Latest / Financial Survival Network / Trump Can't Stop the Recession - Michael Pento #6233

Transcript

Trump Can't Stop the Recession - Michael Pento #6233 · Financial Survival Network

• 0:00
  Speaker 1: I just don't see any significant cuts coming. If you
• 0:02
  Speaker 1: don't touch Social Security, Medicare and Medicaid, the military, interest
• 0:06
  Speaker 1: on the debt, it's an illusion, Carrie. There's nothing there
• 0:09
  Speaker 1: can they can cut the heck out of the government,
• 0:12
  Speaker 1: and I wish they would. It would be wonderful. You
• 0:14
  Speaker 1: can cut spending and the best thing we could do
• 0:15
  Speaker 1: is maybe cut a lot of government wasts.
• 0:18
  Speaker 2: You're listening to Carrie Letz's Financial Survival Network, where you
• 0:22
  Speaker 2: get valuable information. You just can't find anywhere else to
• 0:26
  Speaker 2: thrive in today's trying times. You need the Financial Survival
• 0:30
  Speaker 2: Network now more than ever. Go to Financial Survivalnetwork dot
• 0:34
  Speaker 2: com and get your free newsletter and gift. Financial Survival
• 0:39
  Speaker 2: Network now more than ever, and welcome.
• 0:46
  Speaker 3: You are listening to and watching the Financial Survival Network.
• 0:50
  Speaker 3: I'm your host, Carrie Letz. Hey, we're in the first
• 0:53
  Speaker 3: week of February. Things are happening so quickly.
• 0:56
  Speaker 4: Here. Wanted to get Michael.
• 0:57
  Speaker 3: Pento on pentoport dot com. Any questions for Michael and
• 1:01
  Speaker 3: myself kl at Kerrie lets dot com. Is the email address?
• 1:06
  Speaker 3: Did you ever think we were going to live through
• 1:09
  Speaker 3: times like today like we're living through?
• 1:12
  Speaker 1: You know, gee, how do I answer that. I yes,
• 1:17
  Speaker 1: I'm surprised on some degree, but I don't think we've
• 1:21
  Speaker 1: seen anything yet, Kerry, compared to us coming. You know,
• 1:24
  Speaker 1: the fact that the bubbles in an extent haven't burst
• 1:28
  Speaker 1: yet doesn't mean they don't exist massive in record bubbles
• 1:32
  Speaker 1: in the credit markets, housing and in and inequities. And
• 1:38
  Speaker 1: I mean they're just floating around waiting for a pin.
• 1:40
  Speaker 1: And I kind of liken it to a hot air balloon.
• 1:43
  Speaker 1: You know, the hot air balloon tends to float when
• 1:46
  Speaker 1: you keep on putting hot air into it, which is
• 1:48
  Speaker 1: the liquidity coming into the bond market primarily. But it's
• 1:53
  Speaker 1: taken a long time, taken years for that the cluidity
• 1:55
  Speaker 1: to be exhausted. You look at what's in the reverse
• 1:58
  Speaker 1: rebail facility and the TGA level of real fed funds rates.
• 2:02
  Speaker 1: So always are pointing to the fact that liquidity the
• 2:05
  Speaker 1: hot air that's needed. When you have a hot air balloon,
• 2:10
  Speaker 1: it needs hot air to stay afloat. You cut off
• 2:13
  Speaker 1: that hot air and it will crash if it's cut
• 2:16
  Speaker 1: off long enough. And that's exactly what I see happening.
• 2:18
  Speaker 1: I don't know if it's gonna happen this week or
• 2:20
  Speaker 1: next month. I don't think so. But as we go
• 2:23
  Speaker 1: through the year and that TGA starts to get drained,
• 2:25
  Speaker 1: the reverse repail facility is already dry. We've had real
• 2:28
  Speaker 1: FED funds rate, a positive real FED funds rate for many, many,
• 2:32
  Speaker 1: many months. Now we're still heading towards that crash. And
• 2:36
  Speaker 1: you know what I in a comments you know where
• 2:39
  Speaker 1: you just said, Carrie, I don't think anybody. I haven't
• 2:41
  Speaker 1: heard anybody. And I love Donald Trump. I voted for
• 2:44
  Speaker 1: him twice. I think he's got so many great ideas.
• 2:47
  Speaker 1: But he's not a superman. You know, he's not infallible,
• 2:50
  Speaker 1: he's not omnission or omnipotent. And it's just so much
• 2:54
  Speaker 1: he can get done. And we can talk about this
• 2:57
  Speaker 1: tax cuts, we have to get into that. But people
• 3:01
  Speaker 1: are just sitting there and lulled to sleep by this
• 3:04
  Speaker 1: endless stream of hot air and liquidity. Are going to
• 3:06
  Speaker 1: be in for a route awakening, and when it happens,
• 3:09
  Speaker 1: it's going to be catastrophic, catastrophic for the markets who
• 3:12
  Speaker 1: have just been inculcated into the Fed's got your back,
• 3:16
  Speaker 1: and the government has your back, and there's a FED
• 3:20
  Speaker 1: put in there, and it just there is none. There
• 3:23
  Speaker 1: is none anymore. And they the reason why there is
• 3:26
  Speaker 1: none no more, there is no more put is because
• 3:29
  Speaker 1: we are an insolvent nation with a big problem with
• 3:33
  Speaker 1: inflation that has not gone away. And all government can
• 3:36
  Speaker 1: do is borrow and spend and print. That's all they
• 3:39
  Speaker 1: can do. They don't have this you know, you know
• 3:43
  Speaker 1: workforce or you know, manufacturing essence in another world. It
• 3:48
  Speaker 1: doesn't exist. They take your money and spend it, or
• 3:52
  Speaker 1: they borrow it, or they print it. That's all they
• 3:54
  Speaker 1: can do. And that's going to add to the insolvency
• 3:57
  Speaker 1: and inflation concerns.
