The Fed Has Their Own Plan For Great Reset | Tom Luongo

We talk about from what's happening in local politics, how the Treasury and Federal fighting in the geopolitical picture with Russia, Ukraine, China get involved, the North Stream Pipeline and Germany happening all of that, how this all plays out, what happens with the bricks nations with gold, with bitcoin, and how the Fed inevitably wins and creates an entire new financial system in the United States. I'm joined by returning guests

everyone's favorite geopolitical strategies. I'm talking about Tom Luongo from The Gold, Goats and Guns Um. He's an amazing guest. I love having him on. It was a great conversation when I'm excited to share with you. Let's just go ahead and jump right in. All right, Tom, welcome back to the show. Uh longley and long anticipated. I'm ready to get into this. So thanks for coming by. Sure, thank you, Mark. I appreciate it. Yeah, we uh man, I threw it out on Twitter last night and we

got I don't know, tons and tons of comments. Everybody wants to hear what Tom has to say, so I do as well. So I'm excited to jump into this. So you know, um, at the time of this recording, we're a day before the mid term, so we're gonna try and stay away from that kind of stuff because, I mean, who knows what's going to happen. But I think, you know, if you look at things from a geopolitical, macro geopolitical lens, I think the mid terms are the

micro of the macro anyway. Right, It's almost like we're kind of controlling what we can control, but there's way bigger forces controlling the world anyway. Probably do you see it like that? Yeah, But I also see that these midterm elections are probably the most important in term elections that were had in the United States and of decades.

I mean honestly, I think this is one of those moments where if things work out the way I think they're gonna work out and with the way everybody expects them to work out, um, you know, there's gonna be a sea change, you know, at this moment in time, as you know, as you you and I've talked about this a little bit, and um when I talked about it in other forms that you know, if I'm correct about my argument that the FED is at war with the bigger you know, the bigger group of oligarchs trying

to you know, take over the world for lack of a better term, they run their their bond villans. Right, If I'm right about that, then what political changes happen here in the United States tomorrow or at the very least, are you know, pretended by tomorrow's election results are going to mark a sea change in the you know, the arc of I honestly, I do want to say the ark of history, but it's one more big p the foundation of of what the future is going to look like.

So I wouldn't discount this, even though I do expect at a certain level for the results to be uh compromised, And you know, it's gonna be a it's gonna be a mess, and the Democrats are gonna cheat and the law fair and all and all the things we expect, right, we expect all of that. But I think they the final outcome tomorrow is going to be so overwhelming in one paricko a direction that the message will have been sent clearly to the quote unquote powers that be what

I like to call the Davos crowd. That dude, you don't have the United States. You just don't have it. You're never going to get it, and you know that's the end of that, and you might as well stop. And of course they won't stop because there old arrogant European money and they can't help themselves and they don't recognize limits on their behavior. Um, and so we're headed towards something really ugly. I think beyond that, but I think we have to go through this process of just

keep telling them though. Yeah, you know, like scares me about that. You you mentioned the word arrogant. Is that the arrogance that they have? And so I mean, what's seen what's going on in Pennsylvania. I mean they're like, we'll put up an eggplant and watch what we can do. I mean, they're literally going against a TV personality, right whatever, a celebrity, a well known person typically that goes a

very long way. He's a doctor, right, he had his own show, like so that you would not only is he well known on TV, he's then trusted because he was on TV. He's a doctor, right, and he's losing to a guy that or whatever. It's a it's a close race whatever with a guy that can't even put a sentence together. And it's almost like ha ha, the arrogance. Back to that word, right, it's like watch well, yeah,

they ran the mushroom Joe Biden. Yeah, but Biden wasn't quite the much join at the time, not as bad as he. I mean he hit out in the basement. Maybe we didn't know, maybe we could, maybe we could just chock it up too. We didn't know as much then, but we know now. They they're just able to dry. They're just able to manage. Biden's med's well enough to get him coherent for the fifteen minutes that they can

stage management. But he's been this bad for years. So anyway, seeing the scene that they just they're running Federman anyway. I mean it just shows the arrogance, like half, we don't even need to try. We'll just put up anybody, We'll put up an egg plant, and we're just gonna

beat you anyway. So it's pretty scary. Um it is, okay, So um, going back to the the war, right, So, the way that I kind of see it as being a bitcoiner is that everybody says, yeah, but the but the but the bankers, essential bankers, the governments will never allow that to happen. They don't want to lose control over the money, which I would agree, right, It's gonna be the battle for the faith of humanity. That's the

way I framed it up. Um I did. I did a big show called titled that the Battle for the Faith of Humanity. But um, the way that you so, I agree, And so then then you're kind of extrapolate down down to well then, um, why does the FED want to give up control over money to the e c B? Or why do you commercial banks want to give up power over money to the Fed? The central banks? Or why does this any central bank when to give

it up to the I M F or whatever? Right right? Yeah, um, yeah, I mean that's basically the argument right, I mean, and this is not to say that the like, you know, again, you know, a bitcoin guy, I love I love bitcoin, I love the idea of all of this stuff. And I just think that, you know, there's a particular order of operations that has happened. We live in a fallen world.

We live in a world where you know, we're talking about people who are you know, turning, who are literal bond villains who think that they're gonna make us eat bugs, uh, live in pods and allows assistant suicide to be a better growth industry than oil exploration. And and that's just the way the We're just gonna have to accept that.

And they don't think that there's going to be any pushback from the other factions that have also gotten fat and happy on the system that's in currently in the process of failing, and that you know, everybody has their idea how they can get out of this, and you know, klash Bob has his idea, and Jerome Powell and Jamie Diamond and others have their ideas and they're gonna fight it out, and they're gonna fight it out to the death.

Guys like and then the British Crown has their ideas, and the Russians and the Chinese are saying, you know what, we don't have to play any of these games anymore. You guys fight it out amongst yourselves. Call us when you're done, you know, having a you know, having a having a cat fight in the backyard, you know, when somebody's finally got you know, no hair left because you pulled it all out, and you're all like, you know, bloody and battered. You know, hey, we stall boil, we

still have gas, we still have cheap Chinese crap. You know, we're willing to sell you. Hey, let's do the thing, you know, and uh we in the Global South, they're gonna go do o our thing. And you guys can you know, continue to play play your games. And I think it's very clear from the way Powell has I can't I can't stress enough just how clear Jerome Powell has been about what he's prepared to do with interest rates. And everybody keeps saying, oh, we gonna pick it on,

like it's like watching I've done this for years. I used to be a sports blogger and I used to follow hockey, and I used to remember everybody was always trying to parse whatever the GM was trying to say, when nine times out of the the tend the GM was just telling you, yeah, we're gonna trade this guy because he sucks. Okay, we're gonna do this because we suck.

