➡ The gold market is showing signs of acceleration, with trend lines indicating a potential increase in value. This is expected to continue, especially with the anticipated final round of money printing. The Federal Reserve is likely to reintroduce quantitative easing (QE), a process of injecting money into the economy, similar to actions taken in 2019. This could lead to a decline in the dollar’s value and an increase in the purchasing power of gold and silver.

Reviving 2019 playbook sounds better than printing 500 billion dollars in repos, which is what they did in 2019. That was the playbook. Hey guys, Raf here from The Endgame Investor and people are asking me why is gold crashing? Why is silver crashing? They want to know what the proximate causes are. They want to know what the exact movements are that are causing the metals to go down in dollar terms temporarily for now. There are several approaches I could take to this. I could say, oh market manipulation, everything’s being manipulated. It’s the big banks.

They’re trying to keep the golden silver prices down so they can keep the fiat monetary system in the blah blah blah floating block. Or I could take a really dorky move and try to analyze exactly why the move from the COMEX into the LBM may cause the golden silver spread to narrow and blah blah blah. I would sound really smart and those who thought that I knew what I was talking about would say, wow, I know everything. This brain knows everything about everything, right? Is it true that post this damp glue is made of correct toad mucus? But the thing is, it doesn’t matter.

The broad strokes answer as to why golden silver are falling in dollar terms over the last few weeks is that the final printing round hasn’t even started yet. In fact, QT hasn’t even been stopped yet. They’re still shrinking the balance sheet. They’re not printing any more money directly. They’re not expanding the monetary base. Until they do, the dollar is stuck in a perpetual short squeeze, which is what keeps the monetary system together until there is a wave of defaults and the vet has to print again, which they will do. And that will be the final round.

And once that starts, the end game will be a beeline from wherever that final printing round begins. But until we get there, there’s going to be some volatility. In fact, on the end game investor on sub stack, taking profits in certain leveraged options positions of which we have very, very few. And it turned out to be a good decision. I didn’t know anything. I didn’t know that golden silver were going to fall imminently and figured it’s not making me comfortable to have that sitting there when the expiration to those options are pretty close and anything could happen by then.

I might as well just take profits now. And that’s what I did. But in any case, we’re going to talk about why QT is about to end maybe as soon as this week and what happens after that and why this golden silver crash is really one of the most pathetic ever. And of course, if you want to keep stacking, which this is a good opportunity to do so on this dip, get in touch with Miles Franklin link in the description below and mention the end game investor and you can take your golden silver and put it in a dirty man’s safe use code end game 10 at checkout for 10% off.

I don’t suggest, I don’t suggest anything. I wouldn’t put all of my golden silver in a dirty man’s safe, but some of it, yes, because when the system goes down, you’re not going to be immediately able to access the golden silver that is vaulted wherever it is, not in your property. So why is QT about to end? Why is the Fed about to stop shrinking its balance sheet? Because the repo rate, the SOFR, secured overnight financing rate, the rate at which banks get cash for treasuries between themselves is getting very, very wobbly.

You can see here, this is the SOFR. It’s supposed to be straight and steady as it is here in all of these little steps. And he was here in 2021. It was absolutely steady at very near zero, but here it starts getting a little bit more wobbly in 2023, 2024, and then even more wobbly as the Fed rate cuts increase. And this is the most wobbly it has gotten until now. And you can see that comparable wobbliness in this rate occurred in 2019. And here’s their apocalypse over here when the rate hit 5.25%.

So basically, you can see this wobbliness is getting more loud, more pronounced, more extreme, and is eventually going to lead to an apocalypse unless the Fed expands its balance sheet forth with Lee. Now we can move to the effective federal funds rate. This is the rate that the Fed is cutting or hiking when it says there is a rate hike or cut. This is that rate. So you can see here, this is the apocalypse going back to 2019. You can see there was a spike here, but it was pretty sudden. And otherwise, it’s pretty steady, this rate as it was here in 2019 after they started expanding their balance sheet again.

Pretty steady, only goes up one basis point or so, but here it went up a lot. But what is happening now to the EFFR, the effective federal funds rate, even that rate is starting to move higher. You can see that face. Look at that face. Look at this face. Would you look at this face? Is this a face you like that? So you see here that the rate is starting to tick up. It started at 4.08 and I think this is 4.09 and this is 4.1 and here’s 4.11, here’s 4.12. It’s ticking up about a basis point every two or three days that is signaling some pretty significant tightness in short-term interest rates because the bank reserves are starting to run out.

Here we see that this rate is absolutely steady, didn’t move a single basis point until now. The standing repo facility is stupid. Everyone’s talking about the standing repo facility and how it’s being tapped. Well, it’s not really, that’s all a bunch of fluff. The standing repo facility is useless because most banks that require cash can’t even access it for stupid technical reasons that I don’t really quite get, but that is what a bunch of Bloomberg articles have been saying over the past few years that the standing repo facility is useless because it cannot address cash needs that are actually extant.

So here, how do I know that it’s useless and stupid? Because here are the repos, the volume of repos that occurred from about 1999 or was it 2000 until 2014 or 15. So we see here that we can see these blue lines there are pretty active. So there’s somewhere between zero and a hundred billion dollars here a day and here it moves up to about 150 billion or so, maybe 40 billion around 2008 crisis. And you can see here, I think this is the COVID era or something. It skips a bunch of years here because nothing happened.

