Stansberry Research, Released on 2/10/23

“I think there’s going to be a crisis this year. I don’t think there’s going to be a soft landing, I don’t think there is a disinflation. I think there’s going to be a hard landing,” warns Lynette Zang, chief market analyst for ITM Trading. Zang tells our Daniela Cambone, “We’re in the middle of that transition from LIBOR — that interest-rate benchmark —in the U.S., SOFR. And they’re getting some pushbacks particularly from [collateralized loan obligations] and I don’t think they can make the transition.” Zang explains. She continues by saying that “there are 610 trillion notional value contracts that have to be converted and even with their mathematical fixes, they cannot get the SOFR to show interest rates the same as the LIBOR. That impacts all the contracts that still have LIBOR embedded in it.” But how could this actually impact everyday people’s life? She further says that it will make the generated income from bonds or other contract-based debt instruments much smaller. “Student loans, credit cards, mortgage statements, car loan. All of the sudden, they look different.” Zang also shared that she saw the central bank digital currencies (“CBDCs”) are becoming more prevalent worldwide and that China has demonstrated its leadership in “showing us the way of getting adoption of the CBDC and how to control a society.” In terms of crypto, Zang said bitcoin will remain popular because Wall Street has embraced cryptocurriences more recently. But she said she would not hold value in it.

00:00 Why are central banks buying gold?
3:00 China’s gold reserves myth
6:02 New monetary system
7:14 What does the U.S. plan to do?
9:53 Are new central bank digital currencies coming soon?
10:55 Will 2023 be the year when CBDC be introduced?
13:30 Libor to SOFR
14:20 How does a crisis impact people’s everyday life?
15:58 Chinese spy balloons
18:18 U.S.-China war
19:21 The State of the Union address
21:28 What will the Fed go from here?
23:25 Will 2023 be a different market for gold?
27:07 Wall Street has adopted bitcoin

Lynette Zang has held the position of Chief Market Analyst at ITM Trading since 2002. Ms. Zang has been in the markets on some level since 1964. Her mission is to convert financial noise into understandable language. She has been a banker, a stock broker and studied world currencies since 1987. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community in order to survive and thrive through the hyperinflation she sees in the near future.

  china, federal reserve, gold, inflation, investing, LIBOR