Rick Rule, President and CEO of Rule Investment Media, shares dire predictions for the U.S. economy. He warns that the dollar could lose 75% of its purchasing power in the next decade, likening it to the 1970s crisis. Rule suggests that inflation is the only way to address unsustainable government debt. He discusses why gold could soar to $10,000 and emphasizes the importance of responsible financial planning. Also, he critiques the Trump presidency and presents uranium as a promising investment while urging listeners to prepare for the upcoming economic changes.
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insights INSIGHT
US Dollar's 75% Purchasing Power Drop
The purchasing power of the US dollar is likely to decline by 75% over the next decade, similar to the 1970s.
This decline is driven by massive government liabilities outpacing private wealth, necessitating inflation to manage the debt.
insights INSIGHT
CPI Understates Real Inflation
The official Consumer Price Index (CPI) understates true inflation due to hedonistic adjustments and exclusion of taxes.
Real inflation felt by people is much higher, impacting purchasing power beyond official figures.
insights INSIGHT
Gold Reflects Dollar’s Decline
Gold’s price tends to move with fears about the US dollar’s purchasing power.
If the dollar loses 75%, gold could potentially triple or quadruple in price over the next decade.
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In this book, David Stockman provides an insider's account of the Reagan administration's fiscal policies and the reasons behind their failure. Stockman details the dueling delusions between President Ronald Reagan and himself: Reagan's economic delusion that taxes could be cut, military spending increased, and the budget balanced without cutting popular domestic programs, and Stockman's political delusion that such cuts could be implemented in the U.S. democratic system. The book highlights the challenges of budgeting during the era of disinflation and the role of Federal Reserve Chairman Paul Volcker. It also discusses the political realities that prevented deep spending cuts and led to significant increases in the national debt.
Rick Rule, president and CEO of Rule Investment Media and co-founder of Battle Bank, joins the Julia La Roche Show for episode 266 for his quarterly appearance. In this episode, Rule predicts the US dollar will lose 75% of its purchasing power over the next decade, similar to the 1970s crisis. He explains that $130 trillion in total government liabilities against $141 trillion in private wealth creates unsolvable math that can only be resolved through inflation. Rule calls Trump's presidency a failure, dismissing DOGE as fiction and tariffs as harmful taxes. He believes the US is already in recession based on oil prices and recommends gold (potentially $10,000+), uranium, and copper investments. Drawing parallels to 1968-1980, Rule expects 10-12 years of economic difficulty but says America's culture will survive. His main message: individuals must prepare financially because government support systems are unsustainable.
0:00 Welcome and intro00:41 - Rule Natural Resources Symposium (July 7-11, Boca Raton)04:32 - Trump presidency assessment: DOGE failure, tariffs are taxes07:47 - 10-12 years of reckoning ahead, comparing to 1970s crisis09:34 - Prediction: US dollar will decline 75% over next decade11:46 - $130 trillion total debt vs $141 trillion private net worth18:44 - CPI vs real inflation - why the math doesn't work22:55 - Why DOGE was fiction from the start28:51 - Gold moving on purchasing power fears, could hit $10,000+38:43 - Copper supply shortages despite near-term economic weakness40:47 - "I believe we're in a recession" - oil prices signal soft demand44:31 - Fed rate cuts would signal abandoning dollar defense47:12 - Silver phases: gold leads, then generalist investors drive silver explosive moves50:23 - Uranium as "total no brainer" - billion people need electricity54:13 - Next decade different from benign 1982-2022 period55:00 - Personal responsibility: invest in yourself, society won't help
The Julia La Roche Show 
