Latest / Financial Survival Network / America’s Economic Crossroads Is Here - Ed Siddell #6286

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America’s Economic Crossroads Is Here - Ed Siddell #6286 · Financial Survival Network

• 0:00
  Speaker 1: When you look at investors, as we are getting so
• 0:04
  Speaker 1: used to the tariffs and the negotiations as it relates
• 0:07
  Speaker 1: to it, they're not being as spooked as they were
• 0:10
  Speaker 1: in April when the market really dropped. I think people
• 0:14
  Speaker 1: are starting to realize that the tariffs are more of
• 0:17
  Speaker 1: a tactic than just a flat tax all the way
• 0:21
  Speaker 1: across the board. As the current administration continues to negotiate
• 0:24
  Speaker 1: back and forth, it's not having the detrimental effect on
• 0:29
  Speaker 1: the market in the economy as everyone thinks.
• 0:31
  Speaker 2: You're listening to Carrie, Let's as financial survival Network where
• 0:35
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• 0:59
  Speaker 1: And welcome.
• 1:00
  Speaker 3: This is Financial Survival Network. I'm your host, Carrie Lutz. Hey,
• 1:04
  Speaker 3: we're already in June. It's six five, twenty five. We
• 1:08
  Speaker 3: just got numbers and little soft interest rates. Well, surprise, surprise,
• 1:15
  Speaker 3: they're coming down. Maybe Trump will actually learn to love
• 1:19
  Speaker 3: Jerome Powell after all. Edward Siddell is with US now
• 1:23
  Speaker 3: you find Eddie at EGSI financial dot com. Eddie, welcome back.
• 1:29
  Speaker 3: So what's your take on the numbers?
• 1:31
  Speaker 1: Well, thanks for having me back in. You know, honestly,
• 1:35
  Speaker 1: we weren't shocked. They're a little soft, and I think
• 1:39
  Speaker 1: we're going to continue to see a little bit of
• 1:41
  Speaker 1: a slowdown until rates get lowered. We do believe rach
• 1:46
  Speaker 1: Or they are going to lower rage, probably in not
• 1:49
  Speaker 1: in this next meeting, but they are going to lower
• 1:51
  Speaker 1: them once, if not a couple times by the end
• 1:54
  Speaker 1: of the year. They're they're going to have to. I mean,
• 1:56
  Speaker 1: they're already late to the game. Although, like right before
• 2:00
  Speaker 1: we started, I was shocked at University of Michigan's projection
• 2:03
  Speaker 1: for inflation going up six and a half percent next year.
• 2:07
  Speaker 1: I don't know where they got that number, promos actually
• 2:09
  Speaker 1: trying to find the report before we started. But yeah,
• 2:14
  Speaker 1: that's well. I think it has also a lot to
• 2:17
  Speaker 1: do with the tariffs and how they're projecting the tariffs
• 2:21
  Speaker 1: and the impact that that's going to have. But again,
• 2:25
  Speaker 1: you know, six and a half percent is super high.
• 2:27
  Speaker 3: It's ridiculous, but you know, it all depends how you
• 2:31
  Speaker 3: calculate inflation. But the way the e Conherence Department does
• 2:35
  Speaker 3: now labor statistics then probably is spot on, especially if
• 2:41
  Speaker 3: gas prices stay down right.
• 2:43
  Speaker 1: Right right absolutely, And you know that's really the whole
• 2:47
  Speaker 1: thing is when we're looking at inflation, if energy prices,
• 2:52
  Speaker 1: gas prices are down, that really transcends the entire economy
• 2:57
  Speaker 1: because we're a patrollum based economy from you know, not
• 3:00
  Speaker 1: just transportation, but you know, all the way to pharmaceuticals,
• 3:04
  Speaker 1: all the way across the board. So if those costs
• 3:07
  Speaker 1: are lower, how can inflation be be rising? Yeah?
• 3:10
  Speaker 3: But what about the Green New Deal? You know, like
• 3:13
  Speaker 3: you're just gonna put a solar cell on top of
• 3:16
  Speaker 3: your car and you're going to go from there, right.
• 3:20
  Speaker 1: Well, that that's right, that's right. Did you see the
• 3:23
  Speaker 1: report that came out today to beware of those solar
• 3:27
  Speaker 1: panels and and inverters coming from China that they are
• 3:30
  Speaker 1: now finding software in the inverters that that's yeah, crazy, crazy, creazy.
• 3:37
  Speaker 3: Did that come from? I mean, what's going on here?
• 3:40
  Speaker 3: Do you? I mean, this world gets crazier by the day,
• 3:43
  Speaker 3: don't you think?
