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**SILVER PRICE** IS SOMETHING "BIG" ABOUT TO HAPPEN... (GOLD PRICE) · SILVER / GOLD / $UFD: Surviving Global Economic Shifts | RONS BASEMENT

• 0:02
  Silver, gold, platinum investors, this is big news,
• 0:06
  breaking news. You want to feel good about your
• 0:09
  investment you've made in silver, gold, platinum, precious
• 0:13
  metal mining stocks. Well, I think after you hear
• 0:16
  this, you're going to feel that warm and fuzzy feeling.
• 0:19
  Because ever find it interesting that they sneak out the real
• 0:23
  important big news stories on Friday afternoon and they snuck
• 0:28
  one out on us this Friday as well.
• 0:31
  Let's get right to it. This has to do with silver, with
• 0:35
  gold. This has to do with why you hold
• 0:38
  those metals. But it also has to do with the
• 0:40
  Federal Reserve. It has to do with the FDIC and
• 0:45
  the biggest banks in the country.
• 0:48
  And I want you to keep in mind, why did they sneak this out on a
• 0:52
  Friday when nobody's watching? Right, guys?
• 0:55
  We could be in for a major big event.
• 0:58
  Let's dig right in and go straight to the headlines.
• 1:03
  Our friends at CNBC put out the story.
• 1:06
  Regulators hit Citigroup, JP Morgan Chase, Goldman Sachs, and
• 1:12
  Bank of America over their living will plans.
• 1:16
  What's a living will plan? Well, that's basically how these
• 1:20
  big banks would unwind themselves if by chance we were
• 1:24
  to have a financial crisis. And what do you think would
• 1:27
  happen to the value of your silver and gold if we had
• 1:30
  another financial crisis? I got a little hint for you just
• 1:34
  as a little primer on that one. During recessions, gold alone
• 1:39
  typically has gone up between 18 and 21% in the past.
• 1:44
  But none the less, why is this such big news?
• 1:47
  Well, as we look in green banking regulators on Friday
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  disclosed that they found weaknesses in the resolution
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  plans of four of the eight largest American banks.
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  The Federal Reserve and the FDIC said the so-called living wills
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  of Citigroup, JP Morgan Chase, Goldman Sachs and Bank of
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  America filed in 2023 were inadequate.
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  Regulators found with the found fault with the way each of the
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  banks planned to unwind their massive derivatives portfolios.
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  Oh, there they are. The derivatives.
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  I think Warren Buffett, right, That esteemed American investor,
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  what did he tell us about derivatives?
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  Not too long ago, he referred to derivatives as financial weapons
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  of mass destruction. Derivatives are Wall Street
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  contracts tied to stocks, bonds, currencies and other interest
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  and and interest rates. We're gonna, I'm gonna give you
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  a great explanation in a second, a little more about these
• 2:55
  derivatives guys. When the derivatives, I don't
• 2:59
  know where to start on this, but when the derivatives blow up, it
• 3:03
  would be, it could be right, Could be.
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  I want to emphasize what makes me and what I think should also
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  make you and maybe you disagree with me, but very suspicious is
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  why they're putting this out on a Friday, why both the FDIC and
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  the Federal Reserve are referring to this as being a big
• 3:25
  issue. Banking regulators on Friday,
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  Friday disclosed they found weakness in the resolution
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  plans. We just read that for the eight
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  largest banks, the Federal Reserve and the Federal Deposit
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  Insurance Corp said the so-called living wills plans for
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  unwinding huge institutions in the event of distress or
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  failure. Citigroup, JP Morgan, Goldman
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  and Bank of America regulators found fault with the way each of
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  the banks plan to unwind their massive derivatives portfolios.
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  For example, when asked to quickly test Citigroup's ability
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  to unwind its contracts using different inputs than those
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  chosen by the bank, this gets almost humorous.
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  The firm came up short. According to the regulators,
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  that part of the exercise appears to have snared all the
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  banks that struggled with the exam.
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  So the bank said, oh, yeah, sure, we can unwind our
• 4:24
  derivatives here under this scenario.
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  This is exactly how we're going to do it.
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  And apparently the Fed and the FDIC said, well, what about if
• 4:31
  this happens? What about if that happens and
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  things didn't go too smoothly? I'm going to show you why this
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  relates directly to silver and gold in a minute here.
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  Quote. An assessment of the covered
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  company's capability to unwind its derivatives portfolio under
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  conditions that differ from those specified in the 2023 plan
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  revealed that the firm's capabilities have material
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  limitations. Here's the deal.
• 5:02
  Here's the deal. JP Morgan, go here.
