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If we look at GDP and the
inflation numbers, you know, if we

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use the same math and formula that
we use back in you know, in

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the eighties under Reagan, you know, I think we'd have different numbers.

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So it's it's hard to kind of
figure out what's real and what's not a

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little bit and that's the most unnerving
thing. While we're looking at all the

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debt, all the other issues that
we're facing. Right now, you're listening

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to Carrie Letts's Financial Survival Network where
you get valuable information you just can't find

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00:00:29,039 --> 00:00:35,119
anywhere else to thrive in today's trying
times. You need the Financial Survival Network

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now more than ever. Go to
Financial Survival and Network dot com and get

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00:00:40,159 --> 00:00:50,200
your free newsletter and gift. Financial
Survival Network now more than ever. And

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welcome you are watching listening to the
Financial Survival Network. I'm your host,

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Carrie Letts. Well, we just
got a surprise GDP print two point one

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percent at the days are here again. A will have said to use it

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as a pretext to raise That remains
the question Eddie Sidell has the answers,

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Eddie, great to have you back
on. So Hey, thanks for having

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me. So what about this number
here, I you know, not surprising,

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you know, like like we were
talking about just a couple of minutes

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ago. I'm not shocked. I
think a lot of people are. You

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know, EA's with the dollar and
the math, none of the math is

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making sense. I mean when you
think about with bricks, the US dollar

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now, you know, increasing in
value, you know, from where it

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did below one hundred two. I
looked earlier today it was one oh four.

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I'm not exactly sure where it is
right now. You know, none

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of the things are making sense except
for what Pal said, not so much

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that it made sense, but he's
he's already kind of pigeonholed the FEDS and

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what the monetary policy is going to
be because he said he's going to hold

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true and fast that two percent mark. And so if he does that,

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you know that means there's going to
be a twenty five basis point raise and

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maybe one more, even though it's
it's lagging. But you know, again,

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if we look at GDP and the
inflation numbers, you know, if

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we use the same math and formula
that we use back in you know,

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in the eighties under Reagan, you
know, I think we'd have different numbers,

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So it's it's hard to kind of
figure out what's real and what's not

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a little bit and and that's the
most unnerving thing when we're looking at all

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the debt, all the other issues
that we're facing right now. Yeah,

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so do you think that really gives
them a basis if you will, to

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raise rates, because look, the
two year is U is well ahead,

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it's at said funds rate is well
ahead of the two year treasury, which

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they yeah begging. So the two
year, you know, the two year

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treasury is down at like four eighty
five. Maybe it's gone higher after after

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this number came out. I haven't
seen it yet, but is that the

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that is the question here is is
that is that going to lead them to

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raise rates again or do they just
leave it for the time being an ope

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for the best, you know,
whether they raise it quarter percent or not.

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You know, the market's already kind
of braced it in a little bit.

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You know, the market's reacting to
the the not as good news for

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the GDP number. So you know, it looks like we could finish another

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positive day for the third day in
or row for the markets. But you

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know, again, I would be
shocked if the Feds actually pause and don't

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raise rates. You know, I
think if they if they pause, it's

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going to inflation is going to come
roaring back. And it's already here.

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I mean, look, we're spending
over five billion dollars a day. It's

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actually more than that. If you
look, if you go back and you

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look at when we actually broke thirty
two trillion in UH in our in our

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national debt, it's been you know, roughly seventy five eighty days. And

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at that rate, you know we're
gonna overspend. We're gonna have definite spending

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in excess of three trillion dollars a
year. That in itself is inflationary.

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I think the other things that power
are is looking at. It's wage increase.

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You know, you've got these large
unions that are renegotiating contracts, you

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know, for increased salaries and wages, and so that's creating a lot more

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pressure upward pressure on inflation. So
I think he's looking at everything as a

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whole instead of just you know,
the Fed funds rate at five and a

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half versus the two year treasury And
you know, I don't think he's going

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to put a whole lot of stock
into the GDP number being two point one

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perc. You know, I you
know, honestly, I think he's going

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to be looking at everything, and
if he doesn't, you know, inflation

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is going to come back. You
know. The big concern for me is

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how long are we going to keep
rates where they're at? And is the

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election next year going to be a
determining factor that says, you know,

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let's go ahead and lower rates one
time? Because you know, James Carvill

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said the best right, it's about
the economy stupid. So they're I think

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they're looking at this, even though
they're trying not to be political. I

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think they can't help but be so
all right, so you think it's going

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up, then anyway they'll because they've
got a free ride to do it because

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the market has been going back up
and so he's just gonna do it.

