1
00:00:00,080 --> 00:00:03,279
Speaker 1: I mean food is up fifty percent of eggs and beef,

2
00:00:03,359 --> 00:00:07,679
and insurance home prices are up over fifty percent in

3
00:00:07,759 --> 00:00:10,919
the last four years, So I mean, what are you

4
00:00:10,960 --> 00:00:13,720
talking about. We need price carry, Like I said, we

5
00:00:13,759 --> 00:00:17,440
need prices in this country to gradually fall. Deflation is

6
00:00:17,519 --> 00:00:18,359
good and healthy.

7
00:00:18,600 --> 00:00:22,440
Speaker 2: You are listening to Carrie Lutz's Financial Survival Network, where

8
00:00:22,440 --> 00:00:25,879
you get valuable information you just can't find anywhere else

9
00:00:26,440 --> 00:00:30,000
to thrive in today's trying times. You need the Financial

10
00:00:30,120 --> 00:00:35,200
Survival Network now more than ever. Go to Financial Survivalnetwork

11
00:00:35,240 --> 00:00:38,960
dot com and get your free newsletter and gift. Financial

12
00:00:39,079 --> 00:00:42,759
Survival Network now more than ever.

13
00:00:45,960 --> 00:00:46,560
Speaker 3: And welcome.

14
00:00:46,719 --> 00:00:50,520
Speaker 4: You are listening to and watching the Financial Survival Network.

15
00:00:50,560 --> 00:00:55,000
I'm your host Carrie Lutz's Election Day I call pentas

16
00:00:55,039 --> 00:01:01,200
on And you're really lucky, you people who are tuned

17
00:01:01,200 --> 00:01:03,960
in right now because you're listening to the only two

18
00:01:04,000 --> 00:01:08,719
people left in America who care about little things like

19
00:01:09,040 --> 00:01:14,959
deficits and Michael like elections. You know it's said when

20
00:01:15,000 --> 00:01:18,560
you elect the new government, you just change the face

21
00:01:18,599 --> 00:01:22,439
of government. Do you don't really change anything? Is this

22
00:01:22,519 --> 00:01:23,519
time going to be different?

23
00:01:24,760 --> 00:01:26,760
Speaker 1: I think it's going to be different because the market

24
00:01:26,920 --> 00:01:29,040
the bond market is not going to tolerate this anymore.

25
00:01:30,439 --> 00:01:33,120
If you look like what happened in the UK has

26
00:01:33,120 --> 00:01:35,280
happened here in the past two in the seventies and

27
00:01:35,400 --> 00:01:38,879
early eighties, even though we are the world reserve currency,

28
00:01:39,400 --> 00:01:46,400
and supposedly that means that investors internationally had insatiable desires

29
00:01:46,599 --> 00:01:48,680
for our mom They just buy.

30
00:01:48,560 --> 00:01:49,120
Speaker 3: It no matter what.

31
00:01:49,599 --> 00:01:51,879
Speaker 1: But I seem to remember that, I think that's ten

32
00:01:51,959 --> 00:01:55,799
year note hit fifteen percent, okay, fifteen percent in the

33
00:01:55,840 --> 00:01:58,920
early eighties. Didn't we have a very liquid bond market

34
00:01:59,000 --> 00:02:02,519
back then. Didn't we have the world reserve currency back then?

35
00:02:03,120 --> 00:02:06,480
So I mean, look, look, you know, bond yields are

36
00:02:06,519 --> 00:02:08,960
concerned about three things that are happening. It's just sort

37
00:02:08,960 --> 00:02:11,400
of new. Now we have we have an inflation problem

38
00:02:11,400 --> 00:02:15,039
in this country that Jerome Powell just doesn't want to

39
00:02:15,080 --> 00:02:17,159
deal with because he doesn't want to pay a trillion

40
00:02:17,199 --> 00:02:18,719
dollars in interest payments on the debt.

41
00:02:19,080 --> 00:02:21,199
Speaker 3: That's why he cut interest rates by fifty basis points.

42
00:02:21,199 --> 00:02:22,599
Speaker 1: I don't know if I had an opportunity to tell

43
00:02:22,599 --> 00:02:25,199
you that on your drome, but you think about, well,

44
00:02:25,199 --> 00:02:28,199
why did you cut fifty Jerome if inflation is way

45
00:02:28,199 --> 00:02:30,400
above your target, and it's been above your target for

46
00:02:30,400 --> 00:02:32,639
forty three stinking freaking months.

47
00:02:33,080 --> 00:02:34,439
Speaker 3: You don't want to get below your.

48
00:02:34,280 --> 00:02:37,759
Speaker 1: Target before you start cutting rates. Shouldn't you be raising rates?

49
00:02:37,879 --> 00:02:40,280
He cut by fifty basis points. Not because we have

50
00:02:40,360 --> 00:02:43,199
a very high unemployment, and unemployment rate at four point

51
00:02:43,280 --> 00:02:46,240
one percent is still way below the long term average

52
00:02:46,280 --> 00:02:48,879
of five point seven. Isn't because the stock market's like,

53
00:02:48,960 --> 00:02:51,759
you know, really cheap, I mean crashed. You know, it's

54
00:02:51,759 --> 00:02:54,039
a this expensive stock market. The other stock market, by

55
00:02:54,039 --> 00:02:57,400
the way, Kerries trading at three times sales. That's like

56
00:02:57,800 --> 00:03:00,919
never happened before, you know, it's like in creditably expensive,

57
00:03:01,280 --> 00:03:04,639
two one hundred percent of GDB. So Jerome's cutting interest

58
00:03:04,719 --> 00:03:07,719
rates because he doesn't care about inflation, doesn't care about

59
00:03:07,719 --> 00:03:10,240
the middle class. He cares about the solvency or the

60
00:03:11,879 --> 00:03:15,319
ostensibility of the solvency of the United States Treasury.

61
00:03:15,479 --> 00:03:17,159
Speaker 3: So that's why he cut. Right, So we have inflation

62
00:03:17,240 --> 00:03:18,240
that he can't deal with.

