1 00:00:00,080 --> 00:00:02,839 All right, and now we're going to end with the lead, which is 2 00:00:03,200 --> 00:00:08,519 a no no in journalism. Right, is Elon Musk the most powerful person 3 00:00:08,640 --> 00:00:12,279 on Earth? And let's just look at what's going on article today. The 4 00:00:12,359 --> 00:00:18,199 guy basically owns space all right. Half of the satellites floating around up there, 5 00:00:18,440 --> 00:00:22,079 we're put up there by Musk. Well, actually I should say I 6 00:00:22,079 --> 00:00:27,399 should rephrase that half of the satellites floating around are owned by Musk, by 7 00:00:27,440 --> 00:00:32,200 SpaceX. A lot of the rest of them were sent up there on his 8 00:00:32,399 --> 00:00:39,600 rockets. And now we find out that the Internet, satellite Internet was basically 9 00:00:39,640 --> 00:00:44,719 the only thing that kept Ukraine in this war. Throughout the entire time, 10 00:00:44,920 --> 00:00:50,079 you were listening to Carrie Let's Financial Survival Network, where you get valuable information 11 00:00:50,159 --> 00:00:55,520 you just can't find anywhere else to thrive in today's trying times. You need 12 00:00:55,560 --> 00:01:00,479 the Financial Survival Network now more than ever. Go to Financial Survival and Network 13 00:01:00,560 --> 00:01:07,519 dot com and get your free newsletter in gift Financial Survival Network now more than 14 00:01:07,599 --> 00:01:15,799 ever, And welcome. You are listening to watching the Financial Survival Network. 15 00:01:15,840 --> 00:01:19,840 I'm your host, Carrie Lutz. With us is our good friend John Robino. 16 00:01:21,200 --> 00:01:26,120 You find him at Robino dot substack dot com and hey, John could 17 00:01:26,159 --> 00:01:30,879 have you back with Missie a couple of weeks ago. But there's certainly no 18 00:01:30,439 --> 00:01:36,480 shortage of things to discuss. I guess first and foremost is what is going 19 00:01:36,519 --> 00:01:38,920 on with Japan? Hey Kara, Yeah, you know, this might be 20 00:01:38,959 --> 00:01:42,560 the sum summer girl doldrums for the stock market, but there's a lot of 21 00:01:42,560 --> 00:01:46,840 other stuff going on out there, and Japan is a good one to start 22 00:01:46,879 --> 00:01:51,879 with. With a little bit of background. They cut themselves an amazingly sweet 23 00:01:51,879 --> 00:01:55,840 deal. The Japanese government did a while back by pushing interest rates into negative 24 00:01:55,959 --> 00:02:04,159 territory so they could issue bonds which people had to pay them for the chance 25 00:02:04,200 --> 00:02:07,319 to own them. So the more the Japanese government borrowed, the better it's 26 00:02:07,439 --> 00:02:12,240 cash flow was because people were paying them, you know, negative interests on 27 00:02:12,240 --> 00:02:14,599 these bonds and stuff. So that was a great deal, and it went 28 00:02:14,599 --> 00:02:16,759 on for a long time and allowed them to borrow even more money than they 29 00:02:16,759 --> 00:02:22,280 had already borrowed. And now debt to GDP for the Japanese government is the 30 00:02:22,319 --> 00:02:24,479 highest per capita in the history of the human race. No, no country 31 00:02:24,479 --> 00:02:30,719 has ever borrowed like this because and like, yes, yeah, you had 32 00:02:30,759 --> 00:02:35,199 to pay them if you wanted to own their bonds. But anyhow, that 33 00:02:35,199 --> 00:02:38,479 that's starting to end now because of inflation. You know, twenty twenty two 34 00:02:38,639 --> 00:02:42,840 was ten percent inflation for Japan, just like everybody else, and you can't 35 00:02:42,840 --> 00:02:46,240 really have negative interest rate bonds in a double digit inflation world. So they've 36 00:02:46,240 --> 00:02:50,599 had to allow the interest rate on their ten year bonds to drift up, 37 00:02:50,639 --> 00:02:53,479 first two point two five percent, then to point five percent, and just 38 00:02:54,000 --> 00:03:00,520 this past week they widened the band to allow that interest rate to go up 39 00:03:00,520 --> 00:03:05,759 to one percent, and so the rate on ten year bonds instantly shot up 40 00:03:05,759 --> 00:03:08,599 to point six percent, which is seen by the whole world as kind of 41 00:03:08,599 --> 00:03:13,039 a capitulation. And so the yen is falling now, so so Japan is 42 00:03:13,039 --> 00:03:19,280 in this box where the higher interest rates go, the more they owe on 43 00:03:19,400 --> 00:03:22,319 their interest and it could be they you know, they have so much debt 44 00:03:22,319 --> 00:03:28,000 out there that interest rates rising appreciably from here would be a debilitating interest bill 45 00:03:28,120 --> 00:03:30,520 for them. But they need interest rates to go up in order to keep 46 00:03:30,560 --> 00:03:35,680 the yen from collapsing, which would cause massive inflation, which would send their 47 00:03:35,719 --> 00:03:39,400 interest rates up regardless, So they're kind of stuck in the place that all 48 00:03:39,560 --> 00:03:44,800 profligate governments end up being stuck. And it's not clear what the timing of 49 00:03:44,840 --> 00:03:49,840 all this is, but they're not far from a tipping point where if the 50 00:03:50,000 --> 00:03:53,599 end keeps dropping from here, interest rates have to go up. But rates 51 00:03:53,599 --> 00:03:57,639 go up much from here, interest costs eat the government alive. So this 52 00:03:57,719 --> 00:04:03,479 is a thing to watch because it's completely possible that relatively modest moves in the 53 00:04:03,719 --> 00:04:10,599 end and or interest rates pushed Japan off a cliff here financially. So it 54 00:04:10,680 --> 00:04:13,199 might go on for a long time, or it might happen sooner rather than 55 00:04:13,319 --> 00:04:15,360 later. We'll just have to see it. But they're definitely heading that way, 56 00:04:15,399 --> 00:04:18,759 you know. That cliff is looming and they're walking towards it. Yeah. 57 00:04:18,839 --> 00:04:21,199 Yeah, well we always knew this was going to come, but who 58 00:04:21,199 --> 00:04:26,279 could believe that it could take thirty years? John, Well, you know, 59 00:04:26,319 --> 00:04:30,600 the really extreme borrowing has happened pretty recently. But yeah, they had 60 00:04:30,680 --> 00:04:35,000 a real estate bubble burst in the nineteen nineties and ever since they've been running 61 00:04:35,000 --> 00:04:42,199 big deficits and you know, in introducing liquidity programs for various industries and stuff 62 00:04:42,240 --> 00:04:44,879 like that. So so it's been expanding, you know, But they went 63 00:04:44,920 --> 00:04:50,000 from having not terrible debt levels in the nineteen nineties, two pretty bad debt 64 00:04:50,079 --> 00:04:56,439 levels a decade after, an extremely scary debt levels a decade after that, 65 00:04:56,839 --> 00:05:00,160 to today's unearthly debt levels. You know, they so much money on a 66 00:05:00,199 --> 00:05:06,160 per capita