Summary
➡ Global markets are witnessing a shift from bonds to gold, with countries such as Japan leading the way. Simultaneously, Argentina, while initially promising, is currently transitioning from the unstable Peso to the dollar, seen as a temporary solution until an asset-backed commodity basket or gold becomes available. Alternatively, this signal could point to a wider trend towards de-dollarization amongst nations, leading to stronger focus on commodities such as gold. This shift could potentially trigger a 20% to 30% price inflation in America by mid-next year as the country struggles to finance its debt.
➡ The speaker predicts inevitable price inflation due to a combination of monetary and supply-side factors. High interest rates, seen as an outdated method, don’t address the supply-side shortages, rather they exacerbate the problem. The speaker then foresees a bond default and the possibility that money might be printed to cover the debt.
Transcript
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Shield your savings with Noble gold. Shield your savings with Noble gold. I sound like a punch drunk fighter right now. Shield your noble gold investments. Shield your savings with Noble gold investments. Go to noblegoldinvestments. com now. Noble gold investments. Hit the link below, folks. It’s early in the morning. It’s early in the morning. Sometimes I slur in the morning. All right, Jim. How’s it going, my man? I’m doing pretty strange.
Did I sound punchy in that commercial? No, you sound overworked. I’m feeling strange still, but golly, I’m seeing the end of this nightmare. It’s within view. And I’ll tell you very briefly in succinct terms, I think a lot of these unfortunately nasty chapters are going to close soon because of the government debt and bond default, which I see is in progress right now. I don’t see which is a good government debt.
Correct. It’s a good thing in the grand scheme of things. This is a good thing. It’s a good thing if you like hurricanes to clear the surface. Yeah. Okay. It’s a good thing that eventually we’ll get a better system. But we have never seen a Treasury bond default and we are heading toward one. And I’m expecting that the boys in charge and the women, the folks in charge are going to do everything within their power to prevent a bond default.
I’m going to go directly to the most frightening element to this. We got a 1. 52. 0 trillion dollar deficit. We got to finance that. We have to sell bonds to cover that. And we’ll have trouble. We’ll have a lot of trouble. In addition, in the last five years we’ve had such a difficult time selling the story that we’re reliable as a us government that we have been forced to go to shorter maturity treasuries.
And this year, hold on to your hat, we’ve got to finance $7 trillion in the next twelve months, $7 trillion in addition to the current deficit. So it’s like over 8 trillion must be funded in the treasury bond market in the next twelve months. If you think that can be done, you’re nuts. And I think it’s going to have to be Varmar style. If they don’t print money, then we will have a government shutdown, we will have a military budget cut off, but we’re going to get a lot of price inflation.
We’re going to get a lot of shut down businesses. And I’m expecting, let me just be on record, I’m expecting in the coming year we will see a rather powerful inflationary depression. I think it’s already started. I think a year ago we had about a -8% -10% recession. Anyone who thinks that price inflation was only 5% or 6% shadow government statistics has pretty good information on inflation, joblessness and economic growth.
Whatever they exaggerate downward for price inflation is what they exaggerate upward for economic growth. And that’s about pretty steadily an 8%. The CPI is 8% higher than what they say. All right, the treasury bond market is going to lock up. We’re going to see some big banks prevent withdrawals. We’re going to see a primary bond dealer enter failure. That’s a bank, usually at Wall street, and some of them are not really big.
A primary bond dealer, for those who don’t know, they are by contract required to buy all the treasury bonds that are not sold at the auction. And we’re not selling them at the auction. So the primary bond dealers are going to be stuffed to the gills and unless they’re handed money, they’re going to croak. Okay. We are facing a bond crisis, a credit crisis. We cannot any longer fund the US government.
We cannot roll over the last five years. We were forced to go to short term treasury maturity, I’m thinking for the last three, four, five years. And those typically are two year and five year treasuries. They’re maturing. We got to roll them over. We’ve got 7 trillion plus this year to finance Nino. Not possible. Can’t do it. Not even remotely possible. They’re going to have to print money and monetize like Zimbabwe and Chile did, with the same result, crisis, breakdown, shutdown.
