What Does China’s Gold Have To Do With US Bank Troubles?

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.

 

 

(00:28):
today, we’re gonna be discussing the US banking system and the Chinese gold buying. Uh, it’s very interesting when you see how they work together. Um, I know the mainstream media likes us to believe that everything is okay. Uh, I know I’ve talked about that, where, you know, we think everything’s fine. We want everything to be fine, but the facts are the facts that there are serious systemic issues. We are the largest debtor nation in the history of the world. We are coming to the end of a cycle of one kind and moving into another.

(01:00):
We don’t exactly know what that change is. Um, most of it probably looks to, if they had their way digital id, digital currency, total slave state control. Um, I’m not so sure they can get that way. I think there’s a lot of people in the world, not just the United States, that are just not gonna go for that. So they need something bigger. Uh, the war in Ukraine’s not working. Uh, they do have this war in Israel picking up steam. I think it’s going to get a lot bigger. They need a major distraction because I, I say this often. They do not want you, we the people to believe that the financial collapse is because of malfeasance of the banking system. Um, but the facts are that we’ve been kind of a self-made Ponzi scheme for quite some time. And many understand that we just think we can keep going and do it forever.

(01:56):
Uh, but even the federal, uh, reserve is admitting that the banks are suffering, um, from massive deposit outflows. Now, this is a really big deal. This is kind of what happened in the Silicon Valley Bank, uh, right before that collapsed. And mind you, the Silicon Valley Bank, and along with I think a couple others that they bailed out, which they weren’t supposed to because they broke their own laws rules from 2008, Frank, but the FDIC deposit Insurance corporation went belly up. Well, not belly up in the sense of out of business, but they basically gave all their reserves away to bail these banks out. And so now they’re starting from scratch, uh, raising fees to the big banks. Uh, but the fact is, folks, you know, at the end of the day, if we had a systemic banking collapse, the money’s just not there. It would have to come in the tune of trillions from taxpayers and where are they gonna get that?

(02:48):
So you, your money in the banking system is not as safe as you think it is. I would definitely be diversified outside the system right now until this forest fire is done. Um, it’s probably gonna be a good couple years before we’ll know what happens. And I’m talking war, economic, economic collapse and, and all the multi multipolar world adjustments we’re moving into. You’re gonna wanna have gold and silver in a vault outside the system if you don’t want to have it at home. Um, there is a real easy process in private depositories around the country, extremely safe, safer than your bank, really, uh, fully insured. And you can store physical gold and silver in those vaults and replace of currency in the bank. And I would highly recommend that I would be given Cornerstone asset metals a call. Uh, but what we’re seeing is the usage of the Fed’s emergency funding facility.

(03:42):
It’s rising again, and it’s at a new record high last week. Banks are getting clobbered. So I mean, they are, and you just don’t, they’re not reporting it in what we’re, unfortunately in America, we have an extremely corrupt media and they’re, they’re reporting mind control elements to get you to think a certain way. And they will not tell you, they do not talk about anything that’s against the agenda. They are criminally corrupt politically. Um, and it’s not just our media, of course, we’re finding that in the alphabet agencies in our government as well. Uh, but all eyes are on the system again, and they’re gonna do some kind of a seasonally adjusted for the data. They don’t want to have to admit that any of this has taken place. They don’t want the people, we the people to go on a deposit run. If we went on a deposit run, the money is not there.

(04:43):
What you have in the bank, the bank has a fraction of all deposits. So if everybody showed up at the bank at the same time, you’re not getting your money and you think your FDIC insured, well, if they don’t have it, where do you think it’s coming from? And if you read the bylaws in FDIC, you’ll understand that they have 99 years to pay you back. If they truly did have to, they say they’re gonna pay you back right away. But that’s just not the case in a systemic collapse. But total bank deposits crashed by a mass of $83 billion. Uh, and I think that’s a, a pretty extraordinary number. Uh, and that’s just beginning of course. Um, we’re getting back down to the lows of April and May. Uh, this is just basically the same time we had the outflows of Silicon Valley Bank. And if you start going into non seasonally adjusted numbers as they like to play with the deposit outflows, were even huger 130 billion coming out of the banking system.

