Fiat is FUBAR, Is This The End of Liquidity?

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.

 

I saw a wave, a dark wave, come over our nation. And it’s not just the election, of course, but this program is going to be all in the name RIGGED because when I, and we formed RIGGED, it was because of the financial system, but RIGGED is now becoming common in America. And it’s all RIGGED [against you].

This is RIGGED. I’m Terry Sacka.

 

This is going to be an alert on the, what we would call the canary in the coal mine for the financial system. This is the last leg or what you would say the last straw of what liquidity is for the financial system. So today I wanna show you what uh, is getting ready to happen worldwide because we’re in what we call a fiat system. And our banking system is known as a fractional banking system. Meaning for every thousand dollars you deposit in a bank, they will loan out upwards to $26,000. So everything that is in the banking system is actually kind of in the digits in the cosmos as some may say. And so they have to continue to always provide liquidity. They would be the central banks. They would have to either print money and add it to the float in the system or extend credit, which is really just digits in the cosmos because it doesn’t exist as an asset.

Now I know they put digits in the cosmos as an asset on the bank book, but a real asset would be something tangible, something you like oil that you can actually actually put your hands on. But just reported was that Japan is now at a 3.5% inflation rate. Now for us here in the United States, that doesn’t mean a whole lot, but Japan’s inflation was coming down. Now mind you, all of these central banks measure their inflation to these rigged numbers. So they don’t really matter anyway, but to the official narrative, whatever rigged numbers they’re using, then it helps them at least give the matrix whether inflation is going up or down. Because in the United States they said inflation was upwards to 7%. But if you go to shadow statistics, you’ll see it was in double digits. And far, far worse. It’s because they’re taking products out.

When they measure inflation, they’re cherry picking. So we can’t really take the numbers l legitimately, but what we do is use ’em because that’s how they’re using ’em to provide liquidity. So what’s important here with Japan is months and months of decline of inflation, they’re now starting to see inflation increase again. We’re starting to see that actually around the country and our country and around the world. The biggest problem they have is they’ve printed too much currency. That’s the issue here. Japan, Europe, all of them United States, they’re printing currency which goes into the float and dilutes our buying power. So as much as they want to lower inflation, it’s going to be very difficult this time round because the actual currency in the float isn’t what it used to be. It’s it’s excessive. And now we’re finding buying power no matter what happens, they can crush the economy and things are still going to be excessive because this is not buying what it used to and what it should.

But this is a big deal. So first I’m gonna show you this image showing you the Japanese inflation. And now when I’m talking about Japanese, this is almost across the board, but you’re gonna see what I mean why it’s important for Japan. But take a look at this. This is a Japanese inflation index from year to year, and I just wanna show you how from 2015 there in the middle, they had a real big spike of inflation. Of course the whole world did. And then you see how for a while it was moderate and coming down. And if you look to the right there, you’ll see that inflation is spiking drastically. And that’s a big deal. And when I mean a big deal, it’s a big deal because now they have to try to do measures to fight that inflation. In Japan, it shows that the inflation is turning back upwards after trending down for so many months.

But the biggest point here, Japan remained the last central bank that was still easing the monetary conditions. The others, the Europeans, the Federal Reserve, have been aggressively tightening their monetary conditions. Even the, well, the central bank especially and the Bank of England, Japan was the only one that was engaging in kind of like easy money and money printing. Well, now that, well, and what, lemme put this in context for you. What that really means is who’s providing liquidity to the global system? So as the central banks in the west have been tightening, they’ve been pulling liquidity out, they’ve been basically shrinking the credit sh trying to shrink the balance sheet, trying to shrink the float. Unfortunately it’s not going to work very well. And now that Japan is forced to actually go into tightening, who’s going to provide liquidity to the financial system, what’s been going on globally right now is they, they’ve been kind of trading off who’s or swapping off, you could say, who’s providing liquidity to kind of keep the float going.

Because remember, this system doesn’t survive if there’s not continued added printed money or float. This is the destructive nature of the western philosophy of fiat currency. And what we’re watching here is a near darn implosion of the whole system in the West. Why you’re hearing a lot about the World Economic Forum, the great reset, the whole idea of digital currencies. They need something else to replace what’s imploding here internally that just give you an idea of how spooked they became because of all the excessive money printing through the pandemic. Just look at this chart of the fed tightening cycle to get an idea of how aggressive they became. As you see from this fed tightening cycle image, you see that they used to slowly over time raise rates. That’s where you see the gray lines going in the nineties. That was in the early two thousands, late nineties and even in the 1516 range.

Look at the red line there on the left. That’s here just recently ending 2022. Look how quickly that they escalated the interest rates. And I know that’s been a conversation because the Federal Reserve was tightening really fast. Now why is this all important? Because we’re seeing the last stages of the rigging of our financial system and they’re <laugh> shouldn’t be laughing, but it’s just unbelievable that they’re in the panic stage of having to escalate the rate in escalating the rates. We are now seeing the banking system get in trouble. The inflation is coming in hot over in Japan. And so now the bank in Japan will sue be forced to end the money printing, which means the financial system will lose its final source of excess liquidity. Liquidity. Now why is liquidity important? I keep trying to say is because that is what is driving the stock market.