• 3:58
  Speaker 3: And when they're borrowing it or creating it, printing it
• 4:02
  Speaker 3: out of thin air, they're taking your money. You just
• 4:04
  Speaker 3: don't know it because they're decreasing the purchasing power of
• 4:08
  Speaker 3: that dollar. Now, Musk and Doge, they've been attacking the
• 4:16
  Speaker 3: blob as they call it in Washington and showing the
• 4:20
  Speaker 3: receipts where the money's going, and without getting into all
• 4:23
  Speaker 3: the specifics, it's absurd. But Musk says he can cut
• 4:27
  Speaker 3: four billion dollars a day off of government spending, which
• 4:33
  Speaker 3: comes out close to a trillion and a half dollars Michael,
• 4:36
  Speaker 3: which if we up our tariffs another half a trillion,
• 4:41
  Speaker 3: you know, the deficit, the stated deficit is gone. We
• 4:45
  Speaker 3: still have the two hundred trillion dollar time bomb between
• 4:49
  Speaker 3: Social Security, Medicare, all the so called entitlements.
• 4:54
  Speaker 4: But hey, a.
• 4:56
  Speaker 3: Trillion, here, a trillion, they're pretty soon you're talking about
• 4:58
  Speaker 3: real money.
• 4:59
  Speaker 1: Michael Musk is far smarter than than I won't say
• 5:03
  Speaker 1: you because you are. You could build. You can build
• 5:05
  Speaker 1: a computer with your eyes closed. I mean, I just
• 5:07
  Speaker 1: learned that today. But I just don't see any significant
• 5:12
  Speaker 1: cuts coming. If you don't touch social Security, Medicare and Medicaid,
• 5:14
  Speaker 1: the military, interest, on the debt, it's an illusion. Carry
• 5:18
  Speaker 1: there's nothing there can They can cut the heck out
• 5:21
  Speaker 1: of the government, and I wish they would. It would
• 5:23
  Speaker 1: be wonderful. You can cut spending and the best thing
• 5:25
  Speaker 1: we could do is maybe cut a lot of government waste.
• 5:28
  Speaker 1: I agree, we're one in a court. But if you
• 5:30
  Speaker 1: don't touch those entitlement programs, you're not going to make
• 5:32
  Speaker 1: a significant debt in the in the debt or deficits.
• 5:36
  Speaker 1: Certainly not the debt.
• 5:37
  Speaker 3: The debt.
• 5:38
  Speaker 1: That's a that's a fallacy. We're not you know, Trump
• 5:40
  Speaker 1: did say in his first to Trump one point, oh
• 5:43
  Speaker 1: said he was going to pay off the government debt.
• 5:47
  Speaker 1: Ahaw did that turn out?
• 5:50
  Speaker 3: Yeah, Well, he wasn't really running the government. Then now
• 5:54
  Speaker 3: he's seized effective control. And I think they'll have to
• 5:58
  Speaker 3: touch Social Security. Probably won't happen untill after the mid terms,
• 6:03
  Speaker 3: but they really have no choice. Social Security is the
• 6:06
  Speaker 3: biggie and the medicare not far behind. And you know,
• 6:12
  Speaker 3: and then.
• 6:12
  Speaker 1: The interest, So the interest on our debt is over
• 6:14
  Speaker 1: a trillion dollars. The question. Trump is on record saying
• 6:16
  Speaker 1: he's not touching Social Security and Medicare. He's on record
• 6:19
  Speaker 1: saying that. Now that doesn't mean he won't. He won't
• 6:21
  Speaker 1: change his mind, but he's on record saying he won't
• 6:24
  Speaker 1: touch it. But they have to be touched. We just
• 6:27
  Speaker 1: don't have the money. It's not there, and you just
• 6:29
  Speaker 1: can't print it any longer because we already have an
• 6:32
  Speaker 1: inflation problem that's not going away, and you could. You
• 6:34
  Speaker 1: saw it today in the non farm pailery numbers. You
• 6:37
  Speaker 1: see wages who are up four point one percent and
• 6:39
  Speaker 1: they predicted to be up three point eight percent. Consumer
• 6:42
  Speaker 1: expectations of inflation are still way too high, and the
• 6:45
  Speaker 1: Fed is dithering now, and they say, you know, we're
• 6:48
  Speaker 1: no longer hiking interest rates, we're cutting rates. Remember we
• 6:51
  Speaker 1: cut one hundred basis points from September eighteenth to the
• 6:55
  Speaker 1: end of the year. And now we're still saying the
• 6:59
  Speaker 1: Federal Reserve was saying this, not me, not carry Lutz.
• 7:02
  Speaker 1: We're gonna still have several more cuts cuts in twenty
• 7:05
  Speaker 1: twenty five. I don't know if the long end of
• 7:09
  Speaker 1: the bond market, which is what Scott Besson said he's
• 7:11
  Speaker 1: most concerned about, right, if that doesn't control the long
• 7:15
  Speaker 1: end of the bond market directly. That's a product of
• 7:17
  Speaker 1: inflation and deficits. He says he wants long term rates
• 7:23
  Speaker 1: to fall. I don't see how you get there by
• 7:26
  Speaker 1: just adding to the inflation problem.