• 5:05
  The one final thing I want to throw in JP Morgan, Goldman,
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  Bank of America declined request to comment from CBCNBC.
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  They said, sorry, we're not going to, we're not going to
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  talk about this derivatives. OK, Let me, I'm going to give
• 5:22
  you a little teaser here. It all has to do, my friends
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  with this beauty. This is the gold, if you're a
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  gold and silver, platinum, I know we got Neil on here.
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  All you guys, if you're an investor in these metals, OK,
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  hold on. I'm going to read what Carlos
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  says here. Thanks, Ron.
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  I hear some AAA derivative. Hold on.
• 5:45
  Thanks, Ron. I hear some AAA derivative
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  investments are now losing big money and AAA going bust now.
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  Wow, thank you. OK.
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  And why is it a big deal to you as a silver and gold investor
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  right down there? Gold and silver are the base of
• 6:02
  all of this. But before we dive more into
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  that, exciting, right? This is crazy.
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  Is this big? Why did they put it out on a
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  Friday afternoon? Just just wondering, why is it
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  the Fed and the FDIC? Just wondering what are
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  derivatives? You might be wondering?
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  I'll give you a real simple explanation in one second.
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  Let's go over here and take a look at derivatives 'cause I
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  asked the question just how big is the derivatives market 'cause
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  if it blows up and all that money on that inverted pyramid I
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  showed you, even if just guys, it's just 1% of the derivative
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  market, money alone were to flow into the gold and silver market.
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  It is like trying to drain Hoover Dam with a garden hose,
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  OK? It is like a avalanche of new
• 6:59
  money coming into the silver and gold market.
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  It's all I, I, I can't help. I got, I got something I want to
• 7:05
  say to you so bad, but I'm going to save it here for just a few
• 7:08
  more minutes. I have something so big.
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  I want to, but we're out out. We're going to see what they say
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  the derivative market is. And then I'm going to give us
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  basement dwellers. And by the way, thank you for
• 7:20
  being here. You are the most important
• 7:23
  person in the room in the basement.
• 7:26
  Basement dweller, right? I hope you feel like you found a
• 7:29
  new home. You're always welcome here.
• 7:31
  Please give this a thumbs up if you don't mind.
• 7:34
  That would help get the news out to more people and you can
• 7:37
  subscribe to the channel anytime that's free.
• 7:39
  How big, how big your Dynamo is the derivatives market, the
• 7:44
  derivatives market and and that this is this is hilarious.
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  The derivatives market, in a word, is gigantic, often
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  estimated at over one quadrillion dollars.
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  OK, one quadrillion is 1000 trillion.
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  OK, 1000 trillion, one trillion is 1,000,000 * 1,000,000.
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  If your head is not spinning, he'll grab your head with me.
• 8:09
  I'm grabbing mine. But it's unbelievable.
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  How can that be? Largely because there are
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  numerous derivatives in existence available on virtually
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  every possible type of investment asset, including
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  equities, commodities, bonds and currency.
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  OK, so so let's talk about this derivatives market.
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  It's massive. We think it's about a I've heard
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  people say it's three quadrillion.
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  I've heard people say it's four quadrillion.
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  No matter how big it is, it's massive.
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  But doesn't it make you a little suspicious that no, it's like
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  trying to find out how much gold the Chinese, the P Bock has,
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  right? Nobody knows.
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  Nobody knows how big the derivatives market is.
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  Doesn't that make you a little suspicious?
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  Doesn't it make you, I'm just asking you, does it make you a
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  little suspicious that on Friday afternoon they throw out there
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  that, oh, there's a little problem with the four of the
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  eight biggest banks in our country if they had to unwind
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  their derivatives? Yeah.
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  Doesn't it make you suspicious when you consider that Warren
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  Buffett called them the the financial weapons of mass
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  destruction? But what a derivative is OK, and
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  this is worth and then I got I'm I'm saving it for you, baby.
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  I got something that that I believe us basement dwellers
• 9:25
  will find hilarious. But a derivative is a bet on a
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  bet, right? It's a it's a bet between banks,
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  between financial institutions like you and I.
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  We don't get the trade derivatives, OK, But they like
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  bet on things with each other about certain things happening,
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  certain things moving certain ways.
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  It's a big cluster bomb is what it is, OK?
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  It's a nuclear bomb, a financial nuclear bomb that is like
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  there's one of these articles said it was like equalled
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  multiples times. The value of the whole world
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  economy, GDP for a year. It's a big, big mess.
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  But I want you to consider this, OK?
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  And we're going to talk about how this relates to you and me.
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  Yes, you, right. You own silver.
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  I know you do. You own gold.
