Latest / Financial Survival Network / Navigating the Economy: Debt, Inflation, and the Urgency of Reform -- Ed Siddell #5938

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Navigating the Economy: Debt, Inflation, and the Urgency of Reform -- Ed Siddell #5938 · Financial Survival Network

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  When the jobs numbers came out, bond yields dropped almost a half a percent
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  last time I looked, And you know, everyone is saying that, you
• 0:08
  know, I see this is proof that we're going to have a soft landing,
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  because you know, bad news is good news, and I, you
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  know, I just think we're at the this is the tip of the iceberg.
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  You know, I really think we're at a tipping point with debt,
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  inflation, everything else. And you know, this may be a little bit
• 0:25
  of a rally, but I really believe that it's going to be short lived.
• 0:29
  You were listening to Carrie Letz's Financial Survival Network, where you get valuable
• 0:34
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• 0:39
  need the Financial Survival Network now more than ever. Go to Financial Survivalnetwork dot
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  com and get your free newsletter and gift. Financial Survival Network now more than
• 0:53
  ever. And welcome. You are listening to watching the fire Financial Survival Network.
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  I'm your host, Carrie Lutz. Well, we've gotten jobs numbers out
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  hey. Remember those are just the opening job numbers, the ones that gobble
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  up the headlines. They're not necessarily the actual number. They might not even
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  be close, because eight of the nine last months jobs numbers have been revised
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  downwards afterwards. What's that all about? Hey, got Eddie sidell on with
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  us? Now, got a question or a comment, write us an email
• 1:27
  kl at Carrie Lutz dot com and hey, Eddie, it's great to have
• 1:34
  you back. Oh, by the way, you find Eddie is website Egsfinancial
• 1:38
  dot com And hoope, I got that right, Eddie. It's great to
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  have you back. So what about these job numbers? They came in lower
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  than expected and we can probably expect a downward revision right go even downward further.
• 1:52
  Yeah, so thanks for having back and excuse me, you know,
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  and it's it's not a shock. I mean, everything's really starting to slow
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  down, and they do they keep revising all the numbers. They pump it
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  up to make it look good so that the economy is thriving. But you
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  know, we said this before, This is kind of like a silent recession.
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  And I would not be surprised if they revise these numbers downwards next month
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  even further, when did a true stats come out? In fact, i'd
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  be surprised if they didn't, Eddie. Yeah, yeah, I agree,
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  completely. You know, it is when the jobs numbers came out, bond
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  yields dropped almost a half a percent last time I looked, and you know,
• 2:31
  everyone is saying that, you know, I see this is proof that
• 2:35
  we're going to have a soft landing, because you know, bad news is
• 2:38
  good news, and I, you know, I just think we're at the
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  this is the tip of the iceberg. You know, I really think we're
• 2:45
  at a tipping point with debt, inflation, everything else. And you know,
• 2:50
  this may be a little bit of a rally, but I really believe
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  that it's going to be short lived. I had no doubt. I think
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  you are correct. I mean the other economic numbers are hardly encouraging as well,
• 3:00
  are they. Yeah, I mean they're really not, you know,
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  all the way across the board. The stats that came out that you know,
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  the what credit card debt is one point three four trillion dollars roughly,
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  and half of that was an increase or there was a fifty percent increase in
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  credit card debt in just over the last twelve months. And so we're talking
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  about this growing economy, but it's on the back of consumer debt, and
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  that is not the sign of a strong economy when consumer debt is going up,
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  and then you also have you know, savings going down at the same
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  time. So again, you know you've got consumer debts, you know,
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  the national debt, yeah both, you know, the the national debt and
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  then the unfunded liabilities that people aren't even talking about. And you know,
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  I don't know if we've hit the the point of no return. And if
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  not, boy, I'll tell you what. If we don't make any changes
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  soon, it's we're going to be pretty close, no doubt, no doubt.
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  We have a lot to look forward to here, don't believe so.
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  But the economy in general, we got wars going on their insfalation, ay
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  by their very nature as so you just print more money out of thin air
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  to pay for these things. The last war that got paid for out of
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  real money I think was Napoleon. He sold the Louisiana territory to the United
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  States, took that money and wisely invested it in war and being facetious.
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  And we haven't learned anything since then, have we. Yeah, you know
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  the old saying, you know, if you don't learn from history, you're
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  destined to repeat it. And you know, and we're talking about recent history.
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  I mean, we're we're kind of following, you know, what Argentina
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  is doing, but you know, at a much grander scale. You know,
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  they're having one hundred percent inflation year over year. I mean, obviously
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  we're not there yet, but you know, we've got two proxy wars we're
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  getting ready to looks like possibly a third one, and even more so in
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  the same bad actors are involved in all three of those fronts. So you
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  know, we're exporting our our energy needs to our enemies instead of you know,
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  developing it here. And so I mean, we just continue to back
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  ourselves at a corner, you know. And and then the other part that's
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  really been frustrating is not just Janet Yellen, but you know, all all
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  the Treasury secretaries. Nobody has refinanced our debt over a longer period of time.
