1 00:00:00,520 --> 00:00:04,559 Two things are causing people to pull money out of large commercial banks. So 2 00:00:04,799 --> 00:00:07,400 the banking problems you had earlier in the year, I think may have scared 3 00:00:07,400 --> 00:00:10,439 people a little bit as to the solvency of the banking system. But I 4 00:00:10,439 --> 00:00:15,400 think this deposit gap is forcing people to pull their cash and liquid deposits out 5 00:00:15,400 --> 00:00:20,399 of commercial banking system seeking higher interest rates elsewhere. And also a third reason, 6 00:00:20,480 --> 00:00:24,719 the general economy is a little bit tougher on the lower middle classes so 7 00:00:24,760 --> 00:00:28,000 that they have less correstionairy and capital Sam maybe point Cerre and paus out. 8 00:00:28,039 --> 00:00:32,880 For that reason, you're listening to Carrie Lets's Financial Survival Network where you get 9 00:00:32,960 --> 00:00:38,799 valuable information you just can't find anywhere else to thrive in today's trying times. 10 00:00:38,799 --> 00:00:44,840 You need the Financial Survival Network now more than ever. Go to Financial Survival 11 00:00:44,840 --> 00:00:51,359 and Network dot com and get your free newsletter in gift Financial Survival Network now 12 00:00:51,840 --> 00:00:59,960 more than ever, And welcome. You are listening to watching the Financial survive 13 00:01:00,159 --> 00:01:03,879 Will Network. I'm your host, Carry Lutts and what is going on in 14 00:01:03,879 --> 00:01:07,319 the world. A good friend, Rock Kins is with us and now, 15 00:01:07,840 --> 00:01:14,879 and of course you find him at Gold Silver Pros dot com. Rock It's 16 00:01:14,920 --> 00:01:19,599 always great to have you on the show. So we're talking pre cool banking 17 00:01:19,640 --> 00:01:23,920 crisis. What is going on in the banks, How serious do you think 18 00:01:23,959 --> 00:01:30,840 it is? And is it time to really start hoarding bitcoin and precious metals. 19 00:01:32,400 --> 00:01:34,319 Well, always a pleasure to be on your show. Carry you do 20 00:01:34,359 --> 00:01:38,159 such great content, and appreciate that very much. I know, being a 21 00:01:38,159 --> 00:01:41,640 content credit, it takes such tremendous amount of work, So I definitely appreciate 22 00:01:41,640 --> 00:01:44,959 everything that you guys do over there. Yeah, the banking crisis, you 23 00:01:45,000 --> 00:01:49,400 know, I was looking post the problems we had in the spraying. I've 24 00:01:49,400 --> 00:01:52,959 been doing some investigations in the banking and just looking at the health of it, 25 00:01:53,079 --> 00:01:57,000 and you know, the liquidity ratios are being stressed, meaning the amount 26 00:01:57,040 --> 00:02:02,519 of free capital the banks have in order to stay liquid during times of distresses 27 00:02:02,599 --> 00:02:07,199 going down. A lot of what's happening is this what would call the deposit 28 00:02:07,240 --> 00:02:10,680 gap. So if you think about interest rates for a moment, we all 29 00:02:10,719 --> 00:02:14,759 know that the Federal Reserve has been raising interest rates here for quite a while 30 00:02:15,199 --> 00:02:17,719 and it's causing you know, it's caused a little bit of financing troubles and 31 00:02:17,719 --> 00:02:21,639 the counting people of paying higher interest rates for real estate and things like that. 32 00:02:22,000 --> 00:02:25,960 And as those interest rates rise, products that consumers may buy, like 33 00:02:27,039 --> 00:02:30,599 automobiles or homes or things like that, come with higher interest rates. Naturally 34 00:02:30,639 --> 00:02:34,639 they filter through the system when it starts at the FED. The problem is 35 00:02:34,719 --> 00:02:38,719 the banking system is not providing their depositors. The commercial banking is not providing 36 00:02:38,719 --> 00:02:44,719 their depositors with similar increases. So you have this deposit gap. And I 37 00:02:44,759 --> 00:02:50,159 believe two reasons. Two things are causing people to pull money out of large 38 00:02:50,159 --> 00:02:53,520 commercial banks. So the banking problems had earlier in the year, I think 39 00:02:53,560 --> 00:02:57,000 may have scared people a little bit as to the solvency of the banking system. 