Inflationary Tsunami on the Way (Uncut) 03-19-2025

Inflationary Tsunami on the Way Courtesy of Germany and China.

Well, I think that the banks are in big trouble, and they’re pushing these stooges, these puppets, to increase spending, to scare the public into a war. Because, yeah, war hides all the mismanagement of the banking sector, of the state. And yeah, that’s my hope, that people don’t buy it.

And if people don’t buy it, it’s still going to be very turbulent times, because we could see a massive collapse of everything financial. Well, we could see a collapse of the whole system. Wednesday, March 19th, 2025, Monaco 64, home of alternative economics and contrarian views.

Well, we’re going to look at Germany and China today, and the US as well a little bit. But in my opinion, we’ve got a huge inflationary tsunami coming to the world. Yes, Germany just approved, the German parliament, 1 trillion euros in fiscal stimulus.

Last November, China approved almost one and a half trillion dollars in stimulus. Yes, they’ve gone full Keynesian. And we know that Keynesian economics was supposed to be just an adjustment to recessions.

But it’s become a constant. And it’s gotten us to where we are, where the world is drowning in debt, the world is going to drown in a second wave of higher prices. So we’re going to look at that today.

And some of the indicators that are pointing to that. And before we go further, just want to thank all of you for your interest in the channel. And not just the new subscribers, but the old existing subscribers who have been with the channel for almost 10 years.

And yes, I post a video every day. So if you haven’t subscribed yet, make sure you do. The other thing I’d like to point out today is my precious metals a dealer affiliates.

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And in the UK as well, I’m affiliated with gold investments and they’ve got specials that are ongoing. If you use my promo codes, which are below in the description of this video and all the details to get in touch with both dealers are below in the description of this video. So back to Germany and China, and some people might think, well, that’s not important, but I think it’s very important because in terms of economic largesse, China is number two in terms of GDP and Germany overtook Japan, I think last year and it’s number three in terms of GDP.

So the fact that they’re increasing fiscal spending by almost well around two and a half trillion dollars going forward is massive. And in the US, of course, things are kind of in limbo at the moment, but we saw representative Thomas Massey talk about this continuing resolution that they’ve passed, how actually the deficit is going to be increasing by around 200 to 300 billion this year, next year and the year after. So in the US, things are not getting better either fiscally.

We saw Congress as well, put forward a budget where you’ve got like four and a half trillion or so tax cuts, and only two and a half trillion of spending cuts. So we’ve spoken about before, like in the 70s, you had three waves of inflation or rising prices, as I like to call it. And I think we’re just in the beginning of the second wave, and the waves get bigger and bigger, unfortunately.

And I would argue that things are much worse than in the 70s. Now, the world wasn’t drowning in as much debt as it is now. So I could see eventually a third wave being catastrophic to all major fiat currencies.

And it’s one of the reasons why we’re seeing gold trade comfortably now above 3000. We’re seeing silver approach $34, $35. We’re seeing copper, high grade copper, very near all time highs.

It’s not rocket science, really. Our currencies are going to continue to purchase less and less. Politicians around the world, it doesn’t matter if they’re in China, US, Germany, UK, the only thing they really know how to do is to spend, borrow, because they’re very short term thinkers.

Even the Chinese and President Trump, who’s talking about the Chinese 100-year plans. I think when push comes to shove, and they see that their economy is in trouble, they’ll inflate it away as well. They’ll open the fiscal spigots.

And I bet that very soon the central banks are going to find an appropriate crisis to join in. And what I mean by joining in, well, they’re going to help the fiscal situation by buying all these bonds that are going to be issued to implement this fiscal largess. So as you can see here, yesterday, Germany’s parliament approves Friedrich Merz 1 trillion euro spending plan.

Chancellor in waiting uses outgoing Bundestag to loosen debt break and unleash investments. I like the way they call it investments, right? And they’re going to count this as GDP as well, in defense and infrastructure. And of course, that’s the other worrying cloud that’s hanging over the world right now.

A lot of people are talking about the prospects of World War III. And I pray that it doesn’t happen. And I hope people are not really taking their eyes off the ball to realize that this is just a scam, that we don’t need war.

And if we do get a World War III, it’s going to be another bankers war. It’s always bankers wars. And I think it makes sense that they’re pushing for it.

And why do I say that? Well, I think that the banks are in big trouble. And they’re pushing these stooges, these puppets, to increase spending, to scare the public into a war. Because yeah, war hides all the mismanagement of the banking sector of the state.

And yeah, that’s my hope that people don’t buy it. And if people don’t buy it, it’s still going to be very turbulent times because we could see a massive collapse of everything financial. Well, we could see a collapse of the whole system.

So I think this is a desperate attempt to keep things going. So yeah, 1 trillion euros, that’s about 1.1 trillion dollars. The Chinese news, well, that came out last November.

China unveils 1.4 trillion package to shore up economy. And recently, I’ve seen people commenting that they’re pushing for consumption, domestic consumption. Chinese economy is more dependent on investments and exports.

But with all the tariff situation going on, the trade wars, they’re trying to get the 1.4 billion Chinese to spend more. And that’s why copper as well is doing really well. Not just gold.

