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welcome to money is freedom

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a podcast

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exploring how finance and freedom connect in our lives

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created from thoughtful research

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and narrated by Notebook lmaai

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this series brings you clear

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meaningful insights into finance and beyond

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welcome to episode 44 Today

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we're pulling back the curtain on Stealth QE

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The Federal Reserve claims

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they've stopped printing money

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but is that the whole story

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we'll delve into the hidden mechanism

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that the sources describe

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as secretly transferring wealth from your wallet

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and explore

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how it's linked to the nation's 34 trillion dollar debt

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we'll break down this invisible money printer

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and discuss why

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understanding it could be crucial for preserving

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your wealth let's break it all down

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okay let's dive deep

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we're exploring a fascinating claim today

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uh about a mechanism in the US financial system

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one source is actually calling it stealth QE right

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and the source

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we're really unpacking here is an article titled

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The 34 trillion Dollar Deception

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how Stealth Q E is secretly devaluing your savings

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right now

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it's written by someone called Dana the VC

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dated May 29 2025 exactly

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so our mission in this deep dive is to

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you know

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really get into the claims made in this article

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understand what this stealth Q E

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thing is supposed to be how it supposedly works

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according to the source yeah

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and what the potential implications are for you

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the listener and well

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your savings the article kicks off with a premise

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that might sound familiar

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basically says look

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the Federal Reserve insists it stopped printing money

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right

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but maybe your grocery Bill tells a different story

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yeah you know right

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it uses a pretty good analogy actually

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like a magician saying they've put the cards away

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uh huh

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but somehow aces just keep popping out of their sleeves

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and the source's core claim is that

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this isn't some accident no

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it's presented as a deliberate design

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a hidden system and understanding this stealth Q E

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according to the author is pretty crucial

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if you want to protect your wealth over say

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the next decade yeah

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and it immediately ties this to your personal finances

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I mean the article flat out says

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every dollar in your bank account is under attack

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wow it really sets the scene

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by highlighting the sheer scale

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of US government debt we're talking $34 trillion

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which the source points out is roughly yeah

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what $100,000 per American

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something like that yeah

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and the annual interest payments

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they're nearing $1 trillion

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the article notes

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that's more than the US spends on defense

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that scale

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it really does put the problem into perspective

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and the source presents what it calls

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the uncomfortable truth

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which is that this level of debt

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well it can never really be repaid in today's dollars

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the author argues the only politically viable path

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isn't cutting spending no

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it's inflating the debt away

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basically making the money it was borrowed in

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worth less over time

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so the government's burden shrinks in real terms and

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the article frames this historically

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doesn't it

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suggesting that ever since the Fed was created

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back in 1913 yeah

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the patterns been consistent

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major debt crises

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they get resolved through monetary expansion

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not you know

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tightening the belt so in this view

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Stealth QB is just the latest

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maybe most sophisticated evolution of that process

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a hidden way to transfer wealth exactly

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so how does the source

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build its case for this hidden system

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it talks about a few key things

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there was a warning shot in 2019

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right that many people apparently missed

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the current perfect storm of forces converging now

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uh huh

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the actual mechanics of this invisible money printer

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as they call it

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lessons from the Silicon Valley bank collapse

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yeah the perspective of people like Arthur Hayes

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and then finally

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some actionable steps the author thinks you can take

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so it starts back on September 16th, 2019

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the article paints this picture

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you know

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most Americans are watching Monday Night Football

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but in the overnight repo markets

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that's where banks lend cash to each other

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short term interest rates just exploded

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went from like 2% to 10% in minutes

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so the source describes

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banks holding tons of Treasury bonds

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but suddenly unable to get cash

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it uses that phrase being thirsty in the ocean

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that's the one and the Fed's response

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the article argues was really telling

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within hours they jumped in

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started buying short term securities

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injecting liquidity

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but officials called these technical adjustments right

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not QE yeah

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but the source just dismisses that as semantic theater

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I mean bottom line

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money was created assets were bought

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stability was restored okay

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but more importantly

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the article suggests the Fed Learned something critical

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they could provide a lot of stimulus and liquidity

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without the political heat

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that comes from openly expanding their balance sheet

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like with traditional qe uh

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so the source sees that 2019 repo crisis

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less as a problem solved and more like a

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a test run a proof of concept

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for doing things more quietly later on

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exactly that's the argument

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so fast forward to today

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the author argues the situation now makes 2019 look

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like well

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small potatoes right

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the article describes what it calls

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a current perfect storm

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where three big forces are hitting at the same time

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and it claims this is creating maybe

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the biggest liquidity crisis in modern history

