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Claim Your Free 'Revenue Sourcing' Retirement Planning Book -- Dennis Tubbergen #6017 · Financial Survival Network

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I think if I am listening to this and I'm someone is aspiring to a
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comfortable, stress free retirement, I'm going to ask myself what assets do I
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have in my portfolio that do not have counterparty risk? And what assets do
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I have in my portfolio that they can't print? I think those are two
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very important questions. You are listening to Carrie Letz's Financial Survival Network, where
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you get valuable information you just can't find anywhere else to thrive in today's trying
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times. You need the Financial Survival Network now more than ever. Go to
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Financial Survivalnetwork dot com and get your free newsletter and gift. Financial Survival Network
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now more than ever, And welcome you are listening to and watching the Financial
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Survival Network. I'm her host, Carrie Letz. Hey, we're just in
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the first week of March. So much is happening on the economic front,
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so much that gets over looked. We're seeing gold, bitcoin hitting record highs.
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We're seeing deficits as far as the eye can see, multi trillion dollar
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deficits per year. Where is it all going to end? Is this sustainable?
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Can it continue? What about real estate? Where are the real estate
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markets heading? Dennis to Bergen is with us, now well known financial expert,
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author and radio guy as well. Dennis. Great to have you back
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on the show. Hey, how have you been here? I've been great.
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Always a pleasure to chat with you, both on and off the official
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recording, So appreciate being with you. Hey. Well, we're at that
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special point in life, you and I where we get to sit back a
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little bit, take it easy and enjoy the fruits of our labor, and
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we get a front row seat on the financial insanity and geopolitical craziness that's taking
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place here. And look, we live in a connected world. Everything is
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connected. You know, if the butterfly flaps its wings down in South America,
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then you're going to get a hurricane in Florida. You know, everything's
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interconnected. As far as economy, deficit, inflation, all these good things,
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they're all connected here. What are you seeing? Well, I think
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the first word that comes to mind, Kerry, when you start looking at
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some of the economic data that's being reported and has been reported, is artificial.
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You know, just to give an example, fourth quarter GDP increase three
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hundred and forty three billion dollars according to the latest revision. That sounds like
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great news. But at the same time, when you look at US government
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data, that was up eight hundred and forty three billion, And as I'm
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sure many of our viewers' listeners are aware, when you calculate gross domestic product,
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government spending is part of that. So what where is the economy really
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without this deficit spending that is on track for probably two trillion dollars this year,
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would be my guest. That's before an election year giveaway, which I
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would also expect. So you know, we have artificial growth in GDP.
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I think the real economy is contracting, and I think, you know,
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if the government was forced to operate with a balanced budget, we would be
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in a severe recession at this point. And you know, I'm not convinced
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we're not there. So so Dennis, you know, like when Bernie Madeoff
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was booming, when business was booming, he was a positive contributor to the
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to the GDP numbers, right, and then when he blew up, he
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was a negative contributor to the GDP numbers. I mean, it's all just
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a Podzi scheme, isn't it. Well, yeah, it really is.
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And you know, I just did a piece on on my radio show that
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asked, is this growth or is it gash flow? I mean, if
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I make one hundred thousand dollars a year, that's my personal GDP. If
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I go borrow another one hundred thousand dollars, my cash flow looks great.
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But did my personal GDP just go to two hundred thousand or did I just
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increase my cash flow by one hundred thousand at the expense of my future GDP?
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And that's exactly what we have here as a Ponzi scheme. And Ponzi
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schemes, you know, by their very nature, eventually explode. They implode,
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I should say, because you've got to find new people to lend us
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money, and then that well will run dry. Hey, could you imagine
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if Bernie Madoff had access to a printing press, it'd still be at it.
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Yeah, and undoubtedly making big political contributions with the printing press proceeds,
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that's for sure. Hey. So interest rates, you know, they stabilized
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a bit, then they went down a little bit, then they went back
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up a bit. But long term they've got to go up, don't they.
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Well, I think so. I mean, if if you take a
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look at the level of that the US government has, I run an amazing
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statistic. Care I guess I knew it, but not necessarily haven't really put
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in these terms. US government debt increases at trillion dollars every hundred days.
