AMS Full Show 8.23.mp3: Audio automatically transcribed by Sonix

AMS Full Show 8.23.mp3: 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. To bring the information you may not find on those other financial radio shows. We're aware that the last thing you need is another money show. But we appreciate you joining us. And then our new time slot, too. This is exciting, moving from 4 p.m. up to noon. So for all of you new listeners that were not expecting this show. Sorry for the surprise, I guess, but we appreciate you being here. And we're going to talk a little bit about ourselves this week, kind of how our philosophies are a little bit different than most. Talk about the Inflation Reduction Act, talk about the banks and market manipulation, some things that we refer to as the ten pillars. You know, being a fourth generation family practice. You know, I didn't intend on joining the office, J.R. The third generation didn't intend to join in the office. But we're here. We love it. So I think, Gerald, you want to give us a little intro on how you got here?

J.R. Rotchford:
Sounds good. Well, and good afternoon, everybody. Thank you so much for being with us. You know, we know this is a change. And like Anthony said, we are a little bit different. You know, a lot of the financial shows, they stick with financial information. We will give you your fair share of financial information. But we're also here mainly to sound alarms. So, you know, you are going to notice we're a little bit. We're kind of telling things like they are so and, you know, give us a chance, give us a few weeks, see if you like us, see if we can help you personally, and let's run with it. So I'm J.R. and Anthony is my stepson. My wife and I have his hers and ours. And Anthony joined me about four years ago. I joined the practice over a quarter of a century ago. Neither one of us meant to be here. So it's it's been you know, and I am remiss to mention we have a secret weapon. It's not just me and Anthony. We have the one and only Sam Davis. So we do have the best producer on the planet, bar none. I'm not sure why Sam has taken us on, but believe me, he is the best producer on the planet. So back to the family history. So my father went into business with his father. They did travel, they did advertising and printing. They went into financial. So they did several different businesses. My father, he really never meant to be there in the family business. Then here I come, joined the military, went through college, did everything I could to avoid the business. So my father winds up getting cancer. Not only cancer, but stage four. He was comfort care, hospice involved, you know, just just liquid morphine and making him comfortable so he just doesn't die.

J.R. Rotchford:
And long story short, he asks my brothers, I've got a couple of stepbrothers, ask them if they want to come in. They they declined. He asked me if I want to come in. I had a perfectly good job. I was working for an elevator company doing well. And that's my father. This is his what I presume is his deathbed wish. So I said yes and I get all licensed up. My my thought was when he passes on, I'm going to turn his practice over to one of the other advisors. And so he just doesn't pass on. Long story short, because I you know, one thing you're going to get used to, Anthony likes to talk a lot, so I like to keep the story short and to the point. So long story short, my father just doesn't pass on. We wind up working together for 11 years. I mean, I figured once he passed away, another advisor comes in, I go back to the elevator company. Fast forward 11 years later, you know, I mean, a great job. I'm not out in the sun digging ditches in Arizona. I'm sitting in the air conditioning helping people better in their situations. And it was really fun. I mean, to help people and make a living was really fun. So now over 25 years later, here I sit. So Anthony graduates with an engineering degree from ASU. So obviously he's the smart one of the family. My degree was in communication studies, so a little different level. So I'm working on Anthony for about two years, telling him he really needs to come, you know, I mean, the day is going to come that I'm not going to be here.

Anthony Carrao:
So you told me you were passing away in six weeks, just like your dad told you and like you were four years in. Does that mean I have at least seven more with you?

J.R. Rotchford:
Well, yeah, but it is day to day. I mean, look at me. I mean, John, your best day for me. I'm not a good looking man, so. Yeah, probably you'll be alone soon too. And there's two more brothers, so I'm kind of hoping that this thing keeps going, but anyway, so, Anthony, after a couple of years, he comes out and sits in a few appointments and here he is. And four years have flown by with this practice. And like Anthony said, it is a fourth generation. It's I'm on a Desert Storm veteran. It's veteran owned. You know, we're we're fully independent. Anthony is completely full service. He's he only uses it for personal reasons, but he's got his property and casualty license certified lol.

Anthony Carrao:
Want to talk to me about their racecars or their hot rods? We can talk insurance, you know, point you somewhere else. But I do want to see your cars.

J.R. Rotchford:
Well, and Anthony is not married. No kids. So all of his money goes to race cars and his stable of different vehicles. You know, it's funny, like.

Anthony Carrao:
I love telling people I give really good financial advice outside of cars. It becomes the cars. Don't listen to me. It's going to be terrible.