• 3:44
  Speaker 1: It almost sounds like you can't make this stuff up?
• 3:48
  Speaker 1: You really really can't. All the way across the board.
• 3:51
  Speaker 1: It's just it's it's nuts to include, you know, the
• 3:55
  Speaker 1: Reconciliation bill, some of the that been the big beautiful
• 4:02
  Speaker 1: one bill all wrapped in one where we're adding to
• 4:06
  Speaker 1: the national debt. You know, if if you especially look
• 4:10
  Speaker 1: at the CBO report and again how they calculate these numbers,
• 4:15
  Speaker 1: how they discount it. You know, it goes back to
• 4:17
  Speaker 1: that old saying there's lies, there's damn lies and their statistics, right,
• 4:22
  Speaker 1: So it's amazing how they can make the numbers look
• 4:25
  Speaker 1: however they want.
• 4:26
  Speaker 3: Yeah, well it's not really amazing, is it. So this
• 4:33
  Speaker 3: is a case of been there, done that, and got
• 4:36
  Speaker 3: the T shirt? Right, Yeah, absolutely absolutely it. I think
• 4:42
  Speaker 3: the one thing.
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  Speaker 1: That probably bothers me more than anything else, you know,
• 4:46
  Speaker 1: with it being in the Senate, in the one issue,
• 4:51
  Speaker 1: it almost seems like there's a couple of senators grandstanding
• 4:55
  Speaker 1: just to get the publicity, uh with with without a
• 4:58
  Speaker 1: whole lot of support behind it, you know, in what
• 5:02
  Speaker 1: they're really saying. It seemed like Senator Hallie is kind
• 5:06
  Speaker 1: of backing down a little bit and going along with
• 5:09
  Speaker 1: it because the reality is we have to extend the
• 5:11
  Speaker 1: current tax cuts. If we don't, it is definitely going
• 5:14
  Speaker 1: to tumble, not just the markets and the economy, but
• 5:17
  Speaker 1: it's going to put us in a very deep recession.
• 5:21
  Speaker 1: So I think it's going to get passed by the
• 5:22
  Speaker 1: end of summer. I don't think it'll be by the
• 5:25
  Speaker 1: fourth of July. But again there's I continue to not
• 5:29
  Speaker 1: be surprised.
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  Speaker 3: Interesting. Interesting. So where are we heading here? What do
• 5:35
  Speaker 3: you think the market's going to do? And where do
• 5:39
  Speaker 3: you see all this heading?
• 5:40
  Speaker 1: Well, so the first thing that has to happen is
• 5:42
  Speaker 1: we we've got to get the reconciliation bill passed. So
• 5:44
  Speaker 1: once that happens, then we can start with deregulation from
• 5:48
  Speaker 1: the energy sector to the financial sector, all the way
• 5:52
  Speaker 1: across the board. That's going to spur on growth. I
• 5:55
  Speaker 1: think when you look at investors as we they're getting
• 6:00
  Speaker 1: so used to the tariffs and the negotiations as it
• 6:03
  Speaker 1: relates to it, they're not being as spooked as they
• 6:06
  Speaker 1: were in April when when the market really dropped. I
• 6:10
  Speaker 1: think people are starting to realize that the tariffs are
• 6:14
  Speaker 1: more of a tactic than just a flat tax all
• 6:17
  Speaker 1: the way across the board. As the current administration continues
• 6:20
  Speaker 1: to negotiate back and forth, it's not having the detrimental
• 6:25
  Speaker 1: effect on the market in the economy as everyone thinks. Now,
• 6:29
  Speaker 1: when we're looking at a lot of companies, including Jamie
• 6:32
  Speaker 1: Diamond and JP Morgan, you know, they're they're cautious, very
• 6:36
  Speaker 1: very cautious as it relates to you know, their their
• 6:39
  Speaker 1: future and setting expectations because they want to make sure
• 6:44
  Speaker 1: that if their earnings aren't where everyone's expecting them to be,
• 6:49
  Speaker 1: you know, the stock prices aren't going to get that
• 6:51
  Speaker 1: big of a hit. So we're seeing that all the
• 6:53
  Speaker 1: way across the board, from Walmart to Amazon, you know, everywhere.
• 6:57
  Speaker 1: So but that also creates really good buying opportunities. I'm
• 7:01
  Speaker 1: very bullish on the market. I think it's going to
• 7:04
  Speaker 1: be positive by the end of the year, all the
• 7:06
  Speaker 1: way in in every indassy there's a lot of still
• 7:10
  Speaker 1: really good buys out there, and I think long term,
• 7:13
  Speaker 1: over the next eighteen to twenty four months, we're going
• 7:16
  Speaker 1: to see unprecedented growth.
