Speaker 1: Who would expect the President to be firing the chairman
of the Fed unless he gets zero percent interest or
for one k is to be able to turn to
the hedge funds and buy all these alternative investments. That
wasn't part of the plan, but it's a very welcome
part of the new world for precious metals.
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Speaker 3: And welcome you are listening to the Financial Survival Network.
I'm your host, Carrie Lutz. John Rabino is with us. John,
it's been a couple of weeks, but hey Trump Trump GPT.
He seems to be steps ahead of all of his adversaries,
both domestic and international. Here what's going on? Pay Jerry?
Speaker 1: Well, you know, you can use a lot of adjectives
when you're describing Donald Trump, but two that you can't
help but use are consequential and busy. You know, the
guy hit the ground running because they knew they had
two years before the midterm elections, when it's completely conceivable
the Congress flips, and then the purse strings are in
the hands of people who don't want to finance any
of Trump's initiatives. So the government is basically paralyzed. So
Trump knows he's got to get everything done. There are
a lot of stuff done in just these two years,
and he's not wasting any time, you know, the everything
that is on their wish list. They're just trying to
do all at once, and they're letting the courts sort
it out. And it's fascinating touch. You know, the district
court judges impose nationwide what's that term injunctions, right, injunctions?
Not only can't you do that in this case, but
you can't do it anywhere in the country, you know,
not just in my district. And then that bumps up
to the Supreme Court, and the Supreme Court just lately said, now,
you know, these nationwide injunctions are unconstitutional. So that basically
opens the bloodgates for Trump to do all the things
that he wants to do, and he's winning a lot
of other things in the Supreme Court.
Speaker 3: Yeah, he's winning everything. Basically, he's had like five major victories,
and like one of them was the fact that he
could just fire people in any department at his heart,
to his heart's content. And this is like a major
sticking point because they believe that they were covered by
the Impoundment Control Act of nineteen seventy four, which basically said,
if the president wants to stop spending, he's got to
go back to Congress. And now he can just unilaterally
say we're not paying it. So it's almost like he
doesn't even need dog anymore. If he just decides that
there's a department he doesn't like, he can't get rid
of the department, but he can get rid of all
the people in the department. So what's the difference, right, We'll.
Speaker 1: See that that was always the big question, like who's
in charge of the administrative state after all, because technically
they're part of the executive branch, but they're funded by Congress.
So can the president refuse to spend the money that
Congress has allocated on a given thing? And that was
the question that just kind of got answered now, right, No,
the burnder, right is like I have.
Speaker 3: To yeah, yeah, indirectly and I predicted it too through
Trump GPT. You know, Trump GPT is running the White House. John. Look,
as a lawyer, I could tell you that each one
of those executive orders probably is several hundred hours worth
of work. You don't just write them. You have to
research every law they affect, and every other executive order
they effect, hundreds and hundreds of hours. No sooner did
he take his hand off the Bible, John, than he
was signing executive orders. And the thing is he maybe
had a small sized law firm on this case, but
none of it got out. Nobody knew it was going
to happen, and yet it happened.
Speaker 1: Well, we knew they were working on a transition this
time because the first time he got elected, he didn't
think he was going to win. So it was just
him all of a sudden, he was the president. He
didn't know foodre and whether they were going to work
with him or against them, And so it was a
really other than the Supreme Court that he named three
conservative justices to. He didn't accomplish much of anything this
time around. He had the Federalist Society and all the
thing tanks out there preparing personnel, and these executive orders,
and you know they had AI obviously because they couldn't
have done it without AI. But they had this long
list of stuff they were going to do all lined
up for day one. And yeah, it's been a really
amazing performance to watch watch a president come in and
just start doing stuff, tear things up or impose his
will and all kinds of things where the president really
never had much of a say, and you know, he's
getting away with it. And the wild thing is he
might actually get to name a couple more Supreme Court justices.
I think he's well just in that sense, he's incredibly influential.
Speaker 3: I couldn't agree with you more. And it's, you know,
love him or hate him. I mean, there's things I
like about and there's things I really don't like about them,
like things like debt. Doesn't seem to care about how
much debt gets run up. And you know this idea,
like I'm no fan of J. Powells, but to throw
him out so you could cut the rates from four
and a half to one percent. You know, Michael Pento
even says, I'm a supporter of the administration, but I
can't support that. You know what that would do cutting
the rates to one percent. I mean, we'd see an
economic boom, but we would see a currency debasement. That
the mother of all currency debasements.
