00:00:54.100And they just proved our point. By this operation, they just proved our point because the rest of the world doesn't want U.S. treasuries anymore.
00:01:04.800China, the BRICS nations want to be the world's reserve currency, not the U.S. dollar.
00:01:09.360Why? Because when you have built in demand for your currency that we've had since in the 1940s under Bretton Woods,
00:01:17.240it made the U.S. dollar the world's reserve currency, meaning other countries needed to
00:01:21.900settle in the U.S. dollar so we could print, print, print like there is no tomorrow and
00:01:26.240there's still demand for your currency. This is accelerating at a rate quicker than what
00:01:32.140I think you and I even thought it would accelerate at. Because when you start to lose demand for the
00:01:38.680dollar and they're increasing the supply like there's nobody's business. This is what all
00:01:42.400this printing is about. You have higher supply, lower demand. It is going to devalue the currency.
00:01:49.380We go into an inflationary spiral, I think, like we haven't experienced before. Now, other countries
00:01:56.760have. Other countries go through inflationary depressions and recessions. Venezuela did.
00:02:03.700Argentina did. Weimar Republic Germany did. Now, I'm not talking about hyperinflation in America.
00:02:09.640I'm just talking about a scenario where you are going to lose demand for the dollar.
00:02:16.600We've got too much printing and it is going to be an inflationary time period.
00:02:21.360And this is why I think next year you're going to start to see interest rates rise even more, which basically impacts the bond market terribly, which is why Ray Dalio said this beyond the point of no return.
00:02:34.580We're past the point of no return, meaning when debt service payments squeeze out spending, like plaque in the circulatory squeezes out the flow of money, the flow of blood, it's the same kind of thing.
00:09:49.760If anything, they're too low pressure, though.
00:09:51.420You just need to get your silver and gold to get it right now.
00:09:52.940They sell it at wholesale. Great place to get it, best place to get it. Get yours right now, 720-605-3900.
00:09:59.780We're really proud to have it as a sponsor, but that's a side issue to the overall economic discussion.
00:10:04.160And it's basically a byproduct of, you know, we hate what's happening overall, but at least we should all get positioned to protect ourselves and our family with what we have to work with.
00:10:12.240So, Dr. Elliott, thanks for being here. It's all coming true, maybe a little bit worse than we even predicted because we don't like to put a bad spin on it.
00:10:19.260But privately, this is pretty much exactly what you said.
00:10:22.040I mean, you said it publicly, but it's not pretty.
00:10:38.320I mean, I don't think it's too late to pull out of Iran, but I think it's too late to actually save the dollar, sadly.
00:10:46.740I mean, the dominoes have already started to fall. And when you look at the cause and effect, right, we've talked a lot literally since February when this conflict started, the rising cost of oil, the inflationary pressures, that's going to cause yields to rise on the 30-year bond.
00:11:06.320So why does that matter? Right. So so when when yields rise on the bond, why to a slow down inflation be to attract more foreign capital? Right. So so if you have something that's not worth very much, if you have something where the propensity to pay off your debt is very low, you're going to have to entice people with a higher rate.
00:15:15.660Well, what comes next is just what we saw this morning.
00:15:19.260So the Treasury announced the increased size of nominal long-end liquidity,
00:15:25.060meaning instead of operations of $2 billion at a crack, $4 billion at a shot,
00:15:31.420they are going to actually start buying 10-year to 30-year U.S. treasuries. Why do they have to
00:15:39.060buy them? Because the rest of the world doesn't want them. They need to provide liquidity to the
00:15:44.560system when the rest of the world doesn't want it anymore. Well, where does this money come from?
00:15:50.480It comes from the Fed. How do they get it? They press the red button on the printing press.
