CHAIN REACTION – Is the Banking Crisis About To Expand? – Special Report w/ Mike Maloney

by birtanpublished on August 29, 2020

Right now we've only started the you know all of the the knock-on effects that happen from the pandemic and the shutdown of business this will go on it's a chain reaction and we are about to go into a banking crisis some time or another because you can't have everybody

Not paying their credit card bills not paying their rents their mortgages when everybody stops paying their mortgages then the banks have a liquidity problem they've got a crisis and when the when their liabilities exceed their assets

Then the bank is basically bankrupt we've got a banking crisis and there will eventually be a problem I'm worried about bailouts and bail-ins and a potential for a banking holiday hi this is a special report and I'm going to

Take you through a couple of things here this is pretty unrehearsed and I just threw it together at the last minute here this chart I just made this on the Federal Reserve's website and what I've done here is I've taken the federal

Government current tax receipts and I've overlaid them by indebt say indexing it to January 1st 2000 so the beginning of this century I've indexed them both together at a level of 100 and the other blue line here is the Wilshire 5000

Total full market cap index so it's the value of the stock market basically and what you see here is that before the year 2000 there wasn't a high degree of correlation here there were times when they would actually run the opposite

Direction so the stock market could fall but tax revenues increased and vice versa but then after the year 2000 very high degree of correlation as you can see though quantitative easing one and two did flow down into Main Street but

QE 3 was a gift to Street and there's other manipulations that have gone on since I'll update you on those some other time I've got a chapter I'll read from my new book but tax revenues have gone flat since 2015

And we have just entered a recession these gray bars are recessions the recession that we're in is the worst recession since the Great Depression and it's going to end up being paid depression I believe it'll be the

Greatest depression we have we've had a contraction of GDP and you don't the Fed does not update you on they don't tell you you've had you're in a recession until you've been in it for at least six months because they have to have two

Consecutive quarters of economic contraction GDP contraction and then about a month to gather gather gather all the data before they can report it to you so you see this core high degree of correlation here where the stock

Market drops and so do tax revenues and this is something that has just started in this century another thing that I want to show you before I get started here is the u.s. debt clock now you can go to US debt clock dot org o RG and you

Can take a look and when you roll over any of these things it'll tell you how it's calculated so this this area up here if you look at that when I go over one of these it tells you the data they're collecting and how they

Calculate this and so you can go to US debt clock dot o RG but what I want you to look at here is the total the u.s. national debt and it's at twenty four point seven trillion right now now just a few weeks ago this was at twenty three

Point it was at twenty three trillion and now we're up at twenty four point we're about to go 25 trillion it's just a few weeks that this has happened and then you go over here and this is the tax revenues so you've got the national

Debt and you can look at how these this is hundreds and hundreds of thousands here so four hundred thousand five hundred thousand six hundred and so on going up so every couple of seconds another hundred thousand dollars

Of debt then over here you this is a this is counting down so 999th out ninety eight ninety seven ninety six is ninety five there goes ten thousand dollars of revenue $10,000 $10,000 more ten thousand dollars more and so this is

About to roll over again so there goes a hundred thousand bucks of tax revenues so the deficit is exploding because tax revenues are falling and you know this comes at a time when when they're piling on all of the deficits spending on top

Of falling tax revenues and this is exactly what I have been saying would happen that in the next market crash tax revenues would shrink that would contract dramatically and the deficits would explode and we were already

Running silly deficits so I'm going to read to you from my book guide to investing in gold and silver and this is the very end of the book it's the 2015 update I read part of this once about a month ago so some of you have already

Heard this and a lot of you have downloaded the book and read it I hope you enjoyed it so this is the 2015 update the thirty to forty year world monetary system cycle when I was writing this book I accidentally discovered

Something amazing I put every stock market crash and economic crisis I could identify into a spreadsheet looking for cycles and something astounding lept out at me I tried to do further research on it but nobody to that date had written

On the topic I had discovered that every thirty to forty years the world had an entirely new monetary system and I had been I've been lecturing about it ever since there was the classical gold standard

Before World War one the Gold Exchange standard between the wars the Bretton Woods system from World War two to 1971 and the global dollar standard from nineteen 1971 until today the reason there have been so many monetary systems

Is that they are all man-made and not a product of the free market because they cannot possibly account for all of the forces in the free market they build up imbalances and pressures develop stress cracks and then implode while they are

