Are you prepared to embark on a life-changing journey exploring the interest rate cuts and understanding why is the Fed unable to raise rates any higher.
In this video, we delve into the realm of why is the Fed unable to raise rates any higher, encompassing
Some of the topics we will discuss are:
– Federal reserve constraints
– Why isn’t the Fed increasing interest rates?
– What causes the Fed to lower interest rates?
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This week on Retirement Lifestyle Advocates Radio, your host, Dennis Tubbergen, talks and discusses the current state of the Federal Reserve and the potential for rate cuts in 2024 with guest Mark Jeftovic. He believes that the Fed and other central banks have started a slow-motion pivot, pretending to be hawkish while being unable to raise rates any higher. Jeftovic suggests that investors diversify their currency risk by investing in physical gold, silver, Bitcoin, commodities, real estate, and businesses that produce cash flow. Mark E. Jeftovic Mark is a 30-year veteran of the Internet, the co-founder & CEO of easyDNS Technologies, a Toronto-based web services company, and the author of two books about the internet; Unassailable: Protect Yourself from Cancel-Culture, and Deplatform Attacks, and other Online Disasters. Additionally, Jeftovic authors the blog site bombthrower.com and The CryptoCapitalist Newsletter. To learn more about Mark Jeftovic please visit www.thecryptocapitalist.com or take advantage of his trial newsletter offer at www.thecryptocapitalist.com/tubbergen. To learn more about Retirement Lifestyle Advocates, please visit our website at www.RetirementLifestyleAdvocates.com.
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You are listening to the retirement lifestyle Advocates radio program I’m your host Dennis tubergen glad you decided to listen in today hey I’ve got a terrific show lined up for you today joining me in segments two and three is Mr Mark Jeff ofic uh Mark is a prolific
Author in the financial sector he’s the proprietor of dollarcollapse.com and he is the publisher of the bitcoinist.com I’m going to get his perspective on all things economic and crypto in segments two and three of today’s program so you want to stay tuned for that also let me remind you it
Is the month of February which means that I have a brand new February special report for you the special report for the month of February is titled Ira Tax Strategies you’d like to get a copy of the report which is highly advisable in my view if you have an IRA or a
401k go to request your report.com and I’ll not only send you the February special report I’ll also send you a copy of my updated Revenue sourcing book for 2024 all those resources are free and again available at request your report.com you know here on the program one of the
Themes that I often talk about are the economic patterns that repeat themselves throughout history Thomas Jefferson told us over 200 years ago that if we put private Bankers in charge of monetary policy we will get inflation followed by deflation and of course that has proven itself time and time again to be true
Now the cycle of inflation followed by deflation is unnoticed by many due to the fact that this is a long cycle when you study history this cycle can take anywhere from 60 to 100 years to complete and it is tied directly to the type of currency in place at the
Time now historically speaking when we get to the end of this cycle the canaries in the coal mine so to speak our debt defaults bank failures and then ultimately deflation now ever since the Federal Reserve began the policy of increasing interest rates and tightening in the name of controlling
Inflation if you’ve been a longtime listener to the program you know I have been adamant in my belief that it wouldn’t take long and the FED would reverse course they would pivot as the term now has become uh known to be now they would do this in an attempt to
Stave off a deflationary crash like occurred in the 1930s now there is another reason for that as well uh that I will cover in this segment now the FED has now said that interest rate Cuts may now not happen until later this year they might
Be off the table uh I have not changed my mind now one of the reasons for this is that when you look at the debt facts of the United States government it’s hard to come to any other conclusion now we’re all aware that the government of the United States
Officially has more than $34 trillion in debt now we can add to that the unfunded liabilities of Social Security the unfunded liabilities of Medicare and other government programs and we get a fiscal Gap that is much much higher according to Professor Lawrence kikoff that fiscal Gap is now over $200
Trillion but let’s focus only on the $34 trillion in official debt that is a widely known fact less welln is the fact that the US government will need to finance more than $1 trillion this year alone now I said Finance but what I should say is finance or
Refinance now from where I sit I think it’s going to be very difficult for the US government to accomplish that without the Federal Reserve becoming the buyer of Last Resort for this government debt now according to an article published on Apollo Academy Academy there is $8.9 trillion of government