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putting retirement savings at risk

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OK what are these three forces

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well force No. 1

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according to the article

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is just the sheer scale of government borrowing

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the Treasury is issuing debt at levels

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the author compares to World War 2

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but we're in peacetime hmm

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just in 2024 they need to refinance

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about $7.5 trillion in maturing bonds

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plus fund new deficits

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the source calculates that out to something like

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$20 billion in new debt every single day

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twenty billion a day that's yeah

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yeah that's a number designed to grab your attention

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okay force number two

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that's what the author calls vanishing

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buyers hmm

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so foreign governments who used to buy a lot of US debt

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they're cutting back the source notes

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China's holdings are down about 25% since 2021

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and even domestic banks the article suggests

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are getting a bit more hesitant

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it points to widening auction tails

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that's a technical sign the author uses to say

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the government is having more trouble selling its debt

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at the prices it expects right

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finding enough buyers at good prices is getting harder

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yeah and the third force

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it's a liquidity drain

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so the Fed has this thing called the reverse

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repo facility the source kind of describes it as

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a giant parking lot for excess cash in the system

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okay at its peak

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it held something like $2.3 trillion

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now it's way down below $300 billion and dropping fast

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where's that money going well

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the money market funds that used to park cash there

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are now moving it into Treasury bills

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because they offer higher yields

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but the effect according to the author

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is it's draining

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this crucial

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shock absorber out of the financial system

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okay so you've got massive borrowing needs

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fewer traditional buyers

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and this liquidity buffer vanishing

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what's the conclusion the source draws from this

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perfect storm it's critical

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the article argues

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that when that reverse repo facility

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basically hits zero

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which it suggests could be within months

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mm hmm the government faces a really stark choice

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which is either

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they dramatically hike interest rates to attract buyers

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for all that debt

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which the source claims would crash the economy

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or they activate these hidden

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stealth q E

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mechanisms to basically create the demand themselves

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behind the scenes

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and the article seems pretty sure which way they'll go

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oh yeah it leaves little doubt

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which brings us right to the core of the argument

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the invisible money printer

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how according to the source

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does Stealth QE actually work

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how does it function

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the author calls it diabolically clever

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okay because it gets around the pivotal

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problem of traditional QE right

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with standard QE people see the Fed's balance sheet

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getting bigger and bigger

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and they start asking questions

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you know why are banks getting bailed out

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while I'm dealing with inflation

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great it's visible

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it causes debate

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so how does this mechanism supposedly become invisible

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how does it bypass that

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the article claims it works through uh

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regulatory manipulation specifically

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it targets a rule called the supplementary leverage

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ratio or s L R

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s L R okay

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what's that

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think of it like a basic safety rule for big banks

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for every dollar of loans or investments they make

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and that includes holding government bonds

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they need to hold a certain amount of their own money

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their capital as a buffer

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like a cushion against losses

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exactly yeah

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the s L R

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normally requires the biggest banks

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to hold about 5% capital against their total exposure

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and importantly

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that exposure usually includes Treasuries

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and even deposits they hold at the Fed

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okay so that's the rule

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how does the source say it's being manipulated

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well the author points out

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the Fed actually suspended this rule temporarily

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back in 2020

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they let banks hold Treasuries and Fed deposits

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without counting them against this capital requirement

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right I remember that

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but it was temporary officially yes

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it was restored in 2021 but the source claims

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there's quiet talk about making this exemption

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permanent basically telling banks

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hey go ahead

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buy and hold as many government bonds as you want

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we won't make you hold extra capital against them

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okay so

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step 1 is removing the penalty for banks

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holding lots of government debt

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but how does that create money

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where's the printer part right

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this is the key part according to the source

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this is what the author frames

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as the real wealth transfer mechanism

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so banks load up on Treasuries

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because the regulatory limit is effectively gone

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got it but what happens if interest rates rise

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and the market value of those bonds

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falls below what the bank originally paid

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they become underwater assets

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normally if the bank needed cash

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they'd have to sell those bonds at a loss in the market

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exactly

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00:09:38,600 --> 00:09:41,166
but here's the twist as the article describes it

285
00:09:41,466 --> 00:09:43,600
instead of selling it at a loss on the open market

286
00:09:43,633 --> 00:09:45,266
the source claims banks can pledge

287
00:09:45,266 --> 00:09:47,766
these underwater bonds to the Fed's lending facilities

