Negative interest rates seemed like a unicorn type of thing only a few years ago. Then we saw the first bonds in Europe with them and now we see the International Monetary Fund writing guides on how to implement them. These aren’t little guides either… they are actual examples of how to enable negative rates on the cash in your pocket. This is absolutely fascinating and terrifying all at once. On this edition of The Your Life! Your Terms! Show, we share how they may work and what we can do to protect ourselves.
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Transcript
Hey everyone, it’s Tom Karadza. I hope you’re enjoying the summer because we are both of us are still in Canada. If you’ve, if you don’t know, every year we go to Croatia for pretty much about a month, I’m going my family’s going a little bit less this year combination of some kids stuff. I shouldn’t say kids, my son, my older son, 17. Now, but I guess it’s still a kid, kid. So you kid youth. Anyway, because of fancy stuff. We are coming, coming back a little earlier. And because of our new office, apparently, we’re getting the keys in mid August. So I cut the trip a little short. And this is a first world problem type of complaint. I’m a little bit bitter over only going for two and a half weeks. But Nick’s going for longer. But yeah, I’m totally bitter about this. But anyway, I’m going to enjoy the time, a lot of white wine. So listen, this podcast is about negative interest rates and how they can possibly be enabled in your everyday daily life. I feel like to live life on our terms, we need to all know this information. So that this is our attempt to share some of the latest developments around negative interest rates with you, who knows if they will come to fruition. Who knows if this will actually be like a thing in the economy, but it affects real estate prices, it affects your day to day savings, it is really important. And we feel that we all need to understand the rules of the money game, the way they exist, not the way we wish they were but the way they actually are, so that we can then win the game of money. So this is our attempt to share some of our own research with you. You can dismiss it and discount it, you can agree with it. We just want to encourage some thought around this stuff. If you have any feedback around this stuff, please always share it we find that kind of fascinating. And listen some of the data points that you’re about to hear we put out in some different reports. We have a new page on one of our website, websites called Rockstar inner circle. com forward slash reports, where we have four different reports on there. The first one and the newest one is Ontario’s population explosion, The Untold Story, how Ontario’s population trends are creating amazing opportunities for savvy real estate investors. And what we’ve done in here is we’ve collected a lot of the data points that we use ourselves and put them in here. A lot of this stuff is from the government of materials website summons from stats Canada, some of us from different sources, but in there, you can collect some of the information for yourself, we’ve put links to different reports in there. And then we’ve also coupled that with some go train and Metrolink’s expansion plans. And the reason that we have that in there is we feel like over the next 10 years, it’s always been important to be close to transportation routes, but it’s going to be even more important to be next to some rail transportation in the future because of the traffic situation in this area. So if you’re going to make some investments, that’s a little bit of a treasure map for all of us. So subway light rail go, so that is Ontario’s population explosion. And then we have three of the reports on there, we have a roadmap to $235,000 of yearly income by investing in local real estate. This is a story of a Mississauga investor that we worked with and still work with. We also have another one does paying for your kids education really makes sense. And this this isn’t an anti education report. This is just a thought experiment that we had with we said, hey, what if you just like took the money that you would spend on university and bought like a rental property, you know, who comes out ahead somebody who gets a, an average kind of income in Canada, and then that appreciates at a certain rate or the person with the rental property. It was really just a thought experiment, I want to be clear, we are not anti education, we are pro education. This was just a bit of a thought experiment. We had some fun with it. So that reports there in some charts, I think you’ll be shocked when you see some of that stuff. And then we have a report called the destruction of the middle class why less Canadians can afford homes, and it’s only getting worse. And what we did in this one is we mapped out income levels according to stats Canada data against the Toronto real estate board housing prices. And when you see some of this stuff, it’s actually shocking. And we extrapolated this out to the year 2055. So when you see some of the trends in this chart form, it really is a little bit shocking. So you can get all these reports at Rockstar inner circle.com forward slash reports. Hopefully you enjoyed this chit chat between Nick and myself. Let’s get on with the show.
Are you ready to live life on your terms? Is it time did take charge, real estate, business building the economy, health and nutrition, and more. It’s the your life your term show with Tom and Nick Karadza? Are you ready? Let’s go.
Okay, we are live, Nick, I can hear you can hear me teach you to hear me.