J.R. Rotchford:
Amen. Roy It's funny. I get to the office and I never know which vehicle I'm going to see. It's going to be a Yukon or a miata or a BMW. It's it's funny that there's to be fair, they're.

Anthony Carrao:
All poor people, cars. I mean, none of them are really worth that much, but I like them. I like the old nineties beaters.

J.R. Rotchford:
Well and they're cool. They're all different and they're all cooler looking. So anyway, so again, we're glad you're with us. It is going to be a little bit different than what you've been used to at noon. Again, give us a chance. We actually think you like it. So our whole goal, the whole premise of the show is we want you prepared, not scared. So when we talk about current events, when we talk about, you know, Anthony referenced the ten pillars. We're going to get into that in a second. What we really want to make sure people do is they get ahead of things. This is the most unchartered territory this country and I'd say the world has ever been in. So when people do traditional financial planning based on your date of birth, your income, your assets, your taxes, that sort of thing, that's still important. I mean, that never goes away. But you have. To add the world around us. And, you know, we we really listen to a lot of financial news shows. We watch everything we can to try to see what's going on out there. And there's a lot of people that are finally starting to sound a few alarms, but very mildly. So we always wonder, I mean, hopefully if you're working with an adviser, hopefully they're doing what's in your best interest. You know, hopefully it's not just a sales model because, you know, when you're working with some his health or their money and you're not doing what's right, that's a problem. You know, I mean, we in the upcoming weeks, we're going to dig into the fiduciary rule. We're going to talk about that, you know, the good and bad of it.

Anthony Carrao:
So we're going to be really just a buzzword. It's a marketing term, like you're either doing what's right for people or you're not. You don't need to prance around the fact that you're a fiduciary because that doesn't mean anything if you're not treating people the way they need to be treated. I mean that it's one extra form on our end. Like, it doesn't mean and it doesn't mean what it's marketed to me, and that's for sure.

J.R. Rotchford:
Well, and I think the intention was there, but I think how it morphed into it just yeah. And really, again, we're in an industry, you know, I used to poke a little fun at myself and others in my industry. You know, we're not that far away from used car sales people in timeshare people. My whole job is to get money away from you and over to me, you know, get you invested, then keep you invested, you know, at all cost. But the world around us, it's not always going to cooperate with you or buy and hold. I mean, it's just it we're in a different day and age.

Anthony Carrao:
Oh, yeah. When you've been in a bubble for the last 30 years, you know, 40% of the money supplies printed over the last two years. But don't worry, though, we've got the Inflation Reduction Act to protect us from inflation. So it's fine. We've solved that.

J.R. Rotchford:
Ooh. Little sarcasm from Anthony and we're going to dig in that, too. We have so many things. You know, I wish this show was 6 hours long. Our problem with a one hour show, we get started. We make an outline every week. As Anthony says, I put together this beautiful outline and then I don't follow any of it. Usually I'm lucky. Zero. Yeah, it's give or take, so. But I am going to follow the outline today a little bit more be a little more structured just so we don't lose people right away. With my OCD and AD and all my mental issues, I don't want to scare you away right away. So let me tell you. Go ahead.

Anthony Carrao:
I kind of want I think I know where you're going, but I want to introduce it a little bit because I saw some of the notes. But there's traditional planning, right? There's stuff that all financial advisors learn. You know, the rule of 100 buy low, sell high bonds are safer than stocks, things like that. And it's so easy to just regurgitate that with not taking everything else going on in the world in. But I think you're going to talk about the ten pillars, right? Because there's more. Yeah, there's more than just the financial markets. I mean, the financial markets are important part and things that we're watching. But there's also something called a black swan event, which is something that nobody else is looking for that will affect the financial markets. So when we talk about these ten pillars. These are ten things that we're looking at on a global level across the board. And do they tie directly to finances? Not all the time, but they do if they are to crumble. So when we talk about the ten pillars, it's these ten pillars that are just holding up society as a whole. But if something falls that may not be directly financial related, it can become financially related. So that's where our heads are at. Did you want to get into those. Yea.

