LYNETTE ZANG | The Coming Debt Wall Poses SERIOUS Economic Implications!

Summary

In this video, Lynette Zang, an experienced economist and financial analyst, dives into the complex financial environment as we approach 2025. The discussion covers a range of topics including the volatility in treasury markets, rising inflation, and the shifts in global liquidity. Lynette also shares insights into the future of various financial markets, the impact of an impending debt wall, and the strategies she considers crucial for navigating economic uncertainty. Key points include the anticipated rise in gold and cryptocurrency markets, the implications of central bank policies, and the importance of holding sound money.

Highlights

• Lynette predicts nominal stock and crypto market increases amid rising volatility. 💹
• Central banks' attempts to suppress interest rates encounter resistance from market forces. 🚫
• The impending 'debt wall' could force higher interest rates, stressing the economy. ⛔
• Confidence in central banking is waning, raising concerns over policy effectiveness. 😟
• Physical gold is highlighted as a crucial safeguard against economic instability. 🛡️

Key Takeaways

• Treasury markets face increased volatility due to a shift into more private hands, demanding higher interest rates. 🌪️
• Expect higher stock market volatility and inflation as we approach 2025. 📈
• The bond market's decoupling from central bank policies is a major concern. 🔗
• Lynette emphasizes the importance of holding physical gold due to its intrinsic value and as a counter to currency instability. 🪙
• Challenges in global liquidity could lead to significant economic implications. 🌊

Overview

The video kicks off with a robust discussion on the increased volatility in treasury markets as short-term buyers demand higher interest rates. Lynette Zang explores this shift and its implications, noting the transition from steadier hands to more private holders which stirs volatility and raises significant financial risks.

As Lynette delves into predictions for 2025, she outlines expectations for rising stock prices and heightened volatility. With a focus on the 'debt wall', she warns of inflation and increased market volatility, stressing the bond market's decoupling from central bank policies as a crucial factor to watch. Lynette remains cautious, emphasizing the importance of preparing for economic uncertainties.

Lynette passionately advocates for holding physical gold, warning viewers about the potential for a major financial shake-up. As global central banks accumulate gold, she underscores it as a defense mechanism against inflation and currency devaluation, highlighting the necessity of having tangible assets in a world of digital transactions and fiat currencies.

Chapters

• 00:00 - 00:30: Introduction The chapter titled 'Introduction' discusses the current changes in the financial market, particularly focusing on the transition of treasury buyers. It highlights how treasury buyers are shifting from traditional longer-term, stable holders to shorter-term private hands. This shift results in increased volatility as these new holders demand higher interest rates. The chapter suggests that this movement is not only causing a decoupling in the market but also poses significant risks as it transitions from more stable to more volatile hands.
• 00:30 - 01:00: Lynette Zang's Background The chapter provides a detailed overview of Lynette Zang's extensive background in the financial sector. It highlights her roles and experiences, beginning as a student banker and progressing through positions as a stock broker and an analyst specializing in precious metals and currency. Her focus on currency life cycles, a subject she has studied since 1987, has allowed her to identify patterns and similarities in societal and economic behaviors.
• 01:00 - 02:30: Market Surprises and 2025 Outlook 2024 was a year of unexpected economic and market dynamics. Several factors surprised analysts, while others were anticipated. The chapter explores these elements, providing a retrospect of the significant economic events of the year, and offers an outlook for 2025.
• 02:30 - 04:00: Global Liquidity and Bond Markets The chapter discusses the resilience of global liquidity markets, highlighting the predictability of certain market patterns. The speaker mentions that, moving into 2025, they are observing familiar trends, especially in stock markets. Although these trends were expected, the consistent and robust nature of market reactions is noteworthy. The conversation revolves around the dynamics of how these patterns impact bond markets amidst the evolving global liquidity landscape.
• 04:00 - 06:00: Debt Wall and Economic Implications The chapter discusses the concept of a debt wall and its economic implications. It highlights concerns about the rapid changes and acceptance being built in the digital space, emphasizing the need for smarter and more controlled evolution, rather than succumbing to the desires of those in power. The speaker expresses the importance of taking control and not being herded into the decisions preferred by the ruling authorities.
