How to Beat Inflation

0:00Welcome to the Real Power Family Radio Show, brought to you by Family Success Triangle. Where we talk about how we achieved financial freedom in two years by the time we were 30. If we can do it, so can you. We will bring you the people who can help you achieve financial freedom, time freedom, and location freedom. Learn how we integrated our business, investing and homeschooling into everyday life. Now here is the Real Power Family, Eric, Lila, Devon, and Ethan. Welcome to the Real Power Family Radio Show, I'm your host, Eric Warmer. We have Lila, Devon, and Ethan on this crazy Monday morning. And yeah, let's talk. Last way, I want to do a couple of corrections from Friday's show. One, they had fed, did raise the interest rate at quarter point. So now we're in the range from three and three quarters to four percent. And I'm sure we can talk more about that. I just wanted to throw that out there that I didn't have that information when we recorded

1:03Friday's show because we recorded on Wednesday just before they announced it. And as for that Bible verse, I was almost correct. It was toothalotions three, but it was 10, not 18. They're even, or 19 or whatever I said, they're not even 19 verses. But do you remember what that was, Ethan? It was. No, I don't. I don't want to miss. First, man, it's like, if you don't work, you don't eat. For even even when we were with you, we gave you this role. Those who do not work, shall not eat. I believe it's what it is. And there's so many people. I mean, you can see the idiots on TikTok or whatever saying that, oh, I don't want to work. I just want to bang on my drum all day. Oh, wait, no, that was a song. I just want to sit here and get free government money. And that's getting outrageous. I mean, at the personal level, all the way through the company level, through the corporate bailout level, it's just everywhere.

2:04We're $40 a million in debt. I'm tired of them giving away our money. And I think that we, we're taking steps now that show me we're getting closer and closer to this crisis becoming imminent. So I'm stocking up. I mean, there was somebody, maybe Rick Rool. Yeah, that's what it was. I don't know if he predicted, but he said there's a decent chance. Might have been closer to the words he used that you're going to see 75% inflation between now and 2030. So that takes us back. Remember what it was like in 2020 and we had like 9% inflation a year. That's what they admitted. But imagine if you were bringing in $3,000 a month from your retirement, you worked. And I remember when we set this up, multiple partners of mine said, I just want to get $5,000 a month. I can live comfortably on that.

3:04And well, the one, he's no longer my partner. But the other guy who said that he's getting a check for more or less 5,000 a month. Sometimes it's seven grand. You know, if we pay property taxes that month, we might not get anything. But we both don't have the company. We're both getting like 5,000 a month. And that was our initial goal, right, Lila? Absolutely. However, inflation. If we could just make 60 grand a year, if we had 5,000 in gross rents coming in a month, then we'd be totally set. And then I realized there's a lot more that goes into it than the gross rent. Maybe the net rents. If we just had 5,000 in net rents, then we'd be different showing net and gross. You should know the difference. Yeah, but I didn't get that in our first couple of months of investing. I grossly underestimated the operating costs of owned property grossly grossly.

4:07So when you take the gross operating cost that I grossly underestimated away from the gross rents collected, you end up with a very pathetic net. But now I'm focused. I literally am in the process. There's stuck three lenders. I'm paying off three more loans. They would have been paid off next year anyways, but I don't know what the hassle of the paperwork for paying on them for five, six, even 10 months. I just want them gone. And I called my partner. I'm like, hey, we could take our $10,000 pay out, $5,000 a piece. We could pay off this loan for almost $7,000 grand. And then we make an extra $450 a month. And I said, or we could let it ride until next November, it's paid off. He's like, pay it off now. Let's get this done while he still has a job because when he retires, he wants to make sure that he's got five, six, seven thousand coming in a month. And that's wonderful. If we have that 5,000, but what would it be like, Lila?

5:11If we had five grain coming in and everything. And now that's, I can't live the life I could have lived on 5,000 a month. Now, we need 10,000 to do it. But you realize just in the last six years, we had a 40% decline in purchasing power. What if we had a 70% decline in purchasing power? What if it was twice that bad? Wow, that would be rough. Yeah. So now I'm thinking, I don't need 50 or 60,000 to live. Really, really happily, I need 120 net income a month. And that, I mean, most people, maybe not in California or something, but certainly in the Midwest, that's a pretty decent income. But what if they do this again and it's twice as bad? That means it's cut in half and then cut in half again, which means it's going to take 20,000 dollars. And that could go to 40,000 if it's cut in half again. And the government doesn't show any signs of slowing their spending on slowing how much

6:14they're adding to the monetary supply. If you are looking at what they're doing, they're leading us right into that where we are going to see exactly what you're talking about, Eric. And this is why I wish everybody could hear our radio show and understand for if people understood inflation, there would be riots or a government overthrow by tomorrow morning. Let us paraphrasing Henry Ford. Yes. Yep. The thing is we, Worsh was put in, he was installed in power, Trump made, you know, a big spectacle like he always does of replacing the guy that he actually put in their Jerome Powell in his first presidency. And when after somebody else from Mortgage Fraud, which is nothing they didn't do to him, they gave him the playbook, he just did the same thing. And I don't know if you ever got that lady off the FOMC or not, I really don't care. He brought in and it was during the confirmation hearing somebody that I like, meaning probably

7:17a senator or congressman from Kentucky asked him, hey, can I, oh, senator probably for confirmations said, can we count on you to be a political? And yeah, I'm going to follow the math, not the politics was very generally what that conversation was. And he actually is, but the thing is politics also plays into the Fed is supposed to be a branch that's not affected by the government by politics, but it absolutely is. And it's going to be unbelievably difficult for them to raise rates six weeks from now. It's like right immediately before the election. And they almost never do that for either party. Okay, they don't sabotage either party right before the election. So raising rates now, they could literally look at it and say, no, we're on the Republican side.

