Latest / Financial Survival Network / The Global Fiat Debt Reset Begins - John Rubino #6415

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The Global Fiat Debt Reset Begins - John Rubino #6415 · Financial Survival Network

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Speaker 2: Welcome to Financial Survival Network. Come your host.
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Speaker 3: Carrie Let's John Rapino is with us now. It's been
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Speaker 3: a while, John, he is now a good time to
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Speaker 3: visit Japan. I'll bet you the end's going to be
0:40
Speaker 3: going down against the dollar, isn't.
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Speaker 4: It, hey, Carrie? Well, yeah, you know, the US bailout
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Speaker 4: of Japan is potentially a really big story, partially because
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Speaker 4: Japan has been taking on government dat at a dramatic
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Speaker 4: rate for decades now and seems to have gotten away
1:00
Speaker 4: with it. And that provided a lot of ammunition for
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Speaker 4: economists and politicians to say, you know, it doesn't matter
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Speaker 4: how much the US borrows. Look at Japan. You know,
1:11
Speaker 4: they borrowed more than US, and they're okay. But suddenly
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Speaker 4: Japan is not okay. The en is going down, their
1:17
Speaker 4: interest rates are going up, and they're basically suffering the
1:21
Speaker 4: early stages of the financial crisis that everybody has predicted
1:26
Speaker 4: for them for so many years now. And that's not
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Speaker 4: just a Japan story, because they own a lot of
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Speaker 4: US treasury paper. They run trade surpluss with US, and
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Speaker 4: they put the extra money that they get into treasury
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Speaker 4: bonds and notes and bills, and if they have to
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Speaker 4: defend their currency by coming up with money and buying
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Speaker 4: the end from somewhere, they'll probably do that by selling
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Speaker 4: treasury paper, and that might force interest rates up in
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Speaker 4: the US, which would cause potential crisis for US. So
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Speaker 4: just this last week, the U or the US stepped
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Speaker 4: in and in effect bailed out Japan by buying in.
2:11
Speaker 4: But but they did it with a funny Trumpian twists.
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Speaker 4: They didn't just print the money. They sold euros in
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Speaker 4: order to buy in, you know, So they kind of
2:21
Speaker 4: screwed Europe over a little bit in order to help
2:24
Speaker 4: out Japan. And yeah, so that then and then the
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Speaker 4: end went back up because if there was all that buying.
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Speaker 4: But with currency interventions, normally, if there's some kind of
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Speaker 4: an underlying problem, intervening doesn't help because it it gives
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Speaker 4: you a quick fix in terms of you know, rejiggering
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Speaker 4: exchange rates a little bit, but then as soon as
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Speaker 4: you stop intervening, the overall trend resumes. And in Japan's case,
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Speaker 4: you know, they just know so much money and and
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Speaker 4: the bond markets are just not you know, not listening
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Speaker 4: anymore when Japan says, hey, buy oer bonds for zero
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Speaker 4: percent interest. And now you got the ten year yield
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Speaker 4: on the Japanese government bonds approaching three percent and a
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Speaker 4: thirty year yield a little bit over four percent now,
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Speaker 4: and that means Japan's interest expense is massive, and it
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Speaker 4: also means that the en is probably going to fall
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Speaker 4: further from here. So the US problem with all of
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Speaker 4: this isn't going away. You know, Japan is still out
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Speaker 4: there as this potential crisis because they have to sell
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Speaker 4: all their treasures. So we'll see it's a big deal.
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Speaker 4: And finally, you know, the laws of finance are starting
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Speaker 4: to apply to Japan after all this time.
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Speaker 3: Hey, does this mark the return of the bond vigilantes?
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Speaker 3: They seem to have been in perpetual hibernation John for
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Speaker 3: like almost two decades now.
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Speaker 4: Well, yeah, with Japan, it's been a long time. And
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Speaker 4: with the US, you know, our interest rates are starting
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Speaker 4: to go back up too, So it could be that
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Speaker 4: the bond markets have finally taken a look at government
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Speaker 4: finances and decided out, we don't want any part of
4:11
Speaker 4: this at these interest rates. We'll see. But you know,
4:16
Speaker 4: it's possible with the US that if oil prices go
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Speaker 4: back down, then inflation stabilizes, and then you know, the
4:22
Speaker 4: Fed has a rationale for easing and pushing bond prices
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Speaker 4: down again, or pushing bond interest rates down again, you know.
