Has Hyperinflation Begun? Is Your Strategy Ready?
they say that inflation changes or is changing the way people are thinking about money well i hope it is because it's about our time but it's also changing the way they're thinking about those in power coming up [Music] i'm lynette zhang chief market analyst here at itm trading a full-service physical gold and silver dealer specializing in custom strategies and quite honestly in these very uncertain times in these very inflationary times you need real money physical gold and physical silver and we're going to talk about what's going on today because they came out with the march inflation numbers and i wonder are you surprised because prices rose 8.5 percent in march the hottest since oh let's see 1981 what's happening then oh goodness we were transitioning into a new monetary system shocker i mean surging food energy and shelter costs help account for the gain and inflation but it really doesn't reflect the really high cost that most people are paying but there are certainly surging costs in those areas and and think about it the mantra that i've been talking about for years and years and years food energy security barterability wealth preservation community and shelter and surging food energy and shelter costs help account for the gain shocker who knew well how about anybody when they're not many of us that have actually studied currency life cycles because we see these same repeatable patterns over and over can you see these patterns now i really hope so if not let me know and i'll try and figure out another way to show you because real worker earnings fell by another 0.8 during the month as the cost of living outpaced otherwise strong pay gains shocker because when they first created this system way back in the early 1900s the government wanted to be able to tax you without you realizing it without having to go through legislation there's the inflation tax if they can keep it at two percent you're still losing that purchasing power but you don't know it you don't complain well it's kind of high now people are noticing and they're complaining and number two corporations wanted to be able to pay you less and less and less but they knew that if you were getting ten bucks an hour you were not going to agree to five but if they could make that ten bucks spend like five then you're working for five you don't realize it so the average wage 1971 9 500 bucks average wage today something like 58 000 let's say 60 000. let's say
a hundred thousand although it isn't that high but it takes two wage earners and you got stimulus if you made under 150. it's because there's virtually no value left inside of this fiat money experiment we are at the end it is dying there is no doubt about it because in reality even though they like to put it that way but so 0.8 percent doesn't doesn't look so bad but real workers earnings this is with all these pay grade pay raises actually fell by 2.7 percent year over year and frankly probably more than that too to be honest i mean if you really look at what people buy so what good were the wage gains well thank god they had them because then it would be a whole lot less huh so i'm thinking and i've been saying this as you know for a while that i think the hyperinflation has definitely begun i don't think they're going to be able to put this genie back in the bottle i love how they always say but on the second half of the year inflation's going to go back down toward our two percent level but they never say how that's going to happen the supply chain is all of the issues are not fixed and the biggest issue is now dealing with all of the new money that they pumped into the system when it died or i should say since it died in 2008 because what that did was and what the whole fiat money system the government-based money system does is it enables uh income and wealth inequality as you can see here now this goes back to 2000 and this is the top 1 percenters right here's 2008 right here zoom zoom zoom so you think the inflation bothers these guys at the top not really so what they have to pay a little bit more for their food their energy their travel whatever they've made so many gains in their wealth and in their income but do you think that's going to matter to people down here at the bottom especially the bottom 90 percent yeah that's going to matter they're now having to make choices between putting food on the table or a tank of gas in their car and what they're saying that it's doing is recasting americans relationship with money and with each other because they are going and this is new data i mean certainly it's impossible to be logical and to say if everything costs more and you don't have at least that level of income then your spending has to go down now you can take on debt to accommodate it which is really what has happened actually since the 70s however at some point there is no choice and you have to make really hard choices because you need necessities so what are these choices news okay 84 percent of americans 84 of americans plan to cut back spending as a result of price spikes it's also changing consumer behaviors in some unexpected ways i'm going to tell you there's going to be lots of unexpected ways and we will talk about gold backs at the end of this okay so you've got to pick your priorities eating out so this is what they won't be doing reducing purchases going out impulse driving concerts and sports clothing flights alcohol hotels and many other things because they simply won't have the money but they need studies because these guys in their ivory towers i mean they don't know what it's like to live in the real world so they've got to do their studies and fed governor lail brainard i mean she just did this whole great talk on variation in the inflation experiences of households