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Speaker 1: There's no recession, right B, because the economy is strong.

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But you know, when you look at you know, we

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added fifty or half a percent fifty two basis points

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at the minimum to the GDP numbers to get them

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to where they were, and that was all government spending.

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Speaker 2: You were listening to Carrie Lutz's Financial Survival Network, where

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you get valuable information. You just can't find anywhere else

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to thrive in today's trying times. You need the Financial

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Survival Network now more than ever. Go to Financial Survivalnetwork

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dot com and get your free newsletter and gift. Financial

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Survival Network now more than ever. ED.

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Speaker 3: Welcome you are listening to and watching the Financial Survival Network.

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I'm your host Ferry Lutz and noted economic expert at

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sidel Is with us ED.

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Speaker 4: We got to talk.

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Speaker 3: About these GDP numbers. The economy is doing so great.

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Why is everyone so miserable? Well, yeah, yeah, you know

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the the reports are.

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Speaker 1: You know, there's no recession, right B, because the economy

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is strong.

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Speaker 4: But you know when you look at, you know.

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Speaker 1: We added fifty or half a percent of fifty two

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basis points at the minimum to the GDP numbers to

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get them to where they were, and that was all

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government spending. You know, that's inflationary, and you know we're

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talking about it right before we started. I just wanted

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to double check the numbers. Did you know so far

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this year fiscal year twenty twenty four, that we have

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already spent six point seventy five trillion dollars already? Really well,

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and I would not be shocked if our debt hits

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thirty six trillion on election day?

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Speaker 4: Were there about question for you? Yeah, hey, right before it.

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Speaker 3: Trump's proposing elimination of the federal income tax, and I

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want to take my champagne bottle out now and replacement

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with some type of you said tariff, but I think

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of that would also right.

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Speaker 4: He required there is this doable you know what.

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Speaker 1: I actually when he first said it, I was like, yeah, boy,

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that's that's kind of out there. And and then I remembered,

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you know, something that our laugher said, uh, you know,

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earlier in the year.

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Speaker 4: So I started looking at it, and it really is.

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Speaker 1: It really is doable, and and you know, the the

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VAT or consumption tax, but yeah, I think it really

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really is.

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Speaker 4: You know, some of the other things that he was talking.

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Speaker 1: About, which is doing away with taxes on social Security.

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You know, they were talking about adding to the national debt.

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But but you know, it's it's always the opposite of

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of what you really think because you know, when you

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look at the math behind a statement like that and

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you just go back to, you know, the the current

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tax plan that we're in right now that goes away

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sets you know, the the December thirty first is twenty

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twenty five. You know, we are taking in more tax

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revenues now under the current tax code, which was you know,

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under the Trump administration than in the history of the

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United States. The problem is is that we're spending more.

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I think in August we talked about this. Last time,

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we took in like four hundred and over four hundred

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billion dollars in one month, and we spent four over

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you know, four hundred and eighty billion UH deficit. We

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overspent you know, four hundred and eighty billion. So you know,

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when when you look at these tax reducing strategies, you know,

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can we add more tax revenue? And I think the

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answer is is yes, absolutely, because when you look at

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he also wants to reduce the the UH business tax,

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you know from you know, the current twenty one down

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to fifteen percent. And I think that's also going to

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have a very positive impact on tax revenues. So how

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is that going to have a positive twist on tax

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revenue as well? Now more people from a consumption standpoint,

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they're going to be able to live a higher standard

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of living. You know, they're going to be able to

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to spend more, which is going to create more tax revenues,

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you know, over over the long haul.

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Speaker 4: You know, especially with the tariffs.

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Speaker 1: You know, we if companies are having to spend one

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hundred and two hundred percent I'm using Trump's words more

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just to bring their their their their goods and services

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into the US, what are they going to do. They're

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going to open up factories here in the US, which

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is going to increase the the the revenue base. And

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that's how he's going to accomplish that. So, you know,

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I it's very ingenious. You really have to think outside

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of the box. But once you do the math, I

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think it's a very doable deal.

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Speaker 3: So what about the uh, no taxes on tips? I mean,

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is that just a pandering vote buying type thing or uh,

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you know, can you.

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Speaker 4: Really do that fairly?

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Speaker 3: Because it is income, although you can make the argument

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that it's a gift.

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Speaker 1: Yeah, and you know what you know, in the service industry,

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it's so my my my middle son is.

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Speaker 4: A server at a at a higher end restaurant.

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Speaker 1: And you know, the the tips, so he's not even

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making minimum wage. And you know the it's those that

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are in that service industry. It's the difference between if

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you're not having to pay taxes on those tips. It's

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the difference between making ends meet, uh and and you

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know and not having to get a second job. So

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I think it really is from a quality of life standpoint,

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it's going to be life changing for you know, the

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working class American for sure.

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Speaker 4: And yeah, I mean it's really not fair.

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Speaker 3: But there are a highly paid to the waiters and

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waitresses and weight staff at fine rest you know they're

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six figures yes, And same with you know in Vegas, uh,

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one of the best paid jobs in this valet parking

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car and the made right without a doubt.

