5min chapter

The Tony Robbins Podcast cover image

Financial Insights w/ Billionaire Jeffrey Gundlach | Discussing inflation, taxes & asset allocation

The Tony Robbins Podcast

CHAPTER

The Government Spending Is Over 35 % of Our Economy Right Now

The last 12 months, the government has spent eight none trillion dollars. 56 % of that 8 point one trillion dollars is debt. So we have something of a collectivized economy at is gaining a further momentum. Food prices are going up tremendously. Gasoline prices, si said, are going up tremendous. I saw an article on the bloomburg newswire to day that they're now calling it the k shaped inflation situation. And i can't find a single one that just doesn't end with the economic inequality getting much worse and leading to society stresses that must be addressed.

00:00
Speaker 1
That's what the government says they're spending, but they don't really tell you the real amount. You've got o a bring in some of the one time items such as whi wars. Theyre deemed to be temporary, even thugh tey've been going on for endless years. Things like a national disaster relief, which is always deemed to be one off. So actually, the last 12 months, the government has spent eight none trillion dollars. And amazingly, 56 % of that eight point one trillion dollars is debt. Incredibly bout, 56 % of the government spending is so called borrowed money. Now it's kind of being supplied by the federal reserve through a lending programme, but that's a huge percentage. So government spending is actually over 35 % of our economy right now. So we have something of a collectivized economy at is gaining a further momentum. And as you pointed out, we're talking about doing more spending on so called intra structure, although i think it's only about ten % intra structure, if you co talk bridges and roads and things and airpints and things like that. So introstructures become a buzz word for social programmes, which is really just continued money printing. Now, hone thing that surprises me is that people were ever that surprised at money giveaways when ben burnaki brought it up. Because we started giving money people in the great society programmes over 50 years ago. It was a limited amount of money aas to a limited group of people. But these ideas, once they get going, they go much further than is initially contemplated. So that's where we are now. You say there's no inflation, but today the p p i came out to producer price index. It's the highest reading in ten years. A year over year, it came out, there's different ways of slicing it, but it came out over five % in whan of the important categories, year over yoar infrmation. So it's already starting to come yo, mentioned you mention gasoline prices, which are up by a dollar a gallon here in california, a by that's by about 35 % in last year. Lumber prices are through the roof, real estate prices in many places are absolutely booming. The one thing that people have to understand is when you go into money giveaways and inflationary programmes, it is not even across the economic spectrome. There are some categories that get really inflation and some categories that don't get very much. The ones that get a lot of inflation wan to start the money printing. Unfortunately, a contrary to the intentions of these programmes, end up harming the lower classes of society. Food prices are going up tremendously. Gasoline prices, si said, are going up tremendously. I saw an article on the bloomburg newswire to day that they're now calling it the k shaped inflation situation, just like we' called it the k shaped economic of recovery out of the pandemic depression, if you will, where rich people have actually gotten a lot richer, and employment is actually up in the higher wage categories, while it remains very depressed in the lower categories. There are many instances of money printing through human history, and there are quite a few of them in the twentieth century alone. And i can't find a single one that just doesn't end with the economic inequality getting much worse and leading to society stresses that must be addressed. So we go back to the french revolution, if you will. In the days leading up to the french years lad up to the french revolution, they went off the gold standard because they had a big debt problem. And the magnitude of the debt problem was, kind of, at the beginning of this process, is kind of where ours is to day in the united states. And so what is u happening is that the people that were out of middle class become very poor, and the people that were poor start to starve. That's the real insidious aspect of the one printings, and leads to very significant problems with food prices and food shortages, typically. And so what is happening is the people that are in control of the monetary printing and money giveaway levers actually find a way to get rich. And that hasn't exactly happened a yet nches or the french revolution templet, but it is certainly happening. There is a great awareness that thanks to the tremendous fortunes that have been built through the technology platforms and through the stock market boom, that has been a aided and abetted by this money printing, you know, that we have had much greater wealth and equality, and we have a very big adivit in unemployment. Still, the government likes to report these statistics as if we've largely recovered from the pandemic effects, but we haven't even come cloaks. If you what they're doing, i think, is a dividing the economic assistance into new categories like pandemic unemployment benefits and the like, so that the traditional measures of economic growth, inflation and employment, don't really map over what we're doing to day, because got new categories in actuality. There are over 18 million america s that are on the employable, that should be in the labor pool, but they're on some form of government assistance. Tony.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode