DON'T CALL THIS MMT: But if it Quacks Like a Duck...HEADLINE NEWS with Lynette Zang

DON'T CALL THIS MMT: But if it Quacks Like a Duck...HEADLINE NEWS with Lynette Zang

Show Video

oh oh i'm sorry i just feel so bad for these central bankers that are losing choices but don't worry i think they have some other ideas coming up [Music] i'm lynette zhang chief market analyst here at itm trading a full service physical gold and silver dealer really what the specialty is is to help people get prepared to sustain their standard of living and be in a position to take advantage of opportunities that present because i don't know about you but things are heating up and heating up and central banks are running out of options after all they've been zero bound and their balance sheets are huge but let's talk about that because there's a really recent report from the imf just came out the other day that i want to show you but first in kind of like let's all help each other learn remember i've told you right along that there's china is really teaching the world the central banks the governments how to control the population and whether or not you realize that our options and choices have grown more and more narrow over that time and what have we taught china well china can consider u.s style qe [Music] well okay just print print money modern money theory even though they don't admit to actually doing it this is really what the central bankers have been doing since 2008. modern money theory can inspire china to make sure central bank easing supports government spending except what they don't tell you is that every single time no which one's that one every single time they do this whatever is out there loses value but hey insanity's doing the same thing over and over again and getting the same results you know are we going to get different results probably not but they're going to try to do that to boost economic growth all they will boost is inflation the unconventional school of thought which has become convention really argues that countries borrowing in their own currencies like the us don't face hard debt limits because they can't go broke central banks should print money to pay the debt interest proponents say what say you i say nay this is what we've been living through the deficit cut reflects old-fashioned financial thinking wow you should balance your budget how about you and i just take some credit cards and go out and spend and spend and spend and then when we've maxed out those cards we could tell the credit card companies we're just doing what the central bankers are doing that's old-fashioned thinking that you think i have to pay that bill my goodness in reality china is already transitioning to functional finance where fiscal spending is set based on the economy's need instead of expected revenue let's see i have heard my kids say many times that they needed a new bike or they needed a new toy do you really need it or was it that you wanted it you need food water energy security barter ability wealth preservation community and shelter that's what you need but forget all of that because as we know it is very easy to spend other people's money and when governments spend taxpayers money that's exactly what they're doing and it's very easy thing to do now i have to i have to tell you this is probably a mistake juliet here but i got the newest member of our security team because you know that's a big one and i she wanted to come in and sit with me but she's kind of making noise are you coming over here juliette juliette here here okay so me meet the newest edgar's crawling meet the newest member of our team little juliet she is a little six-month-old great dane so she's not so little 67 pounds but she's a very good girl most of the time not all the time yet most of the time okay so this is functional finance forget deficits who cares except here's the problem whether you are a a government a corporation or an individual ultimately the laws of finance or actually nature's law of economics it always ends up the same way you can't just create something new or spend this much money and expect everything to be hunky-dory nothing's going to change are you kidding but don't call what we're doing here mmt modern money theory however i really do believe if it walks like a duck and it talks like a duck and it's and it lays eggs like a duck yeah it's probably a duck but since they're running out of tools let's create a new one now we've kind of been talking about this for a while but don't call it mmt let's call it outright transfers so a lot of people have asked me how the central bank will get the cbdc's into the people's hands and this is actually perfect for that this paper argues that in reserve currency issuing economies at the effective lower bound in other words with zero interest rates that's what effective lower bound is outright transfers from the central bank to households are both more equitable oh see those transfers are more fair and more effective in achieving monetary policy objectives than asset purchases which they've been trying since 2008 and it hasn't really stimulated the economy or negative interest rates which they've also been testing since 2009 so they're admitting that these things aren't working wow that's pretty amazing so now we're going to try something else with outright transfers or o t it shows that concerns pertaining to central bank's policy solvency and equity positions that they create these things out of thin air can be addressed through a careful assessment of a central bank's loss-absorbing capacity it's really all based on confidence and trust and if need be tiered reserve remuneration policies so in other words they create this debt out of thin air and that's the that's the chinese central bank but we're doing the same darn things doesn't really matter and then we have the interest the taxpayers have the interest on that debt to pay that's the reserve renumeration and tiered meaning you can have different levels of that so uh my bet would be that the corporations get it the cheapest but the public it's going to cost more shocker that's the way they always do it but really the question is do they have a choice they're throwing anything on the wall to see what will stick but i love this little colorful graphic on the different programs that they have attempted so here's the ot that we talked about and wow look at how much green is in there now it does not give rise to fiscal dominance risks so not for moderate amounts but if you do enough then you'll have more risk with that and it does not create an unmatched liability for the central bank really so they can just create this and there's no attached liability get your money for nothing and your chicks for free yeah uh and it does not give rise to central bank uh solvency concerns in other words is a central bank solvent well hey if you can do this why would you not be solvent because every single time you do that what you put out there destroys a layer of confidence because it feeds into inflation particularly in this environment i think the timing of when they put this report out is kind of interesting since they were looking at a low or what they considered a low inflation environment so there's ot now there's qe there's permanent qe did you know there was a permanent qe cause yep there is and money financed fiscal stimulus as well as as well as debt financed fiscal stimulus so you can see which one has the most green oh the ot the new tool but while they're saying that it's not a liability for the central banks a state contingent and perpetual liability as described would create a long-term liability for the central bank and thereby the public sector meaning it is a liability for the taxpayers for you and for me so one thing that i found really interesting in these reports and of course you have the links so you can go and read them for yourself is how often they contradicted themselves because here they'll say well it doesn't create a liability for the central bank and then in the next chapter they say that was tab 3.

