1 00:00:00,600 --> 00:00:04,520 Speaker 1: Welcome back to another episode of Financial Harsey, where we 2 00:00:04,519 --> 00:00:06,280 Speaker 1: talk about how money works so you can make more, 3 00:00:06,760 --> 00:00:10,559 Speaker 1: keep more, and give more. Today we are talking about 4 00:00:11,000 --> 00:00:17,959 Speaker 1: surviving and thriving through hyper inflation. Now these days, we 5 00:00:18,040 --> 00:00:22,959 Speaker 1: are seeing inflation come back down. Every single month, the 6 00:00:23,000 --> 00:00:26,200 Speaker 1: inflation readings are starting to get a little bit lower. 7 00:00:26,440 --> 00:00:30,280 Speaker 1: That doesn't mean we are not seeing prices go up. 8 00:00:30,720 --> 00:00:34,480 Speaker 1: All that means is that the rate at which prices 9 00:00:34,760 --> 00:00:39,159 Speaker 1: are going up has been decreasing. That is what d 10 00:00:39,840 --> 00:00:45,960 Speaker 1: What disinflation is. Disinflation is when the prices are going 11 00:00:46,200 --> 00:00:49,080 Speaker 1: up still, they're just going up at a slower pace 12 00:00:49,159 --> 00:00:52,199 Speaker 1: than they were the month prior. Think of it this way. 13 00:00:52,240 --> 00:00:54,520 Speaker 1: Think of it like a car. When a car is 14 00:00:54,520 --> 00:00:57,200 Speaker 1: going along in the freeway at sixty five and it 15 00:00:57,280 --> 00:01:01,280 Speaker 1: continues to go at sixty an hour, is it moving forward, 16 00:01:01,360 --> 00:01:05,120 Speaker 1: staying in place, or moving backwards. It's clearly moving forward. 17 00:01:05,319 --> 00:01:07,880 Speaker 1: So in that case, there would be inflation. Prices are 18 00:01:07,920 --> 00:01:10,479 Speaker 1: moving ahead, so the car is moving forward. Now, if 19 00:01:10,480 --> 00:01:13,360 Speaker 1: the car starts to accelerate and goes to seventy five 20 00:01:13,360 --> 00:01:15,720 Speaker 1: miles an hour, that just means the rate of inflation 21 00:01:15,800 --> 00:01:18,200 Speaker 1: is increasing. So the rate of inflation goes from six 22 00:01:18,200 --> 00:01:20,319 Speaker 1: percent a year to seven percent a year. Now what 23 00:01:20,360 --> 00:01:22,679 Speaker 1: about the opposite. Let's say the car slams on the brakes, 24 00:01:22,920 --> 00:01:27,440 Speaker 1: goes to fifty at an hour. Now, let's say inflation 25 00:01:27,480 --> 00:01:30,240 Speaker 1: does that goes from seven percent to six percent. It's 26 00:01:30,280 --> 00:01:32,760 Speaker 1: still moving up. Prices are still going up, just at 27 00:01:32,800 --> 00:01:35,680 Speaker 1: a slower pace. Now, if you get to zero percent inflation, 28 00:01:35,720 --> 00:01:38,000 Speaker 1: that just means the prices have stopped going up. Doesn't 29 00:01:38,000 --> 00:01:40,000 Speaker 1: mean the prices go back to where they were before. 30 00:01:40,360 --> 00:01:42,920 Speaker 1: So if the price of bacon goes from ten dollars 31 00:01:42,920 --> 00:01:45,959 Speaker 1: a package to fifteen dollars a package, while inflation for 32 00:01:46,000 --> 00:01:48,960 Speaker 1: bacon was fifty percent, and then if it stops going 33 00:01:49,080 --> 00:01:51,840 Speaker 1: up from their inflation will say zero percent. But it's 34 00:01:51,880 --> 00:01:54,960 Speaker 1: staying at that higher level. So right now we're seeing 35 00:01:55,000 --> 00:01:59,279 Speaker 1: some disinflation take place. But keep in mind, every fiat 36 00:01:59,360 --> 00:02:03,440 Speaker 1: currency throughout all of human history has failed, except for 37 00:02:03,480 --> 00:02:07,000 Speaker 1: the few that are still surviving today. Other than that, 38 00:02:07,320 --> 00:02:10,120 Speaker 1: every single field currency has failed, and the ones that 39 00:02:10,240 --> 00:02:17,760 Speaker 1: still exist today have already lost of their value compared 40 00:02:17,800 --> 00:02:22,000 Speaker 1: to the value where they started. Think about that, every 41 00:02:22,040 --> 00:02:24,120 Speaker 1: field currency in history has failed, and the ones that 42 00:02:24,200 --> 00:02:31,040 Speaker 1: still survive today have already lost nine of their original 43 00:02:31,280 --> 00:02:35,160 Speaker 1: purchasing power. So, if we are going to make a 44 00:02:35,280 --> 00:02:40,040 Speaker 1: bet on what to prepare for in terms of UH 45 00:02:40,240 --> 00:02:45,079 Speaker 1: potential bad outcomes, hyper inflation of collapse of a currency, 46 00:02:45,120 --> 00:02:48,680 Speaker 1: a currency ceasing to exist is up there in terms 47 00:02:48,720 --> 00:02:52,000 Speaker 1: of likelihood, and it's also up there in terms of 48 00:02:52,280 --> 00:02:54,560 Speaker 1: if you're not prepared for it, you can get royally 49 00:02:54,639 --> 00:02:58,760 Speaker 1: screwed over. So today we are talking about what are 50 00:02:58,800 --> 00:03:01,600 Speaker 1: some practical things. Is very practical, very applicable. We're gonna 51 00:03:01,600 --> 00:03:03,680 Speaker 1: look at a bunch of different action steps that people 52 00:03:03,680 --> 00:03:07,480 Speaker 1: can take and have taken UH that are applicable for 53 00:03:07,639 --> 00:03:12,880 Speaker 1: preparing to survive and to thrive through hyper inflation. So 54 00:03:12,919 --> 00:03:15,840 Speaker 1: where is this coming from? Well? Number one, UM, I 55 00:03:15,880 --> 00:03:20,320 Speaker 1: currently have friends that are living in Lebanon. Lebanon has 56 00:03:20,400 --> 00:03:24,240 Speaker 1: the highest rate of hyper inflation in the world right now. 57 00:03:24,880 --> 00:03:27,760 Speaker 1: It's not Venezuela, it's not Argentina, it's not Turkey, it's 58 00:03:27,880 --> 00:03:31,560 Speaker 1: Lebanon right now. UM. And so firsthand account of what's 59 00:03:31,600 --> 00:03:34,120 Speaker 1: going on there. The other thing is you can look 60 00:03:34,200 --> 00:03:37,640 Speaker 1: up some stories of people who have told their story, 61 00:03:38,000 --> 00:03:40,440 Speaker 1: who lived in Venezuela, who lived in Argentina, who lived 62 00:03:40,440 --> 00:03:44,360 Speaker 1: in Zimbabwe, who have lived through recent episodes of hyper 63 00:03:44,360 --> 00:03:47,040 Speaker 1: inflation and what it's like. And I've done this. You 64 00:03:47,040 --> 00:03:51,200 Speaker 1: can also read about, you know, history books on what 65 00:03:51,480 --> 00:03:54,960 Speaker 1: hyper inflation was like in the Vimy Republican Germany. Two 66 00:03:55,000 --> 00:03:59,560 Speaker 1: Bucks When Money Dies and the Death of Money, I 67 00:03:59,640 --> 00:04:03,000 Speaker 1: believe um. One of them is by Adam Ferguson, And 68 00:04:03,200 --> 00:04:07,080 Speaker 1: both of these books are about the collapse of of 69 00:04:07,120 --> 00:04:11,160 Speaker 1: the mark in Germany hyper inflation that took place there. Um. 70 00:04:11,200 --> 00:04:13,800 Speaker 1: And so once you want the thing about the thing 71 00:04:13,840 --> 00:04:16,880 Speaker 1: about studying history is it's not it's not so that 72 00:04:16,920 --> 00:04:20,800 Speaker 1: you can um avoid the consequences of it. It's just 73 00:04:20,880 --> 00:04:25,120 Speaker 1: so that you can um you know, because it's happening anyway. Right. 74 00:04:25,200 --> 00:04:28,200 Speaker 1: The the Winston Churchill quote is that those who uh 75 00:04:28,400 --> 00:04:30,800 Speaker 1: um study those who don't study history are doomed to 76 00:04:30,839 --> 00:04:33,479 Speaker 1: repeat it. Well, no matter whether you study or not, 77 00:04:33,480 --> 00:04:35,680 Speaker 1: you're doomed to repeat it. It's all about being prepared 78 00:04:35,720 --> 00:04:37,920 Speaker 1: for what's coming so that you have may may or 79 00:04:37,960 --> 00:04:41,120 Speaker 1: may not have to suffer the consequences of what's happening. 80 00:04:41,839 --> 00:04:43,640 Speaker 1: And so when you study history, like when you read 81 00:04:43,640 --> 00:04:47,200 Speaker 1: biographies and study history, what starts to happen is not 82 00:04:47,360 --> 00:04:51,200 Speaker 1: that you unlock secrets. It's just that pattern recognition sets 83 00:04:51,240 --> 00:04:54,520 Speaker 1: in and you start to recognize, oh, this happened then 84 00:04:54,800 --> 00:04:57,520 Speaker 1: and then and then and then, and the consequences were 85 00:04:57,680 --> 00:05:00,320 Speaker 1: the same every single time has happened, and now the 86 00:05:00,360 --> 00:05:02,360 Speaker 1: same thing is happening now. Well, then there's a high 87 00:05:02,440 --> 00:05:06,840 Speaker 1: degree of possibility that that the consequences are going to 88 00:05:06,880 --> 00:05:08,800 Speaker 1: be the same now as they were every other time 89 00:05:08,880 --> 00:05:12,320 Speaker 1: this has happened before. So that's what we're gonna talk 90 00:05:12,360 --> 00:05:14,600 Speaker 1: about right now, is uh kind of what it's like 91 00:05:14,720 --> 00:05:19,880 Speaker 1: to live through um hyper inflation, because that's a that's 92 00:05:19,920 --> 00:05:22,400 Speaker 1: a very big possibility for many people in the world 93 00:05:22,440 --> 00:05:25,960 Speaker 1: today that that sets in, if it hasn't already for 94 00:05:25,960 --> 00:05:30,000 Speaker 1: for some people. So number one, the number one thing 95 00:05:30,000 --> 00:05:34,800 Speaker 1: that happens is that inflation starts to get measured in 96 00:05:35,200 --> 00:05:39,280 Speaker 1: smaller increments or I should say, in smaller time frequencies. 97 00:05:39,800 --> 00:05:44,440 Speaker 1: So right now we measure inflation um normally year over year, 98 00:05:45,040 --> 00:05:47,440 Speaker 1: and so we look at prices are price basket right 99 00:05:47,440 --> 00:05:52,400 Speaker 1: now and we look at uh, you know, October prices 100 00:05:52,400 --> 00:05:56,000 Speaker 1: were you know, seven percent higher than they were in October. 