Impending Financial Storm? US Debt Deadline in June Could Trigger Global Crisis | Finance Hacked
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FINANCE HACKED team would like to thank the audience for their interest and support of the Channel in the past time. We hope that the content of FINANCE HACKED will bring long-term value to the audience.
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A major financial crisis could be just months away, potentially far exceeding the 2008 downturn. The clock is ticking towards a critical date: the end of June this year. That's when a massive $6.5 trillion in US debt matures, and how the US government handles it could send shockwaves through the global economy.
The depreciation of the US dollar is likely just the beginning. With the US Treasury running low on funds and needing to refinance this debt at much higher interest rates (around 4.5% compared to near-zero previously), the situation is precarious. The video delves into why this seemingly technical issue could lead to a collapse in stocks, bonds, and potentially all global assets.
However, this looming crisis also presents a rare opportunity. Learn why those holding safe-haven assets now could be positioned to profit and acquire assets at rock-bottom prices when the dust settles.
The analysis explores the historical context of US bonds, the recent actions of major holders like China and Japan, and the potential strategies the US might employ, including the Federal Reserve's role in potentially printing money and lowering interest rates during a collapse.
This isn't just about finance; it's about understanding the forces that could dramatically reshape the economic landscape and impact your personal wealth. Don't miss this critical information that could help you navigate the potential storm and even find opportunities amidst the turmoil.
Tune in to understand:
The significance of the June US debt deadline.
Why the dollar's depreciation is just the first step.
How rising interest rates impact US debt refinancing.
The changing dynamics of the US bond market.
The potential for a global asset and currency collapse.
How the Fed might intervene and the potential consequences.
Strategies for protecting your assets and potentially profiting during a crisis.
Stay informed and prepare for what could be a pivotal moment in financial history.
#FinancialCrisis #USTreasury #DebtMaturity #USDollar #BondMarket #StockMarket #EconomicCollapse #FederalReserve #SafeHavenAssets #Gold #InvestmentStrategy #MarketAnalysis #GlobalEconomy #WealthManagement #FinanceHacked #EconomicForecast
----------------------------
FINANCE HACKED team would like to thank the audience for their interest and support of the Channel in the past time. We hope that the content of FINANCE HACKED will bring long-term value to the audience.
All contributions to support the development of the Channel, dear viewers can send to:
- PayPal: https://paypal.me/FinanceHacked
- Wise: https://wise.com/pay/me/hongnguyenphuongd
All ideas or feedback to the Channel, our dear friends can send to:
- Gmail: financehacked@gmail.com.
----------------------------
A major financial crisis could be just months away, potentially far exceeding the 2008 downturn. The clock is ticking towards a critical date: the end of June this year. That's when a massive $6.5 trillion in US debt matures, and how the US government handles it could send shockwaves through the global economy.
The depreciation of the US dollar is likely just the beginning. With the US Treasury running low on funds and needing to refinance this debt at much higher interest rates (around 4.5% compared to near-zero previously), the situation is precarious. The video delves into why this seemingly technical issue could lead to a collapse in stocks, bonds, and potentially all global assets.
However, this looming crisis also presents a rare opportunity. Learn why those holding safe-haven assets now could be positioned to profit and acquire assets at rock-bottom prices when the dust settles.
The analysis explores the historical context of US bonds, the recent actions of major holders like China and Japan, and the potential strategies the US might employ, including the Federal Reserve's role in potentially printing money and lowering interest rates during a collapse.
This isn't just about finance; it's about understanding the forces that could dramatically reshape the economic landscape and impact your personal wealth. Don't miss this critical information that could help you navigate the potential storm and even find opportunities amidst the turmoil.
Tune in to understand:
The significance of the June US debt deadline.
Why the dollar's depreciation is just the first step.
How rising interest rates impact US debt refinancing.
The changing dynamics of the US bond market.
The potential for a global asset and currency collapse.
How the Fed might intervene and the potential consequences.
Strategies for protecting your assets and potentially profiting during a crisis.
Stay informed and prepare for what could be a pivotal moment in financial history.
#FinancialCrisis #USTreasury #DebtMaturity #USDollar #BondMarket #StockMarket #EconomicCollapse #FederalReserve #SafeHavenAssets #Gold #InvestmentStrategy #MarketAnalysis #GlobalEconomy #WealthManagement #FinanceHacked #EconomicForecast
Category
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LearningTranscript
00:00A financial crisis looms within the next three months, the depreciation of the U.S. dollar is merely the initial step.
