Latest / Financial Survival Network / National Debt Threatens Economic Stability - Elliot Kallen #6222

Transcript

National Debt Threatens Economic Stability - Elliot Kallen #6222 · Financial Survival Network

• 0:00
  Speaker 1: And that is that the quiet eight hundred pound gorilla
• 0:02
  Speaker 1: in a room is thirty one trillion dollars thirty two
• 0:05
  Speaker 1: trillion dollars of debt. At some point that becomes instrumutable
• 0:10
  Speaker 1: in our lifetime, and that will just kill the US
• 0:13
  Speaker 1: treasure market, which will kill inflation, and which will drive
• 0:16
  Speaker 1: up inflation and so forth and so on.
• 0:17
  Speaker 2: You're listening to Carrie Leutz's Financial Survival Network, where you
• 0:21
  Speaker 2: get valuable information you just can't find anywhere else to
• 0:25
  Speaker 2: thrive in today's trying times. You need the Financial Survival
• 0:29
  Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
• 0:34
  Speaker 2: com and get your free newsletter and gift. Financial Survival
• 0:38
  Speaker 2: Network now more than ever.
• 0:45
  Speaker 3: And welcome.
• 0:45
  Speaker 4: You are listening to and watching the Financial Survival Network.
• 0:49
  Speaker 4: I'm your host, Carrie Letz, and today we've got a
• 0:53
  Speaker 4: returning guest, Elliott Collen and from my home state of
• 1:01
  Speaker 4: New York and Elliott's financial expert. Elliott. We have this
• 1:08
  Speaker 4: election all right. You're in the People's Republic of California.
• 1:12
  Speaker 4: Now you're watching the place literally burn to the ground.
• 1:17
  Speaker 4: Very disturbing, and we've got a change of administrations coming.
• 1:23
  Speaker 4: But the overall economy they're trying to tell us, is wonderful,
• 1:27
  Speaker 4: everything's coming up roses. If you're an average person on
• 1:31
  Speaker 4: the street, you know better than that. Yeah, if you're
• 1:34
  Speaker 4: in the upper ten percent of income earners, not as bad.
• 1:38
  Speaker 4: But inflation out of control. They say it's coming in
• 1:43
  Speaker 4: control or under control. But again, you know, you go
• 1:47
  Speaker 4: to the supermarket and you scratch your head and say, man,
• 1:51
  Speaker 4: this stuff is still getting more expensive every time I go.
• 1:54
  Speaker 4: So economic reality versus political reality, where are we?
• 1:59
  Speaker 1: Well, Well, first of all, carry thank you so much
• 2:01
  Speaker 1: for having me on. It's great to be here. You're
• 2:04
  Speaker 1: at Florida. I'm in northern California, and you're right, we're
• 2:06
  Speaker 1: on fire in southern California, and we should talk about
• 2:10
  Speaker 1: that and how that's going to affect the economy of California,
• 2:14
  Speaker 1: because that's actually really important subject for the western half
• 2:18
  Speaker 1: of the United States because it will effect at least
• 2:20
  Speaker 1: a third of the United States the fires in California,
• 2:23
  Speaker 1: and we just had an election, and that's going to
• 2:25
  Speaker 1: affect everybody and all of us. So let's talk about
• 2:28
  Speaker 1: what happened here first, if we could, and that is
• 2:31
  Speaker 1: that you and I both know with consumers that there's
• 2:33
  Speaker 1: no such thing as three percent inflation or three and
• 2:35
  Speaker 1: a half or whatever they think there is. Because I
• 2:38
  Speaker 1: shop and I cook, and I buy wine, and you
• 2:40
  Speaker 1: do the same thing or whatever they like to drink,
• 2:44
  Speaker 1: everything is up significantly. Every dinner is up. I go
• 2:47
  Speaker 1: out to dinners all the time because I write about high,
• 2:51
  Speaker 1: good quality food. There's nothing even close to what I
• 2:55
  Speaker 1: paid two years ago for dinner. There's nothing even close
• 2:58
  Speaker 1: to wine what I pay two years ago. I think
• 3:00
  Speaker 1: the best example of that is one of my favorite
• 3:02
  Speaker 1: wineries is Pine Ridge up in Napa.
• 3:05
  Speaker 3: I i'ven't been there, yeah, yeah.
• 3:06
  Speaker 1: And my favorite one there. I actually have a vine
• 3:10
  Speaker 1: named after me at pine Ridge.
• 3:12
  Speaker 4: No any Yeah, they made a great chardonnay. Yeah, really
• 3:18
  Speaker 4: liked the place. Beautiful, beautiful, little smaller winery when I
• 3:21
  Speaker 4: was there.
