Latest / Financial Survival Network / The Coming $40 Trillion Economic Collapse - Michael Pento #6410

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The Coming $40 Trillion Economic Collapse - Michael Pento #6410 · Financial Survival Network

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Speaker 2: Welcome you are watching and listening to the Financial Survival Network.
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Speaker 2: I'm your host, Carrie Let's Michael Pento is with us
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Speaker 2: now pentoport dot com. Michael, it's been a while since
0:39
Speaker 2: we last spoke. A few things have happened in the world.
0:43
Speaker 2: Nothing major, just a couple of wars, you know, Goldensilver
0:49
Speaker 2: getting slammed. The stock market, Well, the stock market is
0:54
Speaker 2: the definition of resiliency. What is going on here and
0:58
Speaker 2: what do you think is going to happen?
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Speaker 3: Well, I ran a model called the Inflation Deflation Economic Cycomodel,
1:05
Speaker 3: and it's very easy to I think it's relatively easy
1:08
Speaker 3: to model the economy if you're just looking at the
1:10
Speaker 3: macroeconomic conditions, looking at the Federal Reserve. But when you
1:15
Speaker 3: have to model a president's mood swings, it's it's very difficult.
1:20
Speaker 3: I got to be honest with you, Hey, one day,
1:24
Speaker 3: the war is you know, war's gonna be over in
1:28
Speaker 3: a couple of days. I ran as begging for a deal,
1:33
Speaker 3: and next day they're gonna be wiped off the planet.
1:34
Speaker 3: And this has happened over and over and over again.
1:38
Speaker 3: So I just wish I supported the man. I voted
1:40
Speaker 3: for him twice. I just wish you would just make
1:41
Speaker 3: this decision and go with it, because it's very difficult
1:44
Speaker 3: to model the second derivative of inflation when oil goes
1:48
Speaker 3: from sixty five to one twenty, back to sixty seven,
1:51
Speaker 3: and then back to eighty five, all because of a
1:54
Speaker 3: few you know, a Twitter posts, now what we're doing
1:58
Speaker 3: with the war, So it's very difficult. And when you
2:02
Speaker 3: and the next sus with gold is very clear to
2:04
Speaker 3: me because gold started out the year gold and silver
2:09
Speaker 3: had a wonderful start to the year because why well,
2:12
Speaker 3: we had a couple of interest rate cuts baked into
2:15
Speaker 3: the cake, and then the warst started February twenty eighth
2:19
Speaker 3: and energy prices surged. And one of the biggest misconceptions
2:25
Speaker 3: on Wall Street is that gold is a great hedge
2:30
Speaker 3: against inflation. Well it's really not. Gold is a hedge
2:34
Speaker 3: against rising I'm sorry. Gold is a great hedge against
2:38
Speaker 3: falling real interest rates. That is what gold is a
2:42
Speaker 3: hedge against. And so if you have Kevin Works riding
2:47
Speaker 3: into the town new Sheriff rights down, who is threatening
2:50
Speaker 3: to raise interest rates and disquish inflation, and inflation is
2:53
Speaker 3: going higher, then nominal rates are going to go higher.
2:57
Speaker 3: Real interest rates are going to rise, and that is
3:02
Speaker 3: why gold and silver are not doing well. The best
3:05
Speaker 3: time to own gold and silver are it is during
3:08
Speaker 3: a recession when nominal rates are projected to fall and
3:13
Speaker 3: real interest rates are projected to tumble. So that's that's
3:17
Speaker 3: what's going on. And and you can pick any day,
3:19
Speaker 3: like over the weekend, the war was going hyperkinetic and
3:25
Speaker 3: energy was skyrocketing, and then this morning you come in
3:27
Speaker 3: and energy prices are down because I Ran says there
3:30
Speaker 3: might be a deal. And you know, so this is
3:34
Speaker 3: a very difficult time for investors. But if I could
3:38
Speaker 3: just leave you with this one thought, I'm not gonna
3:40
Speaker 3: leave you the interview. I'll leave this first query with
3:43
Speaker 3: one thought. When you have interest payments on the national
3:49
Speaker 3: debt now totaling twenty four billion dollars.
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Speaker 2: A week week, yeah, week.
3:58
Speaker 3: So that's well over one point two trillion dollars a
4:01
Speaker 3: year in interest payments, which is what twenty twenty something
4:05
Speaker 3: percent of the whole over twenty one percent of the
4:10
Speaker 3: federal revenue is now going to interest payments on the debt.
4:12
Speaker 3: So what does that tell you? We I don't care
4:15
Speaker 3: what Kevin Wirsch thinks he's going to do. He might
4:18
Speaker 3: try to shrink the balance, he might try to raise
4:21
Speaker 3: interest rates. He's going to pop the credit market bubble.
