The Next Big Print Is Coming and Your Savings Are the Target

Last week, the Federal Reserve did something they haven't done in three years, they raised rates. Now, the mainstream media, they're telling us that the rate raise was done to fight inflation. Raise rates, slow the economy, stop prices from going up so fast. Everyone understands that. But the fighting inflation narrative here isn't the real story. It's what the Fed may be forced to do next. And this matters to you because you are the one holding dollars. You are the one with savings in a bank account and you are the one counting on your retirement to still have purchasing power in the next 10, 20, 30 years. But what the Fed just did puts all of that and thereby you in the middle of a much bigger problem. The US is already sitting on over $40 trillion in debt with trillions more that needs to be borrowed. And every time that the US issues new debt, someone has to be willing to buy it. But those borrowers aren't willing to lend the way they once were. They're demanding higher yields, higher interest, more compensation to take on the risk of lending to the US, which is why a rate hike right now is a much bigger issue than a mere 25 basis points. See, the Fed and the government are being pulled in two different directions, stuck between a bad choice and a worse choice. And you and I, again, are right here in the middle. If the Fed continues to raise rates to fight inflation, then the debt crisis gets bigger faster. But if the government gets their way and lowers rates, maybe the debt is more manageable for a while, but ultimately inflation will accelerate. No matter how you slice it and dice it, there's really no way for the US to get out of this mess. Let me ask you this. America's debt is denominated in what? US dollars. And when a government owes more than it can finance, there's really only two ways to ease this burden. Option number one is to deal with the debt, which would mean a reduction in the deficit, less spending, potentially higher taxes, paying off that $40 trillion. Now, what do you guys think? Do you think option one is viable? Do you think it's something the US government is going to pursue? You can probably guess how I feel about that. And if you're with me, drop a fat chance in the comments below. Now, even if that were possible, and I'm talking about possible, right? Probable we know is out, but I don't even think it's possible. We've crossed over that line, in my opinion. You know, Warren Buffett once joked that he could end the deficit in five minutes by making every single sitting member of Congress ineligible for reelection if the deficit crossed over 3% of GDP. There is no incentive right now to actually deal with the debt, which is why option one is off the table, which leaves us with option number two. Change the rules, change the value of the currency that the debt itself is measured in. But if you say, ah, that'll never happen, it has happened many times throughout history. And if you or you know someone, we all know someone who said, well, it will never happen here in the US, what if I told you it already has? And no, I'm not talking about a continual devaluation of the currency, which obviously since the Federal Reserve's creation, we've lost 99% of our purchasing power, but I'm talking about an official revaluation. The last time the US did it, gold was smack dab in the center of it. In 1933, the US was dealing with a very different kind of crisis. There was a banking crisis, a loss of confidence. Unemployment was sky high and the dollar was still linked to gold. Now, contrary to what some might think, the debt was rising during this period of time, but there was still a constraint, physical gold. It prevented them from printing an infinite amount of the currency. So what did they do? They changed the rules. They removed the obstacle in the way with President Roosevelt issuing Executive Order 6102, which required citizens at the time to turn in their gold bullion. Now, rare and unusual gold coins were exempt, which is why I always say it's so important to understand gold history, gold laws, and work with people who understand these laws. But once they had all of the gold, once they confiscated the gold, they did an official gold revaluation, revaluating gold from $20.67 an ounce up to $35 an ounce, meaning that for everyday citizens, those who held gold saw their wealth grow tremendously overnight, whereas everyone who held the currency, well, they lost half of their wealth overnight. Now, could there be a gold revaluation again? Absolutely, but I also will say today's not 1933. Gold isn't what's constraining the dollar today, but it doesn't mean that the dollar still doesn't have a constraint. In fact, today, I would argue that that constraint is the debt itself. More specifically, who is willing to finance the debt? See, the scary thing about America's debt is that we don't just need buyers today. We need buyers today, tomorrow, the day after that, and the day after that. And it's not just that we're running out of buyers. It's that there will be buyers, but at what cost? Here at ITM Trading, we study currency life cycles. That's what we do. And I'm sure if you've been watching us for a while, you've heard me talk about a currency reset. Now, a reset is both a process and an event. The process itself