More Risk in System Now than Any Time Ever – Bill Holter
By Greg Hunter’s USAWatchdog.com
Financial writer and precious metals expert Bill Holt (aka Mr. Gold) said a month ago that rising “gold and silver prices were sniffing out risk.” Looks like the Federal Reserve is also smelling some risk. It recently, quietly flooded the banks with $125 billion i-------n in just five days. The cash went into the repo market. Mr. Gold says, “This is just a tremor, the cash going into the repo market. Understand that there are more derivatives outstanding, and there is more debt outstanding. Whatever metric you want to use to measure it, there is more risk in the system now than any time ever. Go back to 2008 and 2009, and we were very close to a complete meltdown with markets not opening up on Monday morning. They started handwringing over $700 billion in TARP, while behind the scenes, the Federal Reserve created $16 trillion or $17 trillion and lent it all over the world. It didn’t right the ship, but it did stop it from sinking. I ask you, has anything changed or has anything been fixed? Did they address any of those problems we had back in 2008 and 2009? The answer is no. In fact, they double, triple and quadrupled down on those same policies.”
Mr. Gold goes on to say, “They are trying to fix a debt problem with liquidity. The liquidity is like a Novocaine s--t. It makes things feel better temporarily, but it does not fix the problem. The problem is there is too much debt outstanding by any metric. Whether you look at debt to cash flow or debt to equity, a perfect example is the US dollar. The United States is now 130% debt to GDP, and, oh, by the way, the dollar is still the world reserve currency. In 1982 when I graduated from college, if debt got to 100% of GDP, it was considered a banana republic. That being said, you could say the entire world is a banana republic because they use as a reserve currency something that is issued by a bankrupt entity. It is insolvent because look at the Fed’s balance sheet. The Fed has negative equity now. They lost so much on bonds they bought in 2008 and 2009, and interest rates have gone up. That means their portfolio has dropped. . .. two or three years back, they were operating with only $65 billion in equity. They had trillions of dollars, and if you want to count derivatives, they had quadrillions of dollars (of debt) dancing on the head of a $65 billion pin.”
Mr. Gold is not worried about the most recent correction with gold and silver prices. Holter says “Watch out for a possible ‘failure to deliver’ of physical gold and silver at the end of the year. . .. Failure to deliver physical metal will end the fraud, and it will be game over for the metal contracts. More and more people are now standing for delivery.”
With the government shutdown and SNAP food benefits being cut off, where does this end? Mr. Gold says, “You’ve got people on line saying if they cut off the food that they are going to go out and steal to feed their families. . .. Mad Max, this is where this ends. Is it going to be Mad Max for years? It might be two weeks or two months. God forbid it goes on for six months because the skills are gone with hunting and farming. What people know how to do is get in their car and go to the corner store.”
In closing, Holter says, “Get your capital out of the system.” Buying physical gold and silver is getting cash out of the system and putting it under your direct control.
There is much more in the 45-minute interview.
Join Greg Hunter of USAWatchdog as he goes One-on-One with financial writer and precious metals expert Bill Holter/Mr. Gold for 11.4.25.
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