• 3:22
  Speaker 1: It's all by treasuries, not as small as it once
• 3:24
  Speaker 1: was now treasure once and they have their their top
• 3:28
  Speaker 1: of the line wine is fortys f r T A
• 3:31
  Speaker 1: s then trying to do a commercial for Pine Ridge,
• 3:34
  Speaker 1: but I've been buying that since that came out, and
• 3:36
  Speaker 1: when I started buying that twenty years ago, it was
• 3:39
  Speaker 1: eighty five dollars a bottle, which was the very high
• 3:42
  Speaker 1: end of my budget twenty five years ago for red wine,
• 3:45
  Speaker 1: and today that's two eighty five to three twenty five.
• 3:49
  Speaker 1: And I was in there not too long ago, as
• 3:51
  Speaker 1: they donated to our charity. They're very, very generous people.
• 3:54
  Speaker 1: And I said, I want to really ask you. The
• 3:56
  Speaker 1: question when I started buying was eighty five. It's four x.
• 4:00
  Speaker 1: Can you tell me this wine is four times better
• 4:02
  Speaker 1: than what it was twenty years ago? You can't? And
• 4:05
  Speaker 1: he said, no, it's probably exactly the same. Our costs
• 4:08
  Speaker 1: have gone up, but anything over now eighty to one
• 4:10
  Speaker 1: hundred dollars, it's now based on what the wine maker
• 4:13
  Speaker 1: wants to sell it for what can he get for it.
• 4:15
  Speaker 1: And that's kind of what's going on with eggs and
• 4:19
  Speaker 1: with bread. And you know, I'm shocked that I'm paying,
• 4:23
  Speaker 1: you know, five and a half dollars for a dozen eggs.
• 4:25
  Speaker 1: It's Safeway in California, and it's the numbers.
• 4:29
  Speaker 4: Go to health Whole Foods if you really want to
• 4:31
  Speaker 4: be shocked. I paid seven dollars for cage free, free
• 4:36
  Speaker 4: range organic eggs, and you know it's three bucks a
• 4:41
  Speaker 4: couple of years ago.
• 4:43
  Speaker 1: Yeah, And we could argue with her that's a cage
• 4:45
  Speaker 1: free and organic are good moves for you. I'm not
• 4:48
  Speaker 1: sure that that's another subject when you gets somebody on
• 4:51
  Speaker 1: from that industry. But everything is up. So as a consumer,
• 4:54
  Speaker 1: we know it costs more than ever to do everything.
• 4:57
  Speaker 1: Filling up my car is still really expensive. I mean
• 5:00
  Speaker 1: that probably will come down a little bit. Plastics, paper,
• 5:04
  Speaker 1: coffee super expensive. My electric bill is up about fifty
• 5:08
  Speaker 1: percent over the last three years in California and now
• 5:12
  Speaker 1: going to go up even more now with the fires.
• 5:14
  Speaker 1: And so we voted with a wallet. You've got a
• 5:16
  Speaker 1: new president coming in on the twentieth of January, and
• 5:20
  Speaker 1: there are a lot of things that are going to
• 5:22
  Speaker 1: happen short term and long term, some for the right
• 5:26
  Speaker 1: reasons and the good and some that could have negative consequences,
• 5:29
  Speaker 1: and the both political sense and from the economic side,
• 5:32
  Speaker 1: which you and I live at economic side, we have
• 5:34
  Speaker 1: to live with what is the fallout of politics and
• 5:36
  Speaker 1: the economy for the federal level or the world calls
• 5:39
  Speaker 1: macro and how does that affect our micro level and
• 5:42
  Speaker 1: the stockwater.
• 5:43
  Speaker 4: Yeah, so Trump talks about bringing prices down by increasing
• 5:49
  Speaker 4: energy production. But you know, Milton Friedman said, God almost
• 5:56
  Speaker 4: sixty seventy years ago. Inflation is always first and almost
• 6:00
  Speaker 4: a monetary phenomena, and we're running these, you know, multi
• 6:05
  Speaker 4: trillion dollar deficits. We're printing the difference, and the only
• 6:10
  Speaker 4: thing that's really keeping the country afloat is the perception
• 6:13
  Speaker 4: of the safe haven and money flowing in from the
• 6:17
  Speaker 4: rest of the world, which is even in worse shape.
• 6:19
  Speaker 3: Than we are.
• 6:20
  Speaker 4: So I always like to say the United States economy
• 6:24
  Speaker 4: is the is the best looking house in Baltimore.
• 6:29
  Speaker 1: Well, let's call the best looking horse in the glue factory.
