November 2019 Insider’s Report: Why Americans Love Free Stuff

This is quite frankly just stuff you're not going to hear anywhere else. This is really not the stuff you hear from your realtor or hear from your real estate team, your real estate professional. This is not stuff you hear anywhere. It's not the stuff we're taught in school. It's why Americans love free stuff. It's why we're all addicted to free stuff. It's why we think the government should give us everything and we deserve everything from the government. It's interesting because not that long ago, John Kennedy said in 1960 to 1960 early 1960s not sure what year it was early 1960s, And he said, "Ask not what your country can do for you, but what you can do for your country." Right? And we have really gotten away from that.

Quantitative Easing

So what are a few things that have led us to that and then what things are gonna come out about because of that? Well, there's a couple of things. Richard Nixon, a lot of title programs and the government's kind of usurped a lot of our freedoms because of that and taken that off of our personal responsibility to do that. So they've kind of taken a lot of that off of our hands. Richard Nixon took us off the gold standard in 1971, therefore, creating a fake currency. It's not money anymore. It's the currency. It's just paper. It's all it is. It's not backed by anything. It's not backed by gold and silver. So that was one of the big things, which is what has now allowed us to do a lot, allowed the government to do is print money, which is QE -quantitative easing.

Money printing, quantitative easing, easing the money supply, making it easier for money to be printed but also easier to really accumulate money and make it easier and more expansive because when money goes into deflation, there's less money then it's harder. It's the contraction of the mind supply and it's not as hard to get your hands on because people are hiding under their mattresses for lack of a better term. We have QE, which is why we have seen inflation, which some people might say "Brandon, we haven't seen inflation." We have, right? How many of us have gone out and gone and seen a bag of chips to the store? And we were like, "Man, this thing needs to be like full back in the day and now it's only half full." And while that cereal box is a third of its size, that used to be half the size it used to be when we used to get it 10, 20 years ago. That's inflation. They're just hitting you in different ways. You're not seeing it at the level we might have remembered it 30 years ago, 50 years ago.

It's just different now and it's hitting us in different ways. Believe me, we've exported a lot of our inflation as well. What that means is we have goods and services. We make little widgets, we make a cross and chain, whatever the heck it is. We make something and then we export it. And this is America. We exported it over to other countries and we export those dollars. We have our dollars and we export our dollars over because they have all the goods, they're making all the goods and we get these products back and we exported these dollars. We're using dollars as the currency to get those products. So we're trading paper for actual things. This is why Nixon took us off the gold standard because we were losing all of our gold. We were repatriating our gold and all of a sudden we were getting running short on gold. There was basically a run in gold and he had to take us off the gold standard. The world would've collapsed in essence. So now it's enabled, the governments are back for nothing. We can print, print, print, which again increases the money supply, making everything inflated.

Inflation obviously is something that makes things more costly. Your grandfather's house was $8,000 50 years ago or seven years ago. That thing is now $400,000 - $500,000 because of inflation. So it takes more of those paper dollars to buy that same exact thing, that same house, that house hasn't changed. Same exact house, now it takes 400,000 of those bills to buy what 8,000 used to buy.

ZIRP and NIRP

These things are here and they're coming. ZIRP is Zero Interest Rate Policy and NIRP means Negative Interest Rate Policy. This is what we've already seen, we've already seen these in different parts of the world, Japan, Europe, NIRP as well and negative interest rates in those same places. This is something that we've already got. We've already seen zero interest rates here and that really hits saver. Savers are losers and it's because you can't just put money in the bank and expect to live off, expect to live interest off that you get nothing. You've got money in the bank and you get peanuts back, cents, a couple of pennies back because there are the interest rates. It's very cheap. We are now in a debt-based society. So we are in a debt-based. That's why investing in real estate and rental real estate is so huge because debtors are the ones that are winning. We're a debt-based society. The dollar is debt. It's not money. Gold and silver are money. You used to be backed by that, used to be equities. Now it's debt. We're in a debt-based society. So when you go into the stock market, you're in equities, where the people who are really winning are the debt. They're in rental real estate, stuff like, that where they're going into debt and producing cash flow. The negative interest rate is really interesting. Denmark's already trying this. They're giving. Think of this. Instead of you have, you have a, you know, a house that you're paying for, you're paying interest on that every single month.

Think about if you are getting paid interest every single month. So instead of that, the bank is paying you interest every single month or every mortgage you hold. So you don't have that P and I anymore. You got just principal and then you're getting paid interest. That is as your cash flow. So think about how important it is. Again, why savers are losers cause you're getting hit negative interest rates are you paying the bank to hold your money. You are paying the bank to hold your money and say, are you getting interest? So negative interest rates. You're paying the bank to get to hold your money and then you're getting paid to hold. Again, another reason why debtors are the winners and savers are losers.

Forward guidance

These are things that are coming, things are here and things that are coming because of the life we've chosen to live over the last hundred years and not take responsibility for things. Forward guidance is just the Fed and the government speaks to you saying, "Oh we're going to be good. Everyone hanging on pins and needles. What the Fed's going to say, "Oh, we're going to be fine. We're going to do this and that and their market's gone and going up and down." We're watching what words come out of officials' mouths.

