But there’s a lot of rumor about the Fed Coin and CBDC, Central Bank Digital Currency, that’s also Bitcoin, and now FedNow. So the question is what is money and what does it mean? And anytime there’s a big change, there’s always the rumor goes up and you know,
Speculation and panic and all this, and for good reason. You know, throughout history who controls the money, controls the world. And since 1944, America’s controlled the money with the U.S. dollar being the reserve currency of the world, which caused America to boom, but it also caused many problems.
And when we lose our reserve currency status, it was started in 1944, question is, what happens after that? So our guest today is George Gammon. He was at the three-day event here in Scottsdale, Arizona. And he was talking about the inversion of yield curves, which, given my real estate brain,
I’m still having a hard time figuring out. But people were just blown away with the inversion of yield curves because yield curve’s like reading the teas leaves. – [George] Yeah. – You know, you can tell what’s coming next. Well George, welcome to “The Rich Dad Show”. I’m sorry, I couldn’t make it ’cause that’s what happens when you water ski
And you tear your shoulder out. But anyway, welcome back to “The Rich Dad Radio Show”. – Well, thanks for having me, buddy. It’s always awesome to talk. – Thank you. So what do you know about this Fed Coin and CBDCs and Bitcoin, and crypto and all this?
What does it mean to the average mom and pop out there? What’s gonna happen? – Well, I think the first thing people need to realize is just going back to what you’re saying about Bretton Woods, when you stated that the United States was then in control of the money,
To a certain degree that’s true. But now I would argue it’s more so the banks. The banks control the money and more specifically, the banks outside of the United States. – Amen. That’s Jeff Snyder’s called the eurodollar and the euroyen, and the europeso and the shadow banking system.
But Gerald Celente doesn’t call ’em banks, he calls them banksters. (laughs) – Yeah, that’s a good term. But the reason I start with that is so people realize that 95% of the dollars in the world were created by lending them into existence. So most people have this idea that dollars
Are just kind of a green piece of paper and you take your green pieces of paper that you digitally get with your paycheck and deposit it at the bank, and then the bank kind of puts that in a vault and stole stores it for you until you need it.
But what they need to understand is, again, 95% of those dollars were not green pieces of paper. They were lent into existence by a bank extending credit and therefore those dollars are a liability of a bank. – Right. – So if your listeners have an account with Wells Fargo
Or Chase, B of A, something like that, then, and what the depositors found out very quickly with Silicon Valley Bank by the way, is that those dollars, which they considered assets, you know, you got a hundred thousand dollars in your account, that’s your asset. But that was a liability of a bank.
They weren’t putting it in a vault, they were actually taking your money and they were lending it out and you just had to trust that that bank was gonna pay you back. So, why I want to start there is because I have really been pounding the table that the thing people
Should really be worried about as far as the Central Bank Digital Currency isn’t necessarily a competing currency to the dollar. It’s not necessarily a Fed Coin or the, you know, Janet Yellen coming out and saying, “Okay, now we’re gonna start using this CBDC, so whether you guys like it or not,
We’re just going to force you guys to use this and ban cash.” But what a CBDC really is when you look at the mechanics and the financial plumbing, it’s just the individual taking their account that they now have with Wells Fargo, that’s a liability of Wells Fargo,
And simply moving it to the Federal Reserve. This is what we really need to push back against. Assuming that you value freedom, liberty, free market capitalism, and especially your privacy because all those Orwellian things that we have heard of that we don’t want to come to fruition, those cannot happen unless your dollars
Are on the Fed’s balance sheet. Or said another way, that your dollars are a liability of the Federal Reserve, that your bank goes from being Wells Fargo to Jerome Powell and the FOMC. And fortunately the good news is that is currently illegal. The Fed admits that it is illegal for them
To have an account or an individual in the real economy. So as long as we make sure that they don’t change that law and they don’t break that law, it’s gonna be very difficult, if not impossible for them to implement what is really a central bank digital currency.
And there’s a couple other components that would be necessary, but I’ll just stop right there. – Yeah, yeah. ‘Cause you’ve gone over the head of most people right now, including mine. I like pictures. Like what you have here is what’s going on. You have here, this is your savings. – Yes.
