➡ Big banks like JP Morgan, Goldman Sachs, and Citibank are heavily involved in risky betting activities, such as predicting interest rates, weather, and other unpredictable factors. These bets often exceed the banks’ assets and even the GDP of many countries. If these bets fail, the losses could be massive and global, potentially leading to a financial crisis. The banks assume that in such a situation, the government or other institutions would bail them out, but this is not guaranteed, especially as governments themselves are struggling with their own financial obligations.

➡ The text discusses the potential collapse of the financial system due to reckless betting and the manipulation of silver prices. It suggests that the system is like a casino where the workers (the real economy) are not being paid, leading to a potential shutdown. It also highlights the manipulation of silver prices by banks and institutions to maintain the illusion of a stable system. However, the text suggests that this manipulation is unsustainable and will eventually lead to a surge in silver prices as physical silver becomes scarce.

➡ Large industrial consumers are withdrawing silver from Comex warehouses due to a lack of trust in the system. This is causing a shortage and increasing prices. The paper market, which is much larger than the physical market, is becoming unsustainable as more investors demand physical silver. This could lead to a collapse of the credit chains that have been built since 1913, forcing a return to physical money transactions, primarily in gold, silver, and copper.

➡ The text discusses the impact of credit on large-scale operations like Walmart and Monsanto, suggesting that without credit, these operations would not be feasible. It also talks about the deficit in the silver market, with demand outpacing supply, and the potential for a significant increase in silver prices. The text further suggests that large corporations and bureaucracies could disappear if credit vanishes, leading to a shift towards smaller, local operations. Lastly, it discusses the declining confidence in the US dollar and the potential for silver to serve as a hedge against this instability.

➡ The text suggests that in the future, we may see a resurgence of smaller, specialized car companies in America, and a return to domestic manufacturing of items like clothing due to increased import costs. It also predicts a decrease in government regulation and a shift away from the dollar, with central banks buying up gold as a more stable asset. The text also suggests that silver prices are on the rise, and that this is not just a temporary trend but a significant shift in the market. Finally, it argues that economies can thrive without large government subsidies, citing the post-war recoveries of Germany, Japan, and South Korea as examples.

➡ The text compares our current financial system to a harmful parasite, suggesting it gives a false sense of strength while slowly draining us. It proposes returning to the gold standard, like in the 1890s, for a healthier economy despite short-term discomfort. The text also predicts a significant increase in the value of silver due to its industrial necessity and as a safe monetary option. It warns that when the next financial crisis hits, people will rush to buy physical silver, which will then be scarce and expensive.

They’ve bet a quadrillion dollars. They. There is no way they could. They could loot every single retirement account and everything else, and they’re not even close to paying it off. But they will loot your stuff. I want, I want the viewer to be completely aware, like, when this blows, they will loot whatever they can to pay off whatever they can for they’re not just gambling with your future. You’re watching everything right now. Or over. $1,000,000,000 in toxic financial contracts are ticking away beneath the global economy, invisible to the public, unregulated by authorities, and primed to detonate.

This isn’t fear mongering, it’s math. The same Wall street giants that wrecked the system in 2008 are now exposed to derivative positions so massive they eclipse the combined GDP of every country on Earth. And when this artificial empire collapses under its own weight, they’ll come for what’s left of your wealth, your savings, your pension, your security. But here’s the twist they don’t want you to see. Silver is the only form of money they can’t print, can’t inflate, and can’t erase with a keystroke. While governments dilute currencies and banks Juggle digital, digital IOUs, physical silver sits untouched, quietly becoming the escape hatch from a financial inferno no one’s prepared for.

Because when the house of cards falls, it won’t be gold that leads the charge. It’ll be the most manipulated, most suppressed and most explosive metal in the system. You’re about to see why the price of silver won’t just rise, it will detonate. And by the time the headlines scream crisis, it may already be too late to act. Sure. So the. If you look at. And this is just going to be a definitional exercise for the viewers who may not be, you know, sophisticated financial experts, but want to know what people are talking about because many of your other guests have talked about the dangers of the OTC derivatives market.

So if you look extras pyramid, and maybe you want to put an overlay over this conversation real quick on post. If you look at extras pyramid, it’s this inverted, it’s this upside down pyramid where at the very bottom of the pyramid is gold and at the very top of the pyramid are unfunded government liabilities and OTC derivatives. In between those are things like paper money, paper cash. I don’t call it money anymore. I call gold and silver money. Paper cash, treasury bonds, stocks, all that kind of stuff is in the middle. And then at the very top are unfunded government liabilities and OTC derivatives.

So unfunded government liabilities we have all heard of, that’s Medicare and Social Security. And they are, they range from, they range from 20 trillion to 200 trillion depending on how you calculate it. But OTC derivatives estimates go from 730 trillion to $1,000,000,000,000 and possibly even higher to depending on how you calculate it. And most people spend, we spend our time talking about the $3 trillion money supply, which is the paper dollars printed, and then M2, which is $22 trillion and the $37 trillion treasury debt. But there’s this looming one quadrillion dollar shadow of over the counter derivatives standing on top of us and another 20 to 200 trillion unfunded government liabilities.

So why aren’t we talking about these, complaining about the gorilla in the corner of the room when there’s Godzilla standing right outside our house? Right. There’s a, there’s a, there should be a, a proportion of time paid to something. That seems to be the greater danger. First let me explain what OTC derivatives are and then I can explain why they are not. They are certainly a danger to the system, but they’re unlikely to be the catalyst of the endgame itself. So OTC derivatives are to, to understand OTC derivatives as the system, you must understand the system must grow as an, at an exponential rate.

Sorry, the debt must grow at an exponential rate is a simple law of how the dollar Ponzi operates. Right? We’ve covered this before, and many of your other guests have covered this before there. It simply must grow at an exponential rate. The debt and the money supply or, you know, the Ponzi collapses and we’re suddenly back on a gold standard and everyone’s broke. So in order to entice further debt growth, riskier and riskier bets must be placed on margin. That’s another function of it. You saw this in Weimar Germany, you saw this in 1928 in America.

