Summary
âž¡ The article discusses the potential for a financial crisis due to political decisions and economic policies. It suggests that banks may fail due to large insurance claims and that politics and economics are intertwined, with political decisions impacting the economy. The article also discusses the potential for inflation due to tariffs and the possibility of a financial reset. It ends by suggesting that the current administration’s policies could lead to a financial crisis.
âž¡ The article discusses the idea of using tariffs instead of income taxes to fund the country’s expenses, a concept attributed to Trump and the Founding Fathers. It also highlights the increasing demand for silver and gold, suggesting that investing in these metals could be beneficial, especially with the potential economic upheaval. The article also mentions the possibility of a shift towards cryptocurrencies and the need to act wisely in these uncertain times. Lastly, it hints at potential extraordinary measures to tackle the national debt.
Transcript
I mean, it’s just insane, right? But, but what does this tell us? This tells us that people are looking for something outside of the norm, right? They want something that’s not tied to the central banks, they want something that’s private. They don’t trust what’s going on in the banking system. And so what we’re seeing is actually this dual explosion in prices and crypto, for one. I mean, you look at all of them, you look at xrp, you look at Ethereum, you look at Solana, you look at Trump’s mean coin, they’re all going up. But you also look at gold and silver and they’re really starting to move too.
Because when you look at what, for example, Elon Musk is, is wanting to do with Doge, right, He wants to eliminate expenses as much as possible. He really wants to make government more efficient. And what’s following that is many states. Now, I saw, I saw Senator Ayotte saying that their state is a model for government efficiency. We’re seeing Wisconsin starting to do the same things. They’re doing extreme Doge type policies at the state level, not just the federal level. So what is this going to mean? This is going to mean that there’s this expectation and perception is reality that the markets are going to grow, that Trump is going to do great things.
However, what we’re starting to see is that the global economy is really hurting. And so we’ve talked a lot about silver over the last two, two and a half years. Right now though, we’re seeing something really incredible starting to happen. So if you look at the depositories where all the gold and silver are stored, there’s swapping happening, people are dumping their, their futures contracts for the March rollover and they’re replacing them with physical silver. So what we’re seeing is a massive reduction in inventories of silver for receivership at the, at the depository level. And you’re seeing an Increase in, in gold inventories.
It’s like, what, what’s going on? Exactly what we’ve been talking about, I believe, with the ratio trade, you know, from silver to gold. So people are starting to get out of things that they think are going to be underperforming. They’re getting out of stocks that they think may be underperforming. Even though the Dow is up like 300 points the other day, they’re going into things that they know are going to be impacted greatly. So I’m not saying that gold isn’t going to be impacted greatly by Trump. I think that it is. As the rest of the world starts to decline, central banks are allocating into gold.
China, after a six or seven month hiatus of buying gold, is now buying it with a frenzy. So gold is going to go up. But the weird thing is when you look at the inventories of Comex and gold is actually increasing in physical and silver is decreasing, people are starting to look at that discrepancy between the prices of silver and gold and they’re expecting silver to outperform. So I started to ask myself over the last couple of days, why is this happening? Well, under a Trump presidency, the economy is absolutely going to grow. And the demand for AI, the demand for silver and all electronics, I mean, it is needed, Michael, for all of the crypto mining, for everything that’s going on.
And so there’s, there’s kind of two types of people that, that I serve, right. And being a precious metals dealer, and that is the people in the 20 to 40 age range which might not want physical metals. They think it’s an ancient relic. They don’t know if it’s really great. However, I think they’re starting to jump into it. That market demographic actually goes into crypto more often than physical metals. So you’re starting to see that rise. Now. What you’re also starting to see is people in the 50 to 75 age range that don’t like crypto. They don’t understand it.
They don’t know how to set up a coin wallet. They don’t trust it. Right. And everything that’s new takes a while for consumers to adapt to it. For example, when we went off of the gold standard in the early 70s and people thought we just got this paper currency. This is weird. It’s like, is this even real? And then you go into credit cards, you go from paper, you go from basically gold being interchangeable with paper from early on, like the 1700s until the emergence of the Federal Reserve. Right. And Then you went to just paper only after 1970.
