HS 136 - The Financial Survival Network with Kerry Lutz

Welcome to the Holistic Survival show with Jason Hartman. The economic storm brewing around the world is set to spill into all aspects of our lives. Are you prepared? Where are you going to turn for the critical life skills necessary to survive and prosper? The Holistic Survival show is your family's insurance for a better life. Jason will teach you to think independently, to understand threats and how to create the ultimate action plan. Sudden change or worst case scenario, you'll be ready. Welcome to Holistic Survival, your key resource for protecting the people, places and profits you care about in uncertain times. Ladies and gentlemen, your host, Jason Hartman.

Welcome to the Holistic Survival Show. This is your host, Jason Hartman, where we talk about protecting the people, places and prophets you care about in these uncertain times. We have a great interview for you today and we will be back with that in less than 60 seconds on the Holistic Survival Show. And by the way, be sure to visit our website@holisticsurvival.com you can subscribe to. Our blog, which is totally free, has loads of great information and there's just a lot of good content for you on the site. So make sure you take advantage of that@holisticsurvival.com we'll be right back.

Hey, it's my pleasure to welcome my friend Kerry Lutz to the show. He is the founder and host of the Financial Survival Network and he just covers a lot of great fascinating topics on his show and has some fascinating guests and thought leaders on the show as well. And he's coming to us today from somewhere in Florida. Kerry, how you doing?

Hey, doing great, Jason. And thanks so much for having me on the show.

Well, the pleasure is all mine. Hey, I have to ask you, where in Florida are you located? I don't remember.

I'm in northern Palm beach county, little town called Jupiter of 5,000 55,000 people right off the ocean. And we're, we're having cold weather now. It's 64 degrees.

Now, Carrie, there's Jupiter island, right? And is there Jupiter? That's not the island too.

Yeah, Tiger woods actually lives on Jupiter Isle. And there's the Jupiter Inlet over there there's this distinctive lighthouse, but I'm further west. I didn't really want to be that close to the ocean because Florida hurricane, hurricane alley here and why tempt fate?

Sure, yeah, that's. There you go. Why tempt fate? Yeah, there you go with a hurricane. But yeah, Jupiter, that's a high end area in Florida from what I understand. I haven't been there, but gotta go check it Out. So, first of all, let's get a little background real quickly. Carrie, when did you start the Financial Survival Network?

I started it back in 2011 and, you know, it was actually, I started radio in 2010, got into the Financial Survival Network shortly thereafter and because after the financial crash, I realized that you really needed to get good information that you weren't getting from the mainstream and certainly not from the government.

Yeah, no question about it. The mainstream media, or Sarah Palin adequately called it, I think, or appropriately called it the lamestream media. It's just. It's all corporatized. It's all the same drivel. It's the same six top stories. You just don't get the full picture of what is really going on out there, especially if you're watching television. And I call television the idiots. Medium talk radio is better because it's more in depth, but television is just, wow. Very little of it is good. There's some good stuff there, but not much.

Not much that's true. It reminds me of that old saying by television, reminds me of the old saying by H.L. mencken. No one ever went broke underestimating the intelligence of the American public.

Yeah, you could short American intelligence and you do very well. Right. Short it like you short a stock. Yeah. So the Financial Survival Network is basically a podcast, right?

Correct. But we're on terrestrial radio, too. But most people, most of you out there hear us on the Internet and.

Tell us about some of the guests you've had on the show.

Oh, well, hey, just today I had Martin Armstrong on, and you'll like this. He said, buy real estate. It's a great play on the dollar and on the economy effectively. And then we've had. We used to have the late great Bob Chapman on. He was a regular guest. We get Chris Duane, the Silver Shield. We get all sorts of really famous people who I would never think would give me the time of day, but somehow they want the word to get out. Guys like David Morgan. Just a whole plethora of guests. And we just. We don't let up. We just keep doing more and more and more every single day. And you never know who's going to be on here. Mickey Folpe, John Rubino at dollarcollapse.com, tom Dyson at Palm Beach, Letter G. Edward Griffin. I know he's been on your show.

A couple of times.

Yeah, yeah. Charles Hughes Smith. And the list just goes on and on. And we're trying to give you as much information as we can so that you will be prepared and able to deal with the emerging economic realities in the US and the world.

And they are changing quickly, folks. Carrie, I have called this many times and I think other people have, too. The largest transfer of wealth in human history. That is what is facing us right now. And some people, those in the know, those who are paying attention, and not only paying attention, but acting on what they know. You got to take action. You can't just listen and learn. Life is a do it yourself project, and without action, nothing happens. But I mean, this is a, this is a historic time and some will be enriched by it and some will be impoverished by it. You know, I'd like to ask you, and of course, all of your guests have different opinions and all of my guests on my show have different opinions and different views and a different take on things. But if you had to pick maybe one or a few overriding themes, Kerry, as to kind of what the gist is of what your guests are saying, could you share some of those with us?