Debt that will mature over the next year now what does that mean it means that in the past some country some person some entity has loaned the US government money by purchasing US government bonds and those bonds are now up for Renewal they are maturing when you buy government debt
You can buy it for various time frames and depending on the time frame that you select that debt matures at a certain point in time at which point you can get your principal back the loan will be repaid so there’s 8.9 trillion that the government of the
United States will need to repay or refinance this year that’s an amazingly High number now added to that will be whatever the deficit is in 2024 now there will be a deficit according to the Congressional budget office the deficit will be 1.4 trillion I happen to believe it will
Likely be higher than that given the fact that this is an election year I fully expect we’ll see some sort of package pass to attempt to appeal to voters this year uh but even if we don’t we’re North of 10 trillion in US government bonds that someone has to
Buy now my question is given the state of US Government finances who’s going to buy $1 trillion in US Government debt now I don’t know the answer to that question but my sense is the Federal Reserve will have to step in and be the buyer of Last Resort now the next
Question of course is will this reflate markets will this cause stocks to go higher and real estate to go even higher the answer is I don’t know but at some point ultimately the FED will not be able to reflate these asset bubbles regardless I believe that this particular set of circumstances will result
In more Consumer Price inflation and ultimately declining asset prices as stag flation sets in now stagflation is an economic condition that is characterized as higher price inflation we pay more for everything that we buy and a Contracting or shrinking economy it is a very very ugly
Situation now as I said at the the outset as this cycle concludes the canaries in the coal mine are debt defaults bank failures and then ultimately deflation now we’re starting to see the beginnings of that a New York fed survey published last week indicated that in the fourth quarter of
2023 autol loone delinquencies reach levels not seen since right after the Great Recession more than a decade ago actually the Great Recession occurred at the time of the financial crisis so we’re going back really about 15 years ago now the number of auto loan borrowers that are behind on their payments hit
7.7% recently nearly 8% that means nearly one in 12 auto loan borrowers are behind on their payments and they are going up now we haven’t seen that level of payment delinquencies since right after the Great Recession now part of this is obviously the fact that inflation continues to accelerate and
It’s consuming a lot of the discretionary income of borrowers who have auto loans however due to higher interest rates and Rising car prices which again can be linked back to inflation this this whole phenomenon kind of feeds on itself the number of buyers with high monthly autol loan
Payments is going up in Edmund’s report many of you are probably familiar with Edmonds they track auto data the percentage of drivers with a car payment of more than $1,000 a month is now at an alltime high of 17.1% that is nearly one in five auto loans that have a payment that requires
The borrower to make a payment of more than $1,000 a month now there are some crazy examples of auto payments on certain vehicles of $2500 to $3,000 a month which absolutely blows my mind but that’s where we are so when will this deflation kick in I cannot tell you when
But the what if you study history is easily predictable that’s the topic of my Revenue sourcing book it also contains strategies to help you protect yourself from what might lie ahead and if you go to request your report.com I’ll send you a copy of the revenue sourcing book as
Well as this month’s special report Ira Tax Strategies so again the website request your report.com request your report.com I’ll be back after these words with my special guest Mr Mark Jeff Vic welcome back to rla radio I’m your host Dennis tubergen joining me once again on today’s program is returning
Guest Mr Mark Jeff ofic if you’re a longtime listener you’ll recognize uh Mark as the uh I’ll use the term proprietor of the website dollarcollapse.com they have a breaking news section on that site that gives you links to uh a lot of terrific news stories I’d encourage you to check it
Out uh you can also learn more about Mark’s Work free at bomb bower.com that’s bomb.com and he is the publisher of the Bitcoin capitalist you can more learn more about that at Bitcoin capital.com Mark welcome back to the program and thank you for joining us hey Dennis great to be here always
Always enjoyed talking with you well markk let’s just start with uh here we are in 2024 uh the FED uh in December said that rate cuts are on the table they now say that you know rate Cuts will be postponed to like May anyway uh what do
You think the FED does here moving ahead in 2024 well I’ve been saying it for several months now probably since mid 23 that the FED has started a slow motion pivot and in fact I think most of the central banks have started a slow motion pivot and what that looks like is