• 7:18
  Speaker 3: Yeah, I am inclined to agree with you, barring some
• 7:22
  Speaker 3: major geopolitical situation. You know, it's like they keep criticizing
• 7:27
  Speaker 3: Trump like, oh, you just imposed these tariffs and didn't
• 7:32
  Speaker 3: talk to anybody, didn't do anything. Look post World War.
• 7:36
  Speaker 3: You know, we're talking eighty years of the US carrying
• 7:40
  Speaker 3: the world on its shoulders economically and basically dissipating our
• 7:44
  Speaker 3: wealth and all in the name of being a good superpower,
• 7:50
  Speaker 3: a nice superpower. And they weren't going to respond, and
• 7:55
  Speaker 3: they weren't going to react unless Trump did something really drastic.
• 7:59
  Speaker 3: You know that old story. Yet, the guy's got a
• 8:04
  Speaker 3: donkey and he's trying to push it up a hill
• 8:06
  Speaker 3: and it won't go, and it won't go. Then he
• 8:10
  Speaker 3: takes out a two by four and slams it in
• 8:12
  Speaker 3: the head. And this guy's watches what are you doing?
• 8:15
  Speaker 3: What are you doing? He says, he's not paying attention.
• 8:18
  Speaker 3: But now I got his attention. And that's what Trump did.
• 8:21
  Speaker 3: He slammed the two by four on the donkey's head.
• 8:24
  Speaker 3: If he hadn't done that, nobody would have come to
• 8:27
  Speaker 3: the table. And these deals are going to happen way,
• 8:29
  Speaker 3: way faster than anybody out there knows, because there's a
• 8:33
  Speaker 3: secret weapon involved here that I call Trump GPT, and
• 8:38
  Speaker 3: that is Trump's personal AI assistant. You know, he's used
• 8:42
  Speaker 3: to having a whole bunch of servants. He's got a
• 8:45
  Speaker 3: new one. It's an AI servant and they feed in
• 8:48
  Speaker 3: the trade deals, find how we're being screwed, rewrite the
• 8:53
  Speaker 3: trade deal with enforcement and say do this or else,
• 8:57
  Speaker 3: And all the other countries are and hawing, but you're
• 9:01
  Speaker 3: seeing them line up to make deals here.
• 9:04
  Speaker 1: Really, what people don't realize is you keep hearing on
• 9:07
  Speaker 1: the media, right, I mean, it's they it's just if
• 9:10
  Speaker 1: it bleeds, it leads, they want to make it gloom
• 9:12
  Speaker 1: and doom, the sky is falling. But the reality is
• 9:15
  Speaker 1: is that the US America we hold all the cards
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  Speaker 1: because we're the largest, you know, consumer nation in the world.
• 9:22
  Speaker 1: We're also the largest det nation, you know, in world history.
• 9:25
  Speaker 1: But in order to gain access to our markets, you
• 9:29
  Speaker 1: have to be able to you know, be willing to
• 9:32
  Speaker 1: play the game. And we're changing the rules and that
• 9:35
  Speaker 1: and that's huge. And these tariffs, it's affecting China more
• 9:39
  Speaker 1: negatively than it is US. And people are looking for
• 9:42
  Speaker 1: other supply chain avenues. When I say people other countries,
• 9:45
  Speaker 1: not just America. So I think this is good for
• 9:48
  Speaker 1: the world economy, but especially for US. And that's really
• 9:52
  Speaker 1: what's most important to hear at home. It is going
• 9:55
  Speaker 1: to be really good for us long term.
• 9:57
  Speaker 3: Yeah, could not agree with you more, it's totally agree
• 10:01
  Speaker 3: and it had to be done. And you know, the
• 10:05
  Speaker 3: US has stopped becoming the world's checkbook. That's the intent.
• 10:08
  Speaker 3: USA ID being eliminated, all these other NGOs being cut out,
• 10:14
  Speaker 3: and we're going to see. So what about the fact
• 10:18
  Speaker 3: that Congress isn't even cutting anything from the budget in
• 10:21
  Speaker 3: this big, beautiful bill. They're basically leaving it all for
• 10:25
  Speaker 3: Trump to flex his executive muscle.
• 10:28
  Speaker 1: Right, well, they are, and that's probably the most disappointing
• 10:33
  Speaker 1: thing when you have, albeit very slim a majority in
• 10:37
  Speaker 1: Congress supposedly where there's fiscal conservatives, and even as Doze
• 10:44
  Speaker 1: was going through and finding all this waste, fraud and abuse,
• 10:49
  Speaker 1: Congress has to come in and legally reappropriate that otherwise
• 10:52
  Speaker 1: they continue to receive those moneies. And they won't do
• 10:55
  Speaker 1: it because they're worried about re election and their constituencies.