• 7:28
  Speaker 3: Yeah, So speaking of nonfarm payrolls and inflation, those measures
• 7:36
  Speaker 3: are done by BLS Bureau of Labor Statistics, which I
• 7:40
  Speaker 3: believe is part of the Commerce Department memory serves me correct.
• 7:44
  Speaker 1: Part Department of Labor, Department of Labor, Party labor. And
• 7:48
  Speaker 1: by the way, if you get rid of the l
• 7:49
  Speaker 1: in the BLS, I think you have a pretty good
• 7:52
  Speaker 1: definition of what we're looking at.
• 7:54
  Speaker 4: Right.
• 7:54
  Speaker 3: So musk through DOGE is trying to gain access, and
• 7:59
  Speaker 3: they've had several lawsuits filed by employees and unions and whatever.
• 8:05
  Speaker 3: But once Goage gets in there, what do you think
• 8:08
  Speaker 3: they're going to find about those two specific measures.
• 8:13
  Speaker 1: Well, I'll tell you one thing. If they find out
• 8:15
  Speaker 1: that the government there's been lying to us? Oh carry,
• 8:18
  Speaker 1: would our government ever lie to us about anything? I
• 8:20
  Speaker 1: mean no, come on, will you give me for even thinking?
• 8:24
  Speaker 1: Forgive me for thinking that. But if we let's just
• 8:27
  Speaker 1: say hypothetically that they were playing some games with the numbers,
• 8:31
  Speaker 1: and I'm not I have no knowledge that they were.
• 8:32
  Speaker 1: I'm just saying hypothetically. And musk uncovers this conspiracy that
• 8:40
  Speaker 1: these birth death models were just way overblown trying to
• 8:44
  Speaker 1: re elect Joe Biden. Uh. You know what, you don't
• 8:48
  Speaker 1: trust government data any longer. And I think that's really
• 8:51
  Speaker 1: going to put a dagger into the bond market and
• 8:54
  Speaker 1: you'll see long term rate spike because if you can't
• 8:56
  Speaker 1: trust what the government is saying about inflation, and you'll
• 8:59
  Speaker 1: wait a second, I thought I was crazy. I go
• 9:02
  Speaker 1: to the store and I'm my inflations, you know, double digits,
• 9:05
  Speaker 1: and they're telling me is coming way down and they
• 9:08
  Speaker 1: don't take into count you know, taxes, they don't take
• 9:12
  Speaker 1: insurance really into account. They don't really count me the
• 9:15
  Speaker 1: value of the house the housing bubble, because they look
• 9:18
  Speaker 1: at owner's equivalent or rents. I mean, what isn't that easier, Carrie,
• 9:23
  Speaker 1: wouldn't it is me easier for them just to count
• 9:26
  Speaker 1: the increase in home prices. We have the case Shower
• 9:29
  Speaker 1: a home price index. Let me just use that as
• 9:32
  Speaker 1: as a proxy for what ome prices are doing instead
• 9:36
  Speaker 1: of as hypothetical, what could I rent my house out
• 9:38
  Speaker 1: here if I had to? You know, it's just ridiculous. Yeah,
• 9:43
  Speaker 1: it's nonsensical. But but they opt, you skate and they lie,
• 9:46
  Speaker 1: and you know the hedonics in the substitution. We all
• 9:50
  Speaker 1: know inflation is much higher than it's stated. But if
• 9:53
  Speaker 1: it was an intentional a lie cover up from the
• 9:59
  Speaker 1: massage data, then they have a real problem.
• 10:02
  Speaker 3: Yeah, and I have a feeling that's going to be
• 10:05
  Speaker 3: based on what we've seen so far. Just today as
• 10:10
  Speaker 3: we're speaking, they got into the HHS computer and instantly
• 10:18
  Speaker 3: found one hundred billion dollars worth of fraud and waste
• 10:23
  Speaker 3: in Medicare and medicaid instantaneously, but until we have a
• 10:28
  Speaker 3: health revolution in this country, which actually might be bad
• 10:33
  Speaker 3: because you'd cut back on Medicare and Medicaid, but then
• 10:37
  Speaker 3: your social security would go through the roof because people
• 10:40
  Speaker 3: would live longer. Right, So, right, that's one way of
• 10:47
  Speaker 3: looking at it.
• 10:48
  Speaker 1: Yeah, we would be a lot healthier if we fixed
• 10:51
  Speaker 1: our problem with what we eat in this country. We
• 10:53
  Speaker 1: have a terribly unhealthy population. And I think our Day
• 10:57
  Speaker 1: Junior has a shot at getting this used. Look, listen,
• 11:00
  Speaker 1: there's some things we can love about Europe, some things
• 11:02
  Speaker 1: we can hate about Europe, but you can't hate their food.
• 11:05
  Speaker 3: And Canada too, Canada too. Canada doesn't allow you know,
• 11:11
  Speaker 3: the fruit loops example, there's eighteen ingredients in it, and
• 11:14
  Speaker 3: like all of them in the US were artificial, all
• 11:17
  Speaker 3: of them in Canada were natural. All the colors, the flavors,
• 11:21
  Speaker 3: all that and breakfast cereal, big agribusiness. It's poison. They're
• 11:27
  Speaker 3: just putting poison into our bloodstreams.
