Speaker 1: I find myself in a very peculiar position. I'm kind
Speaker 1: of in defending Jerome Powell, which I never thought I
Speaker 1: would do in my life, you know, carry for the
Speaker 1: life of me. I don't understand what the administration, who
Speaker 1: I support, is thinking when they say they want to
Speaker 1: fire Powell and cut interest rates to one percent.
Speaker 2: You are listening to Carrie Let's's Financial Survival Network, where
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Speaker 3: Now more than ever.
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Speaker 3: And welcome. You are listening to and watching the Financial
Speaker 3: Survival Network. I'm your host. Carrie Let's Michael Pento is
Speaker 3: on vacation, although as long as Michael has a phone,
Speaker 3: he's never really on vacation. In fact, he manages hundreds
Speaker 3: of millions of dollars, not with computers but with his iPhone.
Speaker 3: If you could believe it, that's how easy he's got
Speaker 3: the job down to.
Speaker 1: Right Michael, Yeah, I'm in a beautiful Belmore New Jersey
Speaker 1: in the upstairs apartment of a close friend, and I
Speaker 1: forgot we were doing these interview But I'm here, here,
Speaker 1: my athletic freaky shirt on, and I'm ready to go.
Speaker 3: So no, you know what Woody Allen said, ninety percent
Speaker 3: of life has showing up, right.
Speaker 1: Well, I'm going to show up at the pick a
Speaker 1: ball courts in maybe about a half an hour, so
Speaker 1: let's see what happens.
Speaker 3: All right. I'll say a prayer for you, because everybody
Speaker 3: that I know, except for one or two people, has
Speaker 3: sustained fairly significant injuries from a very low impact, low
Speaker 3: effort sport with jarring lateral movements, studden stops running backwards
Speaker 3: like I don't know how you do it?
Speaker 1: Oh hey yeah, I'm so Just to digress for a second,
Speaker 1: I had preci gift significant concussion from doing a Frankenstein
Speaker 1: walk backwards and soup pine on my head, and then
Speaker 1: I popped a calf muscle and now I'm nursing a
Speaker 1: broken tendon in my foot as well as of displaced bones. Well,
Speaker 1: pick a bowl is very safe. I suggest everybody do it.
Speaker 3: Just put a hell out. I think it's about as
Speaker 3: safe as the bright Line train, you know. Just talking
Speaker 3: a little Florida biz I wrote an article about this,
Speaker 3: The bright Line is unsafe at any speed. We thought
Speaker 3: there were only one hundred twenty six deaths bright line
Speaker 3: related since twenty seventeen, but the Miami Herald just came
Speaker 3: out with an expose. It's actually one hundred and eighty
Speaker 3: six deaths. So they've been covering it up. But I'm
Speaker 3: not so much worried about the carnage on the tracks
Speaker 3: in Florida. I'm worried about the carnage and the tracks
Speaker 3: coming out of Wall and Broad Street, right.
Speaker 1: Yeah, and the echoes building at the at the Federal Reserve.
Speaker 3: Yeah, So, what's what's going on here with the Federal Reserve.
Speaker 3: It seems like they got some pretty luxurious digs there.
Speaker 3: Central banking is good business, isn't it.
Speaker 1: I find myself in a very peculiar position. I'm kind
Speaker 1: of in defending Jerome Powell, which I never thought I
Speaker 1: would do in my in my life, you know, carry
Speaker 1: for the life of me. I don't understand what the administration,
Speaker 1: who I support, is thinking when they say they want
Speaker 1: to fire Powell and cut interest rates to one percent.
Speaker 1: Now the curve the funds rate is for four and
Speaker 1: a quarter to four and a half, So it's just sowing. Know,
Speaker 1: we're talking about one percent, which is an over you know,
Speaker 1: a three hundred and twenty five basis point rate cut immediately.
Speaker 3: Yeah, I guess.