And then we started to go into plastic with, with credit cards. Now plastic is being replaced with decentralized blockchain. Right? So there’s this, there’s this life cycle of things, right? And, and it takes a while for people to adapt. I would say two years from now we’re not even going to have paper money anymore. I mean, I hate to, I don’t like to be some kind of weird, you know, I’m not a prophet, but I am a forecaster in the sense of I’m an economist. And you look at these trends and a couple years from now we’re probably not even going to have paper money anymore.
So therefore, what are we going to have? You’re going to have central bank digital currency, which is all about people control, it’s all about power. It’s all about knowing the source of funds, the use of funds, and tying it to your digital social profile profile and your social credit score. That’s the centralized version of it. Digital money isn’t necessarily bad. Centralization of it, where they can control your spending is bad. This is why the move away from centralized money and centralized control is what I see. The rise in prices of gold and silver, the rise in prices of crypto is telling me now when you need physical commodities, physical silver for all of this to happen, those of us who want something that’s tangible, that’s real, that you can take delivery of, that you can put in your IRAs, that’s a huge option as well as crypto.
But if, if I were a betting man, which I’m not, I wouldn’t keep money in the banks because like here’s the thing, when, when I think there’s a banking crisis that’s right underneath our nose and not many people are seeing it. When you look at the fires in California and La Malibu is basically gone. Pacific Palisades is basically gone, right? You’ve got upwards of. Now, I think the last time we did a show which was not that long ago, week and a half maybe, the losses that weren’t covered by insurance were $150 billion. Right? And then the insurance losses were somewhere in the $20 billion range.
Now as of today, when we do this recording, the estimated insurance losses are pushing 40 to $45 billion. And the losses of, of people that didn’t have insurance, that insurance isn’t covering is pushing 250 to 275 billion. Right. So let’s just focus on the, on the amount that insurance companies are Going to have to pay, right? Which is pushing 40 to 45 billion. How do they pay their claims? With cash. Where do insurance companies keep their cash? And current insurance companies aren’t their own bank. They keep cash in banks, right? So as they have to start paying the claims, there’s going to be massive withdrawals from banks.
And banks are already under capitalized. They don’t have enough money. So, so here’s the thing where politics and economics meld and create an intensely scary picture for, for the banking industry, right? Which is why I think people are moving away from, from paper money and central banking as we know it. Because it’s not just insurance companies are going to fail. I mean, we’re probably going to see multiple big insurance companies fail over the largest natural disaster insurance losses in the history of our country. In the small little area, Malibu, Pacific Palisades, Louisiana. Those aren’t. Those insurance companies aren’t just companies that, that ensure only that area.
They’re nationwide insurance companies. Right? Which means they have nationwide banks. So, so here’s where, when banks are undercapitalized and like we’ve talked about, I can remember maybe even three or four times on this show, we’ve talked about FDIC being so underinsured they only have 1.17% of all deposits insured. Well, oh, what if it’s not just Silicon Valley bank that goes down like we saw in March of 23 and then followed by First Republic, followed by Signature bank, followed by Silvergate bank, followed by Credit Suisse. Right. What if it’s a bigger bank because these insurance companies don’t have their money tied up in regional banks, they have them tied up in larger banks because they’re national insurance companies.
So we could see a big bank failure. We could see a run on the banks just under the perception that that could happen, even if it doesn’t. But I think, I think we’re going to see some banks fail because of the largest insurance claim in the history of our country. That came from politics, right? This is where politics and economics melt. Because Gavin Newsom possibly going to go down as the worst governor in the history of the world. I mean, they didn’t even have water. And this is where in the under the hydrants we saw images and videos of firefighters putting water in buckets from pools and in women’s purses from pools to try to put out fires.
This is bad policy and bad politics making the economy interact. And this is what I’ve said and you’ve said for years is like the economy isn’t isolated as just the economy. The economy is always a function of politics. Whether it’s legislators deciding we’re going to have all these expenditures or going to cut expenditures, whether it’s the Federal Reserve saying they’re going to raise interest rates or lower interest rates, or they’re going to create money, or they’re going to pull money out of the money supply, they’re always intertwined. Markets react to political moves, just which is what we’re seeing now, the expectation that Trump is going to really change things.
