Schiff Sovereign Podcast

This morning I reached out to my old friend and colleague Peter Schiff to talk about some uncomfortable truths that very few people are discussing right now. I wrote to you about this yesterday: banks are in trouble. You can’t expect to shut down practically an entire world economy that is in debt to the tune of $250 TRILLION and not expect massive loan defaults. The last financial crisis in 2008 was caused by a spike in loan defaults. We’re about to see another spike of loan defaults due to all the layoffs and business closures… only this time the problem is much, much bigger than it was in 2008. And Peter and I discuss some potential scenarios. Be forewarned, they’re not pleasant. Think about it like this: before the last financial crisis, US government debt was ‘only’ about $9 trillion. It’s nearly tripled since then. The Federal Reserve’s balance sheet prior to the last crisis was $850 billion. It ballooned to $4.5 trillion, more than 5x as much. This means that we could see US government debt reach $40 to $50 trillion, the Fed’s balance sheet exceed $20 trillion. Could that possibly have negative implications for the US dollar? You bet. Peter and I talk about what might happen with the dollar, and more. You can listen in here. * Editor’s note: As you’ll hear in the podcast, Peter promotes a number of his businesses, mutual funds, etc. We need to be clear that those comments are his alone, and that we are not recommending in any way that listeners make any investment with any of Peter’s businesses.

I thought in this age of insanity that we are living in, nothing would surprise me anymore. But sure enough, there was a headline in the Financial Times the other day, “Central banks should consider giving people money.” It seems almost impossible that someone could believe in something so ridiculous. And yet this is the world we are living in. The path to prosperity is now based on unelected central bankers conjuring millions of dollars out of thin air. Bankrupt governments are issuing bonds with negative yields, meaning they are being paid to go deeper into debt. And there are more than $13 trillion of these negative yielding bonds in the world. If anything this makes a compelling case for why people should consider owning gold. It’s a store of value with a 5,000 year track record of withstanding inflation, political crisis, and monetary stupidity. I’ve been suggesting people consider buying gold for quite some time, especially over the last year. I argue that the supply of gold, is actually declining, yet the demand will increase in large part due to all of this central bank lunacy. And that has absolutely been happening. The price of gold is up more than 25% over the last year, and just surpassed $1,500 per ounce. But unlike most other assets like real estate, stocks, bonds, etc, gold is still far from it’s all time high. There could still be plenty of gains ahead. And silver would have to triple before it reaches it’s all time high. Every summer for the past eight years, I’ve enjoyed a week or two in the italian countryside at a 400 plus year old villa. Here I relax with friends, family, business colleagues, and some of our Total Access members who fly in from around the world, to break bread and enjoy really stimulating and entertaining conversations. This year Peter Schiff has been one of my guests. He’s an old friend who shares many of the same beliefs. And when our conversation this morning turned to gold, I thought it appropriate to record it, and make a Podcast out of it. In our conversation we talk about why gold and silver have plenty of room to rise, and a number of different ways to invest.

Each year, I invite an incredible mix of young people from more than a dozen countries to join me in Lithuania for an intense week of business, investing and entrepreneurship classes taught by the smartest people I know (it’s also entirely free for the students who attend. I pay out of my own pocket for everything). I do it because I feel strongly about self-education. It’s how I got to be where I am today. So I thought it would be an opportune time to give you my latest thoughts on how to get an education that really makes a difference in your life. Education has no age limit (for example, attendees at our camp range from 17 to 47 years of age). But today, I want to specifically address those young people either starting their university studies, or just about to graduate. Getting a university degree is one of the most important and impactful decisions you’ll ever make. And we’re expected to make this decision when we’re still teenagers, too often without afterthought as to what a decision like this really means for our future. In this podcast, I talk about how to approach the decision, whether or not to go to university, how to pick a major and how to manage debt. I also discuss compelling steps that you can take either instead of a university education, or to complement it. Listen here to find out how to make the most empowering choices you can about your education. (And if you’re 57 years old and considering doing something new with your life, this podcast will definitely be worth your time. It’s never too late to change your trajectory and make excellent choices.)

