Folks, it’s great to have Dr. Kirk Elliott with us back again every week with wonderful updates. You guys know you can go to the description box below and we know dot com forward slash gold and you can have these conversations I’m having with Dr. Elliott with him and his staff and they’ll take care of you especially when it comes to precious metals your IRAs and so much more and we’ve got a lot on the docket today. The first one you want to kick off with is pretty big. What do you got today?

So we’ve been talking a lot LT about US banks right and how a couple of weeks ago the FDIC came out with a report that said there were 63 banks that went into a reverse repurchase agreement with the Fed and we explained what that meant meaning they received capital in exchange they gave the Fed back these worthless US Treasuries that they said they would buy back later.

So the point is they got money in. Why do banks need money to come in? Because they’re running out, that’s why. The FDIC report didn’t say that all these 63 banks are troubled. But when I look at it, they had 63 banks that needed a massive capital infusion via a reverse repo mechanism. So there’s 63 banks that are on the verge of a major capitalization issue, kind of running out of money. Right now, this is actually starting to spread globally. It’s like this contagion. Last week there was a bank in Switzerland called Flow Bank that went into receivership.

And there the insurance in Switzerland is less than what the FDIC is. So anybody with over a hundred thousand Swiss francs probably was not going to get anything back. And you look at that and cycle, man, that was a Swiss bank. Everyone thinks that Swiss banks are amazing. No, it’s spreading there. And then just yesterday a massive Japanese bank, Norin Chukan, which has about 850 billion dollars in assets, so close to a trillion. And what did they do? They liquidated 63 billion dollars worth of U.S. treasuries and European bonds. Now why did they have to do that?

Because they have a massive amount of basically unrealized losses on their balance sheet. Meaning if they were to sell them, they would be realized losses. But because they haven’t sold them, they’re just unrealized losses. So their asset base is coming down, down, down, down.

And so they were forced to liquidate 63 billion dollars worth of U.S. and European treasuries. So when I look at that, that’s only the first part of the story. You have to ask what didn’t they liquidate, right? So they didn’t liquidate any Chinese bonds. They didn’t liquidate any, well, anything from like the Middle East. They didn’t know Saudi Arabia or United Arab Emirates or any of the other bonds that they would own. It’s like why? Well, because I think what they’re seeing is a pendulum-shifting moment in the global economy. Where, why did people used to want U.S. treasuries in the back or in the past, or banks or countries?

Because they were the safe haven blue chip type thing, right? It’s like we were the reserve currency. Everybody wanted the U.S. dollar. All countries were basically graded against the U.S. dollar, right? But not anymore, really not anymore.

Because on June 9th, and we talked about this last week, when Saudi Arabia decided they’re dumping the U.S. dollars, the petrodollar, and they’re going to the yuan. That was the beginning of the end for the dollar. Now when Japan, this big massive monster bank in Japan, said we’re going to liquidate something, we have to ask ourselves this question.

Why do we get rid of stuff? Well, if you’re investing either a, you just need to make some money, or b, you’re getting rid of it because you know it’s going to come down and you want to lock in your profits now, right? So, so here’s where I think it’s the second one. Because they have other treasuries from other countries that they could have liquidated, but they did not.

They got rid of U.S. and European because they’ve seen this pendulum shifting from the West to the East, from New York and London over to Beijing and Shanghai and all the exchanges over there. And it’s like, okay, this is not good. This is not good for Europe and America that they’re dumping this. So here’s where, um, when you look at why they had to do it because they had unrealized losses. What are the unrealized losses of U.S. banks? Well, we found out last week from the FDIC in the report, half a trillion dollars. So 500 billion dollars are U.S. banks unrealized losses.

See, there’s, there’s going to be this contagion that’s spreading across the globe of, of bank failures. And we talked about this two months ago, three months ago, six months ago, that another round of, of bank runs was going to be happening. I, I just didn’t think that it was going to start overseas. I thought it would start here. But it did, it started overseas. And so this contagion is spreading. And what comes next is, is when mainstream media decides to report on some of this stuff and people start to think, oh my word is my bank safe? Is this going to be it’s a wonderful life all over again?

You know, the images of the old black and white movie where people are lined up at the bank and they can’t get under money out because there’s nothing there. Yep, that’s, that’s what’s coming. It just is. I don’t want to be a prophet of gloom and doom and it’s not prophetic in any stretch. But when banks run out of money, they have to close their doors. It’s just common sense. And sadly, we live in a world, LT, where everything that we have in America, um, and people can try to correct me if they think that I’m wrong, is from a debt-based system, right?

We’ve got 34 trillion dollars worth of debt at the federal level. We’ve got multiple quadrillions of dollars of debt and derivatives debt. We’ve got hundreds of trillions of dollars of debt and unfunded future obligations. Meaning bills that Congress has already passed that you can’t really get rid of it. You can’t get rid of an entitlement without a revolution, right? Or a mandatory payment like social security without a revolution. Or can you? This is my next story I want to talk about. But those are unfunded future obligations, hundreds of trillions.

