THE RISE OF GLOBAL INFLATION: BIS Report April 2022...HEADLINE NEWS with Lynette Zang

THE RISE OF GLOBAL INFLATION: BIS Report April 2022...HEADLINE NEWS with Lynette Zang

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a rare occurrence you're about to see tighten your seat belts here we go madam empty i i think we are not paying sufficient attention to the law of unintended consequences we take decisions with an objective in mind and rarely think through what may happen that is not our objective and then we wrestle with the with the impact of it take any any any decision that is a massive decision like the decision that we need to spend to support the economy and at that time we did recognize that mainly to too much money in circulation but didn't really quite think through the consequence in a way that upfront would have informed better what what we do and i subscribe entirely to what christine said about climate shocks we are already out of time and the fact that whenever something hits us we forget about this other crisis is incredibly troubling the fact that we are i'm sorry i'm going on here but i'll finish in a second we act sometimes like eight years old playing soccer here is the ball we are all edible and we don't cover the rest of the field so do you trust them let's see some of the unintended consequences coming up [Music] i'm lynette zhang chief market analyst here at itm trading a full-service physical gold and silver dealer and thank goodness that we actually do have a weapon against these people that you know i mean i don't really know why everybody thinks they're so smart on a rare occasion i mean frankly this is really the first time i've ever heard a central banker admit to their errors and that they're like eight-year-old children chasing a soccer ball around a field and so they're over here and they're not guarding the rest of the field and you better become your own best guard you better or you're going to deal with their unintended consequences which frankly we all are right now so today i'm going to talk about you know really there's been a rash from the imf to the bis of reports on what's going on globally and so that's what this week is really about but the bank for international settlements which is the central bankers central bank just came out with this speech on the return of inflation because boy i mean look at the purchasing power chart they were able to keep inflation low enough long enough that people got used to it in the 70s it was a dirty word i can tell you i was there and anybody else that was there that's watching this can verify inflation was a very dirty word then they pushed it down our throat that inflation would save us well now we've got the inflation do you think it's saving us so let's look at what was in this particular speech april this month 2022. so inflation has surprisingly flared up in the past year you see here's the point they don't know what they're doing it is all experimentation this is why gold is so important for you to have in your possession because everything else is counterparty risk let's see developments in the united states the euro area and other advanced economies have attracted the most attention and indeed almost 60 percent of advanced economies that's the us and europe etc currently have year-on-year inflation above five percent and more than three percentage points above the typical inflation targets good thing we went to an average you think we might have hit it yet nah let it run hotter goodness gracious this is the largest share since the late 1980s and look at how it has reared its ugly head and i want to point this out to you because this blue line are emerging markets so china would be in this blue line the red line are the advanced economies and you know you really have not seen them go together until now look at they're right on top of each other this is it was a global deflation and now we're headed into a global inflation so so many people ask me where they can go where else are you going to go well nobody's going to escape this one because they have to reset and restructure the entire global economy and financial system we had globalization going in that was all the talk when i became a stockbroker in the 80s and now what we've been experiencing is a massive deglobalization but if these guys have their way meaning the central bankers the central planners well they want everything centrally planned and centrally controlled i hope that doesn't happen that that's the battle so where are we here's 1971. there's 2008 and this is 2021. what do you think it's going to get a lot worse because where they held the inflation from 2008 were in assets and i don't know if you remember this or not but you could you could certainly do a search on it and it would come up the reflation trade where the central bankers vowed to reflate stocks bonds and real estate and they did that's where all that money printing that they were doing that's where all of it went was into the targets that they had set but again they don't really know what they're doing it's a big experiment and so all the talk is well jerome powell is trying to engineer soft landing if he can't see past this narrow scope that he has how in the world would you imagine that he would have the ability to land this economy softly and what about all the people that are suffering i'm pretty sure that they don't think that this is such such a soft landing if they have to decide between putting a gas or tank in their car or putting food on the table you know they're having people are unfortunately having to choose between necessities it's not buying this blouse and putting food on the table it's buying that tank of gas and putting food on the table two key necessities so what happened okay well two important observations first the return of inflation it never went away it was just so low that you didn't ask for pay raises and you didn't pay a whole lot of attention to it okay but the the return of inflation was almost universally unexpected including by the biz well if you've been watching my videos this was not unexpected particularly when they went to that average of two percent because i said watch out that means a lot and we're about to be walloped with inflation as we are but he admits forecasts are often wrong but last year's errors went beyond what many regarded as plausible so they didn't think this could happen so is the inflation the black swan that breaks the camel's back i'll let you decide that one for yourself second the return of inflation while most pronounced in the u.s