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Speaker 4: So it's it's possible that we're able to buy ourselves
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Speaker 4: some more time. But you know, I think what we're
4:33
Speaker 4: seeing now is a sign of things to come in
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Speaker 4: the intermediate and long term where the bond markets do
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Speaker 4: just become vigilantes once again, they become the arbiters of
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Speaker 4: government finance. And if that happens, then then then we're
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Speaker 4: in at the we're at the end of the fiat
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Speaker 4: currency experiment that long last.
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Speaker 3: Yeah, well it's an experiment that that was cooked up
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Speaker 3: in Frankenstein's lab here and it went way beyond what
5:03
Speaker 3: anyone ever expected.
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Speaker 2: And yeah, so look at oil.
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Speaker 3: It's up like three bucks today, but basically it hasn't
5:12
Speaker 3: really gone up that much. It had the spike to
5:15
Speaker 3: one twenty, kind of like silver, and it kind of
5:19
Speaker 3: did what silver did in a large measure. It's been
5:24
Speaker 3: bouncing around, but you know, the average American, if it
5:27
Speaker 3: stays around this area, they just don't really care about
5:32
Speaker 3: the war or whatever is going on. It seems like
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Speaker 3: there's more important things.
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Speaker 2: You know.
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Speaker 3: I just wrote an article today than I was thinking
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Speaker 3: of you when I wrote it as well, which is
5:44
Speaker 3: that they talk about inflation and affordability and somehow like
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Speaker 3: what the government does printing up money getting into wars.
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Speaker 2: Wars are always inflationary.
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Speaker 3: We know that throughout history, going back to Napoleon, going
6:02
Speaker 3: back to the wars of England being financed by the Rothschilds.
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Speaker 2: You know.
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Speaker 3: And yet these guys are running on a platform like, gee,
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Speaker 3: it's not affordable. Why they never say why affordability is down,
6:20
Speaker 3: why inflation is up? They never make that connection. Like
6:23
Speaker 3: Milton Friedman said that inflation first and foremost is always
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Speaker 3: a monetary phenomena.
6:32
Speaker 4: Yeah, And basically the affordability thing has become an issue
6:37
Speaker 4: because when you start inflating away your currency in other words,
6:41
Speaker 4: where you drive the press of your currency down, you
6:43
Speaker 4: drive the price of things up, and a lot of
6:46
Speaker 4: those things are life's necessities, and they tend to go
6:49
Speaker 4: up faster than wages, so you end up basically impoverishing
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Speaker 4: one or two whole generations when you do something like this.
6:58
Speaker 4: Like that inflation of the past thirty years has helped
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Speaker 4: boomers because we own all the assets, so we make
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Speaker 4: out when the government makes houses more expensive and stocks
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Speaker 4: and bonds more expensive, because we already own them to
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Speaker 4: begin with. So we're generating profits while that goes on.
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Speaker 4: But the millennials and the Gen Z generation, they get
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Speaker 4: stuck with ever more expensive things, so they can, in
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Speaker 4: a lot of cases, never become the adults they were
7:29
Speaker 4: supposed to be. You know, at the age of thirty,
7:31
Speaker 4: you're supposed to own a house, and you're supposed to
7:35
Speaker 4: be able to have kids, and you're supposed to be
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Speaker 4: able to do the basics things that adults do. But
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Speaker 4: you can't do that if a starter house is four
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Speaker 4: hundred and fifty thousand dollars and you can't have kids.
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Speaker 4: If you know, private schools insanely expensive and college will
7:50
Speaker 4: cost you a quarter million dollars, you know, it makes
7:53
Speaker 4: it prohibitively expensive to do these things. So we have basically,
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Speaker 4: you know, our generation carry has basically saddled our kids
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Speaker 4: and our grandkids with a life that's not really livable.
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Speaker 4: And so it shouldn't be a surprise that affordability becomes
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Speaker 4: a really powerful political platform. Nobody wants to explain why
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Speaker 4: things aren't affordable, so they just make stuff up, like, oh,
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Speaker 4: the corporations are price gauging and things like that, you know,
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Speaker 4: but they can run on, Oh, I'm going to make
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Speaker 4: the necessities of life cheaper for you. You know, I'm going
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Speaker 4: to drive down the price of groceries and of houses,
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Speaker 4: YadA YadA, which can't really be done unless you fix
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Speaker 4: the underlying problem, which is governments spending way too much
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Speaker 4: money and inflating away their currencies to cover the resulting debts.