101 00:05:57,760 --> 00:06:03,480 Speaker 1: Now in certain things and sir items and certain time periods. Recently, 102 00:06:03,480 --> 00:06:07,520 Speaker 1: we've measured inflation month over month, So hey, for gas, 103 00:06:08,080 --> 00:06:12,240 Speaker 1: for diesel, for oil, for food, for rent, it was 104 00:06:12,360 --> 00:06:15,240 Speaker 1: up this much month over month, and that just means 105 00:06:15,279 --> 00:06:18,560 Speaker 1: October of this year versus September of this year, So 106 00:06:18,600 --> 00:06:22,440 Speaker 1: how much did the prices change this month? And so 107 00:06:22,520 --> 00:06:25,840 Speaker 1: when you start to see hyper inflation take route, that 108 00:06:25,880 --> 00:06:29,520 Speaker 1: time period changes, so nobody ever looks at year over 109 00:06:29,600 --> 00:06:33,080 Speaker 1: year anymore. Month over month becomes the standard, and then 110 00:06:33,080 --> 00:06:35,919 Speaker 1: people start to look at week over week inflation. And 111 00:06:35,960 --> 00:06:39,200 Speaker 1: when you start to see prices going up every single month, 112 00:06:39,640 --> 00:06:44,880 Speaker 1: every single week, eventually people start looking at daily price increases. 113 00:06:45,680 --> 00:06:49,239 Speaker 1: Now this is where things start to really collapse economically speaking, 114 00:06:49,680 --> 00:06:53,919 Speaker 1: But that is the shrinking time periods in between the 115 00:06:54,000 --> 00:06:58,440 Speaker 1: measurements of prices is one of the early hallmarks of 116 00:06:58,480 --> 00:07:02,400 Speaker 1: the onset of hyper and aation. Now, think about what 117 00:07:02,440 --> 00:07:05,160 Speaker 1: this would do to you on a you know, if 118 00:07:05,160 --> 00:07:07,520 Speaker 1: you're operating a business, if you're working, if you're trying 119 00:07:07,520 --> 00:07:10,360 Speaker 1: to schedule out your life, If you're looking around and 120 00:07:10,400 --> 00:07:14,080 Speaker 1: you're seeing prices change every single day and the prices 121 00:07:14,200 --> 00:07:16,720 Speaker 1: only go up, what is that going to do to 122 00:07:16,840 --> 00:07:19,800 Speaker 1: your psyche? You're gonna feel very stressed out. Number one. 123 00:07:20,000 --> 00:07:23,160 Speaker 1: You're gonna feel discouraged because no matter how much you make, 124 00:07:23,280 --> 00:07:26,320 Speaker 1: you have to spend it very quickly, otherwise you won't 125 00:07:26,320 --> 00:07:28,080 Speaker 1: be able to buy that same stuff with it. So 126 00:07:28,320 --> 00:07:31,600 Speaker 1: it virtually eliminates the possibility of saving for any large 127 00:07:31,600 --> 00:07:34,480 Speaker 1: purchases in the future because the prices go up faster 128 00:07:34,560 --> 00:07:36,960 Speaker 1: than you can even save right now, at least for 129 00:07:37,000 --> 00:07:39,640 Speaker 1: people who save in US dollars. Yes, over the long 130 00:07:39,680 --> 00:07:42,120 Speaker 1: periods of time in a roads, you're purchasing power. But 131 00:07:42,520 --> 00:07:45,160 Speaker 1: for a lot of people, you still have the opportunity 132 00:07:45,200 --> 00:07:47,800 Speaker 1: to save up significant sums of money if you want 133 00:07:47,840 --> 00:07:51,120 Speaker 1: to and use it to make purchases. Yes, if you're 134 00:07:51,160 --> 00:07:53,480 Speaker 1: trying to save up for something, let's say a hundred 135 00:07:53,520 --> 00:07:57,080 Speaker 1: thousand dollars, it might take you years to do that, 136 00:07:57,440 --> 00:08:00,280 Speaker 1: and by the time you get to that point, maybe 137 00:08:00,280 --> 00:08:02,520 Speaker 1: you need a hundred twenty dollars or a hundred thirty 138 00:08:02,920 --> 00:08:05,080 Speaker 1: dollars to get you what used to be a hundred 139 00:08:05,080 --> 00:08:08,480 Speaker 1: thousand dollars. But when hyper inflation starts to set in 140 00:08:09,280 --> 00:08:12,480 Speaker 1: and prices are going up every day you have that's 141 00:08:12,480 --> 00:08:16,680 Speaker 1: that's no longer an option for anybody, because the rate 142 00:08:16,720 --> 00:08:20,440 Speaker 1: at which you can save is surpassed by the rate 143 00:08:20,440 --> 00:08:24,760 Speaker 1: of inflation. So if you can save hundred dollars a 144 00:08:24,880 --> 00:08:28,360 Speaker 1: day while life is costing you two hundred dollars a 145 00:08:28,440 --> 00:08:31,440 Speaker 1: day more, so it's impossible to save for any large purchases. 146 00:08:31,480 --> 00:08:38,319 Speaker 1: So it locks people in to their socioeconomic UH step 147 00:08:38,360 --> 00:08:40,160 Speaker 1: of the ladder that they're on, rung of the ladder 148 00:08:40,200 --> 00:08:42,520 Speaker 1: that they're on, and then starts to push people down. 149 00:08:42,840 --> 00:08:46,200 Speaker 1: It becomes virtually impossible for people to move up the ladder. 150 00:08:46,240 --> 00:08:49,040 Speaker 1: You can't save, you can't have that time preference for 151 00:08:49,080 --> 00:08:52,600 Speaker 1: looking at the long term future, you can't prepare for investing, 152 00:08:52,960 --> 00:08:54,520 Speaker 1: you can't do a lot of these things that are 153 00:08:54,600 --> 00:08:58,480 Speaker 1: necessary for economic growth long term. So it's very, very 154 00:08:58,520 --> 00:09:03,880 Speaker 1: devastating for individ jewels financial UH status is and for 155 00:09:03,920 --> 00:09:07,720 Speaker 1: the overall economy. The second thing that starts to happen 156 00:09:07,800 --> 00:09:11,880 Speaker 1: is that there's not enough money. And this is this 157 00:09:11,960 --> 00:09:15,640 Speaker 1: is one of those counterintuitive things that happen. When you 158 00:09:15,760 --> 00:09:19,480 Speaker 1: study what goes on in the individual lives of of 159 00:09:19,559 --> 00:09:22,480 Speaker 1: people during hyperinflation, one of the things you'll notice is 160 00:09:22,640 --> 00:09:26,280 Speaker 1: there's this general sense everywhere with everybody that there's just 161 00:09:26,400 --> 00:09:29,520 Speaker 1: not enough money because the prices are so high that 162 00:09:29,559 --> 00:09:33,520 Speaker 1: nobody can afford to get things, and so everybody thinks, hey, 163 00:09:33,760 --> 00:09:37,600 Speaker 1: if I need more money, then that's the solution for 164 00:09:37,679 --> 00:09:41,360 Speaker 1: the economy. Right. Um, if I need more money then 165 00:09:41,720 --> 00:09:45,120 Speaker 1: and more money would fix my problems, then clearly more 166 00:09:45,120 --> 00:09:48,120 Speaker 1: money would fix the entire economy's problems. And so the 167 00:09:48,200 --> 00:09:52,480 Speaker 1: policymakers who are in charge fall prey to this uh 168 00:09:52,520 --> 00:09:57,040 Speaker 1: incorrect assumption and think that, hey, if we just print 169 00:09:57,040 --> 00:09:59,440 Speaker 1: a little bit more money, we can use it to 170 00:09:59,480 --> 00:10:01,800 Speaker 1: buy this thing, and that will fix the problems, and 171 00:10:01,840 --> 00:10:04,120 Speaker 1: then we will have enough to go around. But the 172 00:10:04,160 --> 00:10:07,400 Speaker 1: problem is that the money isn't the wealth. So we've 173 00:10:07,400 --> 00:10:10,720 Speaker 1: talked about this before, but money just measures wealth. Money 174 00:10:10,800 --> 00:10:13,920 Speaker 1: is where the value is stored in between your labor 175 00:10:13,960 --> 00:10:17,440 Speaker 1: being exchanged for real wealth. And so it's like a pizza. 176 00:10:17,880 --> 00:10:20,920 Speaker 1: You have eight slices of pizza. Somebody else comes over 177 00:10:20,960 --> 00:10:23,400 Speaker 1: for dinner. You realize you don't have enough pizza. You 178 00:10:23,440 --> 00:10:25,640 Speaker 1: need more slices. So what do you do. You go 179 00:10:26,200 --> 00:10:30,199 Speaker 1: and slice each of your pizza slices into two slices. 180 00:10:30,520 --> 00:10:35,440 Speaker 1: Now you have sixteen slices of pizza. Did that solve anything? No, 181 00:10:35,800 --> 00:10:39,280 Speaker 1: because now instead of you needing four pieces of pizza 182 00:10:39,320 --> 00:10:41,720 Speaker 1: to get full, now you need eight pieces of pizza 183 00:10:41,760 --> 00:10:45,160 Speaker 1: to get full. Because the slices, which is the money, 184 00:10:45,640 --> 00:10:49,640 Speaker 1: just represents the measurement of how much pizza there is. 185 00:10:49,920 --> 00:10:52,880 Speaker 1: So when you increase the number of slices the units 186 00:10:52,920 --> 00:10:56,160 Speaker 1: of measurement, you decrease the size of those units the 187 00:10:56,280 --> 00:11:00,280 Speaker 1: value that is actually represented there. And same thing with money. 188 00:11:00,280 --> 00:11:02,240 Speaker 1: When you print a bunch of money, you don't create 189 00:11:02,360 --> 00:11:05,800 Speaker 1: more wealth. You don't print more goods and services into existence. 190 00:11:06,240 --> 00:11:09,160 Speaker 1: The only thing you do is you increase the quantity 191 00:11:09,160 --> 00:11:12,720 Speaker 1: of units needed to measure the same amount of wealth. 192 00:11:13,240 --> 00:11:16,320 Speaker 1: And so there's really a wealth shortage that's going on here, 193 00:11:16,360 --> 00:11:19,080 Speaker 1: not a money shortage. And by increasing the quantity of 194 00:11:19,080 --> 00:11:21,880 Speaker 1: money to solve the problem, you're not doing anything other 195 00:11:21,960 --> 00:11:24,160 Speaker 1: than increasing the amount of money necessary to get the 196 00:11:24,200 --> 00:11:27,200 Speaker 1: same amount of wealth. So there's this general sense that 197 00:11:27,280 --> 00:11:29,800 Speaker 1: I need more money, and so people try and do 198 00:11:29,840 --> 00:11:32,679 Speaker 1: what they can to get more and more and more money. 199 00:11:32,720 --> 00:11:35,160 Speaker 1: But knowing that the prices are going up, then as 200 00:11:35,160 --> 00:11:36,640 Speaker 1: soon as they have the money, they have to get 201 00:11:36,720 --> 00:11:40,560 Speaker 1: rid of it as fast as possible. Um. The next 202 00:11:40,559 --> 00:11:43,280 Speaker 1: thing that starts to happen is power outages. So this 203 00:11:43,400 --> 00:11:47,160 Speaker 1: is something that's very um common right now in Lebanon 204 00:11:47,800 --> 00:11:52,000 Speaker 1: is that there are massive rolling blackouts that are sometimes 205 00:11:52,000 --> 00:11:56,280 Speaker 1: scheduled and sometimes not. UM. There are power outages, and 206 00:11:56,320 --> 00:11:59,439 Speaker 1: so you have people trying to work and then suddenly 207 00:11:59,480 --> 00:12:01,520 Speaker 1: they can't because the power goes down. So they've got 208 00:12:01,559 --> 00:12:03,920 Speaker 1: no internet. You've got people trying to get from point 209 00:12:03,960 --> 00:12:06,839 Speaker 1: A to point B transportation, and then suddenly they can't 210 00:12:07,040 --> 00:12:11,120 Speaker 1: because there's no power. There's gridlock. There's some sort of 211 00:12:11,240 --> 00:12:16,600 Speaker 1: UM problem that's eight steps removed from the original problem. UM. 212 00:12:16,720 --> 00:12:20,120 Speaker 1: Power outages start because now the country just can't afford 213 00:12:20,480 --> 00:12:24,600 Speaker 1: to buy energy. Many countries import their energy and they 214 00:12:24,600 --> 00:12:26,800 Speaker 1: can't afford to buy it anymore. Well, how do they 215 00:12:26,800 --> 00:12:29,240 Speaker 1: buy it? Well, normally they're going to buy US dollars, 216 00:12:29,280 --> 00:12:31,240 Speaker 1: how do they buy U S dollars with their own currency? 