Speaker 1: My home prices are going up. I'm doing fantastic. But
the renter and those who are working, you know, in
the lower class jobs, blue caller jobs, they're really really
hurting because their incomes are so far behind inflation and
they don't have the asset price appreciation that we have.
That's the problem.
Speaker 2: You are listening to Carrie Letz's Financial Survival Network, where
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Speaker 3: Ever, and welcome. This is Financial Survival Network. I'm your host,
Carrie Letz. Michael Pentapentoport dot com is with us now.
Any questions comments kl at Carrie Lutz dot com. Michael
one of my favorite guests, not just because so many
thousands of people listen to our sessions, but because you've
been spot on about exactly what's happening. I mean, our
interview about that the bond market basically doesn't exist anymore,
garnered so much attention I couldn't even believe it. But
now we're entering the next phase, and we got election
insanity going on here. What is your take? Does it
make any difference who gets elected?
Speaker 1: Of course, it makes a difference who gets elected. I'm
not sure if either candidate gets elected. And I'm talking
about Donald Trump. He's by far the better of the
two choices, but he's not a libertarian and he's not
a sound money guy. So if you're asking me if
the all our problems will be solved by the election
of Donald Trump, no, I mean I just laugh at
people say, oh, you know Donald Trump, But well, yeah,
I'm voting for him again. I could promise you that
I'm not.
Speaker 4: I'm not.
Speaker 1: I call Kamala the Kamala the cackling communist.
Speaker 3: But but you find your kind. There's some other choice
whords we could come for her.
Speaker 1: Right, Here's here's here's here's here's where I am so
despondent about Kamala Harris. Her idea to make home prices
affordable is to give everybody who's a first time home
buyer twenty five thousand dollars to buy a house. And
I'm like this, this, this is who we elect economic illiterates,
This is who we nominate as a president. Now I'm
thinking about government subsidies for housing or government subsidies for education.
Did government subsidies for college bring down the cost of
college tuition?
Speaker 4: Yeah?
Speaker 1: I mean, I mean he talked about if you really
want to goose the price level of a thing, of
an asset, how the government get involved and give a subsidy.
But here's here's the only that I worry about. What well,
what wasn't one mention of how we're going to pay
for it? No, we don't think about those things. But
she did. Well, the government doesn't have any money. They
have two choices. They can either steal it from the
people who have it, or they can print it. Those
are the two options unless you can you am I wrong?
Is there a government like cash stash of cash somewhere
in the ethernet or the nether world where?
Speaker 4: And I don't know. I think they're holding a lot
of bitcoin though, Oh.
Speaker 1: Okay, we let's go to the government could hit the
bit on bitcoin. That would be fine with me.
Speaker 4: I wouldn't care.
Speaker 1: But then now they listen. The government doesn't have anything,
has nothing that they don't and they have assets they
could liquid eate. But when they liquidate assets. They're taking
the money from the public, so they're just shu playing
money around. So twenty five thousand dollars per person, everybody
wants to new a house can get one. That's going
to drive the price of houses, especially you know, starter
homes through roof and it'd be a massive hole in
our in our debt and deficits. That's that's that's their
prescription to fight inflation. Here's another one for you. I
don't want to talk about too much about politics, but
I'll get you one more. What is the reason why
we had inflation, Carrie, We asked Kamala Harris. Oh, it
was corporate greed. Corporate greed suddenly sprouted up out of nowhere.
Suddenly corporations had this epiphany and got greedy around twenty twenty.
That's her version, corporate greed. Even though if you look
at actual corporate profit margins, they're pretty much unchanged in
twenty and twenty, so they they haven't been some price
gouging from corporations. Maybe carry had something to do with
the six trillion dollars of helicopter money deployed upon the
population by the government, by both Trump and by especially Biden,
who is spending trillions of dollars after the gold you know,
craze was over. Maybe has something to do with the
fact that the Fed printed five trillion of that six
trillion helicopter money. How about the M two money supply
went up by six trillion dollars. So you told people
you couldn't go outside and produce things, You couldn't make things.