J.R. Rotchford:
Sure. Well and we you know, the ten pillars are ten big things that pretty much everybody's watching. And then with our industry we have to do traditional financial planning. And then like Anthony mentioned, we also have to watch for things we're not ready for. Those are the Black Swan events. So the ten pillars, debt and deficit, obviously we know with 30 trillion in debt, our country is on a dangerous path and we think you need to watch out for it. Financial markets, you know, a lot of times people are startled when we tell them the Dow Jones Industrial Average is is only 30 companies. You know, it's not 500 or 1000 or whatever you would think. Financial markets. So taxes, obviously, I think it's becoming clear that they are going to be going up. Inflation, we're all living through that. Health care, I mean, that's the gorilla in the world, in the room. You know, what's health care going to look like? Underfunded and unfunded liabilities. Medicare, Medicaid, Social Security, how they're changing the shrinking middle class. Most of the people that we deal with are certainly solid middle class. And they are they're getting squeezed. So we're talking about what to do about it. Social media. I mean, we're in a we're in a instant gratification nation right now, and social media is just feeding into that geopolitical missteps. And lastly, when I don't like to talk about civil war, I mean, we could be heading towards unrest. You know what? We got to get in to break this flew by. So make sure you reach out to us. Another money show com or give us a call. 6235230444. Again, 623523044. Thanks so much for being with us.

Producer:
Remember, all of J.R. and Anthony's listeners receive a free financial consultation just for listening to the show. Visit another Money Show dot com to learn more and schedule an appointment. Thanks for listening to another Money Show and subscribing wherever you listen to podcasts.

Fine with me. Never will.

J.R. Rotchford:
I feel discouraged.

Producer:
Another weekend, another money show visit, another money show.

Anthony Carrao:
All right, we are back. Anthony Creole, J.R. Rotchford. And you're listening to Another Money Show. And we're mentioning all the potential black swans out there that could affect the market and your retirement and really the whole the whole country moving forward, you know, in the near term, long term, something going on in the news recently that might be something that you've been talking about and hearing on the news is the Inflation Reduction Act. Well, the biggest issue with the Inflation Reduction Act is it doesn't actually cover inflation, but it does cover a massive budget increase for the IRS. So, you know, is that to tax the rich, even though they removed the hedge funds from this bill, do you think this is actually to get the wealth from the wealthy, J.R., or is this more of a middle class action?

J.R. Rotchford:
Well, you know, first of all, whenever the government gets together, if you hear the word bipartisan, that should that should scare you. I mean, that means you're just going to get screwed twice as hard and fast. When you hear the name of a bill, that should tell you, look the other way. You know, usually the name is 180 degree opposite of whatever, you know, build back better. It's like, build what back better. We're broke, you know, and broke is is you don't have any money broke is like I'm out, I'm zero. We are so far past broke. So any government spending right now concerns me. The Inflation Reduction Act, I mean, you know, we're going to spend more money. How do you think we got into this inflationary problem? You know, we did all the COVID spending. We you know, we're spending ourselves into end times financially.

Anthony Carrao:
You know, doesn't inflation just mean printing more money than we have demand for?

J.R. Rotchford:
So that causes the.

Anthony Carrao:
Solution to this.

J.R. Rotchford:
That certainly is a is a causing factor for sure. So and the you know, I don't like the acronym IRA because it dirties the thought of me saving for retirement. But you know, this this whole thing. Yeah. They excluded you know there's people that that are saying, well, this is going to make the wealthy pay their fair share. No, they specifically exclude the hedge fund managers. So the very wealthy people that they want to make pay higher taxes are being excluded. So, no, this this is going to hurt the middle class. When you hear about 87,000 IRS agents, I guess that's the number one thing that people are really keying in on. You know, a couple of thoughts for you on that one. I mean, are they going to do more audits on the billionaires? Probably not. You know, there's about 650 billionaires. So let's hire 650 agents and have a one on one, follow them around everywhere they go, make sure they save receipts, you know, 87,000 of them. That certainly sounds like a sweeping. You know, they're going to be a lot more audits for all of us. They're going to be plenty to go around.

J.R. Rotchford:
You know, the other thing is, if you've heard a little bit about the hiring practices, they're saying that these IRS agents need to be armed. You know, the IRS, they do have over 5 million rounds of ammunition and about 5000 weapons. That should scare you like we're not scared already. Enough of the IRS. Now they're going to come over to my house armed. You know, when when they talk about hiring, they're saying that these agents have to be prepared to work nights, weekends, holidays. Really? You're going to audit me on Christmas, are you? So, I don't know. I mean, a little bit of my conspiracy theory of me thinks that we're hiring a security force. So I and I do the bottom line, I think we're going to go towards a stock market correction. I don't want to say the word collapse because I don't have a crystal ball. I think we're actually going to have banks shut their doors and I think we're going to have a digital currency in this country. So I think we have to get everything ready, you know, so people don't panic. We've got to keep everybody in line.

