June 4, 2025 • 26 mins
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They’re calling it the "big beautiful bill"—but let’s be honest, it’s grotesque, shameful, and a $2.4 TRILLION disaster.
In this episode:
Apple Podcasts: https://podcasts.apple.com/us/podcast/watchdog-on-wall-street-with-chris-markowski/id570687608
Spotify: https://open.spotify.com/show/2PtgPvJvqc2gkpGIkNMR5i
WATCH and SUBSCRIBE on:
https://www.youtube.com/@WatchdogOnWallstreet/featured
They’re calling it the "big beautiful bill"—but let’s be honest, it’s grotesque, shameful, and a $2.4 TRILLION disaster.
In this episode:
- CBO numbers are in: The deficit explodes, gimmicks are gone, and we’re barreling toward $2.3 trillion in red ink
- Republicans who voted for this mess are now pretending they didn’t. Marjorie Taylor Greene? Scott Perry? Read the bill, folks
- Why the “strategy” is now to spin deficits as good for the economy—and why that’s total nonsense
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
The big grotesque shameful bill. That's that's what we got, kids,
A big grotesque, shameful bill. You know, I feel like
I feel like Bona Setta in Bona Setta in the
beginning of the First Godfather and he's sitting there and
he's explaining to the Godfather what happened to his daughter
(00:39):
and how there was no justice in the court. When
he's got that line, he said, you know those they
in the courtroom, they looked at and they smile at me,
and he realized, he said, for justice, for justice, I
must go to Don Corione. And for justice, who are
we going to go to? Who are we going to
go to as Americans? Not the Republican Party. That's for
(01:04):
darn shore. And again, I'm so disappointed, I can't even
it's depressing. Quite frankly, again, I don't want to be
Debbie Downer here on the program, but again, we deal
with reality here at the watchdog on Wall Street Show.
Musk came out blasted the bill all over social media.
Ran Paul blasted the bill all over social media. Ron
(01:29):
Johnson today was on CNBC. He sounded like me, one
of the points that I've been making for twenty five years,
a little under twenty five years. Again, when Bush first
came in, it wasn't that bad. Then it got out
of control. I talked about our fiscal situation as nation
as again, I explained it almost like the Jerry Springer
(01:51):
Show where we're on this freakazoid show where you get
these group of morons and jerk that ruin their kids
credit and lives by, you know, running up credit cards
in their kids' names. And Johnson basically saying the same
thing that I've been saying. They said, this is shameful
(02:12):
to our children. This is shameful what we're doing to
our grandchildren. And at some point in time it has
to stop. The funny, you know, the calculations that you
know what they're doing right now, you know, coming out
and ridiculing the Congressional Budget Office. Now, I know Congressional
(02:35):
Budget Office are off on their numbers all the time.
They just came out with their numbers today and it's
it's pretty ugly. It's pretty ugly what they're projecting. Let
me grab it off the printer. Why not. Here we go. Here,
the CBO finds the uh, big well, they call it
(02:58):
the big beautiful bill. I at the big grotesque, shameful bill,
raising the US deficit by two point four trillion dollars.
And it also all of the well eliminating all of
the various different tax credits, all the gimmicks are going
away later on. So you're gonna have a bit of
(03:19):
a fiscal drag with the next president that comes in
two point three. It's gonna go from one point seven
trillion to two point three trillion over ten years. Again
criticizing left, right and all over the place in regards
to the CBO. CBO is bad, their math is bad.
(03:40):
They're always wrong, you know, same nonsense out there, and
again they're not always right. They're predicting one point one
point eight percent growth, that's what they're saying, and the
Trump administration are saying, Ah, we're gonna kill it. Ah,
it's gonna be much much better than that. Oh, it's
gonna be huge. We're gonna have supergrowth out there, so
you know, I messed around a little bit. I hadn't
(04:03):
really played around much with the AI, and I did.
I was playing around with AI and putting in the big, grotesque,
shameful bill and the CBO projections, and I said, well,
what if we saw what if we saw over you know,
th about three percent a year? Which do you honestly
(04:25):
think that we're going to see three percent of year
growth over a ten year period of time. I'm sorry, Okay,
you can't. You can't predict things like that. I mean,
you know, you sound like some of these fools back
from the nineteen nineties with their you know, ridiculous dot
com companies or the disruptor companies from not too long ago,
(04:46):
with the ridiculous projections that I laugh at. No, would
you want to project something like that. You don't want to.
You want to air on the side of caution. You
want to be conservative, and your estimates. The math doesn't
add up. Okay, Math, Math is power. Math isn't a conspiracy.
(05:12):
And that's that's what they're trying to get across people
basically saying math is some sort of conspiracy. It's not.
