➡ Tanner Fitzgerald is starting a Bitcoin financing business, offering leverage to Bitcoin owners. Meanwhile, Rafi from the End Game Investor discusses the impact of Bitcoin on global finance, suggesting it helps fund the US government deficit and spread US inflation. He argues that buying Bitcoin supports the ‘deep state’ and the US treasury, while buying gold and silver removes money from this cycle. Rafi believes Bitcoin’s value will crash in the next financial crisis, unlike gold, which he sees as a more stable investment.
➡ The Federal Reserve’s balance sheet is shrinking at a faster rate due to the closure of bank loans under the bank term funding program. This is causing an increase in quantitative tightening, which could lead to a liquidity crunch. Meanwhile, banks are increasingly using stocks as collateral to borrow more dollars, tying the equity market with the repo market. This could result in all these markets falling simultaneously in the event of a liquidity crunch.

Tanner Fitzgerald is here to announce that we are launching a Bitcoin financing business. We will offer leverage to those who own Bitcoin. We are going to welcome Bitcoin into the financing family of the global financial markets and Tanner Fitzgerald is going to be your sponsor. Well, hello there, my friends. Rafi here from the end game investor with this week’s silver report. And there is once again, a lot to talk about, a lot of exciting stuff going on mostly in the political arena. What is the world going to look like if RFK is in charge of health and human services? What is the world going to look like if Matt Gaetz is attorney general? These are the questions that are exciting me, but I have to talk about metals and Bitcoin because I am now certain that this is a deep state, psy up, that Bitcoin is designed to take good, healthy, liberty, feelings and thoughts and rush them into the garbage and burn it.

It’s not me saying this, the deep state and the banksters are saying this outright in pure, clear language, that Bitcoin is used to fund the government deficit and to spread US inflation out into the world on unsuspecting third world countries in the same way that America has financed itself since 1971, abusing the reserve currency status of the dollar. Don’t take my word for it, just listen to Howard Lutnick, head of Cantor Fitzgerald at this Bitcoin conference saying it out loud. You know that mediocre generic sound you’ve been looking for? Well, listen to this.

So I care about the 300 million wallets that hold Tether because those 300 million wallets are financing the US treasuries debt, right? They’re buying every time someone buys Tether, Tether buys a treasury bill and we’re financing the US treasuries debt. So emerging market distribution of USDT is fundamental for backing our debt in our country, which helps us live in this beautiful way. That’s right, folks. Emerging market distribution of USD Tether is fundamental for backing our debt in our country, which helps us live in this beautiful way. Now try to follow this monetary, mobius strip from hell that is Bitcoin.

You see, Tether is backed by US treasuries, which back the US dollar, which is what you redeemed Tether for, which is used to buy Bitcoin, which is backed by Tether, which is backed by US treasuries, which backed the US dollar and so on. This is a spiral of monetary nothingness spinning in the air. And when you buy gold and silver, what you’re doing is you are taking that money and you’re taking it out of the merry-go-round. When you buy Bitcoin, you are just stimulating the price of treasuries and you are spreading US inflation all over the world and you are continuing the power for the deep state, which is why they do not care how high Bitcoin goes.

Believe me, they care about how high gold and silver go because that is the antithesis of their inflationary project that is about to end. They can let Bitcoin go higher and higher and higher because the higher it goes, the more money, the more dollars are stuffed into it as a receptacle for inflation. And the more treasuries Tether has to buy because the way you buy Bitcoin is you use Tether, the USDT BTC trading pair is the biggest trading pair in the crypto space by far. But when you buy physical gold, there is no possible way that you are funding the deep state.

This is just the truth. And I realize that people don’t want to accept it, but that’s what it is. By the way, people ask me, when am I going to turn around on Bitcoin? When will I admit that I was wrong? When will I admit the possibility that it actually is money or a viable gold derivative? My answer, I have a straight answer for that. And it’s simple. During the next financial crisis, monetary crisis, banking crisis, they’re all going to come together. When that is triggered, if Bitcoin can maintain stability in gold ounce terms, not in dollar terms, I don’t care about dollars.