40 00:02:57,039 --> 00:03:00,199 But I think this deposit gap is forcing people to pull their cash and 41 00:03:00,319 --> 00:03:05,439 liquid deposits out of the commercial banking system, seeking higher interest rates elsewhere. 42 00:03:05,719 --> 00:03:09,319 And also a third reason, the general economies a little bit tougher on the 43 00:03:09,400 --> 00:03:14,280 lower middle classes so that they have less correctionairy and capital sand maybe points or 44 00:03:14,400 --> 00:03:16,400 posit out for that reason. But in any case, what this led to 45 00:03:16,919 --> 00:03:22,120 since April of last year, a little over a year now, we've had 46 00:03:22,319 --> 00:03:27,719 an outflow of almost a tree in dollars from the large commercial banks. An 47 00:03:27,680 --> 00:03:30,919 additional you know, several hundred bigion from the small commercial banks. So we're 48 00:03:30,919 --> 00:03:34,560 sending it about a treeon or so dollars being pulled out of the commercial banking 49 00:03:34,599 --> 00:03:38,199 sector in terms of customer deposits, and so now the banks don't have those 50 00:03:38,199 --> 00:03:42,599 customer deposits. Well, what a banks use customer deposits for. They take 51 00:03:42,639 --> 00:03:49,800 the money in and then they refinance or relend it out for higher rate investments 52 00:03:49,800 --> 00:03:53,680 that are often longer term. So you know a lot of people talk about 53 00:03:53,680 --> 00:03:58,759 this. You have the promise to pay on customer deposits is a shorter term, 54 00:03:58,800 --> 00:04:00,000 but when you lend money out as a thank you have a longer term 55 00:04:00,039 --> 00:04:03,759 commitment to get that you get that money back. And so you have this 56 00:04:04,240 --> 00:04:08,960 deposit gap between the interest rates of what the banks are taking in and giving 57 00:04:08,960 --> 00:04:11,000 out. And people are noticing it and say, hey, wait a minute, 58 00:04:11,319 --> 00:04:13,280 if you're not going to give us a higher interest rate of my money, 59 00:04:13,280 --> 00:04:16,360 I'm going to go put it over here. And that's reducing equity ratios 60 00:04:16,399 --> 00:04:20,120 at the banks. And when you look at you know, loan to value 61 00:04:20,199 --> 00:04:24,000 ratios. You look at silver Gate Bank and SVB, they were in the 62 00:04:24,040 --> 00:04:27,120 ninety percent. Well, there are a couple other banks in that range. 63 00:04:27,160 --> 00:04:30,120 But if you look at the overall large commercial banking sector, we're at seventy 64 00:04:30,160 --> 00:04:32,319 eight point eight percent as of like a month ago. It's probably close about 65 00:04:32,360 --> 00:04:35,680 eighty percent, and that's kind of a danger zone. At this point, 66 00:04:35,720 --> 00:04:40,519 the large commercial banks are sort of in a little bit of distress. And 67 00:04:40,800 --> 00:04:46,040 the second point that I'd like to make is that the amount of uninsured deposits, 68 00:04:46,079 --> 00:04:48,920 either those above two or fifty thousand or those that may not qualify for 69 00:04:48,959 --> 00:04:55,680 like FDIC insurance, has gone up and it's slightly over fifty percent. So 70 00:04:55,800 --> 00:04:58,279 there are two problems if you're a depositor in a bank. One, you're 71 00:04:58,279 --> 00:05:01,160 not getting the interest rate to the risk of the bank operations is going up, 72 00:05:01,199 --> 00:05:08,079 and three, having issues with your deposit may not be ensured. And 73 00:05:08,240 --> 00:05:11,319 what this has caused the commercial banks to do is go out to the wholesale 74 00:05:11,319 --> 00:05:15,480 funding market and increase their wholesale funding. Well, so they can get cash 75 00:05:15,720 --> 00:05:18,920 to fund operations through wholesale funding, but there's often an interest rate attached to 76 00:05:18,959 --> 00:05:21,879 that, so now they have another liability which they couldn't pay for in the 77 00:05:21,879 --> 00:05:26,240 first place. You know, that's why they had to go get wholesale funding, 78 00:05:26,240 --> 00:05:30,839 so it leads to this banking spiral, and I suspect that that's going 79 00:05:30,879 --> 00:05:32,879 to come to fruition sooner rather later. And I don't know whether we're going 80 00:05:32,959 --> 00:05:35,759 to have wholesale defaults in the banking system, but it sure looks like the 81 00:05:35,800 --> 00:05:40,279 banking