4:24
Speaker 3: He's going to park pop the bubble at housing and
4:27
Speaker 3: in the stock market. And massive, intractable, protracted money printing
4:34
Speaker 3: is the only thing that's going to happen in this country, unfortunately,
4:37
Speaker 3: because the other alternatives of depression. So gold is having
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Speaker 3: a little bit of a problem lately. It's not going
4:44
Speaker 3: to last long, I.
4:46
Speaker 2: Think, so, huh so? And what about silver? Silver is
4:50
Speaker 2: below went below fifty percent of its peak there? Did
4:56
Speaker 2: what exactly happened there?
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Speaker 3: Well, silver is suffering from from two things, because silver
5:03
Speaker 3: is not only a monetary metal, but it's also an
5:05
Speaker 3: industrial metal. And this whole AI thing has been thrown
5:09
Speaker 3: into question lately. You know, the eight hundred billion dollars
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Speaker 3: in spending on AI infrastructure, and then China comes out
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Speaker 3: with a competitive strategy that's much cheaper when you have
5:22
Speaker 3: when you have the threat of higher interest rates, higher
5:26
Speaker 3: real interest rates, and a slow economy. You know, our
5:28
Speaker 3: economy was growing at four percent, that was projection. Now
5:32
Speaker 3: it's now it's growing at like one and a half
5:34
Speaker 3: percent according to the Atlanta Fed model. So and inflation,
5:40
Speaker 3: we're going in the wrong direction for silver and interest rates.
5:43
Speaker 3: So that's and and silver has always been a has
5:48
Speaker 3: a more volatility, a much higher volatility profile than goal.
5:53
Speaker 3: So there, there you have it.
5:55
Speaker 2: So you think patients, I think.
5:58
Speaker 3: You need little patients with gold. I mean the economy
6:01
Speaker 3: is I an or candor. I went along the gold
6:04
Speaker 3: miners a few weeks ago because I saw that, hey,
6:09
Speaker 3: we're gonna have some pretty bad inflation, pretty favorable inflation prints.
6:13
Speaker 3: In other words, the second derivative inflation was gonna fall
6:15
Speaker 3: pretty precipiously from four point two five. Definitely. What happened,
6:19
Speaker 3: we have growth slowing, puts the the the recession fear
6:23
Speaker 3: back on the boil we saw. I thought, I think
6:26
Speaker 3: absolute terribly a terrible non farm paril report number, stressfully,
6:32
Speaker 3: especially if you look at the Household Survey. The Household
6:36
Speaker 3: Survey shows that one zero point seven million people have
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Speaker 3: lost their job so far in twenty twenty six.
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Speaker 2: Is that AI? Is that AI causing that early?
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Speaker 3: I don't think so, because it's not in the initial
6:54
Speaker 3: you would think that people have been laying off left
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Speaker 3: and right. The initial job was claims are just not there.
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Speaker 3: It's like they you, I'll tell you the next print
7:01
Speaker 3: should be two hundred and ten thousand, two hundred every
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Speaker 3: week it's two ten to fifteen. It's like no, I mean,
7:08
Speaker 3: how is that even possible that every week there's no
7:11
Speaker 3: there's the the variation there is just too small mathematically speaking,
7:16
Speaker 3: doesn't make any sense to me. But hey, you know
7:19
Speaker 3: when you have millions and million how many people working
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Speaker 3: in this country and every week you have two undred
7:25
Speaker 3: two hundred and something, doubt it's very low. Two hundred
7:27
Speaker 3: thousand people are are let go. It doesn't make any
7:30
Speaker 3: sense to me. But but if you have, if you
7:33
Speaker 3: if you're losing one point seven million jobs. In fact,
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Speaker 3: I think in the household survey was five I want
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Speaker 3: to say five hundred and something thousand, five hundred and
7:45
Speaker 3: seven or five hundred and seventy thousand people lost their
7:48
Speaker 3: job in the last non front Pale report, but none
7:52
Speaker 3: of them are getting fired. And I mean, I don't
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Speaker 3: It doesn't make any sense to me. According to the accordings,
7:59
Speaker 3: according to b LS, a initial job was claimed. So anyway,
8:03
Speaker 3: my point is this inflation. My point is this inflation
8:07
Speaker 3: was falling and growth was falling, which is wonderful for gold,
8:11
Speaker 3: and gold skyrocketed on those data points. And then what
8:14
Speaker 3: happened the war when and I ran when kinnectic again
8:19
Speaker 3: for whatever reason, I'm not gonna get into the politics here.
8:22
Speaker 3: I'm not going to get into like I pretend to
8:24
Speaker 3: know who fired the show or did Lebon? Was it
8:28
Speaker 3: was it Israel? Was it Amah? I don't know who
8:33
Speaker 3: started it, but the water the war started again, it
8:36
Speaker 3: went kinetic and oil prices shot up, That's what I
8:40
Speaker 3: do know. And that took the the second derivative decrease
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Speaker 3: in inflation from you know, from four point two to
8:47
Speaker 3: three point five. Was probably gonna stay three point five,
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Speaker 3: not gonna have any more reductions in that.