00:09The truly decisive blow is expected to be unleashed after 90 days, placing it within a maximum time frame of three months.
00:19This represents the final interval granted to us by the U.S. government.
00:24Should the U.S. Federal Reserve and the global community fail to reach a compromise,
00:30the ensuing phase will involve a financial crisis potentially surpassing the severity of the 2008 downturn.
00:37This month alone, stocks and bonds have inflicted considerable distress upon numerous individuals.
00:44However, in less than three months, the potential collapse might extend beyond stocks and bonds to encompass the entirety of global assets.
00:54Yet, it is precisely during this period that individuals holding safe haven assets will find an opportunity to secure profits and acquire assets at the market's lowest point.
01:08What do I mean?
01:10Finance Hacked warmly greets you and our dear friends.
01:13Everyone, while forgetting a girlfriend's birthday or a wedding anniversary might result in the loss of a few luxury items,
01:23overlooking a critical date this year could lead to the instantaneous wipeout of assets painstakingly accumulated over years.
01:31This pivotal date is the final day of June this year.
01:35Why is this date so significant?
01:39It's because the $6.5 trillion debt previously incurred by the U.S. is scheduled to mature in June,
01:46specifically on the last day of the month.
01:50At that juncture, the U.S.'s strategy for managing this debt will become apparent.
01:56One might question the relevance of U.S. debt repayment to individuals elsewhere,
02:01wondering why this day holds such importance.
02:05In truth, many remain unaware of the gravity of this situation.
02:11The $6.5 trillion obligation due this June largely stems from borrowing during the pandemic era.
02:19During that time, the economy faced a downturn and the U.S. stock market experienced multiple trading suspensions.
02:29Concurrently, the Fed persistently expanded its balance sheet,
02:33injecting capital into the market and lending these newly created funds to the U.S. government
02:39and capitalists at interest rates approaching zero.
02:43Consequently, the $6.5 trillion debt maturing this June carries an extremely low,
02:50almost negligible, interest rate.
02:53The predicament, however, is that the U.S. government's Treasury currently holds only a few
02:59hundred billion dollars, an amount insufficient for debt repayment.
03:05Thus, the sole recourse is to incur new debt to settle the old, however, over the past few years,
03:12the Fed has consistently raised interest rates.
03:15Presently, the U.S. must borrow funds at an approximate interest rate of 4.
03:235%.
03:24Consider this simple analogy.
03:27Imagine I lent you $1 million five years ago,
03:31agreeing to forego any interest if you repaid the principal by this June.
03:36You would naturally be pleased,
03:38having spent the funds freely over five years without interest concerns.
03:43But now, having depleted the money, you cannot repay me.
03:50Your only option is to borrow $1 million from another source to settle your debt with me,
03:56thereby becoming indebted to the new lender, a practice known as rolling over debt.
04:02The issue is that this new lender mandates an annual interest rate of 4.5%.
04:08This means that after five years, besides repaying the $1 million principal,
04:14you would owe an additional sum exceeding $200,000 in interest.
04:20The situation with U.S. bonds mirrors this scenario.
04:25During the pandemic, the U.S. borrowed heavily at near-zero interest rates,
04:31facilitating liberal spending.
04:32Now, with the Treasury's reserves dwindling to a few hundred billion dollars and the $6.5 trillion
04:40debt nearing maturity, the U.S. confronts the imperative of repayment.
04:47If unable to repay, the U.S. must resort to further borrowing, securing new debt to retire the old.
04:53The crux of the problem lies in the current interest rate for new debt,
04:59which has escalated to approximately 4.5%.
05:03Consequently, by June, the U.S. faces a transition from a period of virtually no interest payments
05:11to an annual obligation of paying a high for 0.5% interest rate.
05:16Essentially, the U.S. is transforming old, low-interest debts into new, high-interest ones.
05:22With only a few hundred billion dollars remaining in the government treasury,
05:28funds are inadequate for expenditures and are projected to be fully depleted around June.
05:35Simultaneously, June marks the deadline for repaying the $6.5 trillion old debt.
05:42Failure to repay necessitates borrowing anew at the high for 0.5% interest rate.