8:17If we don't raise rates now, you've already got six, do you know diesel? I looked yesterday was pushing over $7. And I mean, my credit card or the gas station, one of the two cut me off at 150 bucks, we had to fill up that gas tank three times, didn't we, Lila? Yes, because it stopped us from going much further. Yeah, it would only let us put 150 dollars of fuel of diesel in at a time. And we were trying to buy a hundred gallons. And I'm like, okay, 450 bucks, that's third cut off. We're close enough to full. Let's just take it here. It was only five something when we were filling that up in Tennessee. Yes. Here in Ohio, just two weeks later, were it what, six, seventy nine maybe for diesel? It's around there. Yes. And I mean, I don't burn that much. It's so not going to affect me that, you know, under $500 and fuel is going to last me for a year probably as much as I drive the tractor there.

9:21Yeah, but look at all these big trucks that are hauling things for Amazon or Walmart or a lot of the grocery stores and other places we purchase from. Yeah. So only a few buy from Amazon, like my mom is going to be devastated and my children aren't going to be in great shape, but thankfully they make money. They're not old retirees on a pension, right? Not to my knowledge. Not to your knowledge. Mom's not doing too bad. She might have to turn off a light bulb or two to pay your Amazon extra fuel bill. But yeah, if you look at it, if you're not buying Amazon, then you should be fine. You won't be affected by diesel as long as you don't need anything else for your house, like food. Yeah. Like Florida, Florida doesn't grow a whole lot of crops. So a lot of their food is shipped in. They're going to see a spike in prices down there from all of this. And let's not forget that's going to be affected again. We have used up the petroleum reserves. So when I said over and over, we're going to hit a wall.

10:21Well, let's look at the walls. We hit they cut off a massive percentage of the energy coming to be used by the planet earth that couldn't pass through the straight of hormones. Then they said it's almost close. And it doesn't matter. We still had 60 days. We had two months of all of this fuel in cargo ships, moving to where it need to move. And then that got there and they opened up. So the barrels of oil, they've went up significantly, but it's not outrageous. And people keep comparing because they don't understand. It's like the net operating income versus the gross operating income and real estate. I didn't understand. I just thought, I own a house. They pay me $600 a month and rent. I'm good. I get to keep most of that. I got to be property taxes and insurance. I didn't understand how many other bills or how much property taxes and insurance could go up. And once you factor that all in now, I'm bringing, I'm renting the same house for a thousand

11:27dollars. And for many of them, we're not making as much as when we rented them for 600. That's the same with diesel fuel. There's two parts. You need a barrel of oil, but a barrel of oil is absolutely ridiculous. It's totally useless. I mean, I just ordered a 55 gallon drum of oil, but it's processed. It's not crude oil. If I had a barrel of crude oil, it would be useless to me. I need it broken down. I need it cracked into something that I can use. And that's the other half. That's the operating expenses. Once you have the barrel, you've got to make it useful. And we literally just had we apparently, our government told the Ukrainian government, you know, the one that we've kept alive, the one that we have given hundreds of billions of dollars to the one that we gave all these weapons to, we're feeding them information to pick a fight with the nuclear power, which is always seem like an idiotic idea. And we told them, don't go after the Russian refineries. And they went after the Russian refineries.

12:27We asked what when Israel blows up refineries and Iran, Iran blows up refineries in all of our allied Gal Gulf states. And Ukraine is blowing up Russia refineries. We're hurting until we can retool our own refineries here, which is not necessarily going to help the rest of the world. It might help Americans. It may or may not help candidates, Canadians. Maybe they'll be like, oh, we should make friends again and pay the higher tariffs because they have energy. I don't know what's going to happen, but I do know that the refining capacity is what is driving up diesel and diesel is going to drive up everybody's cost of living. And I think the Fed is preemptively raising rates to get back. This does two things. It gets banks to lend less money and it makes it harder for consumers to borrow money

13:29and inject it into the economy. So when you do enough of that, you're going to have less travel. And if people are traveling less, if they're buying less products, then there's less demand. So the way they keep inflation from consumer price inflation, from going outrageous is to ruin your life until you can't go on vacation or buy anything new, other than the absolute bearing necessities. So that's what you're giving up to keep prices down. One way or another, you're going to get less of what you want. Either that or with the amount of dollars into circulation, which will hit after this break as I'm way over to with the amount of dollars in circulation, we are going to see consumer price inflation go up so much that your $5,000 coming in from your retirement only buys you $1,250 for the stuff. To put that the opposite way, it now, what you used to be able to live on at five grand

14:31and now cost 10 grand a month, it is soon going to cost you $20,000 a month. Has your retirement check gone up that much? If you're 55, if you're 60 and thinking about retiring, were you planning on bringing in $5,000 or $10,000 a month? Because now you need 20 to live that same life. What are you going to do? How many more years you've worked for 35 years of your life so far, you're going to put in another 35 to double it. And by then, what will inflation be? Good question, scary, but if you stick your head in the hand, saying an ignorant, you will certainly not be prepared. So hopefully people open their minds and think about this over this break. I am Ethan Wollwin from the real power family. My book, The Treehouse is a story about a group of teenagers looking for a place to their own with some scrap wood and a lot of help from their friends and neighbors. They built a tree house relationships and a dream that turned into a business. Get a copy of The Treehouse by Ethan Wollwin on Amazon today.

