I developed my mantra many years ago, for all the things that we need to be ready for and prepared for so that we have as minimal a change in our standard of living as possible. With all the chaos in the world, the time to get prepared is now! I’m going to go through the whole mantra with you in this video and show you how it all relates.
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You know, there’s so much chaos in the world and that’s why I’ve developed the mantra for all the things that we need to be ready for and prepared for so that we have as minimal a change in our standard of living as possible. And I’m gonna go through the whole mantra with you today and show you how it all relates, coming up.
If you think that the world is headed in a direction that makes you a bit concerned for the future, and you’d like to be as self-sufficient and independent as possible, then you’ve come to the right place. My name is Lynette Zang. Now it’s time to go Beyond Gold and Silver.
I’m Lynette Zang, Chief Market Analyst for ITM Trading and a proud prepper. And as you guys know, it’s my work for ITM Trading that led me to become a prepper because there is not one doubt in my mind, but that we are at the end of this currency life cycle and not just the dollar, it’s just the big Fiat money. So let’s just begin.
Because frankly, there’s so much chaos in the world. It should be obvious to everybody, but being secure really is everything. And that’s what Beyond Gold and Silver is all about. So I think that this is really interesting because if you are dependent on any government for your Food, Water, Energy, etcetera, and they say, no, you know, people ask me what’s counterparty risk? This is counterparty risk. So, wow. The other day, Russia went ahead and signed, Russia and Ukraine signed a UN back deal to resume grain exports via the Black Sea, which is very good because we all know what’s happening to food insecurity on a global basis. The deal is significant for global food supplies, but also as it’s the first major agreement between the two sides. Well, isn’t that fabulous except oops. Well, they admit that missile strikes on Odessa, the Seaport, despite grain export deal with Ukraine that happened 24 hours after they signed the deal. Russia has claimed responsibility for a series of missile strikes that hit the key Ukrainian port of Odessa, the day after Moscow signed a deal, allowing Kyviv to resume grain exports as part of efforts to alleviate a growing global food crisis. Well, does that mean that the deal is still intact? Well, we hope so because they’re ready. Ukraine is ready to start shipping grains, but we’re not really sure that that’s what’s gonna happen. And at the same time, Russia’s Gazprom gas cut to Europe, crushes hope after a grain deal. So everything is cattywampus. The world is really in a very uncertain place right now. And we have to know that Russia’s move to keep the world on edge. Okay. But central banks with their now “no more forward guidance.” We’re just going to do it on a month-to-month, moment-by-moment basis that keeps the markets on edge. So the whole world is on edge and what’s gonna happen? I don’t know. But what I do know is I feel good about being as prepared as I am so that whatever the outcome is, I’m okay, my family’s okay, my extended family’s okay. And water too, huge issue. Food, Water for the U.S. State of Texas, it’s record low temperatures in February 2021 revealed the fragility of its water plants, creating a snowball effect of power shortages, water system, breakdowns, and widespread risks to health and food security. The livelihood of rural Texan communities highly depends on outdated and poorly maintained aquifers. And last year’s crisis was a wake up call for both local and national governments to take immediate action and rethink the state’s water systems. I am so grateful that, you know, whether it’s my home in Phoenix or it’s my bug out location. I have rain catchment so that I’m not as dependent. And you know, in the city. Yes. I’m part of the city system. If that stops, though, I have five ponds for rain catchment, and I have a filtration system. We’ll be okay. I’m saying you just need to make yourself as independent as possible for not just food, but also water and energy.
Europe braces for potential gas crisis as historic heat wave boosts demand. And we’ve got Russia cutting back even more, a full break with Moscow’s gas is not out of the question. The country’s already cut its gas exports to several European countries. Last month, Germany, the region’s biggest economy, declared a gas crisis after Gazprom, Russia’s state gas company, slashed exports through the pipeline by 60%. Well, now they’re down to 20%, right? Russia steps up gas spat with another cut to Nord Stream flows. Russia is further curbing natural gas blows on the Nord Stream pipeline just days after bringing the link back from maintenance, escalating European concerns over supply crunch this winter. Now wouldn’t you like to not have that be an issue for you? Gazprom will cut flows via the link to Germany to about 20%. So they were complaining at 60%. What do you think they’re doing at 20%? And if you are dependent on that, and that starts Wednesday at 7:00 AM Moscow time?
All right, let’s look at security here. After decreases in 2020, both property and violent crimes are up in 2021. So you see why I’m saying that have developed my mantra because of these typical things that actually happen. This is property and casual property crimes. And this bottom one are violent crimes. Now the property crimes are at the same level that they were January of 2020, but violent crimes are up. You need to make sure that you are secure.
Argentinians, fall back on barter economy to scrimp amid financial crisis. So what’s barterable? Well, silver is the easiest barterable tool because it’s the most recognized and it’s universal. It doesn’t have a shelf life. And since it’s universal, that means anybody can use it and they can use it to barter with something else. Whereas if I have strawberries and I want your blueberries, but maybe you’re allergic to my strawberries or you don’t want strawberries. I have to go find somebody that has what you might want to barter with. And those strawberries and blueberries both have a shelf life. Silver has no shelf life, but anything physical, anything physical is barterable any talent or skill that you have is barterable. So you need to be in a position where, you know, let’s face it. If the grid goes down, things are gonna get very, very local. What do you have to barter with? I have chickens. Therefore I have eggs. I wouldn’t barter with my chickens, but I’d barter with my eggs.