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But really, are they really shooting
for two percent inflation here? Eddy?

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I don't know how they're going to
do it. You know, it's you

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know, more than one in a
quarter below the hundred year average. I

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mean, I just don't see how
it makes sense. And if they do,

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and they keep pushing it, they're
going to have to reason rates to

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a point where you know it could
wind up breaking the economy. You know,

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you've got debt at all time record
highs across the board. A credit

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card debt is over a trillion,
You've got revolving debt can skip me over

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one point three trillion. Student loans
are coming due October one of this year.

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People are going to have to start
making payments on it. You know,

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we're getting a lot of jobs that
are coming out, but they're mainly

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in retailing, the service industry.
And you know, we've talked about this

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before. In my opinion, you
know, I think those are more you

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know, second and third jobs.
They're definitely not those high paying career jobs

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that most people are looking for by
benefits. So you know, I heard

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a phrase and I really like it. It's called the silent recession. You

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know, I think that we're people
are feeling it right now. The paint

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at the pumps, you know,
they're they're struggling to pay all their bills

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at the end of the month.
And uh, and I think we're I

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think we're in for a long haul. I do. Okay, So the

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silent reset, and maybe it's not
as silent as it appears. It appears

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that it's here. And hey,
if you know, if a tree falls

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in a forest and nobody hears it
too, did it fall? Right?

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That's right, that's right. And
you know, and that's the thing,

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because everyone knows when they go to
the grocery store. So I'm a treasurer

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for a charity local sports club,
and the cost of food, you know,

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when we're feeding the team is a
thirty percent higher than it was last

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year, So it's across the board. And then you have to pay for

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the gas. You know, there's
all these things and when you you extrapolate

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that out, and then we're talking
about the you know, everyday American family,

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it's a struggle. It's a day
to day struggle, day in and

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day out. And that's why I
called the silent recession because it's here,

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but no one's really talking about it. So what do you do here?

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As an individual approaching retirement at some
point in your life? How do you

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prepare for this awful series of events
here? You know what heads your bets?

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Excuse me, I you know there's
a lot of risk off investments,

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you know, the the six months
one year treasury, You've got a lot

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of money market CDs there. You
know, now it's the time to take

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advantage of it. I think September
is going to be volatile. I do

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believe that the year is gonna finish
up strong. You know, why risk

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it if you don't have to.
I mean, there's enough places to shelter

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your money. And again we talk
about it all the time. I'm a

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fan of precious metals, you know, golden and ceber, not so much

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as as an investment, but as
a storage of value. You know,

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the investing part would be the you
know, the mining stocks, so and

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again have that as a small portion
of your portfolio. But yeah, that

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you know, you've got to head
your bets right now. So heads your

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bets and get ready for the inevitable. Huh, I think so? I

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think so. You know, when
I say inevitable, I don't think it's

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going to be crash landing, but
it's it's going to be here to stay.

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I really believe that for at least
in the near term. Okay,

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So, so what anything else in
particular you're doing to personally prepare for what's

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coming. You know what we just
talked about, you know, I there

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there's I still utilities were hit really
really hard as of late, you know,

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fuel, gas, energy, You
know, I think that those are

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some pretty good plays right now,
those sectors healthcare. But again, you

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know, it's hedging your bets.
The majority of all of the portfolios that

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we have across the board are in
those short term investments that are that are

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risk off type situations where we're generating
a good ready to return for not a

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whole lot of risk. Okay,
I like it, and Eddie appreciate you

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coming on sharing wisdom with us about
the latest to GDP print and it's enlightening.

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Where do we find you? How
do we connect with you on the

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web? Eg SI financial dot com. That is the best place to find

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00:10:13,080 --> 00:10:16,759
us. Okay, and links in
the show notes in this interview on Financial

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00:10:16,799 --> 00:10:22,039
Survival Network dot com. Make sure
you go and you sign up for a

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00:10:22,080 --> 00:10:26,960
free newsletter. If you got a
question or comment, shoot us an email.

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We'll get you an answer. K
l at carry Lutz dot com.

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Eddie, always a pleasure. Thanks
for stopping by, Gerry, I appreciate

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00:10:33,200 --> 00:10:37,960
it. Thanks a good one.
Thanks for listening to carry Letts's Financial Survival

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00:10:39,039 --> 00:10:43,519
Network. Your solution to today's trying
times. For the latest go to financial

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00:10:43,600 --> 00:10:50,200
Survival Network dot com Financial Survival Network
now more than ever,