Speaker 1: We got issues right now as a nation as a
result of our overspending. We have issues right now, and
of course that leads to inflation also, higher prices booming economies.
That's inflationary as well. When we reshore Friendshore begin to
manufacture here, unless we can do it in a real
lean way, it's likely to be inflationary and more costly
because we're not doing it at prices where we pay
people a lot cheaper to live.
Speaker 2: You are listening to Carrie Letz's Financial Survival Network, where
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Speaker 3: And welcome. You are listening to and watching the Financial
Survival Network. I'm your host, Carrie Letz. Hey, we're right
here in December. The year is almost shot, the election
is coming. God. Remarkably, sentiment has changed among virtually everyone
I speak with, and I speak with a lot of people.
Gerald Celente Trends Journal, Optimistic, Martin Armstrong, you know Armstrong Economics,
Optimistic at least through twenty six. He's for forecasting other
things to happen, But who knows for right now? The optimism,
I mean, I know because I talk to family members
and friends who are way, way on the other side
of the equation here, and none of them are upset.
It's a they're either in a state of resignation or
what only some people on the media. But anyway, let's
talk with David Drzuski. Find out from David, what are
you seeing here? What is your feeling? Has sentiment changed?
How can sentiment change that quickly just over an election?
Speaker 1: M Well, Carrie, you know, we had two very completely
candidates and obviously the current administration that was in power
was running on a platform of you know, saying, hey,
when we're in power, we'll do this, and it's actually
they were still in power, so so so the sentiment
was getting very, very negative. I mean I I had
a very negative sentiment personally going into you know, even
September October, when when others were just thinking everything's just
rallying and awesome, because we've been seeing a lot of
deterioration in the numbers. But but post this election, there's
no question that we've seen, you know, the Trump bump,
the Trump effect. You know, the following day, Putin's talking
about peace. We've got Iran basically saying they're not going
to be doing you know, all the the terrorism stuff.
This guy shows up and a lot of things begin
to start changing, and especially when you've got you know
this so you know, government efficiencies idea of where there's
going to be real cuts. But but where we're at
right now is a very interesting place, and that is,
you know, the FED has been since March of twenty
two raising interest rates, telling us everything's you know, good
to go. And you know, obviously they've they missed the
whole inflation thing the entire time in my personal opinion,
and I think history is going to tell the story correctly.
But now the FED has a completely different administration that's
coming in arguably the most pro growth president in the
history of the United States, with you know cuts that
are that are coming, tax cuts and Jobs Act two
point zero, which in this case now has you know,
new deregulation components to it, has new components like you know,
no taxes on tips and a couple of other things
that might really boost some some middle street main street,
families and people that are out there. Doesn't matter what
side of the aisle that you voted on, or whether
you went to college or not. It's something that can
happen to and help people at many levels. And so
you're seeing a lot of positives. And so obviously markets
at all time highs right now, We've got you know,
stock markets at all time hides, golds are near all
time highs, bitcoins at all time highs, real estates at
all time highs. Everything is at all time highs. And
my warning is this inflation is present. It is here
twenty twenty five, were for sure going to see it.
And so I think that President Trump and his administration
is going to have a lot of surprises. Hopefully no
like unexpected surprises, but you know, likely that's how it
all works. But ultimately, you know, we're going to see
some some hawkish things right now. But that gives us
the ability to cut rates in the future in a
way that's meaningful and actually could get us on tracks.
So I'm optimistic about the future, but man, am I
cautious is at the exact same time, especially as we're
sitting here at record highs.
Speaker 3: Kerry Hey, well, inflation. You know, it's a generational thing.
It doesn't just come and go. You know what else
we're seeing thee David that I have not seen since Reagan.
The desire of those in power to actually cut back
on the power of the bureaucracy, to streamline, make government
operations more efficient, to cut out useless spending, corporate welfare
and waste and corruption. I've never seen in my short
time on this planet here any one has hell bent
and determined to do it. And you know, we have
something like four hundred or five hundred government federal government agencies,
and now they're talking about knocking it down to one hundred.
It's going to be profound effects here, not all positive
in the short run. The other thing I think was
interesting was that the first fig leader that President Elect
Trump met with was Javi R. Malay, who's the president
of Argentina, who has literally eviscerated their government and cut, cut, cut,
that's his thing, and he hasn't hesitated, and he hasn't
looked back. Their inflation is down from twenty or thirty
percent a month to two percent, but it's going even lower.
Speaker 1: Yeah. Absolutely, And you know, thankfully we've got a couple
of examples out here like this that are recent. I mean,
we can always look back at history and know that,
you know, certain things go forward and they work out.