Last week in its annual report, the US government reported that Social Security’s long-term, unfunded liability now exceeds $50 TRILLION. Moreover, they state that the Social Security and Medicare trust funds will run out of money in 2034. This is the government’s own calculation. Bottom line: The younger you are, the less you should count on Social Security in your retirement plans. You must take matters into your own hands and save independently for retirement. But that’s easier said than done, right? The traditional concept of ‘saving for retirement’ is to set aside some money from your monthly paycheck, and put it in something like an IRA. That works fine for some people. But what if you simply don’t have any more money from your paycheck to save? Or what if you’ve already hit the maximum amount you’re allowed to contribute to a conventional IRA? Fortunately, there are great solutions. We’ve written about SEP IRAs in the past. But there’s another structure I’d like to discuss called a Solo 401(k). A Solo 401(k) is an incredibly flexible, robust retirement structure that allows you to set aside potentially tens of thousands of dollars of income from a ‘side-business’ each year. This could be just about anything– selling products on Amazon, generating advertising revenue from YouTube videos, Airbnb rentals, freelance consulting, anything. And almost anyone can do this. You could literally be a 15 year old teenager walking dogs on the weekends for extra cash, and stash that money into a Solo 401(k). If you’re currently an employee at a US-based company, you might already have a regular 401(k); it allows you to make pre-tax contributions to your retirement, and sometimes the employer even matches what you put in. The plan probably doesn’t offer much leeway in terms of where you can invest that money, though. At best, they probably give you a list of mutual funds from which to choose. But a Solo 401(k) – a.k.a. an Individual 401(k), Self-Directed 401(k) or Self-Employed 401(k) – lets you control where your funds are invested. And unlike a conventional IRA – another common retirement structure – it lets you contribute MUCH more money to your retirement before it’s taxed. It just has to be done with income from self-employment, or from a side job. With all of the money-making options available today, it’s not difficult to stash a lot more money into a tax-advantaged retirement account. There are lots of details to consider when opening a Solo(k), but here’s the general idea: First, since we’re talking about self-employment income, you have to think of yourself as both an employer and an employee. As an employee of your own business, you can make a total of $19,000 in retirement contributions this year if you have a 401(k), plus another $6,000 on top of that if you’re over the age of 50. But you can contribute even more than that since you’re also the employer in your business. For this tax year, the maximum total contribution to a 401(k) between an employer and employee is $56,000 (for those under the age of 50) and $62,000 (for those 50 and over)… so that’s potentially tens of thousands of dollars in extra contributions you can make. More importantly, these contributions can be deducted from your taxes. So when the Bolsheviks come to power and ratchet up tax rates to 70%, you’ll be able to take a LOT of money off the table to set aside for your retirement that they can’t touch. Plus, Solo 401(k)’s are incredibly flexible. You can invest in so many different things, ranging from real estate (including property overseas), cryptocurrency, private businesses and venture-backed startups, etc. Solo 401(k)’s have an interest feature as well– you are actually able to BORROW money from your own retirement plan. The IRS allows you to borrow up to 50% of your Solo(k)’s value up to a maximum of $50,000, for up to five years, and subject to certain rules. You might not ever need it, but it’s nice to know that you have a source of emergency funds if necessary. And this is something unique to 401(k)’s. You can’t do this with an IRA. Naturally all of these benefits are predicated on you having some sort of side business– whether you’re driving for Uber, freelancing on Fiver, or selling lemonade on the street corner. But the ability to channel the vast majority of that business income into a structure that (a) keeps it away from the government, and (b) secures your future retirement, is a smart thing to do. And that’s what today’s podcast is about: all the great things you can do with a solo 401(k), and why you definitely might want to consider establishing one– even if you already have another retirement plan. You can listen to the podcast here.

Today’s podcast is with Marin Katusa. Marin is a world-class resource investor and lead analyst for Katusa Research – his publishing company, where he shares the details of many of the private investments he makes. Marin’s been investing in resource stocks for twenty years. And he’s gained a reputation as a guy who can get things done (and get the best terms) when raising capital to invest in companies – over the years, he’s put hundreds of millions of dollars to work in the sector. In our discussion with Marin, he explains his boom/bust/echo theory of investing in natural resource stocks and where we are today in that cycle (it happens to be the part of the cycle where you can find the greatest value). We asked Marin to walk you through some actual examples of private investments he’s made so you can learn when you should be looking to invest (and also understand the massive, upside potential when buying resource stocks near the bottom of a cycle). I’d encourage you to listen to the end, when Marin shares the names and tickers of his two favorite gold stocks today (like the rest of the gold sector, they’ve been pretty beaten up). He also shares a few details of his most recent investment – the largest personal bet he’s ever made. So if you want to hear about where we are in the gold market, which types of gold companies you should be investing in today and hear Marin’s outlook for the gold sector going forward, you can tune in right here.