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Speaker 4: And so this sort affordability thing is a really nice
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Speaker 4: political platform for everybody to run on, but they can't
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Speaker 4: fix it. There is no way to fix affordability because
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Speaker 4: that would involve driving prices down, which which is deflationary,
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Speaker 4: which would impair the financial system, which depends on inflation
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Speaker 4: going forward. So you know, we're basically in a place
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Speaker 4: where our problems are no longer fixable. But everybody's good
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Speaker 4: and that our problems are fixible, and they're going to
9:17
Speaker 4: use it to run election campaigns. But we'll see. I mean,
9:21
Speaker 4: I think the truth will come out in the not
9:23
Speaker 4: too distant future.
9:24
Speaker 2: We will. Yeah.
9:26
Speaker 3: Yeah, it's just a little bit disconcerting what you say,
9:30
Speaker 3: like the younger generations aren't in a position to, you know,
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Speaker 3: enjoy the so called roots of the American.
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Speaker 2: Dream, you know, like owning your own house.
9:44
Speaker 4: Yeah. But now now a lot of people in the
9:47
Speaker 4: establishment are talking about maybe we're going to have a
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Speaker 4: military draft. Good luck drafting these kids that you've totally
9:54
Speaker 4: screwed over already and telling them they're going to go
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Speaker 4: off and fight and die in you know, so some
10:00
Speaker 4: horrendously unpleasant part of the world. So I think that,
10:06
Speaker 4: you know, should we keep starting these forever wars and
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Speaker 4: run out of people and start trying to draft them,
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Speaker 4: that that's going to be the invent you know what.
10:15
Speaker 4: We keep looking at other decades to compare this decade too.
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Speaker 4: In the nineteen seventies is one that fits really well.
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Speaker 4: But if you want to start trying to draft people,
10:27
Speaker 4: then we can go back to the nineteen sixties and
10:29
Speaker 4: that will be our template where the eighteen year olds
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Speaker 4: just totally rebel across the board and if we try
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Speaker 4: a draft, that is what will happen.
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Speaker 2: Rightfully, so rightfully.
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Speaker 3: So it's like the congressman always send the young kids
10:45
Speaker 3: off to war. Having visited Vietnam myself and you know,
10:50
Speaker 3: seeing the presidential Palace, the war remnant museum, and you know,
10:58
Speaker 3: the fact is it was just a color loss ale,
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Speaker 3: waste of human capital and just capital in general, to
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Speaker 3: accomplish absolutely nothing. And the way the Vietnam view, the
11:14
Speaker 3: Vietnamese view things now is basically that China was always
11:18
Speaker 3: the enemy. They were a convenient ally getting rid of
11:23
Speaker 3: the French and then getting rid of the US. But
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Speaker 3: now they're back to the historical enemies. And they love America.
11:30
Speaker 3: Everybody everybody wants to in the Vietnam wants to come
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Speaker 3: to America. It's you know, and you know it's really
11:39
Speaker 3: funny is when you talk about this, they have tremendous
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Speaker 3: inflation there. Like I got off the plane and bought
11:48
Speaker 3: some dong Vietnamese dong, and I was instantly a millionaire.
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Speaker 3: The problem was, it's like twenty six thousand dong back then.
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Speaker 3: It's probably worse now to the dollar. And so you
12:03
Speaker 3: do with five hundred dollars and you got ten million
12:06
Speaker 3: dong and you feel rich until you go spend a
12:09
Speaker 3: million dollars a million dong for a cup of coffee.
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Speaker 3: There's a there's a cautionary tale there, John.
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Speaker 4: Yeah, and you know that illustrates the point that the
12:22
Speaker 4: US fiscal and monetary mismanagement isn't just a US problem.
12:27
Speaker 4: You know, the whole world is doing this right now.
