a percent in fifty eight and then there was a day this a daily chart most people won't show you this but there was a day in nineteen eighty where it was twenty two percent now something that's going to have an impact on the conclusion of this video is that the chairman of the Federal Reserve back in this area was Paul Volcker and these interest rates here were below the rate of inflation and

when you have interest rates below the rate of inflation it causes banks to do more and more lending and expand the currency supply it's very inflationary if the interest rates are below inflation and to stop inflation he had to raise interest rates up to twenty two percent on a day in nineteen eighty so what they were trying to do gold was in a runaway this is over on this peak that's March it was January 1980 we're talking 15 16 percent Fed Funds rate they were trying to get ahead of

the double-digit inflation and make it more attractive for people to buy a bond than buy gold this was really important because gold was in a runaway it was gonna go to the moon unless Paul Volcker got interest rates that that where it got interest rates on a really safe investment and US Treasuries have been considered the one of these safe havens he had to get them above the rate of inflation because back here they were called certificates of confiscation because they confiscated your wealth you

put a hundred thousand dollars in in bonds back then inflation would make that hundred thousand dollars the same amount of goods and services that that hundred thousand dollars could purchase required two hundred thousand dollars in ten years to purchase the same number of goods and services but the rate you were getting paid on the bond you only ended up with a hundred and fifty thousand dollars so you are basically losing a bunch of your purchasing power by investing in US Treasuries it was a bad

investment certificates of confiscation so we're going to and I just want to point out that these this is insane this can't happen there was there's a day here you're seeing 0.9% there's a day at 0.4 in here somewhere I found it before it it's too much work to find it now point seven point but these are insane rates that aren't possible in a in a free market we don't have free markets then just realize that these went up and at the end of 2019 they were already coming down and so we

were at one point five five and now they're down it 0.05 1/2 of a tenth of a percent right is that what that is a twentieth of it it's unbelievable the world we live in and then this is federal outlays and this is the interest that is due on the debt and this is really important we're starting to get to the point of the end of this video and you'll remember that chart that I showed you with the interest rate cycles and the minimums and there was an arrow balance like a seesaw or a teeter totter dependent you

know and interest rates eventually reverse now the Federal Reserve can step in and hold interest rate low rates low but that requires a certain type of action we'll get to that in a minute but here's the scary thing interest rates went down to nothing during this time period and they've been rising 2016 2017 2018 2019 and this has to be paid out of the budget and so it's the higher this goes the more it squeezes out other stuff now this is only a little over a third of a trillion at this point and

you know their budget was three trillion it's going to end up being five trillion or ten true and who knows how much they're going to end up spending by the end of this year but I know it's going you know they're planning on selling in this quarter that we're in right now second quarter of a third quarter of this fiscal year they're planning on selling another three trillion and Treasury bonds to support all of this stimulus that they're planning and so just keep in mind that this is rising

that interest rates are already about as low as they can take them and there's consequences to negative interest rates that are bad and create a very unstable fragile banking system it and negative interest rates are impossible in a free market it's it's in economically impossible except in this crazy nightmare world the Keynesian live in and so I'm going to move on to something else here 10-year constant maturity so this is the interest rates on the 10-year note and they're for ten years

people are loaning their their currency to the government and asking for a return of 0.7 percent you know I skipped a couple of things that I need to go back to here accidentally this is the financial report of the United States government from the US Treasury I much prefer the version from the Government Accountability Office it's the same report but it's got ten pages added to the beginning of it that are addressed to the President the Senate and the House of Representatives and it says things like that to operate

effectively and efficiently as possible Congress and the administration and federal Managers must have ready access to reliable and complete financial and performance information and then it says down here that certain material weaknesses in internal control over financial reporting and other limitations resulted in conditions that prevented us from expressing an opinion they can't give an opinion on this consolidated financial statement because their accounting is so screwed up the government accounting is so screwed up

that the Government Accountability Office the office that audits the Treasury and the rest of the government the the Congressional Budget Office the CBO and the and the Treasury they are saying that this is so screwed up that they can't give an opinion on it they say that progress has been made but it also underscores that much work remains to improve federal financial management and the federal government continues to face an unsustainable long-term fiscal path well guess what I used to download these every year until

