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Language: en
inflation is a very simple concept it's
just the money supply expanding and so
the more money there is right that's
what you're inflating that's where the
word literally comes from over time the
government has been very successful in
changing the definition of inflation to
fool the public as to its source because
if the public understood what inflation
was they would know that it's not caused
by grocery stores you know when Kamala
Harris says it's greedy grocery stores
that are causing inflation if you
understand that inflation is an increase
in the money supply well you know it
can't possibly be the grocery stores
because they don't have a printing press
they can expand the money supply but if
you think that inflation is rising
prices well yeah the grocery store keeps
raising my prices so they're causing
inflation they're raising prices because
the government created inflation that
the the prices are going up in response
to the inflation that's been created
uh so but by by changing the definition
of
inflation the the government not only
confuses the public as to who's creating
it but now they're able to blame it on
other factors like greedy corporations
or Putin uh you know that was you know
Biden kept talking about Putin and Putin
was causing the the inflation there's
only one source of inflation in America
and that's the Federal Reserve but the
reason the Federal Reserve is creating
all that inflation is because the
government is running massive deficits
and so the Federal Reserve is financing
those deficits by buying those bonds
with the inflation it creates the money
that it prints and so the the best way
to look at inflation is a tax right
inflation is what we pay for the
government that we don't pay for with
the income tax or the Social Security
tax or a sales tax basically the
deficits the federal budget
deficits we end up funding them by
inflation and those deficits are about
to Skyrocket they've been skyrocketing
and so the inflation tax is going to be
much bigger in
2025 than it was this year regardless of
what the FED is trying to tell
us how do we look at the FED signaling
that they're going to bring rates down
which we know they do because inflation
has come under control that's the public
messaging how do we reconcile that that
they're messaging that with you saying
no no no this is them giving up this is
capitulation uh and what you're looking
at is not what they're saying how do we
reconcile those two
views well the FED is now focused on
employment the economy which has clearly
uh come under a lot of pressure recently
is very close to officially I think
falling into
recession I think we've been in
recession pretty much the whole time I
just don't even believe the numbers the
way the government uh manufactures them
so I don't think we've ever had a strong
economy I just think that that's just
been a a statistical you know anomaly
and even if you look through the
statistics you can actually see a lot of
the inherent weakness that is being
masked by a lot of these superficial
numbers but when the FED stopped hiking
rates it was because Banks started to
fail if you remember what happened with
signature Valley Bank or uh Signature
Bank Silicon Valley Bank a few Banks
started to fail as a result of rising
interest rates and then the FED really
backed off and of course they had to
have a big bailout program to prevent a
lot more Banks uh from suffering a
similar fate but that's really when the
rate hikes stopped and so the FED kind
of kept rates where they were but kept
implying that look we're going to cut
eventually we just need enough proof
that inflation is going back down to 2%
% and they said we're not going to wait
for 2% we just have to believe that it's
going there now of course the reason
they're not going to wait for 2% is
because it's never going to get to 2%
and they probably know that but at this
point the jobs numbers are getting so
bad right the the non-farm payroll
report that we had the most recent one
was horrible and now the government
fested up and came back and said you
know 88,000 jobs that we claimed were
created oh we made a mistake they're
they're not actually there and I think
they made a bigger mistake I think
there's actually a lot more jobs that
they're pretending were created that
aren't really there and in fact the only
reason that we have more jobs now than
when Biden was uh elected is because so
many people have two or three jobs
that's where all the jobs are coming
from it's Moonlighting and the people
that now have two or three jobs they
don't want all these jobs they they
they'd like to be able to support their
family on one job but unfortunately the
gone up so much the grocery bill the
utility bill the insurance everything is
now so expensive because of all this
inflation that people have to work
multiple jobs and now Joe Biden wants to
claim credit for creating those jobs but
the public blames him for the fact that
people are forced to to work those jobs
uh but I think it's the weakness in the
economy that is prompting the FED to cut
rates which they're going to do here in
September they've now prepar the markets
for these cuts and they're not going to
just do one and done this is going to be
the beginning of as many rate Cuts as
they can get away with and I think
ultimately they're going to return to QE
they've already uh reduced the size of
their quanitative tightening program and
I think that was the first step to
reversing it and going back to QE which
is inflation creation QE is just you
know another word for inflation just
that you know it's it's it sounds better
it's like it's a euphan but that's
really what it is but the FED has to
pretend that it's it's finished the job
on inflation it can't you know be honest
and say look we still have high
inflation and it's going to go up but
you know we don't care so they have to
pretend that the 3% inflation that we
have now is going to go down to 2% but
you know we've been at 3% now for over a
year right we went down from nine to
about three
but there's no indication that we're
going from 3 to two in fact if you look
at the the market indicators on Friday
when pal you know delivered his
statements his Humphrey Hawk his uh
Jackson H
speech on that day gold was at a new
record high the gold price was above
2500 I mean as we're speaking here I
think it's around
2520 and the US dollar Index on Friday
sank to a thir 1mth low so when you see
a weak dollar and when you see surging
gold prices that's an indication that
monetary policy is too easy and that
inflation is going up not down in fact
the only reason that inflation came from
9% year-over-year to 3% was because we
got a 24% rise in the value of the
dollar that happened and after that big
rise in the value of the dollar then
prices started to come down because the
dollar was so much more valuable
relative to other currencies that
brought down commodity prices and that
brought down the CPI but now the dollar
has already fallen 10% from its peak and
it looks like it's going to fall a lot
more this weak dollar is going to be a
huge uh Tailwind for inflation and
record high gold prices are telling you
that that's exactly what's going to
happen yeah this is the part that I want
people to understand uh is that if you
you are trying to track inflation
yourself if you're trying to understand
how prices are going up there is a lot
of manipulation that's happening behind
the scenes to control the Public's
perception of the CPI number including
uh that a rise or lower in the value of
the dollar is going to have an impact on
CPI um how they calculate CPI excuse me
which has changed over time that's also
going to impact things uh and what I
want people to understand and please
correct me if you think that I'm
delusional about this is that the
government is doing um slight of hand
they're manipulating the numbers they're
doing slight of hand so that they can um
basically I'll be aggressive here and
use the word steal money from the people
not have to get people to vote so that
they can keep doing just absolutely
outrageous amounts of spending because
they can get your dollars from you
without having to ask for them by simply
driving uh pricing power down or
purchasing power excuse me
um through inflation by printing the
money now yeah well you know the way
politicians get elected is they promised
the voters something for nothing that's
that's what people vote for it's like
what are you going to give me if I vote
for you what's in it for me what do I
get right it's not like people are
saying you know leave me alone I Just
Want to Be Free People want free stuff
it's if if if you're in office what am i
g to what are you going to give me that
I don't now have right because that's
what people are voting for they're
voting for stuff free stuff and so
that's you know inherently the problem
with democracy and that's a whole
different podcast I mean that's you know
we we should be a republic and and not
you a democracy this is the inherit flaw
in that type of system and we're just
demonstrating it all over again not like
we we need to there's history is
littered with examples of failed
democracies for the same reason that
that we're failing now but the
politicians want to get elected and so
they want to give voters something for
nothing well how do they do that well
they create inflation right they they
they they give voters stuff that they
don't make them pay for through taxes
see if the government said okay we're
going to give you uh Health Care
education and and here's the bill right
we're going to raise your taxes so that
you can get this benefit the people
would like well I forget I don't want
that you know I don't want my taxes to
go up but when they say look we're going
to give you this stuff and your taxes
aren't going to go up right you're
getting it for free then that sounds
great or we'll just tax the rich to pay
for it well the problem is they can't
get enough money from the rich to pay
for all these promises so where do they
get the money well they just create it
so that's inflation and so instead of
taking your money they just take your
purchasing power and so now everything
you want to buy is more expensive and
the difference between what prices would
have been without all those government
programs and how much higher they are as
a result of those programs that's your
tax right and but the the people don't
know that they're paying a tax they just
think they're paying prices and and they
blame the business and the government
it's it's great for the government
because now the government can say you
see capitalism is bad see these greedy
businessmen are gouging You by jacking
up your prices when when they're not
they're simply passing on the higher
costs that that they themselves have to
pay to stay in business and those costs
are going up because of the inflation
that the government is creating but you
know the government obviously too since
they create
inflation they they want to lie about
how bad it is they don't want to
acknowledge it so the way it's measured
doesn't come close to capturing the true
increase in the cost of living they've
changed the
methodology for the CPI over the years
to make the number smaller or little
they did the same thing with
unemployment unemployment is only low
because we changed how we measure it
there are lots of people today who are
unemployed who we don't count but if you
go back in the past those people that we
don't count today used to be
counted a a and so the main reason that
unemployment is low now is because so
many people that we used to count as
unemployed in the past we don't count
them anymore in fact we have a lot of
those people now that you know if we if
we still counted unemployment the way we
counted it before
1994 we'd have unemployment above 10%
right now so there's no way anybody
would be able to claim we've got low
unemployment if it was 10% so you you
you take three qus of the unemployed and
you don't count them anymore and oh it's
only 4% and now Biden gets to brag about
how low the unemployment is meanwhile
we've got a lot of people who are
unemployed who are not in the statistics
and the same thing with inflation
inflation is a lot higher than the CPI
uh reveals and so even even if we can
get inflation down to 2% it wouldn't be
2% it'd be four or five% and right now
they're saying it's 3% because it's
probably 6% so it's not even close to
the 2% Target that the FED claims it
has yeah which is Uber devastating to
people's wealth creation uh in ways that
they don't fully understand and this is
why the slide of Hand Works is because
people don't understand um how it's
actually playing out let me ask you why
can't we just raise rates and solve the
problem of
inflation well first of all in order to
really solve the inflation problem it's
going to take a much bigger increase in
rates than what the FED has
delivered and but the problem is we have
so much
debt that that's
impossible go back to Al um to Paul
vulker in the 1980 I mean we have a
bigger inflation problem now than we had
in the 70s and to bring that inflation
to an end required 20% interest rates
whoa
now what would happen if interest rates
went to 20% now I mean we got up to 5%
right imagine if they got up to 20% well
we've got a $35 trillion national debt
that's financed with treasury bills even
if we had to finance that at 10% that's
$ three5 trillion dollar a year in
interest on the debt the US government
only collects about $4 trillion doll a
year in taxes in total so we have so
much debt imagine what would happen to
all these corporate bonds if their debt
uh you know matured and they had to
refinance it at 20% or you know anywhere
close to that or home mortgages they got
up you know 10% or 12% or 14 something
like that I mean we now have so much
debt that if you tried to raise interest
rates high enough to get rid of
inflation everything would collapse
which is why they're not going to do it
we are stuck with inflation because the
alternative is a political non-starter
because if the FED actually got rid of
inflation you would have a a financial
crisis that would make a n 2008 look
like a Sunday school picnic and you
would yeah really really fast I just
want to say something and then you can
pick that back up because we use words
like inflation and I think the that
people get lost the what you're saying
is we our debt is so high the only
option the government has is to take
your money via inflation but but once
people understand that yes you still if
you have $100 in your bank account it's
still $100 I understand that but it buys
$90 worth of goods then $80 worth of
goods 70 so on and so forth and so when
you say that the only option the
government has I want to make sure
people hear the only option the
government has is to take your money uh
because once you're like whoa whoa whoa
wait a second that's not what I want
then people start thinking in the right
way all right cool now that the audience
has that in their that point but the
point is that they they can't raise
interest rates high enough to fight
inflation without creating a financial
crisis and so that's why they didn't do
it that's why they stopped at you know
five and a quarter because the only way
that interest rates slow down inflation
is by slowing down debt they have to get
people to borrow less and save more but
even though the FED raised interest
rates nobody borrowed less you know the
the deficit spending at the federal
level went up household debt went up
credit card debt hit all-time record
highs so the FED never actually got to
restrictive monetary policy they never
got to a situation where interest rates
were so high that governments and
individuals stopped borrowing and
started saving but also if interest
rates got to that level um nobody could
afford it we'd have a complete economic
implosion and the government would have
to default on its promises including its
treasury bonds but it would have to tell
people on Social Security that they're
not going to get the money that they
were promised and and so none of this is
politically viable so what the
politicians are choosing is just to have
endless inflation and and that takes
them off the hook because they don't
have to cut Social Security they just
give you the Social Security benefits
and you just can't buy very much because
everything costs money right they don't
default on the bonds they pay everybody
with money they print so instead of H
honestly um telling people we don't have
the money to pay you and so we're going
to have to pay you less than we promised
they pay everybody off but the net
effect is you get less because the money
buys less so you lose through
inflation instead of through a an honest
default but that is always the path that
the politicians want to go down because
they never have to accept responsibility
for creating inflation they're always
going to blame it on somebody else and
that's why I know that price controls
are coming I mean I talked about this
long before Kamala Harris proposed it
that we were going to get price controls
because ultimately that's all the
government's got is to blame the