Anthony Carrao:
So I don't even know saying that I think we're going to have a digital currency anymore is accurate because it's almost there's enough articles, you know, from the government themselves that have stated that there's going to be a digital currency. You know, the Fed lied about that for years saying, oh, we're just we're running some simulations and some tests with MIT. And then almost overnight, they're like, Yeah, no, we're actually we're working on it. And didn't you find a bill or a. An executive order or something from the president recently?

J.R. Rotchford:
Yes. If you.

Anthony Carrao:
Have months that addresses digital currency and essentially says that we're working towards.

J.R. Rotchford:
That. Yes. If you have a pen or pencil handy, write down 14067. That is executive order 14067. It's called the Ensuring Responsible Development of Digital Assets Order. So and key into section four. If you if you don't have a pen, if you're driving or walking around. Email us, call us. We'll give you that to read. The more you read, the more you see that digital currency seems to be coming globally. I mean, other countries are implementing it as we speak. Australia was the newest one, just came out a few weeks ago saying within a year they're going to have it. Obviously China's been working on it forever, so. Yep, no. And by the way, one of the things that bothers me worse than anything else about this Inflation Reduction Act in September, there's supposed to be a big party. There's going to be a big celebration to celebrate the passing of this bill. So what's the best thing to do? You know, to we're going to celebrate. We're going to spend a bunch more money to celebrate spending a bunch of money, you know?

Anthony Carrao:
So, yeah, but it's our money, not theirs, so. Oh, I would celebrate that. Oh, when do I get. I'm going to start spending Sam's money. That's what we're going to start partying with.

J.R. Rotchford:
It's always easier to spend other people's money. I agree with that. So what else, Anthony? You know, tell me a little bit about, you know, I mean, 1% tax on stock buybacks, 15% tax for corporations. Yeah.

Anthony Carrao:
So they said that there is going to be a minimum 15% corporate tax. My thought is, hasn't there always been some sort of minimum corporate tax? Aren't there tax codes to say that if you make a ton of money, you need to be paying taxes if they've avoided it this whole time? What's going to stop them from avoiding it now? You know, the documents, 755 pages. And if you download it, you can control F and you can search for words. It talked about closing loopholes. I didn't see that once in the document. You know, there was a couple of their buzzwords that they use when they talk about the summary for it and how they're going to tax the rich. But I don't actually see that in the document itself. You know, they do talk about an an excess 1% tax for stock repurchasing stock buybacks that will go into effect in 2023. Well, people don't seem to realize what that is. Stock repurchasing stock buybacks used to be illegal until 1982 because it was considered market manipulation. Well, what's the difference now? Nothing. It's still market manipulation and it's at all time highs. But the thing is, a 1% excess tax doesn't do anything. If that's skyrocketing, your stock, ten, 20%.

Anthony Carrao:
You know, they're saying that stock buybacks is used in place of dividends now and then. It's better for people. Well, it's really not. I mean, the government has had you know, the Fed has had, which I guess technically is in the government, because the Fed and the government are two separate entities, even though it says federal and the title is not. But interest rates have been practically zero for over the last decade. So these company has taken borrowed money for nothing and just inflated. Their stock prices, you know, exponentially. It's insane the amount of growth. I mean the bubble in the dotcom bubble in the nineties, early 2000s. The bubble in 2008 is nothing compared to what we have now. So we might even see a short term influx as everybody tries to rush to repurchase their stocks before going into 2023. But again, this isn't stable, sustainable growth. This is. It's it's a bubble. I mean, there's no foundation for the things going on. So that was a little bit on the Inflation Reduction Act. We've got to go to commercials. In the meantime, you can find us at another Money Show dot com and we will see you soon.

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Anthony Carrao:
All right. We're back to another segment of another Money Show. And, you know, we're trying to give you an introduction into us and our thought process and the things we're watching. Talk about market manipulation all the time and how just the growth recently doesn't seem sustainable. So on the flip side of the market, you know, technically the safest place to hold your money is the banks. Well, the problem is the banks don't have the money you think they have either. And we're actually just as concerned with the banks as we are the stock market. And we've got terms like bail in being thrown around. And, you know, I know you're familiar with the bailout of 2008, but bail in is supposed to help depositors and save taxpayers. But if anything, it's almost more scary than a bail out. So let's talk about the banks.