• 11:30
  Speaker 1: Well, you know who the biggest contributor is to the FDA, Right.
• 11:38
  Speaker 3: I can imagine it's a big pharma of one pizer.
• 11:42
  Speaker 4: Perhaps there there you go.
• 11:46
  Speaker 1: Yeah, So where the money, where the money goes? I mean,
• 11:49
  Speaker 1: why should you know, if we had a healthy population,
• 11:53
  Speaker 1: if we stopped all of the negative things that we
• 11:57
  Speaker 1: put in our mouths and our bodies, artificial colors, genetically
• 12:02
  Speaker 1: modified food, and we were a healthier nation, what would
• 12:06
  Speaker 1: that do to First of all, you wouldn't be able
• 12:09
  Speaker 1: to watch you watch TV, and there would be no
• 12:11
  Speaker 1: commercials because every commercial is some kind of pill you
• 12:15
  Speaker 1: could take for this, that or the other, which is
• 12:18
  Speaker 1: a product of what we're eating. You know, now you
• 12:21
  Speaker 1: can inject yourself with these GLP ones and supposedly, hang,
• 12:26
  Speaker 1: I'm losing weight. I'm also losing you know, body mass
• 12:29
  Speaker 1: and muscle. Is that a problem? I don't know. Maybe
• 12:31
  Speaker 1: I'd just better watch what I eat, eat healthy and exercise.
• 12:35
  Speaker 4: Idea, good idea.
• 12:36
  Speaker 1: Yeah, I don't want to get too far off of track.
• 12:38
  Speaker 1: But there's a lot of waste and fraud and abuse,
• 12:40
  Speaker 1: and it doesn't just stop at the shores of the
• 12:42
  Speaker 1: United States. I can guarantee you that. And the gold market, Hey, Gerry,
• 12:46
  Speaker 1: the gold market is sniffing that out.
• 12:49
  Speaker 3: Yes, So what about the gold market. We're at near
• 12:51
  Speaker 3: three thousand dollars gold closed last month twenty seven ninety nine.
• 12:57
  Speaker 3: Now it's getting close to twenty nine hundred. It even
• 13:00
  Speaker 3: silver is starting to go up. Is that the Canary
• 13:03
  Speaker 3: and the gold mine here?
• 13:05
  Speaker 1: Michael, Well, unfortunately I have I've only had about a
• 13:10
  Speaker 1: five percent position in gold. I sold a lot of
• 13:12
  Speaker 1: it not too long ago, towards the end of last year,
• 13:16
  Speaker 1: so I still own it, which is more than most people,
• 13:18
  Speaker 1: and most people don't have any exposure to the precious metal.
• 13:22
  Speaker 1: But there's something going on with the precious metal because
• 13:24
  Speaker 1: it really shouldn't be rallying here, because you know, the
• 13:26
  Speaker 1: gold has been rallying when the dollar goes up and
• 13:29
  Speaker 1: the dollar goes down, when interest rates rise and interests
• 13:33
  Speaker 1: race fall, I mean, it just goes up. And I
• 13:35
  Speaker 1: think what's happening here is that I think a lot
• 13:38
  Speaker 1: of nations are now have stepped up their recycling of
• 13:42
  Speaker 1: their trade surplus into gold, and they know they don't
• 13:44
  Speaker 1: they don't longer want to hold dollars. They're just done
• 13:47
  Speaker 1: with holding dollars. They do not want to buy our
• 13:49
  Speaker 1: bond market. And when you own our bond market, you
• 13:51
  Speaker 1: have to own dollars. So they're just done. They don't
• 13:53
  Speaker 1: want America's hegemony any longer. So I think that that
• 13:56
  Speaker 1: and that was in place before and that is only
• 14:00
  Speaker 1: intensified in the last few months.
• 14:04
  Speaker 4: All right, so that's part of it.
• 14:06
  Speaker 3: What about the Strategic Bitcoin Reserve, you're Michael.
• 14:10
  Speaker 1: Well, yeah, don't get me started. I mean you listen.
• 14:15
  Speaker 1: If you listen to me about bitcoin, you were wrong
• 14:19
  Speaker 1: about Yeah, you could have made a fortune in a
• 14:21
  Speaker 1: lot of these coins. But here's my take, and I'll
• 14:25
  Speaker 1: give you a quick take on cryptocurrencies. They are not
• 14:30
  Speaker 1: digital gold. And the reason why they're not digital gold
• 14:33
  Speaker 1: is because there's a finite, finite amount of au in
• 14:38
  Speaker 1: the Earth's crust. There are an unlimited number of blockchains
• 14:45
  Speaker 1: and coins that could ride along that ledger. Unlimited number
• 14:51
  Speaker 1: carry oh.
• 14:52
  Speaker 4: Sorry it coins, twenty one million.
• 14:54
  Speaker 1: Becomes twenty one million. But and here's in here, and
• 14:57
  Speaker 1: I would love someone to tell me why I am wrong.
• 15:00
  Speaker 1: What is the major difference between Bitcoin and ethereum and
• 15:06
  Speaker 1: Solana and doge coin and fart coin and trump coin
• 15:10
  Speaker 1: and milania coin. They're all coins that ride along a blockchain,
• 15:14
  Speaker 1: a digital ledger. And it's so listen if you told
• 15:19
  Speaker 1: me there's another element that was discovered in the Earth's crust,
• 15:23
  Speaker 1: and this element was virtually indestructible. It lasted forever, and
• 15:28
  Speaker 1: it's in limited supply. It's not gold, but it's another
• 15:32
  Speaker 1: element that serves the same purpose. I need to make
• 15:34
  Speaker 1: beautiful jewelry out of it, and it's wonderful.
