Latest / Financial Survival Network / Bond Market Zombies with Michael Pento #6184

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Bond Market Zombies with Michael Pento #6184 · Financial Survival Network

• 0:00
  Speaker 1: I mean food is up fifty percent of eggs and beef,
• 0:03
  Speaker 1: and insurance home prices are up over fifty percent in
• 0:07
  Speaker 1: the last four years, So I mean, what are you
• 0:10
  Speaker 1: talking about. We need price carry, Like I said, we
• 0:13
  Speaker 1: need prices in this country to gradually fall. Deflation is
• 0:17
  Speaker 1: good and healthy.
• 0:18
  Speaker 2: You are listening to Carrie Lutz's Financial Survival Network, where
• 0:22
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• 0:45
  Speaker 3: And welcome.
• 0:46
  Speaker 4: You are listening to and watching the Financial Survival Network.
• 0:50
  Speaker 4: I'm your host Carrie Lutz's Election Day I call pentas
• 0:55
  Speaker 4: on And you're really lucky, you people who are tuned
• 1:01
  Speaker 4: in right now because you're listening to the only two
• 1:04
  Speaker 4: people left in America who care about little things like
• 1:09
  Speaker 4: deficits and Michael like elections. You know it's said when
• 1:15
  Speaker 4: you elect the new government, you just change the face
• 1:18
  Speaker 4: of government. Do you don't really change anything? Is this
• 1:22
  Speaker 4: time going to be different?
• 1:24
  Speaker 1: I think it's going to be different because the market
• 1:26
  Speaker 1: the bond market is not going to tolerate this anymore.
• 1:30
  Speaker 1: If you look like what happened in the UK has
• 1:33
  Speaker 1: happened here in the past two in the seventies and
• 1:35
  Speaker 1: early eighties, even though we are the world reserve currency,
• 1:39
  Speaker 1: and supposedly that means that investors internationally had insatiable desires
• 1:46
  Speaker 1: for our mom They just buy.
• 1:48
  Speaker 3: It no matter what.
• 1:49
  Speaker 1: But I seem to remember that, I think that's ten
• 1:51
  Speaker 1: year note hit fifteen percent, okay, fifteen percent in the
• 1:55
  Speaker 1: early eighties. Didn't we have a very liquid bond market
• 1:59
  Speaker 1: back then. Didn't we have the world reserve currency back then?
• 2:03
  Speaker 1: So I mean, look, look, you know, bond yields are
• 2:06
  Speaker 1: concerned about three things that are happening. It's just sort
• 2:08
  Speaker 1: of new. Now we have we have an inflation problem
• 2:11
  Speaker 1: in this country that Jerome Powell just doesn't want to
• 2:15
  Speaker 1: deal with because he doesn't want to pay a trillion
• 2:17
  Speaker 1: dollars in interest payments on the debt.
• 2:19
  Speaker 3: That's why he cut interest rates by fifty basis points.
• 2:21
  Speaker 1: I don't know if I had an opportunity to tell
• 2:22
  Speaker 1: you that on your drome, but you think about, well,
• 2:25
  Speaker 1: why did you cut fifty Jerome if inflation is way
• 2:28
  Speaker 1: above your target, and it's been above your target for
• 2:30
  Speaker 1: forty three stinking freaking months.
• 2:33
  Speaker 3: You don't want to get below your.
• 2:34
  Speaker 1: Target before you start cutting rates. Shouldn't you be raising rates?
• 2:37
  Speaker 1: He cut by fifty basis points. Not because we have
• 2:40
  Speaker 1: a very high unemployment, and unemployment rate at four point
• 2:43
  Speaker 1: one percent is still way below the long term average
• 2:46
  Speaker 1: of five point seven. Isn't because the stock market's like,
• 2:48
  Speaker 1: you know, really cheap, I mean crashed. You know, it's
• 2:51
  Speaker 1: a this expensive stock market. The other stock market, by
• 2:54
  Speaker 1: the way, Kerries trading at three times sales. That's like
• 2:57
  Speaker 1: never happened before, you know, it's like in creditably expensive,
• 3:01
  Speaker 1: two one hundred percent of GDB. So Jerome's cutting interest
• 3:04
  Speaker 1: rates because he doesn't care about inflation, doesn't care about
• 3:07
  Speaker 1: the middle class. He cares about the solvency or the
• 3:11
  Speaker 1: ostensibility of the solvency of the United States Treasury.
• 3:15
  Speaker 3: So that's why he cut. Right, So we have inflation
• 3:17
  Speaker 3: that he can't deal with.