sector is not super healthy, and actually it's probably a little bit less 82 00:05:40,279 --> 00:05:42,959 healthy even than it was in the spring when we had all of those bank 83 00:05:43,000 --> 00:05:46,959 failures. First Republic, so we get SVP and I think also credit suites 84 00:05:46,040 --> 00:05:49,680 across the pond had some issues. So the US banking system is in a 85 00:05:49,680 --> 00:05:56,240 bit of trouble and be interesting to see if policymakers formally recognize that and maybe 86 00:05:56,519 --> 00:05:59,680 is there anything that they can do to help shore up help the banks shore 87 00:05:59,720 --> 00:06:01,920 up the balance sheets a little bit more. Well, I think that last 88 00:06:02,079 --> 00:06:09,399 to take under the Bank of California showed that they've gotten their act together, 89 00:06:10,079 --> 00:06:16,920 And basically what it tells me is that all all deposits are implicitly guaranteed by 90 00:06:16,959 --> 00:06:21,879 the US government and that they're not going to make the same mistake that they 91 00:06:23,000 --> 00:06:28,600 made with SVB, where you know, like every banking crisis, the initial 92 00:06:28,680 --> 00:06:31,560 responses, we're not going to bail out the banks. You know, we're 93 00:06:31,600 --> 00:06:33,920 not going to do it. We're not going to do it. And then 94 00:06:34,000 --> 00:06:38,399 they see a loss of confidence and then they said, well, of course 95 00:06:38,439 --> 00:06:43,079 we're going to bail out the depositors, and that's where we wind up. 96 00:06:44,079 --> 00:06:46,959 But they have to learn the lessons from the last failure. You know, 97 00:06:47,279 --> 00:06:54,839 they had to bailed out to bear Stearns and Lehman. We wouldn't even be 98 00:06:54,879 --> 00:07:00,319 talking about what happened last time. But the fact that they didn't and they 99 00:07:00,319 --> 00:07:04,040 shut them down, they drew that line in the sand, really led to 100 00:07:04,079 --> 00:07:09,839 a massive loss of confidence in the system. And the rest is history. 101 00:07:10,360 --> 00:07:16,199 So they never learned this because look, you've got fractional reserve banking and you've 102 00:07:16,199 --> 00:07:21,879 got banks of borrowing short and lending long. It's what they always do, 103 00:07:23,439 --> 00:07:29,759 and they always get banged up when rates reverse, when the yield curve reverses. 104 00:07:30,319 --> 00:07:32,920 And this time is no different than the other, except that I think 105 00:07:33,160 --> 00:07:38,600 the government put on faster. Maybe there are bailouts. Let me ask get 106 00:07:38,639 --> 00:07:43,439 your opinion. Do you think there's bailouts taking place behind the scenes. We 107 00:07:43,480 --> 00:07:47,480 don't even know about. We know that the special discount window, emergency funding 108 00:07:49,120 --> 00:07:54,639 has been lending at record levels. Well there, Yeah, it's funny when 109 00:07:54,639 --> 00:07:57,720 you get into high finance, so the banking system it gets super complicated. 110 00:07:57,800 --> 00:08:01,879 Like I know that the FED had increased the amount of high quality liquid assets 111 00:08:01,920 --> 00:08:05,759 that they were putting into, like the repo market, which is a way 112 00:08:05,759 --> 00:08:09,879 for people to borrow, you know, intra day to fund operations. But 113 00:08:09,000 --> 00:08:13,000 you can only do so you know so much of that. And I do 114 00:08:13,160 --> 00:08:18,319 think that the signal from the FDIC and the FED for the banking failures in 115 00:08:18,360 --> 00:08:22,879 the spring was that they did want to back depositors, but the investors, 116 00:08:22,920 --> 00:08:26,079 the bondholders and the shareholders got kind of got the shaft, to be honest 117 00:08:26,120 --> 00:08:28,680 with you, so that's the way they did it. They said, well, 118 00:08:28,839 --> 00:08:31,800 we got to pick or poison here, And I do believe what you 119 00:08:31,800 --> 00:08:33,399 said. They're going to try to back depositors. The problem with like the 120 00:08:33,440 --> 00:08:39,879 FDIC, they only carry about one percent coverage when you compare it to all 121 00:08:39,919 --> 00:08:43,559 the deposits in their commercial banks, So they can't bail out one hundred percent 122 00:08:43,000 --> 00:08:46,080 even if