 Good morning. Good morning, everyone. How you doing? It's Monday. Hey, what is it? August 2nd now? Wow. Wow. Look at us We have four months left you guys four months left in this year 2021 will be over in four months. Isn't that incredible? Wow. Wow. Wow, and we've got a lot of things going on here in California Yeah, we've got a recall race going Gavin Newsen our governor and we've got a we've got a guy that's I'm not gonna say he came out of nowhere, but Larry Elder. I'm supporting him. I mean, you know, look Let me just say something to my Democratic friends out there Do what's right for our state. Okay, do what's right for our state and Stop being so wrapped up in I've got to vote Democratic We had to do what's right for our state You know, I like me Kevin and I like Larry Elder So I'm gonna vote for one of them, but we need to recall Gavin Newsen Okay, mr. French laundry. We need to recall him. Okay. I don't like to get about getting into politics on this channel I'm not gonna I'm not gonna do that But I have to say we've got a really truly look at the honest truth about the job that he's done and it is bad You guys it's really bad here. We've got so many people wanting to leave 75% of African-American children cannot read at the right level at the right level at a right grade level 75% come on you guys Look at our fire situation. It's as Larry Elder said we have five seasons not four. We have five seasons here in California We have fall summer spring And winter and then we have fire season Isn't that crazy wow winter fall spring and summer and our fifth season is fire season You got to go Gavin you got to go. All right. Anyway, let's get back to what's what the channel is truly about Welcome you guys Welcome to dedicate it to financial literacy and what is my statement? What do I say all the time? Huh, huh? Let me hear it You cannot earn if you do not learn So whatever you do learn Get some understanding about the stock market get some understanding about investing get some understanding And apply it don't just learn apply what you learn get some understanding about budgeting Get some understanding about bonds get some understanding about our economy get some understanding about inflation Which is what I'm going to talk about today Get some understanding All right, I'm pumped up. Yes. I'm excited. I'm pumped up a day. You know what? I feel like there's good things awaiting us But we're going to go through some rocky times and we might as well And so today what I want to talk about today is I'm going to talk about inflation again So this is a probably a second tier or a second time where I'm essentially speaking about Inflation Because our government would love for you to think that inflation is on the decline or is transitory It's only here temporarily. That is not true. It is not true right now. Think about it Our economy is growing at about six point four percent Normally that would be wonderful, right The only thing is inflation is surging and it's about at five point four percent I know they would love to tell you it's at two percent three percent five point four go to the store Go to the store Here's a symptom that inflation is on the rise. What did you pay for last year? Last year For an item that you purchase all the time and look at the price of what you're paying for it now. I Want to encourage people to do that Take a log of your prices Find out what you paid for something last year that you normally pay for on a regular basis and see what you're paying for it now Procter and gambles already announced procter and gamble P&G which owns a lot of products They put a put they pump a lot of products out in the market, right? They're going up twelve percent 12 to 13 12 to 15 percent they're going up on our item starting in September most of the companies Out there that are pushing products out there in the market They're already going up. They said September, but they're already going up on their prices. Look at gas Look at okay, let's take a look at used cars My brother-in-law works for a dealership a used car dealership. He told me himself. He said yeah They're asked there. They're not going down on their prices. They're pumping them up You're paying more for a used car if you buy it now And I think as a consumer we got a strike back We've got a strike back. I know that there are items that you have to purchase So let me tell you how I prepared for this inflation this inflation surge how I prepared for it Months ago almost a year ago. I started buying I've started buying items that I need to purchase on a regular days of regular basis So and soap liquid soap detergent Paper towels Tissue toilet paper. I've got stocks of it piles of it in my garage. No and don't ask me where I live so you can come and steal it Here's what I'm saying September is not here yet. We got one month Start getting some of your items collecting and stockpiling. I didn't do it just for me I want to be able to help others as well. So my wife and I decided, you know, you know, this is not just about us our four no more But you know when it gets tough and people are struggling we want to be able to help So we're we've been stockpiling for a while items that will be needed I can't tell you how many bottles of large bottles of dawn. I have and Get the one that handles dish soap and hand soap You know, they have one it combines Save some money All right, I'll have to have another I'll have to have another channel or another show where I do where I talk about hacks How to save money during this time of inflation things that you can do to save some money All right Let's go back to talking about inflation Jerome Powell Federal Reserve Came out and basically said yeah, I mean in other to me. He's basically preparing us that they're gonna go up on the interest rates Now my wife and I right now we've been looking for a home, but we always keep getting outbidded We put up our offer and now they're you know, they're basically asking anywhere