288
00:09:47,766 --> 00:09:50,266
like the discount window or maybe programs

289
00:09:50,266 --> 00:09:52,700
like the ones set up after SVB failed

290
00:09:52,700 --> 00:09:54,666
and here's the crucial part

291
00:09:55,100 --> 00:09:58,400
the source alleges the Fed accepts these bonds

292
00:09:58,700 --> 00:10:02,100
not at their current lower market value

293
00:10:02,200 --> 00:10:05,366
but at their original face value or par value

294
00:10:05,800 --> 00:10:06,400
ah so

295
00:10:06,400 --> 00:10:08,566
the Fed is essentially lending the bank

296
00:10:08,566 --> 00:10:09,566
more cash

297
00:10:09,566 --> 00:10:11,633
than the bonds are actually worth in the market

298
00:10:11,633 --> 00:10:13,000
at that moment precisely

299
00:10:13,000 --> 00:10:14,200
according to this article

300
00:10:14,300 --> 00:10:15,833
the source argues the banks avoid

301
00:10:15,833 --> 00:10:16,700
having to recognize

302
00:10:16,700 --> 00:10:18,633
the loss on those depreciated bonds

303
00:10:18,633 --> 00:10:21,333
they get full face value cash from the Fed

304
00:10:21,400 --> 00:10:23,466
which injects liquidity into the system

305
00:10:23,466 --> 00:10:26,666
and the bank still collects interest on the bond right

306
00:10:26,666 --> 00:10:28,366
the bank profits from the interest

307
00:10:28,500 --> 00:10:30,600
while the risk of the bond's lower value is

308
00:10:30,600 --> 00:10:32,966
effectively shifted to the Fed's balance sheet

309
00:10:32,966 --> 00:10:35,033
which the author argues implicitly

310
00:10:35,033 --> 00:10:38,233
socializes that loss onto taxpayers down the line

311
00:10:38,233 --> 00:10:41,500
so the outcome the source describes is what

312
00:10:41,500 --> 00:10:43,600
unlimited government financing by proxy

313
00:10:43,600 --> 00:10:44,433
that's the claim

314
00:10:44,433 --> 00:10:46,266
it allows the government to keep issuing debt

315
00:10:46,266 --> 00:10:48,100
knowing the banks can absorb it

316
00:10:48,100 --> 00:10:50,700
and then pledge it to the Fed at face value if needed

317
00:10:50,966 --> 00:10:52,700
the Fed's main balance sheet doesn't swell

318
00:10:52,700 --> 00:10:54,233
with direct Treasury purchases

319
00:10:54,233 --> 00:10:55,300
like in traditional QE

320
00:10:55,300 --> 00:10:57,833
so the whole process stays kind of invisible

321
00:10:57,833 --> 00:10:59,766
but money is still being created

322
00:10:59,766 --> 00:11:01,366
just entering the system differently

323
00:11:01,366 --> 00:11:03,766
that's the argument through banks

324
00:11:03,766 --> 00:11:06,366
leveraging these assets at non market values

325
00:11:06,466 --> 00:11:07,933
facilitated by the Fed

326
00:11:08,100 --> 00:11:11,366
the article then uses the Silicon Valley bank collapse

327
00:11:11,366 --> 00:11:14,866
back in March 2023 as a really important case study

328
00:11:14,900 --> 00:11:17,233
it argues SVB's failure wasn't just

329
00:11:17,233 --> 00:11:19,300
you know a one off event right

330
00:11:19,300 --> 00:11:21,900
it was seen as a preview of the systemic risk

331
00:11:21,900 --> 00:11:24,600
caused by holding lots of these underwater bonds

332
00:11:25,000 --> 00:11:27,000
but maybe even more importantly

333
00:11:27,066 --> 00:11:29,566
it showed how the system reacts to protect itself

334
00:11:29,566 --> 00:11:30,466
how so well

335
00:11:30,466 --> 00:11:31,566
the source notes SBB

336
00:11:31,566 --> 00:11:34,233
had something like $120 billion in these underwater

337
00:11:34,233 --> 00:11:36,200
Treasury bonds and apparently

338
00:11:36,200 --> 00:11:38,000
they were operating under the Assumption that Fed

339
00:11:38,000 --> 00:11:39,266
backstops would somehow

340
00:11:39,266 --> 00:11:41,033
protect them from losses on these assets

341
00:11:41,033 --> 00:11:43,633
and the author says they were partly right

342
00:11:43,633 --> 00:11:45,566
kind of the Fed did step in

343
00:11:45,566 --> 00:11:48,400
remember they created the Bank Term Funding Program

344
00:11:48,400 --> 00:11:51,066
the btfp and that program explicitly

345
00:11:51,066 --> 00:11:52,166
allowed banks to pledge

346
00:11:52,166 --> 00:11:53,566
underwater securities to the Fed

347
00:11:53,566 --> 00:11:56,966
at par value exactly the mechanism the source describes