00:15:55.200literally this is quantitative easing on steroids to try to save the u.s dollar but this is one of
00:16:03.660those weird circumstances where the medicine to heal the patient is is worse it's worse it's
00:16:11.840going to make matters worse and they just proved our point by this operation they just proved our
00:16:19.420point because the rest of the world doesn't want U.S. treasuries anymore, right? So what is the
00:16:26.620net implication of this? Well, let's watch a video from Ray Dalio, billionaire hedge fund
00:16:33.120manager, very smart guy. What does he think is the end result of this? Well, to be a spoiler alert,
00:16:43.240he thinks the same way that you and I do. He thinks we're beyond the point of no return
00:16:47.920economically let's just watch it's a short video and then we'll talk yeah here's here's a clip of
00:16:52.500here it is you've been doing a lot of work you've been busy with these five forces that have been
00:16:58.260shaping the global economy just to quickly go through them money and debt internal order and
00:17:02.400disorder power conflict acts of nature um and technology i want to start on that first one
00:17:08.580though because it's a point that you've made globally but here in the u.s seven trillion
00:17:13.260dollars in spending, but only five trillion dollars in revenue. Ray, are we already past
00:17:18.840the point of no return that the fact we have this dynamic means that some sort of crisis is
00:17:24.300inevitable? Yes, we're past the point of no return, meaning when debt service payments
00:17:31.040squeeze out spending, like plaque in the circulatory squeezes out the flow of money,
00:17:39.140the flow of blood it's the same kind of thing could be measured so we're seeing that happen
00:17:45.460and then there's a supply and a demand issue the supply of one budget deficit means that debt has
00:17:52.420to be sold and you have a supply demand issue and we could see it happening in the bond market
00:17:58.440and we could see that bonds have been a bad investment and that there's pressure in interest
00:18:04.920And there's borrowing. And that's one of the five factors, as you're saying. But that dynamic is happening. People are treating it like if it hasn't happened before. They don't understand that like plaque in the arteries, that it builds up and they have that exposure.
00:18:23.180so if anything today to viewers and listeners i'm not being alarmist enough everything kirk
00:18:30.160elliott's predicted and others have predicted is now happening the real aftermath and real
00:18:35.680effects of the straightaway moose being closed for 170 days off and on have not even hit yet
00:18:40.380um trump is legitimately trying to get israel to stop but every peace deal like we saw in syria
00:18:46.900gets bombed by them now they're bombing turkish military uh because they're at a meeting with
00:18:53.500syria about joining their nuclear alliance with pakistan this is this is off the races this is
00:18:59.660this is unhinged so what are the different scenarios we see in front of us i know they
00:19:06.120run from bad to worse i don't want to be a negative person but i think people deserve to
00:19:09.420know what they're facing so they can get ready i mean different scenarios are are simply interest
00:19:16.480rates keep going up the yield keeps going up if you look at what's happened recently the 30-year
00:19:24.200treasury this morning before we recorded this is at 5.2 percent it's the yield on the 30-year bond
00:19:31.200that's the highest since 2007 so but let's see how that's accelerated in just the last few years
00:19:40.740in 2021, September of 21, the yield is 1.89%. It has grown by 175% growth rate just since
00:19:52.100September of 21. So when that yield goes up so much, the demand is coming down. So why,
00:19:59.000what comes next? They have to try to bail out the US dollar because when you've got the yield
00:20:05.240that's growing that fast and the value of bonds goes down when yields go up. If Japan were to say,
00:20:12.060we don't want to sell our bonds today because we just don't. Let's wait till tomorrow. Let's wait
00:20:18.200till the next day. Let's wait till next week or next month. With yields going up every day that
00:20:23.000they wait, they actually lose money on their bond position. And that's not just Japan. That's
00:20:28.520globally. So there's this impulse to try to get rid of U.S. Treasuries sooner rather than later
00:20:36.280in a rising yield marketplace with the bonds. This is going to accelerate, Alex, the demise of the
00:20:44.900dollar. That's what's coming. And so the operation this morning that was announced by the Treasury
00:20:51.320department to bail out bonds is going to accelerate. That's very inflationary. And so I was
00:21:00.380watching stupid mainstream media news this morning and said, oh, these high yields, there's a pro and
00:21:06.560a con to it. The con is, boy, interest rates, the cost of debt, it's going to go up. What's the pro?