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Speaker 1: And and you know, think about it like this, Garriy

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is that we're moving away from cashlest society. So you know,

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those tips, everything's going to be you know, electronic, whether

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it's through credit cards or you know, they're pushing through

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the c B d C Central Bank digital currency sure

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that they're gonna be able to track it, you know,

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and if you don't have to pay taxes on on

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those electronic transfers, you know, it is you know, it's

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it's going to add a lot to uh to the economy.

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And you're right, you know, the the the the restaurant chain,

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if you will, they're all high end restaurants that my

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my son works at. He goes to college too. But

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you know, everyone in there, you know, it's it's you know,

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mid six figures, I mean there in it, but they

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definitely earn it for sure.

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Speaker 3: So yeah, fascinating, fascinating. So I just you know, really

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interest me the way this happens. Policy emerges because you know,

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you don't start with a clean slate, so you got

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to work with what's there. But really, in so many

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areas of what the government does, we need to throw

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out virtually everything it does and start the thing over

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again because it's so messed up and it's so corrupted.

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And yep, this really is a change election. You know,

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not talking about politics, but about policy. Policy is far

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more important than politics. Politics just gets people at each

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other's throats. Policy, you actually work together to solve problems,

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something we've seemingly been unable to do in this country

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for you know, twenty years or more.

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Speaker 1: You know, what's that old thing if if you're not

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part of the solution, you're part of the problem. And

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I you know, I elon Musk what he did with

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with Twitter now X, you know, in cutting the fat,

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you know, looking at you know what what they're looking

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you know, to trimming the fat for you know, government employees.

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And you know, probably a little tongue in cheek when

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he said, you know, hey, we're gonna give two years

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worth of severance so that that way they can figure

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out what they want to do next. But we're overspending

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so much. You know, the a lot of the jobs

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that we've added this year, just like last year. I mean,

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their their government federal government jobs, and that is nothing

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but inflationary. You know, I heard that there's it's over

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fifty percent of the employees in DC are still working

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from home. They're they're not even in this So you know,

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are they really needed and necessary?

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Speaker 4: You know?

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Speaker 1: And and I'm asking because I you know, honestly, I

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don't know. And you're coming on policy versus politics. You know,

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that's that's a big deal.

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Speaker 3: There.

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Speaker 1: There was an article that came out when you know,

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the mid sized businesses and obviously the Fortune five hundred,

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you know, CEOs were asked this question, what would you

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rather see? Would you rather see lower taxes or less regulation?

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Do you know what over ninety percent responded was less regulation? Yeah,

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because you know all of these regulations that it's it's

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business prevention. Now, look, I believe me. I'm big on

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the environment. I'm an outdoorsman. You know, I don't want

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to see water bottles and trash everywhere I go. But

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you know, when the EPA turns a puddle into a

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lake or a pond and you can't even do it

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on your right up party, you know that becomes successive

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so complete madness.

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Speaker 3: Yeah all right, Well, so once the election is over,

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silly season, where do you see the market heading? The

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market seems to be pricing in uh, a Trump victory

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in my opinion.

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Speaker 4: Without a doubt, without a doubt.

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Speaker 1: You know, I we're we're seeing a couple of things,

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you know, we're we're seeing these you know, Trump trades

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that are being placed, you know, value companies, those companies

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with strong balance sheets. And you know what's been very

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ironic is, you know, even as companies are coming out,

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you know, beating expectations on the street, as their earnings

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have come out, you know, those companies have remained very flat.

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But you know, we're already starting to see movement in healthcare,

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We're already starting to see movement in energy. And again,

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I think the markets are pricing in, you know, a

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Trump victory. But one of the other things that the

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markets are pricing in, especially the bond markets, is that

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even though the Feds lowered rates fifty basis points and

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I think they're probably gonna lurma again another you know,

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twenty five BIPs in a couple of weeks.

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Speaker 4: Don't say I agree with it. I understand why they're

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doing it.

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Speaker 1: The bond market is like, yeah, inflation isn't going away

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anytime soon, and so yields are going higher. So you know,

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I think that there's you know a little push pull

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going on in the markets right now, and I think

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everyone's kind of anxious to see what's going to happen.

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You know, a week from today, the outcome of the election. Yeah, well,

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well no, a week from today, that's for sure, all right.

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I appreciate you coming on sharing your opinions on things.

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Tell us again where we find you, how we connect

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with you. Yeah, you can find us on the interwebs

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at eg SI financial dot com.

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Speaker 3: All right, and the link is in the shows this

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interview on Financial Survival Network dot com. While you're there,

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00:11:44,960 --> 00:11:48,799
please sign up for Breed newsletter like forty thousand other

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subscribers have done. And if you got any questions, shoot

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me an email Heyl Atcarrie LUTs dot com. Ed always

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a pleasure, be well, talk to you after the election.

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Speaker 4: Absolutely, Thank you very much.

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Speaker 2: Thanks for listening to carry Letz's Financial Survival Network your

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solution to today's trying times. For the latest, go to

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Financial Survivalnetwork dot com. Financial Survival Network now more than ever,