🚨BREAKING: Did The Bank Of Canada Lose Control? Interest Rates EXPLODE!

Hinzugefügt: 2026-05-15

[00:00:01]Is the Bank of Canada losing control of the bond market? The answer to that question is yes. And they already lost control of the bond market a long time ago. So there are major issues going on right now in financial markets. Silver and gold are selling off. The stock market's selling off. Interest rates are absolutely exploding. So the question becomes why on earth is this happening?

[00:00:29]And why on a Friday as well? Why why not on a Monday, guys? Why always on a Friday? So you guys know if you get a live stream notification from me on a Friday, then some real [ __ ] is going down. And that's the case today, but there is a new circular trade in private credit. So, I've been talking about private credit and this could be private credit having pressures on the financial system essentially which are displaying themselves in the stock market and pretty much a pan selloff that's happening when you've got silver and gold that are selling off as they are. I mean, silver's down like 8% and who knows how long this is going to last.

[00:01:13]That's the thing. It could be done by the end of the day and back to normal on Monday or it could continue and just be a start of an unraveling. But we already saw this massive kind of tanking of silver and gold that happened which I covered just a few months ago essentially. And today it's down again substantially. Now I'm still long-term bullish on silver and gold. Always will be till the day I die. quite frankly, it's the only real form of money. But in the short term, it could definitely go down in price. When you look at the charts, they look pretty ugly. But I want to draw your attention to this because I saw this from the FD and it just made me think of like all the derivative products that were created in 2008 to because now they're trying to all shield themselves against the risk that they created. So I mean they're selling all these products. The latest one is called an SRT. They've always got these esoteric names just to confuse you, but essentially they're trying to sell all these products to try and offload risk. But essentially, the risk is going somewhere. Somebody is taking that risk and it's just going to be a game of musical chairs again, just like it was during the financial crisis. Now another thing that is really important is what's happening with the bond market because you had US PPI which came out and you can see by this chart like this is clearly heading into the second wave of inflation that's the US Canada exact same thing is going on in fact way higher 7.8%.

[00:03:01]And what you have to realize, you might think, "Oh, this is just producer prices. Just forget about it. Inflation is lower than that, Luke. Just forget about it. Inflation is like around 2 3%.

[00:03:13]Nothing to worry about there." Well, somebody is paying that massive spread.

[00:03:19]Like, if inflation is 2%, which is [ __ ] we all know it's not, and the actual inflation that the producers are paying is 7.8%, 8% which is probably well over 10% then what's happening to that cost? They're not going to eat it.

[00:03:35]The CEOs are not going to cut their bonuses and cut their salaries just to keep your salary the same. No, they'll just get rid of workers. That's what will happen when margins get compressed.

[00:03:47]And that's exactly what's happening right now because there's $3.2 trillion worth of debt in Canada. And that's what people need to realize about inflation. There is a whole different dynamic to the 1970s. Although this is very similar in the in the in the way that there's like I mean there was an embargo back then in the 1970s. It's very similar to what's happening with energy prices today. But the difference is the debt levels are astronomical.

[00:04:22]not just for households, for private businesses and also for governments too.

[00:04:28]And the reason why I focus on Canada is because you look at Canada's bond market as well, the yields are actually less than like if you look at Germany or you look at the US or you also look at the UK where you've got the long end of the bond market where it looks like the Bank of England is losing control. Canada is actually substantially lower. So why is that? And it's because Canadians are so in debt. And it's not just Canadians, it's also the government. So it's the government, private businesses, and also Canadians. One of the most indebted nations on earth. And that essentially is why the bond market is saying inflation is going to be lower than the US. I mean, it's absolutely crazy, but a lot of people don't realize it. And I want to go through this viral video real quick. I wasn't going to do it, but then all this [ __ ] kicked off and here we are doing a live stream on Friday because I posted this on X with my thoughts of it.

[00:05:29]But I've been talking about this for years. We're going to go through what this lady's saying. A lot of people say, you know, just go, she can just go back to her own country, which is just an idiot response to what this is really about, which is the debt slavery. And that is the main issue. So, let's take a listen to some of this lady's thoughts here.