businesses and to pass laws to stop
people from Raising prices but that
never stops the inflation it just causes
the inflation to go underground into the
black market
because legally you can't buy anything
because the prices are too low and so
there's a shortage of everything that
you need and in order to buy the things
that you need you have to go and buy it
from a criminal because they're the only
ones who will sell it to you but now you
got to pay through the nose because you
know the guy who's selling you illegal
food risks going to
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plus yeah uh this all gets crazy really
fast let me ask you a super pointed
question do people want to be lied
to well you know maybe it's like like
the Matrix I mean people can't handle
the truth or that's that was uh uh the
Jack
nich A Few Good Men they can't handle it
but look nobody wants to tell the truth
to the voters because you know again you
know shoot the messenger it the truth is
not pretty the truth is the government
has over promised the government has
made too many promises that the
taxpayers can't keep and and so we need
to come clean and be honest and we have
to tell our creditors we borrowed too
much money we can't pay you back we got
to tell people on government pensions on
Social Security on Medicare we don't
have the money we can't give you what we
promis but no politician wants to fess
up because the minute you do that you
you know you're not getting the vote
and so everybody wants to pretend that
nothing's going to get cut and so
everything gets cut through inflation uh
but you know they have to try to say
where they're going to fix it but you
know even Donald Trump Donald Trump
doesn't want to cut Social Security in
fact he wants to increase social
security benefits because he wants to
eliminate the tax on social security
which is like effectively raising Social
Security benefits so you there there he
hasn't identified anything that he's
going to cut or eliminate talks about
waste and ab abuse but but everybody
talks about that uh but nobody wants to
cut anything Donald Trump talks about
increasing the defense budget well
where's that money going to come from
right so both candidates want more
government and so they're going to end
up with more inflation regardless of
what they're promising and of course you
know Donald Trump is partially
responsible for the inflation under
Biden because a lot of the money that is
being used to bid up prices now was
printed when Trump was President because
Trump ran enormous deficits Biden is
just running even bigger deficits than
Trump trump set the record for the most
amount of deficit spending by a
president in a single term and Biden is
going to break that record when it by
the time his term is over and before
that Barack Obama he set the record for
the most debt under any president but
that's because he had eight years but
now presidents are doing in four years
what it took Obama eight years to do but
this thing is just spiraling that's why
we've got all this inflation it's not a
coincidence it's cause and effect and
when the bot Administration tries to say
well you can't blame us for inflation
because they've got inflation in Europe
well because they made the same mistakes
in Europe they they did the same thing
they printed a bunch of Euros they had
their own QE program they called it
their asset purchase program they kept
interest rates at zero in fact they even
had interest rates negative so all these
central banks uh were operating from the
same flawed Playbook they all created
massive inflation in the aftermath of
the 2008 financial crisis and then up
the Annie with covid and now the whole
world is is is reaping the Whirlwind as
all those inflation chickens come home
to roost does inflation matter if every
government in the world is doing it of
of course it matters I mean it on a
relative basis that's what's keeping you
know the dollar from collapsing against
the Euro or against the Yen or against
the pound because all central banks are
inflating but that doesn't mean we're
off the hook that means we're all
suffering together right everybody is
experiencing Rising prices even if the
exchange rates don't fluctuate very much
because they're all sinking at the same
rate but it means everybody is getting
poor you need more dollars you need more
Euros you need need more pounds to buy
you know a basket of
goods all right so R Paul when we did
the debate between you and him uh said
that inflation was preferable to default
because it happens more slowly and that
was what I had in the back of my mind
when I said do people want to be lied to
it seems like um there might be some
truth to Yes dear government please lie
to me take my money slowly don't tell me
you're doing it so that this plays out
over a long enough time frame that sort
of everybody gets used to all the money
that they've lost um do you agree that
that's a better strategy or do you think
that in reality default is a better
strategy well the the best strategy is
is is not to get into that predicament
in the first place and and that's you
know one of the reasons to be on a gold
standard so governments can't run up
that kind of debt but
if the idea is well we'll just inflate
the debt away
slowly the the problem is that you know
it speeds up it's like you know well
we'll just get a little bit pregnant you
know it's it it doesn't work that way
it's you know it starts off slow until
it's fast right once you start going
down that road it's ultimately gonna
going to be a disaster but I always
think at any point being honest
and having a legitimate restructuring of
debt is better than constantly creating
inflation to try to repudiate it you
know you know in secret right just to
try let let's you know because every
time the government creates inflation
they wipe out a good chunk of the debt
we have 35 trillion in debt if they
create 10% inflation that eliminates
three and a half trillion of the debt
but the problem is by the time they do
that the actual size of the national
debt has gone up by more than the three
and a half trillion because of how much
debt we're adding to it every year and
eventually the higher inflation causes
an increase in interest rates and that
is the problem because all that debt has
to be refinanced constantly because much
most of the debt is short term it's not
like the government borrowed money for
30 years or 50 years
it they borrowed money for 30 days 90
days a year and so they have to
constantly refinance it and as rates go
up because inflation pushes rates up
even though you're wiping out some of
your debt through inflation you're
accumulating so much more because the
government is borrowing the money to pay
the interest on the debt but I just
think that a an honest default is
preferable and at least with a default
who loses money in a default well if the
government defaults on the bonds the
losers are the people who own the
bonds and a lot of US government bonds
are owned by you know very wealthy
individuals who are clipping coupons and
have money invested in in treasuries the
average America doesn't own any
treasuries um but wealthier people do uh
and so they're going to lose they're not
going to get back um 100 cents on the
dollar but if we just decide to create
inflation so that the people who own
treasury bonds don't lose anything well
then everybody suffers yes the people
who own treasury bonds they still lose
something because inflation is you know
reducing the value of of the principal
that they get eventually and it's
reducing the value of their coupon but
now you hit everybody now you hit the
poor you hit the middle class you hit
people don't that don't own any
treasuries that never loaned any money
to the government um and what's about
that I mean the people who should take
the losses are the people who made the
loans to a government that was too broke
to pay them back right that that's the
people and you know as far as um
government commitments yes if the
government has to cut Social Security
benefits okay yes people that were going
to get those benefits are going to lose
those benefits or have less benefits but
you know uh that's necessarily better
because there a lot of wealthy people
that get Social Security I mean I'm I I
I qualify for Social Security I mean I'm
61 I'm not taking it yet but I think I'd
be able to start getting it a couple of
years but I you know it's better for me
to lose a lot of my Social Security then
some young kid uh who's struggling to
get by has to pay higher inflation so I
could I could get my Social Security
benefits so the government should have a
way of reducing Social Security benefits
so that the people who you know who are
who are going to get the benefits uh
they get the loss as opposed to just
spreading the loss on
everybody well there is a way to to
reduce entitlements without needing to
vote for it and that's CPI manipulation
which is almost certainly happening um
so okay you're you're making a what I'll
call values based argument there may be
a moral argument in there as well but
for me to know if this is just values
just the way you see the world or if you
have a uh objective moral standard what
what is your Northstar when you lay out
your
argument well I think I think that is
the moral way to go you know if if but
anchored by what human flourishing uh
least number of people get wrecked like
what what is the metric by which you say
that's a moral argument to do de default
well it's it's the honest way to do it
right I you know the government can't uh
meet be honest at all times no matter
what that means we're going to be honest
well it's honest and you know the the
the the the people that took the risk uh
bear the consequences of that risk you
know people who loan money are the ones
that don't get fully repaid right the
people that lent out the money but
they're going to lose I mean if there's
inflation they still lose right it's not
like they're they're getting out
scott-free
but inflation just spreads the losses
among a bro broader population but in
many cases it hits hardest the people
that could least afford it so why do we
want to create inflation if it's going
to create a real hardship for a lot of
poor middle class people just so we can
avoid wealthy people uh taking a bigger
hit you know I mean you know I'm just
trying to map totally understand I'm
trying to map how you think through um
this argument so uh because uh when I
look at it the way I would think through
this is for me the moral way to look at
life is what leads to the largest amount
of human flourishing for the largest
amount of people uh I can Define human
flourishing but for now let's just all
assume that it it's roughly
well-being uh and if you look at this
from a well-being perspective I have a
hypothesis that if you were to default
that you would have an uprising that
there would be literal Bloodshed that
there would be a real problem it would
be way more violent way more abrupt
whereas doing it the way that they're
doing it now which which I hate and I
think the government has a moral
obligation not to do this but when you
compare the two things I have a feeling
that slow and steady theft from
everybody actually ends up with a um
people don't Revolt as much they like
being lied to it just works and so it's
why I think the government does it this
way and I still think it's
horrendous well I until it gets out of
hand because it only works for so long
well then let me ask a question really
fast so that you can be very pointed
with this uh do you believe that the um
is there a conceivable way for
productivity to rise so much that we can
eventually pay for the debt before
inflation eats Us Alive or is this a
runaway feedback loop and there is no
conceivable way for anything to happen
other than collapse at the end of this
well it's more likely the the the ladder
I mean it's more likely that it's going
to run out of control just because of
the you know the nature of what we're
dealing with just the the the size of
the debt the exponential growth and and
what happens to to interest on on the
debt see the problem with this you know
well let's just have a little inflation
every year is that it allows the
government to continue to compound the
problem because it's able to you know
hide the the consequences and so it
keeps getting bigger and bigger and so
ultimately you have to default to avoid
hyperinflation and if you don't default
then you get hyperinflation you destroy
the currency and if you think uh people
are going to revolt from default it's
going to be worse when the money is
completely worthless right so that's an
even more dangerous way to go and that's
an evitably where you end up if you
continuously inflate inflate instead of
dealing with the undering problem
because if you actually default that
basically you know brings it to an end
okay we can't do this anymore it's like
you're in this giant hole and if you can
keep on inflating you can keep on
digging the hole deeper if you have to
default that's the end of the hole
digging right okay the game is over
right everybody it everybody knows now
what's been going on you've had to be
honest you've had to confess the
problems and now we can we can move on
but that never happens uh when you paper
it all over by creating inflation now is
it possible that there's some kind of
get out of jail free card that's waiting
in the wings that is going to grow
productivity so dramatically in such a
short period of time that we can
actually grow our way out of the debt
and I would assign
a nonzero probability to that so it's
possible and the only thing that is on
the horizon that potentially could do it
would maybe be artificial intelligence
if it could
be uh you know implemented if it if it
has the the
ability and we can effectively do it
somehow fast enough that we can now
automate
so much of the production process and
the AI could come up with because it's
more intelligent than we are could come
up with even better more efficient ways
of doing things and we could maybe
create enough you know robots that were
intelligent that could do a lot of work
um that maybe we could produce so much
stuff that the economy can grow so fast
that we can actually reduce the debt
relative to the economy and we can
service it and repay it I mean I suppose
that that's
possible but I I don't think that's the
most likely scenario I mean I I do think
that that that there's a lot of
potential there uh in in in enhanced
productivity coming from artificial
intelligence and and Robotics and more
automation I think this is all good
stuff that is going to
increase uh the standard of living of
humanity over time but I don't know that
it can lead to the results that we would
need fast enough to deal with this C you
know to to to to mean that we we don't
have a crisis that we don't have to you
know deal with it because the numbers
are just just too staggeringly big at
this
point um I think to to to grow your way
out of it even with Incredible
growth yeah so the AI Revolution I think
is a very um interesting thing that
people are holding on to it's probably
part of why some very smart people are
not sounding the alarm Bell as hard as I
think they should um but walk me
through why what will happen if the
government starts raising rates again
will inflation come down because I've
heard you put forth that even if you
raise rates inflation will go up which
is you're the only person I've heard say
that
well if you just raise rates the way
they did yes because those higher rates
uh are part of the cost structure of
businesses I'm a business and I have all
sorts of costs I have raw materials I
have rent I have labor costs and I have
interest maybe I borrowed some money to
you know build out the business to buy
some Capital
Equipment and so I have debt
and the interest on that debt is one of
my costs and if my interest goes up well
you know my costs have gone up so that's
something I'm going to pass on to the
consumer with higher prices and that's
especially True For Real Estate if I own
some rental property most people who own
rental property have a mortgage on the
rental
property and as their mortgage rate go
up because if you own a bunch of rental
property you probably didn't have a
30-year fixed rate mortgage you probably
had you know a mortgage with a five or
seven-year term and they reset and you
have to re you know get at higher rate
so if I'm a landlord and my interest
expense has gone up well how do I
recover that I I raise my rent and I get
it from my tenant so higher interest
rates are just another cost just like
raw materials and and and and L and
wages that get built into pricing
structure so higher rates you know bleed
you know end up being higher inflation
and that's going to happen I mean rates
are higher now than they were when they
were zero and so that's going to affect
prices but also the US government has
this massive amount of debt that has to
be financed at higher interest rates and
the higher interest rates are the bigger
the de deficits are because all the
money that goes to pay the interest is
borrowed and so as interest rates go up
the deficits go up and that means
there's more uh debt and now you're
