➡ A new plan is being developed to simplify how banks figure out their capital requirements, replacing the previous 1087-page version. This comes as job growth is slowing down, with the number of new jobs each month decreasing since July 2021. If this trend continues, we could see job losses and a rise in unemployment. The treasury is currently pulling money from banks, which could lead to the Federal Reserve injecting money into the system, potentially affecting gold and silver prices.

CASH BOWL! I’m okay. I’m fine. I’m fine now. Hey guys, Raf here from The Endgame Investor with this week’s Silver Report and the banking system is up against a brick wall. Get it? This is an actual brick wall. It’s not a virtual brick wall, but the brick wall that I’m talking about with the banking system is a virtual brick wall. So maybe it would be more appropriate if I had a virtual brick wall in the background, but I chose an actual one because I had access to it and the air conditioning works in here.

But anyway, with this week’s Silver Report, I’m going to talk about something that I talked about at The Endgame Investor on substack for only paid subscribers. I don’t usually do this. I save a paid subscriber material for the paid subscribers, but I wanted to give a preview of the kinds of things that I talk about and reveal and deconstruct there. So if you are interested in more of these topics, then please consider becoming a paid subscriber of The Endgame Investor on substack. Link in the description below. That is how I can continue to do these videos.

Your support means everything to me. Before we get started, this week’s Silver Report is brought to you by Cash! Cash! Cash for your bones! Too many bones! Not enough cash! Call Cash Bones! Silver 47, symbol AAGAF in the US, symbol AGA in Canada. The stock continues to trade along with silver up and down and continues to do so this week as silver took a dip, probably because we are at the cost of some kind of crunch or some kind of recession. We can see that in the employment numbers, but don’t worry. Trump is going to fire the BLS, the Bureau of Labor Statistics, that is responsible for releasing the statistics on employment.

He didn’t like them, but once she’s fired, everything will be fine. Anyway, the news out today for Silver 47 is that it’s completed its merger with Suma Silver. The reasons for the merger were multiple. Just to outline here, the creation of a leading high-grade US-focused silver explorer and developer. I am long. Silver 47 shares, by the way, do your own diligence, and if you’re interested in them, check them out in the link in the description below if Silver Explorers fit your risk profile. Creation of a leading high-grade US-focused silver explorer and developer. The combination of Silver 47’s Red Mountain Project in Alaska with Suma’s Hughes Project in Nevada and Magolin Project in New Mexico.

These are all silver exploration projects with ounces inferred and indicated as well. You can see that they’re combining their resources of 10 million ounces silver equivalent at 3,333 grams per ton of indicated mineral resources and 236 million ounces of silver equivalent at 334 grams per ton. The combined company is currently undervalued at 33 cents an ounce silver equivalent for their pro forma. Current total measured, indicated an inferred resource endowment. Basically, how much silver they think is in the ground there is valued at 33 cents an ounce, which is very low by industry standards.

Obviously, there is risk here, but for now, the company continues to trade more or less along with the price of silver bullion. And with that, let’s move on to the slides for this week’s Silver Report. First of all, this is a chart that I could jiggered from FINRA, the Federal Something Something for Something Else. I don’t remember what it stands for, but they crunch a bunch of numbers for trade accounts and whatever. Debit balances and customer security margin accounts, otherwise known as trading on margin, the total amount of debt that is outstanding for institutions and individuals together who trade on margin, trade stocks, bonds, crypto, whatever it is.

If there’s margin in their brokerage account, it shows up here. We have crossed the $1 trillion threshold for the first time ever, but I don’t think it’s the absolute number that really matters because, of course, as you inflate the money supply, you inflate the margin supply as well. What really matters here is this table that I put together and I put it on Endgame Investor for only paid subscribers. So, this is the kind of stuff that I do there. Check out the Endgame Investor on substack, if you’re interested in this kind of analysis.

Margin accelerating at breakneck pace in this table that I could jiggered from the same data. You can see in the bold, these are the 14 biggest monthly moves, percent changes in margin for month to month. Usually, there’s a blow-off top at the end where the rate of margin increase accelerates. So, these are the top four months for acceleration, the amount of margin month to month, and you can see here that June 2025 is in the bold here at $1 trillion and $7 billion, $961 million, whatever that is. You can also notice that these things tend to peak.

The rate tends to peak just before a recession or just before a crash or whatever it’s going to be. Also, at the beginning of a boom, for example, in 2020, in April and November 2020, that was at the beginning of the COVID round of printing. But the point I want to make here is that the accelerations, the blow-off tops and margin increase tend to cluster together towards the end of a boom. You can see here in 1999, the first bold, November 1999, that was the strongest month of margin increase ever, followed by December 1999, consecutive months was the fourth largest at 10.83%.