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Speaker 2: So let me ask you a question though, because we
8:54
Speaker 2: have war, uh, and what happens gold and silver promptly
8:59
Speaker 2: go down when the war broke out makes sense, right, Yeah,
9:03
Speaker 2: it's counterintuitive, but.
9:05
Speaker 3: It seems you not when you think about what not
9:07
Speaker 3: when you think about it the way you're supposed to
9:09
Speaker 3: think about it. People think gold hates gold, Gold loves inflation,
9:15
Speaker 3: Goal loves geopolitical chaos.
9:18
Speaker 2: Wrong.
9:18
Speaker 3: Wrong, gold loves falling real interest ries. And if that
9:23
Speaker 3: war was in uh, you know, India, it would be
9:29
Speaker 3: better for gold because it had directly affect energy. But
9:33
Speaker 3: that war is right in the strait of her moves.
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Speaker 3: It's blocked twenty percent of the flow of energy. It's
9:38
Speaker 3: caused energy prices to spike, not only energy prices, fertilizer
9:41
Speaker 3: and other ancillary components. So inflation went Inflation was more
9:48
Speaker 3: than double the fed's acid nine two percent target. That's
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Speaker 3: the problem of Goal. That's bringing a new guy. Now,
9:55
Speaker 3: if we had the old guy in charge, Jerome Powell,
9:59
Speaker 3: who was the biggest money printer in the US has
10:01
Speaker 3: ever suffered through by a lot. Yeah, I mean he printed.
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Speaker 3: He printed two hundred billion dollars since the end of
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Speaker 3: December to when he left on May twenty second, two
10:13
Speaker 3: hundred billion dollars in high powered money. When when lynchion
10:17
Speaker 3: was way higher than two percent carry, you can't step up.
10:21
Speaker 3: And the reason why President Trump hated him because he
10:25
Speaker 3: wasn't wrecking the currency fast enough. He wasn't cutting interest
10:28
Speaker 3: rates fast enough.
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Speaker 2: What was that? Ot? That's nuts? Isn't that crazy? Though?
10:34
Speaker 2: Like you know, the idea that he wasn't printing enough
10:39
Speaker 2: money quick enough, and you know, he basically greased the skids.
10:44
Speaker 2: They were going like NonStop the printing presses in the Fed, right.
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Speaker 3: Two hundred billion dollars since the end of December of
10:53
Speaker 3: twenty twenty five. And he cut interest rates I believe
10:58
Speaker 3: it was six six or seven times, seven times three
11:01
Speaker 3: times the last year. Uh. And that's that's not good.
11:07
Speaker 3: I mean, what and what in God's good earth was
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Speaker 3: he cutting interest rates at all? Four When you're if
11:11
Speaker 3: you have an inflation target for at two percent and
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Speaker 3: you've been above that target for five freaking stinking years,
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Speaker 3: you're you're cutting interest rates and printing two hundred billion
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Speaker 3: dollars of high powered money, expanding the balance sheet of
11:26
Speaker 3: the Federal Reserve, which is high powered money based money supply.
11:29
Speaker 3: It's crazy here, ill bullas more than anything carry. People
11:35
Speaker 3: can't afford a house, they can't afford their hume and
11:38
Speaker 3: not saiah a house people can't afford to eat, you know,
11:45
Speaker 3: foreclosures arising, defaults and delinquencies are rising. And and what
11:53
Speaker 3: do we get from our government? More money printing from
11:56
Speaker 3: our from we're monetizing debt and a record pace and
12:03
Speaker 3: and the and the and the only objection we get
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Speaker 3: from the president is that it's not happening fast enough.
12:08
Speaker 2: Yeah, what is that about? Like what if he went
12:12
Speaker 2: any faster? What would happen then? And uh? And then
12:16
Speaker 2: the dollar has been strong also, right, how does that happen?
12:20
Speaker 3: Yeah, the dollar has been strong because you're comparing it
12:22
Speaker 3: against other you know, faulty, crappy fiat currencies. But the
12:26
Speaker 3: dollar always, the dollar always strengthens, strengthens when you have
12:30
Speaker 3: geopolitical chaos and a slow down. And if you ever,
12:32
Speaker 3: you if you have a recession on the horizon, the
12:35
Speaker 3: dollar will definitely, uh begin to begin to rise. That's
12:38
Speaker 3: what always happens. It's it's just an example. It's always
12:41
Speaker 3: as an unwinding of a carriage trade. And people will
12:44
Speaker 3: be saying, I don't understand why the yen always rallies
12:48
Speaker 3: when we have geopolitical crisis, when the when the global
12:52
Speaker 3: economy slows well, because it's just carry traders on wanting
12:54
Speaker 3: their position, you know, selling their errnencies and buying back
12:58
Speaker 3: the end. So it's the same thing with the dollar,
13:00
Speaker 3: except to a lesser degree.