And this is the way things are. And everybody's like doing you know, the thirteen ways from Sunday, trying to you know, interpret the GM speak or in this case, the diplo speak of what's going on here, like I got news for you. He's not talking at central banker ease. He's talking in plain language for a reason, interest rates until we break something. And the question is that no, the question that nobody wants to face. It is the

one that I've articulated. Daniel D. Martino Booth is articulated, and now other people are finally starting to realize, is that he's going to break the leverage off short dollar loan markets. What we not even know is what we called is the ear of dollar markets. And we've already gotten our big big shot across the out with the the UK pension system collapse that happened a couple of a couple of weeks ago, which brought which brought reci soon acted power and Liz Trust was thrown out, and

you know, there was a coup. There was a central bank coup in the UK over this for the purposes of bringing a betraying breaks it and bringing the UK back into the European Uh, your union fold. And the battle lines are really clearly drawn once you see this stuff, and it's clear that the United States is like they're they're just very powerful forces in the United States going no, we're not doing that and breakdown that euro thing for a minute. So Trust comes in. She's all fired up.

She's gonna balance the budgets, she's gonna drop the taxes, you know, all these different things and then the whole system. She's going to frap. Yes, she's gonna bring energy that they were going to bring oil production back online off the North Slope. Big deal. It was a big deal, big, big, big statement of British independence. And within forty five days she's forced to step down. Yep, it's gone no, that's no. Yeah, But I mean that's I mean, so it's easy to

look at it from that lens. It's also maybe another way to look at it is that, um, there is no way back to austerity without massive amounts of pain, and so she was trying to do some sort of austerity basically trying to get the balanced budget, you know, bring taxes down, get the economy going again, bring energy back, which is gonna be a very painful process and nobody's

gonna be willing to go through that pain. So could it have been that she was fired up to really affect real positive change but the pain wasn't able to be endured, or you think it was actually more of the conspiracy. No, no, this is very clearly that. Okay, So remember Mark that I have said this many I've said this before, and I've called the German austerity and it's the kind that the I m F always um imparts on the people that they want to colonize and

take over. And what they do is they raise taxes and they raise regulations and they cut spending. Okay, now, the cut spending part is the one that you know, we Australia libertarians, Yeah, cut spending government spending, his government waste is terrible. But raising taxes at the same time, and then we expect that GDP is not going to continue to contract like it's always about protecting the bondholders. It's always about protecting the bond markets and the credit

rating of the country. That's more important than the lives and welfare of the people. Do you see that? Do you see the messaging here? It's always the same story. What Trust was going to do was going to be.

It's similar to what Donald Trump did and in many ways um actually did do, which is, yeah, he raised some spending and he cut taxes, and he was cutting regulations dramatically across multiple vectors as much as he was allowed to, which would free up capital and make the capital that's deployed, you know, more efficient by getting rid of a lot of taxes on shoring a lot of offshore capital that was sitting in bank accounts in Ireland and you know, tax havens around other tax havens around

the world, and bring that money back and allow for a reinvestment cycle. Well at the same time, yeah, we're gonna have to spend some money that we don't have. But yeah, so, like, I'm not crazy about that plan. I think that that Trump was Trump's plan is fatally flawed.

But by the same token, you know, he's a Keynesian in that respect, he's a debt guy, and you know, Trust was running basically the same plan, and for the UK guilt market to react the way it did was clearly an operation from outside forces to bring her down, clearly in operation, because nothing she proposed was that catastrophic. I'm sorry. And anybody who believes that, you know, I'm sorry, like you know, still walks around with their mask on

outside like I'm sorry. That's how that's done. What happened was the idea that there's one last the idea that the British pound would drop nine in two days over this is just ludicrous. It's just ludicrous. So um yeah, obviously that you know, the pound dropped, the yields went up, the pensioners were over levered, they couldn't cover, they couldn't cover, right,

their margin calls. Um. But you're saying for the pound to drop that far that fast, there was probably some outside manipulation, sort of like when George Soros got famously rich in a day. Right, Oh you don't think Soros was not involved in this? Like, as far as I'm concerned, is all they had to do was dropped twenty to fifty million dollars in the UK CDs market, and you know, the UK guilt CDs market and blow the thing up, which is kind of what they did, you know, I

mean that's how they always do. It's like CDs IS or you know, credit, the false swaps, their their fictions. Dude, I'm sorry, Like they're not. They're not leading indicators of anything other than mouthfeasance by people with way too much money on their hands that they got, you know, from for free from the central banks to screw with markets and then right headline. So you don't think the CDs is needed, So you don't think that the CDs is a more free market that's a better indication of what's

going on. Absolutely not, absolutely not. They are the most manipulated markets in the world. They're more manipulated than gold. I'm sorry. The credit w sound great in theory, they're not used that way. Sure, if we have, if we if we didn't have completely captured markets, and we didn't have completely central bank and you know Ald Gark run markets, sure CDs IS would be a fine you know, market innovation. But please, like you know, I'm sorry, I just don't.

I've seen this too many I've seen this game too many times. I don't buy it. So going back to Joan Powell in the last f f O MC meeting. That's exactly what he said, is that we're well, the danger is not doing The danger isn't The danger is doing too little. Uh, we'd rather go too far. We'd rather break things because we have the tools to put things back together again, right, we can put we can put Humpty Dumpty back together again. So he's willing to go too far. I mean, he he says he wants

to go too far and break it. Um, break it, whatever it being most to most times we think of breaking it being the liquidity in the in the financial system. Um, you're talking to break inflation. Well, people think it's I think people think, well, people think he says, I'm gonna break inflation, and then you know, the more savvy among us go, yeah, but that's you're not breaking inflation. You're not breaking supply side inflation problems with the man side tools.

