1562: Dynastic Wealth, Gold, Negative Interest Rates, LIBOR, Lynette Zang Pt.2

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. And now, here's your host, Jason Hartman with the complete solution for real estate investors.

Welcome to episode 1562. 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 here. 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.

Full.

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 time frame 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. 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, terrible. Yet at the same time, the housing market is absolutely booming. Booming, booming, BO 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. 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 just because. Hey, Biden, you know, listen, this is not a political statement. I mean, the guy's just asleep now. Last night, you know, they had him pumped up on caffeine and Adderall and whatever else they got him taking because did you see his dilated eyes? That his eyes just looked 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 wanted 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 looked strange. It had an odd kind of, like, shape, the facial muscles. It was weird. Now, listen, Trump, the orange man, you know, with the comb over, he looks weird, too. I'll be the first to say it, okay? You know, Trump, I mean, and Trump is Trump. You know, he 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. 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 Trump and say, well, he's such a jerk. He's so mean. He's just a mean guy. And, you know, think about this. Think about the people in World War II that, you know, or World War I, but let's just use World War II 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, it was against the. The Nazis, the Hitler Nazis and the Japanese imperialists. Right. Anybody who fought against them. Do you think all those troops and all those Generals were 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 gotta give Trump credit for one zinger that, you know, I've, I've done more in, in 47 months than you've done in 47. 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 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 and this chart we have on Trump's taxes because the New York Times has painted that as some big expose, like it's some ridiculous thing. Trump simply was using the tax law the way it was written. He's doing loss carryforwards and on income property, and 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 it. It's the law. And so he's taken 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 pass 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 them, I don't care. The law is the law. It applies equally to everybody. And Trump, like any smart business person, 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 provide some 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 them myself and I'm really enjoying it. So the quote, the quote. I love this quote. It's Dennis Whateley. He was on episode number 150. You're gonna get this in your email box in our email newsletter. I just wanna 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 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. It's forward momentum, forward momentum. 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, or would have done or what they cannot do. Dr. Dennis 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 Clinton's 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, good for Trump, that's what he should have done and that's what he did 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 going to 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 said, jason, you know, that was really interesting. You're looking at this a different way than I'm used to hearing 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 going to put this together. I'm going to do it in a webinar because it was just so, you know, so well received. I got to share it with you people. I got to share it with you. And it's not good for a podcast because I got to show you some slides and some graphs and stuff, 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, our 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 pandemicinvesting.com and register for that. Be sure you join us. You've got early bird pricing, pandemicinvesting.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. Pandemicinvesting.com and we have got part two of Lynette Zhang. Today. She got really interesting. Took her a little while to get going and get really interesting. I think it, 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?

Well, okay, so what is gold? Gold is good money. And it's been good money for 6,000 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 even though it has been admittedly, the price has been admittedly manipulated and suppressed by the central banks and their minions, in other words, 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 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 a short term they think of as traditional institutions, well, they reset that piece of paper that I just tore up and threw away against real money, gold. And then gold expresses to its somewhere near its true value for its most important function, which is to hold its value. Your purchasing power. Value even.

Is that the same thing as investing or is that just insurance and storing of wealth versus investing? See, I think 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 don't graduate from the Dave Ramsey school, which I think Dave Ramsey's fine for the group he serves. The problem is people keep listening after they're past. They've graduated from Ramsey school. So that's the thing. I mean, when something doesn't produce income, it doesn't give you tax benefits. I think it's fine as insurance, but is it investing? I don't think it is.

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 now.

Wealth storage.

Exactly. 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 an overvalued instrument that is in a long term negative trend.

What is that overvalued instrument? Is it the dollar or the.

It is exactly 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 central bank would say. 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, 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 that's saying there should be no inflation no matter what?

Okay, I would say that. I'm probably. What I would say is that inflation is not a monetary phenomenon. It is.

So you're not a Milton Friedman fan?

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 as 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 in today's market. That same house is 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 going to pay taxes on that inflation.

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 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 my subsidy too. You know, investors deserve their own form of welfare and they better go take it, you know, because you know you're borrowing it below the cost of real inflation and taxes. And that's a beautiful thing. Not to mention the fact that you're outsourcing that debt to the renter. The renter pays the debt, you don't pay it yourself. It's a wonderful thing.

Now let's kind of, let's stay on this key piece because real estate inside of a reset faces two issues that gold 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 barterable 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 onto that property.

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, et cetera, 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 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 lean on your property called property taxes. And worse yet, you might have a homeowners association too. So don't pay them off, keep them encumbered. They're never free and clear. Good.

So in that case too. Oh God, you brought up so many things. The other risk we could talk for.

A while.

And we're talking about how gold and remember there's that three legged stool, right. So the other risk that you run inside of a reset is having the ability to pay off the mortgage. And a lot of people experienced 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 screwed.

What documents are you talking about? A loan modification.

That loan? Yes, those loan modifications.

Well, I modified several of my properties and it was fantastic. It's like giving me free money. I loved it.

Well, the person that I read her documents for, which happened to be one of my sisters, 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 owes this huge block of money, money that they deferred. You were 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. Frequently when these things get modified, they are not in the naive person that doesn't understand what they're doing. Not in your best situation.