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Speaker 4: Everybody with the field at currency is borrowing too much
12:32
Speaker 4: money and then being forced to inflate their currency away
12:35
Speaker 4: to cover the debt that had taken on. So you
12:40
Speaker 4: know that that makes this even more interesting because there
12:43
Speaker 4: have been financial crises and monetary collapses since there have
12:48
Speaker 4: been money and finance. But in the past these these
12:55
Speaker 4: crises have been one country specific. In other words, one
12:58
Speaker 4: country screws up its currency and their currency collapses, but
13:02
Speaker 4: it's in the context of a sound money world where
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Speaker 4: everybody else is on the gold standard. But now everybody's
13:08
Speaker 4: on a fiat currency system. So we're all screwing up
13:13
Speaker 4: in this very familiar way. At the same time, you know,
13:16
Speaker 4: we're all trying to inflate our currencies away. So you know,
13:20
Speaker 4: it's not clear how this plays out because it's global,
13:24
Speaker 4: whereas in the past it was always country specific. But
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Speaker 4: I suspect it means we get to kick the can
13:31
Speaker 4: down the road longer, which we've already done, and that
13:34
Speaker 4: when the crisis happens, it's much bigger and much harder
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Speaker 4: control because there's no safe haven country. Somebody is going
13:43
Speaker 4: to declare a gold standard at some point and they
13:45
Speaker 4: will become the safe have in country. But it's not
13:48
Speaker 4: clear that one country can do that in a fiat currency.
13:50
Speaker 4: World might have to be the whole world doing it
13:53
Speaker 4: at once. We'll see. But you know, the mess that's
13:57
Speaker 4: coming is very clear in terms of how we got
14:01
Speaker 4: here and what the main problem will be, but how
14:05
Speaker 4: you fix it. You know that currency reset is going
14:08
Speaker 4: to have to be global, which will be just from
14:11
Speaker 4: an economics nerd standpoint, fascinating to watch, but from everybody
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Speaker 4: else's standpoint, totally terrifying.
14:19
Speaker 3: So besides buying gold, John, what are we supposed to
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Speaker 3: do and solver hopefully?
14:24
Speaker 4: Yeah, you know, but gold and silver is the quick
14:27
Speaker 4: thing to do because and gold and silver are behaving
14:30
Speaker 4: exactly as you would expect them.
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Speaker 2: To behave.
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Speaker 4: It's they've been going up for the past thirty years,
14:36
Speaker 4: and you know, beyond that, you get as close to
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Speaker 4: debt free as you possibly plan. Although that doesn't that
14:43
Speaker 4: sounds counterintuitive for an inflation you know, you want to
14:46
Speaker 4: maybe take on as much debt as possible, but the
14:49
Speaker 4: chaos that comes with rising inflation will make your job
14:54
Speaker 4: and your finances really hard to manage. So you want
15:00
Speaker 4: have as little debt as possible as you go into
15:03
Speaker 4: a situation like that, that makes it easier to get through,
15:07
Speaker 4: you know, a time when your job is uncertain or
15:10
Speaker 4: some other aspect of your finances are are chaotic or whatever.
15:14
Speaker 4: So you do that, and then you become as self
15:16
Speaker 4: sufficient as possible. You know, you want you want to
15:19
Speaker 4: have skills, and you know, not just to grow your
15:22
Speaker 4: own food, but to take care of things and fix
15:24
Speaker 4: stuff and everything. So yeah, I mean, there's a limited
15:28
Speaker 4: number of things you can do to protect yourself, but
15:31
Speaker 4: they're pretty straightforward when you think about it. It's just
15:34
Speaker 4: basic old style prepping, which will you know, it won't
15:39
Speaker 4: make you perfectly resilient, but it'll help help you get
15:42
Speaker 4: through a time like this.
15:44
Speaker 3: Yeah, yeah, well okay, and then we you have the
15:48
Speaker 3: war in Iran. It seems to me there's a lot
15:52
Speaker 3: of disinformation going. We have no idea what's really happening there.
15:57
Speaker 3: The media has been totally blocked doubt, and you know,
16:02
Speaker 3: on the one hand, you know, it's it looks like
16:06
Speaker 3: a quagmire. On the other hand, basically Iran is collapsing
16:11
Speaker 3: before our very eyes.
16:13
Speaker 4: Well, you know, a big part of this, all right,
16:16
Speaker 4: there's two parts of this that are really interesting because
16:19
Speaker 4: you know, the part where the US has blundered into
16:22
Speaker 4: yet another war because the people running our foreign policy
16:25
Speaker 4: are morons. That's that's not interesting because it's happened so
16:28
Speaker 4: many times really since Iran in the nineteen fifty a days.