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  I know you do. You probably own a little
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  platinum, right? Maybe I own a little platinum,
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  right? How does this relate?
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  We're going to get to that, but I want you to consider this
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  crazy idea about these derivatives.
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  Think about this, OK, we're out. What we're when we're talking
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  about stocks, when we're talking about currencies, right?
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  The things that these derivatives are based upon, OK,
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  What are they based upon? Stocks, indexes, interest rates,
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  all those things that I just mentioned, stocks, interest,
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  those are all make believe. Those are all synthetic to start
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  with. OK, this my friends.
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  If they have derivatives on the value of this, this is
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  synthetic, this is paper. There is nothing backing this
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  this. It's no better than this
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  Monopoly money I stole from my kids.
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  This, by the way, if you look at the top, is a silver
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  certificate. Things were different then, but
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  this is history. OK.
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  Oh, and I just dropped it. This is what it's based on.
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  The derivatives are based, we could say, us basement dwellers
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  on Unicorn fart dust. It's a sophisticated way for us
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  to say on synthetic instruments. We like to call it what it is,
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  Unicorn fart dust, right? OK, so at the base, what they're
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  betting on is synthetic is fake. And it's so, so these
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  derivatives, this quadrillions of dollars of derivatives,
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  wouldn't it be safe to say then that that's like double Unicorn?
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  I never thought I would say it. I never thought of this before.
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  Thank you for joining me. We're learning together.
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  The derivatives are double Unicorn fart dust.
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  There's you can't deny that, right?
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  Look here, I'll show you in a second.
• 12:13
  But first, I want to say thank you to our sponsors.
• 12:16
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• 12:18
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• 12:20
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• 12:23
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• 12:26
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• 12:28
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• 12:37
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• 12:39
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  pendeks.com. firstmininggold.com is where you can learn about
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  first mining gold. Go figure that right?
• 12:49
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• 12:51
  development stage projects in Canada and our newest sponsor,
• 12:57
  Fortuna Mining. They changed their name, they
• 12:59
  changed their logo, but they didn't change the fact that
• 13:02
  they're still doing a great job producing gold and silver in
• 13:07
  Latin America and West Africa. OK, thank you to our sponsors.
• 13:12
  They make this possible. But but hold on here, here, this
• 13:17
  is where you can see it visually, OK, derivatives.
• 13:22
  They even have crypto derivatives up there.
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  All this stuff is make believe is fake, is phony.
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  OK, so how big is this? So all this to start with,
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  right? All this is fake Unicorn fart
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  dust like we like to call it. This on top of it, the
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  derivatives are even based on a lot of this stuff.
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  So it's like it's a double whammy guys.
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  This could be a huge, huge deal when it comes down.
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  Why did they wait till a Friday, right?
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  Why, right, And why is it both the Federal Reserve and the FDIC
• 13:58
  saying, guys, we got a big, big problem.
• 14:01
  I'd say it's a big, big, massive problem, right?
• 14:05
  Is this one of these situations where we're going to look back a
• 14:08
  month from now, a week from now, six months from now and say,
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  Yep, oh, they're, are they covering their, their, their
• 14:15
  arses, the FDIC and the Federal Reserve?
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  I don't know, right? It's crazy.
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  So something big is certainly potentially about to happen.
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  I wanted to get on and just say hello to everybody and share
• 14:34
  that with you. I just found out about it this
• 14:37
  afternoon. Number of you have emailed me
• 14:40
  about this. We'll be following it closely
• 14:43
  right? Because no matter how you slice
• 14:45
  it or dice it, when you look at what's going on out there right
• 14:49
  now, everything, I want you to take a deep breath and I want
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  you to, I want you to touch one of these.
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  Here's a beautiful silver round. I mean, absolutely beautiful,
• 15:04
  right? This is real.
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  All that other stuff out there floating around, right?
• 15:10
  It's all synthetic. I know, right?
• 15:13
  I know And I know, you know, right?
• 15:15
  Silver and gold are real money. I mean, what is going on in the
• 15:20
  world right now, right? What is going on?
• 15:23
  What if, what if it would just take the smallest?
• 15:25
  I mean, these derivatives are like nuclear, financial, nuclear
• 15:29
  bombs. Warren Buffett said it himself.
• 15:32
  What if it's just, there's some, I mean, think about what's going
• 15:35
  on in the world right now. War in Europe, right?
• 15:39
  War in the Middle East, potential major conflict with
• 15:44
  China and Asia, possible big conflict between North Korea,
• 15:48
  South Korea. Think about that from a from a
• 15:52
  geopolitical perspective, but then think about it
• 15:54
  geopolitically from a financial perspective as well.
• 15:56
  The balance of financial power is changing right now.
