1 00:00:00,040 --> 00:00:05,200 And every time there's a good financial number that comes out that scares the markets 2 00:00:05,240 --> 00:00:08,160 into thinking that maybe interest rates are going to keep cooing up, which they 3 00:00:08,160 --> 00:00:10,800 are, you know. And it's what appened today was we had to blow 4 00:00:10,839 --> 00:00:14,640 out jobs number, like you said, and interest rates went up in the 5 00:00:14,759 --> 00:00:20,320 US. You're listening to Carrie Letts's Financial Survival Network where you get valuable information 6 00:00:20,399 --> 00:00:25,719 you just can't find anywhere else to thrive in today's trying times. You need 7 00:00:25,760 --> 00:00:31,960 the Financial Survival Network now more than ever. Go to Financial Survival Network dot 8 00:00:32,000 --> 00:00:38,759 com and get your free newsletter in gift. Financial Survival Network now more than 9 00:00:38,799 --> 00:00:47,200 ever, And welcome. You are listening to watching the Financial Survival Network. 10 00:00:47,200 --> 00:00:51,520 I'm your host, Kerrie Letts. Well, blowout jobs report? What does 11 00:00:51,560 --> 00:00:56,560 that do? It breaks the markets because bad news is good news and good 12 00:00:56,600 --> 00:01:00,159 news is bad news. And I'll leave it to John Rabe you find him 13 00:01:00,280 --> 00:01:06,599 at Rabeto dot substack dot com to figure out which is which because I don't 14 00:01:06,640 --> 00:01:11,200 know anything anymore. John. So is the job report a good sign or 15 00:01:11,239 --> 00:01:14,280 is it a bad sign? Hey? Jerry, Well, you know, 16 00:01:14,400 --> 00:01:18,480 normally rising employment is a good thing, and it would be in the normal 17 00:01:18,519 --> 00:01:22,280 world, but this isn't the normal world, and end up, especially with 18 00:01:22,319 --> 00:01:26,239 the financial markets. They they got so full by the FED pausing in its 19 00:01:26,280 --> 00:01:32,079 interest rates increases last month, m into thinking that this was it, that 20 00:01:32,159 --> 00:01:34,599 we were done and we were going to go back to easy money. But 21 00:01:34,680 --> 00:01:38,239 it turns out that's not the case. And every time there's a good financial 22 00:01:38,319 --> 00:01:42,799 number that comes out, that scares the markets into thinking that maybe interest rates 23 00:01:42,799 --> 00:01:45,799 are going to keep coming up, which they are, you know. And 24 00:01:45,840 --> 00:01:49,079 so it's what happened today was we had to blowout jobs number, like you 25 00:01:49,120 --> 00:01:53,319 said, and interest rates went up in the US. The ten year treasury 26 00:01:53,799 --> 00:01:59,840 no yield is now back up over four percent in the US, and mortgages 27 00:01:59,840 --> 00:02:06,280 are backup over seven percent. So those numbers are extremely bad for financial asset 28 00:02:06,359 --> 00:02:14,599 prices because, for instance, stocks compete with bombs, and when the yield 29 00:02:14,639 --> 00:02:16,960 on a bond or on a money market fund or a short term piece of 30 00:02:16,960 --> 00:02:23,520 treasury paper or whatever the rises way above the dividend yield and the average stock 31 00:02:23,080 --> 00:02:27,639 then people see no reason to take the risk of stocks when they can get 32 00:02:27,639 --> 00:02:32,879 twice the yield by buying fixed income paper, and so that's bad for the 33 00:02:32,919 --> 00:02:38,400 stock market. Also, rising interest rates lead to recessions, which is also 34 00:02:38,439 --> 00:02:42,719 bad for stock crisis. So now stocks it starts, are down hard today 35 00:02:42,759 --> 00:02:46,879 as interest rates are out and the reason for that is that now everybody's starting 36 00:02:46,919 --> 00:02:50,159 to think, oh my god, maybe interest rates are going to go up 37 00:02:50,159 --> 00:02:53,039 and that's going to break the market and cause of recession? And what kind 38 00:02:53,080 --> 00:02:55,479 of a recession will it be? Will it be really deep and dark like 39 00:02:55,520 --> 00:02:58,719 two thousand and eight, two thousand and nine, will it be even worse 40 00:02:58,759 --> 00:03:01,800 than that, like the the gloom and doom set And soon you've got stocks 41 00:03:01,800 --> 00:03:09,439 tanking now And in any event, this market is so overdone. You know, 42 00:03:09,479 --> 00:03:15,520 this is the worst market breath that the US hayson P five hundred has 43 00:03:15,560 --> 00:03:21,159 ever seen. There are only five stocks now recounting for almost half the increase 44 00:03:21,199 --> 00:03:24,719 in the SMP five hundred in the last year, and that can't be sustained. 45 00:03:25,319 --> 00:03:30,240 So you know, we're at at the point where interest rates are still 46 00:03:30,280 --> 00:03:34,280 going up, and that they're at they're at a level that can break the 47 00:03:34,319 --> 00:03:38,639 market. Eden stocks are starting to fall and the Fed has no choice but 48 00:03:38,759 --> 00:03:44,560 to raise from here and definitely not tightened from here. So this is a 49 00:03:44,719 --> 00:03:52,439 really it's really a normal historical setup or a nasty equities bear market. So 50 00:03:52,520 --> 00:03:54,360 let's see if it plays out that way. But this is how it went 51 00:03:54,520 --> 00:03:59,639 in nineteen ninety nine and two thousand when the tech stock bubble burst, and 52 00:03:59,759 --> 00:04:01,680 in two thousand and seven two thousand and eight when the housing bubble burst, 53 00:04:02,039 --> 00:04:06,240 interest rates went up along with stocks until rates were high enough to break the 54 00:04:06,280 --> 00:04:10,719 market. We're kind of back there again right now. So let's see if 55 00:04:10,719 --> 00:04:13,680 it plays out the same way, which means, let's see if we get 56 00:04:13,719 --> 00:04:16,680 a nasty equities bear market from all of it. Hey, and it