Timestamps: 00:00 Intro 00:35 Treasury Accelerates Sovereign Debt Buybacks With Fresh Money Printing 01:10 Physical Gold Exports Surge Out Of United States Vaults 01:44 Japan Dumps Eighty-Eight Billion Dollars Of US Treasury Debt 03:57 Evaluating Post-2020 Real World Consumer Purchasing Power Loss 05:53 Treasury Quietly Doubles Purchases Of Long Dated Sovereign Debt 06:32 Bond Market Yield Expectations Diverge From Central Bank Rate Cuts 08:08 Foreign Reserve Liquidations Threaten US Borrowing Cost Baselines 10:05 Unmasking Hidden Passive S&P Index Fund Concentration Risks 11:05 Investment Legends Buffett And Munger Trim Core Index Equities 12:36 Step-By-Step Breakdown Of The Treasury Debt Monetization Mechanics 13:45 Mega-Cap AI Tech Debt Issuance Floods Capital Markets 15:05 Insider Form Disclosures Reveal Shifts Toward Pricing Power Stocks 16:16 Global Sovereign Nations Repatriate Physical Gold To Local Vaults 17:28 Historical Parallels To The 1971 Nixon Shock Gold Window Closure 18:40 Portfolio Allocation Strategies: Managing Unhedged Cash Account Risk 19:31 Identifying Defensive Cash-Flow Fortresses And Pricing Power Equities 20:14 Utilizing The Winston App Scorecard To Audit Corporate Fundamentals 22:06 Outro
AI Generated·May contain errors
In just a couple of days, the US government is going to do something
I would honestly rather, well, maybe you didn't look too closely at it.
It's going to start buying back its own debt
with money it prints that same morning and then it
doubles that program and it's going to keep going for two months straight and
then probably till eternity. And this is going to happen all the way
through until 4th of November. Coincidence around midterms perhaps.
But they call it a buyback, which sounds kind of like
what a healthy company does, right? When it's flush with cash.
But it is not that. Now, Wall Street already knows about it. They've got their
own name for it. They call it liquidity support
or end-of-year bonus support. It's going to be good for, you know, the Ferrari
dealers and the mistress suppliers. But it
mostly means it's good for them. And it's something
like 95% of normal investors have absolutely
no idea about. So let's fix that over the next few minutes.
I hope that it's not too windy here and so on, which is why I'm slightly hiding
in the shade because I think this is important.
Mainstream media doesn't need to be covering it. What they're also not telling
you is at the same time the printer is warming up at home,
the gold is leaving. Physically leaving out of US vaults, onto planes,
out of the United States. Gold is now one of the biggest
single things America exports. I literally had to check that fact three
times but it's true. Just think about that. The country that
prints the world's money is quietly selling its actual
gold out of the door or shipping it out of the door. To me, that's one of the most
unsettling things I've seen all year or maybe in the last couple of
years. And on top of that, it isn't just the US that's running the printer.
Japan, which has been the biggest loyal buyer of American debt on the planet for
decades. You know, the customer who always shows up.
Well, they just sold 90 billion dollars of American debt in a single month.
The central bank is shrinking its bond pile
faster than it ever ever has in history. And of course, we've talked previously
about, if you've watched me before, about the intervention. The US and Japan
started together. It's the first time they've done that since
1998. So the biggest buyer of American debt is
selling. American government is quietly stepping in to
buy the debt because nobody else wants it with money that didn't exist before.
And what that does to you and your money is really what this
video is going to be about. If you're wondering who the guy is, my name is
Felix Prynne. I'm traveling. I used to be an investment banker.
And then I got out and about seven years ago, we started teaching
normal people the stuff that worlds do. But honestly, well, they keep to
themselves. And my mentors have taught about 25 000 people the last seven
years. And there's really only one thing I wanted to know about me.
Nobody ever pays me to make these. I take no sponsors, no affiliates, there are no
links down there for anything. And I do that on purpose because it
means I get a little free life and I can say whatever the heck I want.
I'm also not political. I don't care whether you love
the Trump or you loathe the Trump. Really, it's got nothing to do with it.
