➡ In 1981, the debt to GDP ratio was at a low point, allowing for high interest rates. Today, however, the ratio is near an all-time high, making it impossible to raise interest rates. This situation is leading to rising consumer prices and an increase in the value of gold. The author predicts this will be worse for the dollar but beneficial for gold and silver holders.

Something’s not right, too much time has gone by. Harry, come on, press that button! What about the cross the threshold? Come on, Harry, press the button! Just one more minute! Press the button, stamper! Press it! Hey guys, Raf here from The Endgame Investor and today we’re going to talk about 1980. A lot of people comment on the content that I put on this channel and on the substack at endgameinvestor.substack.com. Subscribe today for a comforting trip into the endgame with the guy who has his finger on the meteor that is about to hit the planet.

But anyway, people tell me you can’t compare to 1980. That’s not fair. That’s when the Hunt Brothers bought all the silver and that’s why silver had $50 because of the Hunt Brothers. It had nothing to do with them. Maybe it had half a percent to do with them. Very, very little. This is one of those things where the mainstream media attaches itself to a certain narrative to hide the fact that the money was collapsing and blame it on two guys who were shipping silver in from Switzerland on airplanes. I’m sure that affected the price somewhat, but the fact is that the dollar was in total freefall and the Fed was in a panic.

But the people that criticized me and say, well, you can’t compare to 1980. You can’t just use 1980 as a metric and then imagine that gold and silver are going to go back to where they were and use all these ratios to say, what’s the 1980 price in 2025? Blah, blah, blah, blah, blah. Well, they’re right. They actually have a point. It’s not fair to compare to 1980 because this time is going to be a lot worse. Oh, gosh, you know, I’m not much on speeches, but it’s so gratifying to leave you wallowing in the mess you’ve made.

You’re screwed. Thank you. Bye. He’s right for the dollar, but better for gold and silver and better for stackers and better for the end of the Fiat monetary system. You know, 1980 was pretty good for the end of the Fiat monetary system, but it wasn’t good enough because it kept going and it’s still going today. But this time it won’t. And here’s why. What are the main differences between 1980 and now and why will the dollar necessarily necessarily that’s, you know, a relative term. It’s not really, but it’s not a good term to use in these types of content videos.

Why will the dollar probably collapse entirely this time when we reach 1980 conditions when it didn’t in 1980? Well, let’s go into that right now. And by the way, in the description below and mention the end game investor and you can take your golden silver and you can put it in a dirty man safe. Use the code end game 10 and check out for 10% off. Low tech is good tech. High tech is dangerous. And so here we have a chart with three colors, blue, red, and some kind of yellowish, greenish, orange, whatever blah that is.

You can tell me later in the comments how stupid I am at colors, but you know, whatever my eyeballs are my eyeballs. What can I do? I think you might be colorblind. You can’t fly jets if you colorblind. So this one, which I think is the red one is the US inflation rate. This one, the blue one is the gold price is not exact. And this one over here, this wobbly one is going down over here. That is US interest rate, meaning the fed funds rate. Now what was going on here in 1980? What was going on was that interest rates were going up and up and up and up and up because the US inflation rate, the inflation in quotes, the inflation rate, meaning consumer prices were rising.

They were rising and rising and rising. And so the fed was raising and raising interest rates, but not quite. We’ll go into why not quite. That’s not what was happening in the next slide. This was a situation where interest rates are rising. Gold was rising. The inflation rate, the consumer price inflation rate was rising. And then you have this period here where they were cut, the interest rates were cut back down here to whatever that is, I think 5%. And then they were jacked right back up to about 13, 14% right here. And we’ll see exactly why this was in a second.

But you can see here that the fed was trying to quash consumers’ prices, not exactly consumer prices. We’ll see why in a second. They were trying to quash something else. And as they were doing that, finally, when they got control of the US inflation rate, when the red line started going down, that is when they consistently started cutting rates over here in this greenish, yellowish, whatever line that is. And you can see here that the gold price was falling with it as well. What I’m trying to say here is that back in 1980, 1981, the fed was raising rates, trying to quash consumer prices.

And only once they accomplished this goal and they saw the inflation rate was falling consistently, only then in 1981 did they start cutting rates on a consistent basis as consumer price inflation was falling, as the acceleration consumer prices were falling. So in other words, the fed already had control of the inflation rate when they started cutting on a consistent basis. That’s what happened in 1980. And that is why, one of the reasons why the fiat monetarism did not end in that year. This is not really a chart. This is a transcript.

I will give you the link in the description below as to exactly where you can find this thing. And it’s on page seven of the PDF that I founded on at the Federal Reserve’s website. This is the transcript of their policy decisions for November 18th, 1980 on page seven. This is the Federal Reserve. And as I read it, you’ll understand why I am dictating this to you. According to a staff analysis says the Federal Reserve Board, the demand for money had been quite strong in recent months because recovery in economic activity and in nominal GNP, not GDP, GNP, slightly different, had been much larger than anticipated.