00:21:14.280That people's savings accounts, interest rates, they're going to get more on their savings
00:21:18.520accounts. That is one of the dumbest things that I've ever heard a financial columnist say,
00:21:23.820because the savings rate in America is 2.7%. People don't save anymore. They don't have enough
00:21:34.740money. What was it? The savings rate in April of 2020 was 31%. Today, it's 2.7%. People don't
00:21:45.920have money to put away in this economy. And at the same time, interest rates are going up.
00:21:52.940I mean, I look at this and I think people are really going to stop spending because they can't
00:21:58.860afford to, not because they don't want to spend, they can't afford to spend, which is going to
00:22:03.020impact the stock market. It's going to impact corporate America. It's going to impact the job
00:22:07.700market. So are we facing stagflation? Would you call it a depression? What is it? And then let's
00:22:12.620let's do a plug because you're the highest rate of gold and silver company out there now is the
00:22:16.060time you've been saying this for months and months and months when it raced up to all-time highs you
00:22:18.820said watch there'll be some corrections but after that you said i'm not sure how long it'll be six
00:22:22.700months whatever we're going to see explosion when the market realities come back about inflation
00:22:26.800and the rest of it but gold is you know obviously up over two percent uh just today if you look at
00:22:32.660the 20-year graph it went to all-time highs and dropped a little bit do you believe we are seeing
00:22:36.820the uh bottom of that correction on gold and silver or what do you think is happening
00:22:40.920I think we already saw the bottom of it. So if you go back to middle of July, a month ago, silver was $56 an ounce. Today, it's over 66. It's up 19.8% in a little over a month. Gold is up 13% since the middle of July. I say we've hit the bottom back in July.
00:23:26.280But you understand, I could go back three months ago
00:23:28.780and play you saying this and it would fit today word for word.
00:23:32.140You literally called this because of all the fundamentals.
00:23:35.000And as soon as you said the inflation comes home to roost, as soon as that's clear, you didn't think they could suppress it more than a few months.
00:32:42.520too. And God's just really blessed our company because we treat people like family.
00:32:51.480It's that simple. Now let's talk about the hard facts. We talked about the Iran war being Trump's
00:32:56.580Achilles heel for the economy, bare minimum, and potentially total regional war, world war,
00:33:01.560nuclear war. Now we've talked about the past. We predicted it all. It's here basically exactly
00:33:07.240as you said. We did different scenarios, bad to worse. We're about in the middle of that,
00:33:10.780kind of trending towards the worst scenarios. What are the real scenarios here? Let's just
00:33:16.000get down to brass tacks. So one of the biggest scenarios unfolding right now, like within the
00:33:24.160last week, is something that you and I talked about, Project Enbridge, a joint project between
00:33:30.660the BRICS nations, China, and the Bank for International Settlements. What it is, is
00:33:34.460digital payment rails to settle between countries digitally in pretty much anything.
00:33:42.020And let's quantify, I should have said this, if all this points towards the end of the dollar,
00:33:46.360which we used to go to war over to support, it's not like people running Washington are total
00:33:51.520idiots. Why? That's the first question. Sorry. That's an important question I've asked at the
00:33:55.140start of the show, start of the interview. Why are they doing things that will destroy the dollar
00:33:59.260and empower the BRICS and push us onto a new central bank digital currency when everything
00:34:03.100Trump said was about securing the dollar. Why are they doing this? Did Trump think it was a short
00:34:06.700term gamble to lower the dollar? He could bring it back. Is there still a chance for that? Go ahead
00:34:10.340and start over. I, I, I think it's kind of too late because this cycle has to play itself out.
00:34:18.400It's not that, that this current administration or any administration in America wants the dollar
00:34:24.260to be dead. The rest of the world does, right? And so China, the BRICS nations want to be the
00:34:30.280world's reserve currency, not the U.S. dollar. Why? Because when you have built-in demand for
00:34:34.740your currency that we've had since in the 1940s under Bretton Woods, it made the U.S. dollar the
00:34:41.800world's reserve currency, meaning other countries needed to settle in the U.S. dollar so we could
00:34:47.360print, print, print like there is no tomorrow and there's still demand for your currency.