Speaker 1: I guess inflation that has wiped out the middle class
Speaker 1: isn't good enough when you have sixty percent of Americans
Speaker 1: that have a networth of one thousand dollars or less.
Speaker 1: Sixty big zero? What are we doing here? But do
Speaker 1: we want to make home prices go up even faster
Speaker 1: and make them eve expensive? I don't understand it. So
Speaker 1: on what premise would you cut interest rates? Let's see
Speaker 1: the unemployment rate is is? I think it's four point
Speaker 1: one or four point two percent is historically very very
Speaker 1: very low. The stock market is at an all time
Speaker 1: record high valuation, home price to income ratios are an
Speaker 1: all time high. Credits reds are extremely tight. Financial conditions
Speaker 1: are extremely loose. We're not in a recession. GDP growth
Speaker 1: for this quarter is supposed to be about a little
Speaker 1: bit over two percent, and inflation is inflation carry has
Speaker 1: been above the Fed's asinine two percent target for fifty months.
Speaker 3: Right now.
Speaker 1: If I just told you, what if you just heard that,
Speaker 1: if you came from Mars and said, you know, I
Speaker 1: understand the federal reserves shorter is to maintain you know,
Speaker 1: a level prices, you know, stable prices. And I just
Speaker 1: told you all those things and you and I also
Speaker 1: said that the Fed has missed its target to the north,
Speaker 1: it's two percent target to the north for fifty months,
Speaker 1: and that target is moving further away.
Speaker 3: In other words, the.
Speaker 1: Inflation rate is moving further away from the target two.
Speaker 1: What do you think the conversation would be. It wouldn't
Speaker 1: be when are you going to cut rates? It shouldn't
Speaker 1: certainly shouldn't be when you're going to lower rates to
Speaker 1: one percent. It's gonna be when you're going to raise
Speaker 1: interest rates.
Speaker 3: Yeah. Well, and really historically, going back, you know, as
Speaker 3: far back as you can go, really, the rates are
Speaker 3: not out of line. They're kind of normalized. Now, if
Speaker 3: we need zero percent interest to keep this economy going,
Speaker 3: then we've got a real problem here, don't we. No,
Speaker 3: we not.
Speaker 1: If we have a real problem. We have a tremendous
Speaker 1: credit bubble.
Speaker 4: We have an an unbelievable equity bubble two hundred Well,
Speaker 4: the total market cap of equities is now two hundred
Speaker 4: and twelve percent of.
Speaker 1: GDP, so it's more than double the size of the
Speaker 1: entire US economy. Now, the normal relationship there's around ninety
Speaker 1: to one hundred percent, that's just normal. So that means
Speaker 1: stock prices could drop fifty percent and still be above
Speaker 1: valuation historical valuations. That's how that's how crazy. And then
Speaker 1: you also have you know, the Cape ratio, which is
Speaker 1: that I think it's at almost twenty seven or thirty seven,
Speaker 1: I forgot where it was anyway, it's astronomically high. It's
Speaker 1: historically speaking, pryces deals ratio is three risk premiums are
Speaker 1: negative in the risk premium the inverse of the pe ratio, right, Sure,
Speaker 1: get your earnings yield, and the earnings yield is less
Speaker 1: than what you can earn in a T bill. This
Speaker 1: is all highly unusual record low dividend yields. So the
Speaker 1: stock market's in an epic bubble. Home prices are the
Speaker 1: most expensive they've ever been in history, even relate in
Speaker 1: relation to incomes. And we have a massive credit bubble
Speaker 1: when there's like, you know, trillions of dollars of things
Speaker 1: like private credit, which hardly ever existed before, I mean
Speaker 1: in the previous decades. Now, there's a whole cottage industry
Speaker 1: of businesses that can't get loans from a bank or
Speaker 1: float corporate paper, so they get loans from you know,
Speaker 1: the shadow banking system. Yeah, that's a huge problem these
Speaker 1: that's a huge when we have when not the not if,
Speaker 1: when we have a recession, because the the the business
Speaker 1: cycle hasn't been repealed. When we have the next versus
Speaker 1: when we have the next credit crisis or recession, this
Speaker 1: is when reality is going to hit. So it's not if,
Speaker 1: it's when I have a timing model that lets me
Speaker 1: know when to get out. I'm been, I've been you
Speaker 1: know in a you know, I have a long short strategy,
Speaker 1: so mostly long, sometimes short. The past few years mostly
Speaker 1: went out long, but holding our nose because we know
Speaker 1: that if you're gonna be one of those people, one
Speaker 1: of those automatic buy and hold dollar course to averaging
Speaker 1: funding their four to one k in a target date fund,
Speaker 1: and you're gonna be down thirty five percent in a
Speaker 1: few weeks time, not a few weeks from now, but
Speaker 1: in a few weeks, a truncated period of time, when
Speaker 1: the when the poop hits the bed, we're gonna be
Speaker 1: down thirty percent in a very quick period of time.