We just want to understand here for the next 20 minutes
what it does to your money. What the politicians have decided to do.
Because most people only work that out once it already hits their groceries
bills and their rent and then all of that.
And the fact that their savings are no longer worth what they should be and the
fact that their salary is no longer worth what it
should be. And I want to make sure that isn't going to be
you. That's really what this is about. So I've also taken the whole
boring work and read everything and checked all the dates and all the facts
and triple checked them and everything else and
put it into a plain English report for you so you can download that. It's
just go to phoenixfriends.org slash flood because that's what's happening to
money. They're going to flood the market with money.
Grab it, read it alongside the video or read it afterwards and I think that
alone is going to put your head up 99% of people. Links in the
description down below. So let me show you why I'm genuinely
worried about this. Because you've lived to the warm-up and most
people never really named it what it was.
And I've said this on on record and I'll say it again. Since COVID
in my humble opinion real world inflation, the honest version,
not the official government number that the news tells you,
has been well over a hundred percent. That's inflation in my world.
Now if you add up what that's cost you since 2020,
you know all the stuff you're buying, your groceries and all those things,
a lot of that has just doubled or more.
Which is very very significant. It means your money
has lost half its buying power in just five years
or the government's telling you, oh no it won't be inflationary.
It's just nonsense. And this isn't new. It's just moving faster now. So here's
the simple picture. $100 back in 2000 bought you 125
bottles of coke. Today that same $100 gets you 44
bottles of coke. Crazy right? Now I'm not suggesting you
should run out and buy coca-cola. It is a poisonous substance but it's a
brilliant stock. I like the company. So you've got the same $100, same coke,
the bottle didn't get more valuable, your money just lost
significant amount of money. And if you zoom about a bit further, we go back to
1971, your money's lost something like 93%
of its value. So your dollar of 1971 is worth
seven cents today. That's the official government figure.
If I compare it to the market it's about a third of a cent.
So a hundred cents became a third of a cent, which is just
insane right? I say hold on to that because that's kind of the whole point
They're about to do something that is basically doubling the money printing.
So everything that we felt since COVID, they're lining up to do it again
but they're going to do it a little harder, a little faster, a little bigger.
And if you understand that, I think you can benefit from this because a lot of
people got a lot richer since COVID but most people got a lot poorer. So let's
make sure you're on the right side of that. And this isn't a conspiracy
theory. The US treasury has said this out loud. It's a bit quiet the way they do
it. They don't sort of massively talk about it because it's a bit
embarrassing. But they basically said we're doubling the amount of long-dated
debt we're going to buy back. And we're going to run it for two months
and of course then it'll magically stop and then everything will be fine and
inflation... But what does it mean? Well they're
buying back long bonds, which just means you go in the market
and you take the debt off everyone's hands.
And then how do you do that? What good cash do you use it to do that? Well
it comes from where it always comes from. It comes from the magic money printer you
just created. And on top of that the Fed's about to
meet and the market was convinced that this new Fed share was going to cut
rates. Well if you look at what the market's expecting right now
the bond market isn't really believing. They think
rates are actually going to go up towards four percent.
Two lines as a chart. I'll sort of put it on the screen for you. Two lines.
What they thought at the start of the year versus what they're thinking right
now and they're going in opposite direction.
So that's really odd, right? The government's printing money to buy its
which is about the loosest thing you can do in terms of financial
policy and at the same time the market thinks the Fed's going to increase rates
which is like the opposite as to how you tighten the market. So those two things
don't normally sit at the same table. It's kind of
like if you're driving and you're putting both feet, you know, one on the
accelerator, one on the brake, that's pretty much what the government's doing
right now which is just madness. What really annoys me is that they're
basically trying to hide it from you. It's not an announcement, there isn't a
great big speech about it. It's just there is a line in a treasury refunding
statement in the most boring language that humans can produce. So you basically
go, you know. But really what it is, is if you buy back
your own debt as a government, the government becomes a bigger and
bigger customer of itself. And then the only reliable
buyer left for your IOUs, which is really what debt is,
is you. You're not really a healthy borrower anymore, right? You're kind of on
life support. And I get it, you've heard about money printing
before. The story is usually America prints money, the dollar drops,
buy gold, bye-bye, right? But this time the rest of the world is actually part of
the picture and they are a step ahead. Japan, the most
loyal buyer of American debt on the planet, right?
