Latest / Financial Survival Network / Gold's Steady Rise & Silver Surges Amid US Debt Crisis - Craig Hemke #6162

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Gold's Steady Rise & Silver Surges Amid US Debt Crisis - Craig Hemke #6162 · Financial Survival Network

0:00
Speaker 1: So you know that was gold was maybe eleven hundred
0:02
Speaker 1: and fifty then, and it went down like fifty that
0:05
Speaker 1: next Sunday night and miss pretty ugly.
0:08
Speaker 2: But we hung in there.
0:09
Speaker 1: And the reason why why my faith never wavered was
0:13
Speaker 1: the math man. I mean, it is what it is,
0:16
Speaker 1: and we're now thirty seven and a half trillion dollars
0:19
Speaker 1: in debt. It's not getting any better. Carry This last
0:22
Speaker 1: burst in gold up through twenty five hundred and through
0:25
Speaker 1: twenty six hundred began about three three and a half
0:28
Speaker 1: weeks ago when the monthly budget deficit for the US
0:32
Speaker 1: government for August was released and it was per month
0:35
Speaker 1: three hundred and eighty billion dollars.
0:39
Speaker 3: I remember you were listening to Carrie Letz's Financial Survival Network,
0:43
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0:47
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0:51
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1:00
Speaker 3: Financial Survival Network now more than.
1:03
Speaker 4: Ever, And welcome you are listening to and watching the
1:10
Speaker 4: Financial Survival Network.
1:11
Speaker 2: I'm your host, Carrie Lutz.
1:13
Speaker 4: Well, it is now October ninth, and price of gold
1:18
Speaker 4: looks like it's getting ready to spike again, but more
1:21
Speaker 4: importantly the price of silver. We were at thirty two
1:23
Speaker 4: almost thirty three dollars silver. Let's get the absolute insider
1:28
Speaker 4: take on this. Craig Heepke TF Metalsreport dot Com is
1:32
Speaker 4: with us now. If you've got a question comment for
1:34
Speaker 4: Craig myself, email kl at Carrie Lutz dot com.
1:38
Speaker 2: Craig, So, where are we now?
1:41
Speaker 1: Well, we're for now at least, we're just at another
1:45
Speaker 1: higher low part of the chart. You know, a bull market,
1:48
Speaker 1: particularly in the Comax golden silver futures, is almost always
1:53
Speaker 1: defined by higher lows and higher highs.
1:56
Speaker 2: You know, where you're just kind of stare stepping up.
1:58
Speaker 1: And that's kind of where we are now, and not
2:01
Speaker 1: only in gold or silver, but also the mining shares
2:05
Speaker 1: are doing the same thing. We'll see where we go
2:07
Speaker 1: from here. I'm optimistic that we can take another run
2:11
Speaker 1: up before the end of the year.
2:13
Speaker 2: But at the same time, you know, if you'd ha.
2:15
Speaker 1: Told me back in January, with all that we knew
2:19
Speaker 1: that was coming, you know, the I mean everybody was
2:22
Speaker 1: factoring in like six or seven raid cuts, you know,
2:24
Speaker 1: on New Year's even last year, and we knew that
2:27
Speaker 1: wasn't going to be the case, so we figured it
2:28
Speaker 1: was gonna be kind of a tough year at least
2:31
Speaker 1: to start.
2:31
Speaker 2: It wasn't.
2:32
Speaker 1: So if you'd told me back, you know, first January,
2:36
Speaker 1: that even if we ended up here near twenty six hundred,
2:39
Speaker 1: we'd have a thirty percent year, I just said, that's aokay.
2:43
Speaker 2: And in terms of silver, I was I.
2:46
Speaker 1: Was looking at a chart earlier this week that Ronnie
2:49
Speaker 1: Sterfelop put out that showed silver gains or losses every
2:55
Speaker 1: year since two thousand and nine, since you know, the
2:58
Speaker 1: Great Financial Crisis, when everything changed across all currencies, all
3:02
Speaker 1: nine major FIAD currencies. And one thing that stood out
3:06
Speaker 1: to me is the three prior periods where silver had
3:11
Speaker 1: a really big year. All three of those were followed
3:15
Speaker 1: by another big year still, the most recent being twenty
3:19
Speaker 1: nineteen and twenty twenty.