basis that there's absolutely no way out. But no other government is 67 00:05:06,199 --> 00:05:10,480 even going to be able to get close to these levels without blowing up, 68 00:05:10,600 --> 00:05:14,120 you know, because Japan had one specific advantage, which is that they ran 69 00:05:14,199 --> 00:05:16,879 a massive trade surplus this whole time, so they had all kinds of money 70 00:05:16,920 --> 00:05:21,199 coming in from the rest of the world, which allowed them to kind of 71 00:05:21,279 --> 00:05:28,040 limp along, keep their zombie industries from falling apart, and take on a 72 00:05:28,079 --> 00:05:30,959 whole lot more depth than they would have been able to do otherwise. So 73 00:05:30,000 --> 00:05:33,439 the you know, the US, for instance, with our massive trade deficit, 74 00:05:34,160 --> 00:05:40,079 we can't get that far into debt accumulation of Japan did, so we 75 00:05:40,560 --> 00:05:46,240 have a shorter lease on this whole thing, although we've already borrowed, you 76 00:05:46,279 --> 00:05:48,800 know, more than it ever seemed like we could. We're in the US, 77 00:05:48,879 --> 00:05:54,720 we're the world's biggest debtor nation already, but on a per capita basis, 78 00:05:54,759 --> 00:05:58,839 we don't touch Japan, so they're the one to watch as an example 79 00:05:58,959 --> 00:06:01,160 of what's coming, or the US and Europe in a bunch of other countries. 80 00:06:02,480 --> 00:06:06,240 So where does this leave us? Like, if Japan goes, then 81 00:06:06,240 --> 00:06:10,560 you've got to believe the euro is going to go, everything's going to go 82 00:06:10,720 --> 00:06:15,399 right, Yeah, and field currency world, the dollar in the euro in 83 00:06:15,439 --> 00:06:18,480 the end only exists because we have faith in how well they're managed. But 84 00:06:18,519 --> 00:06:21,079 you let one of them go, and then we start looking around and going, 85 00:06:21,120 --> 00:06:25,959 well, you know, Europe's not that well managed either. You know, 86 00:06:26,040 --> 00:06:29,319 are they going to have you know, the next crisis or will it 87 00:06:29,319 --> 00:06:31,319 be the US? Or you know, does the US have to start World 88 00:06:31,360 --> 00:06:34,959 War three in order to elevate the dollar? You know what's going to happen. 89 00:06:35,000 --> 00:06:41,519 But the process of looking around and going what's next and who's next won't 90 00:06:41,519 --> 00:06:45,600 be pleasant for the financial markets because once people start looking, they find all 91 00:06:45,680 --> 00:06:49,360 kinds of problems out there. That's just kind of how human psychology works. 92 00:06:49,360 --> 00:06:54,560 And what you feel like are good times, you're able to overlook the bad 93 00:06:54,600 --> 00:06:58,319 stuff that's going on. But as soon as your mindset flips and you start 94 00:06:58,319 --> 00:07:00,959 thinking, well, it's bad times, and then you notice bad things everywhere. 95 00:07:01,639 --> 00:07:05,120 The financial markets will do that after one of the big fe arc currencies 96 00:07:05,439 --> 00:07:10,360 collapses. And it does feel like now that it could be Japan. But 97 00:07:11,040 --> 00:07:17,160 Europe that's a whole separate subject of mismanagement and stupidity and the imminent collapse, 98 00:07:17,319 --> 00:07:20,560 because there's a lot of things going on over there that could make them first 99 00:07:20,600 --> 00:07:25,160 instead of Japan. But if the Euro goes, it'll take the end down 100 00:07:25,199 --> 00:07:28,519 with it, so the Japan won't get that much of a reprieve. Yeah, 101 00:07:28,560 --> 00:07:32,439 I think you are correct there. So you know, there's just so 102 00:07:32,519 --> 00:07:36,399 much going on. But Wall Street keeps going up. John, we're having 103 00:07:38,079 --> 00:07:42,439 the return of the bull, however aboarded it might be. The market's been 104 00:07:42,480 --> 00:07:46,680 doing pretty good. Yeah. Well, I posted a thing on substack a 105 00:07:46,680 --> 00:07:53,720 while ago comparing the interest rate and stock market trends from the nineteen nineties and 106 00:07:53,759 --> 00:07:58,399 the two thousands and today, And what happened in those two previous booms followed 107 00:07:58,399 --> 00:08:03,160 by Big Bus was that the stock market started to go up and interest rates 108 00:08:03,360 --> 00:08:07,720 went up to and then they went up in tandem for quite a while. 109 00:08:07,120 --> 00:08:13,399 In other words, stocks kept getting more and more richly priced and interest rates 110 00:08:13,879 --> 00:08:16,560 kept getting higher and higher, and then it reached a point where high interest 111 00:08:16,600 --> 00:08:20,399 rates broke the economy and caused a big stock market crash, and so we're 112 00:08:20,439 --> 00:08:26,959 basically replicating that pattern. Interest rates are going up, stocks continue to rise, 113 00:08:26,519 --> 00:08:31,240 But there's a point at which interest rates will be high enough to choke 114 00:08:31,319 --> 00:08:35,279 off economic activity, which means lower corporate earnings, which means crashing stock prices. 115 00:08:35,279 --> 00:08:39,159 So that's all coming, and I think the reason why it hasn't come 116 00:08:39,200 --> 00:08:43,600 already because interest rates are high enough now to theoretically do that. For instance, 117 00:08:43,679 --> 00:08:46,960 it's already choking off commercial real estate and it's caused the housing market to 118 00:08:48,000 --> 00:08:50,399 basically be frozen, but it hasn't crashed the overall economy. And the reason 119 00:08:50,440 --> 00:08:54,279 for that is that we're running insanely high government deficits. You know, people 120 00:08:54,279 --> 00:09:01,440 aren't paying attention to deficits anymore, but two trillion dollars or a year is 121 00:09:01,480 --> 00:09:05,759 not an unusual deficit for US right now, and so that's massive fiscal stimulus. 