13:02
Speaker 2: Gotcha, well, makes makes total sense, I guess. So we
13:08
Speaker 2: can what other opportunities are out there. If they start
13:11
Speaker 2: cutting rates, the stock market should be going up again, right,
13:16
Speaker 2: I don't know.
13:16
Speaker 3: And that's so fast, Gerry, that's so fast that you
13:19
Speaker 3: know lately what's happening. And this is a new phenomenon.
13:24
Speaker 3: Normally speaking, when you cut interest rates, the whole yield
13:27
Speaker 3: curve compresses, goes down, and stock market rallies. But the
13:33
Speaker 3: funny thing happened on the way to these last three
13:36
Speaker 3: rate cuts by Joan Powell is at the long end
13:39
Speaker 3: of the yield curve, increased yields rows. And that's new,
13:45
Speaker 3: and it's it's it's because of two things. Number one
13:48
Speaker 3: is that we have not dealt with our inflation problem.
13:51
Speaker 3: So we have a very entrenched inflation problem in this country.
13:56
Speaker 3: As I said, five years above the target and double
13:59
Speaker 3: its tarm get and we're still talking about rate cuts.
14:01
Speaker 3: By the way, at least that's hope for by the
14:05
Speaker 3: President but also we are in solvment. We are we're
14:08
Speaker 3: in the in solvment nation now, and we have a
14:10
Speaker 3: big problem with that. We have forty trillion dollars nationals
14:14
Speaker 3: thirty nine point five whatever it's close to. Let's just
14:17
Speaker 3: let's just it's forty trillion dollar national the one hundred
14:19
Speaker 3: and twenty three percent debt to GDP. This is unprecedented
14:24
Speaker 3: in history for US. And you're talking about deficits that
14:27
Speaker 3: are over two trillion dollars one point two in one
14:30
Speaker 3: point two trillion dollars in interest payments, twenty one percent
14:34
Speaker 3: of all of our right as absolutely so when you
14:37
Speaker 3: start you start thinking about a recession and cutting interest
14:40
Speaker 3: rates because of automatic stabilizers, our deficit is going to
14:44
Speaker 3: go from two trillion too closer to six trillion dollars
14:50
Speaker 3: automatic stable stabilizer as a kick in.
14:53
Speaker 2: They can't do anything about.
14:55
Speaker 3: What are you going to do about it? So the
14:56
Speaker 3: only thing they can do, Carrie, is gonna get I
14:59
Speaker 3: have no doubt even Keaven Worsh, who by the way,
15:02
Speaker 3: Kevin Worsh is since he took off his May twenty
15:06
Speaker 3: second of this year May twenty seconds, so he's supposedly
15:13
Speaker 3: you know, a hard money guy or streen economists. He's
15:15
Speaker 3: got tax a task force for this and a focus
15:17
Speaker 3: panel for this. Right, he printed thirty nine billion dollars
15:23
Speaker 3: since May twenty second. That's seven hundred and twenty two
15:29
Speaker 3: million dollars a day that he has sprinted. Now, I
15:35
Speaker 3: asked myself, I'm puzzled with this. Why isn't it Why
15:38
Speaker 3: is a guy who understands that inflation is a choice.
15:42
Speaker 3: He understands where inflation comes from. It comes from money
15:45
Speaker 3: printing and artificially suppressing interest rates. So banks lend that,
15:48
Speaker 3: banks create money. So money creation comes from the base
15:52
Speaker 3: money supply and the border our good. So it's it's
15:54
Speaker 3: a tandem between the central bank and private banks. You
15:58
Speaker 3: understand that, right, that's money. So why is it that
16:03
Speaker 3: this man, this man knows better. He doesn't need a
16:06
Speaker 3: sit down, a focus group or pow wow, yeah, not
16:11
Speaker 3: to print money. But he's still printing thirty nine million
16:14
Speaker 3: dollars in less than a month.
16:16
Speaker 2: M Yeah, well when you put it that way, Michael,
16:25
Speaker 2: so you know, but look, Milton Friedman was like the
16:29
Speaker 2: same deal you know, or better yet Alan Greenspan, right, Uh,
16:35
Speaker 2: he was a big gold guy till he are you
16:39
Speaker 2: came hit.
16:40
Speaker 3: Talk talk Go ahead, I love what you were saying
16:43
Speaker 3: so much, something so true.
16:44
Speaker 2: Go ahead. Yeah, when he became until he became head
16:48
Speaker 2: of the FED, and all of a sudden, it was
16:50
Speaker 2: like a barbarous relic. Right, Well, I.
16:53
Speaker 3: Mean that's what I'm talking about. You know you you
16:56
Speaker 3: you're an iron Randian ushering hard money guy.
16:59
Speaker 2: On sorrow about Alan and he knew of that.