3:21
Speaker 2: And so silver's up by the same percentage as gold.
3:24
Speaker 1: Leaves me kind of optimistic that we'll be able to
3:26
Speaker 1: extend this into twenty twenty five.
3:29
Speaker 2: I think, so, huh so hold the course, huh, Well,
3:34
Speaker 2: I mean that's been the case.
3:36
Speaker 1: I mean, I have people on my site, I remember
3:38
Speaker 1: getting this three four years ago, but I still get
3:41
Speaker 1: this occasionally. People on my side they're like, thank you
3:43
Speaker 1: for getting me to stay with this, because man, it
3:47
Speaker 1: was a pretty lonely sojourn back in twenty thirteen and fourteen.
3:51
Speaker 1: I remember the summer of twenty fifteen. It was a Saturday.
3:56
Speaker 1: It was a weekend Wall Street Journal.
3:58
Speaker 2: Did they even do that anymore? Carry? I don't even
4:01
Speaker 2: know Wall Street Journal.
4:03
Speaker 4: The weekend edition that was like that was like a
4:07
Speaker 4: fun show for a while while alive.
4:09
Speaker 2: They used to put out an actual hard copy. Yeah.
4:12
Speaker 1: And I was staying at a hotel as at a
4:15
Speaker 1: wedding with my in laws and my father in law
4:17
Speaker 1: comes up and slaps it down on in front of
4:19
Speaker 1: me because there's an article there about.
4:21
Speaker 2: Gold is just a pet rock, and.
4:27
Speaker 4: That's what what's his name, Jason's wag Buffett said, we
4:33
Speaker 4: spend all this money digging out out of the ground,
4:35
Speaker 4: then we dig a new hole, bury it, and we
4:37
Speaker 4: spent all this money guarding it, right.
4:39
Speaker 2: Right, Zach barbarous a relic?
4:42
Speaker 1: So you know that was gold was maybe eleven hundred
4:45
Speaker 1: and fifty then, and it went down like fifty that
4:47
Speaker 1: next Sunday night and it's pretty ugly, but we hung
4:51
Speaker 1: in there. And the reason why why my faith never
4:54
Speaker 1: wavered was the man man. I mean, it is what
4:58
Speaker 1: it is, and we're now thirty seven and a half
5:00
Speaker 1: trillion dollars in debt. It's not getting any better. Carry
5:03
Speaker 1: This last burst in gold up through twenty five hundred
5:07
Speaker 1: and through twenty six hundred began about three three and
5:10
Speaker 1: a half weeks ago when the monthly budget deficit for
5:14
Speaker 1: the US government for August was released and it was
5:17
Speaker 1: per a month, three hundred eighty billion dollars. I remember,
5:22
Speaker 1: and that's when you know, I was almost like the
5:24
Speaker 1: thing I keep saying in interviews, it's like that grabbed
5:29
Speaker 1: hedge fund managers and you know these home office multi
5:33
Speaker 1: billion dollars and just kind of shook them by the
5:36
Speaker 1: lapel and said.
5:37
Speaker 2: You see this three hundred and eighty billion in a month.
5:41
Speaker 2: You know, another charge for Ronnie.
5:43
Speaker 1: That's a Bank of America research, the most recent one
5:46
Speaker 1: they did, seventy one percent of global financial advisors have
5:51
Speaker 1: less than one percent or zero percent of their client's
5:54
Speaker 1: assets allocated to the precious metals. In the ninety six
5:57
Speaker 1: seventy one percent another twenty four percent have less than
6:00
Speaker 1: five percent, So this, I mean, it won't take much.
6:04
Speaker 1: And that's why, again the math is a math. I
6:06
Speaker 1: feel the sector is grossly underinvested for the protection it provides.
6:11
Speaker 1: And that's why we just keep hanging in there. Hey,
6:13
Speaker 1: and the crypto it's kind of serving a similar function here,
6:19
Speaker 1: you know bitcoin while we're speaking. I hate to give
6:22
Speaker 1: bitcoin prices because it's so volatile.
6:25
Speaker 4: They change so quickly. But right now, for this particular
6:29
Speaker 4: instant in time, it's sixty two thousand, one hundred eighty
6:34
Speaker 4: five bucks. You know, for something that really has no
6:40
Speaker 4: intrinsic value, it has a lot of value it does.