Sure. Glad to. And what they say, you know, there's two camps, maybe there's three. There's ones that say we're going to have hyperinflation. And therefore, if you're a debtor, that's the best of all possible worlds, unless they change the rules. Then there are those who say we're going to have deflation, meaning that the value of the dollar is going to go way, way up and if you have debt, you're going to be crushed. And then there are the people who say that it's more or less going to continue on this way until certain events happen. And nobody can really judge when they're going to happen. And at that point, they either fall into the deflation or the hyperinflation camp. But the, the point is it's happening kind of in slow motion because of the money printing, because of the debasement of every currency in the world. And therefore, like you said, this is the greatest wealth transfer, greatest opportunity you're ever going to have to build real wealth. And all you have to do, Jason, and you know this, I'm sure you've quoted it, but during the Great Depression, more millionaires were made in the United States than at any other time in history. And think about what that means and what it means to you now.

Yeah, no question about it. That's when the opportunities arise. But unfortunately, most people miss it, don't they?

Well, you know, because look, there's a lot of fear and you can't allow fear to be your master. You can't suppress it. You kind of have to come to an arrangement with it, use it to help make you smarter, but not to control your actions. Fear of the unknown is not an excuse to sit back in your chair and do nothing. You have to come up with a strategy. You've got to get the knowledge and you've got to learn the strategies, a lot of which you teach of how to build lasting wealth. And there's a lot of ways of doing it, whether it be real estate, precious metals, insurance policies, certain stocks that are going to be there no matter what. You have a lot of alternatives available. And probably the best strategy is a combination of them.

I thought one of the things you were going to say, to answer my big sort of overriding question there, was that all of your guests, and now that I'm jogging your memory here, I bet you are going to agree with this, or your guests are, but they probably all think a lot of inflation is coming, I assume.

Oh, yeah, well, I'm sorry. Basically, even the people who believe eventually we're going to go into a severe protracted deflation believe there will be inflation along the way. And most of my guests, if not all to a man, all agree that the current rate of inflation and the increase in consumer prices, which are two separate matters, are far greater than is stated in the official statistics. Which means that you really can't wait around for inflation. It's here now. You got to accept it. And I mean, I don't know when the last time you filled up your car, Jason, but yesterday I filled my car up with a non inflationary $65 worth of gasoline.

Yeah, yeah. You mean, and your pun there is that of course they take food and energy out of the core index.

Yeah. And all I can say is I'm happy there's no inflation because if there was, I might have paid $100 for that tank of gas if we really had inflation.

So, yeah, inflation, definitely. And that's why you need to own hard things of value.

That's what I say, Kerry, is that money doesn't really matter that much, or I should say currency, not money, but currency, the symbol of real money. Because money is things, things actually do matter. Commodities, things that have universal need that people need to, to live their lives, to manufacture food, clothing and shelter, the three basic human needs and then the needs beyond that. So hard assets are where it's at, not paper assets. Right.

I couldn't agree more. I mean, really, when you've got a depreciating currency which every man woman and child on the planet does. Now there's no currency out there that's going up in purchasing power when you have that. The key is not to have it. To hold your wealth in that depreciating currency is to own things. And there's a lot of things that you can own that will go up in value or at least in nominal depreciating currency in dollars effectively. And that could very well be a lot of different asset classes, resources, real estate, you name it.

Let me take a brief pause. We'll be back in just a minute.

Have you listened to the Creating wealth series? I mean from the beginning? If not, you can go ahead and get book one that shows 1 through 20 in digital download. These are advanced strategies for wealth creation. For more information go to Jason hartman dot com.

Well, there's no definition for hyperinflation, no academic definition. And I asked my guests this a lot of times on my shows. But any opinions from your guests or you on how much inflation will have when it will hit? I'm looking for a percentage number here and nobody, nobody knows, of course it's a prediction. But when you look at even an inflation rate of 100% annually compared to some other countries and times throughout history, I mean that's pretty mild, believe it or not. Well, is that even considered hyperinflation?

Technically? All right, technically the definition is, but I've heard offered by some economists and I've had a number of pretty mainstream economists on the show. 20% per annum, 2, 3% a month is pretty much considered hyperinflation. You know, you gotta look@Shadowstats.com yeah, we.

Had John Williams on our show. Yeah, he's great.