That’s what’s driving the economy. If you just look at charts, multiple charts over the years as the Federal Reserve here in the United States was printing their money and adding it to the liquidity float, the stock market was going up. So if you really wanted to just measure the stock market, all you had to do was measure how much money the Federal Reserve was printing and adding into the float. Now mind you, as they keep printing the money, this causes the inflation. That’s why we see such extraordinary prices in not just food rent, but just about everything We do take a look at this image for change in liquidity index because this is pretty stark. And now that we’re seeing Japan, which was actually providing the last bit of liquidity for the world, now that they’re going to have to be forced into the uh, tightening cycle, you can visualize for yourself what’s gonna happen.

Take a look at this. As you see here, the black line is the s and p 500 composite price index and the look red line is a liquidity index. As you can see the red line there when it spiked, that was when the federal reserve was taking action following the Silicon Valley Bank failure. Well now they’ve yanked the liquidity back out and you can see the black line, which is the market rally that took place with it hadn’t corrected yet. So now we’re in a position where the liquidity is being yanked, the Japanese are now forced into the tightening cycle and now everybody is tightening in the west. And so with everyone tightening in the west, the markets are still on the top. You could probably rest assured we’re looking for a nice correction. The banks are failing. Now this is only a handful of banks, but they’ve been very large banks.

They’re failing because we are fractional banking. There’s probably not many and I should be laughing, my goodness, I just stunned at this. There’s probably not many banks that are actually truly solvent because they take in deposits and then they loan money out in excess way more than deposit. I think there was somewhere of $1.4 trillion actually, um, in deposit on the banking system. Oh no, 14 trillion, I’m sorry, in deposit on the banking system, but only 1.4 trillion in real cash available. So you have a real big discrepancy there and there was somewhere around 1 trillion already taken out. So if as ev as everyone shows up to the bank to pull their money out, the money’s just not there. So every bank pretty much is insolvent already. And the problem becomes when we, the people show up to actually get our money out. Now a portion of us, maybe 10% can actually get hard currency out of the bank.

But we’re hearing reports from people around the country where banks are trying to offer, um, cashier’s checks or some other form because they don’t have the currency. So we’re at a real, real sticky point here in the banking system and now you’re seeing just now First Republic Bank is now going under and what are they doing? They’re trying to sell off assets and the big banks, which are now too big to fail, which governments will be bailing out, are now buying these smaller banks up. This is just the beginning stages of this. But when you saw in that interest rate earlier how they spiked straight up, it really put the pressure on a lot of these banks because of the way they made investments, we should have never bailed out Silicon Valley Bank. If you saw who they were and the amounts that they had there, those people should not have been bailed out.

The rule to the simple rule was 250,000 and below, supposedly the F D I C would bail them out and then they come in and bail out these hedge funds and a lot of these Chinese backed, um, you know, market companies, it was ridiculous, but they decided to do it. The F D I C is now out of money when it comes to the insurance fund, and so they’re going to have to raise capital quickly by the large banks by raising fees. The bottom line is the money’s not there. The F D I C does not have the money to back up the bank failures. I’m not even sure where they’re pulling it from. I’m sure it’s some kind of smoke and mirror, but they don’t have it in the insurance fund to be the banks anymore. So they’re getting these larger banks to come in to bail out the system.

But where’s the larger banks getting it? Yes, they’re fractional. So they’re just expanding the book, but there’s not a real asset backing it up. It’s a pretty big deal. Now, every major central bank is now in what we call tightening liquidity is gone and rapidly going to disappear. So loans are gonna get a lot more difficult and the financial system is gonna take a pretty big hit. What what I would kind of call this is a crash trigger. Here’s been really two crash triggers. Now there’s a lot of different prep proprietary models on this, but there were two major crash triggers that were hit in the last 25 years. One which calls for cell cell. One was in 2000 and the other one was in 2008. And I wanna leave you with this image because this is pretty stark about what we’re ready to face.

Take a look at this. This shows the bear market going back almost a hundred years. And as you can see in the blue, this is where we’re in a bull market. In the red is when we’re in a bear market. Just on the right here, the last two, as you can see, we came off of a big bull market through the nineties and in 2000 we completely collapsed. The market dropped 45% and it lasted over two years. And then we came back with money printing. We had a few years of run for another a hundred percent profit. And then boom, the 2008 collapse happened. And in 2008 the markets fell 51% and it lasted a year, almost a year and a half. And as you can see on the right, we’ve been running now 451% for a long time over 10 years. And we have yet to see that bear market.

And I’m contending with all of the liquidity issues you’re seeing worldwide and the de dollarization taking place, which we’re gonna touch on a little more next week. You are looking at the verge of a absolute market crash. All I’m saying is be prepared, if anything, maybe go to cash to the sidelines or be contrary into the downside because if this follows through and we start to enter into that recessionary bear market, we could easily be seeing a 40 and 50% correction in the stock market. And that’ll be just the beginning. But here will be the problem. To kinda wrap this up.

How are we going to get out of it this time? We’ve been printing currency over the decades to get us out of it before. Well, we’re kind of at the end of this cycle of the printing cycle of of US dollars and euros and even the Japanese yen for that matter usher in the World Economics Forum idea of a great reset digital id, digital money. They’re going to force it upon. We the people we’ve got to say now no to that fed now fed pay stuff, any form of digital dollar we have to demand. No way. We must maintain freedom to have transactions with people we want to have business with without anybody supervising. Because at digital currency, digital ID will track every single thing you do, who you talk to. And if you think there’s censorship and political persecution, now wait until they control every penny you spend. You might be saying goodbye to those hamburgers and you might be saying goodbye to that coffee. You never know what they’ll regulate when they can control every dollar you spend. So until next time, this is RIGGED [against you], I’m Terry Sacka.

 

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