This is a disaster. It really is, And you know,
it's funny right now. It's funny right now you're starting
to watch these spineless Republicans in the House of Representative.
(05:33):
They're they're kind of like scattering around like cockroaches, scattering
around like cockroaches, scraming. Oh, they're coming up with reason.
I would have Marjorie Taylor Green, I would have never
signed on to this bill if I saw this in it. Well, Marjorie,
maybe you should have read it. Yeah, maybe you should
have read the bill. I think she was upset about
(05:54):
there's a provision. I don't know why it's in a
spending bill in regards to artificial intelligence and who has
the final stay and say and taking away states rights.
Here you got Representative Scott Perry. So Elon Musk is
right to call out House leadership. I wish I had
a nickel for every time the Freedom Caucus sounded the
alarm and nobody listened, only to find out the hard
(06:15):
way that we were right all along. We expect massive
improvements from the Senate before it gets back to the House.
He's commenting on Elon Musk's statement, I'm sorry, I just
can't stand it anymore. The mess massive, outrageous, Portfield Congressional
spending bill is a disgusting abomination. Scott, you voted for
the bill. You just voted for it. Man, kind of
(06:44):
makes you want to pull your hair out again. They
don't know what to do right now. They thought they
had cover, They thought they meant they thought they know
they had to vote for this piece of garbage that
they were going to have cover. Now people are seeing it.
They're seeing it, and I love it that the scam
(07:06):
is out there again. They're not No, I'm not taking
responsibility for my vote. I'm blaming somebody else, blaming so oh,
I didn't see this. We were misled by this building.
And that's that's what you're hearing right now. I want
to talk about what this actually because it is a
(07:26):
big deal, Okay. I've been trying to get this across
for some time. For some time again, the folks over
at Epsilon Theory put together a really a great piece
in regards to the repercussions of our spending and the
wake up call that we've seen around the world. And
(07:48):
again I mentioned this last week. It's being anored. I mean,
we basically watched that, we've watched the dollar which was
basically a parody with the euro back in March. Okay,
we just got in to June. It was at parody,
parody right next to Paridy back in March. And this
(08:12):
is when Trump was saying, he was telling the entire
country we're going to have a balanced budget. We were
going to have a balanced budget. Now, what dropped fifteen percent? Anyway,
no one believes, no one believes that at this point
(08:34):
in time that this administration, this party, that they have
any desire at all to control the federal deficit. Okay, nobody. Yeah,
the things that they're coming up with right now to
try to justify this, it's it's nuts. And then you
watch the whole the Maga crew, the Maga crew on
(08:57):
social media and the posts that they're making. I mean,
it's it's so pathetic. The strategy, this is the strategy
going forward. These accelerating fiscal deficits that we're gonna have
are mold, We're gonna dire. Actually a good thing. Yeah,
(09:17):
this is what's not bad. It's actually actually this is good.
Going further into debt. Oh yeah, all this because this
government spending and the stimulus is, oh, it'll keep us
away from a recession. Ah yeah, and that then that
type of growth that we know what, we'll we'll keep uh,
we'll keep the deficit down. What is the phrase they're
(09:37):
using now, run it hot? Yeah, there's once once again.
You know this again the old Nancy Pelosi. We gotta
you know, you pass the bill and then you see
what's in it. Once we do that, oh Jesus, and
then guess what Now, then we're gonna get you know,
all all sorts of deregulation a nation, and and all
(10:01):
the recision bills are going to come at that point
in time, and we're going to grow our way out
of the deficit. Right. Sure, sure, this is really important people,
And it's a bit complicated. It's a bit complicated. And
again I've I've talked a lot about how debt and
(10:23):
deficits and government debt and how it's handled. Did a
lot of this during the European debt crisis and how
the banks work over there. Basically the entire world has
kind of come to grips I think with the fact
that the death our deficit. We can't control it. We
(10:48):
can't especially, you know, not not right now as far
as Trump is president. And it's not just the United States. Okay,
you've got Japan, You've got Italy, France, the UK, all
these all these nations have to continue to issue more
in more debt. Now, who wants to buy? Who wants
(11:12):
to buy? You ask who wants to raise your hand?