15:35And don't forget to listen to my family on the real power family radio show on the Brushwood Media Network weekdays at 7 a.m. Eastern time. Welcome back to the real power family radio show. Dad brought up before break if the inflation rate keeps going this way. Well, what do you think your future is going to look like? And dad, what can they do about that? Let's first ask Ethan why is it? What is the truest measure of the future inflation rate? What do you mean by that? What is inflation? Inflation is an increase in the monetary supply. Who increases the monetary supply? The Federal Reserve by printing more currency or more US dollars. But not really. That's an effect. What's the cause of them having to print more dollars? They have to because the government spends more than they bring in whether on well, a bunch of different things. You can go to us. That clock dot org and see some of the big ones, but Medicare, Medicaid,

16:39the war defense, social security, stuff like that. Interest on the debt is now on the major one. It's one of the highest. Yeah, it's over a trillion. So with Worsh and the Fed raising rates, we're refinancing and it's ridiculous. We're paying off and it was a trivially amount, but we paid off long term debt at a very low rate. So we could buy it back for short term debt. So what Trump is doing now is, is just as bad as what the Democrats did before him. Only they could have rolled over and issued a whole bunch of 30 year notes at point one percent, you know, point five percent under a percent. And they didn't. They issued all these short term notes. It was absolutely ludicrous when you, when you have that much, I mean, we didn't need the money, but we went out and borrowed millions at dollars because inflation was like seven and a half percent and they were giving me loans at four and a half percent.

17:42Like even an idiot can figure out how to make a negative two percent return and make a money on that when you have a three percent arbitrage between inflation and the interest rate you're borrowing at. It's just like you don't have to be any good at investing. And everybody, I don't know. Everybody was saying bar as much as you can for as long as you can in 2007. And an awful lot of reasonable operators went broke them. But nobody was saying that in COVID when they were literally paying you to take money. Now, obviously you have to know what to do with that money. You can't just stick in your bank account where they're paying point one percent and pay four and a half percent interest. But if you're buying hard assets that are going up in value and we could have just loaded up and done nothing but by gold or silver and we would have been in great shape. We could have loaded up on Bitcoin. We'd have been in great shape. We could have load up on real estate. We'd have been in great shape. And instead we got a good diversified portfolio of all of those things.

18:47And if you think you have a diversified portfolio, if you think that's important and everything you own is in the stock bond and mutual fund markets, that's not diversified at all. That's just paper. I don't care what sector it's in. I don't care what your broker tells you read my latest book, Devon. How can they get the book? They can go to realpowerfamily.com and your new book, which I'm linking on the name of making a fortune investing and how to keep it for generations. And it's really about how to keep it for generations. Okay. It tells you how I think when I invest and why my children were millionaires before they could legally drive. Okay. I taught them. I didn't give them any money. I taught them and show them that look, it doesn't happen overnight. It's not garbage quick. Put your head down. Keep doing this. And then when you make the money, distribute it to these areas for these reasons and the

19:50amounts that you put into each asset might change over time as you get older, as you want to work more or less. If you totally failed at retirement, I'm not going to say that you should go out and do this like stock workers like it's say, oh, by the time you turn 40 or 50, you should be doing more of this. But when you're in your 20s and 30s, you should be doing more than now. If you're a failure at retirement like me, then you can count on working. I'm 50 and I might work front on the 20 or 30 years. I don't I tried retirement. I didn't like it. It didn't fit you. No, your mom almost kicked me out because I was bored. And when I get bored, I do really crazy. It leads to my death or divorce, neither of which I want. What's your problem? So I keep working and growing different businesses because it keeps me occupied and a much nicer person to be around, right? Ethan. Yeah. Yeah. So you got to think about where are you personally?

20:53Are you like me or are you really like the guys that I used to work with the high school that I just found deplorable? They're they're teachers. They've been teaching for 40 years. And every morning I walk in and I have all these overheads. Yes, I used to an overhead projector. It was in 2000. I had these overheads copied for me because I hand wrote, I wrote all the notes, typed them up. And every morning, I need more of this made because I was setting up to be a teacher for 10 years. I had the whole system. Everything was set up. And that's how I do everything. You do it once and you make sure it's good enough to last for a decade or three. And I didn't know I was only going to be a teacher for a year. But I'd go in there every time I walked into the basically, you know, the morning lounge or whatever they call it right beside the office to get to my mailbox, grab my stuff and go up to my room. We get started working. These two old guys are sitting there and they're like, would you like a cart? What are you talking about?

21:54Like just practice and can't wait. After this year, I'll be a Walmart greeter. What was wow. And that was their goal in life was to become a Walmart greeter and not teach anyone. I'm like, how awful must your class be? You're just skidding through. And this wasn't the beginning of the year. They're saying this is not even the last two weeks. Wow. Yeah. I always have to be accomplishing something. Yeah. Thing of value. So you get a friend who you are, not just how old you are, but where you are in life and what you want out of life. Do you want to grow more? Do you want to work more? If you want to get rich and not work, then don't read my book. It won't help you. If however you want to know what is the most logical way to do things? How does Eric do this? And my way is not good for you unless you're exactly like me, which nobody is. Nobody has exactly my traits and ideas. But you should be able to learn enough from it that you can make good decisions for yourself as to what would be good for you.