You’ve seen this in every other hyperinflationary event. People talked about the hyperinflation of France in the 1790s, talked about how everyone quit working in the field and they all went to go be stock jobbers at the local. They would go find their local market exchange and people who had no business being in a stock market would go and put their, put their family farm on whatever, whatever stocks they were trying to invest in. The system does not care at all how the debt is generated or what the debt is applied to. If we want to apply, if we want to generate this debt and then apply it to, you know, transgender surgeries for children.

The system does not care. If we want to. If we want to apply the debt to feeding the hungry, the system does not care. It only cares that the debt grows at an exponential rate. So that’s just a definition of what’s happening under the hood. So otc, the derivatives market isn’t just a financial tool. It’s a labyrinth of leverage that makes the global economy look like a ticking time bomb. As of mid 2024, the notional value of over the counter derivatives has reached an incomprehensible $729.8 trillion. And some analysts believe the real figure, including untracked contracts and shadow positions, could already be pushing past the $1 quadrillion mark.

This isn’t theoretical. It’s confirmed by the very institutions trying to down. The bank for International Settlements tracks it, the Federal Reserve monitors it, but no one truly controls it. That’s because most of these derivatives exist in the shadows, outside public markets, governed only by private agreements between counterparties who assume infinite liquidity will always be available. And who’s holding the bag? It’s not small investors or local credit unions. The vast majority of this exposure, 88.6% in the US alone is, is concentrated in just four JP Morgan, Goldman Sachs, Citibank, and Bank of America. JP Morgan alone has over $54 trillion in derivatives exposure.

Goldman sits at $51 trillion and Citi at $46 trillion. These figures dwarf national economies. This isn’t banking. It’s financial arson disguised as strategy. Now imagine what happens when interest rates swing violently and asset prices tumble, or one major counterparty defaults. These contracts are so interconnected that a single failure can set off a cascade of margin calls, forcing banks to liquidate assets and freeze credit lines globally. And in this scenario, there’s no buyer of last resort, just systemic panic. The scary truth? These institutions don’t need to fail to trigger a crisis. They only need to wobble. And when they do, the fallout won’t be limited to shareholders.

It’ll be pension funds, retirement accounts, and public savings that get sucked into the vacuum left behind. Because when the derivatives machine breaks, everything it props up breaks with it. Derivatives over the counter. Derivatives are financial contracts, which is a fancy word for bets between two financial parties. And these are large financial institutions. JPMorgan Chase, Goldman Sachs, Citigroup, etc. And these contracts do not run through a clearinghouse. So there’s no, there’s no centralized clearinghouse where all this stuff is coming in. So we don’t know how big the market is. That’s why it ranges from 730 trillion to $1,000,000,000,000.

We don’t know because it’s all these different firms making side bets with each other. And the bets are bespoke and on all manner of subjects. To just to give you a quick example of how this works, JP Morgan will call bank of America and they’ I don’t think Phil can afford his mortgage. And bank of America will say, no, no, no, Phil could definitely afford his mortgage. I could see it in his face. He’s an honest man. He’ll pay. He’ll make his mortgage. And bank of. And JP Morgan says, no, no, no, he’s not going to pay it.

In fact, I’ll bet $30 million that Phil is not going to pay his mortgage. And bank of America says, you are on, sir. Now, bank of America does not own my mortgage and neither does J.P. morgan. Neither one of them owns my mortgage. And the astute among your viewers will notice I do not live in a $30 million house, right? So my, my house. And this event has no relation to their financial health other than they, they see a bet that they want to make and they will apply this. Now, some things they actually do, you know, sometimes they’re hedging.

They say, we have a bunch of corn coming in, so we’re going to hedge against corn. So just in case the corn doesn’t come in, we’ll get some money, right? But that is, that is a small, small fraction of where the $1,000,000,000. I have to say this number again so you can just, you know, the size of it. They’re making bets on these things far, far. Stripping the underlying value of the asset. And they’ll bet on interest rates going up and down. They’ll bet $50 billion on interest rates going up or interest rates going down. They’ll bet on shipping costs.

Oh, well, shipping lanes open. Or the Houthi Pirates. Okay, I’ll bet you, I’ll bet you $50 billion that the Houthi Pirates sink a boat next week. Well, they’ll bet on the weather, right? They’ll say, you know, we’re going to have an unusually hot summer. So I’m going to place a bet on that. They will bet they are the most degenerate sports gamblers you’ve ever could possibly imagine. And all of these bets, all of them done again, are taken on margin. So JP Morgan’s goes to Goldman Sachs and says, I bet you $30 million that Phil’s not going to pay his house.

By the. By the way, can you, can you spot me 30 million dol. And bank of America says, absolutely, sir, we sure can. Because to a bank, a loan is an asset. So they take that loan from the other bank and they put it as an asset on their side of the balance sheet. So when you see a firm, often these firms will advertise, you know, we have $17 trillion under management. And you wonder, what on earth are they managing? A lot of it’s this bullshit. It’s just a sports bet on the weather, you know, a trillion dollar sports bet on the weather.

And so this sounds extremely dangerous. I mean, just, just, you know, any normal person will look at that and says, that is the most terrifying thing I have ever heard in my life. These banks have taken. And this is, you know, this is all ostensibly funded by your pensions and all these things. I mean, it’s marginally funded by your pensions because when the bank collapses, they’re going to, they’re going to seize your pension and use that as you ran into that, didn’t you? Done again with your money market. The big banks are the beating heart of the derivatives monster.

And that heart is rotting from the inside. J.P. morgan, Goldman Sachs and Citibank aren’t just exposed to derivatives, they’re completely engulfed by them. Their derivative positions don’t just exceed their own assets. They exceed the GDP of most developed nations. These institutions have created a spider web of obligations where each strand is tied to interest rates, foreign currencies, commodities and equities. And every bet assumes the world keeps turning without interruption. But what if it doesn’t? Behind the scenes, these firms operate on a dangerous assumption that if things go wrong, the Federal Reserve, the Treasury, or even your local government will step in to save them.