– Your asset. So you have a million dollars or a hundred thousand, that’s your asset. But the moment you put it in the bank, it becomes the bank’s liability. – Right. Yeah. I’m just looking at paper. Exactly right. – The banksters have to than take your money
And they have to buy another type of asset to make sure they can pay you the interest on your savings here. And what happened with Silicon Valley Bank, what they put their money into is all these debts and all these things, and the bank’s assets went bad
And that’s when the runs of the banks start. People want their savings back. – That’s correct. – And that’s what we’re in serious, serious trouble right now. And then when you talk about Orwellian, George Orwell wrote “1984” and what “1984” is “Big Brother is watching.” And the big concern with FedNow,
Or I mean, Fed Coin, you know, the Central Bank Digital Currency, CBDC, is that we lose our privacy. That they’ll track us, they’ll track every move ’cause they’ll know everything we’re spending money on, what we spend it on, who we give it to, and all this. So it becomes George Orwell’s “1984”,
“Big Brother” will watch you via our money. And that’s the problem with Central Bank, CBDC, Central Bank Digital Currency, or the Fed Coin. – Well that’s one of the many problems, Robert. – Yeah, but people like me panic. I said, “Oh my God, they’re gonna track me.
I don’t want them to know how I’m spending my money, it’s none of their business.” But now with, you know, blockchain and all this, they can track anything they want. So our privacy goes and that’s why when George Gammon says Orwellian, he’s talking about “1984”, “Big Brother’s gonna watch you.”
That’s where we’re heading. – Yeah, and it just goes back to that common phrase that we heard so much during 2020 and 2021, that people often in a crisis situation are willing to sacrifice their freedom, or the perception of safety and security. And so your were talking… – Wait, wait, hold on.
The perception of freedom and security. – That’s a very important word. – Yeah. Because as we’re talking today, people are finally waking up to what Gerald Celente says, the banksters, what bank is safe right now? And you have things like the FDIC, Federal Deposit Insurance Corporation,
That’s supposed to protect you up to $250,000. So if you have $250,000 of your savings, supposedly the FDIC will protect you. But what happened was Silicon Valley Bank, it was in the billions over here and that’s when Jerome Powell, the Fed, and the FDIC,
Got together and said, “We have to bail these guys out.” – Yeah. – And that’s called the moral hazard there. The moral hazard, that’s the end of capitalism. You know, how do you bail out the rich? And a lot of those rich guys are the Silicon Valley guys
That took down Trump in my opinion. I can’t prove that. But this whole thing is, the scientific term, is one big F-ing mess. (chuckles) – Yeah. And you can see that. Oh, go ahead. – The trust has gone out. – But that’s the opportunity for the central planners and the authoritarians, Robert.
– Right. – You see, you have this banking crisis. – But hang on. – Go ahead. – When George says central planners, he’s talking about Marxism. Central Bank and that’s what, you know, our Founding Fathers, that was Thomas Jefferson, he says you gotta stay away from that one
Because you know, if we go to a central bank, he says our children will wake up homeless. And look at homelessness today is going through the roof. Meaning this stuff has been going on since the 1700s. And it’s what George is talking about is now happening now.
And everybody can sort of see it. And that’s why the FDIC are panicking because if you have like $250,000, let’s say you have a million dollars, does that mean you only get $750,000 back if you lose everything? Or is the FDIC, the Federal Deposit Insurance Corporation, gonna bail out your million dollars too?
And that’s the uncertainty ’cause money is confidence and our confidence is gone today. – Yeah, very well said. And I’d like to point out that the FDIC, they don’t have that much in their coffers. Let’s say they’ve got, at the most, 200 billion, probably a lot less now with Silicon Valley Bank
And Signature. But let’s keep in mind for the viewers and listeners that there’s roughly $18 trillion in deposits in the United States. So that math doesn’t work when the FDIC only has 200 billion. – And George, can we step back to Jeff Snyder? He talks about the eurodollar. The eurodollar means European dollar,
It’s dollars outside of America, which are then creating more money outside of America. – Right. – There’s trillions of eurodollars as well as U.S. dollars. This thing’s a big mess. It’s like the big house of cards is set to come down. – Yeah, and again, that’s my concern
That the central planners, the Marxists, if you will, are going to leverage that crisis situation. You know, their motto is, “You never let a good crisis go to waste.” – Correct. – So if we continue to see problems in the banking system that exceed the FDIC’s ability to patch up the holes,
Then of course they come in on their white horse saying, “Well, we’ve got the solution. All you have to do is take your dollars from these unsafe commercial banks and just move them to the safest bank in the world, which is the Federal Reserve, which is the Central Bank.”