You could order things from Amazon though if you wanted to,
or from the ups man. Every day was Christmas for
those people. Yeah, and you gave them trillions upon trillions
or trillion dollars in mortgage for barons and enhanced unemployment
and helicopter money checks in the mail. That's why you
had inflation. But Powell doesn't say it. That's how you
got inflation. Trump wlanes the price of oil, which is
a symptom of what I just said, and Harris Waan's
corporate greed. My god, are we living in a world
of economic illiterates?
Speaker 4: Yeah, totally.
Speaker 3: Like, Hey, I you know, when the pandemic was going on,
I knew it was going to happen to housing prices.
I'd been renting because I sold the house and I
was kind of in between, and I went on a
desperate search to find a house, and surprise, you know,
at least, and it's in the nominal price doubled, you know,
in just two years.
Speaker 4: And I'm not alone in that.
Speaker 2: You know.
Speaker 3: Back in Germany in the wey Maar Republic days, basically
people borrowed as much money as they could and then
when the when the mark collapsed, their predators were hiding
from them. They didn't want to get paid back in
the fully depreciated currency. I wonder how far we are
from that?
Speaker 1: Well, I never I don't know if we're there. We're
certainly not there yet or were I never thought in
my wildest dreams, you know, when I was a kid
getting into this business in the early nineties, that a government,
our government would print trillions of dollars per year. So
from nineteen thirteen to two thousand and eight, the government
printed eight hundred billion dollars. The Federal Reserve printed eight
hundred billion dollars from the formation of the Federal Reserve
all the way to two thousand and eight. And then
and then in those ensuing so was that, you know, uh,
fifteen years fourteen fifteen years later, the balance she went
to nine trillion dollars. So so you know, that doesn't
sound like America, That doesn't sound like sound money. Of course,
we had our excuses. We had the onesell lifetime global
financial crisis and the one set a lifetime virus which
you know didn't really turn out to be the pubonic
plague one offs. But really, I mean, besays buying Morgan's
backs to juries in twenty twenty two, what does that
that the hell is that do with COVID? Then you
wondered why home prices went up and that people blame
corporate greed for inflation even though their margins haven't improved.
So yeah, I mean the lunacy out there is over
the off the charts.
Speaker 3: Well, one thing I will say is certain companies. I
remember the last round of inflation we had and had
a printing company, and when we would raise prices because
there was inflationary expectations built into the system, we try
to add a little more and try to expand our margins,
but that is limited.
Speaker 4: Fast Food has.
Speaker 3: Done it, McDonald's has done it, but now they're feeling
the pain because they expanded their margins by three or
four points. But now for the first time, sales are
down because people. Have you got that thing called the
substitution effect?
Speaker 1: Right, Well, the truth is carried that the middle class
has been wiped out in this country. If you look
at the bottom four quintiles, they're really, really hurting. And
the fact that what I find so disturbing is at
the price level. The price level is so high that
they can't afford. You know, you look at a house.
The price of the house, the insurance, the taxes, the maintenance,
the fees, everything associated holding the house is unaffordable. And
we don't need the price level to do anything but
go down. The price of homes, the price of food,
the price of new cars, the price of insurance, taxes,
those things have to fall. The price level has to fall.
In economic speak, that's deflation. In Powell's mind and the
mind of the Fed, they're dicilary victory. Not that the
price level has fallen enough. It's the fact that the
price increases the rate of change has fallen enough. In
other words, the Fed is saying, I don't care the
middle classes has already been wiped out. The prices are
too high. I only care that instead of going up
by nine percent a year, they're going up by three
percent a year, and three percent a year is just
fine with me, even though it's not true.
Speaker 4: I know, is that possible?