Elon Musk, with his policies, are going to cut expenses, which to me is a great thing. Right. I don’t think we should have all the government waste that we do, but it’s like a pimple on an elephant’s butt, right. When you’ve got $36 trillion worth of debt and they’re talking about maybe eliminating one to $2 trillion of government waste every year. $1.8 trillion every year is, is just what we go over budget every single year. So even if they cut 2 trillion, we’re basically at zero. You’re not whittling away the government debt yet. Right. So I’m not saying that this is a.
I’m not saying that cutting government expenses is a bad thing. I think it’s a great thing and to move in the right direction. But what Trump is inheriting is an absolutely empty refrigerator. Right. That’s going to have political consequences. And what we’re going to see on Monday. I love that Trump is going to get back in office. I’m afraid of the mayhem that might be caused because he’s getting into office. And the left and the globalists and the international bankers absolutely hate it. Yeah. They’re already demonstrating. It’s like upwards of a hundred thousand people today alone are demonstrating in D.C.
who knows what it’s going to be over the next several days? Who. Who knows what it’s going to be over the next several days? You’re absolutely right. But, but this is where, when they lost, right. They know that they lost. They know that Trump is in. They’re gonna do everything they can do. My opinion, not saying that this is fact. This is my opinion that they’re going to try to destroy things as much as possible, even after Monday, when Trump is in the White House, because they’re going to try to destroy things for him. So he can’t focus on growing the economy.
He’s gonna have to focus on how do you. How do you actually bring any kind of functioning government into something that’s Completely collapsing. Because anybody, you, you know this, they’re all your viewers know this. Whoever is holding the bag when something fails gets the blame for it. For example, the Fed met last week and they’ve met the week before. And I think they have like seven meetings over the next week. And what’s the narrative? The narrative is we’re going to have massive inflation because of Trump’s tariffs and the inflation is going to persist. Wait a second.
For the last six or seven months, we’ve heard that Biden’s done an amazing job, that they’ve tackled inflation. It’s not really a big thing, and yet nothing has changed and the inflation hasn’t changed. But now they’re blaming it on Trump and people actually listening heads. And we know what happens when inflation skyrockets. The price of silver and gold go up massively. That’s what happened during the Carter years. Oh, absolutely. And, and, but people that listen to mainstream media that, that CNBCs of the world and the MSNBCs and, and even Fox News, right, They’re, they’re actually saying, well, wow, these tariffs are gonna bring inflation.
Maybe they’re right. It’s like, if I were Trump, I would say, wait a second, you’re blaming me for inflation? I haven’t been in office for four years. It’s not my fault. Right? But people believe what they hear on tv, right? And so whoever is holding the bag when the inflationary pressures persist and markets start to collapse and banks are failing, possibly because of the fire in la, and my heart and prayers go out to everybody who have lost their homes because last year thousands of people lost their insurance in California because the insurance companies, here’s, here’s where I don’t blame the insurance companies, right? It’s like they’re a business.
Why would you insure somebody’s house if there’s no water under the fire hydrants? To put out a fire if the fire starts, that’s politics. But are they cutting the fire? And they’re cutting the fire department and they’re not clearing the brush and the deadfall and, and there’s not enough. Then there’s not enough firefighters because they got rid of the firefighters because they weren’t vaccinated. It’s like, what in the world? California is an absolute mess, right? So, but, but that’s such a big loss that you’re going to see that. You’re going to see probably some banking failures, you’re going to see some insurance company failures, and, oh, who’s going to be in charge when all this happens, it’s going to be Trump and none of it is his fault.
Right. But, but they’re going to pin the blame on him and he’s going to have to work his magic to get out of it and there’s nobody better on the planet to, to work his magic and get out of this because he’s a great president, that’s a great business person that can get us out of this and he’s not afraid of the political ramifications that China is going to bring or other countries are going to bring. So, so let’s, let’s talk about China. Right. So I was reading this article on X by a guy named his, it’s at Finance Lancelot.
I don’t know who he is but, but he wrote out seven steps of what he thinks is going to happen and I actually agree with his assessment. So if you look everyone, if so basically the dollar is coming down, right? Because what’s going to happen is China, other countries are going to sell their U.S. treasuries and they’ve been doing this for a long time. Well now the US Dollar is collapsing and if everyone is selling US Treasuries at fire sale prices, the US is simply going to buy up all of its own debt with the skyrocketing dollar as the dollar actually starts to increase.