22:56Right, Lila? Well, that's why I like your book. It talks about the different asset classes and what could be good about them, what could be bad about them, what you might want. If you want this direction or if you may not want it, if you want this other direction, like you give them both sides of the coin for each of these things. So they can make intelligent decisions for themselves. Right. And to get that book over this break, just go to realpowerfamily.com, click on the store page. And yeah, I hit it from you. I'm not going to put it if you can't take 30 seconds to click a couple of things and scroll through. Then you're not going to take three hours to read the book and you're certainly not going to use it for the next 30 years of your life to make your life better for the next 30 years. So go to realpowerfamily.com, go to the store page, scroll to the very, very bottom. It's not hidden anywhere in there and click on the $25 book. And then don't type in your credit card. I don't want your credit card number. I don't want any money. Just type in the code under coupon code, type in radio.

23:59Again, you don't need to give me your credit card. This is not one of those. Try hate that. When people are like, oh, just give me your credit card and it's free. But in 30 days, we're going to charge you 1995 a month until you realize it's on your statement and call up a cancel. And then we're going to tell you that now I don't do that crap. Just type in code radio. Do not put anything in under credit card. I don't know how to remove that or I would have already done it. And we're not even going to send you any email. You got to type in your email address so you can get the free download. But if you want to be signed up for the newsletter, click the box. Yes. If you don't leave the box empty, it's just free. And we have downloaded more of these than I think anything else I've ever given away. So apparently people are liking it. Once again, type in coupon code radio on the store page of realpowerfamily.com over this break to get your free book. Every parent wants their kids to be successful. And today's world, getting them the right knowledge to do this can be a challenge.

25:01My husband and I decided to homeschool our kids and give them a financial and real world education rather than making them memorize things they would probably never use. Our results are kids who became financially free before they could drive with no money or credit from us. Now at 16 and 13, they co-host our real power family radio show and Devon is in his 30 year of college. How can you give your kids a head start like this? Check out our book, Family Success Triangle, which outlines the lessons we taught our kids. We want you to achieve amazing results at any age. Get your copy of Family Success Triangle on Amazon today. And be sure to subscribe to our YouTube channel at Real Power Family. And listen to the Real Power Family Radio Show Monday through Friday at 7 a.m. on the Brushwood Media Network. Welcome back to the Real Power Family Radio show. We've been talking a lot about investing and inflation and Eric had just told you how to get the free book. Secrets to making a fortune investing and how to keep it for generations. Eric, do you have more on inflation you want to talk about? Yeah, I think that keeping it for generations is the most important thing we can do.

26:05Hey, you might just be able to keep it for the next decade. And if you could keep your purchasing power more or less intact for the next six or eight years, I think we're going to wake up in a totally different world. I don't know when, but it's going on right now. It's been going on since 2020. And I don't know when it's going to end, but I've put a marker somewhere around 20 30, pretty close to that. But I would say if we get no way this is going to go on with this much turmoil to 2035, I just can't see it lasting that long. So if we can just make it through to 2030 or 32 and have most of our purchasing power intact, I think we're going to be in great shape. And the thing is if you're like, oh, we'll all just wait till that, then you're starting over from scratch. You know, if you're 19 cool and cool, you can wait time your life. But if you have any retirement, if you have any stocks, bonds, mutual on 401Ks, if you're invested in real estate,

27:05if you got a little bit of gold, silver Bitcoin, any of this stuff. Now is the time to think and think hard. Maybe you're already set up okay, but you really should consider how is this everything bubble going to affect me? Because I promise you're going to feel the pain. And if you try and hide your head in the sand, well, it'll probably destroy what little you have put away for retirement and cost you every dollar coming in just to pay for the higher food prices, the higher price of everything. For over the next year or two, I don't know how long it'll last, but certainly for months. And they'll try and make it better up until the election. But I just don't see it being good going through this winter. I would hate to be a European. Do you know that we've drained the strategic or petroleum reserve in America, but a lot of other countries have their own reserves and many of them are significantly lower than they should be or have been in a very long time.

28:08Because they fill them up and use them for the winter heating. Wow. And they haven't done that. Some of us political, I think Germany is very political and they're going to go green, even if it causes all of the German citizens to freeze to death. And they're just so many bad decisions. And there's a lot of political parties that they're calling extreme right wing. They're just maybe they have extreme right wing ideas for a couple of their thoughts. But most of them are just being logical. We can't keep in the winter with solar when it's covered with snow. We can't use windmills when they're frozen. And I think that you're going to see they just had this. If you talk to a Brit, Dominic Frisbee, he goes, I can't believe that they could ever let themselves in a generation with working memory. Get back into this spot like we were. And it maybe was the year 2021, 20 or 21 right in there that year.

29:12He goes, I can't believe we had such a horrible winter. You know, prices went up so much. I think it was one of the problems. I can't believe they let this happen again. And here it is just five years later. And it's happening again. So we're going to be tested. You're going to be stretched. And they are going to use up. If you had any disposable income, I hope it's a lot because you're going to spend a lot more of that on food. And I'm just thinking, what would I do if I was one of those retirees that only had three to five grain coming in? What do you get a lot of people living off of so security? Yes. Nothing else. What are the people that rent our small houses and apartments making, Lila? Usually in order to qualify, they need a minimum of 1500 to 2000, which that's hard when you've got only so security. Some of these people only get $972 a month. I don't know how they're going to make it with the way things are going. I have no idea how you can live under $1,000 a month. I mean, when I was a kid, $1,000 a month, I wouldn't know how to spend that much money.