they wanted to, unless the FED steps in and just either prints 123 00:08:46,080 --> 00:08:50,399 money or does you know something else or I suspect what will happen is we 124 00:08:50,399 --> 00:08:54,440 have more bank failures, you're going to have the big guys probably come in, 125 00:08:54,519 --> 00:08:58,720 like the JP Morgan's and those guys probably offer, you know, much 126 00:08:58,759 --> 00:09:01,279 like they did during the lema An issue, to take over some of those 127 00:09:01,559 --> 00:09:05,759 those distress assets. The question is how contagious is this and where the policymaking 128 00:09:05,799 --> 00:09:09,519 tools be strong enough? And honestly, I don't know. I have some 129 00:09:09,600 --> 00:09:13,639 concerns about that. How much you know, if it turns into a contagion, 130 00:09:13,759 --> 00:09:18,000 I think the stresses could be pretty strong and the policymakers could be put 131 00:09:18,080 --> 00:09:22,759 in a really difficult position, you know, telling the public what they're able 132 00:09:22,759 --> 00:09:24,799 to do and what they're not. Hopefully this doesn't lead to downward spiral, 133 00:09:26,120 --> 00:09:31,159 you know, and that's enough to help consumer confidence. But honestly, I 134 00:09:31,200 --> 00:09:35,080 don't know the answer to that question. So getting back, you know, 135 00:09:35,200 --> 00:09:41,000 this is a tale of two cities here our economy the low tax states. 136 00:09:41,120 --> 00:09:45,120 We don't even need to get into politics. All we have to do is 137 00:09:45,200 --> 00:09:52,919 just look at the economic markers indicators issues right places like Florida, Texas, 138 00:09:54,679 --> 00:10:03,919 low regulation, business friendly climate, developer friendly climate, and low taxes, 139 00:10:03,120 --> 00:10:11,559 no state income tax, personal minimal business income taxes, you know, they're 140 00:10:11,320 --> 00:10:16,639 and the real estate in these markets is booming, and you could make an 141 00:10:16,720 --> 00:10:20,960 argument that the freedom index is certainly higher in these states as well. And 142 00:10:22,039 --> 00:10:26,559 there's a number of states. There's Tennessee, there's a lot of states that 143 00:10:26,679 --> 00:10:33,039 are thriving right now. And then you've got the other mush high tax states 144 00:10:33,639 --> 00:10:41,039 with very misguided policies, you know, benefits going out to the wazoo. 145 00:10:41,639 --> 00:10:48,639 All of that. It amazes me because the first thing that you look at 146 00:10:48,679 --> 00:10:54,240 when they raise rates is real estate prices go down almost invariably, and we've 147 00:10:54,240 --> 00:11:00,919 had a rapid increase in rates from three percent are less mortgages to seven and 148 00:11:01,000 --> 00:11:07,200 yet people pursuing lower taxes. So maybe you're going to pay ten thousand dollars 149 00:11:07,320 --> 00:11:11,519 more per year in higher interest rates, But on the other hand, that's 150 00:11:11,559 --> 00:11:18,600 going to be deductible for the most part, and you're going to be giving 151 00:11:18,679 --> 00:11:24,519 up the virtues of paying a state income tax to places like California and New 152 00:11:24,559 --> 00:11:26,759 York. So you still come out ahead on the deal, Rob Right, 153 00:11:28,200 --> 00:11:30,840 Yeah, I you know, I think you do. And there's been this 154 00:11:30,919 --> 00:11:33,000 massive migration over those types of states. Of course, I live in one 155 00:11:33,000 --> 00:11:37,600 that's generally considered business friendly, lower tax in the state of Texas. I 156 00:11:37,639 --> 00:11:39,559 live in the North Texas area Dallas for earth, which is the fastest growing 157 00:11:39,559 --> 00:11:45,639 metropolitan area in the United States, and I can tell you that there there 158 00:11:45,679 --> 00:11:50,519 are positive signs of growth, also stressful signs, but positive around construction, 159 00:11:50,559 --> 00:11:54,720 build of highways. Real estate is booming. I used to be a real 160 00:11:54,799 --> 00:12:00,480 estate investor from twenty two eighteen here in North Texas, and I could buy 161 00:12:00,799 --> 00:12:05,279 a three two single family home, moderate quality built seventies eighties, you know, 162 00:12:05,279 --> 00:12:09,279 pretty typical for this