Jawboning tough you know job owning hawkishness and really being unable to raise rates any higher even though inflation hasn’t come down to the targets they have to pretend like it has they have to declare Victory and withdraw and drag it out as much as possible and then finally capitulate and
Start lower lowering rates um that’s going to drive inflation it’s going to drive asset bubbles it’s going to drive wealth inequality it’s going to drive a whole bunch of things that got them in this mess in the first place but there’s no other alternative because they can’t raise rates without destroying the
Financial system and the Canadian Bank uh you know Bank of Canada is pausing the bank of England is pausing it’s um they’re moving like a pelaton right now well Mark when you look at I’ll just talk about US Government finances for a minute you know cost to service the
Interest on the debt is now a trillion dollars this year uh I read read a piece and talked about it on last week’s program that uh you know with a1. half trillion dollar deficit the US government has to finance or refinance about10 trillion dollar in debt this
Year can that be done with honest money or is the Fed going to be the buyer of Last Resort and that’s another reason they have to do what you have predicted they’re going to do yeah it’s again there’s no real alternative here we um I think I saw
Similar statistic talking about the same thing that 21% of all federal like government receipts are serving the interest on the debt that’s up from 15% the year before uh Lawrence leapard was putting out um in his quarterly Rec um uh investor shareholder letter for his
Fund that uh like a 33% of of uh federal debt is maturing in the next uh 12 to 18 months so like there’s a whole pile of debt rolling over the deficits are blowing out like a trillion dollar deficit it’s going to be even more probably this year um there and and
Nobody’s really showing up at these auctions other than you know the FED is going to have to step in and monetize this stuff so uh and they can’t do it at higher rates they just can’t so that’s going to Ripple through the entire system and and we saw that Regional banking crisis
Last year uh around this time and and it seems to be like something’s coming unglued under the hood now again in the same sector so that really everything is like a tension wire they can’t really even nudge it another quarter point higher without everything breaking loose
So yeah they’re going to have to lower rates they’re going to have to monetize their own deficits and that’s a formula for inflation right there mark you made a I I agree with you and you made a comment that uh you know Easy Money policies by the FED will
Replate asset bubbles um at what point does the market react differently do they say you know we’re at a point that this is uh you know we’re we’re on a road to nowhere we’re on a road to an inevitable uh Financial system crash at what point uh will the FED be unable to
Reflate these asset bubbles it’s a great question I think you know these asset bubbles will reflate just because of the way the fat system is built that the money is evolving but what will change in is the nature of these asset bubbles you’re gonna what happens usually between these
Huge uh up Cycles in these asset bubbles is a change of leadership so before this tightening cycle we had what people were calling you know euphemistically the everything bubble and you saw a lot of profitless unicorns getting billion dollar valuations you saw this back uh sort of bag where companies were going
Public before they even had a company and and they were getting these million billion dollar valuations I think what happens this time on this go round is there is a little bit of sobering that happens in the investing public and people realize you know what these ephemeral unicorns that have no profits
And no business models we’re not going to just jump on those like their meme stocks to try and protect our our sort of capital base in our wealth we’re actually going to buy concrete things we’re going to buy real businesses with real profits we’re going to buy Commodities we’re GNA buy stuff we’re
GNA buy precious metals we’re gonna Pro buy uh Bitcoin it’s going to be this real big shift I think from unicorns to Comm Commodities and actual businesses and things like that so that’s that’s what it sort of looks like when the wider public or the investor class for
That matter sort of wakes up and says the f is kind of lost the plot there’s nothing they can do that destroy the currency we’ve got to move into something that’s going to hold its value that isn’t a unicorn with no business model well if you’re just tuning in my
Guest today is Mr Mark Jeff Vic he’s the proprietor at dollarcollapse.com they have a breaking news section there that I often refer to I’d encourage you to check it out uh you can get his U free commentary at bomb.com and he’s also the founder of the Bitcoin capitalist
Docomo take on recession to me the reason we’re not in a recession is that the US government has a high level of Def deficit spending and if that goes away we are already in recession um do you think the FED can kick this can down the road or do you
