Jason Hartman continues a two-part interview with Lynette Zang as they look at the economy. Lynette explains how we should protect ourselves. She recommends gold and discusses why it is considered one of the three central pillars of dynastic wealth. Later, they discuss GDP stats and inflation.

Announcer 0:02
Welcome to the creating wealth show with Jason Hartman. You’re about to learn a new slant on investing some exciting techniques and fresh new approaches to the world’s most historically proven asset class that will enable you to create more wealth and freedom than you ever thought possible. Jason is a genuine self made multimillionaire who’s actually been there and done it. He’s a successful investor, lender, developer and entrepreneur who’s owned properties in 11 states had hundreds of tenants and been involved in thousands of real estate transactions. This program will help you follow in Jason’s footsteps on the road to your financial independence day. You really can do it on now. here’s your host, Jason Hartman with the complete solution for real estate investors.

Jason Hartman 0:53
Welcome to Episode 1560 to 1562. And greetings from beautiful Tampa St. Pete. Yes, I am on the other side of the state this week at a conference and learning just a lot of stuff. There’s a lot of real estate investors hear, wow, a lot of optimism in the market. I’m I’m so surprised. You know, one thought that kind of occurred to me today is that the new GDP figures came out. And they are awful. They’re terrible, terrible, terrible, terrible. But guess what? So GDP is just, it’s ugly. It’s bad. I mean, we’re looking at the GDP stats from the worst quarter, the worst pandemic timeframe of them all. It only gets better than this, because it could hardly get worse, right? When the the whole world was shut down, locked down, quarantined, it’s bad. It’s not pretty. But I kind of thought to myself, well, compared to what, and I thought, if real estate is doing so incredibly well, at a time, when you had a massively negative GDP. I’m talking like 31% it’s bad, bad, bad. I’m not sure it’s ever ever ever been that bad. In fact, I am sure I take that back. Because it was a record. That was a record of badness. It was awful. It was catastrophic. I mean, the worst report ever the worst quarter since they’ve been counting. Amazing double, yet at the same time, the housing market is absolutely boom, me booming, booming, booming. So what does that tell us? Well, if the housing market can be booming, to the extent it is, where inventory is the lowest it’s been in 14 years, where bidding wars are breaking out all over the country. Just like Joe Biden campaign rallies, I mean, riots, I mean, Joe Biden campaign rallies, I mean, riots, I mean, oh, same thing. Boy, did you see the debate last night? That was terrible, terrible, terrible on both sides. This is not even political. That debate was awful. I mean, it was just, frankly, pathetic. I mean, wow. Wow. I thought it was gonna be really good. I thought there were gonna be some zingers. I thought Trump was gonna wipe the floor with Joe Biden. Because, hey, Biden, you know, listen, this is not a political statement. I mean, the guys just asleep. Now, last night, you know, they had them pumped up on caffeine and Adderall and whatever else they got him taking? Because Did you see his dilated eyes that his eyes just look odd last night? And also the funny thing I noticed too, other than the conspiracy theories, maybe they’re not conspiracy theories, maybe they’re just reality theories is that he was wearing a wire and you know, he wouldn’t agree to have any drug testing the Trump campaign want to do drug testing. They wanted to do check to make sure there was no little one of those tiny little earpieces in his ear where people were coaching him. You know, Cyrano de Bergerac style. Yeah, that’s the ridiculous world in which we live. Right. But the other funny thing that made me think he was, you know, using some pharmaceuticals, is that his mouth just look strange. It had an odd kind of like, shape the facial muscles. It was it was weird. Now listen, Trump, the orange man. You know, with the comb over. He looks weird to I’ll be the first to say it. Okay. You know, Trump. I mean, Trump is Trump. You know, he he keeps offends everybody. That’s what he does. That’s what he does for a living. And as I’ve said before, the disclaimer is, it may be a brilliant strategy to dominate the news cycle. We’ve explored that in the past. I’m not sure if it’s brilliant, or if he’s, I don’t know, you know, I don’t know. But you know, the funny thing is, a lot of people on the left, they look at, they look at Trump and say, Well, he’s such a jerk. He’s so mean, he’s, he’s just a mean guy. And, you know, think about this. Think about the people in World War Two, that you know, or World War One, but let’s just use World War Two that fought for our freedom, the freedom we enjoy today. And I’m not just talking about in the US, I’m talking about in any, any country that was against the axis of evil, right, you know, those against the Nazis, the Hitler Nazis, and the Japanese imperialist, right, anybody who fought against them? Do you think all those troops and all those generals are like, necessarily nice people? You know, sometimes, you need a person who’s a jerk, that’s not likable to go and fight for the overall right thing? You know, just consider that as a possibility. I don’t know. It’s, this is just a crazy time we’re living in folks. I mean, wow, what a joke. those debates last night were terrible. But I have to say, I got to give Trump credit for one zinger that I you know, I’ve, I’ve done more in, in 47 months than you’ve done in 47 years. That was pretty good. And you know, it was true. I mean, listen, if you think I’m being partisan, or if I’m wrong, then just go to Jason hartman.com. Slash ask or, you know, just contact us through any one of the places you contact us. And leave a note and just outline for me, what Joe Biden has actually accomplished in the last 47 years in public office. Where’s the cricket noises? Not much. I mean, not much middle class, Joe, right, who’s now rich Joe. And by the way, in the newsletter, our email newsletter this week, you’re really gonna love this whole article on and this chart we have on Trump’s taxes, because the New York Times has painted that as some big expos a like, it’s some ridiculous thing. Trump