Speaker 1: John Well, Yeah, Trump is a real estate guy, and
you live and die on interest rates if you're in
real estate. So to him, low interest rates are the
only completely good thing in the world, probably no bad
side effects to it at all. And he is a
great investment right, Yeah, nothing like that. If you can
borrow money for zero percent, you can make money in
real estate. But yeah, okay, here, here's the way this
might play out is that, yeah, he gets his way
with the Fed one way or another. They start cutting
interest rates pretty aggressively at the short end of the
yield curve, so the Fed Fund's rate goes down to
zero again, and then long term rates is where there's
the question, because will the bond markets accept that. In
other words, will long term interest rates fall along with
short term interest rates or will the bond traders rebel
and start pushing up long term interest rates. If they
do that, then the federal government has to step in
with yield curve control and start forcing down long interest
rates too. To do that, they have to basically create
a tsunami of dollars with which to buy those ten
and twenty and thirty year treasuries, and then that shifts
the pressure over to the currency. So in other words,
you get inflation if you try to push long rates
down really dramatically, and that's the dollar falling in value,
and there are no and it could happen within the
next few years where the dollar starts falling in a
kind of an uncontrollable way, and there's your crackup boom. Right,
that's the endsets process where total people start shifting their
dollars into real assets, they start buying gold and silver
and farmland and everything. The price of those things go
through the roof and you get hyper inflation in that sector,
and then you know, the dollar is basically toast and
we have to do the monetary reset so we could
be lived to the prove of monetary history.
Speaker 3: Right, Yeah, is the more we go on, the more inevitable.
But good news in that respect is that your four
oh one K is you're now going to be able
to do alternative investing. Right.
Speaker 1: That adds fuel to this fire. They have just decided
the federal government to allow for one K plans to
invest in alternative assets because right now, most four one
K plans are in stocks, bonds, and cash and mutual
funds that hold those things. But now they're going to
be allowed to buy private equity and hedge funds and
cryptos and gold and silver, which is a really huge
deal for gold bugs because there's multiple trillions of dollars
in four one K plans. And you know, if you've
got a one K plan that has mostly stocks and
bonds in it, and then you find out that you're
allowed to buy gold, and that gold has been the
best performing major asset this century so far, the past
twenty five years, gold has outperformed the S and P
five hundred. So you're going to want some gold. So
let's say you put five percent of your poor one
K in gold and silver. That doesn't sound like much
in the scheme of things, but it's a massive inflow
of capital into precious metals. You know, gold is not
that big and silver is minacemal, and I think a
lot of people, if they, you know, if they listen
to casts like this one, are going to favor silver
because silver is way cheap compared to gold, and so
you know, you get a half a trillion dollars flowing
into silver, and you've got one hundred dollars over right there,
And that's totally conceivable in the scheme of things now.
So that's something that probably people aren't paying too much
attention to, but is actually a very big deal for
precious metals and for bitcoin and for real estate. You know,
if you can all of a sudden, if you have
a four to one K and you're a hedge fund,
a lot of wild bays can happen.
Speaker 3: Hey, So, as you were mentioning that, I looked it
up and as of March thirty first of this year,
total amount held in four toh one K accounts was
approximately eight point seven trillion dollars. But listen to this,
the average balance, according to Fidelity, was one hundred and
twenty seven thousand. So you take the average person, say
I'm willing to do ten I'll take seventy five hundred
dollars risk here, throw it into some gold and silver
and uh, you know, put a little into a bit bitcoin,
right and before you know it, all of a sudden,
that is a huge amount of money going in there. John.
Just last week, two point two billion went into the
Bitcoin ETFs all right, that's not even owning the actual thing.
It's really synthetic. It's not synthetic, it's derivative, all right.
But the amount of option open interest in the options
is like thirty five billion, and there's no bitcoin trading
like less than seven percent of the total. And just
in the inflow last week, that's thirty four thousand and
thirty five thousand coins that have been now down the
rabbit hole that will never be seen again. And less
there is a massive panic and people start cashing in
their ETFs, and maybe that's what they'll try to trigger.
But right now we're close to one hundred and seventeen
eighteen thousand dollars. I don't want to say exact, but
this has the potential to be wildly disruptive to all
alternative investing. John. Yeah.
Speaker 1: Another way of looking at at that from the precious
metals point of view is that right now gold accounts
for less than one percent of investible capital. So if
four A one K is start saying, okay, I'll throw
five percent in gold or something like that, since it's
the best performing asset of the century, that quintuples the
amount of any average for one K has invested in
gold and silver, So that's you know, those numbers actually
probably can't happen because there would be no gold and
silver left if four one ks tried to go five
recent into precious metals. Soum.