• 3:18
  Speaker 1: We've got illiquidity, right, we have illiquidity down the bond market,
• 3:23
  Speaker 1: the reverse reboil facility, which is where all this money
• 3:26
  Speaker 1: that was created by the Fed and went into excess
• 3:28
  Speaker 1: reserves and that was parked at the Fed earning a
• 3:30
  Speaker 1: nice stat interest rate. It's two and a half trillion
• 3:32
  Speaker 1: dollars two years ago. Now it's one hundred and fifty
• 3:35
  Speaker 1: billion dollars. So your liquidity in the reversary bol facility
• 3:39
  Speaker 1: is gone. So now what you have is the Treasury
• 3:41
  Speaker 1: General account and that's not going to last long. That'll
• 3:43
  Speaker 1: be exhausted in early twenty twenty five. And then you
• 3:46
  Speaker 1: have ill liquidity in the bond market, show illiquidity, inflation,
• 3:50
  Speaker 1: and insolvency.
• 3:52
  Speaker 3: Those three things are very bad.
• 3:54
  Speaker 1: And that's going to put a check on no matter
• 3:57
  Speaker 1: who who, no matter who wins the White House, and
• 4:00
  Speaker 1: no matter who controls Congress, if they are going to
• 4:03
  Speaker 1: put forth their massive spending programs for either party. Trump
• 4:07
  Speaker 1: is more growth, but still a lot of deficits. Nobody
• 4:10
  Speaker 1: wants to touch in titlements, Kerry, no, what's talking about?
• 4:12
  Speaker 3: So then s can't do that.
• 4:15
  Speaker 1: So if they get past that, if Kamala Harris wants
• 4:17
  Speaker 1: to buy everybody a house, and I don't know the
• 4:19
  Speaker 1: result of the election in near to you, but I'm
• 4:22
  Speaker 1: hoping that we have some you know, bastion of sanity
• 4:26
  Speaker 1: in DC where they just say Hey, listen, the bond
• 4:28
  Speaker 1: market is going to revolve. Interest rates are going to
• 4:31
  Speaker 1: spike like they did in eighty seven, and we're going
• 4:33
  Speaker 1: to have an absolute meltdown no matter what's going on
• 4:35
  Speaker 1: in the economy if interest rates become unglued. Yeah, well,
• 4:40
  Speaker 1: we know things are not all peachy. I mean, it's amazing.
• 4:44
  Speaker 1: I was talking to a friend who I used to
• 4:46
  Speaker 1: think was fairly intelligent. He is intelligent, to be fair,
• 4:50
  Speaker 1: but he says, you know, what's wrong with the country.
• 4:53
  Speaker 1: My portfolio is doubled.
• 4:56
  Speaker 4: And I said, that is what's wrong with the country?
• 5:00
  Speaker 3: Doubled? Right? When did and when did it double? And
• 5:05
  Speaker 3: what timeframe over what left over the past eighteen months?
• 5:08
  Speaker 3: I'd imagine, right, eighteen months.
• 5:10
  Speaker 1: Two years, well after he lost after he lost half
• 5:13
  Speaker 1: of his money in COVID And yeah, you know.
• 5:16
  Speaker 3: It depends on what.
• 5:17
  Speaker 1: Yeah, but the problem with the problem with the country
• 5:19
  Speaker 1: is is twofold, massive amount of debt and asset bubbles,
• 5:23
  Speaker 1: and then you can late most of that at the
• 5:24
  Speaker 1: feat of the Federal Reserve. But in something I find
• 5:27
  Speaker 1: even more interesting is and by the way, we're not
• 5:30
  Speaker 1: short here at pental portfolio Strategies. We're long long and
• 5:33
  Speaker 1: strong this market right now, but we have a hair
• 5:36
  Speaker 1: trigger finger on whence we could change that allocation, because,
• 5:40
  Speaker 1: like I said before, the bond market is is going
• 5:43
  Speaker 1: to be key here, and I've warned about it in
• 5:46
  Speaker 1: twenty thirteen. I said, No, I mean, don't have to
• 5:48
  Speaker 1: worry about it now. I said, but in the in
• 5:50
  Speaker 1: the next few years, next couple of decades, we are
• 5:54
  Speaker 1: going to have a massive disruption in the bond market
• 5:56
  Speaker 1: because the FED is going to have to choke off
• 5:59
  Speaker 1: the that is going to create inflation, and then they're
• 6:01
  Speaker 1: gonna have to choke it off. And if they don't
• 6:03
  Speaker 1: have the willingness to fight it by raising interest rates,
• 6:05
  Speaker 1: which is in the facto, will blow up of the
• 6:07
  Speaker 1: bond market. The FED took interest rates from zero to
• 6:10
  Speaker 1: five and a half, and if they don't have the
• 6:15
  Speaker 1: temerity to I don't know if that's the right word,
• 6:18
  Speaker 1: would if they don't have the courage, yeah, the fortitude
• 6:22
  Speaker 1: for to two thank you to actually raise rates keep
• 6:26
  Speaker 1: them there long enough to kill inflation. And I don't
• 6:28
  Speaker 1: mean make inflation go up more slowly, and I don't
• 6:33
  Speaker 1: want I don't want prices to rise less quickly than
• 6:35
  Speaker 1: they were before. No, you need prices down. The price
• 6:40
  Speaker 1: level of things has to fall. And if you if
• 6:42
  Speaker 1: you doubt that, just look at your assurance bill, your
• 6:45
  Speaker 1: car payment, and your home price and your equity prices.