If it can maintain stability in gold ounces, then I will admit that Bitcoin is a viable gold derivative and therefore not money itself, but a viable derivative of money which can be used in commerce. I don’t think that is going to happen. We’ll see what happens in the next financial crisis. During the last Bitcoin crunch, it went down from 37.5 ounces of gold to about 10. I think this next crash of Bitcoin in gold terms is going to be even worse than that. We will find out soon enough when bank reserves fall below $3 trillion, which should be in the next few weeks.

I know I don’t know how many weeks, but it will be shortly. And by the way, this video is sponsored by the Endgame Investor on Substack, link in the description below, where you can click on a free post about Howard Lutnick and all of the wonderfully flowery language that I use to describe this bankster angel. You don’t want to miss it. I’m a better writer than I am a broadcaster and I’m funnier too. And now what about the technicals for Bitcoin? Well, we might have a triple top and play. Let’s go to the slides.

Bitcoin has rocketed all the way back up to about 36 ounces of gold per Bitcoin. It is backed off again. Now it’s at 34.07. That’s the latest chart here. It looks like we have a potential triple top in play here. And though I’m not a technical trader, I do know that triple tops, if they hold, are devastating for the assets that print this pattern, even gold and silver themselves. You remember this triple top in gold from 2011 to 2012? Well, it was about $1,800 and that triple top held and started a bear market in precious metals for four years.

That went down 50% for gold, almost 50%. And it was a brutal bear market that actually did hold through and many people did not. But if you remember that bear market, it was vicious. But if we continue on to the gold market this week, we can see that in the past few weeks, actually since the end of October, when gold topped at about $2,800, the price has been hit pretty hard. We’re down to about $2,570 now, $2,573, whatever it is when you watch this. It is a substantial decline, but notice what is happening in open interest.

It has not declined much at all. It went down from about a high of $580,000 to $585,000 somewhere around the end of October to now about $542,000. It’s a little bit higher than this number. This is on a one-day delay. Open interest is not budging, which means that the banks are not covering their shorts at these prices could be that they open them at even lower prices than they are now, or they opened them a while ago. If open interest is not declining into this substantial price decline as it usually does, as it should, we see here, for example, that there was a local high at around $2,500, $2,450 or something in gold in July, and it went down to about $2,350, only about $100, $150 of the correction there, much less than we see now even by percentage.

An open interest fell from about $600,000, higher than it was at the recent peak here, to about $460,000 or so. That was a substantial decline. This time that is not happening. Somebody is stuck in their short positions and they cannot cover. Next slide, we see the 10-year minus 3-month yield curve spread, also the 10-year minus 2-year yield curve spread. We see that they go in tandem, and we are almost normalized on the blue line, which is the 10-year minus 3-month. We’re at 14 basis points negative, could be somewhere between 5 and 14 basis points.

It changes by the hour. We’re about to cross into normalization territory, and you can see on the gray strips here, the Keynesian style recessions that took place in 1991, in 2001, and 2008, and 2020, shortly after the yield curve is normalized on both of these spreads. Well, that is about to happen, especially considering the higher inflation, price inflation numbers. Once that does cross, we only have a few months until we get to the next financial crisis, because financial crises always coincide with the Keynesian style recession, and the more money that gets cleared out, and the higher the inflationary cycle goes, the more vicious these financial crises are, and it will be the most vicious that we have ever seen, because the credit bubble that is currently being blown up is the biggest that has ever been blown up in human history.

Meanwhile, the Fed did cut interest rates this week, or was it last week, whenever it was, I don’t quite remember, nor do I really care that much, but anyway, QT accelerates due to rate cut. This is the weekly movement of the Fed’s balance sheet. We can see here that it is down $27,191,000,000,000. Now, if you mouse over this, this is a picture of it, but if you go to the Fred website and you mouse over this weekly movement in the Fed’s balance sheet, you will see that for five weeks straight, the balance sheet has declined at an accelerating pace, right? Every week it declines by more dollars than the week before.

This is five straight weeks. This is the longest streak since they slowed down quantitative tightening in June. Why is QT accelerating? Because of the bank term funding program, which is being zeroed out, because the rate cuts mean that the rates that they took out, these banks took out the bank term funding program, which is the regional bank bailout, the rates that they got on that program are now higher than the Fed’s interest rate. So they have to close out these loans and return the money to the Fed, which takes it out of existence, which accelerates quantitative tightening.