You want to you want to go out there. You
want to go out there. You want to lock your
money up. You want to loan money to the US
government for the next ten years at what four point
five percent with no four point five percent a year,
(11:34):
ten years with zero protection against inflation. Does that sound
like something you want to do? Huh? Is that something
you want to do? I didn't think so. Okay, I
didn't think so. Again, we discussed this last week on
the radio show, and on the show, we know basically
(11:56):
put it out there so you know, basically how you
have to handle your money, how we've handled people's money,
and the cookie cutter portfolios of sixty to forty nonsense,
because it was just that, you know, you're going to
lose money unless you're beating inflation. And I'm gonna tell
you something, four point five percent a year. It ain't
gonna cut the mustard, kids, It really isn't. So you
(12:20):
know again, who's who's going to buy this? Well, people
who are forced to buy it? What do you mean, Well, yeah,
you know, there's there's forced buyers of our debt. Think
pension funds, think insurance companies, you know tier one capital,
(12:41):
big banks out there, central banks, but also you know,
the too big to fail variety. They're going to be
forced to lock up a lot of this as well.
Oh man, you know it's that's gonna be the reality. Now,
that's gonna start growth because again, all the money that
(13:01):
they have to put in uh to these treasuries, they're
not lending out and they're not growing the economy with
by any stretch of the imagination. So you have to
get your arms around that. This is one of the
issues that takes place with European banks. European banks are
very it's vague again, it's like, yeah, forget about pulling
(13:23):
tea again to try to get money away from them. Again.
They have rules, they have rules where they're forced to
buy the sovereign debt of their home country. Now, again,
we had other buyers, you know, China, Japan, other places
buying our debt. But when they're in trouble too, why
(13:45):
are they going to buy or they're just gonna buy
their own, going to buy their own, and then they're
to be dealing with the currency risk that's involved. Again,
we've got a bit of a buyer's strike right now.
And again these are voluntary buyers. I don't see that
(14:08):
changing Again, would you why why would you lend the
United States government money at four point five percent for
ten years? They explained. Again, I got in trouble for
saying this on air one time. I was, you know,
talking about the United States and our debt situation, and
(14:31):
I described it as you know, we are the tallest
midget in the room, and you can't say that why anyway? Hunt?
Then Hunt describes this. He says, for decades now, US
sovereign debt has enjoyed the privilege of being the best
house in a bad neighborhood, so that if you want
(14:52):
a duration, for whatever reason in your portfolio, you preferred
long dated US treasuries to any other nation's sovereign debt,
all other things being equal, that narrative is no longer.
That's not the case anymore. But again, we're not there yet.
Everybody's kind of just watching what's happening, what's going to develop?
(15:18):
Watching the dollar, watching ten year interest rates again right now.
The modus operendi the current administration is to postpone that
you want to call it financial reckoning day to when
they're gone. What they're trying to do right now and again,
(15:40):
this is something that I alerted the country too back
in twenty ten. Back in twenty ten, I alerted the
country that the government has got to come up with
a way with a way to find buyers of debt
to get into trouble. Scott the scent right now, Scott
(16:01):
percent or you know, everybody's all happy, happy, joy joy.
Crypto and stable coins. Yeah, this is a direct quote
from Scott percent from what last week. Stable coins could
create two trillion dollars of demand for US treasuries MM
(16:22):
central bank digital currency stable coins being issued again. The
big banks, big banks as could be another business for them. Wow,
how about that? An essence, an essence, it's gonna do
(16:43):
what what? Hunts is going to basically do what whymar Germany?
But nobody will be you know, understand it, because it's
going to be through too big to fail rather than
the central Bank. I'm going to try to break this
down for you. The Weimar Republic of Germany. This is
(17:07):
the early nineteen twenties. The German government owed reparation payments
to the Allied countries France, Belgium, England, but also the
United States as well from losing World War One. They
owed interest payments to all of the rich German families
that borrowed money to fight World War One. The Allied
countries demanded to be paid in hard money, gold or
(17:31):
currency backed by gold, and they threatened to occupy the
industrial area region of Germany and it was a big
engine of economic growth for Germany if they weren't paid.
So the Weimart regime paid the Allies all the hard
money that it could collect from taxes or tariffs, and
the German Company government central bank they printed fiat money
(17:55):
back not by gold, by the whole faith and credit
of the German state. Again, the German state that just
lost a world war, and this payment went to Germans.
The value of the currency had already come down a lot. Obviously,
losing a war will do that. But you know, basically
(18:21):
the entire world kind of understood that Germany had a
fiscal deficit problem and things just got worse. Okay, currency
went down, then it went down further, and it kept going,
and it kept going, and it kept going anyway, had
(18:41):
hyper inflation Germany, basically destruction of German society. So the
United States stepped in nineteen twenty four and led a
massive injection of hard foreign capital into Germany and rewrote
the reparation payment scheduled so that there was at least
a narrative that Germany could grow its way out anyway.
