And they would say that inflation in the really deflationary because at the end of
the day you do you have less discretionary income to spend at the end of
the month. That is deflationary of your world, but at least a price
destruction. So as currency or fiat currency springs, than guess what the prices
go with it. It's the expansion of the money supply that creates inflation.
So when you had the contraction of the mind supply, you get the opposite.
You're listening to carry Letts's Financial Survival Network, where you get valuable information
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ever, and welcome you are listening to watching the Financial Survival Network. I'm
your host Carry Letts. Well today on September fourteenth, we got the PPI
numbers, and I guess if you're worried about inflation, they were probably pretty
good. If you're worried about the economy, they're probably pretty bad. But
let's figure it out together. Russell Stone is on with us. You find
him at Granton c R A n t O NFG dot com and if you've
got a question or comment, shoot me an email k l at Kerrelutz dot
com. PPI numbers. After following up the CPI numbers the other day,
Russell, what is the picture. Well, my expectation, and it's been
pretty consistent, is we've had inflation in the last two years because of what
the government is doing a relative to printing money, relatives and now raising itchest
race to five outs inflation. But the end of the day, the consumers
not cooperated. They're not showing up buying things. So the price in structure
is going to now go down across the boards. That can happen even in
a support But you're going to have the things that are the greatest demand,
they're going to stay up for prices the longest. But the things that are
not in demand, like cars and houses and stuff like that, you're gonna
see those prices start to come down. As as we act, we're seeing
it in the housing sector. The housing market is slowly moving down. The
cars are moving much faster. As far as the price and use cars induce.
Cars the demand on both cars and housing is changing draft because betrayed in
flighting and rising interest rates, people don't have the extra money to buy things,
is very obvious. Pretectingly go into stores, restaurants, supermarkets, stuff
like that, all right. So it's a question of things that you need
and things that you want right right right, things that indeed you're going to
pay a higher price for a longer period of time. The things that don't
need, those things are going to acumulate, and they're going to come down
faster as the inventories need to be paid. Eight four and then moved on
PreTect We're coming up on a new season. We're coming out by the winter
season. So you've got holiday changes coming, You've got you know, seasonal
changes coming, you've got school changes, talent, and the inventories are gone
from the previous summer. In the spring, they're still out there in the
shelves, all right. So so what's happening. Is this the start of
the long dreaded, long awaited recession. Yeah, I kind of laugh when
people say recession when you got Europe is clearly in a recession. Germany is
on the verge of a depression. Chatta's economy has contracted a multiple three times.
Right, Russia is in the middle of a war with Ukraine, and
they somehow think that we're not going to We're not in a recession already.
You really have to work hard to believe that we are in a recession already.
We're going through a much needed deflacetionary psycle which will squeeze out all the
unnecessary credit that is in the system. The deable into details is the excess
credit. The world is drunk on debt and in the cost of the debt,
and the fact that it's robin production is the problem that we're having.
The cost of interest is just killing the economy that's gotting paid by somebody.
All right, So are you telling me that the that the inflationary scare is
over, the cycle has been broken, and now now we'll just see lower
prices or stable prices. You're really thinking that, Well, I here's the
argument in Elliott wave theory would make this argument as well, and they would
say that inflation and the really deflationary because at the end of the day you
do have less discretionary income to spend at the end of the month, that
is deflationary of your world. But at least a price destruction. So as
currency or fiat currency springs, then guess what the prices go with it.
It's the expansion of the money supply that creates inflation. So when you had
the contract of them supply, you get the opposite, you get deflation.
In every eighty years or so we go to an deflationary cycle seventeen eighteen,
eighteen thirty five, nineteen twenty nine. Well, here we are doing all
over again for the same reasons. The politicians don't have a way to grow
the economy with and keep it in the confines of gold. So gold,
this is supporting our currency, north can it? Because there's this stimity transaction
has taken place in our dollar to contain it to gold needs to went on.
That out what happens if we got this deflationary thing going on and then
oil breaks one hundred dollars a barrel, people will drive all out less.
They'll ride bikes, they ride motorcycles and mopeds. So might is a good
investment then huh, Well, it's just people will look down to it.
Right when prices spiked out, you know, small hard sales went through the
road. Go back to the seventies, yeah. Remember when we're driving around
a big old chevies and caddies and forwards they are being heavy and lucky.
And then Japan started making these smaller, more fuel effishing cars. Well then
he oil embargo ahead and seventy four and it changes thinking of everybody. Everybody
starting to gravitate towards smaller vehicles. We always adapt. That's a good thing
about the American markets is we will adapt if oil prices go too high and
more people are going to burn woods or the look for alternative ways to heat
their house. We're pretty creative when it comes to reacting to what the econ
and he is throwing at us. And this will be no different. If
oil prices go too hig, people are going to do something different to supply.
