Permanent Inflation:The Banks Even See It Coming

Welcome to RIGGED [against you], the podcast that helps you RIG the wealth game back in your favor. I’m Terry Sacka AAMS of Cornerstone Asset Metals.

This is RIGGED. I’m Terry Sacka.

Today. We’re going to talk about the comments that are coming out of some of the biggest banks and the they’re actually weighing in on the idea of inflation being temporary or more permanent. And there’s others that even see something bigger. And then I’m going to give you a little spin because what they say is a remedy actually, isn’t really that viable of a remedy. And it’s, it’s pretty fascinating right now, what we’re seeing unfold. Um, it really is a shell game. And so what I want to do is get into explaining a little bit, uh, first bring up the, uh, article that just came out with Jamie diamond. He’s the head of JP Morgan. And he comes out saying, you know, they’re hoarding cash because there’s a very good chance that inflation is here to stay. Now there’s a lot more cash than whether it’s talking about.

I mean, if you look into the reverse repo market, uh, what they’re doing is taking cash away from the banks, forcing them to buy us treasuries. Uh, it’s kind of like a reverse swap or to try to take some cash out of the system because these banks aren’t really lending the money and we think we have inflation. Now, can you imagine if they lent this money that is, uh, sitting in the cash position, but JP Morgan decided not to engage in this. So JP Morgan says that they’ve been effectively stockpiling cash rather than using it to buy treasuries or other investments because of the possibility of higher inflation, uh, will force the federal reserve to boost interest rates. Diamond said Monday during a conference is that we have a lot of cash and capability and we’re going to be very patient. Well, the bank now expects about a 52 billion in net interest income.

They’ve got a lot of money going on. They don’t mind Bob. They think that there’s a very good chance of inflation will be a lot more than transitory. And you got diamond coming out saying this. Now what’s interesting about that is they’re sitting on the cash because they’re talking about rates going up and then they would buy treasuries with a better rate. Do you realize we have actually real interest rates that are going negative? We’re almost on the verge of negative with real rates. Now it gets a little complicated explaining all of that, but this is, this is a very strange statement because raising interest rates in the United States, isn’t exactly viable. We have racked up so much debt that if we just raise interest rates a quarter point, it would bring roughly 60 to $75 billion, additional that we would have to pay on the interest of our debt.

So think about that for a minute. If you just do one point on the interest rates, you’re looking at roughly $150 billion more a year, they need to pay interest on our debt. Just the interest portion. Now, mind you we’re, we’re not covering we’re. We’re behind. We’re spending a trillion dollars plus more every year than we’re getting in tax revenue. And we have record tax revenue. They can’t afford to raise interest much. Now, if they do, it’s going to be a very short, very temporary thing, just to kind of act like everything is still okay, but it’s not because real interest rates are going negative and huge. They’re in a lot of trouble because there’s a lot of cash and they’re continuing. And now they’re talking now, it doesn’t seem like they have the votes, but they’re talking about doing a massive, massive 4.1 trillion infrastructure, which by the way, is a total lie.

Only about 600 billion is going to really roads bridges in electrical grid. The other three and a half trillion that Democrats are trying to put through is actually human it’s welfare. It is, you know, God blessed man, to try to help some people, but this is called non-productive money right now, the United States is spending $4 and 70 cents of debt for every $1 of production or economic growth. That is absolutely unsustainable. That’s 370% negative. We’re not getting growth back in the day. You could print a dollar and you would get very close to a dollar of growth. That’s a healthy, strong vigorous economy, but we’re printing $4 and 70 cents for every $1 of growth. That’s really bad. We keep going down. We can’t turn the corner Warner. I personally think they don’t want to. I think this is a big setup. I think they’re going parabolic both in the system out to usher in a new SU cruisy system.

The concept of the great reset. I’m not convinced they get away with it, but if they get their way, they’re going to go totally cashless. So there’ll be no currencies. Everything will be digitally mined. Everything will be digitally transferred. And then behavior and psychology will be completely controlled. If you don’t listen to the central authority will turn off your money. Now, JB that’s JP minds, JP Morgan’s take Jamie diamond. So to me, that just seems a little odd because I don’t really see how number one we could afford to raise the interest rates. And if they do, what’s a quarter point or a half a point, but it is interesting that they’re not going in the reverse repo to buy the treasuries. Now, the key Rio or the key kind of thing to pay attention to here is neither is the rest of the world.

A lot of foreign countries have stopped buying the U S debt. They see the dollar is collapsing. The dollar is being destroyed. We have done trillions in bank bailout. The federal reserve is 8 trillion in the hole. We have unfunded liabilities to a hundred trillion and they’re doing trillions and stimulus causing massive inflation. That diamond, even if he’s admitting it, you know, it’s worse. He’s even admitting the fact they didn’t have this. Doesn’t look like it’s going to be temporary. No, of course, it’s not going to be temporary. You have gasoline up 45% since Mr. Biden took over things like oranges and apples and coffee of 8%. They’re not going to be transitory because the dollar doesn’t buy you the same. So then we go on a flip side of this with Mike Wilson. Mike Wilson is Morgan Stanley’s, uh, uh, kind of Jenny’s his sell side analyst, but back in the summer of 2018, when stocks were surging, and this is key because it’s really good history when stocks were surging, at least until the fourth quarter, when the fed made that policy error of hiking too hard and unleashing the first mini bear markets since the financial crisis.

And they just hiked a few points, quarter point types, not full points.