Speaker 1: I mean, you're you're, you're, you're, you're wringing your hands
about a slight uptick in the unemployment rate because the
solid rule has been triggered. Oh you know, I mean,
unemployment is what four point three four point four percent?
It's still relatively historically very low, and we're ready now
to start cutting interest rates to try to get inflation,
you know, back up again. And I think that's so disgusting.
I think it's so disgusting, and I think the middle
class in this country gets it.
Speaker 3: Yeah, so money printing is not the solution here, but
the stock market seems to have liked it.
Speaker 1: Yeah, the SoCon well, and that's the thing, you know,
the thing that the thing that they said purports to
care most about is uh, the poor, the poorest among
us in the minories they care. Oh yeah, well I'm
looking at let me say, I own, I own multiple homes,
a pretty big stock portfolio, doing fine, doing great. Yeah yeah,
But if I rented and I have a manufacturing job,
I'm getting wiped out because I'm spending most of my
income if not all, or maybe even in some cases
more than my income because the credit card balances are exploding.
Oh yeah, I'm paying I'm paying, you know, fifty sixty
hundred and ten percent of my income on the stuff
that I need to survive, shelter, clothing, at food costs.
But the richest among us are paying very small percentage
of our income. This way, inflation doesn't really affect us,
because my portfolio is going through the room, my home
prices are going up. I'm doing fantastic. But the renter
and those who are working, you know, in the lower
class jobs, blue collar jobs, they're really really hurting because
their incomes are so far behind inflation and they don't
have the asset price appreciation that we have. That's the problem.
So true, true, so true. And and then the idea
of price controls that's going to fix it? And uh,
you know, because it's just complete divorce from reality here.
That's never happened. There's never been of an instance in
this country or other countries where they tried wage and
price controls. Have they get Oh wait, they have, they have,
And how do they work? Well? When you tell me
as a corporation that I can't produce this good or
service for the price that I need to charge to
actually make myself solvent, to make it a profit. Guess
what I do. I stop producing those things, and that
means you have shortages, and that means the prices actually
go even higher for those things that you want. This
has been proven throughout history in this country, in other countries.
I mean, if we want to look like Venezuela follow
cackling Kamala's the economic plant. It's just it's just disgusting
that I hear on here. Where is the candidate that
says RFK I guess you could say that is the
only person that was even alluding to it. It's like,
where are the people out there saying we need to
put the handcuffs on the Federal Reserve stop their madness?
Speaker 4: And why in.
Speaker 1: The world are they going to start to They're going
to start to expand their balance sheet. I mean that's
how you get I mean, the FED gets the inter
bank lending rate down by printing money, right, That's how
they do it. They flood the banking system with reserves
they don't even need anymore. I think there's like three
point three trillion dollars in reserves in the banking system.
Now they're good, they're they're flooded with reserves as it is.
They don't need anymore. But we're gonna now try to
get borrowing costs down so so the country can get
more in debt. Well, I'm looking at I pull up
some numbers recently. Uh, if you'll get us total non
financial debt to GDP. So that's every everything, corporate, government, business,
individual debt, personal debt that is now two hundred and
sixty percent of GDP. Do you know what it was
in the year two thousand and eight, two hundred and
forty percent of GDP. Year what was it in the
year two thousand It was one hundred and eighty percent
of GDP. So we have more total non financial debt
in this country than ever before. We have the most
leveraged we have ever been. If you look at government, corporate, business,
and the household debt, why don't we do in lower
interest rates to get people will take out more debt?
You want? We do want people to get more you
load up on more credit cards and order loans. Is
that what we want in this country? It's just it's insane.
You know, We've gone so far off the reservation with
asset prices and credit bubbles that I think they I
think the FED has realized they've reached an epiphany. They
have no choice. They have to keep this bubble going
because if it collapses, If and when it collap absence,
you're talking about a devastating depression.
Speaker 3: Oh yeah, there's no question about it. And they kind
of caught between a rock and a hard place.