going to have to print more money to
monetize it and so there's going to be
more inflation and also those Rising
deficits are going to put downward
pressure on the dollar which we're now
finally seeing for a while higher rates
were supporting the dollar uh but now
that's not the case anymore and the
dollar is starting to fall and it's
going to fall a lot more because of the
enormity of the deficits and as the the
low yielding debt matures Even If the
Fed is cutting a bit you're still
getting debt that was borrowed at 25
basis points maturing and now has to be
rolled over at three or 400 basis points
so the debt is exploding because of
higher interest rates which is you know
putting more downward pressure on the
dollar which puts upward pressure on on
consumer prices uh but if they raised
interest rates high enough to really
cause a decline in aggregate demand
because people stopped borrowing money
and if we had an increase in our savings
rate if people actually were like hey
interest is so high I'm GNA earn some
interest I'm gonna put my money in the
bank I'm not going to go spend it I'm
gonna earn some of this High interest
then that would help fight inflation but
we never even got close to that point
because the savings rate is near an
all-time record low and debt is at an
all-time record high so what does that
tell you that interest rates are too low
and so when pal comes and said we've had
this Tight money for a long time money
never got tight it was less loose but it
was never tight that's why the debt kept
growing and that's why the inflation
problem is going to get a whole lot
worse all right is there enough money
enough runway for inflation that they
can just keep grinding inflation
grinding inflation grinding inflation
until they have paid off the
debt me you you don't pay it off I mean
you wipe it out right you make it so
eliminate the debt so it's not a burden
anymore right it doesn't go
away um but I don't see how they do
that um without
impoverishing uh the whole
country uh in in the process because
they they'd have to create so much
inflation in order to do that because
the debt is now so big and it's rising
so rapidly right it's Rising by maybe $3
trillion dollar a year so even if you
had 10%
inflation the debt would just stay the
same in theory but it wouldn't stay the
same because the the budget deficits are
going to go up but you just have to
create so much inflation that I mean the
public is not going to be able to
survive uh the amount of inflation that
that they would have to create to wipe
that debt out in in any kind of
meaningful
way um is there any reason why I
understand that this would draw a lot of
ey people would get weird but I've seen
people get over amazingly bizarre stuff
is there a fundamental mechanism that
would stop the fed from saying we're
going to give the US government uh loans
at one rate and we're going to give
everybody else loans at a different
rate well if they're buying treasuries
see the the the only way the FED can
monetize debt it has to go into the
market and buy treasuries so I don't see
how it could it could buy them from the
government because it doesn't actually
buy them directly from the government
because it's not allowed to do that in
its Charter right they they can't they
because they didn't want the Federal
Reserve to be able to directly monetize
debt so they they they were afraid of
that in fact when the Federal Reserve
Act was initially passed it wasn't even
legal for the Federal Reserve to hold us
treasuries even if they bought them in
the secondary Market they couldn't do it
they were prohibited from holding them
because they didn't want the FED to be
able to help the government go into debt
they changed that in the you know soon
after the Federal Reserve Act was
created to help the government Finance
the first world war they gave the
Federal Reserve the ability to hold
treasuries and so then the Federal
Reserve goes into the market and it it
works through primary dealers right it
goes through Goldman Sachs or JP Morgan
and Morgan Stanley to buy its treasuries
it doesn't go treasury direct right it
has to go through these middlemen so I
don't see how it's possible because they
they they can't
differentiate uh whose bond is whose
right they they're just buying in the
market um okay so this is probably just
my naive and I don't understand
something but it seems pretty trivial
for the government to go hey everybody
uh guess what we're going to default
just kid
uh the fed's going to buy it from you
but the fed's going to buy it from you
at a discounted rate so if you're
holding bonds treasury right now instead
of giving you the five and a quarter
percent that we promis we're going to
give you one and a quarter but we are
going to buy it uh and if I'm listening
to this podcast and I'm a government
agent I'm like that is a great idea uh
that seems inevitable because that
is missing the point here even though
the Federal Reserve the US government
pays interest to the Federal Reserve it
gets the money back right because the
the Federal Reserve has to pay its
profits back to the US government in the
tax 100% the FED is allowed to earn a
certain return on its capital and then
everything it earns in excess of that is
given to the US government now the
problem is now yes they're earning
interest but they're all the FED is also
losing a fortune on its Bond portfolio
right now so the FED is not making money
anymore to pay the US Treasury like like
they used to uh but they they do get the
interest back just like when the Federal
Reserve pays interest to the so-called
Social Security trust funds it it just
takes the interest right back it just
Yanks it right out of the trust funds
and spends it so it's it's it's a much
bigger burden in the short run when the
public owns the treasuries because now
that's a net drain on the current
expenses of of the government because
they actually have to pay the interest
to a third party right that they don't
get it back but the real problem though
is going to be the dollar status as a
reserve currency because as the rest of
the world wakes up to the reality of
endless inflation and endless money
Printing and knowing that the government
uh is not going to honestly deal with
the debt we're never going to cut back
government spending we're just going to
keep creating inflation then there is no
uh justification for the dollar to be
the reserve currency and it won't it
will lose that status and that is going
to accelerate uh the the spiraling of
inflation out of control because one of
the reasons that we've been able to
print so much money create
inflation and haven't had an even bigger
impact on our prices is because a lot of
that money has been exported you know we
have a trillion dollar a year trade
deficit so these are Goods that we
didn't have have to produce that come
into the country every year and we send
our money out we we we we take dollars
that we print and we send them to China
we send them to Japan we send them all
around the world and they send us back
real stuff so that keeps the supply of
goods up and the price of goods down
because we get the goods and the rest of
the world gets the inflation they get
our money but now what do they do with
that money they loan it back to us they
buy bonds they buy treasury bonds they
Buy corporate bonds or they buy real
estate they buy stocks right they buy
these Financial assets um uh but that's
helped keep asset prices High that's
helped keep interest rates low but when
they don't want these dollars anymore
because they're not the reserve currency
then all those dollars are going to come
back and they're going to be bidding up
consumer good prices people are going to
try to buy what they can they can take
home but more importantly too all the
good stop coming in so if we can no
longer import a trillion dollars worth
of stuff every year what's going to
happen to prices prices are going to
Skyrocket because we're not going to
have stuff and so there's G to be a lot
less stuff yet everybody's going to be
trying to buy stuff that's not there so
the prices of the stuff is going to go
way
up yeah uh maybe temporarily because
then we'd bring manufacturing back but I
don't want to derail on that well take a
that's going to take Tom that's going to
take a long long time you just can't
bring manufacturing back snapping a
finger it's going to take years maybe
decades uh because you have to rebuild
the factories rebuild the supply chains
uh train the workers where's the money
going to come from to do this and if we
already have a huge government with lots
of Regulation and lots of taxes it's
going to be very difficult I mean that's
where the AI could really come in and be
helpful if we had to you know start over
again and rebuild our industrial base uh
but again this is going to be a very
difficult process that is going to take
time and in the meantime a lot of people
are going to lose a lot of money and
that's going to put a lot of pressure on
a lot of pres uh politicians to do
things that are going to be very harmful
and very destructive to that
recovery yeah I just think that the um
the way that this will probably play out
is something like this uh we keep
inflating we're just going to gobble up
as much money as we can by lying to you
you're going to feel that something is
wrong but you won't know exactly what it
is despite all these podcast where I'm
trying to walk people through exactly
what is happening uh but people aren't
going to on mass they are not going to
understand what's happening they are
going to get hypert tribal because they
feel like something is wrong uh
apparently the DNC is going to play the
role of blaming business people uh and
then there the economy is going to turn
to trash for reasons we are going to get
into great detail on in a minute
uh and people are going to revolt there
is going to be um if if like this all
goes well there will simply be massive
tribal divisions between the left and
the right and we'll seesaw the
government back and forth until people
do uh slowly get away from the dollar um
but I think this will all be a feeling
and it won't be a thing that The Logical
brain will engage in to your point about
an honest default that's never going to
happen that's logic everyone's going to
steer by emotion uh and it's going to
Manifest this political violence that
that's how I think this will actually
play out because people can feel
something is wrong but it is way too
hard to wrap their head around things
like how the government manipulates CPI
to get more money from you uh yeah okay
I want to go back to this go ahead I
said the public already knows that that
that things are wrong right that that's
they just know something feels wrong but
they don't know what it is yeah the
politicians and a lot of the people in
the financial media who still don't get
it you know they they they look at these
you know phony statistics at and accept
them on face value and and then they
look at the public and the public is so
pessimistic you know Biden's approval
rating is so low uh people are
pessimistic and they don't understand
why they say you know don't they
understand how great everything is why
you know why why aren't they giving
credit to the bid Administration for
this great economy and that's because
the economy is not great they're blaming
B for the lousy economy because the
economy actually is lousy the statistics
don't tell the truth uh if you just
accept them on face value which is why
you shouldn't do that you always have to
look beneath the surface to find out
what's actually happening and if you
take the time to do that and you don't
just accept what amounts to propaganda
but you actually look at it then you
understand why the public is so upset
right because we have high unemployment
we have high inflation and we don't even
have any e economic growth we we
actually have a Contracting economy if
you actually counted uh GDP and we're
going to get more GDP data later this
week but if you honestly reported uh the
economy it would be contracting it is
not growing that is the
problem yeah nonetheless people think
emotionally they do not think logically
and because of that it becomes a
question of who's going to better steer
their emotions so uh people are upset
with Biden but they have pulled a a flip
on the American people that is unreal to
behold moving everybody over to kamla
Harris and everybody's like yeah word
like I can feel the enthusiasm now
coming out of that camp it people are
excited they're revitalized they believe
it and I'm looking at the the words that
she's saying and the economic policies
that she is um proposing that they are
terrifying and people are here for it
they are super excited by it and so my
thing is okay hold on as somebody who
actually wants to see people go
somewhere that is that leads to human
flourishing I'm just like wait there is
a lot of excitement for policies that
will not lead to in my estimation human
flourishing and it was very easy for the
government to the DNC very specifically
to um pull a fast one like to just be uh
hey here's a new shiny object so what do
you make of that to me it is that that
is the most human story
ever I I I I think all this has been
manufactured by the media I can't
believe that Harris is really as popular
as everybody claims I mean she was the
most unpopular vice president in history
uh before she got the
nomination and so I don't see how she
can go from being you know so unpopular
to being popular that the reason that
Biden was unpopular was because the
economy was lousy well I mean she's a
big part of that the economy is just as
lousy as it was and so how they could
just think aha this is great we got
Harris and in fact Harris is
simultaneously claiming that Biden omics
is a huge success but now we need to
elect her because she's going to solve
all these problems well what problems if
Biden omics was such a success there
should be nothing to solve she's talking
about all the things that she's going to
do if she's elected well why aren't they
doing those things right now why didn't
Biden do those things you know why why
AR you know what I mean mean I don't
know how you could you could fool the
public I mean the voters are dumb but
are they really that dumb uh you know
that she's going to somehow be an agent
of change that we have great policies
but vote for me because I'm going to
save you from all the problems that you
you now have uh without accep
responsibility for having created those
problems in the first place so you know
I I I I don't see how she's just popular
I mean I think these polls you know I
don't know I mean I don't know how
they're running these polls who they're
polling who they're not polling I mean I
know the media wants Camila Harris to
win and and so I think one of the ways
they think that they can help her win is
by convincing everybody that she's so
popular so that they just jump on the
bandwagon and so maybe they found a way
to uh create these polls so that they're
skewed more towards a Harris you know I
don't know I just it just seems hard
that that Biden would be so far behind
and then all they do is is flip at to
Harris and now all of a sudden she's got
a lead or a big lead in Trump's Trump's
behind especially given the
assassination attempt which I think
really elevated Trump to almost you know
like a living folk hero and I think a
lot of people that maybe didn't didn't
like Trump have got to you know at least
you know be impressed with the way he
handled that situation and so I think
that would have turned people and now
that you got a Robert Kennedy Jr you
know throwing his support behind him I
mean that's got to deliver some voters
to Trump that you know he didn't even
had before and now he's got those voters
so you know I would think that that
Trump would have a big lead over Harris
uh especially given you know how bad the
economy is and how much they want change
I don't think that they're really going
to be dumb enough to believe that voting
for four more years of what they've got
now is change and in fact if anything
it's going to be worse because Harris is
likely to be even more uh to the left of
Biden and just look at you know the guys
she picked for vice president president
I mean about the most liberal guy that
she could have found from the most
liberal state it wasn't even like the
Democrats needed uh Minnesota I mean
they had that one in the bag uh but
Minnesota you know that's you know some
you know mg govern was from
Minnesota uh Mondale I mean a lot of
real left-wing uh uh politicians have
have hailed from from
Minnesota uh so I think the the Harris
Walsh uh you know do
is even worse than than Biden Harris so
you know things are just going to get
worse uh if the public votes for you
know more of that now you know think the
the problems are going to blow up under
Trump too but Trump Trump's got a better
chance of workable Solutions in the
aftermath because at least he may be
advised by people who believe in
capitalism and believe in the free
market and want to try to restore it
Harris is going to be surrounded by
socialists who are going to use the
Crist
as an excuse to blame it on capitalism
