As equity bond and crypto markets are on the brink of collapse where is smart money going?

➡ Michael Jacob and Dr. Kirk Elliott discuss the potential economic meltdown due to rising tariffs and increasing debt. They believe that while President Trump’s actions may initially cause economic instability, his plan to bring jobs back to America could eventually lead to economic growth. However, they warn that if jobs do not return, the economy could fall into a severe inflationary recession. They also highlight the risk of the bond market crashing, similar to what’s happening in Japan, which could severely impact insurance companies and pension funds.
➡ The large number of baby boomers in America are starting to retire and draw benefits from pension funds, which are heavily invested in U.S. bonds. However, these bonds are expected to lose value due to rising interest rates and a downgrade in U.S. credit rating, forcing pension funds to sell at a loss. This situation is similar to what happened in the late 70s and early 80s, and Goldman Sachs suggests holding gold instead of bonds for the next five years. The current economic situation is different from previous cycles due to the U.S. no longer having a AAA credit rating, which could lead to a global bond market collapse.
➡ The speaker predicts a significant increase in the value of silver and a shift towards digital currencies, including stablecoins. They believe that traditional banking and paper money will soon be replaced by decentralized finance and digital assets. They suggest investing in tangible assets like gold and silver during this transition period. They also mention the possibility of cryptocurrencies being backed by physical commodities, such as gold or real estate, in the future.

Hello everyone. It’s Michael Jacob with Unleashing intuition. Secrets have Dr. Kirk Elliott back with us again. We’re going to be talking about the economy. We’re, a lot of us are thinking we’re out on the verge of, you know, economic meltdown. It’s, everything’s pointing to it. What are your thoughts, Dr. Kirk Elliott? Well, I, I’ve got to agree. Just, just because Trump is in office, he’s doing great things, doesn’t mean that there’s not pain that we have to go through before he gets to the final destination, if Congress will even let him get to the final destination.

Or the Supreme Court. Right. I mean it’s like for crying. Or the Democratic Party or all of them. All of them. Right. It’s. And, but here’s the thing, he is upsetting the apple cart so much. You know, paradigm shifting moments to get us to a new a world order, so to speak, where it’s an even playing field. Right. And so, so the globalists, the international bankers, a lot of the, you know, NGO globalist institutions, they don’t like what he’s doing and so they’re going to oppose him every step along the way. Right. So, so you look at some of the stuff that, that’s happening right now.

You know, we’ve talked a bunch about the tariffs, right. And first the tariff battle was like, it was just really extreme, 145% tariffs on China. Then Trump dropped them down to 30%, you know, for a 90 day hiatus and the markets kind of responded to that. Well, what’s happening this morning? Talk. The, you know, Besant said that, well, the talks with Trump and Xi Jinping are not going so hot, just like what we talked about. Xi Jinping is going to draw a line in the sand. He doesn’t want to capitulate to Trump. And so therefore these talks are getting more aggressive again and the tariff battle is heating up.

Where else is the tariff battle heating up? In Europe. Right. So two days ago Trump announced that I have no intent on making a deal with Europe and the tariffs are gonna be 50%. 50. Right. So a bunch of countries kinda came back and said, well, we wanna negotiate a little bit. And so Trump said, okay, well we’re gonna have the tariff starting in Europe on the beginning part of July. That’s not that far away. But when you think about what comes from Europe, there’s a lot of things that come to mind, namely expensive automobiles. Right.

When you look at Mercedes and Audi and Porsche and BMW and Lamborghini and Ferrari and I mean, there’s so many of them. And then more consumer friendly vehicles like Volkswagen, right? Okay. They’re all going to be 50% more expensive come July. Unless, like Mercedes in Alabama produces two models. Well, if they’re manufactured in America, you’re not going to have the tariff. Right. So this is getting extreme. He also, Trump also told Tim Cook at Apple, he’s like, you know what? We’re going to have 25% tariffs on all iPhones unless you manufacture them in America. Well, this is a little bit more problematic because, and I don’t know how it’s going to turn out because Apple just dumped $1.5 billion into a manufacturing facility in India, so it’s not going to be quite so easy for them to move over.