Okay? We are we are live Listen, we’re going to try and do the impossible because we’re going to make sense of the whole entire economy right now and how it affects Canada. So hold on to your seats, because this is going to get crazy. We do hear some of this stuff. So I want to start with just the state of the economy, I guess you can’t even make sense of it with all the different headlines. Nick and I were just chatting one economist has now come out and said in the fall in Canada, we aren’t going to see more rate increases like we had new expected like a year ago that it’ll be another year of rate increases that he’s thinking. So Yahoo Finance article, and he thinks there’s gonna be a rate cut by the Bank of Canada, and then like one or two more shortly afterwards. So we’re like in this weird era, where we thought rates might go up a little higher than when I say that I said the media thought rates would go up higher. I don’t think you and I thought rates were going to go up like much higher because we kept just pointing to the math and seeing how this wasn’t going to work. Yeah, if they went higher, you know, whenever he was talking about rate increases, they were talking about such small increases over such a long period of time that it almost seemed like they were almost like a joke. You’re like, Yes, your rates are going to go higher, but we’re talking about one point over a year. And that’s even that even that which were almost like never happened, and they were threatening it. So they were threatening it for six years before it happened that it’s really one point over seven years. Yeah. Weird, you know, so? I don’t know. But but so the reason that that we didn’t feel there was that risk there in any major things unless there was like a black swan event. But we didn’t totally different that’s that changes everything.
Yeah, and rates could jump up on that. Yeah.
But But with all the other indicators. I mean, it’s it’s been tough to kind of see that. And then I mean, we have a few things. But I there’s this can go direction. I’m
armed with material.
Yeah, I just had to laugh. Like, look, we were just talking about Jim Rickards book cuz he wrote it now. One was
2010. Yeah. And it’s been fairly, like it hasn’t been right on and the timing and all that stuff’s been off. But I mean, it’s been fairly accurate. When I saw when I saw Trump’s tweet, which was a couple days yesterday, a couple days ago, whenever it was that came out. And he just started talking about what the Europe the European Union is doing with their monetary policy and what China is doing. And he’s like, Look, why aren’t we you know, they’re they’re manipulating the currency, why aren’t we manipulating our currency to, I just have to laugh because it’s just, it’s along the same lines of what, you know, we the different types of stuff that we research and reading of how these things go. Currency wars and other things 10 years ago, right, and it’s just funny to see it kind of in real life playing out in definitely more slow motion than maybe like, you think when you’re reading about in research, and you’re like, Oh, my God, this stuff’s gonna happen. And this and this. So it’s happening more slow motion. But But man, it’s been, it’s been interesting. The best analogy I hear is that the economy is currently like a slow motion car crash that the car is spinning out of control on ice and getting around around a guardrail. Yeah, I think that’s another one of James Rickards analogies. And I’m like, that’s a pretty good one. Because we it does feel like the economy is spinning out of control. But having said all this, I just want to make sure everyone’s clear if this is the first time you’re listening to us, we both Nick and I are positive people, like we think all the opportunities and all of this, we just want to understand it. Yeah. So you can play within the kind of framework of the game and the rules of the game because they’re always changing. So that’s why we want to understand it because look, to be to be fair, we were kind of blindsided in, was it Oh, seven women, were we down our family
got blindsided many was that yes,
I was too young to kind of really understand that but was all said, when I was like, when everything kind of
everything went off the cliff. And we were down, we were in Florida. And we saw the Americans were just, you know, fear on their faces. And we literally, I just want to explain that point, we were in a small mastermind group of probably about 15 really good real estate investors and business owners, and the look on their faces, Nick, remember, when we went back up to our room, here, I’m going to sell some of my stock cuz I still had some stock back, then I’m like, I’m going to sell some of my stock right now. And then the stock market did crash like six months later, because I look on their faces was just they were petrified. So something that we so for context here, just want something that we reference all the time, is that the economic system as it is, we need to understand it if we’re going to profit from it. So something that we are very aware of are the different bankers when they speak because these guys and girls are like the leaders of the parade, whatever they say, kind of dictates whether whatever else is happening. And for some context around that the chief banker in the world right now is probably the International Monetary Fund. They are the bank, they’re like the central bank to central banks. And there’s other entities like that, that come to mind be is is one of them, but but the International Monetary Fund is like the central bank to Central Bank. So it’s like if the Bank of Canada and the US Federal Reserve, get into some kind of trouble. It’s the IMF who would kind of like step in and, and help them out in some capacity. So when whenever they speak, we pay a lot of attention because it affects our real estate, and we’ll bring it all home. But here’s what’s going on. Just so you know, in August of 2018, the International Monetary Fund came up with this weird white paper that said monetary policy with negative interest rates, decoupling cash from electronic money. And that kind of caught our attention because it was like, you know, it was really starting to outline beyond just the idea of negative interest rates, it was starting to outline like a framework for how negative interest rates could actually work. So that was in August of 2018. And then in April of 2019, this year comes out this white paper that goes much deeper. And it’s called enabling deep negative rates to fight