• 6:48
  Speaker 1: They have to fall otherwise that they're unsustainable, dangerous, and
• 6:54
  Speaker 1: we are in danger of absolutely collapsing, which we don't
• 6:59
  Speaker 1: want to have that weight, rather have a gradual air
• 7:02
  Speaker 1: let out of this bubble.
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  Speaker 3: But do you see that?
• 7:07
  Speaker 1: Do you see any willingness to actually deal with our
• 7:10
  Speaker 1: actual problems?
• 7:11
  Speaker 3: No? I haven't heard it mentioned once during this entire election,
• 7:15
  Speaker 3: other than putting Elon Musk in charge of the Government
• 7:19
  Speaker 3: Efficiency Commission, which government and efficiency are repellent to one another.
• 7:25
  Speaker 1: It's an oxymoron. Yeah, it's an oxman, you know, Carrie.
• 7:31
  Speaker 1: You know I've been in this business for thirty almost
• 7:35
  Speaker 1: thirty four years now and I never thought I would
• 7:40
  Speaker 1: say this, But we our data now looks more like China.
• 7:44
  Speaker 1: We're just making stuff up now, look a look at
• 7:48
  Speaker 1: the look at the non PHM payer reports that are
• 7:50
  Speaker 1: coming out.
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  Speaker 4: I believe everything, Michael, I believe everything. You don't think
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  Speaker 4: your government would lie to you, do you?
• 7:59
  Speaker 3: If you?
• 8:00
  Speaker 1: We we learned in the last few years I've known
• 8:03
  Speaker 1: it all along, but you've known it of course, sure,
• 8:06
  Speaker 1: But the media had this very thin veil of objectivity
• 8:13
  Speaker 1: that's been ripped off. I mean, if you doubt that,
• 8:15
  Speaker 1: just look at the late night comedians. You know, ABC
• 8:18
  Speaker 1: has a signature program called the Jimmy Kimmel. I mean,
• 8:21
  Speaker 1: this is just not they not not funny, this objectivity.
• 8:26
  Speaker 3: They don't.
• 8:27
  Speaker 1: It's just it's just they're just stumping for Kamala Harris.
• 8:31
  Speaker 1: And over at CBS is not any different. So and
• 8:34
  Speaker 1: and this is you know, don't you think that people
• 8:36
  Speaker 1: that the executives at ABC, CBS, NBC understand that when
• 8:41
  Speaker 1: they put Kamala Harris on a giggling fest on Saturday
• 8:44
  Speaker 1: Night Live, you know, two days before the election, that
• 8:47
  Speaker 1: that they're trying to corrupt and.
• 8:50
  Speaker 4: Vote the opposite had the opposite if he had tended
• 8:54
  Speaker 4: to effect. You know, it's all just a Hollywood script
• 8:59
  Speaker 4: that we're living here.
• 9:00
  Speaker 3: And Hollywood only pays for happy endings.
• 9:03
  Speaker 4: They don't pay for depressing, bad, tragic endings. It's rare
• 9:09
  Speaker 4: to ever see a movie that ends unhappily, and that's
• 9:15
  Speaker 4: what the governments do. And they're just paying for happy endings.
• 9:18
  Speaker 1: Well, the government's also, unfortunately, like I said, looking more
• 9:22
  Speaker 1: like China. So let's just take the Non farm Paler report,
• 9:25
  Speaker 1: and I'm not even talking about the eight hundred and
• 9:26
  Speaker 1: eighty one thousand jobs after revisions, and they said, oh,
• 9:29
  Speaker 1: by the way, there's a you know, we overcounted. Oh right,
• 9:33
  Speaker 1: be sure, where did they go? I don't know, we
• 9:36
  Speaker 1: just added the birth death model was a little skewed.
• 9:39
  Speaker 1: But then they last report, right, this last report of course,
• 9:43
  Speaker 1: which oh it was just hurricane this hurricane.
• 9:46
  Speaker 3: Storm, so don't even don't even look at it.
• 9:48
  Speaker 1: Carry But second, look at the revisions. The August revision
• 9:55
  Speaker 1: was eighty one thousand jobs less than what the originally
• 10:00
  Speaker 1: visually reported. Well, eighty one thousand is more than fifty percent.
• 10:04
  Speaker 1: They're off by more than fifty percent on their initial guests.
• 10:10
  Speaker 1: And so we have a federal reserve that controls the
• 10:15
  Speaker 1: price of money based on information that comes in arrears
• 10:19
  Speaker 1: that's completely faulty. Doesn't that bother anybody? I mean, we're
• 10:23
  Speaker 1: in a big met The middle class of this country
• 10:25
  Speaker 1: has been eviscerated, hanging by a thread, where now we
• 10:29
  Speaker 1: have top twenty percent, the top quintile of the inhabitants
• 10:33
  Speaker 1: of this nation are running everything and they're keeping the
• 10:37
  Speaker 1: economy afloat because their house prices are bubblicious territory and
• 10:41
  Speaker 1: along with their four one K plans.