• 06:00 - 09:00: Relief Valves and Gold's Role This chapter discusses expectations for the financial markets leading into the year 2025. It anticipates higher stock markets and cryptocurrencies in nominal terms, alongside increased volatility. It also touches on themes of inflation and market shifts, though specific details are not provided.
• 09:00 - 12:00: Currency Neutral Rate and Inflation The chapter discusses the uncertainty expected in 2025, particularly in bond markets, where there appears to be a decoupling from the policies of central banks like the Federal Reserve. The chapter highlights the expectation of increased inflation and the public's growing awareness of these economic changes.
• 12:00 - 15:00: U.S. Dollar and Global Currency Comparisons Chapter Title: U.S. Dollar and Global Currency Comparisons Summary: The chapter discusses the uncertain future of the U.S. dollar amidst a backdrop of low confidence in the current regime and economic system. A new president may bring hope (referred to as 'hopium'), but concerns about inflation persist, making the economic outlook questionable despite potential changes in leadership.
• 15:00 - 21:00: Stock Market Implications The chapter explores the implications of recent trends in global liquidity and the stock market. It highlights a 'surprise to 2024' in the form of 'hopium,' indicating a sense of hopeful anticipation despite challenges. Global liquidity expert, Michael Howell, is quoted discussing a significant dip in global liquidity growth. This decline is attributed to a resurgent US dollar and weak central bank liquidity growth, factors that are currently restraining global liquidity levels.
• 21:00 - 25:00: Central Banks, Inflation, and Global Debt The chapter discusses the relationship between central banks, inflation, and global debt, focusing on how asset markets respond to changes in liquidity. It highlights that risk asset markets tend to perform best when there is strong liquidity growth. The liquidity boost in the third quarter positively impacted markets, but a slowdown beginning in the fourth quarter is now being observed. The chapter predicts that liquidity will expand slightly more before reaching its peak in quarter four. It suggests that this peak might provide some additional market benefits, but the optimal conditions may have already passed.
• 25:00 - 31:00: Precious Metals and Global Demand The chapter discusses the challenges and dynamics in the global financial markets, focusing on liquidity issues. It highlights a quote by Michael Howell regarding market liquidity and explores its implications. The potential disconnect between central bank policies and market demands, particularly in bond markets, is examined. The chapter suggests that this decoupling could lead to market difficulties.
• 31:00 - 35:00: Conclusion and Final Thoughts The chapter discusses the dynamics of a financial 'battle royale' involving two factions, highlighting challenges related to liquidity. It explains that central banks are lowering interest rates, which might suggest an abundance of liquidity. However, because of significant prior money printing, the expected liquidity expansion is not as apparent.

LYNETTE ZANG | The Coming Debt Wall Poses SERIOUS Economic Implications! Transcription

• 00:00 - 00:30 and the treasury buyers have gone into much shorter term hands into more private hands and that means that's a whole lot more volatility yes they're demanding more interest and I think that that's really what you see feeding into this decoupling but it's also extremely dangerous because it's a transition from more steady hands into more
• 00:30 - 01:00 volatility [Music] and and we're fortunate to have with us Lynette Zang Lynette is an economist that has been involved in the markets at some level since 1964 as a student Banker stock broker and precious metals and currency analyst she's been studying currency life cycles since 1987 she discovered similar social
• 01:00 - 01:30 economic and financial patterns that occur throughout the stages of a currency's lifetime today lynnette's focus is on helping others to best prepare for economic uncertainty Lynette welcome back to medals and miners thank you so much for joining us today I'm very happy to be here Gary thank you for having me so let's begin with a look back on 2024 from an economic and market perspective what surprised and shocked you what fell right in line with
• 01:30 - 02:00 expectations and what are you expecting as we move into 2025 well actually the resilience is what has shocked me and the markets I it I don't know that I could actually say that anything shocked me because what I'm seeing are those repeatable patterns that you that you talked about and it's pretty typical for stock markets and those kinds of things to float up to capture
• 02:00 - 02:30 attention um I think that so I don't know that's a really hard question for me um especially with the shocking because what they're doing is they're building Acceptance in the digital space and I mean I know we have to evolve I'm not saying that we shouldn't evolve I'm saying that we need to do it a lot more a lot smarter and not just be hered in to what those that are in power uh what they want I think we need to take back