J.R. Rotchford:
Yeah, you know, that's one of my favorite subjects. And by the way, I mean, if if we're worried about the stocks and the bonds, you know, if we're worried about the investment side of the world and we're worried about the banking side of the world, you know, where do you hide? You know, I mean, should you keep extra cash at home right now? Probably. You know, when we get to a digital currency, there should be a window. I mean, you know, this is uncharted territory for this country, but there should be a window where you can turn in your cash and get what the government deems as your your equivalent in the digital currency. Are the banks safe? We were kind of geeks with financial stuff, so we go on FDIC gov fairly often. Got that down to if you have a pen, FDIC gov, are the banks safe? They're starting to fold again. It's funny, like 2008, nine and ten, we're starting to see the bank failures go up. You don't hear about it because it's community banks. It's smaller banks. But is your bank safe? I don't know. I mean, if you're with Wells B of A or Chase, you know, shame on you because all they're doing is using your money for derivatives and ridiculousness. And by the way, I mean, you know.

Anthony Carrao:
Stealing money from you.

J.R. Rotchford:
Like there is.

Anthony Carrao:
Fargo and US Bank.

J.R. Rotchford:
Yeah, they're opening up fake accounts and they're doing all kinds of shenanigans, you know? And I know you love to talk about Jamie Dimon. Why hasn't he sued us yet? I don't maybe he doesn't have very good attorneys or the money to do so. But, you know, I mean, a bank that has felonies. Yeah, if you dig into banks, you will realize that they're not quite the friendly, happy places we always thought they were. So back to when you say the word bail in, if you're not familiar with the term bail, and I would get familiar with it real quick, you know, look up bail in, look up bank holiday. There's some verbiage you need to watch for because if things are weird, go.

Anthony Carrao:
Ahead, tell the listeners about that so they don't have to look it up.

J.R. Rotchford:
Well, I can do that. And, you know, I'm going to I just want to educate people. And by the way, we have past episodes. We've been on the radio for about, what, four, four and a half months now if you want to know about for baby formula shortage def shortage inflation taxes life insurance anything you want to know about we have episodes I know our very second episode was was a lot of it was on this it was on banks you know potentially bailing in we can guide you to where you can hear more from us or help you educate educate in this stuff. So back to the banks. If you go to FDIC dot gov, you're going to see something kind of shocking. We have in the coffers for insurance 1.23% coverage. What that means and we're going to take a break soon. So on the other side of the break, we're going to dig into this deeper. But what that means, if you have in the banks and this holds true with credit unions, you know, your your money market fund in a mutual fund company.

Anthony Carrao:
Anything with FDIC.

J.R. Rotchford:
Coverage? Yes. Oh, and I shouldn't have brought that up with mutual funds. I am incorrect. No, this is this is banking problems. I'm online banks, credit unions, banks. If you have under $250,000 in your account, that's called covered anything over that is uncovered and you're not protected but your money up to 250,000. You know you feel pretty safe because if there's a modern day run in the banks, if there's you know, if we have a balance in that's okay, I'm covered. No, really, you're not. We have 1.2 to 3% coverage. You know, the a couple of months ago, it was 1.27. About a year and a half ago when we were doing a lot of Zoom and all the post covered stuff, it was 1.4. So it is shrinking. And by the way.

Anthony Carrao:
Something else to know too is in the 2009 to 2011, they actually had negative in their coffers. It means they only had liabilities and that lasted for about seven quarters. So for almost two full years they had less than nothing. Just kind of like our country not being broke, but having less than that.

J.R. Rotchford:
And how can they have less? Well, they have costs and they have employees and they have all kinds of operational needs. We're going to lead in the break. Let me read one thing to you real quick here that Anthony, you found this, and I think you find it pretty hilarious. The Federal Deposit Insurance Act, the FDIC Act requires a minimum reserve ratio for the DIF, which stands for Deposit Insurance Fund of 1.35%. If the reserve ratio falls below 1.35%, the FDIC has eight years to return the reserve ratio of 1.35. So. You're going to self-correct. It may take you eight years, but you'll get back to 1.35. By the way, kids were at 1.23. So reserve start start self regulating yourselves back at the 1.35. Because I'd rather know that if I had 100 bucks in the bank, I could get a dollar 35 instead of a dollar 23 to make me warm and fuzzy. So with that sarcasm behind us, why don't we take a break? Because we're going to get into this banking thing a little bit more heavy right after the break. Is that okay, Anthony? Yep, yep. Man of simple man, a few words. So make sure you reach out to us at another money show or give us a call at 6235230444. And we're so happy that you're here.

Producer:
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Anthony Carrao:
Almost every night and when that a moon.

J.R. Rotchford:
Gets a.

