October 2018 Insider’s Report
This is the third part of our series or a five-part series of what is going on in the world basically. So we’re not going to be too long. There’s tons and tons to go through, but we’re not going to go incredibly long today. I’m trying to keep some of these insider’s updates a little bit more timely. There’s a ton of information and so many things to go over, but these are conversations that we can have one on one. If you’re curious and interested about what’s going on and things about the dollar, bad things happening, good things happening. We can have those conversations, but I want to, like I said, kind of run through a couple of these things that way we are being timely and we’re not wasting a ton of time.
Repatriation of the Dollar
So repatriation. There’s some stuff going on right now with the dollar, repatriation of the dollar, a lot of our dollars. The reason we don’t have inflation right now or a vast inflation going on right now is because a lot of our dollars are overseas. Repatriating dollars and those dollars coming home to roost are eventually going to happen when people end up not wanting dollars. And again you have bill gross, the bond king saying that “You don’t think that’s ever going to happen.” So you’ve got both sides of the coin. So you have someone saying that he doesn’t think it’s going to happen and the US is too big. It’s too big to fail in essence. He doesn’t say that completely, but in essence, he was saying that people need us and which is true. He needs us. But if people will get a sense of the competence of the dollar is going down, then those dollars we have like 50% of our dollars are overseas because we send our dollars out to China and whoever to buy their goods and it comes back to us with our dollars. We basically outsourced our inflation. So, if those all come back into this country, then we see a massive, massive inflation. That’s something that could be happening eventually and it’s not good for the dollar. So these are things to watch.
This is another thing that had just many, many nails in the coffin of the petrodollar and the petrodollar is the agreements we’ve made with the different countries. Saudi Arabia, you’ve seen a lot of stuff in the news about Saudi Arabia recently, but we made deals a long time ago. It was Nixon’s administration that made deals with Saudi Arabia that we would buy stuff from them. They would do stuff for us. They would buy our military equipment and weapons and stuff like that. And then any surplus that they have on oil endeavors, they would buy our bonds. So they would buy loans from us and we could basically just finance our money printing in essence.
So we now owe interest and payments and principal on those bonds, but they have basically financed us throughout the decades and that’s why the relationship with Saudi Arabia is so unique and so interesting because the dollar, the petrodollar, everything, all the oil in the world has to go through the dollar. So oil has to go through the dollar. But this is starting to unravel. There are cracks in this. The Chinese now have on their exchange, they now can start trading oil in the Yuan. If you don’t need the dollar anymore then that’s not good. So they’re starting to usurp that. Well, there are many countries doing many different things to usurp the dollar right now and they have been, especially the 5 or 10 years since the depression, the great recession. So this is one of the biggest things. The petrodollar goes down, that’s not good. So another thing to keep an eye on.
These are all things to keep an eye on. As I said, I want to inform everyone and show everyone what is going on. I’m looking at my list here.
Dollar reserve currencies
This is another good one. The dollar reserve currency status. Usually, it’s about 98 years. Usually 500-600 years. That’s usually a band about the average that a dollar is the reserve currency. Ours, it’s either 94 or 98. I can’t remember now. The dollar has banned the reserve currency for I think it was maybe 94 years. The dollar has banned the reserve currency now for 98 years. So something right around that. Either way, it doesn’t matter. It’s basically we’re to the end of that rope in essence. So another one of those nails in the coffin for the dollar. I think that everyone kind of knows things is going on. I mean I think at this point, everyone knows what’s going on. People see the unrest in the country, people see what’s going on. A lot of that is because there are things going on. There are financial things going on. People are being squeezed and people are sensing things. Humans are smart, they are intelligent. Even if you’re not actively watching these things or doing these things every day, all day long and studying these things, you still sense things. You know things and you can tell that something’s going on.