In August, the latest data we have, Japanese
investors holdings of US dollars dropped by 88 billion.
That's not a little trim. That is literally them backing out. It's the
biggest selling they've ever done of US debt. And I'll put a chart on the
screen here for you. So why does it matter? Why does it matter to you and
your pension, your retirement? Because 70% of Japan's reserves sits in US
debt. So when the biggest foreign holder of
your debt starts selling, someone's gonna buy it off them, right?
And if they don't, the price of that debt falls.
And I know it's confusing, but it means if interest rates go up for everybody,
well, it's not just your mortgage that gets hit and your credit card and your
car loans and everything else, but also every factory that gets built,
every industrial investment, every bit of
infrastructure, everything is financed in the US
and the cost of building something depends on the interest rate.
So basically, you go into a screeching, horrible,
burning recession if your interest rates go up, which is why
Trump's so keen for them to come down. So Japanese bond charts
matter to you because they don't stay in Japan. For many years, the world borrowed
cheap yen and then they parked that money in US markets
and quite a lot of that was in the stocks that you own and it's been
propping up the US stock market. When Japan is forced to sell its debt, its
bonds, its US bond, because they're defending their own
currency, the money gets brought back home to Japan and the cheap fuel that's
been holding up the US market, well, it's no longer there and it shows up
as pressure on US interest rates. It shows up in your mortgage, your car loan,
and so a chart in Tokyo ends up as a number on your portfolio
statement and it's an important thing to understand how it piles together.
So most of you watching have your money in one place right now, right? And it's
the one place this whole story goes after,
unfortunately. For the last 40 years, the safe thing, the gospel, has been put
your money into an index fund, buy the S&P 500 and don't think about it.
It's been very, very profitable for Vanguard and many other large
index fund companies. And the story was that it's diversified, it's America,
it always goes up, right? Except pretty much everything I'm showing you today
points, well, straight to that idea. Because that index fund that you think
is 500 companies, 72% of that, 72% of all your gains this year came from just
the top 10 names. And those top 10 names are the most expensive, the most
crowded stocks any stock market has ever seen in the history. And they're all
AI names. So you're actually not diversified in your portfolio. You just
have a great big chunk of your money, about 72% of it, riding on the AI wave.
And the two calmest, most respected investors alive, the ones who are
supposed to love a boring index fund, well, they sold us. Buffett sold us and
the most bullish guys on Wall Street are basically warning exactly about this
and they're edging towards the door. But most retail investors are either
panicking and going into cash, which is literally the worst thing you can do,
you're guaranteed to lose money. Think about those Coke prices I showed you
earlier. Or they're sitting in an index fund, which is definitely not what they
think it is. So what I'm going to do, and I get off this lovely little island
and the Wi-Fi is a little better. On Saturday, I'm going to run for you a
free live training. It's the first time we've done it. And it's called the
Index Fund Trap. It's literally why the S&P 500 is lying to you. We're going to
do it live. There'll be a real Q&A. You can ask me anything. And I'll show you
how to check your concentration. I'll show you what the skilled money is doing
instead. Because that's what Wall Street is. They're not smarter than you.
They're not smart money. That's not what they'd like you to think. But they're
just skilled. They've been taught this. It's completely free. No strings
attached. All you got to do is show up for yourself. And I'll put a link in the
description down below. I think it's indexfundtrap.com or something like that.
Anyway, there's a link down below in the description. Click on that. Grab
yourself a seat. And then come back here and write thrive in the comments.
Because that's really what I want you guys to do. I want you to thrive from
this situation. Because I tell you, the wealthy are going to make money from
this money pranking. But most people will suffer from it. I want to make sure
you're on the right side of that. Because, you know, one's going to be fun.
One's going to be painful. So let's make the whole mechanism here really,
really simple. Because they're counting on you to find it so boring you won't
read it. The government spends far more than it takes in, right? So they issue
debt. IOUs. Step two is, normally the world buys those IOUs. But we've just
watched the world's most loyal buyer, Japan, selling theirs. So there's a gap
here. There's more debt than they're willing buyers. So step FES comes in.