(19:02):
Now it's this big beautiful bill, the same thing as
you know, the nineteen twenty one reparation payments. Now, no,
but it's it's a big deal because people saying that
the United States is not looking to really do much
of anything when it comes to this. It's basically a long,
(19:26):
steady meltdown of the value of the US doc dollar,
Inflation ticking up again, interest rates going up again, stagflation,
which in my opinion I think has been around for
twenty five years. They've just done a real, you know,
great way of hiding it again. Everybody thinks of stagflation,
(19:49):
they're thinking of the nineteen seventies. It's it's a different
flavor this time around. Again. This is unless things change,
another thing that could be an option rather than you know,
the stable coin route, Weimar route. And this is something
(20:10):
that I noticed back in twenty ten and I started
off this, this is what if foreign entities stopped buying
our debt? What would happen, What would happen if you know,
there was a massive buyer strike out there. And again
(20:36):
this this idea, this idea came up. It was called
guaranteed government retirement accounts. This they had an opportunity. This
is where they were coming up with this because after
you know, we had the market crash two thousand and eight,
two thousand and nine, you know, the government was licking
their chops saying, oh, you know what, the market's not safe,
(20:57):
not good. We need to come up with another way.
And basically this plan, this plan would came from. Again
is this lady by the name of Teresa Gerald Ducci
is basically a socialist, basically a socialist professor out there,
and she hates four one case and her thing is
(21:17):
is we don't have traditional pensions anymore. And what she
wants is she wanted all workers in the United States
to have who do not have a traditional pension. Fan
would be mandated by law. I'm not making this up.
Mandated by law to contribute two point five percent of
their income to a government account with a two point
five percent employer match. Uncle Sam would then guarantee a
(21:41):
three percent return above inflation. Again. Social Security already a
Ponzi scheme as we know it. You want to have
a Social Security part two? Again, This this, this thing
you know, came into you know, a play. They actually
(22:07):
worked on this. Okay, this the Treasury Department put forth
a bill. Department of Labor, Employee Benefits Security Administation, Department
of Treasury, Internal Revenue Service, The Department of Labor and
the Department of Treasury were viewing the rules under ARISA,
the Employee Retirement Income Security Act, and the Plan Qualifications
(22:31):
Rules to determine whether, and if so, how agencies could
or should enhanced by regulation or otherwise the retirement security
participants in employer sponsored retirement plans and an individual Retirement
Arrangements i RAS by facilitating access to and use of
(22:51):
lifetime income or other arrangements designed to provide a lifetime
stream of income after retirement. Don't believe me, look it up.
It's in the works now. It will start out again.
Think think again. I talk about the you know, the
frog and boiling water. It'll start out as an option,
(23:13):
it will. It will start out it will be all
about investing in the United States. It will be sold
to you with pictures of babies and the Statue of Liberty.
But the reality is all it's about is funding deficit spending.
I don't believe that Uncle Sam has anywhere near the
(23:33):
clout to get this through right now. I didn't believe
it at that time, but I do believe that at
some point in time they'll present it as a choice. Yeah, choices,
choices have in America have funny ways of turning into mandates,
(23:55):
not just the United States, anywhere, And I think the
Treasury Department is most certainly preparing that. Hey, you know what,
what if we're not able to sell our debt in
the open market like we used to, they're basically forcing
people to, you know, buy government debt again. You get
(24:18):
your your arms around this. I could do it very easily.
It could change the aristo rules. Could say, hey, listen,
you know we're going to take over four one case.
We don't like this system. It's been unfair, you know what,
We're going to establish these accounts. Listen. Obama tried it,
Remember he had that little Myra my Ira thing that
he tried to pull off. All you know, all they
(24:42):
need is a crisis. All they need is a major
market sell off, a major market sell off, a crash,
which that could be engineered very easily. You know what
Ram and Manuel sell do. You know, never let a
crisis go to waste, crash, bang boom, all of a sudden. Yeah,
you know, I don't trust the stock market. This is
a much better way. The government's going to protect my money.
(25:03):
They're going to take care of me, right right, sure,
sure they are. This is why it matters. This is
why it matters. This is the reason why I've been
doing my show for twenty five years and trying to
articulate this to everyone out there. Again, it's unfortunate, Like Bonasaire,
(25:28):
We've got no one to go to for justice. We've
got no one in the Republican Party is week, you know,
outside of a few that are actually standing up to
this nonsense. You know, we just don't have the right people.