Credit Card Bubble
One of the other big-time bombs that you had is the credit card bubble. Credit. You got school loans and you have pensions, social security, you’ve got some incredible bubbles forming pensions, $5 trillion bubbles alone itself. The school is over a trillion. That’s one plus this is 1 trillion plus. These are 5 trillion. That not including social security, that’s just pension, state pensions. It’s incredible where we’re at as a society. What’s going on. Illinois is about to be the first state to go bankrupt. Subtle. I mean, we have some real, real issues going on that need to be figured out quite frankly. Things are going to hurt and that’s just life. We’ve put ourselves in a situation. There’s no one to blame but us and our ancestors, the people before us. It’s all our fault. So we need to figure out what’s going on. And quite frankly, our generations, you, all of us living now are the ones that are gonna figure it out. We are going to be the ones, you know, we are going to be the ones to figure this out and get this done because that’s what we do.
So like I said, the pension, that element is about to go bankrupt. The pensions are crazy. They’re off balance sheet promises, they’re off balance sheet items. They’re promises in the future that we’re going to give you something in the future. So there’s nothing on the balance sheet. So when you look at a balance sheet of a, of a government, of a sovereign nation, of a corporate entity or something like that, you see their balance sheet, you see what’s going on. But these are off balance sheet things that they’re just promises in the future. Andy Tanner, one of Robert Kiyosaki’s rich dad advisors always talks about “promises made and that’s what governments do a lot, right? They promised things in the future. If you go and sign for a mortgage with the bank that now shows up on your balance sheet and that’s something you have to pay. But simultaneously, if you promise your kids they’re going to pay for their college in 15 years, they are three years old or five years old and in 13 years you say you’re going to pay for their college. Well, it doesn’t show up on your balance sheet right now, but you made an off-balance sheet promise to then pay for that in 13 years or 10 years or three years, whatever it may be. So you made that off balance promise and that’s going to come due at some point. That’s exactly what’s going on now with pensions, those are all things. A lot of these entitlements are things that have been promised to people and you’ve got things like some of the states in the union can’t even pay their lottery winners. So like where’s that money going? You know, half supposed to go to the winner and then half goes to, where’s that going because their sleight of hand is so incredible right now. We’ve mismanaged money and our governments have mismanaged money so much that we need to figure out how we’re going to fix that. Right? So these are issues that are coming.
I wanna talk about risk quick here to wrap up and outcomes. So, risks and outcomes. Risks: we have currency wars which are going on right now obviously; currency wars; trade wars, which are going on right now. We have real wars, which a lot of times these things – World War III. A lot of times these things lead to world wars, they did before – World War E. So that’s just digital war and cyber warfare and then AI. This is the battle for AI and the race for AI. It’s real and it is on. It’s on our doorstep and whoever the first people who get a full- functioning AI- artificial superintelligence, artificial general intelligence and all these things to control the world. When you have computers that can learn on their own and build their own robots, where do we humans then stand? So this is what’s coming and these are things that we need to think about, we need to talk about.
Everything’s going to change. And that’s just life. Things change in life. Markets change, governments are going to change, the US is going to change, societies are going to change and we have the swing – the pendulum from capitalism to socialism or collectivism. Capital to socialism, this pendulum swings back usually every couple hundred years. It usually is swinging back and forth and going from capitalism to collectivism and capitalism to collectivism. Right now we are going very quickly into collectivism and that’s not the talk for today, that’s a talk for a different day, but that’s just where we’re going and that’s where the government’s going, that’s where voters may be going, that’s where people have been going and sentiments. So I think there are a lot of people that are not going that direction, but there’s also a lot of people going that direction. So how do we come together and how do we figure out to a way to combat this and fix what’s going on and make ourselves better and unify ourselves?
So any and all ideas are welcome and I appreciate you guys listening to this insider reports. Again, part three of five of what we have going on to wrap up this year. The next couple updates will be things you can do and ways you can protect yourself. I was just talking about cryptocurrency, Blockchain, Hash graph in the next episode here in a month, and then in December we’re going to wrap it up with precious metals. Hedging yourself with investments there and safeguarding yourself. So what are things we can do with the first episodes were kind of grim, the last you are going to be more about the future and what we can do and how we can help ourselves and help each other. So I appreciate you guys and everything that you do for us and we love bringing you guys this stuff, this content and appreciate you more than anything truly do. Your time, your energy is the most important thing that we all have. So I appreciate you spending it with us. All right guys. We’ll see you soon.