And people see that as that little bit, that perceived security and safety, they give up their freedom. But what they don’t realize is they’re doing a deal with the devil. – I went to military school, we don’t say it so politely. It says, “It’s time to bend over and pick up the soap.”
You know what I mean? (laughs) – Yeah. (laughs) – You don’t know where it’s gonna come from anymore. – Right, right. – Because the cash is trash right now. You know, “Rich Dad, Poor Dad” says “Savers are losers,” “The rich don’t work for money,” and all these things.
And we had this big three-day here in Scottsdale and we were talking about how the entrepreneurs like me, I stay out of paper, anything that’s printed. So, you know, took a company public, I own the paper. I mean the IPO produces the shares, but I own the shares.
I don’t wanna buy somebody else’s shares with somebody else’s company because that’s what, another term is called counterparty risk. You know, it’s in control of somebody else, not me. It kind of bugs me. So when George went up, George was at our three-day and he went into inverse yield curves,
A couple of minds shifted gears. “What the hell’s he talking about?” And George various simply says, “We’re into it right now. It’s not tomorrow. It’s not maybe, it’s right now.” Sara, do you remember that? What was George saying? – Well, I used the example of a tsunami. – Yeah.
– I think that paints a perfect mental picture for people because we know that a tsunami when it’s way out at sea, although you have this powerful force that’s coming at land, it’s 100, 200 miles per hour, you can’t see it. They could go right under a boat and they wouldn’t even know.
But what happens are there are these detection buoys that advanced countries have that are, you know, a hundred miles out off of shore, let’s just say. And that detection buoy can feel that force, it can sense that force coming towards the shore. And so then it sends a signal up to a satellite
And that satellite signals the scientists that are on the shore to go ahead and warn the general public. They don’t know exactly when it’s gonna hit. They don’t know where it’s gonna hit or how it’s gonna play out, but they just know this thing is headed at you
At a hundred miles per hour. That is basically what the yield curve does for us. – Okay, so what we’re saying ladies and gentlemen, it’s here. And you know, and George said at aptly at our three-day. He says, “The crack in the foundation is now showing.”
The crack is shown in how fake this whole system is. This whole monetary system that just creates money out of nothing. And when America started paying its bills just by creating money out of nothing, it’s gonna come back. And right now, and that’s what Andy Schectman
Is talking about, the BRICS nations; Brazil, Russia, India, China, South Africa, Saudi Arabia, Mexico, Japan, possibly New Zealand and Australia. The American Empire is going down and that means the dollar is possibly going down. So ladies and gentlemen, that’s why what George is saying
Is crucial and my job is to keep it as simple as possible. But the thing when George says Orwellian, they’re talking about “1984”. We’re here right now. So when we come back, we’re going more into what’s gonna happen now. We’ll be right back. – [Announcer] Robert already warned us, 2023 is going to be the year of lost wealth. After all, Goldman Sachs predicts you’ll see zero returns from stocks for the rest of 2023. And investors like you have already made a record number of emergency hardship withdrawals from the 401Ks.
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Now it’s your turn. Attend Robert’s free virtual wealth building event. Claim your free access now at richdadfree.com. Don’t wait, access is limited. Go to richdadfree.com. That’s richdadfree.com. – Welcome back. Robert Kiyosaka, “Rich Dad Radio Show.” The good news and bad news about money. And this looks like all bad news, but it’s good news if you know it’s coming. And something big is on its way. And lemme show you a really simple picture
With by now everybody’s heard of Silicon Valley Bank, SVB, FTX and all those other characters running around out there. – I just call it Stupid Valley Bank. That’s the easiest way to remember it. – I also call it foolish gold and foolish silver and all that other stuff and you know,
All these REITs, real estate investment trust. It’s just foolish to me. I won’t touch that stuff ’cause it’s all fake. It’s all fake. But anyway, this is kind of the… We’ll start off our problems here one more time. So you save money and you put it in the bank,
But your money is your asset but it becomes a bank’s liability. Just to remind you of that. And what happened was then the banks have to buy something, the banksters, they have to buy something to cover the interest they’re paying you here. And so they bought all these T-bills and this and that,
And all this crap, I thought. And then all of a sudden people realized the bank couldn’t cover it all and that’s when the savers start running back to the bank, “Give me my savings back.” And that was what the FDIC, Federal Deposit Insurance Corporation was for,
To make sure that they would give your money back. But these banks had created so many fake assets out here, they couldn’t cover it. And so that’s when Janet Yellen, who’s head of the Treasury, she used to be head of the Fed, and the Fed says, “We’ll guarantee all these loans.”
