Skip to content The Financial “Detox” Passive Investors Need to Prepare for in 2025 Mar 26 · 45 min ...more
The Financial “Detox” Passive Investors Need to Prepare for in 2025
March 26, 2026 · 45 min
Dive into the concept of financial resets and the fiat currency system we live in.
Series Russell Gray Everywhere March 26, 2026 · 45 min · Russell Gray Everywhere
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Fundamentals of Money, Currency, and Credit 0:00 There. Very quickly before you get started, if you have any questions or comments after watching this, please email me at feedback at russell gray dot com. Now enjoy the show.0:10 Today, we're diving into the future of fiat currency and the global financial reset with insights every passive investor should hear. From gold to crypto, inflation to dedollarization,0:22 the financial world is shifting fast and investors need to understand what's coming. If the US dollar is replaced or reset, what happens to your investments? And how can LPs prepare for a possible new monetary0:33 era? Welcome to Passive Pockets, the passive real estate investing show brought to you by Equity Trust. I'm0:45 your host, Jim Pfeiffer. And today, I'm pleased to be joined by Russell Gray, the Main Street Capitalist and founder of Raising Capitalist Foundation. He's gonna talk about fiat currency, financial0:57 resets, and how LPs can prepare and navigate for what's coming. Let's get to it. Russ, welcome, and and thank you for coming back on the show. We really appreciate you.1:06 No. I'm happy to be here, and congratulations on your new affiliation with BiggerPockets. That's exciting.1:11 Yes. Thank you very much. So the reason I had you on the show today besides just you know, I really enjoy the conversations that we have is I was in the crowd at the best ever conference last month, when you were1:23 presenting, and you talked a little bit. We didn't dig you didn't dig too deep into it, but fiat currency and and a financial reset and and how you see that happening. So I wanna focus today on just1:35 that 1 topic and really dive into it, you know, as plain as we can make it. You're great at at making things understandable. Let's just dive in. What is a financial reset, and and what is the fiat currency system that1:47 we're in?1:47 The first thing to just understand is what capital is, what money is, what currency is, and what credit is. And I think a lot of people conflate currency and money. And so I'm1:59 gonna start at the top, which is a capital. And capital is the creation of goods and services. When you actually go grow something, harvest something, mine something, build something, provide some service, you have2:10 created something of real value. It doesn't matter what you denominated in. When you take the value of that and store it in some, vehicle so that you can use that2:22 value later. For example, if if we were both in the sandwich making business and I made a sandwich for you, but you said, well, I really don't wanna eat that sandwich today, then you might wanna store the sandwich in a2:32 refrigerator and it would preserve the value of that sandwich until you were ready to eat it. That's a job of money. So money takes the product, in this case, a sandwich, and and converts it into something that will hold2:44 its value until the person who's holding it is ready to consume a new sandwich, if you will. For many thousands of years in human2:56 history, gold was the vehicle used as money. And JP Morgan, not the bank, but the man famously said, gold is money. Everything else is credit. And he did that in a testimony before Congress.3:08 And so the next thing is currency. And currency, we think of as Federal Reserve notes or fiat currency. These are these pieces of paper. Well, when they were first introduced, they3:20 were claims on money. So if you go back and not too long ago, you could find dollar bills that look just like a regular dollar bill that we see today. But instead of saying federal reserve note,3:32 which is, you know, a note is an IOU, it said silver certificate. And it was redeemable to bearer on demand for 1 dollar of silver. And we have3:44 everybody's talking about April second coming up, because Trump is supposed to announce his tariffs. But April second is also I think it was 17 92, the anniversary of the coinage act, and that's when the US dollar was3:56 established. And the US dollar was a specific amount of silver, and then, of course, gold was, another specific amount. Maybe it was 20 dollars was an amount of gold.4:07 And so the dollar wasn't, it was it was like a gallon. In other words, it was a unit of measure. So if you could take, say a gallon of milk, and we all just got we're4:19 all dairy farmers, and we live in a community, and so our medium of exchange is milk. It's a crappy medium exchange, right, or or money because it goes bad. But let's just say you've got this magic milk that never goes4:30 bad. And so you're you're running around with this gallon, and you say, well, how how much for you to give me a new suit? And you go, that'll that'll be 5 gallons. And so I bring you 5 gallons of milk. And somebody else4:42 says, well, I wanna have a steak dinner. What's that? Well, that's gonna be a half a gallon. Well, somebody