well why wouldn't they work you know inflation work for everybody well i just showed you why but first low and moderate income households could experience could experience inflation that diverges from the average because their consumption baskets differ systematically from the average lower income households spend 77 percent of their income on necessities 77 maybe even higher than that maybe even higher than that got to have a roof over your head you got to have food in your stomach more than double the 31 of income spent by higher income households in these same categories but of course what's in the category can vastly be different too researchers found that almost two-thirds of the variation in inflation across households comes from differences in prices paid for identical goods well wait if they're identical goods why would the prices be different well first of all in it you know if you can buy like when i go in and if you watched my if you watched the video that i just put out on uh beyond gold and silver on how to make hemp milk well what you saw was a big five pound sack of hemp seeds which are you know pretty expensive but i can afford to buy five pound sac if you're if you don't have as much income as me well you're gonna buy a smaller package and i buy the five pound sack number one because i go through it fast but number two because then per ounce it's a lot cheaper to buy five pounds versus just 16 ounces one pound so that happens a lot plus when there's a sale i can afford to stock up but if you're on a fixed if you have a fixed amount of money to put on food to pay for food you can't do that i mean a gazillion years ago a gazillion years ago thank goodness when i was first going through my divorce and my babies were little you know i'd have twenty dollars to go to the grocery store with and i had to make that twenty dollars last as long as i possibly could fortunately my children never experienced that hunger because i always made sure that they had food to eat i was an adult that was a different story and that's another story for another day but if you haven't experienced having to make those hard choices you have no flipping clue and i would say these central bankers and these government elites have no flipping clue even if they grew up in that arena they've been so far removed for so long but as a result of these differences households with lower incomes more household members or older household heads experienced higher inflation on average plus when they're looking at a category you can have vastly different things in the same category which goes into the inflation numbers so the example that lael brainerd used in this in this speech of hers was that a can of tuna fish and a can of caviar are in exactly the same category but apparently tuna fish inflates more it's used more so bigger demand than caviar i don't know she didn't quite say that but she used the example in the same category between tuna fish and caviar yeah when's the last time you bought caviar it's been a really long time did i ever buy caviar i don't think i ever have and i'm kind of fancy i don't think i've ever bought caviar i mean edgar's laughing but you guys know it i'm a little fancy it's okay it's my nature okay so with inflation not letting up shoppers cut back on staples another telling sign sales volumes have begun to fall in a number of categories that you would not necessarily expect so on february 22nd volume sales of cereal were down 7.2 percent so that's
how much cereal you're buying on a two-year compound basis cleaning product volumes fell 5.1 percent in that same period while the prices for those products rose 9.5 and 7.2 percent respectively so people are having to to even cut back and we've seen what happens in venezuela and these other places that are experiencing hyperinflation with not just the food and security but you know if you used to buy steak now you're buying hamburger the hamburger gets too expensive you're buying hot dogs the hot dogs get too expensive you're not eating meat at all and that's what we've witnessed time and time again this is why this is why the mantra and you know why i have an urban farm here and i and i'm so happy to say that our experiment with crawfish actually worked we thought it was a failure but it wasn't we actually have so i have crawfish i have tilapia i have chicken eggs i have even chickens i don't use my laying hens for that but we have meat chickens we have quails we have ducks we have duck egg so you see all of this animal protein and really frankly most of that is self-sustaining so it's just going to keep providing and providing and providing you got to think about it food is the biggest issue for most people during these transitions but in a consumer-driven economy the consumers are losing their ability to consume now we heard and we've seen i didn't put it in this one but we've seen that corporations have been making a massive massive amount of profits taking advantage so all of that stimulus money that was given to the masses who did it really go back to the corporations right because if you have lots of money you're not as sensitive to price increases so corporations were able to raise their price increases more than the added costs but now what you're hearing is oh what we're seeing happen with the fall in consumers spending well not it's not the dollar amount it's the quantity amount because they're actually balking at these higher prices they can't afford them so this is going to hurt corporate profits i'm so sorry for those corporations not i mean let's face it whoever is closest to the central banks the corporate which is a private corporation and guess who's closest private corporations they always benefit that's why you got to be your own bank you've got to make sure that you can protect your purchasing