00:34:51.780So what this Project Enbridge did is we're moving digital, Alex. Whether people like it or not,
00:34:57.240we're going into a digital world, whether it's central bank, digital currency or blockchain or
00:35:01.020whatever. Right. So. So what this does is it allows settlement in things outside of the U.S.
00:35:08.220dollar. And it's not just a singular choice. It's like, well, we don't want to settle in the U.S.
00:35:13.480dollar. Let's pick the euro or let's pick the yen or whatever you can settle in anything. So the
00:35:18.700competition to the dollar just went extreme number of choices, which diminishes the demand for the
00:35:26.840even more. Now, who basically said yes to this last week? Germany did. Germany said, hey,
00:35:37.600this Project Enbridge thing, these digital settlement rails, we'll settle in Chinese
00:35:42.400currency instead of the US dollar now. Germany did, right? So this is accelerating at a rate
00:35:50.240quicker than what I think you and I even thought it would accelerate at. Because when you
00:35:56.820start to lose demand for the dollar and they're increasing the supply like there's nobody's
00:36:01.480business this is what all this printing is about you have higher supply lower demand it is going
00:36:07.660to devalue the currency we go into an inflationary spiral I think like we haven't experienced before
00:36:15.720now other countries have other countries go through inflationary depressions and recessions
00:36:22.000Venezuela did. Argentina did. Weimar Republic Germany did. Now, I'm not talking about hyperinflation in America. I'm just talking about a scenario where you are going to lose demand for the dollar. We've got too much printing and it is going to be an inflationary time period. And this is why I think next year you're going to start to see interest rates rise even more, which basically impacts the bond market terribly,
00:36:51.400which is why Ray Dalio said this beyond the point of no return. So how do you fix it?
00:36:57.720Policymakers are going to try to fix this by inflating or dying, that they're in an inflate
00:37:03.240or die mode. This is what the Treasury Department's announcement this morning signaled. So what goes
00:37:09.600up during inflation? Gold and silver do. See, this is the thing. The war isn't over. The conflict
00:37:16.760isn't over in Iran. And I've said for months, once that conflict is over, you probably see
00:37:22.960silver at triple digits again within 60 days after that. Well, we're on that trajectory now
00:37:29.860to get there even with the conflict. Why? Because the narrative has shifted from this noise about
00:37:38.000inflation and interest rates to simply supply and demand. And we have to ask ourselves a simple
00:37:43.880question. Is the demand for AI chips going down? I'm not talking about AI stocks. I'm talking about
00:37:50.800AI as a function of life. You're not talking about the AI bubble. You're talking about the AI
00:37:57.580actual nuts and bolts of the hardware. The use of it. Right. You know,
00:38:02.600Anthropic and Claude and chat GPT. This is going to replace jobs moving forward.
00:38:12.740I mean, it's the creepiest thing in the world that they are doing stuff to make humans non-existent.
00:38:19.360I mean, in Denver, I know in Austin, you've got Waymos driving around with no drivers.
00:38:25.240It's like, okay, you don't even need Uber drivers anymore.
00:38:27.460I was in Miami not too long ago, and you've got these stupid little, like, cooler robots that go down the sidewalks so you don't need Uber Eats delivery people anymore.
00:38:39.980I drive by golf courses, and you don't see people anymore.
00:39:16.280It's to make people so dependent on government that they have no choice but to say, hey, look, if we're going to survive,
00:39:24.540If we're going to get any kind of benefits, entitlements, welfare, anything like that, universal basic income, we have to buy into their system.
00:39:36.280And the creepy thing about all of this is a lot of America is buying into that message.
00:39:43.340I mean, we talked about this two shows ago.
00:39:47.120So about a month ago, we talked about this, how when the Tea Party movement started on the right,
00:39:53.640It split the Republican Party between the RINOs and the Tea Party movement.
00:39:58.820Tea Party movement basically turned into MAGOT, where the left was more unified.
