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it wasn't always thus in our country so what happened right I mean it was was it was it NAFTA like what what brought us from a country that manufactured its own Goods with pride to a country that buys everything from China yeah well it was it was big government it was taxes and regulations that made the U.S uncompetitive relative to the rest of the world and then it was going off the gold standard and going on a dollar standard where once the dollar was the reserve currency the rest of the world needed dollars and how did they get dollars well they sold stuff to Americans and so we basically outsourced our entire economy and in the short run we benefited because the cost of production was lower overseas uh than it was in the U.S especially because American companies had to deal with high regulations high taxes uh labor unions all sorts of other things that ran up the cost of production that foreigners didn't have and of course you know a lot of the regulation the labor law caused environmental laws I mean these other countries didn't have to deal with that and so they didn't have to bake the cost of complying with those regulations into their their labor cost into their price of their goods and the wages were already you know much much lower in the other countries so Americans got a good deal we traded our jobs for Stuff and we did that for decades but you know we can't do it anymore because we now have so much debt and wages around the world have increased to the point where there's not a big Arbitrage left anymore between labor costs outside the U.S and labor costs inside the United States and and foreigners don't want to you know play this game anymore they have too many dollars uh they have too many U.S treasuries and we're making that apparent uh by you know flexing our muscles with these sanctions uh so uh you know I think that we've reached the end of the road here on this game and you know when we experience the the true consequences of what's happened because you know we've been living on credit cards and borrowed money and imported goods and we don't realize how drastically things are going to change for the worse when we can't rely on those things anymore those lifelines are going to be gone so compare us right now to China because they've taken a very different tact and I I've heard you say the 20 20th century was ours and the 21st is theirs yeah and it's not that China is doing everything perfectly far from it and I don't think that the Chinese economy is anywhere near what our economy was let's say in the 19th century and early 20th century we are much Freer or we were much Freer back then than China is now but unfortunately in many ways China is Freer today than we are now and that is the problem and I'm talking about economic freedom not necessarily political Freedom although I think we may be losing that now too China is positioned itself in much better because they have a far more productive Workforce than America you don't have armies of people dependent on government you don't have people collecting Social Security and and Welfare uh people are saving in China they they save a very substantial percent of what they produce and they produce a lot I mean just go walk down the aisles of a Walmart and and take a look at where everything is made I mean these are very productive people they have the the equipment the capital uh industrial capacity to produce and that's what's important you know all we have is people that want to buy but what good is you know wanting to buy something if you don't make anything I'd rather have the factories and the ability to make stuff because if you can make stuff you can consume it you can't consume what you don't make so China actually is holding the cards not America I think they've built a far more viable economy uh than the one that we have we have a bubble economy and I think when the dollar crashes the Chinese currency is going to rise dramatically and As Americans see their standard living collapse the Chinese are going to see their standard of living surge because what's going to happen is all those goods that the Chinese used to make and send to America they're not going to send them to America anymore they're still going to make them so what are they going to do with them they're going to consume them themselves and their lives will be a lot better when they have their stuff instead of our paper and our lives are going to be a lot worse when we don't have of their stuff and all we have is our paper how would you hedge against that I mean for individuals out there feeling scared now as a result of this discussion what should they do I mean we can't control I mean yes elect the right leaders but I know you say no no leaders are good politicians are not the answer so what should individuals do well you mentioned yourself I mean Donald Trump campaigned on making America great Again by revitalizing our manufacturing and none of that happened the trade deficits were higher when Trump left office then when he came in even if you look at the trade deficit before covid so we were still continuing to you know disintegrate as as an industrial economy even during the Trump years so yes the politicians aren't going to change it doesn't matter who you vote for but what you do need to do is protect yourself and that's what I've been doing myself for years and I've been encouraging all of my clients uh to do the same thing you've got to get out of US Dollars you've got to recognize that inflation is a tax it's the way the government is funding its deficits the deficits are going to go up so the tax is going to go up and there's more there's more reasons now to avoid it and so I am helping people rearrange their investment portfolios in light of this reality to invest in countries that are not going to have this rapid inflation but to also own assets real assets productive assets that sell products and services that consumers have to buy not just what they want to buy because a lot of things they want to buy they're going to stop buying because the stuff they need to buy is going to be so expensive so you want to own the companies that sell the stuff that people need to buy and they can raise prices and they're paying uh their earnings to their shareholders in the form of dividends so you have to be an old-fashioned investor for value and dividend you got to look towards resources raw materials agriculture energy mining but then things like utilities or things you know whether it's tobacco or food you know know things and things that people have to buy and they're going to pay higher prices uh you know they're not gonna they're not going to cut back like on entertainment or a lot of you know buying uh computers or or things like that gadgets that that are fun but they don't really need to upgrade to the newest you know phone when their phone they've got will do they need that money for food they need it for their rent or something like that so you want to invest in those but you have to recognize that you need to be outside the U.S so we're building portfolios of foreign stocks predominantly but also focusing on some Emerging Market exposure Commodities exposure precious metals gold and silver will be big winners in a monetary reset where the dollar is no longer the reserve currency because when the dollar is out gold will be back in because before we have the dollar as a reserve everybody had gold as reserves we only went off the gold standard to go on the dollar standard and we only did that originally because the dollar was backed by gold and redeemable in Gold so the world was still on a gold stand until 1971 except it was on the gold standard through the dollar well we defaulted on our commitments to redeem dollars for gold in 71 and so we've been on a Fiat standard ever since but when this experiment comes to an end the world is simply going to go back to what existed before 1971 which is a gold standard only it won't be through the dollar countries will have their own gold reserves will have
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