to tell the people that capitalism
doesn't work and we need to reinvent the
C the country under a socialist economic
model uh because this proves that
capitalism doesn't work right so I don't
want people running the country who who
who don't even believe in capitalism
right which and obviously Harris doesn't
you know that's why she wants price
controls but she was raised by a
communist I mean you know the Apple
doesn't fall far from the tree and plus
she was taught communism since she was a
little kid you know so she never she
never you know grew out of
it yeah I think that the important thing
for anybody trying to predict the future
here is to understand that humans are an
animal designed to use emotions to steer
in an incredibly complicated world and I
don't think it's a matter of the public
being dumb I think it's a matter of we
are emotional creatures if you
selectively damage the region of the
brain brain that generates emotions
people cannot make decisions it's not
like they have a hard time making
decisions they can't do it so emotions
are fundamental to our ability to make a
decision now you have this incredibly
clean narrative with um kamla Harris
with uh she's not Joe Biden and so it's
new it's changed no one's going to think
about oh she's been there for a long
time if because it's not even her it's
the party on the DNC that really does
whatever that Blobby sense of party is
um and so they they they have the
narrative they need to trigger the
emotions and this is the reason that I
think they both Trump and Harris have
doubled down on their VP being like core
to their base is that's where we are
going meaning the tribal split is
becoming extreme because people can feel
something is wrong and this is you and I
and other uh very successful cap cap
have got to accept the system as it is
today is broken for the average person
young people feel completely alienated
they're not even engaging they're not
even seeking romantic Partners like it's
just a level of apathy that is utterly
terrifying and so you have this split in
these camps they're doubling down the
economy isn't working in the way that it
should because of the debt away over
spending money printing is the problem
it's not the free market the free market
in my estimation is not the issue but we
have a an economy that we call
capitalism that is leaving a lot of
people out in the cold and because of
the manipulations it is so complicated
that the average person who is steering
by emotions is not going to be able to
identify how the magic trick is even
being done so they can just tell
something is wrong [ __ ] you guys burn it
down uh whatever normal is got to go and
so I'm going to go with Harris and if
she saying that she's going to stop you
from gouging me which is clearly
happening because of what I see uh at
the pump what I see in the grocery
stores then great I'm here for that that
is what's going to happen and so if she
wins or loses or Trump wins or loses I
think it will be by a razor thin margin
because the country is effectively split
in half well I think if Harris wins it's
the the votes that are going to put her
over the top are uh the the immigrants
particular the illegals that are here
that are able to vote because remember
Donald Trump is promising to deport the
illegal immigrants and and and Harris
wants to you know not only give him
Asylum but you know you know give him
all kinds of freebies so if you're an
illegal alien and you're in this country
you're voting for Harris now of course
you're not even supposed to vote right
the whole thing is if you're not an
American citizen legally you can't vote
but they're voting anyway so I think
that Harris is going to win the
overwhelming number of the illegal votes
and and so if she wins that's going to
be the only reason I I just can't see an
honest election where just uh American
citizens are able to vote I can't see
how Harris wins that election um because
you know Trump is not actually promising
to cut any government programs he should
be right that that's what we need to do
but he's not promising to cut anything
right a and so he shouldn't be
alienating anybody you know if he was
running an honest campaign look we got
to cut Social Security he may risk
losing some votes of people who are
getting Social Security but he's not
he's not promising that at all he's
promising to raise Social Security he's
not saying we're going to we're going to
cut uh you know so uh a Medicare no he's
you know he's talking about you know no
tax on tips which is a tax cut for a lot
of people so Trump is not saying vote
for me I'm going to take away any of
your government benefits so he's
promising more government also it's just
that at least he's different everybody
now the economy is so bad people are
struggling everybody is going to vote to
throw the bums out who are the bums it's
Harris and it's Biden and so Biden's
taking himself out of the game but
Harris is still there they got to throw
her out she's got to be fired right so
the electorate is going to get rid of
Harris if it's a fair election if it's
an honest election um so the question is
if if she does win is you know it's
because you've had these these these
illegals voting where they somehow
rigged the system and you know they they
they found some votes uh you know and
she was able to win because I I I don't
I don't see how she would win given the
realities of how bad things are and a
lot of people could just remember what
things were like when Trump was
President it wasn't that long ago he was
President four years ago everybody you
know knows things are a lot worse today
than they were four years ago so if it's
a litmus test on are you better off
today than you were four years ago very
few people could say yes most people are
going to say no I was better off four
years ago and so I'm voting Trump right
and so that's what's going that's what
should happen you know in a in in a fair
honest election and not that you know
things are going to get better under
Trump things are going to get worse
regardless of who wins the election but
the voters don't know that they're not
smart enough to realize Trump says I'm
going to get rid of inflation on day one
the voters might believe him even though
he can't do it he's not going to do it
with the policies he's proposing but it
sounds more believable than than Harris
doing it how is Harris going to get rid
of it she was there when it when it
happened I mean Trump could say look
when I was President inflation was 1%
right te technically you know according
to the CPI right that's where it was and
so now it's much higher uh and so it's
easier to you know to to hang that on on
on Biden Harris uh so you know he should
win but again the problem is nobody
would win an election telling the truth
if Donald Trump says look I'm going to
solve the problems that we're going to
have massive cuts to government spending
and people who are getting checks from
the government you're going to get
smaller checks I got to cut Social
Security I got to cut government
pensions I got to cut
defense I don't I don't think you win on
that ticket on on that you things have
to get really really bad see Malay in
Argentina he was able to win on that
because things have been so bad for so
long the public finally decided that you
know what let's try that we've tried
everything else we've tried all these
Government Solutions and none of them
have worked so maybe let's try
capitalism right let's get rid of all
this government because it can't be
can't get any worse and let's try it
this way let's try cutting government
instead of expanding government and
let's try Freedom instead of social ISM
and you know and so they're trying it
and and and hopefully they stick with it
because it's going to work but Americans
we haven't had enough socialism yet to
be sick of it you know we still don't
get it we still think the government can
solve our problems and don't recognize
that all the problems we want the
government to solve the government
created okay why specifically um
actually before we get to that let me
ask I'm going to preempt the comment
section uh how on Earth are illegal
immigrants going to vote they well they
just show up at the polls of vote right
they don't they don't do we have
evidence of that or do we just have a
because obviously that voting I don't
know that how do we know that they are
and in some states too you know they
could get an ID they can get a driver's
license without proving they're a
citizen or whatever and then they go and
they have an ID and they vote but you
know people I mean that that's one of
the reasons that so many illegals are
coming into the country when when when
the the Democrats look at all these
illegals as new voters that are just
coming over right just you know coming
across the border they think Ah that's
another guy that could vote for me um
and and so that that's what's going on I
mean who knows how many illegals voted
in the in the the 2020
election okay I think that's going to be
a very divisive um theory that you're
putting out there help me I don't even
think it's controversial at this point I
mean I mean it's kind of like a fact
that there coming here and they're
voting that's why there was a bill
they're trying to stop the illegals from
voting but the Democrats don't want to
stop them from voting because they're
getting the votes Peter I think that
might not be controversial in your
audience but this is very controversial
as you go out to a broader audience like
there is a violent Kickback I don't know
if you saw um Elon Musk had a tweet and
hey for all of his divisiveness this one
seemed uh abnormally divisive where he
said hey the master plan is to get these
guys ultimately a path to citizenship so
they can vote and people still had uh
just a a flip out over that like that he
was being assine that's absolutely
outrageous and why would they ever
suggest that and uh so I again this may
break evenly along party lines but I
think that that is that's one of the
more controversial statements you have
thrown out in this interview thus far do
you have anything if people wna if
people want to look into this is there
somewhere that they can go that um shows
data not just sort of gut
sense well I mean I know that that that
there a lot of people vote and they're
not necessarily getting checked for IDs
there a lot of places that you don't
even need an ID to vote and there are
ways that you can get IDs and not be a
citizen but in order to vote in a
federal election like the states could
make any laws they want for their own
elections for their local uh you know
you know positions if they want to allow
you know just illegals to vote or just
you know anybody they can let whoever
they want vote in in their own state but
when it comes to a national election for
a president for congress uh you got to
be an American I mean I I can't even
vote for the president even though I am
an American citizen I live in Puerto
Rico and so none of the American
citizens who live in Puerto Rico are
allowed to vote now if if we if I move
back to the US then then I can vote but
I can't even vote and I'm I'm actually
an American but now we've got a lot of
people who aren't even Americans because
they happen to be uh in one of the 50
states they may be able to get to the
polls and vote and some of them they
don't even have to you know they vote
vote you know on a ballot right they
just they just vote you know on the mail
they they get a ballot in the mail and
they they send it in uh but I I I don't
think that there is enough going on to
uh prevent people who shouldn't be
voting from but hopefully in this
election maybe there'll be more of that
maybe maybe you know uh people are kind
of on to this and they want to make sure
uh that the votes that are cast are are
are legal votes but you know the big
problem too and you thought that was
controversial you the problem is
democracy itself which we're not even
supposed to be if you are familiar with
the US founding documents read the uh
the Declaration of Independence read the
Constitution read the Bill of Rights the
word democracy does not appear once in
either of those documents you know we're
not supposed to be a democracy the the
only thing that's in the constitution is
Republic it says in the Constitution
that every state in the Union shall be
guaranteed a republican form of
government in the Bill of Rights there
is no right to vote right you have
freedom of speech freedom of press
there's all kinds of freedoms there is
nothing in the Constitution that says
anybody has a right to vote because
nobody had a right to vote voting was
considered a privilege and the states
decided who could exercise that
privilege there were all sorts of
qualifications when our country was
first established there were all sorts
of things most most States you had to be
21 right Most states you had to be
male um uh and a lot of States you know
all pretty much you had to be mail uh
but then you had to you know have
property you had to pay a tax you had to
pass a literacy test there was all sorts
of things that limited who could vote
because the idea wasn't just everybody
voting the idea was we wanted good
government how are we going to get good
government well we have to limit the
people who are allowed to vote because
if we let everybody vote we're going to
have idiots in government because you
know the average person is you know
going to vote for some idiot because
they're not you know going to know and
so they tried to restrict voting but of
course we also had all sorts of laws to
protect the minorities from the majority
so even if uh bad people got elected the
the government the Constitution limited
what the federal government could do
anyway so even if the population elected
somebody that wanted to do something
chances were he was prohibited from
doing it by the Constitution because the
Constitution was written uh with very
limited powers for the federal
government the federal government's
powers are few and defined
yet now the government does just about
everything it wants because the judges
don't really enforce the Constitution uh
the way it was supposed to be enforced
they let the government get away with
all sorts of stuff and now all the
protections that the founding fathers
created to protect America from the
evils of democracy you know they called
it
mobocracy those protections those checks
and balances no longer really exist and
so now we've got everybody voting and so
we've got this horrible economy because
people are voting for free stuff I
forget who said this but they I think it
was the to the teville that said that an
election is an advanced auction on the
STA on the sale of stolen goods and
that's what people are doing they're
voting for uh to to receive the goods
that the people they vote for steal from
other people and give to them but you
know that is the inherent problem is
that we're we're we're not the the
Republic that we were meant to be we've
become more of a democracy we're not a
direct democracy where you know people
don't vote directly for every law we
still have
Representatives that vote for us but the
way those Representatives uh are getting
elected is just what you know one man
one vote every you know one man one
woman I mean the only people who can't
vote legally are are people who are
under 18 but there are a lot of
Democrats that want to lower that they
want to they want to you know the the
age should be higher I mean 21 when they
when when the states had 21 as the age
when a man was 21 in 1800 he had a wife
he had a few kids he' probably been in
the workforce for five or six years um
you know I mean you know he had a lot
more experience than an 18-year-old
today who's never had a job and lives
with his parents you know so I mean
people shouldn't be voting when they're
18 I mean it it it should be probably 30
at a minimum
wowza okay well let's drill down how uh
what does the what would you want to see
actual regulations put around as it
relates to voting I'm going to guess it
isn't men only I hope not well it
doesn't make back in
1790 women voting didn't make sense it
was an easy way to eliminate a bunch of
uninformed voters because women didn't
work women stayed at home uh they took
care of the house and so you know they
didn't necessarily you know know who to
vote for they might just vote for
whoever their husband was voting for
it's a very different world today so if
I were trying to create criteria for who
should vote and who shouldn't vote sex
would not make sense to use that as you
know only males or I you know it doesn't
sex is not something that should matter
because women are just as likely to be
out in the workforce and you know and
and and knowledgeable about you know
various issues as the men might because
it's the sex roles are very different
today than they were a couple hundred
years ago so that wouldn't be a factor
but age would still be a big factor I
think the the voting age should be a lot
higher certainly we should have literacy
tests I mean you should have to be able
to read and write I mean you have to you
know to be able to vote um you know I
like you know property the property
qualifications to say Hey you know you