And historically, they’ve been right. In 2008, the global economy nearly imploded because of reckless banking behavior. And rather than reform the system, we doubled down. Trillions were printed, interest rates were slashed to zero. And the same banks that created the crisis became bigger, bolder and more untouchable than ever. Fast forward to now. Debt is higher, leverage is greater, and this time the safety net isn’t guaranteed. Governments are drowning in obligations of their own. Central banks are trapped between surging inflation and stagnating growth. The margin for error has vanished. And here’s the terrifying part. When a bank like JP Morgan starts hemorrhaging from a bad derivatives position, the losses will be instant, global and irreversible.

This is where the Real danger lies. The public doesn’t realize that the next financial shock won’t begin with the stock market crash. It’ll start in the derivatives market. A mispriced interest rate swap, a collapsed commodity hedge, a chain reaction of counterparty failures. And in the blink of an eye, assets will be frozen, credit will evaporate, and the institutions holding your life savings will lock the doors. Not because they failed, but because the system they built was never stable to begin with. They’re, they’ve bet, they’ve bet a quadrillion dollars. They, there is no way they, they could, they could loot every single retirement account and everything else and they’re not even close to paying it off.

But they will loot your stuff. I want, I want the viewer to be completely aware like when, when this blows, they will loot whatever they can to pay off whatever they can for the stupid bets they made. So should, should, the question is, should we not focus on this area rather than M2 or T bills, right? I mean most of your viewers and myself, we typically talk about much lower down, oh, the Fed’s printing too much or you know, the, the government’s borrowing too much. That’s, you know, 37 trillion is nothing compared to a quadrillion. So my, my, my position is it could be a catalyst, but it’s much more likely to come from below on the pyramid.

And to explain this, I’m going to use a casino analogy. So if you imagine a casino that offers a, infinite credit to anyone who walks in the door and then all these gamblers come in and they say, you know, some of them, they start gambling and some of these guys might be normal working class guys, they get a bit in the hole, Maybe they get 30, 40, $50,000 in the hole and they don’t want to go home to their wife and say they’ve just lost 30, 40, 50. So they go back to the, they go back to the casino and they say, hey, can you extend me more credit? Absolutely.

So they go back, now they’re 100,000 in the hole. So they just go back and they, you know, they, they, they borrow more money. Can I get $200,000 credit? Yes, absolutely. No problem. Can I get a million dollar credit? This is a guy who cannot possibly pay this off. But the casino is offering infinite credit. So what’s this guy going to do? Dunigan, he’s never going to leave the casino until he’s in the black. He will just keep, will keep gambling and gambling and gambling until he can get his winnings. Back so he can go home and, and tell his wife that everything’s okay.

Right. Or he doesn’t have to tell his wife what happened in this casino. Now, what about the winners? So you think, well, the winners are certainly going to cash in. Well, if I’ve won $100,000, I could win 200,000, I could win 400,000. And if I get in the hole, let’s say I make a $400,000 bet and I lose, well, I’ll just borrow more and get back, get back on that pony. Right. Why give up? Why quit now? So the, the gamblers, the degenerate gamblers will never leave this casino. And even, you know, in to, to, to add another wrinkle, the winners like JP Morgan probably knows they can’t actually cash in any of JP Morgan was to call in their, their bets.

You know, let’s say they’d want, they were way up, they would crash the entire banking system. So they know they’re not going to call these bets in and they’re just going to keep making more and more bets. Because to JP Morgan, having those loans on the asset side of their balance sheet is what’s really important. The win. It’s the bet itself is, it’s marginally important to the, to the man making the bet. So to the agent making the bet, he of course wants to make winning bets, right? No, no financial manager wants to make losing bets over and over and over again.

But to the system as a whole, it doesn’. Care. The system as a whole. When the system begins to unravel, they won’t ask for your permission. They’ll just take what they need. This is the ugly truth behind bail ins, a quiet but deadly mechanism already written into law in many parts of the world. Unlike a bailout, where governments print money to save the banks, a bail in turns to you, the depositor, the pensioner, the ordinary saver. In a crisis, your money becomes their buffer. Most people don’t realize this isn’t a conspiracy. It’s financial policy. After 2008, regulators realized that saving banks with taxpayer money was politically toxic.

So they rewrote the rules today under Dodd Frank in the US and similar frameworks globally, banks can legally convert your deposits into equity to recapitalize themselves. That means if a major derivatives loss threatens their solvency, your savings could be seized overnight with a polite notice and no recourse. And here’s where it gets even more disturbing. Pension funds, retirement accounts and money market assets are now deeply entangled in the very derivative products that are poised to implode. Trillions in pension liabilities have been hedged using swaps and options tied to interest rates. Products that are incredibly sensitive to volatility.

The moment one of these hedges fails or the counterparty on the other side disappears, those pension funds could find themselves insolvent. The same banks that pushed the these complex instruments are the ones who sold them to public institutions, promising stability while burying risk deep beneath layers of legalese. But when the house of cards begins to collapse, they will scramble to plug the hole using whatever funds are easiest to access. And that means yours. If you think that can’t happen, look no further than Cyprus in 2013, overnight depositors lost up to 60% of their savings. Similar plans exist across Europe, Canada and the us.

They’re just buried in footnotes. No one reads. But in a derivatives induced panic, you won’t get a warning. You’ll wake up to find your account restructured, your pension frozen and your wealth quietly absorbed into the black hole created by someone else’s reckless bets. Merely needs those bets to be generated so they can be assets on the balance sheet of the banks. And so the party, if you to go back to the casino analogy, these, the general gamblers will never ever leave. But the, the waitress, the cocktail wait and the car dealer and the guy who vacuums the floors, they want to be paid and they don’t want to be paid in casino chips.

So they say you need to pay us. And the casino is in this ridiculous analogy is not generating any actual money because it’s not making the losers pay out. So it has nothing to pay the workers. So the workers eventually just walk out. They just say, well, we quit, you’re not paying us. And somebody cuts the power to the casino. And then all the gamblers, winners and losers alike, are sitting there in the dark and they all kind of awkwardly look at each other and they’re in their worthless chips on the table and they just stand up and shuffle out of the casino.