Speaker 1: And then you're gonna panic and call your administrator for
Speaker 1: your four to one K plant and say move my
Speaker 1: plan into cash. And that's what market goes down fifty
Speaker 1: to sixty seventy percent.
Speaker 3: But haven't people been programmed to not behave that way?
Speaker 1: They have been inculcated through the decades to just buy
Speaker 1: and hold. But Carrie uh, stock ownership among Americans has
Speaker 1: never been higher, and the stocked ownership is concentrated mostly
Speaker 1: in people who are my age or older. So you
Speaker 1: went around in their fifties, like fifties, early sixties, or
Speaker 1: in their retirement ages. Not not not in the twenty
Speaker 1: year old, not in the mean stock people. It's our age, yes,
Speaker 1: approaching retirement or in retirement. Kerry. When they're down thirty
Speaker 1: five percent in their portfolio, I don't know the exact number,
Speaker 1: but it's probably around. That's my guest to mint. They're
Speaker 1: gonna exist because they cannot see. Then it becomes what
Speaker 1: you just said, it's a it's an existential crisis. I
Speaker 1: am not gonna be their wife is going to tell
Speaker 1: them from probably being a little sexist here, but if
Speaker 1: you're a man, your wife's going to tell you, hey,
Speaker 1: I'm not canceling my trip to Europe and I'm not
Speaker 1: selling my my lake house. You can sell. You're gonna sell,
Speaker 1: and you're gonna sell now and will wait for it
Speaker 1: to settle down. That is going to happen, and that
Speaker 1: is gonna be synergistic. It's gonna be a death spiral
Speaker 1: in my opinion. It's just it's just a matter of
Speaker 1: mean reversion. If you believe in nature, heats vacuums, this
Speaker 1: is a mean Listen, this is one or two things
Speaker 1: are gonna happen mathematically certain. Either stought pressures are gonna crash,
Speaker 1: so the ratio that you know they're not the enumerator
Speaker 1: matches the denominator, or they're going to stay where they
Speaker 1: are for a decade not could not do anything until
Speaker 1: the denominator catches up. Now, the latter scenario never happens
Speaker 1: in history. It just never has happened before bubbles burst.
Speaker 1: They don't just stay bubblicious for a decade.
Speaker 3: Wow, all right, So uh ah, so you got to
Speaker 3: think what should you be doing now because this appears,
Speaker 3: from what you're saying here, Michael, to be inevitable.
Speaker 1: Well, you better first of all, if you're you're in
Speaker 1: one of those buy and hold dollar cost averaging rubrics,
Speaker 1: you've got to get the hell out of there as
Speaker 1: fast as possible. You got to put yourself in an
Speaker 1: active money managuer. It doesn't have to be me. I mean,
Speaker 1: I'm I mean, let me speak altruistically. Find somebody else
Speaker 1: besides me. I have plenty of money, and I have
Speaker 1: plenty of money under management. I don't care. But find
Speaker 1: yourself a rouste a robust model that is in the
Speaker 1: purview of a very honest and experienced money manager. Does
Speaker 1: not have to be me. But do it for your
Speaker 1: own retirement sake.