16:32
Speaker 4: There's some symmetry here. We started our idiotic foreign policy
16:37
Speaker 4: by overthrowing the democratically elected president of Iran back in
16:43
Speaker 4: the nineteen fifties, and here we are again, you know,
16:45
Speaker 4: invading Iran. But the two things that are really interesting
16:49
Speaker 4: are one is that warfare has changed in a dramatic way,
16:56
Speaker 4: and this war and the Ukraine War illustrated that fact.
17:01
Speaker 4: You know, it's we've gotten asymmetric where cheap drones and
17:08
Speaker 4: almost homemade missiles can overwhelm missile defense systems that cost
17:13
Speaker 4: millions and billions of dollars. So all of a sudden,
17:18
Speaker 4: this high tech, you know, unbeatable, untouchable war machine that
17:23
Speaker 4: the US Empire has built and all its allies have
17:26
Speaker 4: brought into can be at least countered and maybe actually
17:31
Speaker 4: defeated by these drones that costs you know, twenty thousand
17:36
Speaker 4: dollars apiece or whatever, compared to millions of dollars for
17:39
Speaker 4: the interceptors that we're using against them. And you know,
17:43
Speaker 4: you can churn these drones out on an assembly line.
17:47
Speaker 4: That's what Ukraine is doing. And then Russia as well.
17:50
Speaker 4: You know, in the Ukraine went out, Russia and Ukraine
17:53
Speaker 4: can attack each other with impunity because they they're out
17:57
Speaker 4: of interceptors, but they've got plenty of attacknes. And the
18:02
Speaker 4: same thing with Iran. I mean, we were supposed to
18:05
Speaker 4: have destroyed their ability to wage war like ten times
18:09
Speaker 4: in this war. So far, every single time they come
18:12
Speaker 4: back with a bunch of new drones that are hitting
18:15
Speaker 4: our military targets in the Middle East and energy infrastructure
18:20
Speaker 4: and and so you know, in some ways you could
18:25
Speaker 4: say Iran is winning. But the other really interesting thing
18:28
Speaker 4: now too, is that the US is on the clock.
18:30
Speaker 4: We have midterm elections coming up in what is it now, August, September, October,
18:35
Speaker 4: three three months in which it's possible that the Republicans
18:42
Speaker 4: lose the House and maybe even the Senate if people
18:45
Speaker 4: are pissed off enough about gasoline prices by then. And
18:49
Speaker 4: if that happens, then you know, the Democrats are already
18:52
Speaker 4: making their plans for the investigations they're going to do
18:55
Speaker 4: and how they're who they're going to prosecute, and diet
19:00
Speaker 4: and everything, and that that means the government descends into
19:05
Speaker 4: chaos and Trump can no longer get a lot of
19:09
Speaker 4: the things he wants to get done in the meantime,
19:12
Speaker 4: and so he's on the clock. He needs to settle
19:15
Speaker 4: the Iran war and has to hope that people forget
19:20
Speaker 4: about it in just a little bit of time we
19:22
Speaker 4: have before the midterm elections. Now, meanwhile, the Republicans are
19:27
Speaker 4: in political trouble, but the Democrats are doing their best
19:31
Speaker 4: to bail the Republicans out because they've they you know,
19:34
Speaker 4: they've decided that they're they're going to nominate a bunch
19:39
Speaker 4: of avowed communists. See this is you know, you know,
19:43
Speaker 4: if you really want to know somebody, Yes, unrepented communists,
19:47
Speaker 4: they literally say, our goal is to seize the means
19:51
Speaker 4: of production, and we're going to do it with with prisons,
19:56
Speaker 4: and we're going to do out of Thanksgiving and yeah,
19:58
Speaker 4: and we're going to do away with the police and
20:00
Speaker 4: everything that because they got a little taste of power,
20:05
Speaker 4: and so they're feeling free to say the things they've
20:09
Speaker 4: always said behind closed doors because in large part because
20:15
Speaker 4: Mendani won in New York. You know, you have a
20:17
Speaker 4: major Muslim slash communist politician out there who seems to
20:23
Speaker 4: be very popular, so that that has a kind of
20:28
Speaker 4: green lit all the other people who have the same
20:32
Speaker 4: belief system to run for office, and a lot of
20:35
Speaker 4: them are doing okay. You know, that's the wild thing
20:37
Speaker 4: is they're getting nominated and now we're going to find
20:41
Speaker 4: out if they can get elected in swing states and
20:47
Speaker 4: it's highly likely that they can't, so that some you know,
20:51
Speaker 4: Senate and House seats that might have been doable for
20:55
Speaker 4: the Democrats turned out not to be doable, and that
20:58
Speaker 4: saves that pulls the republic Cans out of a fire.
