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Speaker 1: Once you start going down this road of printing money

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and deflating the currency and you know, creating this inflationary process.

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I mean, it's really really hard to back out of.

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And until we stop spending, you know, we can lower

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rates as much as possible. And I really think that

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this is going to be a it's a band aid,

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it's a short term cure for a long term problem.

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And you know, it's what is it, short term pain,

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you know, versus long term gain. And instead we've chosen,

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you know, short term gain, and we're going to create

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long term pain.

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Speaker 2: You are listening to Carrie Let's's Financial Survival Network, where

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you get valuable information you just can't find anywhere else

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to thrive in today's trying times. You need the Financial

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Survival Network now more than ever. Go to Financial Survivalnetwork

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dot com and get your free newsletter and gift. Financial

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Survival Network now more than ever.

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Speaker 3: And welcome. You are listening to and watching the Financial

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Survival Network. I'm your host, Kerry Lutz. Hey, who would

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think mid September, surprise, surprise, the Fed cut rates Finally, finally,

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they've only been promising for a year now fifty basis

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points probably another one on the way well sidell is

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with us now ed So shock, what do you think?

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Speaker 1: No, no, I you know, originally I was saying, you know,

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fifty basis points, and I kind of bought into well,

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you know, they're not gonna telegraph it. They're not going

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to be that overt and they'll probably only do twenty

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five basis points. But once again, how they continue to

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prove me wrong. You know, they telegraphed what six six

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rate cuts in November and confirmed it in December last year,

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and so this is the first one, and you know,

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oh what a way to make a big splash. You know,

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fifty basis points. I think now the federal funds rate

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is four and three quarters to five percent. You know,

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I think they're going to lower it another fifty to

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seventy five basis points before your end.

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Speaker 3: I think it's a mistake, that's what they're.

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Speaker 1: Going to do.

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Speaker 3: This is the last one before the election though, right, yep,

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when's the next FED meeting. It's in November, so it's

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after the election.

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Speaker 1: This was a big one because you know, you know,

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as a Pennsylvania I think Pennsylvania starts mailing ballots next week.

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Speaker 3: So yeah, this was a big deal. Yeah, well, I

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don't think Pennsylvanians are really they're going to yawn at

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this one, right, not going to matter. If you didn't

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manage to secure one of those eight hundred and eighteen

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thousand imaginary jobs with imaginary pay and benefits and imaginary vacations,

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all that good stuff, then you're kind of left out

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in the cold, aren't you.

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Speaker 1: Well yeah, but you know, so everyone's kind of focusing

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on that eight hundred and eighteen thousand, but everyone's forgetting

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about all the revisions downwards on top of it, you know,

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every other month, So every two months, you know, when

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they came out with the jobs glowing jobs reports, you know,

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look how great everything, and then they would everything is,

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and then they would revise it downward two months later,

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and then the other eighteen hundred and eighteen thousand on

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top of it. So, you know, I think last time

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we talked, I used the phrase the tail of two cities,

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you know, Wall Street versus Main Street, and then I, honestly, Carrie,

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I really started thinking about it. You know, I've been saying,

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you know, we're kind of in a rolling recession. But

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I missed the boat. I completely missed it until a

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couple of weeks ago and then realized the recession is

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in the private sector. Okay, the public sector, government jobs,

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there is no recession. I mean, that's where we just

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added forty seven thousand new jobs at government jobs and

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so you know that's those jobs that weren't created and

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continue to be lost, you know, those are in the

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private sector, and that's where all the pain those are

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the pain points right now.

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Speaker 3: Yeah. Well, hey, as far as the government is concerned,

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the it's all the same, right, it's all one big

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bucket and jobs are actually ops and uh we should

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all be grateful.

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Speaker 1: Yeah, yeah, just just happy and go along, you know,

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go along to get along, you know. But I think

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I think people are finally starting to wake up a

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little bit, at least I at least I hope.

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Speaker 3: So ezak, you think they're waking up? Really, I do too,

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you know, I think with we not as fats as

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you own one. Yeah. So, uh so where does this

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leave us all here? You know?

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Speaker 1: I I think, uh, we're going to continue to see

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you know, another round of of q E quantitative easing,

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and I think it's going to be honestly, you know,

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quantitative easing Q e infinity. It's just it's just never

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going to stop because you know, once you start going

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down this road of printing money and deflating the currency

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and you know, creating this inflationary process, I mean, it's

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really really hard to back out of. And until we

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stop spending, you know, we can lower rates as much

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as possible. And I really think that this is going

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to be a it's a band aid, it's a short

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term cure for a long term problem. And you know,

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it's what is it, short term pain, you know, versus

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long term gain? And instead we've chosen you know, short

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term gain, and we're going to create long term pain.

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And I think we're going to see what we saw

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on the seventies. You know, inflation is going to come

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roaring back and then rates are going to go back up.

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And you know, until we get leaders in d C,

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actual leaders that that are really focused on their constituencies

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and you know, American people, this is just going to

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continue to happen and it's going to get worse before

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it gets better.

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Speaker 3: All right, So what's the for the individual investor? Should

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you be buying bonds because they're going up? Right? Yeah?

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Speaker 1: So not only the yields right are are still really

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good right now. But you know, it's the the bonds

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that has an inverse reaction to interest rates, either up

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or down. So as rates go down, you know, the

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appreciation of bonds is going to go up.

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Speaker 3: And you know, if.