Speaker 4: Right you know.
Speaker 1: I I did some more research tonight said when so,
now the Fed's about to cut interest rates. The FED
is about to ride to the rescue. Let's do Let's
go looking back in time. Let's see. Do you know
when the FED started cutting rates leading up to the
global financial crisis which started in two thousand and at
the end of it started the end of two thousand
and sound it, yeah, December of two thousand and seven.
Do you know what they know when they started cutting rates?
Wasn't It wasn't in two thousand and eight. It was
July of two thousand and seven when they started slashing
slashed the interest rates. They took interest rates to zero
percent from five and a quarter. Mister Bernanke did that
didn't stop the S and P five hundred from crashing
my fifty percent, and the housing market from losing thirty
three percent of its value. So do you know, and
the Fed started cutting rates in the year two thousand,
that two thousand NASAC bubble, right, you know when they
started cutting round I don't remember, Okay, So it was
the start of the year two thousand, that's when they
started cutting rates. It was December. It was actually, I'm sorry,
the end of the year two thousand, December of the
year two thousand. By the end of twenty twenty two,
the S and B five hundred was down fifty percent
and the NASDAK lost eighty percent, and the FED took
rates from six I think it was like six and
a half down to one percent. What what did we get?
Speaker 4: You know?
Speaker 1: The fact that the Fed is going to start cutting
interest rates is like, oh yay, the Fed is going
to the rescue again.
Speaker 4: Happy was here again?
Speaker 1: You know, if the FED cuts interest rates, there they're
the effective FED funds right now is five point three
percent carry. If the FED cut interest rates by a
quarter of a percent or fifty basis points or even
seventy five basis points, you're still going to have an
interest rate that's around you know, say say four and
a half percent. Let's say they cut interest rates to
four and a half percent by the end of this year,
they're still way above the rate of inflation. The way
they calculate it, inflation is two point nine percent, so
you still have a real FED fund rate. That's that
means the FED is still very, very restrictive, which is good.
I'm so glad that the FED has at least try
to bring some reality to this market and to these
asset prices and to the credit bubble. But they're going
I think they're if the Fed, unless the FED slashes
interest rates trenchingly, significantly, acutely right now, I mean, bring
them down to two percent as fast as possible, which
will be devastating for the long end of the bond market.
I'm not saying this is the right thing to do.
I think that would save the stock market for a while.
Speaker 5: Maybe maybe, maybe maybe, But that's saying that it's if
the stock if the long end of the yield curve
didn't spike, which is very probable that it would.
Speaker 1: But by going by, by going slowly now and reducing
indust rates, I don't think that's In other words, history
says it's just not enough because we still have a
lot of like I should total non financial that to
GDP is two hundred and sixty percent. That's a record
amount of leverages in this economy. Are you ignoring you
have to ignore the leading economic indicators which say that
GDP growth should be about zero percent going forward. Zero
percent handle. That's really not much in the way of
getting earnings per share growth at fourteen percent fourteen percent
EPs growth priced in for twenty twenty five. Do you
think you think we're going to get there with nominal
GDP growing at like, you know, almost nothing. I don't
think so you have you allso have to ignore the
inverted Ye'll curve, the Yal curve. The Yale curve has
been inverted for the longest duration in history ever, right ever,
and it was one of the steepest and versions by
one hundred basis points. Should we throw that? Since nineteen
fifty five, every single time we've had an inverted Yeal curve,
we had a recession except for one time when and
that was in the mid sixties when GDP went from
ten percent to zero percent. So the inverted Yell curve, Yeah,
I'm not going to ignore that. I'm not going to
ignore the leading agonogam index. I'm not going to ignore
the fact that the real FED fundrate has been positive
two percent for a very long time. I'm not gonna
I'm not going to ignore the overleveraged debt and the
you know, situation in the economy. I'm not going to
ignore the acid bubbles that we have. I'm not going
to ignore the Fed's balance sheet that's shrinking. There are
many reasons not to believe. Even if you say, Michael Pento,
you're a Cassandra, You're full of it. You're a permit bear,
even though you know I'm we're making money this year.