Corporate America’s in debt up to its eyeballs. We have a trillion dollars of credit card debt for the first time. We have tons of student loan debt that Biden’s actually saying, hey, let’s pay the student loans off because we want their votes with money that’s printed out of thin air. See, and the stock market goes up for one reason: revenues, right? So where can you get revenues? You can get revenues from people spending money like you and me or anybody else because we have extra money left over at the end of the month. We have a good job.

But this is not America right now. Right now in America we’ve got people who are ravaged by debt. When they’re ravaged by debt and interest rates go up, that debt service goes up. There’s inflationary pressures and people can’t really afford to make ends meet. So there’s no revenue going into the stock market. For all intents and purposes because people are spending money. So where is it coming from? Stimulus money, right? They’re keeping the markets propped up with stimulus money, with money that they print out of thin air.

And that’s going to accelerate, LT, because we are no longer the reserve currency. After Saudi Arabia dumped the U.S. dollar as the petrodollar, right? So you’ve got these problems happening. But I mentioned something really briefly there about you can’t take something away if it’s already been given because you’ll have a revolution, right?

But what about Social Security? So you and I have actually talked over the last year about how the Social Security trust fund is underfunded. Social Security is ultimately going to run out for demographic reasons and for market-based reasons. So the demographics are in most of Western culture, including Japan and China. Both, you’ve got, well, China because of a one-child policy. Others because you have to have parents that are both having to work. There are basically fertility rates that are below 2.0.

Meaning we don’t, we’re not having as many kids as we once used to, right? And that’s something that permeates in Western cultures, not something that’s happening in Latin America, Middle Eastern cultures. Their populations are exploding where Western culture is diminishing. So what that means is you right now have this demographic shift, the graying of America, where you’ve got people that are retired. The baby boomers are retiring and they’re going to expect their benefits, Social Security, Medicare, whatever.

But there’s fewer people working into the system to pay for those benefits because we have a declining birth rate. There’s fewer people, fewer kids getting into their working years to pay off the huge mushroom cloud of entitlements. Because the largest age group demographic in America is the baby boomers and they’re retiring. So you’ve got that happening plus just bad, bad market conditions. Most pensions, most government pensions, most state pensions, they’re tied to interest rates because they’re into annuities or they’re into the bond market to add stability.

But when the value of bonds comes down as interest rates go up. So interest rates are going up, the value bonds are coming down. People need their benefits. The hedge fund managers, these retirement fund managers need to sell bonds to pay people their income.

And what are they selling the bonds at a lower price? Because interest rates are going up, right? So this is the problem that we’re seeing. So now Congress met last week and they basically came up with a conclusion. So, okay, I know their conclusion is we have to start a committee to investigate this Social Security mess that we’re in. So whenever you hear the words Congress and committee, your brain should actually think, okay, nothing is going to get done.

So they decided based on the numbers coming out, Social Security is going to run out of money by the year 2033. So that’s nine years away. And so part of their plan is we’re going to have to actually cut benefits down to 79 percent of their value right now.

So a 21 percent haircut on people’s benefits. So this is how governments start to operate, right? Because again, we have this demographic shift. Not enough people paying into a system to pay for retirees. So something like this happened in France over the summer, right? When the French government said, hey, you live in a socialist country and you’ve been paying extra in taxes your whole life so the government can take care of you when you retire.

And then they said, well, we’re going to have to raise your retirement age. So everybody who’s about to retire, you’re going to have to wait till age 70, right? It’s like, what? So then they had riots, they had blood in the streets. The cops were knocking down the old people of society that were protesting that their Social Security or whatever they call it there went away. And so that’s an austerity measure. So we’re doing the same thing in America.

They’re going to have to cut benefits by 21 percent. So to put that into perspective, if you make a thousand dollars a month in Social Security and they cut 21 percent, you’re only going to make 790. Well, couple that with prices that are going up, interest rates that are going up. People already can’t afford to live. But imagine a world where interest rates are going to be higher, inflation is higher, and benefits are coming down.

They got a problem on their hands. So here’s what this committee is probably going to start deciding. Well, maybe we should raise our retirement age too, like they did in France. Maybe we should cut benefits even more than 21 percent or let’s raise taxes. So how do you raise into this? So you pay Social Security on every single paycheck that you get, but it caps out at $168,800, right? So all they have to do is say, well, let’s tax the wealthy a little bit more.

Let’s keep collecting that Social Security payment from people paying into the system until $300,000 in income or $400,000 in income, right? They can do all of these things. All of that is going to hamper the economy in a really bad way. So now start to put these things together. We’ve got the 11th largest bank in Japan worth close to a billion or a trillion dollars that’s dumping U.S. and European treasuries. You’ve got Saudi Arabia that actually said no more petrodollar.

We’re going to trade in yuan instead. You’ve got the Treasury Department and basically investigators here realizing we’re going to run out of Social Security in nine years. All of that news happening at the same time. Perfect opportunity for the globalists to start doing something that’s going to be nasty. Which has come up with a solution like central bank digital currency, which nobody should want. Nobody should want.