You just ain't doing it right. Yeah, And I mean, I think he started to pick a fight that he realized maybe he can't win, which is trying to basically bring inflation down which is being caused by energy prices, and OPEC just says, well, we'll just cut production. You want to manipulate the prices down. We'll just cut production. We'll go a lot longer than you can. Like, you're

not gonna win that war. Well, that's all Jenny Ellen. Jenny, Look, I think the Feds that were with the Treasury, I think I think Biden works for I think the Biden administration works for Domas. I think Jenny Yellen is a globalist who who her entire time has had the Chairman of the Federal Reserve. Along with Ben BERNACKI worked for work for European colonial powers to make sure that the United States monetary policy was subordinate to them. These are

the guys that. Okay, so I've I've talked about SOFUR and the move in the past about the United States moving off of Library for debt debt indexing to SOFA, the secured overnif funding right, which by the way, is fully in effect now as of two all debt in the United States is is issued index to SOFA, and none of it is index of relative to Liebrary. It hasn't all been switched over, but all new debt is

issued to that right. It has. I mean they took they took their time, and they rolled this out over almost five years, they started rolling this forward. They started rolling people into sofa. But here's the gig. Sofur was designed by the Federal Reserve back in two thousand and eight. The original white papers on sofa we're presented to the f o MC in two thousand seven before the financial crisis. Like, they knew what was coming, they knew what they want

it to do. Greenspan wanted to do this like and then Obama comes into office, him Geitner, operann Ky and then subsequently yelling and all the rest. They just put it on the back of burner. They didn't do a thing with it for ten years. We got instead, we got shipped like Dodd Frank and and uh, the the CEO uh you know, all the all the stupid stuff that we got. We got the yeah, everybody complaining about

class tego. I can never remember the name of the bill that where the CEOs are now responsible for their um uh for their their income statements with that one

um the names escaping me. Now, all that stupid stuff is opposed to getting a real When if anybody looked at the two you know, it looked at previous financial crises, all right, there was always a if the fed raisers interest rates, it's going to break something overseas, and then it always then try is late over here because we have globalized markets well in the you know, once Trump was put into power, and once um Powell was made the chairman of the Federal Reserve and John Williams was

made the head of the New York Fed, SOFUR was all of a sudden dusted off and they started they started moving it through almost immediately, and then you know, with a four year four and a half year rollout period in order to get everybody you know, in order to test it and make it, make sure it worked

and everything else. And then you know, once that was in place, then the decoupling physical decoupling of American and US banks started, which is where it brings us to the REBO crisis, to where JP Morgan star of the market of US treasuries because they refused to reap repo um uh European sovereign debt okay, take European sovereignists collateral for REBO contracts that you know, the euro dollar system then started to employ. Jeff Snyder went over all this

for years, telling everybody what was going to happen. He was right. He just was wrong about the fact that Sofur woke that link and now this time we can do the same. There ain't gonna be a eurodollar five like he thinks there's gonna be. There was the first four times we had an aversion of the eurodollar futures curve. Like,

I'm sorry, he's wrong. We can see it happening. He's wrong because the people who are screaming today about the FED raising interest rates are all the people who who are most vulnerable to the FED raising interest rates in ain't the New York banks. They were keeping their mouth shut.

Has anybody have you seen anybody at JP Morgan or Golden Sacks or City Group or Wells and Wells, the biggest mortgage under in the world, is not complaining about the FED um pushing mortgage rates above seven Yeah, well, yeah, that's interesting. Well silence on this is definite. And Jamie Diamond's only talking about energy. He's not talking about rates, He's not talking about any of that, none of that stuff. What he's talking about is exactly when you what what

policy is going to change? You know, Biden, Biden is gonna you know, he came out the other day and so there's not gonna be any new any new oil and gas or cold drilling, you know, while he's in office. Or Okay, we'll take you to your word. That means we're gonna get ridy of that, dude. It depending on

what happens to Marrows. What tomorrow is so important? Like if the Republicans take seventy seats and five in the House and five to six seats in the Senate and thirty five state legislators and thirty five governorships, do you think there's a Democrat in the world that's up for grabs, that's up for re election in is gonna listen to a word Chuck Schumer has to say, I got Mark, I got news for you. I'm laying three to one.

I'm only in one to not only odds that Schumer gets beat tomorrow, Schumer in New York because Kathy Hostel is gonna lose, and they lost. They lost. They had the vote harvest three seats in western New York in to really maintain their their majority in the House, which,

by the way, everybody forgets about. But whiles while everybody was worried about what was going to happen in January six, and whether Trump was gonna, you know, I don't know, lead an insurrection against against the Biden's inauguration and the and the electoral College and all this stuff. These people were back there vote harvesting like three seats in Rochester, Buffalo and one other seat to get these people over the line when they had lost on election by four points.

So don't kid yourself. The whole thing was stage managed, and and and and and uh so tomorrow the comment with seven, do you think anybody is gonna listen to what thing Jack Schimer says? If he squeaks by tomorrow? Even are you kidding me this? They'll be calling for his head this morning. Two hours ago, Elon Musk tweeted out to independent minded voters, shared power curbs the worst

excesses of both parties. Therefore, I recommend voting for a Republican Congress, I mean the president of the Democratic Yeah, no, I like you? When When when when a former progressive like Tulsea Gabbard sounds more based than ninety percent of the libertarians? Like I see Twitter? Anymore? You know that there's a massive political alignment. Realignment, um, I mean the going back to the FED. You know, tightening the screws, trying to break the zero dollar markets, you know, trying

to defend the dollar, etcetera, etcetera. Um, you just mentioned briefly the war between the Fed and the Treasury. So now Janet Yellen saying, well, if you're not gonna help us, which, by the way, all the politicians are now jumping into the Fed. Hey, you're going too fast, too far. You got the u N dumping into the u n's like, hey, stop, you're going too fast, too far. Everybody's jumping in. And now the Treasury Janet Yellen is like, well, we'll just

start buying. We'll just start buying the treasuries again. Then we'll just take we'll just do try and do yield curve control through the U. S. Treasury Department and and run around the Fed. Yeah, okay, good luck with that. Janet. You've got four hundred billion dollars in the two and a one point five trillion dollar deficit or whatever the number is. Have fun. Yeah, like, next year you're gonna

have a massive deficit. You you've had the only reason she can talk that way now is because she just had the the big just um tax surplus and and you know, taxing, uh not increase your over your taxing um collections increase in the history history because of inflation, that's going to happen extra gains and because of all that, and that's certainly not going to happen. Best best case scenario, we just I mean, we already have a drop in the market. So best case scenario, we have a twenty drop.