area for anywhere from ninety two hundred and fifty thousand, 163 00:12:09,320 --> 00:12:13,559 depending upon certain local factors. Now that real estate goes from three fifty 164 00:12:13,559 --> 00:12:18,600 to five hundred, and we're talking modests that we're not talking new build, 165 00:12:18,120 --> 00:12:22,919 we're not talking natash Mahal And for Texas, that's a lot. It may 166 00:12:22,000 --> 00:12:24,519 not seem like a lot of some of losing in New York of California, 167 00:12:24,600 --> 00:12:28,960 but you know when when real estate triples in the matter of five to six 168 00:12:30,039 --> 00:12:33,679 years, the average home, how did these these young kids get into the 169 00:12:33,679 --> 00:12:37,759 starting home. They can't afford it because now those homes are as expensive as 170 00:12:37,279 --> 00:12:41,600 their parents. What their parents bought their luxury houses at and so it's without 171 00:12:41,639 --> 00:12:46,679 the wages going up correspondingly, and wage rates haven't risen quite as much. 172 00:12:46,679 --> 00:12:48,279 So we're still in a better position made those other states. But it does, 173 00:12:48,480 --> 00:12:50,759 you know, provide some stress. The good news is, if you're 174 00:12:50,759 --> 00:12:54,519 doing real estate, you're doing very well. I almost wish I hadn't sold 175 00:12:54,559 --> 00:12:56,720 the last of my property in twenty teens, just held them for a couple 176 00:12:56,759 --> 00:12:58,960 more years. I you know, maybe I could have retired just off that 177 00:13:00,120 --> 00:13:05,080 alone. The boom has been unimaginable. But the flip side that token has 178 00:13:05,120 --> 00:13:07,799 rents have also risen, so for those that lower incomes, it's a little 179 00:13:07,799 --> 00:13:11,960 bit more stressful. So it depends upon what part of income struta you're at. 180 00:13:11,080 --> 00:13:13,440 It could be a positive or a negative. But in general, these 181 00:13:13,440 --> 00:13:18,600 stakes are doing much better. There are more tax receipts. There's the school 182 00:13:18,600 --> 00:13:22,039 systems are flush with money. The average teacher here in North Texas now is 183 00:13:22,039 --> 00:13:26,320 making you know, sixty five to seventy thousand dollars, and those salaries have 184 00:13:26,440 --> 00:13:28,360 risen. So there are benefits to that, I mean there are. It 185 00:13:28,399 --> 00:13:33,480 does. It has definitely helped, but you know, we're also talking about 186 00:13:33,519 --> 00:13:37,120 social services. I'm going through a permitting process right now for a project, 187 00:13:37,240 --> 00:13:41,279 and you know, it's taking a very long time because there's so much growth 188 00:13:41,279 --> 00:13:43,799 in so much demand. So I think there are positive negatives to it. 189 00:13:43,799 --> 00:13:46,480 But yes, we definitely see those populations moving to those areas, and it's 190 00:13:46,480 --> 00:13:50,799 been generally pretty positive for people there, and I don't think that's going to 191 00:13:50,879 --> 00:13:54,039 stop. I suspect if Dallas Were Worth continues to grow like it is, 192 00:13:54,279 --> 00:13:58,480 you're going to see almost one long continuous city from the border of Texas, 193 00:13:58,519 --> 00:14:03,080 Oklahoma down to Central Texas here within the next fifteen to twenty years. I 194 00:14:03,080 --> 00:14:07,799 mean that entire north central Texas area is becoming a single giant metropolitan area. 195 00:14:07,919 --> 00:14:13,080 Honestly. Yeah. Yeah, Well, I've been to yours fair Estate many 196 00:14:13,120 --> 00:14:16,360 a time and had family in Dallas. You know, they call it the 197 00:14:16,480 --> 00:14:22,799 Metroplex. You know, you go, you go to downtown Miami here up. 198 00:14:22,960 --> 00:14:26,240 I mean, it looks like Beijing with all the well what Beijing looked 199 00:14:26,279 --> 00:14:28,879 like ten years ago. Now all the cranes are falling down in Beijing. 