217 00:12:31,480 --> 00:12:33,880 Speaker 1: But their own currency is becoming worth less and less 218 00:12:33,920 --> 00:12:35,280 Speaker 1: and less, and so they have to print more and 219 00:12:35,280 --> 00:12:37,000 Speaker 1: more of their own currency to buy US dollars to 220 00:12:37,000 --> 00:12:40,360 Speaker 1: buy energy, and so it's becoming more and more unaffordable 221 00:12:40,400 --> 00:12:43,000 Speaker 1: for the country to get energy, and so the price 222 00:12:43,040 --> 00:12:45,600 Speaker 1: of energy goes up, and as they can't afford it, 223 00:12:45,679 --> 00:12:49,320 Speaker 1: now you've got power outages that are sometimes scheduled and 224 00:12:49,360 --> 00:12:53,040 Speaker 1: sometimes unscheduled rolling across the country, interrupting commerce and business 225 00:12:53,280 --> 00:12:56,520 Speaker 1: and everybody's lives. Now, this is just one more thing 226 00:12:56,600 --> 00:12:59,200 Speaker 1: out on top of everything we've talked about already that 227 00:12:59,360 --> 00:13:01,679 Speaker 1: is getting in the way of people being able to 228 00:13:01,720 --> 00:13:06,040 Speaker 1: survive and thrive economically speaking, because how are you going 229 00:13:06,080 --> 00:13:09,280 Speaker 1: to hold a job and be productive and make money 230 00:13:09,440 --> 00:13:13,680 Speaker 1: if you are constantly being interrupted by by power outages. 231 00:13:13,960 --> 00:13:16,679 Speaker 1: You're not going to be able to do that very successfully. 232 00:13:16,800 --> 00:13:21,320 Speaker 1: Um At. On top of that, now, the brain drain 233 00:13:21,720 --> 00:13:25,679 Speaker 1: that starts to happen in countries like this, what parents 234 00:13:25,960 --> 00:13:28,440 Speaker 1: who want the best for their kids would try and 235 00:13:28,559 --> 00:13:30,960 Speaker 1: keep their kids in a country that's collapsing like this 236 00:13:32,080 --> 00:13:36,600 Speaker 1: very few and so parents and families who want the 237 00:13:36,600 --> 00:13:39,280 Speaker 1: best for their children are looking around and saying, this 238 00:13:39,360 --> 00:13:42,120 Speaker 1: place is doomed. Get out of here as soon as 239 00:13:42,200 --> 00:13:45,240 Speaker 1: you can. Now, a lot of times those kids will leave. 240 00:13:45,240 --> 00:13:47,320 Speaker 1: They'll go get jobs, and they'll send money backs to 241 00:13:47,360 --> 00:13:51,600 Speaker 1: support their families, but they're not doing anything to help 242 00:13:51,640 --> 00:13:55,120 Speaker 1: out their local economy. In terms of the smartest people 243 00:13:55,280 --> 00:13:58,520 Speaker 1: all leaving instead of staying to come up with better solutions. 244 00:13:58,720 --> 00:14:01,120 Speaker 1: The hardest workers leaving go can make more money because 245 00:14:01,120 --> 00:14:03,800 Speaker 1: they're the best suited for the best opportunities instead of 246 00:14:03,840 --> 00:14:06,920 Speaker 1: staying and working on it, and so you've got the 247 00:14:06,960 --> 00:14:09,960 Speaker 1: brain during the best and the smartest people, the hardest 248 00:14:10,000 --> 00:14:14,240 Speaker 1: workers are all leaving because the opportunities are not there, 249 00:14:14,440 --> 00:14:16,920 Speaker 1: because they need to support their families, because their families 250 00:14:16,920 --> 00:14:18,920 Speaker 1: have told them since they were young that they need 251 00:14:18,960 --> 00:14:20,880 Speaker 1: to get out of there as soon as possible, and 252 00:14:20,920 --> 00:14:25,280 Speaker 1: so you don't have the people necessary to stay to 253 00:14:25,400 --> 00:14:28,920 Speaker 1: solve the problems. Um. Next up on the list is 254 00:14:28,960 --> 00:14:32,040 Speaker 1: things like food shortages, so same with power shortage outages. 255 00:14:32,200 --> 00:14:36,000 Speaker 1: Most food in most countries is imported, and so you 256 00:14:36,080 --> 00:14:38,960 Speaker 1: have you have food shortages where people will line up 257 00:14:39,200 --> 00:14:41,520 Speaker 1: and they'll try and get they'll try and get food, 258 00:14:41,640 --> 00:14:43,520 Speaker 1: and it'll be rationed and by the time they get 259 00:14:43,600 --> 00:14:45,120 Speaker 1: to their you know they're in the back of line. 260 00:14:45,120 --> 00:14:47,520 Speaker 1: By the attempt to get to the front, there's none left. 261 00:14:47,720 --> 00:14:50,920 Speaker 1: So you have massive food shortages again because everybody's trying 262 00:14:50,960 --> 00:14:53,240 Speaker 1: to buy it as soon as it's available, and then 263 00:14:53,560 --> 00:14:56,000 Speaker 1: it's gone. And then there's a wealth shortage, not a 264 00:14:56,040 --> 00:14:58,400 Speaker 1: money shortage, but people think it's a money shortage, so 265 00:14:58,440 --> 00:15:00,880 Speaker 1: they start to print money in order to solve this problem. 266 00:15:01,080 --> 00:15:03,240 Speaker 1: But that devalues their currency, so they need to print 267 00:15:03,240 --> 00:15:05,840 Speaker 1: more and more money to buy more food from overseas, 268 00:15:05,880 --> 00:15:09,080 Speaker 1: and it continues or from outside their borders, and so 269 00:15:09,120 --> 00:15:12,960 Speaker 1: it continues to compound the problems. Another one of these 270 00:15:13,000 --> 00:15:17,320 Speaker 1: problems is things like gas shortages UM. Specifically, my friend 271 00:15:17,600 --> 00:15:21,720 Speaker 1: talked about how they'll wait all night in line UM 272 00:15:21,760 --> 00:15:23,880 Speaker 1: at a gas station, wait for the gas station to 273 00:15:23,920 --> 00:15:26,600 Speaker 1: open up in the morning, and hopefully there's enough for 274 00:15:26,640 --> 00:15:29,400 Speaker 1: each one of them to get a gallon or two gallons, 275 00:15:29,840 --> 00:15:32,760 Speaker 1: and if they're too far back in the line, well, 276 00:15:33,080 --> 00:15:35,760 Speaker 1: it sucks. Now you gotta walk home. You just wasted 277 00:15:35,840 --> 00:15:39,040 Speaker 1: all that time not being productive, not being with your family, 278 00:15:39,080 --> 00:15:40,880 Speaker 1: not doing something else that you could have been doing 279 00:15:41,160 --> 00:15:42,960 Speaker 1: in hopes that you would get something, and you don't 280 00:15:43,000 --> 00:15:46,400 Speaker 1: actually end up getting anything for it. And so imagine 281 00:15:46,400 --> 00:15:49,720 Speaker 1: the morale in a situation like this, The ability to 282 00:15:49,800 --> 00:15:53,920 Speaker 1: continue to perform your vital duty is just uh plummets 283 00:15:53,960 --> 00:15:57,520 Speaker 1: for everybody across the entire economy. UM. Any one of 284 00:15:57,560 --> 00:16:01,960 Speaker 1: these problems by themselves would be devastating, and not only 285 00:16:02,000 --> 00:16:05,240 Speaker 1: are they symptoms of the deeper problem, which is the money, 286 00:16:05,280 --> 00:16:08,040 Speaker 1: but they also compound on each other and they feed 287 00:16:08,080 --> 00:16:11,320 Speaker 1: into each other, and you can't stop or solve one 288 00:16:11,960 --> 00:16:16,960 Speaker 1: UM without stopping and solving the others. So now let's 289 00:16:17,000 --> 00:16:20,160 Speaker 1: talk about prices changing rapidly. So we talked about prices 290 00:16:20,240 --> 00:16:22,920 Speaker 1: changing daily. When it gets really bad, prices start to 291 00:16:23,000 --> 00:16:27,360 Speaker 1: change even hourly. Sometimes this happened in Zimbabwe, some it's 292 00:16:27,360 --> 00:16:32,480 Speaker 1: happened recently in Lebanon. UM. When prices change rapidly, like hourly, 293 00:16:32,920 --> 00:16:35,280 Speaker 1: you'll go and you'll go and try and buy something, 294 00:16:35,640 --> 00:16:39,920 Speaker 1: and in live time you'll see the prices being changed. Really, 295 00:16:39,960 --> 00:16:43,360 Speaker 1: what's happening is the value of the object is not changing, 296 00:16:43,400 --> 00:16:45,680 Speaker 1: it's the value of the currency changing. So you want 297 00:16:45,680 --> 00:16:47,640 Speaker 1: to go buy a loaf of bread, there's gonna be 298 00:16:47,720 --> 00:16:51,160 Speaker 1: two prices posted there. And this is as a site. 299 00:16:51,200 --> 00:16:55,120 Speaker 1: Note this is another hallmark of hyperinflation setting in is 300 00:16:55,160 --> 00:16:59,240 Speaker 1: when UM you have multiple currencies starting to be used 301 00:16:59,640 --> 00:17:04,160 Speaker 1: in UH in regular day to day commerce, not official commerce, 302 00:17:04,160 --> 00:17:08,120 Speaker 1: but regular regular people day to day commerce. So specifically 303 00:17:08,160 --> 00:17:12,399 Speaker 1: in Lebanon, they their their pound. Their lira is one price, 304 00:17:12,480 --> 00:17:16,000 Speaker 1: and then the euro and the dollar are are other prices, 305 00:17:16,640 --> 00:17:21,040 Speaker 1: and so the the the exchange rate between the lira 306 00:17:21,240 --> 00:17:25,240 Speaker 1: the pound they use that those terms interchangeably. There those 307 00:17:25,280 --> 00:17:30,960 Speaker 1: ones are constantly changing. The the pound and the and 308 00:17:31,000 --> 00:17:34,399 Speaker 1: the I'm sorry, the euro and the dollar are not 309 00:17:34,560 --> 00:17:37,960 Speaker 1: changing as rapidly um if at all. And so as 310 00:17:38,000 --> 00:17:40,960 Speaker 1: the value of their own currency falls versus let's say 311 00:17:40,960 --> 00:17:44,600 Speaker 1: the dollar, their prices of how much of that of 312 00:17:44,640 --> 00:17:47,679 Speaker 1: their own currency it will take to get that item 313 00:17:47,800 --> 00:17:52,600 Speaker 1: like that loaf of bread will continue to increase. And 314 00:17:52,680 --> 00:17:54,840 Speaker 1: so you'll see that happening in lifetime. So a lot 315 00:17:54,840 --> 00:17:56,919 Speaker 1: of times people go and they'll go to buy a 316 00:17:56,920 --> 00:17:59,600 Speaker 1: loaf of bread, let's say, and you'll get there and 317 00:17:59,640 --> 00:18:03,280 Speaker 1: you'll have of your you know, your million million dollars 318 00:18:03,280 --> 00:18:05,639 Speaker 1: that you need to buy that loaf of bread. You 319 00:18:05,680 --> 00:18:07,720 Speaker 1: get there and you realize, oh, now that loaf of 320 00:18:07,720 --> 00:18:10,240 Speaker 1: bread is two million dollars instead of a million dollars. 