In other words, the Fed and the Federal Reserve Bank, which is not really a bank and the U.S. Treasury says, “We’ll back up anybody right now.” And that’s when George was at our three-day here in Scottsdale and he says, “The crack in the foundation
Has been seen and they’re trying to fill that crack up.” Anyway, it’s a really frightening time. But the average person is completely clueless ’cause they can’t see this. So that’s why George had showed the group on this on inverse yield curves, which blew my brain apart, but what’s going on.
And so a picture sometimes worth 10 million words. So George, show them this picture you showed us at the three-day in Scottsdale. – [George] Yes. And this is the tsunami warning system that we’re referring to. But probably more importantly if we switch that chart
Of the inverted yield curve and what we can see is the two-year treasury yield is higher than the 10-year. So just right off the bat, if I ask you, you know, “Robert, if you’re gonna lend someone money for 30 years, are you gonna charge them a higher or lower interest rate
Than if you lend them money for three weeks?” Well the answer’s gonna be a lot higher interest rate because there’s a lot more risk – For the longer term. – That’s right. So when we see the short-term interest rates higher than the long-term interest rates, let’s say it the economics…
– That’s a bad sign. That’s a bad sign. – That’s the tsunami, the economic tsunami warning signal saying, “Hey, something is really, really wrong and most likely we’re going to have a significant recession or depression in the near future.” Now, what does that mean? You know, how do you time this?
Well, what we’ve seen going all the way back to 1950… – Oh wait, wait George, it’s already hit. That was Silicon Valley Bank and Deutsche Bank and Credit Suisse, it’s already hit. – Yeah, this is just the first cracks that you see in the system, but the dam hasn’t yet broken.
And so that’s what the yield curve is telling us. So when the dam breaks, you know, how do we time that? How do we know when that’s gonna happen? Assuming that Silicon Valley Bank is just the first crack, well that’s… – What do they call it? The canary in the coal mine.
– The canary and the coal mine. You got it. It’s just this huge red flag. – Silicon Valley Bank. When Suisse went down, Deutsche Bank, and the Bank of Japan’s next. This is a global crash. – Yeah, you don’t know which bank is next, but there’s a lot of, the whole global economy
Is very vulnerable and this is what that yield curve is telling us. So what people really need to be cognizant of is when the two-year yield goes back down below the 10-year, because when the yield curve is no longer inverted, that’s when we usually get the recession or economic depression.
And so right now what the smart money is telling us through that curve is that we’re most likely going to have that after the summer or going into the fall of 2023 or the winter spring 2024. – Yeah. This is historically. So people say, “Oh good, the two-year went down
Below the 10-year,” and everybody thinks that’s good news, but that’s the re-inversion and all this stuff. But it’s not good news for the average person. – Yeah, that means that the tsunami is not a hundred miles away. That means that the tsunami is a hundred feet away.
– Right. And I, you know, I went to school to be a merchant seaman. So I traveled the oceans and these swells don’t bother the ship. You know, I went through several tsunamis and all this stuff at sea all the years I was out there.
It didn’t bother the ship, but when it hit land. So explain this buoy system and all that stuff ’cause that’s what I studied as a student years and years ago at the U.S. Merch Marine Academy in New York. – Yeah. Well, there’s direct parallels between how advanced countries know if a tsunami
Is going to hit their shores and the actual yield curve predicting a financial tsunami. And so they have these buoys like a hundred mile, I don’t know how far are they out, but let’s say they’re two, 300 miles offshore. These underwater buoys can feel or can sense that pressure, that swell, yeah,
That’s underneath the actual surface of the water. And they send a signal to satellites which send them to the scientists and the scientists can warn the people that are on the shore, “Hey, you need to get out a dodge.” So the financial economic version of that system is the yield curve.