threw 57 00:04:16,800 --> 00:04:21,759 in on that. On top of all that, the Supreme Court saying that 58 00:04:23,040 --> 00:04:29,959 the President doesn't have the authority to negate student loan debt, which is supposed 59 00:04:30,000 --> 00:04:33,839 to cost to student loan borrows, and now fifteen point one billion per month, 60 00:04:34,480 --> 00:04:41,560 and you you got the makings of an interesting economic meltdown. One thing 61 00:04:41,600 --> 00:04:46,839 I would like to point out I've pointed out on other shows John the top 62 00:04:46,879 --> 00:04:53,800 publicly traded homes builders last week, so other stocks hit a five year high, 63 00:04:54,240 --> 00:05:00,079 and with interest rates going up, is is completely counterintuitive. And and 64 00:05:00,680 --> 00:05:04,519 we also saw a new home sales rebound. Was it either last week or 65 00:05:04,560 --> 00:05:12,000 the week before. So maybe all this is just the subterfuge and the money's 66 00:05:12,040 --> 00:05:15,959 really going to start pouring out even more soon. I'm not sure what to 67 00:05:15,040 --> 00:05:20,160 think. I have the home builders as short candidates on my substack portfolio, 68 00:05:21,240 --> 00:05:26,279 and the reason for that is that, as you said, rising mortgage rates 69 00:05:26,759 --> 00:05:30,759 tending to hurt the housing industry and the home builders in particular, because they're 70 00:05:30,800 --> 00:05:34,079 you know, they're like the leverage play. You know, they've got hey 71 00:05:34,199 --> 00:05:39,199 roles and they've got inventory and everything, so they need a steady flow of 72 00:05:39,279 --> 00:05:43,839 new houses and they fat rise up. Then their business model just crashes and 73 00:05:43,839 --> 00:05:46,720 burns and their stocks tank at all. That has happened in the past, 74 00:05:46,519 --> 00:05:50,360 so we'll see if it happens again. But they're down hard today at least 75 00:05:51,680 --> 00:05:57,120 where you're right. Yeah, everything's down pretty hard today, and the home 76 00:05:57,160 --> 00:06:01,639 builders are among the stocks that are getting act along with all the commodity complex 77 00:06:01,680 --> 00:06:05,600 and you know, gold and silver. Everybody's down. I have a big 78 00:06:05,600 --> 00:06:13,199 long portfolio on the subtack and literally one stock out of maybe thirty is up 79 00:06:13,240 --> 00:06:17,800 today. And that's something I'm junior miner that has some specific thing happening today. 80 00:06:17,839 --> 00:06:24,160 It's really good. Otherwise everything is getting smashed us to struck plutonium in 81 00:06:24,199 --> 00:06:27,879 the Ukraine or something like. Yeah, I should have looked at see why 82 00:06:27,920 --> 00:06:30,839 it was up, you know, because there might be a reason. Well 83 00:06:30,879 --> 00:06:31,839 I know what it is. I'm sorry, and I do know what it 84 00:06:31,920 --> 00:06:35,639 is. They fired their CEO a couple of days ago. Well that's bullet 85 00:06:35,879 --> 00:06:41,439 and well you know, the stock tanked. So now it's rebounding from being 86 00:06:41,480 --> 00:06:44,839 down like twelve percent a couple of days ago when most of the miners were 87 00:06:44,920 --> 00:06:49,319 up. So I don't know everything. Effectively, everything is down now, 88 00:06:49,839 --> 00:06:55,519 okay, So, as you like to call it, the big toy indicators 89 00:06:55,560 --> 00:07:01,600 flashing RV sales and ROLLIC sales are down bigly. We've been sounding the alarm 90 00:07:01,639 --> 00:07:08,720 about rolex Is for a good three or four months, but normally you'll get 91 00:07:08,720 --> 00:07:12,199 a blip on that indicator and then they'll go higher. It just tells me 92 00:07:12,279 --> 00:07:16,439 that things in China are way worse than anybody any of you out there think. 93 00:07:16,920 --> 00:07:19,959 It's even in really weird times. There's a lot of billionaires out there 94 00:07:19,959 --> 00:07:24,879 buying the most expensive thing in whatever category, right, so there's always a 95 00:07:24,920 --> 00:07:30,399 market or high end stuff, which means when when high end things roll over 96 00:07:30,160 --> 00:07:35,079 that means you've got trouble in a sector of the economy that doesn't normally display 97 00:07:35,519 --> 00:07:40,319 trouble. And rolexes are a good time event. So so rbs, I 98 00:07:40,399 --> 00:07:44,279 mean, our RV's a one step down. They're not the rolex population. 99 00:07:44,439 --> 00:07:51,360 They are the you just say eat a bellomn RVs are for suburban guys. 100 00:07:51,360 --> 00:07:55,240 Well, actually there are two categories of RB buyers. One is the people 101 00:07:55,319 --> 00:07:59,839 in the RB subculture where they drive around and they park at different places, 102 00:08:00,120 --> 00:08:03,160 meet their friends and have a great time. That's fine, that's that's a 103 00:08:03,240 --> 00:08:07,920 subculture that does its phone thing, and that they aren't really a sign of 104 00:08:07,959 --> 00:08:13,079 anything. But the part of the RV market that is a sign of something 105 00:08:13,279 --> 00:08:18,399 is the suburban male. It's always the husband, okay, who has the 106 00:08:18,839 --> 00:08:24,879 boat and the motorcycle and a big house and he's looking around for the next 107 00:08:24,920 --> 00:08:28,519 toy, and he says, why don't I buy a house on wheels pop 108 00:08:28,000 --> 00:08:33,240 one hundred and fifty thousand dollars and drive it somewhere once every three months? 