Which means what? IPhones are probably going to be more expensive, but doesn’t need to be that way. Doesn’t need to be that way. If some of these countries just say, you know what, we’re going to get rid of some of the value added taxes, we’re going to get rid of the tariffs on American goods. And so get rid of the tariffs on our goods coming in and, and even out the playing field, right? When that happens, America becomes more prosperous. America becomes the manufacturing hub of the world, potentially. Right? Is if we can manufacture our own stuff, we’re going to create jobs.

See, Trump’s plan is really a good one. But you look at this big beautiful bill, for example. I, it’s with, with if Trump gets his way, it actually could be a big beautiful. If he gets his way. Right? Because what’s in there, as it stands right now, it adds about $5 trillion of new debt. It’s like, man, this is, this could be catastrophic unless there’s a way to actually pay that off. Which this is what Trump and Bessant and Lutnick are saying it’s like as is. Well, you know, they didn’t say this. This is my interpretation.

It’s like, okay, this, this could be devastating to the US Economy, right. If we add that much more debt. But what they’re not taking into consideration here is Trump’s plan of bringing jobs back to America and the economic growth that, that could help pay for those deficits. But if we don’t get that, well, then it throws the economy into a huge inflationary recession, which is stagflation. Right. And this is where this battle of a generation is happening right underneath our nose. The globalists and the rhinos and the Democrats and all of these groups want Trump to fail because they Want a globalized world where Trump wants more, an American centric world or at least an even playing field.

So they’re going to battle him every step along the way, try to get him to fail, try to get some of these things not to pass. Because if you just have tariffs on foreign goods coming in and it makes everything more expensive and you don’t bring jobs back to grow the economy, well, then it’s terrible. It really is. There’s. But this is where Trump needs to win. He needs to win on this one. And why he’s, he’s drawing a line in the sand. It’s like, okay, we’re, we’re in this deep. Just like what Xi Jinping is saying.

I’m drawing a line in the sand, says Xi Jinping. And we don’t want to capitulate. Trump is drawing a line in the sand. It’s like, I’m not giving up until America’s at least at an even playing field. But I want America to be better than that. Right. Because he’s fighting for all of us. But this is the battle that’s at hand. Now you look at what he’s dealing with on a macro level, Michael, this is getting pretty ugly. And this is where the global economy, I think, is about to hit the skids and potentially the American economy in the short and medium term.

Because if you look at what’s happening in Japan with the Japanese bond market cratering, I mean, it is just falling off a cliff. But it’s not like this is a new thing. This has been going on for about nine months or more, but it’s actually accelerating. So you, we have to ask ourselves, why is this happening and why does this matter? Right. And why does it matter for America? Well, in, you know, for all of your listeners and viewers, when interest rates go up, the value of bonds comes down. When interest rates come down, value bonds goes up.

So bondholders like it when interest rates come down because the value of their bonds go up. So when they sell them down the road, they’re going to get a higher price for it. Right? So you look at who the majority, vast majority of holders of bonds are. Its insurance companies, it’s pension funds. And we’ve got this problem now in, in Japan where the insurance carriers are the ones that are pre leading everybody in dumping Japanese bonds. Why? Because there’s, there’s a concept called a duration gap. So when you’re holding 30 year treasuries, 30 year bonds, and what do insurance companies do, life insurance companies, they pay benefits, death benefits, to people who die, right? So there’s this duration gap because people are going to be dying before the bond expires, which means the insurance company is ultimately going to have to sell those bonds at a lower price because interest rates are going up.

And so there’s this mass sell off because people are thinking interest rates are going to have to go up, they’re going to keep going up and that’s going to cause these bonds to come down. So every day that insurance companies delay in selling bonds, they face the risk of selling them at a lower price because interest rates are going up because of the inflationary pressures and the debt spiral. Now this is not going to begin and end with Japan so spread across the world, right? And if you look at a chart of the Japanese bond market and the US bond market and overlay those charts on each other, they are so similar.