else says, well, I I wanna buy a new car. That's gonna be 20 gallons. And so you just get used to denominating4:51 your exchange in this currency of gallons. But we all know that it represents a gallon of milk. Well, what happens after a while is nobody ever opens the gallons. If somebody hands5:03 you a gallon, now it's empty. They hand you the container, but it's empty. It doesn't have any milk in it. And you're you accept it because you've you've never bothered to use it. You just always pass these things5:13 around. Well, that's what happened. Our pieces of paper that used to represent or contain a certain amount of gold or silver quit containing that certain amount of gold and silver. And we started just5:25 denominating or calling money dollars. But dollars was only a unit of measure. So that was the shift. So you got capital, which is a creation of goods and services. You5:37 have money which is something real that holds the value of that production over time until someone is ready to use it. Then you have currency which is a medium of exchange. It used to be5:49 currency and money were 1 in the same, but we separated them. And the way I explain that is if I had a 19 64 quarter in 1 hand and a 19 65 quarter in the other hand,6:01 in 19 65 both would buy a gallon of gasoline. But today, only 1 will. And if you ask a young person which 1 and why, they don't know. Do you know?6:12 I do, but it's because you gave this example in the last podcast, and I absolutely love this example, and I wanted you to give it. So I'm so glad you brought it up. Continue. I this this is just this really crystallizes6:22 a lot for me. You know, it's like the toga example when they say, ounce of gold in the olden days would would buy a toga, and and it and it will buy a suit today. Right? So it's similar analogy.6:31 Yeah. So the 19 64 quarter contains silver, which is real money. So as the dollar has lost its purchasing power, it takes more dollars to buy the same amount of silver. So6:43 that 19 64 quarter is worth about 3 or 4 dollars today, which will still buy a gallon of gas. But the 19 65 quarter is a zinc plated copper coin, which is only worth about6:55 6 cents in terms of metal, and so its face value or the 25 cents that is the denomination is worth more. And that would only buy maybe 1 twentieth of a gallon of gas depending on where you're buying gasoline. Right?7:07 And so when you separate the money from the currency, it's a problem. So if you were to say go back in time to 19 65 and take a roll of quarters, which is 40 quarters or 10 dollars, and stick it in your sock door and you7:19 pull it out 50 years later, 60 years later, it would still buy 40 gallons of gas. But if you took a 10 dollar bill, a 10 dollar federal reserve note, and you went to buy, you could buy maybe 3 or7:31 4 gallons of gas. So you've lost all that purchasing power. So capital is a creation of goods and services. It's the gasoline. It's the sandwich. It's the gallon of milk.7:42 Money is something that preserves the value of that capital until you're ready to use it. Currency is what you actually exchange in. And then credit is a derivative of currency and everything in our7:54 system today is credit. It's all credit. And so that's why the dollar bill says federal reserve note. A note is an IOU. Problem is you have to ask yourself, what do they owe you? Well, you can't redeem8:06 it. They they don't owe you anything. It's just it's it's a it's a note that you can never cash in. It's like it's like if I just wrote you a piece of paper and said, you know, this is good for whatever, but it isn't8:17 good for anything because you can never redeem8:19 it. Explain credit then. So, you know, when when I go and make a charge on my credit card, right, I'm effectively creating more money or currency. Can you talk about what credit is and and how that8:30 effectively is is created?8:32 I don't wanna pretend to be an expert in kind of the technical inner workings of the the banking system. My buddy George Gammon is much better at it than I am. The way I look at it is credit is8:44 taking future purchasing power and bringing it into the present. And so when you look at the things that affect prices, everybody always talks about inflation, which is more currency being printed than8:56 goods and services being presented. So a simple way to explain that would be if, we had 1 bottle of water and 10 people. And so everybody has, say 10 19:08 dollar bills, and you're dying of thirst. And so if you were to start bidding at a dollar, pretty soon somebody's gonna bid up to 10 dollars to get that 1 and only bottle of water. And the person who's gonna9:20 get it is the person who bids up to 10 dollars the fastest. So now if you just simply add a hundred, everybody has a hundred 1 dollar bills and you start the bidding at a dollar. Where's the bid gonna end? A hundred9:31 dollars. Right? And the first person who gets here is gonna get it. That's called hyperinflation. You added more currency without more goods and services. Now in that same environment, if you were to produce more and you9:43 had 10 water bottles and you had 10 potential consumers and you started the bidding at a dollar, the price is only gonna be a dollar because