• 02:30 - 03:00 our power so I don't know really what shocked me let's see 202 I'm sorry I'm not able to answer that question well so what are you what are you expecting moving into 2025 more of the same a lot of volatility increased stock market higher inflation you know what are you what are you expecting well I definitely think there will be higher stock markets in nominal terms as well as higher cryptos in Market terms I think there will be a whole lot lot more volatility because I
• 03:00 - 03:30 think there's a lot of uncertainty that's coming into 2025 but I think the most important thing is what's been happening in inside of the bond markets with um the decoupling from fed policy or from Central Bank policy and the markets I think that is huge so I expect a lot more inflation coming into 2025 and I expect the public to notice
• 03:30 - 04:00 it uh and and I think that by the end of this year whether or not we can hold on to the hopium and confidence is really questionable and and confidence is so low right now in those that are in power and in the system so the new the incoming president and that incoming regime I think there's a lot of hopium there but I also see a lot of inflation so well maybe is going to be maybe we
• 04:00 - 04:30 can say in wrapping up that question that the surprise to 2024 for you was the hopium it continued yes I I I I think we can I think we can say that yes okay all right so Lynette Global liquidity expert Michael Howell he recently shared the following Global liquidity growth has dipped sharply in the last few weeks the resurgent US dollar and the weak central bank liquidity growth is holding GL Global liquidity in
• 04:30 - 05:00 check excuse me risk asset markets perform best when liquidity is growing strongly the liquidity boost in the third quarter bolstered markets but the Slowdown from quarter four is now feeding through we stand by our view that liquidity will expand just a little bit further this year before peing in quarter four this final upswing of the current liquidity cycle may bring some further upside but the best of times are
• 05:00 - 05:30 likely already behind us Lynette as it pertains to the markets what can you infer from this Michael Howell quote on liquidity well that is a big problem for all of the markets because it does require that it goes back to what we were just talking about with the bond markets and that decoupling between central bank policy and what the markets are demanding and I think were in for a
• 05:30 - 06:00 battle royale this year against those two factions but here's part of the challenge and why the liquidity um appears in some way not to have expanded because they're already the central banks are already lowering interest rates into frankly an ample liquidity environment because of all of that money printing that they've done up to this
• 06:00 - 06:30 point so it's not as if all of that liquidity has been absorbed and now we need new liquidity it's just that old liquidity sloshing back and forth does that make sense yeah yeah okay yeah liquidity is a big challenge so there's approximately 9.6 trillion in maturing debt that is coming due this year in 2025 many are calling that the debt wall plus an additional 2 to3 trillion in fresh new debt that's going to be issued
• 06:30 - 07:00 and that's without a recession all while there's a reduced appetite for it by its two largest buyers of the last few decades Japan and China they've been net sellers of treasuries they've been reducing their positions not even maintaining them won't buyers new buyers demand much higher interest rates to buy this exorbitant amount of debt and isn't that both inflationary and economically punitive absolutely and I think that's
• 07:00 - 07:30 what we're seeing with that with that diversification as the fed or other central banks try and push those interest rates down but the problem is is to your point really in the two main holders they've been net sellers since 2012 of us treasuries and we can talk about that as a proxy for the dollar and what people don't realize is that in the 1960s you you had a run on the dollar as
• 07:30 - 08:00 foreign governments were turning in dollars and pulling the gold out of the system when we were still and at least a quasi gold standard today those 10year treasuries are a proxy for the same kind of thing and yes there has been a stealth run on the dollar by the two biggest holders not only that but banks that were also longer term and more steady holders have been getting out of
• 08:00 - 08:30 that market makinging capacity and the treasury buyers have gone into much shorter term hands into more private hands and that means that's a whole lot more volatility yes they're demanding more interest and I think that that's really what you see feeding into this decoupling but it's also extremely dangerous because it's a transition from more steady hands into
• 08:30 - 09:00 more volatility and and that's the foundation it's it's like the foundation of the Global Financial system is on an earthquake pop pattern and most people don't even know it there's those that do know it but most people don't know it so with this battle royale taking place between the stock market and the bond market and the bond yields are are just there just doesn't seem to be a stop to them rising and now with this you know
• 09:00 - 09:30 10 to 13 trillion of you know new debt that needs to be issued in a non-recessionary environment what's the relief valve here like is gold the relief valve like what's the relief valve well you need a flight to safety and so sound money is really the only place to go is and you've got to hold it because if you don't hold it it runs counterparty risk it's just a contract and so you've got