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When you think about it, that's unfathomable. Now, when you think about
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every hundred days at five percent interest, having to finance another trillion dollars,
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that's fifty billion dollars gets added to to just servicing the debt, the new
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debt every hundred days. So over the course of a year, that's one
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hundred and fifty billion dollars. And you know, we've got a snowball rolling
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downhill, and you know, the bigger it gets, the bigger it gets.
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So at some point this has to blow up. Yeah, I would
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think the only surprise to me, quite frankly, Dennis, is that it's
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taken as long as it has. Well, Carrie, if I were to
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have guess timing, I would have been wrong several times in the past as
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well. I mean, I just don't. It's just hard to fathom the
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fact that no, I think interest costs on the US government debt are and
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access of a trillion dollars a year. To put that in perspective, for
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our listeners. Social Security I think, by the latest report was underfunded by
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sixty one trillion dollars and the annual outlay for Social Security is only one point
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three five trillion, So interest on the debt is very closely approaching what the
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entire outlay for Social Security is. That is a crazy, crazy number.
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Yeah, that is that is insane, And especially since I started collecting it
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recently, maybe I should just do full retirement and get the most I can
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because this thing's going to blow up. Or do I wait till I'm seventy.
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I mean, that's a question I have, Dennis and many of you
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out there have that question. Do you early retire at sixty two if you
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can do it, if you have no income or you then you might need
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to, Or do you do it at your full retirement age, which right
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now is I thinks to sixty seven. What are you supposed to do here?
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Well, I mean it's a great question. I think ultimately depends on
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what the policy response is under normal circumstances. I mean, I've looked at
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Social Security. I'm not old enough to collect it yet, I have age
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seventy in my sites. Ultimately, if the federal government continues to operate with
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these huge deficits, which it appears, as you said, at the outset,
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it appears this is going to be the policy for as far as the
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eye can see that's the case. Then I think you've got to have the
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FED go back and become the lender of last resort. Christopher Waller, the
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FED governor, last week, just kind of dropped a quiet bombshell saying,
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Hey, the FED has to get rid of more mortgage backed securities, and
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what we need to do is add more short term US treasuries to our portfolio.
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I found that was interesting given that this emergency bank lending program that was
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put in place a year ago expires March eleven, so now all these emergency
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funds are going to dry up. And the timing was quite interesting that the
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FED now says we need to add to our short term US treasury holdings.
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So yeah, you know, I think the FED has not quit creating currency.
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They can't go back and use the term quantitative easing because it would,
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but I think essentially that that's what's going to happen. So I believe social
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Security to get back to that point. I think you're going to collect your
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benefits. I just think they're going to buy a lot less than they do
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today. And given this policy, I don't see how we avoid a highly
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or hyper inflationary outcome. Yeah, well, arguably in places like New York
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they're already having it. So not to get into the political thing about you
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know, the former president or the current occupant of the White House, because
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this is a family show after all, right, but when you look at
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like the truckers strike there, boycott of New York City, and I don't
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know, you know, you can't believe the media because they lie about everything,
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but it certainly appears something's happening in New York. They're already close to
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hyperinflation. The taxes are out of control. They just put a congestion tax.
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You drive into the city, get taxed. Where does New York City
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wind up in all this? You know, there is it's you know,
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we were talking about this. It's interesting how the red states are getting redder
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and more populated, the blue states seem to be getting bluer and less populated.
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So I think that tells you, you know, where the American people
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are. So where does New York end up? You know, I think
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the situation just gets worse. But you know, the truckers are a great
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example. Hey, you can't do what you did to President Trump. You
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know, love Trump or height Trump. Trump's got a rabbit following, and
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they're standing up and saying, look, it's time we do something. And
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I think you're seeing more and more of that personally. I think that that's
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what's going to take. I mean to quote another news item. I thought
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it was interesting the new president of Argentina balanced the budget and had a surplus
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nine weeks after entering office. I think we need an Argentina moment, And
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as painful as that would be, it's going to be a lot less painful
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than, you know, enduring this hyper inflationary outcome that I think is inevitable
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if we continue on this bat Yeah, well, it's certainly economic collapse on
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the horizon. Then. I'm sure you've been watching gold as we're speaking.