have to have accumulated some property
have some skin in the game I mean people
think oh well you I it why why should
you know the poor people or people that
don't own property or you know why
shouldn't they be able to vote the whole
idea is just to have good government not
to have everybody voting look I would
rather have qualifications for voting
that excluded me right that I didn't
even meet the qualifications but I knew
that the people who met the
qualifications were a good group of
people who were going to exercise the
privilege to vote in such a way that we
were going to have good government that
good government would benefit me even if
I didn't get a chance to vote for it I'd
rather have that than have everybody
vote where my vote gets canceled out by
some idiot and then we end up with
really bad government so I'd rather have
good government that I don't vote for
than bad government that I do vote for
but the key is too if you have a
government that really can't do anything
right right then I don't even have to
worry because if the government is just
there to uh protect individual rights
private property my right to life
liberty just to protect me from people
who would infringe on my rights then
even you know what Ma what difference
does it make if I Can Vote or not you
know because the government can't really
do anything the reason that people want
to vote now is because they want the
government to give them something they
want the government to take money from
the people who didn't vote for them and
give it to to the people who did
but once you take that power away from
government if the government can't give
anything to the people who vote for them
well then there's nothing in it right
all we want is good honest government
and you don't get that with one man one
woman one vote I mean that there is no
historical precedence for for getting
that the the key is to restrict it and
if you look at how America was first
founded that that the the Senators
weren't elected by the people they were
appointed by the state legislatures that
that that that that changed around 1900
they amended the Constitution so that
the people could elect the Senators but
that wasn't how it was uh and even the
president everybody knows about the
electoral college but it wasn't supposed
to be a rubber stamp we were supposed to
vote for electors and then the electors
were supposed to decide who the
president vice president was going to be
right they weren't pledged there was an
actual real convention and they would
they they they would they were supposed
to be smarter than the people and then
they would they would pick they they you
know who who who would be there but we
had so many checks and balances that
they couldn't do things we had the
Supreme Court that would strike down if
they wanted to do something that was
unconstitutional the Supreme Court would
strike it down they rarely strike down
anything anymore because there's so many
holes in the Constitution now based on
the way they uh you know they redefine
the necessary improper clause or the
Commerce Clause or all these things
which basically uh negated the
Constitution and made the whole thing
meaningless because of uh you know how
they've they haven't even they call it
interpreting but they're really ignoring
it is what they're doing uh they're
trying to allow the government to do
things that are clearly prohibited by by
the Constitution uh so but now you know
you have all this stuff that's being
done you know and you have you know
everybody just getting elected and
people keep thinking oh it's so
important that everybody vote no it's
not I mean why would you want some idiot
to go vote right and just cancel out
cancel out your vote uh if if if they're
G to vote you people are going to vote
for socialism I don't want that right I
mean socialism is pretty appealing to
people who don't know anything right
it's very easy to vote your way into
socialism the problem is you can hardly
ever vote your way out of it usually you
have to fight your way out of it right
you need to you need a you need an armed
Rebellion uh but a lot of the most
tyrannical governments I mean Adolf
Hitler was it was elected right I mean
how do you think he came to power a lot
of these tyrants you know are people
vote for them right and and and and and
and then they end up with with with with
with this horrible government so I you
know that's not the type of the
government I like where you just vote
yourself into a socialist totalitarian
uh Society I want I'd rather have a
monarchy than that I mean I actually
think a a constitutional monarchy is
probably a better form of government
than just having a democracy and I don't
think if if the framers uh would never
would have gone for democracy they would
have they would have made George
Washington a king fact they they offered
to make him a king he didn't want to be
a king and so we had a republic and
that's why you know Benjamin Franklin
when he was asked what kind of
government did you create for us Mr
Franklin he said a republic if you could
keep it and that if you can keep it part
wasn't necessarily because he thought it
might become a monarchy he was afraid
that it might uh devolve you know into a
democracy and they knew that didn't work
right they they they they were unlike
today's uh uh rep you know government
officials they understood history they
studied the failed democracies of
ancient Greece they knew that that
didn't work uh so you know they they
they they created a republic and that
worked for a long time in America I mean
we thrived uh as we kept democracy in
check uh we saw the greatest expansion
of living standards for the masses in
the 19th century we've never had
economic growth since with all of our uh
new technology we've never had the
economic growth that we had in the 1870s
the 1880s 1890s 1900s this is before
everybody was Voting and back then we
didn't have an income tax we didn't have
a Social Security tax we didn't have a
minimum wage we didn't have any of this
stuff we didn't have any of these
government programs government was Tiny
federal government was an afterthought
and and and we became the most
prosperous nation in the history of the
world it was only after we started
voting for all this big government right
that that we've created all these
problems and that we've seen such a
dramatic decline in our in our living
standards especially on a relative basis
relative to the rest of the world I mean
countries that we are we're way ahead of
uh we're now
behind I think we're going to have a
hard time getting people to wrap their
heads around inflation going to a
constitutional monarchy is probably
outside the scope of uh where we'll be
able to influence people those are
really interesting things to think about
just to plant my own flag uh so I don't
get swept up in some of those things uh
I would I I am hyper paranoid about
people um that manage to convince
themselves that they're smart enough
that they want to tell people how things
should go so um I get it I understand
that democracy is is going to have deep
and abiding flaws um but yeah I think
that saying these people can vote these
people can't vote in in a very restrict
the property was where you lost me I'll
be really honest uh that that is a prop
qualifications were were pretty common
you know owning property that's how you
become feudalistic man that that's how
you get this permanent underclass of
people that really do fall under the
tyranny of people who are going to vote
selfishly as everybody does and so you
rob the one thing from people which is
the ability to express their voice in a
nonviolent way to say this is the thing
that I want and even if it's just a uh a
yard stick to to see the screaming of a
a a group of people that feel that
they're not being heard it's like if you
don't let them vote and have that tally
at least marked you're you're going to
have problems I think anyway I know we
can go back and forth oh God Peter you
made such good points I heard them all
but I want to get us back to something a
little more tangible and and today right
now uh so some ideas that are being
floated economically right now are to
tax unrealized gains I found that
terrifying uh a $25,000 credit to
first-time home buyers how could that go
wrong that sounds great but um I have
thoughts uh medical debt forgiveness
again sounds amazing um but I I have uh
feeling that that goes wrong um what
there there's a sort of General thing
that groups those three things together
which is they all sound awesome they
sound like they're going to make things
better for people that are struggling
why won't those things or maybe they
will but my thesis is those will
actually make things worse for people
that are struggling how could that ever
be
true well first of all just giving
people money to buy houses um you know
again apart from being unconstitutional
which which it is uh it's just going to
increase housing demand people are going
to take that money and use it to bid up
houses and so prices are going to go up
and so if you know if the problem is
that housing prices are too high giving
people money to buy houses is just going
to make those prices even higher so it
is a foolish uh misguided policy that is
going to worsen the very problem that
they're trying to solve I mean the the
real solution is to get the government
out of the housing market completely uh
they they they've been very involved in
it for a long time really started under
FDR but all these programs to make homes
more affordable have backfired and made
them a lot more expensive which is
exactly what the government does so that
that is the worst possible uh policy
other than maybe this tax on unrealized
gains which number one again would also
be
unconstitutional because they want to
try to tax unrealized gains as if they
are income but they are not income they
are unrealized gains that is not income
income is a realized gain you have to
sell something and receive more than you
paid for it to have income that is
subject to tax under the 16th Amendment
see the reason we have a 16th Amendment
is because the the Constitution
basically prohibited an income tax a
direct tax unless it was apportioned and
the government you know didn't want to
apportion it for all sorts of reasons
because the founding fathers didn't want
direct taxes they wanted direct taxes in
emergencies like a war so they made it
very difficult for the government to lay
a direct tax which is a tax that the
people have to pay directly to the
government as opposed to an excise tax
which they thought the government would
run on which is like a sales tax you
know tax on Alcohol
Tobacco gas you buy a product the tax is
there you pay it easy you don't need an
accountant you don't need to you know
file a return you don't need to you know
you know risk going to jail right it's
very simple to pay an excise tax so that
was how the government was supposed to
run well when they initially wanted to
impose the income tax the politicians
said
look we'll tax uh the rich and the
middle class won't have to pay taxes
anymore we'll get rid of the tariffs
that you guys have been paying and we're
going to tax the carnegies and the the
Vanderbilts and the Rockefellers this
income tax and so that's how we got it
because the public voted for a tax they
didn't believe they would ever have to
pay but of course now the middle class
pays taxes that nobody nobody would have
imagined Carnegie and Rockefeller and
Vanderbilt would have paid the initial
tax was I think capped at 4% on on the
billionaires right it was a tiny little
tax but the 16th Amendment is what
authorized it but it has to be on income
so the only direct tax that can be
constitutionally levied without
apportionment is an income tax so now if
the government says we're going to try
to tax the unrealized gains that you
have on an asset that you own that is
not an income tax that is a property tax
they're taxing your stocks they're
taxing real estate they're taxing the
asset that has appreciated so that is
completely
unconstitutional but now let's assume
that do it anyway right and the Supreme
Court for whatever reason doesn't strike
it down it would be a complete disaster
to impose that type of tax because it
would destroy the economy because
anybody that owns these appreciated
assets would be forced to sell the
assets to pay the
tax and you would destroy the
accumulated capital of the country I
mean the the key capitalism is capital
you want to allow Capital to accumulate
because that's you know what drives the
economy that's what helps produce all
the goods and services is the fact that
we have Capital but if we have to
destroy the capital so that we could pay
a tax to the government we're just you
know turning all that Capital into
consumption so it would be highly
inflationary it would be very
economically destructive lots of people
would try to figure out how to get the
hell out of the country uh nobody would
want to start a business here anymore
nobody would want to own assets here
anymore I mean it would be a horrible
tax
economically uh even you know the apart
from the fact that it's illegal to
actually do it but and again if they do
pass something like this remember it's
the camel's noes Under the Tent that's
always how a new tax is sold it's sold
to the
voter with a promise that you won't have
to pay it here is a new tax that some
rich guy is going to pay and it's not
going to cost you anything oh okay yes
I'm I'm I'm in favor of that but then
once they they get it passed it rapidly
changes uh so that now the very people
who were told they wouldn't have to pay
the tax are the ones that pay the most
the middle class suffers the biggest
burden from a tax that they never were
even going to pay and in fact the
withholding tax didn't even start until
the second world war so even though we
passed the income tax in 1913 nobody had
taxes withheld from their pay until 1943
and that was because we were fighting a
war and so the government said hey we
need to do this temporarily because you
know we got to fight this war we need
the money and so we got that temporary
withholding tax and of course we still
have it here it is
2024 and people are still having taxes
withheld from their pay but again this
is why I mean if we tied voting to
taxation that would be that would be
another way you could do cuz people it's
it's very easy to vote for a tax that
you're not going to have to pay cuz
that's really like voting for theft a
politician says yeah vote for me and I'm
going to steal money from this rich guy
and give it to you well okay right whose
vote do you lose well I I lose the vote
of the rich guy but there's not as many
of those uh as as there are the people
who are going to get the stolen money
and so that's what happens but the the
all these policies that she's that she's
proposing on top of the you know the
price gouging I mean there is no price
gouging uh the prices are set by supply
and demand I mean that I mean the prices
are what the prices are I mean
especially supermarkets I mean
supermarkets grocery stores are highly
competitive they have razor thin margins
nobody can gouge because they would go
out of business I mean you go shop
someplace else I mean every Supermarket
is trying to give the customer the best
deal they possibly can you know so
prices prices are low but the reason
they've gone up is because the
government's created inflation and
prices have got to go up when the
government creates inflation I mean if
the supermarkets or grocery stores
didn't raise their prices they'd go out
of business and in fact that's what
these price controls would do they would
result in a lot of grocery stores going
out of business especially in the inner
cities in the communities where they
have higher costs uh you know there's
higher Insurance higher crime higher
minimum wages I mean those are going to
be the first stores to shut down and uh
and so you know the food's not going to
be there right there's not going to be
any you know again you're going to have
to wait in line for a long time because
they're going to end up rationing what
food they have left uh and to the extent
that you really want to get something
you're going to buy it illegally on the
black market uh and you know it's going
to cost a lot more so everything that
she has proposed is just going to make
the problems worse you know the high
cost of housing the high cost of food is
because of the government creating
inflation and everything uh Harris wants
to do is to create even more inflation
and she in fact that was the biggest
irony was the inflation reduction Act
was an act to increase inflation like I
mean if I mean there's no truth in
legislating right if there was I mean
they would they'd all be in jail for the
inflation reduction act because it's
false advertising it's lying the
inflation reduction act increased
inflation because it they expanded the
money supply they voted for the
government to spend more money that the
Fed was going to have to print right so
that was that was the cre inflation
creation act in fact it was really the
green New Deal relabeled so the public
would would would would would accept it