• 09:30 - 10:00 to have something like your sound money physical in your possession um to balance that out because we've also witnessed the spot gold market I I don't really consider the spot gold market as the gold market even though most people do and look at what the CME just recently did in bringing out 1 oun contracts or attempting to bring out 1 ounce contracts and so what we've seen is is
• 10:00 - 10:30 that again transfer what they're doing is they're transferring the risk from the few from the those that could only play in the 500 ounce Arena into a smaller and smaller contract size to transfer that risk to the public because the public can't afford a a 1 ounce gold contract right but the public in general couldn't afford a 500 ounce contract although they're they're they're cheap um so yeah what we're seeing is
• 10:30 - 11:00 definitely both physical gold but it's got to be in your possession it's got to be because if you don't hold it you don't own it so Lynette Chicago fed president Austin gby I'm sure you know who he is on September 23rd he said the following but make no doubt about it we're hundreds of basis points above the neutral rate are we in some kind of melt up scenario here yes absolutely and and
• 11:00 - 11:30 what is the neutral rate nobody really knows what the neutral rate is presumably that neutral rate is a rate at which it doesn't create inflation and it doesn't create deflation it's that place right in the middle but quite honestly um they admittedly have no idea what that neutral rate is so yes I do believe we are in a melt up stage and and as I said earlier this is all indicative of entering the
• 11:30 - 12:00 hyperinflationary stage which personally I believe has already begun it's just not that visible I think that will become a whole lot more visible this year they're they're likely not to allow the market to find the neutral rate though let's be honest if there if there's one thing that seems to occupy president-elect Donald Trump's mind it's the dollar on one hand he seems to prefer a weaker dollar he in fact I think today he even said the dollar was too strong but but he but with advisers
• 12:00 - 12:30 like former trade Chief Robert ligh Heiser suggesting that the dollar devaluation could be a key focus in a second Trump Administration on the other hand president Trump is acutely aware that the dollar status as the world's currency is you know under some type of threat he's even threatened 100% tariffs on countries that are moving away from using the dollar what do you expect for the dollar in 2025 do you expect it to maintain the strength it's had versus other currencies and even rise in strength or do you expect it to become
• 12:30 - 13:00 weaker well you know it really is a Sticky Wicket and and number one I think that this Market was created for a trading Market because whether the dollar is weaker or stronger against our trading partners the reality is is that the purchasing power which is what matters to us what we can buy with those dollars continues to decline and and what nobody's ever been able to answer
• 13:00 - 13:30 for me every time I've asked it and I've asked this question a lot is what happens when we officially get to zero we're we're not far from that that's about a confidence level so going into this New Year well with president-elect Donald Trump frankly anything is possible that's why they're talking about all of the global volatility but it's it's one sick currency against another sick currency
• 13:30 - 14:00 both currencies are sick so I I don't let me tell you this is it was the dollar falling to all-time lows and don't hold me exactly to this date but I'll be pretty close July 9th of 2007 that was the first time that the dollar fell to an all-time low against the trading partners when that happened I frankly I kind of freaked out and then we didn't have and then and then as we
• 14:00 - 14:30 know the great financial crisis started to unfold so the fact that it's gotten stronger against the trading partners the fact that we've seen the the carry trade the Yen carry trade start to unwind when they try to raise rates all of this is really telling you that we are at the end of this currency's life cycle and frankly whether the dollar is weaker or stronger against other currencies to me it really only matters
• 14:30 - 15:00 if you're traveling what really matters is the speed of the devaluation and that I think we're gonna the public is going to see this year because they don't see that other piece it doesn't matter it's it's a trading Market it's the purchasing power that people see Lynette the FED treasury Congress they've proven in the last few years that they're not going to slash entitlements they're not going to let Banks fail and they're not going to let treasury auctions fail so as Lyn Alden has famously said there's
• 15:00 - 15:30 no stopping this train so isn't that correct I mean we should expect more of the same of the circumstances that we currently have possibly or probably escalating as the days weeks and months move on yeah I think we're closer to an escalation and of course there's going to be more of the same though you know it's been really interesting um with regards to the bank failures and the uninsured deposits because this lack last time was a test