321 00:18:10,440 --> 00:18:13,560 Speaker 1: So you go back to the bank, you get your 322 00:18:14,320 --> 00:18:16,440 Speaker 1: your other two million dollars out of your bank account, 323 00:18:17,240 --> 00:18:19,920 Speaker 1: uh in order to buy this bread. And now you've 324 00:18:19,920 --> 00:18:22,960 Speaker 1: reached your daily max withdrawal because they have a daily 325 00:18:22,960 --> 00:18:25,760 Speaker 1: limit of two million dollars that you can withdraw. And 326 00:18:25,800 --> 00:18:28,119 Speaker 1: they set these limits in order to try and stop 327 00:18:28,160 --> 00:18:30,399 Speaker 1: inflation from happening, because if they let you withdraw all 328 00:18:30,440 --> 00:18:32,199 Speaker 1: of your money. Then people would just spend all their 329 00:18:32,200 --> 00:18:35,200 Speaker 1: money immediately. So you you go get your other million 330 00:18:35,200 --> 00:18:37,520 Speaker 1: dollars from the bank. That's the end of the amount 331 00:18:37,560 --> 00:18:39,479 Speaker 1: that you can take for that day. Now you go 332 00:18:39,560 --> 00:18:41,960 Speaker 1: back to the bread maker, you try to buy your 333 00:18:42,000 --> 00:18:43,920 Speaker 1: loaf of bread. You get there and you realize now 334 00:18:43,960 --> 00:18:48,040 Speaker 1: the price is three million dollars. Now you're stuck. It 335 00:18:48,080 --> 00:18:50,000 Speaker 1: doesn't matter how much money you have in the bank. 336 00:18:50,520 --> 00:18:52,560 Speaker 1: You've got two million dollars in your hand. You can't 337 00:18:52,560 --> 00:18:54,520 Speaker 1: get any more today. And that price of that loaf 338 00:18:54,520 --> 00:18:56,720 Speaker 1: of the bread just went up another million dollars in 339 00:18:56,760 --> 00:18:59,240 Speaker 1: the last hour, and now it's three million dollars and 340 00:18:59,280 --> 00:19:02,480 Speaker 1: you can't get any more. And so this is how 341 00:19:02,640 --> 00:19:04,880 Speaker 1: this is. I'm this I'm not making this up as 342 00:19:04,920 --> 00:19:09,720 Speaker 1: like a hyperbolic imaginary story. This is the real, the 343 00:19:09,920 --> 00:19:14,840 Speaker 1: reality of the situation that real people in Lebanon today 344 00:19:14,840 --> 00:19:19,440 Speaker 1: are facing. In Zimbabwe, have faced, in Argentina and Venezuela 345 00:19:19,560 --> 00:19:25,000 Speaker 1: have faced people living under hyper inflation. This is the reality. 346 00:19:25,160 --> 00:19:28,639 Speaker 1: This is what happens when governments allowed their currencies to 347 00:19:28,800 --> 00:19:33,800 Speaker 1: get printed into oblivion. Um now I want to discuss 348 00:19:33,840 --> 00:19:37,679 Speaker 1: again about that bank limit, because in you'll see photos 349 00:19:37,720 --> 00:19:39,960 Speaker 1: if you look up from our Germany, the Republican Germany, 350 00:19:39,960 --> 00:19:43,320 Speaker 1: you'll see wheelbarrels full of cash. You'll see the Zimbabwe photos, 351 00:19:43,320 --> 00:19:46,480 Speaker 1: people taking, you know, stacks and palets of cash. Let's 352 00:19:46,520 --> 00:19:49,200 Speaker 1: say hyper inflation sets in the United States, it would 353 00:19:49,240 --> 00:19:51,840 Speaker 1: not be wheelbarrels full of cash. Nobody's gonna Nobody lives 354 00:19:51,880 --> 00:19:54,199 Speaker 1: like that. Here we have a very low population that 355 00:19:54,280 --> 00:19:57,919 Speaker 1: uses all cash for everything, very low unbanked population. But 356 00:19:58,000 --> 00:20:02,240 Speaker 1: instead we do have bit cards and credit cards, we 357 00:20:02,320 --> 00:20:06,960 Speaker 1: have a t m S, we have daily transaction limits. 358 00:20:07,880 --> 00:20:11,000 Speaker 1: Most people have probably never run into this, but if 359 00:20:11,080 --> 00:20:14,560 Speaker 1: you ever try and transfer too much money at one point, 360 00:20:14,920 --> 00:20:17,200 Speaker 1: your bank will put a stop to it. If you 361 00:20:17,240 --> 00:20:19,160 Speaker 1: ever try and spend too much money on your debit 362 00:20:19,160 --> 00:20:21,280 Speaker 1: card in one day, your bank will put a stop 363 00:20:21,359 --> 00:20:25,320 Speaker 1: to it. There are limits. And if the government is 364 00:20:25,359 --> 00:20:28,080 Speaker 1: looking and saying, hey, we know that as people spend money, 365 00:20:28,160 --> 00:20:30,440 Speaker 1: the prices go up, so we need to stop people 366 00:20:30,440 --> 00:20:33,080 Speaker 1: from spending money, what are they gonna do. They're going 367 00:20:33,119 --> 00:20:37,719 Speaker 1: to impose daily spending limits. So in this case, it 368 00:20:37,760 --> 00:20:41,879 Speaker 1: doesn't matter if you've got ten billion dollars cash in 369 00:20:41,960 --> 00:20:45,560 Speaker 1: the bank, has no bearing. If the daily limit is 370 00:20:45,640 --> 00:20:50,920 Speaker 1: one million dollars, and so the banking limits become a 371 00:20:50,960 --> 00:20:54,919 Speaker 1: tool that the government's use to try and stop inflation, 372 00:20:55,520 --> 00:20:59,440 Speaker 1: even though that is almost worse than a band aid 373 00:20:59,720 --> 00:21:03,320 Speaker 1: on the situation. And right now in Lebanon, you actually 374 00:21:03,359 --> 00:21:09,240 Speaker 1: have people robbing the banks just taking what is actually 375 00:21:09,359 --> 00:21:12,679 Speaker 1: in their accounts, so they're not robbing banks. You know, 376 00:21:13,720 --> 00:21:15,680 Speaker 1: if you if you've got let's say ten thousand dollars 377 00:21:15,680 --> 00:21:18,320 Speaker 1: in your bank account, and you you decided to rob 378 00:21:18,320 --> 00:21:20,440 Speaker 1: a bank, you're and you're going to steal a million dollars, 379 00:21:20,440 --> 00:21:22,320 Speaker 1: so you're you're you're stealing the bank's money where somebody 380 00:21:22,359 --> 00:21:24,800 Speaker 1: else's money. It's not like that in Lebanon. Right now. 381 00:21:25,280 --> 00:21:29,200 Speaker 1: Their bank robberies happening just so that people can steal 382 00:21:29,440 --> 00:21:31,840 Speaker 1: the amount of money that is in their own bank 383 00:21:31,840 --> 00:21:35,560 Speaker 1: accounts because the limits are preventing them from being able 384 00:21:35,560 --> 00:21:38,320 Speaker 1: to access their own money, so they're trying to do 385 00:21:38,359 --> 00:21:43,240 Speaker 1: this just to survive. Um. The next thing that happens 386 00:21:43,280 --> 00:21:46,440 Speaker 1: as a result of this is that laws are constantly changing. 387 00:21:46,840 --> 00:21:50,520 Speaker 1: You have incompetent leadership, obviously, otherwise you wouldn't be in 388 00:21:50,520 --> 00:21:55,880 Speaker 1: this situation in the first place. You have new leaders 389 00:21:55,960 --> 00:21:59,240 Speaker 1: coming in you have riots taking place. You have political 390 00:21:59,240 --> 00:22:02,080 Speaker 1: instability of new people coming into power then leaving power. 391 00:22:02,320 --> 00:22:06,240 Speaker 1: So you have laws constantly changing, you have new laws 392 00:22:06,280 --> 00:22:09,200 Speaker 1: being talked about that some people say, Okay, well, let's 393 00:22:09,240 --> 00:22:11,160 Speaker 1: just act as if this new law is gonna get past, 394 00:22:11,200 --> 00:22:13,840 Speaker 1: because it's gonna be uh, you know, pass soon, and 395 00:22:13,840 --> 00:22:15,639 Speaker 1: it will be good if it happens this way, and 396 00:22:15,680 --> 00:22:17,639 Speaker 1: so let's act because we have a high likelihood that 397 00:22:17,640 --> 00:22:19,800 Speaker 1: it happens. And then it doesn't happen, and so you 398 00:22:19,840 --> 00:22:23,879 Speaker 1: have all this instability of laws and regulations that puts 399 00:22:24,040 --> 00:22:27,800 Speaker 1: again the breaks on business activity. How can anybody make 400 00:22:27,840 --> 00:22:29,879 Speaker 1: future plans when you don't know what the rules of 401 00:22:29,920 --> 00:22:31,760 Speaker 1: the game are gonna be. This is one thing I 402 00:22:31,800 --> 00:22:38,840 Speaker 1: talked about fairly frequently that um a system with bad 403 00:22:39,040 --> 00:22:45,680 Speaker 1: rules that don't change that is better than a system 404 00:22:45,680 --> 00:22:49,359 Speaker 1: with constantly changing rules, even if those rules are better. 405 00:22:50,480 --> 00:22:53,600 Speaker 1: Why is that? Well, imagine you're playing a game and 406 00:22:53,640 --> 00:22:57,600 Speaker 1: the rules are constantly changing in an unpredictable manner. You 407 00:22:57,640 --> 00:23:01,240 Speaker 1: can take two steps forward. Now you cannot two steps forward. Now, 408 00:23:01,440 --> 00:23:03,879 Speaker 1: every time you roll this on the diet, that means 409 00:23:03,920 --> 00:23:06,240 Speaker 1: that you lose ten points. But now every time you 410 00:23:06,320 --> 00:23:08,720 Speaker 1: roll the dice that way, it means you gain ten points. 411 00:23:08,760 --> 00:23:11,400 Speaker 1: It's like it's impossible to form any sort of long 412 00:23:11,520 --> 00:23:15,960 Speaker 1: term strategy to try and move yourself forward towards achieving 413 00:23:15,960 --> 00:23:18,800 Speaker 1: the goal of winning if you have no idea what 414 00:23:18,880 --> 00:23:21,520 Speaker 1: the rules might be at any moment. So it doesn't matter. 