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  We've been doing it over ninety down is what we're you know, two
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  years instead of locking in you know, these these long term rates at you
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  know, one hundred and twenty one hundred and fifty, one hundred and eighty
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  basis points, and now we're stuck at you know, four and a half
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  five percent, which is yeah, I mean that takes a huge chunk out
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  of our budget, which we're not following, you know. Anyways, Yeah,
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  well what's a budget. We haven't had a budget. We just have
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  continuing resolutions locking and spending and increasing the spending. Right, Well, that's
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  exactly it. So it'll I mean, it'll be interesting to see what the
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  new speaker does, Mike Johnson, and and if he does, uh,
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  lead us, because I think we've we've been devoid of any kind of leadership,
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  I mean real leadership in d C. This isn't Republican or Democrat thing.
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  I mean on any side of the fence. It's all about spending and
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  special interest and in everything else. So you know, let's let's uh,
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  let's see if they have the Americans in mind. And you know, I
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  guess we'll we'll learn soon enough. Yeah, I guess we will at that.
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  So, so what do you think is gonna happen here with with the
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  economy, with the economy and the budget and all of that good stuff.
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  So well, let's do the first one, which is the easiest one,
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  which is the budgets. You know, I think the House is so fractured
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  it's going to be impossible to get a budget passed. I really do.
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  Unfortunately, I have a bad feeling that they're going to raise the debt ceiling
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  limit again. You know, I mean the whole purpose of that ceiling is
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  to say, oh, here we go. That's that's the stop loss.
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  You can't go any further. But you know, again in DC, you
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  know, anything and everything seems to be possible as far as spending our mind
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  and that kind of it's something that you mean, when it comes to cooking
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  the books, anything that's possible. Right, Actually acting responsibly, that's a
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  whole different story, isn't it. You know, it really is. We're
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  we're pushing thirty four trillion dollars already. It's it's you know, over thirty
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  three point seven trillion right now or right at it. It excuse me,
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  but we're not even talking about the unfunded liabilities, you know, social Security,
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  Medicare, government pensions. You know, in twenty eleven, it was
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  estimated that those unfunded liabilities were roughly one hundred and twenty eight trillion, and
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  just in case, so, unfunded liability is kind of like having a thirty
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  year mortgage and you don't have the money for it. So that's why you
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  get the work. So it's a debt that's a you know, a certain
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  period of time that's a wonderful thing. Uh yeah, yeah, especially at
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  eight percent, right, And so these unfunded liabilities it was one hundred and
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  twenty eight trillion back then. The CBO out with a report at the end
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  of twenty nineteen estimating that it was going to be roughly one hundred and sixty
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  one sixty five trillion. The new estimate that's supposed to come out in March
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  of twenty twenty four for twenty twenty three is estimating that, you know,
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  it's going to be as high as one hundred and eighty four trillion. On
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  top we you know, thirty four trillion. I mean, we're well over
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  two hundred trillion dollars. So we I keep talking about this debt bump.
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  You know, this is inflation. We're fighting wars on multiple fronts. Are
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  about to I mean we are, no one's even talking about them yet now.
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  And this is why from a market standpoint, as it relates to the
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  economy, you know, investing short term I don't. I'm not even a
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  big fan of short term treasuries right now because NOE looking up at the auctions
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  and so the US is the only one who who's who's buying those those treasuries.
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  And we'll find out for sure again next Wednesday, you know, during
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  the next option meeting. But you know, as as we look at all
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  this debt, the Feds have two options. They can either deflate it or
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  inflate it. While we all know on recent history in the last you know,
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  twenty thirty years, they're going to inflate it, especially to cover these
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  wars, and so that value of the dollar is going to continue to go
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  down. And that's my biggest fear right now is you know, we could
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  be living in a much different world, you know, down the road than
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  what we are right now. So you know, having short term instruments,
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  you know, cash, gold, silver, and commodities, because commodities have
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  significantly outpaced the SMP not just this year but over the last couple of years,
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  especially in inflationary time. So those companies that that are are part of
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  that, whether it's exceon mobile, you know, mining stocks, et cetera.
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  You know, as as far as if you want to part to speed
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  in the market. But I think right now patients is going to be the
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  virtue that's going to save those people who take part in that. All right,
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  Well, we could go on a bit more on this, but it's
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  kind of inevitable here. Is there anything out there that you see that can
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  change the path that we're heading on here? Ready? You know, if
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  Mike Johnson and Congress they all get together, they start cutting expenses, get
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  rid of special interest, keep track of where the money is going that we're
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  spending overseas in these wars, and actually audit and figure it out. We
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  may have a chance. I'm not in the camp yet that we are past
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  the point of no recharter because I'm still hopeful, but if we don't do
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  something quickly between now and the next twelve to eighteen months, it might be
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  too late to come back. All right, Well, I guess we'll leave
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  it at that. Hey, link to Eddie's site is in the show that
• 10:56
  to this interview on Financial Survival Network dot com. Make sure you sign a
• 11:00
  free free newsletter and got a question and comment for Eddie or myself, shoot
• 11:03
  me an email kl at Carrie LUTs dot com. Eddie, I wish the
• 11:07
  news was better, but it's always great talking to you. Absolutely have a
• 11:11
  great weekend. Thanks for listening to Carrie Letz's Financial Survival Network your solution to
• 11:16
  today's trying times. For the latest, go to Financial Survivalnetwork dot com.
• 11:22
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