I mean I only lost money one time one year
in twenty twenty two. We lost about three and a
hare percent in the portfolio. So I'm not a permit bear.
It was always short the market. Sometimes I'm massively long
and very profitable. I'm just saying that if you're if
you're going to believe and get ready for this massive
rebound in stocks and massive rebound and asset prices and
a releveraging of an economy and a rebounding in economic
growth from here, you are insane. That's not gonna happen.
Speaker 3: Hey, So what about the budget which is out of control?
You know, I ask CHAT GPT to analyze every line
item in the budget for twenty twenty five and cut
to two to three trillion dollars. So the first thing
it does is come back and start. You can just
see how crazy it is. It says, well, if we
increase the corporate tax rate to twenty eight percent, and
it gives like all these tax increases. So I say,
you know, perform the above analysis with no tax increases,
get rid of corporate welfare and all other government wasteful spending.
So chat GPT in like thirty seconds cut the federal
budget by three billion dollars, you know, but of course, yeah, yeah,
Like we say four hundred billion on corporate welfare, we
say five to six hundred billion on so called defense,
and it says we should get rid of the F
thirty five Joint Strike Fighter program. Healthcare, we say four
to five hundred billion. By getting rid of Medicare overpayments
drug prices, will save two hundred billion. On Medicaid expansion reform,
we'll save one hundred and preventive care expansion, which is
the one thing I really appreciate about RFK Junior is
actually making our poison food supply a national issue, which
it should have been all these years, but it's been
swept under the rud by big pharma and big AG
and the big big healthcare.
Speaker 1: And you know, I just came back from it. I
just was. I just came back from Italy not too
long ago, and I ate like a pig every every meal,
was eating in a restaurant. Yeah, and I put I
poured pasta in my in my in my belly, and
I ate like a pig, drank every night a bottle
of wine. And you know what, I came back and
I didn't gain an ounce my game back. I didn't
out Now I go out to eat here one one restaurant.
I gained three pounds because our food, our bodies are
not able to tolerate the food, genetically modified grains and
corns that we that we put in our.
Speaker 4: Body, franking food. They call it fight soul.
Speaker 1: Fights, and our wine. It's just yeah, they don't. They
don't eat that way in Europe and much healthier. But
but when you said you said three billion for I
think you meant three trillion. You get three trillion so
three trillion, kerry, did you ask chat GBT? If you
cut three trillion dollars off the budget, what does it
do to the revenue that the government? Yes, is get
chat GBT?
Speaker 4: That I will you will. I will ask you.
Speaker 1: To ask it because I guarantee you in reality, I
don't know chat GBT would know this, and I don't
claim to be smarter than chat GBT. But if you're
going to cut three trillion dollars off of I think
we have a budget of six or seven trillion dollars, Uh,
your revenue is going to plummet short term. It's the
right thing to do, but your revenue will plum it
short term and you will have a dipression.
Speaker 4: I'm asking it right now.
Speaker 3: Reducing the federal budget by three trillion three spending cuts
would have significant effects on government revenue and receipts.
Speaker 4: How this is some good?
Speaker 1: What did it? I mean? Does it put a number
on the on the significant?
Speaker 3: Mm hmm, I would say it would be, well, it doesn't,
it won't go all right, So let's say, UH, give
specifics of the It likes to talk in generalities like politicians,
you know.
Speaker 1: So we have we have about five trill So revenue
is about five trillion dollars. What would the revenue be
under your very very austere but very very appropriate budget plan.
Speaker 4: That's what civix.
Speaker 3: Of the revenue reduction froum above. Okay, let's see man,
I'm just curious. I don't think it has a clue,
but of course it doesn't want to do.