And finally, the money in the big banks is going to be at risk. We have had hidden forces. Now, I believe working in the last, I don’t even know, 1224 months to prevent big bank failures. Notice eight months ago said we have unlimited funds to supply through FDIC. What she was saying is we’re not going to let the banks fail. We’re going to go unlimited. Well, this unlimited is going to become a common term because we need unlimited printing of money to cover the US government debt and the rollover.
A lot of people don’t even know what a rollover is. I’ll give you an example. Part of the 2021 financing of the US debt was done with two year treasuries. Let’s just say 800 billion was from two years ago. With a two year treasury, it’s matured. They got to do it again. They got to refinance the same 2 trillion. We had to go to short term. Now we’re going to pay the price of being unable to finance the short term.
The rollover is a killer. And in the commercial real estate, rollover is a killer. I have a contact in Dallas. He has a friend with 50 million stake in a gigantic property, like a big high rise office building and three other smaller buildings. And there are four of the men, and they had $200 million stake. My client’s friend had 50 million. They could not roll over the mortgage.
They typically are seven year mortgages. Commercial. They handed in the keys. My client’s friend lost 50 million equity. This is what happened. Equity, not 50,000,0050 million equity in a big commercial property, high rise and other buildings, the whole 200 million equity vaporized, taken by the banks. Okay, there are going to be lots of stories like that. That’s a commercial real estate argument. I’m going straight to the big problem.
Let me point out something that happened four years ago. It’s about 2018, maybe 19, I think, 18. General Electric, their corporate bond got downgraded. General Electric, okay. They were considered for the entire previous 15 years of the newsletter I started in 2004. Nino General Electric, GE corporate bonds were the bellwether, the tip top quality. And in five years ago, they got downgraded to junk. Okay. That told me that all the corporate bond market in the United States was junk.
All, okay, now we’ve got it coming to the top. The treasuries, U. S. Government debt. We’re not going to get out of this with our skin intact. It’s going to get burned or ripped off, I don’t know which. Now I know how they have reacted. Every time in the past. They borrowed from trust funds, and they’re trust funds that you don’t even know the names. Of course, you know the Social Security trust fund, but there are many other trust funds they’re going to borrow.
But they’ve already done that. They’re going to borrow them, they’re going to run out. They’re going to just have to print money, and it’s going to become well known. There are a lot of indications that the August and September treasury auctions did not go as well. And if you look at the tick data, treasury investment capital tic data, you will see a big bulge in all the little countries that are friendly to the United States and England for treasury holdings, and I think I call them the Heidi holes, handing money to, like, Cayman Islands.
And they’re buying a bunch of Treasuries and it shows up on their balance sheet. But guess what? In two months, it’s gone. Where’d it go? Went right back to the buyers. And we’re having a hard time. I got a dilemma for you, Nano. When this whole system goes, when it’s done, which it’s already ending right now, what’s going to happen with all the wars? They’re not going to be able to finance wars.
We’ll talk about that on the back channel. Yeah, okay. But let’s just say that we might actually be seeing the end of war because it cannot be financed publicly. If they had to finance their own wars, they’ll stop their wars. They want us to finance their wars. They want a bankrupt entity to finance their wars. I got it on good authority because they see what’s coming. Everything’s getting stolen.
It’s not nailed down. And gold right now is skyrocketing. Correct. It just shot up in silver. Silver and gold. I wouldn’t say skyrocketing, but it shot up and made a big bump. It’s starting to move in a very strong and healthy positive way. And, Nino, it’s really not that complicated. The gold market and the bond market, see what’s going on. Treasury bond default. Just imagine 200 countries, and 20 of them are rather large countries.
They’ve all got treasury bonds for their forex savings, for their base of reserves, their savings accounts, the basis for their country’s monetary and bank system. They’re all swapping from treasuries to gold. They’re all. It’s not just the BRICS, it’s Japan. Japan is acting like a BRICS nation. Nino, they’re de dollarizing and they’re not asking for BRICS membership. The whole world is switching from bonds to gold. What’s your thoughts on the Argentina president? He came in, looked very promising to a lot of people and then I’m hearing, and I haven’t been able to validate this, but I’ve heard on many forums that he switched back to the dollar.