Yeah, and you look at his stats, he says we have 5 to 6% inflation now. He sees it going up higher. And the governments are all about fooling you and not letting you know when this inflation hits because they don't want to do anything that will undermine confidence in the so called recovery. So can't say exactly when it's going to happen, but it will happen because look, the Fed is just buying bonds from the banks at par. And what are the banks doing with that money? Well, to some extent they're buying new treasury offerings that take place, but they're going to have to loan it at some point it's going to find its way into the money supply period. And maybe it's finding its way right now in real estate. And we're seeing the first signs of inflation in the real estate market. The bubble is getting blown Again, and.

I think that already happened back in 2008 with the stock market. As soon as Obama got in office, the printing press just went into overdrive, of course. And you know, we had the bailouts and the money creation out of thin air and just amazing levels of money creation. And it pumped up the stock market and the stock market came back. I mean, you know, most people thought that was, I always argue that wasn't a real dollar increase in, in the Dow. It was a nominal dollar increase. Because if you take into account the amount of money that was created, was any ground really gained?

No, it just put off the inevitable because there's going to have to be an economic reset globally that takes place. And whether that means the dollar is no longer the reserve currency or we go back on some type of metallic standard, I don't know what it's going to be. I don't know when it's going to be sooner rather than later. It is going to happen because the current system is unsustainable because we're not paying any debt down. We're just paying interest on interest and.

Borrowing 46 cents of every dollar to do our silly spending. It's just crazy.

Yeah. And then next year they're saying, or this year I think the Fed will buy 90% of all the Treasury's new offerings. That just can't go on. That is a prescription for disaster. You need to be preparing now.

Well, what are some of the tips on preparation? I mean, you alluded to them, but you know, maybe just elaborate on that a little bit.

Well, without sounding like an ultra prepper, I think my personal predilection is you need to be owning some precious metals. Okay. I don't want to say you should go all in on them. I don't think that's ever a wise move to go in all in on any asset class because things don't go the way you think. And who knows, you know, the future is always uncertain. You could get broken that way. And then I think you need to have some preparations, personal preparations in your home in case there's some supply disruptions. And that means whether there's an economic collapse or a natural disaster, you should always be prepared at home with your family and your neighbors, if you can. And then of course, I think that real estate, more so than I felt in the past, really plays a role in this, especially residential. If you can own your home cheaper than you can rent it and investment, because I believe that in the end of the day it's a put on the dollar. You're basically saying that when you take out a mortgage, you finance some commercial real estate, you're going to see that your returns are going to be way out there. If there's inflation because you get to pay back your debt in cheaper dollars, there's hyperinflation, we don't know how that's going to wind up, what type of reset they're going to do. But the odds are if you're a real estate professional, it probably affords you so many advantages in terms of our warped tax system that that's something you need to be thinking about as people need a place to live, businesses need a place to stay, and you know, there's better real estate markets in certain places in the country. But it just seems to make a lot of sense to me. Even though I've been down until recently on real estate, I just see it now as this is the time to get in. Especially if you can get positive cash flow property without working over too much.

Equity, you're certainly going to get agreement from me. You know, the great thing about income property is that it's a multi dimensional asset class. So it's not just about appreciation or depreciation, although appreciation is obviously happening in most markets now. And you know, knowing that all real estate is local, so it depends where, of course, and there are great opportunities. You know, the preamble to the national association of Realtors, their preamble for their initiation, when they induct new members, their induction ceremony is under all is land. I mean, cell phone towers go on land, houses go on land, businesses go on land, everything goes on land. I interviewed one politician on one of my shows once, Gary, and I remember what he said. It was really bright. He was kind of a, and I don't mean this in a condescending way, but he was kind of a simple guy and he said that himself. So I'm not saying anything negative, but he said, I just believe that all value comes from land. If you think about it, that's where all of our natural resources come from, whether it be oil, gas, gold, silver, agriculture, real estate. And fake value comes from engineered financial products that are created out of thin air on Wall Street. Just like Fiat money is created out of thin air at the Federal Reserve and the Treasury Department.

Yeah, definitely indispensable. You got to have your piece of earth someplace. You got to have a place to stay, place to live, and if you could live and work in the same place, that's great. Otherwise you're going to have to work someplace Else. So yeah, it's pretty basic need to modern life.

It sure is. Well, he tell us a little bit more about your show or any of your guests, any things that you want to say about it. First of all, give out the website if you would.

Oh sure. It's financial survival network.com and it just on our blog, which is an aggregation, I have this guy who's my webmaster, Stefan, the human aggregator. And he pulls content articles. He'll pull articles that you can read from. Literally. If you look at his, his desktop, he's got over 70 windows open at any given time.

