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so I see there a gigantic Financial bubble the biggest Financial bubble in history since the 14th century wow we are now in the midst and that one day will be deflated very badly we have all everywhere bubbles yes I tries to explain to you very clearly the the government reports GD up 2 3% and the majority of people is struggling because the cost of living increases exceed their wage gains or their earning gains and so the government can hide the fact that actually for that actually most people are already in recession GDP goes up wonderful because the government uses the inflation adjustment that are calculated by the Bureau of Labor statistic and as I told you the Bureau of Labor statistic is an agency of Lies they don't tell you what the real cost of living increases are they tell you a figure that is inferior the most people know that the cost of living have been going up by between 5 and 12% per anom not 2% and most people that I guarantee you nobody I've ever met in my life has said that his health care costs have gone down the market the FED is in a different position difficult position they can print money yes but will anything go up in real terms inflation adjusted that is the criteria the the government says the economy is growing GDP up 3% 2% whatever the reality is that most people in America over 70% live paycheck to paycheck in other words they have to wait to get their salary to pay the interest on their debt to pay the car loans and and then and then some government officials tells me the US economy and the consumer are in great shape nonsense the statistics are completely distorted the the Bureau of Labor Statistics says that healthc care cost dropped something like 30% in the last three years I've seen letters from insurance companies to the insur insured people where the premium increases are outlined in three years 99% I've seen it well my view is bit different I think we are at the tail end of more than 40 years asset inflation period which began essentially in 1982 for stocks at the August low on the Dow Jones who were at 780 and in 81 we had to Peak in interest rates in the United States when 10 years treasuries were yielding more than uh 15% and since then asset prices have gone up a lot we also had Consumer Price inflation but not as much as asset inflation but lately uh things have changed somewhat in the sense that asset prices are no longer universally going up we had some serious set back in asset prices as an example us commercial real estate that was a safe investment for a long period of time and nobody I don't know anyone who predicted that commercial properties in America would Collapse by as much as they have collapsed in the last four years I mean I've seen properties in Los Angeles they were worth 100 million now you can't sell them for 20 million the answer is complex but the problem with monetary inflation and we live in a monetary inflationary period is that the price level in the economy does not go up regularly and universally but you have one something that goes up strongly mhm and uh something else that goes down and then it changes so as an example in 2023 the price of cocoa went ballistic this year coffee is up 84% so you know and that is the danger of this monetary inflation and the central banks they don't know either where the liquidity goes to and where it creates an asset bubble and where it creates an asset deflation so my view for investors would be to be very careful because there will be a lot of volatility going forward with asset prices some going up a lot and some going down a lot I mean I'm very negative about the Magnificent 7 and the F related stocks and semiconductor stocks which are are very popular on the other hand I'm very uh kind of interested in the assets of Chinese China and Hong Kong and I'm I got my name Dr Doom in Hong Kong because I was always very negative about Hong Kong especially after the the the the Handover in 1997 but now Hong Kong assets are very cheap and I would be a buyer of H Kong assets at the present time I think they have an upside potential of say stocks 50 100% quite easily Al other Emerging Markets are cheap with the exception of India whereas the US is relatively high so if I measure the rest of the world Europe Latin America Asia relative to the US the Gap in valuation is as wide as it's ever been so I would buy cheap assets and avoid expensive Assets in my view the Chinese market would of course be hurt but I suppose that American stocks and European stocks would also be hurt very badly is there in general I would be light on financial assets because Financial assets if you I mean if you look at the world and you consider the world us something of this size and then you take the financial market for most of uh human history or capitalistic history the financial Market was actually smaller than the the real world GDP say in the 1970s the US stock market capitalization as a percent of the economy was between 20 and 30% in the' 70s now we're up at 160% or something like this so the financial Market in the world has expanded much more MH than the real economy and in particular government debt as a percent of the economy has ballooned so I see there a gigantic financial problem the biggest Financial bubble in history since the 14th century wow we are now in the midst and that one day will be deflated very badly I mean I don't rely much on KES in E economics but if someone believes that increased government spending boosts economic activity he must believe that reduced government spending would uh hurt the economy at Le at least temporary I think in the long run less government would be good but in a democracy to have less government is very difficult I mean it may maybe I'm too pessimistic but I think that the euphoria that we are seeing now I would would be more positive it if it occurred amidst low valuations in the market you understand and after a bare Market of say a few years where suddenly stocks become inexpensive and then there is a turnaround in the political system and then stocks shoot up like this was the case when mle became president in Argentina but it's not the casee at the present time at the present time this Euphoria follows a bull market that began on March 6 2009 and was accompanied by huge fiscal deficits money printing without an end and simultaneously at the present time record and I have to spell this out record valuations valuations are not low the I ConEd that some stocks oil shares and Mining stocks are depressed but by and large Financial assets are in the sky gold and silver will maintain their purchasing power say if I bought an ounce of gold at $35 in 1970 we are two ,700 so if for the last uh 70 years I went to jail and I come out of jail and had all my money in Gold the money I deposited has kept its purchasing power I can say this and I suppose some people say gold is cheap and some people say it's expensive the in mon inflation that I want to stress everything becomes murky Opa you know you can't tell is something expensive or cheap very difficult yes and but you can compare say this item against that item yes against this and then you can say this is relatively cheap compared to this and this is relatively expensive compared to this so uh we can establish the relationships uh one relationship I can establish I take all the financial Assets in the world the stock market capitalization The Lending activity by Banks and the bond market and then I compare it to the quantity of gold say that is above the ground at the present time uh the quantity of gold within the monetary system is relatively small by historical standards I can take say gold and say gold is relatively expensive compared to the price of wheat corn Bean soybean wheat corn and soybeans or I can take the price of gold and say it's relatively expensive compared to a barrel of oil so we can establish all sorts of relationships I hold gold because it's difficult for me to store five tons of Wheat and it's difficult for me to store 100 tons of oil so I own gold physical and within the gold space you also have a you can compare it to Silver and Platinum Platinum is the cheapest very inexpensive at the present time and I'm very optimistic for platinum in the next say five years but uh I can also compare gold and other assets Financial assets to Gold shares mining stocks mining stocks are very cheap relative to everything else so as an investor you can invest some money in mining stocks if you want to dep invest in depressed issues Sho or you can invest in China or Hong Kong or in emerging markets and some European markets so that's what I would do what other people do is their business you understand everyone has a different investment objective I would diversify because as I said that we don't know and I would hold some cash that will hold some real estate some real estate stocks have have performed very poorly and are now bottoming out especially as I mentioned in Hong Kong and China and Asia in general and I would go and also own some precious metals as I mentioned and maybe some physical real estate and then you have to choose in the cities I'm not so optimistic about major cities but you can buy in Europe land in the countryside or houses in small villages essentially for free you have to redo it and it would be helpful if you have some Talent the manual talent that you wouldn't have acquired at the Socialist universities where socialist professors teach nonsense like all kinds of political sciences
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