• 10:44
  Speaker 3: And when that goes, we're gonna have We're not gonna
• 10:47
  Speaker 3: have just a collapse. Who have chaos in the streets.
• 10:51
  Speaker 3: I'm afraid. I pray that doesn't happen, but you know
• 10:55
  Speaker 3: you have. You can't have.
• 10:56
  Speaker 1: A healthy country without a healthy and virate, virant middle class.
• 11:00
  Speaker 3: Just can't have it.
• 11:01
  Speaker 4: Yeah, can't not in a modern economy, that's for sure,
• 11:04
  Speaker 4: where everything hinges on demand. Michael, Like these guys like
• 11:09
  Speaker 4: Trump is running on he's going to bring the price
• 11:12
  Speaker 4: of stuff down, but he's also running on I'm going
• 11:15
  Speaker 4: to lower interest rates.
• 11:17
  Speaker 3: And my question is like, how do you do this?
• 11:22
  Speaker 3: You cut the government?
• 11:23
  Speaker 4: Like, I don't know if the last time you were on,
• 11:25
  Speaker 4: I told you I did this exercise with chat GPT.
• 11:29
  Speaker 3: I said, I want to balance the budget. How do
• 11:31
  Speaker 3: I do it?
• 11:32
  Speaker 4: And the first thing it says is increase taxes by
• 11:35
  Speaker 4: fifty percent? And then I had to tell that stupid thing. Look,
• 11:41
  Speaker 4: I'd want to do it without raising taxes. Give me
• 11:43
  Speaker 4: a list of one hundred agencies we can get rid
• 11:46
  Speaker 4: of that no one will notice. And Michael, there were
• 11:51
  Speaker 4: agencies in there that I don't know where they came from.
• 11:55
  Speaker 3: I don't know what they do.
• 11:56
  Speaker 4: The only valid agency in the bunch was the Apartment
• 12:00
  Speaker 4: of Redundancy Department, you know, and the chat GPT just
• 12:04
  Speaker 4: didn't want to get rid of that one.
• 12:06
  Speaker 1: Well, even if you got rid of those hundred agencies,
• 12:09
  Speaker 1: they probably have no money in there other than what
• 12:11
  Speaker 1: do you if you can't solve Social Security, Medicare, Medicaid,
• 12:17
  Speaker 1: and the interest on the debt, and you don't want
• 12:19
  Speaker 1: to touch defense. I don't care if you cut every
• 12:22
  Speaker 1: other program, you haven't solved any problem. That's where all
• 12:25
  Speaker 1: the money is being spent right now, and it's going
• 12:27
  Speaker 1: to get a lot worse. You know, we're going to
• 12:29
  Speaker 1: have a sixty We're going to have at a minimum
• 12:32
  Speaker 1: a sixty trillion, sixty trillion dollar deficit by two thousand
• 12:36
  Speaker 1: and fifty sixty trillion dollars that I mean, and that's
• 12:40
  Speaker 1: if we don't have a recession, and if interest rates
• 12:43
  Speaker 1: don't go up and an inflation is not a problem.
• 12:46
  Speaker 3: I mean, I'll bet you anything in the.
• 12:48
  Speaker 1: World will have a recession by twenty and fifty. Yeah,
• 12:51
  Speaker 1: I bet anything, any amount of money he wants it.
• 12:54
  Speaker 4: Well, one thing, if they bam sugar and and nicotine
• 12:59
  Speaker 4: and carbohydrates, there should just be a law against carbohydrates.
• 13:03
  Speaker 3: That would get rid.
• 13:04
  Speaker 4: Of our medicare problem and all of our health problems.
• 13:07
  Speaker 4: But then the problem would be that people would be
• 13:10
  Speaker 4: living too damn long, and everyone would be living to
• 13:13
  Speaker 4: one hundred or ninety and they'd be collecting Social Security.
• 13:17
  Speaker 4: So that doesn't really solve the problem, does it.
• 13:20
  Speaker 1: No?
• 13:22
  Speaker 3: Not all.
• 13:22
  Speaker 1: You know, I could say, as anecdotally, we have one
• 13:26
  Speaker 1: of the most dangerous food supplies on the planet. Yeah.
• 13:34
  Speaker 3: I came back from Italy not too long.
• 13:35
  Speaker 1: Ago, and we ate out breakfast, lunch, and dinner every
• 13:39
  Speaker 1: day for like ten days. And came back at the
• 13:43
  Speaker 1: same week and I have one dinner here, and you know,
• 13:46
  Speaker 1: I gained three pounds.
• 13:48
  Speaker 3: We get pasta the breakfast. Kerry. I asked you, who
• 13:52
  Speaker 3: is the largest contributory to the Food and Drug Administration?