(05:47):
The money, the banks, they can’t afford it. They cannot afford you to take the money out. They have every dollar you have. Let’s put it this way, every thousand dollars you have in the bank, they’ve loaned out 25 to $30,000. They cannot afford you taking, um, the money out. If you take the money out, technically they’re supposed to rebalance the books and they’re gonna have to close down investments. And it’s not a good situation. You’re going to, and I’ve heard stories, plenty of stories over the last, you know, six months to a year and a half where the banking system has been harassing people for taking money out. They’re questioning you and remember, it is yours. Well, it’s not technically because you have given the bank a loan and once you put funds in a bank, you’ve actually given them a loan. They just have an IOU to pay you back.

(06:43):
You’re actually an unsecured creditor. It’s a very dangerous situation because many people have most of their life savings in a bank or in a CD thinking that it’s safe and it’s just not. But the reality is starting to set in for the decoupling between massive money market fund inflows and a flat deposit base. And this is not good. We are talking about a staggering difference. Even if you take the foreign bank deposit flows out, it’s still a huge number. It’s only a few billion different. So the total deposit delta, since the Silica Valley Bank crisis is about 280 billion. And it’s heading down. So on the other side of this ledger, um, large banks see the loan volume shrinking massively. A lot of people are not interested in doing loans either because of the high interest rates. So the key warning sign continues to trend lower.

(07:38):
And the small bank’s reserve constraint is flashing red supported above the critical level where the fed’s emergency fund is now leveled at. So if you were to kind of see this chart, we are heading straight down to reserve constraint levels on these small banks. And it’s just a matter of what banks get hit, how many Now if this war escalates, that market starts selling off, you are gonna, we are gonna be in trouble. The reason they’re flatlining the interest rates and not raising them, if they raise the interest rates, these banks are going down because the banks basically have been bailing out the government for years by buying the treasuries and the bonds. And so as these rates go up, the banks are losing line item losses in the billions and they can’t afford it. So they’re not raising interest rates. Now they feed us a line of garbage as as to why, oh, everything is okay, inflation’s coming down.

(08:40):
All of that is a lie. Inflation is still double digits year over year. The stock market, Dow Jones isn’t even up 1%. It’s flat, which means you’ve already lost over 10% of your stock holdings because of inflation. Now you haven’t gained anything. It seems like we have, but it’s flat. Now, individual stocks maybe have different, uh, stories, but right now the overall index is flat for the year. And in lieu of everything that’s going on in the Middle East, I highly doubt we’re going too much higher. And so we’re looking at a 10% loss in the stock market alone and why you have to be serious about diversification. But, uh, what are they gonna do to get out of it? How is the FDIC going to have the money? But they don’t to get out of bailing out these banks. You see, it’s not there.

(09:38):
So you pin that up with what you see going on in China and China are basically selling the dollars. And what we’re finding out, well, as you can see in the correlation anyway, they’re buying gold. So the Chinese have been dumping dollars, selling dollar denominated assets to buy gold. The question was, are they, and it sure looks like they are. The Chinese investors alone individually sold 21 billion in US assets in August alone, primarily US treasury bonds. Now they’re selling these things at a loss. So that tells you something even more because they’re not willing to wait around. They’re just taking the hit and they’re getting out of dodge. These capital outflows are soaring. And what’s interesting is these outflows are soaring in China.

(10:36):
Gold is also soaring the price of gold, which means they’re buying the gold. So a lot of this money is coming out and it’s going into physical gold. The Chinese are slow movers. Folks, if they’re buying gold, you better be, you better believe that’s the right move to do is why we should be. But I’d be more in silver, not gold. Gold is at the all time high wait till silver finally makes that move. Um, that’s a hundred percent return just from here. But the Chinese government is also buying gold and they’ve been doing it at a steady pace. The first is an effort to boost the Juan mind you. So what they’re doing is there’s two dynamics driving the Chinese to sell the US assets. The Chinese currency really has been struggling against the dollar, uh, due to the softness of the Chinese economy.