30:17And now look at the price that we're paying for things. And the reason that is is because the government keeps spending more than it has. And you can argue about, no, we have to stand behind Israel. Great. Stand behind Israel. You set them your after-tax dollars. Don't send my tax dollars there. Oh, well, we need to provide health care for all these illegal aliens because they're humans too and they deserve it. Great. Then why don't you move one into your house and you can take them to the doctor and pay for them. Don't use my tax dollars for that. And hey, abortion is a right. It's the female's body. Okay, forget about what I feel about that. I know for certain that my tax dollars shouldn't be paying for your abortion. I heard a girl on the internet last night. She's like, well, if you don't want your liver to be ruined, then just don't put alcohol on your system. But that's different. This thing is in my womb and I don't want it there.

31:19And I'm like, yeah, well, there's something you cannot put into you and not make that thing in your womb. And you won't have that trouble. So if you don't want to get cirrhosis of the liver, don't drink excessively. And if you don't want a baby in your womb for nine months, well, you can figure out what you shouldn't be putting into your body to create that too. That's probably inappropriate for this show, but that just disgusted me when I heard her. Sorry, honey. Well, I think it's you everybody loves you because you're real. And I'll say to your comments when she was saying this last night, I was laughing at it because you were just saying it the way it is. And she didn't even realize. And unlike she's art, it was like the lawyer in our Supreme Court case that was on the city side ago. Did we bribe him? Like we're sure you're on. You ain't eating my point. Do I not understand? Am I that naive? Am I that stupid? I swear he's arguing on our side, right? Ethan? Yeah, some of the stuff he said, oh, do we have that recorded?

32:20Is that up somewhere? That's linked on the website somewhere. If someone gets, if one of the listeners gets bored and once a laugh, you should definitely go and listen to that. Because the test is like 20 minutes of lawyers talking, but it's the most fun 20 minutes I ever heard a lawyer talk. Sorry, go ahead. Except for maybe John Hire, but except for him, yeah. Other than it's hilarious. And if you do want to listen to it, it's on the homepage. Pretty much right at the top, it's pretty easy to find it. Okay. Yeah, realpowerfamily.com. So yeah, I know the top of the announcements page, top of the announcements page. That's what I thought. I know. Yeah. I thought this lady was arguing the point. I'm like, but why don't you just sing your fore abortion before, but now you're arguing our point? I don't get it. So people are so inking. If you can't tell which side they're on, they're incongruent. If you were talking incongruently, that caused difficulty in my marriage.

33:22I was so incongruent. And it caused difficulty in my whole life, up through it, including when I first got married. And I remember when my mom came up to me, she goes, I don't know what it was. The military didn't do it to you. But whatever you went through with this peak potentials thing, it's changed you. And I think if I could put into one words what they changed in me, it was congruence. I could take a step back, see the big picture and realize what I am saying, whether it is right or wrong, is it relevant? It is not helping me get closer to my goal. It's getting me further away. So shut up, Eric. And let them win the argument so you can get closer to the end goal. And I think more people need to do that. Not that I would expect that from some random people on Instagram. Let's take a quick break. We'll be right back. Brushwood, media network. Have you or a loved one been affected by inflation? Yes. We have the product for you. Hard assets that hold their value like the real power family still for

34:23round are available at American Gold Exchange. You can visit American Gold Exchange at AMERgold.com or by calling 1-800-613-9323. Welcome back to the real power family radio show. Dad, you were just talking about congruency. And how many of people, many people, will either say two different things or they'll say one thing and do another. But how much does that say add to cognitive dissonance and you can explain what that is? Probably better than I can. That's okay. You brought up. You all can explain it. Uh-oh. I'm having a belief. Two contradicting beliefs and maintaining your sanity. There's a short easy explanation, I guess. But the bottom line is people don't have two beliefs.

35:24They... Okay, there's a cheesy sign hanging up in my barber shop that says, never win a fight with your wife. Your wife might get worse. And I don't believe in these stupid gender rules where, you know, we make jokes about the woman's always right. Yeah, she's right sometimes. Shut up and say, yes, ma'am. And not always. And I don't want to make jokes about things that aren't true. But that cheesy sign kind of explains it that even if you're right, anyone, the argument she might just be matter and your life might get worse. Lyle is not like that. I can't relate to that at all. We get bent out of shape. We get mad at each other. And generally, if not immediately, she's like, just leave me alone. I'm going on my room and she goes to a craft room or whatever room she goes to. And she just needs to be alone. And me, I'm like, I'm going outside. And sometimes outside means I jump in an airplane and fly around in circles for a while.

36:25But then I come back after I have my emotions under control. And we're like, okay, let's sit down and talk this out. Yeah, because when emotions go up intelligence goes down, you end up saying things you don't mean. It causes more problems. It's better to walk away for a little bit. Calm down. Start looking at facts versus feelings. And then you can actually have a logical discussion. Yeah, and how many people sit there and be like, no, I got to get my point out right now. Trust me, you can have the greatest point in the world. And that's how I know I have evolved because there are times, not 100% of the time, but a whole lot more. I'd be like, Lyle, it doesn't matter what you say, even if you're right. I'm not in an emotional state to absorb it. It was like Devon, you sent me this thing. And it's probably exactly what I wanted in your last email. But you've wasted my time with three emails trying to get three different estimates for the same job. Instead of doing your job and saying, here's the two estimates that I got.