is what we are living through right now. And it's typical that as you move through the reset and come closer to reset day, you can expect to see more changing of the rules, more monetary intervention. This is a pattern that plays out time and time again. And right now, the pattern is playing out in the U.S., as is obvious by the desperate moves from the U.S. Treasury to keep yields low or the interest on the debt low. This includes moves such as intervening in the yen currency market, or issuing new debt to buy our old debt with to keep yields low. Which honestly tells us two things. First, it shows us that things are accelerating, okay? Just how fast this crisis is moving forward. And second, it shows us that we are beyond the point of these tools working, okay? All of these desperate moves, what happened with yields? They continued to rise. They're going to continue to rise, meaning that we're going to have to see even more intervention, even a bigger escalation of rule changes. And all of this is happening as we're watching the government push forward demand for U.S. stable coins, which have to be pegged to the U.S. dollar or U.S. Treasuries, creating more demand for our debt. Soon, they could be forcing banks and other entities to hold more of these U.S. stable coins. And there's actually a name for this strategy of using the system itself to help finance its debt. It's financial repression, but it's not going to stop there. The train has left the station. So if we have a situation where more and more intervention isn't working and the interest costs of the U.S. debt keep rising, what is the U.S. going to be forced to do next? Well, it leaves one buyer that doesn't have any financial constraints, the Federal Reserve. The same institution that we're told that's going to be fighting inflation. That's the same institution that creates inflation, that gets to create the target for inflation, that gets to create the tools we measure inflation with. And then even when they miss their own target, they somehow get to grade themselves. And that is the institution, that is the dam that's going to stop this entire thing from coming on the tsunami that's coming towards us. That does not make me feel good at all. In fact, it's part of the whole reason I come on here every single day, because if you see the hypocrisy and if you see what's really happening in the system, then you too would be seeking for something to protect your wealth with against what's coming next, making sure you have a plan in place. Remember at the start of this, when I said that there were two bad options, right? Pay off the debt or change the rules, change the value of the currency. Well, what if there were a bigger plan? That the inflation that has been stealing all of our paychecks, all of our savings, all of our retirement, actually wasn't enough. What if at a certain point, the next trick up the US's sleeve is actually a big print, that it's all already decided because the next big print is going to run things up so much. Everyone with assets is going to be protected, but everyone who saves in the currency, I'm talking about anything that's dollar denominated, from again, your retirement account, annuities, pensions, you name it, right? Those are all going to be inflated away, which as those are inflated away, guess what else is inflated away? The US debt, it makes the debt easier to pay off. If you ask me right now, is another big print coming? The answer is a resounding yes, because like I said before, we study these currency life cycles here at ITM Trading. We've seen this movie play out before and we know the ending. It is a pattern, a pattern that you can watch, identify, and if you understand it, the good news, the good news, it's not all bad news, the good news here is that if you understand the pattern, then you know what's coming next and you can have a plan in place. Now, creating plans for what's coming next is exactly what we help our clients with. Yes, here at ITM Trading, we are a physical gold and silver dealer. So if you're looking to buy gold and silver, buy it, hopefully from us, but here's the thing, it's not just about buying your gold and silver, right? Again, it's about understanding the bigger picture of what's going on, how it directly impacts you, what you can do to position now for what's coming next, and even what you do on the other side of the reset, which is a part that a lot of people don't talk about. So we are here to help you create that execution plan. We have a team of incredible analysts. I work with them every single day. You guys have heard me say it before, but they truly are the best in the business. And if you don't already have a plan in place or you want a second opinion, call us at the number below. Talk to one of our expert analysts. I promise you will be getting a real person who really cares, who can help walk you through what's coming next. You can also set up a time that works best for you by clicking the link down below in the description. Whatever is easiest, just make sure you're prepared because as we've learned today, there is a big storm coming, okay? And it's how you navigate what comes next that's going to give you the peace of mind to sleep well at night. And as always, thank you so much for being here. I'm Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.