So when the yield curve inverts, meaning the yield on the two-year’s higher than the 10-year, that’s the financial system warning us that, “Hey guys, there’s a big problem. And this financial tsunami is coming at the shore very, very quickly.” So it’s not there yet, but you’re gonna start seeing
The cracks such as Silicon Valley Bank, Signature, Credit Suisse. So now as prudent investors or just the average Joe and Jane trying to protect your financial security, you need to ask yourself, “Okay, what is the financial tsunami warning system telling me about what’s gonna happen over the rest of 2023?
What else is it telling me?” Or, “What other signals or warning red flags can I extract from it?” Well, the next thing that you need to look for is the curve no longer being inverted, which would mean the two-year treasury yield going back down below the 10-year.
Because if you go back to 1950, you see that nine times out of 10, that tsunami, that financial economic tsunami hits the shore after the curve is no longer inverted. So that’s what people really need to focus on now. – So lemme ask this question. When somebody says the Fed pivots,
Does that have anything to do with the inversions and all this other stuff? – Absolutely it does. Absolutely it does. – What does pivot mean? – So right now the Fed is in a tightening cycle. So they’re raising interest rates, right? That’s right. So the Fed pivot refers to when the Fed starts
Actually lowering rates. And so usually when you see the curve, we’ll call it uninvert, if that’s word, it’s a result of the Fed actually dropping rates and dropping rates very, very quickly. And so… – So people will celebrate, says, “Oh, the inflation’s over.” Everything’s, “Happy days are here again.”
Is that what you’re saying? – Exactly. You nailed it. And then the Fed’s gonna drop rates and they’re gonna say to themselves, “Oh this is fantastic. The Fed came in, they saved the day. They’re dropping rates back down to zero. We’ve got nothing to worry about.
You know, if we were gonna have a recession, now we’re not.” And then that’s when that wave is going to impact the shore. And for those people who aren’t prepared, you know, that’s when they’re gonna get financially destroyed. – So lemme just say this much, that chart you show with the buoy,
That’s NOAA, you know, National Oceanic, blah blah blah. But I’ve actually gone through two tsunamis, ’57 and 1960. I was growing up in Hilo, Hawaii and my science fair project was to build a model of the bay, Hilo Bay in Hawaii. And it showed exactly what happened when a wave hit
And the wave would hit the island of Hawaii and bounce along, bounce along, bounce along. But there was a natural harbor, the Hilo Harbor, which is why there was a town in Hilo. This big bay was there. And it was like this big funnel that took bloody tsunamis
And went straight up, bounced along the walls of the island and came straight into the bay. Destroyed the town. So I’ve had classmates wiped out, killed, disappeared, everything. And that’s what George is saying here is more than just financial. I’ve actually experienced a real thing.
’57 and 1960 when I was living in Hilo, Hawaii. But Hilo is like this big, “Hey come mess with me,” just wipes ’em out and then classmates disappear. So my poor dad was in charge of the reconstruction of Hilo and my rich dad was on the other side of my poor dad.
And there was this big fight after the 1960s tsunami hit because all the guys, all the capitalists wanted to rebuild the town. And my dad, poor dad says, “Do not build where the tsunami is going to hit.” So here was the best property in all of town.
My poor dad condemned it, my rich dad went nuts. And so that was the battle between Rich Dad and Poor Dad. So, you know, this is like personal to me ’cause I still remember as a Boy Scout we had to go down there and clean up the mess
And saw bodies being taken out and all this. And I didn’t see any of my classmates, but I had three classmates not make it. So this is what, what George is talking about, that NOAA, that buoy system. I know exactly what that thing does and like I said,
I went to the Merch Marine Academy in New York and at sea it doesn’t bother you, it’s just this big swell, but when it hits the shore it just destroys it. And so what George was saying at our three-day, it’s hitting us now. That was central.
The Silicon Valley Bank was the first casualty. And then Credit Suisse and Deutsche Bank and Nexus Bank of Japan. – Yeah. And again, there’s just so many incredible parallels that I think about as you tell that story. You know, I mean how many people that when this curve
Has been inverted for probably nine months, how many people in the mainstream media are saying, “Oh, don’t even worry about it, don’t focus on it. The unemployment rate is low. Oh the economy’s on fire, everything’s fine.” And it’s just like those people that are in Hilo
That aren’t paying attention to the warning system saying, “Oh, Robert, you’re just fear mongering. You’re sitting there talking about a tsunami that’s never gonna hit. We’re protected here.” Until the thing actually hits and they get wiped out. – Can I tell you something more silly about that? Before the wave hits Hilo,
It has to suck all the water out of the bay. – Yeah. Right. – And what happens then, Sara, all these fish are jumping around, because all the water’s gone. And all these yo-yos go running out to catch the fish (laughs) and then the wave hits them, tears everything apart, people die.