63
00:03:18,560 --> 00:03:23,400
Speaker 1: We've got illiquidity, right, we have illiquidity down the bond market,

64
00:03:23,520 --> 00:03:26,120
the reverse reboil facility, which is where all this money

65
00:03:26,120 --> 00:03:28,319
that was created by the Fed and went into excess

66
00:03:28,360 --> 00:03:30,520
reserves and that was parked at the Fed earning a

67
00:03:30,599 --> 00:03:32,560
nice stat interest rate. It's two and a half trillion

68
00:03:32,599 --> 00:03:35,240
dollars two years ago. Now it's one hundred and fifty

69
00:03:35,280 --> 00:03:38,919
billion dollars. So your liquidity in the reversary bol facility

70
00:03:39,000 --> 00:03:41,199
is gone. So now what you have is the Treasury

71
00:03:41,240 --> 00:03:43,879
General account and that's not going to last long. That'll

72
00:03:43,879 --> 00:03:46,800
be exhausted in early twenty twenty five. And then you

73
00:03:46,840 --> 00:03:50,479
have ill liquidity in the bond market, show illiquidity, inflation,

74
00:03:50,840 --> 00:03:52,280
and insolvency.

75
00:03:52,439 --> 00:03:54,199
Speaker 3: Those three things are very bad.

76
00:03:54,800 --> 00:03:56,960
Speaker 1: And that's going to put a check on no matter

77
00:03:57,000 --> 00:04:00,080
who who, no matter who wins the White House, and

78
00:04:00,120 --> 00:04:03,120
no matter who controls Congress, if they are going to

79
00:04:03,199 --> 00:04:07,439
put forth their massive spending programs for either party. Trump

80
00:04:07,520 --> 00:04:10,240
is more growth, but still a lot of deficits. Nobody

81
00:04:10,280 --> 00:04:12,680
wants to touch in titlements, Kerry, no, what's talking about?

82
00:04:12,719 --> 00:04:15,120
Speaker 3: So then s can't do that.

83
00:04:15,639 --> 00:04:17,839
Speaker 1: So if they get past that, if Kamala Harris wants

84
00:04:17,879 --> 00:04:19,759
to buy everybody a house, and I don't know the

85
00:04:19,800 --> 00:04:22,399
result of the election in near to you, but I'm

86
00:04:22,439 --> 00:04:25,759
hoping that we have some you know, bastion of sanity

87
00:04:26,240 --> 00:04:28,920
in DC where they just say Hey, listen, the bond

88
00:04:28,959 --> 00:04:31,279
market is going to revolve. Interest rates are going to

89
00:04:31,360 --> 00:04:33,000
spike like they did in eighty seven, and we're going

90
00:04:33,079 --> 00:04:35,360
to have an absolute meltdown no matter what's going on

91
00:04:35,439 --> 00:04:40,199
in the economy if interest rates become unglued. Yeah, well,

92
00:04:40,680 --> 00:04:44,600
we know things are not all peachy. I mean, it's amazing.

93
00:04:44,759 --> 00:04:46,759
I was talking to a friend who I used to

94
00:04:46,839 --> 00:04:50,399
think was fairly intelligent. He is intelligent, to be fair,

95
00:04:50,759 --> 00:04:53,920
but he says, you know, what's wrong with the country.

96
00:04:53,959 --> 00:04:56,079
My portfolio is doubled.

97
00:04:56,399 --> 00:05:00,000
Speaker 4: And I said, that is what's wrong with the country?

98
00:05:00,720 --> 00:05:05,199
Speaker 3: Doubled? Right? When did and when did it double? And

99
00:05:05,240 --> 00:05:08,319
what timeframe over what left over the past eighteen months?

100
00:05:08,360 --> 00:05:11,120
I'd imagine, right, eighteen months.

101
00:05:10,839 --> 00:05:13,839
Speaker 1: Two years, well after he lost after he lost half

102
00:05:13,879 --> 00:05:16,199
of his money in COVID And yeah, you know.

103
00:05:16,199 --> 00:05:16,879
Speaker 3: It depends on what.

104
00:05:17,120 --> 00:05:19,360
Speaker 1: Yeah, but the problem with the problem with the country

105
00:05:19,439 --> 00:05:23,000
is is twofold, massive amount of debt and asset bubbles,

106
00:05:23,000 --> 00:05:24,240
and then you can late most of that at the

107
00:05:24,279 --> 00:05:26,959
feat of the Federal Reserve. But in something I find

108
00:05:27,000 --> 00:05:30,199
even more interesting is and by the way, we're not

109
00:05:30,240 --> 00:05:33,319
short here at pental portfolio Strategies. We're long long and

110
00:05:33,360 --> 00:05:35,959
strong this market right now, but we have a hair

111
00:05:36,040 --> 00:05:40,199
trigger finger on whence we could change that allocation, because,

112
00:05:40,519 --> 00:05:43,399
like I said before, the bond market is is going

113
00:05:43,480 --> 00:05:46,000
to be key here, and I've warned about it in

114
00:05:46,040 --> 00:05:48,279
twenty thirteen. I said, No, I mean, don't have to

115
00:05:48,279 --> 00:05:50,639
worry about it now. I said, but in the in

116
00:05:50,720 --> 00:05:54,319
the next few years, next couple of decades, we are

117
00:05:54,360 --> 00:05:56,759
going to have a massive disruption in the bond market

118
00:05:56,839 --> 00:05:58,959
because the FED is going to have to choke off

119
00:05:59,120 --> 00:06:01,360
the that is going to create inflation, and then they're

120
00:06:01,360 --> 00:06:03,160
gonna have to choke it off. And if they don't

121
00:06:03,160 --> 00:06:05,839
have the willingness to fight it by raising interest rates,

122
00:06:05,839 --> 00:06:07,600
which is in the facto, will blow up of the

123
00:06:07,600 --> 00:06:10,439
bond market. The FED took interest rates from zero to

124
00:06:10,480 --> 00:06:13,319
five and a half, and if they don't have the

125
00:06:15,399 --> 00:06:19,120
temerity to I don't know if that's the right word,

126
00:06:18,879 --> 00:06:21,959
would if they don't have the courage, yeah, the fortitude

127
00:06:22,480 --> 00:06:26,000
for to two thank you to actually raise rates keep

128
00:06:26,040 --> 00:06:28,639
them there long enough to kill inflation. And I don't

129
00:06:28,680 --> 00:06:33,079
mean make inflation go up more slowly, and I don't

130
00:06:33,160 --> 00:06:35,920
want I don't want prices to rise less quickly than

131
00:06:35,920 --> 00:06:40,519
they were before. No, you need prices down. The price

132
00:06:40,639 --> 00:06:42,680
level of things has to fall. And if you if

133
00:06:42,680 --> 00:06:45,040
you doubt that, just look at your assurance bill, your

134
00:06:45,079 --> 00:06:48,879
car payment, and your home price and your equity prices.