348
00:11:56,966 --> 00:11:59,466
so it helped other banks avoid forced losses

349
00:11:59,500 --> 00:12:01,800
yes but according to the source

350
00:12:01,900 --> 00:12:06,233
SVB just failed too fast they hit a classic bank run

351
00:12:06,233 --> 00:12:07,533
depositor panic

352
00:12:07,666 --> 00:12:10,366
before these stealth mechanisms could fully stabilize

353
00:12:10,366 --> 00:12:11,700
that specific bank

354
00:12:11,700 --> 00:12:14,400
so the takeaway from SVB in this article's view

355
00:12:14,400 --> 00:12:16,966
isn't just a bank failed it's that the response

356
00:12:16,966 --> 00:12:19,300
the BTF allowing pledging at par

357
00:12:19,300 --> 00:12:21,500
demonstrated the system's priority

358
00:12:21,900 --> 00:12:24,333
protecting its ability to finance government debt

359
00:12:24,433 --> 00:12:26,833
even if some individual players get caught out

360
00:12:26,833 --> 00:12:28,466
that's the interpretation presented

361
00:12:28,466 --> 00:12:30,966
this perspective seems to align with how the source

362
00:12:30,966 --> 00:12:34,000
brings in Arthur Hayes the former Bitmex CEO

363
00:12:34,266 --> 00:12:36,400
it describes his view of these kinds of

364
00:12:36,400 --> 00:12:38,400
stealth interventions as a

365
00:12:38,566 --> 00:12:40,433
what was it financial system cancer

366
00:12:40,433 --> 00:12:43,066
yeah the article cites an essay by haze called kiss of

367
00:12:43,066 --> 00:12:45,500
Death Haze basically argues

368
00:12:45,600 --> 00:12:46,900
the whole system is creaking

369
00:12:46,900 --> 00:12:48,833
under the weight of all this spiraling debt

370
00:12:48,833 --> 00:12:50,433
and the source highlights Haze's point

371
00:12:50,433 --> 00:12:51,700
that these stealth interventions

372
00:12:51,700 --> 00:12:53,633
even if they seem small individually

373
00:12:53,633 --> 00:12:55,900
they have this really damaging cumulative effect

374
00:12:55,900 --> 00:12:58,133
because they steadily debase the currency

375
00:12:58,133 --> 00:12:59,066
but without the public

376
00:12:59,066 --> 00:13:01,066
fully grasping the scale of the money printing

377
00:13:01,066 --> 00:13:02,900
that's actually happening right

378
00:13:02,900 --> 00:13:04,766
unlike a very obvious QE

379
00:13:04,766 --> 00:13:06,300
which might scare people about inflation

380
00:13:06,300 --> 00:13:08,933
pretty quickly this hidden approach

381
00:13:09,066 --> 00:13:10,966
according to the sources reading of haze

382
00:13:11,533 --> 00:13:13,766
it operates sort of under the radar exactly

383
00:13:13,766 --> 00:13:15,266
which allows for potentially

384
00:13:15,266 --> 00:13:17,700
much more monetary expansion before markets

385
00:13:17,700 --> 00:13:20,166
or the public really react strongly

386
00:13:20,433 --> 00:13:22,333
they also calls it a powerful

387
00:13:22,366 --> 00:13:24,500
quiet tool for wealth transfer

388
00:13:24,500 --> 00:13:26,266
and both Hayes as cited

389
00:13:26,266 --> 00:13:28,033
and the author seem to suggest

390
00:13:28,033 --> 00:13:30,900
this whole process will inevitably push people towards

391
00:13:31,000 --> 00:13:32,066
well hard assets

392
00:13:32,066 --> 00:13:33,700
things like gold maybe bitcoin

393
00:13:33,700 --> 00:13:35,666
yeah as investors look for ways to escape

394
00:13:35,666 --> 00:13:38,500
what they see is this systematic currency debasement

395
00:13:38,500 --> 00:13:40,033
happening kind of quietly

396
00:13:40,033 --> 00:13:43,000
yeah the source really emphasizes Hay's broader point

397
00:13:43,166 --> 00:13:44,866
regardless of your favorite asset

398
00:13:44,866 --> 00:13:46,466
the current system viewed this way

399
00:13:46,466 --> 00:13:48,700
is structurally tough on people holding cash

400
00:13:48,700 --> 00:13:50,100
or living on fixed incomes

401
00:13:50,100 --> 00:13:50,500
okay so

402
00:13:50,500 --> 00:13:51,666
given this mechanism

403
00:13:51,666 --> 00:13:53,100
that the source claims is operating

404
00:13:53,100 --> 00:13:54,866
what does it anticipate for the future

405
00:13:54,866 --> 00:13:56,166
say the next decade

406
00:13:56,366 --> 00:13:58,866
the article lays out three potential scenarios right