6:44
Speaker 2: Up sit there doing the math. What is that?
6:45
Speaker 1: My cost basis on the little bit of bitcoin I
6:48
Speaker 1: have is about six hundred and twenty bucks. So I'm
6:50
Speaker 1: trying to do the math on what is that ten
6:52
Speaker 1: one hundred thousand percent.
6:53
Speaker 2: I don't know, whatever it is.
6:55
Speaker 1: I and so, And I've never understood this thing about
6:58
Speaker 1: you can only own one versus Yeah, I mean, I've
7:00
Speaker 1: never never made any sense. Yeah, are they are alternatives
7:05
Speaker 1: to your fiat dollar? And why wouldn't you know? And
7:09
Speaker 1: you know, people, it's like the central banks that we've
7:11
Speaker 1: talked about before there's will be a third year in
7:13
Speaker 1: a row of record global central bank gold demand.
7:18
Speaker 2: Well what are they doing.
7:18
Speaker 1: They're taking their dollar reserves that they've accumulated and they're
7:22
Speaker 1: diversifying some into gold. Well that's all I've ever suggested
7:26
Speaker 1: for the individual person. Take some of your dollar reserves
7:29
Speaker 1: and diverse fying a gold That's I mean, this is
7:31
Speaker 1: not complicated.
7:33
Speaker 4: If if people like automatically bought gold, it would force
7:38
Speaker 4: the world's central banks and the world's governments to stop.
7:43
Speaker 2: What they are doing. Yeah. Think about that.
7:45
Speaker 4: If every person out there had a gold and silver
7:49
Speaker 4: account and they added to it monthly because they wouldn't
7:53
Speaker 4: be able to control the prices then, right, because you'd
7:56
Speaker 4: have worldwide demand swamping the algorithms basically right. Yeah, So
8:03
Speaker 4: it would legitimately price these metals at their true worth
8:09
Speaker 4: in currencies, and then you know, the canary and the
8:13
Speaker 4: gold mind, the cat would be out of the bag.
8:16
Speaker 4: They wouldn't be able to hide it, right yeah.
8:19
Speaker 2: Right.
8:20
Speaker 1: You know you think about who hates gold the most, right,
8:23
Speaker 1: the bankers and the politicians and why And I should't
8:28
Speaker 1: you say bankers, bankers, politicians and anybody in financial that
8:33
Speaker 1: benefits from the unlimited creation of the dollars and the
8:37
Speaker 1: debt from which the dollars come. And if that's the
8:41
Speaker 1: system that your company, that your net worth whatever relies upon,
8:46
Speaker 1: you're going to bash all the alternatives all day long.
8:48
Speaker 2: And that's what they do. You'll never hear.
8:49
Speaker 1: Anybody talk about this kind of stuff on CNBC because
8:52
Speaker 1: their beak is dipped by the financial services, mutual funds
8:56
Speaker 1: and everybody else.
8:56
Speaker 4: Right them and get pharma. I mean, but stop taking
9:02
Speaker 4: drugs and buy gold, right, you know, that would nail
9:06
Speaker 4: to the system. Stop taking drugs by precious metals.
9:11
Speaker 1: It's really and really that's a good, good analogy. It
9:14
Speaker 1: really about the same thing here. Here's what I gave
9:16
Speaker 1: you something though that I think is a really good
9:21
Speaker 1: present day example for people to understand. Even within this
9:25
Speaker 1: pricing scheme that relies upon on all these alchemic alternatives,
9:31
Speaker 1: you know, futures contracts and unallocated accounts and ETFs and
9:35
Speaker 1: all this stuff that's gives you exposure to the price,
9:39
Speaker 1: but not the real thing. Even within that pricing scheme,
9:42
Speaker 1: we can look at because and this is just something
9:45
Speaker 1: that I think people can really grasp. You know, the
9:48
Speaker 1: you know, the four ordered ounce bars a goal the
9:50
Speaker 1: London bars, Right, everybody's seen those things. They see someone
9:53
Speaker 1: holding one and it's like, oh wow, the racks of them,
9:55
Speaker 1: you know in the vaults. Four hundred ounces is a
9:59
Speaker 1: London good delivery standard. When Nixon closed the gold window
10:05
Speaker 1: back you know whatever, now fifty three years ago, right.