In the process of imploding there is always an emergency meeting of Treasury secretaries finance ministers and economists to hash out a new world monetary system there was the Genoa conference of 1922 the Bretton Woods

Conference of 1944 and the Misses and the Smithsonian agreement of 1971 all of the economic crises market crashes and upheavals since the year 2000 are just the symptoms of an aging global monetary system that is about to implode before

The end of this decade the Japanese yen the Euro or the US dollar will start to collapse and that will threaten all the other fiat currencies which could start falling like dominoes mark my words there will soon be an emergency meeting

Of the g20 finance ministers or something like that to hash out a new world monetary system it will just be history repeating but just like before it will be repeating with a twist only this time the twists will be huge we

Stand atop a massive bubble created by Alan Greenspan and Ben Bernanke's reckless and completely unprecedented economic meddling and are now staring into a deflationary abyss I look back at all of the economic crossroads and

Wonder about the IFS if only Alan Greenspan hadn't created the Nasdaq bubble my meddling with bank liquidity there wouldn't have been a crash in 2000 if only he had allowed the crash to continue until it was done and allow the

Free market to clear out all of the excesses and imbalances by just letting it work we would have had a healthy recovery if only he hadn't goosed the economy and kept interest rates artificially low

Creating a real-estate bubble if only Ben Bernanke had not committed the biggest economic crime in history when the real estate bubble popped by meddling with the currency supply so much that it has created the greatest

Wealth transfer in history thus far from the middle class to the super-rich and Wall Street elite this was the single greatest theft in history but it's nothing compared to the wealth transfer that is yet to come

The dangerous fog the financialization of government f OG we are in completely uncharted territory the world's central banks are hyper inflating their base currency supplies while trying something that has never been tried before in

Human history negative interest rates we are driving at 100 miles per hour in the fog recently I overlaid a chart of the stock market with a chart of the US federal tax revenues and an alarming fact stuck

Out at me I had discovered the financialization of the US government before the year 2000 if we had a recession and the stock market fell tax revenues would just fall a tiny percentage or just go flat but since the

Year 2000 federal tax revenues rise and fall with the stock markets in the crash of 2000 the market fell by more than 20 might by more than 45% and tax revenues by almost 20% in 2008 the stock market crashed by more than 50% and federal tax

Revenues fell by 28% this means that from now on because of the crushing debt and future obligations the Federal Reserve and the government must come to the rescue of Wall Street every time there is a stock market crash or risk

Their own demise remember that in order to levitate the stock markets from the crash of o8 it took a 400% increase in base currency each time they do this their power is diminished so the next time we suffer a

Downturn they aren't going to get the same economic pop from creating another three point two trillion in the next crash it will probably take a similar percentage increase or more but this time instead of starting from a base of

Zero point eight trillion we're starting from a base of four trillion a 400% increase would mean the creation of 16 16 trillion which would bring the total monetary base to 20 trillion the problem is that according to the Federal Reserve

M2 currently stands at eleven point eight trillion well it's now about sixteen trillion something like that fifteen point eight something like that so the next time the stock market crashes in order to save the government

The Federal Reserve may have to create more currency than currently exists and that my friend is the hyperinflationary end to our economic roller-coaster ride when a wealth transfer such as this is perpetrated by the central bank's

Governments and the financial sector to enrich themselves it's nothing but legalized theft when a private investor takes action to protect themselves from this theft by investing in gold and silver it is not only moral but

Admirable and my bet is that the honest precious metals investor will be rewarded with gains that will overshadow those of the thieves this book was written with the hope that you not only survive the economic storm but thrive on

It the title guide to investing in gold and silver suggests big gains in personal wealth and that was the point of the original book but the 2015 update however is written in the spirit of the

Book's tagline protect your financial future thanks for reading my book always do your best to protect your financial future and good luck to you now I want to show you a couple of other things

That you saw the US debt clock and it's just going ballistic while tax revenues are falling and but if the stock market crashes this all gets worse and right now we've only started the you know all of the the

Knock-on effects that happen from the pandemic and the shutdown of business this will go on it's a chain reaction and we are about to go into a banking crisis some time or another because you can't have everybody not paying their

Credit card bills not paying their rents their mortgages when everybody stops paying their mortgages then the banks have a liquidity problem they've got a crisis and when the when their liabilities exceed their assets then the

