[Music] what the hell is going to happen next we're in for serious trouble the question is are you prepared for it and better question is how do you prepare for it and how do we get through what's about to happen cuz it's one thing to crash but can you survive it and I think we're at the end of the line now I want you to know 25 years ago what Richard was saying was Blasphemous you know it's treasonous how dare we talk about that and the problem is it's true today his books were prophetic you
know I mean they were calling what's coming right now so problem with most people is they're stuck in microeconomic you know they don't see the big picture and I would estimate 90% of Americans just believe you know don't worry America will bounce back Happy Days Are Here Again and as a US Marine you know we called the people who are stuck in the micro economy they got their heads up their asses they can't even see what's happening in the real world so talk to many real State agents here in Arizona oh don't worry you know
interest rates are going up and all this stuff but don't worry Arizona is hot that's true because the people are migrating out of California Chicago New York now Florida they're moving here you know so Arizona is good so on the micro scale these real estate agents are accurate they're going yeah I don't have to worry man I live in Arizona so that's having your head up your ass as far as I'm concerned because you can't see the macro and when you look at the macro the whole world world is collapsing around him and it's going
to be good for Arizona maybe because people will move here and all this stuff let's say that China wax Taiwan well that's good for me and Hawaii because all those Taiwanese will move to either California Arizona or Hawaii so that's micro and macro so let me give a definition of micr you got your head up your ass you better stand around and take a look at what's going on Richard has been to our events and he's taught and people always get blown away because they find out how micro they are so my friend you've been
calling this for a long time the dollar is in crisis isn't it well so our economic system is in crisis and I'm really worried now that we're on the verge of a serious economic crisis that could see the destruction of trillions of dollars of additional wealth before this thing is over give me a break are we corrupt or what has it been corrupted capitalism in my view became corrupted at the fundamental level when we stopped backing dollars with gold yes and to make a long story short this Unleashed an explosion of credit credit absolutely exploded
it total credit or total debt in the United States Grew From $1 trillion when I was three years old in 1964 to 91 trillion now from one to 91 trillion do in my lifetime and during that process that created a great deal of wealth a great deal of economic growth in the United States and all around the world but our economy became addicted to credit growth our economy must have credit growth to stay out of Crisis and now credit is Contracting when you adjust it for inflation so this is a very serious problem for our
economic system which I call creditis rather than capitalism since it's driven by credit growth I want you to pull your head out of your butt and take a look at the world cuz Richard sits in Thailand he's an American he sits out there and he can see the world but Americans can't see past their house you know micro is this you pumping gas into your Le SUV and you're going why is the price of oil going up that's micro I mean they can't see it but inflation I'm afraid is systemic now and a lot of
this because what Richard is talking about is creditis they just print so much money instead of solving the problems they print money and now it's going to backfire on everybody nordstream 2 they torpedoed the pipeline you have the war in the Ukraine the English pound crashed Japan's yen is in serious trouble and I guess North Korea fired some rocket at the Japanese you have inflation being systemic and you have the bricks you know b r i CS Brazil Russia India China South Africa you want take anyone on first of all what happened to the English
pound because that's the I mean you know the guilts and all that other stuff guilts is a Government Bond or something like that from England right that was the second blow we've experienced in the last two weeks what happened there was the new English prime minister and her Finance Minister that announced very large tax cuts very very large tax cuts with a lot of this going to the wealthy people the wealthiest parts of society and that meant that the UK government was going to have to borrow a great deal of additional money just at the
time when the bank of England which had been buying government bonds through its quantitative easing program it was planning to start selling government bonds so suddenly England looked like a third world country its interest rates on its government bonds doubled in about a twoe period they went from 2% on a 10-year government bond yield to 4% normally that would make the currency appreciate but the English pound started dropping like a rock on Monday morning it dropped to 103 to the dollar the lowest in history this huge swings in the currency and more importantly in the
interest rates on the government bonds was so violent and so unprecedented that the UK Pension funds thought that they had cleverly hedged their positions with these derivatives contracts known as liability driven Investments but the moves were so large that the people they had these derivative hedging positions with started calling in their margins they couldn't put up their margins so they got sold out of these hedging positions and it looked like the entire UK pension system the various Pension funds were on the brink of going bankrupt so the bank of England had to jump in and
they intended to start reversing quantitative easing they were going to do quantitative tightening but by the end of the week they reversed course announced they were going to do even more quantitative easing they said they'd buy 65 billion pounds of additional government bonds over the next month or so and that has restored calm temporarily and in fact this injected a bit of euphoria in all the markets because investors hope that since the bank of England reversed course and started loosening monetary policy they hope the FED is going to do the same thing the point here