So the, the party does not end when the, the, the gamblers themselves will not end the party, the party will be ended lower down, which is lower down on extras Pyramid. This is the money supply or M2 or the treasury debt collapse, something like that. The 1 quadrillion. Oh, I said, yeah, I said the, the 1 quadrillion OTC market only exists to generate debt and because they are unconstrained by credit limitations, there is no ceiling. This is the top of extras Pyramid, there is no ceiling above that. So they are unconstrained by credit limitations. This could get to 100,000,000,000, no problem.

Now it probably won’t. I think the system will collapse before then. But there’s nothing stopping OTC derivatives from just going off into infinity. And when the end game hits, these things will vaporize. Like I said, when the power gets cut off at the casino, those chips are instantly worthless. The same thing happens in. This is what happened in the Big Short, where suddenly, like Lehman Brothers, which looked like a perfectly healthy bank one day, the next day is, you know, you know, you know, its balance sheet gets fried and it has to file for bankruptcy. And you know, the people say, you know, when people are investing, they, they drag the CEO to con in front of Congress and they say, why did you make all the stupid loans? And the guy says, oh, geez, you know, I’m sorry, I thought, I thought the guy could pay me back when I loaned him a quadrillion do.

But these banks, these banks are all massively, massively underwater with the OCC derivatives. And this is, this is purely an artifact of a fraudulent monetary system and it will not exist on a gold standard when, when people be more prudent with their money. So this is, this is just a, this is really just an academic, like, look into the insanity of what inflation does to markets. It’s, it’s not real. Like, it’s not a real, it’s not, there’s no, there’s nothing underneath these bets. But as all this chaos brews beneath the surface, there’s one market that’s been deliberately distorted to keep the illusion silver.

For decades, bullion banks and institutional traders have weaponized the paper markets to suppress silver prices through a relentless barrage of futures contracts. They don’t want silver breaking out, not because it’s volatile, but because it’s a signal, a signal that the fiat system is breaking down. This is why every time silver starts to rally, especially during New York trading hours, you’ll see the same pattern. Massive dumps of paper contracts designed to crush momentum and trigger stop losses. These aren’t real sales of physical silver. They’re synthetic trades in the COMEX futures market, executed by banks that never intend to deliver a single ounce.

They create artificial selling pressure with the stroke of a keyboard, driving down the price in a market where physical supply is already strained. Consider this. Right now, swap dealers are short over 42,000 silver futures contracts, equivalent to 211 million ounces of silver. That’s more than 2/3 of the COMEX’s entire registered inventory. This manipulation isn’t theory. It’s been proven in court. JP Morgan paid him 920 million in fines for spoofing the precious metals markets. And two of their former traders are now serving prison time. But even with all this manipulation, the cracks are starting to show. The gold to silver ratio has ballooned to over 100 bonds, one an extreme level that’s historically marked major reversals in silver’s favor.

It tells us one thing. Clearly silver is dirt cheap relative to gold. And that kind of imbalance doesn’t last forever. The suppression game only works as long as there’s enough silver to back the illusion. But when that physical silver starts drying up, and it already is, the paper games collapse. And the price isn’t just free to rise, it’s forced to. Because once trust in the paper price evaporates, investors turn to the real thing. And when that rush begins, there simply won’t be enough metal to go around. So I’m just a sunshine Pollyanna, I guess, is what people are going to call me on the other side of this one.

So the dollar in game has something of an event horizon. We can see it, we can see it coming. You can almost roughly calculate it. It’s just like I said before, it’s the, the money supply heading towards verticality. When it heads towards verticality, when it reaches verticality and the money, then they’re printing, the Fed is printing $5 trillion a week and then $5 trillion a day. That’s not going to last very long. Right. Eventually there’s just going to be, just like Venezuela, there’s going to be, you know, money littering the streets and nobody bothering to bend over and pick it up.

So we can, we can roughly calculate timing. Now this is in a pretty rough range. People like myself, Rafi, I think market sniper, maybe Bill Holter are leaning towards something pretty imminent. And then you have others like Brent Johnson or George Gammon I think are saying, you know, five, 10 years. And then you have other people, you know, maybe saying, you know, much longer. I, I really lean towards something, something happened fairly, fairly soon. But this is all, this is all rough calculate timing. If anyone, if, if there’s anyone who could correctly predict a crash, they could generate wealth that would make Elon Musk, you know, hang his head in shame.

Because to be able to predict a crash is like the, that’s like the, the golden, that’s the golden goose that would lay forever eggs, you know, but, but we can roughly predict it. You can say things are, you can see the, you can see the, the wheels are getting wobbly on the bus. We don’t know when the final thing is going to knock the wheel off, but we can say, okay, the wheel is definitely gyrating on that bus and that’s dangerous. We cannot see beyond the event horizon. So it’s just like the event horizon, no black hole.

You can see the event horizon, but you can’t see beyond it because we don’t, we can’t see into the future and we don’t know exactly what’s going to happen. And so most people are extrapolating from today into a very bleak totalitarian future. And I, I again, I throw people like Market Sniper and Bill Holter into this category who I very, I, I think there’s nobody better to listen to for trying to triangulate the endgame. But I disagree with them on what happens after the end game. So there, you know, many of, many of your other guests are saying because, because yesterday, because today is worse than yesterday, tomorrow is going to be worse than today.

And we are heading into a bleak totalitarian future and there’s very little hope of getting out of it. And the best thing to do is to go move into the middle of nowhere or move off to the third world and try and rebuild civilization there. I’m going to make the case for a much more optimistic future on the other side of the end game. And to do this, we have to talk about what we know for certain will happen. Because there are things we know with certainty that this will happen. And because we know these things will happen, we can deduce other, other things from what we know will happen.

So we know the warning signs are already flashing. Physical silver is vanishing from the system. COMEX inventories, once seen as the backbone of silver liquidity, have been bleeding for years. In 2021, the registered stockpile stood proudly above 400 million ounces. Fast forward to mid 2024. What’s a BA da da boo? And that figure has plunged to just 291 million ounces. That’s a 27% collapse in available supply during a time when demand is accelerating across the board. And this isn’t just a normal inventory cycle. This is a structural drain happening right in front of us. Behind the scenes, large industrial consumers and institutional players have been quietly pulling silver out of Comex warehouses and refusing to redeposit it.

