They’re CONTROLLING The Government!! Know This!!

[Music] Governments around the world are Collectively over 300 trillion in debt Now everyone knows it's only a matter of Time before this debt bubble bursts but Nobody wants to be blamed for it or left Holding the bag the most terrifying part Is that the elites appear to be using This growing debt bubble as a tool to Prevent their opponents from taking Power or keeping them check on the off Chance that they do so today we're going To explain how government debt is being Weaponized to prevent real political Change from taking place reveal who is Involved tell you what comes next and What it means for the markets make no Mistake this is one of the most Important videos you will ever Watch in September 2022 Liz truss became Prime minister of the United Kingdom by The end of October she'd resigned now The official story was that she was Forced to resign after she proposed a Government spending plan that would cut Taxes without reducing spending which Would increase government debt this Caused the value of UK government bonds AKA guilts to collapse this in turn put Pressure on UK Pension funds because They are the largest holders of guilts The result was that UK Pension funds Were forced to sell guilts to keep Functioning this caused guilt prices to

Go lower causing more forced selling and So on put simply truss's government Spending plan caused the UK pension System to implode so she was forced to Resign but that's just the official Story in April of this year truss Published a book titled 10 years to save The West wherein she claims that the Guilt market crash was facilitated by The bank of England and others in order To force her to resign now not Surprisingly the media has largely Dismissed this as a crackpot conspiracy Theory and even some of her own Supporters are skeptical what is Surprising though is that not only could There be some truth to truss's claims But that we could be seeing the same Phenomenon in other countries where Anti-establishment politicians are being Elected it boils down to who holds the Government debt because these are the Entities that can move markets now Besides Pension funds the bank of England seems to be the largest holder Of UK guilts truss alleges that the bank Of England contributed to the guilt Market crash by announcing that it would Be selling guilts as part of its rate Hikes prior to her spending plan this is Where things get a bit complicated so Bear with me central banks change Interest rates in three ways by Adjusting the interest rate that

Commercial banks used to lend to each Other overnight by buying or selling Government debt and and by announcing That they will make changes to these two Policies in the future which causes the Markets to move in advance now whereas Adjusting overnight lending rates Changes short-term interest rates buying Or selling government debt I.E bonds Changes long-term interest rates if Central banks sell government bonds it Causes long-term interest rates to rise And if central banks buy it causes Long-term interest rates to fall again The mere announcement that a central Bank will do either can be enough to Move the market now here is where things Get interesting most central banks will Not sell government bonds to raise Long-term interest rates instead they Will just refuse to buy new bonds this Is precisely because selling can cause Volatility however the bank of England Made the decision to sell UK guilts Despite these known risks many macro Analysts have since acknowledged that This was Overkill which begs the Question of whether the bank of England Contributed to the guilt market crash That resulted in truss's resignation the Answer could be that it was just a Coincidence they were just fighting Inflation when the spending plan was Released so yes but it wasn't the only

Factor at play and there's no way to Prove that it was intentional even so This begs a much bigger question if Central banks are some of the biggest Holders buyers and potential s sellers Of government dead does this mean that They can influence government policy and Politicians well the short answer is yes To understand why though we must go back In time to the 1980s but before we hop In the time machine if you're enjoying The video so far be sure to batter that Like button and subscribe to the channel And ping that notification Bell so you Don't miss the next one hold up a second There guy sorry to interrupt folks but I Just wanted to very quickly tell you About the coin Bureau deals page now This is the place where we have put Together some of the very best deals and Promos in all of crypto so you can think Things like exchange signup bonuses Trading fee discounts and money off of Hardware wallets and much much more Besides so if you want to check that out deals is the place to go or you Can just use the link in the description Of this video down below thanks very Much and now back to you guy now after The UK guilt Market collapsed there were Many headlines declaring that the So-called Bond vigilantes had returned Bond vigilante is a term coined by an Investor named ed yini and it's used to