• 13:56
  Speaker 4: Oh, it's a big pharma though, right, I mean they're
• 14:00
  Speaker 4: they paidillions of dollars in bonuses to the employees to
• 14:04
  Speaker 4: approve these bad drugs.
• 14:06
  Speaker 3: Isn't that? Isn't that?
• 14:07
  Speaker 1: Like, Yeah, so i make my money when people get sick,
• 14:11
  Speaker 1: and I'm going to contribute the biggest lark like seventy
• 14:13
  Speaker 1: five percent or something to the budget of the fight
• 14:16
  Speaker 1: from from pharmaceouil.
• 14:17
  Speaker 3: Industry that brought does that bother any money? That is that?
• 14:21
  Speaker 3: Is that counterintuitive?
• 14:23
  Speaker 4: Their purpose isn't to fight a cure, it's to find
• 14:26
  Speaker 4: a long term treatment that makes you dependent. Like you know,
• 14:32
  Speaker 4: somebody likned it the other day or telling me, like
• 14:35
  Speaker 4: you know, dating sites don't really want want you to
• 14:39
  Speaker 4: find people, and they're designed so you don't find people.
• 14:43
  Speaker 4: Dating sites are designed so you keep paying your subscription fees.
• 14:47
  Speaker 4: And the drug industry, it's a model for American industry.
• 14:51
  Speaker 4: The food industry. They don't want you healthy. They want
• 14:54
  Speaker 4: you eating more and more of this stuff. And that's
• 14:57
  Speaker 4: why it's all designed food kitchens, so it hacks your brain.
• 15:02
  Speaker 4: It biohacks your brain. And the economy is no different.
• 15:06
  Speaker 4: They just want just spending, spending, spending, without any regard
• 15:10
  Speaker 4: to uh financial solvency or anything else.
• 15:13
  Speaker 3: It's all rigged.
• 15:15
  Speaker 1: Yeah, and now the zeitgeist of today is you know
• 15:18
  Speaker 1: how you grow an economy is by how much your
• 15:22
  Speaker 1: government wants to stimulate. But it's as if the government
• 15:24
  Speaker 1: had plenary control of the economy and they could just like,
• 15:29
  Speaker 1: if they want to be nice, they'll just stimulate, borrow
• 15:32
  Speaker 1: a bunch of money and give it to you. And
• 15:34
  Speaker 1: how much the economy grows is just dedicated on how
• 15:37
  Speaker 1: much they want to borrow.
• 15:38
  Speaker 3: And I mean when did that?
• 15:40
  Speaker 1: When did that become a formula for success in a
• 15:43
  Speaker 1: capitalist economy? You know, yeah, China is completely communists.
• 15:48
  Speaker 3: I get that.
• 15:48
  Speaker 1: But you know people are saying, well, even you here
• 15:51
  Speaker 1: are are American media, if only the communists, the PBOC
• 15:56
  Speaker 1: and the and the and the and Beijing will just
• 15:59
  Speaker 1: just agree to stimulate a little more, that's only just
• 16:02
  Speaker 1: to stimulate.
• 16:03
  Speaker 4: That worked real good last time. It reminds me of
• 16:07
  Speaker 4: a Saturday Night Live skit back when Saturday Night Live
• 16:11
  Speaker 4: was actually really funny and we used to race home
• 16:13
  Speaker 4: to see it because we didn't have DV yours. Jimmy
• 16:17
  Speaker 4: Carter was talking about inflation and his plan was, I'm
• 16:21
  Speaker 4: going to use inflation to make everybody in the country
• 16:24
  Speaker 4: a millionaire. That's how I'm going to solve the problem.
• 16:28
  Speaker 4: And sure enough, Jerome Powell and the current leaders and
• 16:34
  Speaker 4: Trump as well.
• 16:36
  Speaker 3: That's their plan.
• 16:36
  Speaker 4: They're going to make everyone a millionaire, Michael, and basically
• 16:39
  Speaker 4: home prices.
• 16:41
  Speaker 3: We're already halfway there for a lot of the country. Yeah,
• 16:44
  Speaker 3: and being a millionaire used to mean something.
• 16:46
  Speaker 1: It doesn't mean anything anymore because everybody isn't well, I
• 16:50
  Speaker 1: say everybody.
• 16:52
  Speaker 3: It's a bifurcated country.
• 16:53
  Speaker 1: So yeah, you know, there was a one of the
• 16:58
  Speaker 1: founding fathers of Bloomberg about how wonderful inflation is because
• 17:03
  Speaker 1: inflation is now back, prices are now back down to
• 17:06
  Speaker 1: where they were and before COVID, and that wages have
• 17:12
  Speaker 1: kept pace with inflation.
• 17:15
  Speaker 3: What wages like?
• 17:16
  Speaker 1: What average wages have kept up with CPI average wages?
• 17:23
  Speaker 1: That's assuming everybody gets to say that gets that average.