Producer:
Big and bright.

J.R. Rotchford:
It's supernatural delight. Everybody was dancing.

Producer:
And remember, all of JR and Anthony's listeners receive a free financial consultation just for listening to the show. Visit another Money Show to learn more and schedule an appointment. Thanks for listening to another Money Show and subscribing wherever you listen to podcasts.

J.R. Rotchford:
Welcome back to Another Money Show. Just what you needed, another money show. You know, we say that kind of tongue in cheek, we are probably anything but another money show. We deal with finances. I mean, that's our livelihood. That's our day to day. But we are really we're here to sound alarms. You know, will the day get here that we go back to Roth conversions and traditional financial planning? I hope so. I mean, I don't think it's going to be this year. You know, we still have to get through the the COVID numbers rising and monkeypox and elections and drought and food shortages. I mean, you name it. And it's it's weird. But, you know, I do hope we are a regular money show. Sooner than later, we'll hang in there.

Anthony Carrao:
You take eight years to fix it, just like the FDIC insurance.

J.R. Rotchford:
Yes, we're going to be less negative in eight years. So hang with us. We want about another seven year and 11 month commitment from you. So not a big deal. So let's jump back into the banks. I do want to dig into that a little bit further. I one of my main questions on the whole banking thing, why are we sounding the alarm and nobody else seems to know what we're talking about? You know, aren't other people worried? Aren't people keeping extra cash at home? You know, and I tend to gravitate towards being open minded. I don't want to say conspiracy theorist, but I am if you if you watch us on YouTube or if you see see us anywhere, you'll notice every week I do wear a tinfoil hat. So but you know, it's funny, even if you're not like me and you want to hear what could be coming, you have to realize the country is broke. There's there's a whole bunch of people that are broke. There's problems with student loans and auto loans and subprime auto loans and everything's weird. So but specifically with the banks. So when we talk about a bail in, all that means, you know, a bail out was when the government decided which companies were too big to fail. You know, they printed and they taxed us and they took our tax dollars and they gave it to different companies, i.e. AIG. And what was it? Was it a Chevy? You know, Bank of America, a lot of these these big corporations, our government decided our tax dollars would be wisely spent to keep them afloat. You know, the banks, they were systemically important. We can't let them fail. I don't know. I mean, this is still a free country. It's a you know, I mean, I think some people should have failed, but that's just me.

Anthony Carrao:
Yeah, this is it. It's not quite a free market when you have the Plunge team and bailouts and the Plunge team. We haven't talked that about that in a while. No. So I don't know if you guys know this, but if the market drops too quickly in a day, they shut down the market if something called a plunge team. So yeah, so much for a free market there. And we always joked about how the market, you know, they'll stop it from going down but it can go up to infinity and nobody bats an eye because that's just normal. And that was all until was it the GameStop. So if you guys are familiar with that, we bring that up every once in a while. You know, all the manipulation going on there. I mean, it was retail investors fighting these hedge funds. And, you know, I first heard about it. I didn't approve of it at all. It was like, why would you invest in a failing company? But when these hedge funds are borrowing shares and selling stuff that they don't have, you know, there's creates a demand there because they have to buy their shares back to replace them. So you get these retail investors keeping shares up. You know, all of a sudden these retail guys, these small mom and pops, you know, me and you are fighting against hedge funds and winning. And that's when that's when the Fed comes in and shuts it down.

J.R. Rotchford:
Yep. Janet Yellen that I don't remember. She made like $80 million or some ridiculous thing.

Anthony Carrao:
Yeah. Citadel, I think. Great. One of the hedge funds that lost like 50 billion or something in a quarter.

J.R. Rotchford:
Yeah. And then all of a sudden trading had to be fair and forthright and. Yeah, no, it was. What was it? Gamestop, AMC. You know, last week that was happening again, it was Bed, Bath and Beyond. You know, remember the whole Reddit world they were talking about? He's on silver and they were going to make the evil rich pay their fair share. We were loving that. So, yeah, you know, it's.

Anthony Carrao:
Not talked about. There's no real market. I mean, when a failing company is now the talk of the town and skyrocketing prices, you know, that's options trade and that's derivatives. It's it's fake. It's not. Yeah. It's so hard to explain to people that there's no real market right now. There's no there's no free market. Stocks don't mean anything because the stock is not a company. Stocks are betting, you know, it's Vegas right there.

J.R. Rotchford:
Well, and it's like, you know, when we tell people the stock market is not the economy, you know, I mean, yeah, it is definitely legalized gambling. Well, you know, it's not as fun. I mean, at least if you're in a casino, there's bells and whistles and drinks.