the first person would put down a dollar, nobody would bid. And if they9:55 bid at a dollar, they would have another another bottle and everybody would get filled at a dollar. So even though you have excess currency, you don't have inflation. Does that make sense? So that but but when you add10:05 credit, now I have the ability to go into the future and pull purchasing power in from the future to bid on the present. And this is why when you add financing to make something affordable,10:17 it becomes more expensive. So if you want a college education before when you had to pay cash, it cost you 10000 dollars a year. As soon as they made it affordable by adding financing, it costs a hundred thousand dollars10:28 a year. You used to be buy a house for 10 or 20000 dollars. Then they added 30 year financing, and you could pull 30 years of future earnings into the present. You bid the thing up to 3 or 400000 dollars. Right? Same10:39 thing with cars. Same thing with anything. So credit is the ability to pull earnings from the future into the present. And what you're doing is kicking the can down the road. Anybody's ever gone into debt knows that. It10:51 feels good in the moment because you're able to spend the future today and enjoy it today. But down the road, you have less purchasing power because the repayment and the interest on that debt gets kicked down the road.11:02 Well, now here we are in the United States of America. We took over in Bretton Woods and became the world's reserve currency in 19 45, I believe it was. Right after we won World War 2. We had 2011:14 tons of gold. We had a, positive balance sheet. We're the world's largest creditor. We had the biggest manufacturing base and especially a huge competitive edge cause the rest of the world had been completely devastated11:25 by the war and we weren't. And so we were, you know, the big dog and we took over the world. Well, we quickly started printing more dollars than we had gold because the world could redeem their dollars11:38 for gold from 19 45 at Bretton Woods all the way up until 19 71 when Nixon broke the gold standard. And if you look at all the charts, that's when all the inflation started. Because once11:49 the currency was decoupled from money, You could print as much currency as you wanted. You could create as much credit as you wanted. The whole system became debt, and at12:01 some point, going back to what I was saying, you're using the future to pay for the present. If you wait long enough, the future becomes now, and there's nothing left. And that's what I call12:13 the event horizon like in a black hole. Right? When you cross over and, you know, that's a downward spiral. And when you have nearly a trillion dollars a year going out on the interest on the national debt,12:25 and you're already running a deficit, now you're borrowing to pay debt service. That's how a syndicator becomes a Ponzi operator. That's how countries go completely broke. And when you spend a dollar and12:37 you get less than a dollar in GDP gain, you become unsustainable. And so that's we're we're there. And so we have to fix it. We have to fix it fast.12:45 In episode 1 160 from March of 2024, Rush, you were on, and you gave a great history from Bretton Woods all the way to the present. So for listeners that wanna hear the full,12:57 it's a fantastic episode. I encourage you to go back to that 1. But what I wanna talk about for the rest of the time we have is where we going from here. Right? We're we're in this system, and you've explained it13:09 fantastically how the inflation happens and the difference between money and currency. And it seems like that was separated in the seventies, right, when we went off the gold standard where before that money and currency13:19 were pretty much the same thing, and now they're definitely not. So where do we go from from here? What's gonna happen? And, you know, I know that global and government monetary systems, they13:31 undergo major changes every long period of time. Right? Whatever that is. But when you're in the middle of it, when you're our age and pretty much, you know, we've always been on the same, fiat, you know, where13:42 money and currency are are separated, we can't imagine anything else. Right? It seems like it'd be this huge thing if something changed. So where do you see this going?13:52 Yeah. The world went full fiat, in 19 71 when the world's reserve currency, the US dollar, broke from gold. And so for anybody who wasn't an adult in 19 71 andThe Coming Financial Reset and Global Shifts 14:04 aware, it's the only environment you've ever known. But if you look at it historically, it's this giant anomaly. The question is is how do we get out of this? And there's all kinds of efforts being made to do it.14:16 Internationally, the first attempt to get away from the dollar was the euro, but they just went Fiat, and so it didn't really work. And so the next attempt has been this alliance of14:27 the BRICS, Brazil, Russia, India, China, South Africa, and all of the companies that piled on. And this movement really began in earnest after the GFC, great financial crisis in 2008. That's when I really14:39 started studying it in-depth. And it's because China, who was holding at the time 