200 00:14:30,360 --> 00:14:35,399 But you know it's how you know, high rise is going up left and 201 00:14:35,559 --> 00:14:41,600 right. I mean, they're to the point now where the land has become 202 00:14:41,679 --> 00:14:46,720 scarce, so they're like ripping stuff down and on occasion you have a high 203 00:14:46,840 --> 00:14:50,200 rise will fall down on its own and then that gets recycled too, So 204 00:14:50,399 --> 00:14:54,480 yeah, that happens. And office space in dallas Worth has been absolutely you 205 00:14:54,519 --> 00:15:00,480 know, exploding everywhere I look, especially you know, Amazon and House a 206 00:15:00,600 --> 00:15:03,639 big distribution center here, probably about three or four miles from where I live. 207 00:15:03,840 --> 00:15:07,519 And the amount of warehouse because I live near DFWA Airport and the amount 208 00:15:07,639 --> 00:15:13,799 of just warehousing space has exploded around there. If you're if you're building warehouse 209 00:15:13,799 --> 00:15:16,960 space and North Texas, you're going to do very, very well because a 210 00:15:16,960 --> 00:15:18,559 lot of companies are using daals Forth as a distribution point. Of course, 211 00:15:18,600 --> 00:15:22,840 the airport is connected to you know, you've got direct flights to most places 212 00:15:22,879 --> 00:15:26,799 in the world from DFW, So it's a great spot, you know, 213 00:15:26,799 --> 00:15:31,679 if you're a business owner or if you want jobs in and around that industry, 214 00:15:31,120 --> 00:15:33,960 it's a great place to be honestly right now, you know it's amazing 215 00:15:35,159 --> 00:15:41,840 is the growth of Florida has actually led to a resurgence of passenger rail because 216 00:15:41,000 --> 00:15:46,240 we have, just like you do, horrid traffic and now they've built this 217 00:15:46,279 --> 00:15:52,440 thing called the Bright Line, a quote unquote public private partnership. But they've 218 00:15:52,919 --> 00:15:56,360 they've put a new rail and it's going to go all the way from Miami 219 00:15:56,840 --> 00:16:03,080 to Orlando to the airport there and get you there within a couple of hours. 220 00:16:03,919 --> 00:16:11,759 And yet pretty pretty amazing. What's what's taking place because the traffic gets 221 00:16:11,799 --> 00:16:15,759 so bad that passenger rail expensive passenger rail. It's gorgeous. I mean, 222 00:16:15,799 --> 00:16:19,639 it's clean. You can eat off the floors of the trains and the stations. 223 00:16:21,200 --> 00:16:23,759 Robert, It's it's amazing that we could actually do it. It's not 224 00:16:23,840 --> 00:16:33,080 particularly safe because it's traveling on on on cargo rail tracks and we have hundreds 225 00:16:33,080 --> 00:16:37,639 and hundreds of grade crossings with gates, and you know, people get killed. 226 00:16:37,679 --> 00:16:41,720 But uh, you know people get killed on the highway all day long 227 00:16:41,840 --> 00:16:48,480 too, in Florida and in Texas. So it's interesting that this growth can 228 00:16:48,559 --> 00:16:53,519 actually lead back to the past. Kind of the glory days of rail travel 229 00:16:53,600 --> 00:16:57,559 are coming back again. Yeah, and the same things happened in North Texas. 230 00:16:57,639 --> 00:17:02,879 We have a very rapid trains that believes the overall organization, and they've 231 00:17:02,919 --> 00:17:07,319 connected the airport the two downtowns for Worth in Dallas, and a lot of 232 00:17:07,359 --> 00:17:10,880 the mid cities together and where I used to live a little bit different part 233 00:17:10,920 --> 00:17:14,359 of the metroplex. There are passenger trains that come by almost one hundred a 234 00:17:14,440 --> 00:17:18,960 day now it's like four or five an hour just zooming by. And they're 235 00:17:18,079 --> 00:17:23,240 using you know, the commercial rail system to do that. And these are 236 00:17:23,359 --> 00:17:30,759 modern, beautiful passenger rail systems. And the challenge with North Texas is so 237 00:17:30,839 --> 00:17:34,119 sprawling, it's harder to run buses in that type, but with rail you 238 00:17:34,119 --> 00:17:37,880 can tend to move a lot of people. There's also one other thing called 239 00:17:37,880 --> 00:17:41,119 the Trinity Railway Express Trinity as a Trinity River here in North Texas that connects 240 00:17:41,160 --> 00:17:47,759 Dallas and Fort Worth on a double decker a passenger train that looks like a 241 00:17:47,799 --> 00:17:49,720 freight train. I mean it's huge, and the amount of people that they're 242 00:17:49,759 --> 00:17:55,000 able to move as quite substantial. So we have seen that as well increased 243 00:17:55,079 --> 00:17:59,240 rail. And I