Bank is basically bankrupt we've got a banking crisis and there will eventually be a problem I'm worried about bailouts and bail-ins and a potential for a banking holiday in which case you probably well I've got some cash at home

You know I try to keep enough to get through a couple of months if need be and so when this happens there's going to be massive massive currency creation if they have to bail out the banks again you know the last time around if you

Look at the reports there was somewhere between 11 and 23 trillion created temporarily and then about three point two trillion stayed in excess reserves for a very very long time and then they started trying to drain that and we went

Right back into this crisis now I've got a few examples of some bills here this is a one dollar zimbabwe note and this is from 2007 so you is a picture of it and you can see that it's from 2007 and this would purchase

Something in 2007 now rent when Rhodesia became Zimbabwe the Zimbabwe dollar was more valuable than the US dollar I believe each Zimbabwe dollar would buy one dollar and 52 cents worth of US fiat currency and so this is 2007 and one

Dollar purchased something I've got I've got quite a currency collection and I've got several of these and then a year later in 2008 this 100 trillion dollar bill would not purchase anything in fact they never even I I purchased 100

Quadrillion of these I purchased a stack of a thousand 100 trillion dollar bills and I used to give them away at conferences I used we used to ship each order from that was over a certain value a free book and one of

These as a bookmark and but this is one year later and the reason I was able to get a brick of a thousand of these for you know I can't remember what it cost me but a thousand one hundred thousand dollar bills is because they never

Entered circulation by the time they were done printing them in Germany and flying them to Zimbabwe it had they had already lost all of their value and it's just one year after a one dollar bill would actually still purchase something

And I have a 50 million dollar Zimbabwe note a 100 million dollars in Bob way note and a 500 million dollar zimbabwe note and these are just being there they're just adding zeros like month after month after month and that is what

Happens when a government starts to do a bunch of deficit spending funded by just printing currency now lastly I want to take you back to this chart and you look at the gap between here and you don't see the tax revenues this you know this

They don't update this data this is probably like quarterly data on the tax revenues I'm not sure and the the federal the Wilshire 5000 this is weekly data here and so you see the current the stock

Market crash that we've been through but what you don't see is the fall in tax revenues and this is going to get pretty vicious coming up and then if we have a banking crisis that is going to cause a further stock market crash but with

These tax revenues falling they have to create so much currency that there really isn't enough market for the bonds that they normally buy to create currency remember the central bank's counterfeit currency into existence and

Then to get that currency into circulation they buy something and usually what they buy as a bond but they will be buying stocks they'll be buying a whole bunch of different stuff and we in this next crisis I'm expecting that

Eventually they're just going to start monetizing debt directly meaning by it buying the bonds directly from the Treasury funding the deficits well that is nothing but running the printing presses and this is a wealth transfer

One of the very first experiments with fiat currency in the West was part of John Laws hyperinflations that he caused in France and he they stopped using money gold and silver and they started using fiat currency and they ran the

Printing presses to cover the government's budget and it pushed them from 1720 to 1722 they went into these huge this huge hyperinflation a few years later an economist named Richard Cantillon started studying this and he

Found that when you create currency wherever that currency is spent first this is called the Cantillon effect that is blown into a bubble that is the thing that goes up out of proportion from the rest of the economy well I don't think I

Haven't read his work directly but I don't think that he found that it was actually stealing wealth from other sectors of the economy but that's where this brand-new currency that is whipped up out of nowhere gets

Its purchasing power and thus it transfers wealth from everybody else to whoever is getting that currency first if they're buying bonds and if they're buying stocks it means that the stock market will eventually after this crash

Turn around and go up and when it does it's going to be transferring wealth from you and from me and bestowing it on people like Jeff Bezos and Bill Gates and these guys have done a great job at what they do so I'm not deriving them

But they will be in receipt of stolen property wealth purchasing power stolen from the average person that is is holding dollars and dollar denominated assets that have not risen to keep up with whatever is going into a bubble

Which would be this stocks I mean in this crash of o8 if you look at the stock market amazon stock is up thirty four times and Microsoft is up more than ten times and that transferred wealth from the rest of society to Jeff Bezos

Making him the world's first cent a billionaire and Bill Gates making him the world's second cent a billionaire so it creates these billionaires right and left anybody that derives the vast the a large portion of their net worth from

The stock market it makes them wealthy at everybody else's expense but it's not their fault it's the world's central banks acting as a bunch of reverse Robin Hood's I want to thank you very much for watching and we'll see you next time

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