And then you see the big COVID spike to about 250, $260 billion that was during the lockdowns. And here you see nothing, but here is what the standing repo facility has been doing for the past few days. These tiny little spikes, tiny little spikes, maybe seven or eight billion dollars. And obviously, yes, these were not standing repos. There was no standing repo facility back here in these years from 2000 to 2013, 14, 15, whatever it is. So what does that mean? There was repos. It was day by day. It was on the fly, but really there’s no monetary or economic difference between repos on the fly and a standing repo facility that’s operated by some AI or some valve or whatever it is that’s making these things go, pulling a lever, who knows who cares.

It’s all the same thing. Dollars or dollars, repos or repos, whether they’re standing or sitting or going to the bathroom, doesn’t matter. And you may recall that two videos ago, maybe three videos ago, something I talked about, silver backwardation. That wasn’t really backwardation. And I stand by that. And I was just saying that there is a spread or an arbitrage going between London and New York. And the special situation in London meant that they were short on silver because for some reason silver was being shipped to New York from London over the past months before.

And who knows exactly why people say it was tariffs or whatever they wanted to say. I’m not so sure. But anyway, we can see that the silver is starting to move from New York back into London. So we had a high here of about 532 million ounces, over half a billion ounces. And now we’re down to 492. So that’s about 40 million ounces that have been shipped, presumably to London, probably not all of it went to London, but a lot of it, I’m sure it did. That has alleviated the spread or the backwardation between London silver and New York silver.

It’s not exactly backwardation because they’re not the same products. You have to have the same products at the same place in order for it to be the same products. Whereas products that are chemically the same, meaning silver is silver is silver, but they’re in different places, are different goods according to Mises in the theory of money and credit. And so this is not actually backwardation. We can see it was resolved pretty easily by silver moving back to London from New York. And the last slide before we go into an article that goes back into the repo situation and QT, how that is going to end imminently.

We can see here that this really is the most pathetic gold correction ever. So what I’ve illustrated here is the moving gold by trend line from late 2022 at the bottom over here at about 1716 1650 or whatever it was. We drew a first trend line over here from 1650 from 2022 over here to the bottom at 1850 in October of 2023. And then we establish a new trend line that has a higher slope from there until the beginning of 2024. And then a higher slope still from October 2024, this red line over to the end of 2024, the beginning of 2025, and then still a higher slope, meaning acceleration in the gold market from here, from the beginning of 2025 until this is the end of the last correction, the four month correction, but it was still a much higher slope than we had seen before.

And still an even higher slope from now until the correction that we’ve seen from top at 4400. Are we going to maintain this trend line? I don’t know, but I can see here that we’re still in a rate of accelerating trend lines. So we’re still in a parabolic move. Do I know if it’s going to be sustained or we’re going to break a trend line? It could go either way here. We’ll see how far we go. But what you have to know is there still is one final printing round ahead of us. And once that starts, the end game will be the next stop.

The gold will only go higher, including silver, higher in purchasing power, higher in dollar than the dollar will start to waterfall decline. And that should be the end of it within a couple of months. Once the final printing round starts in earnest. And of course, the first step to that, stopping QT and then reversing to QE, which is what Bloomberg says is about to happen. Here is the article. J.P. Morgan sees Fed reviving 2019 playbook to ease market strains. Well, it’s interesting that they put that as the highlight, as the headline, because reviving 2019 playbook sounds better than printing $500 billion in repos, which is what they did in 2019.

That was the playbook. Here we see the AI takeaway, the Federal Reserve will take extra steps to address pressures in funding markets, which are likely to persist even after it ends its balance sheet unwinding, which means ending QT is not enough. They have to reintroduce QE, which is what they say is going to happen. We move to the next bullet point here. J.P. Morgan strategists expect the Fed to introduce temporary open market operations, which means QE, temporary open market operations means money printing to alleviate strains in overnight markets and may lower the rate on its main liquidity backstop the standing repo facilities.

That’s to get more banks to use it. Banks don’t want to use it because they can’t and forget about why the Fed is expected to stop shrinking its portfolio of Treasuries and mortgage backed securities and may start reinvesting in newly issued Treasuries to rebuild reserves. That means QE, they just don’t want to say QE, but that’s exactly what it is. It’s the same thing. J.P. Morgan strategists expecting regular purchase of Treasury bills at the beginning of 2026, which is QE straight up. Here is a quote that’s important. Thus, we think the Fed may follow a similar course of action taken in September 2019.

At the time, says Bloomberg, the Fed pumped half a trillion dollars into the financial system as short term rates skyrocketed. So 2019, half a trillion dollars. Why not? QE is moving. It’s going to move actually. And once it does, the final printing round will be started and we can go to the next stage, which is the collapse of the dollar system. Until then, it’s going to be volatile in the gold and silver markets. These things should be stacked, not traded, not withstanding small leverage positions just for playing the game, if that’s what you’re into.

But don’t get addicted to it and know what you’re getting into. We are not in this game to increase our dollar holdings. We are in this game to increase our gold holdings. We do not use gold to increase our dollar holdings. We use dollar holdings to increase our money holdings. That’s how the game should be played. And if you play the game right, it’ll reach the end of it. And then we can all play a new one. And for those who want something extra spiritual lessons in gold and silver, this week we’re going to go into on the Patreon for as little as $3 a month gold in the Garden of Eden.

What did it mean? Why was it there? I’ve talked about this before. We’re going to take a different angle on it. And one hint is that the same word is used to describe gold as is used to describe every day of creation. This is Rau the Young Ambassador and I’ll see you guys soon. [tr:trw].

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.