I became tired of it in like 2012 but the first one I downloaded was 2003 and this wording hasn't changed since then it may have changed a little bit but it's basically the exact same as it's basically the same as it was back then but I want to scroll down so you'll see that this is the same report with their 10 page letter attached to the front of it and then I want to go to they've got a table here that's a snapshot of the current here it is the nation by the numbers and a snapshot of the

government's financial position and condition so they've got 2018 and 2019 we don't have 2020 numbers and won't have until after our fiscal year but they've got net costs net operating costs budget assets and those are loans property plant equipment other so total assets comes to four trillion we're gonna round that 393 trillion 99 billion the 4 trillion less liabilities comprised of debt held by the public and accrued interest and so that's that you know the federal debt held by the public

then they've got federal employees and veterans benefits of eight and a half trillion bucks did you see that in any the other places of the that that isn't Social Security that's not the the other things that were in the intergovernmental transfers this is federal employees and VA benefits that we owe eight and a half trillion dollars of as a liability and it wasn't accounted for anywhere in those Federal Reserve charts or anywhere else that we've seen it so you've got total

liabilities of 27 trillion again and our net position then when you deduct the four trillion you come out at at 23 trillion dollars upside down so the government is is essentially bankrupt and in the hole by three to four trillion bucks we are completely upside down by that amount according to this report but there are others which I'll show you in a minute so this I believe because there's a footnote here that says to prevent the debt-to-gdp from rising over the next 75 years a combination of none

so 75 years I believe these numbers if you notice this is measured in the trillions this one was measured in the billions so we're talking about almost 60 trillion bucks social security expenditures almost 50 trillion bucks non interest net expenditures and so this is the unfund some of the unfunded liabilities that they're referring to here they where we've said we're going to give you this we have no idea how we're going to pay for it but we're going to give it to you in the future

moving on to okay this is the same report again I just oh I don't need to go through this I'm just going to close that tab I guess I had all of these open to different pages and I closed my browser and reloaded it so I'm not okay so here's the secretary of the Treasury a nice picture and then we get a completely different accounting this one shows that instead of being four trillion underwater the Treasury's accounting in in this report shows that we're worth half a trillion dollars but

still the claims against the United States remember there was seven trillion dollars of foreign claims against the United States and we're only worth half a trillion we're bankrupt here we go so this is page 32 of the document it's got total assets of 25 six trillion instead of four trillion total liabilities of twenty five point one to five trillion as of 2019 how do they get these liabilities because if you look at 2019 this is more than two trillion there's two trillion dollars missing

from the national debt in 2019 that is part of these liabilities and I have no idea where that is but this basically says we're worth half a trillion dollars our total net position of the US government this is our net federal the federal outlays as a percentage of gross domestic product so what we're talking about is how much the government spends forget about the budget that they create whether they spend by the end of the year and what you see here is that you know back in 1929 they were spending two

point nine nine percent of GDP the federal government spent two point nine nine percent of GDP on us and we just had the roaring 20s with them spending less than three percent on us and then even during the Great Depression we're talking about eight and a half percent roughly the average during that then we get to World War two and it goes up to 40 percent of GDP so we're doing huge deficit spending here and then we get to the point remember I said that the we will get to the taxes in just a moment

but the top marginal tax rates in this period where they're spending about what probably 16 average or 17 PS let's say 17% of GDP up until the mid 70s and then it jumps up to roughly 20% there's a little dip here during the stock market boom of the late 90s and but then it settles back in on 20% so you could just sort of average this from the mid 70s at 20% and before the mid 70s at about 17 and a half percent and then you take a look at the federal government's income so these are the receipts as a percentage

of gross domestic product and remember they were spending they're spending 20% here but the income is 16% 17% 19% during the years when we had the big stock market boom the the internet the tech bubble but we can say that this this these years here average seventeen and a half percent and we can say that these years here averaged about 16 persist is fifteen percent and seventeen and a half so about 16 percent across so this century is 16 percent the 90s the 80s and the 70 70s at about 17 and a