simply was using the tax law, the way it was written. He’s doing loss, carry forwards and on on income property. And you know, he’s the first real estate president we’ve had, right, at least in modern times. He was just taking his depreciation, passive losses, and carrying them forward, you can do that, folks, you can do that there is nothing wrong with food. It’s the law. And so he’s, you know, taking his tax benefits. I mean, so what I take them, you should take them, everybody should take them, because we’re doing the behavior, the IRS, and frankly, Congress who passed the laws, the behaviors they want us to engage in, they want us to provide housing to people and that’s what Trump does love them hate him. I don’t care. It’s the laws, the law, it applies equally to everybody. And Trump, like any smart businessperson used it, so that his, his taxes are, I mean, they’re great. Like, that’s exactly what everybody should be doing. And if you’re not doing it, if you paid too much in taxes, well, that just means you need to buy some income properties and provides more housing to people. Hello, that’s what you’re supposed to do, do what the IRS wants you to do. And also speaking of our email newsletter, make sure you’re on the list because these keep getting better every week. I’m doing it myself, and I’m really enjoying it. So the quote the quote, I love this quote, it’s Denis waitley. He was on episode number 150. You’re going to get this in your email box in our email newsletter. I just want to share it with you today because it’s such a good quote. It’s so good. Are you ready? winners? Think constantly in terms of I can, I will and I am losers, on the other hand, concentrate their waking thoughts on what they should have or would have done or what they can’t do. So, yeah, that’s that’s such a good quote. Because the first step towards success in any endeavor in life is believing in oneself, believing that you are capable, that you are deserving, and that is the first step to success and not agonizing over past mistakes. Its forward momentum forward momentum. Winners think constantly in terms of If I can, I will, and I am. Losers, on the other hand, concentrate their waking thoughts on what they should have, or would have done, or what they cannot do. Dr. Denis waitley, Episode Number 150, and played on some of the flashback Friday episodes over the years. So check that one out. It’s really good stuff. And yeah, there’s a good little piece here about the taxes and comparing the different presidents and how much they paid in taxes and, and Clintons didn’t pay too much. Obama paid a lot. He didn’t know how to play the game, right? You know, Trump paid very little. So you know, all I can say is good for Trump. That’s what he should have done. And that’s what he didn’t do. And that’s what’s being incentivized. Remember, the greatest management principle in the world, what gets rewarded gets repeated. So you reward people for providing housing, rental housing, and going into business, because the tax code favors business people. And listen, when you’re a real estate investor, you have a business, in terms of the way the tax laws Look at you, even if you don’t feel like you’re running a business. And hopefully you don’t, because running a business is a lot of work. But you know, the way the tax code looks at you, if you just have a couple of rental properties, you have a real estate, investing business, and you are entitled to a whole bunch of new tax benefits that we have profiled over the last 1500 and some odd episodes. So there you go. Yeah, real estate booming with negative GDP. Imagine would it be in hyperspace, if we had positive GDP. And by the way, I was looking at some population statistics yesterday, wowza, wowza, wowza, you get a mortgage today, you got three decades to pay it off, or really, your tenants have three decades to pay it because we don’t pay our own debts. we outsource them to tenants, lovely, wonderful tenants pay our debts for us. And yesterday, I gave a speech here at this conference, answering the one question on so many people’s minds. And by the way, I think I’m gonna, I’m gonna put this all into a webinar for you, because there’s some depth to it. And everybody just, you know, listen, I’m not bragging here. Don’t confuse me with trumpster being braggadocious. I’m just telling you what everybody said after my speech, they loved it. They loved it, they loved it. They couldn’t say enough good things about my speech. Because they thought, you know, I never looked at it that way before. People came up to me afterwards and say, Jason, you know, that was really interesting. You’re looking at this a different way that I’m used to hearing in the in the mainstream media. And I raised the question and answered the question, are we in a bubble? Is this a real estate bubble? And my thesis, and my evidence was pretty interesting and pretty compelling. And you know what, I’m gonna put this together, I’m going to do it on a webinar, because it was just, it was just so you know, so well received, I got to share with you people I got to share with you. And it’s not good for a podcast because I got to show you some slides and some graphs and some charts that are really important. So look for that coming up. And I might actually share it with you for the first time at our upcoming pandemic investing, conference, or online conference, pandemic investing, summit conference, whatever you want to call it. It’s coming up in just about two and a half weeks, and you can go to pandemic investing.com. and register for that, be sure you join us. You’ve got early bird pricing, pandemic investing.com. Right at the top, you can click on the event link, and it will take you to the registration page and early bird pricing for several more days. And then we have one price bump. So take advantage of that pandemic investing calm. And we have got part two of Lynette Zang today, she got really interesting took her a little while to get going and get really interesting, I think, you know, started off a little slow. But Wow, she has some really interesting information. So without further ado, let’s go to part two and talk to Lynette Lynette, let’s kind of switch gears and talk about what we can do about things. What should we be doing to protect ourselves? I have a feeling you’re going to lean toward metals as a store of value, but what do you think?