17:03
Speaker 3: He wants to back. He espoused back, backing the base
17:08
Speaker 3: mind supply with by Gold, comes into office and prints
17:12
Speaker 3: money like a maniac. After the eighty seven crash, he
17:16
Speaker 3: threw out everything he learned because once you get in power,
17:19
Speaker 3: you have all this pressure on you. You don't want to
17:22
Speaker 3: be blamed for the great And I'm saying, Carrie, when
17:28
Speaker 3: we have, not saying if when this business cycle turns over,
17:31
Speaker 3: and it will, yeah, you're not. You're not going to
17:35
Speaker 3: have a recession. You're going to have the greater depression.
17:39
Speaker 3: The great question and the reason why about it?
17:43
Speaker 2: Yes, sorry, so I said, We've been talking about that
17:45
Speaker 2: for years. And then he kicked in the can.
17:49
Speaker 3: Well, the reason why they can, the reason why it
17:51
Speaker 3: hasn't happened yet, And we had a terrible crisis in
17:54
Speaker 3: twenty twenty. We had, we had a crisis in twenty two.
17:57
Speaker 3: It's not like it never happens. But we've extended this.
18:02
Speaker 3: We've kicked the can, as you say, because no one
18:05
Speaker 3: would ever believe that the FED would expand its balance
18:08
Speaker 3: sheet by trillions upon trillions of dollars. This balance sheet
18:11
Speaker 3: was eight hundred billion dollars prior to the housing crisis
18:15
Speaker 3: circuit two thousand and seven, and it went to nine
18:19
Speaker 3: trillion dollars, Carrie. That's why I mean. We went from
18:24
Speaker 3: a we went from an institution, the creature from Jack o'hiland.
18:27
Speaker 3: This this, this institution went from a lender of last
18:31
Speaker 3: resort for an idio idiosyncratic banking failure, they can borrow
18:36
Speaker 3: from the Fed. They would loan treasuries at a discount.
18:41
Speaker 3: We went from that to an institution that is now everything.
18:45
Speaker 3: It controls everything. You can't have a downtick in the market,
18:50
Speaker 3: you can't have an uptake in the unemployment rate. That's
18:54
Speaker 3: what there. That's their new man, that's the new dual mandate.
18:57
Speaker 3: Thou shalt never have a recession, thou shalt never have
19:00
Speaker 3: of a bear market. Remember, and that's not what it
19:06
Speaker 3: was intended to do. And you wonder why you're running around.
19:09
Speaker 3: There's millionaires in multi multimillionaires and billionaires, and and ninety
19:15
Speaker 3: percent of the popular eighty ninety percent of populations wondering
19:18
Speaker 3: if they can pay their next bill and they have
19:20
Speaker 3: no saving you know, fifty percent of the pulplication sixty
19:24
Speaker 3: they can't make ends meet, they have no savings, thousand
19:27
Speaker 3: dollars for retirement. Kerry, Come on, there's that's not capitalism.
19:34
Speaker 2: That's crappitalism, as somebody once bald it. You know, because
19:39
Speaker 2: because you're either behind the inflation eight ball or you're
19:43
Speaker 2: in front of it, right, And if you're behind it,
19:47
Speaker 2: then you're getting crushed. And if you're in front of it,
19:49
Speaker 2: you're cashing in. And that's really what it comes. So,
19:53
Speaker 2: if you have assets, you're the value of your assets,
19:56
Speaker 2: even though the nominal value doesn't increase. Are the nominal
20:00
Speaker 2: value does even though the true value, whatever that might be,
20:04
Speaker 2: and that's impossible to judge at any given time, UH,
20:08
Speaker 2: continues to stay the same. But you feel richer, I guess,
20:13
Speaker 2: so you know, Uh, it's just uh. And you know
20:17
Speaker 2: the other guy, Milton Friedman, you know, mister h free
20:22
Speaker 2: markets and everything else. He was the guy that invented
20:26
Speaker 2: withholding tax, you know, after World War two or during
20:31
Speaker 2: World War two to get all the money, and he
20:33
Speaker 2: invented it. You know, all the things that he stood
20:36
Speaker 2: for and espoused, he wound up going against. But when
20:40
Speaker 2: you're a philosopher, Michael, you know, when you were a philosopher,
20:44
Speaker 2: you could say anything. But when you're inerb with our gears.
20:48
Speaker 3: Yeah yeah, But when your when you when the when
20:50
Speaker 3: the blame is laid at your feet and you got different,
20:53
Speaker 3: I expect nothing different from worsh Unfortunately. You know, this
20:57
Speaker 3: country just celebrates two hundred and fifty year Antiverse three.
21:02
Speaker 3: What do you think the founding fathers are doing?
21:05
Speaker 2: You know how many?
21:05
Speaker 3: How many spins and turns you think they're doing? Kerry?