2000000000000 dollars in US treasuries saw how much a dollars we were printing. The Fed took its balance sheet from 80000000000014:51 to 4 and a half trillion. And they came over here and said, hey, you know, you're gonna dilute the value of all these dollars that you owe us. And, you need to be a better steward of this currency.15:03 So the United States is, yeah, whatever. And so, China got together with Russia, and they started signing these bilateral trade agreements where they would begin to trade with each other and not use the dollar. And then15:15 they continued over the last 15 years to grow that alliance. As you may recall, right after Donald Trump got elected, before he was even, inaugurated, he cautioned to the bricks. He says,15:26 listen. If you guys try to upend the US dollar as a world's reserve currency, I will slap 100 percent tariffs on you and lock you completely out of this wonderful US economy. And people say, well, the15:38 bricks thing wasn't really a threat. Well, then why did Donald Trump defend it so vigorously? He he said that on 2 separate occasions. Part of what they the the suspicion for people like me that pay attention felt like15:50 what the BRICS people were doing is you need to if you're gonna issue a currency and they were gonna create a currency that they would share like a euro, but it was gonna be backed partially by gold and partially by16:01 maybe other commodities, but certainly by these large economies, much much much bigger than than you the euro and even bigger than the United States. To me, it was always been a real threat. And I think, you know, had16:12 Donald Trump not been elected, I think it maybe would have been a bigger threat. So you have that. At the kind of the the the main street level, if you will, you have this introduction of Bitcoin. Bitcoin is16:24 an attempt to decentralize away from fiat currencies and go into something that cannot be printed into oblivion. If you believe, what everybody says about Bitcoin that it's limited to only16:35 21000000 coins ever, and nobody can print it. Nobody can manipulate it. It is completely independent. It's a decentralized currency as opposed to something printed by a central16:47 bank or a central bank digital currency. It's a currency that cannot be controlled, which would be very deflationary, by the way, which is really what sound16:59 money would do. And so that's gotten some traction. And now you've got an administration here and others around the world that are talking about forming strategic Bitcoin reserves. So I don't know. Will17:11 we go in that direction? I don't know. Then you've got, people like Judy Shelton that Trump originally nominated to be on the Federal Reserve Board in Trump 1. She may circle back in17:23 Trump 2. I think there's a wrestling match going on right now, between Jerome Powell and Donald Trump, who's gonna be the more dominant economic force. And I think right now, Trump is winning. It used to be, you17:34 know, you're a financial guy. You read the news. And every day of the Fed this and the Fed that and the Fed this and the Fed that. And then Jerome Powell comes out and says I'm lowering interest rates and interest rates17:43 go up. Everybody's like, well, I don't understand. Well, the Federal Reserve is like a 1 trick pony, and it's monetary policy. But the Biden administration really was aggressively using fiscal policy and17:55 spending, spending, spending, spending to try to stimulate the economy. And now as Elon Musk has dug in, we've seen a lot of that and a lot of that economic strength and employment strength that was purported18:07 to be in the Biden administration was largely the product of a lot of printed money. A lot of money kind of flowing through the system. Trump is coming in. He's doing something very different. And so for the first 6 or 718:18 weeks of the Trump administration, 10 year treasury rates were actually going down, but they were going up prior. And so it wasn't the Fed. It was the fiscal policy of the administration. And if you18:30 really look at it, the administration, the government, Federal Reserve is not the government. It's a private cartel of banks. But the the government, actually has more control over what goes on. They control spending.18:41 They control trade policy. They control foreign policy. So they they have a lot more control over what goes on. And so what you're seeing is a attempt by the18:53 Trump administration to grab control of the economic lovers from the Fed and not allow the Fed to inflate. And we'll see. I mean, inflation is gonna be the thing. If Trump falls in the19:05 pit, it's gonna be because he loses control of inflation. If he loses control of inflation, the wave he rode into office, the mandate he thinks he has, his ability to get anything done will disappear,19:17 at the midterms. That's what I talked about at best ever is, like, what's going on right now, and how is he going to try to thread this needle in? And, it's been a fascinating study. I just did a presentation on last19:27 night. I'm gonna speak on it again tomorrow morning.19:30 That's where we are now. You know, it's it's impossible, I guess, to know where we're going. But, you know, it seems like, you know, the the US, everyone has