Why? Because they no longer trust the system. When confidence in the paper supply starts to erode, smart money races to secure physical metal before the illusion breaks. But there’s another shadow creeping over the double counted silver in ETFs many investors believe they own physical silver through popular exchange traded products. But what they actually hold is a claim to metal that might already be spoken for. Estimates suggest as much as 100 million ounces may be counted more than once across overlapping financial instruments. If even a fraction of those claims were exercised at once, the shortfall would be impossible to cover.

And the short positions remain massive. The paper market still dwarfs the physical. Billions of ounces worth of contracts are traded every month, but actual delivery tiny in comparison. This disconnect is unsustainable, especially as more investors begin demanding the real thing. The physical drain on Comex is just the first domino. When silver becomes difficult to source and premiums start rising, panic sets in. Dealers are already reporting intermittent shortages with delivery delays and skyrocketing markups. And as the paper price continues to diverge from physical reality, the trust underpinning the entire system begins to unravel. At that point, suppression fails.

The paper market loses its grip, and silver becomes a true price discovery market once again. That’s when things get violent, not just volatile. And the institutions that have been suppressing silver for decades will find themselves scrambling to buy the very metal they once manipulated. For certain that credit chains that are being built since 1913 are going to collapse almost entirely. And what is a credit chain? So the most informal, let’s go back to the middle ages and you, done again, are a farmer and I am a bartender. And so you come to me and you say, phil, I would like a beer, but my crops don’t come in until next two weeks later.

So would you give me the beer now? And when my crops come in, I’ll go sell them for some silver and I will give you the silver then. And I say, sure. Done again. You’re my neighbor. I’ve known you all these years. You’ve never done me wrong. Absolutely, I’ll extend you credit. And I, you know, I make a little note on a ledger somewhere. Now I need a, you know, something happens to my bar, I need a hammer to go fix something. So I go to the blacksmith and I say, you know, Donegan is going to pay me in two weeks, so can you give me the hammer now? And when Donegan pays me, I’ll pay you, no problem, right? And the blacksmiths, I know you and I know Dunnigan, no problem at all.

Now that’s a credit chain, right? But that entire credit chain is dependent upon you actually getting your crops and paying me so that I can go pay him. Now what happens when then you get the silver, you give Me, the silver, I mark your debt as being paid off. And then I take the silver and go to the blacksmith and he marks my debt as being paid off. So the credit chain required the money to at some point actually move through the credit chain. The actual money moved through the credit chain and the credit life cycle, you know, it ran its whole life cycle.

It was created, it aged, and then it, it was paid off. Now if your crops don’t come in, then the credit chain collapses. Right? You can’t pay me for the, for the beer you owe me. And then I can’t pay the blacksmith. So the blacksmith has to come and repo my hammer and I have to go give you a telling off for, you know, not for consuming my beer without paying for it. In the, in the middle Ages, that’s pretty much as far as it went. Right. There wasn’t much sophisticated credit. But in the modern age, you know, the credit’s very formalized and it’s very sophisticated, you know, and banks are, are managing the credit supply.

So you go to the bank and take out a cash load or you know, you borrow, you borrow money to go do inactivity of whatever you want to do. And this credit is created the, in the end game, this, all these credit chains are going to blow up. They’re, they’re just going to cease to exist. They’re going to completely coll collapse or they’re all going to get paid off with worthless currency. When the Federal Reserve prints to infinity which is the more likely solution. In 1929, it was a deflationary crash. So it was like the first scenario where the credit chains just all collapsed in a hyperinflation event.

All the debts, all the credit chains are all paid off with worthless currency. And then people will simply, they have no choice but to return to money transactions. And when I say money, I mean gold, silver and copper. So there’s, there will be no credit in the immediate aftermath of the end game. Excuse me. Eventually, smaller, honest credit chains can be rebuilt, as has always happened before. So people, you know, don’t pull your hair out saying, oh my, the world runs on credit. What are we going to do without. Without credit, Credit chains get rebuilt and they get rebuilt fairly quickly.

There’s no need to fear that, you know, we’re going to live 100 years with no credit and everyone’s going to have to only trade in money. Right? Right. So since we know this is what we know for certain, we know this is going to happen, it’s happened every single time before. We Know what a hyperinflationary event is? It’s a collapse of credit. What can we deduce? Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion.

This telegram will be our new home for real time silver discussions, market insights, collection picks and everything. Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway. Be subscribed to Silver News Daily on YouTube, turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the Telegram group and say hi. Once we hit 500 active telegram members, we’ll pick one lucky winner to receive 10 ounces of silver. But this isn’t just about scarcity. So get an early demand colliding with shrinking supply the world is undergoing a once in a century industrial revolution and silver is right at the center of it.

From renewable energy to electric vehicles, from semiconductors to AI infrastructure, silver is no longer just a monetary metal. It’s the backbone of the future. Let’s start with solar. In 2023, the solar industry consumed a staggering 193.5 million ounces of silver. An eye watering 64% increase in just one year. And it’s not slowing down. As nations scramble to hit net zero carbon targets and decouple from fossil fuels, the demand for high efficiency photovoltaic cells is surging. And here’s the silver has no substitute in these applications. No other metal comes close to its conductivity and reliability in capturing solar energy.

Then there’s electric vehicles. Every EV battery uses between 25 and 50 grams of silver embedded in connectors, sensors and power systems. As production ramps up worldwide tripling by 2030, silver consumption in the auto sector is set to explode. And this demand is sticky. Once a factory switches to silver based systems, it doesn’t go back. And beyond that, we’ve barely scratched the surface. The rise of 5G networks, advanced robotics, smart grids, and military grade electronics all require vast amounts of silver to function. Each of these sectors is growing faster than ever. And they’re all competing for the same limited resource.

In 2024, total industrial silver demand hit a record 680.5 million ounces. That’s more than half of total global silver demand. And yet mine Production only grew by 1%. The math doesn’t lie. The world needs more silver than it can produce, and the gap is only Getting wider. This isn’t some speculative theory. It’s a full blown demand shock that’s already underway. The silver market is no longer just driven by investors inflation. So we, it’s being devoured, attempting to, because, because the Fed is avoiding once that realization actually pay the money out, right? The Fed is writing notes for gold.