And the speed of how they went down, then the speed of how they go up and what happens, the only difference is the US is lagging the Japanese bond market by, I don’t know, three to five months, right? So what’s going to happen is these charts look almost exactly the same. Like literally the path that they’re taking is almost exactly the same. America is just months behind. So what’s going to happen is yields are going to start going up on US Bonds, which means the value is going to come down. Insurance carriers in America, pensions. Imagine, Michael, what’s going to happen to the pension funds, like when you’ve got state pensions and federal pensions and all of these people were baby boomers, which is the largest demographic in America, are now wanting to retire and they’re going to start drawing benefits.

But it’s like, wait a second, these pension funds have extreme long positions in U.S. bonds. There’s this duration gap. They need to sell and they’re going to sell at a loss. And this is the of a massive, not to over exaggerate or use it in an inflammatory term, death spiral for the bond market. This is what happened in the late 70s and early 80s as well. It’s like these things are cyclical, they just happen. And in a rising interest rate environment and you’ve got the holders of bonds that need to sell them, they are forced to sell them at a loss.

And sadly, the holders of those tend to be pension funds and tend to be insurance companies. So this is probably why this morning Goldman Sachs came out and said over the next five years for you to hedge your portfolio. I mean, this is the best quote of the year. You need to hold Gold, not bonds for the next five years. This coming from Goldman Sachs. Right. So what do they see? They see a more medium term bond market implosion because interest rates have to go up. And so why do interest rates have to go up? Why is this different than any other economic cycle that we’ve been in? Because Moody’s downgraded our debt.

You know the credit rating on U.S. bonds on U.S. treasury treasuries has been downgraded from AAA to less for the first time ever with Moody’s. Not since 1919 have we had a downgrade in U.S. sovereign debt. Our credit rating was downgraded. So what does that mean? If we liken it to junk bonds, you could have a Treasury bond that pays low amounts of interest. But if you issue a junk bond which is a company that’s issuing debt because they’re about to die, if they don’t get an infusion of capital, they might go out of business. So they’re going to have to offer people massive interest rates to invest in that bond.

That’s a junk bond. So as the credit rating of America continues to come down, they’re going to have to raise interest rates to attract more foreign capital, which means the value of those bonds are going to come down. This is what’s so different this time is every other economic cycle that we’ve had since the early 1900s has had the US with a AAA credit rating. We don’t have that anymore. We don’t. And this is why this one is different and why people need to start really thinking clearly and with more immediacy on how to protect their portfolio.

Which is probably why Goldman Sachs wanting to remain credible, say you should probably get out of bonds for the next five years and go into gold because they see what’s coming too. I mean it’s kind of how I see it. Yeah, that’s, that’s pretty incredible. Now the almost share a screen it’s got the basically what we’re talking about as far as the Japanese yen and the bank of Japan, the Fed and the future of the yen. So you see all the different downturns we’ve had over time. The dot com bust. So you see that huge spike down between the yields 2008, 9, the big spike that wasn’t a big spike compared to the dot com bust.

And here’s the COVID crisis. Look at how deep this one is right now. We’re in this, but it’s not. Stocks aren’t crashing. I don’t know how they’re keeping this thing Afloat, but it is, it’s, it’s a balancing act that eventually won’t work. Where on that chart is 2008, 2009? Let me go back to it. Let’s pull it back up. Was that, was that the under underwater part prior to Covid on that chart? I’m saying I just, I, I delete it now. I just bring it back up. No, I have it now. So it took a little, little second.

So here’s the, you know, eight, nine. Okay. Financial crisis. I mean, that’s what I wanted to look at, because we all remember how bad that was. Right. It was horrible. And we all remember clearly how bad Covid was for business in America and all the stimulus money that needed to be created to keep the entire economy afloat. How bad those two time frames were this time? It’s like double or triple E is bad and the duration is much longer. Right. It’s like those things seem to be short, and we remember them as being extremely severe because they were.