415 00:23:21,680 --> 00:23:25,840 Speaker 1: Even if all of those rules are technically better, that 416 00:23:26,119 --> 00:23:29,720 Speaker 1: system is way worse off than a different system, a 417 00:23:29,760 --> 00:23:32,520 Speaker 1: different game that has one set of rules that never changes, 418 00:23:32,680 --> 00:23:35,080 Speaker 1: even if those rules are worse. Why well, because the 419 00:23:35,520 --> 00:23:39,879 Speaker 1: stability and the predictability of those worse rules allows people 420 00:23:39,880 --> 00:23:44,160 Speaker 1: to form strategies and plans that allow them to get ahead, 421 00:23:44,680 --> 00:23:48,760 Speaker 1: even if those rules are objectively worse. Because at least 422 00:23:48,800 --> 00:23:53,760 Speaker 1: the certainty allows the planning, and allowing the planning allows 423 00:23:53,760 --> 00:23:57,400 Speaker 1: people to make and form strategies that push them forward 424 00:23:57,520 --> 00:24:00,639 Speaker 1: and provide That's what provides the economic six sess, not 425 00:24:00,720 --> 00:24:03,880 Speaker 1: the rules themselves. It's the unchanging rules. And that's really 426 00:24:03,920 --> 00:24:06,080 Speaker 1: the what when you get down to the reason for 427 00:24:06,200 --> 00:24:09,720 Speaker 1: the Constitution in the United States, Uh, that's what rule 428 00:24:09,760 --> 00:24:12,159 Speaker 1: of law is. It's rule of law saying hey, here's 429 00:24:12,200 --> 00:24:15,399 Speaker 1: the here are the rules that no person can ever change. 430 00:24:15,400 --> 00:24:17,399 Speaker 1: Because we need a set of rules as the foundation 431 00:24:17,480 --> 00:24:21,159 Speaker 1: that cannot be changed, because that provides the foundation for 432 00:24:21,200 --> 00:24:24,520 Speaker 1: a prosperous society. If the rules can change every time 433 00:24:24,560 --> 00:24:28,080 Speaker 1: we get a new ruler, then nobody ever knows what 434 00:24:28,240 --> 00:24:30,600 Speaker 1: the next rules will be. And then you're under a 435 00:24:30,640 --> 00:24:33,119 Speaker 1: rule of man and the only limit on power is 436 00:24:33,520 --> 00:24:36,239 Speaker 1: the will of the person in power. And so it 437 00:24:36,280 --> 00:24:38,879 Speaker 1: gets it gets into rule of man versus rule of 438 00:24:38,960 --> 00:24:42,359 Speaker 1: law a little bit there. But at the end of 439 00:24:42,400 --> 00:24:45,199 Speaker 1: the day, the fact is, when you get into these 440 00:24:45,240 --> 00:24:47,920 Speaker 1: situations where you have a lot of hyper inflation, laws 441 00:24:47,920 --> 00:24:53,040 Speaker 1: are constantly changing and it makes business practically impossible, which 442 00:24:53,080 --> 00:24:58,080 Speaker 1: means the economy stars. So let's get into some some 443 00:24:58,080 --> 00:25:00,880 Speaker 1: some things of you know, some practical things to do 444 00:25:01,119 --> 00:25:04,120 Speaker 1: to prepare for this in terms of surviving and thriving. 445 00:25:04,280 --> 00:25:09,480 Speaker 1: Number one, sophisticated skills and environments like this become somewhat irrelevant. 446 00:25:10,400 --> 00:25:15,240 Speaker 1: The people who are UM, the people who have the 447 00:25:15,359 --> 00:25:19,919 Speaker 1: skills that are the white collar skills, really do not 448 00:25:20,160 --> 00:25:25,560 Speaker 1: have any sort of a UM broken world value, so 449 00:25:25,800 --> 00:25:30,919 Speaker 1: they become largely insignificant. UM. When you you know a 450 00:25:30,920 --> 00:25:33,200 Speaker 1: lot of white collar skills, let's say you even still 451 00:25:33,240 --> 00:25:36,879 Speaker 1: have the ability to make money. UM A lot of 452 00:25:36,920 --> 00:25:39,480 Speaker 1: things that you need are in such short supply that 453 00:25:39,520 --> 00:25:41,359 Speaker 1: you even if you have the money for it, you 454 00:25:41,400 --> 00:25:43,240 Speaker 1: can't buy it. Even if you have the money for 455 00:25:43,280 --> 00:25:46,159 Speaker 1: the bread um in your bank account, you don't have 456 00:25:46,200 --> 00:25:48,360 Speaker 1: the daily withdrawal limit to be able to buy it. 457 00:25:48,600 --> 00:25:50,439 Speaker 1: Even if you have the money for a tank of gas, 458 00:25:50,720 --> 00:25:52,520 Speaker 1: you don't have the ability to be the first in 459 00:25:52,640 --> 00:25:55,880 Speaker 1: line that night to get it because it was rationed out. Um. 460 00:25:55,960 --> 00:25:58,560 Speaker 1: Even if you have the money to afford all the 461 00:25:58,600 --> 00:26:01,119 Speaker 1: electricity you want, well, there's a rolling blackout in the area. 462 00:26:01,440 --> 00:26:05,400 Speaker 1: So a lot of the times, some of the sophisticated skills, 463 00:26:05,480 --> 00:26:09,320 Speaker 1: the white collar skills, become a lot less valuable relative 464 00:26:09,400 --> 00:26:12,840 Speaker 1: to the blue collar skills, the putting your hands to work, 465 00:26:12,920 --> 00:26:16,800 Speaker 1: knowing how to create and produce things for yourself. Um. 466 00:26:16,960 --> 00:26:21,800 Speaker 1: It really boils the society down to survival being the 467 00:26:21,800 --> 00:26:26,480 Speaker 1: thing that matters most, um, being able to provide for 468 00:26:26,680 --> 00:26:34,400 Speaker 1: those most basic needs you know Mislow's hierarchy of needs. Um. 469 00:26:34,480 --> 00:26:37,920 Speaker 1: So why so what to do? Then? So Number one, 470 00:26:37,960 --> 00:26:40,840 Speaker 1: this is gonna sound like I mean, in light of 471 00:26:40,840 --> 00:26:44,600 Speaker 1: the last couple of years, it's probably um, probably the 472 00:26:44,720 --> 00:26:49,119 Speaker 1: least uh, the least crazy. Uh. This could sound in 473 00:26:49,240 --> 00:26:52,000 Speaker 1: terms of recent history, but you do have to get 474 00:26:52,040 --> 00:26:54,879 Speaker 1: a little preppara ish. If you think there's a chance 475 00:26:54,880 --> 00:26:57,280 Speaker 1: of hyper inflation, you want to make sure you can 476 00:26:57,320 --> 00:26:59,680 Speaker 1: cover your base needs. You want to make sure that 477 00:26:59,720 --> 00:27:02,879 Speaker 1: you can and filter your water because at the end 478 00:27:02,920 --> 00:27:08,240 Speaker 1: of the day, utilities are always are very unstable and 479 00:27:08,280 --> 00:27:12,119 Speaker 1: go down during in these places with hyper inflation. So 480 00:27:12,160 --> 00:27:14,960 Speaker 1: if you think that's a possibility for you, you've got 481 00:27:14,960 --> 00:27:17,479 Speaker 1: to have a way to clean your own water, because 482 00:27:17,760 --> 00:27:20,159 Speaker 1: you might not have clean water coming in through your pipes. 483 00:27:21,240 --> 00:27:23,920 Speaker 1: You've got to have a way to feed yourself. So 484 00:27:23,960 --> 00:27:27,280 Speaker 1: whether that's storing a lot of food and being able to, 485 00:27:27,480 --> 00:27:30,200 Speaker 1: you know, slowly rashing yourself off of that, whether that's 486 00:27:30,240 --> 00:27:32,760 Speaker 1: the ability to go out some way and produce your 487 00:27:32,800 --> 00:27:35,359 Speaker 1: food for yourself, if you have the ability to grow it, 488 00:27:36,040 --> 00:27:39,120 Speaker 1: have animals, whatever it is. You have to have some 489 00:27:39,160 --> 00:27:43,159 Speaker 1: sort of some sort of an ability to produce food 490 00:27:43,400 --> 00:27:46,960 Speaker 1: for yourself because when push comes to shove, you might 491 00:27:47,000 --> 00:27:49,159 Speaker 1: have some days where you can't rely on other people 492 00:27:49,200 --> 00:27:54,280 Speaker 1: to get it for you. Um Things like shelter, things 493 00:27:54,320 --> 00:27:57,920 Speaker 1: like clothing, all of the most basic needs you do 494 00:27:58,160 --> 00:28:02,119 Speaker 1: somewhat have to be just a little bit prepared. You 495 00:28:02,200 --> 00:28:04,879 Speaker 1: don't have to go crazy. But the last two years 496 00:28:04,920 --> 00:28:08,760 Speaker 1: have shown very clearly when you have the eighth largest 497 00:28:08,800 --> 00:28:13,240 Speaker 1: economy in the world, the state of California, regularly having 498 00:28:13,320 --> 00:28:16,480 Speaker 1: rolling blackouts, you think that's not going to get worse. 499 00:28:16,800 --> 00:28:19,679 Speaker 1: As the financial conditions in this country get worse, it 500 00:28:19,800 --> 00:28:24,960 Speaker 1: is definitely not going to get better. Um. And so 501 00:28:25,160 --> 00:28:27,760 Speaker 1: you have to have a little bit of preparation for 502 00:28:27,800 --> 00:28:29,440 Speaker 1: some of these things. You don't have to go all out, 503 00:28:29,440 --> 00:28:30,959 Speaker 1: you don't have to spend a ton of money, but 504 00:28:31,000 --> 00:28:34,040 Speaker 1: you do have to be somewhat uh. You have to 505 00:28:34,119 --> 00:28:37,760 Speaker 1: somewhat recognize the fact that, UM, you may not be 506 00:28:37,880 --> 00:28:40,480 Speaker 1: able to always go into the grocery store and find 507 00:28:40,560 --> 00:28:43,560 Speaker 1: everything you need on the shelves and have the ability 508 00:28:43,600 --> 00:28:48,440 Speaker 1: to buy them. UM. The next thing, let's talk about debt. 509 00:28:49,240 --> 00:28:50,680 Speaker 1: There are two forms of debt that we need to 510 00:28:50,680 --> 00:28:55,200 Speaker 1: talk about, fixed rate and adjustable rate. Fixed rate debt 511 00:28:56,080 --> 00:29:01,440 Speaker 1: is in hyper inflation one of what it will It 512 00:29:01,480 --> 00:29:04,720 Speaker 1: becomes extinct, first of all, and so if you can 513 00:29:04,840 --> 00:29:08,360 Speaker 1: lock it in before hyper inflation sets in, it is 514 00:29:08,440 --> 00:29:11,800 Speaker 1: one of the most valuable assets that exists. Because fixed 515 00:29:11,880 --> 00:29:15,000 Speaker 1: rate debt is essentially shorting the dollar that's what it is. 516 00:29:15,520 --> 00:29:19,320 Speaker 1: Um when you uh. An example of shorting, just in 517 00:29:19,360 --> 00:29:21,480 Speaker 1: case you don't know what shorting is. Because when you like, 518 00:29:21,520 --> 00:29:23,600 Speaker 1: when you buy a stock, you buy it and then 519 00:29:23,640 --> 00:29:26,760 Speaker 1: you sell when you want your cash back, shorting is 520 00:29:26,800 --> 00:29:28,880 Speaker 1: the opposite. You sell stock first, then you buy it 521 00:29:28,920 --> 00:29:32,160 Speaker 1: back to close. Now that seems preposterous to people a 522 00:29:32,200 --> 00:29:33,840 Speaker 1: lot of times the first time hearing about I remember 523 00:29:33,880 --> 00:29:36,880 Speaker 1: the first time somebody explained shorting to me. It literally 524 00:29:36,920 --> 00:29:40,240 Speaker 1: took an hour conversation for me to realize what they 525 00:29:40,240 --> 00:29:42,240 Speaker 1: were saying. Now, part of that was because of the 526 00:29:42,280 --> 00:29:45,480 Speaker 1: way they we were describing it, but which I I'll 527 00:29:45,480 --> 00:29:49,640 Speaker 1: fix for you here. So understand shorting With this iPhones 528 00:29:50,560 --> 00:29:53,160 Speaker 1: Every year the new iPhone comes out, right, so you 529 00:29:53,200 --> 00:29:55,880 Speaker 1: go to your friend it's uh, you know, a month 530 00:29:55,920 --> 00:29:59,440 Speaker 1: before the new iPhone comes out. You say, hey, hey friend, 531 00:29:59,520 --> 00:30:01,720 Speaker 1: I need need to borrow your iPhone. I know you've 532 00:30:01,760 --> 00:30:03,640 Speaker 1: got your old iPhone just sitting on your shelf. It's 533 00:30:03,640 --> 00:30:07,320 Speaker 1: the iPhone uh seven, Uh, can I borrow it from you? 534 00:30:07,440 --> 00:30:09,800 Speaker 1: And he says, sure, I'm not using it, here's my iPhone. 