• 11:00
  Speaker 1: So they're leaving it up to Trump to be the
• 11:03
  Speaker 1: big heavy hand because and here's the issue, if we
• 11:08
  Speaker 1: don't actually fix this, we're going to continue to be
• 11:11
  Speaker 1: the world's financial patsy all the way across the board.
• 11:15
  Speaker 1: Because with these you know NGOs, let's face it, they're
• 11:18
  Speaker 1: basically government cutouts and we're funding those to do things abroad,
• 11:24
  Speaker 1: and it's benefiting all these other countries, and we do
• 11:26
  Speaker 1: have to stop that in order to be fiscally responsible
• 11:30
  Speaker 1: and be good stores of taxpayer money. And you know
• 11:33
  Speaker 1: that's money coming right out on you know, my pocket,
• 11:35
  Speaker 1: in your pocket.
• 11:36
  Speaker 3: Agreed, So uh, looking ahead though, basically it's just going
• 11:42
  Speaker 3: to cut the money off and let them sue. And
• 11:44
  Speaker 3: I think that the Impoundment Act of nineteen o seven
• 11:48
  Speaker 3: and four, I think it was is unconstitutional. It rained
• 11:51
  Speaker 3: in a power that presidents have had since the Republic
• 11:55
  Speaker 3: was founded. And really, you know, I don't see that
• 12:01
  Speaker 3: they're going to be able to do anything to stop them.
• 12:03
  Speaker 1: It'll be interesting to see how the Supreme Court rules
• 12:08
  Speaker 1: in what the opinion is going to be on that.
• 12:10
  Speaker 1: I would be shocked if they rule against Trump and
• 12:15
  Speaker 1: his authority and power. But again, stranger things have been happening.
• 12:19
  Speaker 1: So but again it is they're going to leave it
• 12:22
  Speaker 1: up to him, and you know that's a good thing
• 12:24
  Speaker 1: because he's going to do what's in the country's best
• 12:27
  Speaker 1: interest America first, which you have to love.
• 12:29
  Speaker 3: Yeah, yeah, absolutely, could not agree with you more. Hey,
• 12:33
  Speaker 3: So when we have this conversation on June fifth, twenty
• 12:36
  Speaker 3: twenty six. Where's the market.
• 12:38
  Speaker 1: Going to be yet? I think, honestly it's it is
• 12:41
  Speaker 1: probably going to be at least twenty percent higher than
• 12:44
  Speaker 1: where it is right now. There are a couple of caveats.
• 12:47
  Speaker 1: Right here is the caveat. The number one caveat is
• 12:50
  Speaker 1: the reconciliation bill that has to get done. As soon
• 12:53
  Speaker 1: as that gets done, then the rest of the dominoes
• 12:55
  Speaker 1: are going to fall. So that is first and foremost.
• 12:58
  Speaker 1: There's a couple other things. And like you said earlier,
• 13:02
  Speaker 1: you know, bar some geopolitical strife. But yeah, I'm and
• 13:07
  Speaker 1: I'm being very very conservative. We're being more bullish than that.
• 13:11
  Speaker 1: We have redeployed a lot of cash and capital back
• 13:15
  Speaker 1: into the markets. We are about three percent invested for us,
• 13:21
  Speaker 1: so we we believe that strongly. And where the market
• 13:24
  Speaker 1: and the economy and everything is going over the next
• 13:26
  Speaker 1: twelve to eighteen months.
• 13:28
  Speaker 3: All right, I like it, ed, Just tell us where
• 13:31
  Speaker 3: we'll find you again, Please.
• 13:33
  Speaker 1: EGSI Financial dot com.
• 13:35
  Speaker 3: All right. Links in the show notes this interview on
• 13:38
  Speaker 3: Financial Survival Network dot com. And while you're there, please
• 13:43
  Speaker 3: sign up for free newsletter. Also we've got a substack.
• 13:47
  Speaker 3: The link will be in there as well, and a
• 13:50
  Speaker 3: lot of valuable info excuse me, where we actually discuss
• 13:55
  Speaker 3: the rise of Trump gpt ed. Appreciate you being on.
• 13:59
  Speaker 3: We'll talk talk to you again real soon.
• 14:01
  Speaker 1: All right, thanks for having me, talk to you soon.
• 14:03
  Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
• 14:07
  Speaker 2: solution to today's trying times. For the latest, go to
• 14:11
  Speaker 2: Financial Survivalnetwork dot com. Financial Survival Network
• 14:15
  Speaker 1: Now more than ever,