Speaker 3: You need to do it all right, sir.
Speaker 1: You've worked your entire life to get where you are.
Speaker 1: Realize where you are. Realize the triumvirate of bubbles that
Speaker 1: we have unprecedented in history, all three of them. Yeah,
Speaker 1: and be a historian. See what has happened, not only
Speaker 1: in the United States but around the world. What happens
Speaker 1: to asset prices when they get this this elevated and
Speaker 1: the inculcation the mindset is overwhelming. Where you know, you
Speaker 1: have to now convince people that there is such thing
Speaker 1: is a business cycle. You have to convince people that
Speaker 1: the FED and the Treasury and the administration can't always
Speaker 1: bail you out. And you know, in the past, Carrie,
Speaker 1: what is it. What does the Treasury and particularly the
Speaker 1: FED have done. They've always solved the problem every hiccup
Speaker 1: in the stock market or a steed speed by economy.
Speaker 1: They just lower interest rates and print money. Carry Do
Speaker 1: it again, do it one more time, and see what
Speaker 1: happens to inflation if they actually start cutting, if they
Speaker 1: ever stop, If they started cutting interest rates now to
Speaker 1: desert QE helicopters money, I think it would be an
Speaker 1: absolute disaster. It already is a disaster for this country.
Speaker 1: When you have, when you have over sixty percent of
Speaker 1: the population with really no or negative net worth, you
Speaker 1: can't have a viable nation. So try try now pursuing
Speaker 1: a policy that bails out Street and screws Main Street.
Speaker 1: See what happens.
Speaker 3: It ain't gonna be pretty, is it?
Speaker 1: No?
Speaker 3: So gold silver, It appears certainly for silver we're on
Speaker 3: the verge of a major breakout and things are not
Speaker 3: looking good for those silver shorts, are they. No. Now
Speaker 3: I've I've i have.
Speaker 1: So I took a nice position in platinum several months ago,
Speaker 1: bit more gold for a very long time too. So
Speaker 1: my proxy for the the bit so the precious metal
Speaker 1: is proxies that I use are gold and platinum, but
Speaker 1: silver too is you I'm not going to argue against silver,
Speaker 1: but you should. You have to get your your hands
Speaker 1: on some of this. And there's a there's a bull
Speaker 1: market happening in platinum. You know, for decades and decades
Speaker 1: on end, platinum was more expensive than gold.
Speaker 3: It's a it's.
Speaker 1: A rarer, more more rare metal, it's a more precious metal.
Speaker 1: It has some industrial components to it as well, and
Speaker 1: that flip that has flipped. So I would not only
Speaker 1: own gold, I would definitely own some platinum here because
Speaker 1: there's only one thing that's going to happen. There's only
Speaker 1: one thing that I could be assured to occur, and
Speaker 1: that stackflation like we've never before imagined. We're going to
Speaker 1: have another recession. Business cycle hasn't been repealed. We're going
Speaker 1: to have a credit crisis. The playbook is going to
Speaker 1: be deployed because it's worked all that every time in
Speaker 1: the past. What's the Pavlovian response from the Fed and
Speaker 1: Treasury borrow print spend or it was automatic stabilizers that
Speaker 1: kick in are going to send a deficit not to
Speaker 1: you know, the deficit was two hundred billion in prior
Speaker 1: to the global financial crisis. Then it went to you know,
Speaker 1: the trillion trillion now it's now it's two trillion. In
Speaker 1: the party times man, in the good times with full
Speaker 1: employment and record a stock market, it's two trillion. So
Speaker 1: when the automatic stabilizers kick in, the unemployment benefits kick in,
Speaker 1: this deficit is going to go between from from two
Speaker 1: to four to six trillion per ADAM. So that means
Speaker 1: when four to six trillion, where's six trillion dollar annual deficit,
Speaker 1: And and that means the money is going to go
Speaker 1: directly to the people. It's not gonna be like it
Speaker 1: wasn't the global financial crisis where you just bail out
Speaker 1: Wall Street by taking the banks got their assets bailed
Speaker 1: out from the Fed. Now this is going to go
Speaker 1: right into the hands of the pockets of the people
Speaker 1: through these through the unemployment insurance that they're gonna get
Speaker 1: right and through the subsidies that they're gonna get from
Speaker 1: from the Fed, and the helicopter money coming from the Treasury.