407
00:13:58,866 --> 00:14:01,866
scenario one which the author gives a 40% probability

408
00:14:01,866 --> 00:14:03,533
is called successful stealth

409
00:14:03,700 --> 00:14:06,600
basically the stealth QE mechanism works as intended

410
00:14:06,600 --> 00:14:09,233
the system stays funded what does that look like

411
00:14:09,233 --> 00:14:12,266
inflation stays elevated but maybe manageable

412
00:14:12,266 --> 00:14:14,100
say 4 6% a year

413
00:14:14,300 --> 00:14:16,466
asset prices keep climbing steadily

414
00:14:16,466 --> 00:14:18,266
but wage growth doesn't keep up

415
00:14:18,366 --> 00:14:20,166
so you get this slow steady

416
00:14:20,166 --> 00:14:21,466
transfer of wealth

417
00:14:21,466 --> 00:14:24,200
from workers and savers to people who own assets

418
00:14:24,200 --> 00:14:25,900
and the suggested positioning for that

419
00:14:25,900 --> 00:14:28,466
the source suggests things like real estate stocks

420
00:14:28,466 --> 00:14:30,300
gold and Bitcoin okay

421
00:14:30,300 --> 00:14:32,233
scenario 2 that's stealth failure

422
00:14:32,233 --> 00:14:35,900
given a 35% probability in the article here

423
00:14:35,900 --> 00:14:37,700
the author predicts that eventually

424
00:14:37,700 --> 00:14:38,766
the market figures out

425
00:14:38,766 --> 00:14:41,300
just how much hidden money creation is going on

426
00:14:41,300 --> 00:14:44,400
and then what inflation expectations shoot up rapidly

427
00:14:44,600 --> 00:14:46,166
the Fed loses credibility

428
00:14:46,300 --> 00:14:48,200
maybe they're forced back into more obvious

429
00:14:48,200 --> 00:14:50,700
aggressive QE inflation could accelerate

430
00:14:50,700 --> 00:14:51,433
maybe hitting 8

431
00:14:51,433 --> 00:14:54,600
12% annually before they even try to tighten things up

432
00:14:54,600 --> 00:14:56,366
positioning for that scenario

433
00:14:56,366 --> 00:14:58,966
the source shifts focus a bit gold

434
00:14:58,966 --> 00:15:00,866
Bitcoin maybe foreign assets

435
00:15:00,900 --> 00:15:03,166
and interestingly variable rate debt

436
00:15:03,200 --> 00:15:04,833
used as a hedge on the barring inside

437
00:15:04,833 --> 00:15:07,800
against rising rates not held as an asset itself

438
00:15:07,900 --> 00:15:08,500
interesting okay

439
00:15:08,500 --> 00:15:10,966
and the third scenario that's deflation panic

440
00:15:10,966 --> 00:15:14,000
given a 25% probability here

441
00:15:14,000 --> 00:15:15,400
the ideas that maybe stealth

442
00:15:15,400 --> 00:15:18,266
QE can't keep up with the government's massive debt

443
00:15:18,266 --> 00:15:19,066
debts

444
00:15:19,233 --> 00:15:22,500
the system hits some kind of crisis point forcing what

445
00:15:22,500 --> 00:15:23,900
either truly massive

446
00:15:23,900 --> 00:15:26,166
visible intervention like helicopter money

447
00:15:26,166 --> 00:15:28,933
or maybe even some form of debt restructuring

448
00:15:29,633 --> 00:15:32,100
the article suggests this might involve a short

449
00:15:32,100 --> 00:15:33,566
sharp deflationary shock

450
00:15:33,566 --> 00:15:36,366
followed by extreme inflation as the authorities panic

451
00:15:36,366 --> 00:15:38,166
and positioning for that potential

452
00:15:38,166 --> 00:15:39,266
chaos the source suggests

453
00:15:39,266 --> 00:15:42,966
holding cash short term for the deflationary bit gold

454
00:15:43,033 --> 00:15:45,366
investing in businesses providing essential goods

455
00:15:45,366 --> 00:15:46,866
and again Bitcoin

456
00:15:46,966 --> 00:15:48,866
it's definitely notable that gold and Bitcoin

457
00:15:48,866 --> 00:15:50,166
seem to pop up in the strategies

458
00:15:50,166 --> 00:15:52,200
for all three possible futures

459
00:15:52,200 --> 00:15:53,466
outlined by this source yeah

460
00:15:53,466 --> 00:15:55,433
that's a clear take away from the recommendations okay

