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well folks don't sue me bro but this is dark trick money to prevent the 2020 recession and you should know about it and that's why on today's meet Kevin Report I'm going to break down what this a darker trick is how it relates to what's going on in the market today and what you should do about it to make sure that you can take advantage of the benefits of this trick happening and that is because this is news that makes money quick note 22% e tedx of Vegas crash course does end in two days at September 10th make sure to get in using TEDx 20/20 so we've all heard it before the economy is slowing down there seem to be cracks coming through the foundation yet for some reason since Donald Trump took office the Dow Jones is up 43% and many parts of the economy keep booming in fact consumer confidence continues to remain at an all-time high obviously drama with China breaks it and incredibly low interest rates have led us to all kind of feel a little bit confused as to what's going on but there's a second thing that relates to a dirty trick the government might use to sort of play with the recession we've all heard of the national debt before in fact I remember as a child growing up and in school the teachers would always bring up look at our national debt clock it just keeps going up and keeps going up and that's kind of been pretty consistent over the last row 30 years we also know how bad debt is and how it might be unfair to sort of saddle our children and future generations with more debt in previous videos I've talked about what I call the Trump recession where basically Trump can sort of negotiate hardcore right now with more than a year to go before his election that might sort of upset markets might increase the odds the Federal Reserve reduces interest rates which plays into what Trump wants anyway wall Trump is negotiating hardcore with China and then guess what might happen next year China might end up striking a deal with a Trump as maybe who knows Trump softens his tone a little bit conveniently before the election and boma deal is struck and all of a sudden not only are China trade fears but interest rates are lower that's what I'm sort of calling the Trump recession that's kind of trumps play on the recession to get reelected that is but there's something even trickier that could be happening see what generally happens when a recession gets started well let's look back to the last recession when george w bush issued a checks straight-up checks to consumers to hopefully get them to spend more money that increases the government debt what did Obama do stimulus cash for clunkers bailouts what does that do it increases the national debt as the government tries to stimulate the economy well what is something that Donald Trump could do what is that dark trick that Donald Trump could do right now as debts are at all-time highs he could take advantage of what's currently being looked at as one of the weirdest economic transformations ever think about this for a moment when we buy a lot of one thing the price of that one thing usually goes up that's the supply and demand well as a government borrows more money interest rates usually go up in the same way supply and demand works yet something really weird is happening in our economy right now our government keeps borrowing more and more and more money yet interest rates are falling it's breaking a very commonly held economic theory of supply and demand in other words the more money the United States borrows to spend on the country or for government jobs the cheaper the interest rate actually becomes at least that's the current trend so what does that mean for Donald Trump well now combine the Trump recession that is Donald Trump's play with China leading up to the next election but combine that with the idea that Wow with a Republican controlled Senate and possibly some easy concessions to Democrats as the economy continues to be on an even footing what could Donald Trump possibly do more stimulus more debt maybe less taxes more debt why not because right now as interest rates continue to fall towards negative territories why not borrow more now before I talk about the problems with this because hold on there's some big problems with borrowing more and there's some important things for you to know about in terms of how you need to strategize to prevent yourself from getting hurt by more debt that is more government debt so we'll talk about that in just a second but let's talk about how this relates to the current marketplace we've heard of these negative interest rates in Europe before and in case you're not familiar with that basically people in Europe who want to put their money into savings accounts to make sure their money is safe have to pay the bank money to keep their money safe you know how here in America you could take a thousand dollars and put it into wealthfront and get paid two point three two percent guaranteed on your money yeah there it's the other way around you put $1,000 into wealthfront a year later you have less money and on one hand you might be thinking why would anybody do that that sounds crazy well pension funds have to do it because they need their money safe and available to pay it out at least money that they're not investing at for the longer term but how does that relate to the United States well we might be next to experience consistently lowering interest rates which again plays into the theory that Donald Trump could want to with the cooperation of Congress generate and balloon the United States government debt even more now why do I think interest rates are going to trend downward well because Federal Reserve Chairman Jerome Powell was just in Zurich giving a speech to some kind of economic and panel and guess what as expected Jerome Powell doubles down on the idea that the Federal Reserve will do anything in their power to prevent a recession they are ready to drop interest rates even further if indicators suggest that they need to in an effort to stimulate the economy and sustain the expansion but beyond that Jerome Powell also suggests there's no indication of a recession coming anytime soon part of the reason I believe that is because they've got plenty of tools left on their tool belt to prevent the recession at least for the next few years this is why I think the whole 2020 recession argument is a bunch of baloney hang tight for just a moment and I'll tell you a little bit more about my strategy and when I think the recession will