• 15:36
  Speaker 4: It's beautiful platinum.
• 15:39
  Speaker 1: If you discovered gold, another element like gold that serves
• 15:44
  Speaker 1: the same utility and functionality as gold, and you could
• 15:47
  Speaker 1: say to me that you can create this in unlimited numbers,
• 15:52
  Speaker 1: these new elements, then I would say, well, even though
• 15:54
  Speaker 1: it's not gold, it's still going to attenuate the value
• 15:57
  Speaker 1: of gold, because there's more elements that do this same
• 16:00
  Speaker 1: thing that's exactly the same function as bitcoin. And I'll
• 16:03
  Speaker 1: give you one more reason why I hate cryptocurrencies, even
• 16:06
  Speaker 1: though I've been dead wrong about them. Cryptocurrencies in a
• 16:11
  Speaker 1: pure sense are decentralized ledgers. Okay, decentralized means that Wolfstree
• 16:19
  Speaker 1: doesn't have their dirty, grimy fingers all over them, and
• 16:23
  Speaker 1: that's exactly what's happening. So the price of bitcoin is
• 16:27
  Speaker 1: where it is today, close to one hundred thousand dollars
• 16:29
  Speaker 1: a unit, because wol Street has their grimy hands all
• 16:33
  Speaker 1: in there. If there wasn't anything called a bitcoin ETF,
• 16:37
  Speaker 1: what do you think about value a bitcoin would be,
• 16:39
  Speaker 1: it'd be a whole heck of a lower and the
• 16:42
  Speaker 1: thing that gives bitcoin its value, and it does have
• 16:44
  Speaker 1: some value, but it's limited, in my mind, is because
• 16:47
  Speaker 1: they are decentralized, immutable and anonymous transactions. But once Wall
• 16:55
  Speaker 1: Street gets their hands on it, it's not immutable, you're
• 16:58
  Speaker 1: not anonymous, and it's not decentralized any longer because they
• 17:04
  Speaker 1: can say, oh, carry Lutz, you own bitcoin in this CTAF. Well,
• 17:08
  Speaker 1: guess what I am the government. I'm taking your money
• 17:11
  Speaker 1: from you and you don't have it anymore. But that's
• 17:13
  Speaker 1: why I own bitcoin in the first point. So it's
• 17:15
  Speaker 1: it's just antithetical to the whole creation of cryptocurrencies. So
• 17:20
  Speaker 1: I've given you a short treatise on cryptocurrencies because they
• 17:23
  Speaker 1: are not digital goal, they are not limited in value.
• 17:27
  Speaker 1: There's an unlimited number, unlimited supply, there's an unlimited number
• 17:32
  Speaker 1: of supplies of blockchains that make created. They are not
• 17:35
  Speaker 1: limited in nature, and they are worth less.
• 17:39
  Speaker 3: I would just point out that this is the greatest
• 17:43
  Speaker 3: gold rush ever for Wall Street cryptos because there's no
• 17:47
  Speaker 3: due diligence involved, there's no production, you don't have to
• 17:52
  Speaker 3: analyze the company you just create ETFs, you create options futures,
• 17:57
  Speaker 3: then you go out and prop trade and make a fortune.
• 18:02
  Speaker 4: My theory is Sam bankmin freed.
• 18:04
  Speaker 3: He ran a leaky ship, but they had to get
• 18:08
  Speaker 3: rid of him in order to take over Crypto FPX.
• 18:13
  Speaker 3: They had to eliminate him. And because he was a
• 18:16
  Speaker 3: bad bookkeeper, it wasn't necessarily a thief. You can't point
• 18:20
  Speaker 3: to this guy where he stole the money and put
• 18:22
  Speaker 3: it in his account. He just didn't put stuff in
• 18:25
  Speaker 3: the right buckets. Now, granted you're a lawyer, you do that,
• 18:29
  Speaker 3: they'll throw you in jail. And he's in jail now.
• 18:33
  Speaker 3: But I would advise everybody to look up the law
• 18:36
  Speaker 3: firm that forced the whole bankruptcy and look up their
• 18:41
  Speaker 3: deep state past. It's the point where that law firm
• 18:45
  Speaker 3: has actually had books written about them that they bought
• 18:47
  Speaker 3: up the first edition and stop the printing. And Michael,
• 18:54
  Speaker 3: let's not forget the creditors. Now you know bankruptcies, the
• 18:57
  Speaker 3: creditors got paid one hundred and twenty cents on the dollar.
• 19:01
  Speaker 3: After all the grift from the trustee and from that
• 19:06
  Speaker 3: law firm hundreds and hundreds of millions, maybe billions of
• 19:09
  Speaker 3: dollars of grift. We don't even know the consultants. You know,
• 19:13
  Speaker 3: it's a club. The bankruptcy court is a clubhouse. And
• 19:17
  Speaker 3: just like George Carlin said, it's all a big club
• 19:20
  Speaker 3: and you aren't in it.
• 19:21
  Speaker 4: Yeah.
• 19:22
  Speaker 1: Well when he said some of the dollar does sound
• 19:24
  Speaker 1: a bit rich when you're in chapter eleven, so.