109 00:08:33,240 --> 00:08:35,279 You know, That's basically how it works. So at the peak of the 110 00:08:35,320 --> 00:08:41,720 cycle, when when guys like that are at their most confident, is when 111 00:08:41,000 --> 00:08:46,440 RV sales boom, and then at the bottom of the cycle, when everybody's 112 00:08:46,480 --> 00:08:50,279 having to go through their toy inventorI and sell them all. Um, that's 113 00:08:50,320 --> 00:08:54,879 when RB prices crash. So we're starting to see that market rollover rbs. 114 00:08:56,000 --> 00:09:00,159 RBY prices are down, RBY sails are down, but he's still wearing your 115 00:09:00,240 --> 00:09:03,159 overall. You know. I looked up what it costs to borrow money to 116 00:09:03,200 --> 00:09:07,799 buy an RV, and the potential interest rate is crazy. Like at the 117 00:09:07,840 --> 00:09:11,320 low end it's just eight or nine percent, so it's not much more than 118 00:09:11,360 --> 00:09:16,679 a house, but the range can go up into the twenties and thirties percentage 119 00:09:16,679 --> 00:09:20,639 wise, which means if you don't have great credit you try to buy an 120 00:09:20,720 --> 00:09:24,399 RV, they believe you dry and so there's probably people out there doing that 121 00:09:24,480 --> 00:09:31,360 too. So at higher rates really impact everything bought US sales, home sales, 122 00:09:33,279 --> 00:09:37,639 RV sales. I don't know how many people buy rolex Is on credit, 123 00:09:37,759 --> 00:09:43,879 but there's probably a number out there that dode if you have to borrow 124 00:09:43,919 --> 00:09:46,720 to buy a Rolex. Yeah you're not a legit rich guy, you know, 125 00:09:48,159 --> 00:09:54,039 but you're a pretender. Yeah you're opposer, but credit. Look, 126 00:09:54,720 --> 00:10:01,120 credit runs the economy. So the question is when things really start blowing up, 127 00:10:01,200 --> 00:10:03,240 John, how long is it going to take the FED to go into 128 00:10:03,360 --> 00:10:07,200 full scale panic mode and say, uh, we didn't really mean it. 129 00:10:07,240 --> 00:10:15,159 We're going to support economic growth and inflations under control. We're not worrying about 130 00:10:15,240 --> 00:10:20,960 that. So everything is great. By the way, a July fourth cookout 131 00:10:20,080 --> 00:10:26,559 was up, but twenty nine percent this year from last year. So I 132 00:10:26,639 --> 00:10:31,720 mean, yeah, especially if you're cooking steak, then it's up even more. 133 00:10:31,759 --> 00:10:35,279 It's like double hot dogs. Well, whatever they throw in there, 134 00:10:35,519 --> 00:10:41,159 hot dogs are the ultimate proof that the substitute effect is alive and will right, 135 00:10:41,639 --> 00:10:45,879 because if they can't get whatever they throw in there, they can always 136 00:10:45,919 --> 00:10:52,279 find something cheaper to put into a hot dog. Right. Um. Yeah, 137 00:10:52,399 --> 00:10:54,600 that's like the old saying is you don't never want to see how your 138 00:10:56,000 --> 00:11:01,200 laws and your sausages get made. Odd dogs are then example of that case. 139 00:11:01,279 --> 00:11:03,159 You know, you go to a hot dog factory and never eat hot 140 00:11:03,200 --> 00:11:07,039 dogs again. That actually happened to my sister. She went out a tour 141 00:11:07,159 --> 00:11:11,600 of a hot dog factory. This is like forty years ago, and she 142 00:11:11,799 --> 00:11:16,559 never ate meat after that. She not only stopped eating hot dogs, she 143 00:11:16,600 --> 00:11:20,639 became a vegetarian. Is though the same thing happened with Milton Burrel. His 144 00:11:20,759 --> 00:11:26,399 friend took him on a tour of a slaughterhouse, and this was back in 145 00:11:26,440 --> 00:11:30,559 the forties, and for the rest of the guy's life sixty some odd years, 146 00:11:30,840 --> 00:11:35,039 he never eat another piece of meat. So this is a case where 147 00:11:35,120 --> 00:11:39,039 ignorance truly is bliss. Well, you know what I think that we should 148 00:11:39,080 --> 00:11:46,200 ask Robert F. Kennedy Junior to do when he becomes president is put on 149 00:11:46,519 --> 00:11:52,840 amcourt, not cam qurters what you know, killibras, Yeah, body jams 150 00:11:52,000 --> 00:11:56,440 like the car what webcams, that's the word. I was thinking of webcams 151 00:11:56,480 --> 00:12:00,360 in all the slaughter house so that there would be channels where we could go 152 00:12:00,399 --> 00:12:07,279 online to see what's happening in you know, sniffield farms, um slaughter houses, 153 00:12:07,639 --> 00:12:11,759 and then we would see where our food comes from. And I think 154 00:12:11,799 --> 00:12:16,840 that would be very useful information. You know, I've talked about this with 155 00:12:16,879 --> 00:12:20,360 other people who said, no, now we you know, nobody would eat 156 00:12:20,399 --> 00:12:22,080 meat anymore. We can't do that. Well, you know, if that 157 00:12:22,159 --> 00:12:28,480 would be the price of knowing the truth, so be it. But you 158 00:12:28,480 --> 00:12:31,360 know, I think we should know all of this stuff, all these things 159 00:12:31,440 --> 00:12:35,840 where we we only do things because we don't know the truth of it. 160 00:12:35,919 --> 00:12:39,639 We should really know the truth of it, and slaughter houses are definitely one 161 00:12:39,679 --> 00:12:45,480 of those things. Maybe then they can put some cams up in the cricket 162 00:12:45,519 --> 00:12:50,320 farms, since that's what the World Economic Form is trying to get us to 163 00:12:50,399 --> 00:12:54,799 eat, to insect protein because it's good for you, right, yeah, 164 00:12:54,519 --> 00:12:58,519 yeah. You know. The thing is, I don't necessarily have anything against 165 00:12:58,600 --> 00:13:01,159 the concept of eating bugs, because eating you know, when you think about 166 00:13:01,159 --> 00:13:03,039 eating meat, that's pretty gross too, and I totally do that, But 167 00:13:05,320 --> 00:13:09,759 if it comes from the World Economic Forum, I'm automatically against it now. 168 00:13:11,559 --> 00:13:15,559 So it doesn't even you know, seventeen minutes cities or whatever, fifteen minutes 169 00:13:15,600 --> 00:13:18,679 cities, you