• 17:26
  Speaker 1: But if you're on a fixed income, tell me how
• 17:28
  Speaker 1: your wages have kept up with inflation? Right, if you
• 17:31
  Speaker 1: don't have a job, tell me how your wages have
• 17:33
  Speaker 1: kept up with inflation? And that again, those wages are
• 17:36
  Speaker 1: all skewed to the top twenty percent, and those wages
• 17:40
  Speaker 1: have kept up with CPI. Is CPI accurate measurement of
• 17:44
  Speaker 1: the really has occurred with prices? No?
• 17:48
  Speaker 3: I mean food is up fifty percent if you look, you.
• 17:50
  Speaker 1: Know, eggs and beef and insurance home prices are up
• 17:54
  Speaker 1: over fifty percent in the last four years.
• 17:57
  Speaker 3: So I mean, what what what are you talking about?
• 18:00
  Speaker 1: We need price carried, Like I said, we need prices
• 18:02
  Speaker 1: in this country to gradually fall. Deflation is good and
• 18:06
  Speaker 1: healthy because you're going to get if you can't get
• 18:09
  Speaker 1: that to happen, if you're gonna if your own power
• 18:12
  Speaker 1: is gonna say, I am telling you that inflation above
• 18:16
  Speaker 1: two percent, which it still is and it's been that
• 18:19
  Speaker 1: way for forty three months. If inflation is above two percent,
• 18:23
  Speaker 1: I need to start cutting rates aggressively to try to
• 18:26
  Speaker 1: keep inflation from falling any further. That's telling investors in
• 18:31
  Speaker 1: our fixed income spectrum that since our central bank no
• 18:35
  Speaker 1: longer cares about inflation, we need to start caring about
• 18:39
  Speaker 1: inflation a whole lot more. And they are. You know,
• 18:42
  Speaker 1: here's here's here's a fact. Mortgage rates have gone up significantly, significantly.
• 18:49
  Speaker 1: They just butt like from six point one percent to
• 18:53
  Speaker 1: seven and a half percent since Powell cut interest rates
• 18:57
  Speaker 1: to bring interest rates down. Now, what's that about the
• 19:02
  Speaker 1: benchmark ten year treasury You know, that's what that's mostly
• 19:07
  Speaker 1: paid to what mortgage rates are going to do and
• 19:10
  Speaker 1: what your order going Now, if your ordo is more
• 19:13
  Speaker 1: expensive and your house is more expensive, tell me, tell
• 19:16
  Speaker 1: me how Powell is making things better?
• 19:19
  Speaker 2: Good?
• 19:19
  Speaker 1: Right on an answered note, when you've done is you said,
• 19:22
  Speaker 1: you said to investors you no longer care about inflation,
• 19:25
  Speaker 1: so we have to start to It's madness.
• 19:28
  Speaker 4: It's madness of You know, one thing that I thought
• 19:33
  Speaker 4: we were at this point that we're at now in
• 19:36
  Speaker 4: the nineties. Then the Internet came along and there was
• 19:39
  Speaker 4: a productivity boom globally that brought down prices around the
• 19:45
  Speaker 4: world to think that government will stop spending and that
• 19:48
  Speaker 4: somehow that's going to to save us here that you
• 19:54
  Speaker 4: know as well as ido, and that just ain't going
• 19:57
  Speaker 4: to happen until they have to. Right.
• 19:59
  Speaker 1: Yeah, they'll stop, They'll stop spending, They'll they'll reset the currency,
• 20:03
  Speaker 1: they will default explicitly on debt. After we suffer a
• 20:08
  Speaker 1: long and protractive battle with hyperinflation.
• 20:12
  Speaker 3: We're not We're no longer near that. We're not near
• 20:15
  Speaker 3: that at all. Right now, what about we will? I
• 20:18
  Speaker 3: think we will eventually have that battle. And then and
• 20:22
  Speaker 3: then and.
• 20:22
  Speaker 1: Then when people when the people wake up and they
• 20:25
  Speaker 1: stop watching you know, uh, the network television to get
• 20:31
  Speaker 1: their news.
• 20:33
  Speaker 3: They are pretty well doing that, you know that.
• 20:35
  Speaker 4: Then it's a network news is like nobody trusted trust it, right,
• 20:42
  Speaker 4: the least trusted name in news, CNN, the cemetery news network.
• 20:47
  Speaker 3: Right.
• 20:48
  Speaker 1: That's why people are flocking to outlets like yours to
• 20:53
  Speaker 1: get real honest information and real honest interpretation of that
• 20:58
  Speaker 1: medicine of that information.
• 21:00
  Speaker 3: Yeah, Joe Rude.
• 21:03
  Speaker 1: So when the people say, wait a second, why why
• 21:08
  Speaker 1: is my Why is the purchasing power of my currency cratering?
• 21:13
  Speaker 1: What is causing that? What does it mean when a
• 21:16
  Speaker 1: fence balance he goes from a few hundred billion dollars
• 21:19
  Speaker 1: to nine trillion?
• 21:21
  Speaker 3: What does what does it mean when.
