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Stagflation Reality Contradicts Biden/Powell's Optimism with Ed Siddell #6065 · Financial Survival Network

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  And then most recently the University Michigan consumer sentiment. It was estimated between to
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  be between seventy seven and seventy nine, and you know it was it was
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  just below sixty eight. I think it was sixty seven point six. I
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  can't remember what the actual number was, but you know, people are feeling
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  it. I mean, this is that the silent recession that we're talking about,
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  and no one wants to talk about it, but this is really stagflation.
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  We're seeing continued economic slowdown, We're seeing inflation going up, and we
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  just talked about the jobs numbers. You were listening to, Carrie. Let'sa's
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  financial survival Network where you get valuable information. You just can't find anywhere else
• 0:39
  to thrive in today's trying times. You need the Financial Survival Network now more
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  than ever. Go to Financial Survivalnetwork dot com and get your free newsletter and
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  gift. Financial Survival Network now more than ever. And welcome you are listening
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  to and watching the Financial Survival Network. I'm your most Carrie Lutz. I'm
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  with fellow expert Ed Siddell and Ed and I are going to be talking about
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  well the economy, about the latest producer price inflation that evidently ed people were
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  shocked about it. I mean, I'm shocked, lit is shocked. You
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  know, that's the only thing I'm shocked about. And I guess ed what
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  they're shocked about with the producer price numbers is the fact that it's an election
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  year and they actually put out negative numbers. I mean, that's not supposed
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  to happen, is it. You know what they're they're controlling everything else well,
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  you know, I mean as far as the numbers that they want.
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  I was surprised that they couldn't manipulate these to get them in line with what
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  they wanted, because we know the PPI numbers are probably worse than what they
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  actually are, just like the twenty twenty three JOMPS numbers. You know that
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  that revision came out. We were just talking about it last came out a
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  couple of weeks ago, and it was actually negative, not positive. Even
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  though did you see the interview with oh Biden, I can't think of who
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  the gosh, I can't think of who he did the interview with. I
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  can't think of her name. Oh so that was what's her name? Where
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  he said, daddy, what's inflation? And basically but don't worry about it,
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  you know there, Well, you know, the good thing is he
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  did create fifteen million new jobs. And you know another yeah, and inflation
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  was over nine percent when he took over, and you know, so he's
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  he's fixed to everything. So we're all good. We can all go home
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  and rest easy and sleep good time. I'm feeling better already talking to you.
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  Thank you for that. But you know, like, let's face it,
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  the economy is a really in bad shape and all they can do is
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  not come up with solutions, just try to gaslight you right, and and
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  spending more money. You know, the new the new tax proposal with they
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  just lowered it again. But now the corporate tax rate higher than what it
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  is now that the capital long term capital gains rate go from twenty two to
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  basically almost forty five percent I'm sorry, twenty percent to almost forty five percent.
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  You know, it's in you know, there's an issue when tax revenues
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  are at an all time high and we still don't have enough money. I
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  mean, it's one's like it's a spending problem. It's a leadership problem.
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  We just don't have the leadership. So publican democrats, everyone has their hand
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  in the til trying to spend our money. Everyone's stealing. Hey, it's
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  what they call in the military, management without leadership, Right, yes,
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  go do this, But the general has no idea what's involved in doing this.
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  He just tells the troops to do it, and they grumble and they
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  do it. Nobody's happy. Whereas if the general says, let's go do
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  this, goes off to the trenches with the troops, it's a whole different
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  way, right, yeah, And I think that's what was so disturbing,
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  you know, for lack of a better term, when during the interview,
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  when they were actually with Biden, they were actually sharing the economic numbers,
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  he actually looked surprised. Yeah, you know, and then he said,
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  we're all good and we're spending money. Any poll ask money, right,
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  Yeah, we all have money, so it doesn't matter. Yeah right,
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  Yeah, that was a CNN interview. Oh that was their name, Aaron
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  Burnett. That's right, yep, yep. Like I don't want to cast
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  aspersions upon our commander in chief's mental acuity. Others have examined that topic enough,
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  but talk about detachment. Remember in the election when Busch Senior was running
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  for re election and I went to a supermarket and he saw scanners for the
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  first time, and he couldn't believe that you could scan groceries and bring up
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  prices. And you know, this was a like a defining moment of his
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  detached residency that he didn't really know appreciate what people were going through. Oh
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  yeah, well the same thing. Do you remember during that same he was
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  around the same time they asked him, you know, what a gallon of
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  milk was, and it was so long ago I can't remember, but it
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  was a fraction of the cost of what a really of the real cost in
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  the grocery store, you know, just and that's where he is right now,
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  Biden, He's on that same path. Not like we're shocked about it,
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  but you know, the fact that it's it's being finally revealed by you
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  know, mainstream not covering up anymore, right, right, Chah. You
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  know, it's like, ask him how much a court of almond milk costs?
