Straight Talk with Bill Frady 9/1/26 Hour 3 - Tony Dale discusses Federal Reserve debt, water tokenization, and AI data centers during his guest host radio show segment

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Transcript: Tony Dale in for Bill Frady (9-1-26 HOUR 3) Tony Dale: I don't know how special I am. Can you give me a little more in my headphone there? There, that's better. Thank you, John. Well, thank you, guys. Before I get too far into this next segment, I do want to be courteous enough to the people kind enough to text to read those texts. So here's one: "Face it. Thune, McConnell, and their loyal band of RINOs are the Democrats' best weapon." Yes! Amen to that. And the House and Senate really are just lazy. They're just sucking traitors who only care for themselves. And Congress—Congress seems to do a ton of receding as opposed to preceding. I like it. Well, they're not alone. Let's talk about the grand people who handle our Federal Reserve and the mess that we are in financially. You know, this is sort of in my wheelhouse, as you well know, I work in the financial services industry. So, I want to share some thoughts with you on just what a mess has been made of it all, and how this can affect us all. So let's start with this: the Federal Reserve—and let me start with this first—if you want to really understand how the Federal Reserve came into being and who they really are, read The Creature from Jekyll Island. That will be an eye-opener to you about this non-elected, non-governmental agency called the Federal Reserve that is empowered to create money out of thin air. So, how about this? You got to ask: what kind of absolute, biblical fools would these people have to be if—if they even thought that they could literally print money out of thin air and then lose money? Ah, but they have. Believe it or not, the Federal Reserve, starting in 2022—and it's not as bad as it was, but they have actually lost money and are printing money out of thin air to make up the losses. So this whole rich bunch of bankers and their buds have, at the Federal Reserve, helped create a terrible problem. And it was Jerome Powell at the helm—and you'll remember how President Trump kept wanting to get rid of Jerome Powell. Now, he has Kevin Warsh who is there. So, it is stunning to think that the Federal Reserve actually did this. So, in Las Vegas, our Secretary of Treasury, Bessent, is up there meeting with the leaders of the G20, actually. And I wanted to delve into really what's going on with this, and it's kind of daunting. So first of all, understand that the Treasury has doubled the size of their buyback operations for longer-term government securities, that's from 2 billion to 4 billion. And you say, "Well, what's that mean?" Well, so they're going to call it "liquidity support," because of course, it's the government, so they're going to invent some cool-sounding name for this. But here's what matters: the reality is this, investors were selling their long-term government debt bonds because the yields for these things were up to like 5.34%. Well, the Treasury saw this and they said, "Oh gosh, we can't have that." So they stepped in, right? So now we have a bond market—a $32 trillion bond market—and what's happening is Washington is now in a position where they're going to have to constantly keep selling new securities just to pay for the new stuff that's maturing. So in other words, they're financing the deficit by selling more and funding government without reducing spending. So this is the key to it. Earlier I quoted Ron Johnson and his commentary on how the federal government in every instance is totally ineffective and even dangerous. So here's what you have to understand: a bond market does require liquidity support, which is what they're talking about doing, if the people who are the buyers of our bonds are confident in the issuer—our government, right? So the problem we have here is when the supply of our debt overwhelms the actual demand by the number of people who want to buy our bonds. What they want is a higher yield because they're going to take more risk, which then leads us to what? Some inflation. So our problem h ...

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