461
00:15:55,433 --> 00:15:57,000
beyond these broad scenarios

462
00:15:57,000 --> 00:15:59,000
the article offers something more concrete

463
00:15:59,233 --> 00:16:03,166
your stealth Q E defense plan 5 concrete actions

464
00:16:03,166 --> 00:16:06,066
what's action No. 1 action 1 according to the source

465
00:16:06,266 --> 00:16:10,100
declare the classic 60 40 stock bond portfolio dead

466
00:16:10,266 --> 00:16:12,233
bold claim what replaces it

467
00:16:12,233 --> 00:16:13,066
the author suggests

468
00:16:13,066 --> 00:16:16,766
embracing what they call a new Trinity for allocation

469
00:16:17,066 --> 00:16:20,500
40% real assets 40% growth stocks right

470
00:16:20,500 --> 00:16:22,333
and 20% cash alternatives

471
00:16:22,600 --> 00:16:23,466
and they clarify

472
00:16:23,466 --> 00:16:26,400
real assets could include things like reets commodities

473
00:16:26,400 --> 00:16:29,200
maybe inflation protected securities tips okay

474
00:16:29,200 --> 00:16:31,600
40 40 20 action 2

475
00:16:31,633 --> 00:16:32,966
become a debt strategist

476
00:16:33,100 --> 00:16:35,566
the advice here is if you're gonna borrow money

477
00:16:35,566 --> 00:16:36,666
maybe do it now

478
00:16:36,833 --> 00:16:39,633
lock in fixed rates and use it for productive assets

479
00:16:39,633 --> 00:16:42,200
what's the reasoning the argument is that stealth QE

480
00:16:42,200 --> 00:16:42,900
is basically

481
00:16:42,900 --> 00:16:46,200
designed to make debt cheaper in real terms over time

482
00:16:46,200 --> 00:16:47,800
because the currency gets debased

483
00:16:47,800 --> 00:16:49,833
while your income might inflate eventually

484
00:16:49,833 --> 00:16:52,266
but and this is a big warning in the article yes

485
00:16:52,266 --> 00:16:55,466
avoid variable rate debt the source calls it a trap

486
00:16:55,466 --> 00:16:57,700
especially if that stealth failure scenario plays out

487
00:16:57,700 --> 00:16:58,600
and rates spike

488
00:16:58,600 --> 00:17:01,766
got it fixed rate good variable rate bad in this view

489
00:17:01,766 --> 00:17:03,300
action 3 monitor what the

490
00:17:03,300 --> 00:17:05,533
source calls the Stealth Q E dashboard

491
00:17:05,600 --> 00:17:08,066
basically track a few specific weekly indicators

492
00:17:08,066 --> 00:17:10,166
like what Treasury auction tail sizes

493
00:17:10,166 --> 00:17:13,100
wider tails might mean more trouble selling debt

494
00:17:13,233 --> 00:17:15,566
hinting at more need for stealth help

495
00:17:16,100 --> 00:17:17,366
Fed reverse repo levels

496
00:17:17,366 --> 00:17:19,466
lower levels mean liquidity is draining

497
00:17:19,866 --> 00:17:22,300
bank excess reserves higher reserves

498
00:17:22,500 --> 00:17:24,433
could suggest banks are getting cash from Fed

499
00:17:24,433 --> 00:17:26,900
facilities maybe by pledging assets

500
00:17:27,266 --> 00:17:29,166
and the 10 year Treasury yield

501
00:17:29,166 --> 00:17:30,900
compared to inflation expectations

502
00:17:31,066 --> 00:17:33,566
if yields fall below inflation expectations

503
00:17:33,833 --> 00:17:35,800
the author thinks that could signal the market

504
00:17:35,800 --> 00:17:37,666
anticipates stealth failure

505
00:17:37,666 --> 00:17:39,000
and higher inflation ahead

506
00:17:39,000 --> 00:17:41,166
okay so keeping an eye on those specific numbers

507
00:17:41,166 --> 00:17:43,700
action 4 geographic diversification

508
00:17:43,700 --> 00:17:44,266
basically

509
00:17:44,266 --> 00:17:46,800
don't assume the US Dollar stays dominant forever

510
00:17:47,000 --> 00:17:49,266
the source suggests considering international exposure

511
00:17:49,266 --> 00:17:50,600
maybe foreign real estate

512
00:17:51,166 --> 00:17:52,900
stocks and commodity heavy countries

513
00:17:52,966 --> 00:17:55,233
or even holding small amounts of foreign currencies