• 19:27
  Speaker 3: Yeah, well they said, well the stuff wine up in value. No,
• 19:30
  Speaker 3: this guy was a genius. It's like if you had
• 19:33
  Speaker 3: Musk running the accounts, the accounting system of Tesla, he'd
• 19:38
  Speaker 3: wind up in jail. He can't do it. That's not
• 19:41
  Speaker 3: his yard house. He could build a system for you
• 19:43
  Speaker 3: to manage it, but he couldn't effectively run it day
• 19:46
  Speaker 3: to day. It's not in the guy's wheelhouse. This is
• 19:49
  Speaker 3: what Sam bankmin Free did. And when nobody loses money,
• 19:55
  Speaker 3: how are you a criminal?
• 19:57
  Speaker 4: Yeah?
• 19:58
  Speaker 1: Well, just before we run out of time, I want
• 20:01
  Speaker 1: to talk about that, and I love your opinion on
• 20:04
  Speaker 1: this carry, So let's talk about the Trump's tax cuts.
• 20:06
  Speaker 1: You know, everybody's what Wall Street has right now is
• 20:10
  Speaker 1: they're facing the tariffs. And Trump said that there's nothing,
• 20:15
  Speaker 1: there's nothing you can stop the twenty five percent tariffs
• 20:18
  Speaker 1: going on Canada and New Mexico. Nothing. He said that
• 20:22
  Speaker 1: on Friday, and then Saturday is supposed to go in effect.
• 20:25
  Speaker 1: And then of course.
• 20:27
  Speaker 4: Magic there's a day is thirty.
• 20:29
  Speaker 1: You know that they punted the ball for thirty days.
• 20:32
  Speaker 1: But these tariffs I think are necessary because if you're
• 20:35
  Speaker 1: going to now let's just talk about the extension of
• 20:39
  Speaker 1: the Trump's tax cuts. The extension of the Trump tax
• 20:42
  Speaker 1: cuts are supposed to cost about four and a half
• 20:44
  Speaker 1: trillion dollars over the ten year horizon, and that's what
• 20:47
  Speaker 1: OMB scores Office of Magical Budgement budget. I don't think
• 20:51
  Speaker 1: tax cuts really cost you anything because you're going to
• 20:53
  Speaker 1: get a lot of growth. But maybe they do cost
• 20:55
  Speaker 1: you a little bit, but it's not going to be
• 20:56
  Speaker 1: four and a half trillion. But you have to you
• 20:58
  Speaker 1: have to raise some revenue, because is if you do
• 21:00
  Speaker 1: this thing through reconciliation. That's I think this bill, this
• 21:04
  Speaker 1: big grand bill, is going to be done with the
• 21:06
  Speaker 1: reconsill It can't it can't add to the deficit. So
• 21:10
  Speaker 1: he's gonna need tariffs, and he's going to need huge tariffs.
• 21:13
  Speaker 1: But then I also heard that tariffs can't be used
• 21:15
  Speaker 1: as part of the reconciliation process. I don't know where
• 21:19
  Speaker 1: he's going to get four and a half trillion dollars
• 21:21
  Speaker 1: of new income, new revenue or in tax custs. I
• 21:25
  Speaker 1: don't know where he's going to get it from. But
• 21:28
  Speaker 1: I don't think. And and here's the thing. Even if
• 21:31
  Speaker 1: he does get this through, and I hope he does, Trump,
• 21:35
  Speaker 1: you're just extending the existing law. You're not giving any
• 21:38
  Speaker 1: new impetus of lower taxes to Wall Street and to
• 21:43
  Speaker 1: the corporations. It's it's somebody the same rate. So I
• 21:47
  Speaker 1: think people are underestimating, or I should say, overestimating, how
• 21:52
  Speaker 1: wonderful this big package is going to be. Unless he's
• 21:54
  Speaker 1: going to extend the tax cuts even to greater degrees,
• 21:58
  Speaker 1: like no taxes on tips and no taxes on Social
• 22:01
  Speaker 1: Security and all that stuff. And then you're going to
• 22:03
  Speaker 1: brow a massive hole in the budget. He just said,
• 22:06
  Speaker 1: Trump and bessn't the new Treasury, respectively, that they're worried
• 22:09
  Speaker 1: about long term interest rates they want them to come down.
• 22:12
  Speaker 1: You blow another big hole in this deficit, which is
• 22:14
  Speaker 1: already two trillion dollars plus plus a trillion dollars in interests.
• 22:18
  Speaker 1: I mean, you're going to have a huge problem in
• 22:19
  Speaker 1: the long end of the bond market, and those are
• 22:22
  Speaker 1: one you know, that's a lot of what I'm talking
• 22:23
  Speaker 1: about about this air going into this balloon spiking long
• 22:28
  Speaker 1: term race would cut off that supply of hot air
• 22:31
  Speaker 1: very quickly.
• 22:32
  Speaker 4: So a few things on that.
• 22:34
  Speaker 3: Right now, we have an effective do you know what
• 22:37
  Speaker 3: our effective tariff rate is on the import tariff rate?
• 22:41
  Speaker 1: Yeah, effective tarraf Right now.
• 22:43
  Speaker 3: We bring an eighty billion a year in tariffs, which
• 22:47
  Speaker 3: is the equivalent of two percent. Now, some things have more,
• 22:50
  Speaker 3: some things have less, like shoes are like could be
• 22:53
  Speaker 3: fifteen percent, and you know, but most things the effective
• 22:58
  Speaker 3: rates two percent. So if ten percent, that's uh, that's
• 23:05
  Speaker 3: going to be what is that going to be? Ten percent?
