[00:00:05] Listen to the Kate Dalley Show. Warning, may cause excessive shrugging, deep sighing and eye-rolling. The show starts now. You've stolen all the money in the pension funds, you've stolen all the money in the government, and now rather than turn and tell people, well we stole your money, you need an excuse that will allow you to consolidate and change the fundamental system, and so you have a magic virus.
[00:00:30] Crypto Bros make money, literally by making money, and they've made over a trillion dollars out of thin air. They'll accuse the U.S. government of making money out of thin air. Maybe we do, but we're the U.S. government. Maybe we do, but we're the U.S. government. Well that makes everything alright, because they're the U.S. government. You just can't make this stuff up anymore.
[00:00:55] So, welcome back on a Tuesday. And you know what this means, because I always love his visits to the show, and he's a fan favorite, and of course you've got to go get the book Quaz. It's a fantastic read. And I have Mel Madison, melmadison.com. How are you, Mel? I am doing great, and thanks for having me, Kate.
[00:01:15] You got it. Okay, so, okay, so you haven't been on for a couple of weeks, so give me your latest, because I know that there's been jumps in the stock market, there's been all kinds of stuff going on. I just want to get the lowdown from my friend Mel. So, you gotta do this. Oh, by the way, can you give people like a little bit of background too, if they're new to the show? Yeah, sure. So, my name's Mel. I've been coming on the show with Kate for over a year now.
[00:01:44] I love coming on because, unlike a lot of places, she's not expecting me to take one position or another on a party or a candidate or a president. So, you know, I've got good things to say about the Trump administration. I've got bad things to say about the Trump administration. Right. That's fabulous. My background is in business. It's in financial services. I have an MBA from Duke University. I've spent over 25 years in financial services.
[00:02:11] I have served as the CEO of three different SEC and FINRA-regulated broker-dealers. And at the ripe young age of 50, which I am right now, I manage investments in kind of real estate, precious metals, equities, different things. And I'm an author. And as Kate mentioned, I've written the book Qua.
[00:02:33] So, I've gone through these things and I've seen these markets before. I've seen the dot-com bubble, which blew up right as I was graduating from college in the late 90s. Been through the great financial crisis, been through COVID, been through all of these. And I go through all of these things and I bring that experience and what I've seen to the table to try to help guide people. And just, you know, really quickly for folks, basically I came on with Kate in December or January.
[00:03:02] And for the first time in about two years, I said, you know what? I'm a little worried about the stock market. I think it's time to take profits, build up some cash because there's going to be a big opportunity later in the year. And then literally, like after Trump walked back to tariffs April 10th, I was like plugging all that money into the market. And I'm like, that's a bottom. Get in. It's up 20 percent since then. So, so basically, like all my accounts are a big on the year.
[00:03:30] And, you know, I'm trying to just help people that manage stocks. If they don't manage stocks, that's fine. I also talk about larger economic issues, central banks, different things. As I said last week, a caller called in and said, Mel, why do you talk about stocks? I said, just because a lot of people own it. You don't need to own stocks. I'm not here to be Larry Fink and tell people they need to own stocks. You know, I I just think the stock market is part of a lot of people's lives and financial lives.
[00:04:00] And I look at everything from real estate, precious metals, everything, and try to get my views on those. All right. Well, I can't wait to I can't wait to kind of hear everything else you've got to. I know you've got a lot to talk about. And so so where do we where do we really land today? The stock market's up. And where do you want to where do you want to start? We could start even with the tax bill, whichever. Where do you want to go?
[00:04:28] Yeah, I mean, I mean, I think the stock market is up and it's going to keep going up. I think it's going to go to new all time highs and it's going to go to seven thousand on the S&P by the end of the year. And it's going to go to eight thousand by the end. And here's the reason why. It's not because I sit around and listen to a bunch of earnings calls like what is Apple doing? Right. What I do every week.