37:29You just blindly stamp. That's where wasting $22,000 on your property. You're literally paying more to clean trash out of a house than you are to put on a huge really steep slate roof on a duplex. That's outrageous. Are they going to fix the basement foundation wall in there at the same time? It's no way I would have ever approved that. Thankfully, I don't own any part of that company. No, I just don't have the bandwidth. So I figured we'll do a radio show. I'll go out to eat. And whenever I feel like it this afternoon or first thing tomorrow morning when I'm fresh again, then I will look at your third attempt to get me an estimate, which is what you should have sent the first time. But I knew I was not emotionally stable enough to review that estimate without saying something mean. So I just ignored it until I'm in a better frame of mind. Would you like me to tell you? Okay, so we hit on the Fed had to raise rates a quarter point.

38:34Now, I don't know what the vote was. I'll look that up later. But if they were going to do it, it was significantly more likely to happen last week than immediately before the election. This they can at least pretend to like they're trying to compound inflation. They're not. It's grossly overbore. I mean, it's 3.4%. And the only reason the labor rate looks so good, which it looks really, really good. That's been their excuse. It's because so many people just quit applying for unemployment. We don't have that many more people working. We just have less that are trying to find a job. And I think you're going to see more and more fall out and start working in under the table. It's just getting too bad with taxes so high and inflation so high. People are going to start cheating the system more and more. And I think their tax receipts are going to go down. But that happens every time you get above a certain point. And I wonder if it's going to flow over from these outrageously high property taxes

39:37to people saying, wow, I pay now, I pay more from my mortgage. I pay more for property taxes each month than I used to pay for my mortgage each month before I paid it off. And more and more people are waking up and realizing, you don't really own your own home if the government can just come and take it from you because you don't pay them rent every single six month period. And so yeah, if you haven't already, check out our website. It's the first thing on there. Go to Axel Hiotax and figure out where you can sign the petition to get rid of property taxes if you are a legal and registered Ohio voter. And I know our group is working with multiple other state groups. So if you wonder if your state has something going on, you can email the people there and let Brian deal with it or whoever's email addresses on there. Or you can email info at real power family and we'll we'll go up with who you need to talk to

40:38if there's something going on in your state. We can I'm sure Lyle can look it up for you. Like I have a lot to show you honey. That's fine. All right. The way the way money the way inflation has caused is an increase in the money supply right Ethan? Correct. And we talked about the first thing is the government spending money. And I would say that you can also loan money into existence and I'll go over how that works. But the bottom line is if they raise the rates on loans, less people want to borrow loans. If they raise the short term rates, they want to bar less people on a bar of money. The less people take loans. If they raise a short term, the overnight rate, which is what the Fed controls, it incentivizes the banks to not loan money out. So the higher it gets, it doesn't mean your mortgage rate is going to go up. It means that, well, I can get 7% if I take all this risk and give you a 30-year mortgage. But I can get 4% overnight just sitting in the Fed.

41:40So why would I take risk and loan money out for 30 years when I can make 60% as much just letting it sit there and do nothing? So the Federal Reserve is disincentivizing the banks from lending to you. If they don't lend to you, you can't buy that new house. And housing prices are starting to fall. Hopefully, property taxes start to fall. But no, they have three years before they have to look at that. They just jacked them way up on their reevaluation year. So if you can't sell your earth, even if you can, if it's getting cheaper and cheaper to buy a house, what good is it if no bank wants to loan you money? There are not a lot of people out there with a list of private lenders they can call. And I mean, look at us. We've got enough cash flow coming in. And I haven't bought that many houses. I know Devin just closed on another one he told me this morning. Didn't even know that one was coming out. And unless you're actively out there looking and how are you paying for these?

42:44You've still got money left over from your last bank refund? I still have a little bit left from that refund. See, I'm still using that. Okay. And I know I'm paying off a bunch of lenders. You can easily call them because I'm sure some of them want to reload. I know one of them's already emailed me, Hey, I got all this money sitting there when he's going to borrow it. But that's the retirement. I mean, they're getting a nice return and have been for decades from me paying them all this interest on their retirement. And now they're like, uh, Eric's slowing down buying. So I will use that money. When prices go down enough that I think it's warrants spent, you know, buying more faster. But right now I'm not going to, I just have the thing against taking alone to buy gold or Bitcoin. So I am reevaluating, but I really don't want to borrow money. And that's almost all the free cash flow we have. I'm dumping into gold, silver or Bitcoin over the last year or so. And we bought a couple of houses, but nothing. Devin's bought more than me for sure.