to use the the dollar or is the the dollar19:42 is the focus. So how does that change in the future? And, you know, I know the bricks are trying to everyone's trying to move away from the dollar. How do they do that? And how do we defend it? And what what does that19:53 look like? Or are people gonna go back to gold? Are they gonna really go to to Bitcoin? Is that a legitimate long term store of value? I'm just not sure. And I know this isn't a question you can answer, but I guess we're20:03 speculating here. Right? Like, what does the future hold if it's not the dollar?20:07 Well, the easy answer, which would be a horrible answer, would be the Federal Reserve begins to issue a central bank digital currency, and then they have complete control in a closed system. It would be horrible for20:19 freedom. It would be horrible for privacy.20:22 Can you talk about why? Because I I some people think central bank digital currency. Well, everything's digital now anyway, so it wouldn't be any different. But that's not what we're talking about.20:31 No. You you wouldn't have pieces of paper. You wouldn't have the ability to pay cash. Everything would be monitored. Everything would be tracked. They would literally have the ability to choke you off. You remember the20:40 old movie Total Recall, the first 1 with, Arnold Schwarzenegger?20:44 Yeah.20:45 Yeah. And so on Mars, the guy that controlled the oxygen controlled everybody. If he didn't like what you did, he would shut your oxygen off. Well, that's what the kind of power the central bank digital currency would20:54 give whoever controlled it. They'd have the ability to literally choke you off because it would be impossible, to do business, to purchase anything that you need. Cash. I mean, you I guess you could go to barter, but21:04 that would be it. Right? It'd be very, very difficult. So but that's the easiest thing to do. And and so I think there, I I believe Trump said it wouldn't happen. I sat on a panel with Daniel DiMartino Booth21:16 who knows Jerome Powell. She goes, so as long as he's in that seat, it's not gonna happen. I asked her, what happens when he's not in that seat? She goes, that's a good point. So, you know, it's something that everybody21:25 who cares about freedom and privacy and autonomy needs to pay attention to. The challenge in getting off the dollar that everybody faces, and if you ever listen to Brent Johnson who talks about the milkshake theory,21:37 you have to understand what gives the dollar its value. First is legal tender laws. If you pull out a greenback from your your wallet and look at it, it says this notice legal tender for all debts public and private.21:47 Number 1, if you have to pay taxes, you have to pay them in dollars, which means you have to buy dollars. So, you know, if you do your saving in gold, if you do your saving in silver, if you do your savings in Canadian21:58 currency or euros or whatever, at some point when you wanna pay your taxes, you're gonna have to buy dollars. That creates demand. If there is dollar denominated debt out there, if you have mortgages or you borrowed22:10 money from the banking system in any way, shape, or form, whether it's here domestically or around the world, you've gotta pay back in dollars. And so at some point, you're gonna have to bid on those dollars. And22:22 then, of course, if you wanna buy anything in the United States, whatever we manufacture, whatever we export, that creates demand for dollars. That's why when a country produces a lot and exports a lot, it22:34 makes their currency strong because people have to buy their currency in order to buy their products. Right? So that's what happens. Part of what Donald Trump is working to do is repatriate a lot of22:45 manufacturing, reduce our trade deficit, and bring it up to where we become a net exporter of energy, and we start exporting food and mining and all kinds of things that he's done just in the last 3022:57 days. And so if that happens, it'll make the dollar, actually stronger. And so I think as investors, we just have to think about, you know, kind of, like, what that means. We we we think about the dollar constantly23:08 falling, which means real estate and debt on real estate is always a good bet. When you have a strong dollar, a dollar that gets stronger over time, that's more challenging because the dollars that you earn become23:19 harder. It's gonna be harder on the rest of the world than it will be on us because now it becomes very expensive to buy a dollar. So the rest of the world would prefer us to have a weaker dollar, and then they just23:29 wanna have a weaker dollar. It becomes Jim Jim Shrickert writes about I got a book behind me, but if you haven't read it, Currency Wars, and he talks about beggar thy neighbor, and that is where it's a race to the23:38 bottom. Everybody is trying to lower their currency so that they have a advantage in trade. It makes their goods and services cheaper. So the currency thing matters. So so we're not I don't think anybody's23:50 saying that we're gonna replace the dollar in the near term. Although Although, I just read an article today that talked I think the CBO just came out and said we could have a default on treasuries, within the next23:59 several