10:10
Speaker 2: Yeah, it's hard to believe one of those.
10:13
Speaker 1: Bars was exchangeable or cost fourteen thousand dollars. Okay, twenty
10:19
Speaker 1: five years later in the late nineties, one of those
10:23
Speaker 1: bars cost one hundred and ten thousand dollars well as
10:27
Speaker 1: the spot price of gold moved up through twenty five
10:30
Speaker 1: hundred dollars about six weeks ago. With five hundred times
10:33
Speaker 1: four hundred, one of those bars is suddenly a million dollars.
10:39
Speaker 1: What better illustration because the gold is just sat there, right,
10:45
Speaker 1: That bar from nineteen.
10:47
Speaker 2: Seventy one is still that bar.
10:48
Speaker 1: You can't make you know, the argument your house or
10:51
Speaker 1: you know, the the adjustments, what are the well, the
10:56
Speaker 1: oh mis, my senior moment, the CPI, the terms they use,
11:01
Speaker 1: you know to say that the not holistic adjustments. What's
11:04
Speaker 1: the word that they eat eeronic, donic, medonic adjustments. There's
11:07
Speaker 1: no hedonic adjustment to a bar gold. Right, here's your bar,
11:12
Speaker 1: same bar from nineteen seventy one, but the price is
11:15
Speaker 1: a million dollars rather than fourteen thousand.
11:17
Speaker 2: Is that?
11:18
Speaker 1: What better example or illustration is there of the destructive
11:23
Speaker 1: power of the FEMA fiat evaluation in that?
11:26
Speaker 4: And that's why you owned al Hey. You know, Ludwig
11:30
Speaker 4: bad Masis said only government can take a valuable commodity
11:34
Speaker 4: like paper and make it worthless by putting ink on it.
11:40
Speaker 2: I love it. I love it.
11:41
Speaker 4: You know, it's kind of wild, and you might have
11:45
Speaker 4: to dust off that bar because you haven't done anything
11:48
Speaker 4: with it. It's just been sitting there collecting dust. Craig,
11:53
Speaker 4: I don't know if you ever went to the Federal
11:55
Speaker 4: Reserve's gold vault, but to have a tour there.
11:58
Speaker 2: I did it like fifteen years ago.
12:01
Speaker 4: I wrote about it on the site on Financial Survival Network.
12:06
Speaker 2: But you know there was all this gold. Well.
12:09
Speaker 4: One thing that impressed me was that in order to
12:12
Speaker 4: handle the gold, you had to put these magnesium tips
12:16
Speaker 4: on your shoes because it covered it because if you
12:20
Speaker 4: drop the bar, it would crush your foot. They had
12:25
Speaker 4: to wear these special things. But you know, it's just
12:30
Speaker 4: it's kind of shocking, but it isn't because look, the
12:35
Speaker 4: man's nature is always to try to get something for nothing, right.
12:41
Speaker 4: You know, some people call it investing in the stock market,
12:45
Speaker 4: but they want to like create all this money, give
12:49
Speaker 4: it to people, Give everybody what they want, whatever it is,
12:52
Speaker 4: no matter how stupid it is. If it's a degree
12:55
Speaker 4: in puppetry, an advanced degree in puppetry, or you know,
13:01
Speaker 4: medieval French lesbian studies, whatever it is, they want to
13:06
Speaker 4: give it to everyone. And when money was real, they couldn't.
13:11
Speaker 4: But now that money doesn't really exist, only in your mind,
13:15
Speaker 4: only in the bank of a computer on the disc.
13:19
Speaker 4: Now they can do this, Craig, You know, it's it's alchemy,
13:23
Speaker 4: like you said, financial engineering at a level that nobody
13:28
Speaker 4: in their right mind would have ever believed.
13:31
Speaker 1: Yeah, you know, and I mentioned that math, you know,
13:34
Speaker 1: the certainty of the math, the compounding of the math, right,
13:39
Speaker 1: the compounding. You know. You see when we went twenty
13:41
Speaker 1: five years, even under this pricing scheme, from basically ten
13:47
Speaker 1: thousand to one hundred thousand, other twenty five years from
13:49
Speaker 1: hundred thousand to a million, another twenty five years, what
13:52
Speaker 1: are we talking ten million?
13:53
Speaker 4: Right?