Currency Wars

Things we're seeing right now as well. This is the devaluation of a dollar, devaluation of the yen, things like that. When our dollar is cheaper then it's easier to export goods, stuff like that. So you can do our business obviously. But again, this affects other countries now. So America might win or China wins when it affects other countries. Because when China does it, it affects America. When America does it, it affects China and it affects emerging countries because we're in a global society now. So this is a dangerous way to live. These are all dangerous ways to live really.

Helicopter Money

So when all else fails, there's helicopter money and these things are not in your textbooks. Go ask your economist, your professor from college. That's not in the books. Negative interest rates - that's not in the books. Helicopter money - I mean this is stuff that it's really kind of for the movies and helicopter money are you getting everything else fails. You're going into hyperinflation basically, and there are trillions of dollars. You're getting paid every dollar you've ever paid an income tax back. You're getting every tax you've ever paid back and it seems great for a moment. You're like, "Wow, this is amazing." Until you realize that everyone on the street, everyone in your city, everyone in your state, everyone in your country all got the same thing. And now what happens when there's a mass amount of dollars? Like when these dollars all come back to roost and they come back home at some point. Now bread becomes $500,000 cause those dollars are now so many of them. We just haven't seen a lot because we've exported a lot of our inflation. We've trying to hide it in different things. Our food bags are smaller and we've explored a lot of inflation. So when that does hit someday or when helicopter money comes in and the government's just giving money to try to spur the economy, cause that's what they try to do. Keynesians are the ones that run our government right now. John Maynard Keynes is a big economist in the 20th century, in the 1900s. He was big on this and he was big on stimulus. But again, the crazy part about this is when they give that money, your tax back on that. So I mean it's just crazy. But again, this is why Americans love free stuff. And how's it relate to you? What is it going to happen? What happens to your housing prices? Well, housing prices, in theory, should go to the moon. They should, if you're printing and going into hyperinflation, this is happening. Housing prices will go way, way up again. But also all your living costs will go way up. Your senior living for your elderly parents, your grandparents. Fruit prices will go up obviously. Everything will go up, everything goes up.

We have so many examples of this across the world, throughout the years of hyper-inflations and things like that and deflations where the depression and things like that. Hyperinflation like in Zimbabwe 10 years ago. The Weimar Republic a hundred years ago. We have a ton of different examples of that and who knows what will happen. You know, like right now, for the time being, this might go on and they say we might be coming into a recession. We already are in one. This really might go on. I think there's going to be a big massive event at some point, but it might be in another five years. It might be two years, three years, five years. Cause we keep doing these things just to stave that off. It kinda kicked the can down the road. Cause that's what politicians and officials are great at obviously. They don't want it to go and collapse on their watch. So these things are being bandied about and this is for guidance. They're talking about doing this time. I'm doing that. They're doing a lot of these things already. They're doing this, they haven't done this. This is really a last resort, but they're doing a lot of these other things. It's really all to stave off the problems that are in front of us. This is a time to get prepared. There's still time to get prepared and hedge yourself, finding real estate, gold, and silver, learning stock options and how to hedge yourself when the market does go down. And because I know many of you have 401ks and IRAs and things like that. You've been paying interest for years and hedging herself against those problems that are in the future.

So why do we love free stuff? Because we can print. We see a lot of people talk about modern monetary theory now and this is Alexandria Ocozzio Cortez. This is a lot of Bernie Sanders types and things like that where they think, "Hey, we can just print everything into oblivion and we can just pay hundreds of trillions of dollars. But really, they're just taxing you in the end. It's a stealth tax. Inflation is a stealth tax. It's basically taking your wealth over the long term. It's not, "Hey, we're going to up your taxes next year." It's just a stealth tax over time that just basically erodes your wealth as time goes on. And this is, "Hey, we can pay everything for everyone, free college free, everything, Universal Basic Income (UBI). We'll just pay you to sit at home and do nothing. That's a debate for a different day as to what's right, what's wrong. However, that's the stuff that's being talked about, that's stuff that's coming. Are we those people? Are Americans those people? Are we those people where we just don't work. We don't do anything. Not to say that work is a bad or a good thing. But are we people who just sit around and do nothing?

Personally, I believe that ingenuity and good things come about people in action. It's not so much work in essence, but it's, it's action, taking action, doing things, using your mind, using your body, getting out and doing stuff, creating new things. Anyway, that's a little bit of what's going on right now. That's where we kind of have a quick synopsis of where we've been, where we're going and what's going on right now. So it's really the past, the present, and the future. As I said, I think we have a little bit of time just because granted this thing should've crashed years ago. I've had people over the years just like, "Oh, you said it's gonna crash years ago." Well, it should have. Everything told us it should, but they're doing things that are unheard of. Negative interest rates - I mean, that's not even in textbooks. They're doing things that are staving that off for the time being and who knows? I mean who knows how long it can run? It's gonna run a little bit longer for sure. I mean this election is coming up. Elections are always crazy. They're going to try to stave it off as long as they can. We'll see.

So I would appreciate all your comments, your questions, your concerns. It's something that's very, very interesting and it's going to affect all of us and it already is whether we know it or not through many, many stealth ways, through quantitative easing and inflation, things like that. So questions, comments, concerns, appreciate them all. I look forward to doing the next one for you guys or just kind of with our emergency action alert of just what's kinda going on right now and where things are going. So I appreciate you guys more than anything. Your time, your energy. It's the most important thing we have. If you're on the podcast, please go check @legacygroupmi, on YouTube and Facebook and go put your questions, comments, concerns there. We'll answer them there and appreciate it guys. We'll see in the next one.

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