10.12.22: Audio automatically transcribed by Sonix

10.12.22: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.

Producer:
This is Another Money Show. Get set for another hour of the latest financial information and economic news affecting your bottom line. J.R. and Anthony are committed to helping more Americans like you optimize their income, reduce their tax risk, and reach financial freedom. So let's start the show. Here are your hosts, Anthony Carrao and J.R. Rotchford.

Anthony Carrao:
Here we are, your hosts, Anthony Carrao and J.R. Rotchford, taking a break from our day-to-day as financial advisors with Rotchford and Associates, a fully independent fourth-generation family office right here in the greater Phoenix area. Have this show to bring you information. You may not hear from those other financial shows. We're aware the last thing you need is another money show. That's why it's very much a sarcastic name to this show, because I feel like the things that we bring up are not not normal. And we are here with Sam Davis today. Our producer is back. J.R. is out of town right now. He is up in Snowflake. And I know we've talked about that a bunch of times when we talk about being prepared and things might be weird. J.R. loves talking about getting out of town. So this was his excuse to get away for a little bit this week.

Producer:
Yeah, well, we're definitely going to miss J.R. I'm always excited to be back on the air with my guys, even though it's just you today. Anthony, out there in Phoenix on 960, The Patriot. And, you know, sometimes people miss part of episodes when they're on the air and they may have missed past episodes. So if you're listening, you may not know that all of Anthony and JR's episodes are actually archived on their podcast feed. So you can find another money show wherever you listen to podcasts and you can actually subscribe there. So even if you're out of town one week, they'll notify you that the new episode has been posted and you can take a listen kind of on demand whenever you want.

Anthony Carrao:
See, this is why we need you. You're the radio expert that flowed so well. It's like you knew exactly what you're doing. Unlike us, we get up on the air, we know how to look at statements and we know how to financial advice. But this whole radio thing is still new to us, but we're loving it.

Producer:
Well, it just comes down to experience. Anthony I've done this so many times, just like you've helped clients before, so many times. Unlike some of the other guys. I know you saw a commercial over the weekend that kind of rubbed you the wrong way. Maybe another financial advertiser out there.

Anthony Carrao:
Oh yeah. What a great transition to bring us into this, because Sam and I always chat a little bit before we get on the air. And this one, it gets me every time I see these commercials because you talk about fake news, right? And misinformation. Well, it's not that all the information is wrong. It's that it's manipulated in a way to make you think a certain way. It's made to set people apart. I mean, that's what advertising is, right? I mean, we're here trying to advertise and try to set us apart, but it just it bothers me so much. So in this commercial, it has you know, it's the other guy's talking to this financial firm and it starts off with, don't you just go with the flow? Aren't you just advising the same way as everybody else? And their response to that is, well, we actually manage our portfolios with a forward looking views. Isn't that everybody, every single financial advisor out there is doing their sort of version of looking forward and the at the future is going to hold without a crystal ball. And they say that as if they're setting themselves apart. But I don't think they are. I think a lot of these firms are doing the exact same thing. It's that rule of 100 get into bonds for safety, buy the dips. But like what we talk about on this show, none of these advisors are ever telling you to sell the peaks. If there's a great opportunity to buy the dips, where is that money coming from? Now it's just me going back to you and the client.

Anthony Carrao:
Now is a good time to invest. Give me more money. Or where would you as the advisor to get this more money? Why aren't you capitalizing on our gains? You know, we bring this up before in normal markets you can sector rotate in times of growth and stability. In times of downturn in the market. There are certain sectors that make sense to invest in. But right now we're in a bubble where everything goes up together and everything falls together for the most part. So nothing is safe when everything's falling. If you talk about 2008, you've got to remember 2008, right? Housing destroyed everything. It was housing that brought down the collapse of the economy, the collapse of the stock market. But at that time, bond rates were reasonable. It was normal interest rates at that time. So what happened is the stock market crashes. Right? We're all aware of that. But how do you safeguard yourself? Well, then you move into bonds. And what happened with bonds is as a way to stimulate the economy, the Fed dropped interest rates to practically zero when interest rates fall. Bond prices rise. So they just skyrocketed everything in the bond. So if you went safer in that timeframe before the Fed dropped rates, you were making money. That was a different sector that you can go to in 2000. So right now, fast forward 14 years later, we've had almost nothing but an insane, massive run up in the market. Year to date, we're down. What did you say? 25% approximately?