• 15:30 - 16:00 and so they bailed in half of the uninsured deposits not 100% right so so they're testing the waters and they're trying to enter this very slowly but could we see bailin this year probably not this year I don't know we're we're going to see because it's it's like always testing the waters what
• 16:00 - 16:30 do the what is the public notice right it's when the Public Notices that we have a big problem so even when like the Y carry trade failed or or in 2023 when those the three regional Banks went out and people would ask me well are you going to your bugout yet and why aren't you going to your bugout yet because what I'm waiting to see is the public response to it that's when I'm going to my bugout when the public sees it I will
• 16:30 - 17:00 tell you that there are experts that I have interviewed on metals and miners that are saying there is a banking crisis percolating they're not suggesting something's going to erupt in 2025 but it does have the underpinnings the the the foundation of one being laid no doubt yeah so there's many expert contrasting views on whether moving forward it'll be inflation or deflation I mean I'm sure you've heard contrasting arguments in the global economic Arena
• 17:00 - 17:30 of 2025 there's a stark contrast that has emerged between China's deflationary SP spiral as seen in their bond market and brought about primarily by their massive real estate problems and the Federal Reserve lingering battle against inflation for the Western economies moving forward and specifically the US what do you see moving ahead is it inflation or deflation doesn't matter because there's only one way to fight inflation and that's with deflation and
• 17:30 - 18:00 only one way to fight deflation and that's with inflation and when we're looking at the stimulus that China is is doing to fight that deflation what is it it's more debt either way it's more debt and that's not different in the US it's more debt so to your earlier point about the debt wall coming due and with the US economy seeming so robust bust with the jolts report and all of that the markets
• 18:00 - 18:30 are not happy because they want that cheap money to reset and restructure all of that debt wall that's coming due that they can't afford and we're seeing repeat offenders in the in the um default Arena so those corporations that have extended and pretended and gone to bankruptcy and then supposedly come out of bankruptcy and guess what they're in bankruptcy again I mean you cannot fix a too much
• 18:30 - 19:00 debt problem with more debt you can only postpone it until you can't so Lynette nvidia's market cap I'm sure you're very acutely aware of this it grew from something like 1.3 to something like 3.5 trillion in 2024 it's currently 11.7% of US GDP in the doc time frame Cisco Cisco was the had the largest market cap they were at
• 19:00 - 19:30 5.5% of US GDP this is more than double how serious of an issue is this I mean huge go ahead and elaborate yeah this is a huge issue because it's not just Nvidia you could put all those Tech Giants in there and they are the reason why the markets are moving up especially with the growth of you know all of the new money that was put into the system look at the growth of private equity and the ETFs and the
• 19:30 - 20:00 clout that these private companies re you know Blackstone Vanguard read all of these guys the level of clout that they have in these markets and they're hurting in other words all of these I think there's something like 9100 or so ETFs um and most of those are in equities and if you look at their composition almost all of have the same
• 20:00 - 20:30 stocks in there yeah which looks fabulous on the way up but is not very pretty on the way down so that takes you to the deflationary versus the inflationary stock market implosion is very deflationary so we've got to keep it floating because look at all of the millionaires in your 401ks that were minted last year from these old severe overvalued
• 20:30 - 21:00 stocks you know so on one hand you have this um massive concentration historic concentration we've never seen it to this degree you also have baby boomers who control the majority of the wealth they have the highest allocation towards stocks for this age group in history they they should be about two-thirds less involved in the stock market than they currently are on the flip side though you have stock markets around the world including the second largest
• 21:00 - 21:30 economy that folks used to put money towards that are no longer putting money there they're putting it into a safer place which is the US so there's some kind of balance taking place here but in the end are you anticipating a stock market implosion the likes of Doc com the likes of the GFC are you thinking there's going to be more of a stagnation because we've pulled forth uh profits going out 10 years you know where where are you on on
• 21:30 - 22:00 that issue um timing is always the biggest challenge but as you said earlier Gary we are in a melt up phase so I would expect that in nominal terms the stock market I think can go up a lot higher because I see a lot more money printing in our future and I also I mean this is the interesting part of 2025 is as the markets are pushing those interest rates up but the fed and other