13:54
Speaker 1: Okay, twenty five thousand dollars goal. And again what that means,
13:58
Speaker 1: I don't.
13:58
Speaker 2: Know if the system's going to continue for a t
14:00
Speaker 2: another twenty five years. I don't know nob it'll make
14:02
Speaker 2: another twenty five I have no idea.
14:04
Speaker 1: While we're in this kind of crack up boom phase
14:08
Speaker 1: that you're describing, there are going to be all kinds
14:11
Speaker 1: of get based financial assets that go great. You know,
14:18
Speaker 1: I make all kinds that their gains exceed the rate
14:23
Speaker 1: of inflation the rate of devaluation. Right, So nobody should
14:27
Speaker 1: ever like cash out everything and put it into gold
14:30
Speaker 1: or silver or something like that, because you can't know
14:35
Speaker 1: when the thing you know finally implodes under its own
14:38
Speaker 1: weight and their opportunity costs along the way of waiting.
14:41
Speaker 1: But what you definitely have to do is invest yourself
14:44
Speaker 1: in a way that your gains keep up with inflation
14:48
Speaker 1: and gold just in that you know, segment of your portfolio,
14:51
Speaker 1: that part of your asset allocation certainly has proven that
14:53
Speaker 1: over time.
14:55
Speaker 4: Oh, there's no question. And it's not like we're the
14:58
Speaker 4: stop clock brigade here, you know, it's not like we're one.
15:02
Speaker 4: We're right, every once every ten years, This ongoing process.
15:07
Speaker 4: Like you said, it's been going on since nineteen thirteen,
15:11
Speaker 4: but really picked up steam in seventy one when the
15:15
Speaker 4: gold window was closed, when the dollar broke its final
15:19
Speaker 4: connection to gold. And it's pure math, It's really that simple.
15:25
Speaker 4: And they can they can slow it down, maybe they
15:28
Speaker 4: can hide it. Maybe. You know, we have these busts,
15:32
Speaker 4: these financial crashes, which we're probably due for one now
15:35
Speaker 4: because every seventeen years in real estate you get a crash. Right,
15:41
Speaker 4: we're probably due for one now, and certainly the stock
15:46
Speaker 4: market we're probably due and then we begin to process
15:51
Speaker 4: a new right that is I mean I believe all that.
15:55
Speaker 1: Yeah, the cycles that are definitely in play. The only
15:59
Speaker 1: thing you wonder about is how long you know, the
16:01
Speaker 1: plates can keep spinning and they can keep the balls
16:03
Speaker 1: in the air. You know, when you have everything run
16:07
Speaker 1: by computer, right, I mean you look at it like,
16:09
Speaker 1: for example, look at the VIX index.
16:13
Speaker 2: And how many.
16:17
Speaker 1: Got buy programs automated HFT the algorithmic programs are based
16:21
Speaker 1: off of that. If the VIX is going down, then
16:23
Speaker 1: risk is coming out, so we should be in risk assets. Well,
16:26
Speaker 1: then if you can just simply control the VIX, then
16:29
Speaker 1: you can get the computers to do what you want
16:31
Speaker 1: them to do.
16:32
Speaker 2: Yeah, no that I mean not that so like to think.
16:37
Speaker 1: I mean, look, I'm the guy I probably called ten
16:40
Speaker 1: of the last one stock market crashes, and so I'm
16:44
Speaker 1: not I just don't. I just prefer not to fiddle
16:46
Speaker 1: around with it, you know, and you know carry everybody
16:51
Speaker 1: that I should. How do I want to phrase this?
16:54
Speaker 1: There are so many interests aligned in keeping that afloat.
16:57
Speaker 1: I mentioned CNBC and like you know and how they're
17:01
Speaker 1: always on the lock. Now, maybe it's good for ratings
17:03
Speaker 1: every once in a while, Mark it crashed join us
17:06
Speaker 1: tonight at seven o'clock, you know that kind of thing.
17:10
Speaker 1: But everybody's got their their beacon, the trough, and they
17:14
Speaker 1: have an interest in keeping it going. You know, all
17:17
Speaker 1: the way down to the economic data that we get,
17:20
Speaker 1: you know, it's it's all designed and put out to
17:26
Speaker 1: influence the EY. It's like all of those job report
17:30
Speaker 1: Fridays that were oh magically beat expectations, Wow, through all
17:35
Speaker 1: these different seasonal adjustments and the.