Producer:
Yeah, it definitely depends on when you're listening to this. But as of Wednesday, the 12th, yeah, we're down about 25 and.

Anthony Carrao:
That we're on Wednesdays now or. Yeah, not Tuesdays, you're down 25% S&P year to date as of today, but you still had 13 years of growth, like you've still made massive amounts of money. So to sit here and complain about this 25% down, you never should have probably been to this point in the first place. With reasonable growth. You shouldn't be even at this 25% level. You know, the Dow Jones in the peak of what was it, the dot com bubble was about 15,000. Sam, can you pull that up and check, confirm and again, not exact numbers, a bit about 15,000 drops after the dot com bubble grows again to about 15,000. In 2008, right before that bubble burst. Right. S&p lost about 57%. Well, now, where are we at today? If I'm looking at the Dow Jones right now? We are just we're at 29 four, essentially. So we're more than double what it was in those peaks. So even if you have peak bubble growth, should you be at where we're at now? And the answer is no. So why is God channeling my inner J.R..? Because he's not here to rant. So I guess that falls on my shoulder. So the difference between 2008 and how you could not necessarily sector rotate, but you can move to bonds and find some growth. The Fed has kept rates at zero since 2008. Because. Why? Because we got used to all this fake money. We got used to people being able to borrow money for absolutely nothing and then inflating their stock prices.

Anthony Carrao:
And in Q4 of. Was it 2018, the Fed started to try to raise their rates again and the market threw a hissy fit and they kept them back down. So what happens when you have. 2020 happens and there's a virus and a shutdown and the market tanks 20 30% in one month. Well, what do you do? Well, they were out of ammo, so they printed an insane amount of money. Right. 40% of the money in circulation from print in the last couple of years. So they print all this money? Well, when you increase the money supply without increasing the demand, what do you do? You create inflation. Now, it took a while for it to hit us, but it is here. So we're in this bubble. The markets falling. Bonds typically should be your safer bet. Well, they left interest rates at zero. Well, if they left the interest rates at zero, that means they can only go one way and they can only go up. And if they go up, there's an inverse relationship. So now your bonds are taken. So now the market's tanking, bonds are taking. Where do you go from here? So we'll talk about some solutions a little bit later in the show. But now I'm just going to kind of go on this rant because I went off on I didn't even talk about the rest of the commercial.

Producer:
That's all right.

Anthony Carrao:
The things that I'm really upset about, that was the first little segment about this commercial. So. Right. So this this advertiser advertisement for another investment firm saying, you know, we actively manage our portfolios with forward looking views. I mean, get out of here. So the next little bit of the segment. Well, don't you still sell investments for high commissions? Aren't you one of those people? And their response is, No, we are not one of those people. We don't sell commission products. Were fiduciary obligated to act in the client's best interest. I obligated you? Are you kidding me?

Producer:
A plumber doesn't say I'm obligated to fix this leak when he shows up. That's the expectation.

Anthony Carrao:
That's their job. And to shine this light in. Oh, my God. The way they use fiduciary as a buzzword. What a joke. Because, one, you're either doing what's right for the client or you're not. There's so many different ways around it, and these fiduciary rules only apply to quality qualitative qualified funds. Or what are qualified funds we'll call qualified funds is money in your IRA and your Roth and your 401. K, you're for 57. All of these retirement tax codes that's considered qualified money. Non qualified money is stuff like in your bank or if you open up a personal TD Ameritrade account or one of these brokerage firms and you're just you're funding it with bank money you're paying gains on your anything you sell as it comes. It's not tax deferred that's not qualified money. So to say that I'm a fiduciary by law and I'm obligated to really is just talking about that side of the fence. Now, what they're saying when they're talking about being a fiduciary in that sense is it's assets under management. It's a series. Was it series 65? It's the same thing our office does. We're fiduciary in the money we manage in the stock market, meaning we're not getting paid commissions each time we sell them, buy and sell product.