Quite frankly, you know, it's it's they'll be fine though,
Like I said, they're wealthy. You know, it's funny. They
(25:50):
got a lot of these stock trackers, right, now tracking
congressional buys and certain stock purchases, and you see how
they're hitting home runs all over the place because they
know what's going on behind the scene. And we just
sit there and we take it and they get richer
because again it's you have to do Okay, Well, that's
important is you have to you have to grow your assets. Okay,
(26:12):
you have to. You cannot sit in cash and you
got again, you have to be beating inflation because inflation,
my friends, is gonna get much much worse. Again it
they'll they'll tell you otherwise, they'll tell you otherwise. Oh
you no, inflations come way down. Looks much better. Sure, sure, yeah,
I'm sure it is. Again, you pay your bills, you're
not stupid. Then wake up out there, wake up watch
(26:38):
dog on Wall Street dot com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
The big grotesque shameful bill. That's that's what we got, kids,
A big grotesque, shameful bill. You know, I feel like
I feel like Bona Setta in Bona Setta in the
beginning of the First Godfather and he's sitting there and
he's explaining to the Godfather what happened to his daughter
(00:39):
and how there was no justice in the court. When
he's got that line, he said, you know those they
in the courtroom, they looked at and they smile at me,
and he realized, he said, for justice, for justice, I
must go to Don Corione. And for justice, who are
we going to go to? Who are we going to
go to as Americans? Not the Republican Party. That's for
(01:04):
darn shore. And again, I'm so disappointed, I can't even
it's depressing. Quite frankly, again, I don't want to be
Debbie Downer here on the program, but again, we deal
with reality here at the watchdog on Wall Street Show.
Musk came out blasted the bill all over social media.
Ran Paul blasted the bill all over social media. Ron
(01:29):
Johnson today was on CNBC. He sounded like me, one
of the points that I've been making for twenty five years,
a little under twenty five years. Again, when Bush first
came in, it wasn't that bad. Then it got out
of control. I talked about our fiscal situation as nation
as again, I explained it almost like the Jerry Springer
(01:51):
Show where we're on this freakazoid show where you get
these group of morons and jerk that ruin their kids
credit and lives by, you know, running up credit cards
in their kids' names. And Johnson basically saying the same
thing that I've been saying. They said, this is shameful
(02:12):
to our children. This is shameful what we're doing to
our grandchildren. And at some point in time it has
to stop. The funny, you know, the calculations that you
know what they're doing right now, you know, coming out
and ridiculing the Congressional Budget Office. Now, I know Congressional
(02:35):
Budget Office are off on their numbers all the time.
They just came out with their numbers today and it's
it's pretty ugly. It's pretty ugly what they're projecting. Let
me grab it off the printer. Why not. Here we go. Here,
the CBO finds the uh, big well, they call it
(02:58):
the big beautiful bill. I at the big grotesque, shameful bill,
raising the US deficit by two point four trillion dollars.
And it also all of the well eliminating all of
the various different tax credits, all the gimmicks are going
away later on. So you're gonna have a bit of
(03:19):
a fiscal drag with the next president that comes in
two point three. It's gonna go from one point seven
trillion to two point three trillion over ten years. Again
criticizing left, right and all over the place in regards
to the CBO. CBO is bad, their math is bad.
(03:40):
They're always wrong, you know, same nonsense out there, and
again they're not always right. They're predicting one point one
point eight percent growth, that's what they're saying, and the
Trump administration are saying, Ah, we're gonna kill it. Ah,
it's gonna be much much better than that. Oh, it's
gonna be huge. We're gonna have supergrowth out there, so
you know, I messed around a little bit. I hadn't
(04:03):
really played around much with the AI, and I did.
I was playing around with AI and putting in the big, grotesque,
shameful bill and the CBO projections, and I said, well,
what if we saw what if we saw over you know,
th about three percent a year? Which do you honestly
(04:25):
think that we're going to see three percent of year
growth over a ten year period of time. I'm sorry, Okay,
you can't. You can't predict things like that. I mean,
you know, you sound like some of these fools back
from the nineteen nineties with their you know, ridiculous dot
com companies or the disruptor companies from not too long ago,
(04:46):
with the ridiculous projections that I laugh at. No, would
you want to project something like that. You don't want to.
You want to air on the side of caution. You
want to be conservative, and your estimates. The math doesn't
add up. Okay, Math, Math is power. Math isn't a conspiracy.
(05:12):
And that's that's what they're trying to get across people
basically saying math is some sort of conspiracy. It's not.
This is a disaster. It really is, And you know,
it's funny right now. It's funny right now you're starting
to watch these spineless Republicans in the House of Representative.
(05:33):
They're they're kind of like scattering around like cockroaches, scattering
around like cockroaches, scraming. Oh, they're coming up with reason.
I would have Marjorie Taylor Green, I would have never
signed on to this bill if I saw this in it. Well, Marjorie,
maybe you should have read it. Yeah, maybe you should
have read the bill. I think she was upset about
(05:54):
there's a provision. I don't know why it's in a
spending bill in regards to artificial intelligence and who has
the final stay and say and taking away states rights.
