Latest / Financial Survival Network / It's the Debt Stupid -- Brad Williams #5816

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It's the Debt Stupid -- Brad Williams #5816 · Financial Survival Network

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  That's why he's bricks in. These these countries are getting together, say we
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  need an alternative a dollar. These guys are taking us to cleaners because we're
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  loaning the money, and they're they're paying us back with discounted dollars because they're
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  inflating the dickens out of them. And that's that's the insidious tax of a
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  government gone awry. Yeah. And that's a hidden tax too, isn't it.
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  Yeah, because you don't really see it. You know. It's like
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  I tell people, you may put that dollar in the bank, but the
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  dollar you get backs a smaller dollars still looks the same as it feels the
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  same. It's just smaller. You're listening to Carrie Let's his Financial Survival Network
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  Survival Network now more than ever. Welcome you are listening to the Financial survivell
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  Network. I'm your host, Carry Lutz. Well, the economy it's bleak,
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  it doesn't look good. Things continue to deteriorate, and we've got the
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  debt ceiling kabook game dance going on right now. What is going to be
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  a net result of all this? Well, hey, I'd like to know
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  your opinion. Tell me what you think. Email me k l at Kerry
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  Lut dot com. In the meaningtime, we've got Brad Williams. You find
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  him at ask Brad Williams dot com. Brad Economy anything good to report?
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  Well, yeah, I mean, you know, inflation seems to be slow.
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  In deployment still about one and a half jobs per jobs here, in
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  consumer spending positive. The problem is is the underlying foundation and that's where we
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  have the real problem. I mean, when we have a Chairman of the
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  or the Secretary of the Treasury that doesn't see inflation coming. You know that,
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  you said back in twenty twenty one, it kind of makes you scratch
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  your head. When you print all the money, inflation is going to follow
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  it, period and uh, and we're seeing that. Wait wait wait,
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  I thought the uh there were two infallible people in the world, the Pope
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  and the chair well the chairman of the Federal Reserve and the Secretary of Treasury.
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  That's three people that never make mistakes. You're berthing my bubble here broad
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  well when I when I hear you say, and three is probably appropriate because
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  it reminds me of those monkeys that's there, you know here evil see no
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  evil speak no evil. You know. Um, but uh, you know
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  we've got things are starting to damp and wage growth is slowing and labor demand
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  is slowing. So you know, it's not the job seekers market that it
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  used to be. All the you know, it's still not bad, it's
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  just you're not getting to raise you were so um people are I think starting
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  to stay at the jobs more so. We're seeing some of that. But
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  like what you said, you know about all this debt ceiling KABOOKI For a
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  while back I did a and this was even about god, this was just
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  background. Seventeen, two thousand seventeen, I did a client dinner where I
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  did what I call the Tale of two budget and I said, you know,
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  I preface it with your kid comes in, he's got a problem.
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  You're looking at his credit card debt and spending every year and his income and
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  all that the stuff, and you're going over it, and you're going over
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  it in real numbers that you might see in a budget, and I said,
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  would you lend this? Would you bail's kid out? Well, no,
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  I'd straightened this butt out and telling him he needs to get a handle
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  on his spending and get out of debt. And then what I did was
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  I flipped the page Gary and I added all his years necessary to be the
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  federal budget. And everybody was just kind of shock, you know, And
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  I said, so, why aren't we lending these people money? There?
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  You know, you can say spending like a drunken sailor on a short lea.
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  At least he's spending his own lend. Yeah, well that's an insult
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  to all drunken sailors. Really, he's a performative valuable functions. And if
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  you had employees and all they did was lose money for you, and all
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  they did is make your company go further and further into debt, would you
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  keep those people around or would you like fire there uses? You know,
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  I think pink slips would be in the in the very near future. The
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  problem is is we have so federal employees, not not disinfederal employees, but
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  the federal government doesn't have to turn a profit. So that's that's part of
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  Our problem is accountability, and you know, our conishman and senators as greatest
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  accomplishments and getting reacted every two and six years. That seems to be what
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  they're more concerned about than anything else. So they don't want the gravy train
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  to end, just like anyone else out there, all right, right,
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  Yeah, and then when you get people responsible that are saying, hey,
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  we just can't keep spending this money. I mean, when you think of
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  the fact we are five trillion dollars in two thousand national debt and now we're
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  we're thirty one getting pushing thirty two treeing. You know, that's why he's
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  in these these countries you're getting together, say we need an alternative to dollars.
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  These guys are taking us to cleaners because we're loaning the money and they're
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  they're paying us back with discounted dollars because they're inflating that dickens out of them.
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  And that's that's the insidious tax of a government gone awry. Yeah.
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  And that's a hidden tax too, isn't it. Yeah, because you don't
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  really see it. You know. It's like I tell people, you may
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  put that dollar in the bank, but the dollar you get back to a
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  smaller dollars, still looks the same, it feels the same, it's just
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  smaller, and so you don't get as much for it. Yeah, so
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  it goes, it goes less, right, dollars not going as far as
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  it used to. We all know that, right, right, So what
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  do you do about it here because we don't have any control over our out
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  of control federal government. Well, I think probably on a micro level,
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  is really looking at your spending patterns and what you're what you're what you're buying.
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  I know a lot of people are cutting the cave off and things like
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  that. When you look at the excretionary spending that people have today versus say,
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  you know, thirty years ago or forty years ago, there's nothing stuff
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  on. They're spending money on the stuff that we'd spend money on thirty and
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  forty years ago. It becomes a larger and larger portion of the bud So
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  you got to look at that and tighten that down. If you're getting close
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  to retirements, you need to start thinking about de risking your portfolio and looking
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  more at income and looking at some of the safer alternatives to preserve your capital.