21:01
Speaker 4: You know, maybe maybe they get control of it, or
21:04
Speaker 4: we get to keep control of at least one legislative house,
21:08
Speaker 4: and and therefore Trump can't be impeached, you know, or
21:13
Speaker 4: his cronies can't be indicted and tried and convicted. So,
21:20
Speaker 4: in other words, US politics is just as chaotic as
21:22
Speaker 4: you would expect it to be, given all the idiotic
21:25
Speaker 4: foreign policy and economic stuff that's going on. But you know,
21:29
Speaker 4: the time is running short. We're going to find out
21:32
Speaker 4: if if the guys that are best friends with Hassan
21:36
Speaker 4: Piker and people like that are going to be able
21:39
Speaker 4: to get elected on a communist platform, or if the
21:46
Speaker 4: Republicans can run against that and hold power for a
21:49
Speaker 4: little lot longer. We'll see, but you know, chaos is
21:52
Speaker 4: coming one.
21:53
Speaker 2: Way or the other. Yeah, yeah, it's it's it's crazy.
21:57
Speaker 3: Like we fought war as we did the hire Cold
22:00
Speaker 3: War two two basically defeat communism, and now we've got
22:08
Speaker 3: like a homegrown movement taking place. I mean, I think
22:15
Speaker 3: I understand that younger people are are really you know,
22:21
Speaker 3: they're up the creek. You know, they're really feeling a
22:25
Speaker 3: lot of pain, and you know, I feel bad about
22:28
Speaker 3: it for them. But on the other hand, you know,
22:33
Speaker 3: go back to a system that you know has has
22:39
Speaker 3: failed over and over and over again and cannot possibly succeed,
22:46
Speaker 3: you know, but you know they're a victim of our
22:52
Speaker 3: inferior educational system, right.
22:56
Speaker 4: No, I disagree. I think they are right to be
23:01
Speaker 4: pissed off. And you know, kids, every generation of totally
23:06
Speaker 4: every generation of kids figures out a way to freak
23:09
Speaker 4: their parents out. And there's not all that much left,
23:13
Speaker 4: but communism will do it. So, you know, just in
23:17
Speaker 4: terms of the cycle of life, you can understand why
23:20
Speaker 4: kids have gone back to left wing politics. But you know,
23:23
Speaker 4: a big part of it is just Boomer's fault. We
23:26
Speaker 4: won the Cold War and we should have created a
23:31
Speaker 4: capitalist slash democratic utopia here. I mean, we could absolutely
23:37
Speaker 4: have done that if we just run the country correctly.
23:40
Speaker 4: And instead we borrowed insane amounts of money, we inflated
23:44
Speaker 4: away our currency. We made life impossible for twenty five
23:48
Speaker 4: year olds. And now we're kind of surprised that they're
23:54
Speaker 4: deciding that the current system, Yeah, the current system isn't
23:57
Speaker 4: working for them, so they're looking for something else else,
24:00
Speaker 4: and right on que here comes communism. You know. So
24:06
Speaker 4: the saving grace of collectivist political philosophy is that it's
24:11
Speaker 4: self correcting. It sounds great, it's easy to run on,
24:15
Speaker 4: but as soon as you gain power, you start absolutely
24:19
Speaker 4: destroying the system that you inherited. So communism in New
24:24
Speaker 4: York City, yeah, yeah, communism has maybe five years before
24:29
Speaker 4: they get tossed out of office in any kind of
24:31
Speaker 4: a rational political system. And you know, I think that
24:35
Speaker 4: we're two years into that already with a lot of
24:39
Speaker 4: the people that we've got running you know, cities and states,
24:42
Speaker 4: or actually we're like fifteen or twenty years into the
24:45
Speaker 4: process of old school Democrats ruining all the big cities
24:50
Speaker 4: and all the big states that they've had a chance
24:52
Speaker 4: to run.