• 22:00 - 22:30 Global central banks still dealing with inflation at a higher level than they want it to be they just want it low enough that you don't change how you behave or how you invest but um I everything really does hinge on interest rates and we have in this country we were battling deflation that's why every time we hit a recession interest rates would drop like five and a half to five
• 22:30 - 23:00 and three quers percent which would Inspire more borrowing and spending more inflation um but being anchored at zero I think we're going to see ultimately Pro probably not this this year because there's still a lot of hopium and a lot of stuff that can happen but I do see a stock market implosion that would look more similar to 1929 to the beginning of this great
• 23:00 - 23:30 experiment not 2008 because in 2008 they okay so you know we've had a few of them in 1971 so 1933 or 1929 was the beginning of the end and they dropped interest rates many people don't know this but they dropped interest rates to zero we also saw economic uh the number of times so monetary velocity the number of times that money Chang his hands drop all the
• 23:30 - 24:00 way down we are and have been since wow before 2013 in terms of where we were monetary velocity uh dropping we were lower than we were during the Great Depression in 33 yeah similar kind of thing happened back in 1971 but at that point we went to a full debt based system so we had a lot of debt that we could issue to keep things
• 24:00 - 24:30 propped up um and they ratcheted interest rates up to 21 a half% intraday and so for 40 years what we saw were lower and lower highs on the interest rates as they were trying to control the rate and speed of inflation but we were at what 15 16 years at zero interest rate policy so we have all of that debt that was accumulated that again to your earlier point is either has to has
• 24:30 - 25:00 already been reset at a higher level or is going to have to be reset at that higher level and the corporations and the government can't afford it could couldn't afford the lower interest rates let alone the higher so you see you see somewhere in the near future maybe not this year but you see a 1929 October 1929 style drop in the market is it safe to say then that we're in the Roaring 20s right now equivalent
• 25:00 - 25:30 oh um no um Okay the reason where where you why you hear my hesitancy is um in so many ways with the Advent of AI and the crypto and cryptography and all of that that came into play after 2008 what what that really is is more of a a Trojan Horse okay because they need
• 25:30 - 26:00 to shift into a new type of currency and that is the full surveillance currency that's their goal um so the The Roaring 20s really happened in 200 uh in the in the um after 200 um 1971 in the 1980s that was the transition part to get people involved right to today wearing
• 26:00 - 26:30 20s um maybe you can liken it to that but but for me I see it more as a trojan horse again to just keep people blind make that transition so that you think everything is normal and then once enough adoption has happened which it may have already done I mean we may have enough adoption but that's actually what makes having part of your portfolio at least I'm not saying don't do it everybody's got to do what they're
• 26:30 - 27:00 comfortable but properly Diversified with hard assets with sound money it it it makes it critically important because otherwise what are you g to have to transition into the new system so speaking of sound money Lynette China's been buying a lot of gold yes whether on record or off record they have ramped up their gold purchases over the last few years are China's huge gold purchases for protection against the dollar or to attack it and do you see time when the US will once again start adding to its
• 27:00 - 27:30 own gold reserves well uh yeah China to your point china has been building and I think it's probably a combination of both of them because what gold does is it buys you Independence and freedom and choice and it also gives you power you know when we could go in if we didn't like what was happening and pull the gold out of the system and create restrictions around our government the public had the power so I think it's
• 27:30 - 28:00 more about China wanting to be a Global Financial power in the world um but we have to burn off all the garbage of this system because the way that we did expand the economy through the growth of debt when you have a debt issue and remember even though we were in that Trend cycle for 40 years the rapid increase in interest rates to fight the
• 28:00 - 28:30 inflation which oh who created that well certainly not the central banks um but I think I think it's a bit of both it's to get into position to retain their autonomy and control and actually have a much bigger say in the global economy moving forward so speaking of gold since 2001 in the precious metal sector when there are short periods of time where gold and the dollar trade in correlation it has been followed by big moves higher
• 28:30 - 29:00 in Gold so since gold and the US dollar has been trading in correlation recently is that what you're anticipating for gold this year in 2025 oh yeah uh um it wouldn't it would not surprise me I can't obviously guarantee this but it would not surprise me to see the spot Market go to 4,000 by the end of this year because again I think we're going to see a lot of inflation and typically does Drive uh people and we've been