power because there's nobody else that's going to do it i mean it's just a fact so up here is personal spending month over month and you can see this was june may and june of 2020 so this is a full this is not really quite a full year so april may mean it was down and then those stimulus checks really kicked in but only for like a minute i mean i think this is a super interesting chart even when they managed to get it up a little bit it still fell back so that's personal spending but the expenditures because of inflation they're they're really spending the same thing but the prices are going up up up up up up up up yeah it's going to temper demand if you have a limited amount of money you're going to have to make choices you're not going to be able to do everything that you want to do last time that i reported on this we were talking about people at macy's having a problem this macy's is still having a problem because they tried to raise the price on some mattresses and some other stuff and their their consumers said no no we're not going to pay that and they were forced to lower the prices back down something's got to give they can't make record profits if they can't keep raising the prices but the corporations have a lot more money than you and i they have access to a lot more money than you or i and it really looks like the consumers have reached their limits and it also looks like and i'll tell you the truth i'm thankful for this because i think that this high inflation is starting to wake more people up americans are having an inflation aha moment because as long as it's held around two percent they're getting what they want but you're the frog in that pot of water that slowly increases increases increases until you are boiling we are not yet at that boiling point that's the hyperinflation but we are definitely at the point where it's starting to bubble up now it's starting to become more noticeable those are not jacuzzi bubbles people those are cooking bubbles [Music] you need to have this so that no matter what you have the ability to purchase you need it along with food water energy security barter wealth preservation community and shelter get it done get it done get it done now this is actually kind of interesting because this is the university of michigan inflation expectations [Music] right what's real it was i believe it was henry kissinger and i'm going to paraphrase i know i'm not going to remember the quote exactly but he said it is not what is true that matters it is what is perceived to be true that matters and our government spends and and central bankers too spend an awful lot of time on perception management and they've got to track it because this is a con game and so it's that confidence piece now this only goes through february of 2022 so not through march but even at february we were at the peak of the inflation expectation when this whole big qe money printing i don't have to do that because i got this with a new battery but oops but when this whole big money printing experiment started and people say oh inflation well where'd the inflation go how about the stock market how about the bond market how about the real estate market and now they have to unwind that well they don't have to unwind that but they're going to try to unwind that and they're only going to go so far until it gets until the stock markets and the bond markets and the real estate markets get really bad and then they're gonna try and undo it but once this genie is out of the bottle there ain't no putting it back in so i i think they i think they're already done because what i'm seeing is that inflation expectations are becoming de-anchored now if you think ah this is just temporary it's just a little bit then you're not going to change your spending patterns but if you think that inflation's going to go up more you are going to change your expectations and they meaning central banks meaning the government will have lost control of you and there are way more of you and me us than there are of this little handful of the elites and that's what they're scared of because your confidence in them is what keeps them in control that's what keeps you in this funny money because the dollar could never go away what are you talking about they keep the name the same they make the transition so that it's as much it's as close to what you're used to as possible i you know i was like what 17 years old in 1971 and i can tell you 20 bill in my pocket in july 20 bill in my pocket in september i had no idea that anything had really changed when in reality everything had changed now back in 1971 you could only hold gold in this form period that's it this was the only form you could hold it in legally you could have five ounces up to five ounces in any other you know any other form but it needed to be collectibles in order for you to utilize it thank you uncle al i thank him all the time for this lesson it was absolutely brilliant today you can own at least at this moment you can own as much of this as you want and i get it started sooner than later because you couldn't protect yourself then now you can what are you going to do about it choice is yours i'm just about trying to help you make these educated choices because the average american look at the debt that they're in any debt so it could be credit card student loans autos mortgages 158 000 is the average debt per household well that's not going to matter too much if you make a million dollars a year but if you make 50 000 a year that matters a lot and this does not include all of the debt that the government incurs on your and my behalf which i think is is somewhere north of 158 000 and you don't even realize that you owe it and that debt will transfer down and down and down this is why they have to hyperinflate all the debt away because when and if not really if because it's already happening but when the global public loses all confidence in the ruling class now we know that there were a lot of rising global protests after what happened in 2008 happened and when people are hungry and hopeless they make choices they would not otherwise make people are getting pretty darn hungry and pretty darn hopeless and so let's see over 230 significant anti-government protests have erupted worldwide 100 more than 110 countries have experienced significant protests and we're even seeing that in shanghai these days 78 of authoritarian or authoritarian leaning countries have faced significant protests and what did we see that recently happened wasn't that anocracy which is a combination that that we are officially the u.s is