But just look at the magnitude of what this one is. This signifies to me that this is a global bond market collapse that’s about to happen because it’s way worse than those other periods. And it doesn’t seem to be going away. It’s longer. This has lasted two years now. Two years. So, I mean, I think that’s a great chart to look at because it’s a visual, because people can remember how bad 2008, 2009 was if you were invested at that. Good point. Yep. You thought everything was going to fall apart forever and you’re never going to recover.

You ultimately recovered, but it was painful and it took a long time. This one is just worse. It’s just staggering to me because I, I thought surely the stock market was, we’re going to have like a 1929 type crash back in 2022. And then it turned around. I was dumbfounded. I was like, what is going on with this thing? And we’ve had, you know, ups and down, ups and downs is, you know, crazy right now, but it’s. The pressure’s building. It, it could be a lot worse than 1929 because of all the pressure, this building for this.

I agree. I, I 100% agree. And so what I want to encourage people with and put into your minds is the leftist media, the talking heads on financial news saying this is all Trump’s fault because of the tariffs, because of everything else. It’s like, no, it’s not. He’s. You can’t blame somebody who’s Been in office for 120 days for the $37 trillion worth of debt that we have. Right. I mean, but that’s what they’re blaming. They’re saying this is all because of his tariffs and this is because he wants to be American centric. It’s like, I hope he wants to be American centric.

He’s the President of the United States. But just, just this morning, or maybe it was last night, the new guy in Canada, I can’t, you know, their king, whatever he is, right? He was, he was basically saying, game over. This is awful. Trump is, this is my paraphrase. Trump and America are the worst things that have ever happened to Canada. And this cooperation that we’ve seen over the past decades and the economic coalition that we’ve created being neighboring countries has been so great. It’s been so great. But that’s over. It’s over, and we’re never going to be friends again.

That was the gist of his comments. And all these, all these commentators are saying, well, this is horrible. There’s the other provinces, like Alberta and Saskatchewan are like, we, we want to go, you know, 51st state. We’re ready to break free from Canada. I, I can’t blame them. Well, you’ve got the, you got the dumb financial talking heads on financial news saying how bad this is for Canada. It’s like, wait a second, what about nafta? How bad was that for America? Right? So, so they’re just all upset because Trump is finally doing something that’s good for America and it’s not a globalist agenda.

But what he’s doing. This is where I want to encourage everybody. What he’s doing, if the Congress and everybody gives him room to succeed, will bring jobs back to America. It will bring manufacturing back to America, which will bring income and ultimately float up the markets and give us enough money to actually pay down these deficits over time. Without that, the big beautiful bill should be renamed the most ugly, horrible bill ever, because it, because you can’t add that much debt without the ability to pay it off. And what they’re trying to do is handcuff Trump to say, we’re not gonna allow you to create money to pay this thing off, therefore you’re going to get the blame for it.

See, this is where this battle is intense right now. So during uncertainty, during times of tension, instability, you always should, always, always, always flock to something that’s real, intangible. Gold and silver. And I would do silver just because of the dynamics of the market and where they are to protect and preserve and, and truly thrive. Yeah, it’s so close to breaking out. This, I think the 3370 target around that if it breaks above that, it’s probably going to take off and keep knocking it down on purpose because they know if it gets there, it goes over that, they’re toast.

They’re going to lose big time because it’ll, it’ll skyrocket. But when you look at the patterns I saw in your news report, where you talk about the patterns, it is, it is absolute. We’re going through the same pattern that we saw last year when we saw mega, you know, increase in silver. So we, the same patterning is happening right now. And then we get the takeoff. So and if we get the same pattern that happened last year, we’ll see silver go way beyond 50. So that’s probably up to 75 this year, I would say. And then next year, you know, probably double again.

So it’s, it’s going to be a pretty, pretty exciting time. Now you’re, you were mentioning before the show that you’re at the, the crypto conventions there. That’s interesting. They, they invite you to come speak there, or is this part of a big group of people? I’m not speaking, nor would they actually invite me to speak. But, but what I’m here to do is there was so many, so many speeches by people that we need to hear from. So David Sachs was speaking, Donald Trump Jr. Was speaking, J.D. vance spoke Congress or Senator Loomis was speaking. And I wanted to hear about the advancement of bills that are going to change us into more digital, digital currency.