And like I spoke before with the credit chain the money has to actually move throughout the credit chain to pay off all the credit has been, that has been generated. So the Fed in avoiding having to pay the money out is simply stretching the credit chains to infinity. And when you stretch credit to infinity, Dunigan, one side effect of that is enormous, enormous amounts of credit are generated and this is enabling the creation of gigantic firms. So this is like the Walmart, the Home Depot, Monsanto, Big Pharma, BlackRock. These are all these firms operate on billions and billions of dollars in credit.

So Walmart, you know, Walmart buys tomatoes by the hundred million, right? Walmart calls Monsanto and says I need to buy 100 million tomatoes, right? And monster, in six months. I need 100 million tomatoes in six months. You know, here’s the credit. Start, start planting. So and then Monsanto, you know, starts generating the tomatoes, sends them to Walmart and then Walmart puts them in their stores and then eventually pays off all that credit that was generated with, with Federal Reserve notes, right? Without credit they cannot exist because their scales are far too large for monetary oper. If, if Walmart had to pay silver bullion or gold bullion for 100 million tomatoes, it could not generate that much because the, the silver and gold is too decentralized.

It’s in everyone’s backyards, it’s in everyone’s thing. You cannot get that much silver or gold conglomerated into one spot. And then draw, you know, you’re going to fill up several different armored trucks with gold bullion, drive them off to Monsanto, then Monsanto has to take them out of the trucks, put them in their warehouses is, it’s extremely inefficient, right? It’s it, the economy of scale no longer exists on a monetary, on a money, honest money system. Now people think oh well that sounds terrible. I want, I want tomatoes. And if Walmart’s not producing the tomatoes, what am I going to do? Somebody nearby is going to start growing tomatoes and you’re going to buy tomatoes from them.

In fact, not just somebody, a hundred people nearby are going to grow their own variety of tomatoes and you’re going to go to the market and you’re going to Buy, you’re going to have your choice instead. Instead of that disgusting, mushy factory farm tomato that tastes like garbage that Walmart has, that’s, that’s not even red, it’s pink, right? They have that pink tomato because they picked it when it’s green. So it can’t turn red, it can only turn pink. They have this, you know, instead of that mushy, disgusting, flavorless pink tomato, you’re going to have a hundred different ripe tomatoes to choose from in 100 different varieties.

And they’re going to be, each small farmer is going to be charging, you know, charging locally, and you’re going to buy locally. The result, A structural deficit so massive it’s reshaping the entire silver market. And almost no one is paying attention. For four consecutive years, silver has been in a supply shortfall. In 2024 alone, the deficit stood at 148.9 million ounces. Add that to the previous three years and the cumulative gap has ballooned to 678 million ounces. That’s the equivalent of nearly 10 full months of global mining output gone. This isn’t just a cyclical downturn or a temporary blip.

It’s the clearest sign yet that demand has permanently outrun supply. And the scary part, there’s no easy fix. Mines can’t just turn on production. Silver is rarely mined alone. It’s mostly a byproduct of copper, lead and zinc mining. So unless those base metal industries suddenly surge, we’re stuck with what we’ve got. Meanwhile, industrial demand is becoming more aggressive and less price sensitive. Companies don’t care if silver is $30 or $60. They need it to produce solar panels, EVs and high tech infrastructure. They will keep buying no matter what the price is doing. And investors are starting to wake up too.

After three years of ETF outflows, 2025 has seen renewed interest in silver backed funds pushing inflows higher quarter after quarter. But here’s the problem. We’re running out of slack in the system. Inventories are shrinking, production is stagnating, and demand is exploding. Every new deficit adds more pressure to an already brittle supply chain. At some point, that pressure breaks the dam. And when it does, silver doesn’t just move, it erupts. This is what makes the silver market different from any other asset class. Right now. Now we’re not talking about speculation. We’re talking about a critical material with non negotiable demand and a vanishing supply base.

That’s a recipe not just for higher prices, but For a total repricing of silver as a strategic resource. A repricing that could take even the most optimistic forecasts and shatter them. And so BlackRock, General Motors, Ford, General Electric, Walmart, Home Depot, Big ag, Big Pharma, 99% of the federal bureaucracy are going to be gone within weeks of the end game. I know that sounds insane because it’s like how can these, how can all these corporate and bureaucratic overlords be gone in such a short period of time? But if you understand what credit is and if credit disappears, then these firms cannot exist on the scale in which they exist in.

They’re going to be gone and their shells of their old buildings are going to be sitting there, you know, waiting to be purchased to be put to other productive uses. And so Monsanto and Big Agriculture are going to liquidate all their farms for gold and silver in a fire sale. And we’re going to see a land rush. Not since the 19th century. Because all that Monsanto land, all the, all the land Bill Gates bought, Bill Gates cannot run a farm that big. He cannot run those giant farms. They have to be on a smaller scale. It’s just, it’s not possible to run giant agricultural productions on a monetary system.

You have to, you need a giant inflated credit system to have giant farms. So it’s going to be, they’re going to, they’re just going to sell off for whatever gold and silver they can get. And any plucky guy who’s got a little bit of silver, a little bit gold and wants to take a crack at being a farmer, you’re going to have access to cheap land that you have. Like I said, land is cheap as we have not seen since the 19th century. Likewise, Walmart and Home Depot are going to liquidate their inventories and buildings and also dirt cheap in real money terms and completely shut down shipments of good page with credit are going to completely cease.

Because no one’s going to take any credit anywhere and only money will buy. And I’ve talked about this before, in that situation, money buys just staggering amounts of inventory or assets, whatever it is you want to buy. Now credit is much more efficient than money. So honest credit should reform relatively quickly. I don’t know, you know how long it takes. I’m going to get into that a little bit later of how long I expect the recovery period to be. But the credit chains are going to be much smaller. We’re not going to see these infinite credit chains and these giant firms reforming.