Speaker 4: It now, Yeah, all right, here we go.
Speaker 3: Reduce borrowing could have a contractionary effect on the economy,
particularly if they reduce government of consumer spending and investment.
Consumers don't invest, I just spend. This could lead to
a slight decrease in tax revenues if economic growth slows. However,
the stabilization of federal finances could improve long term economic confidence,
potentially offsetting these effects.
Speaker 1: So Chat, I agree. Would CHAT GBT completely except for
when it says maybe and possibly it would be the
you would have long term massive benefits from doing what
you just have slashing government spending. In the short term,
we would we would wipe out GDP.
Speaker 4: Be a disaster, it would It would.
Speaker 1: Be disaster revenue wise in the and avery otherwise, yeah.
Speaker 3: And the global economy and all the debt, all the
debt that's out there would have to be marked to
its true value, right, so it would shut down the
financial institutions of the world. We'd have to read you
couldn't do it without a recapitalization plan where the banks?
Speaker 4: Right?
Speaker 1: Yeah, yes, you're right, Terry. You know, just to give
you an idea of how fragile and how stretched the
financial evation of this world is. You have the the
the slight unwinding of the end carry trade, which is
where you know, you borrow yend it. You go to
the bank Japan say how much yen can you give me? Well,
I give it. You give as much as you want,
no interest, you know, I'll tell you, and I'll take it.
And I'll go to Mexico and buy you know, Mexican
bonds and get ten percent, or Brazilian or you know,
even the US bonds and get five to five point
five point three percent. And then you get the kicker,
which is, you know what, since you everybody's doing this,
the yet is falling in value. So I get the
currency appreciation, and I got the interest rate differential, and
I'm you know, hedge funds love this. This is a
great thing to do. And then all and then all
of a sudden, the back of Japan says, uh you
ate a Governor Raia says, you know what, I'm going
to raise interest rates all the way up to one
quarter of one percent.
Speaker 4: Oh damn.
Speaker 1: And that sent the yen carry traders scrambling to sell
their bonds, sell their stock, sell their crypto, sell everything,
sell that currency and buy back the end to close
out their short, their synthetic short.
Speaker 4: Of the end.
Speaker 1: And then you know what happens. Then the I think
it's the fourth or fifth largest economy on the planet,
had its stock market. The nick iy Dao dropped twenty
percent in like five days. Him one fifth of the
entire value of the country's stock market plunged because a
little tiny corner of the financialization of this world started to,
you know, have little cracks in it. So just think
about what's going to happen when reality hits. There is no,
like I said, there is no easy way out of this.
Even if you did exactly what you said, we slash spending,
or the FED fed with the slash interest rates, the
long end of the bond market has no damn business
being at anywhere near three point eight percent. It just
doesn't belong there. It should be close to the double
digit because when you factor in inflation and credit risk
of this country, it should be much closer to you know,
seven percent eight percent. Yeah, So if the Fed we
get out of it, get out of the way, the
market would send rates much much higher. You know, we
should with thirty five trillion dollars in debt, unfunded liabilities,
over one hundred trillion dollars, two trillion dollar deficits in
in peacetime and in prosperity time, one trillion dollars in
interest payments, and you're going to lend lend money to
this government going out ten years at three point eight percent.
Count me out on that calculation.
Speaker 3: Hey, you know what does some people called unfunded liabilities
and obligations of the government, others called social security and
medicare right, Yeah, try to.
Speaker 1: Get rid of them. Try to get asked you that's
the check. That's what you pretty much do with Chad GBT.
You know that getting rid of government obligations is wiping
out other people's income streams. Yeah, and that has a
massive I mean you can't do that. I mean seniors
since paid into it, you know, they paid into it.
They expect a certain amount to survive. So you know
there's major changes have to take place. I mean I
would start by raising the retirement age now. But we
who's talk which kick?
Speaker 4: Kerry?