[00:04:53] And just yesterday, the monthly Treasury statement came out, which is essentially a multi page PDF document that the Treasury Department puts out on government spending. And it's absolutely obnoxious. It's ridiculous. Like we are heading for bigger deficits than we would have ever seen had Kamala Harris won. Like like people need to understand, like Doge didn't cut anything. I love Trump. He's got good things about him. He's got bad things about him.
[00:05:21] But literally no tax on tips, no tax on. So like the tax cuts are incredible. It's probably going to be passed. And then the spending, the trillion dollar spending on the Defense Department, there's no spending cuts. We are going to spend like crazy. That's going to be capital and money injected into the economy. It's going to juice the stock market. And that's why I'm bullish on the markets. Now, the big problem is what's happening with bonds. And we're seeing it.
[00:05:51] We're seeing the 30 year Treasury bond start to approach, you know, 5%. And, you know, we had an inflation report today, which was low. But it's not taking into effect what's going to come down the road. And so we are in this really weird like Wizard of Oz land where government is just spending like crazy,
[00:06:15] running deficits like crazy, juicing the economy, juicing the stock market, all the while telling people we're getting things back on track with the deficit, which is absolutely not happening. Ouch. There's a couple of wins. But like I said yesterday on the show, I briefly mentioned the tax bill. We didn't really go over it. But so I'm glad we're going to do that a little bit more today.
[00:06:44] But there's just so many things people should know. So so a rollback of the of the ever arching crazy of the king dingaling, you know, environmental policies because it went so far out of whack. The bill terminates or phases out numerous clean energy tax credits, including for residential solar. OK. And hydrogen production. All right.
[00:07:09] And so it's getting it's it's we we went crazy, crazy, crazy. And we're arriving now at this new normal. But I don't think we're cutting the roots of the tree. Like I said yesterday, we're it's like little teeny things like like the tax on tips. I mean, I OK. I mean, people are looking at that like, see, we're we're kicking butt and we're getting rid of the deep state. I'm like, yeah, that's not that.
[00:07:37] I don't know what that is, but it's not that. I mean, OK, it's it's nice. It's just not the root of the tree. So we're not we're not doing the big things. And we're and I'm worried that people are are just walking away going, oh, yeah, this is this is going well. And I'm like, four trillion. We raised the debt ceiling for trillion. That's not good. It's horrid. No, we're we're on pace for I mean, this is this is getting ready to go crazy.
[00:08:06] I honestly think, Kate, we're heading for an equity bubble, the likes of which we haven't seen since 1999. I think there's going to be so much cash sloshing around in the system based on government deficit spending that the stock market is going to just rocket higher because people are starting to get the picture. All this stuff about Doge. OK, Elon Musk said we're going to cut two trillion.
[00:08:36] Then it was one trillion. Then it become one hundred and fifty billion. And then he leaves. And now I looked at the actual White House documents on what they call the skinny budget. This is the discretionary spending budget that they send out. I looked at the details. Basically, what what was in there was one hundred and fifty dollar, one hundred and fifty billion in spending cuts, which were completely annihilated by a jump in defense spending to over a trillion.
[00:09:04] And then they made it look like there was a hundred billion dollar reduction. But if you looked at the line items and anybody can go to White House and I ask you to do this. Look at where is that hundred billion dollar deduction coming from? It came from emergency spending, meaning spending. The government spent one hundred and twenty billion dollars last year on emergency like hurricanes and things like that.
[00:09:30] And what they put into the budget was that we're going to spend negative twelve billion. They literally made a negative spending line in the budget. So they are just manipulating the heck out of everything. And what they're going to do, they're going to put sunset provisions on a lot of this stuff so that it looks so that they can make it accountable with the CBOE scoring.
[00:09:54] And and what's going to happen is we're going to wind up with the biggest spending budget ever, the biggest deficits ever. And it is going to juice everything. And people are going to be like, oh, my gosh, I was worried. I thought like the economy was collapsing and so on. And and eventually the piper is going to be need to need to be paid. But like we're still two or three years down the road from that. And that's why I tell people like stock markets going up. Gold is going up. Bitcoin's going up.