Right, and why would the dollar increase? Right. This is a question. The dollar is going to increase because the Fed and the treasury are changing the rules of not necessarily rules, but they’re not really rules but, but they’re policies of they’re getting Treasuries, they’re buying their own Treasuries while they’re cheap with money that they print out of thin air, reducing the supply. Well, you know what? We still live in a dollar denominated world where all international settlements have to be traded in the US Dollar until the BRICS nations actually replace the US Dollar as the world’s reserve currency, which they’re well on the way to do.
So if there’s no supply of dollars and these debts have to be repaid and they have to buy US Treasuries, this is how the Fed is manipulating the game to get people who don’t want the US Dollar because they’ve been dumping it for a long time to actually have to buy it because they’re pulling dollars off out of supply. So here’s the steps that this Finance Lancelot guy, he said there’ll be a credit downgrade so nations dump US Treasuries which we’re already Seeing we haven’t seen the downgrade yet, but they’re already dumping US Treasuries, then that requires rapidly rising interest rates to actually slow down the inflation, right as the US Dollar deteriorates.
And then you restrict the swap lines, causing a dollar shortage, which is what they’re doing now. Then you stage an incident. What if the incident happens to come from, coincidentally, banks failing or insurance companies failing, and people have to start buying the dollar. The dollar skyrockets, panic spreads to the financial systems, nations collapse, they print trillions of dollars to buy our own cheap debt, and then there’s a reset that happens. It’s like, I can’t really poke any holes into this theory, but what we can say is that there’s going to be some kind of a crisis, some kind of a financial crisis, because of the implications of the Biden administration, right where they’ve been printing money, wages have come down, people can’t afford to live.
And this was the referendum when Trump got elected. People say, I don’t trust the way that things are. We need a change. We absolutely need a change. And Trump, going back to the vision of the Founding Fathers, possibly has the best idea in the history of our country, which is, let’s have other countries pay for our debts, pay for our stimulus, pay for our expenditures, and not US Taxpayers. See, income taxes has been what’s funded all of this stuff. Well, what if you replace it with tariffs? So now other countries pay for all of this stuff.
The US Taxpayer, we don’t have taxes anymore because you get rid of personal income taxes, then people’s bottom lines will increase, they’ll spend more, companies will increase. And this is like the magic of what tariffs do and why the Founding Fathers envisioned it in their wisdom, they said, why should we have our people pay for our debt and our expenditures in running our company? If we could have other countries do it through tariffs? Brilliant, right? So we lost that brilliance when the IRS became an entity. We’ve kind of lost that brilliance with the emergence of the Federal Reserve in the early 1900s.
Trump is bringing that back. But the political ramifications are gonna be pretty extreme, which is why I think you look at what Russia is doing, adding silver as a backdrop to the Russian ruble along with gold. The demand for silver is going to go up, the supply is going to come down. You look at what all these other countries are doing, they’re adding gold to their strategic reserves to back their currency, to replace the US Dollar as the world’s reserve currency. There’s so much Upheaval right now, Michael. So much upheaval that all we need to do is identify these upheaval situations.
And when you act accordingly and end with wisdom, end with understanding the technicals of this is, you can say, well, good grief, Comex depositories are running low on silver while the demand is going up. And in March, there’s a rollover of futures contracts. I think February could be a blockbuster month for precious metals to go up. Right. I think not just silver, but gold as well. But silver should greatly outperform because of what we started the show with. Inventories of gold are going up, inventories of silver are coming down. This prepares us exactly for a ratio trade that we’ve been working on for years, building into that, allocating into the outperforming metal, which is what silver is doing.
That’s how the ratio compresses. And then we get to take advantage of it and ultimately gold. Now, for the younger clients who might like crypto, well, you take your profits in silver, then you take your profits in gold, and you could roll them into crypto, or you could just stay in the metals complex. For those who don’t trust anything that’s digital at all. Right. And, and stay in the metals complex. But what I’m seeing is because of Trump, which we’re going to see great things happen. You’re also going to see mayhem happen. Right. Which what you’ve already talked about, riots starting to ensue already, and we’re not even to.
We’re not even to the inauguration. Right, Right. So. So as I look at this, and, and, you know, this is where I think you and I are so ahead of the curve in the sense. I don’t like to toot our own horn. I don’t. However, mainstream media, they’re. They’re not. Right? Right. I think what we’ve done by identifying the trends and using the wisdom that God has given us, you can allocate into strength, get out of things that are not strong. Because in times of turbulence, everything that we knew is being safe, solid, whatever, banks, right.