535 00:30:10,280 --> 00:30:12,880 Speaker 1: You take it and you immediately go listed on eBay 536 00:30:12,920 --> 00:30:14,840 Speaker 1: and you sell it and you sell it for let's 537 00:30:14,880 --> 00:30:18,160 Speaker 1: say five bucks. So you sell this old used iPhone 538 00:30:18,160 --> 00:30:21,480 Speaker 1: for five bucks. Now at this moment, what you've done 539 00:30:21,560 --> 00:30:24,600 Speaker 1: is you borrowed something and then you've exchanged that item 540 00:30:24,640 --> 00:30:27,880 Speaker 1: for something else. You have shorted the iPhone. That's what 541 00:30:27,920 --> 00:30:30,680 Speaker 1: a short is, when you borrow something and exchange it 542 00:30:30,720 --> 00:30:33,400 Speaker 1: for something else. You borrowed his iPhone and exchange it 543 00:30:33,440 --> 00:30:37,520 Speaker 1: for dollars. At this point, you owe your friend an iPhone. 544 00:30:38,200 --> 00:30:41,000 Speaker 1: You do not owe him dollars. You owe him an 545 00:30:41,000 --> 00:30:43,680 Speaker 1: iPhone because you've borrowed an iPhone with a promise to 546 00:30:43,720 --> 00:30:49,520 Speaker 1: repay an iPhone. You've also exchanged that iPhone for dollars, 547 00:30:49,560 --> 00:30:51,640 Speaker 1: which means that you've borrowed something in an exchange it 548 00:30:51,680 --> 00:30:54,600 Speaker 1: for something else, so you've shorted it now. Ideally, what 549 00:30:54,680 --> 00:30:56,800 Speaker 1: happens is a month later, the new iPhone comes out. 550 00:30:56,840 --> 00:30:59,600 Speaker 1: Then all existing iPhones drop in price by a hundred bucks. 551 00:30:59,720 --> 00:31:02,400 Speaker 1: You buy another iPhone seven on eBay for four hundred 552 00:31:02,400 --> 00:31:05,000 Speaker 1: dollars now, and you pocket the hundred dollar difference, and 553 00:31:05,040 --> 00:31:07,800 Speaker 1: you give your buddy back the iPhone seven, and he's 554 00:31:07,800 --> 00:31:09,840 Speaker 1: in the exact same position he was in before. He 555 00:31:09,880 --> 00:31:13,600 Speaker 1: has an iPhone seven still, and you have a nice, 556 00:31:13,640 --> 00:31:17,000 Speaker 1: cool hundred bucks in your pocket that you made. Now, 557 00:31:17,120 --> 00:31:22,040 Speaker 1: when you short a currency, you are again exchanging it. 558 00:31:22,200 --> 00:31:24,520 Speaker 1: So let's say you're shorting the dollar. You're gonna borrow 559 00:31:24,600 --> 00:31:27,720 Speaker 1: it and then you're going to exchange it for something else. 560 00:31:29,280 --> 00:31:32,680 Speaker 1: So if you borrow dollars and then exchange it for 561 00:31:32,720 --> 00:31:34,720 Speaker 1: something else, you might exchange it for another currency. You 562 00:31:34,800 --> 00:31:37,080 Speaker 1: might exchange it for bitcoin, you might exchange it for goal, 563 00:31:37,120 --> 00:31:40,760 Speaker 1: you might exchange it for a house. Most people don't 564 00:31:40,800 --> 00:31:43,480 Speaker 1: realize this, but when you have a mortgage on a house, 565 00:31:43,920 --> 00:31:48,120 Speaker 1: you are short the dollar, and especially if your mortgage 566 00:31:48,160 --> 00:31:52,280 Speaker 1: is bigger, larger than the total worth of your assets, 567 00:31:52,680 --> 00:31:57,480 Speaker 1: you are net short the dollar. Okay, so what do 568 00:31:57,600 --> 00:32:00,200 Speaker 1: shorts mean? So if if you borrow something in you 569 00:32:00,280 --> 00:32:02,160 Speaker 1: exchange it for something else, you owe that thing back. 570 00:32:02,200 --> 00:32:04,120 Speaker 1: So you owe the iPhone back. Let's go back to 571 00:32:04,120 --> 00:32:08,560 Speaker 1: the iPhone example. Ideally the iPhone goes down in value, 572 00:32:09,040 --> 00:32:11,120 Speaker 1: because if the iPhone goes down in value, you can 573 00:32:11,160 --> 00:32:14,560 Speaker 1: then buy it back in order to give it back 574 00:32:14,720 --> 00:32:17,600 Speaker 1: and then close out your transaction. But what happens if 575 00:32:17,880 --> 00:32:20,440 Speaker 1: Apple comes out and says, hey, we've got some issues 576 00:32:20,480 --> 00:32:23,360 Speaker 1: going on. Some internal team thinks some supply chain issues 577 00:32:23,960 --> 00:32:27,880 Speaker 1: we are having to as of uh, you know, immediately 578 00:32:28,400 --> 00:32:31,880 Speaker 1: shut down all iPhone production. Well, what do you think 579 00:32:31,920 --> 00:32:34,280 Speaker 1: is going to happen to all existing iPhones at that moment? 580 00:32:34,680 --> 00:32:39,600 Speaker 1: I think they're probably gonna start increasing in price pretty rapidly. 581 00:32:39,760 --> 00:32:43,000 Speaker 1: Because iPhones are a consumable product. They break, so the 582 00:32:43,080 --> 00:32:49,280 Speaker 1: supply of existing iPhones will immediately start decreasing instead of increasing. 583 00:32:49,320 --> 00:32:52,520 Speaker 1: Light they always have. And as people's iPhones break, they'll 584 00:32:52,560 --> 00:32:55,760 Speaker 1: need new iPhones in order to replace their old iPhones, 585 00:32:56,120 --> 00:32:58,240 Speaker 1: and so they'll be willing to pay more and more 586 00:32:58,280 --> 00:33:00,200 Speaker 1: to get their hands on them because the supply is 587 00:33:00,240 --> 00:33:03,480 Speaker 1: going down, and so in anticipation of that, people might 588 00:33:03,520 --> 00:33:06,160 Speaker 1: immediately starting to start to buy up all of the 589 00:33:06,160 --> 00:33:09,200 Speaker 1: inventory of iPhones, meaning that that price of the iPhone 590 00:33:09,240 --> 00:33:12,080 Speaker 1: might go up at that moment. What happens if your 591 00:33:12,080 --> 00:33:15,280 Speaker 1: buddy comes to you and he says, Hey, you borrowed 592 00:33:15,320 --> 00:33:18,480 Speaker 1: my iPhone. I want to take advantage of prices going up. 593 00:33:18,840 --> 00:33:20,880 Speaker 1: Give it back to me right now, because I'm gonna 594 00:33:20,920 --> 00:33:23,680 Speaker 1: go sell it and I'm gonna sell it for a profit. Well, 595 00:33:23,720 --> 00:33:28,120 Speaker 1: now you are screwed because you borrowed an iPhone from him. 596 00:33:28,240 --> 00:33:30,960 Speaker 1: What do you owe him back an iPhone. You don't 597 00:33:30,960 --> 00:33:33,200 Speaker 1: know him back five dollars. You don't owe him back 598 00:33:33,200 --> 00:33:35,440 Speaker 1: anything but an iPhone. So you have to go out 599 00:33:35,520 --> 00:33:38,040 Speaker 1: out into the open market and buy an iPhone seven 600 00:33:38,040 --> 00:33:40,880 Speaker 1: and let's say they're eight hundred dollars. Now you have 601 00:33:41,000 --> 00:33:43,640 Speaker 1: to buy that iPhone for eight hundred dollars, give it 602 00:33:43,680 --> 00:33:46,440 Speaker 1: to him, and now you are out eight hundred dollars. 603 00:33:46,440 --> 00:33:48,720 Speaker 1: When you originally sold it for five hundred, you net 604 00:33:48,760 --> 00:33:53,480 Speaker 1: lost three hundred dollars. So when you short something, your 605 00:33:53,560 --> 00:33:55,400 Speaker 1: goal is for it to go down in value because 606 00:33:55,440 --> 00:33:58,120 Speaker 1: you're selling it before you buy it. You're borrowing it 607 00:33:58,160 --> 00:33:59,400 Speaker 1: so that you can sell it and then buy it 608 00:33:59,440 --> 00:34:02,840 Speaker 1: back later to close out the transaction. So when you're 609 00:34:03,000 --> 00:34:06,240 Speaker 1: shorting the dollar, you are hoping the dollar goes down 610 00:34:06,280 --> 00:34:10,560 Speaker 1: in value. Now that seems a little bit uh um 611 00:34:10,560 --> 00:34:14,880 Speaker 1: confusing at first, because normally we don't measure the value 612 00:34:14,880 --> 00:34:17,719 Speaker 1: of dollars in other things. We do it the other 613 00:34:17,719 --> 00:34:21,280 Speaker 1: way around, so we measure things in dollars the value 614 00:34:21,280 --> 00:34:23,680 Speaker 1: of things with dollars. So what would that look like 615 00:34:23,840 --> 00:34:26,320 Speaker 1: in in a reality. Let's say you short the dollars, 616 00:34:26,320 --> 00:34:29,640 Speaker 1: so you borrow dollars, you exchange those dollars for a 617 00:34:29,680 --> 00:34:33,400 Speaker 1: rental property. When you exchange those dollars for a rental property, 618 00:34:33,600 --> 00:34:36,040 Speaker 1: you have now short of the dollar, and you're hoping 619 00:34:36,040 --> 00:34:38,320 Speaker 1: the dollar goes down in value. Well, if the dollar 620 00:34:38,400 --> 00:34:41,640 Speaker 1: goes down in value, that's just another way of saying 621 00:34:41,680 --> 00:34:46,400 Speaker 1: that rental property goes up in value relative to dollars. 