Latest / Financial Survival Network / The End of Kick the Can Down the Road -- Russell Stone #5825

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The End of Kick the Can Down the Road -- Russell Stone #5825 · Financial Survival Network

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  The government's going to have to free up some money so that the economy can
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  be regenerated. So I can see some debts just being from gotten. The
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  rest of it is they can redesign our currency, build it based on silver
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  and goal and then do a conversion as to the debt and put it back
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  in your lap. Or they can just write it off so they can get
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  the economy going. Either way, bond holders are going to get They're either
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  going to pay off the debt, they're going to restructure the debt, or
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  they're going to default on. You're listening to Carrie Letts's Financial Survival Network,
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  where you get valuable information you just can't find anywhere else to thrive in today's
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  trying times. You need the Financial Survival Network now more than ever. Go
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  to Financial Survival Network dot com and get your free newsletter and gift. Financial
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  Survival Network now more than ever, And welcome. You are listening to watching
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  the Financial Survival Network. I'm your host, Carrie Leutz. Well, we
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  got consumer confidence numbers out. They're looking so good. What is anybody worrying
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  about a recession? For? And with the Federal Reserve deciding whether to go
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  or stay or stay or go. It makes a difference. Russell Stone is
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  with us now. Russell, great to have you back on the show.
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  So what is your take on all these numbers we're getting. As we were
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  talking before the show started to carry the Consumer Confidence Index is I would if
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  I had to label it, I would call it a hiccup. You know,
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  the market was trended up from January to March April, kind of a
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  sideways up the market to dial, the SMP, the NASDAC, A lot
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  of the metrics were not going down, but they weren't going up either.
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  This is more of the same some of the things that are coming out now.
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  The car market, the used car market prices are down ten percent,
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  real estate prices are starting to crack and go down. Unemployment is starting to
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  go up. How you're seeing a lot of large check and the unemployment is
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  unique because the layoffs are coming from the top down, knock from the bottom
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  up. So as these things start to entrench into the markets more and more,
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  you're going to start to see the competence plummet and head back down to
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  where it was going. This This confidence index really went sideways. It really
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  didn't go up. You know, when Sun goes up two tents of a
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  percent. I don't count that as any big change in the consumer price index
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  or the consumer confidence index. Right, So we shouldn't be easily swayed by
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  the numbers here, or should we. You're gonna have to show me a
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  lot more good going on within the cony all levels and throughout the world,
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  because we've got China is starting to really show itself as the weakness in China's
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  debt markets start to implode, and those are going to come across and hurt
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  our pensions and hurt our other investments over here with their private equity and the
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  hedge funds. So there's a ripple effect, and we're going to see a
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  lot of ripple effects because the world is built on debt, not on value.
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  Okay, So we have a debt based economy, we have a debt
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  based currency, we have a debt based world. Correct and at the same
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  time throwing back that the world is deleveraging against the dollar. So as Saudi
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  Arabian opex start to pull away from the dollar and allow other currencies to purchase
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  oil, what's that impact going to be? Right, We know what it's
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  going to be. It's not going to be good, all right, It's
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  going to cause inflation and other problems. Okay, So where does this leave
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  us here as investors, as somebody who would one day like to maybe retire
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  if the stars online for me to do that. If the good news is
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  this is that we are going to survive this, but it's going to come
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  at a cost of a big adjustment in the way we go about running our
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  businesses. One, I would put a strong emphasis that everybody should have precious
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  metals gold, silver as the basis of their portfolios. Five or ten percent
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  of the networks should be in pressus metals physically owned held in your hand,
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  all right, and then you build up from there. You can use money
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  market accounts that only buy T bills for liquidity, don't use a bank.