Money in the bank. Right. I mean, that’s why that saying is there. It’s like, I’ve got money in the bank. Right. It’s like, okay, do you really, you know, five years ago, maybe that was a good thing if you didn’t trust the markets, you say, I’m just pulling out. I’m going to sit on the sideline, I’m going to sit in cash. That would have been a fine thing to do. I can’t say that that’s really the case right now because we’re seeing a move not just with banks being under capitalized, but a move away from paper altogether.
Right. And I think over the next couple of years, this is really going to happen. And what you’re seeing with Trump is putting people in key positions that are pro crypto, that are pro get out of debt, that are actually pro economy, which, which gold isn’t necessarily pro economy. Silver is pro economy because it’s needed for solar, it’s needed for military. And I don’t see the world becoming a more peaceful place all of a sudden. Wars and rumors of wars and the eruption of disturbances is going to continue. So take advantage of that trend and be in the right place at the right time.
That’s why I’m just pushing hard to get the message out that people should allocate into silver and do it now. I mean, I’ve been traveling for the last week and silver went from the upper 29s to more than 31 while I was gone. So this is really great things for us to actually consider as supply starts to diminish. Yeah, outstanding. So we’re in the, we’re already in the beginning stages of a bull market in silver and gold and probably, like you’re saying, probably around the February time frame, maybe a little bit later, we’re going to see all time highs very easily.
I believe gold is a win win, our silver’s a win win because like you said, if economy does bad, silver goes up, the economy does well, silver goes up. So we’re, we’re, we’re going to win regardless on silver. But I think we’re going to see some downturn like we’ve talked about for quite some time in this transition phase. And we, we saw like, you know, in Trump’s first term, the whole world was almost revolutionizing against this deep state apparatus and then Covid hit, turned everything around and then boom, Trump’s out of office. So we’ve gone quite a long time without this revolution and, you know, changing things.
So I think this time people are going to be very serious about it and we’re going to see this, this turnaround like we’ve talked about for quite some time. But it’s going to come with some, you know, definitely some problems. Absolutely. And, and you know, don’t, don’t let fear cause you to stick your head in the sand and do nothing. Don’t let the uncertainty cause you to do nothing. Let the uncertainty cause you to act right when, when you understand, like what we’re talking about certain things cause markets to move up, certain things cause markets to move down.
Take advantage of this. Just give us a call because we can help you navigate through that. And and also on Tuesday, Janet Yellen said that they’re going to have to take extraordinary measures to tackle the debt because the debt ceiling is going to be hit and they don’t want to shut down the government and they’re already threatening to actually not pay into like the government retirement system. They’re going to withhold those payments. What are extraordinary measures? I don’t know. I guess we’ll find out on Tuesday. Is it going to be going to print money like there’s no tomorrow in her swans swan song like policy initiative before she’s ousted? Right.
It’s like I don’t know what an extraordinary measure could be other than stopping payments to certain people that are in retirement because why Trump’s going to get the blame for it. He’s going to be in office at that point trying to create a bunch of inflation because they’re going to have to print their way out of it. I mean, when she said this morning, actually this morning that they’re going to take extraordinary measures on Tuesday, we’ll see what those actually mean. But that’s upheaval in the markets. Wow. Crazy. So to get involved in this free consultation, K-E-P M.com Jayco Jaco and you got the phone number, 720-605-3900.
It’s the best team out there. You don’t want to be not in silver at this point. It is the most invested foundation that I have in silver right now because I feel that we’re going to go through very traumatic times. But I’ve been, you know, dollar house averaging in silver for two and a half years and my investment is spectacular. So hopefully you guys have been listening. It’s not obviously not too late. It’s the best time really of all to get into silver right now. Absolutely. Just give us a jingle and let them know that Jayco sent you and we’ll take good care of you.
Very good. Well, thank you, sir, for, you know, coming in this late time frame and appreciate all your insights and we love what you guys do and you guys serve a lot of good, good people out there. I’ve had a lot of people say really great things about your team. Thank you. Well, you bet. It’s my pleasure. Awesome. All right, guys, thanks a lot. Stay in the love vibration. We’ll see you guys next time. Next time.
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