Justin Mohr Show

The sign of massive bubbles blowing up in the economy is evident with the cruise ship industry. This Royal Caribbean has came out with its new ship, “Symphony of the Seas.” It’s the largest cruise ship the world! This sort of event is consistent with the Austrian view of the Business Cycle. Listen to this episode as I explain why an economy booms and why it busts. Recessions are also the necessary correction phase to actually have a firm foundation on the economy. I explain all this here and more so don’t miss it!

The yield curve is continuing to flatten with 2 year treasury bills at the highest they’ve been since 2008! The yield curve inverting is a very strong predictor of a recession. So how much longer will this tightening cycle by the FED go on until this bubble pops and the inevitable happens? When this bubble pops, 2008 will seem like a nonevent.  Please protect yourself and be prepared.

The economic collapse in Venezuela has worsened and is now in the midst of hyperinflation. The average Venezuelan has lost 25 lbs. not by choice, but rather because people are starving to death! Folks, this is what 20 years of socialism gets you!  It gets misery and equality of misery!  The government doesn’t create prosperity, but rather gets in the way of it and makes it harder for you to achieve. When will people wake up and learn from history!? I won’t be holding my breath.

Under Republican President, Donald Trump, the $1.3 Trillion omnibus spending bill has been signed. This bill increase spending more than Obama did!  This spending bill actually increases the budgets to many projects that Obama and the democrats love! Seriously why are people still playing the party game when we are heading the way of hyperinflation and a currency collapse just like what’s going on in Venezuela today! Trump will spend 41% more than Obama did! Where’s the tea party for this one?

Federal Reserve has raised interest rates for the first time under the new fed chair, Jerome Powell, to the rage of 1.5% to 1.75%. The Fed and the “experts” out there think that the Fed will for sure raise rates 3 times this year but I wouldn’t be too sure about that.  I think there’s a good chance that the only other time rates will go up in 2018 is in December. Listen to this episode to find out my reasons behind this and what I think about Larry Kudlow as Trump’s new chief economic advisor.

President Trump recently announced a new 25% tariff on steel and 10% tariff on aluminum imports. Tariffs are a horrible policy and protectionism doesn’t work!  It might save a few jobs in the very short term but long term it’s a major job killer!  Protectionism makes our companies less innovative and actually leads to U.S. companies being less competitive overseas!  This is exactly what we don’t need right now!  Tariffs cause a lot of intended consequences and I mention many of them in this episode.

On Valentine’s Day, the worst school shooting took place with 17 people dead. Of course this issue has turned into a political football but there’s a simple solution…allow teachers to carry guns!  All of these mass shootings occur at gun free zones! We need to eliminate the gun free zones! It’s really quite simple because criminals don’t follow the laws. Passing more laws only disarms the good guys and we need the good guys with the guns!  So what is happening now in the political sphere in regard to gun control is the same B.S. these politicians are for another solution where the government needs more power and we need more regulations to “protect” us.  When will people realize the government isn’t exactly good at solving problems, actually they’re really good at making matters worse!

Our national debt is $23 Trillion and now thanks to the republicans who say they are fiscal hawks, $1 Trillion deficits may become the norm.  The first three years of the Obama presidency we had Trillion dollar deficits and that was insane!  That’s party how the Tea party came about but the tea party is dead! No one in Washington is serious about spending cuts. Obama doubled the craziness of wild Bush spending and now will Trump double Obama’s madness?  It’s looking like. Hold on to your hat folks.

I just got back from Singapore and man what an experience that was!  I really felt like I was in the novel 1984. Cameras are watching you everywhere, every little thing is regulated!  A car that costs $30,000 in the U.S. costs $130,000 in Singapore!  The government censors everything and there’s really no such thing as freedom of speech. I was almost fined $500 in Singapore! It’s not the Libertarian state many believe.

The dollar is at a 3 year low while gold is up 7% in the last 30 days. Bitcoin is off about 25% from its record high. 2018 is off to a crazy start but it seems that this may be a fantastic year for gold. Granted the stock market keeps hitting new highs but think of it this way…What’s the best way to position yourself in terms of risk to reward?  The clear winner is GOLD!!  Gold is still 20% below where it was 5 year ago! Hell gold is about 32% off from its all time high back in 2012!  Silver needs to nearly triple to get to its all time high in 2011. And if you invest in the gold and silver miners you make a multiple of what the metals do! I think 2018 is the breakout year for gold and silver!  I will keep you updated with the latest. Let’s profit from the inevitable.

Attorney General, Jeff Sessions, has rescinded the Cole memo and now has his own memo that will indeed go after the states that have legalized marijuana.  One of the few good things Obama did as president was that he actually let states nullify federal laws against marijuana. Now here comes the republicans, these guys who think their some small government types who say they love the free market, they’re full of it!  Both parties love their own form of Big Government and I’m sick of this madness from these party clowns!