514
00:17:55,233 --> 00:17:56,800
spreading the risk geographically

515
00:17:56,800 --> 00:17:59,900
and action 5 prioritize skills over savings

516
00:18:00,366 --> 00:18:02,433
the argument is in the kind of inflationary world

517
00:18:02,433 --> 00:18:06,100
the author thinks Dell Q E creates your human capital

518
00:18:06,366 --> 00:18:07,566
your ability to earn

519
00:18:07,566 --> 00:18:09,500
often becomes more valuable than just holding

520
00:18:09,500 --> 00:18:10,800
financial capital so

521
00:18:10,800 --> 00:18:11,866
invest in yourself

522
00:18:12,166 --> 00:18:14,200
in skills that boost your earning power

523
00:18:14,200 --> 00:18:17,366
faster than the currency potentially loses value

524
00:18:17,366 --> 00:18:18,900
that's the idea presented

525
00:18:18,900 --> 00:18:21,033
so bringing all these points from the article together

526
00:18:21,033 --> 00:18:23,000
the author sums it up with what they call

527
00:18:23,033 --> 00:18:25,533
the uncomfortable truth about modern money

528
00:18:25,700 --> 00:18:26,800
and they claim you know

529
00:18:26,800 --> 00:18:28,800
your financial advisor might not tell you this

530
00:18:28,800 --> 00:18:29,233
this is that

531
00:18:29,233 --> 00:18:32,200
the financial game has fundamentally changed

532
00:18:32,366 --> 00:18:34,100
traditional investing wisdom

533
00:18:34,100 --> 00:18:35,100
the article argues

534
00:18:35,100 --> 00:18:37,933
is built on assumptions like currency stability

535
00:18:38,100 --> 00:18:41,866
moderate inflation that stealth QE basically shatters

536
00:18:41,866 --> 00:18:44,266
okay so what's the new reality

537
00:18:44,266 --> 00:18:46,900
according to this source it's a reality where

538
00:18:46,900 --> 00:18:50,066
in the author's view cash just loses purchasing power

539
00:18:50,066 --> 00:18:51,933
much faster than people realize

540
00:18:52,133 --> 00:18:54,566
government bonds become less like safe havens

541
00:18:54,566 --> 00:18:56,200
and more like speculative bets

542
00:18:56,200 --> 00:18:58,366
and assets like gold bitcoin

543
00:18:58,366 --> 00:18:59,566
real estate yeah

544
00:18:59,566 --> 00:19:01,933
they start acting more like monetary hedges

545
00:19:02,033 --> 00:19:04,366
not just investments or places to live

546
00:19:04,366 --> 00:19:05,833
exactly and crucially

547
00:19:05,833 --> 00:19:08,566
the source states that people who primarily earn wages

548
00:19:08,566 --> 00:19:11,000
face this kind of systematic impoverishment

549
00:19:11,066 --> 00:19:13,500
unless they also own assets that can inflate

550
00:19:13,500 --> 00:19:14,800
along with the money supply

551
00:19:14,866 --> 00:19:17,300
the article is careful to say this isn't about morality

552
00:19:17,300 --> 00:19:19,433
it's just mechanical reality

553
00:19:19,433 --> 00:19:21,300
the system it argues

554
00:19:21,366 --> 00:19:23,433
is designed to inflate away debt

555
00:19:23,433 --> 00:19:25,466
and Stealth QE is just the newest

556
00:19:25,466 --> 00:19:27,400
most refined tool for doing that

557
00:19:27,400 --> 00:19:30,700
so the source concludes Stealth QE is like

558
00:19:30,700 --> 00:19:32,900
the most sophisticated wealth transfer mechanism

559
00:19:32,900 --> 00:19:33,800
we've seen yet

560
00:19:33,800 --> 00:19:35,633
that's the claim elegant

561
00:19:35,633 --> 00:19:37,200
almost invisible to the public

562
00:19:37,200 --> 00:19:38,800
and the author argues

563
00:19:38,900 --> 00:19:41,500
devastatingly effective at its purpose

564
00:19:41,866 --> 00:19:44,333
the Fed in this view has solved its main

565
00:19:44,366 --> 00:19:45,833
main political problem

566
00:19:46,133 --> 00:19:48,566
it can keep the money flowing to finance the government

567
00:19:48,566 --> 00:19:49,233
without the big

568
00:19:49,233 --> 00:19:52,066
public outcry that comes with obvious money printing

569
00:19:52,166 --> 00:19:53,866
but the article argues

570
00:19:54,000 --> 00:19:57,200
just knowing about this mechanism gives you a choice

