What we’re going to talk about today is the passage of the BBB, not the Better Business Bureau, but the big, beautiful bill. And I’m sure it’s beautiful for everyone, both those who are anticipating the endgame like us and those who are not because they have no idea that this is going to lead to it. And we’re going to discuss exactly how this is going to happen. Basically, the debt ceiling has been raised by $5 trillion, which would be fine if there were $5 trillion left for the Treasury to borrow. But there aren’t because they’re all being used by the repo market.

So once the Treasury starts to raise money, it will have to raise it from the reverse repo facility, which has about $460 billion left at maximum. That’s where the spikes have been since September 30th. And it will take the Treasury about two months to raise about $500 billion, as that’s how long it took during the last debt ceiling raise of 2023. And once that happens, they’re going to have to draw the rest of the money from bank reserves, which will interfere with the repo market and push rates up to who knows where the next apocalypse is going to be.

But the Fed is going to have to intervene and print more money. And once that happens, we should be on the road to the end of the dollar. We’re also going to talk about the tears from the Chancellor of the Exchequer, which is the UK equivalent of the Secretary of the Treasury. She started crying at the House of Commons. And when she did, the UK guilt market started to wobble very strongly and scarily. But anyway, let’s continue with the slides and we will start right now. First of all, the UK guilt market, UK guilt fall, meaning rates rise in the UK after the Chancellor, I think I spelt that wrong, I’m sorry, of the Exchequer cries.

UK markets fell sharply with the pound shedding more than 1% as investors grew increasingly nervous about the state of Britain’s finances and speculation swirled over a possible exit by Chancellor of the Exchequer Rachel Reeves. 10-year guilt yields surged 16 basis points to 4.61%. I think it was actually 4.67% or something. The rise in borrowing costs was most acute at longer maturities, with the yield on 30-year bonds rising over 20 basis points. This is from an article from Bloomberg, by the way, a link in the description below. The pound sank below 136. The FTSE 250, the FTSE, as they call it, index dipped 1.5%.

The calculus seems to be that Reeves is soon on her way out, and that her replacement, whoever that is, will loosen the fiscal rules significantly, said Michael Brown, a strategist at Pepperstone. Basically, Der Starmer didn’t assure anyone that Rachel Reeves was going to be rehired or continue on in her term as Chancellor of the Exchequer, probably because she doesn’t want to spend as much money as Der Starmer wants to spend, so they got into a fight and she’s probably going to be fired in favor of someone who wants to spend more money. Then Britain actually has, which is the same situation as everywhere in the world.

The sell-off was ignited after Prime Minister Keir Starmer failed to confirm Reeves would be in her post at the next general election when asked in Parliament. Reeves, sitting alongside Starmer, also appeared to brush tears away during his appearance. Oopsie, we got some leakage. Let me just cauterize that for you. Ladies and gentlemen, this is why women should not be head of the finances in any country. This time we are sure she’s a woman, right? Good. Invited to my quarters. And neither should men, considering what they’ve been doing since 1971, but when you’re out of women and you’re out of men, who is left? I’d rather not say.

But anyway, let’s continue. What are we going to hear? This is a look on how much the guilt market wobbled once Rachel Reeves started crying in Parliament. You can see here, those are the delicious tears. This spiked from about 4.4% to 4.67%. It was like a 20-something basis point spike. Delicious tears. Imagine what happens to rates when everything starts falling apart. These rates are all rates all over the world. We’re going to head higher and higher and higher, and it’s going to be meaningless because inflation is going to head as they define inflation. The rising consumer price is going to head higher and higher in a hyperinflationary spiral.

That’s what is going to occur all over the world, and we’re seeing little fits of it as these finance clowns can’t seem to get a hold on any country’s finances. You know, and I think of Rachel Reeves tears. Meanwhile, what is happening with gold? We can see here that the yearly cycle trend line is being tested. The yearly cycle started at 2025. That’s because when that’s when the year started. So we see here that this cycle trend line is being tested. Once again, it was tested in April and now it is being tested in the beginning of July.

We’ll see if this trend line breaks. Well, you can see here going farther back to 2024 when the current gold rally really started to take off was that we have these consolidations here that last about three months. This from April to July and ours started in April as well when he hit a high of about 3500 and now we are in July. So this consolidation should be just about over if these trends are going to continue. You can see another consolidation here starting in October going through to January. Also about three, three and a half months or so same timeframe, same time allotment.