But now we've got some radical people that have taken
very radical stances, kind of similar to Melake who came
in and with a very different way of doing government,
with a mandate from the people to get in there
and to make some adjustments. And I think that's interesting
because we find ourselves maybe at a point where I
might call it like a national revival, and it's a
reviving of national independence. You know, I got a flag
sitting here behind me. I remember at the beginning of
twenty twenty where wearing a flag or having a flag
around you was like such an anti American thing, and
with such a terrible idea. I doubled down and said, no,
that's the opposite. We're very confused right now, and I
think that we're going to look back on history and
over the last four or five years, and we're going
to say, you know what, we might need to reevaluate
some things, you know, in the way that we look
at society ourselves, but also even the investments and things
that are out there. Because when we have new administrations
and new changes. Guess what, there is going to be
opportunities in these times of transitional shift like this, and
so it's an important thing to have someone like Mela
who understands communism, who has the direct example of what
they're rooting out. And if you'll recall, Argentina was the
superpower just two superpowers ago, and now their nation is
just in absolute disarray. Inflation is terrible, They have no stability.
And so if you look at the people going from
amazing lives and the sophisticated society on Earth at the
time to where they are right now, I think that
there's a whole lot of lessons and things that they
would have said, man done. Had another opportunity, we would
have done things different. I just hope that the United
States right now is paying attention and again this moment
of national revival. What do we believe in? Why? What
are we standing for? Why what are we voting for? Why?
And I think that we demand more of the people
that were sending to Washington that they represent us and
not just their own interests.
Speaker 3: All right, So getting down to brass tacks here, sir,
what's Powell going to do here? Is he going to
keep cutting because Trump wants those rates cut. But on
the other hand, Trump's making the unrealistic promise that he's
going to bring down inflation in the face of rate cuts.
And one thing I'd just like to point out, energy
is important for sure during the Trump administration. I think
when he came into office, we were doing eight and
a half million barrels a day, close to nine million production.
When he left, we were doing twelve and a half million,
which was like forty some odd percent increase, and that
natural gas followed a similar curve throughout the past four years. Yeah,
we're producing record amounts of energy, but the oil gas
production's gone up about three three and a half percent.
You think that expanding energy production really is going to
bring down inflation here without the major cuts to the government,
the spending and their participation in the economy.
Speaker 1: Well, you nailed it in the question because you said
that the both sides of the scale. You know, there's
your input and your output, or you know, the amount
of money that you spend versus what's coming in. We
got issues right now as a nation as a result
of our overspending. We have issues right now, and of
course that leads to inflation. Also, higher prices booming economies,
that's inflationary as well. When we reshore friendshore begin to
manufacture here, unless we can do it in a real
lean way, it's likely to be inflationary and more costly
because we're not doing it at you know prices where
we pay people a lot cheaper to live. And so
can can Trump do it? Well? This is supply side economics,
and so what he's doing is he's he's focused on
the supply side. He's focused on the areas that are
going to give our economy the greatest opportunity to grow.
And so when we talk about oil, that isn't that
is something that the United States has more than anybody else.
You know, there's no question that if you even look
at and by the way, I own two teslas and
gas vehicles as well. I love the technology, but it
cannot solve all the world's problems at least today, and
lithium batteries are not really the right answer is that
the weather starts to get cold. So there's a lot
of things that that are that are good innovations taking place,
but as a society we've not really figured out, you know,
really where the world's going to end up being. We
just know that we're going to be manufacturing more effectively.
The United States does manufacturing, specifically in oil, cleaner and
than anyone in the world. I like those two ideas.
Do we do it cheaper than anyone in the world,
cleaner and safer? Uh and and and so if we
got a lot of it, it's plentiful. We can continue
to flow to our allies and to the right places potentially, uh,
reduce the prices of oil, which which ultimately is what
cripples Russia if they are going to uh, you know,
be be able to be a war machine or whatever.
They have a one dimensional economy. It's all based on energy.
If you want Russia and not be able to have money, uh,
which is something that we did to them before with
with with kind of a Reagan approach. Uh, then then
than what you do is you change the dynamics of
how it works, uh, and you just do it a
little bit better and uh. And so you know, can
can can can uh Trump get Powell to to come
off as number and drop rates as meaningful? I don't
think so. And I don't think that it would be
wise of Powell to be dropping rates right now. I
think that they drop rates too early. Uh to answer
this part of the question, and I think that that
Powell actually made the Arthur Burns mistake. And uh. And
so here's the big question that comes in twenty five.
Are we going to be sticking with two percent inflation?
Or is three percent or four percent? Okay? Where do
we even come up with two It's based on models
from long term timeframes, but not based upon realistic understandings
of a higher inflationary world. Times of transition, friends, shoring, reshoring,
all the various components that are going into this, and
so I think they're going to become more comfortable with
higher inflation. But we're going to do more supply side.