Today’s episode of the Sovereign Man Podcast features non other than Sovereign Man’s Chief Investment Strategist, Tim Staermose, talking about not one but two highly successful, targeted investment strategies with proven track records. If you are a regular Sovereign Confidential or 4th Pillar reader, then you’re familiar with Tim’s wit, his financial probity, and his impressive stock picking skills. Today, he’ll tell you how he goes about looking at the markets at a time when nearly everything is overpriced. Also, if you’re curious about Tim’s top recommendation today, you can get more details here… A quick general summary of what’s discussed: Intro – A bit about the markets… what Howard Marks and Warren Buffett think… 2:30 – A bit about Sovereign Man’s Chief Investment Strategist, Tim Staermose, and his track record 3:30 – Why Tim is finding great deals in this “pre-frontier market” 6:30 – What investors can do in today’s market, the mistakes most investors make, and the difference between the macro and the micro investor 9:30 – Tim’s take on “deep value” investing 12:00 – The other strategy Tim has been employing lately 13:00 – The analysis Tim does when deciding how to invest in takeover arbitrage 14:30 – The advantage of investing in markets based on British Common Law 16:00 – Why today is a good time for M&A investing 16:30 – Tim’s take on gold acquisitions – the majors… 18:30 – … and the juniors 19:20 – Where gold prices might go 19:45 — Tim talks about one of his most exciting recent picks We hope you enjoy and learn from today’s podcast.

Today we bring you a fresh episode of the Sovereign Man Podcast, where Simon Black unpacks why the people in charge have no idea what they’re talking about… and how you can protect yourself from their policies. Freshman politicians want to nationalize entire industries. They want to increase the marginal tax rate to 70% or more. They want to ban corporations from buying back their own stocks unless those companies meet stringent requirements. They want to raise capital gains taxes. In short, they want your money. In this episode, Simon gives you a roundup of bad policies, why they don’t/won’t work… and the one big thing you should do if you don’t want the Socialist train to run you over. A quick general summary of what’s discussed: Intro – It’s here, and… they have “NO IDEA!!!!” (Jim Cramer was right.) 2:00 – Why stock buybacks are stupid… but why the government should drop the idea of regulating them 7:20 – What all this is REALLY about 9:15 — Equality vs. Freedom and why you can’t have 100% of both 16:50 — The rise of Socialism in the US and what’s behind it 22:00 — Taxes: Why raising them never solves income inequality (and what does) 28:00 — How NOT to become wealthy 31:00 — Bernie Sanders and Donald Trump said the same thing 32:30 — Solutions for you, including what to focus on now 34:00 — Simon’s warning — and his big Obama quote of the day 36:45 — One place that is getting it right 37:45 — Proof that they don’t REALLY want free education 39:00 — The best entitlement ‘demands’ you’ll hear all day 44:00 – The ONE thing you need to do if you want to protect your money in an age of Socialism We hope you enjoy and learn from today’s podcast.