months by September. I I don't think that's gonna happen, but, you know, they they say those things. I just say what I'm saying is you can't have 36 or 38000000000000 dollars of debt, a trillion dollars a year of24:11 interest service. You can't have this baby boomer demographic with Medicare and Social Security and that big and all these people leaving the workforce. You can't have that if you don't have a productive economy. And we24:22 have financialized our economy. It's 1 of the points that I was making when I was at best ever. And when you have a financialized economy, the challenge is it works as long as somebody out there is producing goods and24:33 services. And the way I explain it to people is sandwiches. I think I talked about sandwiches earlier, but, you know, if we had a little economy where there's 30 people and they're all making sandwiches, and you make24:42 roast beef, and I make tuna, and somebody else makes, you know, grilled cheese or whatever, And, you know, you get up every day and or I get up every day and I'm eating tuna and I get tired of eating tuna. I need to find24:52 somebody that makes roast beef, but I don't know how to find you. So 1 of the 30 people goes, well, I I I can make a market. So tell you what, I'm gonna stop making sandwiches, and I'll just I'll be in the business of25:02 printing coupons that are claims on these sandwiches, and I'll run around and and be the person who makes these markets, and I'll help the guy who has grilled cheese find the guy who has roast beef. Well, that all works25:13 because you've got 29 people out of 30 that are eating sandwiches. You get 29 of them making sandwiches. But after a while, the 29 people look at the 1 guy who's not making sandwiches anymore because, you know, that25:23 looks like more fun than making all these sandwiches every day. So I wanna get in the coupon business. And so pretty soon now you got 10 people in the coupon business and only 20 making sandwiches. We'd have to be a25:33 rocket scientist to figure out when you get more coupons chasing sandwiches and less sandwiches being made, you're gonna have more expensive sandwiches. And at some point, if everybody keeps leaving the productive side25:44 of the economy, the sandwich making business and gets into the financial side of economy, the coupon on sandwich business claims on sandwiches, pretty soon there's not enough goods and services and too many claims on25:54 wealth. Wall Street is about trading claims on wealth. Main Street is about doing real work, and we need to get back to where we produce real goods and services in this country so we26:06 have abundance. It'll put downward pressure on prices. It'll make our currency more valuable. It'll make our people richer, but it's gonna be a shift. And and I think the bigger concern that I would have for26:18 Main Street right now isn't that we're gonna come off the the dollar standard. I think if you have some gold, if you have some silver, maybe if you have some Bitcoin, you're gonna be hedged against that if something like26:29 that were to happen. I think the bigger concern is how the economy is going to change and how the, interest rates and how how the the market will work as we transition from being a financialized26:41 economy, very dependent upon government spending, to a privatized economy that's productive. Anytime you make a shift, I I would say overall, it's gonna be a good shift. It's gonna be a good26:52 thing. But any transition when you change the rules of the game for people, everybody playing the game is only ever known it 1 way from financial planners to policy makers to bankers to investors to27:04 entrepreneurs. We only know how to play the game 1 way. But JD Vance just came out and gave a speech. He goes, look, we're trying to unravel 40 years of failed economic policy that27:16 globalized or financialized this economy, and we're dependent upon other countries to make essential things that we need. We're gonna change that. And to make that transition, we're gonna27:28 go through some pain. Scott Pesent, the treasury secretary came out and goes, we're gonna go through some detox. We're very addicted to cheap money being spent by the government. We're gonna privatize this economy. We're27:39 gonna go through a detox period. And I just think Main Street needs to be prepared for that, and I hope be patient and work through it. Because I think on the back end, it's actually gonna be very, very good. But27:50 nobody's had the courage to take us through that transition. And right now, we're trying to get through it, not just get through it, but get through it in 2 years. Because if history is, past as prologue, typically, a28:01 sitting administration loses the house at the halfway point. Now I think Trump is gonna go for a super majority, but history says he's already beaten history once by getting reelected. So he might beat history,28:13 but I think I think the reason you see so much aggression from the Trump administration is he knows he's got 2 years to ride this red wave and the thin margin he has in the house and senate to get his agenda in. And he's28:24 pushing as hard as humanly possible to do it. And when you are that aggressive, it is going to be chaotic, and it is