Transcription
Cold coins are pure garbage. José Luis, I'm going to meditate. Your last wickedness. Hello, how are you? Good morning from Madrid. As you can see, today we are enjoying a summer morning, but the truth is that it feels very good because there is a fresh, very pleasant breeze. Today is Monday and as Monday, what is it? What does a good speculator do? He opens the nightstand, takes out the knife, puts it between his teeth, goes to the trenches, and tries to evade the traps that he knows the algorithms will set for him. But since today is Monday and we have to start the week with joy, we are going to do it, how? By telling wicked things. And the ones I bring you today are very wicked, they even attack the heart of the system. I will only tell you that in the last wickedness, in the last wickedness, we will tell you how the dominant elites insert the citizens or the politicians they have chosen into governments to do what they tell them. Does that sound good to you? If it sounds good, we begin with the first question. I would like you to have a clear concept, which is that of M2. M2 is very easy, it is the sum of cash in the economy plus bank deposits, plus savings that are invested in financial instruments with a very short-term maturity, for example, money market funds. In such a way that M2 sums up cash plus that savings, plus that money deposited in financial instruments that can be very easily converted into liquidity. Well, it is the money that exists in the economy. Well, what I am going to tell you is that we are going to focus on the growth rate of M2, okay? to draw conclusions, and you will see how they are creating an envelope for us, but we have the antidote. Look at this graph. As you can see in this graph, you will observe that the relationship between M2 and China's GDP is 250%. What is this? An outrage. There is a lot of money in the Chinese economy. If you look at the graph, you will observe that the amount of money is even higher than the percentage that M2 represents with respect to Japan's GDP. Well, well. The next question we are going to ask ourselves is, well, how much does M2 grow annually on average? Does it seem good to you if we don't go to China? Well, in China, M2 is growing at an annual rate of 8.6%. Well. If every year there is more money and it increases by 8.6%. I am now going to focus on how much gold production is growing globally. Global gold production may be around 2%, okay? At 2% of a smaller base, and it is also slowing down over time, and if the price of oil increases, it will slow down even more. Well, we have it clear. If the amount of money in the system increases annually by 8.6% in China on a very large base, and gold production increases by 2% and tends to decrease over time, then it is evident that the way to defend ourselves from this massive creation of money is by investing in gold. Is the idea clear or not? Well. How much should gold appreciate annually on average then? Well, man, if you take 8.6 and subtract 2, you get 5.6. Well, but this is only taking into account the growth of the money supply in China. Yes, yes, yes. China is the country with a very high money supply, but who else has it? Well, the United States. Who else has it? Europe, who else has it? The United Kingdom. Who else has it? Japan. So if all of them are increasing, for example, in the United States the money supply is increasing at a rate of 5% annually. Therefore, it is reasonable to think that, at a minimum, at a minimum, the average annual revaluation of gold in the medium and long term must be in the order of 5% to 6%. Therefore, the way we have to defend ourselves is by investing in gold. Well, well. We will continue reasoning. Now I would like you to consider the following fact. Look at the envelope they are creating for people. Does it seem good to you if we don't go to China? In China, M2 is 53 trillion. The question I am going to ask you is, of these 53 trillion, how much is citizens' savings? How much is individual savings? Central banks, the People's Bank of China does not provide information, but we can estimate that within M2, citizens' savings may be 70%. Think that in China, Chinese people are very thrifty. Until now, they have been saving and investing their savings in real estate, in the real estate sector, but since they have been subjected to a pyramid scheme, now they have moved from real estate to bank deposits until this moment. Okay? I will show you the next step they have taken later. So it is clear that if you have your savings in fiat currency and the money supply increases annually by 8% or 8.6%, then your purchasing power is being eroded by around 8%. Is the idea clear? So when they tell you what is the riskiest investment in the world, the riskiest investment in the world is to have money in bank deposits because every year the Chinese lose 8.6%, the Americans lose 5%. And then each of you in your country, look at how M2 is growing to know how the purchasing power of your money is being degraded. But the Chinese are very smart. Look at what happened in May. China's gold imports reached 163 tons. Well, what are 163 tons? I want to visualize it. More than 5 million one-ounce Troy gold bars. More than 5 million. Well, okay. And the money, 21 billion. Well, but I don't get an idea. Do you know what 21 billion is? The liquidity injections that the Federal Reserve system is making in a month into the US economy. 