05:48The most critical challenge, however, is that even if the U.S. seeks to borrow,
05:55there's no guarantee lenders will be willing.
05:59Why has this situation arisen?
06:02Historically, despite very low interest rates on U.S. government bonds,
06:07numerous entities eagerly lent their assets to the U.S.
06:11For instance, lending $1 million might yield only $1.02 million after five years,
06:19a return significantly lagging behind inflation.
06:24Nevertheless, investors competed to purchase U.S. bonds.
06:29The reason was the consistent appreciation of U.S. bond prices.
06:33Previously, lending $1 million to the U.S. resulted in receiving a $1 million IOU,
06:40a U.S. government bond.
06:43This bond could then be sold on the open market,
06:47potentially fetching $1.1 million in a single transaction
06:51due to the steady historical rise in bond prices.
06:55This dynamic incentivized lending to the U.S.
07:01As earlier purchases secured bonds at lower prices,
07:05promising substantial profits upon resale as prices climbed,
07:09in essence, U.S. bonds functioned as speculative instruments.
07:14If one purchased U.S. bonds in 2014, by May 2020,
07:19the value of those holdings would have doubled,
07:22a doubling in six years.
07:25The high demand ensured liquidity,
07:27meaning sellers had no concerns about finding buyers.
07:32Furthermore, the debtor was the United States,
07:36the global superpower, alleviating fears of default.
07:41Consequently, U.S. government bonds
07:43were traditionally perceived as risk-free assets.
07:48Simply put, in the past,
07:50if the value of purchased U.S. bonds declined,
07:52one could simply hold them,
07:55anticipating an eventual price recovery.
07:59Even if prices didn't rebound,
08:01the U.S. government guaranteed repayment upon maturity.
08:05Buying U.S. bonds was, therefore,
08:08almost inherently profitable,
08:10potentially doubling one's investment over six years.
08:14This perceived security prompted many to employ financial leverage when purchasing U.S. bonds.
08:21For instance, an individual with $1 million could buy bonds,
08:26pledge them at a bank to borrow $950,000 cash,
08:31use that cash to buy more bonds,
08:33pledge those to borrow $900,000,
08:36and repeat the cycle.
08:39This process of buying, pledging, borrowing,
08:42and buying again allowed leverage ratios of five or six times.
08:48Meaning an initial $1 million could control $5 to $6 million in U.S. bonds.
08:55However, observing market trends from May 2020 reveals a continuous decline in U.S. bond prices.
09:02Imagine being a bank that lent $950,000 against $1 million worth of bonds.
09:12If the bond value drops to $950,000,
09:16the collateral barely covers the loan.
09:19If it further falls to $900,000,
09:22would the borrower repay $950,000 to redeem bonds worth only $900,000?
09:29Assuredly not.
09:32Therefore, as bond prices began their descent,
09:36banks initiated immediate debt collection efforts.
09:40Those leveraged five to six times faced intense pressure to repay.
09:46They were compelled to continuously sell bonds to meet their obligations.
09:51This sell-off cascade,
09:53Occurring over just three years,
09:56erased the entire cumulative growth achieved by U.S. bonds over the preceding six years.
10:03Why did U.S. bonds experience such a dramatic fall?
10:07A significant factor was the large-scale selling of U.S. bonds by China and Japan in recent years.
10:15The core issue is this,
10:17people previously flocked to buy U.S. bonds due to their reliably increasing prices.
10:24Now, however, bonds are consistently falling,
10:27entering a bear market,
10:29with major holders like China and Japan actively divesting.
10:35Numerous U.S. banks have collapsed recently
10:37due to excessive holdings of these depreciating bonds.
10:42Given this context,
10:43would one still dare to purchase U.S. bonds?
10:46With the U.S. Treasury nearing depletion and facing the prospect of borrowing at high interest,
10:54coupled with uncertainty about finding lenders even at high rates,
10:58what options remain,
11:00U.S. bonds currently resemble a very long,
11:03dilapidated house poised for collapse at any moment.
11:07One could perpetually repair and refurbish it,
11:10but such efforts offer only fleeting cosmetic improvements
11:14while the fundamentally weak foundation and the risk of collapse endure.
11:19Alternatively, one could demolish the house entirely and rebuild from the ground up.
