Back in February, when everyone was predicting a Fed rate cut, precious metals expert and financial writer Bill Holter said rates would be going up and not down. Since that call, the 10-Year Treasury is up more than 30 basis points. It closed today at 4.67%. Now, Holter is still calling for higher interest rates that will coincide with higher gold and silver prices. Why? It’s called inflation, and it’s not temporary. Holter explains, “Foreigners are backing away from buying Treasuries.
That is the only thing that has kept the doors open, so to speak, is the fact we are able to borrow an unlimited amount of money because we are the world reserve currency. Foreigners backing away from our debt is going to lead the Federal Reserve to be the buyer of last, and then, only resort. So, you will have direct monetization between the Fed and the Treasury. What that will cause is a currency that declines in purchasing power. It will decline in a big way, and it will decline rapidly. So, what I am describing is inflation that turns into hyperinflation.”
But that is not the end of our problems. Holter points out, “I do think it is going to get worse, and that means interest rates will go higher, and that will put on much more pressure. We are at 4.65% on the 10-Year Treasury now.
We went from 3.75% to 4.65% (in a short amount of time). We run through 5% on the 10-year Treasury, and everything blows up. . . . The bottom line here is we are at the end game of a fiat currency. Young people have never experienced high inflation. . . . Where we are this time around, Paul Volker (Fed Head in 1979) was able to raise rates to 16% or 17% and crush inflation. He was able to do that because there was not a ton of debt.
The U.S. debt back in 1980 was 35% of GDP. Now, it is 125% plus debt to GDP.
If you raise rates to 6% to 8%, you will blow up the entire system because much of this debt was put on during the 1% to 3% interest rate time. . . . The inflation is going to push rates higher no matter what the Fed says.”
Gold is hitting one new record high after another. It’s not greed, but fear, and Holter says, “Big money is buying gold because they are looking for protection.” The other wild card is war, and Holter says, “War is a way to keep the system propped up.”
In closing, Holter contends, what you are seeing is not a series of mistakes by incompetent people. Holter says, “This is too stupid for it not to be the plan. . . .This is not a Republican or Democrat thing. We are being steered directly into a brick wall because the globalists can’t take over the world with the US standing. They have to take the US down, and if they take the US down, so will the western financial system fall. If that happens, the globalists can have their way.”
There is much more in the 46-minute interview.
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