Speaker 1: Welcome to another episode of the Chicks on the Right podcast,
where we talk to our friend and sponsor of the show,
Zach Abraham from Bulwart Capital Management, about all the stuff
that's going on in the world, and particularly as it
relates to the economy and finances and retirement and things
such as that, and now that we have a new president,
we can hope for a lot of positive changes. But
you know, he's he's done a lot of executive orders
here in his first week, and so.
Speaker 2: Do you think that any of them have like the
possibility the capability of making us feel immediate changes.
Speaker 3: Yeah, I don't. I don't think that.
Speaker 4: I don't think that you'll get the actual you know,
real economic or or you know, political benefit from it
right away. But I think that you're going to see
it in financial markets. I think you're gonna to see
it in economic news. I think that I think a
lot of people here, especially in the United States, are
going to be really, really, really surprised by the international
you know, the temperature, if you will, toward a Trump presidency,
and it's going to be a lot more positive than
people here in the United States think.
Speaker 3: I've got an employee of mine.
Speaker 4: Who was just down for a week in Panama, and
what was it a wedding where there were several high
ranking government officials there, and they were saying how pumped
they are about a Trump presidency, how Latin America has
been ignored by the Biden administration, and how they're excited,
how they want the United States to put another military
installation in Panama. They want the United States to take
more control over the Panama Canal. So you're already seeing
the narrative here in the United States getting twisted if
you go talk to people that the Panamanians they're loving us, right,
and then you know, and you add that too. I
don't know if we talked about it, but you added
to what we're seeing right now in Brazil, or excuse me,
in Argentina. You added to what we're seeing in Ecuador.
You added to what we may start seeing in Brazil
out of necessity. And I think that you've got the
possibility of an extraordinarily exciting time, especially in South America.
If you remember back to like the fifties and the sixties, seventies,
you know, up through the seventies in the Cold War,
right there was that whole Domino theory of communism, and
they were worried about it going through Latin America and
tipping over one country at a time. Well, these countries
and economies have been sucking and choking on socialist policies
for the last forty years and the bill has come due. Right,
That's what you're seeing in the currency crisis in Argentina
and Brazil, and Argentina right now is laying out a
path to the answer is not more government intervention.
Speaker 3: The answer is economic freedom. The answer is to cut
wreck and it's working right, and it's working in Ecuador.
Speaker 4: And now you've got Panama sitting there going we want
to like, we do not get the straight deal here
in the United States. And the international acceptance of this
or feeling from this is going to be I think
it's going to be profound. I think that you hear.
I think people take him internationally a lot more seriously
than the media would like to have you believe that
they do. And you know, all these executive orders. For
the most part, I'm still trying to get my head
around the Gulf of Mexico.
Speaker 3: Mayor. I don't I mean whatever, I don't really get that,
but I did it. You know, on the moral side
of things too.
Speaker 4: And I'm not surprised to see this because I figured
he would. But I honestly, I honestly, and I don't
I don't mean this, you know, over the top or
to be hyperbolic, but I feel like I can sleep
better knowing that those those people that have been imprisoned
over the January sixth thing, the justices is going to
come back, you know what I mean, like right, just
that that was such a blight and such a disgusting
thing and so scary, right, Like I've never seen anything
like that in my life.
Speaker 5: Yeah, and there are still people that are on the
on the left stand. I can't believe that they're, you know,
going to go free. I can't believe these people They've
been sitting and rotting for four years, like some of
them have been rotting for longer than rapists have, you know.
I mean, it's like it's unreal.
Speaker 4: I just don't even again, you know, pulling back from
and I just I you know, I don't want to
go backwards and six again. But it did bring back
those memories where I'm like, hey, setting off politics aside,
who can turn on those videos and see the police
opening the gates and the doors and exactly and sit
there and still stick to this insurrection narrative, right, Like,
I come.
Speaker 5: On, wells they are it's the same people that pardon
their kids fifteen minutes before Trump gets up on stage.
Is not here all addressed?
Speaker 3: Right? Well?
Speaker 4: Yeah, And it's also it's it's also this completely idiotic
and brain dead a bit of political dogma, right, which is,
we know that you're evil, and we know you're bent
on the destruction of our country. We just need to
figure out how right, We've already made our decision up
about you, and so now now we just have to
figure out what to accuse you of.
Speaker 5: Right, Well, you know you you touched on the media, Zach,
And like the media is not going to be kind him.
We know they're not this time. We're not going to
buy their crap as much, but they're going to just
pummel him up. They've already started, they started yesterday, right,
But like when it comes to inflation, okay, they're gonna
be like, well, eggs aren't cheaper in a week, so
he's they're already saying it.
Speaker 1: They're already saying it.
Speaker 2: It's already so ridiculous.
Speaker 5: So like, so just to be fair because oh my,
these people they're not right. So it's like, okay, so
just to be fair, like when it comes to inflation,
to be just practical about it. What do you think
that the average everyday Americans should expect about inflation and
prices and gas and eggs and bacon and stuff like
that coming down. What should we expect about that?
Speaker 4: What should be So inflation is really tough, but generally speaking,
people need to realize that the Biden administration and look,
Trump was you know, Trump was no light to spender
when he was in office either. But I think we
can all agree now you can make the argument that
a Trump administration would have done something similar. I doubt
that he would have passed the Inflation Reduction Act way
added to it. You still would add inflation without the
Inflation Reduction Act. But people need to accept the fact
that regardless of who you had in president or you
got into the White House in this election term, there
was spilt milk man, Right, what do you want to do?
So if you want to instantly get rid of inflation,
we can do it. And it's called a recession. In
ten to twelve percent unemployment that's one of the pernicious
things about inflation, which is why guys like me when
they were doing this, was sitting.
Speaker 3: There going whoa whoa, whoa, whoa whoa.
