Speaker 1: You know, there is an important moment in history that
I think that many are missing right now, and that
is that we have serious headwinds right now in unemployment,
serious headwinds that we are seeing in national debt, serious
headwinds that we're looking at in World War three, union shutdowns,
immigration challenges. As we're forty days or so out from
this election, which has been one of the most interesting
times in history, and you know, I'm very concerned that
we're about to experience our hurricane, but we're going to
experience it like it was a tornado and we didn't prepare.
Speaker 2: You were listening to Carrie Letz's Financial Survival Network, where
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Speaker 3: Ever, And welcome you are listening to and watching the
Financial Survival Network.
Speaker 4: Come here, who was carry Lott.
Speaker 3: David Scruzeuski is with us now, and David, it's always
great to have you on the show. So you're extremely
concerned now about the prospect of a category six recession
crash hitting US.
Speaker 4: Now, what makes you think it's immint it?
Speaker 1: Well, Carrie, I love how you just framed that and
name the category six. I know you're in Florida just
dealing with hurricanes there, and we were talking kind of
in our pre bit. There had this analogy just kind
of come to me, and that was, of course, you know,
what's the difference between tornadoes and hurricanes. I mean, they
both spin, they both twist, they both destroyed. The differences
A tornado shows up out of the blue was unexpected.
You get to the basements because that thing's sirening and
you know the sirens going off in your town. Well,
with the hurricane, we see the gale force winds begin.
There's some tropical storm out in the middle of wherever,
and then something shows up, you know, And I think
that what I want to talk about today, and I'm
excited to share, is that, you know, there is an
important moment in history that I think that many are
missing right now, and that is that we have serious
headwinds right now in unemployment, serious headwinds that we are
seeing in national debt, serious heads winds that we're looking
at in World War three, union shutdowns, immigration challenges. As
we're forty days or so out from this election, which
has been one of the most interesting times in history,
and you know, I'm very concerned that we're about to
experience our hurricane. But we're going to experience it like
it was a tornado and we didn't prepare to see
even if it's not a category five, and everyone's like, hey,
we're about to have not a recession, Well, well if
it's if it's just something less than a five. But
you leave, everyone leaves their lawnmowers outside. What ends up happening?
You know, those lawnmowers smashed through everyone's windows, destroy tons
of things, and the catastrophe is far worse than it
needed to be because no one was prepared. I think
that today we are not prepared as a society. I
think today we are not prepared for what is coming economically,
and we would rather just you know, get our favorite
purpose and elected and hold out for dear hope, ultimately
making situations worse as time goes along. So that's the
analogy I think that frames our moment in history right now.
And I think it's apropos just given you know, what
are our nation's experiencing on the East coast here where you.
Speaker 3: Live, you will you know, I think it's more like
you left your doors and your windows open and you
know the storm is coming, and then you just hope
it's going to pass you by. But the reality is
everybody's going to take a hit here, right.
Speaker 1: True, absolutely, And of course who takes the biggest hit
is the you know, the the American public, the consumer,
the taxpayer, we the people. You know, it's it's it's
it's quite remarkable when you look at where we are
as a nation and to say that we're strong. You know,
the consumer today is sitting with record high credit card debt.
And let's just be clear, no one goes into credit
card debt because they think that that's a good idea
or a good way to buy things. They do it
because that was their only answer, that was the only choice.
And so you know, we paid off our credit cards
by the way, in twenty one and twenty two when
everything was was you know, locked down, and then because
no one wants credit card debt. But now we blew
through that two point nine trillion worth of savings and
we find ourselves at a nation, as a nation in
a place that's very difficult. So with GDP numbers coming out,
and you know, we got the rest of the year
to be seeing how this thing unfolds. I'm very concerned
Carrie that we're going to see a lot of this
data deteriorate all at one time. And that's probably why
the CONFEDI just even cut fifty basis points when I
believe that they should have never come close to cutting
fifty basis points here in September.
Speaker 3: And the odds are good, I knew they were going
to cut fifty by the way, Jill, Yeah, I'm surprised
they didn't cut a full hundred basis points, but they
had to look like they still care about inflation.
Speaker 1: But all they care about now is the election. That's
right exactly now. They do care about the election. This
is the most political bed that I can remember. I
mean here, they were supposed to cut in July of
twenty three. They wait fourteen extra months to cut the
month before the election or the month that everyone starts voting,
and so of course what's that going to be. That's
very inflationary carry what happens when interest rates sensitive investments
like real estate that were already at all time highs.