is global inflation is now over five percent and 58 percent of advanced economies and over seven percent and 55 percent of emerging economies and that's the way they calculate inflation i would venture to guess that inflation in advanced economies is really running even as an average somewhere around 18 and that's why it's so noticeable in fact residential real estate the the numbers just came out and in 20 key cities the inflation was 19.8 on on residential real estate while everything else is declining real earned incomes etc so we need to take a look at this because they didn't see it coming and do you really think that they can guide us out of this mess and create a soft landing nope absolutely positively not but here's the other piece as long as you think as long as inflation expectations are anchored in other words you trust them you think they can get us through this all right then you don't make those different choices you don't ask for higher wages but that's not what's happening because inflation is more broad-based right wage inflation services inflation goods inflation since the start of 2021 the share of items in the consumption basket that have seen very large price rise rises has increased steadily yep and that's the key to de-anchoring the in the inflation expectations and let me tell you when confidence is gone and we're so close when the public loses confidence in the central banker's ability to control this inflation and you know there's been a bifurcation where you have some advanced economies tightening in other words raising interest rates and others lowering interest rates right but even those that have raised interest rates have not had very good luck see mexico on containing the inflation among one okay so it's broadened over time and i'm thinking that this is the beginning of the hyperinflation and that's why i'm saying we have run out of time get it done food water energy security barter ability wet wealth preservation community and shelter get it done if you don't have gold and silver get it physical in your possession oh it's so inconvenient that i have to hold this if you don't hold it you don't own it regardless of your perception it does means nothing in reality and also in a court of law now i found this like really really interesting because we hear about price stability and that it's a central bank's job to maintain that price stability and i'm looking on the purchasing power chart and i'm just watching the value the purchasing power the value of the dollar go down down down down down and this is true for all fiat money all government based money but i love this definition and i thought that i should share this with you so you could really understand what they're talking about because this is both paul volcker who raised interest rates up intraday to and a half percent and alan greenspan and paul volcker that was as we were transitioning into the new debt based system and sir alan greenspan my mom always used to say to me don't you think he's smarter than you lynn don't you think he's smarter and i'd say to her boy i sure hope so cause he has a lot more influence than i do but if he actually believes the garbage coming out of his mouth no he's not smarter and then of course after he left the federal reserve he went on a campaign to restore his image too late alan you did too much damage i don't trust you i don't believe you but the central bank's anti-inflation oh all right let me come back to this sorry i've got a little ahead of myself paul volcker and alan greenspan define price stability as wage prices right if you don't think that inflation is going to be too hard or go up too much then you don't ask for a raise that's all they really care about they want the prices to go up because that makes gdp look better right look at all this growth when most of the growth that they report and they want you to believe that there is is based upon inflation i had somebody say to me last night oh inflation is good not for everybody for some it is so really the central bank's anti-inflation credentials and credibility can help hardwire such behavior so if we believe them if we have trust in them that we don't do anything then we let them do whatever they want so think about what backs what backs this garbage right the full faith and credit of the us government so as long as you trust them as long as you have faith then you will continue to loan them money extend them credit enable them to borrow and borrow and borrow and borrow but the tides are definitely turning because whether we are now shifting from a low inflation environment to a high inflation environment and after several decades in which the influence of prices on wages steadily declined it is now raising so we have the the rise of the working class the rise maybe of of um the ability to ask for more money because inflation is so noticeable that and the and the labor market is so tight everything is shifting even what people are willing to work for that's shifting but can you see it this is their quote after several decades in which the influence on prices on wages steadily declined that's what enabled that income inequality and the 70s the ceo made 20 times what the worker made today i think the average is 380 times but in jamie dimon's case it's over a thousand times right this is what enabled it because if you look at the charts and i don't have one in here but i've used it a bunch of times on productivity you could see that before we transitioned into a pure depth based system so before the 70s early 80s as the productivity increased so did the worker wages once the central bank took over control once nixon closed that gold window and handed over control to central banks of inflation well everything changed after that and the workers did not participate in the productivity but the guys at the top