It holds here. Um that alone is going to crush tax receipts, right, I think, yeah, So they have to start cutting spending like you wouldn't believe. And now the Fed is losing money, right, So the Fed isn't gonna be able to pay the treasury. So they're gonna lose hundreds of billions of dollars on that as well. I mean it's it's well, they're gonna lose that. I think

they're gonna lose forty billion dollars they made. I mean, they've always remitted somewhere between fifty and fifty billion dollars a year. I think this last quarter they were they were going to be short fifteen billion dollars. Like, it's not all I mean, it's not a lot. I'm sorry. And the in the grand scheme of things that I I know that Judy Shelton makes a big deal about this,

and I'm not disagreeing with her. Politically, it's gonna look bad for the politically, the Democrats are gonna make hey about this. Don't don't kid yourself. From a political perspective, it's a lot of money. From a budgetary perspective, it's not a lot of money. They can just stop. They can just stop sending three billion dollars a month to Ukraine. Yeah, but they don't want to do that. Let's let's talk about that. Let's let's look at the vapors the minute

I mentioned let's let's let's jump up to that level now. So, and I think this is uh, you know, I try to think a little bit longer term, right, I mean, it's not not micromanagers. If we think longer term, I mean, we can see the whole world is changing rapidly. I mean, certainly, certainly the threat is moving from this multipolar homogeney to uh you know or sorry, a singular polar to a multipolar world. Uh. And it seems that we have this rush of Ukraine thing kind of at the center of this.

I know you've been talking about this a lot. We've had conversations about it. Um. Maybe it's a war of globalism, but it's like really accelerating. Um to your point, right, We're sending all this money over there, which is of course going into all types of different people pockets. But then we have we have this acceleration which you know,

the nord Stream pipeline got bombed. News on the wires coming out that now everybody in the intelligence community supposedly knows who did it, Uh, NATO, we'll call it that, Alex Craner and I said three days afterwards, was the Brits and the polls. I mean, we've all grown up. We've all grown up watching murder mysteries and detective shows on TV. Like it's not hard, Like, Okay, who are the players? What are the motives? I've got? Motive means

an opportunity, right, um. And now you you know, and and and if you look back through a long geopolitical lens, it seems like the strategy has always been to keep Germany away from Russia. Right in Germany, if Germany's manufacturing can get the cheap, cheap commodity inputs from Russia, like that's a good match, right, Um, Yeah, it is a

good match. And it's clear. It's clear that the French and the and the British have always opposed, you know, traditionally always opposed to Germans, and the and the Russians are getting together. Um. American foreign policy is just downstream of British foreign policy because freaking Brits have infiltrated pretty much every level of our freaking government. UM. Our special relationship with the Brits is, you know, mostly they tell us what to do and we run around like Rambo

without a drop strap and get it drawing. Um. And if not, then they meme it into existence and false flaget into existence. But I'm getting I'm getting done. I'm getting tired of this. And I think what happened with Liz Trust and everything else and and Boris Johnson, it's very clear like who actually, you know, quote unquote wears

the pants and this uh in this relationship. Now that being said, UM, I think the situation in Ukraine and Russia bothers me because the Brits have motive means an opportunity. Why what's there? What's their motive? Not just because they can they have British intelligence. They all think they're James Bond blah bla blah blah. That's that's that's cartoon bird. The real thing here is that the europe and the

European Union and the old European banking system. What I've already talked about that leveraged loan offshore dollar minonds, okay, which is the source of where a lot of their power comes from within their banking system and their ability to buy, you know, to manipulate currencies by favors, collect compromat and all the rest of it. That what they do,

move elections, All of this stuff comes from that. Now, if the FED is taking the punch pole away and saying, look, we're gonna shrink our balance sheet, we're gonna raise interest rates, and there's nothing you can do about it because you can't get any spending through Congress to I don't know, build back Better or new infrastructure or any of the

other stuff. Because, as Daniel de Martino Booth pointed out multiple times, both versions of those bills that finally got past, the Inflation Reduction Act, which is Built Back Better read, it's all kind of tax credits. It's classic stimulus. It's not U b I, it's not we're gonna print a ton of money and hand it out the people. It's more the hey, we're gonna give you a tax incentive to you know, fix a road or do this, or build a bridge or you know, get a refinery back online. Sorry,

never mind, not not build together. Never never do that. Um. But it's that kind of thing. So if people don't use it, then it's not going to show up in the you know, then the Treasury is not gonna have to write the check. It's very different. It's a passive kind of of stimulus. Okay, So if the if the States are the you know, the agencies don't engage in this stuff, the people don't request the money, then the

money doesn't get spent. All right, big difference between that and what Yelling and Biden wanted, which was six and a half trillion dollars. With the spending that the Fed would be forced to monetize a lot of cares act. So what's the replacement for that. If they can't get that done, well, it's obviously worth spending. So that's why the Brits bombed the North Gring pipeline. That's why they

helped the Ukrainians bomb the kirt straight Bridge. That's why the attack on Sebastopol last week and the whole grain chord using the grain, weaponizing the grain corridor and humanitarian aid and everything else. Oh, it's not like the Brits have ever, you know, been involved in a false flag incident that you know killed civilians, Like I don't know the Lusitania, Like, so it's now the Graanitania, Like that's

what we're dealing with now. Like you have to look at the the attack on Sebastopol is very similar to the Lusitania, a mechanism by which to try and get the United States and the rest of the world angry with Putin for you know, targeting civilians and humanitarian aid to the world. And at the same time, of course Putin's running around going, look, we have five tons of grain we're willing to ship out of you know, out

of the c of A's off for free. We'll give it to you people, like we'll show you aren't in a run the up and up. But we're not going to allow Ukraine to import weapons from the West to then throw it's abassible. We're not going to do that because we're not stupid and we're not suicidal, and you can call us nasty names all you want, and we don't care. So the thing that worries me is that they're trying to mean us into uh an escalation that

we can't come back from. That will then give Congress, the new Congress, the quote unquote warhawk Republicans, the cover to spend to go into a war footing to spend a whole lot of money. That will the force federally forced to monetize to reverse qi QT go back to QI, go back to the zero bound, and and all the rest of it. We're already seeing that in Europe they're doing increased military spending, in Germany they're doing increased they're

talking about increased military respecting all across Europe. And it's really nothing more than a means by which to print a bunch of euros and then stuff the banks full of reserves, while the FED is raising interest rates and draining the markets. And you have to look at it that way. I heard from multiple people just like just see if I can try and put a fine point on this market before you. Is that during COVID right, a lot of the COVID relief funds that were sent

out the hospitals, or that were reserved for hospitals. Right, we're not spent. And we heard all these hard these stories of well, you know, the hospitals got this money, but the banks didn't want the money back. Well, no, of course, somebody. The banks didn't want the money back because they wanted that money to sit on their balance sheet as reserves, because they were desperate for the reserves.