Think you know we’re seeing an official recession this year you know even when you see an official recession they kind of um sort of Revis the meaning of the word recession so you’re not in an official recession we saw that happen in 2023 or
Was it 2022 so I I find that’s sort of splitting hair like how many angels can dance on the head of a pin uh the economy is like really hor hard and horrible right now I mean there’s layoffs across almost every sector people are losing their jobs uh people
Are having a hard time keeping up with the cost of living and uh whether you want to call it a recession or not uh we’re not in a boom right now we’re not in a we’re not in a Rosy economy things are tough people are scared businesses
Are raining in and if you want to call it an official recession you can uh I just think it’s a it’s just a tough swag right now now whether you get an actual you know two consecutive quarters of negative GDP growth yeah I mean that wouldn’t surprise me even though things
That damage the economy grow the GDP nominally but you know it’s not really um a useful measure anymore but the economy is in horrible shape right now that can’t be denied you know Mark I think sometimes uh people forget the fact that this devaluation of all Fiat currencies but
In particular you know most of our listeners here are in the United States uh you know as a dollar devalues that kind of skews the reported economic data it makes you know stock values look better it makes GDP numbers look better um uh to to what extent uh is economic
Growth simply a a factor of a reported economic growth I should say simply a factor of currency devaluation I think it’s a huge factor I mean I even think when you look at you know Char Charlie Munger passed away recently and people look at his career
And it’s like oh look at the birkshire halfway and the Warren Buffett and by you know no denying they were they were Next Level investors that uh had had had a gift for it but you look at the history of like a birkshire haway or other company that’s compounded over
Decades kind of tracks the growth of of viat money kind of tracks M2 and I’ve read a few good books about real estate like uh a good one I can’t remember the author’s name the secret life of real estate it basically says that real estate basically tracks the inflation
Rate over the long long term and so this this sort of pass it assumption that stocks always go up in the long run it’s like yeah when you’re printing money all the time then everything goes up over the long run and I think that is really not taken into account when a lot
Of these people come out and talk about this this Relentless growth in GDP or this Relentless growth in in in you know asset values a lot of that is being it’s got this Tailwind of just currency devaluation well Mark we’ve got just a little bit of time left in this segment
Uh for our listeners that have not heard of your work at bitcoinist.com would you be kind enough to share a bit of an overview sure so the Bitcoin capitals.com it’s for people who are investors business owners um Capital allocators who want to allocate a portion of their wealth to uh Bitcoin
And the crypto economy so we focus mainly on that segment uh we do comment on precious metals and what we see going on in in the rest of the asset classes but then when we get tactical and we focus we have a basket of crypto and Bitcoin equities uh 10 names we actually
Have a value investing approach to this believe it or not it does happen in crypto and in Bitcoin and um you know 10 names pretty focused we don’t do trading we’re not looking at chart patterns or anything like that we’re looking for you know we want two Amazon of cryptos out
Of this portfolio and so we put out a a mid-mon portfolio update every month and then a monthly macro letter and um we’re gonna actually cut off new memberships uh soon when one of two things happens when Bitcoin hits a new all-time high or the having comes which is going to be in
April whichever comes first we’re going to stop accepting new members just because um we found from experience that we want people who have the longterm Vision not the people who are scrambling to get in at the pop so well my guest today is Mr Mark Jeff ofic to learn more about the Bitcoin
Capitalist it’s bitcoinist.com his free content is at bomb.com I’ll continue my conversation with Mark when our LA radio returns stay with us I’m Dennis tubergen you are listening to rla radio have the pleasure of chatting once again today with returning guest Mr Mark jeffi uh Mark is the proprietor at
Dollarcollapse.com they have a breaking news section where there are links to many many news stories I use that as a resource frequently I’d encourage you to check it out his free content is available at bomb.com and he is the publisher of the Bitcoin capitalist you can go to bitcoinist.com to learn more
So Mark you know the the big theme here and I I think this this fact maybe is lost on a lot of a spiring retirees those who are putting money away in a 401k and that is that we we see seem to be in this slow motion move toward