did but don't worry there's a silver lining it said central banks saw inflation like this in the 1970s and know how to avoid a repeat just as knowledge of the great depression helped them avoid a repeat in 2008 that didn't make the experience any more pleasant i got to unpack this statement here because it's incredible all right central bank saw inflation like this in the 1970s as i just said what's happening in the 1970s we were transitioning from a gold standard completely from a gold standard to a debt and inflation standard that's what was happening well guess what we're transitioning into a new monetary system right now a new social economic and we did there too social economic and financial that all happened in the 70s and the early 80s absolutely so there you go and know how to avoid a repeat okay well paul volcker cranked up overnight rates to 21 and a half percent do you see fed chair pal doing that i don't and i remember i had a five-year cd at 15 and i thought that was like amazing but i was also buying silver like crazy enough said and gold was going through the roof went up to 8.25 so all of these things were shifting in the 70s and they might know how to avoid a repeat i don't think they do as we just heard christina say you know they don't know what they're doing admitted it now the great depression helped them avoid a repeat in 2008 and what that was was this and then they just couldn't stop doing it and so now they're stopping no they're they're not going to be able to i'm sorry you know i don't i don't give a crap what they say they're going to try but it's not going to work they're going to have to pivot again because there's no way that they can stop there's no way everything they're not ready for it to implode unless they are ready for it to implode and then they'll use that next crisis to justify switching us into cbdc's a programmable money no thank you no thank you in the 1970s paul volcker pushed overnight rates up to 21 intraday in 2008 the fed hyper created new money and they're saying there was no inflation did they really learn any of these lessons i don't think so i don't think so at all but the difference is is that was the first shift in 1971 so that was kind of the beginning of the debt based system and this is the end of it they say that at least this is what i've been able to find so far that the cbdc's the new money they want to shift us into will be based on debt and what that means is they have to burn off through hyperinflation all of the debt that they've created to create all this new money that we've been talking about here right inflated stocks inflated bonds because every time they print that money the money that's already out there loses value and whoever is closest to the central banks they get it when it has the most value because as soon as a dollar euro or yen as soon as it's created that is the moment when it actually has the most value after that it's less and less and less so what can you do because we really need to know what to do well there's an infinite amount of this and debt an infinite amount and it doesn't take very much effort to create more of it but it depends on the confidence of the public when you're talking about gold there's a finite amount of it period end of discussion anything physical there's a finite amount of it gold rose as the primary currency medal because it meets all the criteria to be a good currency you cannot tell me because there is no other asset that has never gone to zero well that's not really true land has never gone to zero either but it's not movable so gold has all the attributes plus it is a way to hold a lot of wealth in a small movable invisible decentralized package silver too and you know i got a i had a great question the other day would about silver and gold and the only challenge that i really have with silver is that it's bulky so i own silver i own enough to maintain my current standard of living and my children's for 10 years but the lion's share of my wealth is held right here in gold because that's what they reset the currency against and history has shown that it outperforms as a store of value and we've seen it too i mean but with gold there is a finite amount only 166 500 tons that's it that's all the gold in the world all the gold ever mined if melted would fit into an olympic sized swimming pool that's it and it doesn't matter regardless of the form it's monetary added space in my opinion this is the best way to do it but do not overlook aunt bessie's sterling silver okay because that has monetary value as well even if it's dinged even if it's dented even if it's tarnished doesn't matter and what about the the in-ground gold because that's part of it so people say well we'll find a whole lot more even so there is a finite amount and that is a critical key in here there's only of total identified reserves there's only 53 000 tons so far less than what we've pulled out of the ground and the department of the interior runs a report on in-ground gold every single year could they find more sure that's definitely conceivable but even if they did it would be a finite amount and gold is indestructible so it makes it a perfect accounting tool because we can account for roughly 98 of all the gold that's ever been mined maybe what we can account for is the gold that's in food that you eat but it is finite and it is indestructible so a lot of people want to know why i prefer this to bullion gold new gold first of all i personally think that we're going to see a confiscation an overt confiscation because price manipulation and perception management is absolutely definitely without a doubt a form of covert confiscation and i just don't think they're going to stop right at the end so my uncle al taught me that if you hold it in a way that's legal you can own as much of it as you want and you can use it in the normal marketplace so let me show you what's happening with the coins okay so this is a chart on kind of broad but general collectible gold coins what i would like you to to notice which is less than two percent of all gold coins is that it is in a long-term positive trend how do you know that because what you see is a series of higher and higher lows