is this what does it mean to the English people cuz their pensions were about to collapse and the bank of England is the fed the same as our fed when they start printing more money what does that mean inflation or they trying to avoid a depression what were they doing well the first move is to try to avoid a depression that was what they had to do first they had to act as a lender of Last Resort no one else would provide money to support the financial system in England and so England said we'll do
it we'll create a bunch of money and we'll restore order and they did that's been the problem since about 1998 when long-term Capital Management crashed and the FED had to bail out a hedge fund and Jim rickord his question was back then who bails out the fed and I think we're kind of there now who's going to bail out the bank of England and who's going to bail out the fed and all the other the bank of Japan and all these central banks well the central banks have had it very easy for the last three
and a half decades because globalization was extremely deflationary it was pushing down prices and the inflation rate was very low so interest rates were very low so they could get away with printing a whole lot of money without causing High rates of inflation and by printing a lot of money they would buy government bonds and that would Finance government spending and let the government spend a lot of money and stimulate the economy that way so this was a Goldie for three and a half decades but suddenly now globalization is going at least partially into reverse
first we had covid in the supply chain bottlenecks all around the world next thing you know Russia's invaded Ukraine pushing up Energy prices oil prices gas prices wheat prices corn prices another big round of inflation and suddenly the central banks are in Shock because For the First Time in 35 years they have to deal with inflation inflation in the UK is at 10% is 10% in Germany it's practically 10% in the United States and so now if they try to support the economy by printing more money that's going to just fan the inflationary Flames but
if they don't print more money then credit's going to contract and the economy is going to spiral into crisis cuz the English people still have no idea most of them most Americans have no idea what happened and they actually believe the FED can save them but as my friend Jim record says who's going to bail out the FED who's going to bail out the bank of England the central bank system is under crisis also right now and that's what Richard was alluding to 20 something years ago and so the question is next is what's happening
in China I mean they have the biggest bubble in real estate ever right absolutely and well beyond real estate they have excess capacity of everything on a mammoth scale I once was told by a Chinese Professor that in his town the city government had built two beautiful big new Bridges the only thing is they hadn't built the river yet what's going to happen with the Japanese Yen and why is North Korea firing rockets at them the bank of Japan the Japanese Central Bank is determined to keep their interest rates at a very low level even
though interest rates in the United States and everywhere else most other countries are going up very rapidly Japanese interest rates are only one quarter of 1% and the bank of Japan plans to keep them there and they can do that but that means no one's going to want to hold Yen because you can't earn any money if the interest rates 25 basis points they want to sell their Yen and buy dollars because the dollar you can get three and a half% interest so that means the Japanese yen is falling it's at a 20year low and
unless the bank of Japan changes its policy looks like it's going to keep falling I'm fourth generation Japanese American and I was laugh about it because the Japanese per capita of the highest savings rate demographically the highest savings rate of any population and that's why the Japanese aren't the smartest you know I mean why would you save money when when the governments are printing it so that's why in Rich dead Port have put Savers or losers and now American Savers are getting their butts handed to them because they're going to print even more America today
is the biggest de nation in history and the only way we can save the economy is by printing more money they just keep pumping more money into the thing and I think we're at the end of the line you know we're pretty close to it I think and so that's why I own gold mines Silver Mines I own tons of gold but they're still on the ground and I own lot Bitcoin but I came on to bitcoin a little bit late cuz I had to test it so I picked it up at 6,000 so I'm
10 times right now but anyway it's because our money is fake I mean this here is fake and every day people get up and go to work for this crap and then they save it and then they say live debt free when this is debt if you put this in your pocket you put debt in your pocket you put a US bill or treasury note in your pocket I mean that's how people have no idea what's going on so the other thing too then is what do you think about the bricks the Americans can't see
the bricks it's out of their picture Brazil Russia India China South Africa and the belam road project or the Silk Road Project what do you think those guys are up to against the dollar they used to all be very strong and moving together so they could be grouped together under this heading of the bricks but now they're all moving in different directions for different reasons Russia's e econom is in serious trouble because of its ill-advised invasion of Ukraine and it's not doing very well they've got lots of sanctions imposed on them they can't import any
high-tech semiconductors for instance so they're going to run out of weapons so their econom is in crisis and of course as you know I believe that 20 years from now oil is not going to have any value whatsoever and their economy is entirely fueled by their earnings from oil and gas so they're looking at a very dire future in my opinion uh China they have the biggest bubble in history since they have a totalitarian government that make the banks continue lending and continuing to invest their bubble will probably not collapse into any kind of Great