half percent and then about 16 and a half percent into the 50s and in 1929 the government took in 3.7 percent of GDP but they spent two point nine nine percent so they spent three percent so they there was a surplus in 1929 but even during you know during the Great Depression they were running deficits but they're taking you know not even five percent in those early years and then it went up this is the roosevelt recession it's called and then world war two now why is all that important here

is the highest marginal tax rates and the lowest marginal tax rates in 1944 it hit 94% so anybody making enough only got to keep six pennies for every dollar that they made notice that these go from zero down here in 2012-2013 is when the income tax was made legal in the united states once again they had had a couple of periods of time where they had income tax they did it during the civil war there was another income tax between the worst but then they did away with it and there was a decision

Federal Court decision that made it difficult for the government to do this and that was resolved in 1913 with the passage of the sixteenth Amendment making it legal and in 1913 the tax brackets were one two three four five six and seven percent yeah to qualify just for the one percent you had to make a lot of of currency to qualify for the top tax bracket of ten percent you had to make the equivalent of like twenty or thirty twenty thirty million dollars today or maybe it's I haven't done I need to go back and do

the inflation-adjusted figures but it may be over that it may be more like a hundred million bucks that he had to earn to qualify for seven percent income tax that's how they got this thing passed and then just a few years later look at what they do ah you know we did have World War one in here and it left us very indebted and the Federal Reserve issued a lot of bonds so that got us to this increasing tax on the national debt and the last chart here being you know the interest rates will reverse if you remember that

chart with the interest rates going up and down and up and down each cycle there's that where it's sometime between 2021 and 2023 that cycle should want to reverse it should be something that is is that the market is forcing and the what forces it is if we go into inflation inflation can be very dangerous and to get a hold on inflation like I showed you what Paul Volcker had to do was raise interest rates until they were above the rate of inflation and that's how he stopped inflation

and then we had something called disinflation lower levels of inflation not deflation deflation is when there's actual contraction and but dis inflation is less inflation each year year over year there's less than there was last year deflation is actually contraction in the economy at a contraction in the currency supply a contraction in prices and so we're down here below 0.7% ten-year Treasury and this will reverse and now for the point of this very long presentation I know this was a long way

to get here but this is from this is this is from the Federal Reserve Bank of Chicago so this is official Fed language here now some of it is a little hard to figure out some of it I haven't even figured out yet but you've got to know when they say monetary policy is Federal Reserve and currency creation in the banking system fiscal policy is the government that's the deficit spending and that's all of the government projects and that's the you know that so that's fiscal policy is they're going to

give encourage this by giving it a tax break they're going to tax us here and they're going to give it to the those companies or whatever so fiscal is government monetary is Federal Reserve so the Cova 19 pandemic found policymakers facing constraints on their ability to react to an exceptionally negative large shock large negative shock the current low interest rate environment limits the tools the central bank so that's monetary policy can use to stabilize the economy while large pub

the large public debt the national debt curtails the efficacy the the ability for it to have anything that they do to have an effect of fiscal interventions so the efficacy of the government stimulus measures and everything else by inducing expectations of costly fiscal adjustments I don't really know what they're saying they're against this background we study the implications of a coordinated fiscal government spending and monetary the Federal Reserve creating currency for the government to

spend strategy so it's the the Federal Reserve is supposed to be separate they're supposed to make their they've got a directive to keep inflation you know target inflation and to get to target certain unemployment levels and so that's what they're stable prices and low unemployment is like their mandate and what they're talking about here is coordinated with the government fiscal and monetary strategy aimed at creating a controlled rise of inflation and that is to to wear away a targeted fraction

of debt so they're going to try to inflate away the debt meaning creating a whole bunch of currency and so they want to pay back the debt that they're creating now with cheaper dollars and hopefully everybody will be making more currency except there's something called the Cantillon effect that we've talked about before whenever they create new currency that purchasing power is stolen from all the other units of currency and bestowed upon the individual that gets to spend that new currency first into

circulation it's it's he's they're receiving stolen property it is theft and it is fraud and it is enslavement because it steals from one group to give to another under this controlled strategy the fiscal authority the government the Congress creating all of their plans and deficit spending though the fiscal authorities introduce an emergency budget with no provisions on how it will be balanced in other words how they will pay for it no provisions on how to pay for it well the Monetary Authority the Federal