• 6:32
  Speaker 3: How's that best? The least dirty shirt in the laundry?
• 6:36
  Speaker 4: Right?
• 6:36
  Speaker 3: All that?
• 6:37
  Speaker 1: All that, so, let let me go back for a moment,
• 6:40
  Speaker 1: because you really bring up some good points that a
• 6:42
  Speaker 1: lot of people don't understand, Kerry, and that is that
• 6:44
  Speaker 1: the quiet eight hundred pound gorilla in a room is
• 6:48
  Speaker 1: thirty one trillion dollars thirty two trillion dollars of debt.
• 6:51
  Speaker 1: At some point that becomes insturmountable in our lifetime, and
• 6:56
  Speaker 1: that will just kill the US treasure market, which will
• 6:58
  Speaker 1: kill inflation, and which will rive up inflation and so
• 7:00
  Speaker 1: forth and so on. I'm hoping that the appointing of
• 7:05
  Speaker 1: a couple of you know, tycoons to give ideas to
• 7:09
  Speaker 1: cut government will be the first step in the right direction.
• 7:11
  Speaker 1: I'm hoping everybody's hoping that these two gentlemen that are
• 7:15
  Speaker 1: going to make recommendations for Congress, and Congress is going
• 7:18
  Speaker 1: to show some fortitude and body parts and try to
• 7:21
  Speaker 1: begin to rein in that budget. And there are some
• 7:23
  Speaker 1: budget hawks out there, and we've got to get our
• 7:26
  Speaker 1: acted in order. And the last time we had one
• 7:29
  Speaker 1: year of balanced budget was when Bill Clinton was president,
• 7:32
  Speaker 1: and that's his third year, and I.
• 7:34
  Speaker 3: Was with fake.
• 7:35
  Speaker 4: That was fake because they were spending the Social Security
• 7:38
  Speaker 4: surplus and you know, that's just the eating the seed
• 7:43
  Speaker 4: corn basically.
• 7:45
  Speaker 1: So we got to stop that. Well, get our financial
• 7:49
  Speaker 1: fiscal house and order. Now, if that happens, Carrie, and
• 7:52
  Speaker 1: we're actually able to make some steps in the right direction,
• 7:55
  Speaker 1: there's going to be a great reaction in the marketplace.
• 7:58
  Speaker 1: So that's the fiscal side of it. We've already had
• 8:00
  Speaker 1: two interest rate decreases in the last two quarters. We're
• 8:03
  Speaker 1: not going to get another one before the summer. Will
• 8:05
  Speaker 1: depend on how the economy goes, So it's not going
• 8:07
  Speaker 1: to be that the US treasuries went up. That's goofy.
• 8:10
  Speaker 1: They shouldn't go up, but they'll come back down, probably
• 8:12
  Speaker 1: by the end of the first quarter. So now the
• 8:14
  Speaker 1: fiscal side is kind of okay for the moment. What
• 8:17
  Speaker 1: you've got to have here is a lower cost of
• 8:20
  Speaker 1: product out there. And so what Trump did in his
• 8:23
  Speaker 1: first administration forgetting tariffs and all that is he was
• 8:27
  Speaker 1: able to drive drilling prices down for oil by really
• 8:31
  Speaker 1: pushing the heck out of domestic production. So if you
• 8:36
  Speaker 1: think I should invest in the oil industry, they really
• 8:38
  Speaker 1: had a crappy period. Those are not good investments because
• 8:43
  Speaker 1: you know, when oil goes to one hundred and twenty
• 8:44
  Speaker 1: dollars a barrel, the chevrons and the shells make a
• 8:47
  Speaker 1: lot of money. When it goes to thirty five dollars
• 8:50
  Speaker 1: a barrel and a one day action went to zero.
• 8:52
  Speaker 1: When it goes down that way, they don't make much money.
• 8:54
  Speaker 3: One negative. So I have an idea for cutting costs.
• 9:00
  Speaker 1: It would make money in that industry would be transportation
• 9:02
  Speaker 1: of oil because that would go up. And that's Warren
• 9:05
  Speaker 1: Buffett's dream because he controls the oil out of North Dakota.
• 9:09
  Speaker 1: He would love for more oil to come out of
• 9:10
  Speaker 1: North Dakota, no matter what he tells you on the
• 9:12
  Speaker 1: other side.
• 9:13
  Speaker 4: Yeah, well, we might just get the pipeline put through
• 9:17
  Speaker 4: this time and actually built, which would break Buffett's monopoly.
• 9:21
  Speaker 4: But I have a way to cut government costs, get
• 9:24
  Speaker 4: rid of like a large portion of the workforce. The
• 9:28
  Speaker 4: next time, you know, when there's a snowstorm in DC,
• 9:32
  Speaker 4: they always say only essential workers.