11:26Figuratively, if you were the U.S. government,
11:29you could persist in trying to sustain U.S. bonds,
11:33or you could opt for a death and rebirth strategy,
11:36trigger a collapse of the entire U.S. economy,
11:40consequently pulling down the global economy,
11:42then re-emerge from the devastation,
11:45positioning the U.S. as the fastest recovering economy
11:48and reconstructing the house the new.
11:52Which path would you select?
11:55In 2008, the U.S. chose demolition.
11:59Now, we confront a similar scenario,
12:02facing a ticking time bomb set to detonate a global economic crisis.
12:08If you recall the desolation of the 2008 financial crisis
12:12or the panic during the 2020 U.S. stock market trading halts,
12:16you'll grasp that individuals dismissing this situation
12:20as a relevant risk losing everything by the end of June.
12:24Conversely, those who discern the underlying strategy
12:28early stand to acquire significant wealth.
12:31If you wish to avoid becoming a casualty
12:34and potentially improve your socioeconomic standing,
12:38consider following updates,
12:40as more information is planned for later dissemination.
12:44To avoid forgetting this information after hearing it,
12:48effectively wasting time,
12:49you might consider saving or bookmarking this content
12:53for easy future reference.
12:54How, then, can the U.S. government resolve
12:59the dual challenges of refinancing low-interest debt
13:02into high-interest obligations
13:04and addressing the lack of spending funds?
13:08Only one scenario would likely compel the powers
13:11behind the U.S. system to intervene,
13:13the Federal Reserve activating its money-printing capabilities,
13:18using the newly created funds to purchase U.S. bonds,
13:21and subsequently lending this money back to the government for expenditure.
13:27Furthermore, interest rates would need to be drastically reduced,
13:31ideally towards zero,
13:33but this raises another question,
13:35why would the Fed assist the U.S. government?
13:39Because if buyers for U.S. bonds vanish,
13:42the U.S. cannot repay the $6.5 trillion debt.
13:46The only remaining course would be to declare default,
13:51acknowledging the worthlessness of its IOUs.
13:55Lenders to the U.S. would be unable to recoup their dollars,
13:58effectively losing their investment.
14:02If a dominant nation like the U.S. were to default so blatantly,
14:06the global reaction would be an immediate flight from the U.S. dollar,
14:10with capital shifting into alternative assets,
14:13consider the analogy of a bank.
14:17People deposit money because they perceive it as safer than keeping cash at home.
14:22If the bank declares bankruptcy,
14:25depositors, fearing they won't recover their funds,
14:28would rush to withdraw.
14:31Similarly, people use the U.S. dollar
14:34because it's often considered safer than their domestic currency.
14:37For instance, a Ukrainian citizen amidst war can preserve wealth by holding U.S. dollars.
14:45Crucially, the U.S. dollar's value is intrinsically linked to U.S. government bonds.
14:50Purchasing these bonds requires U.S. dollars,
14:55meaning holding dollars is a prerequisite for lending to the U.S. government.
15:00But what happens if the government defaults and stops payments?
15:05The bonds held instantly become worthless.
15:08Would anyone still want to hold dollars?
15:13Would holding dollars remain safe?
15:15A bank default triggers panic.
15:18A U.S. government default would elicit a similar response.
15:23The reaction would be a mass sell-off of dollars in exchange for other perceived safe-haven assets.
15:29Once the U.S. dollar loses the backing of U.S. bonds due to a government default,
15:35it would face an unprecedented sell-off, rendering it mere paper.
15:40All U.S.-based assets would become valueless.
15:44Therefore, the Federal Reserve effectively has no choice but to intervene.
15:50Failure to do so would mean the capitalist elites behind the Fed
15:54would see their own wealth and assets evaporate.
15:57In essence, the question isn't if the Fed will expand its balance sheet
16:02and print money to save U.S. bonds,
16:05but when and how would the capitalists truly wish to perish alongside the U.S.
16:11Moreover, the Fed ceased shrinking its balance sheet earlier this year,
16:17indicating it stopped withdrawing money from the system.
16:21The logical next step is balance sheet expansion,
16:24money printing, and injecting liquidity back into the market.
16:30Rescuing U.S. bonds is thus virtually guaranteed.
16:34But how might the Fed orchestrate this rescue?
16:38One approach involves expanding the balance sheet and printing money to purchase government bonds,
16:45but without lowering interest rates, maintaining the high for 0.5% level,
16:50many might question if 4.5% truly qualifies as high.