recessions, a guide, and this one, if you have the guts to print this sucker off and go through it, there is a couple points here that just are outstanding, like just kind of blow me away. There’s one chart, Nick, I’m going to try and describe this chart. So you just I know, this is kind of absolutely ridiculous. But they have this one chart that basically outlines all the different ways that they can introduce negative interest rates. And they have titles like depreciating cash and negative dividend on cash and different ways to kind of do it and they have all different before you dive into more stuff, because I mean, I think you should probably kind of explain what negative because I don’t even think most people ever been exposed to the room and understand what the impact would be or what they are. So talk about negative for instance, right? You’re not giving the basic information like okay, what the hell are these negative industry things? And how does that can impact? So let me I’m going to read this out and hope because I don’t know how they’re gonna implement it either. So I’m going to read this out. And then let’s see if that answer because I think they’re trying to explain how they’re going to do that. No one? Well, it’s not how they’re going to do it. But what the impact is because it has been done in other places in some in some little facets of it. Like what a negative interest rate is. Yeah, yeah. Because there were some bonds. So like, for anyone listening, right, there’s some bonds have been done. Some bonds are like a loan to the government, from someone that were done with negative interest rates in different countries in Europe. And it was, what 10 year bonds was 10 years I forget. Yeah,
I think they have some shorter ones even So okay,
but it was bond. So basically, you’re giving so like I, you know, a government of Canada bond and know what it pays right now. But I mean, what 1% maybe, or something. So you give it an intent, you’re getting this 1% interest rate over your on your money. A negative interest rate is essentially saying, hey, look, we’re actually not you’re not going to earn any money on gives a loan to the government. But we’re guaranteeing that you’re going to get your money back, you’re going to get less of it back. But it’s safe with us, because we’re going to give back so you’re actually getting less money. So you’re actually losing money. With the negative interest rate. You get back less you’re earning. Yeah, you’re earning negative? Yeah, yeah. It’s basically a pension fund that might look at it and say, okay, you know, what, in this environment, I’d rather have the guarantee of knowing I’m only going to lose this much money, because what I see is so crap out there, that I actually think that’s attractive. Yeah, ridiculous as that sounds, you have a friend that’s a hedge fund manager. It was a him or someone else’s said the quote, I think I remember was it they’re more focused on the return of capital rather than the return on capital? Yeah, right. Right. Yeah, it was it was that particular guy. And right now, that’s the thing that they were concerned with. They want that the return of their capital. They weren’t
at that time. Yeah, time, right.
Yeah. So now, so there that exists. And that’s a classic kind of negative interest rate. What’s what these white papers are starting to describe now are how they’re going to possibly take negative interest rates, right through the economy. So be beyond offering a negative interest rate and a bond, how you and I, the the guys that are using our money at the banking level, day to day, how they’re going to hit us with negative interest rates. So this is this white paper. And I have to read a couple of these sentences out and stick with me, because after I read them, we’re going to talk about them a little bit. But you got to hear how this white paper from the IMF that came out in April breaks down some of this stuff. So here we go. It says, relying on banks for transmission of negative rate of return on paper currency, reduces the implementation burden and political costs associated with negative rates. So what they’re saying there is basically, that it’s a kind of like a good thing to have the banks do the dirty business of offering negative interest rates to the daily consumer, because it reduces the political cost or burden to the central banks. Okay, so now stick with me, when working through the banks, anything that would be a political problem for the central bank becomes a customer relationship management problem for the commercial banks, commercial banks are likely to be better and more experienced in dealing with customer relationship problems, even those with a new twist, then central banks are dealing with grassroots political problems, what they’re basically saying is that they know there’s going to be a massive backlash when they push out negative rates into any economy, and they are pretty shit at dealing with customer relationship problems. So if we use the banking infrastructure as the mechanism and I’ll drive the mechanism they’re talking about in a second, to roll up negative interest rates, it’s probably easier on everybody, is what they’re saying. So this is amazing. So then, then they go on, it says, After minimalist implementation, the central bank can leave the rest up to the private sector. So they’re basically saying, Yeah, we can kind of decide that, you know, these negative rates are good idea. And we’ll just tell the banks, yep, figure it out. And then it says one key aspect of bank transmission approaches is that the less the central bank does, and the more is done by commercial banks, the less new legislation is likely to be needed. What they’re basically saying here is that if they make negative interest rates, just a function of the banking system, no new laws have to be passed for any of this stuff to actually happen. The central banks can just use the existing banking system to put this into play. Now stick with me, the proposal is for a central bank, to divide the monetary base into two separate local currencies, cash, and electronic money. So they’re thinking, Okay, we’re gonna have two things, the cash in our pockets and electronic money. So now in this guy, they’re really getting to the nitty gritty of how they’re going to do negative interest rates, not shy, they don’t want to say electronic money, they don’t mean Bitcoin. And they just mean money in your bank account.
because everything’s like that, you know, you use your debit card, and visa and that type of stuff.