will say this in North Texas, the traffic has gotten 244 00:17:59,279 --> 00:18:03,400 very heavy so much. You know, like now six thirty five, which 245 00:18:03,400 --> 00:18:10,079 is a main artery connecting North Dallas, it's basically like a loop as now 246 00:18:10,119 --> 00:18:14,119 double decker much like you used to see in La for example. So all 247 00:18:14,160 --> 00:18:17,400 of our highway systems now, you know, are being upgraded as well. 248 00:18:17,480 --> 00:18:21,640 So a tremendous amount of infrastructure development here in North Texas. Yeah, same 249 00:18:21,680 --> 00:18:27,359 here. You know, highways in Florida are constantly being widened under construction. 250 00:18:27,839 --> 00:18:33,759 It's it's really amazing. I've never seen anything like it, and I've been 251 00:18:33,799 --> 00:18:41,000 coming to Florida my entire adult life, so you know, it's it's really 252 00:18:41,079 --> 00:18:45,559 kind of amazing to see. All right, So where do you put your 253 00:18:45,559 --> 00:18:49,519 money? How do you how do you defend yourself against what's happening now? 254 00:18:51,599 --> 00:18:55,920 Well, I think with high inflation, it's brought people into looking at quote 255 00:18:55,960 --> 00:19:00,680 unquote alternative investments, and I'll define as anything other than your typical stock bond, 256 00:19:00,920 --> 00:19:04,039 you know, sixty forty type of portfolio. Of course, bitcoin did 257 00:19:04,119 --> 00:19:07,039 very well, it's at sixty thousand, I guess before you know, crypto 258 00:19:07,119 --> 00:19:11,640 winner. It hasn't quite recovered, but there is more support into the crypto 259 00:19:11,680 --> 00:19:14,880 space. Gold silver, of course, you know, the one thing I 260 00:19:15,000 --> 00:19:18,079 kind of called that's my niche or my specialty is gold and silver. I 261 00:19:18,200 --> 00:19:21,799 did. I did used to have other financial licenses, but I left that 262 00:19:22,000 --> 00:19:26,960 behind many many years ago. Good move. But the gold silver marks. 263 00:19:26,960 --> 00:19:30,359 I kind of called it at the beginning of the summer. I wrote an 264 00:19:30,440 --> 00:19:33,839 article for jam Bowen, which I do regular content there, and I said, 265 00:19:33,839 --> 00:19:36,799 I don't think this summer we're going to get the usual fade and gold 266 00:19:36,839 --> 00:19:40,920 and silver prices we typically do. Of course in the summertime, it's kind 267 00:19:40,920 --> 00:19:44,920 of the mantra of selling main go away until school starts again late August is 268 00:19:45,000 --> 00:19:48,759 September. People tend to go to the beaches or vacation and be a little 269 00:19:48,759 --> 00:19:52,400 bit more conservative for their investments and part money certain places. So a lot 270 00:19:52,400 --> 00:19:56,039 of the financial markets are not quite as frothy unless there's something big going on 271 00:19:56,079 --> 00:19:59,119 the economy, and typically gold and silver of fade a little bit, and 272 00:19:59,160 --> 00:20:00,920 we have not had that fate of anything. Gold and silver have held serve 273 00:20:02,000 --> 00:20:03,640 over the week is, you know, traditionally the weakest part of the year. 274 00:20:04,240 --> 00:20:07,359 And not only that, we've seen a massive silver specifically, you've seen 275 00:20:07,359 --> 00:20:11,720 a massive amount of silver come out of the UK market, the industrial side, 276 00:20:12,200 --> 00:20:15,519 and it appears a lot of that's made its way to the to the 277 00:20:15,599 --> 00:20:18,319 US. So there's a lot of pool in the US now on the precious 278 00:20:18,319 --> 00:20:23,000 medals. Not only the paper derivative complex, which is what determined spot pricing, 279 00:20:23,000 --> 00:20:26,119 but also the physical metals themselves, and so there has been a little 280 00:20:26,160 --> 00:20:30,799 bit of a resurgence and precious metals investment here in the US. And so 281 00:20:30,839 --> 00:20:33,400 I think specifically the younger generations. There was an article on y'all who finance? 