Lynette Zang 15:00
Well, okay, so what is gold, gold is good money. And it’s been good money for 6000 years. And there’s such a thing that’s called it’s called the dynastic wealth stool. And that represents wealth that has been in families, at least 300 years, you can think about the Queen of England, at least 300 years. And it has three legs, real estate, rare collectibles, and gold money. So if you’ve got this, that’s going away, then you need real money that holds its purchasing power. And I don’t know if you have a gold chart to put up there. But you know, even though it has been admittedly, the price has been admittedly manipulated and suppressed by the central banks and their minions. In other words, you know, JP Morgan, and all the commercial banks, it’s cheap and easy to do no big deal. Well, even so, what happens in a reset in a financial reset, is they when all confidence is lost, so the worst is yet to come. And when people lose all confidence in this currency and in the financial system, and in what, in the short term, they think of traditional institutions? Well, they reset that piece of paper that I just tore up and throw away against Real Money, gold, and then gold expresses to it somewhere near its true value for its most important function, which is to hold its value your purchasing power value, even is, is that the same thing as investing? Or is that just insurance and storing of wealth versus investing? See, I think

Jason Hartman 16:52
a lot of people get confused about the purpose of gold or silver or platinum or palladium, you know, they think, Oh, this is going to give me like return on investment. It’s kind of like saying, okay, I you know, I don’t have a bunch of debt. I’ve got my financial life together. But I’m still listening to Dave Ramsey, which is not going to teach me anything about investing. He’s just going to teach me stuff about getting out of debt. But they they don’t graduate from the Dave Ramsey School, which I think Dave Ramsey is fine for the group he serves. The problem is people keep listening after the past they’ve graduated, you know, from Ramsey’s? So, so that’s the thing, you know, I mean, when something doesn’t produce income, it doesn’t give you tax benefits. You know, I think it’s fine as insurance. But is it investing? I don’t think it is. It’s

Lynette Zang 17:44
not, it’s not really investing per se, but it is. So it is you’re right, it’s wealth insurance is its most important function. And right, wow, storage, exactly right. It holds its value intact. Over time, anything can happen short term, easy to manipulate. But here’s the other piece. Personally, I prefer to have the lion’s share of my wealth in an undervalued asset that is in a long term positive trend, and the least amount of my wealth is in it in an overvalued instrument. That isn’t a long term negative trend.