this is 5.1 they say yeah it's a liability and i actually found that quite a bit during or while i was reading this whole piece and the reality is is there is no such thing as free money inflation is the cost of that money interest rates are the cost of that money and while central banks can buy debt and push down those costs they haven't eliminated them they have merely pushed them into the future and guess what the future is here you know you can only kick a can down the road for so long and they're done but this is even prior to the outbreak of covid19 most advanced economies had been stuck at or close to the effect of lower bound in other words zero interest rates and interest rates are the single biggest tool of central banks to regulate the rate and speed of inflation right so now they have to raise rates it's going to be really interesting to see how many times they raise them before they're forced to turn around and lower them again they've got to do it for their credibility but due to persistently sluggish demand wait a minute they've been telling us how great the economy is doing and how great the consumer is doing due to persistently sluggish demand and insufficient fiscal support are you flipping kidding me central banks have been resorting to an ever expanding array of unconventional monetary policies in order to meet their price stability target and broader economic goals what is price stability it is the price at which you the worker you don't really pay any attention to inflation and therefore you don't ask for an increase in your wages but frankly that's come to an end it's over so that means price stability is over and that means more people are going to lose confidence in the central banks and in the monetary system money for free yeah of course they're going to take it and they're going to spend it but what we've seen is when governments do that they spend what's in there but if you expect them to then start depositing and using that same system they're not so cooperative yeah they'll take it for free why not i mean you're going to do that aren't you in particular negative interest rates large-scale asset purchases so all the bonds that that the central banks have been buying and long-term lending operations have been relatively untargeted yeah they've been very targeted as in that k-shaped recovery i'd say they've been very targeted to help the wealthy get wealthier and to transfer that wealth from those that are on a lower level 90 of the bottom that wealth has transferred to the top so that's why it's been limited and their effectiveness are you kidding me look around you stock market bubble is is bursting bomb market bubble is bursting real estate market there are signs of it bursting but not as big signs as the stock markets and the bond markets but this was an over target for reflation and i would say that it was very targeted and also very successful unfortunately but did it trickle down to the masses no and frankly they've known that triple trickle-down uh theory does not work and they've known it for a really long time they have also given rise to financial stability risks while exacerbating large pre-existing wealth inequalities okay they'll give you that they'll admit but they don't really say this was our fault because no let's point the finger it's all their fault it's their fault it's your fault you got to go out and spend spend spend not our fault as the link but here's the kicker as the link between monetary policy and inequality has been receiving increasing attention among the general public and in literature this is what they don't want they don't want you to realize what they're doing and and they are people are waking up maybe not as fast as some of us would like i mean frankly i'd like everybody to be awoke right now but people are noticing that's the problem with rapid inflation and high inflation is people notice let's see this paper will focus on an alternative tool for monetary policy implementation well let's take a look at what that alternative tool is outright transfers so there are a number of ways in which they could do it but the most straightforward approach would be an equal absolute amount for every citizen's who are after all the ultimate owners how about we of the central bank how about we say the ultimate at-risk entities of the central bank's actions yeah here they admit it we're the owners of the central bank and that's why we have to pay for their liabilities uh are we benefiting from all this money printing no we have a k-shape recovery right and we've seen that wealth and income inequality have been stretched and stretched and stretched since when was that oh the 80s as this big experiment after we were taken off the gold standard started to progress and expand with the central banks in control let us not forget that please further checks and cbdcs so how are they going to distribute these transfers of equal size which by the way sounds like universal basic income to me i don't know they don't use that term in here but they don't use modern money theory either but again walks like a duck quacks like a duck and lays eggs like a duck probably a duck probably so okay the introduction of a central bank digital currency through which households could obtain direct access to central bank money remember the fed now accounts everybody already has an account set up already even though the cbd c is not ready well let's put the cart before the horse or maybe not maybe it's ready and they aren't just telling us that yet maybe it'll magically appear ready during this next financial crisis that could frankly happen any time okay let's see uh access to central bank money would greatly facilitate the delivery of direct transfers as it would obviate the need for commercial banks as intermediaries and allow the central bank to provide and possibly withdraw central bank money practically in real time yeah we all have those accounts so the central bank giveth and the central bank and taketh away you're not spending it