16:56Recall that the U.S. government previously borrowed at near-zero interest.
17:01Now, at 4.5%, borrowing costs have more than quadrupled.
17:08Given that the borrowing involves trillions of dollars,
17:11even a 1% interest rate translates to enormous sums.
17:15Unlike personal loans of tens of thousands where a 5% rate is comparatively minor,
17:23therefore, if the Fed refrains from lowering interest rates annually,
17:27the U.S. government would perpetually serve the interests of the capitalists behind the federation.
17:33In simple terms, American citizens pay taxes from their earnings to the government,
17:40which then uses these funds to pay high interest to the Fed and the tycoons holding short-term bonds.
17:47Persistently high interest rates on the dollar would force increasing numbers of U.S. businesses into bankruptcy,
17:54as they would face even higher borrowing costs than the government's for 0.5%.
18:00Such high rates, if unpayable, lead to bankruptcy.
18:05Business failures result in widespread job losses.
18:10Unemployment suppresses spending, triggering an economic recession.
18:15A recession, in turn, precipitates a collapse in both stock and bond markets.
18:21At such a juncture, individuals like Warren Buffett,
18:26having already liquidated their U.S. stock holdings and possessing substantial cash reserves,
18:32could acquire distressed U.S. assets at bargain prices.
18:37During this phase, such investors hold not only cash but also cash equivalents like short-term U.S. bonds,
18:45three months to one-year maturity.
18:47When these mature, the government must repay the principal plus high interest.
18:54In effect, these investors not only lend to the government at high rates but can also readily
19:00convert these bonds into dollars to acquire cheap assets when desired.
19:05This brings us back to the initial analogy, U.S. bonds are the long, old house.
19:11Repairing it, the Fed propping it up, doesn't fix the underlying issues.
19:17It remains undesirable, interest rates are dictated by the Fed,
19:22and it serves as a tool for capitalists to exert control over the U.S.
19:28This explains why figures like Trump never demanded balance sheet expansion or money printing from the Fed,
19:35the sole demand was an immediate reduction in interest rates.
19:39The Fed's response, however, was unequivocal refusal.
19:44What alternative remains for the U.S. government?
19:48Only the demolition option allowing U.S. bonds, stocks, and consequently the dollar to collapse.
19:56The objective?
19:57To compel the Fed not only to print money but to do so massively and rapidly while simultaneously slashing interest rates to the lowest possible level.
20:10In a market collapse, any delay or inadequacy in the rescue effort renders it futile.
20:16The detonation mechanism for this scenario could be global tariffs.
20:22Astute observers will recognize that regardless of the path taken,
20:27the Fed maintaining high rates and printing slowly,
20:31or being pressured into lowering rates and printing rapidly,
20:34the ultimate outcome remains consistent,
20:37U.S. assets are destined for a sharp decline,
20:40potentially a full-blown collapse.
20:42However, every collapse presents an opportunity for wealth redistribution.
20:50The 2008 crisis saw bankruptcies and suicides alongside fortunes made by buying at the bottom.
20:58The 2020 pandemic devastated retail investors while hedge funds easily tripled their capital.
21:06The impending crisis may represent the final opportunity for ordinary individuals
21:11to significantly alter their financial standing.
21:16Why do so many incur losses during market downturns?
21:20Those without existing holdings often attempt to catch a falling knife,
21:25buying prematurely only to see prices fall further.
21:30Those holding assets either panic sell near the bottom or stubbornly hold on,
21:34hoping for a recovery that never fully materializes,
21:38thereby missing profit opportunities during both the decline and the subsequent rebound.
21:44If one adheres to simplistic, irresponsible strategies like hold long-term,
21:50it will always come back,
21:52their assets risk being decimated in the current economic era.
21:56Consequently, it is imperative to learn to identify market peak signals before a collapse occurs.
22:03This allows for timely profit-taking and positions won to capitalize
22:08on opportunities arising from the subsequent sharp downward trend reversal.
22:14Crucially, the Fed's current reluctance to lower interest rates
22:18does not preclude them from doing so once a collapse materializes,
22:23examining the current situation reveals US stocks, bonds,
22:27and the dollar plummeting concurrently while gold prices surge.
22:31Does this not align with a pre-planned scenario?