Anthony Carrao:
However we are getting paid. And are we obligated to do things in your best interest? I mean, by law, I guess. I mean, you could you can say that you can pretend to use that as a marketing scheme, but people that are going to take care of themselves as an adviser are going to that's what they're going to do. Whether you put these laws in place, you know, bad actors are going to be bad actors. So there's more to this commercial, there's more to the fiduciary. There's apparently I'm just going to rant about this commercial for the rest of this show. We've got some new stories and things we want to talk about. I'm going to get to that. I want to catch up on some stories from the past. But for right now, we're going to take a break. In the meantime, like Sam said, you can find us Another Money Show anywhere you listen to podcasts, you can find us online at AnotherMoneyShow.com. Reach out to us directly if you have questions, concerns, anything we say, anything we reference. If you want specifics, reach out team@anothermoneyshow.com And we will be right back.

Producer:
Remember all of JR and Anthony's listeners receive a free financial consultation just for listening to the show. Visit AnotherMoneyShow.com To learn more and schedule an appointment. Thanks for listening to another money show and subscribing wherever you listen to podcasts.

Producer:
Another weekend, another money show. Visit AnotherMoneyShow.com.

Anthony Carrao:
All right. You are back listening to Another Money Show with myself, Anthony Correo. We also have Sam Davis, our producer, on filling in for J.R. who is out. So not just our great producer, but also an awesome co host. And help me lead into this next segment. So if you're listening before we're talking about a money management commercial that was airing and just kind of the obnoxiousness of it, essentially they're trying to advertise how they are so different than everybody else, but by advertising that they're pretty much the exact same as everybody else. It's clever marketing. I mean, if it works for them, good for them. But let me just dissect this a little bit. In the commercial, they're saying, you know, don't you sell high commission investments? Isn't that how you make a living? Aren't you just like everybody else? And they're like, Oh, no, no. We separate ourselves from the pack because we are douches who are obligated to act in the client's best interest. And the fact that they even said obligated I still think is hilarious because that shouldn't be something that has to be stated. That's just something that you should do. So just talking about the fiduciary rules that have been coming out and how it's for qualified money and not for non qualified bank money, but also fiduciary this assets under management.

Anthony Carrao:
The series 65, the managed money, it's the same thing that our office does. A lot of offices have moved to that where there's not commission based fees for buying and selling. It's an overall fee for what you're managing and we've seen them anywhere from one and a quarter to one and a half. Some tried to do lower, but then there's other miscellaneous fees out there. Our office, we try to keep the fees as low as we can. Everybody says that. So don't take our word for us, you know, reach out and we can talk to you about your personal situation, because of course, everybody says that. But when you're a fiduciary with an assets under management license, what you're doing is you're not paying the commissions for buying and selling. All of that gets taken care of the fee over anything, your management annual fee. But what the sales tactic here is, is to say that depending on how you do, I do better. So I want to do better for you so that I make more money too. So that's the next part of this commercial. So when you make money, you're only making more money.

Anthony Carrao:
If your clients make more money and they say, Yep, we do better. When our clients do better, our fees are structured so that when our clients do better, we do better. The fees are structured so that advisors are being paid regardless. I am going to make money regardless of whether or not you just lost 25% year to date. You may have just lost a quarter of your funds and that might have put you in a terrible financial position. But I'm going to get paid. So do I get paid better or paid more if you do better? Absolutely I do. But I get paid if you do. Terrible, too. It's no difference there. Investment firm. Our investment firm. It does not matter if if your advisor is making money assets under management, they're making money regardless. So this sale tactic as we only do better if you do better, it's just kind of ridiculous. And this all started with misinformation, right? Because you hear the term fake news all the time. Misinformation. It's not necessarily wrong information. It's just how do you interpret it. And that started from a news article I read today about PayPal. Have you heard about that, Sam?

Producer:
I've only heard a little bit something about a $2,500 fine, but fill me in.

Anthony Carrao:
So in their privacy statements, their terms and conditions, all that very small print that nobody actually reads, apparently PayPal had in there a $20,500 fine for misinformation. And there's been a ton of backlash on that. So they they came out, they said it's in error. Of course, they're going to say it's an error. You get that kind of backlash. And what does that even mean, that that's going to be $2,500 for missing from your PayPal. You transact money between companies. How do they justify that, where this error came from? Who knows? It just it doesn't make sense. We've talked about in the past the banks in China, and we talk about bail ins all the time. And we said, you know, this is something that we could be seeing in China. Again, it's not in America, but things transfer. This is a global economy. Now, if it can happen elsewhere, it can happen here, too. And in that story, thousands and thousands of people have lost access to their money in the banks in some of these smaller towns and these smaller community banks. Well, it's been really hard to find updated information on their. The latest news is from a few weeks ago, but 234 people have been arrested in that. And this isn't a bail in in this in the sense of what we've been talking about. This was just a flat out fraud case. So it'd be like you go into your bank depositing money and thinking that the bank is taking your money and put it into your account. Instead, they're just sending it offshore. The CEO, I think, got arrested. It became a national in Cyprus, Cyprus, Cyprus to try to get on. In the radar. No real new news from that one. Another story that we brought up and part of J.R.. keeps talking about October 9th. That's when everything hits the fan day. He moved it up from January 1st, 2023. And part of that was stuff that he was.