And when virtually all sell-side analysts where you formally bullish in the market, they did this Morgan Stanley’s mark. Uh, Mike Wilson emerged as the Street’s a lonesome bear. If the fed tries to raise interest rates right now, after 13 years of economic expansion, the largest expansion in us history. But by the way, none of us are really feeling. You’ll kind of get a picture of what’s going on here. Number one, they can’t raise. Go ahead and go ahead. And now believe me, they’re they’re saying this 4.1 trillion, all don’t worry. It’s not going to add to inflation. That is such a lie there. Even if they want to raise taxes, which they will, if they get their way, you’re still not making up the difference. There’ll be trillions and trillions, not to count the hundred billion a week we’re doing to bail the banking system out. There was a day that $150 billion, one time bail out for the SNL was a big deal.

Now we’re doing a hundred billion a week. We are printing currency out of style. Literally. Now one, because we have to we’re in debt and we’re getting deeper into debt. And this is a heck of a time for a green new deal. Heck of a time to go socialist, heck of a time to explosive, really expand welfare. This is exactly what the Romans did before collapsed. They massively expanded welfare just to keep the people quiet. And then pretty soon the, the money was no longer golden silver. It was all copper and they had no more money to pay the troops. And then there you go. The enemies come read down the room, the roads that Rome built and destroyed them. We’re doing the same thing to the dollar. Now we have the best military. We are viable, but we’re in serious trouble. And the world knows it because they’re buying a massive amounts of gold and silver and Russia has completely dollarized.

So it’s when you start looking at this, is there a lot of it is just doublespeak, but go ahead and try to raise the rates right now. Even if we have a 20% correction with all the money printing, if they unleash it right, we’re going to have a small mini econ we could anyway, but if the Democrats don’t screw it up, completely putting all the money into non-producing entities. These welfare is great because it helps people, but it’s not productive. And a lot of the welfare they’re looking to give to people isn’t to people that need it. Well, a lot of them don’t, there’s a lot of laziness going on, but we do have serious inflation problems. On the flip note, I can see where helping people out during this inflation is important to, because wages must go. They must, we just, you have to rise in order to combat this inflation.

So as they have trillions and trillions being added to the system, they’re trying to take it out of the system, but they can’t, it’s been monetized. They can’t pull it out. They can sell it treasury short term, take the cash off the bank books, but then they’re going to have to put it back. It’s part of the float. You can’t just destroy it. And if you raise rates, the whole system collapses, this is a pickle. This is why it is so vital. At any time, we are near the euphoria stage of the psychological index of India, the vesting words, greed by self fear. And when you euphoria level of this index, it’s where is the risky as to financial risk is the riskiest time.

And I don’t, I’m not talking 20% if they don’t have it, right, you can see 50, 60% can’t afford this. The only, the other time we were in this position was Deren coming out of world war II, but that was a war. By the way, after we had most of the world’s gold too, we weren’t in debt like that. This time is different. Instead of being the world’s largest creditor nation, giving money, we are now the world’s largest debtor nation in history, baby boomers, retiring at to about 10,000 every day, coming off of taxes, going on to unfunded liabilities, explosive welfare program and expansion, which I do get. But at the same time, we don’t have the money. You can raise taxes. You’re just going to kill the economy. You cannot raise what we need for the expenditure. We are definitely entering into a time.

We have two choices. One is a catalyst of some kind of an unknown variable that they, well, I know they’re trying because remember folks, this virus, although it’s a bioweapon manmade virus out of China, we know it. So as Kobe SARS, too, they’re messing around with science, mess around with God and is screwing things up. The virus is real, but is a pandemic is a lie. The death numbers are a lie. The 10th day, the PCR test at 40 cycles. Why this [inaudible] was supposed to go on this lockdown. This tyrannical Cami locked down from the who orchestrated through all of civilization. This lockdown wasn’t. My theory was supposed to last for three years. At least it was supposed to be this, oh my gosh, all terrifying variant of a virus so bad. This is the, this is the weakest pandemic. By definition. If you just look at all the pandemics in the last couple of few hundred years, it’s pathetic.

And we know the death numbers are a complete lie. Most people don’t know that, but when you actually get in, you do the CDC even said, when they back out the numbers, there’s really only about now maybe about 12 to 15,000 people that died actually from COVID itself. Everything else is a morbidity, pneumonia, heart attack, but they just had a 40 psycho PCR test that, oh my gosh, we got a fragment of a molecule of some kind of virus strain, not even detecting COVID specifically. It is a lie. He needed the lockdown the last three years. So they could destroy the Western system so they can usher in this global central system led by the IMF where they go full blown Soshi Kami go and digital money and completely rearranging our lives use in our freedoms and the failed because president Trump was too successful.

Why do you think they attack him so much? He was everything against the narrative of the world order and they couldn’t tolerate it because they need us to go into slave world order one world order concept, digital money, total control, because they’re losing grip. The economic system is failing. We’ve expanded beyond belief. All the currencies are collapsing. This is a fascinating time. Fascinating why you need to be protected with tangible assets. I definitely would be vigilant about being focused and not be too euphoric in this time. So until next week, God bless each and every one of you. Stay strong.

 

Cornerstone Asset Metals:
With record money printing, wild fluctuations in the stock market, and our devalued currency, only one easily accessible investment has stood the test of time – and that is precious metals. Precious metals such as physical silver and gold are a store of value, provide stability for your portfolio, and are the most widely accepted hedge against inflation and market volatility. Fortunes of incalculable wealth have been built throughout history through ownership of these wonderful metals and smart investors still rely on the dependability of silver and gold to protect and preserve their hard earned wealth, and prosper in times of economic uncertainty. Call Cornerstone Asset Metals today at 888-747-3309 to protect, preserve and prosper with silver and gold. Call 888-747-3309 or visit CornerstoneAssetMetals.com