Right. So we are globally, we’re going into digital money. So you’ve got the Bitcoin convention. There’s literally like 35,000 people there. And XRP convention is today and tomorrow. But what we’re seeing here is this resounding talk that permeates everything. It’s like this common thread. We’re moving into stablecoins and we’re getting away from paper money. Right. And it’s just the way that it is. Right. And so what was interesting about something that Sachs had said and JD Vance both is that after the genius bill is passed, they’re going to actually start initiating a market structure bill, which they realize that Trump is in for four years.

What about post Trump? Is everything that they’ve worked so hard to do just unwound? And so the market structure bill is going to make it so they can’t unwind it. Right. So these things that are being put in place. Well, ultimately anything can be unwound, but they’re going to make it very, very difficult. Right. And once. So here’s where I wanted to see what the timeframe was. I wanted to see get under the hood on some of these bills, which is why I wanted to be. And I think what we’re going to see is an economy moving forward that’s digital.

So either you’re on board with digital or you’re not. It doesn’t matter what your answer is because we’re going that way anyways, whether you like it or not. But if you don’t like it that we’re going digital either way, paper money as we know it is going away. I think central banking as we know it is going away. So you either jump on the crypto train or you start going into physical assets like gold and silver. Because paper money as we know it I think is going to cease to exist. Banking as we know it, I think, Michael, two years from now, banking as we know it is going to move into peer to peer decentralized finance instead of central bank money.

It’s just the way that we’re going. So what we’re doing is helping people navigate through this with solutions of having tangible assets to get out of the system. See, this is going to be a change that’s so drastic and change always gets money to move. Right. Because people are afraid and they don’t know what’s going to happen. And people invest based on certainty and continuity of expectations. And when you don’t know what’s going to happen, go into something that’s tried true stable gold and silver, because that will be your safe haven while we’re in times of turbulence.

Absolutely. And you know, I think that, you know, because we just had here, where I’m at in Florida, they just signed into law. You know, gold and silver can be used as, you know, legal tender. And they’re talking about just like you are digital. So you have it on a debit card and if you go and let’s say you have so much, I don’t know where you would have it. Maybe in a depository or wherever you would have it, you could basically tap into it, bank whatever it is and it’s going, or you could load it somehow.

So that’s, that’s basically what it’s going to be. You know, probably some kind of tangible asset like gold or silver backing, maybe some of these crypto coins or. What do you think about that? I definitely think so. And I am a huge proponent of that. I’m a huge proponent of stablecoins being backed by a physical commodity, whether it’s because we’re going this route anyway. So stablecoin backed by gold, you can have stable coins backed by real estate. I think having just a cryptocurrency like Bitcoin for example, or any of them, Ethereum, you name it. Technically that’s not much different than just paper money being created by a bank.

It’s just in digital. Right. But now you, you blend the old with the new, you have a tangible backed cryptocurrency. It’s like, all right, well we’re going digital, but I still want gold or silver, you know, or real estate. Let’s have this. Like in this digital world the term is tokenization. You can tokenize anything, you can attach anything of value to the token. It’s just the medium of exchange that changes. So I’m, I’m a huge proponent of asset backed cryptocurrency because we’re going to cryptocurrency anyways. But you better have it backed with something. Yep, absolutely. And the way to get something that’s an excellent asset throughout history is to contact Dr.

Kirk Elliot Precious Metals. The contact information is in the drop down box and description box. You can contact them mentioned Michael Jaco. The Phone number is 720-605-3900 and of course you can hit the link and then fill out the email information and cinema. You know your, what you’re requesting and they’ll get back to you. So really good. Yep, absolutely. Will help you out. Awesome. Enjoy your Vegas tour and have a good time. Yeah, thank you. You have a good one. You too. Bye bye. Bye bye.
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