and now they want to claim credit hey we
passed the inflation reduction act yeah
that was just the title right in fact if
you want to know what a government bill
is going to do just read the title and
then it's the opposite like if they pass
tax simplification it's going to make
taxes a lot more complicated they they
tend to put a title on a bill that is
the opposite of what the bill is
actually going to
achieve that's good times why why are
price controls impossible to do well
like if they were going to go in this
and really try to be nuanced and and
understand I'm dealing with a company
that has razor thin margins um we don't
want to crush these small businesses we
know most people are doing it right we
just really want to make sure um that
everybody's taken care of why
fundamentally does that still go wrong
well first of all in order for the
government to you know try to figure out
what the price should be of any given
item because first of all there's so
many different items on the shelf right
so some government bureaucratic board is
going to have to be appointed and
they're going to have to figure out what
the price of a banana should be or what
you know what what the price of you know
a can of Coca-Cola should be or you know
all these different items who's going to
do that how much is that going to cost
and then
how are the supermarkets going to comply
with these rules and regulations how are
they going to prove to the government
that the prices they're charging are you
know within what their requirements are
all of this is going to cost a lot of
money to administer where's that money
going to come from where where are the
grocery stores going to get all the
money they're going to have to hire a
bunch of people now to fill out forms
and to keep track of numbers and to get
the permission from the government to
char where are they going to get all
that money they got to raise their
prices so anything that the government
does that imposes more regulation on a
business is going to result in in in
higher prices for whatever business is
being regulated but also they don't need
to do that they can't do that we already
have something called supply and demand
and we have competition those things
together set prices and it prevents
somebody from ripping off the customer
because while I don't think everybody is
smart enough to vote I do think
everybody is smart enough to shop you
see the the people who want everybody to
vote think the people are a bunch of
idiots and the government has to protect
them from everything I think they're
smart enough not to shop at a grocery
store that's overcharging right so you
know you're a consumer right you have
choice there's a free market and if one
grocery store is too expensive you won't
shop there you'll go someplace else
right in fact you got the internet now
you can shop around you can see where
the prices are the best so it's
competition that is going to make sure
no one gets ripped off when the
government comes in everybody gets
ripped off everybody gets ripped off by
the government you know instead of kamla
Harris worried about
non-existent price gouging by the free
market she should worry about the actual
gouging that's being done by the
government on the people the people are
being gouged with inflation and taxes
and they have no way around it right the
government creates it in the free market
it's all voluntary nobody can exploit me
no one can gouge me because nobody owns
my business I can take my business
anywhere I want I'm going to go to the
company that offers me the best deal the
highest quality the lowest price that's
where I'm going right and the market is
going to make sure but with the
government when they have power and they
have the guns I don't have a choice
right I have to pay their inflation tax
no matter what if they tax my income I
even if I get a lousy deal I can't opt
out right I I'm paying the tax I'm being
forced to pay that tax so the government
takes my money by force a grocery store
gets my money because I volunteered to
give it to them they didn't force me
they didn't come to my house with a gun
and force me to shop at their store and
pay their prices they convinced me to
stop at their store because they had the
best prices or they had the the cleanest
miles or the shortest line or whatever
it was that caused me to go to that
grocery store I went there voluntarily I
could have gone to any other store but I
chose the one that I went to I'm not
going to choose the one that's ripping
me off right nobody is that dumb but the
government somehow thinks we're all that
dumb and we're all going to make dumb
decisions unless they come in and
protect us yet we're all smart enough to
vote right we're we're too dumb to know
where to buy groceries but we know how
to pick the president see I I think it's
the opposite we're smart enough to know
how to buy groceries but everybody
shouldn't be picking the president all
right if we know that we're in an
everything bubble and it is destined to
burst because of what's going on with
the debt um inflation interest rate that
whole conundrum uh and the policies that
are on the horizon are not anything
that's going to save us from that in
fact from what you're saying there is no
saving us from that other than an honest
default which isn't really saving uh how
do people navigate this moment well what
do people do in a inflationary
environment with terrible government
policy yeah well I mean the advice that
I've been given to people for Years
first of all when it comes to Goods that
don't
perish I've been advising people even
before the pandemic I've been saying
this
consistently is just stock up on things
right everything that you need right uh
let's say razor blades right they don't
go bad right if you you know if if you
buy the razor blades that you're going
to use over the next five or 10 years
you just buy them and put them in the
you know in in a in a storage uh closet
or something then you could just use
those razor blades instead of going out
and buying new ones because the new ones
are going to keep getting more and more
expensive so you might as well stock up
on them um you know bars of soap or
cleaning detergent or certain food items
that you know that have a long shelf
life if you buy the things that you need
in the future but buy them now they're
you know it's like it's like an
investment I mean if if if if I buy a
can of beans and a year from now that
can of beans is 20% more expensive than
it was if I buy it now it's like a 20%
return on my investment right and I
don't pay taxes on that this is Doomer
prepping are is that really your go-to
advice right now or is if I'm honest I
thought the answer was going to be
something like getting gold and other
things that are resistant to inflation
but we went to buy razor blades and
canned beans Peter this is not the
answer I was expecting a lot of people
don't have enough money to buy gold
right so like you know let but then can
they buy a bunch of beans and razor
blades well they they know what they're
going to need I if if if you know that
you're going to want things why wait
till the price goes way up if you have a
little extra cash you could just you
know keep a bigger supply of those
things in your house now obviously if
you've got a lot of extra money if I've
got
$110,000 at the end that I didn't spend
I'm not going to buy $10,000 worth of
beans and razor blades now I can start
buying some gold and silver because I
could use that to buy food or buy razor
blades in the future because those
prices will go up too see if razor
blades are 20% more expensive in the
future gold might be 20% more expensive
too or maybe 30% so I could use my gold
in the future to buy razor blades or I
could sell my gold and I could use the
cash uh to buy Raaz so you you you can
protect yourself from inflation by
buying the goods that you need now or by
buying things like gold and silver that
will go up in value and you'll be able
to use them to buy more expensive Goods
you don't want to save cash you don't
want to take your dollars and put them
in a bank and spend them a year from
because they'll buy a lot yet less a
year from now than they would buy right
now so either spend those dollars right
now on Goods or turn them into real
money that you could save instead of
fiat currency like gold or silver which
you could do you that's why I've got
shift gold I mean I'm telling people all
the time you know give us a call at
shift gold buy some precious medals if
you have any savings if you have money
that you haven't spent problem is so
many people have nothing left over they
can barely get by they got credit card
debt uh you know so for those people you
know just buying some extra things at
the market you know that that might be
all they could do just to have a you
know good supply of stuff uh that not
only could it get more expensive but it
could be out of it they could they could
be shortages of some of these things
especially if we end up having having
price controls now if you have even more
money right if you have hundreds of
thousands millions of dollars that you
want to protect right now you need a
bigger plan now you need a a bigger
strategy and that's what I do at my
asset management company Europe Pacific
Asset Management when you have inflation
inflation destroys paper assets and it
transfers wealth from creditors
creditors to debtors right debtors win
when you have a big run of inflation and
creditors lose we talked about that
earlier the US government wants to wipe
out its debt with inflation well when
the US government wipes out its own debt
it's also wiping out everybody else's
debt so the debtors win with inflation
the creditors lose the people who own
the debt who loan the money they're the
losers so you want to have a portfolio
that will protect you from inflation so
what don't you want to own in your
portfolio you don't you don't want us
bonds you don't want municipal bonds you
don't want treasuries you don't want
corporate bonds none of the interest
rates that you are earning on those
bonds will come anywhere near returning
the purchasing power that you lose to
inflation so you want to get rid of all
those things and you want to have a
portfolio of assets that will retain
their value and what I've been
recommending and what I do is I look
around the world for companies that I
think represent good investment value
that pay high dividends to their
shareholders which would be me and my
clients who own the stock and I want
companies that have pricing power that
can raise raise their prices when
inflation raises their costs they can
pass those higher costs onto their
customers and their customers won't
leave right because what some things
that happen with inflation is you have
to raise prices high enough and you lose
your customers because they can't afford
your product anymore well I want
businesses that are selling products
that people need so they're going to buy
them no matter what I mean they may buy
a little less but they're going to give
up something else because they need
those products so you want to own
businesses that are selling goods and
services that are in real demand that
consumers are going to keep buying even
if the prices go up and then your
dividend is going to go up so you'll
have cash flow that will go up to help
with your rising cost of living and the
stocks that I'm buying are almost all
outside the United States because now I
have the added benefit of earning
foreign currencies that I believe are
going to appreciate dramatically against
the US dollar especially once the dollar
really loses its Reserve currency St
status and you see a huge decline in the
dollar not just absolute terms like it
has been falling but in relative terms
where the dollar really starts to fall
against the other Fiat currencies and
the last piece of that puzzle is when
the dollar loses its status as the
reserve currency I think that basically
removes a giant burden from the rest of
the world because while America benefits
from this status
with a huge
subsidy the rest of the world bears that
cost they have to pay us we live beyond
our means but that means that the rest
of the world collectively lives beneath
its means to make it possible we consume
stuff that we didn't produce they
produce stuff that they don't consume
but when the dollar crashes then we're
we're going to consume a lot less in
America but the rest of the world's
going to consume a lot more in
particular the emerging market so I
think there's a lot lot to be gained
because as Americans see their standard
of living decline you're going to see a
lot of other people in the world
particularly in those emerging markets
that are going to see their standard of
living rise right because now they're
going to be able to buy Goods with their
money instead of us treasuries or
whatever else you know their governments
have been recycling uh their Sur you
know their trade surpluses into so you
want to own companies that are going to
profit uh from that and so I'm building
these portfolios dividend paying
portfolios of real ass assets that I
think will preserve wealth I think a lot
of people are going to get wiped out a
lot of people in my generation uh that
have large portfolios that they're
living on where they're clipping coupons
on their Muni bonds and on on corporate
bonds I think they're going to get wiped
out I think inflation is going to
completely destroy them uh that's why
they should get rid of their dollars
while they can't sell out these assets
while they can and get a portfolio that
is you know positioned to deal with the
level of inflation that I see coming all
right so if you're um the dividend side
I understand but if you're getting um
foreign currency into your portfolio I'm
assuming you're only doing that in
foreign currencies that you have reason
to believe are not going to inflate
their currency at the same rate that the
US is what are currencies that you have
that level of faith in well all the
currencies are going to uh be infl so
it's not a question of you know you know
even the Swiss frank right the dollar is
very close to hitting an all-time record
low against the Swiss frank but they
have they have um inflation in
Switzerland you know when when we went
off the gold standard uh you could buy
23 it cost you 23 cents to buy a Swiss
frank in 1971 and now it cost uh about
a120 to buy a Swiss frank so you know it
cost five times as much the dollar has
lost 80% of its value relative to the
Swiss frank but even during that period
time the Swiss frank doesn't buy what it
used to so it's a question of I'm
investing in currencies that I think
will lose value more slowly than the
dollar which means they'll appreciate
versus the dollar but I'm still
investing in companies in those
countries that I believe can raise their
prices and when you own a business you
own the real assets of that business uh
a a and so those assets maintain their
value what you don't want to own is the
bonds of that business because then you
get wiped out to inflation but if you
own the business which means you own the
plant and Equipment uh you know the the
the the the intangibles the patents you
know what whatever they have that's real
you own that and so if the government
just prints money well then you know you
don't lose any of that you know the
prices of all that stuff just goes up to
reflect the fact that there's more money
but if you own bonds you get you know
completely screwed when they create
inflation you you know in fact a lot of
people look at treasuries and they say
oh treasuries are a safe haven not from
inflation they're not a safe haven from
that you're right in the line of fire
right you're you're you're ground zero
right the people who are going to lose
the most to inflation are people who
think they're playing it safe in us
treasuries they're get wiped out to
inflation okay um a couple mile markers
so one that would be true of treasuries
if and only if the r of inflation is
higher than the return that you get uh
otherwise I would expect that to sort of
be on par that you're sort of Treading
Water um how do you What specific
examples can you give us of uh
currencies that um you are happy to be
intaking flows in understanding that
it's a differential between how much the
US inflates and how much they
inflate yeah I mean look the country the
currencies that are probably the best
you know the the the Singapore dollar uh
the Yan and South Korea the the
Scandinavian currencies uh the Frank uh
but you know we we we've got income
coming in in in Euros in Pounds I mean
these these currencies are still
experiencing inflation and so I expect
that that's going to continue we also
have uh earnings coming in from
Southeast Asia from a number of
currencies you know in Thailand the
Philippines Malaysia I mean you know uh
we're earning income our businesses are
selling products in these markets um and
so all those all those uh dividends when
we get paid we you know we convert them
to Dollars to give them to our customers
but obviously the lower the dollar is
the more dollars we get when we convert
uh the the dividends and the companies
you know if it's a multinational company