622 00:34:47,680 --> 00:34:54,239 Speaker 1: And so when you purchase real assets with borrowed dollars, 623 00:34:55,200 --> 00:34:59,239 Speaker 1: you are prepping for hyper inflation by shorting the thing 624 00:34:59,320 --> 00:35:01,200 Speaker 1: that you are are be sure is going to go 625 00:35:01,280 --> 00:35:04,760 Speaker 1: down in value, the currency, and then using that currency 626 00:35:04,800 --> 00:35:06,360 Speaker 1: to buy things that you're pretty sure are going to 627 00:35:06,440 --> 00:35:09,319 Speaker 1: go up in value from the hyper inflation, the things 628 00:35:09,320 --> 00:35:13,400 Speaker 1: that people absolutely need, the things like maybe it's energy, 629 00:35:13,680 --> 00:35:17,480 Speaker 1: maybe it's food, maybe it's farm land, maybe it's real estate, 630 00:35:17,800 --> 00:35:21,960 Speaker 1: maybe it's gold, whatever it is. When you shorten the 631 00:35:22,040 --> 00:35:25,680 Speaker 1: dollar and then use those dollars that you borrowed to 632 00:35:25,960 --> 00:35:28,960 Speaker 1: buy things that people have always needed and will always 633 00:35:28,960 --> 00:35:32,319 Speaker 1: continue to need, those are the type of trades that 634 00:35:32,400 --> 00:35:36,839 Speaker 1: typically do very well during currency transitions because the currency collapses. 635 00:35:37,440 --> 00:35:40,080 Speaker 1: Another way of saying the currency collapses is saying that 636 00:35:40,280 --> 00:35:44,920 Speaker 1: the supply of currency becomes extremely high. The money becomes 637 00:35:44,920 --> 00:35:48,919 Speaker 1: extremely abundant, and so when you go out there, then 638 00:35:49,560 --> 00:35:52,400 Speaker 1: let's say you borrowed Let's say you borrow five dollars 639 00:35:52,400 --> 00:35:56,359 Speaker 1: to buy a house today, and then hyper inflation sets in, 640 00:35:56,920 --> 00:36:00,600 Speaker 1: that house becomes worth a million dollars to million dollars 641 00:36:00,800 --> 00:36:04,080 Speaker 1: three million dollars. The only way that the price goes 642 00:36:04,160 --> 00:36:06,439 Speaker 1: up that high is because there's enough money out there 643 00:36:06,480 --> 00:36:09,000 Speaker 1: to support that. Well, let's say the price of the 644 00:36:09,000 --> 00:36:11,520 Speaker 1: house now becomes worth a billion dollars. That means a 645 00:36:11,560 --> 00:36:15,680 Speaker 1: loaf of bread is worth a million dollars. How easy 646 00:36:15,800 --> 00:36:16,960 Speaker 1: is it for you to get your hands on a 647 00:36:17,000 --> 00:36:19,919 Speaker 1: million dollars? All you gotta do is locate a few 648 00:36:19,960 --> 00:36:25,000 Speaker 1: loaves of bread and sell them. Now you have dollars 649 00:36:25,040 --> 00:36:28,000 Speaker 1: easy to pay off that loan, and you still have 650 00:36:28,040 --> 00:36:31,759 Speaker 1: a house. And so as hyper inflation sets in, the 651 00:36:31,880 --> 00:36:35,640 Speaker 1: price measured in dollars of everything goes up as the 652 00:36:35,719 --> 00:36:39,080 Speaker 1: value of the currency goes down, that's because the abundance 653 00:36:39,120 --> 00:36:42,239 Speaker 1: of that currency goes up, it becomes easier to get 654 00:36:42,239 --> 00:36:45,080 Speaker 1: your hands on that currency. And so, entering into that 655 00:36:45,160 --> 00:36:49,680 Speaker 1: situation with fixed rate debt, meaning you've short of the dollar, 656 00:36:49,880 --> 00:36:52,680 Speaker 1: you've borrowed it and used it to buy real assets 657 00:36:52,719 --> 00:36:56,920 Speaker 1: that last through hyper inflation, you you win on both 658 00:36:57,040 --> 00:37:00,719 Speaker 1: sides of the equation. Now, this whole time, I've been 659 00:37:00,719 --> 00:37:03,879 Speaker 1: talking about fixed rate debt, because the reality is when 660 00:37:03,960 --> 00:37:06,560 Speaker 1: hyper and when any inflation sets in, interest rates go 661 00:37:06,640 --> 00:37:09,239 Speaker 1: up because lenders realize, hey, if I give you a 662 00:37:09,280 --> 00:37:11,319 Speaker 1: hundred dollars and then you give me a hundred ten 663 00:37:11,320 --> 00:37:13,279 Speaker 1: dollars back, but by the time you give me that 664 00:37:13,360 --> 00:37:16,200 Speaker 1: hundred ten dollars, whatever I was gonna buy now costs 665 00:37:16,200 --> 00:37:18,799 Speaker 1: a hundred fifteen dollars. They're not going to do that deal. 666 00:37:18,880 --> 00:37:20,719 Speaker 1: That's a bad deal. So they're not gonna lend at 667 00:37:20,719 --> 00:37:23,000 Speaker 1: that amount. And so what they're gonna do is they're 668 00:37:23,000 --> 00:37:26,200 Speaker 1: gonna raise interest rates to compensate themselves for the amount 669 00:37:26,200 --> 00:37:28,600 Speaker 1: of purchasing power they're losing. So if the cost of 670 00:37:28,640 --> 00:37:31,279 Speaker 1: living goes from a hundred dollars to a hundred twenty dollars, 671 00:37:31,320 --> 00:37:33,680 Speaker 1: the interest rate on that debt will be at least 672 00:37:33,880 --> 00:37:37,279 Speaker 1: twenty dollars, And so UH interest rates will go up, 673 00:37:37,560 --> 00:37:42,120 Speaker 1: but not on fixed rate debt. So mortgages, auto loans, 674 00:37:42,760 --> 00:37:46,000 Speaker 1: some other loans, they are the only ones with UH 675 00:37:46,160 --> 00:37:51,120 Speaker 1: fixed interest rates over specific time periods. Those are the 676 00:37:51,160 --> 00:37:53,760 Speaker 1: ones that you can use to short the dollar, because 677 00:37:53,760 --> 00:37:56,440 Speaker 1: you can pull those and you can use that money 678 00:37:56,440 --> 00:38:00,239 Speaker 1: to buy real assets that people need, the things that 679 00:38:00,280 --> 00:38:03,480 Speaker 1: will become in short supply as production shuts down, as 680 00:38:03,480 --> 00:38:05,680 Speaker 1: people have to rely on the things that they need 681 00:38:05,800 --> 00:38:12,120 Speaker 1: most um not purses, not fancy clothes, not gadgets, not 682 00:38:12,440 --> 00:38:17,640 Speaker 1: um uh entertainment or luxuries, but the survival things that 683 00:38:17,680 --> 00:38:23,080 Speaker 1: people need. Now. Adjustable rate debt is a completely different story. 684 00:38:23,680 --> 00:38:27,480 Speaker 1: Absolutely not the case with adjustable rate debt because like 685 00:38:27,560 --> 00:38:32,200 Speaker 1: credit cards, um, you know many home equity lines of credit, 686 00:38:32,600 --> 00:38:35,719 Speaker 1: lots of adjustable rate debt out there. As inflation gets going, 687 00:38:35,960 --> 00:38:38,080 Speaker 1: they just keep on raising the interest rates on it. 688 00:38:38,520 --> 00:38:41,719 Speaker 1: And so if inflation sets in really heavily, you'll get 689 00:38:41,760 --> 00:38:44,319 Speaker 1: to the point where you you it's impossible to make 690 00:38:44,440 --> 00:38:46,640 Speaker 1: enough money just to pay the minimum payments on that debt, 691 00:38:46,960 --> 00:38:49,800 Speaker 1: so adjustable rate that you want to absolutely have zero 692 00:38:49,840 --> 00:38:52,480 Speaker 1: of it, Never ever, ever have any adjustable rate debt, 693 00:38:52,520 --> 00:38:56,280 Speaker 1: because the amount that you'll owe on it will continue 694 00:38:56,320 --> 00:38:58,200 Speaker 1: to go up to all and it will always be 695 00:38:58,239 --> 00:39:01,000 Speaker 1: above the inflation rate. Um. So it will never be 696 00:39:01,040 --> 00:39:03,440 Speaker 1: a good deal. You'll never be able to win that 697 00:39:03,560 --> 00:39:06,160 Speaker 1: trade of shorting the dollar with adjustable rate debt, because 698 00:39:06,160 --> 00:39:08,239 Speaker 1: the amount of dollars you'll have to pay back will 699 00:39:08,280 --> 00:39:10,840 Speaker 1: always be more than what you can make on the 700 00:39:10,880 --> 00:39:16,480 Speaker 1: other side of that trade because it's adjustable. UM. Regarding 701 00:39:16,640 --> 00:39:23,400 Speaker 1: regarding things like uh um leasing or owning, in situations 702 00:39:23,440 --> 00:39:27,880 Speaker 1: like this, survival becomes key and so uh. One of 703 00:39:27,880 --> 00:39:31,760 Speaker 1: the results of that is that real useful objects become 704 00:39:31,840 --> 00:39:38,160 Speaker 1: in short supply. We talked about this with like gas, food, energy, 705 00:39:38,760 --> 00:39:42,480 Speaker 1: same thing with like cars and homes, the things that 706 00:39:42,520 --> 00:39:44,719 Speaker 1: people need to because at the end of the day, 707 00:39:44,920 --> 00:39:49,799 Speaker 1: everything is consumable. All real goods are eventually break. Uh. 708 00:39:49,840 --> 00:39:54,640 Speaker 1: There there's nothing that just continues to produce and get 709 00:39:54,680 --> 00:39:59,640 Speaker 1: better by itself without effort over time. UM. Even like farmland, 710 00:39:59,680 --> 00:40:02,920 Speaker 1: it takes work. Uh. Even though it's you know, plants 711 00:40:02,920 --> 00:40:06,880 Speaker 1: and animals technically survive um and grow, you still have 712 00:40:06,920 --> 00:40:08,279 Speaker 1: to feed them, You still have to tend to them, 713 00:40:08,280 --> 00:40:10,120 Speaker 1: You still have to take care of them. It takes labor, 714 00:40:10,480 --> 00:40:16,279 Speaker 1: and so m Owning things is what will get you through. 715 00:40:16,360 --> 00:40:19,560 Speaker 1: Like if you lease your car, for example, UM, hyper 716 00:40:19,600 --> 00:40:23,080 Speaker 1: inflation sets in bank takes your car back. Now there's 717 00:40:23,080 --> 00:40:26,520 Speaker 1: no cars available and you can't afford uh to buy 718 00:40:26,560 --> 00:40:32,480 Speaker 1: another car, and so owning things that are highly likely 719 00:40:32,520 --> 00:40:34,919 Speaker 1: to be in short supply is a very good way 720 00:40:34,960 --> 00:40:41,640 Speaker 1: to ensure at least survival through hyper inflation. UM. In 721 00:40:41,719 --> 00:40:45,520 Speaker 1: terms of skills, we already talked about the skills, you know, 722 00:40:45,560 --> 00:40:48,120 Speaker 1: Maslow's hierarchy, producing your own food, being able to fix 723 00:40:48,120 --> 00:40:51,680 Speaker 1: your own things, being able to produce your own things, um. 724 00:40:51,719 --> 00:40:54,800 Speaker 1: Another another, and we talked about investing. You want you 725 00:40:54,840 --> 00:40:58,880 Speaker 1: want to invest in real assets like real estate, farmland, water, 726 00:40:59,040 --> 00:41:03,240 Speaker 1: agriculture companies that deal in all of those things, because 727 00:41:03,239 --> 00:41:07,240 Speaker 1: those companies will continue to make profits. Smaller companies the better, 728 00:41:07,280 --> 00:41:10,840 Speaker 1: because they're more agile, more adaptable, they are more able 729 00:41:10,880 --> 00:41:13,760 Speaker 1: to deal under the table and do the black market 730 00:41:13,800 --> 00:41:16,360 Speaker 1: things that will allow them to survive, rather than the 731 00:41:16,360 --> 00:41:18,000 Speaker 1: big ones that are in bed with the government that 732 00:41:18,040 --> 00:41:21,520 Speaker 1: will have to continue to do things officially and we'll 733 00:41:21,640 --> 00:41:25,880 Speaker 1: we'll just die of bloatedness and old age um. And 734 00:41:25,960 --> 00:41:29,600 Speaker 1: so those are the types of assets that typically survive 735 00:41:29,880 --> 00:41:33,080 Speaker 1: through the currency transition. And I say currency transition because 736 00:41:33,080 --> 00:41:34,880 Speaker 1: there's always another currency on the other side of it, 737 00:41:34,920 --> 00:41:37,600 Speaker 1: whether it's gold, bitcoin, another field currency, whatever it is, 738 00:41:37,800 --> 00:41:39,839 Speaker 1: there's always something on the other side. So you're you're 739 00:41:39,880 --> 00:41:43,120 Speaker 1: looking to just survive the transition to the new financial system. 