122 00:09:05,759 --> 00:09:11,480 So monetary policy is tightening, but fiscal policy is remaining extremely loose, 123 00:09:11,960 --> 00:09:16,919 and that's allowing the economy to continue to grow in the face of higher interest 124 00:09:16,000 --> 00:09:20,840 rates longer than it would be able to do otherwise. But you know, 125 00:09:20,879 --> 00:09:24,480 there's a limit to that, because at some point interest rates are high enough 126 00:09:24,519 --> 00:09:28,519 that you just can't justify borrowing anymore. It doesn't matter what the government's doing, 127 00:09:28,600 --> 00:09:33,000 whether they're they're subsidizing you a little bit, or or whether they're keeping 128 00:09:33,000 --> 00:09:39,720 taxes low or whatever. You just can't justify borrowing when your internal rate of 129 00:09:39,799 --> 00:09:43,679 return is below the cost of capital. And you get there when interest rates 130 00:09:43,679 --> 00:09:46,320 go up a little bit higher from here. So we are headed that way, 131 00:09:46,360 --> 00:09:50,559 and I think it's it's possible that commercial real estate is the thing that 132 00:09:50,759 --> 00:09:54,120 breaks first, but there's no way to know because there's lots of you know, 133 00:09:54,159 --> 00:09:56,480 they call this the everything bubble for a reason. There's a lot of 134 00:09:56,519 --> 00:10:01,720 bubble delicious stuff going on out there, and any of it conversed at any 135 00:10:01,720 --> 00:10:05,919 time. And just when you thought it was safe to go to your ATM, 136 00:10:07,320 --> 00:10:11,159 we get another bank collapse. This time though the Fed handled it and 137 00:10:11,360 --> 00:10:16,240 Treasury handled it the way it's supposed to be. Where the bank closes over 138 00:10:16,279 --> 00:10:20,840 the weekend, everything's fine, and then you wake up and you're now dealing 139 00:10:20,879 --> 00:10:26,080 with their successor. And they called it, I can't remember a take under 140 00:10:26,519 --> 00:10:31,080 or an overtake whatever, something like that, an overtakeover Kerry. I didn't 141 00:10:31,080 --> 00:10:33,480 even see this. I didn't know there was another bank failure this weekend that 142 00:10:33,600 --> 00:10:41,519 really happened last weekend. But the point is that the banking failure, you 143 00:10:41,559 --> 00:10:46,360 know it, I think it was last weekend that it happened, and you 144 00:10:46,399 --> 00:10:52,759 know it was. I can't remember the name of it now, but it 145 00:10:52,960 --> 00:10:58,480 just happened last week and it was a California bank and it got taken over 146 00:10:58,600 --> 00:11:03,159 by the Bank of the California or something like that, and it was actually 147 00:11:03,240 --> 00:11:07,679 a smaller bank. Okay, we'll look it up. We'll post it in 148 00:11:07,720 --> 00:11:11,120 the show notes. See these things we're talking about slowing down me I forgot 149 00:11:11,120 --> 00:11:16,360 to mention. Manufacturing is slowing down all the pm I indices or are slowing. 150 00:11:16,399 --> 00:11:22,480 But you take commercial, real estate, housing and small business activity. 151 00:11:22,840 --> 00:11:26,679 Those are things that local and regional banks depend on. That's their business base, 152 00:11:28,120 --> 00:11:31,919 and high interest rates are choking off so much of that and making bond 153 00:11:31,960 --> 00:11:37,919 prices go down because higher interest rates are just the reciprocal bond prices, which 154 00:11:37,919 --> 00:11:41,039 means that on the balance sheet of a lot of these little banks is a 155 00:11:41,039 --> 00:11:45,080 whole bunch of bad paper and a lot of loans that haven't been taken yet, 156 00:11:45,159 --> 00:11:48,000 So we could easily see a banking crisis re emerge when a few of 157 00:11:48,039 --> 00:11:52,360 these banks are forced one way or another to take the losses that are right 158 00:11:52,399 --> 00:11:56,919 now just paper losses and convert them into actual losses, and then that spreads, 159 00:11:58,000 --> 00:12:01,960 that contagion spreads to the rest of the states and local banks, and 160 00:12:03,000 --> 00:12:07,720 the federal government has come in and bail them out. You know that that's 161 00:12:07,759 --> 00:12:11,720 something that is very high on the list of possibilities, and that could be 162 00:12:11,759 --> 00:12:18,039 a domino that knocks down a lot of other dominoes because the small banks are 163 00:12:18,120 --> 00:12:22,559 so intertwined with everything else in the country that you can't have a hundred small 164 00:12:22,559 --> 00:12:28,320 banks fail, and that could easily happen without it affecting the rest of the 165 00:12:28,360 --> 00:12:31,240 economy. Good luck trying to get a mortgage if a couple of your local 166 00:12:31,279 --> 00:12:35,840 banks fail, because nobody else is going to want to deal with you while 167 00:12:35,840 --> 00:12:39,320 that mess has been cleaned up. So, yeah, there's all kinds of 168 00:12:39,320 --> 00:12:43,879 things could happen. That all of them are getting closer to a point at 169 00:12:43,919 --> 00:12:48,240 which they become a crisis. Instead of a leading problem, they become a 170 00:12:48,399 --> 00:12:50,519 here and now crisis. And there's no way to know which we'll go first, 171 00:12:50,600 --> 00:12:54,919 but there's a bunch that will go at some point in the next year 172 00:12:54,000 --> 00:12:58,360 or two. Yeah. Here it is a pack West Bank, or this 173 00:12:58,480 --> 00:13:03,919 was the twenty sixth I think it was. It's taken over by Bank of 174 00:13:03,039 --> 00:13:09,320 California. And it was actually a smaller bank in the Bank of California. 175 00:13:09,519 --> 00:13:15,399 So they took it over. And it happened not this weekend, the weekend 176 00:13:15,399 --> 00:13:22,200 before last, and nobody was any of the wiser this weekend a bank was 177 00:13:22,320 --> 00:13:28,759 tiny, little nothing bank. State Bank in Kansas was pretty much closed down, 178 00:13:28,799 --> 00:13:33,960 and the FTIC took it over one hundred thirty nine million dollars in assets. 179 00:13:33,360 --> 00:13:37,759 So that's a pimple on the banking system. And I'm sure everybody's glad 180 00:13:37,799 --> 00:13:41,120 it's gone. Now. Remember when one hundred and thirty million dollars was real 181 00:13:41,159 --> 00:13:48,200 money? Everic Dirk said and said, I used to say he was a 182 00:13:48,200 --> 00:13:52,759 speaker of the Senate or a majority leader of the Senate, and he was 183 00:13:52,799 --> 00:13:54,879 the one who coined the phrase a billion here, a billion there. Pretty 184 00:13:54,919 --> 00:14:01,639 soon you're talking about real money. Yeah, that's so offensive when the government 185 00:14:01,519 --> 00:14:03,799 but yeah, yeah, but that was a while ago. Now and nounced 186 00:14:03,840 --> 00:14:09,840 trillions instead of billions. Yeah, and pretty soon it'll probably be quadrillion. 187 00:14:09,480 --> 00:14:18,159 So look like we got the economy slowing, we've got bank lending, bank 188 00:14:18,240 --> 00:14:26,000 credit creation to business is hitting the skids, and housing is like the anomaly 189 00:14:26,159 --> 00:14:31,799 here because actually the housing stocks a couple of weeks ago made new five year 190 00:14:31,919 --> 00:14:39,080 highs. Um you know, guys like Lenar, like Poulty Homes, Kby 191 00:14:39,200 --> 00:14:43,720 Homes, Dr Horton, they all hit new highs, even Tall Brothers, 192 00:14:43,960 --> 00:14:48,679 which is on the luxury end of new housing. But there was an article 193 00:14:48,720 --> 00:14:52,200 today in zero Hedge. I don't know if you caught it where they talked 194 00:14:52,240 --> 00:14:56,320 about how they're cutting back. The price of new homes is going down and 195 00:14:56,360 --> 00:15:01,679 they're putting less stuff in them, so less extras, which is where the 196 00:15:01,679 --> 00:15:05,200 builders make all their money, and extras the actual house itself. You know, 197 00:15:05,240 --> 00:15:09,559 there's a profit built in, but the real profit on a house is 198 00:15:09,799 --> 00:15:13,480 when you want that fancy kitchen, cabinets and you want all this other stuff. 