(11:30):
And the Chinese economy has some problems. For many of you that are unaware, they have built cities that nobody lives in. High-rise buildings all, all over the countryside that doesn’t have one occupant. They went crazy. I don’t know what they were building. There was, you know, conspiracy theories that they were building cities for the future because the world elite would be living there. I just think they were just taking advantage of money and trying to get people from the rural Chinese areas to come into and live in the cities. But they went nuts doing it. And the Chinese economy is in trouble and they have a very large, large economy, large population. They needed to maintain certain numbers and they’re just not doing that. So selling the dollar denominated assets for the Juan boosts the local currency at the expense of the dollar. That’s one element.

(12:25):
Anyway, the second potential reason for the us, uh, to sell US dollar denominated assets is for further d dollarization. The bricks is making a move. They’re coming out with gold back commodity backed currency system starting in January. Getting out of the dollar now that we are in a multipolar world is paramount. And they are doing it, not this, not just the Chinese, but the Russians and others are doing it. Bricks is rising. These nations are done with the western world. The only thing keeping America alive right now is we got the most powerful military in the world. But at the end of the day, I’m not so sure if that works. If these countries, if Hezbollah, if Iran, if they start going gorilla, if they start doing terrorist attacks all over the world, it will change the landscape tremendously and you better be Russia and China are backing that up big time.

(13:31):
So you have two reasons why, and I think the de dollarization is a bigger one. Uh, they’re trying to minimize their exposure to the US currency, uh, economically and geopolitical reasons. But from an economic standpoint, the Chinese have been aware that the government, the US government’s budget is outta control. We’re running right now about 1.7, close to $2 trillion deficit in fiscal 2023. And they want to keep sending hundreds of billions overseas. So here we’re at a time when we are literally in bankrupt mode. Now we can print money. So obviously we’re not bankrupt, but instead of spending that money here in our communities, we’re electing to send it overseas. And that’s classic for these neocons and neocons are in both parties. So don’t get that, you know, in your head it’s just one party or another. But these are people just designed for the World war.

(14:32):
And our national debt is north of 33 and a half trillion and it just keeps rising by the trillions. And they know our currency days are numbered and something has to happen. So why would any country, let alone the size of China, wanna expose themselves to that level of risk? You see, the US has a long history of using the dollars position as reserve currency. And we’ve been doing this since day one. Mind you, as a foreign policy hammer, we’ve been basically blackmailing, extorting and destroying nations. And, and people, if they do not go along with the agenda of the dollar or the US government and the, just what they did to Russia is all the needs to be said. I don’t care what anybody’s opinion is about the Russian War, they were forced to invade Ukraine is bottom line. They were, they had no choice.

(15:30):
We knew they were gonna do that because they’ve been wanting to do that. You see, you have to understand the real agenda here, but the American government has laid it out. This is not something that’s hidden. They wanted war with seven countries over a period of time since nine 11, and Russia was one of them. And I contended if when Hillary Clinton got in as president, which she did not, and that’s why they hate Trump so much, he screwed up the plans. Her very first thing was to go to war with Russia. And what was the first thing you know, sloppy Joe did? He gets in and goes to war with Russia, but we have a serious financial deficit issue. We’re gonna be going because of the interest on our debt, it’s exponentially growing really, really fast. So when you get to this level of, I don’t even know how to put it, it’s almost like a parabolic, but a hyper parabolic level where once you get started, it’s almost like taking a large boulder and then just rolling it off the edge of a cliff.