21:08
Speaker 3: What was kerry? What was what was the what was
21:11
Speaker 3: the federal income tax rate? In seventeen seventy six?
21:14
Speaker 2: There wasn't one.
21:17
Speaker 3: You know why there wasn't one, Carrick, You know why
21:20
Speaker 3: there wasn't one. Think about it. Of course they didn't
21:24
Speaker 3: want they didn't want a very powerful centralized government. But
21:29
Speaker 3: now the tax rates are what thirty you know, is
21:32
Speaker 3: it thirty nine. But what's the top rate? Now, what's
21:34
Speaker 3: the top rate?
21:36
Speaker 2: I mean my average that what thirty nine point six
21:41
Speaker 2: or something like that before medicare.
21:45
Speaker 3: Yeah, I mean, I don't know. Un listen my wife's account.
21:49
Speaker 3: I'm not but I think the incremental rate, I mean,
21:51
Speaker 3: if you earn over like the less trunch of money
21:53
Speaker 3: that you earn, I mean and aggregate, your average is
21:56
Speaker 3: like thirty nine, but that if you earn over a
21:58
Speaker 3: million dollars, it goes. You know, it's higher than that is.
22:01
Speaker 3: And I don't know anyway, let's just say it's forty percent?
22:04
Speaker 3: Forty percent? How much? So the federal government. That's not state, right, Kerrie,
22:10
Speaker 3: that's not that's not sales taxes, that's not tariffs, that's
22:13
Speaker 3: not fuel taxes, that's nothing. That's just the federal rate.
22:19
Speaker 3: That's not what this country was built on. They didn't
22:22
Speaker 3: want a very strong federal government. They didn't want The
22:26
Speaker 3: beauty of this country is freedom, individual freedom. And you
22:30
Speaker 3: can't have individual freedom when your taxes and your income
22:36
Speaker 3: is robbed from you to that level, and and your
22:40
Speaker 3: money isn't free. The cost heavily manipulated, so you're getting
22:46
Speaker 3: you're getting it from both ends. They're getting taxed nominally
22:49
Speaker 3: when it comes out of your pocket, and then you
22:51
Speaker 3: get taxed from inflation. And that's why there's such underlying,
22:55
Speaker 3: an underlying current of anxiety in this country. We need,
22:59
Speaker 3: we need. You know what, I'm a libertarian, I'm ford Port.
23:03
Speaker 3: I love I love the under the poor and under privilege.
23:05
Speaker 3: I want to help them. But inflation is the is
23:08
Speaker 3: the deadliest tax of all, and that comes from monetizing
23:14
Speaker 3: treasury debt. Yeah, so it's the government's full, government's.
23:20
Speaker 2: Full Yeah, of course, of course. You know, like I
23:25
Speaker 2: always said to it when we were going through the
23:26
Speaker 2: Great financial collapse, I said, of course, they're going to
23:30
Speaker 2: print money. They're going to print their way out of it,
23:32
Speaker 2: because no Fed chair wants to be known in history
23:36
Speaker 2: as the person that brought the entire system down. Right.
23:40
Speaker 3: Well, it's exactly right. It's another way of saying what
23:44
Speaker 3: I said. Kevin worsh is going to be another Alan
23:46
Speaker 3: Greenspan unfortunately, because it's not going to be some mild
23:49
Speaker 3: mannered gradual. You know, the home price income ratio is
23:53
Speaker 3: going to go according to long term ten TRENDSIT seven
23:56
Speaker 3: as you go back to round three or four it's
23:58
Speaker 3: not going to gradually come down. Where the total market
24:00
Speaker 3: cap of equities as a percentage of GDP two hundred
24:03
Speaker 3: and thirty five percent today it's averages around ninety. It's
24:06
Speaker 3: not going to come gradually and nice down, innocuously fall
24:09
Speaker 3: down like a nice little snowflake Earth. It's gonna be
24:12
Speaker 3: these asset prices are going to come crashing down. Don't
24:17
Speaker 3: have a date for you, but I but when you
24:20
Speaker 3: have such massive bubbles, the trimverring of thereof homes, real
24:26
Speaker 3: estate equities, and credit, the massive credit bubble that we're in,
24:31
Speaker 3: they don't they don't burst innocuously. They're pernicious in nature.
24:35
Speaker 2: Yeah, I couldn't agree with you more. All right, then
24:39
Speaker 2: what that means is you got to get in touch
24:41
Speaker 2: with Michael, figure this thing out before it happens, because
24:44
Speaker 2: once it happens, it's too late. The site is pentoport
24:50
Speaker 2: dot com. So we'll see when gold and eventually silver
24:54
Speaker 2: prices will start rising. You think it's going to be soon, though, Michael.
24:58
Speaker 3: Aw whatever, whenever the economy rolls over, and that's god
25:02
Speaker 3: that is going to happen. I have a model that
25:05
Speaker 3: predicts when it's gonna happen. It's not happening right now.