• 9:37
  Speaker 3: Have to come in. Everybody else can stay home.
• 9:40
  Speaker 4: The next time they do that and the essential workers
• 9:44
  Speaker 4: show up, they should just fire everybody who stayed home,
• 9:48
  Speaker 4: and then we'd only have essential workers. Which like, if
• 9:51
  Speaker 4: you run a business, how many non essential workers.
• 9:55
  Speaker 3: Do you have in your company? Elliott?
• 10:00
  Speaker 1: But I know, you know, the government is working on
• 10:02
  Speaker 1: about seven percent. The buildings are about seven percent occupy. Wow,
• 10:06
  Speaker 1: and half of that is custodial staff. So it's really
• 10:09
  Speaker 1: two to three percent.
• 10:10
  Speaker 3: That's all cleaning up.
• 10:13
  Speaker 1: Works with feral government. I tell you that carry my
• 10:15
  Speaker 1: sign full disclosure. Works for the US government. It fed
• 10:19
  Speaker 1: a reserve. Uh. And he said, and they've never not
• 10:23
  Speaker 1: been all back at work.
• 10:25
  Speaker 3: Yeah, well maybe that's a good thing, because there is.
• 10:29
  Speaker 1: Your best.
• 10:31
  Speaker 3: Yeah.
• 10:31
  Speaker 4: Well, I'm being facetious, but not really, because you know,
• 10:35
  Speaker 4: we got this. It's a cost cutter is dream assuming
• 10:40
  Speaker 4: it can happen, and I think that forget about the
• 10:44
  Speaker 4: players involved. I feel like we've reached a tipping point.
• 10:49
  Speaker 4: We saw it with Reagan where he was going to
• 10:52
  Speaker 4: reinvent government and get rid of all the dead weight,
• 10:56
  Speaker 4: and that kind of failed. He cut taxes, but he
• 11:00
  Speaker 4: never was able to cut spending. This, I feel like
• 11:03
  Speaker 4: we're at an inflection point where it really will get done.
• 11:07
  Speaker 4: Because Trump doesn't have to care about reelection. He can
• 11:12
  Speaker 4: exercise his impoundment authority, which the Supreme Court during Nixon
• 11:16
  Speaker 4: said he didn't have any. But traditionally throughout history, the
• 11:21
  Speaker 4: president didn't have to spend money that Congress allocated.
• 11:26
  Speaker 3: It's going to be a big fight, but I.
• 11:29
  Speaker 4: Don't believe that any congressman will ever voluntarily cut spending
• 11:35
  Speaker 4: unless he's really cares about the future of the company,
• 11:39
  Speaker 4: the country and not his reelection.
• 11:43
  Speaker 1: You're probably more right than wrong. I can't disagree with you.
• 11:46
  Speaker 4: I mean, nobody gets credit for not spending money.
• 11:52
  Speaker 3: You only get credit for.
• 11:55
  Speaker 4: That new firehouse, the Interstate highway, especially in Florida that
• 11:59
  Speaker 4: gets widened, and you know, you only get credit for
• 12:03
  Speaker 4: projects you don't get credit for saving money and keeping
• 12:08
  Speaker 4: the government solvent. But maybe we've hit the point where
• 12:13
  Speaker 4: that's going to change.
• 12:14
  Speaker 1: So let's put a couple out there, a couple more
• 12:16
  Speaker 1: gorillas out there that could really rain on everybody's parade.
• 12:20
  Speaker 1: And that is the macro political world, and that is
• 12:24
  Speaker 1: Iran and China and maybe Ukraine and Russia. Is that
• 12:28
  Speaker 1: expands a little bit. So if you've got Iran in there,
• 12:32
  Speaker 1: you've got they're exporting oil to China for below market.
• 12:36
  Speaker 1: If Israel decides to put an end to that and
• 12:39
  Speaker 1: says we're going to take out their facilities once and
• 12:42
  Speaker 1: for all because they're funding terrorism, then you could have
• 12:45
  Speaker 1: Iran respond and saying, then we're going to blow up
• 12:47
  Speaker 1: the port on Saudi Arabia and that will disrupt the
• 12:50
  Speaker 1: oil and then oil will not be thirty five dollars
• 12:52
  Speaker 1: a barrel in the future, it will be one hundred
• 12:54
  Speaker 1: and fifty dollars a barrel. So that would change everything.
• 12:57
  Speaker 1: And number two is China. China is a wildcard and
• 13:01
  Speaker 1: it wants to be the world power, the not one
• 13:04
  Speaker 1: of the world powers, but the only world power and
• 13:07
  Speaker 1: political power. And that is we're at war with China.
