Part 2

Needing to borrow vast sums constantly puts the government at risk of a funding crisis. That is, unless they turn on the printing press. And look what just happened.

The Fed announced last week that due to “liquidity” issues in the T-bill market, it would resume buying Treasury bills – roughly $40 billion per month. That means it’s going to print money to buy government debt, again. The liquidity issue the Fed is describing is far too much Treasury bill issuance and not enough buyers of the paper.

As the Fed returns to printing money to finance the government’s debt, it’s doing so at the extremely short end of the curve, which, in some ways, isn’t as inflationary as buying long-dated bonds because it won’t impact long-term interest rates. But in another way, it’s a very bad sign: banks are growing reluctant to buy government paper, even for very short durations, at the existing interest rate.

Why? Two reasons…

1. For the first time in more than 50 years, gold is now a viable alternative for global financial institutions to use as a reserve asset
2. It’s a sign that the financial markets doubt the government’s ability to successfully manage its enormous debt load

This sets the stage for the final collapse, where the Fed must continually print to refinance the debt. That starts the inflationary doom loop, where the resulting inflationary pressures cause more investors to flee the dollar, causing funding costs to rise still more… leading to more and more printing.

In this scenario, the social problems we’ve seen emerging for the last decade become vastly worse, as the affordability crisis moves from the young, who can’t afford to start a life in America, to the old, who are completely dependent on government payments, which have less and less purchasing power.

The “End of America” is not a prediction anymore.

It’s here.

Part 1

I The $40 Billion Per Month T-Bill Plan To Solve The “Liquidity” Crisis This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers. The spending will never stop… Liquidity issues in the T-bill market… It’s what happened to GE in 2008… $40 billion per month… The End Of America… A small-cap breakout… Time’s Person of the Year… A sign of the top… We are approaching the “end game” with the U.S. government’s management of its debt load. Federal debt is now more than $37 trillion. The interest to service that debt this year will exceed $1.2 trillion. That’s more than the U.S. defense budget. A generation ago, in 2000, the debt-to-GDP ratio was only 33%. Today it’s more than 120%. And that ignores the massive obligations of Social Security and Medicare (~$75 billion) that remain “off balance sheet,” but continue to come due, more and more, every year. While most investors will ignore these problems, they are going to have a profound impact on our whole society, not just on your investments. It’s the government’s incessant expansion of the money supply that creates inflation, causes America’s affordability crisis, and creates the wealth inequality that’s fueling the rise of socialism. I’ve written about these problems many times, but what happened this week is the first concrete action I’ve seen by the Fed that validates my hypothesis that we are two to three years away from a collapse in the U.S. Treasury market. To minimize its interest expenses, the U.S. federal government has shifted the bulk of its debt into short-duration Treasury bills. A bill is an obligation that comes due in less than a year. Moving most of the outstanding debt “shorter on the curve,” lowers the government’s interest expense, because debts due in less than a year have a lower interest rate than notes or bonds with much longer durations. But putting so much debt into short-term paper is also very dangerous. It sets up a funding tempo – vast debts must be refunded almost constantly – that frequently leads to a crisis. This is more or less what GE did in the 2000s as it amassed an enormous $700 billion debt load. And as I warned about GE back then, when institutions have so much debt coming due every day, every week, every month, it’s only a matter of time until something goes wrong and there’s not enough time to work out a viable solution. Without the government’s bailout in 2008, GE would have gone bankrupt in less than a week. Total government debt has doubled in the last decade and most of these additional obligations have been financed at the extremely “short” end of the Treasury market. Ten years ago, the amount of T-bills outstanding was only $1.7 trillion… or less than 10% of GDP. Today, there are $5 trillion worth of T-bills outstanding – a 194% increase and an amount of debt that’s equal to nearly 20% of GDP!

A good idea on instinct alone but not a good enough reason. You have to have reason behind it and collectively there’s all sorts of reasons that can add up to organized crime even acts of war including participating in voter fraud  and other financial fraud likey sided by Democrats.