Speaker 1: Tell me maybe I'm wrong because RFK Junior is dropped out?
Which candidate? Which one of the two candidates is talking
about saving Social Security and Medicare by putting in programs
and plans in place now to keep them solvent.
Speaker 3: Well, you know they're going to do it anyway, because
touch comes to shove right.
Speaker 1: Print. They're gonna do anything. They're gonna print, Kerry. They're
gonna print it, Yeah, will print it. They will give
These programs will always be solvent. This is my opinion. Yeah,
in the business thirty three years. I'm sixty years old.
I've done this long enough. I've seen enough. There's those
programs will always be solvent. But they're not gonna be
solvent in the way you want them to be. They're
gonna hand you a check for one hundred percent of
what they owe. The purchasing power of what you're going
to get is going to be vastly attenuated.
Speaker 4: All right, So it's a house of cards. What do
you do?
Speaker 3: How do we defend our own personal finances against this.
Do we buy insurance, do we buy credit default swaps?
Do we get out of the stock market and get
a get a bigger mattress?
Speaker 4: What do you do?
Speaker 1: Well? That's why that is the genesis, the progenitor of
the inflation deflation economic cycle model that I created. I
look at those components. There's twenty components. They look at
the second derivative of inflation in the context of the
growth of the economy to let me know when I
should get out of the stock market. Right now, it's
telling me you could still invest in the stock market
and make money. But when the red flag start to fly,
and the red flags would be credit spreads, they'd be
financial conditions. They would let me know in advance when
I need to get out and be more defensive. In
the meantime, the way I'm making money, and the way
a lot of people are making money is they're buying
goal I'm buying. I have a good, healthy position in
the precious metal. I have low volatility. I have low
volatility stocks. So think about consumer staples, utilities, those things
are I think of what you have to own as
we enter into what I think could be a really
really challenging twoententy and twenty five, both politically and economically speaking.
Speaker 3: Sustained period of economic contraction. Here, I'll tell you this summary.
The chat GPT said total indirect revenue impact the combined
impact of these spending cuts could range from eighty five
to one hundred and sixty billion dollars annually due to
slower economic growth, reduce profits. But we know that corporations
don't really pay any taxes anyway. But it said, well,
these reductions are significant. They are outweighed by the direct
savings achieved through three trillion in spending cuts. And I like,
I want to find the politicians got the balls to
actually do this. You know, that's the guy I want
to vote.
Speaker 4: For it, I know, but where?
Speaker 1: But where is it? Where is it he or him?
Will her? Where are they? It's not cackling Kamala, And
it's not Donald Trump unfortunately, although again he's far better
than the other alternative, and.
Speaker 3: He might surprise too, because it's going to take a crisis.
What we're saying is nobody's going to do this proactively.
Nobody is going to take the steps to avoid the
inevitable crisis. So the crisis hits, and then hopefully everything
will be on the table.
Speaker 1: I think it's going to be on the table, you
know where I you know, the Pavlovian reflex action on
that's going to be on the table. Unfortunately, he's going
to be helicopter money, part due and ZERP and Q.
That's what they do. That's all they know. No one,
no one thinks long term, because what is the politician,
who is the central banker, and who is the politician
who's going to stand up and say, listen, what we
need to do is let markets function. We need to
bring down the level of these asset prices. We have
to let banks fail. We have to let let pension
plans and investment banks and insurance companies fail. We have
to let people fail, corporations fail. We have to bring
out all the excesses in the economy. It's going to
be a depression that lasts for a few years. They'll
be brutal. But on the other end of that, we
were going to have stable prices, a sound dollar, a
sound currency, low taxes, low interest rates, low inflation, and
you know, prosperity for a very long time. Who is
I mean, I don't know who's going to do that.