It's the most unaffordable time in our nation's history to
own a home or even rent a home, and so
you cut rates, therefore giving us the ability to go
deeper into debt, making the price go higher. How is
that result going to result? The stock markets at all
time highs? This is going to end in the worst crash.
And maybe it is a category six like you were saying,
And there's not even a category six hurricane, so we'll
call it a category six financial crash.
Speaker 4: I haven't seen one.
Speaker 3: But look, Warren Buffett is dumping stocks like there's no
tomorrow is what do you make of that?
Speaker 1: David Well, the smartest investor of our time, Warren Buffett,
when quoted about asking how to invest in a bull market,
he said, you know, when the tide comes in, all
ships rise, but it's only when the tide goes out
that you find out who's swimming naked? How expected if
you actually were, and.
Speaker 3: So beaches all antient the naked investors out there, right.
Speaker 4: That's right?
Speaker 1: And guess what we got a lot of exposure here today.
And what I'm very concerned about is that the anchors
to the portfolio that people have been depending on For
all these years they've been saying, hey, I diversify my
portfolio because when things that our negative happened, I need
a good anchor. And so that's the bond market. Carrie,
if I could just say this really quick, I believe
that the sucker at the card table, the biggest risk
that we have right now is actually in the bond market.
And the reason why is that the bond market is
is not priced according to the risk that we're actually taking.
There are five different ways that bonds can lose money,
and people don't know this. They're not aware of this.
Their portfolio is lost in twenty twenty two because of this,
because the interest rate change component to that. But the
United States right now is you know, we've been the
cleanest shirt in the dirty laundry if you will, like, Okay, well,
if I got to do something, I guess I'll put
that one on. But right now that shirt is not
looking nearly as good because we've got you know, thirty
five trillion dollars in debt. I mean, we've added twelve
trillion in four years. I mean it took us twenty
three trillion, took us two odd fifty years. We did
this in four twelve trillion dollars. We added another half
to it. This is a away great train right now.
If Moody's gets Moody.
Speaker 4: And they.
Speaker 1: Rate us down from triple A rated to double A rated,
could you imagine that mean the third rating agency we
just had Fitch to it last year? What would happen
with Moody's The entire system gets downgraded at once. What
happens when your positions were credit worthy at triple B
and now they go to double B junk status? That's
an issue. What happens when everyone, everything that was A
rated becomes potentially less than or at least questioned, Well,
then we've got to look at our system in a
different way, and it causes us to examine a whole
new light. That light is not currently here. People are
not currently looking at things in that way. And if
we begin to evaluate like that, friend, it's going to
mean that the world is looking at stocks. They're going
to be looking at their investments from a whole different
point of view.
Speaker 4: I couldn't agree with you more.
Speaker 3: And look, I think the handwritings on the wall trillion
dollar of new debt every hundred.
Speaker 4: Days, that's right, that's four trillion a year, and the.
Speaker 3: Appetite for US debt is diminishing globally, and the rush to.
Speaker 4: Gold is on. So what do you buy here? Gold? Silver, Bitcoin?
Is that it?
Speaker 1: Well, you know, the hard assets things like that are
going to be much more meaningful. So yeah, I'm a
big metals investor. I think one of the ways that
you can do this is you can purchase the physicals,
or you could actually buy the miners. The miners are
so on sale right now. I think that as a
sector they're likely going to lead for the next decade.
And so you know, if you don't want to buy
individual names, buy an index, a good index, and leverage
somebody else's understanding. I think bitcoin definitely is going to
be going up because the US dollar is being questioned.
I mean, my belief is that the ten year treasury
of the United States is at high risk right now
of losing the world's reserve asset statu Yes, So the
fact that everyone puts their money in you know, ten
year IOUs and the US dollar is changing with the
bricks nations coming out with their new system, et cetera,
et cetera. So you know where do we go. Well, hey,
there's a number of places to go. But again, we
need to examine our anchors. I think now before more
than ever, we need hedging strategies. We need to understand
how to dial in our risk inside of our portfolios,
make sure that we have the right anchors in place
before the storm shows up. I mean, if I didn't
do the things on the front end, again, I'm going
to have a much different outcome as everything gets blown
away hard. The pun in a recessionary type but timeframe.
Speaker 3: So he you know, I have to tell you like
I've been in YouTube the jail for years. I mean,
I've been in the YouTube goolog of content creators.
Speaker 4: They've been shuddering me.