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Gold is up seventeen dollars the ounce today on the spot market at twenty one
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forty four, all time record highs. It doesn't look like anything is standing
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in its way of making more eyes, does it. Yeah, I mean
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I looked at it before we started this interview. It actually hit twenty one
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to fifty five. So I evidently just pulled back a little bit. And
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bitcoin also all time new highs Bitcoin at about sixty six thousand, So what
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does that tell you about people looking for alternatives to the US dollar? And
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you know another interesting story. You've got a lot of insider selling going on
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in the US stock market. You've got Bezos selling I think four billion dollars
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of Amazon stock. You've got Jamie Diamond I think for the first time ever,
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unloading some of JP Morgan Chase stock. You've got Zuckerberg selling stock.
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So are they concerned about the stock market or are they diversifying out of US
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dollars? I don't know the answer to that. They don't talk to me.
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But given what you see happening with gold and bitcoin, I think it's
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a fair question. I think it's a very fair question, and I'd like
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to know the answer to it. Honestly, something is afoot and we've got
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all these awful geopolitical trends taking place. All of this is happening here before
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our very eyes, and you know, you got to wonder, is there
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a trend? Is there something happening here that we're not seeing well? And
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you know, there's there's just crazy headlines. You know. You may remember
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back in the day. You know, when I was twenty years old,
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I didn't have the money to afford a nice car, but I want to
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have a nice car because girls like nice cars. And I would go through
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and peruse they use car ads and they would say, take over payment for
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this car. People got themselves upside down in cars and they always wanted somebody
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to relieve the burden. Well, now you're seeing office buildings presently being sold
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the same way. The Canadian Pension Plan Investment Board recently sold their interest in
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a Manhattan office tower development. You probably saw it for one dollar. Just
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take over payments. What does that tell you about some obviously they must be
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pretty savvy, astute people running a pension fond and they say, you know
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what, take over payments. We just want out. Well, what does
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that tell you about the future fear of commercial real estate? You know that
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we've got so much debt on the on the public balance sheets, so much
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debt in the private sector, that we're going to have to have some type
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of a forced debt jubilee because this not all this debt can be paid.
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And I think these are symptoms that were now maybe seeing the beginning of that
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worst jubilee process. I think you're right, And what choice to really have
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other than a jubilee, Dennis Well, I mean, the math is the
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math. So I'm reminded. I live in Michigan. I'm reminded of when
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the city of Detroit declared bankruptcy and I interviewed people on my radio show that
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we're debating whether or not federal law would supersede state law or state law would
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supersede pit Remember, well, yeah, so it's like, who's going to
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get paid. Well, maybe I'm not the smartest guy in the world carry,
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but I happen to know if there's no money in the checkbook, somebody's
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not going to get paid. And that's really where we are. So there's
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too much debt to be paid. We know it won't be paid. So
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that is deflationary in nature, and the federal reserves response to government debt has
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been creating currency. So you know, I'm looking for a stagflationary environment.
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I think we're going to see a decline in the value of things we own
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for the most part, with probably you know, gold, silver and those
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types of things being the exception maybe some types of real estate. And I
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think we're going to see more inflation in the consumer items that we have to
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buy. Yeah. Well, hey, even if the inflation rate goes down
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to two or three percent, it's still twenty percent higher than it was a
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few years ago. So you're still paying twenty percent more. And you know,
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the middle class in these cases, Dennis always playing catchup, right,
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Yeah, I mean when you look at the statistics. I recently read a
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report. It read more like propaganda to me, but I'll call it a
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report, imagine. And it said that, you know, despite inflation,
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wages have kept pace with inflation. Well that's it to use the official inflation
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rate as measured by the consumer price Index. But you and I both know
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that is a completely bogus, completely manipulated number. You know, there's hedonic
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adjustments, there's substitution adjustments, there's waiting adjustments, and you know, bureaucrats
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can change the waitings, change the substitutions to arrive at whatever number really they
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want to arrive at. And the bottom line is when you've got sixty seven
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percent of Americans living paycheck to paycheck, I think was the last number that
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I saw and personal debt in every category, credit card debt, auto debt,
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mortgage debt all up in the fourth quarter. You know what people are
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doing to make ends meet, They're adding to debt, and that is not
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a sustainable situation. And that's where I think you're starting to see a lot
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of these signs that we're getting close to this moment of reckoning. All right,
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so then every like the old Chinese character for crisis, danger and opportunity,
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we're in a dangerous time period. Now where are the opportunities? Well,
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I am a big fan of precious metals at this point. I think
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gold and silver both have a lot of upside. I recently interviewed John Rabino,
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who wrote a book with James Turk eleven twelve years ago called The Money
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Bubble, What to Do Before It Pops. It was really a prophecy,
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but John just was talking about the fact that here, here's the way that
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sober quickly gets to over one hundred dollars an hour, and said it had
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to do with not only my monetary policy, but really industrial demand versus mining
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output. There's a lot more industrial demand now than there is mining output.