They didn't want the money back. What they wanted was the to keep their balance sheets for imploding, so the credit markets wouldn't implode, and credit spreads wouldn't blow out, an interest rate you know, um swaps wouldn't blow out, and all the rest of it. The currencies wouldn't collapse. And that's what this was all about. And the war in Ukraine is a is a similar type of operation. Okay, and you have to and once you see it that way, you can. Yeah, that's that's what I was trying to

ask about. So, uh, if they can push the war and then they have wartime spending for more weapons, etcetera, then that will somehow then force the Fed to monetize that. Well they have to because they're gonna spend all that money the Feds. I mean, they'll put it out on the market, but you know there's no appetite in the market for six and a half trillion dollars with the U S truaguy and he's gonna buy. And and is

there some mandate that the FED has to buy the treasuries? Yeah, the Fed has to buy if the Treasury spends the money. The primary dealers have to have to have to buy the debt, have to buy what the market doesn't buy. I e. They have that's the definition of a primary dealer. And then what do they do. They turn right around, they flip the treasuries over to the FED. Got it?

And the FED has to buy them. So the FED feed is for the FED forced to ease to take on that debt, the force the FED is forced to eat spending that they don't want to eat. And that's what this is going. That's what this is all about. Jenny Yellen playing games when saying that she's going to do yield curve control through the US Treasury and cap the price of oil Russian oil are um. I didn't know Johnny Ellen was that stupid, But she's think that

she could cap the price of Russian oil. Yeah, I mean both of those things that she can that she can do yield curve control for any length of time against the wishes of the Federal Reserve and the US banking system, and and do that, you know without you know, without the tax base of supportive for very long. She's got about four hundred billion dollars in US tresury um and you know, and that's gonna get eaten up over the It's gonna get eaten up in no time flat.

And also understand that the capping of the Russian the Russian oil price, how are they going to actually do that? Well, they're gonna do that by subsidizing it, subsidizing, offsetting. Uh, well, they're gonna how are they going to how are they do that through subsidizing? Well, I mean, like think of it this way, like it's like it's not even that. It's like they're gonna cap the price of Russian oil. That's it's actually a little bit. What they're gonna do

is they're gonna havep the price of electricity domestically by subsidizing. Sorry, they're gonna try and cap the price of Russian oil, but they're not gonna be able to so they're just gonna have to buy third party reblended fuel and pay the price. Right, But what they'll do what Germany is already talking about doing, aside from a nine percent windfall profit tax on on all energy profits, not above a

certain level, but all energy profits. So they've been effectively nationalized, what they're also want to do is capped the price of electricity for the consumer. How are they gonna do that, Well, they're still buying electricity from the market at whatever the market rate is. They still they keep the electricity producers from going bankrupt if you know, you know they if there, if it's costing them twenty cents of kill a one hour, I'm just picking numbers out of my out of my head.

I'm not these are not real. But they cost twenty cents of kill a one hour to produce electricity. But they have the price at thirteen, Well, then that seven cents has to be made up by what the federal treasury or the federal government's gonna have to pay it. Who's gonna who's going to print those euros? Clearly the bundes Bank, what is that doing again? Stopping reserves into the European banking and they're already doing it in the UK, right,

They've already already done that, but they are there. That was part of Trust's plan was Okay, I'm gonna do that, but I'm also going to alleviate the supply shortage by allowing oil and gas exploration and investment into oil and gas exploration back into the UK at the same time.

So that's the question, Tom, Like, it seems so obvious, um that the however you want to frame this up the euro Davis and ECB group or even the FED, if they're trying to fight inflation, if there it's really it's a supply side issue, as you've already made the case, which I agree, supply side issue. On the oil, they're trying to cap the price of oil, they're trying to beg or pressure OPEC to pump out more, all these things.

If whoever really wanted to win that war, the obvious way would be to increase our own supply of oil and push the price down to bucks and they could bankrupt Russia and no pack that way. Yeah, yeah, of course why not that. If we're not doing that, then you have to ask yourself why it's not asking you why not clear, because they want to actually crash the entire system and they want us to starve, and they

want to and they wanted to. They want to create the conditions for a justified defaulting on all of the sovereign debt. That's what they want. The Great George Soros has made it abundantly clear, and then he put those words into rieschi soon Act's mouth the other day. We want to default on the debt. There's too much of it,

we can't pay it back. We issue perpetual bonds, consoles and then roll the the fiscal and political UH control up into the ECB and the European Commission and do away with NASH well UH national governments in national central banks. That's what they want to do. Choice being put in front of German middle class right now is that you can either starve and freeze to death, or you can be permanently surveilled in a Minority Reports style dystopia. Your

choice and roll out the CBDC. It's like the perfect introduction of that. Well, that's that's how that's that's CBDCs are how they're going to default and still have a currency. That's the minority. That's the pillar of the Minority Report style social credit system in Dystopia. Of course, the thing that I don't understand about the CBDCs though, is that obviously it's just another form of fiat. I mean, already

eighty percent of transactions are digital anyway. So whatever, it's a digital transaction and still a digital transaction, it's still a fiat currency. It's still whatever, right, And so like whenever we see currencies blow up around the world, which happens quite often, like in Zimbabwe has happened, you know, multiple times, they always have to repeg it back to something. Advice,

they'd repack it back to the dollar. And so with the monetary theory of value or whatever the Austrian lynsays, I would say, you would have to pay it back to gold or something that has value. So they pay it back to the dollar. But if everything blows up in the dollar blows up, how do they reinstitute value back into a fiat currency, or more importantly, how do they put trust back into a FIA currency without pegging. I'm asking the same question. That's like, I feel like