282 00:20:33,440 --> 00:20:38,200 It came out put out by State Street, and there was a study 283 00:20:38,200 --> 00:20:44,480 done by SPDR that does GLDNSLV, which are gold and silver ETF investments and 284 00:20:44,519 --> 00:20:47,680 a lot of other ETFs, and they did a survey of their users and 285 00:20:47,720 --> 00:20:51,400 millennials are putting more money into gold and silver than my generation Gen X or 286 00:20:51,480 --> 00:20:55,480 the boomers. They're now a seventeen percent of allocation of their money is going 287 00:20:55,480 --> 00:21:00,759 into like GLD or SLV. And you know people are when I say that, 288 00:21:00,839 --> 00:21:03,640 they're like, don't they invest in bitcoint stuff? Yes, they are, 289 00:21:03,680 --> 00:21:06,160 but because a crypto winner, I think some of that money went back 290 00:21:06,200 --> 00:21:08,920 to gold. So that's a reversal, you know, from the last financial 291 00:21:08,960 --> 00:21:15,680 crisis to about the pandemic. I would say the younger generations who are more 292 00:21:15,680 --> 00:21:18,440 into bitcoin, and I'm investment clubs and they always talked about bitcoin. They 293 00:21:18,440 --> 00:21:22,519 also talked about digital investments, even stuff like you know, Wall Street bets 294 00:21:22,960 --> 00:21:26,720 and those types of things. But now that generation starting to move over to 295 00:21:26,759 --> 00:21:29,720 gold, and that's a very positive sign that they're looking at some of those 296 00:21:29,720 --> 00:21:33,640 more traditional term of investments that you know, the older generations are more comfortable 297 00:21:33,640 --> 00:21:36,279 with, although more in a paper format. I think, what's going to 298 00:21:36,319 --> 00:21:38,200 happen when we get to the next recession. Finally, because this is what 299 00:21:38,200 --> 00:21:41,359 happened in my generation during two thousand and eight, we went from buying things 300 00:21:41,359 --> 00:21:45,960 like GLD and SLV to buying physical gold and silver. And I think what's 301 00:21:45,960 --> 00:21:48,160 going to happen to millennials during the next recession. They're going to trade out 302 00:21:48,200 --> 00:21:52,319 some of their paper gold and silver investments and go buy the physical if the 303 00:21:52,359 --> 00:21:55,079 pattern holds, and I think that that's coming. So I think from the 304 00:21:55,079 --> 00:21:57,319 physical side of the gold and silver market, they're about to get a lot 305 00:21:57,359 --> 00:22:02,480 of support from these younger generations saying we're looking at the banking system, we're 306 00:22:02,519 --> 00:22:06,920 looking at inflation, we're looking at job availability, and you know, we 307 00:22:06,960 --> 00:22:10,039 want to do something to protector, you know, our long term financial futures. 308 00:22:10,160 --> 00:22:14,920 All right, I think that kind of sums it up. Everything old 309 00:22:15,160 --> 00:22:21,440 is eventually new again. You know, the younger generations always rediscover what the 310 00:22:21,480 --> 00:22:26,640 older generations new and often forgot or neglected. I think we're going to see 311 00:22:26,680 --> 00:22:29,920 that here. Hey, Rob, tell us the best place to find you 312 00:22:30,039 --> 00:22:32,920 and best way to connect with you on the web. Yeah, easiest place 313 00:22:33,000 --> 00:22:36,119 just go to gold Silver Pros dot com. We're a social media business, 314 00:22:36,119 --> 00:22:37,920 so that's a landing spot for all our social media and find us on YouTube, 315 00:22:37,920 --> 00:22:41,920 Twitter, read it and other places like that. But if you just 316 00:22:41,960 --> 00:22:45,039 go to our website goalsverpros dot com, it's an easy way to reach us. 317 00:22:45,079 --> 00:22:49,640 Excellent. The link is in the show notes this interview on Financial Survival 318 00:22:49,720 --> 00:22:53,359 Network dot com. While you're there, please sign up for your free newsletter 319 00:22:53,839 --> 00:22:59,519 and of course send me an email. Got a question for Rob or myself, 320 00:22:59,559 --> 00:23:03,839 We'll get an answer. K l at kryltz dot com. Rob always 321 00:23:03,839 --> 00:23:06,920 a pleasure, Thanks for stopping by. Thank you, Carry appreciate it very 322 00:23:06,960 --> 00:23:11,519 much. Thanks for listening to carry Lets's Financial Survival Network, your solution to 323 00:23:11,599 --> 00:23:18,119 today's trying times. For the latest, go to Financial Survival Network dot com. 324 00:23:18,119 --> 00:23:21,960 Financial Survival Network now more than ever