Exactly. So then they say, to illustrate, so here’s where they’re getting getting down to the to the actual example, suppose your bank announced a negative 3% interest rate on your bank to positive $100 today, so first of all, that would be crap. But let’s say they did that. So it now it goes on. It says, suppose all also, that the central bank announced that cash dollars would now become a separate currency that would depreciate against e dollars, by 3% a year, the conversion rate of cash dollars into E dollars would hence change from one 2.97 over the year, I want to pause here for a second, basically, what they’re saying is that, what they would tell everybody is like, hey, if you don’t keep your cash in the banking system, if you ever want to put it back into the banking system, you’re going to have to take this new depreciated value, and screw you, like the bank, just give everyone the middle Look, it’s very easy for them to do because they’ll just say, hey, like Lyft cost associate, we got to print it, we got to manage what’s in circulation, there’s these costs associated. So here’s what it’s going to happen. I mean,
it’s it’s amazing. Like, it seems crazy, but it’s not inconceivable at all at all, actually doesn’t seem the fact that they mildly unrealistic.
And so there’s this last little part I’m just gonna read out says after a year, there would be $97 left in your bank account, if you instead to go 200 cash dollars today, and kept it safe at home for a year, exchanging it into a money after that year, it would also yield $97. So they’re basically saying, like, if you take your money and hide it at home, under the mattress, screw you, because if you ever bring you back into the financial system to pay a bill online, or to send money to your brother on the other side of the country, we are going to depreciate it down
and how they’d ever implement something like that. Because, you know, that’s what they took out. You know, there’s a lot of factors that but
it’s, it would just be, I think it would just be a cash dollar exchange rate.
And saying, Yeah, but how do you know, if you took the hundred bucks out and Jay, on January or December, it doesn’t matter, the exchange rate just kicks in. So it would be like, okay, the exchange rate for cash D dollars now is this. And they just announced it, just like an exchange rate between the euro and Canadian dollar, like, we would all have to eat it. We would all just eat it and say, holy shit, are they going to change the cash to eat dollar exchange rate? So they’re basically forcing everyone Remember, this is the International Monetary Fund. This isn’t like some weird bank. This is the Bank of
Yeah, they’re starting to outline a blueprint if they need it. Yeah.
And then now today, this is this is awesome, because the Wall Street Journal has this article by the head of the IMF, who apparently she’s going to be nominated to head the ECB, the European Central Bank soon, but anyway, she’s currently the head of the IMF. And her name is Christina guard. And the headline goes, negative interest rates benefit the global economy. And then when I saw that headline headline in the Wall Street Journal, like what are you talking about? negative interest rates benefit, and you gotta listen to some of these sentences in here because it’s almost too good to be true. It says sub zero interest rates in Europe and Japan are net positives for the global economy. International Monetary Fund chief Christine Lagarde said on Tuesday. Now listen, listen to this. We exist it talks about it talks about the economy, she says, We are on alert, not alarm on the outlook for the global economy. So she’s basically saying like, she doesn’t like what she sees, and they’re on alert, but they’re not on alarm. Like the way some of these bankers talk is just it’s so political dismay. But the reason they’re on alert, not alarm, is that she pointed to a loss of growth momentum over the past six months, exasperated by China’s relative slowdown, lower commodity prices, and prospect of financial tightening for many countries. And then she goes on, she said, she said that economic sentiment had been bolstered by fresh stimulus from the ECB last month, and by apparent shift toward a slower pace of rate increases by the Fed. So she’s basically saying, way to go European Central Bank, you did a fresh round of stimulus, which is basically Yeah, she’s always come out for more stimulus, lower rates, Sophia, allotting it. And then and listen to this. It says, we see the recent introduction of negative interest rates by the ECB and the Bank of Japan, though not without side effects that warrant vigilance as net positives in the current circumstances. So she basically I just want to repeat that she goes, we see the recent introduction of negative rates by the CPE in Japan, though not without side effects that warrant vigilance as net positives. She like, it’s like, What is she? She’s basically saying, Yeah, like this has, I want to ask her like, if she was sitting right here, I’d say exactly what are the because I think I know what the net The side effects are. But she the net positives are, I guess, that the economy just keeps growing. And I’m gonna explain this in a second. So a couple more sentences. The Mario Draghi, the head of the ECB announced cuts to all banks main interest rates last month, so that he, he did and then she goes, I would like to commend President Draghi and the ECB for steps that it’s taken to prove confidence and financial conditions. All they did was cut rates. And she’s