Tell us more about the reset.

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, I mean 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.

Wow. 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 an ounce 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 manipulation like, you know, you look at gata, the Gold Antitrust Action Committee, and, you know, they claim that gold's all manipulated. I believe them. The central banks have an incentive to push the price of gold down until they don't, or until they can't. One or the other. Right.

Well, okay, but understand, I think to understand this. And I'll tell you where I come up with that number, too.

Yeah, I want to know.

A 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 reset it. So a simple formula. Since money's 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 could 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, buy 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 in terms of.

When you say that you're. Wait, when you say that, you're referring to negative interest rates, right?

Yes, I am.

Yeah. Yeah. 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. Think about it. 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 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 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 precious metals? Well, in a way. Why wouldn't you pay to store your money in a bank? Right? That's basically what negative interest rates are. Yes.

It's weird, except that you're paying to store a diminishing instrument versus paying to store an undervalued asset. That's in a long term, positive trend.

Fair enough. But people do that all the time. That's what every storage unit in America is full of, is depreciating assets. Right. Their old junk is in all these storage units.

That's probably kind of a silly thing. They might want to rethink that. However, if I have an asset that I 100% know, 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 this 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 don't think I was paying a whole lot of attention. I was 10. But he said, if anything should happen to me, Aunt birdie will be well taken care of for the rest of her life because of what's in these 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 5 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 them 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 double back to the mortgage. And then the opportunity, if I can, because.

And that's what I want you to close with Is any other action items.

Okay. And 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 make life easy. And let's just say you have a $200,000 mortgage. And spot is at 2,000 bucks an ounce. So you could either take 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 100 ounces to do, boom, you take it and you pay it off with 1 ounce or 2 ounce. Because historically, 25 ounces of gold or the equivalent would buy an entire city block, buildings and 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 the 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.

Right, but that whole discussion is predicated on market timing. And market timers tend to not. That tends to not work over the long term, but let's just say it does. Fair enough. The one thing I'd like you to.

I got to differ with you on that.

Well, I know, fair enough. Hang on. But before you differ with me, let me just tell you one thing. You're happy to differ with me, 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, complicated, of course, right. 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.

Well, it probably depends on where you are. And that is a really valid point because that is exactly why they push the interest rates down. It's the same reason why the stock market is going up. Okay, so these are all manipulations, what I'm talking about, what I'm taught. And hey, in Denmark, they have negative interest rates on 10 year loans right here.

That's why they're the happiest country.

Buy this real estate. We'll pay you to buy this real estate. So can that work? Can 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 gonna tell you this is gonna happen by the end of Trump's reign. I'm telling you that when confidence in the currency and 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 everything they've been working for is happening. I can't tell you it's going to be tomorrow at 8:35. I wouldn't even try and tell you it's tomorrow at 8:35. But what I do know is that that LIBOR reset or the LIBOR going away, rather they put a deadline on it, and that is December 31st of 2021.

What does that mean to people when the LIBOR goes away? I mean, I know they changed the index on a lot of these mortgages and so forth, but what does it mean?

That's a great question. You know, it means a lot of things, but the biggest thing that it means is that all of the valuations on all of these loans and all of these mortgages and all of that stuff that's tied to Libor, well, when the LIBOR 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 changed the accounting laws, I counted out 1.4 quadrillion 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 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 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 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 its 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, when is that going to happen? When is it going to happen? That piece happens overnight. So it's kind of slow until fast.

And then it's kind of sudden. Yeah.

So there's some nuances in there, Jason, that I'm referring to, but that's how a reset is. It's not because I say gold is going up. 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 and 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 gonna be a lot of stuff that when this whole debt bubble explodes, it's gonna come back on the market, and if you are holding your wealth firm, you're gonna be able to take advantage of that. That's what I'm talking about. And the rest of the action, food, water, energy, security, community and shelter and barterable.

And community. Yeah. A lot of your stuff reminds me a little bit of Katherine Austin Fitz. I had her on the show years ago and she talks about some of these same things with permaculture and so forth. Really, really interesting, Lynette. We could talk for an awfully long time, but we gotta wrap it up. Give out your website.

Yeah, it's itmtrading.com and also if you go on YouTube and that's where you see my work, I produce at least three, four, six pieces a week, and that's on YouTube itmtrading.com too. Or you can Google my name, Lynette Zhang. And I. I'm pretty sure I'll come up.

Good stuff. Lynette Zhang, thank you so much for joining us and happy investing. Thank you so much for listening. Please be sure to subscribe so that you don't miss any episodes. Be sure to check out the show's specific website and our general website, hartmanmedia.com for appropriate disclaimers and terms of service. Remember that guest opinions are their own, and if you require specific legal or tax advice or advice in any other specialized area, please consult an appropriate professional. And we also very much appreciate you reviewing the show. Please go to itunes or Stitcher Radio or whatever platform you're using and write a review for the show. We would very much appreciate that. And be sure to make it official and subscribe so you do not miss miss any episodes. We look forward to seeing you on the next episode.