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  You know, I had one guy coming this week and he was asking
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  me, I got all this cash in the bank, and you know,
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  I'm afraid the banks that they're going to go out. And I was just
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  wondering should I take a bunch of that cash and put it in silver just
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  as a hedge? And I said, what are you planning on doing with
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  that money? And he said, well, in a year, we're going
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  to use it for a house. And I said, well, last thing
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  you want to do is pay an extremely high premium to buy a lunch of
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  silver to protect it, you know, because they know what's going on with
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  precious metals and the premiums you're getting on those, if you're going to buy
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  them for emergency or for the you know, for apocalypse, then who cares
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  what you pay for it? Now you'll have it when you need it.
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  But the premiums on silver, especially now, are almos much as a coin,
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  right, Okay? So silver, gold, and uh, what else
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  can we do? Well? Um, looking at investments that provide you an
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  income. Um. You know, last year texts were down here, they're
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  up a lot of other stocks or you know, you had what five or
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  six stocks. It really drove sixty percent of SMP so far this year,
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  mainly tech stocks. UM. The key is and if you're getting income from
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  your investments, if you're getting a good dividend from your portfolio, UM,
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  then you can weather these storms. If you're in it for the long term,
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  if you're if you're coming out of the accumulation stage going into the distribution
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  stage of life, you know you're you're getting ready to retire and live off
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  what you work for. Then you start you need to start changing what you
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  do because is the rules that you live by to get you where you are
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  now are not the ones that are going to get you through, all right,
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  So different rules now govern a game pretty much if you look at it
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  like a football game. You know, you can go out that you're the
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  coach and you go out there and it's all sunny, and you got this
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  great passing game. You got a good passing quarterback, and you want yardage.
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  You want to put points on the board. Okay, great, Well
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  the second half rules around and during halftime show you got a downpour. You
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  know your field's just totally muddy. Well, that pass game's gone. You
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  need a good running game and you need to grind that thing out and maybe
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  you're getting yardage, and that's which in times like this, that's what you
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  need to look at your portfolios. This is not a time to go for
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  big games. This is a time for a good income and steady growth.
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  So go for income knock gains. We have both, but preface setting even
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  those games on things that are going to provide you a good didn't all right,
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  So so income first and foremost, but the dividends yields on these ox
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  are not keeping up with inflation either. Well, and you're you know you're
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  going to have that problem right now. And so if you've got growth mixed
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  in there and you're in the rights ox and you're you're in good companies,
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  you'll weather the storm. Now again, if you're right at retirement, you
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  may look at at other alternatives. And you know, the noodies are gaining
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  in great popularity now and for good for reason. They're not for everybody and
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  they're not the end at all solution for everything, but a lot of what's
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  said about them and the media is incorrect, and so looking at that might
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  be a solution for you, and just looking at things not being all in
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  one basket. Now, if you're forty years old, This is a buying
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  an opportunity when the market's going down, well to buy more because you're buying
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  things into a discount, you're not gonna need it for a while. What
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  I'm speaking at about in as those people that are you know, say fifty
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  five that need to start transitioning out of their risk based investments, right,
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  all right, So it all depends upon your your your point in life that
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  you are, you're the accumulation stage still or at the point where you're going
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  to have to start stop accumulating and start spending your savings. Right, That's
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  exactly right, because you you know, you want you want to try to
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  eat the egg and not the chicken. Yeah, that's not always possible though,
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  especially with the way returns have been. I think the public at large
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  and many of you out there are where it got used to got spoiled by
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  these excessive rate of return that the stock market got past fourteen years. And
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  now reality is starting to dawn on you, exactly. And if you look
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  at like you said, that's a that's a great, a great comment you
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  made about the last fourteen years. If you look at the market from two
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  thousand and thirteen, because from two thousand and two thousand and three, it
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  dropped fifty percent, raised back up to two thousand and seven, two thousand
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  and seven and nine drop sixty percent, an inbow thousand and thirteen or so,
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  it was back to where it was in two thousand. A lot of
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  people are looking at these returns over the last fourteen years from the bottom of
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  two thousand and nine. Well, if you were in the market prior to
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  that, you got to look at it from two thousand and thirty eight,
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  and the returns aren't as stellar. They were good, but they weren't as
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  stellar as you know, as a as you look at from two thousand and
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  nine. You know the old saying, I mean, you got to look
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  at the numbers. Don't lie, but you got to make sure you're looking
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  at the right numbers. What is there? There's lies, There's damn lies
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  in their statistics. Yeah, yeah, I think Churchill said that. Yeah,
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  I think, and that's true now more than ever. So when we
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  have this conversation in a year, Brad, where do you think things are
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  gonna be at that point? I think that really is going to depend on
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  things like Ukraine, things like Taiwan, because being overly aggressive, right,
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  now we've got some Joe political issues we haven't really faced a long time.
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  We're in one of those generational times where things can go pretty wildly in different
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  directions, and so I think people need to play their cards close to their
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  vas and pay attention. Okay, I think we will leave it at that.
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  Appreciate it. So we find you at ask Brad dot com. Ask
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  Brett Williams dot com. Do I have that right? That's right? If
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  you got a financial question, just ask Brad Williams all right, and the
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  link is in the show notes this interview on Financial Survival Network dot com.
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  If you've got a question for Brad myself heyl at carey lets dot com.
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  Make sure when you're at the site you sign up for a free newsletter.
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  Brat always a pleasure. We'll talk to you again soon. Thank you,
• 12:54
  Carryalls Pleasure beyond. Thanks for listening to carry Let's Financial Survival Network, your
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  solution to today's trying times. For the latest, go to Financial Survival Network
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  dot com. Financial Survival Network now more than ever