Personal liberty is deteriorating, the economy is on life support and can flat line any day now, governments around the world are getting crushed by debt, and it’s all getting worse at an exponential rate.
Out of these circumstances Sovereign Man was born, and since 2009 we’ve scoured the globe for information, solutions and contacts that help individuals and companies rise above the problematic politics of bankrupt nation states and the fraudulent and fragile financial system by diversifying elements of their lives across national borders.
It's financial suicide to bet your whole life and future on a single country, and so the Sovereign Man podcast covers everything from offshore banking and second passports to finance, frontier investing and international living.
107: Peter Schiff and I talk stagflation, $50 trillion debts, and more
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.
106: Central banks should consider giving people money
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.
105: How to get an education that empowers you for life
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.)
104: Taking matters into your own hands
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.
103: Podcast with Marin Katusa: The best gold investments to make today
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.
102: He retired at 35 – here are some of his investment strategies
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 SMC 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.
Where have the podcasts gone?
I’ve been listening for a while and wonder what happened to the podcasts? Great show when they put out an episode but disappointed in the overall quantity produced. Bring back the episodes please!
Recommended podcast for entrepreneurs and investors alike.
I’ve been listening to Simon when the podcast was new and Im only sad that they don’t post in a regular basis. Only great information and important topics are covered, a podcast for the man/woman of the 21st century.
US public debt and unfunded debt.
Your podcast bring knowledge and information we don’t get anywhere else. 22 trillion thanks and rising.