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  See if he has a clue, right, I guarantee he doesn't know
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  how much eggs are. They're like and whole foods at like six to ten
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  bucks a dozen, you know, isn't that crazy? Almost a dollar?
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  I mean it's nuts, and it's still a good deal compared to other food
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  types. But but we had numbers to talk about here at yeah, sem
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  numbers. I mean everything is sinking here well, you know. I mean,
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  so I'm gonna be looking down on my notes because I can't. There's
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  so many numbers that have are way off the mark. I mean, you
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  know the ISM numbers, you know they're expected to be around fifty two,
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  and they were forty nine point two. I mean taught that would be talk
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  about a contraction. I mean, that's that's huge. Now that the pm
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  I numbers that came out a couple of weeks ago, you know, they
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  the range was forty three point two to forty five and they crash to thirty
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  nine point four. They were below forty. You know, consumer confidence that
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  was for last month it was one oh four. It was supposed to be
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  between one oh four and it dropped all the way down to ninety seven.
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  And then most recently, the University Michigan consumer sentiment it was estimated between to
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  be between seventy seven and seventy nine, and you know it was it was
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  just below sixty eight. I think it was sixty seven point six. I
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  can't remember what the actual number was, but you know, people are feeling
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  it. I mean, this is that the silent recession that we're talking about,
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  and no one wants to talk about it, but this is really stagflation.
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  We're seeing continued economic slowdown. We're seeing inflation going up. And we
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  just talked about the jobs numbers. You know, employment is way higher than
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  what they're reporting. So you know, this has all the year marks of
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  the last year of Jimmy Carter. So the question is, you know what
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  kind of memory you know, as a voting pipelist are we going to have
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  in November? You know, if gas prices get a little bit lower,
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  which I think they will, I think the Feds are going to wind up
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  dropping interest rates. I think they're going to do another round of quantity of
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  easing, first loosen up the credit and then lower rates maybe once and make
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  everything rosy before the election. So will we remember you know, the previous
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  three years? Good question. And of course the mood of the country is
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  really bad, and so what's going to be is are we looking at a
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  change of regime come come January? You know what that is a great question.
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  You don't what I don't know, yeah, there's you know, I
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  was expecting it last time, and I and I was shocked now to have
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  so many votes uh, you know up here in the last you know,
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  a couple hours. But come on, and that was the most honest election
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  that we've had in the history of the country. It's going back to George
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  Washington, isn't it. Well, you're right, you're right, you got
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  me, you got me. Sorry, I don't need the ginn, I
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  guess. Yeah, So I think we need to. I think we're going
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  to have better luck in the Senate instead of the House. But we can't
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  just you know, have an administration change. I think we we need to
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  make sure that we you know, significantly significantly regain the Senate. I don't
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  think we have a chance in the House the way that it's been run so
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  far or not we're run. But then again, what's the what's the alternative?
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  Yeah, well, we don't like to get into politics here because this
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  is a you know, this is a family show here, and we not
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  really fit for for the tender ones consumption, you know. But well,
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  and and when you think about the impact that it has on the economy,
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  when when we're we're sending more money overseas in these spending bills than you know,
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  taking care of our own population here, whether it's from Palestine, Ohio,
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  round in Hawaii. You know, these these these from the wildfires to
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  the train incident. You know, people are still suffering here, and we
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  just keep spending and spending and spending. And I think that obviously that's inflationary.
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  A lot of the real jobs that were added last year, we're all
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  government jobs. That's inflationary. And you know, you cannot spend the way
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  that we're spending and not expect the economy to falter. And that's really what
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  we're seeing right now. But it's people are starting to resonate with the paint
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  all the way across the board. All right, So what do you do
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  here? How do you protect your wealth? Inflation, like they report said,
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  is stickier than thought. I mean, where do did these people ever
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  pick up a book before and look at the sixties and seventies and eighties and
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  look at the World War two inflation and World War One inflation. It doesn't
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  you know, just snap your fingers and raise some rates and it goes away.