Speaker 1: So we're gonna have inflation, not the way they measure it.
Speaker 1: Stop at nine, it's going to go to nineteen. Yeah,
Speaker 1: and that's you know, if you that's what you have
Speaker 1: to be prepared for, because if you're saying to yourself,
Speaker 1: you know, I think I'm gonna I think I'm going
Speaker 1: to retire, and five percent on a thirty year treasury
Speaker 1: bond sounds pretty pretty good because the first is only three.
Speaker 3: You know, that's wonderful.
Speaker 1: Uh, tell me how you feel about earning five percent
Speaker 1: when inflation is nineteen.
Speaker 3: So that's a that's an existential problem in and of itself, right.
Speaker 1: Garry inflation core inflation rose to two point nine percent
Speaker 1: year over year coreation, wrote, I mean, then the morons
Speaker 1: that speak on mainstream financial media when the when the
Speaker 1: inflation report came out, they're.
Speaker 3: Like better than expected because.
Speaker 1: The month over month was a little bit better the core.
Speaker 1: But here the core rate of inflation increased. At the
Speaker 1: end of the form reading was two point seven or
Speaker 1: two point six, it jumped to two point nine core
Speaker 1: inflation year over year. That's that is that is a
Speaker 1: disastrous conversation to have him. Inflation on the core level
Speaker 1: is spiking, and I want to have a scenario where
Speaker 1: I'm firing the central bank so I can put a
Speaker 1: what I would call an obsequious sicko fan, a puppet
Speaker 1: of the president, to put rates at one percent.
Speaker 3: Yeah, what could possibly get wrong here?
Speaker 1: What happened to that stuff? What would happened to the
Speaker 1: housing market? Let me hear here's the scenario. The scenario
Speaker 1: scenario is this some so April April two thousand or
Speaker 1: May twenty twenty six comes, Powell is shoved out the door,
Speaker 1: an obsequious sick ephan, a puppet of the president, comes in.
Speaker 1: He cuts rates to one percent. And what what happens
Speaker 1: when the long end of the bond market interest rates
Speaker 1: go ballistic? I mean, if that can control the overnight
Speaker 1: interbank lending rate, and the money markets will will trade
Speaker 1: in sympathy with that. But let's say, unless they assent
Speaker 1: to buy every single treasury bond issued, like the Bank
Speaker 1: of Japan does, we're gonna have a huge problem with
Speaker 1: the interest rates. And if they do buy everything, we're
Speaker 1: gonna have a bigger problem with inflation.
Speaker 3: M h yeah, it sounds like we got problems on
Speaker 3: the way here. Huh.
Speaker 1: Well, I mean, listen, what when you when you abrogate
Speaker 1: free markets. When you say, you know, the free market
Speaker 1: doesn't have to function. We could just nineteen eighty seven,
Speaker 1: just print some money. Greenspan says, we'll just print some money.
Speaker 1: We have, we have a tool, we have a technology.
Speaker 1: We don't need to Why would we Why would we
Speaker 1: make money peg to something like gold?
Speaker 3: Why would we do that?
Speaker 1: Well, because mine supply of gold is limited, and you
Speaker 1: have something real and tangible that's backing your currency. But
Speaker 1: then they came up with the idea we could just
Speaker 1: we could just live in faeryland. We could just back
Speaker 1: our currency with nothing. We'll back it with the taxing
Speaker 1: authority of the US Treasury and the American military complex.