these guys are the underpants. No crash the system dot dot dot issue central bank digital currency that no one wants dot dot dot profit Like I don't get it, Like I think it's a monumentally stupid plan. I do. But you know, by getting rid of they're gonna say, but by we don't have we have a clean balance sheet now, we don't have any debt. You can invest in US now, Like why would I invest in you? You just you just stole trillion twelve trillion dollars with

the fourteen trillion dollars of the wealth. Really really like okay, you really think that's what's gonna happen here. But the reason, the way they think they're gonna be able to pull this off is because they have um bankrupted the Russians in a war, right and gotten them to heal, and they've destroyed the United States. Then of course, you know, everything is so terrible that they come out smelling like

the first ones to default. If they're like the first banks to to to go through bankruptcy during a financial crisis, right, they're usually the first ones to they're the first ones to go bankrupt, and they're usually the first ones to come back because they've already gone through the restructuring and

everything else. That's what they're thinking they're just thinking in those kind of quote unquote I hate to say this when I'm talking about communists here, but creative destruction, uh well, controlled destruction is m for them, right, trying to get the building to fall into their lap, right, um, right now, It's always about It's always about it's always about selling you, you know, I've always about selling you freedom by um by you know, putting a new surrounding back and a

shock coller, you know, and a shot and an electric shock of your grass. Like it's not hard here, it's the same thing. This whole thing is one big skin, this whole this whole thing that they've turned the entire world into. It's just one big skinner box. Now we have the we're all just addicted to, you know, the causing each other pain. We have the Rise of the Bricks Nations, which UM, on one hand, seems like a credible threat. We have more than half the people alive

in the world today joining that UM. They want to break the l B M A. They produce over sixty percent of the gold in the world, where the UK produces none UM, and so it seems like it could be a credible threat there. However, the US has the consumers,

and so without consumers that's difficult. But if they can break Russia and now they've knocked China back to the dark ages, China's stuck importing energy and food and everything basically for that matter, maybe they think, well, if we can get Russia knocked down and we can get China cornered where they they are forced to play ball, then we kind of break we break bricks and then we kind of get that under control. Well, they clearly want

to break the bricks up. They obviously just did so, you know, with a major piece of it in Brazil, right, Um, they're clearly would be right. They clearly want you know, and they just realized that. They just think that they can break Brazil, Russia, and China then the swing states like India, because bricks has two eyes made Iran and India, so of course we're pressuring Iran at the same time. The problem is that the bricks also have two s is because there's another there's a new one now in

Saudi Arabia. Right, So they've got a lot of work to do here because everybody there is um not on board with this. And you know, the big question now is you know, can the Russians rejigger their their trade and there and their military and there in their internal structure and such a way that they can resist kind of ad infinitem right. And I don't know that that's the case. I, you know, I'd like to believe that it is. I'm you know, I I'd like to believe

that Putin has this mostly under control. He's not acting like he doesn't, you know. And um, but you know these are these are titanic forces here, and everybody has to play their hand perfectly to get out of it alive. Okay, yes, yes, and no, but also you've also framed up a plan that doesn't seem like it will work. So um, Nietzsche says that that was just falling. Shall yasso push? Like the global sovereign debt bubble is bursting. Uh, the dollar

bubble is bursting, and every other sovereign is bursting. The plan that they seem to have doesn't seem to work. How do you go back to a fiat currency? Probably doesn't work. How do you trust somebody who just stole the global wealth? And and like so like, uh, everyone has to play this. This is why, this is why the feed is raising interest rates, aggress sibilate to try and um get back lost credibility and to get rid of the FED put and get everybody back on the

risk assessment. One of the interesting things about SOFA, and I haven't really had a chance to write a piece about this, but I talked about it a little bit here and there, is that when you really start to look at SOFA as a as a market driven collateralized um rate right contract, Right, it's got futures market and and you know, we now have a sofar futures curve for um UH anticipating where it's going to be in ninety days and what people are gonna help people are

gonna need, domestic money markets and all the rest of it. And this is all good. The interesting part about this is that the endgame or SOFUR domestically, after it breaks library or after it breaks the ear dollar system, is that we can have a re regionalization of interest rates

in the United States. Remember that the FED or Reserve is originally conceived of as twelve regional banks City FED, the al NFD, the Dallas FED, San Francisco FAD, the New York Fed, blah blah of Minneapolis blah, blah blah blah, right a hundred years ago, hundred hundred five years ago, years ago. This was necessary because of the rate at which you know, information transmitted through the economy, because you know,

we were still you know, we are not cars. Cars were just we're not even a thing yet, right, So um, having regional interest rates made sense and for the you know, so that the rate of the risk assessment rate, the foundational the rate in San Francisco should be different than it is in New York. Well, with a market driven rate like so far, you can actually have now a re regionalization of interest rates because you're gonna just have banks bidding locally for money markets and we're gonna get

away from it. And then we can actually get away

from a monolo thick FED funds rate. The Fed can just you know, and there's there's a there's a thing happening here that I think is you know, I mean really looking ahead here and now we're talking about looking five twelve years ahead here, and obviously we may not even have an election, but I want you to understand that the model, you can see, the foundations are in place for a move back to a monetary system, which created the United States that that we know it today,

right that when we had the Federal Reserve, which was you know, this was a coup against the original concept of the United States. Don't get me wrong, I hate the Federal Reserve. I'm not making I'm not shilling for it here. I would love for us to go onto some kind of you know, UM reserve, commodity money standard,

real banking, and all the rest of it. But a market driven rate with the reregionalization of the FED funds rate to a set to put risk assessment back in the hands of private banks is a hell of lot better then the system we have now where we have one monolithic rate basically set by the New York Fed UM and everybody else has to eat it. And that's actually a crossed all sorts of internal problems here in

the United States. In the same way that having a monolithic um EC beef funds rate deposit rate has advantaged Germany at the expensive say Italy or Spain or Greece or you know the other the quote unquote pigs, what's the same problem here in the United States having a monolithic rate and um in the United States advantaged California at the expense of you know, most of the South

for decades, in the Midwest for decades. So it's the same problem written large and this is why and so this is the end of the Californization of the United States when you really start start to like think through how this is gonna work and why everybody why why the breakup of the European Union is effect I think inevitable because we need to have different interest rates across the EU space in order to properly assess risk and

and labor efficiency. Well, the same thing should be in the United States as well, but with a market driven rate like SOFUR, we could actually do that because things can trade at a disc things can trade in Minneapolis at a discount or I premium. This SOF based on the demand for money, right, Whereas it's a lot harder for that to happen with a monolithic rate because it's not a market driven rate that's coming from the Federal Reserve.