name it. There. Every one of their ideas is horrible 170 00:13:20,440 --> 00:13:26,120 or at least easy to spin in a horrible way. So, you know, 171 00:13:26,720 --> 00:13:33,799 the only optimistic thing that I get from the World Economic Forum and George 172 00:13:33,799 --> 00:13:37,039 Soros and people like that that they're all incredibly old. You know, Bill 173 00:13:37,120 --> 00:13:43,080 Gates is a he's seventy something years old. Klaus Schwab is looking like Joe 174 00:13:43,080 --> 00:13:46,039 Biden, and George Soros just retired, So it could be that that whole 175 00:13:46,080 --> 00:13:52,879 generation of would be dictators is going to leave the stage before they succeed in 176 00:13:54,000 --> 00:13:58,440 taking over. The next generation who comes in won't be nearly as crazy as 177 00:13:58,480 --> 00:14:01,960 the current generation. We'll see. That would be a nice thing to hope 178 00:14:01,960 --> 00:14:05,519 for. Paris's son seems to be as crazy as him, like when it 179 00:14:05,519 --> 00:14:11,559 comes to putting in prosecutors who just let criminals walk, and well, you 180 00:14:11,600 --> 00:14:15,600 know, we don't have to get into all that, but yeah, what's 181 00:14:15,679 --> 00:14:20,360 bad for the World Economic Forum is generally good for humanity. But if you 182 00:14:20,440 --> 00:14:26,799 watch what's happening in France, I mean, this is like the George Foy 183 00:14:26,240 --> 00:14:33,919 Floyd riots on steroids. They've called out forty thousand cops. If it continues 184 00:14:33,960 --> 00:14:37,679 all much longer, they'll be there'll be a shoot to kill or shoot to 185 00:14:37,799 --> 00:14:43,159 injure. Well, that is the that is the inevitable result of open borders. 186 00:14:43,639 --> 00:14:48,519 If you if you let so many people come in that um it's impossible 187 00:14:48,559 --> 00:14:54,000 to integrate and assimilate them into a society in an orderly way. M Then 188 00:14:54,039 --> 00:15:01,799 you get stuff like this because you basically create a second cl as citizen read 189 00:15:01,000 --> 00:15:07,840 that is so big that it can't be managed, and that's what happened with 190 00:15:07,879 --> 00:15:11,840 Europe in general, in France in particular, and uh, you know, 191 00:15:11,879 --> 00:15:16,600 what's what is their choice now? Um, they could round up the last 192 00:15:16,639 --> 00:15:20,159 five years worth of immigrants and ship them to Algeria or someplace, or they 193 00:15:20,159 --> 00:15:28,000 could try to assimilate them, um in ways that it would be incredibly uncomfortable 194 00:15:28,120 --> 00:15:31,919 for the you know, the native French population. And I don't know what 195 00:15:33,159 --> 00:15:35,240 other solution there is. You know, you only have those two solutions because 196 00:15:35,399 --> 00:15:41,519 um, either you you know, you change your culture in ways that make 197 00:15:41,519 --> 00:15:46,960 it possible for everybody to get along, or you slice off a big chunk 198 00:15:46,960 --> 00:15:50,720 of the culture and ship it somewhere else. And neither of those is a 199 00:15:50,759 --> 00:15:56,000 workable solution. So I don't know what they're They're prognosis is it doesn't look 200 00:15:56,000 --> 00:15:58,759 good. No, well, you know, they kind of have these things 201 00:15:58,759 --> 00:16:07,120 that happened regularly, Like New Year's they burn hundreds of cars throughout the country. 202 00:16:07,120 --> 00:16:11,799 They burned down the public library in Marseille. Now, like what library 203 00:16:11,879 --> 00:16:17,200 wasn't doing any harm? Where they're going to put their homeless people. If 204 00:16:17,200 --> 00:16:21,919 it's like the United States, we house a lot of homeless people during the 205 00:16:22,000 --> 00:16:27,720 day at libraries, public libraries throughout the country. So which is really where 206 00:16:27,720 --> 00:16:32,000 not where you should put awnless people. You know, any plans we're putting 207 00:16:32,039 --> 00:16:36,559 our kids, we should not simultaneously put homelest people. But um, yeah, 208 00:16:36,639 --> 00:16:40,080 you know we're we're seeing the early version of what France is going through 209 00:16:40,159 --> 00:16:45,120 because the quality of life in our big cities is already just plunging. Oh 210 00:16:45,320 --> 00:16:52,320 and that's not that's not largely an immigration thing. That's more of a drug 211 00:16:52,519 --> 00:16:56,840 and mental illness thing, you know, where we're just not managing those populations 212 00:16:57,519 --> 00:17:02,000 the way you have to. You know, there are places that have done 213 00:17:02,000 --> 00:17:07,000 it well. Switzerland confronted the whole drug thing and solved it, and a 214 00:17:07,000 --> 00:17:10,880 lot of cities that don't have homeless people. You know, they figure it 215 00:17:10,920 --> 00:17:18,799 out and made it work. You need they see the solutions cross political lines. 216 00:17:18,880 --> 00:17:22,160 That's the problem. You need some stuff that conservatives are appalled by, 217 00:17:22,240 --> 00:17:27,200 and you need some stuff that liberals just won't do under any circumstances unless there's 218 00:17:27,200 --> 00:17:30,960 the gun to their head in order to make us to work. Apparently based 219 00:17:32,000 --> 00:17:37,839 on the places where it has worked, So we need some really painful compromise 220 00:17:38,640 --> 00:17:41,680 on these issues or other or else it's just going to keep getting worse, 221 00:17:41,759 --> 00:17:47,519 you know, And we need to obviously close down the southern border for ten 222 00:17:47,599 --> 00:17:53,039 years while we try to sort out all the people that have come in and 223 00:17:53,200 --> 00:18:00,640 in the last few years. And then we need to institute policies it tongue, 224 00:18:00,799 --> 00:18:06,160 you know, make it illegal to camp in downtown San Francisco, stuff 225 00:18:06,200 --> 00:18:10,640 like that. Yeah, and not just there, it's Austin. It's the 226 00:18:10,759 --> 00:18:17,640 only cities where homelessness isn't really a huge huge problem are the cities that really 227 00:18:17,680 --> 00:18:22,200 crack down on public drug use. And they arrest these people and they say, 228 00:18:22,240 --> 00:18:25,880 you can go to jail, or you can go to drug treatment, 229 00:18:26,200 --> 00:18:30,000 but you're not going back, and they keep doing it until finally, hopefully 230 00:18:30,119 --> 00:18:34,440 these people come to terms. But you know, if PJ. Or Rourke 231 00:18:34,559 --> 00:18:38,880 said that, I think it was him that said a liberal is just a 232 00:18:38,960 --> 00:18:44,559 Republican who hasn't been mugged yet. Well, yeah, maybe we should change 233 00:18:44,559 --> 00:18:51,559 that to a liberal is a conservative who hasn't stepped in human excrement yet in 234 00:18:51,599 --> 00:18:56,599 one of our major metropolitan areas across the country. Yeah. Yeah, you 235 00:18:56,599 --> 00:19:02,519 know, in this given time, if we don't have a societal collapse because 236 00:19:02,519 --> 00:19:06,000 of our finances and we don't have a nuclear war. We won't work this 237 00:19:06,000 --> 00:19:12,039 stuff out because these problems are solvable, immigration and homelessness and drug use, 238 00:19:12,119 --> 00:19:17,839 that this is all stuff that can be fixed by a healthy society willing to 239 00:19:18,160 --> 00:19:23,200 think outside the box. My beer, especially for my kids who are going 240 00:19:23,240 --> 00:19:26,359 to have to live there a dull lodge in the world that we're creating, 241 00:19:26,799 --> 00:19:30,920 is that we're not going to be the kind of healthy society that's able to 242 00:19:30,920 --> 00:19:33,839 fix these basic problems because we're screwing up on such a fundamental level. Otherwise, 243 00:19:34,960 --> 00:19:40,720 we're on the verge of World War three twice with Russia and China, 244 00:19:40,839 --> 00:19:45,880 and we're we're heading off a financial cliff that is just going to be so 245 00:19:45,960 --> 00:19:48,960 brutal when the time comes. But yeah, but all of that is a 246 00:19:49,039 --> 00:19:53,680 little bit further down the road, and right now we've got a garden variety 247 00:19:53,720 --> 00:19:57,799 or recession coming, garden variety, equities, bear market, that kind of 248 00:19:57,839 --> 00:20:03,759 stuff. And so that's a lot to talk about for us in an ongoing 249 00:20:03,799 --> 00:20:10,119 way. But we still got these big looming things out there. But I 250 00:20:10,160 --> 00:20:14,319 think are the really scary part of the picture today. Let's not forget that 251 00:20:14,559 --> 00:20:18,920 our generation, the baby boomers are also retiring, drawing down on Social Security 252 00:20:19,480 --> 00:20:25,480 and Medicare and Medicaid too, because if you don't have enough money for a 253 00:20:25,559 --> 00:20:29,119 nursing home, you go on Medicaid in most states, and they pay for 254 00:20:29,200 --> 00:20:36,839 it. So intractable, intractable problems by any stretch, How do you You 255 00:20:36,880 --> 00:20:41,079 can't say to you and me, Look, we understand you paid into Social 256 00:20:41,079 --> 00:20:45,799 Security and Medicare your whole lives, but there just isn't enough to go around, 257 00:20:47,359 --> 00:20:52,519 So take half. You know that is not a recipe to get reelected 258 00:20:52,559 --> 00:20:57,160 in the modern America, is it No? But mathematically it has to happen 259 00:20:57,240 --> 00:21:03,400 one way or an of it. Here's what baby boomers did when seen through 260 00:21:03,440 --> 00:21:11,799 the eyes of younger generations. Here we the boomers brand forty or fifty years 261 00:21:11,880 --> 00:21:17,960 of extremely easy money policies which made our stocks go way up and our houses 262 00:21:18,000 --> 00:21:22,480 go way up. So we have massive paper wealth right now, and younger 263 00:21:22,519 --> 00:21:27,359 generations are closed out of easy stock market profits and of homeownership at all. 264 00:21:27,559 --> 00:21:33,000 Right, So now a lot of us are healthy. You know, we're 265 00:21:33,000 --> 00:21:36,799 going to live a really long time, and so these guys are you know, 266 00:21:36,839 --> 00:21:40,559 they're hoping to inherit pretty well. But we're not going to die. 267 00:21:40,799 --> 00:21:44,039 You know, Boomers are just sto going to kill over and let those guys 268 00:21:44,079 --> 00:21:48,079 inherit all this stuff that we accumulated. We're gonna keep it for a really 269 00:21:48,119 --> 00:21:52,640 long time. So, you know Gen X millennials, they they've got a 270 00:21:52,799 --> 00:22:00,640 difficult twenty or thirty years ahead of them watching us enjoy our retirements while they 271 00:22:00,640 --> 00:22:06,240 can't even buy a starter house. Um. So politically, um, they're 272 00:22:06,240 --> 00:22:11,319 gonna lean towards massive cuts and Social Security and Medicare, but they're not going 273 00:22:11,400 --> 00:22:15,440 to be able to get it through because we're still such a politically powerful generation 274 00:22:15,519 --> 00:22:19,359 that we will protect our benefits. So um, you know we're gonna We're 275 00:22:19,400 --> 00:22:26,079 gonna go to the grave as a completely self interested generation. They've dominated the 276 00:22:26,119 --> 00:22:30,279 world for the from you know, beginning to end. It's historians will not 277 00:22:30,519 --> 00:22:34,079 be kind to Baby boomers. Right. So we got some big court rulings. 