Look at this chart of copper. We are very near all-time highs. We’ve been falling high-grade copper as usual when we look at the markets.

And I said a few weeks or a month ago or so that we needed to break 4.80, $4.80, I think that’s per pound. And now high-grade copper is 5.05, up another half a percent this morning. What about the U.S.? What’s going on there? Well, we saw on Friday some data, the Michigan data, University of Michigan consumer data, for example, that are showing, these data are showing a slowdown in the economy, but not a slowdown in inflation expectations.

So let’s just go quickly through this number that came out Friday. And even the FT is talking about it because today we’ve got the Federal Reserve decision. They’ll probably leave rates unchanged, but it says Federal Reserve faces threat from U.S. consumers soaring inflation expectations.

So they talk about this number from Friday. And yeah, the one-year inflation expectation rose from 4.3 percent to 4.9. The five-year expectation rose from 3.5 to 3.9. So yeah, the Fed will be concerned about that. But in terms of consumer confidence and expectation for things, for the economy, that’s gone down.

For example, Michigan consumer expectations dropped from 64 to 54. That’s like a 10-point drop. It was expected to stay unchanged.

Consumer sentiment dropped from 64.7 to 57.9. It was expected to drop to 63.1. And current conditions, that dropped from 65.7 to 63.5. So stagflationary environment, in my opinion, I guess it’s only the top 1 percent, maybe the top 10 percent, that are not feeling it. But they might start feeling it soon because we’re seeing the general stock market correct quite sharply. We’re seeing cryptocurrencies correct quite sharply.

The only thing really that is doing well, the only assets, are in the commodity sectors like gold, silver, copper and others. And to me, that’s not surprising. And I’ve been telling you for the last five years that that’s the way it’s going to go.

We’re going to go into a world where real assets are going to become a lot more important. By the way, bonds are not doing really well either. And can you really trust a 4 percent or 4.5 percent treasury bill yield? Is that really going to cover the currency basement? I don’t think so.

It’s pie in the sky. And I’m still surprised that Mr. Buffett is still holding loads of T-bills. But maybe he is.

I don’t know, buying some gold on the side. We’ve seen a lot of gold, of course, go into the U.S. this year. Yeah.

When politicians, governments and central banks change this kind of strategy, and that’s going to be and that’s wishful thinking. It’s like wishing that, you know, hell freezes over. Then I’ll tell you that it’s OK to go back into the fiat currency.

But right now, unfortunately, I don’t see any other alternative alternatives than precious metals and hard assets. So let’s quickly look at the markets this morning. It’s 8.23 a.m. London time.

Spot gold is virtually unchanged at 3034. The high has been 45. I think yesterday’s high was 3038.

And it’s really well, it’s not weird, but it’s interesting to talk about gold as three thousand dollar gold. And looking at this chart here, which I’ve shown you quite a few times in the last few months, we’re further along, of course. But I think we’re just in the beginning of continuing to see the dollar and other currencies as well.

Of course, all the other currencies drop more and more versus gold. Yes. In this chart, gold is going up.

But if you flip it around, it’s the other way around. So, yeah, the high new new high this morning at forty five sixty five. The lows been three thousand twenty seven.

Yet silver still having a tough time make it making it through thirty four. I think yesterday we traded up to thirty four twenty five. That’s the spot price overnight.

The high has been eleven. And right now we’re down 17 cents at thirty three eighty five. And the encouraging thing about the precious metals is that we’re seeing the miners pick up nicely.

I haven’t looked at the GDX and GDXJ, but I’m sure they’re doing quite well. And looking at my miners and the profit on my positions, they’ve gone up a in the last two to three weeks while the general stock market is going the other way. It’s not going to be a one way street, of course.

We’re going to have corrections, but I expect the general trend to continue more and more interest in the miners and precious metals relative to, let’s say, the max seven and the general stock market and even finance stocks, banking stocks. They’re not looking very good either. The stock market, actually, the futures are virtually unchanged, so I don’t have to go through them in terms of the currency.

We’re seeing sterling come back off a little bit here and the euro, but not that much. The dollar is a little stronger than the yen as well. And as I said earlier, high grade copper is still doing quite well, up half a percent this morning at 5.06. Crude oil is down slightly.

WTI is at 66.54. Debt right now is keeping a lid on the commodities indices, but who knows with what’s happening in the Middle East. I saw Israel started bombing Gaza again. So who knows the situation there could get worse.

And that’s always pretty much bullish for oil. We’ll finish off with the bond market. It’s pretty steady, actually.

The 10 year yield is, I think, hovering still around that 4.30 level. Yeah, right now at 4.28. I noticed German bond yields. Yeah, they rallied two or three weeks ago when they announced that they’re going to go full Keynesian.

And yesterday’s one trillion euro didn’t have much of an impact because I think it was priced in already. But longer term, yeah, unless the central banks come in, we’re going to see higher yields and lower bond prices everywhere around the world, in my opinion. So there you go.

With that, I’m going to wish you all a very good day. Take care. Bye.