I mean I grew up with all this going, “Why would somebody go there? He can go to the store and buy some fish, but just free fish.” And that’s what George is saying. When the Fed pivots, everybody gonna say, “Oh, happy days are here again.” That’s like the fish.
And they’re gonna jump into the thing. – [Sara] It reminds me of the quote you say, “When the tide goes out, you can see who is swimming naked.” – Exactly. – Yeah. – [Sara] I feel like that’s what George’s warning us. Like don’t get caught naked.
– No, don’t go chasing the free fish. – Yeah, Robert hit the nail on the head. That’s another great, great analogy and parallel, is when you’re talking about that water going out and the people think that’s free fish, that’s the Fed dropping rates. Because when the Fed drops rates,
Most likely people are gonna be, “Oh great, that’s free fish. I’m gonna go buy stocks.” – Yeah, exactly. – I’m gonna buy all these risk assets and get rich and then that’s when the tsunami takes them out. – I’m gonna buy more real estate. ‘Cause the, you know, interest rates are down.
– Exactly. – And they’re gonna rush back in and the free fish is gonna kill ’em. (laughs) – Yeah, yeah, yeah. – So George, how would somebody prepare for all this right now? I mean, at the three-day we had here in Scottsdale, people were sitting there going, “Oh my God.”
Because George took a lot of time to explain all this. And even, you know, for me, I’m a real estate guy. I’m going, “Holy mackerel.” And then, you know, Kenny and I, McElroy, we use a hundred percent debt and we’re a hundred percent debt because, you know,
The dollar is debt, if you can understand that. It only exists ’cause it’s borrowed into existence. So what advice would you have for people right now? How do you prepare for this giant tsunami? I think it’s the biggest in the world because it’s global. It’s global. Do you know what I mean?
It’s going Credit Suisse, Deutsche Bank, Bank of Japan. Doesn’t get much bigger than that. And China’s having trouble too. So something is happening. – And to think we’ve only hit the tip of the iceberg. And the reason I’m saying we’ve only hit the tip of the iceberg because after all these entities
Were bailed out, the yield curve is still sending us the exact same message saying, “Hey, you know, you guys think the Feds solved the problem, but they didn’t even understand the problem.” So getting back to your original question though, I can just tell people what I’m doing
With my personal portfolio, and I’m not all in cash, but I have the biggest cash position that I’ve ever had and I make sure that I’ve got, you know, 10% gold, physical gold, with the cash position I’m currently in, in short term. That’s very, very key.
Short term treasuries, not in tenure, not in third year, just one month, you know, three month. Very short term treasuries because those are a liability of the government. They’re not a liability of a bank. And if you’re worried about the banking system, you know, that’s that counterparty risk that I’m trying to avoid.
So why am I, you know, then the objective though, Robert, is to have… – One second. Can we explain counterparty risk? It’s like if you have a brother-in-law who’s a flake and he’s always broke, And he wants to borrow a hundred thousand dollars and you lend him a hundred thousand dollars.
The counterparty risk is your brother-in-law who’s a fake and that the whole system is built upon, right? I mean, that’s what it is, George. – That’s right. – You don’t know who’s real and who’s fake out there, who’s strong. So I’d rather just hold it in my own hot little hands
Than lend it out right now. – Yeah, yeah. That’s a great point. And the key here for people to understand, and the good news, you know, we’ve talked about the bad news about money, but let’s talk about some good news about money, is that for those who are paying attention,
We have this warning system and it’s just like, you know, the people that are paying attention to the tsunami, they have a warning system and so they can just go ahead and take the advice, they can head for the hills. And then, you know, after it hits,
It can be in a good position to go back to the town and buy a lot of that oceanfront property, that real estate, at a very, very low price. – But don’t chase the fish. – Just don’t chase the fish. Make sure you’re up in the hills. That’s right.