And that's rather than let the interest rates go higher to bring in more buyers.
That's normally what a free market would do, right? You just have to pay more
interest, attract more people. But it would blow up the government's budget
even more. So what do they do? The printer fills the gap. New money is
created to buy the debt that nobody else wants. And that's what they call a
buyback, which of course is a crime against the English language. And the
speed of that is doubling. So every new dollar that gets created, where does
it come from? Well, it doesn't create dollars on its own. It comes out of the
And nobody tells you that. Your balance won't move. The number in your account
is the same. But it's just worthless. It just buys less. And that's the trick.
It is a tax that you never voted for. You've never seen a printed statement.
It's just a hidden tax. And on top of the government's borrowing, you've got
this AI built out, right? The big tech names are about to borrow something
like a trillion dollars to build data centers next year. They're doing about
And that is the ocean of new corporate debt hitting the market. At the exact
same time, the government is flooding the same market with its own debt. So
more paper, more paper, more paper, all chasing the same debt buyers who are
already going, no, no, no, we've got enough. We don't need any more. And
therefore, the printer is going to have to print a little faster. So just
picture the scale of that. A trillion plus debt of corporate borrowing on top
of the government borrowing, you know, 2 trillion plus. So every single one
of those bonds, every single one of those bond dollars needs a buyer. And
the buyer pool is actually shrinking, not growing because of countries like
Japan pulling back. So the only thing big enough to suck it all up is the
money printer. So the AI boom that everyone's celebrating and that money
printing everyone's ignoring are not two stories. They're literally one
story. The build out is being financed by the same money printer that's
eating your savings. So you're paying for the data, the data printer. Yeah,
you're paying for the data centers. If I can get a straight sentence out,
right. And that's the point where I go and look at what people with real
access are actually doing rather than what they're saying, because talk is
cheap, but disclosure forms are a legal reality. So in the, in the
Winston app, which is something that I built for myself and I share with you
guys, you can pull this stuff up and I can see what the politicians are
actually doing. The president has just filed a huge batch of 600 trades. And
what's he doing? He's leaning into boring stocks, Berkshire, Visa,
Mastercard, Home Decker, Depot, right? Even a literally a rubbish company,
Republic Services, they collect your garbage. Why? Because these companies,
you're not going to stop producing garbage, are you? I mean, you know, your
household is going to create a certain amount of rubbish and it's going to
have to get collected. You're going to have to pay for that. So that's where
he's moving and he's moving out of the AI stocks. Isn't that kind of
crazy? So you want to see that, you want to watch that, you get alerts of
what those guys are doing and, you know, Pelosi and all the other lunatics.
There's a link down below. It's a free trial. If you want to check that out,
then I have to cancel it if you don't like it. But the people closest to
information are not betting on cash holding value. They're not betting on
the S&P holding value. Okay. And let's get to the bit that I actually really
wanted to cover here. Forget about what anybody says about gold for a minute.
Watch what they do with it. And what they're doing is pulling their physical
gold home. The Netherlands moved their home, France, Germany, my fatherland.
One country after another is bringing their metal back, wanting it in their
own vaults, on their own soil, close up to where they can control it. And
that's an expensive thing to do. Either you've got to fly back all the gold or
you've got to sell it, you've got to buy it, you're going to pay a margin to
the lunatics on the gold exchanges. And the president gets it. He literally
posted on his ex account, the golden rule, he who has the gold makes the
rules. And gold is literally one of the biggest things America exports.
Physical gold at record levels. Used to be a few percent of US exports to now
a serious slice of it. Again, we'll put that chart on the screen, I hope.
Crazy stuff. So the country that prints the world's money is shipping its gold
out the door at a record pace. Gold is the one form of money that you can't
print, you can't fake, you can't, you know, double it through till midterms.