199 00:15:13,879 --> 00:15:18,000 That's where they make the bucks. Yeah, the housing stocks went down 200 00:15:18,039 --> 00:15:24,759 today and they're vulnerable to high interest rates just like anybody else in the real 201 00:15:24,840 --> 00:15:28,759 estate market. But one of the reasons why they've been looking so good for 202 00:15:28,759 --> 00:15:31,879 so long is that there's a shortage of houses out there because the people who 203 00:15:31,879 --> 00:15:37,039 own houses and have mortgages from prior years are locked in to their three percent 204 00:15:37,080 --> 00:15:41,000 mortgages. You know, they can't sell their house and then go buy something 205 00:15:41,039 --> 00:15:45,240 else because they got to pay seven point two percent on the mortgage. So 206 00:15:45,320 --> 00:15:50,159 there's very little inventory coming onto the market, which means home builders have a 207 00:15:50,200 --> 00:15:52,679 better pitch. They can say, well, you can you can buy this 208 00:15:52,759 --> 00:15:56,039 crappy use house over here or this one over here, but that's all that's 209 00:15:56,080 --> 00:16:00,240 your inventory. But let me build you the perfect dream house. So true 210 00:16:00,320 --> 00:16:03,919 that yeah, and so that's working for him, but that isn't the kind 211 00:16:03,919 --> 00:16:07,759 of thing that lasts forever. If interrust rates go up beyond the point of 212 00:16:07,279 --> 00:16:12,080 new home buyers being able to afford buying a nice, new, luxurious house 213 00:16:12,120 --> 00:16:17,279 with all the bells and whistles, then the home builders suffer too. And 214 00:16:17,440 --> 00:16:22,840 normally in a housing bus the home builders get crushed. They just hanked down 215 00:16:22,879 --> 00:16:26,039 the near zero in two thousand and eight, two thousand and nine. So 216 00:16:26,200 --> 00:16:32,639 the idea that somehow they're immune to the normal dynamic and real estate is probably 217 00:16:33,399 --> 00:16:37,039 misplaced. I think they'll they'll suffer eventually, maybe just not yet on the 218 00:16:37,080 --> 00:16:41,440 scale that they previously did. Ye I thought about like, you know, 219 00:16:41,480 --> 00:16:45,399 I got my house at exactly the right time. Honestly, it's way more 220 00:16:45,519 --> 00:16:49,000 space than I need. It's just me said, maybe I'll go to Lake 221 00:16:49,080 --> 00:16:53,960 a two three bedroom condo. But then, even if that condo is worth 222 00:16:55,000 --> 00:16:57,480 half of what my house is here, unless I buy it for cash, 223 00:16:59,000 --> 00:17:03,039 I'm going to wind up making a mortgage payment that's the same as what I'm 224 00:17:03,080 --> 00:17:07,079 paying now or even more. So I've got to be crazy to go downsizing. 225 00:17:07,359 --> 00:17:11,599 So this is what's keeping a lot of older people in their homes because 226 00:17:11,920 --> 00:17:15,359 they yeah, they can sell their home, take a big profit, but 227 00:17:15,400 --> 00:17:18,079 then they got to put that all into the new place because prices have gone 228 00:17:18,160 --> 00:17:22,240 up. Otherwise, if they have a mortgage, they would have to have 229 00:17:22,279 --> 00:17:27,359 a mortgage fifty percent of the size of the mortgage there existing mortgage to pay 230 00:17:27,400 --> 00:17:33,720 the same same debt service, same monthly payment, maybe a little bit less 231 00:17:33,720 --> 00:17:37,799 in the taxes. So you can so you can downsize. It doesn't make 232 00:17:37,839 --> 00:17:44,000 any sense. So you know, there's another interesting story in the housing market, 233 00:17:44,039 --> 00:17:48,279 and that is demographic remember when home prices were going to collapse because baby 234 00:17:48,279 --> 00:17:53,400 boomers were going to sell their McMansions when they turn sixty one, and that's 235 00:17:53,480 --> 00:17:56,079 not happening. Part of it. It's probably that dynamic that you're talking about 236 00:17:56,079 --> 00:18:00,200 that right now where you know boomers are, they're sitting in their mcmansion's going, 237 00:18:00,279 --> 00:18:03,519 oh, man, if I sell it now, I'm going to have 238 00:18:03,559 --> 00:18:04,720 to take out a monster mortgage. I don't want to do that. Maybe 239 00:18:04,759 --> 00:18:11,839 I'll sit tight for another few years. And what that implies is that if 240 00:18:11,880 --> 00:18:15,599 the FED were to force interest rates back down a little bit, but it 241 00:18:15,680 --> 00:18:22,119 could open up a massive wave of supply in the real estate market because all 242 00:18:22,119 --> 00:18:27,000 these boomers, you know, it's no fun having a four thousand or five 243 00:18:27,039 --> 00:18:32,240 thousand square foot house when you're seventy years old. That's just a lot of 244 00:18:32,319 --> 00:18:37,119 dusting of empty rooms that you got to do. That's a lot of plumbing 245 00:18:37,160 --> 00:18:40,759 and electric that always needs to be repaired. Yeah. Yeah, So the 246 00:18:40,799 --> 00:18:44,400 boomers, if they're like any other generation in human history, are going to 247 00:18:44,480 --> 00:18:49,319 want to downsize when they can and as soon as as soon as the environment 248 00:18:49,480 --> 00:18:52,799 is such that that's possible, then this market is just going to kind of 249 00:18:52,839 --> 00:18:56,880 spass them with all the new you know, all this new inventory is going 250 00:18:56,920 --> 00:19:02,200 to come on and the price of houses will probably ten even as interest rates 251 00:19:02,680 --> 00:19:04,599 go down, which would normally be a good thing for house prices. So 252 00:19:04,599 --> 00:19:10,039 we'll see it. But that's just another wild card in a housing market that's 253 00:19:10,160 --> 00:19:14,759 very unusual right now. It's not behaving the way it normally does. Yeah, 254 00:19:14,799 --> 00:19:19,359 totally. So. So we have a coup in Niger, or an 255 00:19:19,359 --> 00:19:27,039 attempted coup, and they're a major resource producing country in Africa, particularly uranium, 256 00:19:27,119 --> 00:19:33,359 which has really royaled the uranium market. Yeah. Well, this is 257 00:19:33,359 --> 00:19:40,680 a good lesson or resource stock investors, and that is that political risk is 258 00:19:40,720 --> 00:19:45,920 a real thing. A country or a company can have a great resource that 259 00:19:45,079 --> 00:19:48,839 looks like it's going to be super profitable, but in a place that has 260 00:19:48,839 --> 00:19:52,960 a coup or a civil war and any number of other things that fall under 261 00:19:52,960 --> 00:20:00,920 the political risk umbrella, and it screws up your market. And it also 262 00:20:00,000 --> 00:20:10,519 illustrates how companies that have