Depression but it's not at all inconceivable that they'll just stop growing the way Japan stopped growing 20 years ago and that'll be a huge change for the world because China's growth has driven the global economy since 2008 when the US stopped playing that role so no growth in China is a very big deal India has better prospects because it's a little war friendly with the United States and a lot of companies now realize that they' probably better move their factories out of China which the United States is coming increasingly hostile toward and move it somewhere
safer with a lot of lowcost Labor like India prospects are the best among the bricks in my opinion and let me give one more point out there they um for all you guys who are working from home right now your uh job replacement lives in India today because if you can you can come in in via the computer and you don't need to go to the office cuz you don't want to go to the office like many workers don't then guys like me are going to say well why don't I just hire somebody in India
because that's what technology is doing the problem with most people and I see it every day micro means that you got your head up your butt and you can't see anything outside of your neighborhood or your gas pump what's going on throughout the world people cannot see it cuz it's out of sight if you're prepared for what's about to happen or what is happening today it's good news but if you're not prepared you're going to get your butt handed to you the reason this is important cuz we're crashing like it or not you know I'm
a marine pilot I went down three times and the question is not if you're going to crash the question is will you survive the crash and that's what I loved about the Marine Corps we practice crashing every single day and so when the three times that happened in Vietnam we survived so today you know I'm making more money hand over fist but unfortunately the rest of the world's going broke you know like I went to school my background is oil I drive oil tankers for standard oil and so today I own oil wells I don't
own oil stocks and when Biden cut off the Keystone XL pipeline the First Act he did was Act of sabotage but Biden did in my opinion I was selling oil at $30 a barrel immediately when he cut that off it went to 130 a barrel meanwhile the middle class and poor got poor and guys like me got richer and that's what I mean about rich dad's prophecy if you prepare you'll come out okay but you got your microw watch and you got your head up your butt thinking oh the fed's going to save me America's
the greatest I don't have to worry I got a pension I got a 401k I'll take laps around the rosary beads tonight so just as Biden cut off the Keystone XL pipeline which ran from Canada to America re recently the nordstream 2 the pipeline running out of Russia was torpedoed was bombed and within 200 ft of water I mean the charge to blow that thing up I mean God God you know I'm a marine I fought and all this stuff but I wouldn't know how to blow up a pipeline you know what I mean that
is really really big but the question is what does it mean what's the significance like Biden cutting off the Keystone XL pipeline in America which is an act of treason in my opinion and then the nordstream 2 pipeline gets demolished intentionally and it's Russia's major source of income is exporting power or energy there's no hard evidence about who did it so this is purely speculation on my part but if I had to guess I believe that Russia blew them up it was not just northstream 2 which hasn't begun operating yet it was also North stream
one both of them got blown up the same day nearly the same time northstream 2 hadn't started pumping any gas ship but North stream 1 had been pumping gas for a very long time until recently recently Putin stopped all the gas going through northstream 1 so there was no gas going to Europe from Russia through northstream 1 or northstream 2 and the day that they blew up was the day or the day before that a new pipeline opened between Norway and Germany that's going to supply a great deal of gas from Norway to Europe this
winter and I believe that by blowing up these Pipelines which were doing Russia no good anyway because they weren't pumping any gas anymore he was sending a signal that he could blow up the Norwegian pipeline to Germany as well and if he did that then it will be a very cold winter for the Europeans and they won't be able to run their factories and so their economy will have a very severe crisis so that seems to be the message he was sending you know of course he's also threatening to use nuclear weapons which is the
most frightening statements I've seen coming out of any world leader since I was a child right we're back I mean historically every time there's inflation despots rise like Stalin and Hitler and Ma and all those guys rise out of hyperinflation and things like this if China's in trouble and you know Russia hit Ukraine what are the odds of China going after Taiwan it's a possibility it would lead to a war between the United States and China and at the very least it would result in an economic Calamity in China because China's Trade Surplus with the
United States the amount Goods China sells to the us over and above the amount the US sells to China is more than $1 billion every day more than $400 billion a year that they would lose overnight and never to recover if they invade Taiwan so that's a very big incentive for them not to do it because unemployment would go up it would cause social instability that also end up having some of their cities direct and the Communist Party might be overthrown so that's probably the biggest reason they're not going to do it this decade well
talking to real estate agents are going oh I don't have to worry Arizona's hot well good because people are migrating here but where they migrating from is another issue and what's happening to interest rates this guy Jay Powell he has to stop inflation because inflation is now systemic it means it's now going to keep going and the more inflation runs it's like the person standing at the pump pumping gas into their leas SUV worried about their job and the price of oils going up they're micro they cannot see past their butt can Powell J Powell