actually come see usually when I talk about lower interest rates and more borrowing there's always this sort of undercurrent of people going oh we're gonna be the next Venezuela we're gonna have hyperinflation but let's look at Venezuela for a second their current constitution is just barely 20 years old president Maduro z' social programs have been an utter failure and as a country dependent on oil as oil prices continue not only to be volatile but have fallen dramatically from their peak and for example 2009 and 2010 what do you expect it's not a country that you can expect to be consistent on the other hand the United States is over 200 years old and has the most trusted currency in the entire world therefore in my opinion a bet against the United States dollar a bet against the United States the idea that there's gonna be hyperinflation and the dollar is gonna be worthless because the dollar isn't backed by anything a bet against the United States is in my opinion a bet against the world which I'm not saying the end of the world is impossible I just think the odds are the end of the world isn't going to come just yet maybe I just secretly don't want the end of the world to come yet I really like making money off investing in real estate which is exactly what I teach all of you how to do no matter how much experience you have that's what the courses are for in case you're wondering and besides guess what more inflation actually does for the United States economy it makes the United States debt easier to pay off the best thing that could probably happen right now is a little bit more inflation for people who have a debt for people who own real estate or people who owe money like the government see inflation makes it easier to pay off debt but what about jobs well interestingly and this again relates back to a potentially Donald Trump's evil trick jobs continue to grow and a wage growth is also growing now yes the pace of job growth how many jobs were adding has slowed we gained a hundred thirty thousand jobs instead of a hundred fifty thousand jobs as expected however thirty six thousand of those jobs came from government sector jobs which doesn't that already relate back to what we're saying about the government possibly spending more money government spends more money debt goes up but it's okay because what does it do stimulate the economy even as the debt continues to balloon but interest rates continue to fall making that debt less expensive and if inflation happens all this good it makes it easier to pay back the debt in a different time obviously there are always the perma bears and they like pointing to data well look how bad manufacturing is doing well look how bad retail is doing well no duh am I really surprised that retail jobs fell by eleven thousand one hundred positions no I look at online is killing retail I mean this makes sense to me does it make sense that manufacturing is in a recession because of a trade war yes it does these things make sense to me speculative borrowing like we saw leading up to the 2008 recession and dead people getting loans did not make sense to me and no wonder what came out of that the Great Recession after the housing bubble collapsed or I guess you would say burst so what's the point so what's the point to us so what if government debt increases what does it mean to us what should we be doing well my opinion the first thing I'm doing is I'm investing as if there won't be a recession for at least the next three to four years possibly even longer why because I think the government has plenty of room to increase the national debt that's that dirty trick or to lower interest rates even more possibly even into the negative territory to sustain our economic growth and I'm under this strong belief that under no circumstance will Donald Trump not use every tool on his belt to prevent a recession that is he will use everything he's got to make sure he can prevent a recession which can easily be done by more government spending yes or government debt at the same time what is Jerome Powell going to do while their entire board will probably continue to reduce interest rates and this might continue this slow bleed recession for easily another three to four years possibly even longer and realistically in three to four years time what should hopefully by god hopefully be done the trade war and breaks it and hopefully we found a footing again and Wow all of a sudden we've completed this manufacturing shift we've completed the shift away from retail and what could possibly happen next well there could be a recession because of all the mounting debt or there could be another golden decade who knows and that's the thing nobody really knows what's going to happen but what I recommend is well exactly what I'm doing and I put my money where my mouth is not speculating stay strong to the belief that if you were going to buy investments try to buy them below market value like buying real estate below market value that's called buying insulative assets things that will do well even if the economy Falls because you've done anything you could to protect yourself any kind of fixed rate debt that somebody else is paying off is also really good I wouldn't go into any kind of speculative you know commercial apartment building five-year loans right now say I think those could get decimated in a recession but keep this in mind as government debt Rises consumer debt also tends to rise and even though consumer confidence is at all-time highs right now the more and this is really well studied and should be obvious the more debt consumers have the less they end up spending so it's possible that for another three or four years we might see people continue to balloon their debt and that could end up leading to a recession three to four years down the road again nobody knows everybody always says economists are famous for having predicted nine out of the last five recessions but to me and this is no more than a paper cut in a slow bleed sort of recession if you will and for now there are plenty of bandages left in the first to aid kit now this isn't to say that there aren't going to be larger problems but I'm just not seeing anything immediate yes two three four years down the road there could be bigger problems but we've got plenty of time to look for those in the meantime I'm gonna continue to buy wedge deals join me in the live streams because I'm allowed to do a live stream next thanks for joining we'll see you soon
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