22:37The first step involves dollar depreciation.
22:41Consider a hypothetical house valued at $1 trillion, seemingly exorbitant.
22:47But if $1 trillion were equivalent to just one Vietnamese dong,
22:52making the house purchasable for a single dong,
22:56would it still appear expensive?
22:57Therefore, as the dollar depreciates,
23:01the relative value of dollar-denominated assets,
23:04like the house, also decreases when measured against other currencies or assets.
23:10Similarly, debt denominated in dollars becomes less burdensome in real terms when the dollar weakens.
23:16With the US needing to repay $6.5 trillion this June
23:22and the dollar index having already fallen by 10%,
23:26the effective debt burden, measured in other currencies,
23:30has decreased by roughly one-tenth.
23:33This is merely the current state,
23:36continued dollar depreciation until June would further reduce the effective repayment amount.
23:41This constitutes only the first step.
23:46How is dollar depreciation achieved?
23:50By engineering a stock market crisis,
23:53the recent sharp decline in the dollar was triggered by the plunge in US stocks,
23:58prompting global capital outflows from the US into other nations.
24:02This global rush to sell dollars caused its depreciation.
24:09If the US aims to lessen its debt repayment burden by June,
24:13does it necessitate orchestrating another stock market crash,
24:17or perhaps even two?
24:19Before then, the second step involves elevating the price of gold,
24:23causing both the dollar and other global currencies to depreciate relative to it.
24:29Why?
24:29While the initial dollar depreciation causes other currencies to strengthen against it.
24:37If all these currencies, including the dollar, weaken against gold,
24:42it signifies a sharp rise in gold prices.
24:46Is a rising gold price beneficial or detrimental to the US?
24:52Many are unaware that the US holds over 8,000 tons of gold,
24:56the largest national reserve globally,
24:59exceeding the combined holdings of the next three countries.
25:04This figure excludes gold held in custody for other nations.
25:08Germany, for example,
25:10stores half its gold reserves at the US Federal Reserve.
25:15Including these foreign deposits,
25:18the total gold held within the US approximates 15,000 tons.
25:22These figures are several months old.
25:26Furthermore, the US recently announced gold import tariffs,
25:31prompting accelerated gold shipments from locations like the UK to the US.
25:37Therefore, a surge in gold prices is advantageous for the US,
25:42as its vast gold holdings appreciate significantly.
25:46Even if the world ceases buying US bonds,
25:50they might purchase gold instead,
25:52indirectly benefiting US interests or asset valuations.
25:57In summary, step one involves letting the dollar depreciate
26:01to reduce the real cost of repaying global debt.
26:05However, the US possesses not only dollars but also substantial gold reserves.
26:10Step 2 sees rising gold prices offsetting the losses incurred from the dollar's depreciation,
26:18creating a balance.
26:20The third step entails utilizing tariffs to precipitate a global asset and currency collapse.
26:27This would be coupled with the Fed's expansion of its balance sheet
26:31and money printing for rescue operations,
26:34subsequently guiding capital flows away from gold and back towards US assets.
26:39Let's re-examine the timeline.
26:42The $6.5 trillion debt repayment is due in June.
26:48The tariff hike is deferred for 90 days, landing in July.
26:53This suggests the strategy of dollar depreciation
26:56to lessen the debt burden concludes post-June repayment.
27:01Therefore, another potential US stock market crash might occur around June.
27:06Subsequently, in July, the reactivation of tariff hikes could trigger a renewed collapse in global
27:14assets and currencies.
27:16In essence, a new global economic crisis could unfold around July,
27:21leading to a sharp devaluation and sell-off of global assets at depressed prices.
27:27As previously noted,
27:30the Fed's current stance on interest rates doesn't preclude cuts during a crisis.
27:34Echoing the 2008 and 2020 patterns,
27:39the Fed might not only expand its balance sheet and inject liquidity but also offer loans at near-zero rates.
27:47This would empower US capitalists to acquire domestic stocks and assets at rock-bottom prices.
27:54Consequently, US markets and assets would likely experience a robust recovery,
28:01with the US economy rebounding faster than the global average.
28:06Simultaneously, other nations would continue liquidating their assets cheaply,
28:11exchanging them for dollars to invest in recovering US assets.
28:15This dynamic would further depress global currencies and assets.