Whereas SOFA is actually determined by the market. And the problem with it can be once the once the entirety of the of the market, once the entirety of the market is working on that right. This is something that I've been spitballing with some people about for a couple of a couple of weeks now, but I just it's the first time I've actually actually tried to like put some some meat on those bones. And again, I'm not saying that I'm right about this, but it's something that

we really want to start considering. And of course, because if that's the case, and those are the forces that play here in the United States to ensure that the reindustrialization of the United States that happens with the last dollar bull market that we're going to have, which is not going to buy a way to be a bull market against golden bitcoin, It's gonna be a bullmarket against every other freaking crappy seat OC currency. It's the one

we're living through right now. And then once people really start getting real and we're starting to see that the FED rate seventy basis points the other day and gold, you know, initially traded down and now is back up in the sixteen eighties, and it's threatening sev dred you know, I think a weekly closing price on gold about seventeen thirty five, and we're off to the races back to hundred. The same thing with bitcoin. If we got a weekly

closed about twenty two thousand. Watch out, baby, We're gonna be back at thirty before you even though it, because it's gonna pretend that you have people finally realizing that Europe has no way of of surviving this without forcing the FED to pivot and without forcing the FED put back onto the global market. And I just don't think

that enough people believe that that the case yet. I just don't think we've gotten you know, enough people to the to the acceptance phase of the kuber Ross model about five stages of grief model about the end of the death of the FED POOT. I think a lot of people are still in denial and so and a lot of people clearly are angry and are bargaining. So you don't think the FED has one more put in him? I mean it seems like you do. That's why you said,

or no, you think Golden Big Plan go. I think the FED wants to do away with the idea of the of the general FED put for the global market. I'm not saying that. I don't think that at some point the FED may not pivot or you know they you know again, markets moving waves, right, policies moving waves. We could have the FED go to five and a half percent, break Europe, you know, see the dollar index go to one forty, back off, go back to three. Let that and then let that run for a while.

That would be okay, I mean whatever, that would be fine. Like that would be normal minditary policy. And and then once and once we've internalized all that, we've worked out some of the the damage from those things, then if we need to move it back up to five or six, we do something we should never ever go back to the zero bound. Yeah, that's what I think. It seems like it's probably the most probable outcome here, you know,

financial repression. So if they can bring the rates up to five percent, get them some room, drop it back down to three pin or maybe four, you know, maybe four is the new two or something. Hey or uh and then uh, you know, get up to five, get some room, bring it back down to four, keep the bond yields low, and let let inflation kind of run a little hot for a while, and maybe you know,

try to bring GDP back down that way. Um, it seems like it might be a probable option or outcome, I should say, Um, jumping gears a little bit uh you mentioned you mentioned bitcoin, um, and so you know the final stage of every empire is capital controls. All right, we have to force you to stay in the party.

If I'm having a party here at my office and hey, you're too noisy, get out, and I don't like you, get out, and I kick everybody out, eventually I have no control over anybody because no one's at my party and they've started their own party over there. And so when you look at like the fall of the USS, al right, everyone's kind of left and started these parallel markets and economies and then they had no more control.

And so, um, if if people exit, which is why you hear people like Christine Leguard talking about having to close the exits, not just with taxes but also with currencies as well. Um, if we get enough people getting outside of the system, then they lose the power of that system. Now there hasn't really been a good option, but it seems like as the world is escalating very rapidly right now, especially coming forefront, which you know, two

people all across the world, um, they understand. You know, we have about three billion people living under strict authoritarian regimes with double digit inflation, or greater, and so for them, you don't have to explain to them why they might need a different way to store money than this fiat currency they have. In the United States a little bit harder, but in Canada we found front and center. Hey, we'll just take your money. Town we want obviously, Russia we

frozer fex reserves. And so it's starting to come more and more and more and more and um, it seems like as the world continues to break apart, which is my thesis, um, you know, probably move into this multipolar world, how does the world trust each other for common trade and good And it seems like it doesn't really work. And it's almost like we would need this decentralized ledger that nobody could control in order to bring some trust back into the world. Again, I agree, I agree. I

just think that's this thing. I know that some people that when you asked last night, which is you know what you wanted to talk with me about now, a lot of people said, you know, hey, Tom, um, how do you justify gold in a world with bitcoin? I'm like, well, because a lot of people don't trust pickol and a lot of people still trust gold. It's just the way it is. And I think that, um, I'm not. I don't know that gold is going to survive as a

global foundational asset beyond this cycle of history. Right beyond beyond this cycle, this might be the like the last one, the last um war cycle forth turning whatever you want to call it. Sovereign debt crisis saw the end of the silver of silver as a monetary medal. Right, All the central banks around the world divested the largest hordes of silver ever seen by humanity over the last seventy five years. Nobody has any silver left in their reserves.

Was that? Was that a technology thing though, right, because we needed silver for lower for lower denominations. But once we had paper currencies, we didn't need silver anymore. So then we just kept actually in technology caught up to the fact that silver is one of the best you know, electrical conductors in the on the periodic cable and bab bla, A lot of the industrial demand for silver rise and the it just like there's like there's things we can

do with these medals. Remember chemists as well, right, and and you know with a and for a while I worked you know in metallurgy, UM and encodings and and so it's given a lot of thought to this stuff. And like at some point, you know, it's a technology thing. Money is a technology. But but the way I meant like and the way I meant in technology is like gold was good for bigger denominations, silver was good for

smaller denomination once week. And now we're when we when we when we got paper gold certificates, we didn't need the smaller denominations anymore. So what happened is basically, I mean, we had silver, we had service certificates in the United States all the way up you know, I was born,

and I think about sixty eight. You can still turn him in up until you know, I know, I know people who turned him into the federal demonetized or something like that, right, yeah, I mean, but the point being is that silver eventually was no longer even held as a reserve asset to back the paper currency. Right, and at some point maybe we'll get to the point where gold is no longer used as a reserve asset. I don't know. I'm not going to live to see this day.

