The Heresy Financial Podcast

I have a brand-new podcast starting October 12th - Financial Heresy! This podcast will be retired and I will be launching my new podcast with iHeartRadio October 12th. Financial Heresy will be all new episodes with unique content, not repurposed from YouTube. Looking forward to seeing you there! Find Financial Heresy on iHeartRadio or anywhere you get your podcasts. 

Precious metals are going absolutely crazy right now with gold being up about 4% just in the last few days and silver being up almost 10% over the same time frame. This comes as a reversal of a recent bear market in precious metals, especially as central banks around the world have been tightening. But the question is, when do these bear markets end, when will central banks on average around the world pivot and start to ease again and then what's the best way to profit off of this new gold bull market?

It's commonly said that money is made during bull markets, but fortunes are made during bear markets. Why is that? It's because at the depths of bear markets, asset prices are at their cheapest. People have capitulated and investors, especially retail investors, individuals like you and me, have sold at the absolute worst prices have gotten out, are scared, and are willing to take subpar prices for the assets that they own. And here's the truth. There are some asset prices that are already there, and there are other prices that will be there soon. This is the time to keep your eyes open, have cash, be ready, because asset prices are getting to the point, if not already there, where we are about to see the lowest, they will be in a very long time. I'm going to give you a few tactics, strategies, tips that I'm using to watch out for when to buy and what to buy.

The United Nations just warned the Federal Reserve to stop raising rates, to pivot before it is too late. They are saying that advanced economies choosing fiscal and monetary tightening are hurting the most vulnerable economies. And there's still time for them to stop before tipping the world into a global recession. Unfortunately, the U.N. is wrong.

I've had a ton of you point out the recent drop in the reverse repo facility to me lately on Twitter, as we can see here. The reverse repo facility had a peak of about $2.4 trillion on September 30th, and it has significantly fallen off since then. On October 4th, sitting around 2.2 trillion. A lot of people have pointed out that that may be what is contributing to the drop in yields, the rise in asset prices over the last few days as well. I'm not so sure, we're going to dive into the detail. I don't think this is the reverse repo bailout that I've been predicting on this channel for a long time. I think that's still to come. Let's get into the details.

Right now, investors and markets are both banking on a Fed pivot coming sooner than expected. This is because of major indications of economic weakness around the world, including major banks like Credit Suisse being in major trouble. Because of this, markets have been pricing in a higher likelihood of a Fed pivot coming sooner, including stock markets starting to rebound heavily and yields being down. But I'm going to point out how the market anticipating and trying to front run this Fed pivot actually makes the Fed's job of tightening easier and means they can go longer without a pivot.

There's a lot of disagreement right now about the financial position and the health of Credit Suisse and whether or not they're about to fail and start taking down other banks with them and causing more and more problems. So, I'm going to settle the debate for you and give you the answer on exactly the position that Credit Suisse is in right now and what people should be concerned about, how far things might go before somebody like a central bank steps in.

Did you know that over half of Americans are stuck in credit card debt? According to a recent poll 60% of Americans have been stuck in credit card debt for a year, or longer. Let me be very clear with you. This is not the time to be stuck in credit card debt. Not when rates are rising, when liquidity is dropping, when the economy is rolling over, headed into a deep recession. And the people who have the power to turn the lights on or off are saying we are not making things easier any time soon. We are seeking unemployment. We are seeking a recession, lower demand, higher interest rates, economic pain to stop inflation. This is not the time to be in debt.

Is the United States currently being successful at inflating its debt away? Well, it depends on who you ask. If you look at standard economics, it would say that the government can borrow money. And then when it spends that money, as long as it spends it in the right way, that's going to stimulate economic growth. And then that economic growth will result in more tax revenues, meaning that that debt paid for itself, and then some. One of the byproducts of this is that prices go up along the way. And so many people say that the government can just inflate its debt away, and that's why it chooses inflation. But we get into a problem with economies when the public debt exceeds 90% of GDP. So where is the United States and where is it in the cycle of trying to inflate its debt away since it's got a lot of debt and we've got a lot of inflation. Which one is winning?