25:07
Speaker 3: But given the level of the increase in the household
25:11
Speaker 3: surveys unemployment, you know a number of people unemployed, Given
25:16
Speaker 3: how much this malinvestment in AI spending is occurring, and
25:20
Speaker 3: given the complete hollowing out of the middle class, it's
25:24
Speaker 3: gonna happen. It's either gonna be self induced. The catalysts
25:28
Speaker 3: might be the Federal Reserve. Remember they did that. They
25:31
Speaker 3: did it in two thousand, they raised instur rations six
25:34
Speaker 3: and a quarter. They did it in two thousand and
25:36
Speaker 3: eight and raised insurration of five in a quarter. They
25:38
Speaker 3: go oop, Sorry, I thought we were living in real
25:42
Speaker 3: I thought we could actually perform, you know, put put
25:45
Speaker 3: the Fed funds right above inflation. Oh, I didn't realize
25:47
Speaker 3: we can't do that anymore. So it might be worst
25:51
Speaker 3: tries it and fails like every other attempt. Or it
25:54
Speaker 3: could be it could be that inflation causes it, Inflation
25:58
Speaker 3: causes the bond market to burn. The one either one
26:02
Speaker 3: self induced or inflation. It's it's it. It's not if
26:05
Speaker 3: it happened, it must happen, and it will all right.
26:10
Speaker 2: I think we will leave it at that. And there's
26:13
Speaker 2: certain things that are inevitable in life, right, death, tax, gravity,
26:19
Speaker 2: gravity and uh and the Fed eventually not being able
26:25
Speaker 2: to keep all those dishes spinning right because that's what
26:30
Speaker 2: they're doing.
26:31
Speaker 3: Perfect way to end it will put all right?
26:34
Speaker 2: Hey, question comment Michael, shoot me an email kl at
26:38
Speaker 2: carrie lets dot com. Uh. Oh, Michael, I did also.
26:42
Speaker 2: I wanted to tell you, and I'm going to send
26:44
Speaker 2: you a copy, a signed copy of my latest book.
26:50
Speaker 2: It's The Beaters Guide to Avoiding Ticots.
26:53
Speaker 3: Well, me and my muscle we really needed.
26:57
Speaker 2: Oh man, you need it for sure. You got to
27:00
Speaker 2: it with your radar detector. In my brief lifetime, I've
27:05
Speaker 2: had at least a one hundred, one hundred traffic stops,
27:12
Speaker 2: you know, over over fifty years, you know, since I
27:15
Speaker 2: got my license, talked my way out of about three
27:19
Speaker 2: quarters of them, had about twenty five tickets, beat eleven
27:24
Speaker 2: or twelve of them in court, usually because the trooper
27:28
Speaker 2: didn't show up. And the book is based there was
27:33
Speaker 2: a trooper New York State Trooper were both New Yorkers
27:36
Speaker 2: named James Egan. He wrote the He wrote the seminole
27:42
Speaker 2: cult classic called A Speeder's Guide to Avoiding Tickets. He
27:45
Speaker 2: had resigned, you know, retired from being a trooper. He
27:50
Speaker 2: sold over two hundred and fifty thousand of these books
27:53
Speaker 2: in ten years. It's still on Amazon and it's still
27:57
Speaker 2: on eBay. People are selling them thirty five years later, Bichael.
28:02
Speaker 2: And you know, they don't even talk about light ar,
28:05
Speaker 2: they don't talk about ways because there was no Internet
28:08
Speaker 2: when he wrote this book. So I said, well, I
28:11
Speaker 2: am the natural air because also being America's top recovering attorney,
28:16
Speaker 2: I actually know what to do in court. He never
28:21
Speaker 2: really covered court and model it based on my father.
28:25
Speaker 2: I think we both our fathers probably were in the
28:28
Speaker 2: Greatest Generation World War Two. My father flew the Hump
28:34
Speaker 2: over the Himalaya's most dangerous route in the world. Hundreds
28:38
Speaker 2: of planes crashed there. It was called the Aluminum Trail.
28:42
Speaker 2: And when he got back to the United States, the
28:46
Speaker 2: idea of a sixty mile an hour speed limit sign
28:50
Speaker 2: on the Jersey Turnpike didn't really carry much weight for him.
28:54
Speaker 2: So he was a super speeder before they even coined
28:57
Speaker 2: the term. And just to give you an example, he
29:00
Speaker 2: bought a nineteen sixty five Chevy im Palla ugly green
29:04
Speaker 2: like forest green, kelly green. It was really ugly, and
29:09
Speaker 2: it was his first car with factory air and he
29:13
Speaker 2: hated that card not because the AC didn't work, but
29:16
Speaker 2: because whenever he buried the needle past one hundred and twenty,
29:20
Speaker 2: the odometer cable would snap. And that became like routine
29:24
Speaker 2: maintenance for this guy. So I told my stories in there.