Did he do that? Argentina? Yeah, and that’s a good thing. Explain to me that’s he went from something that’s worse than the dollar to the dollar to find less instability. The argentine peso, it’s down like, I don’t know, I think it’s down about 80% in the last ten years. And they banned usage of the dollar in their banking system. They ordered their citizens to get out of the dollar and to get into the peso.
So this is a good thing. Yes, it’s good. Don’t think of it as going into the bad dollar, think of it as getting out of the bad peso. They’re getting out of the peso when they’re going into a transitional dollar period. And the period will be temporary and on the other side will be gold or some asset backed commodity basket, I don’t know. Argentina, they weren’t part of the BRICS.
Well, they were at the doorstep of joining the BRICS. And now Malay, it’s M-I-L-E-I Javier. Malay, I find him a fire brand. I get goosebumps when I read about him. I get goosebumps when I listen to him. I listened to in Spanish and I understood three quarters of it. It was a fiery speech about how their banking systems and leaders betrayed their country, betrayed the argentine citizens. So on a temporary basis he’s going to go to the dollar, Nino, so that they will not have this 80% price inflation.
So they can only have like 20% price inflation with the dollar. They’re going from really bad to just simply bad. And I know a lot of people, he’s throwing them a life raft, he’s throwing them a temporary life raft in the form of a transitional solution. And believe me, if they close down their central bank as he wants to do, if they don’t get into the bricks, if they just mend their own fences and deal with their own problems for the next six to twelve months they’re going to be announcing a gold standard.
They’re trying to do a transition from peso to gold and they can’t do it quickly, so they’re going to do it slowly through the dollar. They’re using the dollar as the vehicle. It’s a transitional period. Yes, transitional solution. And I don’t even regard their withdrawal from the BRICS as bad because they need the dollar to avoid their own tremendous crisis. They need the dollar. It’s temporary. And when they’re done and they make some new plans, they’ll join the BRICS, maybe in a year, maybe in 18 months.
I’m not worried about Argentina for the BRICS. I’m not worried about them with respect to the dollar. The whole world that we know on planet Earth is talking about de dollarization. It’s now a regular term in U. S. Financial and western financial press. What is de dollarization? Movement away from the treasury bond as foundation into gold. When they de dollarize, where do they go? When they sell the dollar, where do they go? When they remove a system that’s dollar based, where do they go? They go to a gold system.
They don’t want to say gold in Wall Street Journal, so they say de dollarized. The whole world is moving to the gold standard. There is a corollary in the austrian school of economics, and that is like antikesian. It says once you fail with a paper based currency system, you must go to a metal based system. You can’t go to a better paper based. You’ve wrecked the entire paper based system.
And when you go to a hard asset, they sometimes call it a hard asset. Not just gold, but it could be gold, silver, copper, structural metals, foodstuffs, lumber, coal and crude oil. A commodity basket. We might see Russia going to a commodity basket for a very simple reason. They got such a big commodity basket. They’re ranked one, two, and three in almost every single commodity category, like ten.
Strontium, aluminum, zinc. But now they’re getting in top ranking for wheat, corn, and soy, because they have been making agricultural gains in the last 25 years like we could not even imagine. I mean, like something twice the size of the entire midwest. That’s what they now have turned into an agricultural village. Whoa. It’s like ten Us Midwest states. They’ve turned it into an agricultural powerhouse, output center, and it’s entire cities.
They got to support gas stations and uniforms and boots and things like that. Coveralls, not military uniforms. I’ve seen pictures of it. It’s just to support the agricultural industry. As everyone’s progressing into this, it seems to me that America is just in free fall right now. Complete free fall. And what is that going to look like in the year to come? I mean, is it going to happen? Do you think it’ll happen before this 24 election? Do you think it’s.