00:40:03.660Now the left is splitting, and you've got the Democratic Socialists and, like, I would call them your Kennedy Democrats, like the more moderate ones.
00:43:29.040In closing, you sent me some other graphs.
00:43:32.140Retail investors are rushing back into gold.
00:43:34.980Let's talk about Deutsche Bank becomes Europe's first non-Chinese.
00:43:37.640clearing bank why that's important and some of these other exhibits uh that you sent me
00:43:43.180again the moves it's making why is this important and then one more pitch for people to get into
00:43:48.420silver and gold right now like i said months ago people i'd only steer you where what i'm
00:43:52.320personally doing i would use the silver and gold being down to get in now well it's already going
00:43:56.840back up people are i believe really missing an opportunity now i don't know they can suppress
00:44:00.880it again for a few months i don't think so maybe they will but long term all the fundamentals are
00:44:04.480gold and silver, particularly silver. Yeah. See, over the last six months, you know, to address one
00:44:10.900of those articles that you had, gold and silver have consolidated. They came down after the January
00:44:16.600high. They went sideways. And companies, hedge funds, banks, they started saying, wow, we're
00:44:24.120going to get out for a bit. We have to we have to basically appease our shareholders at the
00:44:28.720quarterly meeting what's starting to happen now massive retail demand again for gold and silver
00:44:34.940now those same people who weren't buying it viewed this price as a bargain basement price
00:44:41.380and gold intake into etfs is growing rapidly so when you've got the retail sector that's now
00:44:50.500starting to do what central banks have been doing this whole entire time and that's what you explained
00:44:55.600Two years ago, you said the institutions are going in now, but when the general public and retail goes in, that's when the real rush starts.
00:45:01.940You believe that's starting to happen?
00:45:03.660I believe that's starting to happen because the inflows of ETFs, you know, GLD and SLV, that's where Wall Street sells gold and silver.
00:45:13.640Now, it's not physical gold and silver.
00:45:18.320People are looking at the news and they're saying, we've got to get into gold and silver.
00:45:22.780This makes sense now at these prices, and this is part of the reason why gold is up 13% since the middle of July, why silver is up almost 19% since the middle of July.
00:45:35.100We've seen the end of that consolidation, and it's starting to break out, right?
00:45:40.640And I think the acceleration of that breakout is going to happen because the demand for the dollar is going away.
00:45:47.240You referenced the Deutsche Bank-China deal.
00:45:49.820Well, that's Germany, you know, going into into bed with China and saying, we're not going to settle in U.S. dollars anymore.
00:45:57.540We'll take Remnibi. We'll take the Chinese internal currency instead.
00:46:02.320I mean, this is a big deal when you've got lower demand for the U.S. dollar and you've got now commodities getting back into the hearts and minds of the retail sector.
00:46:12.580people like you and me, not just hedge funds, not just central banks, not just big international
00:46:18.060money center banks like JP Morgan, Bank of America, HSBC and whatnot. All of these things
00:46:25.400are lining up at the same time to tell me we're getting out of this consolidation. There's a
00:46:32.640breakout that's about to happen. Sadly, there's a chart that I was looking at with the U.S.
00:46:38.440treasury yields where you break out of this descending triangle and that's where we are
00:46:45.020we've broken through that whenever you do that technically and we're we're measuring yields here
00:46:50.640the yields shoot up through the roof of course percent had to bail out japan because of that
00:46:57.580he sees these numbers he knows what happens technically and when algorithmic trading starts
00:47:03.020to kick in this is a problem right because we're going to have higher yields and lower bond prices
00:47:08.160and you've got now gold and silver breaking out the paradigm shift has happened and we get to
00:47:16.280play it out and so those of you who have had patience over the last since january 30th saying
00:47:22.900i know that this makes sense i know that this makes sense but boy gold and silver are just
00:47:27.480going sideways and not doing anything and you start to grumble and complain a little bit you
00:47:31.540know it's human nature but here's well you have people calling up hoping you die cancer and you
00:47:37.520You know, we always said, we're not perfect.