740 00:41:43,160 --> 00:41:49,080 Speaker 1: On the other side of this, UM, one very important 741 00:41:49,360 --> 00:41:53,759 Speaker 1: asset to have during this time could be a second passport. 742 00:41:54,480 --> 00:41:57,919 Speaker 1: Many people get stuck in their countries because they don't 743 00:41:57,920 --> 00:42:00,799 Speaker 1: have the ability to UH to go live somewhere else. 744 00:42:01,400 --> 00:42:04,840 Speaker 1: So having the ability, even just in your back pocket, 745 00:42:05,400 --> 00:42:08,480 Speaker 1: just the option if you want to to go live 746 00:42:08,560 --> 00:42:12,560 Speaker 1: somewhere else, could be the one thing that allows you 747 00:42:12,640 --> 00:42:16,360 Speaker 1: to survive or thrive more than more than anybody else. 748 00:42:16,880 --> 00:42:19,520 Speaker 1: Because as long as you have the option, then you 749 00:42:19,560 --> 00:42:22,440 Speaker 1: know you can use it if you need it. UM. 750 00:42:22,480 --> 00:42:26,719 Speaker 1: Many people can get this through UH their UM, through 751 00:42:26,760 --> 00:42:30,080 Speaker 1: their family. If you have UH family, whether it's you know, 752 00:42:30,560 --> 00:42:35,360 Speaker 1: UH parents or grandparents from another country, many times you 753 00:42:35,400 --> 00:42:39,839 Speaker 1: can get dual citizenship and a second passport that way. UM. 754 00:42:39,960 --> 00:42:44,080 Speaker 1: Because we all saw during COVID, you know the number one, 755 00:42:44,120 --> 00:42:46,520 Speaker 1: they were not granting new passports just like to be 756 00:42:46,560 --> 00:42:50,000 Speaker 1: able to leave your country. UM. Number two, they were 757 00:42:50,120 --> 00:42:53,360 Speaker 1: allowing people to travel, UH just leave the country for 758 00:42:53,400 --> 00:42:56,239 Speaker 1: a while so they can restrict travel. But if you 759 00:42:56,239 --> 00:42:58,640 Speaker 1: were a citizen of another country, they couldn't stop you. 760 00:42:58,680 --> 00:43:00,480 Speaker 1: They had to let you go home. And that's just 761 00:43:00,520 --> 00:43:02,640 Speaker 1: the that's just the way it is. So if you 762 00:43:02,680 --> 00:43:04,960 Speaker 1: can say, hey, no, like I belong over there, you 763 00:43:05,000 --> 00:43:06,960 Speaker 1: can't stop me here, they will let you go. So 764 00:43:07,000 --> 00:43:09,799 Speaker 1: that's having a ticket out if things get really bad 765 00:43:10,040 --> 00:43:15,879 Speaker 1: is something that is UM. It's very important to have UM. 766 00:43:15,920 --> 00:43:19,000 Speaker 1: And then for the last thing that we're gonna we're 767 00:43:19,000 --> 00:43:22,160 Speaker 1: gonna talk about here is that transition to the other currency, 768 00:43:22,560 --> 00:43:24,560 Speaker 1: because that's really what we're trying to do here is 769 00:43:24,600 --> 00:43:28,160 Speaker 1: survive the transition to the other side. There will always 770 00:43:28,160 --> 00:43:31,319 Speaker 1: be a new currency that replaces it the regardless of 771 00:43:31,320 --> 00:43:34,319 Speaker 1: how bad it gets, it's always going to be temporary 772 00:43:34,360 --> 00:43:37,440 Speaker 1: and and it comes from the bottom up. So when 773 00:43:37,480 --> 00:43:40,319 Speaker 1: you look at these uh examples in history, a lot 774 00:43:40,320 --> 00:43:42,800 Speaker 1: of times it looks like, oh, well, they just decided 775 00:43:42,840 --> 00:43:44,640 Speaker 1: that they were going to have a new gold backed 776 00:43:45,440 --> 00:43:48,680 Speaker 1: gold backed paper money. After this, it's like, no, the 777 00:43:48,760 --> 00:43:51,799 Speaker 1: people decided to start using this. Therefore the government had 778 00:43:51,840 --> 00:43:55,360 Speaker 1: to Otherwise the government couldn't do anything. They had to 779 00:43:55,440 --> 00:43:58,080 Speaker 1: follow the will of the people. And that's what happens 780 00:43:58,120 --> 00:44:01,720 Speaker 1: everywhere you see the people start to use other forms 781 00:44:01,719 --> 00:44:04,560 Speaker 1: of money, and then the government eventually follows. And the 782 00:44:04,600 --> 00:44:07,080 Speaker 1: government doesn't follow at first because they think that they 783 00:44:07,080 --> 00:44:09,480 Speaker 1: can still have unlimited purchasing power as long as they 784 00:44:09,640 --> 00:44:11,560 Speaker 1: print the money and spend it on the right things, 785 00:44:12,080 --> 00:44:14,040 Speaker 1: um and they don't want to use the other money 786 00:44:14,080 --> 00:44:16,640 Speaker 1: that most people would prefer because it would limit their 787 00:44:16,680 --> 00:44:20,160 Speaker 1: spending power. But ultimately the government realizes at the end 788 00:44:20,160 --> 00:44:22,520 Speaker 1: of the day that they have no choice, they have to. 789 00:44:22,920 --> 00:44:25,000 Speaker 1: They succumb and they start to use the harder money 790 00:44:25,000 --> 00:44:27,279 Speaker 1: that the people have already chosen. So keep an open 791 00:44:27,320 --> 00:44:30,520 Speaker 1: eye out look around. What are people storing their wealth? 792 00:44:30,560 --> 00:44:33,640 Speaker 1: And what are people saving and not spending unless they 793 00:44:33,680 --> 00:44:37,760 Speaker 1: absolutely have to. Are people storing gold and spending their dollars? 794 00:44:37,920 --> 00:44:41,000 Speaker 1: Are people storing bitcoin and spending their dollars? Are people 795 00:44:41,760 --> 00:44:45,120 Speaker 1: buying other currencies from other countries and storing them and 796 00:44:45,160 --> 00:44:48,239 Speaker 1: then only spending their local currency and only spending the 797 00:44:48,840 --> 00:44:51,560 Speaker 1: alternative one if they absolutely have to. So you keep 798 00:44:51,600 --> 00:44:54,120 Speaker 1: your eyes open and you look around. Like in Lebanon, 799 00:44:54,840 --> 00:44:58,400 Speaker 1: if you have dollars, it's that you can buy anything. 800 00:44:58,760 --> 00:45:01,200 Speaker 1: It's very, very, very different cult to get dollars though, 801 00:45:01,239 --> 00:45:03,560 Speaker 1: because if you have the layer, and nobody wants to 802 00:45:04,200 --> 00:45:07,640 Speaker 1: exchange layer for dollars, and so they're invaluable so if 803 00:45:07,719 --> 00:45:10,759 Speaker 1: when you go going into the situation, you start to 804 00:45:10,760 --> 00:45:13,200 Speaker 1: look at what are people hoarding because I want some 805 00:45:13,280 --> 00:45:15,200 Speaker 1: of that. What are the currencies and the forms of 806 00:45:15,239 --> 00:45:17,319 Speaker 1: money that people are saving and not spending unless they 807 00:45:17,360 --> 00:45:21,120 Speaker 1: absolutely have to. And normally it's a harder currency, whether 808 00:45:21,200 --> 00:45:23,960 Speaker 1: that's another country's money or whether that's a new form 809 00:45:23,960 --> 00:45:26,640 Speaker 1: of money like bitcoin or the oldest form of money 810 00:45:26,640 --> 00:45:29,279 Speaker 1: like gold, people start to hoard it and save their 811 00:45:29,280 --> 00:45:31,800 Speaker 1: money in it, and and and build up their savings 812 00:45:31,840 --> 00:45:34,640 Speaker 1: that way. So keep an eye open and watch out 813 00:45:34,680 --> 00:45:37,200 Speaker 1: for what people are doing, because when push comes to 814 00:45:37,200 --> 00:45:38,480 Speaker 1: shove at the end of the day, you get into 815 00:45:38,560 --> 00:45:41,319 Speaker 1: hyper inflation, it will be very difficult to exchange your 816 00:45:41,360 --> 00:45:44,839 Speaker 1: failing currency for that new money. And um, it's not 817 00:45:45,120 --> 00:45:47,920 Speaker 1: necessary to choose the one that will win. It's just 818 00:45:48,040 --> 00:45:51,680 Speaker 1: necessary to choose something that will survive. So that's why 819 00:45:51,719 --> 00:45:55,600 Speaker 1: I usually recommend buying gold and silver and bitcoin, because 820 00:45:55,960 --> 00:45:57,839 Speaker 1: you don't know which one will win. But it's not 821 00:45:57,880 --> 00:46:00,000 Speaker 1: necessary to know which one will win. It's just necessar 822 00:46:00,000 --> 00:46:02,680 Speaker 1: sorry to have something that will survive. And on the 823 00:46:02,680 --> 00:46:05,279 Speaker 1: other side, you can always exchange the thing that survives 824 00:46:05,560 --> 00:46:07,759 Speaker 1: for the new money. You can always sell your real 825 00:46:07,920 --> 00:46:11,320 Speaker 1: estate for gold. You can always sell your gold for bitcoin. 826 00:46:11,719 --> 00:46:15,000 Speaker 1: It's the fiat currencies that will not survive and die 827 00:46:15,040 --> 00:46:17,319 Speaker 1: and so UM at the end of the day. That 828 00:46:17,440 --> 00:46:20,880 Speaker 1: is how we survive and thrive through hyperinflation is prioritizing 829 00:46:21,239 --> 00:46:25,200 Speaker 1: our needs, investing in the real assets that have always survived, 830 00:46:25,480 --> 00:46:28,759 Speaker 1: investing in the companies that deal in those assets that 831 00:46:28,800 --> 00:46:32,520 Speaker 1: have always survived UM, and by being shrewd keeping our 832 00:46:32,560 --> 00:46:34,839 Speaker 1: eyes open and watching out for what people are doing 833 00:46:34,880 --> 00:46:38,560 Speaker 1: on the ground up. As always, thank you so much 834 00:46:38,560 --> 00:46:41,000 Speaker 1: for listening, and you guys have a great day. We 835 00:46:41,000 --> 00:46:42,240 Speaker 1: will see you next week.