[00:05:50]>> So sick of this [ __ ] I have no quality of life. I somehow allow people to convince me that, you know, a good life and a successful life is owning a home, owning a car, you know, having this career and, you know, taking out student loan to, you know, um, advance that career only to find out that when you do all of these things, you become a slave.

[00:06:13]>> Yeah.

[00:06:14]You acquire all these material things that the bank owns and all you do is live with the debt.

[00:06:20]>> And you know, I was talking with John Flynn just a couple of days ago about this as well, like debt slavery essentially because that's what it is.

[00:06:29]Because it may not be like you think, which is you'll own nothing and be happy. It might actually be you'll own something and you'll be very unhappy because really you'll just be tethered to the bank for the rest of your life.

[00:06:46]And that's really what they try and push. They want everybody in debt because then they're easier to control, easier to manipulate. And that's exactly what they're doing as you've got like Signal that is now potentially pulling out of Canada, NordVPN, probably all the VPNs. I mean, it's worth mentioning at this point that ExpressVPN has been supporting this channel for years and years, and there's an affiliate link in the description if you're after a VPN, but they might be pulling out of Canada as well at this point. Who knows?

[00:07:18]Because they actually respect your privacy, and Canada doesn't. So, these businesses would rather abandon a whole market than actually deal with giving away all the privacy information of their clients. I mean it's beyond Orwellian. Let's take a another listen to this >> debt of trying to pay for it. And when you realize you have no quality of life.

[00:07:41]This is May. It is so freaking cold outside and you know you can't get to enjoy your life. So even the things that you're buying to say yeah I've accomplished these things. You're not getting a chance to enjoy because you live in people workplace. You're like a slave to this thing. It's the worst and you're not enjoying your life and you're surrounded by all these.

[00:08:02]>> The worst thing is when people realize this too late in their life. I mean, that's the real takeaway here for me is people realize this too late and they they've already wasted their whole entire life. There's no way that they can break free from it anymore. But, you know, even then, people are still doing it. I mean, so many people are leaving Canada and we've been covering that for years and years on the channel. And it's not just people either. It's businesses and it's also venture capital as you can see here. So near zeroing at speeds never seen before comes from CBC watcher. Venture capital investment in Canadian growth stage firms fell to near zero in latest quarter report says. So, I mean, everybody can just put their elbows in the air for that one. I mean, it's just absolutely insane. And this is what happens when a bankster gets elected. I mean, this is exactly what happens. Melissa here putting on X about Signal, pulling out of Canada. I mean, this is completely insane. I mean, WhatsApp won't be pulling out because they don't respect privacy anyway, so they'll just be staying, so don't worry about that. But Signal obviously was founded on the back by the co-founders of WhatsApp. I mean, it's a really interesting story if you haven't like looked into Signal and why it was founded and created. Yeah, I mean, it's incredibly interesting story there. But again, just how dystopian is Canada? And you've got Mark Carney talking about carbon credit markets. And I mean, we've covered this before. It was a conspiracy theory. Then they were talking about it at the World Economic Forum back in 2021 or 2022. And now they're talking about it. It's not going to be for consumers.

[00:10:03]Go, but it's going to be for businesses.

[00:10:06]And essentially how long will it take for it to then be for consumers as well?

[00:10:12]Take a listen to this.

[00:10:13]>> And that brings me to one more point which I give question comes from Bloomberg and markets and just reinforcing the need to have a a true market, a true carbon market, carbon credit market in this case, not an offset market but a credit market uh in Alberta. And over time we would like to see uh that developed and other provinces have the option of joining if they so wish. And that brings can you imagine just how inefficient that market would be for a second because I mean the government does nothing well. Just look at the legalization of cannabis as an example. I mean that was just a joke.

[00:10:51]And now more people use the black market because it's cheaper because they made it so expensive because they're just so dumb. Like the government really doesn't understand. But Mark Carney, he understands and that's the real scary thing. He's just saying all this stuff, but he knows on the back end what's really happening and he's pushing his agenda that he's not backing down on.

[00:11:13]And that's the thing. You've now got this central bankster that is in charge and who knows, Black Rockck CEO might be the next one that's going to be in charge of of Canada because who knows like Canada is so far off the path. I don't blame Alberta for wanting to separate from Canada because the whole voting and political system is just a total mess. It's honestly a total mess to people who just think, "Oh, if we just elect the same party that was in before 2015, the Conservatives, and that will magically undo and fix everything, you need to go look at the UK because the UK's been going through back and forth with that for best part of two decades. And now they're finally getting to the point where there's sick of that.