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Speaker 1: If you go out to uh, you know, close to

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ten years and you do a decent fixed income ladder portfolio,

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you know, getting you know, six six and a half,

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you know, uh, growth rates including yield on an annual basis,

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I think is unbelievably doable, you know, especially as we

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can continue to see money market rates go down.

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Speaker 3: Yeah, so maybe last week the market's getting gyrating getting

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slammed was the market's way of telling the Fed you

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promised you better deliver. Yeah, oh absolutely that.

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Speaker 1: I think that was the wake up call and said, hey,

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you know what, we already have fifty bases points built

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in and you know, I honestly I think the FEDS

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should get out of the interest rate game and trying

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to you know, control the economy using interest rates. You know,

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I think what they need to do is just have

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a sound you know, monetary policy. But you were that's

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just never going to happen, at least not with this leadership,

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not with Powell. You know, he's more concerned about his legacy,

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you know, over the next couple of years. So yeah,

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and that's really what it comes down to. They're just

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looking at, you know, what's it going to look like

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by the time I get out of here. And once

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I get out of here, you know, then it's up

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to the next person. And I you know, I'm not

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so worried about.

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Speaker 3: It, all right, So bonds Obviously, gold has been going up,

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you know, you do realize, like, of course you realize

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I'm talking to a financial professional, but the dollar has

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been steadily sinking, right, and it was obvious that this

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was going to happen. They put it off till the

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last possible moment. Right now, we've got gold, as you

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and I speak, all time high of twenty five eighty

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five the ounce, So it's going to three thousand. It

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looks pretty obvious for sure, there's got to be sold

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that we have pulled back at some point. And then

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the silver back up to thirty one bucks just about so.

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And then when we look at the dollar, it's it's

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right at one hundred, which historically it's not such a

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low level. But compared to what it was trading at.

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It's down you know, fifteen percent recently. Yeah, you know,

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I mean it was this I think it was a

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year ago. A year ago October it was you know,

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one fifteen and and so yeah, you know, I've been

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saying it's going to dip below one hundred, but you

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know that it's it's going to be the continued devaluation

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of the dollar, and I agree with you. I mean,

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gold is going to hit three thousand sooner than expect.

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I think earlier this week or maybe it was last

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Friday gold was or or over the weekend, I can't remember,

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when everything's kind of running together where gold was actually

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over twenty six twenty six hundred. So you know, we're

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just going to and that's.

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Speaker 1: That's a telltale sign of you know, hard assets, people

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investing in that as well as silver, and and you know,

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protecting what they have. I think short term the market

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is is going to do well, uh this year, going

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in the next year. But you know, you really got

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to keep an open eye as to what's going on

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in the world around you because you know, when when

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things really start going wrong, I think it's going to

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go wrong, not at the drop of the hat, but

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it could be like overnight or over week, you know,

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very very quickly, and you know, you want to make

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sure you know you're you're protected. You know you do

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have those hard assets on hand, cash on hand and

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other things because you know, work the the the debt

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rate for consumers is up one hundred and twenty three percent.

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Savings is normally average is about almost nine percent. I

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think it's like eight point eight or eight point nine percent,

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and it's down low three percent, which is recessionary by itself.

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So you know, we've been hearing soft landing, soft landing,

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don't worry about it. Everything's great, you know, rainbows and

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puppy dogs, and you know, I think we're there and

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I think it could get a little bit uglier before

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it gets better. But the market's going to tell a

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different story because as rates go down, the market's going

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to do better. And and my fear is as rates

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go down, people are going to spend more, get more

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into debt, and that you know, that's going to create

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an issue all the way across the board.

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Speaker 3: Well, you know, they even if they don't go on

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shopping sprees, they're going to be spending more because everything

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is more expensive, right, and when you tell.

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Speaker 1: The cure inflation, yeah, the nerd inflation carriers, it's we're

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all good. Remember inflation is only at you know, a

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two point five percent to show.

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Speaker 3: Well, it sounds like whoever the next occupant of the

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White House is going to be. Uh, there're going to

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be some issues, aren't there?

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Speaker 1: Yeah, you know there are, right, and you know either

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candidate right now, you know both. And you know I'm

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saying Harris because she was part of the Biden Harris campaign.

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Everyone who over spent it. So so you know, we

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need to make sure from the Speaker of the House

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to the White House that everyone's on the same page

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as far as getting this debt under control. And if

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we don't, if we don't read this debt bubble, it's

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going to pop all the way across the board, and

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that's when it's going to really get ugly.

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Speaker 3: All right, Well, thank you for your words of wisdom.

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Speaker 1: Ed.

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Speaker 3: Just tell us where we find you again, how we

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connect with you on the web? Yeah?

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Speaker 1: Absolutely, it's e g SI Financial dot com.

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Speaker 3: E g SI Financial dot com And the link is

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in the show notes of this interview on financial survival networks.

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Dot com. When you're there, please sign up for free

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newsletters like thirty over thirty thousand of you have done

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already and a great info from a variety of sources.

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And if you've got a question for Ed or myself,

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you can always shoot me an email k l Atcarrie

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Lutz dot com. Ed we'll talk to you next month,

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and let's let's keep our fingers crossed. Man, maybe financial

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alchemy isn't dead after all, and the FED will pull

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a monetary rabbit out of the hat, although for some

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reason maybe not. We can only hope.

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Speaker 2: Thanks for listening to carry Letz's Financial Survival Network your

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solution to today's trying times. For the latest, go to

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Financial Survivalnetwork dot com. Financial Survival Network now more than ever,