Speaker 1: That's what will Yeah, and then the dollars, you know, crashes.
Speaker 1: You know, go look at what the dollar has done
Speaker 1: since nineteen thirteen.
Speaker 3: It's purchasing power.
Speaker 1: And then those people have the nerve to tell you
Speaker 1: that they're they're they're they're in charge of protecting the
Speaker 1: purchasing power of the of the currency. That's a comedy routine, Kerry,
Speaker 1: it's a joke.
Speaker 3: Yeah, that is a comedy routine. And you know it's
Speaker 3: that old uh, that old saying. Will Rogers said, every
Speaker 3: time Congress makes a joke, it becomes a law, and
Speaker 3: every time they make a law, it's a joke.
Speaker 1: Right Gary, let me just I have I had this
Speaker 1: written down. I want to make sure when I talk
Speaker 1: about credit bubbles, total non financial US debt as a
Speaker 1: percentage of GDP is higher today than at the start
Speaker 1: of the global financial crisis and the start of the
Speaker 1: Nasdaq crash in two thousand. So current ratio is two
Speaker 1: one hundred and fifty seven percent of GDP total non
Speaker 1: financial debt. In two thousand and seven, before the stocks
Speaker 1: lost fifty percent of their value, the S and B,
Speaker 1: it was two hundred and thirty four percent. And in
Speaker 1: two thousand that great recession where the NASDAK lost eight
Speaker 1: percent of its value, it was one hundred and eighty
Speaker 1: nine percent. And the current ratio is two hundred and
Speaker 1: fifty seven percent. That's your credit bubble. That's your credit bubble.
Speaker 3: Man. So there's no way out of this.
Speaker 1: There isn't any easy way out of it. I mean,
Speaker 1: they're gonna try to hyperinflate their way out of it.
Speaker 1: But since we haven't adjustable rate mortgage as a as
Speaker 1: A as our you know, everybody said, hey, Janet Yellen,
Speaker 1: why don't you know when interest rates were like aero
Speaker 1: point three on the ten year note, why don't you
Speaker 1: like float some thirty year dead out there and finance
Speaker 1: it or maybe even issue a fifty year bond. I
Speaker 1: guess the wasn't any appetite for that, But at least
Speaker 1: they should have really loaded up on that lawn kerry.
Speaker 1: If they're gonna, if they're gonna, if Wall Street's gonna
Speaker 1: supply you with a ten year note that's yielding a
Speaker 1: third of one percent, wouldn't you want to lock in
Speaker 1: those that that's a pretty good rate, right right? Well,
Speaker 1: guess what they said, Now we're just gonna do T bills.
Speaker 1: We're gonna do T bills and chill. Well that's now
Speaker 1: you have to roll over those tea bills every single year. Yeah,
Speaker 1: and that's what you have. So if if if you
Speaker 1: really want to know the truth as to why President
Speaker 1: Trump wants that interest rate artificially suppressed even further lower,
Speaker 1: is because it would really bring down the interest on
Speaker 1: the debt. Yeah, with no no negative ramifications with housing
Speaker 1: or real estate or or or the equity market.
Speaker 3: So it's that simple, huh, yeah. So it's it's all
Speaker 3: about rates.
Speaker 1: It's all about interest on the debt, which is over
Speaker 1: a trillion dollars already.
Speaker 3: Yeah, gotcha.
Speaker 1: Do you see how you see how well doge work?
Speaker 3: Right?
Speaker 1: The Doge roar into town and they really slashed the
Speaker 1: government slashed everything down. I mean, we're all we're good now, right.
Speaker 1: I think they decided to cut one hundred and sixty
Speaker 1: billion dollars.
Speaker 3: Yeah, for I was still cutting in theory. Yeah, I
Speaker 3: don't know what they cut.