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  Try and get your money out of the banking system. The banks are in
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  trouble, all right. You can't keep on taking money out of banks and
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  not putting money back in and expect them to survive. So you need to
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  leave as little money as possible in the banks and put as much money in
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  the government backed money market accounts that allow us to Sorry, we just had
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  a Camberg failure here. You're still on it. So at the end of
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  the day, we have to deal with that. So as we go about
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  fixing those problems in the banking system, and they will get fixed, but
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  we have to go through deflation first. All right, we are going to
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  go through a deflationary cycle. It's already underway. There's no stop in it.
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  The government stack can be able to stop it. The consumer needs to
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  have the real value of the stock market go down to what it really is.
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  You can't print ten trillion dollars, inflate the value of the stock market,
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  distort the price of bonds and expected to go away in six months.
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  Channing, did you explain that to our politicians? Please? It's I've tribe
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  it don't It doesn't work. Now. I've been into some like luncheons and
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  charity things where politicians show up and you engage them in conversations. Do you
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  think that they know what they're saying and they say things like this, Oh,
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  the US government, we're the borrower and the lender. We have a
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  great deal. Nobody can top that. Are you kidding me? You know,
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  when the politicians making the policies think that we can just borrow and lend
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  from ourselves, and that's good. We should be really electing different people.
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  Sometimes things have to break and carry before they get better. All right,
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  So you're a bundle of joy today here, Russell. All right, So
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  how bad is this going to be? Though? This recession nineteen twenty nine
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  probably times two. So like back then, the populace was much more compliant.
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  They believed in their politicians, in their government, in your government.
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  Now it's not like that. When people start starving, they take to the
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  streets, don't they. Yes they do, Yes they do. But keep
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  in mind, what's the biggest difference between twenty nine and now, which is
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  why it's going to be a degree or two higher than it wasn't twenty nine
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  is the currency was backed by golden twenty nine. Now it's not. It's
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  not. It's back by the full faith and confidence of the US government.
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  Right. If you had to put that in terms of this ship, it
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  would be the Titanic. We have thirty two trillion dollars of debt, a
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  trillion dollars of interest on that debt, in one hundred and eighty or trillion
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  dollars of unfunded liabilities that there's no possible way they can pack Yeah, So
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  the day of reckoning is coming for the US. And this is the Western
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  world, this is China. Maybe Russia is the only one with no debt.
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  But the day of reckoning is here, isn't it. Yeah. They
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  finally kicked the can down the road and hit the cliff. Yeah, and
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  it'd be good if they followed them up. You know, I just thinking
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  we should just replace all our politicians with AI because they couldn't do any worse
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  than our guys are doing. Quite honesty, here's my new standard character.
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  All right, we should change the standards of which we elect people by nobody
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  with greater than a high school education should be elected to public office. Yeah.
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  Well that would be a switch, wouldn't it right, Because quite honestly,
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  you think we're in this mess because we liked a lot of smart people.
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  Would degree where has it gotten us? And stop putting lawyers in Congress
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  in the Senate? Yes, I think us. I got to help.
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  Sorry, he had to be brutal like that, but you know, I'm
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  sick and tired of seeing my family line up at the end of the line
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  in America, the land of Opportunity, only to tell them that you know,
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  they don't deserve anything. You know, we're the last one in line
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  all the time. Yeah, all right, so obviously things are going to
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  get bad here. Yeah, preparation is everything. We can survive this,
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  we will. We've gone through worse. Civil War was pretty bad, nineteen
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  twenty nine was bad. World War two is pretty bad. All right,
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  we'll get through this. It'll break, it'll get better, and we'll fire
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  a bunch of politicians. We'll get rid of a bad a lot of bad
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  policy, and we'll go back to our good old fashion. Keep it simple.
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  We don't need a Department of Education. We don't need all these bureaucracies
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  that just blow the budget and become funding mechanisms for the party in power.
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  Yeah, well, slush funds, everything else, well, completely corrupted.
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  We know this, but still really difficult to deal with this, isn't it?