135
00:06:48,920 --> 00:06:53,959
They have to fall otherwise that they're unsustainable, dangerous, and

136
00:06:54,439 --> 00:06:59,600
we are in danger of absolutely collapsing, which we don't

137
00:06:59,600 --> 00:07:02,040
want to have that weight, rather have a gradual air

138
00:07:02,120 --> 00:07:03,040
let out of this bubble.

139
00:07:05,560 --> 00:07:06,839
Speaker 3: But do you see that?

140
00:07:07,120 --> 00:07:09,959
Speaker 1: Do you see any willingness to actually deal with our

141
00:07:10,000 --> 00:07:10,920
actual problems?

142
00:07:11,839 --> 00:07:15,720
Speaker 3: No? I haven't heard it mentioned once during this entire election,

143
00:07:15,879 --> 00:07:19,439
other than putting Elon Musk in charge of the Government

144
00:07:19,480 --> 00:07:25,480
Efficiency Commission, which government and efficiency are repellent to one another.

145
00:07:25,959 --> 00:07:30,800
Speaker 1: It's an oxymoron. Yeah, it's an oxman, you know, Carrie.

146
00:07:31,000 --> 00:07:35,879
You know I've been in this business for thirty almost

147
00:07:35,959 --> 00:07:40,199
thirty four years now and I never thought I would

148
00:07:40,240 --> 00:07:43,839
say this, But we our data now looks more like China.

149
00:07:44,600 --> 00:07:48,480
We're just making stuff up now, look a look at

150
00:07:48,519 --> 00:07:50,879
the look at the non PHM payer reports that are

151
00:07:50,879 --> 00:07:51,720
coming out.

152
00:07:51,920 --> 00:07:55,319
Speaker 4: I believe everything, Michael, I believe everything. You don't think

153
00:07:55,360 --> 00:07:56,920
your government would lie to you, do you?

154
00:07:59,000 --> 00:08:00,000
Speaker 3: If you?

155
00:08:00,120 --> 00:08:03,040
Speaker 1: We we learned in the last few years I've known

156
00:08:03,079 --> 00:08:06,519
it all along, but you've known it of course, sure,

157
00:08:06,560 --> 00:08:12,920
But the media had this very thin veil of objectivity

158
00:08:13,319 --> 00:08:15,199
that's been ripped off. I mean, if you doubt that,

159
00:08:15,360 --> 00:08:18,639
just look at the late night comedians. You know, ABC

160
00:08:18,839 --> 00:08:21,879
has a signature program called the Jimmy Kimmel. I mean,

161
00:08:21,879 --> 00:08:27,279
this is just not they not not funny, this objectivity.

162
00:08:26,839 --> 00:08:27,240
Speaker 3: They don't.

163
00:08:27,920 --> 00:08:30,800
Speaker 1: It's just it's just they're just stumping for Kamala Harris.

164
00:08:31,279 --> 00:08:34,639
And over at CBS is not any different. So and

165
00:08:34,639 --> 00:08:36,799
and this is you know, don't you think that people

166
00:08:36,840 --> 00:08:41,559
that the executives at ABC, CBS, NBC understand that when

167
00:08:41,559 --> 00:08:44,720
they put Kamala Harris on a giggling fest on Saturday

168
00:08:44,799 --> 00:08:47,480
Night Live, you know, two days before the election, that

169
00:08:47,480 --> 00:08:50,240
that they're trying to corrupt and.

170
00:08:50,960 --> 00:08:54,240
Speaker 4: Vote the opposite had the opposite if he had tended

171
00:08:54,200 --> 00:08:58,600
to effect. You know, it's all just a Hollywood script

172
00:08:59,240 --> 00:09:00,320
that we're living here.

173
00:09:00,759 --> 00:09:03,679
Speaker 3: And Hollywood only pays for happy endings.

174
00:09:03,919 --> 00:09:09,279
Speaker 4: They don't pay for depressing, bad, tragic endings. It's rare

175
00:09:09,399 --> 00:09:15,080
to ever see a movie that ends unhappily, and that's

176
00:09:15,480 --> 00:09:18,639
what the governments do. And they're just paying for happy endings.

177
00:09:18,960 --> 00:09:22,200
Speaker 1: Well, the government's also, unfortunately, like I said, looking more

178
00:09:22,240 --> 00:09:24,559
like China. So let's just take the Non farm Paler report,

179
00:09:25,000 --> 00:09:26,480
and I'm not even talking about the eight hundred and

180
00:09:26,480 --> 00:09:29,519
eighty one thousand jobs after revisions, and they said, oh,

181
00:09:29,559 --> 00:09:33,399
by the way, there's a you know, we overcounted. Oh right,

182
00:09:33,519 --> 00:09:36,080
be sure, where did they go? I don't know, we

183
00:09:36,720 --> 00:09:39,399
just added the birth death model was a little skewed.

184
00:09:39,799 --> 00:09:43,240
But then they last report, right, this last report of course,

185
00:09:43,240 --> 00:09:46,879
which oh it was just hurricane this hurricane.

186
00:09:46,480 --> 00:09:47,960
Speaker 3: Storm, so don't even don't even look at it.

187
00:09:48,000 --> 00:09:54,320
Speaker 1: Carry But second, look at the revisions. The August revision

188
00:09:55,080 --> 00:10:00,000
was eighty one thousand jobs less than what the originally

189
00:10:00,240 --> 00:10:04,120
visually reported. Well, eighty one thousand is more than fifty percent.

190
00:10:04,279 --> 00:10:09,600
They're off by more than fifty percent on their initial guests.

191
00:10:10,960 --> 00:10:14,879
And so we have a federal reserve that controls the

192
00:10:15,679 --> 00:10:19,759
price of money based on information that comes in arrears

193
00:10:19,919 --> 00:10:23,799
that's completely faulty. Doesn't that bother anybody? I mean, we're

194
00:10:23,840 --> 00:10:25,919
in a big met The middle class of this country

195
00:10:25,919 --> 00:10:29,200
has been eviscerated, hanging by a thread, where now we

196
00:10:29,240 --> 00:10:33,879
have top twenty percent, the top quintile of the inhabitants

197
00:10:33,919 --> 00:10:37,440
of this nation are running everything and they're keeping the

198
00:10:37,480 --> 00:10:41,759
economy afloat because their house prices are bubblicious territory and

199
00:10:41,840 --> 00:10:44,000
along with their four one K plans.