Describe holders of bonds that will sell Or threaten to sell their bonds to Pressure their issuers again this is Because selling bonds causes interest Rates to rise which makes debts more Expensive Ed coined the term in 1980 When large holders of US government Bonds started selling in order to Pressure the Federal Reserve to raise Interest rates more aggressively for Context there was surging inflation in The 1970s and 1980s then fed chairman Paul vulker eventually raised interest Rates into the double digits in order to Fight it the more relevant instance of Bond vigilante activity though comes From the 1990s when large holders of US Government bonds started selling to Protest against then President Bill Clinton's government spending plan Long-term interest rates Rose from 5% to 8% and the spending plan was Subsequently scaled back now the Bond Vigilantes basically disappeared in the 2000s and 2010s this was mainly because Central banks were actively buying Government debt during this time namely After the dot bubble burst in 2001 and After the 2008 financial crisis the Practical effect of this so-called QE Was that kept bond prices high for Reference buying government bonds Doesn't just cause long-term interest Rates to fall it also causes the price

Of these government bonds to rise Logically the Bond vigilantes weren't Too upset about the constant QE as the Whole purpose of their bond investing Activities is to make a profit at least On paper in practice this all depends on Who the Bond vigilantes are if they're Private entities such as Pension funds Then then yes it's in their interest to Maximize profits in real terms this Means ensuring that they're being paid Back with an interest rate that Compensates them for inflation over the Duration of the bond obviously then the Resurgence of inflation since the start Of the decade has led to speculation That the Bond vigilantes are back with a Vengeance in other words large holders Of government bonds are pressuring Governments and central banks to fight Inflation by reducing spend ending and Raising rates again this is because a Failure to control inflation would mean Losses for Bond holders in real terms The thing is that the largest holders of Government bonds are no longer private Entities that are profit orientated the Consequence of all the QE we've seen Since the early 2000s is that public Entities such as central banks are now Some of the largest holders of Government debt in many countries like The UK whereas private entities like Pension funds are incentivized to

Maximize returns public entities like Central banks are effectively Incentivized to maximize Politics as They are effectively a part of the Government and this is where things get Seriously scary particularly for Anti-establishment Politicians take a second to consider That there are 10 times more Democrats Than Republicans working at the Federal Reserve now suppos that an anti Anti-establishment Republican politician Is elected president later this year Then imagine that there is significant Bond market volatility after they Propose a government spending plan at First glance it would look like the Bond Vigilantes are back again selling their Bonds in protest upon closer inspection However things could look very different If the Fed is still running down its Balance sheet or even outright selling Bonds a case could be made that it's Contributing to the market volatility in Fact one could argue that it's the fed's Job to intervene when there's bond Market volatility a mere lack of Intervention from the FED could Therefore be seen as an overtly Political act letting the bond market Crash in order to pressure a Republican President into resigning but the FED Could claim it's just staying in its Lane now this might sound crazy but it

Looks like it's happening in the EU and It could happen again in the UK let's Rewind to the Autumn of 2022 shortly Before Liz truss resigned as prime Minister of the UK Georgia Maloney was Elected prime minister of Italy like Truss Maloney had promised to make a lot Of changes if she took charge unlike Truss Maloney has failed to follow Through on most of her policy promises So far now most assume this is because She's just another career politician Another puppet of the world economic Forum that's meant to give the illusion Of a new populist Uprising but deliver More of the status quo however there's Evidence to suggest that the Bond Vigilantes have been pulling her strings Maloney reportedly decided to tone down Her rhetoric after seeing what had Happened to truss as you might have Guessed Italy is in a similar position To the UK the European Central Bank is One of the largest holders of Italy's Government debt notably it's apparently Been the biggest buyer in recent years This makes the ECB an entity that's Capable of being a bond vigilante for Italy as we just discussed public Bond Investors are driven by politics not Profits in this case the political Imperative for the ECB is a continuation Of the EU as an institution as a Right-wing populist Maloney is a threat