21 billion. It's an outrage. Well, and who is buying so much gold? You should consider that not only in May did they buy 163 tons, but over the last three months they have imported more than 150 tons per month. Okay? Who is buying? Chinese citizens. The Chinese are realizing that the government is creating an envelope for them and they are trying to defend themselves. How are they defending themselves? By fleeing bank deposits and directing their money to buy gold. And they are doing it massively. This is the vote of confidence that Chillin Pin gives. Zero. Okay? Is the idea clear? Well. But we are also finding that the Chillin Mipin government has lowered the regulations, the requirements, the regulation to favor gold imports by institutions. Well, well. So on the one hand, the Chinese are buying to defend themselves from their government, and the government favors institutions continuing to import gold. In this regard, you should consider that the Shanghai Stock Exchange has invested to increase the storage capacity of its gold vaults. It is clear that Chillin Pin, knowing perfectly well that he cannot dethrone the dollar, is trying to erode its monopoly and is therefore clearly betting on gold. Well, perfect. This way he evades possible sanctions. But what matters to us as good speculators is that the Chinese are buying gold, institutions are buying gold, and the Chillin Pin government favors the purchase of gold. Therefore, I believe that the medium to long-term trend of gold is assured. Well, the next question is, who is selling? Well, honestly, I believe it is Russia selling. We have seen how the Gulf countries have sold, okay? We have seen how Turkey is selling to finance its oil imports. We have even seen in China, in India, in India, how its government has asked citizens to stop buying. But well, it is a rule or advice that will have a temporary impact, but you know well that Indians import a large amount of gold. Therefore, you see that the sellers are temporary, but the underlying upward trend is a very strong trend. In the short term, we are seeing that the price of gold is falling, but I believe that with these sales, the price of gold is at a value, you could say, fair, at the value it corresponds to. That is why, despite these people selling gold, Chinese institutions are buying. And the seller, what? Well, panic sellers. We know perfectly well that Putin's economy is collapsing. Okay? Therefore, I believe that what I am seeing in gold, I am also seeing in Bitcoin. I remember when Bitcoin was worth 1000 and people said the same thing as now. I have no doubt that the medium and long-term trend of gold and Bitcoin is clearly upward. Yes, there are temporary pressures, but you have to take perspective. Do you see how they degrade the value of the currency? Let's go to the United States. In the United States, to give you an idea, we find that the money supply can be in the order of 32 million, 32 trillion. How much is individual savings? Well, let's study, let's estimate that individual savings can be 65%, 70%. Well, look at this outrage. Out of 32 trillion, practically a little more than 20 are in bank deposits, investment funds, money market assets. But when we look at the balance of bank deposits, money market assets, money market investment funds, as you can see in this graph, you will observe that the figure is extremely high. Do you see that it reaches 20 trillion? If you also look at the increase that has occurred from 2010 to 2019, you will see that it has increased by 3 trillion. Then you see what conclusion we can reach. First, that US consumers have money, although we are seeing articles saying they are heavily indebted and so on, we must be clear that US consumers have a lot of money. The problem is that they have it. Of course, there is a sector of the population that has very little money, but another that has a large amount of money, the middle class and the upper-middle class and the upper class. These three groups have money, and for that reason, we say that the recovery of US private consumption is a recovery in the shape of a gajo. Okay? Well. If this agent has this amount of money in funds that are short-term realizable financial instruments, if the stock market were to rise strongly, greed would be unleashed and there would be fuel to favor new rises. But don't forget, the growth of M2 in the United States is 5%. The purchasing power of US savers diminishes by 5% each year. Do you see the envelope? Do you see the pyramid scheme of this system? That said, we move on to the third wickedness. Well, we have found that you know well that the founder of the World Economic Forum is Klaus Swap. This gentleman, within the World Economic Forum, has a program, okay? which is that of the young global leaders, the 30-year-olds they admit, they educate them in their philosophy, okay? in an attempt for these people to learn what they want so that they can then model society according to what they have thought. That is, the model of society is defined at the top and then imposed. And for this, they use these young leaders. Who has benefited from these programs? Young brilliant people in practically all areas have benefited, in the world of business, in the world of politics, in the world of academic training. We can think of the case of Sarkozy, we can think of the case of Tony Blair, we can think of the case of Merkel, okay? the case of Macron lately, and we can also think of the case of great economic leaders like Zuckerberg, we can talk about Bramson, etc., Gates himself. Do you see that once they have been trained in their ideology, in their way of thinking, we have found that in a conference that this gentleman Klaus Swap gave at Harvard in 2017, he says, "We provide the training, and then we insert them into governments." Is the idea clear? Who is in charge? Is the idea clear? Then, in each country, depending on the brilliant young people who are willing to play this game, they will have more or fewer categories, they will be better or worse. But it is clear that this is the model that the dominant classes aspire to, personalized for each country. Well, I leave all this to you to meditate on. Today is Monday, we have to start with energy. Especially since this week is shorter on Wall Street. Goodbye, see you later. Cold coins are pure garbage.