Name: It Started: Trump Will Reset The Fed - Gold & Silver Crashing
Uploaded: 2026-02-03T18:19:50.000Z
Duration: 12 min 10 s
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Donald Trump is about to reset the Federal Reserve.

This is the biggest change that is going to happen to the Federal reserve in its 112 years history.

Reflexive pronouns

Either it's going to break the US economy or it's going to break the Federal Reserve itself.

Donald Trump just picked Kevin Warsh as the new chair of the Federal Reserve.

On one side, it is impossible to imagine that Donald Trump just picked a person that is not a yes man.

Because Donald Trump wants to see lower interest rates.

That's why he has been attacking Jay Paul for the last year.

On the other side, if you look at the track record of Kevin Warsh, that's not exactly what Donald Trump likes.

His track record is going to cost the US Government hundreds of billions of dollars.

And I don't think Donald Trump is ready to see how he's going to spend almost a trillion dollars more money just to pay the interest on the US debt instead of continuing his agenda.

That's why gold prices are falling down, silver prices down.

It seems like it is going to be a completely new era for the US dollar.

There are essentially two main ways the Federal Reserve controls the economy.

Historically, the Federal Reserve has controlled the entire economy by raising or lowering interest rates.

For example, back in 1980s, interest rates have been as high as 18 or 20%.

Hiking rates really work to either bring down inflation or boost the US Economy because that' what makes access to capital either very cheap or very expensive.

And if you look at any business today, especially when we talk about large, huge businesses, all of them rely on debt.

So if you can actually borrow money at a cheaper price, suddenly you see the economy being flooded with hundreds of billions of dollars.

That is going to boost the demand and is going to shoot that economic cycle to cycle faster and grow faster and vice versa.

Which is why Donald Trump is so mad at Jay Paul that why can't you, for God's sake, just lower down interest rates so that I'm gonna see my economy growing tremendously?

But on the other side, that much demand is easily going to cause high inflation.

But there is a second way to control the supply of money, and

this is far more important, especially since 2008.

In 2008, the entire Federal Reserve completely changed.

After the 2008 financial crisis, the Fed fundamentally changed the system.

And now the Federal Reserve is just subsidizing the US Government.

Part of the reason that the US Government has trillions of dollars in debt is because there is someone else that is literally just printing money and giving it away to the US Government.

So if the US Government wants to raise a few trillion dollars, the Fed can always print trillions of dollars.

Buys the IOU that the US Government is issuing, and

that's how the government is raising so much money.

And it's very clear at the balance sheet of the fed, the in 2008, the first quantitative easing happened.

And since then you can see that, yes, at times the Fed tried to shrink the balance sheet, but

overall it has grown since then from less than a trillion dollars to as much as $6.5 trillion.

And here is where Kevin Warsh's perspective comes in.

He made it clear that the Federal Reserve needs a regime change.

I think that inflation's going to still be well above 2%, because that's what the Fed's delivered.

I think until there's regime change at the Fed, until there's new people running the Fed, a new operating framework, they're stuck with their old mistakes.

And the fact that the Fed is intervening in the US Government and subsidizing the US Government by buying massively US Debt is something unprecedented as the only reason or the fundamental reason that is causing so much inflation in the economy.

So if we suddenly reset the Fed Federal Reserve and bring it to pre 2008 level, where the Federal Reserve is no longer going to buy so much US Treasuries, you're not going to see any kind of inflation.

And that's the difference between Kevin Worth and Jay Paul, because Jay Paul has always been pro quantitative easing.

He was picked back in 2017 just when he started quantitative tightening.

he prints more money and buys more US Treasuries than anyone else in the history of the Federal Reserve within a very short span of time.

And according to Kevin Worth, that's one of the main reasons why the United States has massive inflation in 2021, 2022, and

we can see the effects of this high inflation even until today.

And that's why the Fed needs a regime change.

My colleagues, including Chairman Bernanke, who I mentioned, for whom I had great respect as a war fighter, he and my colleagues at the Fed decided that we should keep on doing it.

You can even say that the 2008 financial crisis made interest rates completely irrelevant.

Why lower interest rates when the Fed can subsidize the entire government's debt?

So the US Government issues a piece of paper called a US Bond or a US Treasury.

It's called the US treasury because it's issued by the Department of Treasury.

And then the Federal Reserv simply buys that bond.

Whenever that bond expires, the Federal Reserve is going to refinance it.

So the US Government pays back the debt to the Federal Reserve.

The Fed will check that money, buys back the exact same bond, giving that money back to the US government.

So it turns into this never ending cycle of the Federal Reserve giving money to the US Government, increasing massively the supply of dollars in the economy which is causing that much inflation.

If you abolish this system and go to the pre 2008 status, then sudden supply of dollars in the economy is going to shrink which is going to make the US dollar substantially more stronger.

They're like, are we really going back to the pre 2008 level?

Is Kevin Warsh really going to shrink the balance sheet to less than a trillion dollars within the next five to 10 years?

In fact, in one of the conferences last year he mentioned that if we are going to offer investors a framework to how we are going to shrink the balance sheet of the Fed, we are going to win the confidence of investors.

Which is why you see that silver prices instantly crashed from $118 to as low as $84.

Gold prices went down as well to less than $5,000.

We know how much gold is there in the world and we know how much US dollars there in the world.

We can't control much the supply of gold on one side, but

we can certainly control the supply of dollars on the other side.

And the fact that gold price so fast is because we've been dumping so much US dollars into the economy.

Now if we're gonna start the process of quantitative tightening of pulling that money out of the economy and telling the world, dad, you gotta trust the US Dollar because US dollars are not going to be thrown just like they have been since 2008.

Donald Trump has said that Kevin Warsh wants to lower interest rates.

I did not discuss it with Kevin Warsh, but

I've heard multiple times that he wants to lower interest rates.

I've been following him and I don't want to ask him that question.

Probably, probably would be allowed, but I want to keep it nice and pure.

I've been watching him for a long time and it's very difficult right now to be confident what exactly Kevin Warsh is going to do.

He joined the Federal reserve back in 2008, and

he was through the toughest periods in the history of the United States when the United States was trying to bail out the largest banks in the country.

Then in 2016, he becomes the economic advisor to Donald Trump.

So Donald Trump personally knows him very clearly, and

maybe they have a very similar perspective about the US economy.

And then in 2017, when Donald Trump was picking his pick for the new chair of the Fed, he was one of the people that he was actually considering.

So maybe instead of Jay Paul, we might have had Kevin Warsh.

And if, if Kevin Warsh was picked instead of J.

Paul Back in 2017, maybe in 2020, we would not have so much quantitative easing that the Federal Reserve has done in 2020, increasing the balance sheet to almost $10 trillion from about $4 trillion.

But nonetheless, now he is finally the new chair of the Fed in 2016.

So will Kevin Warsh actually lower interest rates and shrink the balance sheet?

Or instead, he's actually going to do what Trump is saying, lower interest rates, but

close your eyes on the balance sheet and keep it the way it is?

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It Started: Trump Will Reset The Fed - Gold & Silver Crashing

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