Jason Hartman 18:28
What is that overvalued instrument? Is that the dollar or

Lynette Zang 18:32
the dollar? And it’s also the stock market. But that’s a different story. And do you know how absolutely 100% it’s overvalued. The central banks keep telling you, we need more inflation. And what that really means is, the currency is overvalued, and we’re doing our best to take it down. And you showed that chart at the beginning of the show. There you go. Sure, but the

Jason Hartman 18:55
central bank would say enough. We they do say we need more inflation. We know that that’s their stated goal is 2%. But is there an argument that the 2% target inflation rate looking at the Phillips Curve and looking at GDP growth, which by the way is not adjusted for inflation enough at least often enough and population growth? I mean, is there is it fair to say that inflation Lynette can grow at the rate of GDP and or population? Or is it just Are you a purist to saying there should be no inflation no matter what,

Lynette Zang 19:39
okay, I I would say that I’m probably what I would say is, is that inflation is not a monetary phenomenon. It is an automatic

Jason Hartman 19:49
diamond fam.

Lynette Zang 19:51
Yeah, no, no, it is a fiat money phenomenon built into the system to get you to accept Working for less. And it is an invisible way for the government to tax you more. Because think about this with inflation, things go up, right? Because it takes more money to buy the same goods and services. So just using real estate is an example. You have a house the house has, if it’s a place where you’re living, the house has a function, right? Well, I can remember, when my father sold that house, they were making $12,000 a year in the 70s, I don’t really remember, but maybe that the house that he sold them was, I don’t know, $20,000, something like that. Sure. In today’s market, that same house as a really nice house, is probably closer to 500,000. So you sell that house, it’s really not the house going up in value, it’s really the currency going down in value. But unless you reinvest those dollars, you’re gonna pay taxes on that inflation.

Jason Hartman 21:04
And Lynette you know, I love what you just said, because that’s why I love income property. Because when you finance it with debt, you basically get paid to borrow that money, you can get a three decade fixed rate mortgage, of course, it’s subsidized by the government through Fannie and Freddie. So hey, I want I want my subsidy to you know, investors deserve their own form of welfare, and they better go take it, you know, because, um, you know, your, your borrowing had below the cost of real inflation and taxes. And that’s not to mention the fact that you’re, you’re outsourcing that debt to the renter, the renter pays the debt, you don’t pay it yourself, it’s a wonderful thing.

Lynette Zang 21:45
Now, let’s kind of Let’s stay on this key piece, because real estate inside of a reset faces two issues that goals can help you with, and you need gold, or you’re going to be in trouble. Number one are those real estate taxes. And during the Depression, if you had the property paid off, if you could not pay those taxes, you lost that home. So if you have birdorable Gold over time, then that gold in terms of dollars goes up. And so that ensures that you can always pay those taxes. And I have a strategy that I created for myself. So we’re looking at all of that. And so there’s a certain level of gold that you need based upon the current property taxes, that can help ensure that no matter what happens, you can meet those property taxes and hold on to that property.

Jason Hartman 22:42
I’m so glad you mentioned that because number one, in these areas that are these left leaning poorly run areas that are so in debt, you know, New York, California, etc. There’s more, but those are the two poster children for big government disaster, property taxes are going to go up in those places, all taxes will go up in those places, because their tax base is fleeing. I mean, it is fleeing stripe, the credit card processing company, which by the way, I’m a customer of you know, we use them to process our cards is, you know, they’re they’re offering people $20,000 one time bonuses. Now, if they will move out of their offices in New York City and San Francisco to a cheaper place, because they know that they can, they can keep them for less money. And they don’t have to house them in those overpriced offices in those cities. So these cities are just an absolute disaster. And they’re going to lose their tax base. And so their taxes are going to go up now. And this is why I say to investors do not pay off your properties. There’s no such thing as a free and clear property. Almost everywhere on planet Earth. There are scarcely very few exceptions. You have a perpetual lien on your property called property taxes. And worse yet, you might have a homeowner’s association too. So yeah, don’t pay them off. Keep them encumbered. They’re never free and clear.

Lynette Zang 24:04
good, so good. So in that case, to their Oh, God, you brought up so many things. The other risk, we can talk about the opportunity. So and we’re talking about gold, how gold, and remember, there’s that three legged stool, right? So the other risks that you run inside of a reset, is having the ability to pay off the mortgage. And a lot of people experience this in 2008. You know, I know people that went ahead and took those plans because they were losing their houses. But if you read those documents, boy oh boy, did they get screwed? Oh, I hope I get what

Jason Hartman 24:41
documents are you talking about a loan modification

Lynette Zang 24:44
that loan yes, those loan modifications.