Anthony Carrao:
Cocktails to.

J.R. Rotchford:
Cocktails. We need to spend an entire episode talking about cocktails and the value of cocktails with the financial markets.

Anthony Carrao:
I mean, there's a lot of money in booze. So, I mean, there's something to it. That's my financial advice is, you know, invest in breweries and distilleries, start to moonshine and bring back prohibition.

J.R. Rotchford:
And if you're worried about the stock and bond markets and you're worried about the banks, you know, I mean, what's your alternative? Put money with insurance companies. You know, we tell people, make sure you you pay down debt, buy some hard assets. When we get really worried about the world, we meaning me because Anthony is not on board fully with me at this point. But when we get really worried about the world, it's like, you know, you better be ready to barter. You know, we talk about having tobacco and alcohol at home, even if you don't drink and smoke, you know, just as a barter tool, you know, the people that say, well, no, that's what gold and silver is for. You know, in a future episode, we'll dig into precious metals. But a couple of flaws. One, the government seized your gold at one point. So can they do it again? Probably. You know, the second thing is you can't eat it. You know, I'd rather put away food and water and, you know, and precious metals, you know, lead and other things. It's like we're an uncertain time. 30, 30 trillion, 700 billion, 456 million. Sam is showing us the debt clock, and that thing is spinning. Yeah. Last week, Sam pulled up the debt clock, and it was 30,000,000,000,600 and something billion. So it's moving sooner or later. I mean, I hate to say this to you, they're going to have to revamp Social Security, Medicare, Medicaid.

Anthony Carrao:
So but when talking about that Inflation Reduction Act, again, I think they said that they were going to take away like 300 billion to the deficit. And that was that was going to be their version of fighting. Inflation is like I'm pretty sure the debt clock was at 30.6 trillion last week when we talked about now it's at 30.7. That's 100 billion in one week. And they think 300 billion over the course of a year is going to fight this deficit and going to make things better.

J.R. Rotchford:
They think we are not educated enough to call them out on that. So, yes, they they think everything they say, you know, I mean, during COVID, we shut down all these people. We had everybody working at home, we laid off people. And now with the job numbers, we bring those same people back, or at least some of them, and were touting how great the economy is. It's like I mean, my gosh, we are not really seeing the big picture, but let's do this. Let's finish the bank conversation because.

Anthony Carrao:
This was actually the one that sidetracked us. That never happens. That's usually.

J.R. Rotchford:
You. That's my job. You stop trying to encroach on my position.

Anthony Carrao:
I told you, I'm taking over. We're getting you out of the practice. It's just going to be me.

J.R. Rotchford:
Believe me, I'm fine with that. Believe me, I'm ready for a longer staycation. I am ready. So back to the banks. We you know, when we say bail and make sure you're familiarize yourself, you know, how can we think the stock market is due for like a correction like 2000 and 2008 combined? I mean, we think, you know, how can we be worried about the banks, civil unrest, all this different stuff? Why don't people see it? You know, one of the things I point out to people, there's a phenomenon called normalcy bias. And I'll just read you the quick Wikipedia version. Normalcy bias is a cognitive bias, which leads people to disbelieve or minimize threat warnings. Consequently, individuals underestimate the likelihood of a disaster when it might affect them and its potential adverse effects. The normalcy bias causes many people to not adequately prepare for natural disasters, market crashes and calamities caused by human error. It's called the ostrich effect. I mean, it's very it's also been called analysis paralysis. When you give me ten things to worry about, it's overwhelming. I'm probably just going to turn away and go back to Dancing with the Stars and the masked singer and Tick Tock and all that stuff. With these the potential bank bailing, I started trying to gather proof. It looked like through the Patriot Act, you know, we got the NSA, we did a lot of change in this country. Well, we also in 2014 put the rules in place to do a bail in in this country.

J.R. Rotchford:
You know, if you want to see other countries, look at Yemen, Greece, Greece was probably the most famous example. You know, I mean, right now I would look at Sri Lanka and. Tina and Venezuela. There's other countries that they don't have a normal system right now. So as I started looking and digging into this, I also in October of 2017, I had an insert in one of my credit union statements. Let me let me read this to you. Withdrawal limitations. And this is in my hand. I have this from the credit union. This clause may require you to provide the credit union written notice of your intent to make a withdrawal from your account at least seven calendar days and up to 60 calendar days before you would like to make the withdrawal. So a week to two months, I have to give you notice if I want money. The credit union may also limit the amount of cash provided in a withdrawal and may limit larger amounts to be non-cash items. So you're telling me that I might have to wait a week to two months to get my money? You know what's glaring to me? You know what's missing there and amount. You know, right now, if you go to take out 20 grand, you've got 60 grand in the bank. You're going to take out 20. I promise you.