43:45So a lot of this is talked about in the free book. Remember code radio to get it for free. It's on the store page at the bottom of realpowerfamily.com. Any end you, if you look at it, the way we have inflation is not only the lending lending dollars into circulation through banks, but everything the government spends. And that's the easiest thing that you can measure. The Fed doesn't really have any control over that. They have to monetize the debt because we're running out of buyers. And we're just like, oh, we're friends with Japan. And so we'll give them hundreds of billions of dollars. Next time you overdraw your credit cards or having troubles and you got all this money in the bank, you could pay off the credit card. Are you going to just take the money out of your savings and pay off your credit card? Are you going to call up your friendly uncle? Maybe his name is CM. I'd be like, hey, can I borrow a couple of hundred billion dollars to pay off my credit card? Or maybe your uncle just calls you and says, no, no, no, don't take the money

44:45out of your savings account. You need that reserve. Let me pay these bills for you. You put up on your credit card because that is what the United States just did for Japan. It's not even one of our citizens. We just paid all this money so they didn't sell the bonds. Why? Because we're two and are connected. If they sold the bonds, we talked about this in another show. Then it would have spiked the long term rate. So now we're in such a bad position. Then we have to bail out other countries. This is the ones that because China's already selling our bonds, letting them mature. We have to make sure our allies don't sell our bonds because that's going to make it worse. So what are we doing? We're selling more short term bonds and making an act like we're buying back the long term. But it's only a teeny, teeny fraction of a percent of it doesn't make any difference. It's just a publicity stunt. Then we're buying Japanese or giving them more money. If you look at the increase of what the money supply is, of what the government is spending,

45:50that is around seven percent. And I think that is the most accurate view of what inflation will be to answer the question I asked Ethan 40 minutes ago. So if you look at how much the government is spending, that's not necessarily the inflation rate today. Although I've said a pretty good guess is double the CPI. And if the CPI is 3.4 and you double it, that's really close to 7 percent. Right? At 6.28 percent. I think we're really close to that. If you look with the government spending, increasing the money, they spend 7 percent more than they bring in year over year. And it might even be close to maybe it was 7.8. The last I look, but it's right around in there. And the 7 to 8 percent range. That's what you're going to see stuff going up. That means to make it easy, it's 7.2 percent. Every 10 years stuff's going to double. So in my example from before, let me get to that right after this final break.

46:56We'll be right back. In Ohio, property taxes have skyrocketed. With recent budgets ignoring the crisis, forcing families and seniors out of their cherished homes, it's unfair. No one should be evicted from their lifelong investment. Support our constitutional amendment abolishing property taxes, making school funding fair and constitutional for all districts via state dollars, fire and police stay fully funded. We'll shift to consumption and income taxes with smart legislation ensuring gradual phases and no burdens on low income families. And best of all, it ends corrupt developer giveaways, politicians fear losing. It's time to force politicians to prioritize the people of Ohio. You should own your home free and clear. Sign the petition today for the 2026 ballot. Go to citizensforpropertytextreform.org to learn more and join the fight. Welcome back to the Real Power Family Radio Show.

47:57And dad was going to go for an example after the break. Yeah, just from just before 2020 until now, it's basically costing us twice as much to live a happy life. So when your mom and I thought we could live a great life on 5,000 a year, we really could have. And now that 5,000 is $10,000. Excuse me, a month, $10,000 a month. But we can expect in the next 14 and a half years, let's see, 7,000. No, and then next 20 years. So we should certainly still be alive. I mean, you'll be about to turn 70 and I'll be just over 70 in 20 years. And if we do that, it's going to, we've got a double it twice. It's going to cost us $40,000 a month. That is so unimaginable right now that it to live a life that would have cost me seven

48:59to 10 years ago. I mean, during your lifetime's boys, it would have cost me five grand to live a pretty decent life. I'm not flying fancy airplanes or anything, but I can certainly live in a nice house and drive a nice truck and eat out when I want to on $5,000 a month. That could cost at the rate we're going. This is not even with expansion. This is not with a crash. This is just with the inflation, with the dollars they're spending projected out 20 years from now, it will be $40,000 to pay for that. It will have gone up almost 10 times in a 27 year period. And this is what so many people don't understand. They get frustrated when they see costs going up for them, but they don't understand where it's coming from. I think that's why Henry Ford's quote about it's, it's well enough that people of the nation do not understand their banking and monetary system. For if they did, I believe there would be a revolution before tomorrow morning.

50:01He said that because if people really did understand it, that what's causing it didn't have to be there, that their life could have been easier without all of that, they really would be, there would be a revolution. They would, there would be writing in the streets. I think the most important thing that the average joke and do is realize saving money is really bad for you right now. Of course you need to have liquidity in dollars. Of course you need to have a bank account and you know, don't charge up your credit cards. 20% interest is never good for anybody. That being said, debt is good when you use it to buy real assets. What are some of the assets you could use debt to buy, Devon? You could use debt to buy real estate is probably the biggest example. Like we're frequently talking about, we're getting a mortgage, then we're getting the real estate and then we rent out the real estate, which pays off the mortgage if you buy it right. Devon, what is the, all right, go ahead with your question and after that, tell me what

51:02is the biggest key for how do you get the house to pay off the mortgage? Go ahead Ethan. What's the benefit? Why is the debt on the house good? Why do we want that? Because inflation helps, it makes the house in dollar amount go up whereas the loan stays the same. So you have to pay less for it. Yeah. So you're getting, well you're paying the same amount on your loan, but because there's more dollars and they're worth less than you're paying the same amount on that mortgage with dollars that are easier to get. Does that make sense? And to throw in the other side of the coin, that's perfect. If you want to be a private lender, I certainly wouldn't be taking less than 7% right now. I think I think 7% is pushing break even just to maintain your purchasing power. Just threat. And that's, if you're a private lender, it doesn't matter if you loan somebody like me