28:22The US could then potentially manipulate gold prices downward,
28:26encouraging capital to shift from gold back into the dollar, US stocks, and bonds.
28:33At this stage, US assets would rise from the ashes,
28:36embarking on a new phase of explosive growth,
28:39the fourth step is the most straightforward, US capitalists.
28:45Having profited from the peak,
28:47can deploy their appreciated dollars to acquire bargain-priced assets being liquidated worldwide.
28:55This represents the demolish the old house and build a new one strategy.
28:59While this may seem like unfounded speculation,
29:04historical patterns offer supporting evidence,
29:07standard economic theory suggests that Fed balance sheet expansion and money printing increase the money supply,
29:14leading to currency depreciation.
29:17However, reality presents a different picture.
29:22Before the 2008 crisis, the dollar weakened significantly.
29:26Post-crisis, despite massive Fed balance sheet expansion,
29:31money injection, and rate cuts, the dollar appreciated.
29:37Similarly, before the 2020 pandemic crash,
29:41the dollar fell sharply.
29:45Yet, after the collapse, amidst unlimited money printing and near-zero rates,
29:50the dollar strengthened considerably.
29:53Why this apparent contradiction?
29:54Historical observation reveals a recurring pattern.
29:59Prior to US crises,
30:01American capitalists often preemptively sell their domestic assets,
30:06transfer funds overseas,
30:08and inflate asset bubbles in other nations.
30:12During this phase,
30:14the dollar depreciates while other currencies strengthen.
30:18However,
30:19once the dollar and US assets become sufficiently cheap,
30:23these capitalists return to buy the dip.
30:27The Fed then intervenes,
30:29providing near-zero interest loans,
30:31which fuels the resurgence of US asset prices.
30:36As the rest of the world grapples with financial crisis while US assets recover and appreciate,
30:42global capital is compelled to flow back into the US,
30:46driving demand for dollars.
30:48Meanwhile,
30:50global assets continue their sell-off,
30:53and the dollar continues to strengthen.
30:57Ultimately,
30:58capitalists can utilize their appreciated dollars to acquire global assets at deeply discounted prices.
31:04Therefore,
31:05if current events increasingly mirror these historical precedents,
31:10specifically,
31:12if the strategy initiated last year involving accumulation of gold,
31:17yen,
31:17and other hedges continues to yield appreciating assets while the dollar depreciates,
31:23it suggests the initial phase of the investment playbook was correctly executed.
31:27For the subsequent phase,
31:29the focus shifts to observing how the US government manages its debt obligations in June and July,
31:36and whether this triggers another global asset collapse.
31:40If such a collapse occurs,
31:42the strategy involves capitalizing on the trend by selling the appreciated gold and yen
31:48and converting back into the depreciated dollar.
31:51Following this,
31:53anticipating the Fed's expansionary measures,
31:57balance sheet growth,
31:58money printing,
31:59near-zero rates.
32:02The dollar and US assets are likely to appreciate once more.
32:07At an opportune moment,
32:09reinvestment into US assets would be considered.
32:14Finally,
32:15once US assets have appreciated,
32:17the situation will be reassessed to determine the viability of investing in the depreciated assets of other nations.
32:25Even if no crisis unfolds and this specific opportunity doesn't materialize,
32:30the initial hedging strategy incurs no inherent loss,
32:34it simply requires capital withdrawal and portfolio reallocation.
32:40Therefore,
32:41preparation is key to avoid missing potential future market entry points.
32:47It's crucial to align perspectives,
32:50thoroughly grasp the shared investment philosophy and methodology,
32:54and internalize it.
32:57This proactive approach avoids reactive questioning later,
33:00should I buy now,
33:02is this asset still viable,
33:04what if I'm trapped in a losing position?
33:08Opportunities,
33:09once missed,
33:10may not reappear for many years,
33:12the global landscape has become increasingly volatile recently.
33:17Due to time constraints,
33:19this analysis concludes here.
33:23Free knowledge is shared on achieving wealth,
33:26entrepreneurship,
33:27investment success,
33:29and financial freedom.
33:31To stay informed,
33:33follow relevant channels,
33:35enable notifications,
33:36and share valuable content.
33:38Sincere wishes for financial freedom are extended to all who found this information helpful.
33:46If even one or two insights prove beneficial for improving your life,
33:51I will truly feel happy.
33:54Goodbye and see you next time.
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