You wanna be in a position that no matter what you’re okay. Wealth preservation, even though I talk mostly about this on ITM Trading, but public pensions face worse funding decline since the great recession and the funding ratios drop, right? So if you’re dependent on a pension to live, you better be properly diversified and have some physical gold in there as well, because you need to have, you know, if everything goes up, then what do you have to start and grow your wealth again? You don’t have anything. If everything you have is in the Fiat money system. And the Fiat money system goes to zero, which is the most likely event. So you need to have some gold and silver. So you have something to work with and rebuild it.
But I really wanted to talk mostly about this one on the community today because we’ve talked and you’re probably familiar with the banking crisis that’s happening in Henan in China, from when they froze people’s ability to withdraw from their savings accounts and their checking accounts. Well, about a thousand people had gathered to protest. What I wanna show you is the power of coming together in community. Because in China, you don’t really get very many protests, though they’re getting more and more. I’m gonna be talking more about that next week, but videos showed the protestors lined up in rows in front of the bank, holding banners that read no deposits, no human rights. So one can trigger the other. When people become hungry and hopeless, they do make choices. They would not otherwise make. And here you have a country that really strongly against this, and now you’re having more people to come together in community and protest. This is so interesting to me because China really has a lock on how to control their citizens. Are they losing control? We’re gonna watch this story evolve, but we are against Henan government’s corporation, corruption and violence. Henan banks. Give me my money back mm-hmm <affirmative> but the community is coming together. That’s the importance of community as well, because you have different people with different skill sets. It’s important.
But let’s talk about shelter for a minute, because I think it’s probably pretty obvious? Maybe not obvious to everybody yet, but that the real estate market has definitely topped out and is going back down this hill. Here’s what’s happening with apartments and warehouse deals start to sputter as rates, sting, and bonds. So the issues of debt on commercial mortgage backed securities slowed this year. Wow. Look at how much it’s actually slowed. That’s pretty significant. And that’s, what’s funding all of this massive amount of building that we’re seeing, but there’s more to this because about 22.5 billion of maturing commercial mortgage back securities, CMBS needs to be refinanced this year followed by 35 billion in 2023. Well, what you’re looking at here are the mortgage back securities held by the fed, and they say that they’re going to run off that balance sheet. And this is a longer term picture. So this goes back to 2008 and they started really buying the mortgage back securities in 2009. This is when they tried to sell ’em off the last time. Didn’t last very long. I don’t think it’s gonna last very long this time, either. This is a more current pic. That was a to overall picture. This is a more localized picture, and you can see how in 2020, they started buying them and see how rough it is and see how that has just flattened out as they’re preparing to sell them into this market. Do you see the problem with it? So there’s not as much supply coming on, but there’s a lot that needs to be rolled over much higher interest rates. And then the Fed on top of that saying that they’re going to run off their balance sheet. Granted, it’s just gonna be a little bit to begin with, but they can’t do it. I’m just telling you right now. I said it before, when they tried to do it, it’s going to be very, very short lived. Can you see how all this is setting up to the hyperinflation though? For agency debt and agency mortgage back securities, the capital initially be set at 17.5 billion per month. And after three months will increase to 35 billion per month that they’re gonna sell off. They gonna do it? Well, they’re gonna try. They kind of have to try, but real estate prices are sinking. Deals are collapsing and lenders are tightening their fists, even commercial property, darlings like apartments and warehouses where values sort through the pandemic are losing steam as interest rates climb. Deals by clients for an industrial property in Portland, Oregon and apartments in Denver fell apart as rates rose in May. In June, a buyer withdrew, nearly 18 million offer for a new apartment building near Los Angeles. A backup offer came in this month for 10% less. So we haven’t really seen a big shift in prices down yet, but it has already begun. So maybe you’re sitting there and you own a REIT and you’re going well, REIT’s are safe, right? Real Estate Investment Trust. That’s a REIT yeah, not so safe. I’d be looking at those terms and seeing if you can’t get out of it, you might not be able to, because we’re witnessing in real time, the re-pricing of assets in the multi-family sector. I would say, we’re gonna be seeing all of the pricing get reset here, right across the board in real estate. We’re seeing transactional volume fall off the cliffs as buyers and sellers find a new equilibrium given where interest rates are. Now I’ve said this before, I will say this again, in Japan, which is what I think it’s gonna look like. Residential real estate dropped 85% commercial real estate dropped 95%. If you’re sitting in your holding gold, it’s gonna flip flop here’s real estate. Here’s gold. It’s gonna flip flop. You’ll be in a position to take advantage of what’s happening because in reality, the terms have changed. Yes they have. And even in homes, the the builder sentiment home builder sentiment has plunged. So definitely things have changed. In addition to the weakness in the new home market, evident in the NAHB data sales of existing homes have fallen for four consecutive months through May and data due on Wednesday from the national association of realtors is expected to show that decline continued in June with sales pacing at the lowest, since June of 2020 that’s before things kicked off.
So things are shifting like sand beneath your feet. You need to be fully prepared. No doubt about it. So if you like this information, make sure you subscribe, leave us a comment, give us a thumbs up and share, share, share. And until next we meet, please be safe out there. Bye-bye.