They're the ones that are going to do really well in this decade by
more silver because this is the rotation its out of hype into value.
The feds been operating its monetary policy while looking in the
rearview mirror because they keep creating inflation, right?
Printing money quantitative, easing, whatever you want to call it, and
they keep printing more and more money and they look in the rearview
mirror and they look at the CPI.
And as long as it's below 2% or some version of it is below 2%, They
think it's okay to keep printing money.
Meanwhile, they're ignoring the road ahead.
They keep looking at the rearview mirror.
Error at the CPI numbers and they kept, you know, pretty muddy
inflating asset Bubbles, and distorting the economy and leading to
these debt Bubbles, and letting the government get bigger and bigger,
and bigger, spending more and more borrowed money.
And then all of a sudden they look in there in the windshield and
they're staring at these big CPI increases and their initial reaction
is, oh, don't worry about it.
It's nothing.
And then after a few more months, well, you know, it's transitory.
It'll go away.
And now they've got this huge problem, which has been inevitable for a
decade.
In fact, back in 2009.
When the FED first made the mistake of going down this road of
quantitative easing and 0% interest rates.
I predicted exactly the predicament that they're now going into
because they have this massive inflation problem.
They can't do anything about it.
They're talking about tightening up on policy, but what they're
talking about.
Doing is going from very loose policy, to slightly less lose policy.
They're not talking about Tight money, which is what they would
actually need to put out this inflation fire.
But by light by tightening up a little bit, they're going to prick the
bubbles or they've already picked a bubble and you're seeing all these
risk assets, imploding, right now in price.
The economy is already rolling over into recession just because the
FED is supplying less monetary.
Owen than they were but the fact that they're still supplying.
Some means that the inflation problem is going to keep getting worse.
So this is the feds worst nightmare.
It's stagflation at a question is what are they going to do?
Are they going to keep tightening up policy and push the economy into
another financial crisis?
Not just a recession or are they going to?
Reverse course, go back, you know reverse any rate hikes in expand
quantitative easing and just make the implantation.
Much worse 7% is the number that you get when you use their rigged
methodology for calculating consumer prices and they often compare the
inflation today to the 1970s to try to make it appear.
Like it's not that bad.
Oh, yeah, it's 7% but it's nothing like the 1970s.
Well, it's actually worse than the 1970s.
If you used the same CPI, that was used to measure prices in the
1970s.
And if you use that identical.
VI today.
Last year was actually worse than any year during the decade of the
1970s.
It was about fifteen percent and the bad news is 2022 is going to be
even worse than 20 21, because a lot of companies held back on price
increases because they thought it was all transitory.
Well, now, that they realize that's not the case.
You have a lot of companies that are rushing to make up for lost
ground and they're announcing major price hikes.
In January, they're probably going to do more later in the year.
Look at the price of oil.
It's already exploding.
It's up about 20% in the last few weeks.
Write a new high for the year or eighty, five dollars a barrel.
I think we're headed over 100 this year, may be closer to 150.
I think by next year, will be above 150 in the price of oil.
It's not just oil.
It's all sorts of energy, but it's agriculture, its industrial
materials.
The government is trying to blame it on a supply shortage.
It's not a shortage of Supply.
It's a
A surplus of money.
It's all the money printing that is creating.
The problem had the FED done the right thing after covid and
contracted money supply.
Then we wouldn't see these big price increases.
Maybe there would have been a reduction in Supply, but there would
have been an offsetting reduction in demand instead.
We reduce Supply because everybody was staying at home instead of working.
But we increase demand because we gave all the people who were staying
at home more money to spend.
Then when they earn
Then what they used to earn when they actually went to work.
So it was the worst of all policy mistakes.
We threw gasoline on the the inflation fire and and now we're dealing
with the consequences and it's just getting started.
Yeah, you know, it's certainly not too late to listen to us.
In fact, it's better to listen now because you could have stayed in
the you know casino that the FED created all these years and made a
bunch of money, people who get hurt the most are the people who are
retired.
You know, when I you hear the news reports, they always want to focus
on wages, and whether wages are keeping Pace with inflation, which
they're clearly not.
But at least if you got wages and they're going up, 5% and prices are
going up 10% Well, you're only 5% poorer, but if you're retired and
you got a fixed income and you know, and prices go up, 10% you, you
get stuck with the whole ten percent.
And you know, a lot of these retirees have been forced out on the risk
curve.
Got all these overpriced stocks that pay no dividends and those stocks
are crashing right now and their whole retirement is going up in
smoke.
I think it's going to be a lot higher.
I don't know.
Exactly.
It's hard to know the exact price that is going to be.
I think it's going to be quite a bit higher, certainly in dollar
terms, but also in terms of other currencies, but you know, what you
want to do with inflation is recognized that the biggest losers are
creditors, people who are owed money and are going to be paid.
Add that money in depreciated currency, so you don't want to be a
creditor in u.s.
Dollars.
So you don't want to own cash.
You don't want to own bonds.
You don't want to be in annuities or you don't want cash value in an
insurance policy.
You've got to own real things and that's why I'm buying all these
foreign stocks companies that pay very high dividends.
I mean, I'm buying stocks for some of them are trading for under 10
times earnings, many of them pay dividend yields of five to ten
percent.
I get that cash.
I can spend it.
If you're retired, you can
Is that cash to finance your your your living?
And as the dollar goes down, the value of those dividends will go up.
And of course, the companies that I own, they're all raising their
prices now, so they're gonna be able to raise their prices.
So they're going to have higher earnings and they can pay me higher
dividends.
So those increasing dividends will keep Pace with an increase in cost
of living, but a lot of Americans who are in the US Stock Market,
they're collecting.
No dividends.
They just have over priced stocks that are
following.
And if they have money in bonds, the the low interest rates that
they're earning are completely inadequate.
They're being more than offset by inflation.
If you're getting two or three percent interest and inflation is 7 or
10 percent, you're going backwards every year and eventually you won't
be able to afford to maintain your lifestyle.
Especially if you're retired wrecked.
The last decade was all about US Stock Market, the US Stock Market out
performed the rest of the world, because the rest of the world's got
values.
Ox, we've got hyped up momentum in tech stocks.
And so the world wanted those stocks.
They don't want them anymore.
They're getting rid of those stocks.
And that's also a big problem for the dollar because we were
recycling.
Our trade deficits because foreigners at one point took the dollars,
they earn selling us stuff and they bought our bonds but then our
bonds became so expensive.
The yields were so low.
They started buying our socks.
Well, now, our stocks are really expensive.
There's nothing that we have that they want.
The dollar is going to collapse.
Soooo, but in the meantime, we're getting into these foreign stocks.
We're building portfolios for clients, managed accounts.
All of my mutual funds are loaded up on these foreign value stocks.
They're the ones that are going to do really well.
In this decade.
Nothing that worked in.
The last decade will work in this one.
It's a totally different environment.
This is a stagflation and the same thing with cryptocurrencies.
If you bought Bitcoin, you know, at the beginning of the last decade
and wrote it up for 10 years, you cleaned up as well as a lot of these
other cryptocurrencies.
What's going to happen now?
Is its rotation out of Fools Gold into the real thing?
So now it's time to take your profits in that Bitcoin that you bought
a while ago and buy more gold than buy more silver because this is the
rotation its out of hype into value.
And that includes out of cryptocurrencies into real money into gold
and silver.