Welcome to another edition of the Sovereign Man podcast. As we enter 2019, you’ll start to see more podcasts from us. And you also might notice a few changes. We’ve upped the production value of our chats with Simon. And we’ll continue to improve both the production and the content of our podcasts. And we’d love to hear your feedback on our efforts. In today’s podcast, Simon gives us an update from on the ground in Puerto Rico… and explains why you should absolutely consider moving to Puerto Rico if you have a business, earn investment income or want to freelance and significantly lower your tax bill. Plus, Simon shares some specifics on how to get started taking advantage of Puerto Rico’s tax incentives (and who can benefit from Act 20 and Act 22). It’s an outrageous deal to be able to live in paradise and pay essentially zero tax. So if you have any interest in Puerto Rico… and you could potentially benefit from moving yourself or your business there, please do not miss this discussion. And make sure to subscribe to our podcast on iTunes or Google Play. Here’s what you’ll hear about in today’s episode: Intro – Simon talks about how amazing life is in Puerto Rico, something which surprised him. (He’s not a beach guy.) About 3:00 in — Why moving to Puerto Rico is like moving to Florida… with major financial benefits 5:45 — What Simon gave up to move to Puerto Rico, and why it reminds him of South Park 8 minutes — Why Simon sees voting with your wallet as much more powerful than voting at the booth 10:00 — The big difference between living in a high-tax state like California and living in PR, and how the tax incentives work 18:15 — details about Act 22, including whether it works for crypto people, investments in US companies, etc. 27:27 — details about Act 20, what constitutes a “qualifying” business 31 — Can an employee on salary do this? 32:54 — Are you still paying self-employment, FICA, etc.? How do the taxes work? 36 — How does the IRS consider you a resident of PR? What do you need to do? 36:30 — Do you create an LLC or a corporation? 38:30 — How is the rise of socialism going to affect programs like these? Will these incentives last? 47:50 — Do you need to be wealthy to reap these advantages? What is the income threshold or net worth threshold to make moving to PR a good idea? (Plus, Simon’s decision not to use “rule of thumb” ever again.) 50 — The power of compound-compound (double compound) interest, and whether Einstein said that thing about it. 54: Why Simon is no longer skeptical about the PR tax incentives 57: Why the requirements for Act 20 are better than they’ve ever been (and why you should lock them in… now) 1:09: How expensive is it to live in PR? Are there “middle class” options? Plus, what life is like there 1:11: Drawbacks to living in PR 1:12 Opportunities in PR 1:20: Summing it all up — and Simon’s advice on first steps We hope you enjoy today’s podcast and learn a lot about expanding your freedom and opportunities. And make sure to subscribe to our podcast on iTunes or Google Play.

Between the year 1054 and 1224, there were 83 civil wars in Russia. That’s about one civil war every two years. Through the middle ages, feudal lords were periodically murdered in peasant revolts. When people sense too much unfairness in the system, the pitchforks come out. Wealth and inequality have been with us for all of recorded human history, and probably before that. Things get rocky when that gap grows large enough, or is even just perceived as large. Invariably, this inequality gets “corrected” either by a government or an armed revolution. Wealth is either taken by the state and redistributed, or taken by pitchfork, machete, or gun wielding mob. We’re kind of at the point now where wealth and income inequality has once again gotten pretty pronounced. Just a small sign of the times we discuss in today’s podcast involves a school in Great Britain that has banned expensive jackets. The idea is to protect the feelings of kids whose families cannot afford the jackets. So in order to avoid “poverty shaming,” parents won’t be allowed to send their kids back to school after Christmas break with top brands like Canada Goose and Moncler. So if all the students can’t afford a $900 jacket… then nobody is allowed to wear one. Invariably, the “solutions” don’t lift the disadvantaged up, but simply drag the privileged down. And wealth isn’t the only type of inequality. What’s next? Forcing the best athletes to carry weights, or bringing down the smart kids’ test scores? It’s nothing new. Back in 2008, the Occupy Wall Street movement gave voice to the same feeling. Someone at the top is screwing the little guy. Inequality is part of human nature. We are not all going to be born with the same skills, intelligence, desires, and preferences. In today’s podcast, we get into the palpable anger over inequality that is boiling over, and the types of absurd responses we see.

Last week I recorded the most memorable podcast I’ve hosted in some time. Jim Grant, editor of the famed Grant’s Interest Rate Observer, joined us for a discussion. Grant’s, in my opinion, is one of the finest financial publications out there. And it’s a treat to have a guy like Jim on the podcast. He’s written Grant’s for 35 years. And in that time, he’s made some incredible calls (including first writing about the excesses in housing in 2001) and some not so incredible ones… But, most importantly, he’s amassed a cult following of the best and brightest in business and finance. Central bankers, Wall Street CEOs, hedge fund billionaires… they all read Jim. In other words, his opinions count. So I hope you’ll tune in to hear what he has to say… In our discussion, Jim and I talk about the current state of the economy, the latest Fed announcement and some of the insane excesses in the market today. And Jim sums of the absurdity of today’s market in one, important paradox. Finally, we share a few ideas on how to protect yourself and maybe even profit from these excesses. Also, at the end of our discussion, Jim shares a very special offer for Sovereign Man readers. To learn more about the exclusive deal we’ve arranged, just click here… And, you can listen to the podcast here.