200
00:10:44,679 --> 00:10:47,080
Speaker 3: And when that goes, we're gonna have We're not gonna

201
00:10:47,080 --> 00:10:50,919
have just a collapse. Who have chaos in the streets.

202
00:10:51,320 --> 00:10:54,960
I'm afraid. I pray that doesn't happen, but you know

203
00:10:55,039 --> 00:10:56,519
you have. You can't have.

204
00:10:56,399 --> 00:11:00,600
Speaker 1: A healthy country without a healthy and virate, virant middle class.

205
00:11:00,639 --> 00:11:01,320
Speaker 3: Just can't have it.

206
00:11:01,720 --> 00:11:04,840
Speaker 4: Yeah, can't not in a modern economy, that's for sure,

207
00:11:04,879 --> 00:11:09,639
where everything hinges on demand. Michael, Like these guys like

208
00:11:09,720 --> 00:11:12,279
Trump is running on he's going to bring the price

209
00:11:12,320 --> 00:11:15,480
of stuff down, but he's also running on I'm going

210
00:11:15,519 --> 00:11:17,240
to lower interest rates.

211
00:11:17,799 --> 00:11:21,639
Speaker 3: And my question is like, how do you do this?

212
00:11:22,039 --> 00:11:23,000
You cut the government?

213
00:11:23,279 --> 00:11:25,639
Speaker 4: Like, I don't know if the last time you were on,

214
00:11:25,720 --> 00:11:28,279
I told you I did this exercise with chat GPT.

215
00:11:29,039 --> 00:11:31,879
Speaker 3: I said, I want to balance the budget. How do

216
00:11:31,919 --> 00:11:32,440
I do it?

217
00:11:32,639 --> 00:11:35,600
Speaker 4: And the first thing it says is increase taxes by

218
00:11:35,639 --> 00:11:40,279
fifty percent? And then I had to tell that stupid thing. Look,

219
00:11:41,080 --> 00:11:43,679
I'd want to do it without raising taxes. Give me

220
00:11:43,720 --> 00:11:46,799
a list of one hundred agencies we can get rid

221
00:11:46,840 --> 00:11:50,480
of that no one will notice. And Michael, there were

222
00:11:51,200 --> 00:11:54,960
agencies in there that I don't know where they came from.

223
00:11:55,000 --> 00:11:56,080
Speaker 3: I don't know what they do.

224
00:11:56,879 --> 00:12:00,519
Speaker 4: The only valid agency in the bunch was the Apartment

225
00:12:00,519 --> 00:12:04,919
of Redundancy Department, you know, and the chat GPT just

226
00:12:04,960 --> 00:12:06,679
didn't want to get rid of that one.

227
00:12:06,720 --> 00:12:09,159
Speaker 1: Well, even if you got rid of those hundred agencies,

228
00:12:09,480 --> 00:12:11,600
they probably have no money in there other than what

229
00:12:11,639 --> 00:12:16,720
do you if you can't solve Social Security, Medicare, Medicaid,

230
00:12:17,039 --> 00:12:19,200
and the interest on the debt, and you don't want

231
00:12:19,200 --> 00:12:22,440
to touch defense. I don't care if you cut every

232
00:12:22,480 --> 00:12:25,799
other program, you haven't solved any problem. That's where all

233
00:12:25,840 --> 00:12:27,879
the money is being spent right now, and it's going

234
00:12:27,919 --> 00:12:29,080
to get a lot worse. You know, we're going to

235
00:12:29,159 --> 00:12:32,240
have a sixty We're going to have at a minimum

236
00:12:32,600 --> 00:12:36,159
a sixty trillion, sixty trillion dollar deficit by two thousand

237
00:12:36,200 --> 00:12:40,759
and fifty sixty trillion dollars that I mean, and that's

238
00:12:40,840 --> 00:12:43,399
if we don't have a recession, and if interest rates

239
00:12:43,519 --> 00:12:46,080
don't go up and an inflation is not a problem.

240
00:12:46,399 --> 00:12:48,120
Speaker 3: I mean, I'll bet you anything in the.

241
00:12:48,039 --> 00:12:51,080
Speaker 1: World will have a recession by twenty and fifty. Yeah,

242
00:12:51,600 --> 00:12:53,879
I bet anything, any amount of money he wants it.

243
00:12:54,440 --> 00:12:59,360
Speaker 4: Well, one thing, if they bam sugar and and nicotine

244
00:12:59,639 --> 00:13:03,440
and carbohydrates, there should just be a law against carbohydrates.

245
00:13:03,799 --> 00:13:04,960
Speaker 3: That would get rid.

246
00:13:04,799 --> 00:13:07,759
Speaker 4: Of our medicare problem and all of our health problems.

247
00:13:07,960 --> 00:13:10,039
But then the problem would be that people would be

248
00:13:10,120 --> 00:13:12,919
living too damn long, and everyone would be living to

249
00:13:13,000 --> 00:13:17,440
one hundred or ninety and they'd be collecting Social Security.

250
00:13:17,759 --> 00:13:20,159
So that doesn't really solve the problem, does it.

251
00:13:20,960 --> 00:13:21,000
Speaker 1: No?

252
00:13:22,039 --> 00:13:22,320
Speaker 3: Not all.

253
00:13:22,320 --> 00:13:26,120
Speaker 1: You know, I could say, as anecdotally, we have one

254
00:13:26,120 --> 00:13:33,960
of the most dangerous food supplies on the planet. Yeah.

255
00:13:34,080 --> 00:13:35,639
Speaker 3: I came back from Italy not too long.

256
00:13:35,559 --> 00:13:39,879
Speaker 1: Ago, and we ate out breakfast, lunch, and dinner every

257
00:13:39,960 --> 00:13:43,080
day for like ten days. And came back at the

258
00:13:43,080 --> 00:13:46,679
same week and I have one dinner here, and you know,

259
00:13:46,679 --> 00:13:47,960
I gained three pounds.

260
00:13:48,840 --> 00:13:52,440
Speaker 3: We get pasta the breakfast. Kerry. I asked you, who

261
00:13:52,519 --> 00:13:55,919
is the largest contributory to the Food and Drug Administration?