I expect it to be the same year. So we could break the trend line temporarily, but I still think the consolidation is just about over with gold and same thing with silver. This silver part is brought to you by Kootenai Silver. Simple K-O-O-Y-F in the U.S. and K-T and in Canada. I do own shares. You can see here on the right. This is a table from Wikipedia. I’m very original like that. Mexico is the largest producer of silver in the world. 25% of annual silver production comes from Mexico, which is one of the reasons why Kootenai is focusing its efforts on Mexico.

Latest news out for Kootenai is that 54.1 million ounces of silver were discovered at least at the Columbia High Grade Silver Project. This is a maiden resource estimate 5.92 metric tons, grading 284 grams per ton silver. The work plan for the balance of 2025, you can see here is a 50,000 meter drill program that will continue this year. Sometime within the next 12 months, there will be hopefully a preliminary economic assessment where other companies that might be interested in this resource will have significant and hopefully sufficient information to make an offer on the Columbia Project. That is Kootenai’s goal.

If you’re interested in silver explorers like this, then check out Kootenai Silver and do your own due diligence as they say. Now, let’s go back to the BBB and the possible timing for when there is a repo market re-apocalypse. The apocalypse is most common. We can see here, this is the reverse repo chart that I’ve shown many times. This is the $460 billion line that was the spike that occurred on June 30th at quarter end. There are big spikes at quarter end in the reverse repo facility that max out the reverse repo facility for regulatory purposes by banks.

See, this is the same max out that we were at in 2016 and 2017 is that a coincidence, who knows, maybe it is. The basic point is that at a maximum of $460 billion, that is the extra liquidity that is sloshing around the system. Now, what does that mean? That means that the BBB, right, the big beautiful bill that expands or raises the debt ceiling by about $5 trillion. The Treasury can raise about $500 billion before there are serious problems in liquidity issues, because that’s the amount of money that the banks have to stuff into the reverse repo facility because they have no room for it on their balance sheet at quarter ends.

But once they do that, once they raise $500 billion, there’s no more extra dollars to raise. You can see here that back in 2023, the last time the Treasury or the Congress raised the debt ceiling, the Treasury cash balance at the Fed moved from $44.7 billion to $543.597 billion. So let’s just call that an even $500 billion raised in about six or seven weeks, whatever the exact number is. That’s about the rate that they’re going to achieve this time. So we have about less than two months, six or seven weeks before the rest of the funds in the reverse repo facility are exhausted.

And then what happens after that? Well, this is the chart I’ve showed many times before. This is my go-to chart for seeing when the next repocalypse is going to occur. The last one occurred at this ratio of repos to reserves. That is 83 percent. That means that 83 percent of available bank reserves are being taken up by daily repos between banks every night. And that is when the apocalypse occurred in September of 2019. We just hit above that level as of June 30th, once we hit 90 percent. 90 percent of available bank reserves are being taken up by repos.

So we could hit the apocalypse at any time. And we’ve already seen that the SOFR rate, the repo rate between banks overnight had reached above the Fed’s upper bound target of 4.5 percent over June 30th and July 1st. So there’s already severe tightness in the repo market. And you can hear more about this on The Endgame Investor at Substack. Link in the description below where I go into Bloomberg’s breakdown of exactly what happens from here. So overall, here’s what to expect from here on out. The Treasury is going to raise five hundred billion dollars over the next six or seven weeks if the patterns from the 2023 raise the debt ceiling stand today.

And they probably will. Once those five hundred billion dollars are sucked out of reverse repo, the rest of the money that the Treasury raises is going to have to come from bank reserves directly. And that is going to shrink the amount of bank reserves. And then the repo market and the Treasury are going to compete over the remaining dollars. And so repos are going to get a lot more expensive and the Fed is going to have to step in for QE one more time. And from there, we will have the final money printing round. Gold and silver should have higher and higher and higher with fewer and fewer breaks.

Credit should continue to die faster and faster with all that purchasing power being vacuumed into money itself. And for those who are upset with Trump for passing or insisting on the passage of the BBB, which puts the country even more in debt. There was really nothing he could do. We are on a fiat debt system. That means the debt must expand or the banks collapse. If the banks collapse, everything goes to hell in this current system. Trump is not ready for that. He’s not prepared for it. So this is the best that he could do. He can’t balance the budget either because that also leads to a banking crisis.

Let’s just thank him for leading us into the end game. I’d rather it be him than Kamala Harris. So let’s just embrace it and be excited for what’s coming next because it’s going to be a lot of fun for those who have actual money. Golden silver. We will step in and do what we can to rebuild what is lost of society when we are called upon to do so. This is Ralphie, the in-game investor. Check out Kootenai Silver if you are interested in Silver Explorer, symbol KOYF in the US, symbol KTN in Canada. And I’ll see you guys next week.

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