Growth of transaction balances was projected to slow significantly over the remainder of the year, in part because of the lagged effect on the demand for money, of the sharp rise in interest rates over recent months, and in part because of the apparent weakening of the recovery in activity. In the committee’s discussion of policy for the period immediately ahead, the members generally favored pursuit of a sharp reduction in monetary expansion from the rapid pace of recent months. And so if we go back to this chart over here, this is November of 1980 when they started to praise rates again after cutting them over here.

This is 1980s around here where I’m circling when they started to raise rates back up to the maximum around 15%. Why did they do that? Because they saw that the monetary aggregates were rising at a faster pace than they wanted. The monetary aggregates is the M1, M2, M3 money supply. This is back at the time when the Fed was actually trying to control inflation in a classic sense. Inflation meaning the amount of dollars over the gold supply, how much the monetary aggregates are actually rising. That is inflation in the classic sense, just as they change the inflation to the effect of inflation, which is the effect on consumer prices, just as they change the definition of vaccine to what it was before and what it is since COVID.

I’m not going to go into that now, but it’s the same kind of Orwellian nonsense. But this is back when the Fed actually was not actually fighting inflation but trying to control inflation, meaning the actual monetary aggregates, the money supply numbers, not the effect on prices. They didn’t care, not that they didn’t care. It wasn’t their primary goal to change the effect of prices of consumer prices. They knew that if they attack the monetary aggregates and control the expansion of the monetary aggregates, they would by extension control consumer prices, which they did in the end, which is why we still have a monetary system as it was in 1980.

So basically at this point, the Fed is jacking up interest rates in order to control monetary aggregates. And we can see here by this chart, when they hike into the maximum exactly when this is, I think this is early 1981 or something like that, once they see that the monetary aggregates are within the growth ranges that they prescribe, then they get control over consumer prices over here in the red and they get control over the gold price. But this is of course not their primary goal. They want to control the monetary aggregates, which will control the consumer prices, which will also control the gold price by extension.

And then they start cutting rates once they see that this is under control. The other reason why this is not a 1980 situation is that you can see the debt to GDP ratio. I know GDP is fake, but this is still a general relative number that does convey some information. The debt to GDP ratio in 1981 when interest rates were at a maximum was 31.8%. This is, I think, an all-time low since Andrew Jackson, maybe. Maybe I’m exaggerating that. I didn’t look into the 19th century. I can’t find statistics for debt to GDP ratio in the 1800s.

But you can see that this is the lowest debt to GDP ratio. This is precisely when gold was topping and when inflation, consumer price inflation, was topping out. This is why they could jack up interest rates so high because the debt was so low about comparison to any other year from World War II, at least before World War II, the Great Depression, until now. That is why 1980, the dollar survived that turbulence. But now, of course, we are at 120% or whatever it is, the very, very near an all-time high in debt to GDP.

There’s no way that they can raise interest rates now, which is why they’re cutting it, and they’re cutting it into rising consumer prices. You can see here this is the chart of the interplay between the U.S. inflation rate, inflation, I mean in quotes, not really the inflation rate, but the consumer price acceleration rate. And gold you have here, I don’t know why it’s not in gold, what is that gray or green or whatever the hell it is. And you have here the blue U.S. interest rate, the federal funds rate. And you can see here that we’re still at above 2.5%, close to 3% in the U.S.

inflation consumer price acceleration rate. And the interest rate has been being cut since 2024. You can see gold is rising because of that or in tandem with that. So now we are in an environment where first of all, the Fed is going to cut into accelerating consumer prices, and they’re going to cut into an accelerating gold price. That was not the case in 1980 at all. So people that say you can’t compare to 1980, this is not that situation, stop using those ratios. I agree. This is going to be much worse for the dollar, and it’s going to be the end of it because the debt is so much higher now.

And unlike 1980, when they were cutting into a falling consumer price inflation environment, now they will be cutting into a rising consumer price inflation environment. And while debt to GDP was so much lower in 1980, it was lower than any time before World War II. Since the Great Depression, now it is at an all-time high. There is nothing they can do. They have to cut into rising consumer prices. Because the debt is so high, we’re in 1980, they didn’t have to do that. And that’s why they will not this time. So forget about the Hunt Brothers.

The endgame is coming. It is coming soon. And this time is going to be much worse than 1980 for dollar holders and much better for gold and silver holders, because this time the gains of 1980 will be held and exceeded. And if as the endgame approaches, you appreciate some spiritual lessons in money and the interplay between God, religion and money and economics, check out my Patreon at patreon.com slash endgame investor for as little as $3 a month. I’m really not trying to make any dollars or money on this. I’m just trying to spread spiritual messages and avoid those who are just trying to mock and make fun and all those other things.

So I have to charge a nominal fee. And with that, I’ll let you go and have a good endgame. [tr:trw].

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