24:53
Speaker 2: Yeah, they certainly have.
24:56
Speaker 4: Yeah, I mean, nobody wants to live. It's increazy.
24:59
Speaker 2: You know.
25:00
Speaker 4: The people voting with their feet now is really amazing
25:05
Speaker 4: because everybody is leaving places that are run by Democrats
25:09
Speaker 4: and they're moving to places that are run by Republicans.
25:12
Speaker 4: So but you know, I don't know that that saves
25:15
Speaker 4: the Republicans this time around. But we'll just have to see,
25:18
Speaker 4: because there's an awful lot of cross currents out there.
25:21
Speaker 4: Everybody's screwed up some things, so it just depends who
25:25
Speaker 4: gets blame for what. This time around.
25:28
Speaker 2: I love it. You know, it's it's really crazy.
25:31
Speaker 3: But yeah, I was a crazy leftist that I bought into.
25:36
Speaker 2: All that garbage.
25:38
Speaker 3: But then, you know, I got to the point where
25:41
Speaker 3: I actually studied the systems how they failed, and we
25:46
Speaker 3: got Cuba ninety miles off the coast of Florida just
25:50
Speaker 3: to prove it. Now, they would like to blame all
25:52
Speaker 3: their failure on the United States, and we certainly have
25:55
Speaker 3: been encouraging the failure.
25:57
Speaker 2: Right, but you know what, they've done pretty good on
26:04
Speaker 2: their own. They didn't really need any.
26:06
Speaker 3: Help from the United States to fail because the problem
26:11
Speaker 3: with the you know, there's a number of problems with
26:14
Speaker 3: socialism communism. As Margaret Thatcher said, eventually you run out
26:18
Speaker 3: of other people's money. But it's not just that, it's
26:22
Speaker 3: that it's incentives. There's no incentive in socialism, in communism
26:28
Speaker 3: to invest for the future because you're never going to
26:32
Speaker 3: get a return. In fact, the system is designed so
26:36
Speaker 3: you don't get a return on an investment that you
26:39
Speaker 3: make today.
26:40
Speaker 2: Right, So where's your.
26:42
Speaker 3: Incentive to invest. It's survival. That's your only incentive. In
26:47
Speaker 3: a system where all the incentives have been removed for
26:52
Speaker 3: you to improve, you know. To me, it's just so
26:57
Speaker 3: obvious that it has to fail. But you know, I
27:01
Speaker 3: think every generation has to learn that there's no free lunch.
27:07
Speaker 3: But in the United States, we haven't learned it yet
27:10
Speaker 3: because we're getting it. We're dining at the World's with
27:15
Speaker 3: the world's support.
27:16
Speaker 4: Right yeah, Well, carry here. Here's the upside of all
27:20
Speaker 4: of this stuff that's gloomatum stuff we're talking about. It
27:24
Speaker 4: is that the gold and silver mining stocks are just
27:28
Speaker 4: going to crush it because gold and silver miners with
27:33
Speaker 4: gold and silver at the current prices, the golden silver
27:35
Speaker 4: miners you see, all the existing mines out there were
27:39
Speaker 4: green lit at much lower golden silver prices. In other words,
27:43
Speaker 4: they were designed to be profitable with gold dollars. Yeah, yeah,
27:48
Speaker 4: So right now the golden silver miners are cash flow machines.
27:52
Speaker 4: They are generating massive amounts of new cash at today's prices,
27:58
Speaker 4: and they're using that cash to improve themselves. They're buying
28:02
Speaker 4: buying back their stock, they're paying off their debts, they're
28:06
Speaker 4: increasing dividends, they're going out and making a creative investments
28:10
Speaker 4: in other companies. And so these are just you know,
28:14
Speaker 4: the numbers for the gold and silver miners now are phenomenal.
