Inflation Just Tripled as the Reset Accelerates

U.S. consumer sentiment has dropped to the lowest level since 1952, lower than post-World War II, lower than the Great Financial Crisis, and lower than near double-digit inflation just a few years ago. If you look at the headlines this week, we have oil over a hundred dollars a barrel as the Strait of Hormuz blockade begins and the petrodollar is called into question. We have inflation nearly tripling over the last month, and we have Japan's 10-year bond yields rising to the highest level since 1997. All of these articles are connected, all of these events come back to the one central theme that we continue to talk about that I have been beating the drum on, the global monetary reset led by the devaluation of the dollar. And if you are not protected in position for what's coming next, this will impact you. Americans are right to feel concerned, but it is not too late to make sure you're protected. Now the biggest question that I get asked all the time from people calling in is, what about gold and silver? If inflation has tripled, if the war is raging on, why are my gold and silver not shooting up? And it makes sense, it's a good question to ask, one we're going to answer today. But before we get into what is happening with gold and silver and what's coming next, we have to first understand what is happening today. In case you missed it this week, inflation has hit 3.3% in March with experts now expecting it to hit 4.8% by the end of the year. Who could have guessed that that was going to happen? Now as a disclaimer, I always say first these numbers to me under report just how bad it is, because we know that the metrics that they use are designed to soften the blow. So if you are saying, I think that prices are rising even faster, you're not wrong. Number two, when we hear 3.3 or 4.8%, you've got to remember, that's in addition to what's already been taken from us. These numbers don't live in a vacuum, right? That 30% of our purchasing power we've lost over the last few years, that didn't magically come back. That's gone. That's gone and we're not getting it back. This is on top of that. Meaning that every dollar you have saved, every dollar denominated asset that you have is being chipped away at, right? As the dollar continues to lose its value. Now many people have asked, okay, well why then aren't gold and silver surging, right? That's the big question. That's the million ounce question that everyone always has. And it makes sense, especially when we see headlines like this from Bloomberg, which says gold eases as US plan to blockade Hormuz raises inflation risks. Now that feels counterintuitive. If inflation is rising and the war is raging on, shouldn't gold be surging? Let me explain what they're talking about here. And then we'll talk about what's really going on with gold. Inflation continuing to rise. What does that mean? Well, it means the Fed is caught in a catch 22. I've talked about this before. If they cut rates or leave rates the same, then inflation continues to rise. But if they raise rates to fight inflation, well then what happens to our debt? The US debt, which is closing in on 40 trillion and now has more spending on interest, a percentage of total budget going to interest than ever before in our history. That is going to increase. It's going to cost us more to service our debt. So the Fed really can't raise rates, but they might be forced to because inflation is going to rip higher. When the Fed raises rates, it typically means that the dollar strengthens against that because people are anticipating that inflation will slow, not go away, not be solved. Again, we're never getting back what was lost, but it will slow, which strengthens the dollar. And therefore, you typically see less investors moving into gold. But I've talked about this before. What is in my hand? Physical gold, real gold, real money is very different than paper gold, Fugazi gold. There is a big difference between a paper market and a physical market. The paper market is all a trade. It's a trade. Physical is very different. If you personally are holding or thinking about buying physical gold, it is a different mentality than those who are out here trading paper gold futures and contracts. Very different. Same when we look at China, who continues to buy record amounts of gold. Why? Why are they buying physical gold? Because they understand what's coming next for the dollar and the system itself. 4.8% inflation is going to be the least, the least of our worries as we continue to move through this currency lifecycle. Currency lifecycle always follows the same pattern. Start with inflation over here because there's an overprinting of the currency. There's a loss of confidence. The debt continues to grow. That's what we've seen happen. Eventually, it gets so bad that it leans into hyperinflation where prices are doubling, doubling overnight. Who can afford that? Can you? Can you afford hyperinflation? I don't think so. No one really can. If you are heavily, heavily, if your wealth is heavily invested in dollar denominated assets, that includes, again, your savings, your checking, annuities, stock market, all throughout history, I see go into hyperinflation. Those who are heavily invested in anything that touches the currency, dollar denominated in this case, they can't afford to lose half of their wealth every single day. Who can? Then hyperinflation into an official currency revaluation or