17:37
Speaker 4: Like, excert surprised, right, And they come back and then
17:41
Speaker 4: they come back last month and they say, you know what,
17:43
Speaker 4: we we overstated things by eight hundred and fifteen thousand.
17:47
Speaker 2: Well do they then, you know, do they then.
17:50
Speaker 1: Have they then overstated what the stock market did on
17:52
Speaker 1: those twelve fridays or that do we get to reprice
17:55
Speaker 1: gold for all the beatings that it took on those
17:57
Speaker 1: fridays on the fake news?
17:58
Speaker 2: No, so everything. There's so many.
18:02
Speaker 1: Forces aligned to keep the plates spinning that you don't
18:06
Speaker 1: really want to get in the way of that freight train,
18:09
Speaker 1: and you don't want to completely avoid, you know, certain
18:12
Speaker 1: sectors because you're just waiting. You know, you don't know,
18:14
Speaker 1: you don't know when the end is coming. All you
18:16
Speaker 1: can do is prepare for and that's you know where gold,
18:19
Speaker 1: silver too, have a part in your portfolio.
18:22
Speaker 4: Hey, I'm looking at I like to follow the housing
18:25
Speaker 4: stocks because to me, yeah, they know what interest rates
18:30
Speaker 4: are going to do before the Fed nose. You know,
18:33
Speaker 4: you just look at them and guess what. I looked
18:35
Speaker 4: at five or six of them. They're all trading at
18:39
Speaker 4: or near they're all time highs. That are tall brothers kV. Holmes.
18:46
Speaker 4: You know, the whole group is trading at these all
18:50
Speaker 4: time highs, and that could only mean that interest rates
18:54
Speaker 4: are going down. And what happens when the next fifty
18:59
Speaker 4: basis plate. Yeah, rate cut the next fifty basis go
19:05
Speaker 4: and then you know the market will go crazy, right or.
19:08
Speaker 2: Maybe it won't.
19:09
Speaker 4: Maybe we'll get to the point where it doesn't care anymore,
19:12
Speaker 4: where it sees the underlying collapse that we're approaching. I mean,
19:17
Speaker 4: at some point the plates, you know, I would say
19:21
Speaker 4: in seven and eight, the plates were all spinning, but
19:24
Speaker 4: the guys spinning them had to sneeze and a couple
19:27
Speaker 4: of hit the grounds. You know what happens when that
19:31
Speaker 4: guy has a heart attack this time and all of
19:34
Speaker 4: the plates come crashing down.
19:36
Speaker 1: Yeah, yeah, that moment will certainly come. And then where
19:40
Speaker 1: do we go from there? I mean, look at China.
19:42
Speaker 1: You know, China rolled out their monetary bazooka two weeks
19:45
Speaker 1: ago and everything shot up, some of the biggest days
19:48
Speaker 1: in Chinese stock market ever. And then they closed for
19:51
Speaker 1: a week for their you know, their glorious anniversary of
19:54
Speaker 1: the founding and the you know, the.
19:56
Speaker 2: Communists worthy of celebration looking on the hill.
20:00
Speaker 1: And when they reopened, boom, it goes right back down
20:03
Speaker 1: ten percent. And now they're talking about what are they
20:06
Speaker 1: going to do this next week? They're apparently there's some
20:08
Speaker 1: big meeting announcement coming on Saturday.
20:10
Speaker 2: What are they going to do? Even more so, you
20:13
Speaker 2: getting to that point where the men's scheme moment, right,
20:16
Speaker 2: isn't that the men's scheme mode?
20:17
Speaker 1: Right?
20:17
Speaker 2: Yeah?
20:17
Speaker 1: And you're kind of just pushing on a string at
20:19
Speaker 1: some point, you know, you just you can't keep up,
20:22
Speaker 1: and that'll come.
20:24
Speaker 2: It'll come here as well. It's just good.
20:26
Speaker 1: You know, it doesn't matter who wins the election, they're
20:29
Speaker 1: going to be for tough sledding next year, you know that.
20:33
Speaker 2: You think about here, even in what was.