So that’s what I’m doing with my portfolio. It’s not all in cash, but I have the largest cash position in T-bills and gold, and I’m just waiting for the Fed to start dropping rates. Not so I can buy, but I know that that’s really
When I need to get ready with my watch list because I’m going to try to do my best to take advantage of the opportunity that this crisis will present. And again, the good news is that the larger the crisis, the larger the opportunity.
– Correct. There’s one more thing I wanna say that was, you know, that Banda Aceh in Indonesia, Banda Aceh, the biggest tsunami hit out there. The thing that was funny was that the humans were running out to catch the fish and the animals in town were heading for the hills. (laughs)
– Mm. Yeah. – I thought, I study all this stuff, but I shouldn’t laugh, but the human comedy. And the reason I say that is what people do in the investment world, they wait for something to be expensive. “Oh, the price of gold is going up.”
Always wait a little bit, goes up and up and up. “Well, price of real estate is going up,” but they wait until the price is high and then they jump in. I hear that, “Should I jump in now?” I said, “No, you should have been jumped in a long time ago.”
– Yeah, they usually wait till the exact wrong time. At the worst time to buy. – You know, surfing all the time, they wait until the wave is breaking, then they take off and they get crushed. It happens all the time.
So I owned Bitcoin but I waited for it to get to 20,000, it went down to 1000, 3000 and I watched it and watched it. I wanted to make sure it was gonna hang around. So I picked up 60 Bitcoin at 6,000, but I want it to be low and the average person
Waits till it’s high. That’s the difference. That’s when I talk about the metaphor of the humans running down to the water to catch the free fish. Meanwhile, in Indonesia during the Banda Aceh tsunami, the animals were heading for the hills. – Yeah. I think that’s a great story. That says a lot.
– So right now I’d be heading for the hills. (laughs) I wouldn’t be heading for the free fish. – Exactly. And that’s what the bond market is telling you to do. – Exactly. Exactly. So George, you know, your podcast is “The Rebel Capitalist”. Are you gonna do any more shows
On this inverse yield curve story? – Oh yeah, yeah. I’m talking about it constantly on “The Rebel Capitalist” channel. The George Gammon channel. Yeah, I think in macro there isn’t an indicator that’s as powerful as the invert. I mean, not even close. Not even close.
It is by far the most powerful indicator in macroeconomics. So we’re definitely gonna be following it, watching it like a hawk. – Yeah. So please check in with George, George Gammon, G-A-M-M-O-N. It’s “The Rebel Capitalist”. And don’t be one of those persons jumping into the water looking for a free fish.
Be one of the stupid animals heading for the hills right now. – Well said, buddy. Very well said. – So thank you, George. Thank you. Thank you, thank you. Thanks for being at the three-day and coming in via Zoom. But it was fantastic and people are still talking about
What you were saying because it’s set the tone for what they do next. So thank you and we’ll be right back. – Thanks for having me on. – Thank you, man. – Welcome back with “Rich Dad Radio Show”, the good news and bad news about money. I wanna thank George Gammon. And we also, what do we do? This show has archives. So if you have friends, family members, or village idiots looking for free fish, you know, your cousins or something like that,
Have them listen to this show with George Gammon and you’ll figure out what’s going to happen next. ‘Cause we’re in it right now. That’s what the three-day in Scottsdale said. Holy mackerel, we’re here right now. Any comments there, Sara? – [Sara] One comment, I just wanna,
I wanna give a shout out to everybody that attended the three-day this week over the last three days. Amazing crowd, huge fans of “Rich Dad”, but also these are diehard students. – Yep. – [Sara] They were there to study and learn and we just appreciate them making the trip out
And hanging out with us for three days. As far as George goes, I love this analogy or this visual that he puts in your mind with these warning signals and the tide. And it really paints this picture that we’re headed for something catastrophic. – It’s here. And these cracks… – Silicon Valley.
Silicon Valley Bank was the first canary in the coal mine. – [Sara] Yeah. I like how he described that. Like the crack in these walls. And yeah, we’re starting to see the water seep through. And I think, I love that he discussed at the very end, not advice, because everybody’s situation’s different,
Everybody’s education level is different, but he gave you exactly what he’s doing. And I hope that our listeners take that information and study one step further. How can they apply what he’s doing or what can they do in their own personal lives now that these warning signals are sounding.
– Are here, it’s here now. Anyway, thank George Gammon. Thank y’all for listening to “The Rich Dad Radio Show”. – [Sara] Thank you.