devaluation. That's when they lop off zeros and revalue the currency because guess what? They can. It's not backed by anything other than the full faith and credit of the government, meaning they can do whatever they want. But throughout history, everyone who has protected their wealth outside of the fiat currencies with real money, physical silver, physical gold, those are the ones who have come out the other side, not only protecting their wealth, but setting themselves up with opportunity on the other side because they have options. That is exactly what we're seeing play out right now. We are living through a global, global moving forward of the currency lifecycle of the dollar because it is the global reserve currency. As the dollar continues to lose its purchasing power, as more nations move away from the dollar, they're not trying to move into another currency. That's not what they want. Fool me once, right? No, they don't want another fiat currency to take stage. So what are they going to turn to? It has to be something they all can trust. That is where an asset backed system is coming into play. We see it with gold repatriation, nations bringing their gold home because if you don't hold it, you don't own it. We see it with China continuing to buy physical gold. Who is the direct competitor to the U.S. right now? Where are we seeing this power dynamic play out the most? U.S. and China. What is China doing? They're stocking up. They are stocking up because they don't want to be the ones left holding the bag with the fiat currency, with the paper dollars, when they could have a real true store of wealth. The same applies to everyone out there because again, we're talking about a global decline of the dollar. I mentioned this earlier, but just came out yesterday, Japan's 10-year bond yield rises to 1997 high on Iran tensions. Now we've been following this story for a while here, but things are really heating up. There's a chart, we'll put it up on the screen, that shows just how high these yields are. Now, as a reminder, yields are the interest paid on debt. In Japan, what's happening is that they are having to offer higher and higher interest on their debt. Now, Japan has been the world's ATM. They are the largest foreign holder of U.S. debt and they give out cheap money, cheap currency to everyone else. You guys in the comments call me on that. Yes, this is real money. Currency is not money because it doesn't have a true store of value. I say money sometimes just because it's easier for a lot of people to understand, but there is a big difference between currency and money. Japan has been out here giving everyone cheap currency, cheap funding. As their yields continue to rise, what does that mean? It means that the party's over. They're going to bring all of that funding back home. Now, you have a nation like the United States who has less demand for their debt, less interest in their debt at a time when the U.S. needs more buyers of their debt. You have Japan, the largest one, pulling back. What does that mean? That means that the U.S. is going to be forced to spend more to offer more interest on the debt to attract buyers. This is a debt doom loop. I talk about this all the time, but it is so important to understand because this is the pivotal point. This is the point, right? U.S. consumer sentiment, the lowest since 1952. This isn't made up. Don't let the media gaslight you into thinking that you're either alone or that the majority of Americans are crazy for thinking that things are really bad. They are. Maybe the stock market's doing well. Hooray. But what does that really matter when we are careening towards hyperinflation and a currency reset? It's not going to matter a lick. What's going to matter is that you're protected outside of the system. Now, I know I just covered a lot in this video, and the number one question I get asked from everyone is about resets and currency life cycles and what's coming next, where we are in the timeline, and of course, how to prepare, which is why I am so excited that I am doing a live webinar on April 21st, Tuesday at 930 a.m. Pacific, 1230 p.m. Eastern. It is Surviving the Reset, the Four Stages of Currency Collapse. Now, I'm going to throw up a QR on the screen. I'm also going to put a link in the description below. It is completely free because I believe everyone should have this information. We're really going to get into it. I did this webinar about six months ago, but it is updated because in the last six months, so much has changed, whether we're talking about gold, silver, the petrodollar, the war, you name it, there's a ton to cover. It is, again, 100% live, free, but you do need to save your seat, so register by clicking the link in the description below or scanning the QR code, whatever is easiest, but make sure you save your seat, and let me know in the comments that you will be there because at the end, I will be doing a live Q&A for everyone who's in there. If you've attended one of my webinars before, I love this part because it means that we can chat directly, so make sure you save your seat, and if you have any questions in the meantime, or you want to talk to someone, call us at the number below, call us at the number below, or click the Calendly link in the description, and as always, thank you so much for being here. I'm Taylor Kenney with ITM Trading, your trusted source for all things physical gold, silver, and lifelong wealth protection. Until next time.