Can we talk about that on the back channel? And then I want to talk about what you just said about the man in Argentina, and then I want to talk about South America. What I’m hearing. I just had Foreman Mike talking about how Iran is buying up all the land in Venezuela, China’s moving in, and what they’re putting word is military bases. I mean the whole thing, the resources, the oil, everything.
I really want to go into it deep on the back channel. Are you able to do that, Jim? Well, I’m willing, but honestly, I don’t have a great deal of information. I have theories, I have speculation, and I doubt you have a great deal of information. I know you have some and you got a little more than I do, and that’s great. We can talk about that, but there’s a lot of distraction going on, as you say, and that’s basically what’s going on.
Venezuela is a very interesting story. I can say something that’s not controversial. It is the global center for what otherwise? Coltan. Coltan. C-O-L-T-A-N. It’s like a blue quartz, and it contains tantalum, a rare earth metal. It’s often called blue gold. It’s Venezuela and northern Brazil loaded with coal. Tan. What is that used for? Rare earth metals, cell phones, various different things. The rare earth metal, there are about five or six of them that are nobilium, tantalum.
I can’t remember all their names. Honestly, I got too much on my plate. I am really focused on the treasury bond issue, the challenges, and we can talk about some. Do you have any dates that we need to look at that are coming down the pipeline that we should be like? Okay, like what? End of December as we go into January. Anything like that? Anything that you could share with audience? I’m thinking we need to look at June to see if we got a bond default before June.
So that’d be the next marker for you, June. For me, it’s June. I don’t know or care about other people, honestly. I don’t get swayed by other people’s analysis because I find much of it of value, but certain elements not of value. And I trust my own sources and my own instinct. June is going to be a critical time without a bond default. Government shutdown and hyperinflation starting to become a term mentioned by people and the press.
I’m talking about double the price inflation of what we saw two years ago. I’m talking about 25% to 30% price inflation because nobody will. How much price inflation in America? You’re saying 20% to 30% price inflation by mid next year? Possibly, yes, because nobody will finance our debt and we got to print money to do it. And if we don’t print money, we got to shut down the government.
So it’ll be two bad choices, shut the government down or print money like you’ve never seen before. We’ve got to finance eight to $9 trillion in the next year. That means we need to finance four to four and a half in the next six months. That’s why I point to June 6 months. We’ve got to print money like we’ve never printed before, times three. And it’s going to have consequences.
And they’re going to say that it’s going to be all good and we’re going to manage it, but it’s not going to be sterilized. We can talk about sterilization later. I’m not talking about sexual sterilization. I’m talking about financial sterilization to avoid price inflation. And we cannot avoid price inflation. It’s coming whether we like it or not. It’s on its way. We saw supply side price inflation before.
Now we’re going to see monetary side price inflation with supply side. They’re raising rates, Nino, and they think they’re fighting inflation. You do not fight a supply side shortage with higher interest rates. You do not. You encourage business creation. They’re trying to use old methods that were purely monetary inflation effects. Now we got supply side shortages. We’re not addressing the supply side period. We’re interfering with it with higher interest rates.
But there’s a lot more going on behind higher interest rates. If we don’t raise interest rates, Nino, we get a bond default immediately. So they’re buying time. We are facing a bond default and we can’t avoid it. All the alternatives are bad. We’re going to print money. Here’s one really interesting basic reason why we’re going to print money to cover the debt. All right, let’s jump on the back channel.
Go to goldenhyphenjackass. com. Correct. Goldenhyphenjackass. com. I am the jackass. I’m the greatest jackass of them all. The greatest jackass of all time. Goldenhyphenjackass. com. Folks, pay Jim Willie a visit. We’re going to be on Ninoscorner tv right now. We’re heading over there to get more depth with this conversation. All right. Know got to get away from the fluff tube when we go into this stuff. So there’s a lot of questions I want to ask you regarding Argentina and what’s happening in South America.
Let’s just bounce back and forth and see what we can figure out. All right, Jim. All right, we take a 1 minute break. How do we do this? Sure. Yeah. .
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