(16:32):
Once it gets going, you’re not stopping it. That’s exactly what’s going on right now with the US dollar in our deficit. There is no way we are stopping it. We are just going to accept the fact that very soon we’ll be 50 trillion in debt and keep going. But I contend that they’re gonna go to a World War to some extent in order to reset the system. And if the World Economic Forum gets their way, we all know where that’s leading to. So we’re not very credible anymore. We stole hundreds of billions of dollars from Russia. And that’s not settling well with other nations because they see if they can do it to Russia, they’ll do it to anybody if we don’t bend down and do what the United States says. So the confidence in the greenback is eroding tremendously thanks to all of this borrowing spending and money creation by the government and the American’s use of the dollar as a foreign policy weapon, which, you know, before they did it, it was kind of subtle, but now it’s bluntly in the face of supposedly our enemies.

(17:44):
But even our allies, these countries are weary of relying solely on the dollar and China is trying to shift away from that. And gold is one of the few markets that has sufficient liquidity to absorb billions of dollars in Chinese funds. The Chinese central bank has even been buying gold. I banana a gold buying spree for quite some time. Uh, the people Bank of China has bought a gold for 10 straight months ranked as the largest central bank gold buyer. This year. The Chinese Central Bank has increased its reserves by 166 tons. Now, that’s just what they’re telling you. But I can tell you one thing, what they’re not saying. And, and China has more gold than anybody can imagine. I mean even Jim Rickers lays it out. And I even disagree with Jim, I think there’s even more than that because the Chinese, whatever they mine in China stays in China and they’re importing gold from all over.

(18:44):
They have a lot of gold. Central banks all around the world have been buying gold over the last year. So if gold is so archaic and meaningless, why is that happening? See, China has a history of adding to the reserves and then going silent. And then even the times when they’re silent is when they’re actually buying it. And I know firsthand because the refinery I was working with, one of ’em was sending about 75 tons of gold a week to Hong Kong. And anything that went to Hong Kong went to China. So we know they’ve accumulated a tremendous amount of gold and they’re not stopping. They hold a lot more gold than they’re telling us. And I think they’re gonna come out one day and be able to prove that they have more gold than the United States and probably the United States and Europe and the IMF combined.

(19:40):
I know that sounds crazy, but you’d be surprised there’s more gold than you think out there. There are large unreported increases in Central Bank gold holdings in some of these countries that what they’re reporting, they’re just not being honest about it. So, you know, there’s, they’re pointing out that the Chinese tend to move slowly, of course. Um, but we do know and believe now that China is the mystery buyer stockpiling gold to minimize the exposure to the dollar. The question is, is it because the interest rates? Is it because they see our debt? Or is it truly because of the d dollarization and with our banking system in such a tremendous debt load because they hold the US government debt. A vast majority of the United States treasury load is held by the banking system. It’s kind of a scratch my back, I’ll scratch yours kind of thing.

(20:39):
So as the banks are holding the US debt, we’re in this catch 22, and I’m gonna leave you with this. If they raise interest rates, they destroy the banking system even more. If they lower interest rates, we could potentially see hyperinflation. We are done. Folks, there is no way out of this unless they keep flatlined for years to come. My guess they, they are going to have some form of distraction. We’re either gonna have another pandemic or a bio weapon released. We’re either going to have, uh, a war that is gonna be larger than just a skirmish in the Middle East, probably a third World War. Potentially something needs to come because the west is stuck. They’ve already printed more currency than they can print. They’re stuck on the interest rates. They really should be raising interest rates higher. But if they do these bank, the banks, and especially the small banks are outta business, then that’s your money.

(21:37):
If they lower, we are going to have so much currency chasing too few goods. You want to talk about a hyperinflation and if you think things are expensive now wait. We cannot go back. This genie’s not getting back in the bottle. The Pandora box has opened and we’re now seeing as we always hear the term kick the can down the road. The road is ending. The question is, what will happen next? I would get yourself protected. I would be heavily diversified. It does not hurt you to have gold and silver in a vault outside the system right now until this forest fires open over. Wait and see what trees are standing and then sell off and diversify back into the system. You’re going to regret it if you don’t because time is of the essence. It can happen any moment overnight. This world changes. That’s how fragile it is. So until next time,

 

 

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