Producer:
Sorry, I got to get that one down on my calendar. Can we give that date again? JR's magical date.

Anthony Carrao:
Oh, it was October 9th, so we've already passed it. So we'll see. See what happens. Now, I know he moved it up. He was saying January 1st, he said next year, but I keep getting it on him for I was like, Where have you been picking dates? I was like, We're in the middle of whatever's going to happen now. So it's just to what degree and when does it become exponentially worse and not even when it becomes exponentially worse because things are already bad and they have no good trajectory without more manipulation, without making things worse and kicking the can down the line. Like we really just need to feel this grunt now. Things are already bad. The difference is are we going to continue to keep our head in the sand? At what point do we feel it? And you had a great saying, but you talked about putting your head in the sand and you're like, Well, at that point, I mean, just dig a bigger hole. I still think it's hilarious.

Producer:
Yeah. I mean, if you're going to ignore I mean, I feel like we all make these little choices, right? Like we have the extra slice of cake. We know it's not good for us, but we want it. We're going to have it anyway. And I feel like people do that with other advice they hear that's good for them, even about their finances. They know that I should probably do this. It's probably good for me, but that would take work. I'd have to do something now. Why would I do that? Future me will never come to regret this. But then when future me comes, they might be a little disappointed and pass me.

Anthony Carrao:
Now. Do you take responsibility for past you actions at that time, or do you kick the can down the line? Because right now we're just kicking the can. We are really severely screwing over future Sam right now. And future future Sam is going to be even worse position.

Producer:
And I want to pick my own date for where it all goes downhill as well, just so I can be on the board with J.R... You said J.R.. is on the board. October 9th is the date. It all goes downhill.

Anthony Carrao:
Yeah, his he had moved his date up to October 9th, and I think his reasoning for that has to do with executive order 14067. And we will we'll talk about that a little bit later. But part of that, too, was this story about the Vatican. And the Vatican asked, Catholic Church is pretty massive, right? People are familiar with the size and the fortune that this church has. They've asked that all of their money be moved back into the Vatican. So you empty out all your bank accounts you have across the world, move all the money back. It started in the beginning in September. It was you know, they asked for it by the beginning of October. It was a pretty big story at the time. But it's kind of like everything else is falling under the radar. And I've tried to do more research on it, and I still don't really know why what the reasoning is. Before that, the only thing I can find is that there is a massive lawsuit going on inside the Vatican Church that I had no idea about.

Producer:
This sounds like a really good premise for a heist movie. So the Catholic Church and the Vatican, they move all of their their funds. They've got not just all their valuable artwork and the architecture in Saint Peter's Square, but now they've got all of their securities and funds at the Vatican. And it's going to be like an ocean situation.

Anthony Carrao:
And it wasn't stealing in the Fast and Furious series. So it's going to be half Da Vinci Code, half fast and furious. All right. So when we come back, we will talk about a little bit more news stories, things to kind of bring you aware of that you might not be hearing elsewhere. In the meantime, you can find us AnotherMoneyShow.com reach out to us directly at team at AnotherMoneyShow.com. We say a lot of different things we love having sources so if you want to call bluff reach out to us and we will send you those to you. We'll be right back.

Producer:
You're listening to Another Money Show. To learn more and contact J.R. and Anthony, visit AnotherMoneyShow.com. You're listening to Another Money Show.