• 13:11
  Speaker 1: But lots of people don't want to recognize that right now,
• 13:14
  Speaker 1: much like we were at war with Japan and in
• 13:16
  Speaker 1: the late twenties and thirties, but we didn't recognize that.
• 13:20
  Speaker 1: And so those things could really rain on the parade
• 13:23
  Speaker 1: for all Americans because we actually go to war with
• 13:26
  Speaker 1: China or some proxy war with China and Russia, which
• 13:31
  Speaker 1: Ukraine is a proxy war with Russia for the United
• 13:34
  Speaker 1: States right now, then you're going to have the whole
• 13:37
  Speaker 1: conversation about how much money is the Pentagon sucking up?
• 13:41
  Speaker 1: And how do we restock and rebuild the American Armed Services?
• 13:48
  Speaker 1: People add product here that will drive the economy up, Well,
• 13:52
  Speaker 1: that'll drive that Money's gonna have to come from somewhere.
• 13:55
  Speaker 4: Yeah, Well, those are the unknown unknowns as they call them.
• 13:59
  Speaker 4: We got an of known unknowns to keep us busy
• 14:02
  Speaker 4: for a while. So the question, Elliott is, how do
• 14:05
  Speaker 4: you like, how do you plan for a retirement? How
• 14:09
  Speaker 4: do you what do you invest in in this crazy world?
• 14:12
  Speaker 4: Do you just go for defense stocks? But he's going
• 14:16
  Speaker 4: to cut back on the military industrial complex supposedly. I
• 14:19
  Speaker 4: mean I'm at a bit of a loss.
• 14:22
  Speaker 1: That's a good question. Where do you where do you
• 14:24
  Speaker 1: put your money. So if we if we take the
• 14:26
  Speaker 1: spectrum of aggressive and passive, let's start with the passive person.
• 14:31
  Speaker 1: We've had a couple of really bad years in a
• 14:33
  Speaker 1: bond market. I think this will be a really good
• 14:36
  Speaker 1: bullish year after the first quarter. I think the first
• 14:39
  Speaker 1: quarter continues to be a little bit of pain in
• 14:41
  Speaker 1: a corporate bond short and mid term market. Don't buy
• 14:45
  Speaker 1: anything long term, don't buy anything over five six years.
• 14:47
  Speaker 1: But I think, but if second quarter, I'd be buying there.
• 14:50
  Speaker 1: If I'm a conservative person, conservative investor, if I want
• 14:53
  Speaker 1: to be more aggressive, all right, I still like technology.
• 14:56
  Speaker 1: I get it, it's overvalued, it's still you cannot walk
• 15:00
  Speaker 1: away from the luster and the glitter of US technology.
• 15:04
  Speaker 1: You can't. I would not be buying healthcare at oil
• 15:07
  Speaker 1: right now. I think there's going to be pressure on
• 15:09
  Speaker 1: pricing in the healthcare market. I think the US defense
• 15:12
  Speaker 1: industry is a good place to earn above average returns,
• 15:16
  Speaker 1: not like technology is done, not like Nvidia up two
• 15:20
  Speaker 1: percent there, I think the US defense is a good
• 15:24
  Speaker 1: place to do it. I think oil move bits of oil,
• 15:27
  Speaker 1: so downstream but not upstream type of things. That's what
• 15:31
  Speaker 1: the wonky people talking about all the time, so moving
• 15:34
  Speaker 1: the oil I like a lot. I think the plastics
• 15:37
  Speaker 1: industry is a pretty decent place to go because they're
• 15:40
  Speaker 1: going to readact to oil coming down in price. That's
• 15:42
  Speaker 1: their and gas. Those are their top products in there
• 15:46
  Speaker 1: at that point. And I would stay away from the
• 15:49
  Speaker 1: electric car industry completely because I think it's it's not
• 15:53
  Speaker 1: going to be thriving at all for a while, or
• 15:56
  Speaker 1: green energy up there. So there aren't a lot of
• 15:59
  Speaker 1: places you can but I do like some. I still
• 16:01
  Speaker 1: continue to like some technology which has done really well
• 16:05
  Speaker 1: and they will build some ship plants and semiconductors have
• 16:08
  Speaker 1: underperformed for some time. Right now, I don't think they're outperformed.
• 16:12
  Speaker 1: But let's look at the market's do a pretty steady
• 16:15
  Speaker 1: climb there, Kerrie, Yeah, for a while, we've had twenty
• 16:18
  Speaker 1: percent back to back years in the SFP five hundred.
