➡ Ralph from The Endgame Investor discusses the current state of the global banking system, highlighting concerns about the Federal Reserve’s understanding of liquidity and the banking system’s structure. He also talks about the Treasury’s lack of funds raised since the debt ceiling was raised, predicting a potential liquidity crunch. Ralph also discusses the rising price of platinum and the potential for hyperinflation in Japan. Lastly, he introduces Silver 47, a company developing properties in Alaska, Nevada, and New Mexico, and its correlation with the silver price.
➡ The banking system’s reserves are increasing, which could lead to issues. Platinum, also known as “little silver,” is seeing a rise in demand, possibly due to political tensions with Russia, a major producer. The price of platinum has been rising and could reach $5,000, indicating a significant market shift. Meanwhile, Japan is experiencing food inflation, with rice prices doubling, which could lead to economic instability.

2.7 trillion is not enough! That’s not enough! That’s just not enough! All right? It never is, Val. It’s too low! You’re too low! You’re too low, Val! You’re too low! 3.9 trillion is not enough! Well, hello there, my friends. Ralph here from The Endgame Investor, and I bet you can’t guess where I am. I’ll give you one hint. It’s in the mountains. Today, we’re going to cover platinum because something very interesting is going on in platinum. And the fact that certain officials in the Federal Reserve don’t know basic arithmetic or don’t know basics on what is going on in the aorta of the banking system structure.

That is where all of the liquidity originates and flows through every single night. It is the biggest artery in the entire global banking system, and some officials on the Fed are unaware of what its purpose is or what it needs to continue to supply that liquidity to the rest of the system. Meanwhile, the Treasury has raised zero dollars net since the debt ceiling was raised on July 3rd or 4th, or whenever it was. The Treasury still has not raised any money, and the Treasury general account, the checking account at the Fed is still descending.

It is still just below 300 billion dollars. It will be raised to about 800 billion by September, says certain officials at Deutsche Bank. I believe, so that’s a half a trillion dollars to be sucked out of the banking system by September. I don’t think the banking system can withstand that amount of drainage without a liquidity crunch. But in the meantime, liquidity continues in the system because the Treasury has not raised any money yet. They were not in an emergency situation as they were during the last debt ceiling raise when the Treasury’s balance was something like 50 billion or less.

Now it is still just around 300 billion. That is still plenty of liquidity to spend before they have to raise any more money in an emergency. What I did this week was I looked at the long-term price action in platinum, and we have a beautiful trend line going back to the beginning of the 20th century that we have tagged the trend line on recently. And now we are on our way higher. A big triangle breakout has happened. It is undeniable now. And what is a decent target for the end game for platinum? Well, judging by the price action since 1900, it’s about $5,000 at which point we should see something along the lines of a 15 to 1 silver ratio.

And I will show you how these 15 to 1 silver to gold ratio, gold to silver ratios line up with price action in platinum going back 125 years. And finally, we’re going to cover Japan, which is edging ever closer to hyperinflation. Food prices in Japan are out of control, even though they seem to have the larger price indexes under control, food prices are not under control at all. And what happens primarily in hyperinflation is food prices go out of control because who cares about the price of anything else when you can’t afford food? Let’s begin with the new sponsor for the silver report, which is silver 47 symbol AAGAF in the US, civil AGA in Canada.

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And as you can see here going back here to date from 2025, January, 2025, the share price in the candles of AAGAF silver 47 pretty much goes in line with the silver price in the line here. They match up or they have been matching up year to date pretty well, pretty strongly. And you can see as silver rises, so does the share price of silver 47, though the business model of this company will not come to complete fruition for several years. You can see that holding it in the meantime, it does follow silver pretty well.

And with that, let’s move on to the slides. We have here what I call a WTF on reserves. I’ve been stressing for a while that the amount of reserves in the banking system must be more than the amount of repos that trade hands every night. I call this the aorta of the banking system. There is no other nightly exchange that shifts nearly $3 trillion between banks every night. This is it. This is the pipe which feeds all other pipes, ultimately, monetarily speaking. And we have a basic arithmetic error, which suggests to me that even the Federal Reserve Board does not know how the banking system works.

Either that or they send out trial balloons of idiots who don’t understand anything to speak to the public to see if the public reacts to these inane statements that make no arithmetic sense. We have here an article from Bloomberg titled Feds Waller. I think his name is Christopher Waller. Backs balance sheet runoff shift in composition. So we have here. But here is the kicker in the final paragraph, bank reserves, which Waller said are currently abundant or above the ample level that the Feds strives for. Should ideally be around $2.7 trillion. Now, what is wrong with that number? I’ll tell you what’s wrong with that number right now.

$2.7 trillion is not enough. It’s too low. Why is it too low? Well, this is the volume of repos of the secure overnight financing volume. That’s cash that is traded for Treasuries and vice versa every single night. It is fed and funded by bank reserves. The $2.7 trillion line I put in red over here and you can see that we have been over that line consistently. Since June 18th and we have not gone below it. Same thing yesterday. And today we are still above $2.7 trillion. If bank reserves go down to $2.7 trillion, we are currently above $2.7 trillion in nightly repos, then there’s going to be a repocalypse, a crash of some sort.

So all our $2.7 trillion is not enough. Now, what are these Fed officials thinking when they say $2.7 trillion reserves is what I think is abundant or ample, whatever the health term they use. I don’t understand why they say these things if they actually believe them or if they’re being paid to say stupid things to the public, you have as good a guess as me. But anyway, why haven’t we seen a repo crunch yet or a crunch of any sort? And that is because since the debt ceiling, the Treasury has not actually raised any money.