Speaker 3: Yeah, yeah.
Speaker 1: So you know, we're at the we're in the early
stage of what is looking like a spectacular precious metals
market because you got the president demanding zero percent interest rates.
People with four to one k's suddenly being able to
buy gold and silver and cryptos and things like that
at a time when those are the best performing assets,
when everybody's looking at them and looking how much they've
gone up, which we will encourage regular people to buy
more now, whether it's at the peak of the market
or not. You know, that's an awful lot of money
flowing into the stuff that you and I have been
pushing for all these years. So it could be could
be that we turn out to be not only right,
but right in a spectacularly unpredictable way. You know, the
stuff that who would expect the President to be firing
the chairman of the Fed unless he gets zero percent
interest or four one k is to be able to
turn to the hedge funds and buy all these alternative investments.
That wasn't part of the plan, but it's a very
welcome part of the new world for precious metals.
Speaker 3: Joh It's like I was at the Bitcoin twenty twenty
five conference in Vegas. I'm telling you, if you have
a chance to go to one of those, you got
to go because the amount of money there was staggering.
You know, bitcoin whales walking around. Remember Trace Mayor, he
was there. He's a bitcoin whale. Now. He told us
to buy it the ten dollars, but I was waiting
for it to go down to seven so I could
feel like I got a deal, which of course I
never never did, and I never bought it until much
much later. But he told me that nearly half of
the Republican Party's contributions are coming from the crypto sector.
And when you think about that, it all makes complete sense. Now, Trump,
the Trump Coin, the Malania coin, all of their involvement
in crypto. It's it's really impressive, isn't it.
Speaker 1: Yeah, those guys they basically should we just pulled out
the checkbook in the last couple of years and they're
they're buying Washington, DC, and you know, the Obviously, we
don't want our politicians to be owned by special interests.
But if they have to be owned by any particular
special interest, cryptos is not bad because crypto guys are
kind of gold bugs. At the same time. By the
time you understand how cryptos work, you know enough about
money to know the difference between sound money and fiat currency,
and so you respect gold for its role in that differentiation,
and so I think a lot of crypto money. Oh wait,
that's right. We didn't talk about this beforehand. Did you
see therypto company that just bought a big piece of
a gold silver royalty company.
Speaker 3: No, I didn't hear about that happens Hey no.
Speaker 1: It was probably a month ago maybe, But which.
Speaker 3: Is the big oh yeah, yeah, token company?
Speaker 1: What do they call it? I'm sorry, I should really
have that at my fingertips. But the kind sense waves
stable stable coins. Okay, Teather is the big stable coin.
Speaker 3: Yeah, that's what everything gets traded into bitcoin and eventually.
Speaker 1: Yeah yeah, yeah, but in the meantime it's uh, you know,
you buy it. They for instance, Teather has bought a
bunch of gold, put it in a vault, and they've
issued tokens which are, yeah, and so so that's good
for precious metals there. But then Heather also went in
and bought a large, almost controlling steak in an emerging
royalty company. And I had somebody explain the point of
that to me. And one of the points is that
similar business model. You know, these a stable coin company,
for instance, has massive revenue per employee, and so does
a royalty company. And if they're going to start coming
out with gold stable coins, then they want access to
physical gold, and so they're looking into the mining industry
and the royalties and everything, and that's you know, there's
way more money in cryptos that's available to flow into
the flow into the royal royalty companies then is currently
the case. So basically, be another big deal for a
segment of precious metals. If cryptos decide, crypto companies decide
that that's an interesting diversification, then look out US for
the junior royalty companies.
Speaker 3: Oh yeah, man, I'm like, this thing is really going
to explode here. My theory i shared it with you
last time, I think was that basically they're going to
use the strategic Bitcoin reserve to pay off the US debt.
All right, because John can you name another investment that
if you put ten cents into it in two thousand
and ten, it would be worth one hundred and twenty thousand.
Speaker 1: Now, yeah, that's that's a hell of a run.
Speaker 3: And you know, En Milligan one hundred.
Speaker 1: No, no, And you know, the mechanics of paying off
the national debt with bitcoin that might take a whole
show for us here too, because that's that's really interesting,
Like how do you how do you maintain the value
of bitcoin while you're handing it out? You know, stuff
like that. But a strategic bitcoin reserve is an idea
that only Trump could come up with.
Speaker 3: Yeah, well it was really cool financial, right, you got
to make something out of nothing, and that's what bitcoin is.
Speaker 1: That's my issue with bitcoin is I still haven't got
my head around how something that doesn't exist in the
physical world can actually be a real thing. You know,
I'm way more comfortable with physical precious metals than with
computer I node. And that doesn't mean it's not right.