[00:10:24] Bond yields are going up, which they are. And and this is the path we're headed on. And it's unsustainable. And we're just doing what we've always done, which is put it on the tab. Wow. Phone lines are open. Eight, eight, eight, six, seven, three, 1450. If you have a question for Mel, I'm glad to take your call. Eight, eight, eight, six, seven, three, 1450. Would love to hear from you. And, you know, I am Paul Craig Roberts wrote an article.
[00:10:54] He he does. He's been on my show a couple of times. And he he writes now just I always catch him on Lou Rockwell dot com. But Lou's been on the show, too. But he was talking about the annual theft of five hundred twenty one billion dollars from the federal government. Can it be stopped? And all these different ways. Are we cutting that kind of root of the tree is what I'm talking about.
[00:11:16] Are we are we going after things that sound good as press bites or are we actually going to to stop anything? And it doesn't look that way with this bill. There's there's there's little highlights that people will go. Well, pharma prices are, you know, like I mentioned before, the tax, you know, or the the the no taxation on tips or lower taxation.
[00:11:41] But those are just such small little things compared to the four trillion uptick. Right. In the in the deficit. So we're looking at a lot of major things going on in that bill and people aren't really talking about it. They're not really going over it. They're skimming it and they're not really actually talking about it. But there's a couple of things that that are not OK with this bill. We'll get into it more for sure. But let me take a quick phone call.
[00:12:12] Hi, caller. Make it fast. No. What's your take on financial derivatives? OK. Financial derivatives. OK. We're going to come right back and you can answer that, Mel. Does that sound good? So we'll be right back. Yeah, there's just we'll go over some of the some of the meat of that bill, too. I just think people should know. And like I said, this isn't about the right or the left. It's about the truth. I'm just so tired of the circus. It's a circus.
[00:12:43] Be right. A media circus. Be right back. Kate Daly show more with the great Mel Madison. Don't go anywhere. This is the Kate Daly show.
[00:13:14] There's a man going around taking names and he decides who to free and who to blame. All right. Welcome back. Kate Daly show. Everybody. I like my Johnny Cash. Welcome back. And brought to you this show brought to you by Canyon Media Studios in St. George, Utah. And they host the show so that all you can listen to it. You can also catch it on Rumble and you can catch the video version on Rumble.
[00:13:40] You can also catch it at X America News where it plays there in the evening and on X. And you can go to X America News dot com. Also, I just wanted to mention all family pharmacy dot com forward slash Kate. And you know why? Because they have ivermectin and fembenzenol. You should be doing parasite cleansing. There's there's stuff coming at us. Twenty five. Twenty six. And I'm telling you, they're not done with the whole shots program.
[00:14:08] And today it was some new parasite. I'll get to it the next hour. Some crazy flesh eating parasite that they are just convinced you're going to get. So anyway, I'm just telling you, please just get healthy so that you don't you don't even think about taking their garbage that they're going to try to sell to you. I would never take anything for my health that the government wanted me to take. I really wouldn't. I really would not. I would do my homework heavily before I ever made a decision to do anything like that. All family pharmacy dot com forward slash Kate.
[00:14:37] And of course, you can use the code Kate 10 and get 10 percent off, which makes it nice. And they come right to your door and their doctor scripts. That's pretty cool. All right, Mel Madison. First off, we kind of need to go to the heart of this. We'll go to the heart of the tax bill in just a moment. Who controls the money? Yeah, I think this is the biggest point. It's something we've talked about, you know, going back to our first show is that the politicians, whether it's Xi Jinping or Donald J.
[00:15:07] Trump, they're not really in charge. And I think that's pretty apparent. Right. I think Trump had an idea of what he wanted to do a month or two ago. And he was put in his place. He put in his place by the bond market, by the stock market. And he was told, no, don't go there. It's a no go zone. And and I think what's happening is whatever. And Xi Jinping probably was put in the same place.