fast enough hey this is programmable money we can make it evaporate we can set it up so that you can only spend it in these places frankly if the central bank decides to give me money if i have the ability to do so i'm buying gold and silver with it i'm converting that garbage into something real real money real money moreover the associated public sector this is really listen to this i'll read it twice moreover the associated public sector liability that arises from ot on the central bank balance sheet is not only more opaque and harder to understand for most households it is also a permanent one that in principle never has to be rolled over or repaid akin to a perpetual bond that is renumerated at the prevailing short-term interest rate on excess reserves which is by the way controlled by the central bank don't change behavior change the way you account for it so that people don't understand what's happening how many times can you be lied to when you do not know the truth every single time and they have to hide it and hide it and hide it because if we really understood if people really understood if how money was created and supported the full faith and credit of the central bank so as long as you trust them you have faith then you'll keep loaning them money you'll give them credit and if they can set things up so that you don't understand what's really going on so much better they have you by the cojones but i'm trying to show you what's going on and what their intention is and what their plan is so that you can make educated choices that take you out of their system out out out and holds its purchasing power value short term they can do anything but long term they have that's when you can more see the truth but that's why they have to suppress the price of gold and the price of silver it's ridiculous because they're talking about an infinite amount of this and not just here but like everywhere everywhere and not just in these two countries but hey why don't they do it in europe i mean everywhere they are doing it everywhere you want something that's unlimited and controlled by the guys that got us into this mess to begin with i don't this is why this is what i do physical gold physical silver plus food water energy security community and shelter get it done get it done they are out of tools and they are setting up the hyperinflation because what's going to happen they raise the rates these over inflated markets start to implode how low will they have to go before the fed's going to turn around and turn on those money spigots and if you think what they did in 2020 was a lot chump change just like what they did i mean when in 2008 it was everybody was aghast at that amount that they put into the system nothing nothing compared to what they did in 2020 this next pivot is going to take us into the hyperinflation because what they've done so far will be dwarfed will they give everybody money well they have to this is a consumer-driven economy they have to give people this money to spend because we don't want the corporations to lose their massive profits that we've been watching they've been taking advantage of this and gouging it so the little bit of money that the government gave to the general public well you know free money easy and easy out and they say the consumer's so healthy [Music] i'm not so sure about that frankly i don't believe them and lowe asks what's the solution perfect timing you want to be as independent and self-reliant as possible and you can get that faster you know i mean basically i did it i can't say i did it on my own because i didn't i have had a lot of help over the last 12 years 10 12 years that i've been working on this urban farm and i was buying gold and silver really as my foundation before that because this will put you in a position that whatever you don't manage to put together before you absolutely need it you'll be able to buy it if you don't have the gold and silver it's going to be a lot more challenging so that's why gold and silver needs to be the first step and the foundation because we're running out of time i mean i really i started accumulating a long time ago many years ago but doing the food the water the energy the rest of those pieces it was after 2008 when i knew the system died and i know what it looks like you know i'm not an expert in everything and i'm not ever going to tell you that i am but i don't know anybody else that's been studying currency and currency life cycles since 1987. i don't know anybody else that has that's what i'm an expert in how do they make these transitions and they give you stuff they let the markets fly so that you buy into it there are things that i'm told not to say because people have made a lot of money well guess what we had the roaring 20s and that hid all of the new money that was created by the central banks to kick this whole big experiment off and oh let's see how about greed is good in the 1980s as we transition from a gold standard to a debt standard and oh by the way what's been happening in the 2020s up to this point or up until relative the beginning of this year let's say the first two years that k-shaped recovery but people were given a whole lot of money so for the cbdc's and this outright transfers sure push a button create a whole bunch of digits in an account it's on your phone now that may be limited where you can spend it but look at that money that we put on your phone and we'll put the same amount in everybody's account every single month and oh by the way if you have kids they're going to get some too so let's have a baby boom because that'll make sure that everybody gets more money the problem is is that it's purchasing power value will be at buckets a big fat zero because that's what happens a hundred percent of the time and insanity is doing the same thing and expecting different results and maybe they aren't expecting different results maybe they're setting us up for this crisis so that when people are so scared and so desperate they'll hold on to any