278 00:22:34,079 --> 00:22:38,640 But the first one is in Supreme Court. It's a federal District court 279 00:22:38,759 --> 00:22:47,960 judge in Louisiana who've banned a number of government officials from contacting social media with 280 00:22:48,039 --> 00:22:53,480 the intent of a suppressing speech. Now it doesn't apply to crime. FBI 281 00:22:53,559 --> 00:22:59,440 can still talk to them if there's somebody's committing a crime, it doesn't apply 282 00:22:59,559 --> 00:23:03,960 toal security. But I think the fruxt of it is they're trying to get 283 00:23:04,000 --> 00:23:11,920 the government out of the disinformation determination business. Basically the Secretary of State can't 284 00:23:11,960 --> 00:23:18,680 contact them, Homeland Security cannot contact them, whole list of government officials. 285 00:23:18,079 --> 00:23:23,480 I mean, this could really be a major victory for the people. Huh. 286 00:23:23,680 --> 00:23:29,000 Oh, this is huge. It has the authoritarian left absolutely treaked out. 287 00:23:30,039 --> 00:23:33,079 There are some details that have to be understood with this which make it, 288 00:23:33,920 --> 00:23:37,400 you know, less likely to stick, but also way more interesting. 289 00:23:37,440 --> 00:23:48,640 But this was a couple of Republican states going to court in the court of 290 00:23:48,680 --> 00:23:52,759 a Trump nominated judge. Okay, and see he came out and said what 291 00:23:52,799 --> 00:23:55,319 you just said? He said, yeah, yeah, you can't the FBI 292 00:23:55,480 --> 00:24:00,359 can't get involved with private character of companies telling them to censor people who are 293 00:24:00,359 --> 00:24:03,720 saying, oh, I don't think kids should be vaccinated, or you know, 294 00:24:03,839 --> 00:24:08,680 having basic difference of opinion with government policy. So it's possible that because 295 00:24:08,839 --> 00:24:15,519 of the people involved right now, that this gets overturned on appeal. But 296 00:24:15,599 --> 00:24:19,160 it's also possible that the appeals go all the way to the Supreme Court who 297 00:24:19,240 --> 00:24:22,799 will be really sympathetic to this idea. So it could be that this goes 298 00:24:22,799 --> 00:24:26,960 back and forth for a year and some the Supreme Court who just locks it 299 00:24:27,000 --> 00:24:30,119 down, you know, who makes it the law of the land wherever, 300 00:24:30,640 --> 00:24:33,799 and that that would be I think it would be very cool, you know, 301 00:24:33,839 --> 00:24:40,720 if if we ratified the First Amendment by making it, you know, 302 00:24:40,920 --> 00:24:47,559 explicitly unconstitutional for governments to get involved in public speech, which that's the way 303 00:24:47,559 --> 00:24:49,160 it always should have been. You know, it was only lately that these 304 00:24:49,759 --> 00:24:56,359 novel concept Yeah. Yeah, and if we lock that down, then then 305 00:24:56,400 --> 00:25:03,079 you will have to say that Trump was an incredibly consequential president, right because 306 00:25:03,079 --> 00:25:07,640 it's basically his judicial system and making all this happens. Yeah, you know, 307 00:25:07,759 --> 00:25:11,359 he he is locking or well, if this goes all the way to 308 00:25:11,400 --> 00:25:17,759 the Supreme Court and is upheld by the Supreme Court, Trump will have locked 309 00:25:17,799 --> 00:25:22,400 down some very important freedoms for a generation, if not more. In fact, 310 00:25:22,519 --> 00:25:26,039 we are going to put a link to the decision. I'm getting it 311 00:25:26,079 --> 00:25:32,200 off a politico, but it doesn't matter, you know. My personal opinion 312 00:25:32,480 --> 00:25:37,759 is that this is pretty much bulletproof. He issued it on July fourth, 313 00:25:38,400 --> 00:25:45,559 of his ear which is like, all right, I just don't see any 314 00:25:45,640 --> 00:25:52,759 court having the cahonies to overturn this. Maybe they'll dump it on a procedural 315 00:25:52,880 --> 00:25:59,759 basis. So it's only a seven page decision. I encourage all of you 316 00:25:59,759 --> 00:26:04,119 out there to read it. I just think it's bulletproof. I don't think 317 00:26:04,480 --> 00:26:10,799 doesn't mean they won't find a way around it, okay, because hey, 318 00:26:11,119 --> 00:26:15,559 that's what lawyers do. But and hey, what about the fact that the 319 00:26:15,599 --> 00:26:22,599 New York Times has outraged over this that the government can no longer control disinformation 320 00:26:22,720 --> 00:26:26,880 or what they determined to be disinformation. You know, one man's propaganda is 321 00:26:26,920 --> 00:26:33,920 another man's truth. John, this could be the most important case from the 322 00:26:33,960 --> 00:26:37,440 courts. I mean, there's a few of them out there, but the 323 00:26:37,480 --> 00:26:44,200 courts have basically failed us during the pandemic. They failed us. You know, 324 00:26:45,160 --> 00:26:48,079 in so many instances the court has failed us. Will this be the 325 00:26:48,119 --> 00:26:55,720 one example where they actually come through and protect the constitution and what the country 326 00:26:55,799 --> 00:27:00,920 stands for. I think that going again, this decision going to be very 327 00:27:02,079 --> 00:27:07,279 very difficult, no matter who nominated you as judge. That's going to be 328 00:27:07,319 --> 00:27:12,279 fun to watch when when the appeal layouts in like a DC court or something 329 00:27:12,319 --> 00:27:18,720 like that so much some very liberal set of judges have to hear it and 330 00:27:18,160 --> 00:27:22,759 they have to publicly agonize over what to do about it. That's going to 331 00:27:22,839 --> 00:27:26,599 be fun, you know, And knowing that the Supreme Court is there as 332 00:27:26,640 --> 00:27:33,000 a backstop makes it something we can just enjoy instead of worrying about. Because 333 00:27:33,119 --> 00:27:41,079 even if the liberal court of the liberal appeals court decides to overturn that decision, 334 