resources in stable jurisdictions tend to respond very well to 263 00:20:10,559 --> 00:20:14,960 political risk in other places. Because if you look at the uranium stocks right 264 00:20:14,960 --> 00:20:18,599 now, most of them popped today. They're doing great because of this potential 265 00:20:18,599 --> 00:20:23,720 disruption in the uranium supply. But there's one or two uranium miners in Nagier 266 00:20:25,839 --> 00:20:30,480 who are not doing so well today because they might be cut off from world 267 00:20:30,480 --> 00:20:33,640 markets for a while. So political risk is a thing, and it can 268 00:20:33,640 --> 00:20:38,480 cut both ways. It can benefit you if it happens somewhere else, that 269 00:20:38,599 --> 00:20:42,519 can hurt you if you're where it's happening. So pay attention to that with 270 00:20:42,599 --> 00:20:48,480 your resource stock in dusting. Hey, let's not forget the new government might 271 00:20:48,519 --> 00:20:55,160 not look so favorably on the existing concessions and they might just terminate them, 272 00:20:56,000 --> 00:20:57,960 all right, take us to the World Court, or take us to whatever 273 00:20:59,160 --> 00:21:03,000 arbitration there is, and we're just going to be at it out to new 274 00:21:03,000 --> 00:21:08,079 company, and maybe we'll do it to uranium one, right whoever owns it 275 00:21:08,160 --> 00:21:11,400 today. I think it might be Uranium one, but I'm not one hundred 276 00:21:11,400 --> 00:21:15,200 percent sure, but yeah, that's that's a possibility. And in meanwhile, 277 00:21:15,200 --> 00:21:22,559 there are a lot of other countries out there that are looking at the extractive 278 00:21:22,599 --> 00:21:26,519 industries that are operating in within their borders and they're thinking they want a bigger 279 00:21:26,559 --> 00:21:32,039 cut of the profits. So they're changing the terms of the concessions that happened, 280 00:21:32,079 --> 00:21:34,559 and I think it might have just happened in Mexico with taxi in Chile 281 00:21:36,279 --> 00:21:44,440 m with the percentage that the government takes from minds that operate there. So 282 00:21:42,880 --> 00:21:49,079 so so you know, investing in resource stocks is complicated. That's the takeaways 283 00:21:49,079 --> 00:21:52,799 A lot to think about. Well, that's the case. You need to 284 00:21:52,000 --> 00:22:02,119 geographical diversity as well as diversity over the over the metal and minerals that you're 285 00:22:02,160 --> 00:22:06,400 looking at the resources, you need to diversify them too. You know, 286 00:22:06,559 --> 00:22:11,119 it's it's like anything else. But probably if you have twelve stocks in different 287 00:22:11,160 --> 00:22:15,039 places with different things that are in tight supply. So you're a nickel, 288 00:22:15,519 --> 00:22:22,920 you're in some platinum, you're in lithium perhaps, or any one of a 289 00:22:23,039 --> 00:22:26,759 number of other ones, and then you're in Canada, you're in Nevada. 290 00:22:27,000 --> 00:22:32,480 At least for now, North America compared to the rest of the world, 291 00:22:32,599 --> 00:22:37,160 is a stable jurisdiction and we'll see how that turns out. But at least 292 00:22:37,200 --> 00:22:41,920 then you have a shot and lots of uranium produced in Canada. So I 293 00:22:42,039 --> 00:22:49,400 just find it fascinating that you know a country like Niger that of the world 294 00:22:49,440 --> 00:22:53,119 cannot find on a map, John, they can't find it on a map 295 00:22:53,759 --> 00:22:59,640 all of a sudden is like the tail wagging the dog and messing up the 296 00:23:00,359 --> 00:23:04,200 market. But it was inevitable because production has been cut back and prices that 297 00:23:04,319 --> 00:23:11,039 were kept artificially low by whatever means, for whatever reasons, by whomever, 298 00:23:11,559 --> 00:23:15,880 conspiracy of the week you think might be controlling the prices. This is what 299 00:23:15,960 --> 00:23:22,759 happens when you monkey with the market artificially over protracted periods of time, you 300 00:23:22,839 --> 00:23:29,319 get these these disruptions. Yeah, yeah, and right now you pay a 301 00:23:29,480 --> 00:23:33,480 premium or assets that are in North America, so that has to be factored 302 00:23:33,519 --> 00:23:41,480 into you. You get resources in risky countries at a discount, and you 303 00:23:41,519 --> 00:23:44,480 pay up to get them in Canada or you know, there's a lot there's 304 00:23:44,480 --> 00:23:47,079 some gold mining going on in Nevada right now, which is a really good 305 00:23:47,559 --> 00:23:51,039 arrosection for gold mining. So you do pay up a little bit for something 306 00:23:51,079 --> 00:23:55,559 like that. So, um, there are a lot of moving parts and 307 00:23:55,680 --> 00:24:00,200 you have to make a lot of judgment calls in this market. And up 308 00:24:00,839 --> 00:24:04,519 Rick Rule, for instance, says that he likes risky countries because they tend 309 00:24:04,559 --> 00:24:11,440 to be underpriced. And of the words the discount or yeah, the discount 310 00:24:11,519 --> 00:24:14,920 that you got to pay. Wait, how does that work? You pay 311 00:24:14,960 --> 00:24:18,920 a premium? Okay, yeah, discount, Yeah you get it. Yeah, 312 00:24:19,000 --> 00:24:26,039 you're buying it a discount, and it's a it's an attractive enough discount 313 00:24:26,160 --> 00:24:29,440 to make it worth his while. And he should know. You know, 314 00:24:30,079 --> 00:24:33,880 Rick Rule says something about resource investing. You should take it as almost a 315 00:24:33,960 --> 00:24:38,079 guarantee fact, you know. Yeah, but we're seeing the downside of that 316 00:24:38,200 --> 00:24:44,279 now with the uranium thing in Africa. But yeah, interesting market. I 317 00:24:44,359 --> 00:24:48,359 still think, well, the uranium stocks that are in safer jurisdictions have been 318 00:24:48,359 --> 00:24:52,839 doing great and it looks like they're going to continue to do well. So 319 00:24:52,920 --> 00:24:59,920 that's still a very interesting part of the recent roust market, and I think 320 00:25:00,240 --> 00:25:03,720 any weakness in uranium stocks going forward should be a buying opportunity for people who 321 00:25:03,799 --> 00:25:10,400 understand that market. And today, while we're talking about it, the first 322 00:25:10,720 --> 00:25:17,079 new nuclear power plant went online in the United States in Georgia. I'm not 323 00:25:17,119 --> 00:25:21,400 sure if as the modular designed one or not. My friends actually worked on 324 00:25:21,519 --> 00:25:26,160 that and helped develop it. But first time in like, you know, 325 00:25:26,519 --> 00:25:30,960 twenty thirty years, a new nuclear power plant has come onto the grid in 326 00:25:32,000 --> 00:25:38,440 the United States, nuclear I used to be opposed to nuclear power because it 327 00:25:38,680 --> 00:25:45,960 because it had an embedded risk where every ten years a nuclear plant melts down 328 00:25:47,039 --> 00:25:51,039 and then nobody wants to touch those stocks for the next eight years. Yeah, 329 00:25:51,079 --> 00:25:56,519 but I've kind of changed my mind lately because nothing really seriously bad happened. 