Hold on I’m trying to think why that’s not a good idea …

Well I guessed right early morning  here but  7;52 eastern post silver could slow but any dips will be a buying opp.if it doesn’t get sold out or rig the premiums.  They don’t want the dollar to drop down too far but for now looks like a losing battle or shouldn’t want the dollar to go too high either. With the shortages that’s not gonna be the main reason. Then war is vaporizing silver using hundreds of pounds in their missiles.

same pattern today with AU & CU

I think the United States needs to put an electric fence around the state of Minnesota and put about 100,000 National Guard on the MN streets. Round up all those damn Somalians and put them on airplanes and send them the hell back. dumb muzzies. I hate those people. The Arab invasion is strong, you wouldn’t believe how many women we have wearing ninja burka suits in Denver and you can only see slits of their eyes, dumb hoes. I swear Biden let em all in thinking they were gonna vote Democratic for him. Eff you democrats!

I’m not sure they even have that.

It’s good to see the shares come back some today along with gold. These shares shouldn’t be going down for a while since they are so far behind the metals prices, especially the silver shares, all of them should be much higher already.

Was texting, email responding and posting about the same time Shouldn’t of put it that way. Writers fatigue. Shorts have till the end of the year then thing can get interesting.

Goldie – I have no idea what this means: “CME They’ve got 21 days.”

deer79 – you called it. They’re showing us who’s boss. Course, the SM is getting hit as well, so we can’t be the only thing surviving. Things are slowly changing, but they haven’t given up yet. They’ve destroyed the HUI breakout of the last couple of days though. Always manipulated down, you’d think they’d try to take advantage of a move up every once in a while.

Hopefully we get a year-end rally, but I don’t know. I don’t like the fact that rates keep rising.

I hate reverse splits! When the PM market really starts going we should see some ordinary splits where you get more shares. I like that!

PS I sold that stock so I never have to look at it again! 🙂

I owned a lot of shares in a Vancouver-based company which owned a Nevada based open pit mine . Their consolidation ratio was 9:1 , creating a boatload of partial shares .

….makes me even more suspect. I think it was Bill Murphy and GATA that used to say, “price action makes market commentary.” ( or something to that effect).

As soon as the selling ( in stocks, Gold and Silver ) started to crescendo downward with some pressure) a headline that conveniently comes across Bloomberg stating “ Some Oracle Data Centers For OpenAI Delayed to 2028 from 2027.”

Call me conspiratorial here, but it certainly makes everything so nice and tidy for the scum and the Working Financial Group.

Just makes me think the selling by the scum will be relentless today, because PERCEPTIONS need to be maintained going into the weekend; they’re still in control and can move the metals down when they want to.

We all know it’s just a matter of time before they completely lose all control!

CME They’ve got 21 days.

is that u. s. dollars, or canadian dollars?

THEY ARE NOT THE SAME.

Btw these me too groups are a bunch of wimps. If they want to do any good right now go to their communities help the abused women and their children out and help them file child support on their 20 kids they’re no longer getting welfare for I bet they’d self deport.

I guess the Captain would know, but I’m not sure if that will save them from a physical issue.

Funny, they hit the sell button right out of the gates in the first minute of trading.  Everything is sold across the board – metals, shares just randomly dumped.

We still haven’t gotten to the point where we see “normal market action” on a day-to-day basis. It seems like more days than not, they dump at the open and then dump again at the close. They are working hard now to reverse silver. Effing demons.

I  agree staying close to home with miners is probably a good idea right now.

Yep they don’t belong here and I keep hearing how the majority are on the dole burdening tax payers and commiting  crimes. They use religion as a source of power and weapon by drawing others like them together to polarize our communities and since their ideations of inequality is a threat and illegal  and aggressive actions like blocking streets or threatening citizens is a crime it could be and should be considered ORGANIZED CRIME.. Keeping in mind that not every individual within a ethnic or religious group thinks and acts the same but the ones that do should be deported.

Besides the MMs taking out stops below before a move up. You’ll see that more frequently at the lows.  I wonder if they could manipulate short covering with a quick drop. I’ve seen long tails that dropped all the way down then disappear after awhile and have no idea what they were doing or a malfunction..

What we do have to watch out for is they can mess you up even if your on the right side like reverse splits of ETFs, delisting, or what a company like  Ascot suddenly did and steal all the investors shares.