262
00:13:56,639 --> 00:13:59,080
Speaker 4: Oh, it's a big pharma though, right, I mean they're

263
00:14:00,039 --> 00:14:04,039
they paidillions of dollars in bonuses to the employees to

264
00:14:04,120 --> 00:14:05,759
approve these bad drugs.

265
00:14:06,200 --> 00:14:07,039
Speaker 3: Isn't that? Isn't that?

266
00:14:07,120 --> 00:14:11,000
Speaker 1: Like, Yeah, so i make my money when people get sick,

267
00:14:11,200 --> 00:14:13,960
and I'm going to contribute the biggest lark like seventy

268
00:14:13,960 --> 00:14:16,080
five percent or something to the budget of the fight

269
00:14:16,440 --> 00:14:18,320
from from pharmaceouil.

270
00:14:17,840 --> 00:14:21,279
Speaker 3: Industry that brought does that bother any money? That is that?

271
00:14:21,600 --> 00:14:22,879
Is that counterintuitive?

272
00:14:23,600 --> 00:14:26,200
Speaker 4: Their purpose isn't to fight a cure, it's to find

273
00:14:26,279 --> 00:14:31,679
a long term treatment that makes you dependent. Like you know,

274
00:14:32,320 --> 00:14:35,240
somebody likned it the other day or telling me, like

275
00:14:35,879 --> 00:14:39,279
you know, dating sites don't really want want you to

276
00:14:39,320 --> 00:14:42,960
find people, and they're designed so you don't find people.

277
00:14:43,120 --> 00:14:47,080
Dating sites are designed so you keep paying your subscription fees.

278
00:14:47,399 --> 00:14:51,559
And the drug industry, it's a model for American industry.

279
00:14:51,600 --> 00:14:54,720
The food industry. They don't want you healthy. They want

280
00:14:54,799 --> 00:14:57,840
you eating more and more of this stuff. And that's

281
00:14:57,879 --> 00:15:02,120
why it's all designed food kitchens, so it hacks your brain.

282
00:15:02,200 --> 00:15:05,759
It biohacks your brain. And the economy is no different.

283
00:15:06,000 --> 00:15:10,000
They just want just spending, spending, spending, without any regard

284
00:15:10,159 --> 00:15:13,320
to uh financial solvency or anything else.

285
00:15:13,679 --> 00:15:15,559
Speaker 3: It's all rigged.

286
00:15:15,720 --> 00:15:18,240
Speaker 1: Yeah, and now the zeitgeist of today is you know

287
00:15:18,919 --> 00:15:22,120
how you grow an economy is by how much your

288
00:15:22,120 --> 00:15:24,919
government wants to stimulate. But it's as if the government

289
00:15:24,960 --> 00:15:28,799
had plenary control of the economy and they could just like,

290
00:15:29,399 --> 00:15:32,159
if they want to be nice, they'll just stimulate, borrow

291
00:15:32,159 --> 00:15:34,759
a bunch of money and give it to you. And

292
00:15:34,799 --> 00:15:37,399
how much the economy grows is just dedicated on how

293
00:15:37,480 --> 00:15:38,240
much they want to borrow.

294
00:15:38,279 --> 00:15:39,960
Speaker 3: And I mean when did that?

295
00:15:40,120 --> 00:15:42,960
Speaker 1: When did that become a formula for success in a

296
00:15:43,000 --> 00:15:48,279
capitalist economy? You know, yeah, China is completely communists.

297
00:15:48,279 --> 00:15:48,639
Speaker 3: I get that.

298
00:15:48,679 --> 00:15:51,240
Speaker 1: But you know people are saying, well, even you here

299
00:15:51,320 --> 00:15:55,879
are are American media, if only the communists, the PBOC

300
00:15:56,080 --> 00:15:59,480
and the and the and the and Beijing will just

301
00:15:59,480 --> 00:16:02,399
just agree to stimulate a little more, that's only just

302
00:16:02,440 --> 00:16:03,080
to stimulate.

303
00:16:03,559 --> 00:16:07,600
Speaker 4: That worked real good last time. It reminds me of

304
00:16:07,960 --> 00:16:11,080
a Saturday Night Live skit back when Saturday Night Live

305
00:16:11,240 --> 00:16:13,600
was actually really funny and we used to race home

306
00:16:13,639 --> 00:16:17,399
to see it because we didn't have DV yours. Jimmy

307
00:16:17,399 --> 00:16:21,480
Carter was talking about inflation and his plan was, I'm

308
00:16:21,480 --> 00:16:24,399
going to use inflation to make everybody in the country

309
00:16:24,440 --> 00:16:27,879
a millionaire. That's how I'm going to solve the problem.

310
00:16:28,320 --> 00:16:34,080
And sure enough, Jerome Powell and the current leaders and

311
00:16:34,200 --> 00:16:35,080
Trump as well.

312
00:16:36,080 --> 00:16:36,799
Speaker 3: That's their plan.

313
00:16:36,840 --> 00:16:39,879
Speaker 4: They're going to make everyone a millionaire, Michael, and basically

314
00:16:39,960 --> 00:16:40,720
home prices.

315
00:16:41,679 --> 00:16:44,639
Speaker 3: We're already halfway there for a lot of the country. Yeah,

316
00:16:44,840 --> 00:16:46,519
and being a millionaire used to mean something.

317
00:16:46,840 --> 00:16:49,960
Speaker 1: It doesn't mean anything anymore because everybody isn't well, I

318
00:16:50,240 --> 00:16:50,919
say everybody.

319
00:16:52,039 --> 00:16:53,440
Speaker 3: It's a bifurcated country.

320
00:16:53,480 --> 00:16:57,600
Speaker 1: So yeah, you know, there was a one of the

321
00:16:58,360 --> 00:17:03,039
founding fathers of Bloomberg about how wonderful inflation is because

322
00:17:03,080 --> 00:17:06,200
inflation is now back, prices are now back down to

323
00:17:06,519 --> 00:17:12,720
where they were and before COVID, and that wages have

324
00:17:12,799 --> 00:17:13,920
kept pace with inflation.

325
00:17:15,519 --> 00:17:16,720
Speaker 3: What wages like?

326
00:17:16,759 --> 00:17:22,880
Speaker 1: What average wages have kept up with CPI average wages?

327
00:17:23,400 --> 00:17:26,000
That's assuming everybody gets to say that gets that average.