Speaker 1: Well, those have been run out of town faster than
Speaker 1: the shrve has been run out of town. And they
Speaker 1: should be cutting a trillion dollars per We need to
Speaker 1: cut a trillion dollars per andum to get to that
Speaker 1: magical Scott Besson, you know, three percent. But guess what,
Speaker 1: we decided to cut one hundred and sixty billion, So
Speaker 1: we're a little bit short. It is about eight hundred
Speaker 1: and forty billion a year.
Speaker 3: Just a little, just a little all right? So what
Speaker 3: about bitcoin here?
Speaker 1: Well here, well, you you know you opened the Pandora's
Speaker 1: box here when you talk about Hey, bitcoin, I actually
Speaker 1: liked as as a concept. I hated the I hate
Speaker 1: I didn't buy any of it. Unfortunately, so I've been
Speaker 1: wrong about the direction of this thing. But the concept
Speaker 1: of the bitcoin originally, or cryptocurrencies in general, was, Hey,
Speaker 1: we have a decentralized currency that nobody knows who you are,
Speaker 1: and it's outside the purview of government, and it protects
Speaker 1: and it protects you against a falling US dollar. So
Speaker 1: fast forward in a few years, and of course the
Speaker 1: pimps and the hookers on Wall Street would they say, oh,
Speaker 1: we fall in love what bitcoin? We can make some
Speaker 1: money on this, on this horrified barcode, which is what
Speaker 1: it is. It's just, you know, all bitcoin is your
Speaker 1: private key is a bunch of letters and numbers. Okay,
Speaker 1: it's a it's a password that's worth one hundred and
Speaker 1: seventeen thousand dollars. But okay, let's just let's just talk
Speaker 1: about this for a second. So it goes, it goes
Speaker 1: from basically nothing to one hundred and seventeen thousand dollars
Speaker 1: per unit. But it got there because it's been bastardized
Speaker 1: by Wall Street. They've co opted and corrupted it. So
Speaker 1: now your your decentralized coin that you think you own
Speaker 1: is completely centralized. It can be taken away from you
Speaker 1: capriciously by the government because they actually know exactly who
Speaker 1: you are.
Speaker 3: Oh yeah, you know.
Speaker 1: It's Wall Street has know your customer rules and anti
Speaker 1: money laundering rules. You own an asset that's pimped by
Speaker 1: Wall Street. They know exactly who owns every single one
Speaker 1: of these bitcoins, so they can take it from you.
Speaker 1: So it's no longer it's decentralized. And then to pour
Speaker 1: icing on the cake is or gasoline on the fire,
Speaker 1: I guess would be a better analogy. They say it's
Speaker 1: it's an alternative a dollar, but now they want to
Speaker 1: link it to this the US dollar into treasuries by
Speaker 1: stable coins. Right, so the whole concept of this thing
Speaker 1: has been has been obliterated. And they did this so
Speaker 1: they can pump up the stop the bitcoin price to
Speaker 1: one hundred and seventeen thousand dollars in unit. Now, two
Speaker 1: more things I want to tell you about this. Number one,
Speaker 1: it is hot gold. There's an unlimited number of cryptocurrencies
Speaker 1: that can be created. I do like the blockchain technology, Yeah,
Speaker 1: extremely useful, But to think that the blockchain technology is
Speaker 1: the same thing as a coin that relates gold is ridiculous. Yeah,
Speaker 1: so there's twenty one million bitcoins, but there's an unlimited
Speaker 1: number of other currencies that could serve the same purpose.
Speaker 1: So it's just a commodity. Cries are commodity, and there
Speaker 1: are limitlessons in supply, unlike platinum and unlike gold.
Speaker 3: Yeah, this is true. I totally agree with you there.
Speaker 3: But I think there's something else going on with bitcoin
Speaker 3: that we're not going to know. I think there's a
Speaker 3: bitcoin short squeeze coming because you've got a huge synthetic
Speaker 3: derivatives to market there, and you've only got seven percent
Speaker 3: of all the bitcoin ever created that actually free trade,
Speaker 3: which will be substantially less because you've got ETFs. This week,
Speaker 3: two point two billion more went into bitcoin. Eat where
Speaker 3: are they getting all these bitcoin from this when they
Speaker 3: stopped making it?