between 30 to $40,000 $50,000 $70,000 above the asking price in order to win the bid for that house And my wife and I are like we are unwilling to do that. I am not gonna spend a hundred thousand dollars Pay a hundred thousand dollars over the asking price and the house is not even worth it So then when it gets appraised Now they're asking for all these contingencies So the owner is saying, you know, I'm I'm Kate. I Have the upper hand here. I am not paying If you come if we come and get an appraisal and the appraisal is much lower than the asking price That difference is usually being paid by the buyer We've got to strike back and say no Take your time Don't just run out there and buy a home Now I will say this we do want them Under this conditions where the the interest rates are low get you a 30 year fixed get you a fixed loan That's fixed The interest rate is fixed Low as they are right now. That is the only advantage right now that a buyer has other than that the prices of skyrocketing 22 the 30% houses Year-to-date from last year to this year 20% more 30% more than what you would have paid for last year You guys inflation is here. I disagree with it being transitory. I Disagree with deflation Some things will deflate But as a whole as a consumer No, I'm sorry Inflation is here and it's gonna be here for a while. All right, think about this for a second Our president just is now he's pushing the bill to add 3.5 trillion dollars This bill for three third the infrastructure bill right 3.5 trillion to add to the debt We've already added We've already he's already we've already added 5.4 trillion This will make our this will make it our debt and listen to this when I'm saying 8.9 trillion we had 5.4 trillion that they already add they gave to gave to the consumer gave to everybody and look We needed to do that. I know there's some people that are upset about the government giving money to people People were struggling and the ones that say that usually are not struggling financially. They're on TV They have a job. They have a career but the everyday American was struggling and so I do think it right thing was to give but Somebody's got to pay for that and guess what it's probably gonna be my son that pays for it You know, so I get that part. All right So 8.9 5.4 trillion now they're trying to push 3.5 trillion that'll be about 8.9 trillion dollars and we're adding to the deficit Wow now think about this many people don't know this the federal government has already scheduled 17.7 trillion dollars scheduled it to be given The next ten years You do the math 17.8 8.9 Hello, that's about almost 28 trillion dollars added to the all already our debt Already the debt that we already have You guys keep this in mind our economy grows at about 22 22 trillion annually and We're adding all of this debt. I'm telling you guys we're headed we're headed for This is gonna affect them the stock market. I don't care what you say. We're headed for a strong correction And get ready prepare Get ready and prepare I'm not saying to get out of the stock market. I'm still in the stock market. I'm still trading stocks swing trading long-term trading But I also have in the market. I have leverage risk management So I'm already shorting I know people might think I'm crazy right now. I'm shorting the S&P 500 the Dow. I'm shorting right now Even though it's doing so well Record eyes of the Dow Jones today. I'm still shorting those markets I'm taking a big risk right now and I could be losing right now. I am loose Well, I shouldn't say I'm losing because there are other stocks that I have are doing very well, but I Also am preparing for a massive correction. I'm shorting a Nasdaq I'm not telling you to do that. I Am not telling you. Let me tell you this right now. Here's my disclosure I am not suggesting that you do what I'm doing do your own research Study the market study economics find out what we're doing as a country Where we're headed where we're leading listen to experts You're gonna hear some people say we're headed for deflation. You got other people saying inflation is going to increase Do your own research and come up with your own judgments All right, but I will say this I'm in the camp that inflation is here and it's going to increase I'm expecting here's another thing. I want to tell you you can call me the economist profit Here's what I'm here's what I'm gonna say to you Here's what I'm gonna say you watch me and what I'm about to say and see if this does not happen by the end of this year or the end of the first quarter of 2022 I really believe the feds are gonna raise the rates. I Would not be surprised if it even happens this year when that happens get ready The market will correct in a massive way 20 pops between 20 to 40 percent Be ready for that be ready for that But then after I after we come out of this next Economic issue that we're gonna be in I want to be using my words choose my words wisely The country is gonna be blessed again. I Am hoping for the best for my son All right But make no mistakes about it Inflation next year will be at around 8% You'll be paying much more for everything So stock up if you buy some deodorant Get a few extra every time you buy deodorant get a few extra You buy some toothpaste Get a few more boxes of toothpaste purchase you up a deep freezer stock up meat Store up some meat meat prices are going up freeze things Get ready We're in for a big ride But I believe that God Almighty still wants to bless our country This is a time I'm not trying to get religious on you Find a good church Get yourself in church as well. I Want to thank you guys Please continue to subscribe Subscribe to the channel hit The bell So you can continue to get content from me. I'm just getting to I'm just talking straight talk to you Okay, I don't have I don't have a bunch of notes and all of that. I'm just talking straight talk. I Want to thank you for joining me Dedicated to financial literacy Get ready America get ready