Currency changes which you know has occurred many times throughout history you think about Weimar Germany which maybe wasn’t so subtle but John laws France the Roman Empire there are many many many examples aren’t we seeing uh you know history just repeat itself here yeah I think we are I there’s
There’s a when you said currency changes there’s two things that came to my mind actually and one of them might be a little outside of what you were expecting But first you know currencies devalue themselves to practical practically being worthless time and time again especially be it currencies
Like currencies that are backed by nothing currencies that can just be printed out of thin air I mean I’ve got um the classic book I can’t remember the author that the sort of um be it money it’s is just showing like even from ancient Chinese dynasties through the
Middle Ages the Civil War Yar Zimbabwe like every single VI currency the chart looks the same it’s just down and to the right they just devalue themselves to zero the other currency change that for a second I thought you were alluding to and I’ll just mention it briefly is
There’s going to be this pivot to Central Bank digital currencies worldwide as sort of a Hail Mary to save the be at currencies and get another couple decades of Runway out of them and that’s another thing that if you’re saving money in a 401k for retirement
You want to be aware of because uh there may be some conditions on that wealth you have stashed away in the banking system come time to retire or want to get at it so Mark uh since you went there I’m going to go there these Central Bank digital currencies you described them as
A Hail Mary I think that’s a a terrific analogy to use to describe them uh you know if if if Central Bank digital currencies actually become reality uh my my take is as as you think about it that you know if you take cash out of circulation and make everybody
Use a digital currency without some you know interim period where you know both are used uh you know you’re kind of forcing something down the throats of the citizenry and that may not sit too well do you think that Central Bank digital currencies can actually be a reality
Uh before we see some type of financial system reset well there there a reality now in some parts of the world we’re we track this every month the Bitcoin capitalist the the current deployment of Central Bank digital currencies and I’m I’m actually writing a book on the CBBC
Survival Guide so I’m kind of really deep into this topic there’s uh retail cbdcs going right now in Venezuela in uh uh Nigeria in Jamaica uh a few others none of them are going well uh Nigeria especially massive public rejection uh despite the government trying to demonetize cash and
Everything it’s just that so it’s really a hard cell for the public uh the early indications are it depends if it gets to a point where uh the economy is so bombed out that they have to implement things like Universal basic income then people will take the take the cbdcs if
It’s what they need to you know have their economic survival depend on it and so my advice to everyone and hopefully you know doesn’t apply to many of your listeners is that not to be reliant on government entitlement programs for your economic sustenance at all because
That’s going to be the rails of how these tbbc systems come into effect so let’s talk a bit Mark I mean the the the what is fairly easy to predict the when of course is the million-dollar question uh you pointed out that you know going back throughout
History when you look at a chart of purchasing powers of Fiat currencies eventually they all end up worthless in fact I think it was vol in the 1600s that wrote that all currencies eventually return to their intrinsic value and with Fiat currencies of course that’s zero so to to the extent that
You’re comfortable um you know do do you have any idea or or inkling as to what timing might be on on on this whole progression you know one of my favorite quotes of all time is Douglas Casey that says just because something is inevitable doesn’t make it imminent so
So um and and things things have happened uh things have H things have managed to drag on far far longer than I could have ever have imagined you know I thought uh I’ve been thinking since 2010 2012 this can’t go on much longer and it just keeps going keeps going
Keeps going covid hits and the the monetary presses ramp up even harder um you know it it’s really really it really it’s impossible to say other than probably when even people like you and I who are expecting this kind of thing have our guard down and
Think ah well you know who knows how much longer they can keep it going then Wham you know Suddenly It’s gonna happen it’s just uh there is so much impetus and will to keep this system on the rails and I don’t fault anybody for it because the alter atives are bearable
Really like nobody wants a hyperinflationary blowout even people like myself who are expecting it I don’t want it to happen I don’t want the system to come a part of SCS but um there’s so much will from policy makers and legislators and politicians and everyone really just keep this thing
Held together with spit and twist ties that it’s going to go on for a long time I really have no idea IDE and the only other thing I’ll say about it quickly is the other Dynamic when I wrote um you know a piece called the crypto capitalist Manifesto that I put out in