Jason Hartman 24:47
Well, I modified several of my properties and it was fantastic. It’s like giving me free money. I loved it. Well,

Lynette Zang 24:54
the person that I read her documents for which happened to be one of my sisters. Have a lot of them. She basically is paying like interest only. And not even all of the interest or something like that. And after 30 years, she still owns those this huge block of money, money to pay defer probably smarter than she was, you probably weren’t as desperate as she was. So I’m going to tell you, because if I read those documents, there’s no way I would have done made the choice that she made. But frequently, when these things get modified, they are not in the naive person that doesn’t understand what they’re doing, not in your business.

Jason Hartman 25:39
Tell us all about the reset.

Lynette Zang 25:41
Okay, so in a reset, you want to have the ability, even though you’re going to always have those property taxes, if you need to, you want to pay it off, rather than reset it inside of a hyperinflationary reset. So because gold is severely undervalued, me and my latest calculation and the more debt they grow, the higher this number goes, the true value, the fundamental value of one ounce of gold is north of 12,500 bucks.

Jason Hartman 26:13
Wow. You know, I’m constantly giving Peter Schiff a hard time he was on my show before and I remember seeing him shortly after that interview on my show, when he was on years ago, on CNBC saying that gold would be $5,000 announced by the end of Obama’s first term if Obama was elected, that was before Obama was elected. And, you know, the complete opposite happened. I mean, you know, how can you predict this stuff? You know, and when you look at the the manipulation, like through, you know, you look at gadda, the gold, antitrust action it and, you know, they claim that Gold’s all manipulated, I believe that the central banks have an incentive to push the price of gold down. And so don’t well, right, or until they can’t one or the other. Right.

Lynette Zang 26:58
Well, okay, but understand, yeah, I think to understand this, and I’ll tell you where I come up with that. Number two, yeah, I want to know, reset of the currency, the way that it has been done every single time, over 4800 times, is they take that fiat money that has no intrinsic value, and is used in one place, and they revalue it against that gold money. That’s when they need the gold money to go up in terms of Fiat to re set it. So a simple formula. Since money is created by debt, or credit and or credit, you take all of the debt that’s out there as a proxy for all of the money that has been created. And that can be an unlimited amount. And that’s why I said, the more debt they grow, the higher that number goes. But with gold, physical, whether it’s in the ground above the ground, regardless of the form, because it’s indestructible, you just divide all the debt by all the gold, and it’ll get you somewhere near its true value for its most important function, where Peter Schiff was wrong. And I’m not really a fan of his, but where Peter Schiff was wrong, was in timing, because we weren’t ready for the reset yet. But we’ve been basically the whole world has been anchored at zero since 2008. It was 2008 when the system actually died, and was then put on life support. And all they really did was mask all the problems and allow them to get bigger and allow the financial system to get more fragile. But ultimately, the system has to reset because there’s no place to go. How far below zero Do you think we can go? They

Jason Hartman 29:02
when you say that your weight? When you say that you’re you’re referring to negative interest rates, right? Yes, I am. Yeah. Yeah. You know, you know, what’s interesting, just conceptually about the negative interest rate. I mean, it’s such a weird idea. You know, it’s just a weird concept thing. You know, the whole concept of the time value of money makes a lot of sense. Because I would rather have the utility of that money today, to be able to use it. When I was a kid. You know, I learned about inflation through Popeye. Okay, the cartoon and wimpy the characters always said, I’ll gladly pay you Tuesday for a hamburger today. And I thought that’s a pretty good idea. I’d rather have the benefit of the hamburger today and pay on Tuesday. And what’s so weird about that the time value of money though, is flipping that equation on its head. When you have negative interest rates. It’s almost like if you have gold, right, you have to if you don’t want to keep it in your house, which is very dangerous because you know, you could have a home invasion. robbery like my grandfather, who was a gold bug and a coin collector, did you basically pay for a storage unit or a safe deposit box? Right? And you store it there and you pay to store your, your precious metals? Well, you know, in a way, why wouldn’t you pay to store your money in a bank? Right? You know, that’s basically what negative interest rates are. Yes, it’s weird, except

Lynette Zang 30:25
that you’re paying to store a diminishing instrument, versus paying to store an undervalued asset that’s in a long term positive trend.