29:28
Speaker 2: But there's good, solid information, and anybody wants the I'll
29:36
Speaker 2: send you the the glovebox checklist what to do when
29:40
Speaker 2: you get stopped by a cop and it works every
29:44
Speaker 2: time or most of the time, and.
29:47
Speaker 3: All right, wait, I definitely need it.
29:50
Speaker 2: And it sounds like I'm a put a seventeen man.
29:53
Speaker 2: I can't wait.
29:53
Speaker 3: It would read it and it's hands like what family
29:56
Speaker 3: is and insurance to provide a drink.
29:58
Speaker 2: Oh yeah, well, you know, like you're not paying enough
30:01
Speaker 2: on the Maserati already get a ticket, get some points
30:05
Speaker 2: and it goes up like and go get and now like,
30:08
Speaker 2: if you get caught going thirty miles over the limit
30:11
Speaker 2: in Florida, you're a super speeder. It's a felony. And
30:16
Speaker 2: that's terrible.
30:18
Speaker 3: I mean on the seven, on seventy five, the highway
30:21
Speaker 3: when it's straight away, on the cars, I mean my
30:24
Speaker 3: Musclati says, do an go one hundred.
30:27
Speaker 2: One hundred, it'll stall, it'll stall. If you go less
30:31
Speaker 2: than a hundred, it'll start complaining. You know, But I don't.
30:34
Speaker 3: Think that's that's not really a souper. I mean, if
30:36
Speaker 3: it's yeah, well, we're not espousing to be reckless and dangerous.
30:42
Speaker 2: No, no, no, why there are.
30:44
Speaker 3: Times when it's you know, clear, and there's nobody around
30:48
Speaker 3: in a straightaway and a hundred is not. A hundred
30:51
Speaker 3: might be a little bit excessive, but it shouldn't end
30:54
Speaker 3: you up in jail.
30:56
Speaker 2: No, And look, it's safety is not dictated by numbers. Okay,
31:02
Speaker 2: because my grandmother if she was when she was going
31:05
Speaker 2: fifty five miles an hour, she was a complete menace
31:08
Speaker 2: to hazard to the road. And me going eighty five
31:13
Speaker 2: is what speed is appropriate under the circumstances. Yeah, you're
31:18
Speaker 2: weaving in out of rush hour traffic going eighty five.
31:21
Speaker 2: You deserve to be arrested. But you know, that's what
31:24
Speaker 2: people don't understand. So check out speedersguide dot com. Speedersguide
31:30
Speaker 2: dot com. The book. It's selling. It's an Amazon bestseller already.
31:35
Speaker 2: I'm going to sell tens of thousands of copies and well,
31:38
Speaker 2: we'll create a defense fund for all of you. You want.
31:43
Speaker 2: One time a cop called me an habitual speeder. Oh,
31:47
Speaker 2: I'm trying to fix it. I'm trying to get better.
31:51
Speaker 2: He didn't buy it, Michael, He totally didn't buy it.
31:54
Speaker 2: So anyway, sure, I'm sure you've been cold worse. Make
31:57
Speaker 2: sure you email me, email me or your address to
32:01
Speaker 2: send the book to. I've got this other book too.
32:04
Speaker 2: I don't know if I showed you this. Yeah. So
32:07
Speaker 2: this case is going unbelievably well, even though by all
32:11
Speaker 2: rights it should have been kicked out, because the attorney
32:15
Speaker 2: for the Town of Palm Beach says in open court
32:19
Speaker 2: in front of Judge Eileen Cannon, parking signs are not
32:23
Speaker 2: traffic control devices. I pull this book out in court,
32:28
Speaker 2: the Manual on Uniform Traffic Control Devices. I just happen
32:33
Speaker 2: to have it paper clipped to the exact section I said,
32:37
Speaker 2: your honor, there's dozens of parking signs in the Manual
32:42
Speaker 2: on Uniform Traffic Control Devices. She's wrong, and I'm eating
32:47
Speaker 2: like Perry Mason. The only thing it would have been better.
32:51
Speaker 2: The only thing would have been better, Michael, is if
32:53
Speaker 2: she started crying and admitted that she murdered free parking.
32:57
Speaker 2: But short of that, I'll take any victory I can get.
33:03
Speaker 3: I'm looking forward to the book, Kerry. I'll send you
33:07
Speaker 3: my email.
33:08
Speaker 2: Yeah, I'll send you both of them too, Okay man,
33:10
Speaker 2: all right, everybody safe, happy investing, good luck, and next month,
33:16
Speaker 2: take care.
33:17
Speaker 1: Thanks for listening to Carrie Letz's Financial Survival Network, your
33:21
Speaker 1: solution to today's trying times. For the latest, go to
33:25
Speaker 1: Financial Survivalnetwork dot com. Financial Survival Network now more than ever,