328
00:17:26,359 --> 00:17:28,240
But if you're on a fixed income, tell me how

329
00:17:28,279 --> 00:17:31,319
your wages have kept up with inflation? Right, if you

330
00:17:31,359 --> 00:17:33,039
don't have a job, tell me how your wages have

331
00:17:33,119 --> 00:17:36,359
kept up with inflation? And that again, those wages are

332
00:17:36,400 --> 00:17:40,640
all skewed to the top twenty percent, and those wages

333
00:17:40,720 --> 00:17:44,519
have kept up with CPI. Is CPI accurate measurement of

334
00:17:44,759 --> 00:17:47,920
the really has occurred with prices? No?

335
00:17:48,240 --> 00:17:50,440
Speaker 3: I mean food is up fifty percent if you look, you.

336
00:17:50,359 --> 00:17:54,799
Speaker 1: Know, eggs and beef and insurance home prices are up

337
00:17:54,839 --> 00:17:56,920
over fifty percent in the last four years.

338
00:17:57,279 --> 00:17:59,759
Speaker 3: So I mean, what what what are you talking about?

339
00:18:00,079 --> 00:18:02,599
Speaker 1: We need price carried, Like I said, we need prices

340
00:18:02,640 --> 00:18:06,119
in this country to gradually fall. Deflation is good and

341
00:18:06,200 --> 00:18:09,759
healthy because you're going to get if you can't get

342
00:18:09,759 --> 00:18:12,240
that to happen, if you're gonna if your own power

343
00:18:12,359 --> 00:18:16,720
is gonna say, I am telling you that inflation above

344
00:18:16,759 --> 00:18:19,319
two percent, which it still is and it's been that

345
00:18:19,400 --> 00:18:22,920
way for forty three months. If inflation is above two percent,

346
00:18:23,319 --> 00:18:26,799
I need to start cutting rates aggressively to try to

347
00:18:26,880 --> 00:18:31,519
keep inflation from falling any further. That's telling investors in

348
00:18:31,559 --> 00:18:35,680
our fixed income spectrum that since our central bank no

349
00:18:35,720 --> 00:18:39,119
longer cares about inflation, we need to start caring about

350
00:18:39,160 --> 00:18:42,039
inflation a whole lot more. And they are. You know,

351
00:18:42,960 --> 00:18:49,400
here's here's here's a fact. Mortgage rates have gone up significantly, significantly.

352
00:18:49,519 --> 00:18:53,119
They just butt like from six point one percent to

353
00:18:53,279 --> 00:18:57,000
seven and a half percent since Powell cut interest rates

354
00:18:57,119 --> 00:19:01,680
to bring interest rates down. Now, what's that about the

355
00:19:02,359 --> 00:19:07,039
benchmark ten year treasury You know, that's what that's mostly

356
00:19:07,480 --> 00:19:09,920
paid to what mortgage rates are going to do and

357
00:19:10,000 --> 00:19:13,160
what your order going Now, if your ordo is more

358
00:19:13,160 --> 00:19:16,640
expensive and your house is more expensive, tell me, tell

359
00:19:16,680 --> 00:19:18,920
me how Powell is making things better?

360
00:19:19,240 --> 00:19:19,400
Speaker 2: Good?

361
00:19:19,480 --> 00:19:22,160
Speaker 1: Right on an answered note, when you've done is you said,

362
00:19:22,440 --> 00:19:25,599
you said to investors you no longer care about inflation,

363
00:19:25,839 --> 00:19:28,279
so we have to start to It's madness.

364
00:19:28,640 --> 00:19:33,799
Speaker 4: It's madness of You know, one thing that I thought

365
00:19:33,839 --> 00:19:36,720
we were at this point that we're at now in

366
00:19:36,759 --> 00:19:39,920
the nineties. Then the Internet came along and there was

367
00:19:39,960 --> 00:19:45,000
a productivity boom globally that brought down prices around the

368
00:19:45,000 --> 00:19:48,559
world to think that government will stop spending and that

369
00:19:48,799 --> 00:19:54,559
somehow that's going to to save us here that you

370
00:19:54,640 --> 00:19:56,960
know as well as ido, and that just ain't going

371
00:19:57,039 --> 00:19:59,319
to happen until they have to. Right.

372
00:19:59,640 --> 00:20:03,519
Speaker 1: Yeah, they'll stop, They'll stop spending, They'll they'll reset the currency,

373
00:20:03,880 --> 00:20:08,880
they will default explicitly on debt. After we suffer a

374
00:20:08,920 --> 00:20:11,519
long and protractive battle with hyperinflation.

375
00:20:12,279 --> 00:20:14,960
Speaker 3: We're not We're no longer near that. We're not near

376
00:20:15,000 --> 00:20:18,720
that at all. Right now, what about we will? I

377
00:20:18,759 --> 00:20:22,079
think we will eventually have that battle. And then and

378
00:20:22,079 --> 00:20:22,480
then and.

379
00:20:22,440 --> 00:20:25,519
Speaker 1: Then when people when the people wake up and they

380
00:20:25,519 --> 00:20:31,880
stop watching you know, uh, the network television to get

381
00:20:31,880 --> 00:20:32,480
their news.

382
00:20:33,480 --> 00:20:35,680
Speaker 3: They are pretty well doing that, you know that.

383
00:20:35,839 --> 00:20:42,680
Speaker 4: Then it's a network news is like nobody trusted trust it, right,

384
00:20:42,920 --> 00:20:47,319
the least trusted name in news, CNN, the cemetery news network.

385
00:20:47,480 --> 00:20:47,640
Speaker 3: Right.

386
00:20:48,920 --> 00:20:53,720
Speaker 1: That's why people are flocking to outlets like yours to

387
00:20:53,799 --> 00:20:58,640
get real honest information and real honest interpretation of that

388
00:20:58,720 --> 00:21:00,519
medicine of that information.

389
00:21:00,960 --> 00:21:02,279
Speaker 3: Yeah, Joe Rude.

390
00:21:03,519 --> 00:21:08,359
Speaker 1: So when the people say, wait a second, why why

391
00:21:08,480 --> 00:21:12,799
is my Why is the purchasing power of my currency cratering?

392
00:21:13,279 --> 00:21:16,480
What is causing that? What does it mean when a

393
00:21:16,559 --> 00:21:19,160
fence balance he goes from a few hundred billion dollars

394
00:21:19,200 --> 00:21:20,200
to nine trillion?