20:36
Speaker 1: Allegedly this strong economy, the US fiscal year just ended
20:40
Speaker 1: on September thirtieth was pretty close to a two trillion
20:43
Speaker 1: dollars annual deficit. What's going to happen in the next
20:48
Speaker 1: fiscal year in a contracting economy where government revenues and
20:54
Speaker 1: tax receipts and anything else fall by a trillion dollars
20:57
Speaker 1: and government spending picks up with stimulus and we're starting
20:59
Speaker 1: sudden are running three.
21:02
Speaker 2: Four or five? Yeah, exactly.
21:04
Speaker 4: Well, I did a useless exercise just for the fun
21:08
Speaker 4: of it, because I had.
21:09
Speaker 2: Some time to kill.
21:10
Speaker 4: I had chat GPT balance the budget without attacks increase,
21:15
Speaker 4: and I said, give me a list of one hundred
21:19
Speaker 4: agencies we could just shudder and never even know they
21:23
Speaker 4: were closed. And some of these agencies, Craig, you never
21:26
Speaker 4: even heard of them. It were so obscure, like the
21:30
Speaker 4: I can't even remember them now this is a few
21:32
Speaker 4: months ago. But hey, if Elon Musk gets in there
21:36
Speaker 4: and he actually can do anything, Elon Musk will be
21:39
Speaker 4: the equivalent of the Grace Commission.
21:41
Speaker 2: Remember the Grace Peter R.
21:43
Speaker 4: Grace from the Grace Chemical Company, which was long since acquired,
21:48
Speaker 4: and in the nineties they had the Grace Commission and
21:52
Speaker 4: he showed them how to balance the budget.
21:54
Speaker 2: But you know, you know how far that way.
21:57
Speaker 4: It's like, yeah, like get real, or who's paying our salary?
22:01
Speaker 4: It's not you, Grace, it's these interests, big pharma, big chemical,
22:07
Speaker 4: big oil, big Agra, you know, all these things. Hey,
22:12
Speaker 4: I want to touch on one thing though, that I
22:14
Speaker 4: knew you were concerned about, and that made me think
22:18
Speaker 4: twice that maybe this election might have a little more significance.
22:22
Speaker 4: I'm not talking about the economy. I'm not talking about
22:26
Speaker 4: the dollar, interest rates, whatever. Rfk Junior deplorable character person
22:32
Speaker 4: I know, I know him personally, despise him, but he
22:37
Speaker 4: did one thing, which was make America healthy again, that
22:42
Speaker 4: we are the most unhealthy nation the world has ever known,
22:46
Speaker 4: and that this is a national crisis. So for that alone,
22:51
Speaker 4: I can forgive him all his sins, and they are manifold,
22:56
Speaker 4: you know, because the health, all the gold, all the
22:59
Speaker 4: money in the world than going to do anything for
23:01
Speaker 4: you if your health is down the tubes.
23:02
Speaker 1: Right, Yeah, you know, curious, this won't surprise you. But
23:06
Speaker 1: I'll turn this back to Golden the Fed as well.
23:08
Speaker 1: You know, anybody could pull up all the charts to
23:11
Speaker 1: show income inequality and wealth inequality all begin diverge back
23:15
Speaker 1: in nineteen seventy one, and what happened in seventy one Again,
23:18
Speaker 1: they're wealthy of gotten wealthier. You know the old line
23:22
Speaker 1: from You Too Got Part two nineteen eighty eight. The
23:25
Speaker 1: rich stay healthy and the six stay poor, right, And
23:29
Speaker 1: it's just the gap just keeps widening. And so it
23:32
Speaker 1: is the lower income people that don't have any money
23:36
Speaker 1: that have lost their good jobs. So they're working three
23:38
Speaker 1: part time jobs. You can see that in the jobs report.
23:41
Speaker 1: They're doing everything they can to make ends meet, and
23:43
Speaker 1: they're shopping and eating the crap that's sold by Dollar General,
23:47
Speaker 1: you know, and in the grocery store the most everything
23:50
Speaker 1: that's got all the seed oils and the preservatives and
23:53
Speaker 1: all that stuff. Because they can't afford to eat any better,
23:57
Speaker 1: or they live in the city and they don't have
23:58
Speaker 1: any alternatives to eat any better, and so they just
24:00
Speaker 1: get fatter and sicker and more drug depend carry.