To this continuity of course it could be A coincidence that Italian bonds have Become less volatile as Maloney has Fallen into line with the eu's attitudes Towards things like immigration and the War in Ukraine but it's possible there a Direct outcome of her compliance comply And the ECB will keep your bond market Stable additional evidence for this can Be seen in France where bond market Volatility spiked after president Emanuel macron called a snap election For those who don't know the right-wing National rally party led by Marine Le Pen recently won France's EU elections Foreshadowing a win in the snap election As with the UK and Italy mainstream Media Outlets reported that the bond Market Vigilantes started dumping French Bonds in protest at Le Pen's populist Economic policies after a week of record Volatility the national rally abandoned Many of its key proposals including Political and geopolitical ones as many Have pointed out this much Bond Volatility would typically justify ECB Intervention yet the ECB hasn't lifted a Finger at the time of shooting whereas The bank of England's actions could be Explained by its inflation fight the Ecb's lack of action with France seems To be inconsistent with its easing cycle To clarify the ECB recently began Cutting rates and signaled more rate

Cuts were coming this would Theoretically make the Central Bank more Willing to intervene in EU Bond markets With QE Bond buying this fact is a bit Harder to write off as a coincidence but It's impossible to prove that the ecb's Refusal to stabilize France's bond Market is due to fears of a far-right Government in France as with our Hypothetical example involving Republicans and the fed the ECB can Claim it's just staying in its Lane Funly enough that's essentially what the ECB recently said when asked about the French bond market not only that but France's bond market remains incredibly Volatile while this could be explained By the continually High spending of the Macron government the fact that Financial media Outlets have continued To scream about a Leen government being Bad for bonds suggests politics are the Cause further evidence for this comes From a recent Bond sale by the macron Government the fact that this Bond sale Went smoothly despite bond market Volatility suggests the volatility is Political not economic although the eccb Isn't nearly as involved in French bonds Public institutions are still very large Holders the caveat is that the politics At play in France could be radically Different from what's happening in Italy And what happened in the UK and they

Could be identical to what's about to Happen in the UK and here is where the Real craziness begins UK prime minister Rishi sunak and French president Emanuel Macron recently called elections that Caught most people off guard at first Glance it's not clear why either of them Did this given that they're both Projected to lose upon closer inspection However it appears they know what's About to happen to their bond markets The day before sunak called the UK's Election the IMF warned that the UK Government needed 30 billion to Stabilize its debt burden two weeks Before macron called France's snap Election its debt was downgraded meaning Bond investors are slightly less certain The country can pay its debts with that In mind it starts to look like elections Were called in the UK and France because Both countries are at risk of defaulting On their debts and the parties in power Can do nothing to stop it now this could Once again be a coincidence but it's Evidently a much better explanation than What's been given and it would explain Why both sunak and macron have been Pushing for objectively unpopular Policies think about it by calling an Election when they're down in the polls And pushing for policies that push them Lower sunak and macron have guaranteed That their political parties will not be

Blamed for any upcoming debt crisis in Their respective countries their Opponents will be left holding the bag Now this is exactly what Steve Bannon Trump's former Chief strategist believes Is happening in the UK he believes that The conservative government called an Early election so that the labor party Will win then the guilt Market will Implode labor will be blamed step down And the conservatives will return to Clear up the mess in bannon's own words It's going to be Liz truss times 10 Oddly enough though Bannon doesn't Believe that the bank of England was Behind truss's outing and he might be Right you see QE by central banks hasn't Just made them big enough to be Bond Vigilantes it's also reduced the supply Of freely tradable bonds this is Something macro analyst Western Nakamura Has been shouting from the rooftops for Years part of the reason why Bond Markets are becoming so volatile is Because their circulating Supply is Becoming increasingly restricted as Central banks buy up more and more bonds This is extremely important what it Means is that you don't NE necessarily Have to be a big Bond holder to be a Bond vigilante in plain English you Don't need to be a central bank or a Large pension fund to move bond prices Anymore the restricted Supply makes it