[00:15:33] And that's probably why there was a bit of a China deal that came together this weekend is Xi is not as beloved as a lot of people think. China is a very bifurcated nation where there is a group of people in the cities. And it's not a small group. It's one 200 million people. But this is a country of a billion people. And the other 800 million Chinese, they live hand to mouth. They live rurally.
[00:16:02] And they're not very happy with Xi Jinping. They were not happy with the way he handled covid and the lockdowns. And he is in a very weak position. So I'm not here to say like Trump is weak or this. What I'm here to say is that these leaders are not as powerful as people think. And while Xi wanted to be tough and Trump wanted to be tough, at the end of the day, the bond market, the stock market,
[00:16:25] the international banking cabal who really runs the show, put them in their place and said, you guys are going to go meet in. And guess where? Switzerland. I mean, which is the location of the Bank for International Settlements, the central bank. Like this is the banking hub. Like the irony cannot be lost on people that essentially this is the same place,
[00:16:50] the only country in Europe that Hitler refused to invade because it was too important because it moved the money. So, like, literally, it's so apropos that in Switzerland, the two, quote unquote, most powerful men in the world or their representatives thereof had to come together and make peace because the banker said enough is enough. Yeah. Yeah.
[00:17:18] I kind of envision it sometimes as like a movie. If you're watching a movie and the sole focus is in this house and you think that this is the biggest house because they've told you this is the biggest house. And they pan around the house and you just you think you're watching this movie about this house. And then as the camera goes on top of the house and starts to pan out, then all of a sudden there is a McMansion behind the house.
[00:17:44] And you realize that what you thought was a mansion, the big house, is actually the maid's quarters. And the big house is in the back and you start to kind of get the context of what you're seeing. And and as the camera pans up and up and up into the sky, you see it that it's a speck. And this is this is our problem with how the media and how the government tells us that our government is portrayed to us. Right.
[00:18:11] When you're talking about the big McMansion in the back, you're going, hey, the money is controlled way back here. But the camera is only going to show you this part because they want you to think this is the biggest thing and that we're going to stop everything here. And we're not. And so we've got to go over the roots of the we're going to take out the root of the system and the root of the system would be the BIS. The root of the system is the World Bank. The root of the system happens to be overseas over there. Be right back. I'll get your thoughts.
[00:18:39] Be right back. Kate Daly show more with Mel Madison. This is the Kate Daly show.
[00:19:13] I've got Mel Madison on board. Catherine Austin Fitz will be joining the show, I think, in about 30 days. And it'll be interesting to have her on again. She's been on a few times and we've been playing some clips of hers. And so just kind of letting you know, I'm also working on some other guests like Laura Logan coming back on and some various people that I'll let you know about.
[00:19:40] I have Mel Madison. The book is Quaz. Go to melmadison.com. Follow him on X. And he's always doing updates over there. And I I really I really love that. And so you were actually perusing a an article that you were just talking about on the break. Did you want to bring that up going back to going back 100 years? Or yeah, well, I was just looking through things, like I said, this this week.
[00:20:08] So every month, the United States Treasury releases something called the monthly treasury statement. If anyone's really interested, I'd encourage them to to search U.S. Treasury monthly treasury statement and and look at it. And it details all the spending. It shows all the departments and the deficits and everything. And if you look at when I talk about and I say, you know, I don't spend a lot of time when I'm analyzing the stock market.
[00:20:33] I don't spend a lot of time looking at like what did Microsoft do in the last quarter? I spend a lot of time looking at what's the U.S. government spending? You know, what are they pumping into the economy?
[00:20:45] And and, you know, looking back over less than 100 years, really, if you go back to, let's say, pre FDR, who was the first kind of quasi socialist president, federal government spending as a percent of GDP was about three percent. And right now we have a GDP as a country of around thirty to thirty two trillion dollars.
[00:21:12] And we're going to be spending the federal government somewhere around seven to eight trillion, which means we've gone from a three percent of GDP federal spending to twenty five percent. And and this is what drives the American economy. So when I say, oh, look at the spending bill, look at how the taxes are cut. The spending's increased. Stock market's going to go up. It's not rocket science. Right.