• 29:00 - 29:30 seeing this and and something else that that I've been witnessing that gives me so much hope is that there's the younger generation that is starting to they they're questioning everything because they're seeing the lie that's really actually happened they can't do what what we've been told to do and buy house or or look at how much debt they've taken on so they're actually using more cash but even better they're buying more
• 29:30 - 30:00 gold physical gold and silver right so yeah okay so Lynette both the Chinese Yuan and the Indian rupee have been rapidly devaluing versus the dollar of late which will should intensify price inflation in those economies should it be no surprise then that these markets with more than 2.5 billion people should see rapid local demand building for phys physical gold and silver as a safe haven
• 30:00 - 30:30 yes and I think we are seeing that and you know and to your point you know in China they couldn't buy gold citizens couldn't buy gold prior to 2006 and then all of a sudden it was encouraged but most of the physical gold buying is still held in the banks so what we've been seeing aside from that right which makes it very easy if the Chinese government decided to confiscate the gold from their citizens that makes it super easy to do so what we've been
• 30:30 - 31:00 seeing is a rush into jewelry a rush into these little gold pellets in different forms so that they can hold it and and in India they certainly know that especially after the devaluation of that currency uh was an 85% of the currency was demonetized in 2016 so people need to understand that if government says that this is money
• 31:00 - 31:30 they can also turn around and say oops no more money it's not money anymore and so the Indian population particularly understands that and that's why they typically carry their wealth on their bodies but during that that demonetization 2016 they went hous to house and they allowed the public to continue to hold a level of gold but they also confiscated level of gold from the population and
• 31:30 - 32:00 they've been trying to to uh to get what is currently physical into the system since what 2009 they've been trying this this gold scheme so yeah the public actually in both those countries understand the devaluation and the demonetization and they're looking to protect themselves so moving over to Silver the growing Global physical uh silver market total deficit estimate
• 32:00 - 32:30 for 2024 it was recently increased by the silver Institute to 282 million ounces from 265 million ounces the physical silver shortage lyette in 2025 it's going to be worse let's be honest because of the demand for it this is year five of the growing physical silver shortage and there's a reported 4.3 to 6.5 billion ounces of silver being shorted on the markets is there a massive short squeeze being set up here
• 32:30 - 33:00 oh well you know depends on the CME and depends on those providers there were you know to your point the silver shortage really started in what 2020 when there was this massive move and SLV changed their prospectus that it only had to to um follow the spot silver price there are massive shorts in both silver and gold which is another reason why it's critically
• 33:00 - 33:30 important for you to hold the physical metal itself because silver does straddle Two Worlds it's in the monetary world it's the second current second uh secondary currency metal but also in manufacturing so it's a whole lot more volatile but but yes in in either case there it's easy and cheap to create as much metal that does not nor ever will exist a short squeeze would be if those
• 33:30 - 34:00 that are buying those Futures contracts that stand for delivery because they can't do that they can't they can't deliver out the gold and the sil or the silver they don't have it but that's true with both the difference between silver and gold is that silver gets used up in Industry so it's actually the amount that's out there is diminishing but demand is also growing so it's ridiculous at 30 bucks an ounce
• 34:00 - 34:30 I mean on the spot like come on it's just stupid it's just stupid something's likely to change that at some point oh I know it well so this has been a fantastic conversation before we wrap up here and I asked lyette the final question I want to point everyone over to our substack go to medals and minor. substack do.com WE Post content on the consumer economy markets artificial intelligence individual medals and Miners and all the expert interviews that we conduct just like this one they are all up there when you subscribe we
• 34:30 - 35:00 want to give you a free gift it's a report that we wrote it's based on the ray Doo foundational premise titled if you don't own gold you know neither history nor economics it's a mustre for everyone on why we all should own gold for premium subscribers we just launched the Inner Circle it's a rotation of two to three monthly in-depth expert written analysis and insight reports that go into either the broader metals and miners Market or it does a deep dive into a specific metal or a specific minor in fact the first expert report