Here you got Representative Scott Perry. So Elon Musk is
right to call out House leadership. I wish I had
a nickel for every time the Freedom Caucus sounded the
alarm and nobody listened, only to find out the hard
(06:15):
way that we were right all along. We expect massive
improvements from the Senate before it gets back to the House.
He's commenting on Elon Musk's statement, I'm sorry, I just
can't stand it anymore. The mess massive, outrageous, Portfield Congressional
spending bill is a disgusting abomination. Scott, you voted for
the bill. You just voted for it. Man, kind of
(06:44):
makes you want to pull your hair out again. They
don't know what to do right now. They thought they
had cover, They thought they meant they thought they know
they had to vote for this piece of garbage that
they were going to have cover. Now people are seeing it.
They're seeing it, and I love it that the scam
(07:06):
is out there again. They're not No, I'm not taking
responsibility for my vote. I'm blaming somebody else, blaming so oh,
I didn't see this. We were misled by this building.
And that's that's what you're hearing right now. I want
to talk about what this actually because it is a
(07:26):
big deal, Okay. I've been trying to get this across
for some time. For some time again, the folks over
at Epsilon Theory put together a really a great piece
in regards to the repercussions of our spending and the
wake up call that we've seen around the world. And
(07:48):
again I mentioned this last week. It's being anored. I mean,
we basically watched that, we've watched the dollar which was
basically a parody with the euro back in March. Okay,
we just got in to June. It was at parody,
parody right next to Paridy back in March. And this
(08:12):
is when Trump was saying, he was telling the entire
country we're going to have a balanced budget. We were
going to have a balanced budget. Now, what dropped fifteen percent? Anyway,
no one believes, no one believes that at this point
(08:34):
in time that this administration, this party, that they have
any desire at all to control the federal deficit. Okay, nobody. Yeah,
the things that they're coming up with right now to
try to justify this, it's it's nuts. And then you
watch the whole the Maga crew, the Maga crew on
(08:57):
social media and the posts that they're making. I mean,
it's it's so pathetic. The strategy, this is the strategy
going forward. These accelerating fiscal deficits that we're gonna have
are mold, We're gonna dire. Actually a good thing. Yeah,
(09:17):
this is what's not bad. It's actually actually this is good.
Going further into debt. Oh yeah, all this because this
government spending and the stimulus is, oh, it'll keep us
away from a recession. Ah yeah, and that then that
type of growth that we know what, we'll we'll keep uh,
we'll keep the deficit down. What is the phrase they're
(09:37):
using now, run it hot? Yeah, there's once once again.
You know this again the old Nancy Pelosi. We gotta
you know, you pass the bill and then you see
what's in it. Once we do that, oh Jesus, and
then guess what Now, then we're gonna get you know,
all all sorts of deregulation a nation, and and all
(10:01):
the recision bills are going to come at that point
in time, and we're going to grow our way out
of the deficit. Right. Sure, sure, this is really important people,
And it's a bit complicated. It's a bit complicated. And
again I've I've talked a lot about how debt and
(10:23):
deficits and government debt and how it's handled. Did a
lot of this during the European debt crisis and how
the banks work over there. Basically the entire world has
kind of come to grips I think with the fact
that the death our deficit. We can't control it. We
(10:48):
can't especially, you know, not not right now as far
as Trump is president. And it's not just the United States. Okay,
you've got Japan, You've got Italy, France, the UK, all
these all these nations have to continue to issue more
in more debt. Now, who wants to buy? Who wants
(11:12):
to buy? You ask who wants to raise your hand?
You want to you want to go out there. You
want to go out there. You want to lock your
money up. You want to loan money to the US
government for the next ten years at what four point
five percent with no four point five percent a year,
(11:34):
ten years with zero protection against inflation. Does that sound
like something you want to do? Huh? Is that something
you want to do? I didn't think so. Okay, I
didn't think so. Again, we discussed this last week on
the radio show, and on the show, we know basically
(11:56):
put it out there so you know, basically how you
have to handle your money, how we've handled people's money,
and the cookie cutter portfolios of sixty to forty nonsense,
because it was just that, you know, you're going to
lose money unless you're beating inflation. And I'm gonna tell
you something, four point five percent a year. It ain't
gonna cut the mustard, kids, It really isn't. So you
(12:20):
know again, who's who's going to buy this? Well, people
who are forced to buy it? What do you mean, Well, yeah,
you know, there's there's forced buyers of our debt. Think
pension funds, think insurance companies, you know tier one capital,
(12:41):
big banks out there, central banks, but also you know,
the too big to fail variety. They're going to be
forced to lock up a lot of this as well.