• 23:08
  Speaker 3: Five times four hundred billion, twenty percent eight hundred billion.
• 23:13
  Speaker 3: All right, So I think long term you got to
• 23:18
  Speaker 3: look at a national consumption tax sales TEX.
• 23:22
  Speaker 4: Yeah.
• 23:22
  Speaker 1: Also on for that. First of all, let me just
• 23:25
  Speaker 1: add that if you put twenty five percent taris on
• 23:29
  Speaker 1: Mexico and Canada, you know you're not going to collect
• 23:32
  Speaker 1: twenty five percent. That's not how it works. Because the
• 23:35
  Speaker 1: the exporting country could cut their prices, they can reduce
• 23:39
  Speaker 1: the value of their currency.
• 23:41
  Speaker 3: The there's other sorry, they already have you do.
• 23:47
  Speaker 1: Yeah, so you're not going to get you're not going
• 23:49
  Speaker 1: to get You are not going to get the exact
• 23:52
  Speaker 1: number at all, not even close to the tariff that
• 23:54
  Speaker 1: you put on your imports.
• 23:56
  Speaker 3: Just laying that out there. Yeah, no question that is true.
• 24:00
  Speaker 3: But a ten percent tariff, nobody's going to blink about it.
• 24:03
  Speaker 3: Four hundred billion. There's another thing, like, there's a thing
• 24:07
  Speaker 3: called dominimous importation where they just mail stuff in first
• 24:12
  Speaker 3: class from China and other countries and they just say
• 24:17
  Speaker 3: it's dominimous, so no tariff ever gets levied against it.
• 24:21
  Speaker 3: It's a big scam and Trumpets stopped that for a
• 24:25
  Speaker 3: couple of days. They were freaking out in China over this.
• 24:29
  Speaker 3: Now he's kept it going. But they're going to eliminate that.
• 24:33
  Speaker 3: You know, there's a lot of things that should be
• 24:36
  Speaker 3: collecting tariff that don't, and so tariff's part of it,
• 24:41
  Speaker 3: National sales tax, get rid of the irs. The money's
• 24:44
  Speaker 3: got to come from someplace. We can't get it from
• 24:47
  Speaker 3: tariffs alone because we do four trillion a year in
• 24:50
  Speaker 3: imports and what are you going to do one hundred percent?
• 24:53
  Speaker 3: So we bring in four trillion in revenue. It can't
• 24:56
  Speaker 3: be done.
• 24:57
  Speaker 1: It's just an app No, I'm all for you consumption taxes.
• 25:01
  Speaker 1: I've always espoused a consumption tax, and it's it's very progressive.
• 25:04
  Speaker 1: The more money you spend, the more money you pay taxes,
• 25:08
  Speaker 1: and that you I would exempt certain things like a
• 25:10
  Speaker 1: food and clothing rug. But if you know you can,
• 25:14
  Speaker 1: you can make it so that it's extremely beneficial for
• 25:18
  Speaker 1: the country. Consumption tax concourages the savings, encourages investment and
• 25:23
  Speaker 1: encourages productivity. So that's that's the healthiest thing we can do.
• 25:27
  Speaker 1: And just get rid of the entire irs. But welcome,
• 25:31
  Speaker 1: can we get back from dream lamb. This is a
• 25:34
  Speaker 1: quick sotic conversation because it's just never going to happen.
• 25:37
  Speaker 3: No, no, no, But but that is the way to
• 25:40
  Speaker 3: do it. But a flat tax also would kind of
• 25:45
  Speaker 3: amount to the same thing as a sales tax, just
• 25:49
  Speaker 3: it's on income instead of expenditures. And you know, let's
• 25:53
  Speaker 3: not forget a sales tax would encourage savings because you know,
• 25:58
  Speaker 3: you're not getting taxed on your safe savings, you're not
• 26:00
  Speaker 3: getting tax on your investment income. It would lead to
• 26:03
  Speaker 3: a boom in this country, and you know, the ability
• 26:07
  Speaker 3: to get rid of our system flat tax has got
• 26:11
  Speaker 3: to be the way to do it. But again, you know,
• 26:14
  Speaker 3: it's politically not feasible because why should I be paying
• 26:18
  Speaker 3: the same amount as a percentage of my income is
• 26:21
  Speaker 3: Elon Musk. The difference is Elon Musk has the option
• 26:24
  Speaker 3: of paying nothing.
• 26:26
  Speaker 4: You don't. That's the difference.
• 26:29
  Speaker 1: There's also a lot of accountants I think would have
• 26:31
  Speaker 1: a problem with the and lawyers.
• 26:34
  Speaker 3: Lawyers. Yeah, so you're giving me reasons why I shouldn't
• 26:38
  Speaker 3: like it. As a recovering attorney here, I think nothing,
• 26:43
  Speaker 3: nothing could be greater than over a profession that hasn't
• 26:47
  Speaker 3: hesitated to screw over the public. I yes, Trump, who's
• 26:52
  Speaker 3: the biggest lobby in Washington, the most powerful. You know
• 26:55
  Speaker 3: what he said, Lawyers think about it?
• 26:59
  Speaker 1: Yep, I said, it's a quick sot of conversation. It's
• 27:01
  Speaker 1: just not going to happen.
• 27:03
  Speaker 3: Yeah, but if you can embarrass them enough. And I
• 27:06
  Speaker 3: do think there's the potential for a trillion dollars worth
• 27:10
  Speaker 3: of savings in the budget to you know, get.