• 16:00
  I know it's going to take one little thing, right?
• 16:04
  And that's what the experts say about these derivatives is it
• 16:07
  doesn't take a lot to potentially start a cascade of
• 16:11
  events that like Warren Buffett says, it could be like a a
• 16:15
  weapon of mass destruction and nobody knows.
• 16:19
  It's don't you just find it absolutely curious that that
• 16:23
  these are banks? Let's ask a question.
• 16:25
  Let's I want to ask you a question.
• 16:27
  These are banks. They're supposed to keep like
• 16:30
  records to the penny, right? They're a bank.
• 16:34
  That's their only job to keep track of money.
• 16:37
  OK? That's their only job.
• 16:40
  Why can they not tell us how big the derivative market is?
• 16:44
  I mean, there's estimates from 15 trillion all the way up to
• 16:49
  four quadrillion. I think it seems like one
• 16:52
  quadrillion is probably the close.
• 16:54
  But why can't these banks tell us exactly how big their
• 16:58
  derivative exposure is That that seems a little suspicious to me,
• 17:05
  right? Does it seem a little suspicious
• 17:07
  to you? Right.
• 17:08
  Why are they telling this? It's it just, it's, it's
• 17:12
  something stinks. And if it gets pushed out of
• 17:15
  balance and then this derivative goes bad and that makes that
• 17:19
  derivative go bad and this goes bad, it can get ugly, ugly
• 17:23
  dugly, like really, really quick.
• 17:26
  And you know, I know, I understand.
• 17:28
  I'm gonna ask you a question. Do you remember the great
• 17:31
  financial crisis of O seven O 8? Do you remember that?
• 17:35
  Well, guess what? In the period of time leading up
• 17:38
  to that, everybody thought everything was OK.
• 17:41
  Everything was OK. It was 2006.
• 17:44
  It was early 2007. Even throughout parts,
• 17:47
  everything was fine. It was everything was fine
• 17:50
  yesterday. That, my friends, that's what
• 17:53
  you need to be afraid of. That's called recency bias.
• 17:57
  Just because everything spent was well at work.
• 17:59
  We didn't have to worry about the national debt yesterday.
• 18:01
  We didn't have to worry about the derivatives yesterday.
• 18:05
  No, we didn't have to worry about it at all.
• 18:07
  Until it all blows up. And did that happen with the
• 18:10
  great financial crisis? You can listen right to the Fed
• 18:13
  in the period of time leading up to the great financial crisis,
• 18:16
  the Treasury Secretary, everything's fine and healthy.
• 18:20
  The you, you know, the, the US economy and the financial system
• 18:23
  is on strong footing. Until it wasn't, until it
• 18:27
  wasn't. Then it was in big, big, massive
• 18:32
  trouble. I'm going to scare you now.
• 18:35
  I'm sorry. This is going to scare you.
• 18:38
  We are in a much more exaggerated and precarious
• 18:43
  situation now, way different right now than we were in OO7
• 18:48
  and O6 leading up to the great financial crisis.
• 18:51
  I'm not, I don't want to be the town crier.
• 18:53
  I'm I've got a half a tinfoil hat on right now, I'll fully
• 18:57
  admit that. But guys, I don't, I don't care.
• 19:00
  Things are much more the debt levels, the derivative levels,
• 19:05
  what we spoke about today, everything is much more
• 19:08
  precarious now than it was back then.
• 19:11
  So when it happens, right, and everybody say, well, yeah, but
• 19:15
  the Fed, yeah, everybody will be surprised, right?
• 19:18
  Everybody will be surprised. And I'm telling you these next
• 19:20
  six months that we're heading into in this country, right?
• 19:25
  It's going to be it's going to Katie bar the door.
• 19:28
  Buckle up, Buttercup, is what I would have to say because it's
• 19:31
  going to get super, super interesting.
• 19:34
  It'll be interesting to us because we know we see the
• 19:38
  confluence of factors going on right now out there.
• 19:41
  And no matter how you wanna look at it, it's gonna challenging
• 19:45
  time that that I've got a part of my family's assets invested
• 19:54
  into precious metals because what I see coming could be ugly.
• 19:58
  Hey, thank you for being here. Thank you for being such an
• 20:01
  important part of Ron's basement.
• 20:04
  OK, you guys are awesome. I'll be back tomorrow morning.
• 20:07
  I just wanted to hop on tonight. Happy Saturday, basement
• 20:10
  dwellers. I wanted to hop on because to
• 20:12
  me, this story out of CNBC talking about what's going on
• 20:18
  with these derivatives is very, very scary.
• 20:21
  All right, you take care and I'll see you.