Oh man, you know it's that's gonna be the reality. Now,
that's gonna start growth because again, all the money that
(13:01):
they have to put in uh to these treasuries, they're
not lending out and they're not growing the economy with
by any stretch of the imagination. So you have to
get your arms around that. This is one of the
issues that takes place with European banks. European banks are
very it's vague again, it's like, yeah, forget about pulling
(13:23):
tea again to try to get money away from them. Again.
They have rules, they have rules where they're forced to
buy the sovereign debt of their home country. Now, again,
we had other buyers, you know, China, Japan, other places
buying our debt. But when they're in trouble too, why
(13:45):
are they going to buy or they're just gonna buy
their own, going to buy their own, and then they're
to be dealing with the currency risk that's involved. Again,
we've got a bit of a buyer's strike right now.
And again these are voluntary buyers. I don't see that
(14:08):
changing Again, would you why why would you lend the
United States government money at four point five percent for
ten years? They explained. Again, I got in trouble for
saying this on air one time. I was, you know,
talking about the United States and our debt situation, and
(14:31):
I described it as you know, we are the tallest
midget in the room, and you can't say that why anyway? Hunt?
Then Hunt describes this. He says, for decades now, US
sovereign debt has enjoyed the privilege of being the best
house in a bad neighborhood, so that if you want
(14:52):
a duration, for whatever reason in your portfolio, you preferred
long dated US treasuries to any other nation's sovereign debt,
all other things being equal, that narrative is no longer.
That's not the case anymore. But again, we're not there yet.
Everybody's kind of just watching what's happening, what's going to develop?
(15:18):
Watching the dollar, watching ten year interest rates again right now.
The modus operendi the current administration is to postpone that
you want to call it financial reckoning day to when
they're gone. What they're trying to do right now and again,
(15:40):
this is something that I alerted the country too back
in twenty ten. Back in twenty ten, I alerted the
country that the government has got to come up with
a way with a way to find buyers of debt
to get into trouble. Scott the scent right now, Scott
(16:01):
percent or you know, everybody's all happy, happy, joy joy.
Crypto and stable coins. Yeah, this is a direct quote
from Scott percent from what last week. Stable coins could
create two trillion dollars of demand for US treasuries MM
(16:22):
central bank digital currency stable coins being issued again. The
big banks, big banks as could be another business for them. Wow,
how about that? An essence, an essence, it's gonna do
(16:43):
what what? Hunts is going to basically do what whymar Germany?
But nobody will be you know, understand it, because it's
going to be through too big to fail rather than
the central Bank. I'm going to try to break this
down for you. The Weimar Republic of Germany. This is
(17:07):
the early nineteen twenties. The German government owed reparation payments
to the Allied countries France, Belgium, England, but also the
United States as well from losing World War One. They
owed interest payments to all of the rich German families
that borrowed money to fight World War One. The Allied
countries demanded to be paid in hard money, gold or
(17:31):
currency backed by gold, and they threatened to occupy the
industrial area region of Germany and it was a big
engine of economic growth for Germany if they weren't paid.
So the Weimart regime paid the Allies all the hard
money that it could collect from taxes or tariffs, and
the German Company government central bank they printed fiat money
(17:55):
back not by gold, by the whole faith and credit
of the German state. Again, the German state that just
lost a world war, and this payment went to Germans.
The value of the currency had already come down a lot. Obviously,
losing a war will do that. But you know, basically
(18:21):
the entire world kind of understood that Germany had a
fiscal deficit problem and things just got worse. Okay, currency
went down, then it went down further, and it kept going,
and it kept going, and it kept going anyway, had
(18:41):
hyper inflation Germany, basically destruction of German society. So the
United States stepped in nineteen twenty four and led a
massive injection of hard foreign capital into Germany and rewrote
the reparation payment scheduled so that there was at least
a narrative that Germany could grow its way out anyway.
(19:02):
Now it's this big beautiful bill, the same thing as
you know, the nineteen twenty one reparation payments. Now, no,
but it's it's a big deal because people saying that
the United States is not looking to really do much
of anything when it comes to this. It's basically a long,
(19:26):
steady meltdown of the value of the US doc dollar,
Inflation ticking up again, interest rates going up again, stagflation,
which in my opinion I think has been around for
twenty five years. They've just done a real, you know,
great way of hiding it again. Everybody thinks of stagflation,
(19:49):
they're thinking of the nineteen seventies. It's it's a different
flavor this time around. Again. This is unless things change,
another thing that could be an option rather than you know,
the stable coin route, Weimar route. And this is something
(20:10):
that I noticed back in twenty ten and I started
off this, this is what if foreign entities stopped buying
our debt? What would happen, What would happen if you know,
there was a massive buyer strike out there. And again
(20:36):
this this idea, this idea came up. It was called
guaranteed government retirement accounts. This they had an opportunity. This
is where they were coming up with this because after
you know, we had the market crash two thousand and eight,
two thousand and nine, you know, the government was licking
their chops saying, oh, you know what, the market's not safe,
(20:57):
not good. We need to come up with another way.