Speaker 3: But recently I've had a number of them blow up
for me, go viral, not what they used to. But
my last one was Martin Armstrong Prepare for World War Three,
gotten over one hundred and fifty thousand views, David Well,
which means even the YouTube algorithm cannot contain people from
seeking out this information that to me could be the
biggest contrary indicator. And it's been a trend that's been
taking place David over the past six months where their algorithm,
when I have the right guests on and the right
headline blows up, and people also rip off my stuff
and read do it under their own, and they get
more reviews than I do, which is fine because I
just want the message to get out there. But you know,
something is definitely a foot, he says. Gold and bitcoin.
I think you got to have some. You don't need
a lot, because it could go up ten like that,
could be trading one hundred and fifty thousand, two hundred
fifty thousand like nothing, because right now it's close to
sixty three or four down A little bit today doesn't
particularly matter.
Speaker 1: But I make a cook case for you sure the
way that I actually like to look at it. I mean,
I own some gold, but but I'm actually a much
bigger silver investor. And here's the reasoning. What you know,
we've all we've all been familiar with this idea of
the gold standard. Well, the gold standard was fifteen ounces
of silver is equivalent to the same value as one
ounce of gold fifteen to one. Well to this morning,
we're at like eighty four to one, as is the
actual ratio of silver to gold. If you look at
the mining ratio, like what are they producing today? It
is a strained to one at night. And so the
question is, wow, why is silver not worth more relative
to gold? And the answer is because our fallen's these
these wonderful things computers all the it has a commercial
value to connect circuits. But the new thing that is
being used silver for the most is solar panels. And
of course, the quote unquote Inflation Reduction Act given an
incredible incentive which I took advantage of to to get
solar and that is a significant use of silver. So
I personally believe that silver has a far larger growth
ahead of it than gold does. And so I like
solar miners and places that are you know, able to
really capitalize and what will I think be a very
strong trend. So gold's leading the way to new all
time highs. That also tells us that inflation is with us,
because if it takes more interest dollars to buy one
outs of gold, then that's inflationary. But silver is about
to break loose here and it's in the past, and
I believe that ultimately silver is going to go to
you know, probably fifty bucks at the end of the year,
one hundred dollars by the end of next year, but
it could be as high as two hundred at all
depends on the progression of that brick system, which is
of course paying forty percent of their currency to gold,
sixty percent of the GDP of their nation, which of
course can be manipulated in a number. So let's just
focus on forty percent of it was gold.
Speaker 3: I think bricks ultimately will be a failure, but for
different reasons.
Speaker 4: But it's still not going to change anything.
Speaker 3: Do you know how many ounces of silver go into
a cruise missile, David.
Speaker 1: I do not. Five hundred five hundred ounces sold one
blond out about all. Wow, the ounster box worth of
silver for every cruise missile.
Speaker 4: Yeah, here you go. Yeah, we're building more and more
of them than ever.
Speaker 3: Which is why the government has been keeping it down
for as long as they can. But it's also a
lot of military applications you know, use many many more
ounces of silver than anything else. And you know, it's
just something you know that you should kick track of.
Speaker 4: Here.
Speaker 1: It means it a very high and that just is
to your point. I mean, under COVID, everything shut down.
We have a deficit. I think coming into this year
was about two hundred and fifty thousand or two undred
and sixty thousand ounces deficit of what we need, so
we weren't replenishing the ones that were used. And of
course in China right now they're paying an extra three
dollars over spot beyond what we have to enter in
the US. So I don't think that we've in the
Western world figured out what they've figured out right now
in Asia, and they're doing it as fast as they
possibly can. I just wonder, will we experience a hurricane
like a tornado? Ye? Will lack of being observing the
times that are changing.
Speaker 3: There's no question in the entire world. All the faconotis there, Bro, David,
just tell us.
Speaker 4: How do we connect with you? How do we find
you on the web?
Speaker 1: Yeah, hey, Steadbubble dot com got some good information out there,
got classes that are coming up here as the year
is ending on Medicare, Social Security tax is a retirement
So that's kind of what we got going on right now.
And welcome anybody to get some downloads off our website.
Speaker 3: All right, and you'll find a link in the show
notes to this interview on Financial Survival Network dot com
and just click it take you to David's site.
Speaker 4: While you're there.
Speaker 3: Would you please sign up for our free newsletter. Got
a question for David myself? Klatcarriluts dot com is the
email address.
Speaker 4: Always a pleasure to have you on, David. We'll talk
to you again real.
Speaker 1: Soon Gary Pleasures mind take hereic talking soon.
Speaker 2: 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,