330 00:25:56,640 --> 00:26:00,519 When you look back at those nuclear accidents, Chernobyl is the only one 331 00:26:00,559 --> 00:26:07,440 that was where there was a loss of a lot of lives. Loss pretty 332 00:26:07,519 --> 00:26:12,960 messy, it's incredibly messy, but nobody died. They're they're gradually cleaning it 333 00:26:14,039 --> 00:26:17,079 up and everything. So anyway, right, Yeah, and yeah, I 334 00:26:17,079 --> 00:26:25,480 know when they told us about and when you put that against the incredible economics 335 00:26:25,480 --> 00:26:30,039 of nuclear power. It takes you know, a beer can size amount of 336 00:26:30,599 --> 00:26:41,920 uranium to basically power your life for your lifetime. Um and um, there's 337 00:26:41,960 --> 00:26:45,279 so much you can do with power that is is that steady. For instance, 338 00:26:47,240 --> 00:26:49,880 you can set up a nuclear plant and at night you don't need all 339 00:26:49,920 --> 00:26:55,759 that power. You run it at capacity or whatever continuously, and at night 340 00:26:55,759 --> 00:27:00,319 when no one needs that power, you can mind bitcoin, you can you 341 00:27:00,359 --> 00:27:04,960 can create hydrogen and then use the hydrogen to run cars and then bypass the 342 00:27:06,000 --> 00:27:11,119 whole electric battery thing, which is an environmental nightmare. So there are a 343 00:27:11,160 --> 00:27:15,880 lot of upsides to nuclear that I think people are just beginning to grasp. 344 00:27:17,799 --> 00:27:22,359 And I think that as more and more people figure it out, it moves 345 00:27:22,400 --> 00:27:26,599 back into favor. And there's nowhere near enough uranium coming out of today's minds 346 00:27:26,000 --> 00:27:30,960 to satisfy the resulting demand. So uranium is one of those things where there's 347 00:27:30,960 --> 00:27:36,039 going to be panic buying at some point and it's whatever it is, sixty 348 00:27:36,079 --> 00:27:42,359 five dollars right now. It no, No, that's still not enough, 349 00:27:42,599 --> 00:27:48,559 not enough to satisfy the next decades demand. So it has to go up. 350 00:27:48,240 --> 00:27:52,359 And as long as there's not another food Kushima in the near term, 351 00:27:52,400 --> 00:27:56,680 a lot of countries are going to make the decision that while windpower didn't work 352 00:27:56,720 --> 00:28:00,359 out as well as we thought it, well, natural gases is day jurisic. 353 00:28:00,480 --> 00:28:03,440 We get it from Russia, and you know, so let's do nuclear 354 00:28:03,480 --> 00:28:07,519 because we can control that. So I think that's the dynamic, and I 355 00:28:07,519 --> 00:28:11,400 think it's going to get bigger and bigger barring that big accident that's out there, 356 00:28:12,000 --> 00:28:18,079 and it's going to be a really successful segment of the commodities investing universe. 357 00:28:18,160 --> 00:28:21,559 For quite a while, all right, and now we're going to end 358 00:28:21,599 --> 00:28:26,160 with the lead, which is a no no in journalism, right, is 359 00:28:26,279 --> 00:28:30,559 Elon Musk the most powerful person on Earth? And let's just look at what's 360 00:28:30,559 --> 00:28:36,000 going on article today. The guy basically owns space all right, half of 361 00:28:36,039 --> 00:28:40,599 the satellites floating around up there, we're put up there by Musk. Well, 362 00:28:40,640 --> 00:28:45,920 actually I should say I should rephrase that half of the satellites floating around 363 00:28:45,920 --> 00:28:49,559 are owned by Musk, by SpaceX. A lot of the rest of them 364 00:28:49,599 --> 00:28:56,039 were sent up there on his rockets. And now we find out that the 365 00:28:56,119 --> 00:29:02,240 internet, satellite Internet was basically the only thing that kept Ukraine in this war 366 00:29:02,720 --> 00:29:07,759 throughout the entire time, because you know, it's just there was no other 367 00:29:07,759 --> 00:29:14,559 way to communicate. Their whole communications infrastructure was targeted by the Rasans, blown 368 00:29:14,680 --> 00:29:18,359 up in day one of the war. And yet because of Starlink, they're 369 00:29:18,400 --> 00:29:26,200 able to run all their drones have military communications. And he's not within the 370 00:29:26,279 --> 00:29:30,279 control at least in theory of any particular country. It's up to him whether 371 00:29:30,680 --> 00:29:36,000 you know, if he says to Ukraine, you know you can have Internet 372 00:29:36,039 --> 00:29:38,880 service, but I'm geo fencing crimea because we don't want to get involved in 373 00:29:38,960 --> 00:29:45,559 crimea what are they supposed to do? And there's multiple countries and boats and 374 00:29:45,839 --> 00:29:52,839 planes and everything else. All their internet connectivity comes down to Musk So that's 375 00:29:52,400 --> 00:29:59,039 he owns the infrastructure for launching satellites. He owns the satellites for communication. 376 00:29:59,519 --> 00:30:03,279 And then he owns a little car company called Tesla, which appears to be, 377 00:30:03,680 --> 00:30:08,319 if not the most profitable car company, it is on the brink of 378 00:30:08,400 --> 00:30:15,559 becoming the dominant automaker in the world. He goes around making deals with India, 379 00:30:15,599 --> 00:30:22,680 with Indonesia, you know, with China, and you know he cowtows 380 00:30:22,799 --> 00:30:27,759 to the shrine of Chairman Mao to keep good relations with China because half the 381 00:30:27,799 --> 00:30:33,799 productions there. You know, the question though, is he the most powerful 382 00:30:33,880 --> 00:30:37,599 person on earth right now? He does seem to be, doesn't he. 383 00:30:37,720 --> 00:30:44,200 And you know, as rich as he is, they don't necessarily count SpaceX 384 00:30:44,720 --> 00:30:49,359 in his net worth. And when that goes public SpaceX the owner of Starling, 385 00:30:51,119 --> 00:30:53,079 Yeah, that's gonna be a really valuable company. So he's going to 386 00:30:53,119 --> 00:30:59,599 add another fifty billion dollars or so to his network. But this um low 387 00:30:59,720 --> 00:31:04,960 war but satellite internet thing, you know, it wasn't that intuitively obvious to 388 00:31:06,039 --> 00:31:08,519 begin with, at least to most people, But I guess it was to 389 00:31:08,599 --> 00:31:14,119 Musk. But it's like the Internet because you you can you can take out 390 00:31:14,119 --> 00:31:18,400 a big communication satellite, but if you take out a hundred of his lower 391 00:31:18,400 --> 00:31:22,000 Earth orbit tiny satellites, he'll just route around you, because it's the same 392 00:31:22,039 --> 00:31:25,799 way the Internet. If you know, one note of the