officially an inaccuracy and that is loosely that you have qualities from an authority a sorry authoritarian regime with a democratic regime there are combinations of both so we're transitioning there too and that breaks my heart but you know it doesn't really surprise me and over 25 significant protests well have been directly related to uh coronavirus pandemic this comes out of the carnegie endowment for international peace yeah loss of confidence public confidence equals loss of power they're trying to stay in power so they're going to have to do something about this loss of confidence i don't know what could they do let we'll take a look at that because they got to keep the public calm how can they do that all right well pain at the pump we know that so the u.s releases a million barrels of oil a day to cut gas prices and the price of oil has been hovering around a hundred dollars a barrel which is still pretty high honestly and now the biden administration announces new actions to lessen the burden of medical debt and and look whenever they say increase consumer protection you really need to rethink this because what they're doing is if you are in arrears on your medical debt they're they're not wiping out the medical debt they're not doing that no no no no but it will come off your credit report so you can borrow more great idea take on more debt when you can't afford the debt that you already have and you've got inflation and oh by the way interest rates moving up which means it costs more to service that debt but they will give millions of student loan borrowers that are in default a fresh start you know what that is again just marking it not in arrears so that it doesn't hurt your credit score and you could go out and take on more debt woo happy days are here again are you flipping kid at me you can't make this stuff up and now he's going out to tap ethanol to lower the fuel so they are working hard on helping you maintain that perception that they're really doing things that are in your best interest but the reality is that it's in their best interest if they can keep you calm if they can keep your confidence because then they remain in power and my personal goal is for those that got us into this mess and the way the system is structured on the other side of this mess it's a more fair system and we have more sound money and they will have to do this by the way that's one of the things that happens every time once all confidence is lost then they go in and they put a component of gold in the new currency yeah we can trust it's got gold in it and then they start to whittle that away and do all of that again so this is and i want you to know i am not getting political on any of this because honestly my feeling is with politics that it's just a sideshow to distract you and it's a way to legalize the theft so i don't care who's in power it is how it is in my opinion they ain't going to change anything because that's not who's driving the bus it's the central banks that are driving this bus but they know that you're going to want to fly to gold so here's an etp which is basically the same thing as an etf so it's the contract and those inflows hit record high because the perception is that you own gold you don't own gold you own a tr piece of paper contract but you have no access whatsoever to the underlying gold and these things are designed to imitate or mirror or yeah no imitate the spot the manipulated easily had manipulated spot price of gold and we'll talk about when that's going to stop too because if they've got to talk you i mean if you're just dead set on getting gold well they want you to do it in the way that's easiest for them to control so the easiest is if it's paper gold that doesn't mean anything because you don't really have any gold anyway but the next easiest is bullion monetary gold the gold that you can hold in your ira because at least for the most part at this point that will flow or reflect what's happening in the manipulated spot market and since most of this kind of gold is held inside of ira's retirement plans cz's kind of gold should they choose to do a confiscation which i don't know whether or not they will personally i think they will but i could be wrong i mean we do have a history of it and we have seen it happen in other parts of the world you know not that long ago recently even but maybe they won't i don't know i personally think they will so this is not the choice that i make because these are the most easily controlled form of gold so what kind of gold do i buy i buy the collectibles because this number one is a true supply and demand market that's what this is really simple there are only so many of these out there and based on population and demand and all of that that's how these prices move like it or lump it it's a real market it's actually a real market what a concept instead of a wall street manipulated market what a concept additionally it is the most private form of gold you have to do whatever you're comfortable with everybody's got to do what