[00:11:59]So save yourself a couple of decades of [ __ ] and actually start focusing on building something that is for free markets that is for libertarians instead of all these just status quo parties essentially that are pushing the same agenda. And at the end of the day the leaders of the parties are politicians.

[00:12:20]They're career politicians. They're not business people. You got to look at their backgrounds.

[00:12:25]It's institutional capital selectively moving into distressed areas of the condo market where developers are struggling to clear inventory. So I mean it's interesting that this is happening with obviously Black Rockck and what happened there. You've got Blackstone.

[00:12:42]You've got all these firms that have established themselves in Toronto and they're just eyeing up the condo market.

[00:12:49]if they can get a big enough discount on it and make the numbers work, maybe they're going to make it work. But in a declining rent market, I don't think that's going to work or sell to their investors. And that's really the point.

[00:13:04]But it depends how low those prices go and what the builder is prepared to sell it at. I mean, even if they buy in bulk, they can't sell at a loss at the end of the day. And then mortgage holders are shaking in their boots right now if they're coming up for renewal because I mean you basically getting like a breakout on the five-year government bond. So you're going to have mortgage rates that are going to adjust even higher. This is going to the high. So you're now talking about the highest level in rates for the 5-year since 2024, November 2024.

[00:13:42]So, you know, 12 to 18 months ago and you have to remember all the interest rate cuts that have come in between that. So, obviously the Bank of Canada has been aggressively cutting rates and you've got now the five-year which is back to what it was in 2024. So, I mean that shows you like the Bank of Canada, they don't control the bomb market.

[00:14:06]People think they do. People don't think that on this channel because they know.

[00:14:10]I'm showing you right now. They're not controlling it because the Bank of Canada, they didn't hike rates. And since this [ __ ] kicked off in the Middle East, you've had it go up 65 basis points. So 65% on the 5-year. So this is baking in like future inflation. Essentially, more inflation is getting baked in because this is just dragging on and on and on.

[00:14:35]And markets are getting fearful of that as well because I mean if gas prices say stay high it's going to go into other goods feed into other areas of the economy which isn't going to be good unless they start printing stimulus and they're already printing stimulus in certain areas. It's just they're not doing it blanketly yet. But that could be coming. That could be coming. And it will come in the form of like subsidized gas prices and basically maybe giving you credits for gas, like saying, "Okay, we're going to give you a relief check.

[00:15:11]Everybody's getting a $500 relief check to help you with gas prices." And you know where's that coming from? Oh yeah, we just printed it. And by the way, we kept like5 million for us. So you're getting $500, we're getting $5 million.

[00:15:28]And where does that money actually end up in the case of high oil prices? It goes to the oil companies at the end of the day and the price adjusts. It's just you have to take it to an extreme to realize that. Obviously, if you're just cutting it 5 cents a liter doesn't really make an a difference that you'd even notice. You've got gold here that is down like over 2%. But, you know, this has kind of been relentless now. a lot of selling pressure on gold, which is interesting because, you know, that is a kind of thing that that I look at, especially when gold is selling off and think, well, are people selling that because it's the only liquid thing on their balance sheet and because they're enduring a lot of private credit losses.

[00:16:16]I mean, it's kind of insane because if we go back to that FT article here, I mean, it's hilarious. like private capital already has investments in SRTs tied to private equity capital lines and other corporate credit. In recent weeks, banks have sounded have have sounded out investors about a variant of an SRT to offload risks tied to data center debt.