Speaker 4: Right, Because once you let that cat out of the bag,
it's really tough because you get to a point where
you don't have good choices left right, and there is
no easy way out.
Speaker 5: So spare you're actual cats.
Speaker 4: Right, And so what your choice really is is we
are going to have to live because of what was
done with higher levels of inflation than we are probably
comfortable with.
Speaker 3: Yeah, we should see it ebb and flow if we
do not.
Speaker 4: Now this is me, guys looking at this from an
economic lens, not looking at it through a political lens.
Speaker 3: Right.
Speaker 4: I have a saying on my show all the time,
we're going to focus more on finance because that's hard enough,
let alone putting your political you know, your political ideas
into it. But but but you we have to accept
that that you've got spill milk.
Speaker 3: Like I said that that Pandora's box was open. It
is what it is.
Speaker 4: And you either want to deal with a nasty recession
which will bring down prices, Okay, that will do it,
or if you don't want that, which I don't think
anybody does, the only real choice you have to go
about it is sort of what they're doing right now
with like doge and cutting regulations. There's a blueprint for
that right now down there in Argentina. And I am
such a big proponent of economic freedom, very much libertarian bends,
and even I've been shocked, you guys about how much
the regulations have offset the economic pain of the government
spending cuts, meaning it's working even better than.
Speaker 3: I would have thought.
Speaker 4: And I think it's kind of that proof case, right,
If we want the least amount of disruption and we
want to deal with inflation, we're gonna have to do
it on a longer timetable, and we're gonna have to
do it through you know, energy, Right, we can control,
there's inputs we can control there that will have a
lot of impact throughout the entire economy. But we're gonna
have to do those things over time, and we're gonna
have to do it through efficiency and increases in productivity. Yeah,
I think if anybody, if anybody argues the opposite of that,
they just like, you know, you can get out there
and argue all day long and sound really smart and
tell everybody that the sky is pink. It's not right,
is blue. But but like that's really the only.
Speaker 3: Way out of it.
Speaker 4: And you know, there's nothing Trump could have done now
or in the next four months to just make inflation
go away.
Speaker 5: I do think he's going to do those things that
He's going to slash and cut and do everything he
can because he does not want to fail. And he
knows that the ultimate test of success is with people
like us who are going to the grocery store, who
are going to the gas tanks and all of that stuff.
It's not you know, this intangible thing. It is tangible,
Like we have to be able to see success in
our pocket books, you know. Yeah, Yeah, He's going to
do that.
Speaker 4: Yeah, And I think that you're going to see it
in you know, I I think you're going to see
it in a whole host of ways. Right, Like, like
I said, we there are immediate levers he can pull,
and he's already pulling it. On the energy side that
you know, oil drops ten percent, that's tax.
Speaker 3: Cut for the entire commy.
Speaker 4: Yeah right, yeah, that because that cost flows through to
every product you buy, right, And so I like that
that stuff is going on, right, like the you know
trade deals, uh, you know, manufacturing chips now here in
the United States, so many of these things that he's
a proponent of. But but they're My whole point was
they were addressing it really the only way that you
can and the only way that I think is really viable.
And the other thing is, remember it's and they'll try
to play this game. It's not so much about the
level of inflation as it is is the level of
inflation compared to growth.
Speaker 3: Right.
Speaker 4: So so let's say we had you know, four percent inflation
is awful, right, is a four percent that's it's it's
it's not horrible, but it's way above average, is way
higher than we'd like to see and comfortably right. However,
if you had nine percent economic growth, right, that means
you're growing at five percent real that's massive, right, And
and and so inflation is a context thing, right, They're like,
can you live with three and a half four percent inflation?
Speaker 3: And my attitude is, well, what's the growth rate? Right?
If the growth rates four and a half, that's not
going to be fun. Right. If the growth rates.
Speaker 5: Eight, yeah, that's fun.
Speaker 3: Yeah, Because.
Speaker 4: Essentially and it's more complicated than this, but essentially, the
way you look at it is as long if I've
got an asset that's appreciating at eight to ten percent
a year and inflation's running at four, I mean, it's
not the best thing in the world, but I'm making
a net of six percent a year, Right, that's a
wonderful return. So again, it's all contacts, and I think
that what they're I don't think I know. What they're
trying to do is they're trying to push up the
other end, right, So like we can deal with spending,
and we can deal with these things, but we can
also deal with it by jacking up productivity, you know,
decreasing regulations and making the economy more efficient.
Speaker 2: Well, he's definitely doing I mean, he's doing all the
steps to deregulate or at least freeze new regulations for
the time being, which is I know, thank God, is right. Yeah,
I mean, it's just I feel like it's just the
beginning of a lot of wins, and I hope that
we all feel that. And it's got to be an
exciting time for you because you've got now twenty twenty five,
you're like previewing it. You're doing seminars about it, tell
people how they can learn more about what you expect
to see in the coming year.
Speaker 3: Yeah, it's funny you bring this up.
Speaker 4: We're licking our chops just because everything he's doing economically
lines up with so many of these parts of the
market that have not been followed and been ignored, and
it just have insanely, ridiculously cheap valuations.
Speaker 3: So we're like, here we go. Man, it feels like
our super Bowl, you know so.
Speaker 4: Anyway, Yeah, best way to get all of us Boardcapitalmanagement
dot com, Know your Risk Radio dot com pretty easy
to find.
Speaker 3: We do our show every single day.
Speaker 4: It's about twenty five to thirty minutes summation of everything
going on economically and politically and in markets that day.
And yeah, not too our defines Google, Know Your Risk
Radio or Boord Capital Management.
Speaker 5: All right, thanks once again, Zach.
Speaker 3: Thank you ladies, and happy New Year.
Speaker 5: Happy too.
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