[00:21:40] It's this is money that's just going to be thrown into the system. It's going to slosh around and it's got to find a home. And part of that home is going to be in equities and the stocks are going to go up. And that's what's been happening. Right. Right. People wanted to know, too, you know, about about the IRS and about abolishing that. Now, Trump says, I want to abolish the IRS. Everybody cheers. OK, that's a great thing to cheer about. You and I would all agree. Right.
[00:22:10] Great thing. But we have we have to look at actually what's happened. He's cut a little bit of their budget and their workforce, which is good. That's not saying it's that's that's that's great. But but then what? Where are we headed? And so this is kind of what you were talking about earlier, too. It's like it sounds good. And then a little step is made and everyone goes, see, it's happening. And he says, you know, of course, tariffs will take the place of that.
[00:22:38] But now we're saddled with both right now until that were to happen, which it doesn't look like it's on track to actually happen. So so then we're saddled with both. And all of a sudden we have this this bigger problem of being saddled with tariffs and the IRS. And so that's not a huge win for us, although the idea of tariffs is is an interesting one. But it but it's not OK when we have everything else we're saddled with.
[00:23:05] So while things sound good and I want to compliment and I want to go, yes, that sounds great because you'd never hear that statement out of King Dingaling or Hormala. OK, they would never utter that statement. But it's just a statement because we're not really doing it. And the tax, the tax bill, this new bill coming out is the same kind of thing, right? It's it's there's a couple of things that sound nice. But when you really look at the meat of it, it's not great for us.
[00:23:34] It's not doing anything to end anything. We're not. In fact, they're terminating the IRS is direct file program. And if people don't know what that is, all that step is, is to say, OK, some people you can't really file. I'll wait until October. That's not that's not doing anything. You got the IRS like this is actually works against people. So we have to look at what's actually going on instead of the idea of what's going on.
[00:24:03] Everyone's in love with the idea of what's happening. It's like it's like being in love with the idea of marriage. But then you've got marriage and marriage is hard and it's great, but it's hard. And then you look at at this and everyone's just in the honeymoon phase right now. So still, and I want to say, like, share, snap out of it and slap them because it's just we're still in that phase. Don't you think it's weird? Well, I've been with my wife for 20 years and we're still in the honeymoon phase. Oh, well, there you go.
[00:24:30] You're the only one I know in 20 years. I know. I know she's listening. So I had to say that. But no, no, we've had our struggles. And anybody that's been married for anyone that's been married for 20 years, they have their struggles. Well, yeah. Or somebody's not being honest. Somebody's being real quiet, as my grandma used to say. She used to say someone's being real silent in a marriage if they say they'd ever have a problem, you know? Exactly. But you make a perfect point.
[00:24:58] And I think here's the point I want to make is that the media loves to put forth this facade as if, like, Joe Biden or Kamala Harris or Donald Trump have anything to say about it. Right. They don't.
[00:25:15] Like, these are decades-long phenomenon around deficit increases, around the way the economy has been set up, around the way the international banking cabal has organized things going back to the days of the Rothschilds.
[00:25:32] Like, this whole thing about, like, Fox News or CNN or MSNBC, it's all a big facade to make people think they've got some sort of control or they're voting for something. Like, I knew when Trump got in, he's not going to cut the deficit and balance the budget. There was something I said on, like, a podcast, like, a month or two ago when Howard Lutnick was on talking about how he's going to balance the budget. I said, it's a pipe dream. It's not happening. Right. And I was proven right.
[00:26:03] And people were saying, oh, these tariffs are going to happen and they're going to crash the stock market. And I was on Twitter saying, no, they're not because these tariffs can't last because they're unsustainable. Like, this is not – these people are not in control. Donald Trump's not in control. Xi Jinping's not in control.
[00:26:20] Like, we're living in this spinning out of control world based on a monetary and debt system that was originally put into place in 1694 under William III when he created the Bank of England. And we began the central banking cartel system. And since that point, when any leader, whether it's Donald Trump, Xi Jinping, whoever you want to name, tries to butt up against it and say, no, I'm going to do X, Y, or Z, guess what?