It's going to put more money into the American consumer's pocket.
But we've got a lot of challenges that are likely
going to be getting dropped on this administration and are
going to have to get figured out. So what are
these strategies and answers here in the future. Not really sure,
and it's a little early to tell the way that
it goes. But I think that there's a probability that
we might have to even raise rates if things go
too strong but that's a part of the reason why
I think Powell came in today and saying that their
forward looking view for twenty twenty five, which is what
the market was more concerned about, was that they were
only going to be cutting two times as opposed to four.
So we just got four times now since September, you know,
a full point down since September eighteenth, you know, here
this year, and we might only get fifty basis points
next year. So that's a big difference for the market.
We could see stock sell off, we could see you know,
the treasuries start to go higher, we could start to
see you know, maybe the Christmas rally doesn't go as
well as it could. But the point is is that
supply side economics will win in the end, and we
need we need to be doing the things that are
going to do the long term build, the long term growth,
the things that my five children are going to be
able to appreciate, not just something that's going to manipulate
a quarter or two.
Speaker 3: Sure, yeah, well, yeah, the Santa Claus rally, it should
be here very shortly, right.
Speaker 1: Yes, sir, Hey, well we're seeing it right now. Depending
on how you've been allocated.
Speaker 3: A couple of days though the market's been down, but
you know, yeah, like it's going to be interesting to
see and the AI. So is AI going to be
a flash in the pan. It's going to be more
like the dot bomb bust. But the dot bomb bust
led to all these massive companies like Microsoft and the
Google and the so many.
Speaker 1: Right, Well, the cycle of growth inside of technologies and
companies is you do you just kind of start out
with whatever? I mean, just even think about social media.
There is this company called MySpace that everyone had and
now nobody has, right, it's gone, and then Facebook's now
become met and it's transformed. Well as far as AI goes,
my personal belief of AI is no, the toothpaste is
out of the tube. You can't stop it. It's doubling
its knowledge all the time. This is the future. The
question is how is it going to impact us? And
how soon can that happen? And then we come up
with questions like, wait a minute, how are we going
to supply the energy that's needed to do all this
data storage, all this AI one intelligence? And so if
you're not able to have a meaningful change in somebody's
life as a result of this, AI. No one's going
to adopt it. I personally think that Navidia could have
challenges here in the future because they've been the name
and the concern is they became the dartling of the
stock market, rose to be, you know, one of the
largest companies in the entire world so quickly, and we
haven't really determined that they're the best chip. We know
that they have better capacity, they're really quick, et cetera.
But maybe they're too much of an energy hog. Maybe
they're too over built for most of the applications or
some of the applications, and we begin to yield it back.
And so I'm excited about AI. I'm excited about the future.
But I'll just tell you this. You know, my kids
aren't watching this today hopefully, but they all got eight
iPhone sixteen's coming here for Christmas, and and so I'm
kind of excited about the you know, the the Apple
intelligence that's going on side of that phone.
Speaker 3: Here. Let's do a little experiment.
Speaker 1: All right, what do you got Siri?
Speaker 3: Check chat shept and look up it's Strazeuski for me.
Here it is, and here it is, it says, oh jess,
it just went away on me anyway, it said you're
a It said it gave me your bio, but I
wanted it to actually say it, but I didn't give
it the right command. He yeah, it looked up chat GPT.
So Siri was was really an elementary school dropout. Now
now that she's hooked up with chat GPT, we got
our first AI wedding and she's like a lot wright.
Now she's actually useful because from that. But I will
tell you this as a fellow Tesla owner FSD thirteen
point two point one, which I just got two days ago, David,
I had the FSD two and a half years ago
when they first started it pushing it out to the
broader public, and I wouldn't trust it. I used to say,
if you trust a FSD in local truck driving on
the highway, it was always phenomenal local driving. You're gonna
die now, I will tell you. On the highway at
eighty five miles an hour, it's a better driver than
I am, and locally it's not quite as good as
me yet. But David, the last update I got like
a month ago, this thing is way way better, way better.
If I wasn't a less if I was a less
aggressive driver. I probably would never intervene for most of
the drives that I take, and that's only in a month.
Right when we first started the FSD, I'm saying, okay,
five to ten years, there's no way they can do
this any better. But then they got the AI and
all of a sudden, I think in six months they
could be there.
Speaker 1: Yeah, I mean, I mean there was a guy on wheels, right,
and he nailed it. Because you know that machine learning.