52:02another investor money to buy real estate and get a mortgage on it or if you stick in the bank. But I'm getting, some people are so excited, they're getting over 3% interest at Battle Bank, which is by far the best bank out there. That's when I have money sitting there for months. I let it sit in Battle Bank and get my, it's roughly 3 and a third percent interest right now on my checking account. But I wouldn't want all of my life savings there expecting it to keep up with inflation I just, I think it's halfway there. And so, Devon, what was my other question to ask you? What was the key to getting it to pay off? Yeah, what makes it the difference? Because you can borrow money on a house and give them a first mortgage and it can be really bad for you. It can be bad debt. Or you can do it the right way and it can be good debt. And if it's good for you, it's good for your lender and it's good for your tenants. And if it's bad for you, one of the three of those people is going to get hurt and it's

53:06probably going to be two of them including you. So, what is the key to making a good versus bad debt? It has to actually make money. Right. It has to be able to pay back because if you can't keep up, if you have a mortgage and you can't afford to pay that mortgage because you either it's too high of an interest rate, you borrowed it for too short, whatever the reason is and you can't pay that back, well then you're going to lose the house and that's not good for anyone. And Lila, I have a mortgage of $900. So I need to rent this house and a lion's for $1,500 rent for me. Yeah. A guy literally did that with that big white building. Yes. Yes. They told him that these little one bedroom apartments were going to rent for like $950 per month and it's not in that grade of a neighborhood. It's going to rent for more like 600 a month. I don't know how you get 600 out of a three story walk up. And but the fact that he thought it was going to make $300 more per unit per month, he bought

54:09it totally wrong and now he's in a bad spot because he's got to figure out how to pay on this building and make all the payments and all the upgrades and everything he had planned when he's not going to have the income coming in. And I think it's I think he's going to have a rough time doing that. So you're still not managing for him, right? I am not because we told him we won't lie to you. You can't maybe you can phrase like, well, they have a co-estid. Yeah. What is it like 75% vacant? You can get you can cheat somebody. You can find a sucker out there. But even if they're an honorable sucker, they're not going to live there for more than a year for the first initial term of the lease and then they're going to move someplace $300 cheaper. You cannot get more than market rent. It is not the owner that sets the price. Sure, we choose a number. And if we're wrong, it sets their vacant for a way longer time. You can't cheat the capital system. You can squeeze it. You can push it one way or another for a limited amount of time and eventually an invisible

55:13hand is going to slap you upside the head. If you are trying to squeeze more out of it than you should be. And so there's a limit to what you can charge. Once you figure that out and you get a honest real estate broker, maybe somebody whose name is on the line as they rent her, not just the guy who fix it up and wants to take advantage of you selling it to you for way too much and gives you a pro forma that nothing but a pack of lies. Maybe you should call up the person who is actually going to be in charge of renting this and say, hey, what do you think I can rent this for? Because they are more likely to tell you the truth. If they lie and say you can rent it for $1,000 a month, then they look awful when they only can bring in 600. So figure out who has what to gain by what and ask the right person and the right questions. And knowing that and Devon's last house purchase and when is it good to borrow to buy

56:15these? Because I'm a big fan of using leverage to buy property. Huge, especially in an inflationary market. Deflationary? Bad. Don't borrow too much and make sure your rent's paid off. But if you start with the market rent and you understand in an apartment building in Ohio today that you're not paying the heat on, $0.50 out of every dollar you collect is going to go towards operating expenses. Just count on it. If you have a single family home in this area, it's more like $0.40 out of every dollar. Once you take that out and then you set up, so if I literally can rent a house for a thousand, I know that I have to pay another 400 to that out for all of my expenses. That leaves me 600 for a mortgage payment. As long as I can get a mortgage payment of under $600, it is a really, really good time to take on that debt. And if you want to sit there and not use leverage, not get other loans or use other people's

57:19money, that's the same as we talked about on Friday, not using other people's time. You're going to work until you die and the entire system as rigged against you. If you work hard and save your money and 20 years, you'll either be retiring. If you're 30 or 40, you should be looking forward to retirement in about 20 years. And if you're, say, 40, 50, you should still be alive and living off of that retirement. But realize you're not planning for the first year retirement. You're planning for the last year of retirement to make sure you have enough dollars there to pay for your lifestyle the way you want it. Not just the first year, but the last year. So you've got to factor in that 20 years you'll probably live after retirement just as a round number and make sure you've got enough assets set aside or hopefully cash flow, not just cash in the bank to be able to pay for all that. In fact, you're in the inflation we're getting today.

58:21Again, best way to look at inflation. Look at what the government is spending and they are showing no signs of stopping the spending. They're the pretty girl shaking the flag in the magic show is the Federal Reserve that says, we're going to stop inflation by raising this a quarter point. But what you really need to look at is the guy pulling the rabbit out of his hat. That is us sending more bombs and missiles to Iraq and Ukraine so they can make it harder Iraq, Israel and Ukraine so they can make gas prices go up by bombing more of their enemies, cracking facilities, more of their refineries by stopping more of their ships and more of their oil flow. That's what's really going on in the world. If you want to make your life a better place, you've got to take your wealth out of paper and put it into hard assets. I put up quickly, really quickly.

59:22Inflation affects all of us if you don't understand it, you need to, Devon. Protect yourself from inflation by buying hard assets. Ethan, you need to know the root cause and then figure out what you can do to help stand against it. Then, use that to make the world a better place. We'll be back tomorrow. We hope you enjoyed the real power family radio show brought to you by family success triangle. We want you and your family to be financially free so you can go where you want, when you want, with whomever you want. Learn how we can help you live the life you've always dreamed of at realpowerfamily.com. To hear more, subscribe to Real Power Family on YouTube. Until next time, go out and make the world a better place.