571
00:19:57,200 --> 00:19:59,000
right you can stay unaware

572
00:19:59,000 --> 00:20:01,333
and maybe watch your purchasing power dwindle

573
00:20:01,400 --> 00:20:03,633
you can understand it but feel kind of frozen

574
00:20:03,633 --> 00:20:05,266
paralyzed by how big it seems

575
00:20:05,266 --> 00:20:08,866
or the third option or the author suggests you adapt

576
00:20:08,966 --> 00:20:10,966
you change your strategy to try and navigate

577
00:20:10,966 --> 00:20:14,033
maybe even benefit from this new monetary reality

578
00:20:14,033 --> 00:20:16,433
the source describes and the article stresses

579
00:20:16,433 --> 00:20:18,066
that the time to make that choice

580
00:20:18,066 --> 00:20:20,133
to adapt might be limited

581
00:20:20,133 --> 00:20:21,833
yeah it says the window is

582
00:20:21,833 --> 00:20:24,266
in the author's opinion narrowing

583
00:20:24,533 --> 00:20:28,433
as more people catch on asset prices will adjust faster

584
00:20:28,533 --> 00:20:30,466
making it harder to get ahead of the curve

585
00:20:30,466 --> 00:20:34,400
which leads into the source's final reality check right

586
00:20:34,400 --> 00:20:36,166
the article basically says

587
00:20:36,200 --> 00:20:39,266
don't expect the Fed to ever admit to running stealth

588
00:20:39,266 --> 00:20:40,000
QE well

589
00:20:40,000 --> 00:20:42,200
that happened don't expect politicians to suddenly

590
00:20:42,200 --> 00:20:45,166
find fiscal religion given the mountain of debt

591
00:20:45,266 --> 00:20:46,833
unlikely given the incentives

592
00:20:46,833 --> 00:20:49,366
and all the media debates about inflation numbers

593
00:20:49,566 --> 00:20:51,133
the source dismisses them as

594
00:20:51,133 --> 00:20:53,766
mostly distractions from the underlying mechanism

595
00:20:53,766 --> 00:20:56,066
so what does matter according to the article

596
00:20:56,066 --> 00:20:57,866
recognizing the inevitability

597
00:20:58,066 --> 00:21:00,733
in a system with $34 trillion in debt

598
00:21:00,733 --> 00:21:03,833
and facing a trillion a year in interest payments

599
00:21:04,233 --> 00:21:05,333
the source argues

600
00:21:05,333 --> 00:21:08,533
monetary expansion isn't really a policy choice anymore

601
00:21:08,533 --> 00:21:10,633
it's presented more as a mechanical necessity

602
00:21:10,633 --> 00:21:13,033
it has to happen one way or another exactly

603
00:21:13,133 --> 00:21:14,800
so the only real question left

604
00:21:14,800 --> 00:21:15,933
according to the article is

605
00:21:15,933 --> 00:21:16,966
whether you position yourself

606
00:21:16,966 --> 00:21:19,900
to be a beneficiary of that expansion or well a

607
00:21:20,166 --> 00:21:22,766
of it which leads directly to that final

608
00:21:22,766 --> 00:21:25,000
provocative thought the source leaves you with

609
00:21:25,000 --> 00:21:27,700
yeah stealth QE isn't coming

610
00:21:27,700 --> 00:21:28,700
it's here

611
00:21:28,733 --> 00:21:31,000
the invisible money printer is already running

612
00:21:31,000 --> 00:21:33,100
your savings are already under attack

613
00:21:33,400 --> 00:21:36,100
and then it poses that direct question to you

614
00:21:36,100 --> 00:21:37,733
the listener the question isn't

615
00:21:37,733 --> 00:21:39,966
whether this system is fair or sustainable

616
00:21:39,966 --> 00:21:42,900
the question is now that you know how it works

617
00:21:42,966 --> 00:21:44,300
what are you gonna do about it

618
00:21:44,300 --> 00:21:45,533
with a final little nudge

619
00:21:45,533 --> 00:21:47,233
that the time left to position yourself

620
00:21:47,233 --> 00:21:48,433
might be shorter than you think

621
00:21:48,433 --> 00:21:51,100
wow that is definitely a lot to chew on

622
00:21:51,100 --> 00:21:52,500
from the claims made in that article

623
00:21:52,500 --> 00:21:55,000
yeah the 34 trillion dollar deception

624
00:21:55,000 --> 00:21:56,700
it certainly is well

625
00:21:56,700 --> 00:21:57,733
thank you for joining us

626
00:21:57,733 --> 00:22:00,200
for this deep dive into the source material