You can see here the bank term funding program fell by about $30 billion last week, which is the biggest weekly drawdown ever for the bank term funding program. And this is what has accelerated quantitative tightening and brought the Fed’s balance sheet down by about $30 billion. You can see here, this is the what’s left of the bank term funding program, $26.4 billion left. That is $26.4 billion that I can clear out by next week and still continue to accelerate quantitative tightening into the next week or two. We can see here on a close-up what has actually been happening to the Fed’s balance sheet.

This is from the H-401 report. We can see that securities held out right, which includes Treasuries and mortgage-backed securities, the chief crap that’s on the Fed’s balance sheet that actually went up by $97 million. But what is causing the shrinkage in the balance sheet? That is loans, which includes the bank term funding program, $28 billion, $37 million less than last week, bringing the Fed’s balance sheet down by $27.19 billion. As this is happening, 10-year yields are about to break through their downtrend line, which is being touched right now. If we get to 4.5, 4.6, the 10-year yield will break through.

Why do I think it will break through? And long-term bond yields are headed higher because 30-year bond yields have already broken through, and now the trend line is appearing or appears to be support rather than resistance. We’re at 4.6% here on the far-out long-term curve. Also suggesting an imminent liquidity crunch is the U.S. dollar at major resistance, right? Breakthrough suggests liquidity crunch is imminent. It hasn’t broken through yet, but if we break through these levels decisively at about 107, if we get to 108, 109, we can assume that a liquidity crunch is just ahead because that means that dollar demand is rising and people need dollars.

International players need dollars to pay their dollar-denominated debt, which suggests a dollar shortage is gaining traction. There is one more key thing that I wanted to go over today, and it has to do with equity-sponsored or equity-backed repo. This is from Bloomberg, and I’ll try to explain it as I read it. It’s not that complicated, though it does sound like a bunch of gibberish. The title, J.P. Morgan sees surge in demand for equity-backed repos persisting. What is an equity-backed repo? Well, a repo is when a bank hands another bank a bunch of treasuries and gets cash in return and then can use that cash to sustain a trade, to borrow, to lend it, to do whatever it wants with it.

This happens to the tune of about $2.2 trillion a night now. J.P. Morgan is now seeing equity-backed repos as opposed to treasury-backed repos, which is when a bank gives another bank a bunch of stocks and then they get cash in return. Why is this happening? Because the stock market is at all-time highs, the S&P, and that increases the demand for equity-backed repos because equities are at highs, so they get more repo for that. For a sentence, the amount of equity collateral that dealers need to finance the repo market has swelled, driven by the benchmark S&P 500 index, rallying to new highs and robust investor demand for leverage, equity exposure, said strategist Theresa Ho, Pankaj Vohra, and Bram Kaplan.

And a note on Wednesday, I assume that Bram is Jewish. Sounds kind of Jewish. Not so sure about Ho and Vohra, though. What this means is that the equity market is now tied in with the repo market, that banks are looking for more collateral to borrow more dollars, and dollars are getting scarcer. All these markets are being tied together in one giant knot, and once there is a liquidity crunch, it means that all of these markets, since they are tied together and welded to each other, will all fall simultaneously, and that includes Bitcoin as well.

Even gold and silver will fall as well, but they will fall a lot less than all the others, which is why we always see a peak in purchasing power and gold and silver when there is a financial crisis, which is then reversed by another printing round, which should bring the endgame mercifully once and for all. This is Rafi, the endgame investor. If you enjoyed this video, then check out the corresponding post on Substack in the link in the description below. You can read the whole thing for free. I do occasionally put out a free article on Substack, so you don’t have to become a paid subscriber if you want to hear what I write about monetary philosophy, but please do consider becoming a paid subscriber and supporting this channel thusly.

Or you can become my Patreon on Patreon for as little as three dollars a month to learn about the religious angle on monetary topics from the Bible. Check it out there. If you want to know what kind of economic system the Bible stands for, there are about three years worth of classes on various monetary and economic governmental topics. It is replete with ancient knowledge on economics, money, and government. This is Rafi, the endgame investor, with this week’s silver report. I’ll see you guys next week. [tr:trw].

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