Anthony Carrao:
All right. We're back with Another Money Show. Your host, Anthony Corrao, producer and co-host today, Sam Davis. And we were talking about the Vatican and how we're going to make a sweet movie franchise about all of their treasures and how they're moving all of their assets to to the Vatican so we can have a big heist movie series coming out of this. But the moral of that story was just it's something strange. We talk about the ten pillars a lot in the show, especially early episodes. It's been a while since we brought him up, but the ten pillars were things that we're watching for outside of just traditional financial planning, because, again, traditional financial planning is easy. It's simple. There are rules. You know, again, we talk about that commercial, the other financial firm talking about how they're they're forward thinking. Yeah, okay. But everything we see out there, for the most part, it's all the same. It doesn't matter what firm you're at. A lot of these are the same because it's the old rules from hundreds of years ago. Rule 100 Rule of 72 Switch to bonds if you want to be safe or go from you know, God was the other one. The rule of four 4%, the 4% rule and you live off in your retirement. I mean, even that one, the guy who created that rule is like, yeah, that's not really a thing anymore.

Producer:
Yeah, I actually read a study this week that said that when that was sort of established, that was a reasonable thing. But due to recent inflation, you're looking more at like 2.4% if you want a safe percentage of your assets to live on. So I mean, even if you have $1,000,000, you have to find a way to live off of 24,000 plus whatever your Social Security is, That's really tough to do in America today. Most places on the map. So, yeah, that's just not going to cut it anymore.

Anthony Carrao:
And what's the future of Social Security going to be? We bring that up all the time on the show. I mean, there they put it in their plans that they're either going to raise taxes from 3 to 15%, they're going to cut it 25% across the board for people who haven't taken it or cut it by 21% for even those that are taking it now. So if you're on Social Security, listen into this. With the prices and everything increasing with inflation, could you imagine your Social Security being cut by 21%? What's something you have to consider? Because it's something that could happen. They're insolvent. This country has no money. None of these have none of these big institutions. Government institutions have money. So, oh, we're talking about the ten pillars. So that's standard financial planning. Everybody's kind of doing the same thing. But we're looking for black swan events. We're looking at things that other people aren't looking at because everything is financially related. Everything affects your money. So, I mean, some of these we talk about the Templars again, debt and deficit, financial markets, taxes. I mean, these are all kind of standard inflation. We've been talking about the potential of inflation for years. I mean, it's finally here, but that's something that we've been had our eyes on for a while.

Anthony Carrao:
Health care, unfunded and underfunded liabilities, talking about Social Security being broken, talking about pensions being broke. And we're going to talk about the Bank of England and a little bit the erosion of the middle class social media. I mean, Trump's tweets, Elon Musk's tweets about potentially buying Twitter and how that jumped up stock prices. And we had people hit us up about whether or not Twitter was a smart investment because some tech billionaire decided he was going to buy it. What is that change in the company? What you know, these tweets affect the market. Now, that's not something they had to deal with in the nineties, the eighties, you know, the 1920s, geopolitical missteps, you know, Ukraine, Russia, all the fighting going on over there. What about internally? Could some of that lead to a civil war? So we're watching for all of these things. So the Vatican, again, maybe that's not a huge news story. Maybe that's not anything that will affect us at all. Maybe it's not something that will matter, but we don't know that. And that's why we need to be aware and we need to share that information on to you.

Anthony Carrao:
So all the information I've done, I mean, it's just strange. It's just strange that they're pulling all of their money from across the globe because they have enough money to impact markets, impact governments and make a difference. So what I've found, though, is that there's a massive lawsuit, a London real estate deal. It seems like a lot of internal people were you know, it became like a fraud case. They were skimming money off the top. So there's not a ton of details on it, but. It sounds like they're rebalancing their books. And maybe that's why the move to the Vatican and getting everything in one spot is to kind of get everything back under control. Again, I don't know. But those are the types of stories that we're following here. We're running at a time right now. I didn't realize how long we win on that one, but we're going to talk about H.R. 9157. After this break. We're going to talk about who's introducing this bill, what it is, and what that could potentially mean for you in the meantime. Find us at AnotherMoneyShow.com or listen to Another Money Show wherever you subscribe to podcasts We'll be right back.

Producer:
You're listening to Another Money Show. To learn more and contact J.R. and Anthony, visit AnotherMoneyShow.com.

Producer:
This is Another Money Show. Except this one's different. This one will actually keep you awake.