And basically this plan, this plan would came from. Again
is this lady by the name of Teresa Gerald Ducci
is basically a socialist, basically a socialist professor out there,
and she hates four one case and her thing is
(21:17):
is we don't have traditional pensions anymore. And what she
wants is she wanted all workers in the United States
to have who do not have a traditional pension. Fan
would be mandated by law. I'm not making this up.
Mandated by law to contribute two point five percent of
their income to a government account with a two point
five percent employer match. Uncle Sam would then guarantee a
(21:41):
three percent return above inflation. Again. Social Security already a
Ponzi scheme as we know it. You want to have
a Social Security part two? Again, This this, this thing
you know, came into you know, a play. They actually
(22:07):
worked on this. Okay, this the Treasury Department put forth
a bill. Department of Labor, Employee Benefits Security Administation, Department
of Treasury, Internal Revenue Service, The Department of Labor and
the Department of Treasury were viewing the rules under ARISA,
the Employee Retirement Income Security Act, and the Plan Qualifications
(22:31):
Rules to determine whether, and if so, how agencies could
or should enhanced by regulation or otherwise the retirement security
participants in employer sponsored retirement plans and an individual Retirement
Arrangements i RAS by facilitating access to and use of
(22:51):
lifetime income or other arrangements designed to provide a lifetime
stream of income after retirement. Don't believe me, look it up.
It's in the works now. It will start out again.
Think think again. I talk about the you know, the
frog and boiling water. It'll start out as an option,
(23:13):
it will. It will start out it will be all
about investing in the United States. It will be sold
to you with pictures of babies and the Statue of Liberty.
But the reality is all it's about is funding deficit spending.
I don't believe that Uncle Sam has anywhere near the
(23:33):
clout to get this through right now. I didn't believe
it at that time, but I do believe that at
some point in time they'll present it as a choice. Yeah, choices,
choices have in America have funny ways of turning into mandates,
(23:55):
not just the United States, anywhere, And I think the
Treasury Department is most certainly preparing that. Hey, you know what,
what if we're not able to sell our debt in
the open market like we used to, they're basically forcing
people to, you know, buy government debt again. You get
(24:18):
your your arms around this. I could do it very easily.
It could change the aristo rules. Could say, hey, listen,
you know we're going to take over four one case.
We don't like this system. It's been unfair, you know what,
We're going to establish these accounts. Listen. Obama tried it,
Remember he had that little Myra my Ira thing that
he tried to pull off. All you know, all they
(24:42):
need is a crisis. All they need is a major
market sell off, a major market sell off, a crash,
which that could be engineered very easily. You know what
Ram and Manuel sell do. You know, never let a
crisis go to waste, crash, bang boom, all of a sudden. Yeah,
you know, I don't trust the stock market. This is
a much better way. The government's going to protect my money.
(25:03):
They're going to take care of me, right right, sure,
sure they are. This is why it matters. This is
why it matters. This is the reason why I've been
doing my show for twenty five years and trying to
articulate this to everyone out there. Again, it's unfortunate, Like Bonasaire,
(25:28):
We've got no one to go to for justice. We've
got no one in the Republican Party is week, you know,
outside of a few that are actually standing up to
this nonsense. You know, we just don't have the right people.
Quite frankly, you know, it's it's they'll be fine though,
Like I said, they're wealthy. You know, it's funny. They
(25:50):
got a lot of these stock trackers, right, now tracking
congressional buys and certain stock purchases, and you see how
they're hitting home runs all over the place because they
know what's going on behind the scene. And we just
sit there and we take it and they get richer
because again it's you have to do Okay, Well, that's
important is you have to you have to grow your assets. Okay,
(26:12):
you have to. You cannot sit in cash and you
got again, you have to be beating inflation because inflation,
my friends, is gonna get much much worse. Again it
they'll they'll tell you otherwise, they'll tell you otherwise. Oh
you no, inflations come way down. Looks much better. Sure, sure, yeah,
I'm sure it is. Again, you pay your bills, you're
not stupid. Then wake up out there, wake up watch
(26:38):
dog on Wall Street dot com
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