It just it means that I don't get it yet,
you know, So maybe there's nothing to get or maybe
I'm just totally missing the crucial part of the process
that makes that real money. Going forward, but you know
they don't need me. Well, so, like I was totally
with you for a lot of years in this job,
I really was. But now I see that the appetite
for bitcoin, the demand is about to go astronomical. It is,
and there's no bitcoin out there. Seven percent of all
the coins produced are trading, and that number went down
last week after two point two billion went into these
bitcoin ets and another two point two billion went into
like ethereum ETFs ethereum. Though they keep making it bitcoin
twenty one million is max. They had it every four years.
Only four hundred and fifty bitcoins per day are being
produced now, like it's just a piece of code. How
can a piece of code be worth that much? But
the key was is like getting people to believe that
it has worth, Like was gold worth anything? When we
had cavemen, it was worthless because probably you couldn't get
a sharp edge on it, so you couldn't make it
into a weapon. And the cave woman wasn't really concerned
about having a Rolex watch, you know, a Rolex president.
Speaker 3: It had no value, but over time it became valuable.
And I think the process here in crypto is exactly
the same John. It wasn't worth anything initially when nobody
wanted it, but now that people want it, it's got value.
And the US government is probably sitting on the largest
cachet of a bitcoin in the world, hundreds of thousands
of coins. So a couple other things. New York is
in the process of a communist takeover as well as Minneapolis.
Are they going to let it happen? Are the Democrats
that delusional that they think this is good for their party?
Speaker 1: Well, now, you know, it's really important to put this
in context. But yeah, there's some very left wing guys
are winning some elections, but they're running at least Mondami
in New York ran basically a populous campaign where his
thing was affordability, you know, and populism. Obviously that's what
Trump did.
Speaker 3: You know.
Speaker 1: Trump ran on a platform of, Hey, you're being screwed
over by a handful of British people. I'll get it
back for you. Put me in office. I will get
what was stolen from you and give it back to you.
The guy in New York did the same thing. You know,
People who who don't have your best interest at heart
are running up rents and they're making food more expensive
than medicare or healthcare and everything, all the rights of
all those things for you. And so that's left wing populism.
That's Bernie Sanders populism. Donald Trump's right wing populism is
I will get the factories back here, so you get
middle class money working on an assembly line or something
like that. But they both target the same people, the
people who feel like they've been screwed over by the establishment.
Speaker 3: Yeah, as how they have.
Speaker 1: This screwed over and yeah, yeah, well yeah, see that
it has the advantage of being true.
Speaker 3: Does that always helps? See? No?
Speaker 1: I think the difference is though that the left wing
policy set fails miserably, and the right wing policy set,
which is reindustrialization and closed borders, has a chance of
being successful. So and you see that in states, right,
all the states that are run according to left wing
populism are hellholes. And the states that run more or
less from the right in kind of a populous way,
that's where everybody's moving. We're all going to Texas and
Florida because it's run according to right wing more or
less populist ideals. So you know, the thing in New
York will play itself out. I mean if if Mondami
gets elected and he actually tries to take a billion
dollars away from the local rich people and spend it
on you know, state run grocery stores and stuff like that,
that'll fail just because it always fails for obvious reasons.
So you chase away all the capital and there's nothing
left to redistribute. And so we'll see. I got to
see though, Mdammie is he's a smooth guy.
Speaker 3: You know, he's nic oil salesman.
Speaker 1: Way Obama like you know he I mean because you know,
you criticize him and he comes back instead of with
hateful rhetoric or you know, picking a fight, he calmly
explains why why you're wrong and why his way is better,
and he does it very well, in complete paragraphs and everything.
So he's a politically very talented guy. And that that
won't save him if he gets into office and actually
does all the stuff he says he's going to do.
But you know, at least it's fun to watch somebody
that that is that articulate and Matt smooth.
Speaker 3: Yeah, well, if he gets rid of AOC knocks her
off the TV, I'll be happy if you'll accomplished a lot, right,
then and there. But it is alarming that people don't
understand that the reason they're in the situation they're in
is because these policies were already tried and failed, and
that's what dug the hole. But I guess we've gone
on long enough, John, But we'll have to do this
again sooner. In any event, go to a rabino dot
substack dot com and sign up for John's substack. Best
writing on the Web, I will say that, And of
course go to our site, Financial Survival Network dot com.
Make sure you sign up for your free newsletter. John.
We'll talk to you in a couple of weeks. Thanks,
carry talk soon.
Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network now more than ever,