• 21:22
  Speaker 1: When Jaddie Yellen, the Treasury Secretary whoever at the time,
• 21:28
  Speaker 1: sends another round of helicopter money just checks in the mail?
• 21:31
  Speaker 1: What does that really mean? Where does the money come from?
• 21:34
  Speaker 1: What is backing my currency? Those are the questions that
• 21:38
  Speaker 1: we stopped asking. I mean I used to ask them
• 21:40
  Speaker 1: all the time when I was on CNBC and I've
• 21:42
  Speaker 1: been thrown off the channel. Hey, what what is wrong?
• 21:46
  Speaker 1: I used to debate Steve Lison about this all and
• 21:50
  Speaker 1: what is wrong. We got to a discussion about the
• 21:55
  Speaker 1: the increase in the money supply. It's like, well, you
• 21:59
  Speaker 1: need a how would you how would you, you know,
• 22:02
  Speaker 1: target the money supply? I said, why do you peg
• 22:04
  Speaker 1: it towards something like gold? The mind supply increasing gold
• 22:09
  Speaker 1: is commensurate with a year it's about to about two
• 22:13
  Speaker 1: percent a year. I think that's what you said.
• 22:16
  Speaker 3: I think it's gotten down a bit, but one and
• 22:18
  Speaker 3: a half you are as Yeah, so one and a
• 22:21
  Speaker 3: half percent.
• 22:22
  Speaker 1: Let's just say one and a half two percent per year,
• 22:23
  Speaker 1: which commensurate with population growth plus productivity growth, long term averages.
• 22:28
  Speaker 1: You can't have these bubbles. Why don't we just what? Oh,
• 22:32
  Speaker 1: we don't we need the elasticity in our currency?
• 22:35
  Speaker 3: Well you need aria?
• 22:36
  Speaker 1: Do you need elasticity to the point where you're printing
• 22:39
  Speaker 1: trillions upon trillions of dollars in a matter of months?
• 22:43
  Speaker 5: Is that?
• 22:43
  Speaker 3: What kind of the eleg what you want need?
• 22:46
  Speaker 4: I need elasticity in my waistband. But if it's too elastic,
• 22:51
  Speaker 4: those pants are going to fall down on me.
• 22:53
  Speaker 3: Oh no, we don't and we don't want that. That
• 22:55
  Speaker 3: all right? You don't about that. It's when the.
• 23:01
  Speaker 1: American public has an epiphany and they say, okay, I
• 23:06
  Speaker 1: understand why our founding fathers said Article one, section ten
• 23:10
  Speaker 1: of our Constitution that only gold or silver should be
• 23:13
  Speaker 1: considered money.
• 23:15
  Speaker 3: You just can't print it. WILLI nilly?
• 23:17
  Speaker 1: Not a state, and not the federal government, certainly not
• 23:19
  Speaker 1: the federal When money becomes real, we'll stop all this madness,
• 23:24
  Speaker 1: will stop, the endless wars, will stop, the acid bubbles
• 23:28
  Speaker 1: will heal the middle class, will stop, the bifurcation of
• 23:32
  Speaker 1: the country between the haves and have nots.
• 23:35
  Speaker 3: Stable prices, stable interest.
• 23:37
  Speaker 4: Rates, declining price people currency, declining prices, declining prices.
• 23:44
  Speaker 1: And that's you know, that's a natural byproduct of productivity.
• 23:47
  Speaker 1: You know, if I can, if I can produce more
• 23:49
  Speaker 1: forward bars off the assembly line for you know, for
• 23:54
  Speaker 1: less money, I could charge you less, but I make
• 23:57
  Speaker 1: up for it in volume. My margin is why might
• 24:00
  Speaker 1: might stay the same or shrink a little, but the
• 24:03
  Speaker 1: volume will be explosive. Everybody wins and you hire a
• 24:06
  Speaker 1: lot of people. That's how you grow. You grow economy
• 24:09
  Speaker 1: through here's the word for you, productivity and savings, real
• 24:15
  Speaker 1: honest innovation.
• 24:17
  Speaker 3: You do not grow an economy by.
• 24:21
  Speaker 1: Praying and obsequiously supplicating to a government to stimulate. They
• 24:28
  Speaker 1: have nothing. The government has nothing but a printing press.
• 24:32
  Speaker 1: They take, they take, they take from you, they take
• 24:36
  Speaker 1: from the private sector, and they create inflation. They are
• 24:40
  Speaker 1: government is a productivity killing machine and an inflation producing machine.
• 24:45
  Speaker 1: That is all they can do. Please remember that when
• 24:47
  Speaker 1: you asked for well, why don't they just stimulate? We
• 24:50
  Speaker 1: need some we need some deficit spending.
• 24:53
  Speaker 3: That's right here. Well we thought.
• 24:57
  Speaker 1: I think we tried that we have and now we have.
• 25:01
  Speaker 1: We are on the precipice, precipice of a bond market collapse.