and if it's based in in in the UK we're
getting pounds but that company's
earning may not be in pounds if you know
let's say It's a UK company but 80% of
its sales are outside the UK so then you
got to look at you know where you know
where are the sales coming from because
that's where they're earning uh earning
their income but I think that the dollar
is going to lose value relative to that
basket of currencies especially when
it's no longer the reserve currency
because we enjoy this privilege and so
the dollar has an artificially high
value based on that status
and so when that status is lost it's
going to be huge and when you talk about
you know I'm in treasuries and I'm
getting three or 4% and inflation is
three or 4% well it's not three or 4
perc if the government says it's three
or 4% it's eight or 8% so you're not
you're not you know Treading Water
you're actually going down but I think
we're going to see a sudden spike in
inflation that is completely
unanticipated by the by the bond markets
where all of a sudden we can go from
single digit to double digit inflation
but where the first digit is not a one
so all of a sudden we have a couple of
years where inflation's 30 or 40% you
know and and that wipes out bonds almost
completely like you just destroy the
value in just a couple of years you just
wipe out the value of bond portfolio um
because you just get a sudden and
unexpected burst in inflation and you
know you're locked into your yield right
you got a threeyear
treasury a big drop in the dollar yeah
if we have if we have a a precipitous
drop in the dollar let's say the dollar
uh dollar Index right now is at 80 right
not excuse me at at a 100 so let's say
101 let's say the dollar Index got cut
in half over the next couple years down
to 50 which could happen right it's
never been that low the all-time record
low is about 70 but if you saw a
precipitous drop in the in the value of
the dollar because there was a you know
a run on the dollar and there was you
know people were worried about
treasuries um then you could could see a
massive increase in in in prices in the
United States very quickly I mean you've
seen that in other countries you you see
that when they're their currency gets
clobbered and then they have massive
inflation you know and especially with
the us we import so much stuff we we we
we rely so heavily uh on
Imports yeah but this is a confidence
game so I'm just curious what you think
uh would shake the global markets belief
in the dollar is this something like
bricks uh where hey they're like let's
let me just run a pretend scenario you
tell me if I'm on the right path here uh
China announces um hey we faked you guys
out with not buying gold for a month but
now we're actually buying at three or
four times the rate we're going to be
announcing a uh new brics currency
that's pegged to Gold uh and Russia and
a bunch of other countries are like 100%
of our purchasing of petrol is going to
be in this new petrol bricks dollar
whatever uh and people like oh God it's
it's all happening and now the value of
the dollar goes down is it going to be
something like
that well you know they always say it's
never a problem until it's a problem
right well of course then it's a
crisis but if you look at anybody that's
had a sovereign debt problem or currency
problem it it it comes on very subtly
look I'm I'm here in Puerto Rico and for
years and years Puerto Rica was
borrowing a lot of money and it was
obvious that they were borrowing more
money than they could pay but the bond
market didn't care uh the lenders kept
loaning Puerto Rico more money and so
Puerto Rico kept spending it and
borrowing more and and then all of a
sudden you know the market started to
worry about the ability of Puerto Rico
to repay its debt and so people didn't
want to loan more money to Puerto Rico
and the people who already loaned their
money wanted it back and then there was
a crisis and Puerto Rico defaulted on
the debt right you know same thing
happened Greece you know that Greece had
a a big problem but they were broke for
a long time before anybody cared I mean
it's like you know you can keep on
borrowing money until you get that that
that point and there's going to come a
point in time where the world doesn't
want to loan any more money to a
bankrupt nation that has no ability to
repay its debts the only way that we can
pay our debts is by creating inflation
which doesn't count right I mean people
think well the US government will never
default which you know I I you know they
might again that's better than inflation
but we have defaulted in the past in
1971 we defaulted on our commitment to
pay gold we had made a promise to the
world we told the world if you have 35
Federal Reserve notes whenever you want
you can get an ounce of gold that was
the deal we made with the world our
Federal Reserve notes were like IUS for
gold for real money and in 1971 Nick and
told the world we're defaulting on that
promise if you own Federal Reserve notes
you can't get anything for them anymore
so that was a real default so it's not
like we haven't done that before we
we've done it but most people just
assume that because we have a printing
press there's no point in the US
government ever defaulting will just
print money well at some point the world
is going to realize that yes America is
going to print a whole bunch of money
and that means the bonds I have are
going to lose a lot of value because the
dollars that denominated are going to
lose a lot of value and so now everybody
wants out of the dollar right all these
dollars all these treasuries that are
owned all around the world and not just
treasuries but corporate bonds you know
any any paper that's dollar denominated
people no longer want to own it they
want to get rid of it before it loses
too much value and now of course
everybody's trying to dump dollar
denominated debt at the same time and so
it collapses and it it you know it
happens very quickly right that old
saying how did you go broke well slowly
at first and then all at once and so we
have a crisis we have a sovereign debt
crisis we have a currency crisis it's
something like you know the emperor has
no close I don't know when this moment
is going to hit because it's already
overdue you would have thought that that
somebody would have come to this
conclusion a while ago now there are
some people who have like like I have
but there's not enough of me I'm in I'm
in such a small minority that the fact
that I don't trust the US government and
I don't want to buy the bonds that's not
enough to break the market but there's
going to be a critical mass when enough
people it doesn't have to be the
majority of people but a large enough
minority uh come to this conclusion and
that's it the game is
over yeah it's uh very interesting that
people have not come to that conclusion
yet uh it feels like it's because
there's so much momentum around the
dollars just used everywhere Petro
dollar Etc uh so many nations own that
debt it sort of like the whole idea that
everybody talks their book uh it
behooves everybody that holds US dollar
debt uh US dollars to not see the music
stop uh and so this feels like something
that we would be able to see coming this
is why I'm a little surprised that
people aren't more concerned about
dollarization it felt like what happened
uh when um we put sanctions on Russia
that that was just like a starting gun
to something very bad because if I'm a
foreigner looking at that I'm like huh
if they don't like my policies or
something that I'm doing then they could
just freeze billions of dollars of
assets I don't like the sound of that uh
and I'm going to unwind it but uh that
unwinding process is excruciatingly slow
it is happening but it's very very slow
which tells me that it isn't easy uh
which tells me that um uh this could be
naivity and I'm certainly willing to
entertain that but it feels like they're
going to be this Confluence of things
adding up and as long as you uh don't
just keep holding your breath as it gets
weirder and weirder that you really will
have a long off-ramp with which to exit
you were an early exit ramper you took
one of the first ones it feels like more
and more people are taking it whether to
bitcoin if you're somebody like me or
gold I also hold gold um but there are
people that are losing faith in the
government that's for sure uh and then
finding other ways to get out um one
thing like the exit ramp that you're
talking about it's been a very very long
one in fact I think it's been so long uh
that's part of the problem because
there's a lot of complacency that's been
built up over the years because people
including me have been warning about
these problems and the inevitable
consequences for a long time yet to a
lot of people hey the Dows at an
all-time record high um everything is
fine and so there's nothing to worry
about you know when when Ross perau uh
you know got as many votes as he did he
ran on a campaign about you know the
debt is unsustainable and it was only a
couple of trillion back then uh but here
it is now 35 trillion and people think
well you see well what's the problem why
can't it go to 100 trillion it got to 35
trillion uh and so people just have a
false sense of complacency that it's
gone on for this long so it's going to
go on forever and you know it won't
nothing that's unsustainable is going to
go on forever the fact that it's gone on
as long as it has though uh has gotten
people to to believe that but it just
means that you know we're that much
closer to the collapse and and when it
happens it's going to be even worse
because we're collapsing from a a much
higher level right we have a much bigger
bubble now uh and so it's far more
catastrophic when the air comes out than
would have been the case had it happened
10 years ago 20 years ago and in fact
the the more catastrophic it obviously
is the more pressure there is on the
powers that be to delay it even more
because it's like so bad I mean you know
we you know and you know we we we keep
saying well you know it's our dollar
your problem and and to an extent it is
everybody's problem but the longer they
stay with it the bigger that problem
gets and we certainly accelerated it by
weaponizing the dollar I mean as if
people didn't have enough economic
reasons to dollarize Biden gave them a
big political reason to do that by
weaponizing it by threatening sanctions
and to kick you off a swift or to
confiscate your treasuries so pretty
much we we told the world get get rid of
your dollars right I mean that's what
you know which is the dumbest thing that
we could have done because that's the
only reason that the whole thing isn't
imploding because the world has been
dumb enough to to stockpile our dollars
and we just gave them another powerful
incentive not to do that so we know it's
happening uh the question is when will
the
pace Quicken and I think as the dollar
starts to fall and it's just started now
and the dollar Index is off about 10%
from its peak uh which is Set uh you
know a little over a year ago a year and
a half ago uh and again we're close to
an all-time record low against the Swiss
frank we only have to drop another maybe
seven and a half percent to hit an
all-time record low and that's going to
be the first currency I think that the
dollar hits a record low in but it's not
going to be the last more currencies but
I think once the dollar Index really
starts to break down maybe the breaking
point is 80 maybe it's 70 somewhere
around there but once the dollar starts
to fall faster and when inflation rears
its head in a bigger way in the US but
the FED doesn't do anything about it
because we're in recession and the
unemployment rate is up and the world
kind of you know comes to this
conclusion uh that you know you know we
can't pay inflation is never going away
and you know the last man you know stuck
with dollars is is is the loser right
right now people that the central banks
around the world are slowly divesting of
dollars because there's no real urgency
right the dollar is not crashing and so
they could slowly work their way out of
the problem but as the dollar starts to
fall more it creates a bigger sense of
urgency that I better get out because
the longer I sit here the more I'm going
to lose and so that's going to
accelerate the rush to get out of the
dollar which is why eventually it's just
going to implode because now so many
people want to get out and there's
nobody to get in to take the other side
of the
trade when that um Unholy hell begins to
break loose in the US what does that
look like from a sector's perspective
what sectors are most vulnerable uh
where are we going to start making
Investments like for instance are we
going to then start investing in
manufacturing at home uh what is that
moment look like as we start to build
our way back out of
it well remember the we have built this
consumer focused Economy based on the
Dollar's Reserve status you know better
than 70% of our GDP comes from Americans
just spending money and they spend a lot
of that money on on
Imports and so when the dollar crashes
those Imports are just not coming in
anymore and so all of these stores are
just going to have empty shelves and so
when there's empty shelves they they
don't need their employees anymore right
so I mean this whole service sector
economy is going to be the hardest hit
by the dollar crash like because that
that the consumption is going to come to
an end and that's the line share of our
phony economy it's all based on services
and and that's where you're going to see
the biggest hit now if you're
manufacturing right if you're
manufacturing stuff that you can export
you you're going to benefit from that
you know yeah your costs of your costs
will go up your labor costs are going to
collapse right because the wages that
you're paying your workers have crashed
because the dollars have crashed your
raw material costs you know they could
go up uh because they're you know you're
globally you know you're when you're a
business you're competing globally for
resources raw materials but labor is
pretty much you know captive right so if
if I'm a worker and I'm in you know
Illinois and you know my choices for
employers are there I can't go to Japan
if they have higher wages I can't just
up and move to Japan I just got to
accept you know the kind of the best job
that that's within my reach so wages are
going to come way down in America on a
global scale and so that will help a lot
of businesses become more productive you
know uh factories that and so maybe
companies that now are producing goods
and selling in America they'll start
shipping those goods abroad and selling
them to foreigners and and making them
here so that that will help uh so those
Industries will do better that's why if
I was going to be investing in the
US I would want to invest in businesses
that produce products or services that
are in demand outside the United States
that can be sold exported uh so that
that part of the economy is going to do
better unfortunately that's a smaller
part of our economy right so much of it
is based on you know distribution of
imports uh and even a lot of you know
service sector jobs where they're not
selling Goods where they're providing
products a lot of the the the the stuff
that they they use in the provision of
those services are
imported um and of course energy is just
going to go way up because even the
energy that we produce ourselves if the
dollar crashes most of the energy that
we produce we're just going to export it
to other countries because those people
can can pay more right you know we don't
just compete with one another we compete
with the whole world and so right now
we're at a competitive Advantage with
the world we've got strong dollars and
we outbid a lot of people for resources
a lot of resources we get because we
could pay more because the dollar is
worth more but when the dollar collapses
all of a sudden we're going to get
outbid for a lot of things that we used
to be able to afford so it's going to be
very disruptive uh to go back to reality
but you know in the long run of course
the sooner we do that the better because
the longer it takes the worse it's going
to be right it's like we're in this
giant hole and we just keep digging and
digging and digging eventually we're
going to have to be you know confronted
and get out of this hole so let's stop
digging right that's the first rule of
holes right when you're in one you stop
digging well that's what we have to do
as of now we're continuing to dig this
Grand Canyon of holes and we're making
it even
deeper how do you evaluate the companies
that you invest in you talked about one
they're going to have to pay dividends
uh two ideally if they're American
they're exporting something that's still
going to be in demand post uh any sort
of um crash in the dollar
uh but what specifically are you looking
for like if you were going to create a
fund and you had to come up with a way
to identify these types of companies
what are the three to five
characteristics that they have beyond
that they pay a
dividend yeah well personally I don't do
all this myself I have a whole team of
portfolio managers that work for me at