And you can see the only other time where there has been consecutive two months of very, very high acceleration blow-off tops and the rate of increase of margin at brokerage accounts has been May and June 2025, these past two months. The only other time was November and December 1999, just before the dot com bubble burst. Does that mean it is necessarily the same thing now? No, but just another piece of evidence that we’re almost there at the final liquidity crunch before the final round of printing begins. Now, here’s what I covered on the end game investors specifically.

Where are all the margin dollars coming from? In order to understand why this could lead to a major unwinding and crash, you have to understand where these margin dollars come from in the first place. The client bones connected to the brokerage bone, meaning when the client wants to trade on margin, he gets it from the brokerage. Where does the brokerage get the dollars from? The brokerage bones connected to the bank bone. The brokerage asks a bank to loan it dollars and the bank obliges. But where does the bank get the dollars from? The bank bones connected to the repo market bone.

The repo market is tapped by the bank in order to get cash to give to the brokerage to give to the client. Follow that the repo market bones connected to the treasury bone because repo market loans are collateralized by treasuries. And finally, the treasury bones connected to the cash bone. So let’s say, for example, that if the dollars in the repo market run out, a bank cannot supply any dollars for margin trades. And then the value of stocks go down because of that. And then the client can’t pay the brokerage because the value of the shares are too low to pay back the loan.

And then the client and the brokerage can’t pay back the bank. And then the bank can’t pay back the repo market. So the repo market seizes its treasuries and sells them and force sells them. So you have collapse in stock market collapsing bond market rising interest rates in the Fed must intervene at all costs, including the cost of the dollar itself, which is what is eventually going to happen. I queried rock on X and I asked it what percentage of margin lows are funded by the repo market. It said to me while exact figures are unavailable due to the complexity and opacity of funding flows, a reasonable estimate suggests that 20 to 40% of margin loans from brokerages are ultimately funded by repo market dollars with the higher end applying to prime brokerages serving institutional clients like hedge funds and the lower end for retail brokerages.

That means that the people with the big money, the institutional clients are 40%. Their margin trading is funded 40% by the repo market. This estimate is derived from the repo markets role as a key liquidity source for banks and broker dealers. The Fed starts talks on a more relaxed version of a Basel three end game. The bankers terms for the final sheets of regulation or whatever their booklet of regulation is going to be, which was conceived of following the great financial crisis of 2008. And now apparently it is going to be scrapped entirely for something entirely new, which is, you know, how things go in the banking game.

This article is by Katanga Johnson, Johnson, Johnson. Yep. Very multicultural. August 1st, 2025, the federal reserve has kicked off the process for putting together a new risk-based capital role that would be less burdensome on the biggest us banks than a Biden era plan. According to people familiar with the matter, vice chair of middle its supervision, Michelle Bowman, who was on the picture on the right and her beautiful smile is is taking the lead in crafting the new measure that would aim to simplify how banks calculate their capital requirements. Now get this regulators are largely throwing out the original one thousand eighty seven page version proposed two years ago and will aim to unveil a new plan as soon as the first quarter of 2026.

Well, you know, I don’t think we have that much time here, but you know, if they want to throw out one thousand eighty seven pages of beautiful regulation for another what’s going to be two, three thousand pages of even more beautiful regulation for banks, just do it. Who cares? And now you remember that headline today, that new farm, non-farm, whatever they call it, payrolls are revised down and they’re only seventy three thousand. And OK, well, if you look at this, you can see that recessions coincide with this thing going down and you can see the slope of this thing starting to flatten out at the end of the graph here.

And it always happens and it will happen again. It’s just a matter of time and not that much that you can see in this next chart. This is the rate of change, not the rate of change. This is the amount of new jobs per month from the previous month, the increase from the previous month. And you can see that the fuel is going down. It has been going down since about July 2021. And we are almost below zero year. When we see below zero, we are losing jobs. Unemployment is going to spike and we will be in the final recession, in the final crunch, whatever the final thing is.

And no, it is never different this time. We have already bottomed in unemployment, I think in 2024 or 2023 somewhere in here. It was a long time ago and every time we have a bottom, there is a move up in unemployment. We will see it again. It is just around the corner. The quick answer as to when exactly this happens. The answer is, well, the treasury is currently sucking money out of the banks. It is sucking money first out of the reverse repo facility, the final hundred billion dollars there. I think we broke through a hundred billion dollars today.

Once that is empty, it will suck out of bank reserves and bank reserves are what fund the repo trades. Right now, the sucking is a little bit weak, but it will accelerate through September. And then it will be followed by the Federal Reserve exploding money out into the system. And gold and silver should respond from there. This is Ralphie, the end game investor with this week’s silver report, sponsored by silver 47 symbol AAGAF in the US symbol AGA in Canada. Check those guys out at the link in the description below. If silver explorers are right for you, get your gold and silver with miles Franklin.

Think in the description below and mentioned the end game investor. You can always take the stacks that you have and put them in a dirty man safe. Use the code end game 10 at checkout for 10% off and to support my work here. Thanks everyone. And I’ll see you guys next week. Bye. [tr:trw].

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