[00:26:49] They get put back in their place and they do what the market tells them to do. And that's exactly what happened to Donald Trump. Yes. And if this sounds doom and gloom, it really shouldn't. The reality really shouldn't be doom and gloom. The reality should be, okay, this is where we're at. Accept it and look around and say, okay, what do I need to do to protect myself and my family, number one? What steps should I be making that other people aren't making? A lot of people stopped prepping.
[00:27:18] They stopped getting ready for things that were coming because they just had so much faith in this honeymoon stage, in this idea of what's happening rather than what's actually happening. And I just, I think that we have to fight stuff. We've actually, this is such a great reckoning moment to go, okay, both sides are the uniparty and we're the people and the people far outweigh the uniparty in number.
[00:27:45] And we could actually do many, many things if given the right perspective and understanding of what's happening to us. But we keep playing the right-left game and we're stuck in this cycle, this hamster wheel, and we're not changing it. And so that's, I think, what gets me the most is we've got to change this. Caller, you've got 25 seconds. Go for it. Okay. I think we all agree that their ultimate objective is going digital.
[00:28:13] And the way to get most people to do that is if they fatten us up for the slaughter. If you have much to lose by not going along with this system, then, you know, they don't really have you over a barrel. All right. But if you have a lot of assets, then, you know, most people will go digital along with it. They want a lot to steal. Thank you for that. Love it. Thank you. Great call. Be right back. I'll have Mel comment on that. Be right back with Mel Madison on the Kate Daly Show.
[00:28:55] This is the Kate Daly Show. Welcome back. Kate Daly Show. You can get a lot of links. There's a link for the nicotine patches, and it helps the show right on the website. Also, you can get the GCMAF, which is cancer fighting, which is amazing.
[00:29:24] And that is on my website. It comes out of Australia, and I would recommend that to anybody looking at a cancer diagnosis. And also, the remineralization of teeth. Get the mouthwash, too. And let that sit on your teeth. You guys, we've got to turn that boat around. And a lot of stuff starts in the mouth. Like 80% of the things start in the mouth. So, this would be something really great. $20. So, go get it.
[00:29:53] Remineralization powder. Be using that twice a day. You're going to love me for that one. All right, Mel Madison from melmadison.com. All right. Let's talk about a possible prediction that you're going to make. Well, the last caller asked about a digital future. And I think that is, again, a topic like we've talked about since the beginning is central bank digital currencies.
[00:30:20] And I think it was probably as much as eight or nine months ago I said they've given up on central bank digital currencies. But what they're going to do is a backdoor central bank digital currency by legitimizing what's called stable coins. So, for people that don't know what's – I know a lot of your listeners know exactly what stable coins are. If you don't, they're cryptocurrencies that are exchanged on the blockchain, meaning they can be sent digitally.
[00:30:49] And what it is is you put U.S. dollars into it. But the stable coin company, like a Tether or a Circle, they go and they buy a one-month treasury bill, like a T-bill. So, they buy a United States debt obligation to back that bill. That bill pays currently around 4%. And then they can pay you 4% interest.
[00:31:12] And so, there is a major bill that is not being talked a lot in the mass media but is very important, I think, to the powers that be. It's called the Genius Act. It is a stable coin payments act. And it has bipartisan support. So, I think it's going to get passed. But there are essentially 10 or 15 U.S. senators on the Democratic side who are for the bill. But they're being told not to vote for it because it will give Trump a win.
[00:31:42] But I think this is the prediction is that if I'm right about who is the real power, it's going to overcome the political need to deny Trump a win. And they're going to pass this bill. And at some point in the next six months, we're going to see a passing of the Genius Act. It's going to legitimize digital stable coins.
[00:32:06] And once that happens, you're going to see JP Morgan, Citibank, Wells Fargo, everybody coming out with their own stable coin. And what that's going to do is it's going to tell people, take your money, put it into the stable coins. You can transfer it digitally so you don't have to pay the Visa 1.5% fee. So, you're going to save money. But what's going to back it is you're going to be buying U.S. treasuries, meaning you're going to be buying U.S. debt.