Jason Hartman 30:38
Fair enough. But people do that all the time. That’s what every storage unit in America is full of is depreciating assets, right? You know, their old, their old junk is an obese origins.

Lynette Zang 30:49
That’s, that’s probably kind of a silly thing they might want to like, rethink that. However, if I have an asset that I 100% No, and I do, I’ve been in this industry on some level since 1964. And my uncle was a major antique dealer. And I’ll tell you the story because this really had a much bigger impact on me than I ever realized. But he was my very favorite uncle. And he really taught me how tangible assets move from undervaluation to fair valuation to overvaluation to fair valuation to undervaluation constantly in a figure eight, okay. And he had I was there. And remember, this was 1964. I was 10 years old. And we were my parents and I were at his house. And he said, Come here, I want to show you something. So we went into this back bedroom, and he had two huge floor safes. And he opened up the doors of those safes. And he said to my parents, I was, I don’t think it was paying a whole lot of attention. I was 10. But he said, if anything should happen to me, and Bertie will be well taken care of for the rest of her life, because of what’s in the safes. So I turned around to look, now, I didn’t really understand too much of what I was looking at. Now, having been in the industry, if I had to guess, I would say that there were probably the equivalent of 1500 ounces of you know, three monster boxes, or 1500 ounces of gold in each safe. So 3000 ounces. But in 1964, it was illegal to hold more than five ounces of gold in any other way. But the way my uncle was holding them, and that was pre 33 coins, they were raw, they weren’t slabbed yet, because there wasn’t really a huge market, it was just those that were in the know. And at that point, he was probably picking him up for 35 bucks an ounce when he would go into higher end estates. So think about that for a minute. And I kind of want to, I kind of want to double back to the mortgage, and then the opportunity if I can

Jason Hartman 33:07
write cars, and that’s what I want to close with is any other action items,

Lynette Zang 33:11
okay? Because, again, this is an action item, right? So if you’re holding a mortgage, then if you were in a position where you were forced to pay that off, or reset on terms that you did not like, right, you have gold that is undervalued here, and frankly, real estate that at this point is overvalued, it was targeted for reflation. Well, that flip flops right? Now you can take this gold, what might let’s, let’s make life easy. And let’s just say you have a $200,000 mortgage and spot is that 2000 bucks an ounce. So you could either take that tooth out that 200,000 and pay off your mortgage, or you could take that and buy all of that gold, but when it flips around, now, what might have taken you, you know, 100 ounces to do, boom, you take it and you pay it off with one ounce or two ounce, because historically 25 ounces of gold, or the equivalent would buy an entire city block buildings at all, which takes me to New York, because you know, that at some point, those real estate, well, it’s already started, but the real estate prices are going to drop. And in Japan, commercial real estate in the early 90s dropped 95%. So now when you see this pattern, it’s called a confirmation. And it’s an indication that smart money is quietly accumulating. Now you start to take some of those gains here and you convert it into what will be at some point, undervalued real estate at a bargain price,

Jason Hartman 34:58
right? But that hold that holds discussion is predicated on market timing. And market timers tend to not attend small work over the long term. But let’s just say, fair enough. The one thing I’d like you today, but

Lynette Zang 35:12
I don’t want you on that.

Jason Hartman 35:14
Well, I know fair enough. Hang on. But before you defer with me, let me just tell you one thing, you’re fine. You’re happy to differ with me here. It’s more than fine. But what I’m saying is, people are valuing real estate prices based on the price of the property rather than and nobody buys on the price. That’s why it’s allowed to go up so much they buy on the payment, and the payment, Real Estate’s actually gotten cheaper since the peak in 2006. It’s cheaper today. And you know, it depends what real estate where, you know, it’s complicated, of course, right? If you take, if you take the same, you know, the same mortgage in 2006, for the same payment, you get $100,000. Mortgage today, you get $170,000 mortgage, and that property has not gone up that much. It’s actually cheaper today, interestingly, go ahead.

Lynette Zang 36:03
Well, I probably depends on where you are. And that is really valid, because that is exactly why they push the interest rates down, the same reason why the stock market is going up. Okay, so these are all manipulations, what I’m about what I’m taught, and hey, in Denmark, they have negative interest rates on 10 year loans, right here

Jason Hartman 36:28
are the happiest country.