• 25:05
  Speaker 1: And that's going to wake a lot of.
• 25:06
  Speaker 4: People up, Yes, for sure. Well you know, you know
• 25:13
  Speaker 4: it wakes people up. Things like peanut the squirrel, you know,
• 25:19
  Speaker 4: stormtroopers charging it to a guy's house and then killing
• 25:22
  Speaker 4: his pet squirrel in his pet raccoon. Because everything else
• 25:27
  Speaker 4: you're talking about, most of the people weren't alive Michael
• 25:30
  Speaker 4: for the last round of inflation in the seventies and
• 25:33
  Speaker 4: eighties and late sixties.
• 25:35
  Speaker 3: Like you and I were.
• 25:37
  Speaker 4: But when the government comes in and you're mighty your
• 25:40
  Speaker 4: own business, and they you know, they, you know, ten
• 25:45
  Speaker 4: people armed to go get a squirrel that's a real
• 25:49
  Speaker 4: threat to humanity. People start to the veil is coming off.
• 25:55
  Speaker 4: You know, I think it might even be an election
• 26:01
  Speaker 4: events because you know, I was listen. Why didn't they
• 26:06
  Speaker 4: just let Rocky the squirrel go?
• 26:08
  Speaker 3: Yeah? I mean, good, good, good? I mean, what are you?
• 26:11
  Speaker 1: I live in Florida, and if you look the wrong
• 26:13
  Speaker 1: way at a fish, I mean you could go to
• 26:16
  Speaker 1: jail here.
• 26:17
  Speaker 3: I mean, I think they shot that. Did they shoot
• 26:19
  Speaker 3: the squirrel? Yeah?
• 26:21
  Speaker 4: They know they didn't shoot it, but they euthanized it.
• 26:23
  Speaker 4: In other words, they killed it and the raccoon, both
• 26:26
  Speaker 4: of them. The raccoon was just a bystander. Had they
• 26:29
  Speaker 4: kill it?
• 26:30
  Speaker 3: They give it a list. I guess they needled it. Yeah,
• 26:33
  Speaker 3: you know, put it down. But why couldn't they just
• 26:35
  Speaker 3: let the thing.
• 26:36
  Speaker 4: Go because it supposedly bit somebody and the squirrel the
• 26:41
  Speaker 4: raccoon was a witness.
• 26:43
  Speaker 3: I don't know.
• 26:43
  Speaker 5: They had to erase all bald witnesses. The witnesses how
• 26:48
  Speaker 5: to be Yeah, you know, like some mob can't let
• 26:51
  Speaker 5: a witness arrive. I don't know why it's illegal to
• 26:54
  Speaker 5: have a round. I mean because a rodent, I mean
• 26:56
  Speaker 5: a rabbits or rodents I don't know. I don't want
• 26:58
  Speaker 5: you know, I'm sure I already doesn't want to hear it.
• 27:00
  Speaker 5: But but but the thing is that why we have
• 27:05
  Speaker 5: to feder the control of government.
• 27:07
  Speaker 1: And then the number one thing we need to do
• 27:09
  Speaker 1: is the government has they have they have usurped the
• 27:14
  Speaker 1: authority of markets, they've taken it away, and they control everything.
• 27:18
  Speaker 1: And that's why we are obsessive, compulsive about every FED
• 27:22
  Speaker 1: meeting and parse their words like our reading scripture, because
• 27:26
  Speaker 1: they control everything. The FED can destroy this economy, or
• 27:30
  Speaker 1: they can do or they can create some kind of
• 27:32
  Speaker 1: you know, stagflationary sure, so true, license all it's up
• 27:39
  Speaker 1: to them, and we should never have relegated that power
• 27:42
  Speaker 1: to just you know, twelve voting members and they're unelected people.
• 27:48
  Speaker 3: But educate yourself people, that's it, all right?
• 27:52
  Speaker 4: Well, Michael, always insightful, always a pleasure learning from you.
• 27:57
  Speaker 4: Pentoport dot com is the site to go to where
• 28:00
  Speaker 4: you'll find Michael's extensive work, podcasts, interviews, everything else. And
• 28:06
  Speaker 4: if you've got a question from Michael myself, shoot me
• 28:09
  Speaker 4: an email kl at carrie lets dot com and you'll
• 28:13
  Speaker 4: find a link to Michael's site On the show notes
• 28:15
  Speaker 4: to this interview on Financial Survival Network dot com. Sign
• 28:19
  Speaker 4: up for your free newsletter. Michael, we'll talk to you
• 28:22
  Speaker 4: again in a month or two and see how things
• 28:24
  Speaker 4: are transgressing. Lessens to you, Carrie, Thank you, thanks.
• 28:28
  Speaker 2: For listening to Carrie Let's's Financial Survival Network, your solution
• 28:33
  Speaker 2: to today's trying times. For the latest, go to Financial
• 28:37
  Speaker 2: Survivalnetwork dot com. Financial Survival Network now more than ever,