395
00:21:21,359 --> 00:21:22,759
Speaker 3: What does what does it mean when.

396
00:21:22,759 --> 00:21:27,119
Speaker 1: When Jaddie Yellen, the Treasury Secretary whoever at the time,

397
00:21:28,279 --> 00:21:31,160
sends another round of helicopter money just checks in the mail?

398
00:21:31,160 --> 00:21:34,039
What does that really mean? Where does the money come from?

399
00:21:34,640 --> 00:21:37,680
What is backing my currency? Those are the questions that

400
00:21:38,319 --> 00:21:40,400
we stopped asking. I mean I used to ask them

401
00:21:40,400 --> 00:21:42,759
all the time when I was on CNBC and I've

402
00:21:42,759 --> 00:21:45,799
been thrown off the channel. Hey, what what is wrong?

403
00:21:46,759 --> 00:21:49,880
I used to debate Steve Lison about this all and

404
00:21:50,000 --> 00:21:55,400
what is wrong. We got to a discussion about the

405
00:21:55,680 --> 00:21:59,559
the increase in the money supply. It's like, well, you

406
00:21:59,599 --> 00:22:01,839
need a how would you how would you, you know,

407
00:22:02,039 --> 00:22:04,400
target the money supply? I said, why do you peg

408
00:22:04,440 --> 00:22:08,920
it towards something like gold? The mind supply increasing gold

409
00:22:09,000 --> 00:22:13,720
is commensurate with a year it's about to about two

410
00:22:13,759 --> 00:22:16,000
percent a year. I think that's what you said.

411
00:22:16,200 --> 00:22:18,240
Speaker 3: I think it's gotten down a bit, but one and

412
00:22:18,279 --> 00:22:21,279
a half you are as Yeah, so one and a

413
00:22:21,359 --> 00:22:22,119
half percent.

414
00:22:22,319 --> 00:22:23,880
Speaker 1: Let's just say one and a half two percent per year,

415
00:22:23,880 --> 00:22:28,480
which commensurate with population growth plus productivity growth, long term averages.

416
00:22:28,759 --> 00:22:32,079
You can't have these bubbles. Why don't we just what? Oh,

417
00:22:32,119 --> 00:22:34,960
we don't we need the elasticity in our currency?

418
00:22:35,359 --> 00:22:36,720
Speaker 3: Well you need aria?

419
00:22:36,759 --> 00:22:39,440
Speaker 1: Do you need elasticity to the point where you're printing

420
00:22:39,519 --> 00:22:42,960
trillions upon trillions of dollars in a matter of months?

421
00:22:43,480 --> 00:22:43,680
Speaker 5: Is that?

422
00:22:43,720 --> 00:22:46,000
Speaker 3: What kind of the eleg what you want need?

423
00:22:46,839 --> 00:22:50,680
Speaker 4: I need elasticity in my waistband. But if it's too elastic,

424
00:22:51,000 --> 00:22:52,799
those pants are going to fall down on me.

425
00:22:53,559 --> 00:22:55,400
Speaker 3: Oh no, we don't and we don't want that. That

426
00:22:55,519 --> 00:23:02,000
all right? You don't about that. It's when the.

427
00:23:01,920 --> 00:23:06,039
Speaker 1: American public has an epiphany and they say, okay, I

428
00:23:06,119 --> 00:23:10,200
understand why our founding fathers said Article one, section ten

429
00:23:10,240 --> 00:23:13,400
of our Constitution that only gold or silver should be

430
00:23:13,440 --> 00:23:14,759
considered money.

431
00:23:15,039 --> 00:23:16,720
Speaker 3: You just can't print it. WILLI nilly?

432
00:23:17,240 --> 00:23:19,720
Speaker 1: Not a state, and not the federal government, certainly not

433
00:23:19,759 --> 00:23:24,079
the federal When money becomes real, we'll stop all this madness,

434
00:23:24,359 --> 00:23:27,920
will stop, the endless wars, will stop, the acid bubbles

435
00:23:28,279 --> 00:23:32,319
will heal the middle class, will stop, the bifurcation of

436
00:23:32,359 --> 00:23:34,400
the country between the haves and have nots.

437
00:23:35,400 --> 00:23:38,119
Speaker 3: Stable prices, stable interest.

438
00:23:37,920 --> 00:23:43,480
Speaker 4: Rates, declining price people currency, declining prices, declining prices.

439
00:23:44,039 --> 00:23:47,119
Speaker 1: And that's you know, that's a natural byproduct of productivity.

440
00:23:47,359 --> 00:23:49,359
You know, if I can, if I can produce more

441
00:23:49,480 --> 00:23:53,880
forward bars off the assembly line for you know, for

442
00:23:54,000 --> 00:23:57,759
less money, I could charge you less, but I make

443
00:23:57,839 --> 00:24:00,279
up for it in volume. My margin is why might

444
00:24:00,599 --> 00:24:02,960
might stay the same or shrink a little, but the

445
00:24:03,039 --> 00:24:06,559
volume will be explosive. Everybody wins and you hire a

446
00:24:06,599 --> 00:24:09,279
lot of people. That's how you grow. You grow economy

447
00:24:09,640 --> 00:24:14,960
through here's the word for you, productivity and savings, real

448
00:24:15,759 --> 00:24:17,119
honest innovation.

449
00:24:17,799 --> 00:24:20,720
Speaker 3: You do not grow an economy by.

450
00:24:21,440 --> 00:24:28,200
Speaker 1: Praying and obsequiously supplicating to a government to stimulate. They

451
00:24:28,200 --> 00:24:31,759
have nothing. The government has nothing but a printing press.

452
00:24:32,200 --> 00:24:36,039
They take, they take, they take from you, they take

453
00:24:36,039 --> 00:24:39,799
from the private sector, and they create inflation. They are

454
00:24:40,319 --> 00:24:45,319
government is a productivity killing machine and an inflation producing machine.

455
00:24:45,400 --> 00:24:47,680
That is all they can do. Please remember that when

456
00:24:47,680 --> 00:24:50,799
you asked for well, why don't they just stimulate? We

457
00:24:50,839 --> 00:24:53,480
need some we need some deficit spending.

458
00:24:53,519 --> 00:24:56,160
Speaker 3: That's right here. Well we thought.

459
00:24:57,119 --> 00:25:00,920
Speaker 1: I think we tried that we have and now we have.