right so any time i don't care what asset it is if you see a series of higher and higher lows eventually you're going to get higher highs now this was the high that was reached in 1989 okay so when they first legalized gold holdings again and you can see we're quite a distance away from that but what you can also see is there is a cup formation that hasn't yet come to conclusion but looks very close to concluding and remember when you when you go when you hit that level and you go above it the next most likely outcome particularly in this environment is that it's going to go up and there is a finite amount less than two percent of all gold are in these is in these collectible coins so it kind of works like this you go to an auction there's 10 people there's 10 coins on the table and everybody wants one all right wherever the auction opens up that's what you're going to pay and everybody's going to go away happy but you have another table where there's one and everybody wants it well whoever bids the most gets it but you still have nine other people that wanted it that couldn't get it at that time and i promise you there is no fever like gold fever and that fever hasn't really kicked in yet that's the opportunity so this let me show it to you in a little bit closer form we are very close to concluding that cup and that's the opportunity but what are the wealthy do well the wealthy do more like key dates and rarities so super rare coins these are the kinds of coins that i personally like to put aside for my dynastic wealth portfolio to pass down from generation to generation to generation but it is also a great way to see what the wealthy are doing so that you can emulate them you can do it on this other level you don't have to spend a million dollars for a gold coin but you want to be in that same category because if you can afford like one of the i'm the 1933 coin that went i think it went recently for about 15 million i could be wrong about that i don't have the data in front of me but i remember when it was first discovered and then sold and it was over eight and a half million dollars so any and it was just recently sold again but anybody that can afford 8 million fifteen million for one ounce of gold one ounce of gold is either likely to write the laws like treasury secretary wooden back in 1933 have the ability to influence those that write the laws that's the category you want to be in you want to be in what if i'm right and what if i'm wrong and you don't want it to matter either way so even though we still see that they have lower premiums on here look at this cup this is more of a bouncy cup but can you see that that too is coming to conclusion and can you also see that this it not in the rarities area but you want to be in that category because that is your best shot at keeping and holding your wealth that you can use in the normal marketplace it's all part of the strategy that you know i created it based on historic norms studying currencies since 1987 you see these patterns so that's why i personally only buy collectible gold coins the same is not true with silver i have bullion silver i have old silver i have new silver i don't really care but on the gold it matters to me because that's the primary currency metal that's the metal against which they do those overnight resets and they reset the currencies this funny money and i want to be able to execute the strategy protect my family and execute the strategy and so what you really need to do is establish your goals what's the function what are you trying to accomplish and then you build the portfolio from that that supports your goals your circumstance and what you have to work with you always start with your goals first and yes i have everything else too food water energy security wealth preservation barter ability community and shelter but i've been working on it for a long time i lay in this first because if things fall apart before i can do the other stuff i can still buy it with this will you be able to buy it with this probably not so i would like to offer and extend the invitation because i need a little vacation truthfully so i'm going to hawaii maui actually in june and we still have a few more seats a few more seats left in at the grand waialea in maui on saturday june 11th we are keeping this to a very very small group of people so that i really have a lot of one-on-one time to talk about everything including a lot of things that i don't get to talk about on air so i'm really excited about that because i i like the smaller groups and make sure that you watch on beyond gold and silver watch my interview with security expert bill blickensterfer and that's out now and i really enjoyed my conversation with him and i think you'll get a lot out of it plus i think i even got an email that somebody said that they contacted him he was super responsive and they feel like really good about it so i'm happy about that too because the time to get ready is now i mean seriously now and don't forget that we are on all major podcast podcast platforms and if you would please leave us a review on apple or spotify we would appreciate that i think it helps spread the word more but if you haven't started your strategy you need to and you can click that calendly link below and set up a time to talk to one of our consultants have your goals in mind what are you trying to accomplish what's going to be the right kind of gold and the right kind of silver for you personally that's based upon there's all different kinds it's really based upon what you're trying to accomplish but if you like this please please give us a thumbs up make sure you share share share this information and i think people are becoming more open that would not have been open to hearing it before you know this inflation i say thank you for it because it's starting to open a lot more people's minds because you absolutely know it is time to cover your assets here at itm trading the foundation is gold and silver but you need to go beyond gold and silver as well to food water energy security community and shelter and until next we meet please be safe out there bye-bye

2022-04-27 19:03

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