[00:32:33] And so this is a plan not only to digitize things, control things, see everybody's transactions. It's also a plan as a place to stash U.S. debt because U.S. debt is just growing astronomically. And they're going to basically be serving it up to the average American consumer through these stable coins. And it's going to take a life of its own. And I think it's probably going to happen. And tons of money is going to flow into stable coins.
[00:33:01] Well, if that passes, I just want everybody to remember this moment. Just remember this moment. You have been right. Every time you put a prediction out, you've been right. And I just want to call attention to that. So, these are the steps that are being laid right now. And it's like Real ID. There was no reason for Real ID. Because really, if you're saying we need Real ID, then you're saying that the TSA didn't work. Department of Homeland Security is inept.
[00:33:30] All of these things, all these little mechanisms that they already have in play are totally inept. And so we have to have Real ID. Well, you know they're not saying that, right? They're saying that we have to have this additional thing. And it's like when you go to pay a bill. You go to pay a bill and they basically want a kidney and your firstborn to get a code through your phone. Then you've got to talk to somebody three different times and give them your social. And then you can pay a bill. Now, I want to know who wants to pay my bills because I don't think there's a mad rush.
[00:33:59] But they're acting this way. They're putting in all these steps, right? And everything is going to Face ID. And everything is going to this Real ID with no reason whatsoever. There is a reason. So it isn't for what we think it is because it isn't about terrorists. It's about this. It's about setting all these steps in play for what's coming with digital tyranny. All of it are mechanisms, right? Of that.
[00:34:25] And, you know, I just talked about, well, the budget is huge and the deficits are big. And so what people will say when I say, oh, but the market's going to go up because all of this spending, what they'll say is, no, it's not. Because what's going to happen is the 10-year Treasury note is going to hit 5 percent and that's going to collapse the system.
[00:34:48] Well, I went back on the monthly Treasury statement that came out yesterday and I saw how many new 10-year Treasury notes are being issued. So there are still auctions where they're creating 10-year Treasury notes. But all they're doing is replacing the ones that are already in existence. And for people that look at something, it's called the T-back or the Treasury Buying Action Committee. I forget what it exactly stands for.
[00:35:15] But essentially what's been happening in recent years is the U.S. government used to fund itself by creating 10-year bonds or 10-year notes. They're technically called notes or 5-year notes or 30-year bonds. Now they're not doing that anymore. All they're doing is issuing a lot of three-month T-bills, one-month T-bills. This is called shortening the curve not to get too financial. But they're just paying everything out of these short-term debt instruments.
[00:35:44] And so what's going to happen is, yes, interest rates are going to go up like the 10-year note. But it's not going to collapse the system because the government isn't using the 10-year note anymore to fund itself. They're using three-month T-bills, one-month T-bills. And they're going to fund all of those through things like stable coins. So the government is finding ways around all the obstacles to this whole debt deficit plan.
[00:36:11] And they've still got a few rabbits in their hat that they can pull. And that's why I think it continues for another two to three years. But I do think eventually, and I'm thinking the 2027, 2028 timeframe, that's when it starts, the house of cards starts to fall. And I use that timeframe not randomly but because that is when the Social Security Trust Fund, which was overpaid into for many decades, basically runs dry. Wow.
[00:36:41] I'm going to make this into its own little eight-minute podcast. And I hope people share this because what you just said in that last five minutes was vital. It's vital. And I love that you're analyzing the market. That's what this show is for. And to go, okay, this is what I'm seeing. And you know what? It would make sense, wouldn't it? It would make sense that you're looking at that to dictate kind of what we're going to be experiencing
[00:37:07] with all these well-laid little plans, all these well-laid little things, and it'll all come together and we'll start to see this horrific horror show. I so appreciate you, Mel. Thank you. All right. Back with you in just a moment on the flip side of the break, Mel Madison, melmadison.com. I'll be right back.