And I thought I was bad. People criticize me for having 30 windows open at a time.

This guy, man, he just keeps it going all day long. We get tens of thousands of people coming to the site every single month just to check out the offerings because it's kind of a one stop shopping where you can go and see what else is going on in the world and you know, listen to some of the podcasts if you like, some of the radio shows that we've done and hopefully you'll get informed and it'll get you thinking and you'll realize that you need to start thinking about what you're going to do, how you're going to prepare for the future. Because you know as long as you have a plan, you're going to be so much better off than not having a plan. Because if you don't have a plan, then like they say, if you don't plan to succeed, then you're planning to fail. And everything in life really starts with a plan. So. So that's what we're hoping to get you do which to do. Which is why we've got a number of different reports. The Financial Survival Toolkit, the Precious Metal Storage Report and How to Buy Spot Silver. How to Buy Silver at below Spot. A lot of different things available there. That's why I encourage you to go sign up. And it's the best thing, Jason. It's like the best things in life. It's all free, no charge for anything. And also I wrote a book called Forget Wall Street, Go for the Gold and Silver too, which is also available on the site, which you might find somewhat informative if you're not familiar with monetary history throughout civilization.

Yeah, fantastic. Couple comments on what you just said about making a plan. First of all, Kerry, another way to look at that is that everybody has, well, not everybody, but those who sort of are higher up on the socioeconomic ladder and especially those that are kind of running the world, they have a plan too, and their plan is not going to be good for you. So I say that if you don't have a plan, you're going to fit into somebody else's plan and you're not going to like their plans for you as much as your own plans. Okay? So make your plan and stick to it. That's first of all just a dovetail on what you said. And then now you said your stuff is free. I mean, you've got all this great free content out there. And I ran across a very interesting quote I thought was kind of snarky and funny on Facebook recently. And it was by Coco Chanel and she said, the best things in life are free. The second best things are very expensive.

And that reminds me of another funny quote that I heard, which is, money can't buy happiness, but it'll do till the real thing comes along.

I love it. That's great. Yeah, that's for sure. And you know, another one like that is money won't solve all your problems, but at least you can arrive in style to the problems you still have.

Yeah, that is a great point. And it's. It's not everything in life, but you do need it. It is a need that humanity has. And if, if you want to maintain not even a flashy or super lifestyle, but just a survival lifestyle, you need a certain amount of money. And you can cut down on your need for it, but you still need some. So you have to have ways of getting income streams. And certainly a piece of real estate is great. Investing in yourself, learning skills. I mean, one thing is you go in and you see these people in Walmart and elderly people as greeters and you think, my, how terrible. But actually it maybe it isn't so terrible because they figured out a way to pull in another income stream so they don't have to just rely upon their Social Security. And it is a proven fact that the longer you work in life, the more active your mind stays and the younger your mind is. So I've taken a different view of the people. I used to feel bad when I'd see elderly people working. But honestly, you know, it could be the.

It's a life extension thing. Yeah, no, it is. It's really. You gotta stay engaged. The people that live the longest are the people that die in the middle of a project. They're just always caught up in something they're doing and they live longer. People that don't have a purpose don't live too long. So you're absolutely right.

For sure.

Yeah. Good advice. Well, Kerry, any parting thoughts for our listeners?

Hey, just be ready. Don't fear the future. Don't fear change. Just be ready for change and learn how to profit from change, which is something that you do so well, Jason. You prepare people to prosper and to profit from change. And if you can understand possible future trends and prepare yourself for them, you'll be able to do the same.

Yeah, no question about it. You know, Kerry, I used to say that I was. I used to say that I was an optimist, and I'm no longer an optimist. The whole world seems so much messed up now. But I'm, I'm an opportunist and there are a lot of opportunities out there. So keep doing your good work. And that's what your show does and my shows do. And I'm so pleased that we're both in the position to get the word out there and help spread the word about the things people don't hear about in the mainstream media. So keep up the good work, Kerry. Thanks.

Hey, you too, Jason. Thanks for having me on. I really appreciate it.

Thank you for joining us today for the holistic survival show, protecting the people, places and profits you care about in uncertain times. Be sure to listen to our Creating wealth show, which focuses on exploiting the financial and wealth creation opportunities in today's economy. Learn more at www.jasonhartman.com or search Jason Hartman on itunes. This show is produced by the Hartman Media Company, offering very general guidelines and information. Opinions of guests are their own and none of the content should be considered individual advice. If you require personalized advice, please consult an appropriate professional. Information deemed reliable but not guarantee.