00:27:41,599 --> 00:27:45,119 there's still another step. It still goes to the Supreme Court. So 335 00:27:45,119 --> 00:27:47,720 so we'll see. But yeah, I think I think there's a lot of 336 00:27:47,799 --> 00:27:52,200 theater that's going to be fun to watch between here and the end of this 337 00:27:52,279 --> 00:27:56,000 process. You know, it might be a couple of years really before of 338 00:27:56,000 --> 00:28:00,839 where this is completely settled. How do you justify how do you justify it? 339 00:28:00,880 --> 00:28:07,240 Though as the government free speech blah blah blah, you know, how 340 00:28:07,279 --> 00:28:11,920 do you justify censorship? You know, I don't think there is a justification 341 00:28:12,079 --> 00:28:21,680 for it, especially when the censorship is so inconsistent where it's really aimed at 342 00:28:21,839 --> 00:28:26,920 one aspect of the political spectrum. You know, it's generally people on the 343 00:28:26,000 --> 00:28:30,039 right who are getting censored. People on the left can say and do whatever 344 00:28:30,079 --> 00:28:37,119 they please. Maybe this is all a result of Musk's takeover of Twitter. 345 00:28:37,440 --> 00:28:42,039 The meantime, we had three other big rulings there. One an affirmative action 346 00:28:42,839 --> 00:28:48,440 where basically the court said, you can't use it to consider who goes who's 347 00:28:48,440 --> 00:28:56,319 admitted to a college, web design bakeries, compelled speech where they can't be 348 00:28:56,599 --> 00:29:03,359 forced to do work, or gays or any other people that they don't agree 349 00:29:03,440 --> 00:29:07,799 with, especially on religious grounds. Seems to be some merit there. And 350 00:29:08,559 --> 00:29:15,000 then finally student debt, where the court pretty much said, it's a great 351 00:29:15,039 --> 00:29:22,279 idea, but the President does not possess the powers to forgive or to basically 352 00:29:22,359 --> 00:29:30,319 declare a college debt jubilee for a portion of college debtors, or as we 353 00:29:30,440 --> 00:29:34,400 like to think of them, John A's college student loan debt slaves, right, 354 00:29:36,000 --> 00:29:38,960 So it's kind of like we could be going to a civil war over 355 00:29:40,000 --> 00:29:45,839 this. Could be like the dread Scott case of student loan debt, which 356 00:29:45,880 --> 00:29:53,680 causes the young overindebted up to their eyeballs. Students with student loan debt dropouts 357 00:29:53,680 --> 00:29:57,759 whatever, it's mainly dropouts, so have the problem people who actually complete their 358 00:29:57,799 --> 00:30:04,839 degree most of them are. But maybe it'll cause a rebellion among college you 359 00:30:04,880 --> 00:30:07,640 know, student loan debtors. All right, that goes back to the baby 360 00:30:07,680 --> 00:30:11,519 boomer thing. You know, we got through college when it was super cheap, 361 00:30:11,000 --> 00:30:14,960 right, and to the extent we took on loans at all, the 362 00:30:15,000 --> 00:30:18,000 stock market went up so much that we paid those loans off with no trouble. 363 00:30:18,799 --> 00:30:23,039 And so we're free, most of us. But the generations that followed 364 00:30:23,079 --> 00:30:27,559 have you know, two hundred and twenty seven thousand dollars to get a second 365 00:30:27,559 --> 00:30:32,200 tier law degree, stuff like that that they'll never get out from under. 366 00:30:32,720 --> 00:30:36,839 And our student loans, the loans where you can't even declare bankruptcy or get 367 00:30:36,920 --> 00:30:41,680 up. Yeah, okay, so in bankruptcy you literally can never get out 368 00:30:41,720 --> 00:30:47,079 from under them. Hotel California, Yeah yeah, the ivy like but she 369 00:30:47,119 --> 00:30:52,440 could never leave. So anyhow, that's a very big that that actually that 370 00:30:52,440 --> 00:30:59,759 that court case was a separation of powers. Bright whether Congress makes a law 371 00:31:00,359 --> 00:31:03,359 that spends money on something, what the presidents allowed to come back and say, 372 00:31:03,359 --> 00:31:07,000 oh, no, okay, we're just going to cancel that whole you 373 00:31:07,039 --> 00:31:10,720 know, the spending program and everything, and it serves out he can't. 374 00:31:10,720 --> 00:31:15,039 According to the Supreme Court, Congress has to manage a spending program, which 375 00:31:15,079 --> 00:31:19,640 is what the student loan plan is. The other one that's really interesting was 376 00:31:21,079 --> 00:31:25,599 about a web designer who didn't want to make a website for a gay wedding 377 00:31:25,759 --> 00:31:27,839 or something like that, which that's been a debate that's been going on for 378 00:31:27,880 --> 00:31:30,359 a long time, like if you're a bakery, do you do you have 379 00:31:30,400 --> 00:31:38,200 to make cakes for people who your religion says you shouldn't participate with and everything, 380 00:31:38,240 --> 00:31:44,359 And then that's always been a fascinating argument because both sides kind of have 381 00:31:44,440 --> 00:31:48,519 a point, right, But in this case, they made it a freedom 382 00:31:48,559 --> 00:31:55,279 of speech issue, where by participating in you know, by making a wedding 383 00:31:55,279 --> 00:32:00,599 cake or by setting up a website or something like that, you're you're participating 384 00:32:00,759 --> 00:32:07,160 in public speech and you're being compelled to speak in a way that you disagree 385 00:32:07,200 --> 00:32:10,279 with. And that's what the Supreme Courts had was that you cannot compel speech 386 00:32:10,359 --> 00:32:15,920 in this way. So so, okay, it sounds like that settles all 387 00:32:15,960 --> 00:32:22,480 those different cases out there that have been pending for a long time, I 388 00:32:22,559 --> 00:32:25,440 think, and I think so. And we've got a link to the decision. 