the head of the fed us fed can he stop inflation he can if he increases interest rates high enough and all hell broke out two weeks ago when pal put out the fed's new projections for how high they would increase interest rates this was a radical adjustment upward in their projections for how high they're going to increase interest rates just over the next few months that caused a big selloff in the stock market the dollar got a lot stronger that caused problems for the UK pound and all hell broke loose in the financial markets and
on top of that not only are they hiking interest rates but at the same time they're reversing quantitative easing instead of creating money they're now destroying $95 billion every month us F's doing this that's right multiply that times 12 months and that's going to be $1.1 trillion the don't exist one year from now that exists today that's about 133% of all the dollars as long as the FED is carrying out quantitative tightening or destroying dollars like that it's very likely that asset prices are going to keep falling because all the asset prices are floating on
this ocean of liquidity that the FED is now draining so it's like a bathtub the bathtub is being drained of water and all the asset prices are going down that means that their real estate is going to come down because there fewer Buy I was at a major Bank yesterday the bank was empty you know why it was empty cuz they don't need loan officers the biggest layoffs are coming in A banks right now because Banks cannot loan money CU people cannot afford to borrow that was yesterday all the asset classes are likely to fall
together in the past it didn't work like that stocks would go up and bonds would go down and vice versa but today they all move up and down together because they're all floating on this ocean of liquidity that the FED is now draining so as long as the FED keeps draining liquidity through quantitative tightening all of the asset classes are likely to fall together Times Like These are not times to make a great deal of money this might be a good time to start thinking about improving your business creating your own business getting into business
for yourself something you can control building up your own business and worrying less about speculating in speculative assets and the hope that they'll go higher in the near term because they're probably going lower there will be a day when things turn around last year I was very bullish on the stock market because the Fed was creating $120 billion every month and pumping into the markets and as long as that carried on it was clear asset prices would probably keep moving higher but now the reverse is happening so it's not at all surprising that this stock
markets are down between 20 and 30% so far this year they probably have significantly further to fall property prices are probably going to start falling at a double digit rate by the middle of next year and things are not going to turn around for a while and today they're crck in and their housing their 401K is probably crashing if they just stop printing then things would more or less be leveled but they're actually destroying money now you can say they're unpr money at the rate of $95 billion a month and when they do that they
have these bonds that the government has issued when they mature the FED takes the money from the government then the government has to get money from somewhere else from the public and that reduces the amount of money that exists in the economy and so with less money that pushes up interest rates that makes the bond prices go down and the interest rates the bond yields go up so quantitative tightening is another way of tightening monetary policy and pushing up interest rates and making it more expensive for people to borrow and consume or borrow and invest
if I have a bond that was paying 5% but the new Bond is 8% what does that do with the value of the bond it pushes it down right because no one is going to want to own the bond that's yielding 5% if the new bonds they can buy yielding 8% so it causes the price of the old bond to fall until its equivalent yield also comes into line if it falls enough then the yield would be 8% on that Bond as well what Richard is saying is so important is because Wall Street for years
has been selling 6040 60% Equity 40% bonds and they're all dropping you know it's all dropping right now and today I own gold mines Silver Mines I own real oil I don't have oil stocks I own cattle I own everything the FED cannot print so remember when they say Bank of England and they say the FED they're the same things and the English pound nearly took it and the reason they had to start printing again which is causing more inflation for the English people is that the pensions are going to collapse the same thing is
going to happen to America cuz it's already happened people don't know that so ladies and gentlemen this is the most dangerous time in world history but let me give you some bright news in the Marine Corps before I went to Vietnam our station at camp pedon where were Advanced weapons you know guns and Rockets machine guns and all this stuff we had to practice crashing three times a day now crashing on empty helicopter is different than crashing a helicopter with guns Rockets machine guns and ammunition on board but we practiced and we practiced and we
practiced so when it came three times in Vietnam cuz the odds were you know my life expectancy as a marine pilot Gunship pilot was 30 days we didn't live very long so if we practice crashing we just surviving so I went down three times and my crew and I came back home back in 1973 only to get spit on hit by eggs by the Kami pinkle hippies from the Woodstock generation here we are today and there's no Financial education in our schools well the world is crashing I don't know if people understand that because in
1971 Nixon took the dollar off the gold standard 19 44 during the Breton Woods agreement the dollar became the reserve currency of the world but we made a promise to the world that the US dollar would be as good as gold the trouble is as Andy sheckman talks about in all this is that we started fighting the war in Vietnam and the war on poverty in America socialism and we didn't have enough money so we broke the Breton Woods agreement in 1971 Nixon took us off the gold standard and that was the corruption of capitalism
they could print money rather than make work for money so ladies and gentlemen we're screwed prepare for the crash and remember micro means pull your head out of your butt