Internet goes down, 393 00:31:25,880 --> 00:31:30,759 the signal still gets there. So it's very robust and that makes it 394 00:31:30,880 --> 00:31:36,759 militarily really important. Now, at the same time that's happening, Jeff Bezos 395 00:31:36,839 --> 00:31:41,240 is doing the same thing. He's using his space company to put up a 396 00:31:41,240 --> 00:31:47,519 competitor of Starlinks, So you know, it's late to the game. Yeah, 397 00:31:47,599 --> 00:31:52,599 yeah, it could be could be that he was waiting to see what 398 00:31:52,680 --> 00:31:55,839 kind of beginner's mistakes Elon Musk would make. But it looks like he didn't 399 00:31:55,880 --> 00:32:00,039 make very money. So Bezos is definitely late to the game. But you 400 00:32:00,079 --> 00:32:02,599 know, we could could end up having some kind of a space war up 401 00:32:02,640 --> 00:32:09,000 there between private sector companies with their Internet communications networks and stuff, because it 402 00:32:09,039 --> 00:32:14,319 wouldn't be hard to weaponize those things, just like we were talking about with 403 00:32:14,400 --> 00:32:19,480 drones. A bunch of small satellites that where you don't care what happens to 404 00:32:19,599 --> 00:32:23,839 them. Yes, the very dangerous weapons up there. Yeah, so we're 405 00:32:24,000 --> 00:32:28,160 entering a world where a lot of things that were inconceivable a few years ago 406 00:32:28,599 --> 00:32:31,880 are suddenly not science fiction anymore. You know, that's just something that could 407 00:32:32,000 --> 00:32:36,400 possibly happen. And who would win, Jeff Bezos or Elon Musk, you 408 00:32:36,400 --> 00:32:39,039 know, you know, you don't even have to blow up the satellites. 409 00:32:39,079 --> 00:32:44,160 You just have to bang one into another one. They're very sensitive, you'll 410 00:32:44,240 --> 00:32:49,720 knock it out of operation. You know. It's also the things tied in 411 00:32:49,799 --> 00:32:53,920 with the drone wars, So that to me, of everything that's happened in 412 00:32:54,359 --> 00:33:00,319 Ukraine, you know, all this nuclear saber rattling and all that their own 413 00:33:00,359 --> 00:33:08,000 wars are the most terrifying and significant advance in modern warfare. We already talked 414 00:33:08,039 --> 00:33:14,440 about how like, you know, all of the US and Western military industrial 415 00:33:14,599 --> 00:33:16,400 entities, and there are many of them out there, a lot of them 416 00:33:16,400 --> 00:33:21,240 you don't even know who they are. But the big ones, Raytheon, 417 00:33:22,119 --> 00:33:30,279 You've got Boeing obviously, Lockheed, a whole bunch of them. Well, 418 00:33:31,400 --> 00:33:37,799 what we found out was that the whole thing that Russia was a threat during 419 00:33:37,839 --> 00:33:43,319 the Cold War other than being a nuclear threat with missiles. It's just totally 420 00:33:43,359 --> 00:33:49,039 false because you see how their weapons have performed in every war since the Arab 421 00:33:49,160 --> 00:33:58,000 Israeli War nineteen seventy two. Every time there's been a confrontation between US Western 422 00:33:58,279 --> 00:34:07,039 military technology in Russian Eastern military technology, they've been destroyed. So to me, 423 00:34:07,279 --> 00:34:12,440 like this whole Ukraine war has just pointed up the fallacy the Cold War 424 00:34:12,559 --> 00:34:15,039 that it was just a psi op to get us to keep spending more and 425 00:34:15,079 --> 00:34:21,039 more money on this stuff. And now they're in their golden years of the 426 00:34:21,079 --> 00:34:27,000 military industrial complex because all of the Russian arms, like in Ukraine, now 427 00:34:27,159 --> 00:34:30,119 everybody sent them their Russian arms, they're all destroyed. They're all laying out 428 00:34:30,119 --> 00:34:35,679 there. They'll be there a scrap. So now we're going to see is 429 00:34:35,760 --> 00:34:43,559 the rearmament phase and all of these military industrial entities are going to clean up 430 00:34:43,559 --> 00:34:45,760 on it. You know. But getting back the drone thing is is kind 431 00:34:45,760 --> 00:34:52,119 of frightening. Yeah, Well, each new conflict now is you know, 432 00:34:52,119 --> 00:34:58,119 it has its own objective, but it's also a way to test cutting edge 433 00:34:58,239 --> 00:35:04,199 weaponry, and drones clearly are an idea that whose time has come, and 434 00:35:04,480 --> 00:35:07,559 it gets more so as they get smaller, the more you can miniaturize these 435 00:35:07,599 --> 00:35:10,199 things, the more terrifying they become. I'll tell you what a trend is 436 00:35:10,199 --> 00:35:15,880 gonna be starting not too far into the future, is for rich people to 437 00:35:15,920 --> 00:35:22,599 build drone proof houses. So in other words, you can't use a drone 438 00:35:22,639 --> 00:35:27,280 to see inside the house, you can't break its windows because the windows are 439 00:35:27,639 --> 00:35:34,760 reinforced, and so you were safe inside your drone proof house. But yeah, 440 00:35:34,760 --> 00:35:38,280 you're you're right about the Cold War being one gigantic scam, and most 441 00:35:38,280 --> 00:35:44,000 of what the US military industrial complex has done since has basically been business scams, 442 00:35:44,000 --> 00:35:47,800 because the dirty secret to war is that you can make a fortune by 443 00:35:47,840 --> 00:35:55,320 rebuilding what you've destroyed, and it's always the US military industrial complex that makes 444 00:35:55,320 --> 00:36:00,480 that fortune. So we're, you know, we're increasing our military it's like 445 00:36:00,559 --> 00:36:05,559 crazy, and we're destroying things all over the world that have to be rebuilt 446 00:36:05,639 --> 00:36:09,360 with US weaponry. So yeah, we're we're running a business scam right now. 447 00:36:10,119 --> 00:36:15,320 And you could say that other crises in the recent past have also been 448 00:36:15,840 --> 00:36:20,199 business scams. We're on YouTube, so I won't name any names, but 449 00:36:20,960 --> 00:36:27,800 conceptually, It's the same thing where you destroy something and then they have to 450 00:36:27,880 --> 00:36:31,280 pay you to rebuild what you destroy it. So, yeah, you know 451 00:36:31,400 --> 00:36:36,280 we're we are an evil empire. Let's just put it out there, and 452 00:36:36,280 --> 00:36:39,639 we're behaving like one right out of Star Wars or something. It's like if 453 00:36:39,679 --> 00:36:45,400 Tall Brothers could do a housing development, get everyone to move in, and 454 00:36:45,440 --> 00:36:49,920 then burn it down and get you to pay them for the privilege of burning 455 00:36:49,920 --> 00:36:53,000 it down, and then buy new houses from you, so that because you're 456 00:36:53,000 --> 00:36:55,760 homeless, you've got to have a place to live, right, I mean, 457 00:36:55,880 --> 00:37:01,000 that's that's what's happening here. It is such a scam. And as 458 