The Next Financial Crisis Is Already Here (Uncut) 03-21-2025

The Next Financial Crisis Is Already Here

The U.S. consumer borrowing surges by 40.8 billion, the most on record. But let me show you what these credit cards loans owned and securitized. So what people are doing in order to maintain their standard of living, they’re borrowing more money to do that.

I’m Lynette Zhang, and I have been groomed for these markets my entire life. So I want you to know that for me, none of this is political. It is all economics.

And my job is to report to you what I see and give you a well-educated opinion based on historic data on what the next most likely outcome is going to be. So with that, let’s just begin because they have run a paper, a Fed paper that finds that tariffs may raise U.S. consumers’ everyday costs. And we already know that the consumer is very, very stretched to the point of breaking.

But while tariffs themselves may not spur long-lasting inflation, empirical studies suggest they trigger an immediate one-time upward shift in price levels that persists. So actually, I think they’re contradicting themselves because they’re saying that it’s not going to spur long-lasting inflation, and yet prices that go up and stay up? Okay. So they just don’t want you to realize the truth of it.

While higher tariffs create tariff revenue and favor domestic producers for a minute, the price consumers must pay to buy imported goods will increase because firms typically pass some portion of the tariffs cost onto the consumers or maybe even all of those tariff costs because we are a globalized system. The supply chains are all over the world. So even if we are a U.S. company, that means that chances are pretty good that something is going to be imported that’s going to be impacted by the tariffs.

So there’s direct tariffs and then there’s indirect costs that they pass on to the consumers. And that means higher inflation. Now you guys know I’ve been talking about the fact that I think we’ll see much higher inflation to come about by June.

It might happen sooner, it might happen later. I don’t know. But either way, of course there’s going to be more inflation.

There has to be. The U.S. consumer borrowing surges by 40.8 billion, the most on record. But let me show you what these credit cards loans owned and securitized.

So what people are doing in order to maintain their standard of living, they’re borrowing more money to do that. There comes a point where they won’t be able to do that anymore. But you see that little securitized piece over here? What that means is that these are credit cards that have been repackaged into products and sold to you.

Maybe they’re sitting in your pension plan. Maybe they’re sitting in your 401k or your IRA or any mutual fund or ETF that you have. But you are the one that’s going to bear the brunt of it.

And consumer sentiment is souring. It is going south. So yeah, huge amount of borrowing.

But isn’t it interesting that one person’s debt is another person’s asset until it’s not. And that’s what I want you to pay attention to and make sure that you’re not exposed to that. But you might be anyway.

And we are seeing the default starting to rise. Americans fall behind on car payments at the highest record in decades. Wow.

Actually even higher than they were back in 94 when we were dealing with a recession. Are we in a recession yet? Officially that would say no. But I’m thinking it’s kind of different than that because it’s higher since they started tracking.

It’s the highest level that it’s been. And a lot of those too have been securitized, turned into a financial product and sold to you. These are motor vehicle loans owned and securitized.

So again, who’s really the one that’s going to pay this price? You’re going to pay for the cars. And will people be able to afford the cars? I mean, we’ll see. But my point in this is that these have been turned into financial products and it’s time for you to pay attention to the choices that you’ve already made.

I remember not doing anything is also a choice, but can you see how much every time we hit a recession, those are those gray bars. Borrowing explodes because that’s what stimulates the economy. Debt upon debt upon debt upon debt.

Problem is, is you have to either service it, roll it over, take out new debt or default on it. What are we going to do here? We’ll find out, won’t we? Because you’ve got to understand how these delinquencies and these defaults are going to impact the portfolio that you might be counting on for retirement or to educate your kids or any level of future use. The retail sales, I mean, we are goodness gracious, a consumer driven economy.

It is not really great that we are seeing retail sales slide like this, but you just saw the credit cards and the debt levels. Really? There’s only so much. Are incomes keeping pace with this level of debt? No, they are not.

And does this look supportive of a computer of a consumer driven economy? No, it does not. Can you see the potential problem ahead? Because all debt must be serviced and the employment picture, frankly, is not looking so great. I mean, goodness gracious, half a million US jobs are on the line as the doge fallout spreads, because it’s not just the government employees that are losing their jobs.

It’s also the knock-on impact. At the moment, most of them are in the government, but we’re also seeing retail, consumer products, technology, education. So these are the most job cuts since when? Oh my goodness, 2020.