• 27:13
  Speaker 4: Out rid of crap. We haven't even department yet.
• 27:17
  Speaker 1: Michael, Well, here's one. Here's the one. Hope that we have.
• 27:20
  Speaker 1: Trump does not have to run again, and he can't
• 27:23
  Speaker 1: run again unless he changes the constitution. Oh, he's going
• 27:27
  Speaker 1: to have a scorched earth policy behind. He will make
• 27:30
  Speaker 1: as many changes as he has to to get this
• 27:32
  Speaker 1: country right. So, like I said, I'm a supportive of him.
• 27:35
  Speaker 1: I don't think he's superman. I don't think he's infallible.
• 27:39
  Speaker 1: He's made a lot of mistakes in his life personally
• 27:41
  Speaker 1: and in business. But he's our best shot that we have.
• 27:45
  Speaker 3: I think what happens when they go into the voter
• 27:47
  Speaker 3: databases in all these states with AI, just like they're
• 27:51
  Speaker 3: doing with the budget. I mean, it's all going to happen.
• 27:55
  Speaker 3: I think every state will will be forced to implement DOGE.
• 28:01
  Speaker 3: Several of them have states Now. I think the federal
• 28:04
  Speaker 3: government will just say, look, if you're spending five hundred
• 28:09
  Speaker 3: million or a billion a year or more and you're
• 28:13
  Speaker 3: taking any federal if you take one federal cent, then
• 28:16
  Speaker 3: you've got to put in a DOGE and have a
• 28:19
  Speaker 3: procedure for appointing them. And we're off to the races.
• 28:23
  Speaker 3: Because what we're seeing here multiply times fifty seven. Right,
• 28:28
  Speaker 3: we have fifty seven states according to Obama. I think
• 28:31
  Speaker 3: he said one time, and all these authorities, counties, city, states,
• 28:37
  Speaker 3: it's all a big grift here, Michael.
• 28:40
  Speaker 1: Yes, Well we could have Canada as our fifty first date, right, well,
• 28:47
  Speaker 1: you know, maybe even and maybe Palestine will be fifty two.
• 28:49
  Speaker 3: So it could be you'll be vacationing on the Gospel strip?
• 28:54
  Speaker 1: Who did this review this? I think the president has
• 28:59
  Speaker 1: been in power for or just a few.
• 29:01
  Speaker 3: Weeks, almost three weeks on Monday.
• 29:04
  Speaker 1: I mean just a few weeks, and it's a we're
• 29:06
  Speaker 1: just getting started. This has not even been a month.
• 29:09
  Speaker 1: Carry And if you're in that sixty forty buy and
• 29:12
  Speaker 1: whold you know, dollar cost average portfolio, I think you're
• 29:16
  Speaker 1: in a world of hurt. And that's that's just a fact.
• 29:21
  Speaker 1: You know, when we have when the recession does hit,
• 29:23
  Speaker 1: and we're going to have a recession, we have not
• 29:25
  Speaker 1: abrogated the laws of economics and the business cycle. I
• 29:28
  Speaker 1: can guarantee you that it's going to be brutal because
• 29:32
  Speaker 1: we have those triumvirta bubbles and if you don't have
• 29:35
  Speaker 1: an active money manager that can get you out of
• 29:37
  Speaker 1: harm's way and gets you into some protection. So that's
• 29:40
  Speaker 1: usually short term treasuries, You're going to have to have
• 29:44
  Speaker 1: some cash, the dollar could increase in value, and you
• 29:48
  Speaker 1: have to be able to adroitly short the market. If
• 29:51
  Speaker 1: you do those four things, you are going to turn
• 29:53
  Speaker 1: it what I believe is going to be the biggest
• 29:55
  Speaker 1: disaster what we've seen since the Great Depression, into something
• 29:58
  Speaker 1: that can really not only protect you, but enhance your
• 30:03
  Speaker 1: retirement lifestyle. And that's what that's what my me and
• 30:05
  Speaker 1: my firm are debit dedicated to.
• 30:08
  Speaker 4: Couldn't agree with you more. And if you look at the.
• 30:12
  Speaker 3: Great Depression, more millionaires were created then than any other
• 30:16
  Speaker 3: time in history. And yes, the business cycle hasn't been repealed,
• 30:21
  Speaker 3: not even by Trump, not even by Elon Musk. And
• 30:27
  Speaker 3: you know, some thing's never change, all right. So pentoport
• 30:30
  Speaker 3: dot com is the place to find Michael And if
• 30:33
  Speaker 3: you've got a question or comment, shoot me an email
• 30:35
  Speaker 3: kl F Carrie lets dot com and you'll find a
• 30:41
  Speaker 3: link to michael site. The show notes this interview on
• 30:43
  Speaker 3: Financial Survival Network dot com. While you're there, we just
• 30:47
  Speaker 3: ask that you sign up for your free newsletter, like
• 30:50
  Speaker 3: over seventy thousand FSN community members have in the past. Michael, Hey,
• 30:55
  Speaker 3: great catching up with you amazing interesting times. We'll talk
• 30:59
  Speaker 3: to you soon.
• 31:00
  Speaker 1: I can't wait.
• 31:01
  Speaker 2: Kerry, thank you, thanks for listening to Carrie Letz's Financial
• 31:04
  Speaker 2: Survival Network, your solution to today's trying times. For the latest,
• 31:10
  Speaker 2: go to Financial Survivalnetwork dot com. Financial Survival Network now
• 31:15
  Speaker 2: more than ever,