europacific Asset Management I have
specific portfolio managers that manage
each individual fund right and so these
guys are out there and they're doing
that kind of research but it is like a
basic a value oriented Warren Buffett
kind of stock picking style to really
get familiar with the business it's you
know balance sheet uh its prospects for
the future you know look at all these
various you know qualifications that you
could look at and you know first we have
computer models that screen all the
universe of stocks like for certain uh
criterias that would evidence that we're
getting a good price right you can you
can relay the price of the stock stock
to all sorts of metrics based on revenue
or cash flow or earnings or or or booked
value and try to narrow your Universe to
a subset of stocks that meet some type
of criteria that you think would
indicate that there's potential value
there but then do a deeper dive into the
businesses into the industries I mean I
kind of have a bigger picture look at
like what kind of uh sectors do I think
will be the best to invest in and so I
kind of let my team hey like this sector
whether it's metals and Mining energy
you know consumer a nony you know
non-cyclical defensive stocks or
pharmaceutical stocks hey I like this
sector find the best stocks you know you
guys are experts in in in in portfolio
analysis or you know individual stocks
so find me stocks and I think we have a
great team of stock Pickers uh a value
oriented stocks you know I mean people
think hey the stock market is a great
investment it can be it could it but
depends on what you pay if you overpay
it could be a very bad investment now of
course people have been overpaying for
stocks in the US for a long time and the
prices keep going up anyway so so far so
good but you know that that can come
crashing down I think it will come
crashing down more so in real terms than
nominal terms because if they create
enough inflation stock prices are never
going to have a meaningful decline in
dollars where you're going to have the
meaningful decline is in dollars and so
that can really destroy the value of
your portfolio uh so I want to invest in
in companies that actually represent
good investment value just like you know
if you're in the real estate market you
know you're not g to you don't want to
buy real estate if the rental income
isn't there you know you want to try to
find uh income producing real estate
where you can buy the property and you
get a good enough return on your
investment in in the rent so I look at
dividends on stocks now some companies
if they have a lot of earnings
they have the potential to increase
their dividend in the future so I'm not
only concerned about today's dividend
but what about tomorrow's dividend
because some companies may have to cut
their dividends in the future if they
don't have enough income so you don't
want to just have companies that are
paying dividends but companies that are
retaining enough income and investing in
a growing business so they can continue
to pay those dividends in the future and
in fact increase those dividends in the
future a very complicated game as you
get deeper into it um but that all makes
a lot of sense as the local gold bug
what is your thinking on the price of
gold we're at I think you said uh
2520 roughly right now 2 uh
520 um we going up from here we going
down what's your
prognostication yeah I I think gold is
still early in an incredible bull
market um the first big bull market from
gold
you know was when it went from
$35 in 19 um 71 to $850 in 1980 I mean
think about the the size of that
increase in a relatively short period of
time and especially when if you look at
where the price of gold was before that
when the country was established in 1789
when the Constitution was ratified gold
was $20 an ounce it was still $20 an
ounce when we formed the Federal Reserve
in
1913 and it was still 20 yeah wow and it
was still $20 an ounce when we got into
the Great Depression in the 1930s but
then Roosevelt after he made it illegal
for Americans to own gold devalued the
dollar and it became it was $35 to buy
an ounce of gold and it was still $35
until Richard Nixon devalued the dollar
in in in you know early 1970
and so the official price of the dollar
right now on the books is like $42 an
ounce but that's the official price but
the the real price is $2500 so we had
this big move from
$35 to 850 then the price of gold really
came down for 20
years uh in 1980 80 2201 gold was under
300 it was 270 I think in January 1st of
uh 2020 21 of 20
2001 then we went on a big move for 10
years we went from um 270 to
1900 in
2011 we pulled back to a low of
1,050 in
2015 we finally broke through the 2011
High really this year I mean we we we
got above it briefly during covid
briefly and we came right back down but
really the high was you know close to
2000 we didn't really take that out
until this year 20 24 and now the FED is
about to throw gasoline on the gold Fire
by cutting interest rates and then going
back to QE so I think that we're about
to explode higher in the price of gold
um you know 10,000 20,000 maybe more uh
you can also relate the gold price to
the Dow Jones it's you know the Dow's
been around for a long time in
1929 the peak of the Dow was 20 ounces
of gold in 1932 the Dow was 1 ounce of
gold that's taking the Dow and dividing
it by the price of gold uh the price of
gold got the Dow got back up to $20 20
oun of gold in the mid1
1960s and then got down to 1 ounce of
gold again uh in the early
1980s uh it got up to about 42 43 ounces
of gold
in 2000 at the peak of the the bubble um
right now it's about 16 I think it's
about 16 to one um and so I think the
Dow is going down close to one to one
again uh you know just say two to one uh
you know just to keep it safe so if you
were going to say the Dow is going to be
worth 2 ounces of goal the Dow is 40,000
so that if the Dow stays where it is
that means gold can go to 20,000 and the
Dow just stays where it is but it's a
moving Target I mean the Dow fall to
20,000 then gold only has to go to
10,000 the Dow can go to 50 the Dow can
go to 100,000 and then gold has to go to
50,000 to' be two to one but you're
going to see a a a huge rise in the
price of gold relative I think to stocks
but it's going to be even worse relative
to bonds I mean because bonds are going
to get obliterated right at least you
know stocks will will have some value
but I think gold is very underpriced and
I think Gold's going to be remonetized I
mean gold hasn't really been uh the
reserve it's been the dollar and as I
said earlier I think the dollar is going
to lose its status as the reserve
currency now one of the reasons that a
lot of people are very complacent and
don't think that's going to happen is
they don't think there's another
currency that could take its place they
say well the Euro the Yen the pound or
the Chinese R&B none of these currencies
would make sense to be the reserve
currency and I agree none of those
currencies should be be the reserve
currency either but what everybody
overlooks is the elephant in the room
which is gold gold can be the reserve
asset just the way it was before it was
the dollar and again the only reason
that the world accepted the dollar as
the reserve initially was because it was
backed by gold and redeemable on demand
in gold at a fixed quantity so even when
we were on the dollar standard we were
still de facto on a gold standard we
just trusted the US government to keep
its word which turned out to be a big
mistake um so I think that when the
world goes off the dollar standard it
doesn't go on the Euro standard or the
Yen standard that makes no sense it's
going to go back to the only standard
that works and that's a gold standard
and to
remonetized and everybody else owns it
why why would that be true why does
remonetized what is remonetized exactly
and why does it equal a higher price
well that means that governments back
their currencies with gold so instead of
having big Forex reserves of dollars or
Pounds or Euros they have big gold
reserves right and and that's what's
backing up your currency and if you're
and if you want to even go one better
you tie your currency to a fixed weight
of gold and and what that does is that's
going to restore confidence Ence in the
money because right now money has no
real value it's just Fiat it's just
paper you can just print it and it it
deres its value from the fact that we
all believe it has value now also
governments mandate its use and they
require the payment of taxes in it so
that's also part of why we all believe
it's going to have value but at the end
of the day it's a belief system because
there's no intrinsic value in the in the
paper at all there was when it was
backed up by gold but now it's backed up
by nothing and so when there's a general
loss of confidence in Fiat currencies
which could easily happen uh how do you
re-instill confidence how do you get the
public to have confidence in something
where they've lost confidence back it by
goal I mean the way some countries now
let's say it's a South American peso
some country and the people lose
confidence what do they do they have oh
we're going to back it by dollars we're
going to have a peg we're going to Peg
the currency to the dollar to try to
instill some confidence that we're just
not going to print because we're going
to P Peg it to the dollar well you know
when big when the Euro or the Yen or all
these currencies when people don't
confidence them they're not going to Peg
it to anything you know they're not
going to Peg it to the dollar so they
have to Peg it to Gold but that could
stop the presses and reins the
confidence because even even if the
governments try to stop the
presses the velocity of money could pick
up dramatically if nobody has confidence
in it it becomes like a hot potato right
the minute you get your money you want
to spend it you don't want to hold on to
it for any length of time even for a day
because you're so afraid of how much
value it's going to lose during that day
and so then everybody wants to get rid
of the money that that's really what
happens with the
hyperinflation and how do you how do you
how do you change that Dynamic well
introduce gold uh and say okay now the
currency is gold and we we have real
money backing it up and then that could
create some confidence when the
confidence is
on Peter as always this is incredibly
enlightening where can people follow
along with
you well I'm pretty easy to find um you
know I'm on the internet I do a lot on
social media particularly on X that's my
uh the platform where I tend to post a
lot of my thoughts you know in real time
as I have them fact I've done now a
couple of the spaces a lot of people
have tuned into those uh so you know my
Twitter hand is you know Peters shf
you'll see me there I've got little just
over a million of followers now and so
you can you can join that that that
group and follow me there but I'm also
on Instagram and Facebook and my YouTube
channel is still growing more slowly I
have about 5 and I think 880,000
uh people who uh subscribe to the
YouTube channel it's a good place to
watch my podcasts I do one or two of
them usually per week uh and so you can
you know there live now so I I do the
podcast live so you can watch live as I
do it or you could just tune in on
anytime on the YouTube channel and just
watch it you know after the fact you can
also listen to it on shiff
radio.com uh it's you know or the
podcast the Peter shift sub podcast
anywhere that they have podcasts you can
download it a lot of people are
listening to it but I think it's a great
uh a great place to hear my my thoughts
as far as um if you want to do business
with oh I also have a new news
newsletter now we have a free newsletter
that comes out at shifts sovereign.
comom you can go to that website my last
name sovereign. comom it's almost a
daily letter it's free a lot of good
information uh we have a premium letter
that's you know I think it's eight n
bucks a month something like that shift
Sovereign premium so you you can take a
look at that you get you know there's a
free trial so if you don't like it you
you can cancel no questions asked uh as
far as becoming a a client of mine uh I
mentioned shift gold uh you know I
recommend highly that people if you
don't own any gold or silver that you
buy some it's not an investment it's a
form of savings it's an alternative to
saving dollars or Euros or Yen or any
other Fiat currencies you want to you
want to keep your dry powder in gold and
silver if you keep it in a fiat currency
it'll be all wet it won't it won't buy
you very much uh so everybody should
have some gold and silver you should
have some physical gold and silver that
you have control and possession of and
and that's what we sell and you don't
need to buy rare coins numismatic coins
uh if you want to be a coin collector
you can do that but if you're just
looking to have gold as a store value as
an inflation hedge uh then you just want
bullion you want bullion bars and coins
and and and we'll help you get the right
ones there if you have a bigger
portfolio and you know you want to have
Investments if you want to generate
returns if you want to get income on
your Investments right which you don't
get from physical gold then you want to
contact my Representatives at
europacific Asset Management so we can
go over your port folio and you know
we're a registered investment advisor
and we could take your current portfolio
whether it's in a taxable account an IRA
type account and get it into the type of
Investments that I believe will endure
and Thrive during the inflationary times
that lie ahead I think most people are
completely ill-prepared uh you know
they're they're in uh the indexes in the
US they they may be their 6040 portfolio
they've got a lot of overpriced US tech
stocks uh they got a bunch of money in
in in US dollar donated bonds I think
these portfolios are going to get
destroyed uh the way they did in the
1970s you know people that followed the
investment prescription of the 1960s
that worked great in the 50s and 60s it
was the nifty50 it was the Xerox and the
Polaroids and all these stocks they got
decimated in the
197s uh but if you if you if you had a
portfolio of resource stocks gold and
silver oil if you invested in Japan in
in emerging markets in uh the late 60s
ear you know you you you killed it
during the 1970s so I think this is
going to be the 1970s on on steroids and
you know another thing that happened too
as a result of the
1970s that's why so many women ended up
working in the 1980s and the 1990s you
know they didn't work in the 50s and 60s
married women because their husbands
could afford to support them but they
lost so much money due to the inflation
of the 1970s that now one paycheck
couldn't support a family so now you had
all these women that had to join the
labor force to earn the money that their
husbands lost they lost it to inflation
they lost it to taxes that and that's
been part of the the degreg in our
standard of living you know a lot of
people when they think oh we haven't you
know we haven't uh suffered a crisis we
have because we've destroyed a family we
have two people that have to work and
now they don't even have one job now we
have two people working four or five
jobs and they can't even make ends meet
not only do you have the husband and
wife both working and both working
second and third jobs but they have no
savings and they have massive credit
card debt you didn't have that people
didn't have credit card debt in the
1950s 196 they had savings so people are
not you know are overlooking the the
financial collapse that has happened uh
and we're just living off of extra labor
and extra debt but this whole thing is
is is going to implode but you
definitely want to do what you can right
I I can't stop this from happening it
it's pretty much inevitable I could just
brace for the impact of the collapse and
I can protect to the best of my ability
the value of my assets right my savings
I could get them out of Harm's Way I can
get them into quality stocks around the
world get good dividends so that's what
you should do and so you contact me
there at europacific asset management at
europ pac. is the site there's a phone
number there you can you know just call
us up or send us a an email or something
and and somebody will get back to you
and start you know going over uh the way
that we can help you know improve your
portfolio and get it uh in into the
types of uh assets that that did very
well in the 1970s and that I think will
be even do even better in in the decade
ahead I love it brother thank you as
always for your time I really appreciate
it everybody out there if you haven't
already be sure to subscribe and until
next time my friends be legendary take
care peace if you like this conversation
check out this episode to learn more you
could ask yourself what do we celebrate
my income isn't going up as an
individual I'm not making more money but
this guy's got $200 billion the US
doesn't know pain like we have no idea
there's a world where we Embrace
technology where we say we're not going
to be fearful of loss but we're going to