That was when the whole world shut down and we now have job cuts at those same levels. Does this look great to you? Fed wanted to fight inflation. Well, loss of jobs is deflationary, but it is the knock-on effect.

It’s like a domino. You lose the job over here, but these jobs were also being supported by all these private corporations and that’s getting lost as well. And I’m hoping you’re able to see what’s really happening, because the February job cuts alone, now understand there was a lot of doge cuts in here, were 103.2% year over year.

That’s pretty huge. And the planned cuts last month were the most for a February since, ah, look at that date, 2009. What was happening then? The great financial crisis.

So they don’t want you to think that that’s where we are, but that’s where we are. I’m showing you this. How will these job cuts impact consumer spending? Because what happens to all that discretionary income that they might’ve had when they had a job? That all goes away.

Now I looked at what the New York, or I’m sorry, the Federal Reserve of Atlanta does their GDP now. GDP is gross domestic product. It’s all the money that flows through the system.

And while it’s not an official forecast, it is viewed as a running estimate of real GDP growth based on available economic data. Let’s take a look at this. Oh my goodness.

Does that look good to you? Because that is a tremendous, tremendous drop in gross domestic product, which has an impact on taxes. And therefore it impacts the state services as well as the federal government’s income, which then foretells greater deficit spending, both at the state level and the federal level, let alone at the individual level. So even though we’re being told that this pain will be short lived, I don’t think so.

What do you think? Do you think this is going to be short lived? Because who’s going to absorb all of those people that lost their jobs? And at the meantime, U.S. gold stockpiles hit record, right? And they’re, they’re always pointing to the tariffs, but maybe what we’re really looking at is a repatriation. Because in this country, in the U.S., most of the gold is done in derivative form. That means it’s just paper gold.

It’s not real. And you can look at the gold inventory in the Comex warehouse and they hit a record high. But could you please take a look at when this happened and it never got back to those other levels and now it’s even higher because the dangers are even more.

So you have to ask the question, who is getting ready for what? Because there is some fat finger or big player here in the U.S. that is demanding physical delivery. And of course, we know because we’ve talked about this, that a lot of that physical gold is coming from the Bank of England, among other places, but a huge player in the physical gold market, they’re holding gold for a whole bunch of governments and they’re shipping that gold to the U.S. and then that gold is being delivered out to a private party. So I think that what we’ve got coming in the future is a massive government global pulling back of the gold.

So my question is, is this really just about the tariffs on gold or could this really be so much bigger than that and it’s a repatriation of the physical gold markets? Time’s going to tell what it is. We’re going to keep paying attention to it, but I mean, I think it should be pretty darn clear that there are things that are falling apart and if we’re dependent upon the consumer, the consumer is one big one. What are you going to do when this whole system implodes? Because that’s what’s happening and it will.

And that’s why you have to have physical gold and physical silver in your possession and you need to have sound money as a foundation for whatever else you’re attempting to do because a properly diversified portfolio, okay, it can have some intangibles, it can have some cryptocurrencies, some stocks, some bonds, some mutual funds, some ETFs, but you darn well better have the gold to balance that out so that when the dollar goes to zero, and you might not even believe that it’s going to zero, look at the purchasing power chart because the Federal Reserve is telling you that it’s going to zero and it’s very close to that now. It’s just that little layer of confidence and if we’re having to deal with higher inflation, what do you think that’s going to do to the public’s confidence in the and in those that are driving the economy? That’s it. It’s the last layer of confidence and I see it going away.

So let us know your thoughts in the comments. If you like this, please give us a thumbs up. Make sure that we have this conversation and make sure that you come and you see us on Tuesdays and bring your live questions.

Make sure that you also watch our latest video on social security and many other things that are going on. So many moving parts and this is one thing that I absolutely know, that we are building a community here and it’s a community for everybody. There’s no political boundaries on this.

You don’t even completely have to agree with each other and be exactly like-minded, but we do need to come together in local community to ensure that no matter what, you have that security in food, water, energy, security itself, barter ability, wealth preservation, community and shelter and globally to get some money back in the system again. So that when you work, you’re fairly paid and no matter when you use that money, what a concept, you’re always fairly paid for that original labor. And until next we meet, please, I know together we can do this and we can make a positive difference.

Be safe out there. Bye-bye.