460
00:25:01,440 --> 00:25:04,880
We are on the precipice, precipice of a bond market collapse.

461
00:25:05,319 --> 00:25:06,440
And that's going to wake a lot of.

462
00:25:06,440 --> 00:25:13,079
Speaker 4: People up, Yes, for sure. Well you know, you know

463
00:25:13,160 --> 00:25:19,160
it wakes people up. Things like peanut the squirrel, you know,

464
00:25:19,319 --> 00:25:22,880
stormtroopers charging it to a guy's house and then killing

465
00:25:22,920 --> 00:25:27,000
his pet squirrel in his pet raccoon. Because everything else

466
00:25:27,000 --> 00:25:30,200
you're talking about, most of the people weren't alive Michael

467
00:25:30,640 --> 00:25:33,680
for the last round of inflation in the seventies and

468
00:25:33,759 --> 00:25:35,920
eighties and late sixties.

469
00:25:35,759 --> 00:25:36,640
Speaker 3: Like you and I were.

470
00:25:37,599 --> 00:25:40,559
Speaker 4: But when the government comes in and you're mighty your

471
00:25:40,559 --> 00:25:44,960
own business, and they you know, they, you know, ten

472
00:25:45,079 --> 00:25:48,920
people armed to go get a squirrel that's a real

473
00:25:49,039 --> 00:25:55,359
threat to humanity. People start to the veil is coming off.

474
00:25:55,400 --> 00:25:58,759
You know, I think it might even be an election

475
00:26:01,000 --> 00:26:06,079
events because you know, I was listen. Why didn't they

476
00:26:06,119 --> 00:26:07,400
just let Rocky the squirrel go?

477
00:26:08,279 --> 00:26:11,359
Speaker 3: Yeah? I mean, good, good, good? I mean, what are you?

478
00:26:11,839 --> 00:26:13,720
Speaker 1: I live in Florida, and if you look the wrong

479
00:26:13,759 --> 00:26:16,440
way at a fish, I mean you could go to

480
00:26:16,519 --> 00:26:17,039
jail here.

481
00:26:17,200 --> 00:26:19,880
Speaker 3: I mean, I think they shot that. Did they shoot

482
00:26:19,880 --> 00:26:21,119
the squirrel? Yeah?

483
00:26:21,319 --> 00:26:23,839
Speaker 4: They know they didn't shoot it, but they euthanized it.

484
00:26:23,880 --> 00:26:26,720
In other words, they killed it and the raccoon, both

485
00:26:26,759 --> 00:26:29,799
of them. The raccoon was just a bystander. Had they

486
00:26:29,880 --> 00:26:30,119
kill it?

487
00:26:30,119 --> 00:26:33,200
Speaker 3: They give it a list. I guess they needled it. Yeah,

488
00:26:33,359 --> 00:26:35,759
you know, put it down. But why couldn't they just

489
00:26:35,799 --> 00:26:36,400
let the thing.

490
00:26:36,279 --> 00:26:40,920
Speaker 4: Go because it supposedly bit somebody and the squirrel the

491
00:26:41,359 --> 00:26:42,720
raccoon was a witness.

492
00:26:43,039 --> 00:26:43,480
Speaker 3: I don't know.

493
00:26:43,519 --> 00:26:48,000
Speaker 5: They had to erase all bald witnesses. The witnesses how

494
00:26:48,079 --> 00:26:51,920
to be Yeah, you know, like some mob can't let

495
00:26:51,920 --> 00:26:54,720
a witness arrive. I don't know why it's illegal to

496
00:26:54,720 --> 00:26:56,720
have a round. I mean because a rodent, I mean

497
00:26:56,759 --> 00:26:58,519
a rabbits or rodents I don't know. I don't want

498
00:26:58,640 --> 00:27:00,680
you know, I'm sure I already doesn't want to hear it.

499
00:27:00,839 --> 00:27:04,960
But but but the thing is that why we have

500
00:27:05,039 --> 00:27:06,880
to feder the control of government.

501
00:27:07,000 --> 00:27:08,880
Speaker 1: And then the number one thing we need to do

502
00:27:09,720 --> 00:27:14,200
is the government has they have they have usurped the

503
00:27:14,240 --> 00:27:18,279
authority of markets, they've taken it away, and they control everything.

504
00:27:18,759 --> 00:27:22,680
And that's why we are obsessive, compulsive about every FED

505
00:27:22,759 --> 00:27:26,880
meeting and parse their words like our reading scripture, because

506
00:27:26,920 --> 00:27:30,559
they control everything. The FED can destroy this economy, or

507
00:27:30,559 --> 00:27:32,680
they can do or they can create some kind of

508
00:27:32,720 --> 00:27:39,119
you know, stagflationary sure, so true, license all it's up

509
00:27:39,160 --> 00:27:42,200
to them, and we should never have relegated that power

510
00:27:42,240 --> 00:27:47,039
to just you know, twelve voting members and they're unelected people.

511
00:27:48,160 --> 00:27:52,000
Speaker 3: But educate yourself people, that's it, all right?

512
00:27:52,200 --> 00:27:56,000
Speaker 4: Well, Michael, always insightful, always a pleasure learning from you.

513
00:27:57,039 --> 00:28:00,720
Pentoport dot com is the site to go to where

514
00:28:00,720 --> 00:28:06,079
you'll find Michael's extensive work, podcasts, interviews, everything else. And

515
00:28:06,160 --> 00:28:09,000
if you've got a question from Michael myself, shoot me

516
00:28:09,039 --> 00:28:13,640
an email kl at carrie lets dot com and you'll

517
00:28:13,680 --> 00:28:15,960
find a link to Michael's site On the show notes

518
00:28:15,960 --> 00:28:19,480
to this interview on Financial Survival Network dot com. Sign

519
00:28:19,559 --> 00:28:22,000
up for your free newsletter. Michael, we'll talk to you

520
00:28:22,039 --> 00:28:24,640
again in a month or two and see how things

521
00:28:24,759 --> 00:28:28,720
are transgressing. Lessens to you, Carrie, Thank you, thanks.

522
00:28:28,559 --> 00:28:32,880
Speaker 2: For listening to Carrie Let's's Financial Survival Network, your solution

523
00:28:33,160 --> 00:28:37,000
to today's trying times. For the latest, go to Financial

524
00:28:37,079 --> 00:28:42,720
Survivalnetwork dot com. Financial Survival Network now more than ever,