Speaker 3: But you know, Michael, it's like when you have a kid,
all right, and the kid is hungry and say, but
I've only got chocolate to give him, and that's really
not good because hey, like RFK Junior, We'll tell you,
I've only got chocolate and seed oils. What am I
going to do here? But but the kid's going to
stop crying, all right, give him a little piece, and
then that shuts him up for two seconds, all right,
and then he comes back screaming worse than ever. And
then he had shoved the whole candy bar in his
mouth and shut him up. And that's what our politicians
do here.
Speaker 1: I think. I think it takes a lot of education
that has to be A education has to be and.
Speaker 4: The real education, yeah, education.
Speaker 1: Education, economic education for our politicians and economic education for
our population. Not you know where is that? How can
we transmit that? That's what we should be focused on.
And that's why I come on programs like yours. If
enough people see and hear the truth, maybe they'll say, Hey,
for the sake of my children and my grandchildren, I'm
willing to suffer like this because there's no other alternative.
And it's never gonna happen. Carry, it's not gonna happen.
What's gonna what's most likely going to happen, unfortunately, is
we're gonna have a like I said, qe zerp helicopter money.
It's going to cause the long end of the bond market.
The bond market is going to go in full revolt
mode because of inflation and insolvency concerns. When you have
interest rates spike to that level, when you have interest
rates spike to that level where an inflation and interest
rates cause utter economic chaos, then the people will say,
let's try something else. They'll demand another plan of action.
The only problem is as bad as things are right now,
it's going to be even worse by the time we
get to that point.
Speaker 4: Yeah.
Speaker 3: And the bankruptcies, let's not forget. It'll be cities and
states as well. Ten states will go bankrupt they can't
under the existing law.
Speaker 4: It'll have to be amended. Well, they won't call it bankruptcy.
They call it a reorganization or something.
Speaker 3: And the New York City, Chicago, La San Francisco, you know,
all these failing cities, excuse me, are all going to
go you know, Detroit. Well, they already did go bankrupt,
and they're actually on the upswing, interestingly enough when I
talk to people there. But and how you're going to
pay these cops? And we got a prescription for anarchy here,
don't we.
Speaker 4: Yeah?
Speaker 1: Well, I think hyperinflation would be or at least intractable inflation.
Multiple years of double digit, near triple digit inflation, that's
going to be enough to cause that's going to be
the catalyst for change, and that will cause bankruptcies. You'll,
you know, investment banks will go bankrupt, banks, hedge funds,
pension funds. Yeah, that's that's that is what you're going
to need, I think, to bring some reality to this market.
It's not going to come volunteer voluntarily.
Speaker 4: Where's our Javier in Mille? Right? That actded I don't
see him on the horizon.
Speaker 3: He's unelectable and it's only look okay, look it took
Argentina to hire that guy, right, a century of failure, Michael.
Speaker 1: Finally, Yeah, even even in Zimbabwe, which is a serial
hyperinflationary economy. Even in Zimbabwe, they said, you know what,
let's just link our currency to gold. They have linked
their currency to gold, and I don't know if they'll
stick with it. I don't know if it's going to work.
But it took you know, a series of hyper inflationary
debacles where the currency was completely wiped out along with
the economy. They said, let's just let's try something new.
Maybe we'll get there someday, maybe you and I will
see it. I'll mean, it would be nice to see
the definancialization of this country.
Speaker 4: Edit world and the world.
Speaker 1: Yeah, correct, And it would be nice because you know what,
that's how you get the most freedom and prosperity in
a nation. A viable and healthy middle class is that
we're looking for. And I maybe something will happen.
Speaker 3: A remember, for forty fifty some ideas the country got
along just fine without a central bank.
Speaker 4: Think of that.
Speaker 1: Not that we got along fine. It was the period
of greatest pop prosperities nation has ever seen.
Speaker 3: Yeah, all right, I think we'll leave it at that.
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your free newsletter. Michael will talk to you in a
month and see what further madness has unfolded.
Speaker 1: Ah're looking forward sway, Carrie, take care.
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,