28:18
Speaker 4: So they're they're going to be great investments in the
28:21
Speaker 4: next five years, and the people who see that coming
28:25
Speaker 4: are going to make a lot of money, you know,
28:26
Speaker 4: and it's still not very many people thanks to AI
28:32
Speaker 4: the AI bubble, now, people really aren't paying attention to
28:36
Speaker 4: how well the gold and silver miners are doing, and
28:38
Speaker 4: copper miners, by the way, those guys are just crushing
28:40
Speaker 4: it as well. Uh So with everybody watching the AI stocks,
28:47
Speaker 4: very few people are paying attention to the miners even
28:50
Speaker 4: though they're they're making fortune right now, so that means
28:53
Speaker 4: they're still cheap enough to buy at today's prices. So
28:57
Speaker 4: that's that's something that people who haven't looked into but
29:00
Speaker 4: yet should look into because you know, there are still
29:04
Speaker 4: a lot of five baggers out there that aren't even
29:07
Speaker 4: you know, little explorers that might go bankrupt. You know,
29:11
Speaker 4: there's some decent sized golden silver miners that are reasonably
29:15
Speaker 4: safe that could still quintopple your money in the next
29:20
Speaker 4: three to five years. So for people who are doing that, fantastic.
29:25
Speaker 4: For people who aren't doing it yet aren't buying those
29:27
Speaker 4: stocks yet, this is I mean, there's still time and
29:32
Speaker 4: there might be a little time in the coming year,
29:34
Speaker 4: but not that much. So pay attention, learn what you
29:36
Speaker 4: need to learn, and make that part of your investment philosophy.
29:41
Speaker 2: Exactly.
29:41
Speaker 3: Couldn't have said it better myself. And yeah, the stocks
29:46
Speaker 3: have come roaring back. A lot of stocks that really
29:50
Speaker 3: took a hit are in the throes of recovery, so
29:55
Speaker 3: that's a good thing. And make sure you go over
29:58
Speaker 3: to Rabino dot substance and get John's latest writing and
30:04
Speaker 3: financial survival Network dot com will take you to my
30:07
Speaker 3: sub stack.
30:08
Speaker 2: I've totally switched to it.
30:10
Speaker 3: The only thing I'm sorry about is that I didn't
30:12
Speaker 3: do it three years ago when John told me to.
30:15
Speaker 3: I should have listened. But but I'm having a great
30:20
Speaker 3: time with it. I've got another one, John, I told
30:23
Speaker 3: you about it, Palmbach Player, and it's basically a sat tire.
30:29
Speaker 2: It's a satire on wealth in Palm Beach.
30:35
Speaker 3: I hang out there occasionally and I see all the madness.
30:40
Speaker 3: So we've come up with a few indexes that I
30:43
Speaker 3: think you'll appreciate. We've got the Palm Beach Trophy Wife Index,
30:49
Speaker 3: which is the ultimate leading indicator because if the trophy
30:54
Speaker 3: wifs stop spending we're guaranteed we're going to have a recession.
31:00
Speaker 3: What upset the trophy wives recently and threw them off
31:04
Speaker 3: of their equilibrium was the renaming of Palm Beach International
31:08
Speaker 3: Airport to Donald J. President Donald J. Trump International Airport.
31:15
Speaker 3: That caused seizure in the Palm Beach economy. We've also
31:20
Speaker 3: got the Marriage Ultimate Counterparty Risk Index, and we've got
31:28
Speaker 3: the farm Team Palm Beach Trophy Wife Index because.
31:34
Speaker 2: They are the future.
31:37
Speaker 3: So and my latest article coming out a little takeoff
31:43
Speaker 3: on f Scott Fitzgerald. When it comes to inflation, the
31:47
Speaker 3: rich are different from you and me, so you could
31:50
Speaker 3: picture what that's about. And my latest book, we would
31:57
Speaker 3: be remiss if we didn't mention this The Speaker's Guide
32:00
Speaker 3: to avoiding tickets. You know, the ticket might cost you
32:04
Speaker 3: two hundred and fifty bucks a speeding ticket, but when
32:07
Speaker 3: they hit you with the insurance surcharge, it's going to
32:10
Speaker 3: cost you twenty five hundred to five thousand dollars. Just
32:13
Speaker 3: go to Speedersguide dot com. John always fun and we'll
32:18
Speaker 3: talk to you in a little.
32:19
Speaker 4: Bit, Hife.
32:20
Speaker 1: Gary Seeya, thanks for listening to carry Letz's Financial Survival Network.
32:25
Speaker 1: Your solution to today's trying times. For the latest, go
32:29
Speaker 1: to Financial Survivalnetwork dot com. Financial Survival Network now more
32:35
Speaker 1: than ever