Reserve and this will happen with all of the world's other central banks if this if we go down this road everybody else will also tolerates a temporary increase in inflation to accommodate the emergency budget so they're going to where we're in that deflation right now we're going to be headed into inflation maybe by the end of this year we're going to start start seeing big inflation coming at us so a temporary increase in inflation to accommodate the emergency budget in their model how well

if they're models worked out so far I want to ask everybody that just how well have they done so far the coordinated strategy enhances the efficacy the the the ability of the fiscal stimulus to have some sort of effect planned in response to Kove the kovat 19 pandemic and allows the Federal Reserve to correct a prolonged period of below target inflation they've been trying to target inflation at 2% it used to be they used to say between three and four percent was proper inflation then then

when they couldn't reach two percent they said two percent is proper inflation we've got to get there and they they just never never able to were able to hold it there at 2% this strategy resulted this one wait until you hear this sentence the strategy results in only moderate levels of inflation by separating long-run fiscal sustainability from short-run policy intervention I don't know what that means me maybe you guys can figure out you know try and decode this I'm pretty good at decoding this stuff but

somebody can leave it in the comments below but we're headed for inflation watch episode 7 of hidden secrets of money the inflation that they create will ultimately come back to haunt them if they try to get the inflation under control then their so this is the point of the video this is the endgame there's a couple of roads they can choose here but those roads lead to the same destination remember this where we're already seeing the the interest on the federal debt rising and this is during super low interest rate

environments and it's going up because of the quantity of debt now they're going to increase that quantity and believe me you know it was at 25 trillion on the national debt clock we're at 20 you know just a couple of weeks ago this was at like twenty four point seven I said it'll be at 25 we're already nearing twenty five point two and this doesn't include the three trillion that they're borrowing this this quarter by the end of of 2020 this will exceed 30 but it could exceed 40 or

50 or even a hundred you know go out two years from now could this be over a hundred trillion two hundred trillion where where do they stop and by the way if this works why hasn't it worked so far if it works why can't they just print a billion dollars for each of us and just give it to us this does not work and they keep on proving it Japan has proven this since 1989 year after year after year Japan proves the Keynesian economics doesn't work yeah we're doubling down on it it's just

unbelievable but getting back to the interest rate cycle and interest rates going up I want to take you back now to the interest rate cycle and in that long-term graph that you saw in WTF happened in 1979 you saw that there was sort of a cycle to this going back in time and that was interest rates going back for 3,000 years and there was this low spot here and a low spot there and I picked this as a single cycle of low to high to low and it turned out it was almost exactly the same number of months from one side

to the other and that's sort of what we see in the other side and if you apply the same thing to that low and go out into the future the next low should be 20 21 20 22 some time or another interest rates are going to want to reverse if they reverse and go up then the interest that the government pays gobbles up all of the available funds for their budget and they've got to do deficits just to do the things like be able to pay Social Security and all of those other things that they've

promised there's certain discretionary spending and then there's mandatory spending and the mandatory spending will be completely gobbled up by interest so they're gonna have to do deficit spending not for the stuff they want to spend but for the stuff they have to spend the only way to get that the inflation under control is to raise interest rates and so if they raise interest rates that even though we're borrowing more if they raise those interest rates and this goes up like it

should naturally then they're in this hole where they have to keep on printing more currency and more currency and have larger and larger deficits going forward if they keep them low you end up with runaway inflation because of the bank's ability to create currency then everybody eventually will start borrowing because it doesn't cost you anything to borrow so they're damned if they do damned if they don't there's two paths that they can take here two different directions and all roads lead

to a hyperinflation I want to thank you for watching but please try to protect yourself find some safe haven assets that aren't US Treasuries and some some you know just try to protect yourself the best you can I make no recommendations you've already heard what I'm doing I want to thank you for listening we'll see you next time