• 16:21
  Speaker 1: I don't think that's going to happen this year. I
• 16:23
  Speaker 1: think we finished the year higher than where we started it,
• 16:26
  Speaker 1: and we have two to three ten to twenty percent corrections.
• 16:30
  Speaker 1: Those are bare market corrections this year. This year, that's
• 16:35
  Speaker 1: a lot. That means that you're going to see some
• 16:37
  Speaker 1: sharp v's down and some sharp v's up in the
• 16:42
  Speaker 1: stock market this year, so super cautious. I would not
• 16:47
  Speaker 1: be selling it all when they go down, but we
• 16:49
  Speaker 1: keep money on the sidelines to buy when they go down.
• 16:52
  Speaker 1: When it goes down by more than ten or twelve,
• 16:55
  Speaker 1: I'd be buying some things that I think are going
• 16:57
  Speaker 1: to go up, and then when it goes if it
• 16:59
  Speaker 1: goes up by fifteen in a quick v and maybe
• 17:02
  Speaker 1: take some profits. It would be much more thinking short
• 17:05
  Speaker 1: term this year.
• 17:06
  Speaker 4: Okay, what about precious metals, crypto's real estate.
• 17:12
  Speaker 1: So let's do it in inverse order. Start with real estate.
• 17:17
  Speaker 1: There is an office building cold going on right now.
• 17:22
  Speaker 1: If that just because remains cold, that as interest rates
• 17:25
  Speaker 1: come down, mortgages are still at a historic height, we
• 17:29
  Speaker 1: see a stoic then real estate will begin to bounce back.
• 17:32
  Speaker 1: It does not really bounce back. If it doesn't bounce
• 17:35
  Speaker 1: back and the office mark turns into a flu instead
• 17:40
  Speaker 1: of a cold, then there will be some type of
• 17:43
  Speaker 1: pushback and correction in that. But let me also say
• 17:47
  Speaker 1: that for builders right now, right in the western third
• 17:51
  Speaker 1: of the country, starting in about June, you will not
• 17:54
  Speaker 1: be able to find a worker to help you build
• 17:57
  Speaker 1: anything because they will all be in southern California, paid
• 18:01
  Speaker 1: above average rates with federal and state money, and they're
• 18:04
  Speaker 1: gonna flock there like it's a gold rush for the
• 18:07
  Speaker 1: construction industry. That'll drive up lumber, elastic, furniture. I'll just
• 18:13
  Speaker 1: drive it right up and'll drive up wages because of
• 18:15
  Speaker 1: what happens, especially if it's state and federal money. That
• 18:18
  Speaker 1: will now be the backstop for everything down there. And
• 18:21
  Speaker 1: that's what they're talking about happening. So that could a
• 18:25
  Speaker 1: lot of the United States real estate because it will
• 18:28
  Speaker 1: thrive locally in southern California. Let me go to the
• 18:31
  Speaker 1: next one. Crypto you mentioned. Crypto is an anomaly. There
• 18:37
  Speaker 1: are people think it's going to two hundred thousand dollars
• 18:39
  Speaker 1: for bitcoin, and there are other people that say it's
• 18:42
  Speaker 1: going to thirty five thousand before it's going to onousand,
• 18:45
  Speaker 1: two hundred thousand. I like some crypto exposure. I don't
• 18:49
  Speaker 1: think it's a currency. It'll be interesting what Trump does
• 18:52
  Speaker 1: with that. I'm waiting for the new Treasury Secretary of
• 18:56
  Speaker 1: the Treasury come out and say we need a crypto
• 18:59
  Speaker 1: dollars and not a crypto bitcoin. We need something that's
• 19:03
  Speaker 1: a backstop here Uh. I think that's a game changer
• 19:07
  Speaker 1: for the crypto industry if that happens, because that will
• 19:10
  Speaker 1: move demand from the bitcoins of the world and move
• 19:14
  Speaker 1: them back to a crypto dollar, which would be great
• 19:17
  Speaker 1: for the US government to have a crypto dollar. That
• 19:19
  Speaker 1: weirdly would be a good thing to do, but it'd
• 19:22
  Speaker 1: be crappy for bitcoin to do that. If they pick
• 19:24
  Speaker 1: the winner, if they pick an exchange for to go on,
• 19:27
  Speaker 1: and they choose ethereum, boy, that's the big winner of
• 19:30
  Speaker 1: this whole conversation, Ethereum, because it will need to go
• 19:32
  Speaker 1: on in exchange, and Ethereum is an exchange up. But
• 19:36
  Speaker 1: they may pick somebody else. So I think that's an
• 19:39
  Speaker 1: iffy thing. I'm a watch and see guy on crypto
• 19:42
  Speaker 1: to see what happens with a crypto dollar if somebody
• 19:45
  Speaker 1: has a conversation about that. So so we turned to out,
• 19:48
  Speaker 1: really what was the third one?