Is anything even real anymore? Well, it turns out that increasingly the answer is no if it is an official statistic or number published by any government organization, and that is especially true of the recent jobs report. In this video, we are going to look through a few key metrics that the government and the Federal Reserve are looking at in terms of jobs and where unemployment is currently at in the United States of America. We're going to show how the situation is actually a lot worse than they think and this is especially dangerous because they're using these job numbers to continue to tighten. So, they're saying the jobs market is strong so we can still combat inflation and continue to tight when in reality, the jobs market is probably pretty weak.

Breaking news, the UK is breaking! The UK just had a major move in financial markets with number one, the Bank of England reversing course, pivoting and now committed to unlimited quantitative easing, buying up as many government bonds as needed to stop the financial crisis that was unfolding within hours centered around pension funds, invested in government debt with massive leverage. This is all tied in as well to the tax cuts that were recently posed from the government that were causing a big strain on financial markets through increased borrowing costs to the government. And I'm going to explain everything that's going on right now and what might happen next.

The Bank of International Settlements just came out with a new way to measure the market conditions for key areas of financial markets, including the U.S. Treasury market. And what this indicator is showing right now is that the volatility and the lack of liquidity in the U.S. Treasury market is now worse than it was during the great financial crisis when Lehman collapsed.

Japan is in trouble. Their yen is collapsing as they are trying to maintain yield curve control. And so, they intervened to prop up the value of the yen for the first time in decades last week. Now, it turns out that the Federal Reserve may be assisting them. As Bloomberg points out, Japan may have a pile of dollars it can tap at the Fed's reverse repurchase facility, accessible by foreign central banks. However, I think what Bloomberg is talking about here is actually the opposite of what's going on at the reverse repo facility. There is not enough evidence that Japan has any significant amount of money with the Fed. Instead, it looks like the Fed is going to have to be actively assisting Japan with dumping those Treasuries, using the opposite the repo facility, specifically the one for foreign central banks.

The price of cars especially used cars, or one of those surprise things that went up in value during 2020 and continued to go up in value during 2021. It seemed like there was a mad scramble to buy any car you could at any price, and they just went up. In fact, used cars, outperformed things like Bitcoin, gold, stocks, and real estate. It was absolute craziness. So, the question now is, was that sustainable? Is that going to continue? And what is happening now, given the fact that many people are starting to talk about a sub-prime auto loan crisis or people are starting to be delinquent and default on their auto loans?

Interest rates have been skyrocketing recently because the Federal Reserve is not blinking in the face of struggling Americans. They're trying to crush the inflation monster regardless of how many 401ks they destroy along the way. This means that mortgage rates are going up; car loan rates are going up; credit card rates are going up. And key here, the United States government's debt interest rates are going up. But it's not as you might think, because that's making many people ask the question, how high can interest rates go before the federal government defaults and can't pay their bills? Well, the answer is really a different question. The question is not how high can interest rates go, but how long can interest rates stay high?

It's happening... maybe. Japan might have just started the global treasury liquidation. We've been talking a little bit on this channel recently about how the United States Treasury is the foundation of the entire global financial system. But what happens when you build your house on a foundation of sand? Eventually, the house comes crumbling down, and the way that starts in the financial system is by the world getting rid of Treasurys. Japan has historically been one of the largest treasury holders. They have not been buying them recently. And now, because of the problems with their currency, they've intervened to stop the collapse of their currency. And they may have just started at the beginning of the end of the current global financial system.

If you take money from the government in any form, whether that's Social Security, a pension or something else. You may very well soon not be able to receive those payments anymore if you do not sign up for the United States Central Bank Digital Currency coming soon.

The coming automation revolution will take your job. It is inevitable. It will take your jobs someday, as it will take everyone's jobs. But the flip side is it's going to make you wealthy. And I'm going to show you how.

Federal Reserve just concluded their September meeting, gave their press release, and Powell is increasingly sounding like the new Volcker. In fact, he said in the statement, “We will keep at it until the job is done, giving an echo back to Volcker, keeping at it”. Echoing the title of Paul Volcker's biography, ‘Keeping at it’, and Volcker's legacy of crushing inflation in the seventies by continuously raising rates until the job was done.

The White House just released a new framework, the first comprehensive framework from the government on its recommendations for regulating cryptocurrencies and advancing the research and development of a CBDC, a (central bank digital currency). You'll want to stick around through the end of this one. It has some scary recommendations.