everybody's comfortable with regardless of what anybody says but i saw i lived through i experienced my uncle al with two saves probably at least 3 000 ounces of gold when you couldn't own more than five and i know that gold is severely undervalued so silver they're both severely undervalued because a rising gold price is an indication of a failing currency do they want you to think the currency is failing no let's prop things up so that you're looking at those numbers and going whoa look at how much money i'm making when all it really is is nothing it's garbage it's nothing does that benefit you no so let's talk about these two questions that came in because they're good ones and the first one is what are gold backs gold backs is a form of an a form of currency where because gold you can make it super super thin so they embed these wafers of gold depending upon the denomination be you know tiny little etc so it's actually a bill that has physical gold embedded inside of it that's what a gold back is i don't personally own any of them i can't tell you that i think it's a bad idea because i don't think it's a bad idea i think you have to pay attention to the premiums and i've chosen to address that in a different way and if you want to understand that you can call our consultants and they can explain how you can do that but that's what a gold back is and i kind of like it i'm not going to lie i kind of like it at least i like i really like the concept of it because it's physical gold in bill form and hopefully more and more states and businesses will accept them so that they become a form of tender and jn asks when will the manipulation of gold and silver stop that will stop when all confidence in the currencies and in the leaders is over that's when that will stop and then when they have to reset the currency like we've seen in many other countries venezuela being one just because it's the easiest one for me to talk about they revalue this funny money that has no value no intrinsic value used one place in the economy they revalue it reset it against physical gold and that's when you will see gold express to its somewhere near at least the first time uh somewhere near its fundamental value in in venezuela i think that the first overnight reset it went up something like 3500 percent but they've subsequently had two more resets overnight so it's not over when they do that first reset it's not going to be over when they bring in the central bank digital currencies it'll be over when they put a component of gold in the new currency to stabilize it and even then because they will start to degrade that probably pretty quickly thereafter especially since they're gonna do it you know we're gonna go to everything being digitally digitally held you know i'm not going to be converting a big chunk of my gold or silver into the new cbdc's not going to i'll convert it maybe monthly maybe quarterly i don't know i'll have to think about that and see how everything is is working but i will convert it as i need it not before because this is programmable money this is not programmable money this is the broadest base of buyer and the broadest base of functionality money so is this cbdcs will have use in one place just like dollars euros yen all these things they have used in one place that's it so when that demand goes away that's what you're seeing right now the demand for these dollars going away well they go away too but i have some good news i need a vacation i work really hard i need a vacation so we are going on a family vacation in june and uh i'm and i decided that since i'm out there on june 11th i'm going to be doing a very small intimate intimate group meeting i mean really small because i wanna i want everybody to be able to talk about anything that they wanna talk about and i wanna have enough time to spend time with everybody but here's the thing yes i'll keep you up to date with where we're at on everything but i'm going to be able to since we're in person i'm going to be able to talk about things that i'm not able to talk about on air so the link for the event is below it's at the i always want to say this one place i know grand waialea on maui and come join us it should be a lot of fun and i could really use a vacation i bet you could too so watch my backyard pond tour with my very good friend who just recently passed i'm so glad we did this i'm so glad we did this on the beyond gold and silver channel on youtube the video is out now but this man hand-picked every single river rock that went into this pond and i consider him a very good friend of mine he is sorely missed ernie i always loved ernie what a character what a nice nice nice nice nice human being so you want to watch that i think it's an important video anyway because it's on water and we all need to figure out how we can ensure that we have the water we need to drink to grow our food to take care of our animals etc also make sure to leave us a review and listen to our podcasts on any and all major podcast platforms that helps boost that so i would really appreciate it if you would do that for us but to start your gold and silver strategy if you haven't done it already please stop procrastinating and get it done i mean the handwriting is on the wall and it's like lipstick red in front of you just click that calendly link below and have a conversation with one of our consultants they can help you understand why this is the only kind of gold that i personally buy that has not always been true but once we hit a certain part in this trend cycle i no longer trusted bullion so i don't own any of it but if you like this please give us a thumbs up leave us a comment and share share share share share because it is so time to cover your assets on so many levels and until next we meet please be safe out there bye-bye