00:37:01,119 --> 00:37:08,159 much as I have misgivings about RFK, Bobby Junior, he was in a 459 00:37:08,239 --> 00:37:15,280 town hall with Sean Hannity, not my favorite quote unquote journalist, and he 460 00:37:15,360 --> 00:37:22,760 eviscerated him by explaining the history of the Ukraine War that evidently this informed journalist 461 00:37:23,440 --> 00:37:30,719 had no idea about that. When Baker, basically James Baker, who was 462 00:37:30,760 --> 00:37:37,400 a Secretary of State, negotiated the uh the deconstruction of the Soviet Empire, 463 00:37:37,760 --> 00:37:43,440 he said, NATO will not take one more inch, and NATO's whole purpose 464 00:37:44,480 --> 00:37:47,360 was fighting the Cold War. Once the Cold War was gone, there was 465 00:37:47,440 --> 00:37:52,639 really no need for NATO. Maybe a rolled backed, scaled back NATO, 466 00:37:52,800 --> 00:37:58,360 right, but there was no need for it. And yet now it's expanded 467 00:37:58,400 --> 00:38:04,559 to twenty countries. It's Russia's worst nightmare. Now look a lot of mere 468 00:38:04,639 --> 00:38:08,519 Putin and I think there's a he's not a nice guy. I think he's 469 00:38:09,239 --> 00:38:15,079 a stone cold killer. He was KGB all the way and uh, you 470 00:38:15,119 --> 00:38:21,920 know basically what they used to call on that that cartoon Rocky and Bullwinkle. 471 00:38:22,199 --> 00:38:27,159 He was a member. There was Boris and Natasha and it basically, uh, 472 00:38:27,599 --> 00:38:30,719 Putin is a no good nick. That's what they used to call them. 473 00:38:30,960 --> 00:38:35,480 You know, good nick and you know all of that. But on 474 00:38:35,519 --> 00:38:39,119 the other hand, they want to dismount, they want to dismantle, they 475 00:38:39,199 --> 00:38:45,199 want to deconstruct Russia and they want to split it up. It's like it's 476 00:38:45,199 --> 00:38:52,119 like World War One with the Ottoman Turk Empire and the Austro Hungarian Empire, 477 00:38:52,239 --> 00:38:59,199 two empires declining, and all World War One was was a feeding frenzy by 478 00:38:59,440 --> 00:39:02,960 the excess and the Allied powers to try to get their peace. And now 479 00:39:04,679 --> 00:39:08,519 they see they're trying to do the same thing with Russia deconstructed destroy it. 480 00:39:08,960 --> 00:39:13,840 And in fact, a guy, a Russian politician whose name escapes me, 481 00:39:14,480 --> 00:39:21,000 said it has become an existential war for Russia. And that's what this is 482 00:39:21,039 --> 00:39:25,360 all about, a battle of resources. China wants the half of Russia that 483 00:39:27,480 --> 00:39:31,639 abuts China because they got too many people and not enough places, and the 484 00:39:31,719 --> 00:39:39,320 resources, the largest untapped you know, basket of resources in the world is 485 00:39:39,360 --> 00:39:44,639 all over Russia. There's so much of it that hasn't been exploited yet. 486 00:39:44,880 --> 00:39:49,599 There's a resource battle with the ultimate goal of carving up Russia. Yep, 487 00:39:50,239 --> 00:39:57,920 that is exactly Amato's. NATO's purpose shifted from defending against Russia to expanding and 488 00:39:58,000 --> 00:40:05,519 strangling and dismembering Russia. Um. And you know, Russia and China are 489 00:40:05,559 --> 00:40:10,360 emerging powers that are a threat to the US economically at least, you know, 490 00:40:10,639 --> 00:40:15,960 if not militarily. They weren't ntil recently. Yeah yeah, yea. 491 00:40:15,440 --> 00:40:22,079 So the Empire is striking back against these emerging powers. And I think the 492 00:40:22,119 --> 00:40:25,039 goal of the US, both with China and with Russia is besides the resources 493 00:40:25,079 --> 00:40:29,440 that it will gain from taking over Russia, but to take a couple of 494 00:40:29,480 --> 00:40:34,880 competitors off the playing field. So yeah, this is this is great power 495 00:40:35,239 --> 00:40:42,280 politics in the nuclear age, and it's insane because you cannot translate that kind 496 00:40:42,280 --> 00:40:46,239 of mindset into a world where you've got weapons capable of destroying the human race. 497 00:40:46,360 --> 00:40:51,960 So this is very scary because you've got basically crazy people in charge of 498 00:40:52,000 --> 00:40:55,000 the US, and you know that a RFKAS. Yeah, but that interview 499 00:40:55,000 --> 00:40:59,480 with Sean Hannity that that you talked about was a perfect illustration of that. 500 00:40:59,519 --> 00:41:02,880 You had Sean Hannity, who is this moron neo Khan who has like three 501 00:41:02,920 --> 00:41:07,679 blunt, forced talking points, that's all he knows about the subject. And 502 00:41:07,920 --> 00:41:14,039 RFK who knows the names and the dates and the motivations and the timeline for 503 00:41:14,079 --> 00:41:19,519 all of this stuff and can paint a picture of the US as the predator 504 00:41:19,719 --> 00:41:23,920 in this story. So you know, RFK, I think he's he's a 505 00:41:24,039 --> 00:41:29,400 very brave guy who's waking a lot of people up. I think. I 506 00:41:29,400 --> 00:41:34,920 mean, the odds of him getting the Democrat nomination are about negative one hundred. 507 00:41:35,280 --> 00:41:40,840 But he's doing a real public service by drawing a lot of eyeballs and 508 00:41:42,199 --> 00:41:47,000 telling the correct story about art history. And because you don't see it anywhere 509 00:41:47,000 --> 00:41:52,239 else, No, no, and hey, by the way, the President 510 00:41:52,320 --> 00:42:00,679 declined to extend a secret service protection to RFK Junior over the weekend. Uh 511 00:42:00,039 --> 00:42:06,320 you can. You can infer what you like from that, just as a 512 00:42:06,800 --> 00:42:09,280 off the cuff note of interest. Well that's it. I think we're done. 513 00:42:09,320 --> 00:42:13,559 We could so much news, John, We could go on for two 514 00:42:13,599 --> 00:42:15,239 more hours. Probably a lot of you out there would like us too. 515 00:42:15,719 --> 00:42:22,199 But in the meantime, till two weeks from now, go over to John 516 00:42:22,280 --> 00:42:28,559 site, to Robino dot substack dot com, US Financial Survival Network dot com. 517 00:42:28,679 --> 00:42:31,760 Questions, comments from on the YouTube channels, send us emails k l 518 00:42:32,000 --> 00:42:36,840 atcarry Lutz dot com. We'll raise them next time. If we missed anything 519 00:42:36,880 --> 00:42:39,440 that you'd like us to cover, please tell us. If you disagree with 520 00:42:39,519 --> 00:42:44,719 anything that we covered, please tell us that John. We'll talk to you 521 00:42:44,760 --> 00:42:46,960 in a couple of weeks. Thanks, Garious. Yeah, thanks for listening 522 00:42:47,039 --> 00:42:53,400 to carry Lutz's Financial Survival Network your solution to today's trying times. For the 523 00:42:53,480 --> 00:43:00,519 latest, go to Financial Survival Network dot com. 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