21 which kicked off the whole you know newsletter and all of that I was talking in 10 and 20 year increments for what I saw coming and then it happened much faster than I thought so we had Capital controls come in in Canada in like 2022 uh this was supposed to happen 20
Years from now not a year after I started writing about them so we have this sort of dual Dynamic where things that I didn’t expect for 20 years are happening now and things that I thought were going to crash 20 years ago are just seem to just keep going and going and going
So so I’m hearing Mark that you know if somebody’s listening to this they’ got money Sav for retirement that certainly you don’t want to keep all of your wealth stored in one current you’re going to want to diversify your your currency risk to use that term so what
Advice would you give someone gold silver Bitcoin what what would you tell them I like everything that is not be money so um you know I I like I like physical gold physical silver I like the gold stocks and silver stocks to get that sort of Leverage from having never
Never ending call options I like having a little bit of real Bitcoin um in self- custody not on an exchange so and if you’re like a family office or institutional then you’re using a proper like institutional grade custodian uh with like a multi Sig key um I like things like real estate and
Businesses that produce cash flow uh just things that actually aren’t be money things trade money for that actually hold their value and can produce income and uh and you know give you some diversification I wouldn’t diversify out of the dollar to go into Swiss branks or German marks or Canadian dollars they’re
All headed in the same direction so um I’m hearing you say that because in the first segment you mentioned that you expect Commodities uh will be a good place to be um so are are you leaning more toward gold silver um you know you know Bitcoin maybe as an alternative currency or are
You suggesting even some of the uh you know maybe less invested in Commodities like agricultural Commodities and things like that yeah things like that uh gold silver Bitcoin um agriculture farmlands uh energy is going to be huge um you know like it or not like energy will be huge for the next foreseeable
Future and uh yeah so it’s like a hard asset kind of movement kind of shift super cycle coming well this is probably not a fair question to ask you with two minutes left in this segment but uh to what extent uh do you believe the bricks Coalition that have now added you know
Notably United Arab Emirates Saudi Arabia and Iran uh to what extent do you think uh the bricks Coalition and their you know openly stated goal of developing a goldback trade currency will advance the devaluation of all the Fiat currencies we’ve been talking about yeah it’s it’s definitely going to
Have a factor that’s one of the things that has accelerated far quicker than I thought it would was the whole dollarization them like I thought okay the US Dollar World Reserve currency can’t last forever won’t last forever but it’s probably going to take a long
Time to run down or to sort of be phased out you know I’m I’m my main business I’m in the software industry and in the web industry and we have this concept of the long tail right the long pale of the US dollar will deserve currency very
Very long and then again what we saw happening was this whole move to D dollarization started happening very quickly self-inflicted by the way because the US government used their their US dollar Reserve status as a weapon against two other nation states doesn’t matter what you think of those
Other nation states but it forced every nation state on the planet to rethink their US dollar Reserves so that really accelerated the move to create alternative currency blocks and so now we have one and we’re already seeing some of these countries saying we’re no longer going to price our oil exports in
US Dollars we’re gonna or they’ll do oneoff sales to a country like China in gold or in wand so this this is one of the the the driving factors that is going faster than I thought it was going to go and yeah it’s really moving and uh you
Know there’s still you’re still going to be able to spend US Dollars around the world for a long time but you’re probably going to have to spend a lot more of them to get equivalent services and products well my guest today has been Mr Mark Jeff ofic uh he is the proprietor
At dollarcollapse.com they’ve got a breaking news section as well as a lot of other free information I’d encourage you to check out uh Mark’s uh free content is available at bomb throw. comom and I’d encourage you also to check out bitcoinist.com uh which is also Mark’s publication so Mark always a pleasure to
Have you on the program always get great feedback when you’re on thank you for thank you for joining us today love to have you back down the road thanks Dennis always a pleasure I’ll just one minor correction it’s the Bitcoin capital.com I was able to get the other domain my apologies the Bitcoin