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And if you look at gold, I look at the last two Gold Bowl
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markets, and we see seven to eight hundred percent as being the top to
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bottom movement. This started at just call it a little over a thousand.
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We're now I had about two thousands, So I think you'll see gold go
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to seven or eight thousand dollars if it only does what it did in past
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Bowl markets. I would argue the current situation is more extreme, and you
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might see a guy like Jim Rickards who said fifteen thousand. You know that
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that wouldn't surprise me either. So I think if I am listening to this
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and I'm someone is aspiring to a comfortable, stress free retirement, I'm going
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to ask myself what assets do I have in my portfolio that do not have
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counterparty risk? And what assets do I have in my portfolio that they can't
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print. I think those are two very important questions, and maybe that they
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can't steal when things get really desperate, because governments have been known to confiscate
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wealth. I mean when things get really bad. It's happening in China right
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now as we speak, and that's the eight hundred pound gorilla. As bad
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as a it is in the United States, we do have a record two
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hundred years of dealing with financial crises and maybe this is the worst one ever,
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but the country has actually dealt with it, has a structure in place
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to deal with these crises. Maybe we don't like the way they deal with
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them, but the show goes on. In China, it's kind of like
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they only learned how to drive, you know, ten to fifteen years ago,
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worst drivers on the planet because they just don't have the knowledge base.
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And it's the same with their economy. They have no idea what to do.
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They had the largest asset bubble asset class in the world, which was
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a real estate sixty trillion dollar asset that's now worth probably about nine trillion.
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But it's the Emperor has no clothes. Nobody wants to admit that. The
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you know, Warren Buffett, you don't know who's skinny dipping until the tide
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goes out, right. Well yeah, and you know, speaking of China,
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I mean you could recognize this bubble. I want to say it's eight
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or nine years ago. Well, yeah, we know they're building. They're
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building cities, nobody lives in, factories, nobody works in and they're passing
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laws. They say if you're a family you can only own two pieces of
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real estate. And there was this cottage industry in China that popped up that
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would give you and your spouse a fake divorce certificates you could buy four pieces
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of real estate instead of two. That is absolute lunacy. Is it's borderline
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psychotic, and yet that tells you you win up. That's bubble behavior that
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happens. But every bubble. Hey, you know, like this could be
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a good TV show where the couple gets divorced and they buy real estate and
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then the wife said, we didn't really meet it. The husband said,
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yes we did. Goodbye, any leaves and the moves to the US.
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But hey, we got to wrap up now. But your top three picks
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for twenty twenty four Top three picks investment wise, Yes, I'll say number
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one, Silver, number two Gold, number three agricultural real estate. Love
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it all right, Dennis, Just tell us where we find you, how
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do we get your book, and how we connect with you on the web.
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You can go to Revenue sourcingbook dot com. My best selling book from
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twenty twenty has been revamped rewritten for twenty twenty four. If you go to
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Revenue sourcingbook dot com, be glad to send you a copy. You can
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also check out my podcast on any place there's podcast, Spotify, Apple right
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any place there are retirement lifestyle advocates radio. All right, very cool.
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Thanks so much for coming by, Dennis. We'll talk to you again real
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soon. Be will enjoyed it. Carrie, thank you so much. Thanks
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for listening to Carrie Letz's Financial Survival Network, your solution to today's trying times.
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For the latest, go to Financial Survivalnetwork dot com. Financial Survival Network
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