• 19:51
  Speaker 3: Uh, precious metals.
• 19:53
  Speaker 1: Okay, So I think if you're gonna here's the downside
• 19:58
  Speaker 1: of precious metals. Carry Nobody ever sells them. Nobody ever
• 20:02
  Speaker 1: sells them. They buy them, don't sell them, they keep them.
• 20:06
  Speaker 1: I buy bullion myself. I'll never sell my billion yeah,
• 20:11
  Speaker 1: I'm going to give it to my children and they
• 20:13
  Speaker 1: can give it to their grandchildren. But I buy bullion
• 20:16
  Speaker 1: on a regular basis just so I have something to
• 20:19
  Speaker 1: give to my kids outside the estate. But I'll never
• 20:22
  Speaker 1: sell it.
• 20:24
  Speaker 3: This is that is so true? All right?
• 20:27
  Speaker 4: So does that mean it's not going up or it's
• 20:31
  Speaker 4: only going to go up? But what does it mean
• 20:33
  Speaker 4: that people doesn't unless.
• 20:35
  Speaker 1: A bomb goes off in Taiwan or Saudi Arabia, be
• 20:40
  Speaker 1: excited about buying precious metals today. Now, that doesn't mean
• 20:46
  Speaker 1: I wouldn't be buying industrial metals like copper and palladium
• 20:49
  Speaker 1: and so forth. As coppers four dollars a pound. That's
• 20:53
  Speaker 1: ridiculously low. Especially with what's going to happen in southern California.
• 20:57
  Speaker 1: I think lumber is going to go through the roof.
• 20:58
  Speaker 1: There's a commodity, so lumber and copper I like in
• 21:03
  Speaker 1: the metals business and the industrial metals business. Lithium, I
• 21:07
  Speaker 1: tell you a lot of people like lithium because the batteries.
• 21:10
  Speaker 1: I think that there's a new technology coming that could
• 21:14
  Speaker 1: get rid of lithium that would actually be a good
• 21:15
  Speaker 1: thing for mankind. Say, the amagnia of Lithium is one
• 21:18
  Speaker 1: of the dirtiest things on Earth, and China controls it.
• 21:22
  Speaker 1: To have a battery that replaces lithium would be amazing.
• 21:26
  Speaker 1: Let me give you something that's a wild, out there
• 21:28
  Speaker 1: guess and if you tell me if it doesn't call true,
• 21:32
  Speaker 1: you can call me up on this one. I'll give
• 21:33
  Speaker 1: you my phone number and you can yell me. And
• 21:35
  Speaker 1: if I hold true, I want you to buy me
• 21:37
  Speaker 1: a steak dinner at Peter Luger's book club. That is that.
• 21:42
  Speaker 1: I think in the next three years or so, that
• 21:46
  Speaker 1: Tesla is sold to a consorium of other car makers
• 21:50
  Speaker 1: and Vetro capitalists, and Elon Musk is in the battery
• 21:54
  Speaker 1: business full time and out of the car business.
• 21:57
  Speaker 4: I don't agree with you, but who knows, you know, not.
• 22:02
  Speaker 1: The well for three years and tell me I from
• 22:03
  Speaker 1: right or wrong?
• 22:04
  Speaker 4: Right? Yeah, there's just no impetus for him to sell.
• 22:08
  Speaker 4: You know, I don't see it. You think he'll be
• 22:11
  Speaker 4: like Andrew Carnegie. Basically, I think he's.
• 22:14
  Speaker 1: Bored to death with in Tesla.
• 22:16
  Speaker 4: Yeah, well, he's too busy thinking about Mars or what.
• 22:20
  Speaker 1: I think he's a He's a very like a lot
• 22:22
  Speaker 1: of entrepreneurs who that although he's brilliant, I'm not going
• 22:25
  Speaker 1: to take anything away with you. Love him or hate him,
• 22:27
  Speaker 1: that doesn't matter. He's brilliant and he loves the shiny
• 22:30
  Speaker 1: new toy in the driveway.
• 22:32
  Speaker 3: M hm.
• 22:33
  Speaker 1: And and Tesla is no longer the shiny new toy.
• 22:36
  Speaker 3: Huh.
• 22:37
  Speaker 4: That's interesting. I never heard anybody say that one, So
• 22:42
  Speaker 4: I don't know, like you might be right. I'd never
• 22:46
  Speaker 4: say anybody's wrong, because you know, the graveyards are full
• 22:52
  Speaker 4: of people who who always knew they were right. But
• 22:57
  Speaker 4: you know, on the other hand, it's just the full
• 23:03
  Speaker 4: self driving thing.