But yet this contagion that we’re talking about, not just being a U.S. thing, it’s going all around the world. Now Japan, it’s gone to Switzerland. This is going to spread and this is why they’re already setting the stage. 94 percent of the world is ready for central bank digital currency. Presidents in 192 countries have already given up their sovereignty to the World Health Organization to shut things down if there’s a global health emergency like bird flu.

And bird flu in America is now morphed into cow flu as well because they’re killing both cows and birds because of it. And last week the former head of the Centers for Disease Control made an ominous statement. And he said, you know what, he didn’t really hem-haw around too much. He just said bird flu is going to be the next pandemic. There you have it. You can’t interpret that any other way, right?

So all this fear and these things that are happening, and when you have a state of fear, people start to make bad decisions and they start to give up their rights and their sovereignty and their privacy and their freedoms to the government to take care of them. So what you and I have been shouting from the rooftops about for a long time is allocated into gold and silver. It’s that safe haven. Well, yesterday silver was up almost another three or four percent.

I mean it just keeps rolling, right? We’re at 31, close to 31 an ounce and boy, 13 weeks ago we were at a little less than 22. It’s like, man, that’s up a lot. Yeah, I mean that’s up almost now 35 percent in the last three months. But I think it’s going to get significantly different and get better because I was just reading this report. I have to read the numbers to you. Commitment of traders, you know, for traders in the commodities markets.

This tells us how many short positions are out there right now, like big banks like JP Morgan Chase, HSBC. Those are the two biggies, Bank of America. They have 826 million ounces of silver in a short position. The COMEX, those numbers came out on their available physical inventory. How much physical silver do they have in the depository system? 297 million ounces. So it’s like, what? They only have 297 million but short positions are 826.

That means there’s a good 500 million plus ounces that are naked shorts. Meaning the banks that are shorting them don’t own them. That’s kind of illegal for us to do but they can do kind of whatever they want. So here’s where it starts to get really squirrely, LT. Because the manufacturers in the defense industry, like Lockheed Martin and Boeing and Martin Marietta and all these companies, and Sony and Tesla, they’re going to need silver.

Are they going to need that 826 million ounces of paper? No, that’s not silver, it’s paper. They’re going to need the 297 million ounces. So the point is when those short positions come due, that the holders of the other side of those contracts can request physical delivery.

Well, there’s only 297 million ounces. There’s 826 million that are short. What if more than 297 million are asked for physical delivery? Well, then you have a short squeeze, right? And this is what we’re looking for in this market. This is ripe for a short squeeze because it is so out of whack. It is so out of whack that 2.7 times the amount of physical silver is now in a short position.

So last time we had these kind of fundamentals and dynamics that weren’t even this extreme was in 2011 when silver went from 12 to 48 dollars an ounce in half a year. It’s like, man, this is what happens when physical supply diminishes but the demand is still there for manufacturers. And then the demand is there from investors and the demand is there, like at least with gold, for central banks all over the world. It’s like, LT, this is why we do what we do, to let people know.

Not to be harbingers of gloom and doom, right? But just tell people what is happening in the world and how we can then react and act and take advantage of the trends so they don’t take advantage of us. That’s right, that’s right. Yeah, with everything you guys have going on, I mean you’ve proven over and over again since you’ve been sharing for the past year now that we’ve been talking everything leading up to CBDC.

And I didn’t even put those connections together until you mentioned it, how they’re playing this whole system out so that they can control all of us on this entire earth. And it certainly leads to what you’ve called, what could possibly be the mark of the beast. Where everyone can’t buy or sell unless they belong to this system that’s going to control the entire earth. It’s absolutely amazing how you connect these dots.

Oh, thanks. I mean, I think it’s just God-empowered wisdom. I mean, it’s not me. But when God speaks and he gives us wisdom, and James tells us, you know, if we lack it, ask for it and he’ll give us more. We have to do that. Everybody watching this show needs to ask for more wisdom from our Father and he will give it to us because he’s a generous father. He’s a good, good father.

And we need that kind of wisdom and discernment and courage and boldness and creativity to navigate through this wild and wacky world that we’re living in right now. Yeah, yeah, it is crazy. There’s a lot going on for sure. A lot of exposure on, even on the church side. There’s been many big names that have been dropping here lately.

And so a lot of folks have been shaken up on that side. And we know the judgment starts in God’s house first. And so there’s a lot of things going on that are just making people realize, man, I need a great relationship with my Lord and Savior. And definitely need to stay close to him, especially through all of this. And we just hope that you guys reach out to Dr. Kirk Elliott and we know dot com forward slash gold. He’ll definitely help you out.

They’ll take you in the right direction away from the system that is basically trying to take over all of us. And we know that there’s a way through all of this and we just, we’re just glad that we met you and it’s been an amazing journey for sure. So thank you so much for this update, Dr. Kirk Elliott. We’ll talk to you again. Sounds good. We’ll see.

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