gonna be, I think people are gonna get kinda caught up and not reckon28:36 what's the old saying Helen Keller said, a bend in the road isn't the end of the road unless you fail to make the turn.28:42 That's right.28:42 I think there's gonna be some shifting going on and people like, I don't understand this. It's never happened like this before.28:48 So what do, you know, investors so you you said a lot of things there that, you know, we're we're perking up in investors' ears. 1 is, you know, debt when the dollar is strengthening, you you know, debt becomes, I don't29:00 know, problematic or, you know, because a lot of a lot of people are like, you want debt, you want leverage because in an inflationary environment, when you have debt and you pay it back 10 years from now, it's less.29:11 Right? You're you're basically inflating away your debt. So, you know, the government also has a ton of debt, so they are also incentivized to inflate away that debt as a way to pay it down.29:21 Well, that's 1 way to pay it down, but not the only way to pay it down, and that's not the methodology. That's always been the methodology. I don't think that's a game plan going forward, and that's 1 of those shifts I'm29:31 talking about.29:32 How would we pay down the debt in this big shift?29:35 There's couple things that have already been floated. Obviously, if you have a bunch of debt on your balance sheet and you don't have the ability to print money out of thin air or inflate your debt away, how would you do29:46 it?29:46 I guess I would sell assets and get rid of the debt that way. Right? Pay it pay it down.29:51 Yeah. You'd sell assets. You'd, try to increase your productivity and you earn more money so that the debt became a smaller percentage of your earning power. Okay. So we've already seen the Trump administration come in30:01 and go through the government and say, okay. We're gonna get rid of all wasteful spending that's going on. Second thing is we're gonna look at these idle assets like these office buildings, and we're gonna dump them. The30:11 other thing is we're gonna try to create new products that we can sell. Oh, hey. We got a great country. We can sell, passports for 5000000 dollars each. And if we sell, I don't know what he said, a million of them or30:21 something, whatever the number was. He goes, if we do this, we can pay off the debt with that. Listen to the things that he's saying and watch what he's doing. If we repatriate a lot of manufacturing, and I chronicled, I30:31 think yesterday in the presentation I did, something like 2 plus trillion dollars of investment that's been committed to the United States just in the last 60 days. And so if you get a bunch of foreign investment coming30:42 in, and then that creates additional profits and productivity here in the United States, that's money that gets put into our infrastructure. Get, you know, with Taiwan Semiconductor, for example, is gonna put a hundred30:54 billion dollars into Arizona. Well, that's coming from Taiwan, but it's going into Arizona. So you're you're going to see a lot of things that are common sense if you're a business person that politicians31:06 haven't done in 40 years. That's what's happening. And so I think those you're gonna continue to see that now. Is the Bitcoin strategic reserve a play on that? Might be. You know, if he if he's sitting on, I think,31:16 200000 Bitcoins that they have confiscated, and then if they were, say, for example, to revalue gold, which is something they've talked about doing, and then use the proceeds from that revaluation, to purchase Bitcoin.31:28 And then with the idea that the rest of the world would get on the Bitcoin train, then as the rest of the world follows United States lead, it's kind of a pump and dump. Right? Then they can sell those31:40 coins and pay off the debt. So I I think all of these things are in play. You know, to me, it's you just gotta pay attention to it and try to figure out where the shifts are gonna be, where the disruptions are31:52 gonna be. Every 1 of those is gonna create a problem and an opportunity because both are always present in the same circumstance. So it isn't a matter of things being good or bad. It's whether you're good or bad and32:03 understand what's happening. And so I think that that is where and the macro pictures, what I spend my time doing is is trying to educate people just I can't give them an answer. I don't know what the answer is. I'm just32:14 saying watch these things and let's talk about it. Maybe collectively, we can we can figure it out, but it's very, very new.32:20 I'm always looking for answers, and it's hard to find them. And this next question is not answerable. I understand that. But, you know, maybe we can inch in in the right direction here. What you know, as as a passive32:30 investor, especially in syndications, you know, what strategy should we look at and and adopt or what should we thinking about doing with our money during this it's just an uncertain time. Like, I keep saying it thatShow more In this video 0:00 Fundamentals of Money, Currency, and Credit13:54 The Coming Financial Reset and Global Shifts32:32 Strategies for Passive Investors in 2025
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