It's driven those roads so many times. These cars are going,
they're constantly picking up stuff, they're learning new ways of
analyzing it, the road patterns and how you deal with
this and this weather condition. So it's amazing the full
service driving. I mean my kids actually really, you know,
it's it's you know, it's like a magic trick, right,
because you just tell it where to go and it
starts making the turn for you. It turns on the
blinker and uh. But but you're correct that that it is.
It is way above average, and I have personal confidence
in it as well. Where you know, a lot of
people I feel like as they as they think about
AI in general, it's sort of like the Internet of
the early nineties. They go man, I'll never buy anything
on that right. And the next thing, you know, we
got our phones here and we're asking about David Sterzski
and biosome ordering Christmas off Amazon or whatever, and it's
it's increasing. So I think adoption's coming. It's just it's
not here yet because we've not seen the technology catch
up and you know. But but I think it's it's rapidly, rapidly,
rapidly changing.
Speaker 3: Just the other day, the road outside of my subdivision,
it had one lane blocked and they had the guy
with the sign and the car sees him. The sign
was he had it turned to stop. The car stops,
he turns it to slow, the car starts going, changes lanes,
sees the other guy with slow and goes around it
and continues. The drive is amazing. That is the most
amazing thing. And it saw him. I saw it on
the screen. It totally understood what was going on there.
But yeah, so I think AI is the key. Although
I think it will replace a lot of jobs out there,
who knows over what time period. They always said, well,
it's going to create more jobs. I think this is
the one where it doesn't. But if the cost of
living and manufacturing, all these things goes down to a
fraction of where it is now. In the productivity boom
you know, goes thousandfold, it's not going to matter, right.
Speaker 1: Well, one of the one of the other interesting things
that's happening today is, you know, the conversation about how
much money we make. You know, these unions are going
on strike and demanding ten percent a year increases for
the next five years or whatever, and you're just like, wow,
inflation's done. It doesn't sound like it. You know, when
you begin to to think about the costs that you
would have as a manufacturer to buy machines, Okay, it's
usually you know, big cost on the front end, but
your machine doesn't get sick, doesn't you know, leave and
go work for someone else, doesn't require health insurance, doesn't
need pay raises. You know, when you get to fifteen
to twenty dollars minimum wages, which in the state of
Washington right now, for whatever reason, we think that that's
a good idea. The point is is that I see
a lot of manufacturers that are going to be changing
over and yeah, there's a lot of those jobs that
are going to be lost, but there's a lot of
technical jobs that are going to get lost because you know,
there's well and also I think the healthcare system, I
mean think about that. AI is just a reference. It's
a speed reader. Could AI not read every book that
it takes to become a doctor, understand how to prescribe
and apply this information to the individuals based upon particulars
et cetera. And then it's able to do all this
in a very low cost way. And it's better than
a doctor is because a doctor is still a human,
they still get tired, they still see thirty five people
a day. Whatever. This technology has the ability to make
life a lot better. There's also a double edged sword
on it, and it could really make some things challenging
with hacking and stealing and just confusing parts of it.
So it's going to be a weird world, but an
exciting one. So this is you know, a moment where
I'm saying, you know, this is a buckle up, all
eyes open. Hopefully we're excited, and hopefully people don't just
get stuck in the way that things were. But I
do recognize that some of these technologies are a little
bit scary and you know.
Speaker 3: Littly well theatre, it's an amazing tide to be a
luck David, just tell us where do we find you?
How do we connect with you on the web.
Speaker 1: Yeah, so companies called Sound Planning Group. My SPG dot
com is the is our primary website there. So I've
got actually some classes are going to be coming out
first part of the year. We're going to be doing
them online where I've just only done this at local
colleges uh here in the Washington State area, greater Seattle area,
and so people can can look for ideas out there,
uh and check out our Google reviews and all the
wonderful things that people are saying about us. Since honestly,
the thing that that that's pick me up for me
these days. You know, if you're ever feeling down or
there's all these things going on, you go and you
look at the people that you love and you care about,
and when they say nice things about you, I don't know,
there's just something about that that gives you the courage
and the ability to just continue to go forward. So
I'm excited to be with you today, Clarie, and you
too them.
Speaker 3: I appreciate you coming on any questions com that's kl
at carrie lets dot com link to David's site is
in the show notes this interview on Financial Survival Network
dot com. While you're there, just to ask that you
kindly subscribe to our free newsletter, as over sixty thousand
other FSN members have. David always a pleasure. Talk to
you soon. Don't talk to you before Merry Christmas, Happy
New Year, and we'll talk to you in twenty twenty five.
Speaker 1: Sank to you, friend, blasting stock to you.
Speaker 2: So thanks for listening to Carrie Letz's Financial Survival Network,
your solution to today's trying times. For the latest, go
to Financial Survivalnetwork dot com. Financial Survival Network now more
than ever