Oil will go off the charts. The price will come down, all
right. So so I thought Biden was doing like such good things. He's
bringing the deficit down. I mean, look, he brought our troops soon
from Afghanistan in a week. Isn't he like good things? Here? He's
got five degrees, all right, two of them doctors degree. It's one
of a pet and Florence's classes all right, so we know not to listen
to mister Biden. He hasn't done anything right in my opinion, relative to
the economy or foreign affairs. We need to get past the Biden thang and
move on to the next chapter in this country's history. Okay, so enough
of the levity now. The way you deal with these people is praise their
failures, right, praise theorious, condemn our successes. The way you get
to these guys is you stopped watching the media outlets that that that don't do
their job. Yeah, we need real, real journalists to expose the crush.
And when you have a politician that sit there, not a journalist that
literally it will sit there. I say there's no evidence of any corruption between
Hunter Biden and Joe Biden and say it with a straight face, then you
know that person is bought and paid for, right. Yeah, you have
politicians saying that as well, some of them on always. I thought he
was doing a great job here. He really is. First my bubble here,
Russell. You know, like they know they love coming to stand.
It does somebody's list. Jeez, man, I thought like bringing the troops
home in a week was a good thing. But I guess I was wrong.
You know, well, here, here's what's wrong with that. He
brought the troops home, but he left the citizens in Afghanistan and all the
all the tanks and blades and everything else. Yeah, so much for nation
building a really good policy. This is a uniparty at work, weakening the
country, fracturing the resolve of the citizens, and basically bringing us down to
the lowest common denominator. So what Russell is the solution here on an individual
level, because whatever Washington does, there's nothing we can do about anyway except
hopefully vote, And who knows what that's worth. If it's worth anything,
we could debate that till the cows come home. But you got to be
able to do something to protect your wealth and save yourself from the from these
maniacs. Right, Yeah, So the greatest wealth ever created is in this
environment, and the greatest wealth destroyed is in this environment. So the ideas
you want to be proactive to not reacted. Don't wait until the tide away,
Niche, don't wait until the problem is so big that you can't handle
it. What you need to do is understand this real money versus fake money.
I want to have as looks real money in my possession as bossible gold
and silver. Why do you want to them own silver over gold because the
ratio is eighty five to one right now, free can buy getting five silver
coins for everyone else a goal all day long. When the racio goes back
to fifteen to one, sell after silver, buy gold. You'll have three
times more gold than you would have a you started out with all goal,
get it if you could get either one. If it gets to that point,
Russell, you know it might reach a point where you can't buy gold
and silver for any money right right, So you don't want to have them
debt, pay off short term debt, and you don't want to have any
unnecessary market exposure. It depends on what age you are, but if your
approach to retirement, you really need to step aside, in my opinion,
and just let the markets do what they're gonna do and come back in at
the bottom and really hit a home run. Buy low, sell high.
If you can't accumulate gold and silver because you don't have a resource, you'll
give me a call. I'll help anybody buy gold and solver while it's available.
I don't charge for it. I do it as a service to clients
and people. But at the end of the day. You have to be
cognisant of your debt. You don't want to have unnecessary debt. It's not
the time to go out and buy a car right now. It's better to
save your money. And one of the things that people should consider rather than
banks have too much money in banks, is to put money in a government
backed money market account that all the US is Treasury bills T bills owning there's
you have out there. They're paying five percent roughly right now, they're one
hundred percent liguate, there's little or no The fees are like point four seven
and you're grossing five percent right now. If interest rates continue to go,
great place to have money. You can link it to your bank so that
you can add the least amount of money in the bank and the lost amount
of money directly backed by the US government. FDIC Insurance has one hundred and
twenty billion dollars to protect about ten throwion dollars. Not nearly enough. All
right, that should work out, okay, right, Yeah, it's comes
out to one point two eight pennies per dollar that they have to protect.
So people shouldn't feel too good about FDIC insurance. Buy them print money,
So there's print a difference, right, but the only can print to the
demand of the commercial lad it. So the commercial lending isn't lendon because the
interest rates and now do I the government has handcuffs on them. They really
can't print any money right now? Yeah, all right, you're making us
feel too good here. So we're going to survive this thing or is it
commit bigh event? The Silver War was much worse. We have been in
worse times than this. But America has to wake up. You know,
we got lazy, we got sloppy. We didn't pay attention to who we're
elected. We didn't test them at all as far as their constitutional commitments.
We got quite judges that are that are useless in my opinion. So we
need to wake up and we'll go back to what made us a great country.
All right? Amen to that, brother, Thank you Russell. So
it's GRANTONFG dot com. That's where you find Russell questions comments, k l
at terry LUTs dot com. The link to Russell's site is on our site
Financial Survival Network dot com and the show notes to this interview. While you're
there, sign up for your free newsletter Russell A Pleasure Thanks so much for
stopping by. Thank you, thanks for listening to carry It's a financial survival
network, your solution to today's trying times. For the latest, go to
Financial Survival Network dot com. Financial Survival Network now more than ever,