Capital.com the bitcoinist.com my apologies and uh we will return after these words I’m Dennis tubergen you are listening to the retirement lifestyle Advocates radio program and special thanks again to Mr Mark jeffi for joining us on today’s program in the first segment I talked a bit about this historical economic
Pattern that keeps repeating itself and it’s the cycle of inflation followed by deflation now historically speaking this cycle moving to deflation often seen see signs that we’re nearing the end of the cycle and those signs are debt defaults and bank failures and certainly we saw some bank
Failures last year uh we’re hearing more news of banks that are on the proverbial rope so to speak this year but why does this happen why does this cycle keep repeating itself well it’s essentially that currency changes over time and today’s currency is debt I know that’s a
Hard concept to get your head around but bear with me for just a minute see since 1971 when the link between the dollar and gold was eliminated US Dollars have been loaned into existence Banks today have a 10% Reserve requirement at a minimum which means that if a bank is operating at these
Minimum reserve requirements if a depositor puts $100,000 into a bank that bank has to reserve 10% and can loan out the other 90% or $90,000 this process can continue as currency moves from bank to bank creating more currency by the very by no re for no reason other than that currency is
Moving so when the FED wanted to jump start the economy and get people move get the economy moving again they encourage people to borrow and that’s really expansion through debt which is not expansion at all and at a certain point debt reaches the point that it cannot be serviced and that’s when you
See this cycle move to deflation now there are some signs that we are getting closer to that and by the way if you’re just joining me my updated Revenue sourcing book for 2024 not only goes through this cycle in detail it also gives you some strategies to consider for your own personal financial
Situation when you request that book along with this month’s Ira Tax Strategies report by visiting request your report.com I’ll send it all to you free and without further obligation now miss shedlock uh who has been a past guest here on this program reported that credit card debt surged to
A record high in the fourth quarter along with credit card debt reaching a new high so did the number of credit card delinquents quencies Those Behind 90 days or more on their payments here are some numbers aggregate household debt increased by $212 billion in the fourth quarter of 2023
Alone that’s up 1.2% from the third quarter household debt now stands at 17.5 trillion that’s up 3.4 trillion since the end of 2019 just before 2020 and Co so households are continuing to rack up debt that will lead to deflation as if there’s too much debt to be paid it will
Not be paid mortgage balances up 112 billion during the fourth quarter mortgage balances now stand at 12.25 trillion balances on home equity loans or home equity lines of credit up 11 billion in the fourth quarter from the third quarter that is the seventh consecutive quarterly increase and there’s now 360 billion in
Outstanding home equity loan balances that’s a third of a trillion dollars plus in outstanding home equity loans credit card balances I remember last year on the program when we said credit card balances are now approaching a trillion they are now at 1.1 3 trillion and increased 50 billion in the
Fourth quarter of 2024 alone auto loan balances also up up by 122 billion from the third quarter to the fourth quarter that upward trajectory and outstanding auto loan balances has been in place since the second quarter of 2020 there is now $16 trillion in auto loans now when you look at other debt
Retail cards other Consumer loans miscellaneous those grew by 25 billion so here we have every category of Consumer Debt reaching a new high in the fourth quarter of last year now just because deflation is inevitable as my guest Mark jeffi talked about today it doesn’t mean that it is
Imminent however we know that at a certain point deflation will be the inevitable outcome now we don’t know when but we know it’s getting closer by the day and that’s why I would encourage you to take advantage of my free resources this week I have for you an
IRA tax management report that’s my February special report if you have an IRA or 401K uh this report contains some strategies you might consider to get more out of your IRA when you have an IRA or a 40 1K the question is not are you going to pay the taxes on your
Account the question is when are you going to choose to it is a tax time bomb if you will and there are strategies you can use to potentially uh lessen the tax pain and maximize your IRA in 401k to you and your family I’ll also send you a
Copy of the 2024 updated Revenue sourcing book this is all available by visiting request your report.com the website again is request report.com you’ll see a place to enter your name and address on the website just go ahead and let me know where to mail this information and I’ll be glad to do so
Free of charge and with no further obligation so again that is at request your report.com that’s all the time I have for this week glad you decided to tune in I’ll be back again next week