There will be firms, right? You know, automobile Companies existed when we were on a gold standard. It’s not like we can’t make an automobile. Companies will exist. In fact, they’ll be 20, 30, 40, 50 car companies in America like there were in 1919, 20. I had a viewer. I had a viewer email me and he said, In 1920, or I’m sorry, his grandfather sold Dort cars and Republic trucks. I’ve never heard of either of those companies. But just to show you, there are so many companies. I mean, there’s like cattle. As this perfect storm gathers force, the foundation beneath fiat currencies is starting to crumble.

Confidence in the dollar, the cornerstone of global trade and finance, is eroding at a pace we haven’t seen in decades. In the first half of 2025 alone, the US dollar index dropped a staggering 10.8%, marking its worst start to the year since 1973. And that weakness isn’t just a market anomaly. It’s a symptom of deep structural rot. The Federal Reserve, once seen as the bastion of monetary stability, is now trapped. It’s held rates steady at 4.25 to 4.5% for five consecutive meetings, unable to raise without triggering a recession and unable to cut without stoking inflation. Meanwhile, the US faces a $9 trillion debt refinancing wall over the next 12 months.

Debt that must be rolled over at much higher interest rates. The math doesn’t work and markets know it. Globally, central banks are reacting by dumping dollars and rushing into real assets. Nations like China, Turkey and India are rapidly diversifying their reserves, pulling out of US Treasuries and loading up on gold. But this shift isn’t limited to central banks. Retail investors, institutions and even corporations are beginning to question the long term value of fiat currencies, backed by nothing but promises and politics. Inflation may be moderate at 2.7%, but the public feels the cumulative damage. 18% price increases since 2021.

Combined with record high rents, food prices and energy costs. Confidence is cracking, and with it the illusion that dollars are safe, stable, and sacred. This is where silver re enters the picture, not as a relic, but as a hedge against the credibility collapse of modern monetary policy. Unlike fiat currencies, silver cannot be printed. It cannot be digitally manipulated into existence. It’s real, finite, and recognized globally as a store of value in times of crisis. As trust in the dollar erodes and inflation expectations remain elevated, silver becomes more than just a trade. It becomes a vote of no confidence in a financial system that’s out of answers.

And in a world where trust is the only thing holding currencies together. That shift in sentiment can happen faster than anyone expects. Black. Let’s see the US car companies. You know, there’s gmc, Buick, Chevrolet, Ford, Oldsmobile, Packard, Studebaker, Hudson, Cadillac, these all independent car companies back in the day. So there’s no reason we shouldn’t expect, you know, 20, 30, 40, 50, maybe more car companies to reemerge in America. Like I said, all much smaller and making a specific kind of car and there’s gonna be a lot more variety. So in the aftermath of the end game, the, the cost for basic item like socks and pants are definitely going to skyrocket even in real terms because they are all imported.

You know, people haven’t made socks in mass in America in, you know, 50, 60 years. And so we’ gonna have to start making those again. And in the meantime, a pair of, a pair of workman jeans is going to skyrocket. To skyrocket to something like 500 in today’s money. I’m just picking out, I’m picking out a very high dollar price. I have no idea what the dollar number is going to be in the end game. If you’re even going to be on a, you using a thing called dollars. But it’s going to be something like 500 in today’s dollars.

Just so the viewer can understand, you go to whatever store there, whatever market there is, and there’s a guy selling pants for five crash for 500. So some plucky entrepreneur is going to think for, for that kind of money, I can make pants, right? I can, you know, and he’ll, he’ll raise some capital. He’ll get a sewing machine, he’ll get his friends. He’ll, you know, start, he’ll, he’ll raise capital and labor and he’ll, he will restart clothing manufacturing in the United States of America. And the first pairs of pants that come out of this factory are going to be very expensive and they’re not going to be very good.

That’s, you know, that’s always the first, the first models are never as good as, you know, is the later models, models. But experience and competition will raise quality and lower prices as it always does. That’s a function of the market, right? People, more people enter the market, say I could do that for cheaper and better and prices go down and quality goes up. Like I said about the car companies, smaller credit chains doesn’t mean people think, oh my God, without credit, what are we going to do? Smaller credit chains doesn’t mean no companies. It Just means smaller companies.

And with no companies dominating, if you don’t have just Home Depot in the market, they have to compete with each other. So you’re going to have 10 different hardware stores competing for your business instead of just Home Depot importing junk from China. And like I said, the government will have collapsed by 99% and so regulations will be mostly gone. That’s another one. People are like, how is that gonna possibly be? I’m telling you, if there’s no credit, there’s no way to pay the government bureaucracy. They’re going to have to shut it down. There’s, there’s nothing else for it.

History proves me right as well. I mean, the government’s collapsed by 99%, if not 100% in these kinds of events. And the central banks, the very institutions entrusted with currency stability, are quietly confirming everything the silver market already knows. In 2024 alone, they bought a record 1086 tons of gold, marking the fourth straight year of aggressive accumulation. But this isn’t just portfolio diversification. It’s a signal. A signal that the dollar’s dominance is waning and the world’s monetary authorities are preparing for a reset. Gold has now surpassed the euro as the world’s second largest reserve asset. Central banks aren’t waiting for a headline crisis, they’re front running it.

And while gold grabs the spotlight, silver rides shotgun. Because when the global reserve structure tilts, all precious metals benefit. China, India, Turkey, these are not fringe players. They are the largest emerging economies and they are leading this gold buying frenzy. And according to the European Central Bank’s own survey, 95% of Global Central bankers expect gold reserves to keep rising. Translation? They see long term risks in fiat and they’re voting with their balance sheets. Meanwhile, the dollar’s share of global reserves continues to slide, now sitting at just 57.8%. That number used to be above 70%. The message is clear.

Trust in US monetary policy is eroded, eroding, and the world is quietly de dollarizing. Silver may not be on central bank shopping lists yet, but that doesn’t matter. When gold moves, silver follows. And as central banks push gold prices higher through sustained buying, the entire precious metals complex gets repriced. Investors looking for leverage to gold’s rise will inevitably turn to silver, which remains historically undervalued and industrially indispensable. The setup couldn’t be more clear. Clear. The institutions that run the system are abandoning paper promises in favor of hard assets. They won’t tell you it’s time to prepare.