Like we're gonna see that, We're gonna see the remond, We're gonna see treasury old actually re monetize in a way that is a better way of recapitalizing the central bank balance sheet than um default, which is what Soros wants to do. Soros wants to keep all the wealth that he's stolen, right, and then just have everybody default on the fiat debt, when the better thing to do is to um recapitalize the entire system using the treasury gold,

but having to use it at a much higher price. Yeah, like and and so, and you know, again, this is not an original idea. I've talked about this a little bit. But the you know, the idea of being is that you know, you can recapitalize the United States. You've got three point five tons of gold sitting on the fat

balance sheet. That's cents and ounced mark mark to say, not mark the market, but remember the Remember the World Gold Council, you know, puts that number out every quarter telling you what that is as a percentage in mark the market terms of US as actual reserves. News for you, of the total U reserves of the of the U S banking system, of the US banking system, now is that of a very small pile of of reserves on a massive pile of dollars. You bet your sweet bippy

it is. But you want to recapitalize trust, it's easy. Yeah, he was your fifty or a hundred year bond with a five percent gold resemption clause at the end of the bond. Well, we know that central banks are buying more gold than any time in since nineteen seventy one, so there's certainly more than more than fifty last year

was of total demand. Gold demand this year is going to be more than that, probably somewhere around seventeen or eighteen the And we have to wait for the Q four numbers because a lot of the smaller buyers of gold from the central banks like to just make one big purchase at the end of the year Hungary for example, last year, Japan a couple of years ago, right, um, And you know there are only there are only a few like Serbian Newsbekistan and Kazakhstan and others who just

buy every month like it's you know, it's just part of their their buying program. By the way, it was, Bekistan is buying like eight point seven tons of gold a month. It's Bekistan. It's a lot of gold, eight point seven tons of gold. Why would they keep their money in the financial system. If freshly gets their accounts frozen, that what what hope do they have? Right? Right? And why?

And and and and that's a number, by the way, where we don't know what the Russians have been buying this year because the Russians aren't telling anybody and needed us China, yeah, oh, the Chinese and the Russians. And seeing the thing about about a gold redemption clause for a just to make sure everybody understands that the mechanics of this, and it's just I have to have to run in a couple of minutes because they've got another, got another thing that I've got somebody waiting for me.

But to remember this you can issue. This is why I say that at some point the FED is gonna want the price of gold to rise. Oh, by the way, I also think at some point that FED is gonna want the price of bitcoin the rise, because I also see bitcoin entering into the global reserve system as well. I think the Fed's gonna wind up putting bitcoin and its balance sheet in ten years. Baker Noodle, do you think you're gonna get rid of Do you think you're gonna get rid of the Fed, No, boys, I don't

think that's gonna happen. But I can see the FED buying or at least part of the US banking system being backed by bitcoin, already seeing it. So there's no reason not that you know. And we're already seeing an investment at the investment level, you know, at the at the at the family office level, and whynot. Why wouldn't we see it somewhere else? I would see it everywhere. So but as far as like a gold redemption clause

is concerned, you don't have to issue. You can keep the FED funds rate at six percent, but issue fifty year debt with a two percent coupon. Now, all of a sudden, your your budget crisis from a six percent FED funds rate isn't as bad as you think it is. Now you can roll over the existing data two percent, paying two percent coupon, but with a but with the net present value of the bond being linked to the

gold price. Now you can let the price of go old find its new level and the investors will hold onto these fifty year bonds that they're only getting paid two percent dollars every year, but they're getting ten or twelve or fifteen percent in goal. And that way you can slowly allow the price of gold to to you know, rise to its commensurate level over ten or fifteen years.

And at any point you just leave a clause and the thing that the bond is callable at the net present value in dollars based on the current market price of goal. So that if you bought a ten thousand dollar bond, you know, five of which is at the time of the sale is recoverable as redeemable as as

a as treasury gold. That price is that five worth of gold rises to I don't know, you know, a fifteen hundred bucks, and you call the bond in the whole bond is worth now you know, twelve thousand dollars you pay, you pay the people off the you know,

the bond holders back in those dollars. But if you were able to do that and fix the fiscal side of the equation by doing fiscal um you know, reasonable fiscal management along with a re regional nation, the federal words the FED funds rate with SOFA and all the rest of it, and and and risk being assessed by commercial banks and not being set at the margin really by the by the central Bank, and all of a sudden, we have a system that's a hell of a lot

closer to like austral libertarian utopia. Then you think you're you think, um, you was ever possible. It's possible, but it's gonna require a dramatic amount of change, dramatic shift

in thinking. Now here's the king, here's the big gig. Ready, what do you think the Russians in the Chinese are gonna do at some point if anybody thinks that we're gonna um that, you know, like if they could always just restate their gold reserves and then do this exact thing that I just talked about, and they will call capital away from the from the West very quickly. So it's going to be in the Fed's best interest that the FED wants to survive, that the Fed goes. If

it doesn't go first, then it goes. This is why the midterms tomorrow or Sadam the board the theory, it's a great plan, tom I think the problem with that, The biggest problem I see with that plan is that it's you know, too much common sense, it's too practical, and it would work too well, So they probably would never want to go to night However, it's not that far fetched because we know what it was. After nineteen seventy one, the US was forced to issue bonds in

other what other currencies right or other? Uh during so they were forced to do it, and they may be forced to do again. I know you gotta run, Tom, We went long as always. I appreciate uh being able to chat with you. Uh, you write an awesome newsletter which I recommend, Gold Goats and Guns. You got the podcast as well. Uh, we'll make sure to link down that below. Anything you want to shout out, no, just follow me on Twitter. We're on TfL se if you want to. You know, you want want some snark with

your with your core inflection. Yeah, so we'll make sure to link of Twitter. Uh your newsletter in there, which is awesome. I recommend it, and uh with that, we'll we'll wrap it up. Thanks Tom, Thank you, Mark. You have a good day now. All right, that's a rap. Hopefully you enjoyed the conversation as much as I did having it. Make sure to check out Tom Luongo's Gold Goats and Guns. We're gonna link to that down below

in the notes. Follow him on Twitter. Hopefully you take this information think about it, absorb it, and then go discuss it. Share this information. We're trying to wake as many people up. That's my only ask. I try to bring you as much fight as I can, and my ask to you is if you can share this information, discuss it, discuss these ideas, teach your kids, all right, That's what I got to your success amount