Anthony Carrao:
All right. We are back listening to Another Money Show. Your host Anthony Carrao, our producer, Sam Davis, and co host for today. Right before the break, we mentioned H.R. 9157. This is the gold Standard Restoration Act. It's new. It hasn't been voted on. I mean, this, I think, just came out over the last couple of days. This was introduced by Alex Mooney, Alex Mooney of West Virginia. And the basics, right, are getting back to a gold standard. I mean, we're losing a ton to inflation right now. This is a massive problem. Printing money, I mean, has been a problem for a very long time. But now we're really actually feeling the effects of it. So his mindset is to if we go back to the gold standard, we can control that. We can't increase this massive money supply. We can't continue to increase our massive government debts. It's a way to pull back on that. And so for that, I applaud him. I mean, the beginning of this sates that the Federal Reserve lost more than 30% of its purchasing power since 2000, since the creation in 1913, it's now 97%. I mean, we talk about world reserve currencies and how they run their course. Typically between 80 and 120 years is the average, and we're definitely in that. So what happens to this currency? Who knows? But historically, something's ah, something's going to change, you know? Sam, what do you think? This is a good idea? You think we can go back to a gold standard?

Producer:
I'm not sure if we can. You know, we did do it in the past, and then I think it was around 1860 or something that Lincoln moved the country to the silver standard sometime around there, just because there wasn't enough gold to really provide the amount of currency, the growing population and a growing country needed. You know, I think what's more likely to happen is that we're too far close to the digital currency or accelerating so quickly towards that. That's going to be tough to to have any sort of drastic maneuver in the other direction.

Anthony Carrao:
Oh, 100% agree. I mean, I, I love where this guy's head's at, but we are way, way too far gone. I mean, since we started recording this show or not today, but we started kind of towards the beginning of the year, we were 30 trillion in debt. Now we're over 31 trillion in debt, just growing exponentially. And truthfully, truthfully, we're actually way higher in that. But if you get to 31, you're essentially cancelling out what our assets are as a country. So something else in this air bill that Mr. Mooney is trying to pass was basically trying to do a full transparency to that says, you know, if there's purchasing anything that we use these gold bills for, there has to be transparency there, which is wonderful. I love the thought of it, but we're kind of we're kind of there now. And not that there's full transparency and I definitely think things hide under the radar, but I am pleasantly surprised. The more I dig in, the more I'm able to actually find. So when we talk about transparency, last night, I was able to pull the balance sheet from the country. You can just go on Treasury dot gov and you can look at their balance sheet. And that's what blew my mind is the assets that we have are under 5 trillion. We only have less than 5 trillion in assets yet our debt is, you know, this was from 2021, but our total liabilities were 34 trillion, 34.7.

Anthony Carrao:
So to say, 31.1, that's after you take out everything else that we actually have as an asset. So that's just what we on top. So that's not even our debt total because it'd be one thing if I said I had $200,000 in debt for a home, but I have $100,000 in the bank. You would say. You know, you have that 200,000 that is your your total debt, not your net worth. So our net worth is really this -31 trillion. That's not just debt, because that's already taking out our assets. So it's way worse than we could imagine. What is that number that derivatives that's we need to do another show on that. So sorry for those that you that are just listing not seeing this video but Sam's got the the US debt clock, which is something else that's super easy to pull up. But you look at these numbers and it's a lot of red, it's a lot of negative. None of this stuff is good, so. This air bill. I love the thought of it, but like Sam said, we also have Executive Order 14067. This was signed by President Biden in March, I believe, but essentially it's given way to there being a digital currency. I mean, I love the thought again of there being a gold standard to try to stop all this manipulation, But we're way past the point of no return. It's done. So cryptocurrencies is going to make things way simpler for the government to manipulate our money.

Anthony Carrao:
I don't know if we brought it up last week, but in China they've got the digital yuan yen when and I don't know how to pronounce it, but they're talking about the expiration dates on it soon. Savings could be a thing. In the past you may have to spend the money to force the economy to start moving. You may not be able to save for a rainy day if they expire your money and you have to spend it. That's what creates GDP. That's what builds an economy, the supply and demand. So there's a lot of changes going on in this country. And to say that there's no chance of a digital currency, I mean, you know, the Fed for a long time said that it wasn't going to happen. It was going to take too much. You know, they're just running simulations then pretty much overnight. They're like, okay, no, we actually we are working on this now. We've got this executive order that pretty much says, Yeah, this is the way of the future. So we've got all these cryptocurrencies, Bitcoin, Ethereum, everything, and people think that this is going to be what's taken over. Do you honestly believe that the government is going to allow these offshoot currencies once they have their own digital dollar, once they have something that they control? I mean, I don't see it happening. Some people think that one of them might be adopted as the next currency.