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  It's like almost generational here. It is. It is, And and
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  you know to that point. Uh, what unnerves me is typically when we
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  get inflation, that's you know, to use the catchphrase in which you just
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  use sticky as as it is. You know, normally we go to war
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  to to kind of wipe away the debt and and everything else. And I
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  and I hope that doesn't happen. You know. For me, I still
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  like hard assets, I really do. Here's what I think is going to
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  happen between now. We we have a window between now and the election,
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  okay, and it's it's narrowing, you know. I I think we're going
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  to see a ton of volatility in the market. I think it's going to
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  remain positive. I need based on what I said before, with the Feds,
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  you know, probably doing a little bit more easing and then lowering rates.
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  The market's going to wake up a little bit, but it's going to
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  be short lived, you know. As a storage value, I still like
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  gold and silver. I think silver is probably the best buy. But you
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  know, and honestly, if we look at commodities as a whole, you
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  know, that's that's uh, I think gonna be for people to the best
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  bet. I'm not a big fan of gross stocks right now. I think
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  that they're going to be overvalued. You know, value is where it is
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  if you're going to go that route. But I mean, you've got to
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  be positioned, you know, when you got to have enough on the sidelines
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  to take advantage of, you know, of a of a correction or something
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  significantly bigger which people are talking about, and be able to buy things relatively
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  cheap. Hey, but always remember that economists have successfully called five out of
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  the last two recessions, right, yes, right, because there are bigger
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  things happening, right yeah. And you know then than what what the news
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  says. You know, uh oh, absolutely, the money flowing in from
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  China flight capital as they cracked down and reverse their loosening, their economic opening
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  up. And then the europe Bank's not doing well there. Although one interesting
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  ray of bright light is Portugal. They were one of the pigs, they
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  were the p and the pigs nations. The ims IMF went in there and
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  made them clean up their act and they've actually saw their debt decline as a
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  percentage of GDP last year. Well did they really? Yeah? Yeah,
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  so I guess I guess we should be happy. Well, at least someone's
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  doing something right, and you know, and you brought up about the banks.
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  That's the other thing, right, I mean, right now we're seeing
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  we're starting to see more bank failures in that the other shoe hasn't even dropped
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  yet. I mean, a lot of these commercial loans aren't coming due.
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  So I think we're going to see more struggles than what that people what people
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  are really starting to anticipate, even though everyone feels something on the horizon,
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  I don't think they're expecting what's really going to hit us. Yeah, well,
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  we know these banks, especially the regionals, are in a precarious state,
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  and that alone means that they're going to have to cut rates where they'll
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  be bailing out the one hundred and fifty two hundred and fifty banks. I
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  mean, what do you think the odds are that twenty twenty four is the
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  year of the bank run. It would not surprise me. They may be
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  able to stave it off a little bit, you know, through the end
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  of the year, but if it's not the end of the year, I
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  think twenty twenty five is going to be a banner year, unfortunately, and
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  not in a good way for you know, regional banks. You know,
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  in some of the local banks I think they're going to get crushed. They've
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  got a lot of bad loans, a lot of bad debt on their books
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  that are overvalued, and they're just not going to be able to recover and
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  you know, having to refinance that you know, six seven, eight nine
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  percent that people just they can't do it. So they're going to have to
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  lower rates, which goes right to inflation and all the other issues. Yeah,
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  you know, it's it's really kind of shocking what's going on out there.
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  But hey, hopefully there'll be a brighter tomorrow, one of these tomorrow's.
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  ED, just tell us where do we find you? How do we
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  connect with you on the web. Yeah, you can reach us at egsifinancial
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  dot com. All right, Hey got a question for ED and myself KL
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  at Carrie LUTs dot com. Is the email addressed to use. And if
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  you go to the show notes on Financial Survival Network on our website for this
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  interview, you will get a link right to ED site. And while you're
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  there, please sign up for your free newsletter ED. Always a pleasure.
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  We'll talk to you about all right. Thanks for having me, Kerry,
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  Thanks for listening to Carrie Letz's Financial Survival Network your solution to today's trying times.
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  For the latest, go to Financial Survivalnetwork dot com. Financial Survival Network
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  now more than ever,