389 00:32:25,759 --> 00:32:30,000 This one's directly the Supreme Court, so you can read it there long, 390 00:32:30,400 --> 00:32:36,480 long winding road. Like the Beatles said, I mean this is this 391 00:32:36,559 --> 00:32:40,519 is one of those ones that the lawyers will fight over for years. But 392 00:32:42,039 --> 00:32:47,119 the concept is Congress has power of the purse and it's up to them to, 393 00:32:49,279 --> 00:32:52,440 you know, to basically pull the plug on student loan debt. But 394 00:32:52,519 --> 00:32:57,400 you know what it's going to happen. We talked about basically debt. JU 395 00:32:57,519 --> 00:33:02,039 believes they're having one in China now. Millions and millions of people have stopped 396 00:33:02,039 --> 00:33:09,559 paying their mortgage payments because they were paying mortgages on hollow shells and buildings that 397 00:33:09,559 --> 00:33:15,839 would never be built because the developer abandoned them. The money all got stolen. 398 00:33:15,200 --> 00:33:20,759 They took the deposits. That's a little lightning and thunder going on it 399 00:33:20,759 --> 00:33:23,640 in Florida here for a change, they took they took all the money and 400 00:33:23,680 --> 00:33:30,480 they used it to finance other projects, payoff CCP officials, and now there's 401 00:33:30,480 --> 00:33:35,279 no money left to finish them and the buyers are left holding the bag. 402 00:33:35,519 --> 00:33:38,759 Point is, it's not just a unique situation here in the US, it's 403 00:33:38,759 --> 00:33:45,079 a global situation. John. The only thing that's gonna be able to treat 404 00:33:45,160 --> 00:33:51,920 the problem here, to save the patient is a complete debt jubilee. Believe 405 00:33:51,960 --> 00:33:54,799 that for the past, since I got in, since I started doing these 406 00:33:55,119 --> 00:33:59,559 podcasts, I think that's what it's going to be now. Well, Kirie 407 00:33:59,599 --> 00:34:02,559 in flay is a form of debt jubilee in that it makes your debt, 408 00:34:02,599 --> 00:34:07,839 you know, five percent or ten percent less onerous every year, so in 409 00:34:07,119 --> 00:34:10,679 the same way that it's a tax increase, right, So that's a secret 410 00:34:10,800 --> 00:34:16,679 way to do this stuff. You just inflate away the currency. A full 411 00:34:16,719 --> 00:34:22,880 on debt jubilee would run into a lot of the same problems as a you 412 00:34:22,880 --> 00:34:28,199 know, student loan forgiveness or something like that, because you would need an 413 00:34:28,199 --> 00:34:32,840 actual law that passes Congress and the Senate and is signed by the President. 414 00:34:34,239 --> 00:34:38,280 So you need all those different groups going along with it. And that's a 415 00:34:38,280 --> 00:34:44,440 pretty hard sell, as we see right as we are, it's a it's 416 00:34:44,440 --> 00:34:49,360 a very hard sell. But in the end, there is no solution other 417 00:34:49,440 --> 00:34:52,920 solution because as you've said, and I've said many times on the show, 418 00:34:53,639 --> 00:34:59,480 the debt is unsustainable. The increase in the rate of debt is unsustainable. 419 00:34:59,719 --> 00:35:04,800 And now with interest rates going up, the ability to service the debt it's 420 00:35:04,840 --> 00:35:07,840 becoming harder by the day. Arry, you know, you know what there 421 00:35:07,840 --> 00:35:12,880 apparently is something that they can do, which is stimmy checks. They did 422 00:35:12,920 --> 00:35:17,079 that already and got away with it. What are Congress. Yeah, well, 423 00:35:17,119 --> 00:35:24,519 and but giving constituents free money is something that kind of sells pretty well, 424 00:35:25,000 --> 00:35:29,400 at least in stressful times. So it's possible that you pass something like 425 00:35:29,400 --> 00:35:32,239 that, only make the check bigger. Make it fifty thousand dollars stimmy check 426 00:35:32,639 --> 00:35:37,719 for everybody. Of course, you destroy your currency, but you get reelected. 427 00:35:38,079 --> 00:35:43,639 Well, fifty thousand dollars stimmy check if you don't have any student loan 428 00:35:43,719 --> 00:35:45,920 debt, and keep it. If you do, you got to use that 429 00:35:46,039 --> 00:35:51,559 check to pay down your student loan debt. Any halfway measure, it's just 430 00:35:52,159 --> 00:35:54,960 not going to work. You know, there's going to be an ah home 431 00:35:55,239 --> 00:36:04,079 aha moment where everyone on the planet realizes can't pay it back and we're gonna 432 00:36:04,079 --> 00:36:07,960 have to start. This goes back to the Bible. You know, every 433 00:36:07,000 --> 00:36:14,039 seven years a mini jubilee, in every forty nine years, a major debt 434 00:36:14,119 --> 00:36:17,400 jubilee. I don't see any other way, but hey, we'll see to 435 00:36:17,760 --> 00:36:22,760 what they come up with the Biden administration to try to counteract this the meantime, 436 00:36:22,840 --> 00:36:25,519 I think I'm going to lose my power here. We're having a massive 437 00:36:25,760 --> 00:36:30,079 thunderstorm. Maybe we'll get a tornado. Who knows. Make sure you go 438 00:36:30,159 --> 00:36:37,800 over to John's substack. It's Robino dot substack dot com. We're always at 439 00:36:37,960 --> 00:36:43,880 Financial Survival Network dot com. Leave your comments below please, and John we'll 440 00:36:43,920 --> 00:36:45,039 catch up with you in a couple of weeks. All right, Cheris, 441 00:36:45,039 --> 00:36:47,480 see you go run around in the rain a little bit. That sounds like 442 00:36:47,559 --> 00:36:53,199 fun. Thanks for listening to carry Lens's Financial Survival Network, your solution to 443 00:36:53,199 --> 00:36:59,599 today's trying times. For the latest, go to Financial Survival Network dot com. 444 00:37:00,119 --> 00:37:02,519 Ential Survival Network now more than ever,