Speaker 1: Yeah, completely wrong on the price, missed the entire thing.
Speaker 1: This thing much higher. But when you get an unfriendly
Speaker 1: administration in place, and you will, and an unfriendly sec
Speaker 1: and you will in the future, this thing will crash
Speaker 1: because its intrinsic value is maybe closer to one thousand
Speaker 1: dollars rather than one hundred and seventeen thousand. So just beware.
Speaker 1: I mean, it's just not something at this especially now,
Speaker 1: at this price level I'm interested in getting involved with,
Speaker 1: but hey been wrong with both.
Speaker 3: Interesting was that I was at the Bitcoin conference and
Speaker 3: it's amazing guy I know who told me to buy
Speaker 3: bitcoin at five, who's never sold one bitcoin, he is
Speaker 3: buying it at a dollar. And let's not forget Michael
Speaker 3: that if you invested ten cents in coin in twenty ten,
Speaker 3: it'd be worth one hundred and eighteen hundred nineteen thousand
Speaker 3: dollars as we're speaking. What he told me is that
Speaker 3: over half the contributions going to the Republican Party are
Speaker 3: coming from crypto bros. So that's I think, of course,
Speaker 3: say are now, Gary.
Speaker 1: You're exactly right, but you know three years from now,
Speaker 1: I don't know. Yeah, play with it now. The volatility
Speaker 1: attributes to this product are just astronomically off the charts.
Speaker 1: So it's just not something i'd like to That's why
Speaker 1: I prefer platinum to silver. I don't like that high data. Yeah, Like,
Speaker 1: can you make money in bitcoin? Yeahp hundred percent? Can
Speaker 1: you still make money? Probably? Did I miss everything?
Speaker 3: Yes?
Speaker 1: I did, But beware because you when you have something
Speaker 1: that's supposed to have its value derived from having a
Speaker 1: decentralized anonymous, immutable transaction, and you're to get the value
Speaker 1: is now derived from government. M I'm the only person
Speaker 1: I've ever heard talk about I mean, maybe I just
Speaker 1: don't have it in my ears out there, but who
Speaker 1: have you ever heard anybody else say how absolutely absurd?
Speaker 3: This is? Oh completely but but bus, that doesn't mean
Speaker 3: you can't make money on it, right undred percent?
Speaker 1: No, I maya kopa here. I'm the last person to
Speaker 1: ask about the future to make a bitcoin price.
Speaker 3: Can do you know?
Speaker 1: For me to do that, it'd be it'd be completely
Speaker 1: inappropriate because I've been so wrong. The picture is interesting though,
Speaker 1: but but the but caveat emptor here though, they will
Speaker 1: be hell to pay. And it's coming, and it's one
Speaker 1: day because because what bitcoin really is now has become
Speaker 1: it's just a derivative of the stock market. So it's
Speaker 1: a it's a it's a higher a derivative on equity.
Speaker 1: And if liquidity ever drives up again, not if when
Speaker 1: it happens, yeah, when it's gonna it's it's gonna be
Speaker 1: a disaster for the entire space.
Speaker 3: All right, Well, I think we'll let it go there.
Speaker 3: We got other things to talk about next time. After
Speaker 3: you've done traveling things about the worst cycle, what's happening
Speaker 3: there in Europe, the euro, the dollar, all that good stuff.
Speaker 3: But you'll find Michael's work excellent work. Sign up pentoport
Speaker 3: dot com links in the show notes, and if you
Speaker 3: got a question for Michael myself, shoot me an email
Speaker 3: k l Atcarrie LUTs dot com. Michael, we'll talk to
Speaker 3: you in a month or two. Be well.
Speaker 1: Always a pleasure, Carrie, Thank you, thanks.
Speaker 2: For listening to Carrie Letz's Financial Survival Network, your solution
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