Lynette Zang 36:31
Real Estate will pay you to buy this real estate. So can that become that work and that push, of course, all these manipulations can push the nominal price up. However, when we’re talking about a reset, and this is not market timing, this is history that I’m talking about not talking about market timing, I’m not going to tell you this is going to happen. By the end of Trump’s reign, I’m telling you that when confidence in the currency in the institutions are lost. And we’ve watched that confidence deteriorate over time, and it’s pretty low right now. That’s why we have the rise of populism. That’s why we have all of these riots going on. When that confidence in this con game is lost, they will have to reset the system. And that’s what that’s what everything they’ve been working for is happening. I can’t tell you, it’s gonna be tomorrow at 835. I wouldn’t even try and tell you it’s tomorrow at 835. But what I do know is that that library or reset, or the library are going away Rather, they put a deadline on it. And that is December 31 of 2021.

Jason Hartman 37:50
What does that mean to people when the library goes away? I mean, I know a lot of these mortgages and so forth. But what right, I

Lynette Zang 37:58
mean? That’s a great question. You know, it means a lot of things. But the biggest thing that it means is that the all of the valuations on all of these loans, and all of these mortgages and all of that stuff that’s tied to large lie bore, when when the library goes away, that means that those rates are either fixed at that level, and therefore there is a change, here’s where the biggest is, there is a change in valuation, even if they force it onto a new benchmark. It is a change in valuation in the whole system. So for you or me, we’re not going to see it coming. But for all of the banks and the financial institutions that are holding all of those contracts, including all of those derivative contract, I mean, it’s very complicated, but you’re looking at many, many hundreds of trillions in nominal value. And the last time that I saw it before they change the accounting laws, I counted out 1.4 quadrillion in in these nominal derivative contracts. And that was a while ago, so it’s worse now. All of that valuation changes in the entire financial system and the system implodes. So there is a forced reset with a deadline that I did not give it because, hey, I don’t have that kind of control. I would never tell you a date, unless, unless the powers that be set a date, because they’re the ones that can change it. They’re the ones that can do it. So what it means to you and me is that the entire financial system will go into a forced reset. That’s why the convenience of Coronavirus where they’re justifying and pointing fingers and trying to deflect so that the guys that got us into this set, this problem can remain in power afterwards. That’s what this whole thing is about. And that’s Why you need physical gold, physical silver outside of the system, because it’s not subject to those same things. And, and it isn’t me saying I can’t tell you that spot is going to go or gold is going to go to 12,500. I can tell you that at the time that I did that that was his current fundamental value. But if you look at what happened in Venezuela overnight, because that piece, you know, we’re in a constant reset, we’ve already started. But the big one that people are going well, what is that going to happen? When is it going to happen? That piece happens overnight. So it’s kind of slow, until fast. And it’s kind of Yeah, so there’s some nuances in there and Jason, that I’m referring to, but that’s how a reset is done. It’s not because I say gold is going up, right? It’s because that’s how they do it. And there’s only been one way to do it. They’ve tried other ways, it doesn’t work. So over 4800 times, I can’t guarantee tomorrow. But I kind of think if something has happened the same way every time, it’s most likely we’re doing the same thing, we are most likely to get the same outcome. So it is wealth protection. Absolutely. But it’s also opportunity positioning, because there’s going to be a lot of stuff that when this whole debt bubble explodes, it’s going to come back on the market. And if you are holding your wealth firm, you’re going to be able to take advantage of that. That’s what I’m talking about. And the rest of the food, water energy security,

Jason Hartman 41:43
right community and shame and birdorable and community. You know, you a lot of your stuff reminds me a little bit of Catherine Austin Fitz, I had her on the show years ago, and she talks about some of the same things with permaculture and so forth. Really, really interesting. Lynette we could talk for an awfully long time, but we got to wrap it up. give out your website.

Lynette Zang 42:04
Yeah, it’s ITM trading.com. And also if you go on YouTube, and that’s where you see my work, I produce at least 346 pieces a week. And that’s and that’s on YouTube ITM trading comm to or you can Google my name, Lynette Zang, and I’m pretty sure I’ll come up good stuff.

Jason Hartman 42:23
Lynette saying thank you so much for joining us and happy investing.

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