They never do. But Their actions scream the truth. And by the time Silver reclaims its rightful place in the monetary hierarchy, those watching from the sidelines will be left chasing parabolic moves in a market that’s already sprinting. And if you can’t afford it, you don’t get it. That’s. That’s the way life is. Not that we, we don’t even want it. I mean, nobody wants this. Everyone’s complaining about the government. Absolutely, yeah. So a question I get whenever I, whenever I come up with this rosy, Pollyanna, you know, scenario, the question I get is, how long is it going to take to rebuild post in game? And of course, I, I can’t give you an exact number.

I can’t say, oh, we’re going to be back in six months or going to be, we’re going to be back in business in, in two years or whatever. What I will say is, if you look at Germany, Japan and South Korea, post war, you know, World War II for Germany, Japan and post Korean Civil War for South Korea, they were completely flattened in their wars. I mean, completely flatt. You know, all the buildings were reduced to rubble and large sections of their male population were killed off in the war. Right? So there was, there was almost nothing left.

Thirty years later, American auto companies were complaining their cars were cheaper and better than what the US could produce. Right? So they went from, they went from, you know, absolutely nothing to highly competitive in 30 years. And that’s after being physically flattened by war and, you know, mass, mass die off of their male population, which I don’t think we’re going to have. And now, with Silver perched just below, the technicals are flashing signals that traders can’t ignore. The price has been grinding upward, reclaiming both the 50 day and 100 day moving averages while carving out a rising wedge pattern that’s building bullish pressure with every tick.

Momentum is on the side of the bulls, and resistance levels are falling like dominoes. Just days ago, silver tested $37, nudging against critical resistance at $38.43. A clean break above that zone that opens the door to $38.92. And from there, $39 and 44 isn’t far behind. These aren’t just round numbers. They’re the final speed bumps before Silver enters what analysts call price discovery mode, where resistance is thin and volatility explodes. And it’s not just charts whispering bullish sentiment. It’s the entire macro backdrop. Weak US jobs data, sluggish services growth, a 90% market expectation of a Fed rate cut By September, all of it chips away at the dollar’s strength and pushes non yielding assets like silver higher.

ETF inflows are surging after years of stagnation. Physical premiums are widening. And the gold to silver ratio, though still stretched, has started to narrow, narrow, signaling a pivot in market psychology. Even conservative forecasts from major banks now place 2025, about 2025 targets between $40 and $50. And investing haven, they’re calling for $88, backed by a textbook breakout pattern and the kind of supply, demand squeeze we haven’t seen in a generation. What does all this mean? It means silver is coiled not just for a move, but for a moment, a tipping point where fundamentals, sentiment and technicals align to launch prices into territory that used to sound like fantasy.

This isn’t hype, it’s momentum grounded in math, market mechanics and monetary dysfunction. And once $40 is broken, the chart won’t just look different, it’ll be history in the making. Marshall Plan is an excuse is a fallacy, in my opinion. So if, if here’s, here’s the thing, thing. If giant government subsidies worked to rebuild economies, then we should be doing wonderfully because we have enormous government subsidies and we’re doing terribly right? So if, if just throwing American dollars at the problem is supposed to make things better, then, then we should be doing great. So you can’t have it both ways, right? Either, either giant government subsidies help economies and we should encourage them, or giant government subsidies don’t help economies.

And Germany and Japan and South Korea thrived despite the government intervention, not government intermission. So I, I think it was free market forces that caused them to flourish. I don’t think it was the Marshall Plan or the US industrial base pulling their bacon out of the fire. I think they did it themselves. So I just, in conclusion, I just want to say, like the Fed, the Federal Reserve is a physical parasite upon us. It drains our life forces and it drives us insane by pumping us full. It pumps us full while it’s sucking out. If you imagine a little parasite like here that’s draining your life force, it’s physically sucking out your blood, blood, but at the same time it’s pumping you full of meth.

So you feel, you know, when it first attaches it to yourself, you feel, oh, you’ve almost euphoric. You’re like, I’m stronger than I’ve ever been. There’s nothing I can’t do, right? But after 20, 30, 40 years of this parasite taking out your actual nutrition and your actual you know, bodily fluids and just pumping you full of meth. Now the meth isn’t working so well anymore and you’re, you’re thin, you’re sick and you just want to, you know, you just want to curl up into a ball and die. Removing the parasite is only a good thing for the host, but there is, there is pains in doing so because you’re no longer getting your meth injection.

So when you, when they pull the parasite off, you have to go through the meth withdrawal because they’ve been injecting you, it’s been injecting you with meth this entire time. But that doesn’t mean that you shouldn’t pull off the parasite. That doesn’t mean that the parasite is doing something good. It just means you have to get that parasite off and then go through the pain. And we should not expect a world on a gold standard to look anything like the world we are in now. If you want to know what the world and the gold standard looks like, look at like 1890s America or 1890s England or even 1890s Germany, something like that.

That is what the world looks like in a gold standard. It’s thriving and prosperous and very healthy. So we should just get on, we should get back on the gold standard and I think it will lead us to undreamt of prosperity. There is going to be some short term pain, there’s no denying that. I think it’s being massively overblown and I want people to be have a more optimistic view of what the crash is going to look like and more importantly, what the post crash recovery is going to look like. So here’s the bottom line. Silver isn’t just poised to rise.

It’s primed to reprice. This isn’t a typical commodity rally or another speculative bubble. It’s the unwinding of decades of suppression, the reckoning of systemic risk and the emergence of silver as both an industrial necessity and a monetary refuge. The wild dollar quadrillion derivatives bomb is still ticking. The dollar is sliding. And the institutions that once mocked precious metals are now hoarding them behind closed doors. And when that next financial shock hits, and it will, the scramble won’t be for tech stocks or real estate estate, it’ll be for ounces. Real, physical, unforgeable silver. The kind that can’t be frozen, seized or digitally deleted.

By then, the window to buy will have slammed shut. Dealers will be dry, premiums will be obscene. And the world will realize too late that silver was never the poor man’s gold. It was the last honest money in a system built on fraud.
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