Yes, the national debt has gone up something like $400, $450 billion, but that is strictly an accounting gimmick. Now, they have accumulated all of that debt before the debt ceiling raised, but they’ve used extraordinary accounting measures to hide it. And now they are no longer lying about that debt accumulation. And so they just put it on the national debt, $450 billion. It doesn’t mean they raised that amount of money since the debt ceiling raised, but it does mean that that debt has already been accumulated. Once they start raising money net, then you’re going to start seeing trouble in the repo market.

You can see here we are at $296 billion and there has been no uptick in this amount of money since the debt ceiling was raised around over here on July 2nd. And because of this, because the Treasury has not raised any money from bank reserves yet, we can see bank reserves edging higher since the debt ceiling was raised and that was around here at this little turn over here. Once this line goes below $3 trillion, then we’re going to be in some serious trouble. We’re now at $3.4 trillion and it will stay there as long as the Treasury refrains from raising any money with Treasury bills.

Why does this happen? Why is it that if the Treasury does not raise money, bank reserves stay where they are? Well, you can see in these numbers, this is from the latest balance sheet numbers from the Fed H41 report of the balance sheet itself. You can see when total factors absorbing reserves go down, total bank reserves, reserve balances, go up by about the same amount, the difference being the QT amount. So if total factors absorbing reserves go down $67 billion and reserves go up $68 billion, the difference is the quantitative tightening amount or the amount of security that the Fed sold off in the last week.

Why do the total factors go down? Primarily, these two factors over here in the red rectangles. The first is reverse repurchase agreements, others. That’s the reverse repos I talk about often. They’re down $25 billion, $989 million. Add to that here, the US Treasury general account. This is the Treasury’s bank account of the Fed, down $23 billion, $642 million. That means they put $23 billion, $642 million into the banking system, into the bank reserves. And it is down here and it is up here in reserves. So as long as these two numbers keep falling, bank reserves will rise.

This number will turn to a positive, right? Once the Treasury starts raising money, once that happens, we’re going to see some problems in the aorta of the banking system. Platinum. Now I want to get into the meat of this silver report. We’re going to talk about platinum, which is little silver. Platinum is seeing heavy deliveries so far this month. 3,140 contracts worth available for sale. That is the amount of platinum that is in the COMEX right now. You can see here that we have had already 3,195 contract deliveries. That is already more contracts than are available on the COMEX itself.

And we see here that coming up in August, we have another 1,095 contracts that are still open and August is not an active platinum contract. So these deliveries will likely be made. The platinum is not being sucked out of the COMEX yet. We’re just seeing swaps of warrants for these contracts, but we’ll see what happens when we actually get into a platinum shortage, which is probably why the price is rising so much. Probably has something to do with Russia because Russia produces about 20% of the world’s platinum and it’s not good for the platinum supply for the world to be at war with Russia.

And ever since their fallout between Putin and Trump, it looks like platinum has been rising perhaps for that reason. The triangle price action going back to 2008, there is a definite absolute breakout of this triangle going back to 2008. It looks pretty elegant here. We touched it in 2011. We touched it in 2020. And now we have broken out decisively. I don’t think we’re going to break back below into this triangle anytime soon. But here’s the really exciting chart that I found on gold charts are us. You can see here, this is the platinum price action going back to 1880.

Actually in 1880, platinum was $1 an ounce. Now it is 1,500, 1,450, something like that. We can see a very elegant trend line going back to 1890, about 135 years. I said 125 years and I was wrong, it’s 135 years. But here’s the real interesting part. You can see here whenever platinum reaches an apex going or threatening the upper side of these trend lines, you can see here that these are when silver to gold or gold to silver reaches around 15 to one or close to it. This happened in 1919 after the Great War.

Some people call it World War I. After the Great War, the gold to silver issue was at 15 to one for the first time since 1873. And here again in 1980, as platinum hit this high on the upper side of this trading range in 1980, that’s also when gold to silver was about 15 to one. In 2008, it didn’t exactly hit 15 to one, but it got a lot closer than it is now. And if we look over here to where platinum would be if it hit the upper side of this trend line or the top trend line of this trading range, it would be near $5,000.

So my assumption or my theory is that when platinum hits $5,000, that’s another indication that we are in the end game. Now I want to look at Japan for a second. This is Japan food inflation and hyperinflation. The prices of nothing else matters as much as food because if food prices are spiraling higher and higher and higher, even if real estate prices are going down, it doesn’t matter because what you need is food to survive. You don’t necessarily need real estate. So here we have the food inflation stats for Japan.

These came out I think two or three days ago. We were at 7.2% and this is a serious uptake from last month. We can read in the paragraph here. Food price in Japan rose 7.2% year on year in June 2025, accelerating from a 6.5% increase in the previous two months and pointing to the steepest pace since March. The key here is the end of this paragraph. It says here as for stable foods, rice prices doubled surging 100.2% year on year, holding near the fastest pace in over 50 years and highlighting the challenges facing government efforts to control food costs.

In light of this, we have Japanese yields. This is the 10 year bond yield where we have a ceiling of around 1.56 has been hit one, two, three, four, five times. It’s going to break through. When it does, we got to get to 2%. We’re going to see a major breakout to 1980s, 1970s levels. We’re going to get there and when we do the Japanese bank or Bank of Japan’s balance sheet is going to get destroyed and so is the value of the yen. I hope you enjoyed this week’s silver report brought to you by silver 47 symbol AAGAF in the US.

Symbol AGA in Canada. Check them out if you have a silver exploration portfolio that you want to expand on and you can always take the silver that you do have and put it in a dirty man safe. Use the code endgame10 at checkout. Link in the description below and you can get your silver stacks with Miles Franklin. Call the number in the description below and mention the endgame investor. This is Raffiou, the endgame investor and I’ll see you guys next week. Not from the mountains. All of these push-ups. Adiel, look at every tool.

It’s a twister, it’s a twister. [tr:trw].

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