And it reminds me of, because I'm someone who watches patterns, that's
really all I do, I've seen this film before. It happened in 1971. The US
quietly slammed the gold window shut, it cut the dollar's last link to gold
because too many countries were turning up, wanting to get their gold out of
the US. And of course, that was a temporary thing, right? It's been 55
years. It's a bit like the next two months of money printing will also be
temporary. I think in 55 years we'll still be printing money. So we have the
same pressure then as now. Too much paper money chasing not enough real
money and a government that would rather change the rules than change its
spending because that would be unpopular. And every single time this has
happened in history, no exceptions, the people holding the paper got poorer,
the people holding the real thing, well, they got protected. So I'm not
trying to be dramatic, I'm not trying to, you know, tell you to put all your
money into gold. I'm not a financial advisor and I definitely wouldn't put
all my money into one asset class. But you remember that coke chart, right?
125 bottles you could buy and now you just buy 44 bottles. That's the other
half of it. Every bit of value the dollar lost in those years, gold actually
kept it. Good stocks also kept them, right? We'll talk a little bit more
about what good stocks are if you join me on Saturday and how we can find
those and so on. So this is a binary event. The skilled people get richer,
it's kind of a guarantee, and the non-skilled people get poorer, which is
definitely a guarantee. So my goal is never to scale. I want to leave you here
not sitting in the dark going, oh my god, but while I'm not a financial advisor
and why Winston is not traveling with me, so you know, you've got to be careful
about what I'm about to say, we've got to fact check it. Winston's my adopted
golden retriever, if you didn't know, he does all the hard thinking usually
around here. What I learned from my Wall Street mentors, what they drilled into
me is you've got to make your own call. First thing, don't panic, dump your US
stocks. This gets misread all the time, right? The world's backing away from the
dollar so sell everything American. No, no, no, no, no. Foreigners own a record
amount of US stocks, right? Crazy amount. The world isn't abandoning America, it
is rebalancing out the edges slowly. Panic selling is like, it's a really bad
idea. So what you actually do is you own things that can't be printed, you own
businesses with real pricing power, like the tour booths, like what the, you know,
El Presidente is buying, the companies that can put up their prices when
everything gets more expensive. Coca-Cola, yeah, you can probably put up their
prices. People are addicted to that sugary stuff, right? And yes, I personally
believe a sensible slice of gold can be a good thing to do. And again, never do
that because some guy on YouTube tells you about it, you've got to come to your
own conclusions on that. But the point is not to bet the farm on a crash. The
point is to not be the person holding the thing that's quietly melting and
which is cash. Let me talk about the S&P in a bit more detail on the weekend if
you join me, links down below. So let's bring the whole thing home and then I'm
going to run for breakfast. The government printing to buy its own debt
is just, it's a Ponzi scheme. The most loyal buyer of that debt is selling. Gold
is literally being flown out of the United States at a record speed that
we've never seen. And they all point in the same uncomfortable direction that
if you just put your money into an index fund, which is a safe thing to do, and
I'm not saying you should sell your index fund, please. If you're not invested,
an index fund is a million times better than not being an index fund. But you
need to understand what you actually own. 72% of your gains all year have come
from just the top 10 companies. And they are all AI companies. So you need to
understand your risk exposure to what's going on right now. And I think for most
people, it's probably higher than they'd like it to be. So the government is here
trying to keep this thing floating. And it's important to understand that I'm not
trying to be a doom guy here. I don't know if next month or next year, the markets
crash or any of that. But what history tells me is that risk is getting
significantly higher. And I think most people have no idea the amount of risk
they're presently sitting in. And that's really what Saturday is for. So join me
on that free live training, the index fund trap and why the S&P 500 is lying to
you. It'd be live, it'd be real. You can ask me Q&A questions. I'll provide the
answers, I hope. Completely free. Show up for yourself to actually come out of
this thriving. Because I can tell you the skilled money is going to come out of
this thriving. There'll be more Lamborghinis and Bugattis and the mansions
and the Hamptons and so on. Because if you understand this, I think you will
make better decisions. And that's really the whole premise of this community
here. So click on the link in the description. If you got some value out of
this, share it with somebody else. And I have to see you on Saturday. Wish you
all the best. Right now, I think we're going through some sort of weird phase
transition. And normally when you get bad economic news or you get bad jobs
data that people are going to fly to safety into the bond market.