[00:16:44]Now, that is key there. data center debt because you know the AI bubble. A lot of this private credit has funded the AI boom and you know I'm not somebody that doesn't believe in AI. I use AI. I think AI has massive potential and we're only just starting to see what it can really do. But just like the dot bubble and the internet bubble, the p the private credit bubble and the AI bubble is very similar to that. You've got lots of companies, lots of malinvestment, lots of companies that make zero money that have no real product. I mean, there's so many BS companies. It's just unbelievable. You've got silver that's down over 8% today. So, you can see it's the biggest plunge that silver has took in a while here. And it's just kind of been stuck in this range as you can see here since February. Now, it really hasn't done anything. You've got the Canadian dollar that is also just on a relentless decline at the moment. You can see it's just like I mean it's recently like it just goes into sell-off mode and like it's relentless. I mean it pretty much just goes straight down with no pullback. I mean you couldn't look at this. Look at this. This is just like a perfect trend almost like it's just going straight down there. But, you know, it's really interesting what is going on with the Canadian dollar because you compare it to like the Mexican peso and other currencies and it's even worse. It's even worse. I recently did a video on that to show that because the Canadian dollar collapse is far worse than people think if they're only looking at the US dollar. You've got crude oil. I mean, it's not at the highs right now, but it is up on the day. WTI is over $100 a barrel and Brent is over $105. It's getting up to $106 a barrel right now.

[00:18:47]You've got diesel prices that are up today, but again, not at the highs.

[00:18:52]You've got gas prices that are up today, but again, they're not at the highs at the moment. So, there's something definitely going on there. You've got the DXY that is surging upwards. Again, this is like another crisis indicator.

[00:19:07]When everybody's going to the dollar, it's not because they love the United States. It's just because it's the world's reserve currency. And when banks and everybody needs liquidity, they need US government bonds. So then they're exchanging currency for US dollars and it puts pressure on the currencies like the Canadian dollar, the pound, many other currencies. So you're seeing the DXY that is going up, but again, I mean, it's nowhere near like at crisis levels.

[00:19:38]I mean, it's still down year on year at the moment. So, it's not exactly surging, although like in the recent days, it has really started to tick up here. And as for the interest rate predictions from the Bank of Canada, we'll have to look in the live again next week to see what's going on with this, but pretty much it's exactly the same thing. They're predicting a 25 basis point hike on the 2nd of September and then one on on December 9th as well, taking the rate to 2.75% by the year end. But this is all subject to change. If this drags on, the bond market may steepen even more, which means that they may do even more hikes or it might go the other way. There might be some peace thing that happens.

[00:20:28]I mean, we can all freaking hope for that, right? Because nobody nobody at all in the world wants to see this crap going on especially with gas prices and what will happen to the global economy if this is prolonged especially western economies because again that debt load that they have they have more debt than the size of their entire economy and that really pinches them when interest rates are rising. So it's like this pushpull dynamic. interest rates go up, but because there's so much debt as well, that is fighting to actually bring inflation down. Because when interest rates go up and that basically means inflation is going to go up, it means that you basically got consumers on the other end of that who have less money to spend. And if prices are going up as well, they've got even less money to spend. Of course, unless you get stimulus. Now, the the big thing to watch is not Canada here because they don't really have a global impact on the economy anymore, but it really is the US. watch the largest economy because if Trump comes out with stimulus, which he probably will at some point because the midterms are coming up in the US at the end of the year. If Trump comes out with a stimulus plan and it's blanket stimulus again for businesses and individuals that will push up inflation everywhere because that is such a large economy. And then you get into that inflation that is sustaining itself now.

[00:22:03]It's sustaining itself on money printing as well. So the pushpull dynamic that I'm talking about is less then because you've got so much new money that is flooding in to the money supply and you haven't got any more goods and services.

[00:22:19]You haven't got any more oil. The government can't print oil. Can the Canadian government can't print oil.

[00:22:25]They might have oil and the government doesn't have it. Private businesses do.

[00:22:29]They own all the pipelines. They own all the infrastructure. everything. It's all privately owned. So they cannot print oil and put it into the supply. Now they could do the thing of actually making oil production better, cheaper, more efficient. That would really help much more than just giving out stimulus checks. But this is the government and this is the public and neither of them really think because the the public will just be like, "Give me money. Give me money. Give me money." and the government will eventually cave and just print it. But nobody asked the question like how bad that actually is for them in the long term. And if they want to answer that question, just look at what happened in 2022, guys, and that'll tell you. So anyway, I want to thank you so much for being on this live stream this morning. If you've enjoyed it, please like it. Please leave a comment in the comment section below. Check out this video here as well and I will see you in the next one. Take care and have a fantastic weekend. I'll see you in the next one.