J.R. Rotchford:
They're asking questions. Is that the bank or the credit union or is that the government telling the banks and the credit unions were tracking everything? You know, I don't know. You know, the old thing was always 10,000, standard 10,000. They're not watching you. Well, now that amount is discretionary. You know, these bankers have to put in a suspicious activity report if they don't trust the transaction you're making and they can't tell you about it. So you don't even know if you're in that system. But anyway, so the amount is missing. If I need $14 for a hamburger, you're telling me I may have to give you notice? Yeah. What that means to me is they are they have told you we may have to do a bail in one day and you are not going to get your money. And that buys them time to say, well, we told you, you know, you can't opt out of this. There wasn't a little box I could check saying I don't agree with that. You know, if you keep your account open, you agree to their terms and conditions. If you close it, you're opt it out. And again, I mean, if we ever get to know you on a personal basis, we will give you options on other ways to keep your money. You know, you're always going to need some money in the bank for insurance and bills and rent and mortgages.

Anthony Carrao:
Yeah, it's a necessary evil. You can't pay cash for anything anymore.

J.R. Rotchford:
Are you saying the banks are evil? I guess.

Anthony Carrao:
I mean, I didn't say it.

J.R. Rotchford:
Well, you kind of implied it so. And you know, one last thing. I guess we've beaten this horse to death. But one last thing about the banks. If you think about how everything's changing with your bank, I mean, you know, we are ready for the digital currency. We've already pretty much gone digital ATM machines, debit cards. You can hold your phone up with Apple Pay and you know, credit cards have that tap feature and a little microchip. And, you know, we've set the stage. So please start doing doing their research and see if we're crazy or if we're right.

Anthony Carrao:
And the transaction amounts won't even matter much when it goes to a digital currency because then they can track everything.

J.R. Rotchford:
Correct. And are we going to go like China? I mean, social scores, you know, environmental, you know, I mean I mean, who knows where that leads? But that could be a change in our in our lives, for sure.

Anthony Carrao:
I think people would appreciate that. Now, that was kind of the scary thing. I think that would be almost voted for for half the nation.

J.R. Rotchford:
Oh, for sure. Well, I mean, look at the division in this country. I mean, look at the politics. I mean, look at what's going on in this country. So, yeah, for sure. I mean, you know, when the Inflation Reduction Act was passed, half the country cheered it and they were like, oh, wow, you know, this is such a great thing. Half the country is very nervous, very scared, thinking.

Anthony Carrao:
I don't think half the country liked it. I think that was just a party decision and we stay in line. I don't know that anybody is really going to benefit from that unless, you know, you own a lot in a semiconductor company in Taiwan and have a mom who's speaker of the House.

J.R. Rotchford:
Well, that's a different subject. And now you're kind of referring to the CHIP Act, which was another one.

Anthony Carrao:
So you're right, just another massive spending bill that, you know, we don't have the money for.

J.R. Rotchford:
Yeah, you need to listen to our previous episodes, go on our website. I mean, we, you know, we talk about the CHIP Act, we talk about the spending. We talk about Nancy Pelosi in particular and her son, 53 years of age and largest shareholder next to the CEO of a Taiwanese company. Oh, and yeah. And then he traveled with her to Taiwan a couple weeks back. And our whole goal, Anthony, I'll let you wrap up the show today, but our whole goal again, we want you prepared, not scared. We want you to be proactive, not reactive. If we can help you in any way, we are going to be honored.

Anthony Carrao:
Yeah, this is a very different show than I think the show that was previously in this time slot. So I hope you enjoyed us. That's it for our show today. If you like what you heard, if you have questions about any of the topics today, or if you want to sit down with us to review your personal situation, you can reach out to us at team at another money showcase. You can find us on the Web at another money show or check us out wherever you subscribe to podcasts. At obviously another money show. There are no minimums. No. For appointments. Nothing to lose by getting a second opinion on your financial situation. Thank you again for being here. We will see you next Saturday at noon right here on 960, the page.

Producer:
Thanks for listening to another Money Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets, to schedule your free no obligation consultation. Visit another Money Show dot com Investment Advisory Services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor, BCM and Rotchford Financial are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investment involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

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