crumb that is offered them and then they got you so what's the solution get out of the system as much as you can because i can always convert this into any fiat anywhere in the world at any time why not cause i say so but because this has the most functionality in the broadest base of buyer and when you're in crisis circumstance what do you want you want one buyer that buyer goes away you're left holding the bag or do you want 20 buyers and they all need it that's what you want that's why gold has never gone to zero because it's used across the entire global economy and that's why governments and central banks hate it because they know all of this and that's the solution plus start a garden make sure i mean i just did uh we're gonna release it on uh thursday friday right i just did an interview this morning that your you guys are going to absolutely love it's with christina smallhorn and she is a real estate person and the first the first part of it we talked about a lot about what's going on in real estate so this is definitely a real estate focused uh video but then on the second part of it going into bgs we're talking about shelter and we're talking about all different kinds of shelters and tiny homes etc so you want to definitely watch that because we're talking about solutions we've got a problem the solution comes together in the community can we go back to the slide please so let me show you one one more little thing here which is gold right in the physical world i don't care what it is there's a finite amount if they find more of it there's still a finite amount of it it doesn't matter there's an infinite amount of this garbage because this takes nothing to create that's a button push this takes labor and effort to produce there's almost 202 000 tons of gold that has already been mined and gold is recoverable there's another 53 000 tons that we know about or we estimate is yet in the ground that's it we have already hit peak gold and central banks are buying it hand over fist and it's getting harder and more expensive to mine gold so that puts a floor underneath the fiat money price because they're not going to mine it and lose money on it it's not going to happen so let's kind of take a look at this and do a little comparison because outright transfers constitutes what they call a special case of helicopter money and what do you think all of this money for free will do to inflation not going to impact it wrong wrong wrong something that is free well that'll go to its fundamental value too which is a big fat zero and therefore all of those financial assets that you might still be holding in your 401k and your retirement plan you know in your brokerage accounts a trillion times zero is ah zero so don't be blinded by the numbers because they're designed to to direct you or nudge you in the direction that they want you to go in but what do you think that outright transfers will do to gold when people lose confidence because mining production has flatlined there's a finite amount of it and soaring inflation drives up gold demand by 34 as investors scramble for safe haven it's not just the inflation it's all the very scary things all of the things that are going on around us so people are moving into gold so they continue to suppress the price i mean right now we've got everything down in the markets stocks bonds except gold is not down i mean it is today but for the year no it's up marginally but i want you to also understand that that spot gold is a fiat money product that's easy to control i'm not counting on wall street to tell me what the value of gold or the value of silver is i have history as a guide that's a much better guide and this is a much much safer place for all of us to be what's the solution start a garden make sure you have shelter a place to go maybe out of the maddening crowd or even if you have to do it where you are food water energy security barterability wealth preservation community and shelter and community is arguably the most important part of it really because if you come together in community you have different knowledge base you have different skill sets you have different things that maybe you have stored so if you don't have a community around you well that's what we're working on with beyond gold and silver is to help you meet you wherever you are in this process but i'm going to tell you this is not the time to lollygag this is not the time to procrastinate this is the time to get it done i want you to definitely watch my interview that i did with david dubin on our beyond gold and silver channel our topic is on preparing for the climate change crisis and the cooling cycles that he sees and today again i had that interview with cr christina smallhorn i love her i love david too i mean i'm really lucky that i get to spend time with such high quality and smart smart smart people part one will be out uh with christina part one will be out on thursday on the itm channel and part two on friday on the bgs channel you don't wanna miss either one of those interviews i view them very critically important and i'll tell you what david dubain over the years has been very influential on me he's the reason why i have indoor grow areas frankly smart smart smart smart brilliant man brilliant if you haven't done it already you definitely need to start your strategy gold and silver as the base but you need everything so if you haven't set up a strategy yet give us a call or click that calendly link below and set up a time and please don't don't wait this is not things are not going to get better you know they may appear to get better for a heartbeat of a minute but we are in such a critical time right now get it done please and if you like this give us a thumbs up make sure you leave a comment because it helps spread the word and by the way share share share that's so important and so critical because without a doubt it is time to cover your assets and until next we meet please be safe out there bye-bye

2022-05-11 18:33

Show Video

Other news