Fed Chairwoman, Janet Yellen, has raised interest rates for the last time under her tenure.  This is the 5th time interest rates have been raised under Yellen. For that matter, this is the 5th time interest rates have been raised since the financial crisis began in 2008! So we’ve had near 0% interest rates for 10 years and the fed thinks it’s getting tight when interest rates are at 1.5%!? This is crazy! We still negative interest rates when you figure in the inflation rate!  We’re not in some miraculous recovery like most in the media believe.

The Bitcoin futures market is now open! What does this mean for Bitcoin now that people have the ability to short it? If you look at a chart of Bitcoin it literally goes straight up!  How long will this bitcoin bull market continue? In a two week period, Bitcoin went from $8,000 per coin to $16,000!  There’s definitely a lot of similarities between Bitcoin and the tulip bulb mania from the 1600s. People literally were trading their houses for a single tulip bulb!  What, you say this time is different? From what I have seen from history, this time is never different.

More sexual allegations have come out and the latest person to fall and be fired is the long time “Today” co-host, Matt Lauer. Every day it seems like there’s someone else! Also, Janet Yellen fears a boom and bust if we don’t stay ahead of inflation by keeping up with interest rates. This is more evidence that my theory on Janet Yellen is correct. And Bitcoin has recently went over $10,000 per coin and now even the FED is thinking about making its own cryptocurrency!  Lots to get to on today’s show!

The House has passed their version of tax reform and now the senate is working on their version of the bill. Will the republicans get a bill through by year end?  This bill has gotten a lot of criticism from the media now don’t get me wrong this bill has a lot to be desired to get a truly great bill but it does have some good things in it.  Most people are saying this bill only helps the rich, this is lie!  This bill helps every income bracket by reducing your taxes. But what’s more important than cutting taxes right now…it’s cutting government spending! All government spending is a tax so that should be the first thing addressed and I don’t hear anyone on Capitol Hill talking about it!

Most people think that China is largest holder of our debt and so everyone is very worried about China and if they decide to dump U.S. treasuries. But China isn’t the largest holder of U.S. Treasuries, it’s the Federal Reserve!  They own more than double what China owns!  Also, Trump has made his choice for the new fed Chairman, Jerome Powell.  Powell is not an economists but he really is more of the same and he seems like he fits right in the middle between a Bernanke and Yellen.  Protect yourself from the destructive Federal Reserve!

This Halloween the PC police are at it again so what you plan on dressing up as this Halloween make sure you don’t offend anyone!  If you are dressed up in the Donald Trump Wall costume that must mean you’re a racist that hates Mexicans! Or if you’re a man and dress up as a woman you are making fun of transgender!  I mean seriously what the hell don’t people have a life!?  Also, what really is the key to influencing people in your life and pulling them to your side?  There’s one factor and skill that if you master it, it can completely change your life and you will indeed change your life!  I just got back from the Contra Cruise and boy do I have a story for you guys… I literally almost missed the ship at the last stop. Imagine running down the pier to the ship as the horn is blaring and it’s about to take off and I’m running for my life… Yep, that really did happen. Let me explain.

I came across a piece and this lady is showing her “facts” that is supposed to lead the reader to the conclusion that free market capitalism doesn’t work. That it’s in fact, the countries with more government control that are seeing the most growth today and are experiencing the most prosperity.  This article is such a teachable moment and it shows how people with similar “facts” can see things in such different ways!  How can we become better at communicating our message?  The simple answer is… to become better at arguing for your point of view, you must first become a good listener. Thinking you can convert someone on the spot in all likelihood isn’t going to happen, we need to think long term. We all have our own, unique light bulb moment. The question is… How can bring someone to their light bulb moment of clarity?

Last week I visited Cuba and it was an enlightening experience.  Imagine going to a city where it hasn’t been improved or maintained for 60 years… Yep, that’s the feeling I got when roaming the streets of Cuba. Everything is just really old, musty and colorless. People that have the mindset that government can provide prosperity is very laughable indeed. The government only consumes resources and allocates them in a very inefficient way compared to the private sector. On the world index, comparing countries prosperity, Cuba is ranked 177 and closely followed by the basket case, Venezuela. The government only gets in the way of prosperity!  We need to get more people to understand this!

John Hunt and Doug Casey are back with the second installment of the High Ground Series, “Drug Lord.” John discusses how the war on drugs is a complete disaster and how the government has made matters worse!  Also, the problem with legal drugs and the revolving door of cronyism from the guys at the FDA! For many people out there, legalizing drugs still sounds bat crazy but looking at the system we have today…is it really that crazy?  Look at all the unintended consequences of government making drugs illegal.  Instead of things being above ground where it’s safer and you know what’s in the good you’re consuming, instead you’re trusting a drug dealer! What happens to people that are addicted to legal drugs like pain killers? They seek a cheaper alternative called heroine! This out of control drug war needs to stop! The war on drugs has made it less safe, not safer like the government wants you to believe!