• 35:00 - 35:30 was published today on our substack and these are written by the same experts that you see interviewed on this YouTube channel head over to medals and miners do sub.com put in your email address to subscribe for free receive the free gift on us while you're there check out the premium subscription that includes the Inner Circle also I'm positive that you've enjoyed this conversation with Lynette as much as I have please let her
• 35:30 - 36:00 know hit the like And subscribe button and leave a comment below the video Lynette I'm going to do a lightning round type scenario for our last question here I'm going to ask you to rank a few assets as a buyer or sell by giving it a score of one to 100 with 100 being an extreme buy and one being an extreme sell and then just give one sentence as to why you take that position okay all right so right now beginning of 2025 on a scale of 1 to 100
• 36:00 - 36:30 is gold a buy or a sell and why it's 100% because of the uncertainty and what's happening in the currency and bomb markets on on a scale of one to 100 is silver a buy or a sell and why it's 100% on that one as well and really for the same reasons though they do perform different functions on a scale of 1 to 100 is copper undervalued yes agree it is undervalued is copper a buy or a sell and
• 36:30 - 37:00 why uh I think copper could be a buy because the governments around the world are trying to pump up their economies and copper is an industrial metal so what would you give it in one to 100 uh well because I don't know really what's going to happen in the global economies this year I'd give it maybe a 50 okay and on a scale of 1 to 100 is uranium a buy or a sell and why I have
• 37:00 - 37:30 no idea because I don't follow the uranium Market I'm sorry that's fine no problem Lynette thank you for coming on to the medals and miners podcast for being so generous with your time analysis and ideas it's been wonderful to spend the time with you would you please summarize your views that you've covered today and then let everybody know how they could learn more about your work and where they can connect with you absolutely I mean what people need to understand is I have been studying currencies and currency life cycles since 1987 and I see so many
• 37:30 - 38:00 patterns that take me back to all of those ex all of those transitions into a new into new systems whether it's 1929 1971 2007 2008 so therefore it is critically important as the central banks on a global basis are rushing to destroy the rest of the value of their currencies that we come together in
• 38:00 - 38:30 community because they're transitioning us into a full surveillance currency and if you don't have something that is completely outside of the system in your possession you will lose all choices all choices so the same reason that we see the global central banks particularly accumulating gold because it it maintains your freedoms and your choice 100% of the time because there is the
• 38:30 - 39:00 broadest base of buyer and markets for both gold and silver in every single sector of the global economy you're going into this currency fight with the strongest money ever sound money it is critically critically important that we build a global Community everywhere in the world and create this quiet Revolution just by and peaceful too just by converting your government debt-based
• 39:00 - 39:30 Fiat money that they are destroying into sound money than anything else you want to do you're properly Diversified and you're covered and how can folks get in touch with you and connect with you well I'm very active on YouTube and also on Twitter it's the lyette Zang on Instagram and Facebook it's lyette Zang and of course you know I've got a whole team of strategy Specialists and we have
• 39:30 - 40:00 a strategy that we execute that's based on all those repeatable patterns and your goals we put your goals first and they can call us uh at 833 GLD Z or they can go to our website lyette zen.com all of that information will be up on the screen as well as in the description area so that folks can click through they can find you everybody go follow Lynette if you aren't already check out her work and um I think you'll
• 40:00 - 40:30 be pleased Lynette thank you for being here and um I look forward to having you back on sometime soon everybody else thank you for watching Hi Point everyone over to our substack go to medals and minors. substack do.com WE Post content on the consumer economy markets artificial intelligence individual medals and Miners and all the expert interviews that we conduct just like this one they are all up there when
• 40:30 - 41:00 you subscribe we want to give you a free gift it's a report that we wrote it's based on the ray Doo foundational premise titled if you don't own gold you know neither history nor economics it's a mustre for everyone on why we all should own gold for premium subscribers we just launched the Inner Circle it's a rotation of two to three monthly in-depth expert written analysis and insight reports that go into either the broader medals and min Market or it does a deep dive into a specific metal or a
• 41:00 - 41:30 specific minor in fact the first expert report was published today on our substack and these are written by the same experts that you see interviewed on this YouTube channel head over to medals and minor. sub.com put in your email address to subscribe for free receive the free gift on us while you're there check out the premium subscription that includes the Inner Circle
• 41:30 - 42:00 [Music]