Possible for smaller players like hedge Funds and the like to move the markets In turn this means that the supposed Bond vigilante activity coming from Central banks and other public Institutions could actually be regular Bond holders knowingly or unknowingly Playing the role of bond Vig Atlantic it Could actually be regular billionaires Like Bill Gates changing policy and Pressuring politicians by the same token However the low circulating supply of Bonds means that central banks and other Public institutions could also be Playing the role of Bond vigilantes with The smallest of changes even the Smallest action or smallest inaction Could be enough to move Bond markets Which is truly wild if this is indeed The case though then it will inevitably Result in central banks having to buy up All the government bonds in circulation As that will be the only way to control Bond market volatility in fact they Could be forced to do so precisely Because if they don't then they will be Accused of being political put Differently central banks will Eventually have to comply with the Politics of whoever is in power because If they don't the politicians in power Will claim the central banks are being Political and force them to comply which Will paradoxically make them political a

Self-fulfilling prophecy come to think Of it the fact that central banks may Only intervene in bond markets once They've been forced to by the political Party they're potentially protesting Against could cause a delay in the Initial response so this brings me to The big question of what comes next and What this means for the markets well in Case it wasn't clear enough it seems That what comes next is a government Debt crisis of some kind with France and The UK potentially leading the pack Canada could also be on the list if it Gets a snap election too FYI Canadian Government debt is also at risk of being Downgraded if that happens and we see a Snap election in Canada that will be Further evidence that snap elections are Being held so that existing politicians Dodge the debt bubble bullet and Potentially weave their way back into Power after the shootout this ties in to What it means for the markets and if You've been paying attention you'll Already know the answer the only way to Contain bond market volatility at this Point in time is for central banks to Buy more and more of the government Bonds in circulation but it looks like Not all of them will comply for those Unfamiliar central banks are supposed to Be apolitical they're supposed to act Independently of the government as I

Mentioned a few moments ago politicians Will eventually have to force central Banks to do whatever is needed to ensure The government remains funded if they Don't do it voluntarily this will be Easy to do in countries that have their Own central banks like the US and the UK But it will be very difficult to do in Countries that have shared central banks Like France and Italy that's because it Will be hard for one EU country to force The ECB to comply with its demands given That there are other member countries What this means is that the political Forces in the EU could work the other Way around in the bond markets public Institutions like the ECB could be in a Position to put pressure on Euro Countries by engaging in the bond Vigilante type Behavior it already seems To be exhibiting with France and Italy In turn this means that it will be very Difficult to have genuine political Change in European countries that use The euro the ECB will just refuse to Provide the BuyBacks required to keep Bond volatility low in the countries That refuse to comply with the EU again It will appear apolitical but it will be Very political the only way out for such Countries could be for them to go off The Euro and launch their own currencies But that would cause even more Volatility and risk a total breakdown in

Social cohesion alternatively these Countries could adopt other currencies That give them more fiscal Freedom Regardless of the path however the Destination is the same central banks Will need to buy all the government debt Because at the end of the day it doesn't Matter who is in power the governments Will spend and the promises being made By politicians to buy votes means Spending will keep increasing the good News is that this will be very bullish For risk assets and stores of value Which will capture most of the liquidity The bad news is that this is going to Result in misallocation of capital Unlike anything we've ever seen Right-wing and left-wing politicians Will spend trillions in the name of Their ideologies all this will do is Increase wealth inequality and political Polarization which will result in even More radical ideas on how the infinite Trillions printed by the central banks Should be spent the result will be an Enormous loss in purchasing power of Fiat currencies and people being Desperate for alternatives governments Will present their Central Bank digital Currencies as the solution and many will Probably try to impose them in the name Of the greater good with a bit of luck However alternative Technologies like Cryptocurrency will be developed enough

To provide an outlet for those looking For Financial Freedom for everyone else Their wealth will depend on how much They comply with the demands of whoever Is in power as is currently the case in Places like Russia and China buckle up Because the trend is heading west and Some would argue it's already here so Let's hope we find an alternative ASAP and that's all for today's video so If you learn something new be sure to Hammer that like button if you want to Keep learning subscribe to the channel And ping that notification Bell and if You want to help others learn about the Growing government debt bubble and how It will burst be sure to share this Video with them as always thank you for Watching and I'll see you in the next One this is guy signing off [Music]


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