24:04
Speaker 2: I'll give you one more thing. Everybody they talk about,
24:05
Speaker 2: Oh it's just so great.
24:07
Speaker 1: Look how great the economy is yesterday, Like this haircut.
24:12
Speaker 2: Yeah, I just got it. I just got a haircut yesterday.
24:15
Speaker 1: I've driving through a kind of a neighborhood to get
24:18
Speaker 1: to where the place is where the guy cuts my hair,
24:20
Speaker 1: and all of a sudden, there's fr after.
24:23
Speaker 2: Car bumper to bumper parked along the side of the road.
24:26
Speaker 2: I'm like, it isn't weird.
24:27
Speaker 1: And I'm like and then I see a church coming
24:29
Speaker 1: up about a block away, and I'm like, she's who died.
24:32
Speaker 1: Must be some you know, big shot funeral here. Now
24:36
Speaker 1: I get to the church food pantry this way, Oh
24:39
Speaker 1: my god, there must have been in this serpentine thing
24:43
Speaker 1: a hundred cars wrapping around the neighborhood going up one
24:47
Speaker 1: block over one and back up all to just get
24:50
Speaker 1: and so I'm like, holy crap. So I can come
24:52
Speaker 1: back to my house the same way and there's still
24:56
Speaker 1: a hundred car that maybe down a few seventy five.
24:59
Speaker 2: Wow.
25:00
Speaker 1: Wow, well of sanely single women, you know, moms that
25:04
Speaker 1: you know, just trying to feed their family, that kind
25:06
Speaker 1: of stuff. All just wait, just begging for you know what,
25:10
Speaker 1: twenty dollars worth of groceries. Yeah, gomment, robust, everything's great,
25:15
Speaker 1: give me.
25:16
Speaker 4: Break, just lies. I mean, when you see that, it
25:20
Speaker 4: really brings it home. And like you said, people running
25:25
Speaker 4: three jobs, you know, to try to make ends meet.
25:29
Speaker 4: And oh but the employment numbers are great. Crowd stock
25:35
Speaker 4: market went up one percent today.
25:37
Speaker 2: Just makes me sick. Yeah.
25:39
Speaker 4: Well, hey, we'll leave it on that note. But you know,
25:43
Speaker 4: make sure you go over to craig cite TF Metals
25:46
Speaker 4: Report dot com and get to subscribe to it, because
25:51
Speaker 4: I think with inflation, I don't think of inflation adjusted
25:54
Speaker 4: your subscription prices at Starbus it's been four years. Our
26:00
Speaker 4: Bucks just raised the price of my damn latte from
26:04
Speaker 4: five sixty two to six thirty seven.
26:09
Speaker 2: Here you go, well, about about two of those lattes
26:11
Speaker 2: with tax will get you a month at tfm R.
26:14
Speaker 2: How's that?
26:15
Speaker 1: Man?
26:15
Speaker 4: So so at least there is a place on this
26:18
Speaker 4: planet where inflation is not driving up the cost. So
26:23
Speaker 4: TF Metalsreport dot com And I love the site, love
26:26
Speaker 4: your commentary, your podcast. We've known each other over ten
26:30
Speaker 4: years now. And where the profits you know with an
26:34
Speaker 4: F and with a pH right.
26:38
Speaker 2: More pH than than appy? All right? You know where
26:44
Speaker 2: I get the fs A F you MP, I get that,
26:47
Speaker 2: but anyway you get it, I love it.
26:51
Speaker 4: Matt Hey, So go over to go over to correct site,
26:54
Speaker 4: make sure you subscribe, tell them we sent you, and
26:56
Speaker 4: if you got any questions comments kl at Carrie Let's
26:59
Speaker 4: dot you'll have a link to craig site in the
27:02
Speaker 4: show notes this interview on Financial Survival Network dot com.
27:06
Speaker 2: Sign up for your free newsletter. Craig. We'll talk to
27:10
Speaker 2: you again real soon.
27:11
Speaker 1: Man.
27:11
Speaker 3: Be well, all the best, my friend, Thanks for listening
27:14
Speaker 3: to Carrie Lenz's Financial Survival Network, your solution to today's
27:19
Speaker 3: trying times. For the latest, go to Financial Survivalnetwork dot com.
27:24
Speaker 3: Financial Survival Network
27:26
Speaker 2: Now more than ever