Anthony Carrao:
I don't see that either. I don't see the Fed ever losing control and their grip on what they've got going. You know, the Fed also, right when it comes to inflation, the Fed says that we're aiming for a soft landing. Charles Evans of the Chicago Fed just recently said that they're going to raise rates at any cost, even if it affects the economy. Right. You really can't trust what any of these people say because they're lying and they're just trying to keep everything, you know, trying to keep you calm so there's not an uprising. But they obviously didn't really care about inflation because if they cared, instead they announced for months and months that they were probably going to raise rates. They were probably going to raise rates. Well, if they really cared, they could have just raised it. They didn't have to announce that they were going to. They could have. They also could have raised it significantly higher like they've done in the past. But they're not. Again, we've built ourselves such a bubble and backed ourselves into such a corner that the Fed had no ammunition when they started printing all this money when March of 2020 happened and COVID and that massive drop. You know, they only had one way to raise rates, and that was up unless you get into negatives. I mean, truly, what they should have done is what they did in 2008, which was drop rates, but they never raised it to a point where they could drop rates.

Anthony Carrao:
They were already practically zero. They have no ammunition. So what happens in the future? Still not really sure. Going back to Black Swan events, the ten pillars, the stuff going on in England right now, I want to start this off by saying. You know, I get told every time. It always comes back. It always comes back. You don't have to worry about a drop in the market because it always comes back and that this time is different. The Bank of England right now just bought up an insane amount of their version of the Treasuries to keep the pension funds there from failing. So they've tried to bail them out. The quantitative easing, this is something we did in this country a few years ago. We're feeling all these consequences now. Obviously, it didn't work. So they're doing all this to raise the pensions. What happens if the pensions fail there? I mean, that's going to be massive. Again, this is Bank of England. That can't happen on our shores. That can't happen here. Well, we've had entire episodes dedicated to the pension funds here. Know, let me see if I can find that paperwork. But we had. The man who runs the Public Benefit Guaranty Corporation. So what this is, is for private funds, right? We already know Social Security's bankrupt. You know, they have no money. They're insolvent the next couple of years. So now let's start looking at private pensions.

Anthony Carrao:
Right. How are they doing? And this is their version of the FDIC. They were in the negatives deep. They were 68 billion or 64 billion, I'm sorry, in the hole. And then with one of these massive stimulus bills that the government passed and all of a sudden they're about half a billion up. Well, that's fake money. They took it from one and gave to another. We're just building up our debt as a country itself to feed other things that are failing. So we really want to be watching the Bank of England closely what's happening there, because we could be right behind them and that could be devastate. I mean, could you imagine people losing out their pensions in this country at a massive level? I mean, it's happened before in smaller cities, you know, even larger cities, but it's happened in individual municipalities. Imagine that starts happening here on such a grander scale. You know, to say this time is different. We talk about the market. It'll just come back. Right? We're down 25%. It'll come back. It'll come back. And the dotcom bubble, It did. It came back. It took about eight years in 2008 it took less than that. In 2020 it dropped a massive percent month and came back significantly less than that again because of all this printed money. But to say this time is different and it always comes up, Well, how much time do you have? Japan, right? Not a third world country. Japan also the number one foreign holder in US debt, by the way.

Anthony Carrao:
They hold about 1.3, 1.2 trillion of our debt. China's number two at 970 billion, according to July 22. So their market dropped in 91, just came back in 2020. And again, you say this is a foreign country. It can't happen here. We forget about the Great Depression. The Great Depression did happen here and maybe affected your parents, your grandparents, depending on your age. That's a real possibility. And that that dropped in. 1929. We're almost 100 years away. That one took 30 years to come back as well. 1959 is when that came back. So let me ask you, if we've built this bubble, if we're out of ammunition in this market, drops 80, 90% again, do you have 30 years for it to come back? Because it always comes back, right? But do you have those 30 years? So if you don't reach out to us at team at another Money show, we can help you with your personal situation. We can help give you solutions. You have to be aware that these things can happen and they can happen in the very near future. So that is it for our show. Appreciate you listening to Another Money Show. Again, you can find us at AnotherMoneyShow.com. Listen to us wherever you subscribe to podcast or reach out to us directly if you have questions, concerns of anything we've said today. Team at another money show. Thank you.

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