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  Yes? It is it is. It's gonna be a test of our
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  metal kerry. All right. You know, we were fat, dumb and
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  happy with stat on our hands while we allowed the politicians to get away with
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  this stuff, and we would along with it. All right. Now we're
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  waking up, thank god, America is waking up by travel a lot and
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  to meet people and to go to conferences in America is waking up. There
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  is a lot of good news and we are going to come out better than
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  we were. But we have to break first, and we're going through that
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  process now, all right, So again, what are your suggestions here?
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  What do we do? Pull out all unnecessary money out of the market and
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  put it on the sidelines for the time being by low, sell high.
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  Build a base of your money with silver, not gold, because you can
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  buy eighty three ounces of silver for every one ounce of gold. If you
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  wait until the ratio goes back to ten or twelve to one, right now
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  it's eighty three to one, you'll be able to sell off half of your
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  silver and by two and a half times as much gold. So like that,
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  well we're having in your possession, and then understand that that's the basis
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  to protect yourself against a failing currency, all right? And there you just
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  keep it safe, keep it liquid, payoff debt. Yeah, what's going
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  to happen to your debts once the currency collapses? Well, I think the
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  sloo loanlad it's going to have to just be written off. I don't see
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  the kids being able to pay off these student loans all right, So the
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  contraction is big enough, the government's going to have to free up some money
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  so that the economy can be regenerated. So I can see some debts just
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  being forgotten. The rest of it is, they can you know, redesign
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  or currency, build a base on silver and goal and then do a conversion
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  as to the debt and put it back in your lap. Or they can
• 10:28
  just write it off so they can get the economy going. Either way,
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  bond holders are going to get they're either going to pay off the debt,
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  they're going to restructure the debt, or they're going to default on one of
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  those three things. All right, So we're going to get shafted. Huh
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  yeah, But think about the bond holders did get shopped, all right?
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  Think about when they build out GM, they build out SPB bank. The
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  bond holders got shopped, all right, this is true. But and the
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  shareholders, so both of them get shafted, and they didn't get shafted carry
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  jpmore. Yeah, well I would never expect that, would you. They
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  got a great deal. They you know, eighty percent of the assets at
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  a discount price, and we got to hold the bad assets and pay form.
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  Right. Hey, So what's quickly CPI numbers they seem to be heading
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  down. Is that just a brief hiatus and we'll see them go back up
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  again. What's your take, Russell, it's down. We're in the outer
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  fringes of a deflationary cycle. We're gonna see prices going down because demand will
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  go down, therefore forcing the prices to go down because they're gonna want to
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  liquidate inventory, and you're going to see a deflationary spiral take over, which
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  is good news for us, it's bad news for the government. Cash will
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  be king why because your dollars in nominal values will buy a lot more than
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  they would when the price is rough. So if you know all chopping carved
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  with five hundred dollars worth of stuff and it not only costs two hundred,
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  guess what you know, you're doing really good if you have money cash.
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  So that means interest rates are going to head down too, right, Yeah,
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  Eventually they're going to head down, but the long end of the interest
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  rates will probably go up because fear of default will take over in the bond
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  marketing and that's going to drive up interest rates. And if the government can't
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  get other countries to buy our death, then the government's can be in competition
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  with the interest rates. Right all right, Russell, Well, hey,
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  just tell us where do we find you? How do we connect with you
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  on the web? Yes, Granton FG dot com and you reach out into
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  us. You can log in and request a requirement a conference with me.
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  I'll talk one out one with anybody and help them get him into SOB.
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  And I don't charge for doing that service. All right, you're doing God's
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  work. Appreciate it. Russell. Hey, if you've got a question for
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  Russell myself k l at Kerrelts dot com, we'll get you a quick answer.
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  Make sure you go over to the site Financial Survival Network dot com.
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  Check the show notes to this interview. Click through you get right through to
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  Russell and you can connect with them there. Russell. Appreciate you coming on.
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  We'll talk to you again soon. I was a plug of character.
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  Thank thanks for listening to carry Lutz's Financial Survival Network, your solution to today's
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  trying times. For the latest, go to Financial Survival Network dot com.
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  Financial Survival Network now more than ever,