• 23:04
  Speaker 3: You know.
• 23:05
  Speaker 4: Uh, I got a Tesla and you know, I can
• 23:12
  Speaker 4: see the light at the end of the tunnel now
• 23:15
  Speaker 4: and it's pretty amazing.
• 23:17
  Speaker 1: You know, car owners love their car. I don't know.
• 23:20
  Speaker 1: I'm not gonna knock the car. I'm not a fan
• 23:21
  Speaker 1: of the pickup truck at all. Love their car. I
• 23:25
  Speaker 1: think that we'll go self driving. That's inevitable. Self driving trucks,
• 23:30
  Speaker 1: that's inevitable. Three million truck drivers are going to potentially
• 23:34
  Speaker 1: lose their jobs or be at risk of jobs. That's
• 23:37
  Speaker 1: a big thing. Nobodys gonna like that. And that's a union,
• 23:40
  Speaker 1: big union there, So nobody's gonna like that at all.
• 23:43
  Speaker 1: But I think that you're going to see some a
• 23:47
  Speaker 1: consortium come together of Nissan and the Chinese and and
• 23:52
  Speaker 1: maybe the Swedes and an American car company and say
• 23:56
  Speaker 1: let's take Tesla out.
• 24:00
  Speaker 3: Where you're coming from.
• 24:02
  Speaker 4: I just I just will agree to disagree with you
• 24:05
  Speaker 4: on that one, because he's going to own the world here,
• 24:08
  Speaker 4: you know, once that's self driving. It's like when I
• 24:14
  Speaker 4: first started doing it three years ago, I said, oh, well,
• 24:18
  Speaker 4: we're five to ten years away, you know, But every
• 24:23
  Speaker 4: time they come out with a new version, it's closer
• 24:26
  Speaker 4: and closer. And I'm at the point where I said,
• 24:28
  Speaker 4: you know, this thing could be six months away.
• 24:32
  Speaker 3: It's very possible.
• 24:33
  Speaker 1: It's all possible, and you're right, and I don't know.
• 24:36
  Speaker 1: But you know, this is one of those far up
• 24:38
  Speaker 1: progniership prognostications where maybe it works and maybe doesn't. And
• 24:43
  Speaker 1: if I'm wrong, I'm okay with being wrong. And if
• 24:44
  Speaker 1: I'm right, I get a couple like, how'd you think
• 24:47
  Speaker 1: about that? What was your criteria?
• 24:49
  Speaker 3: So we'll see it goes all right?
• 24:51
  Speaker 4: Well, hey, I think we covered a lot of ground here.
• 24:54
  Speaker 4: Just tell us how do we find you on the web. Elliott,
• 24:58
  Speaker 4: how do we connect with you? And you know where's
• 25:02
  Speaker 4: ways carry?
• 25:03
  Speaker 1: You've got a great show here. It's Elliott E. L.
• 25:05
  Speaker 1: L IoT at Prosperity Financialgroup dot com. The website is
• 25:11
  Speaker 1: Prosperity Financialgroup dot com and my phone number at my
• 25:14
  Speaker 1: desk my direct line is nine U five three one
• 25:18
  Speaker 1: four eight five zero three or on West coast time
• 25:21
  Speaker 1: you're on East coast time. We talk to people. We
• 25:24
  Speaker 1: have clients at about forty of the fifty states, a
• 25:26
  Speaker 1: couple of countries. We'd love to have a conversation.
• 25:29
  Speaker 4: All right, Hey, links in the show notes to this
• 25:31
  Speaker 4: interview on Financial Survival Network dot com. When you go there,
• 25:35
  Speaker 4: we just ask that you sign up for your free newsletter,
• 25:38
  Speaker 4: like over sixty five thousand of you out there have.
• 25:41
  Speaker 4: And if you have any questions for Elliott or myself,
• 25:43
  Speaker 4: shoot me an email kl at Carrie Lets dot com. Elliot,
• 25:47
  Speaker 4: We're going to be watching TESLA very closely. Thanks for
• 25:50
  Speaker 4: stopping by.
• 25:51
  Speaker 1: Thank you. I can't wait to put you on our
• 25:52
  Speaker 1: program as well.
• 25:53
  Speaker 2: Thanks for listening to Carrie Lets's Financial Survival Network.
• 25:57
  Speaker 1: Your solution to today's.
• 25:59
  Speaker 2: Trying to time for the latest go to Financial Survivalnetwork
• 26:03
  Speaker 2: dot com Financial Survival Network now more than ever,