saying, Yeah, way to go, you’re improving confidence. Check this out, she goes, the US, she said, could boost its labor supply by expanding the earned income tax credit. So give more tax credits on, on earned income, increasing the federal minimum wage and strengthening family friendly benefits. And this, I think, is something over the next five and 10 years, we’re going to see a lot the small minimum wage talk. And I think it’s beautiful, because it flies under the radar because a lot of governments can get behind it, because it looks like you’re helping the masses when you increase minimum wage, because everyone it’s hard to fight against it. Because as property prices go up and stuff like that, no one can afford anything anymore. So everyone’s saying, Hey, we should increase minimum wage, and you look like the hero. The problem with increasing minimum wages, you’re you’re forcing inflation into the economy, more money starts flying around into the economy artificially, typically. And what that does is it pushes the prices up for everything even further. And no one gets a net benefit of that. But the last thing I’ll say is that in this article, it says in the euro area, government should improve training and job matching, help people find jobs, particularly young. And she also called for greater investment in infrastructure and innovation. So basically everything, help on education, help people get jobs, help people with trading, help infrastructure and help innovation. You know what you didn’t say? Nothing about cuts? Nothing about, we’re already collecting trillions of dollars in taxes across the world in different countries, why don’t we try to spend that money a little bit better? Why don’t we try to control our debt? Why don’t we try to have a little fiscal responsibility, responsibility, everything is about spending more. And the reason for that is the only arm a government has to make its debt burden look less over time, is through growth, you have to grow the economy, because they don’t create jobs in and of themselves, the only way they get that growth is through inflation. And the only way they can get inflation is to push out more money into the economy. So the whole thing, it’s like the problems that they are trying to solve are or what they say they’re trying to solve, are actually going to create bigger problems. Because when you push out more money, it’s going to drive up with the value of hard assets.
Yeah, I’m all of history’s any indication, that’s just going to happen. That it’s just it’s just gonna blow eventually, right? But it’s like
a disaster situation. So in Canada, we’re here in this weird situation where we have like, the two biggest inputs of of gross domestic product or GDP, are typically labor, and capital. And then through that a lot of people will talk about productivity, how much can you get out of that labor and capital, think of Ontario right now, specifically, where a lot of Canadian Real Estate Investors play, we have growing labor force because of the massive population explosion that is going on. And we have capital coming in to the economy here because of low interest rates. So we have this weird situation right here in Ontario, where we have a population growing faster than maybe anywhere else in North America. And not even maybe
it does, I mean, there, it depends on what area you look at any length of
time, because Dallas, Fort Worth area looks like it did taking a lot of people. But
yeah, so But I mean, it’s, you’re the it’s one of the you know, yeah,
exactly. So we have this massive population growth at a time where the Bank of Canada here has to mirror whatever the US does, which is like low rates. And so we have an environment where like, what’s going to happen here, it could be kind of good, I would think for the economy as a whole. But it can also be a little bit bad, because it’s going to drive property prices to the moon. So that’s good for investors who already have property. But for people who want to buy property, these things kind of now are making the all these policies are making the problem worse. And what happens when you try to I’m just trying to think of that negative interest rate example, if they did change the exchange rate and say, Hey, Nick, you know, I know you got $10,000 hidden somewhere in your shoe. When you bring it to the bank, you’re only going to get this much back. That basically negative interest rates, I’m just trying to think what that’s going to do to property prices, negative interest rate? Well, it’s on the cash, it doesn’t really impact much at all. No, but I mean, it’s just if it’s if it’s on anything else, then again, it just like is done with other hard assets, hard assets become more valuable, because he would think they would hold their right. It’s either they’re going to hold the right or if things start to a value start to adjust, they’re going to the dollars that say they’ll adjust less that way, right? Because you need actual, if they’re removing wealth out of the fictional wealth, which is this electronic money, because the money you have in the bank, just a number, right? So they’re moving wealth that way, when you have something to actually trade for that money, it just becomes more valuable and it’s going to, or more valuable, or will maintain its value better. It’s just like, I mean, do you remember in Greece not long ago, when was that? 2010?
Was that? Yeah, I can’t remember exactly. I feel like it was 2014. Or was it that late? Yeah, I can’t remember.
But anyways, when they were going through the stuff, they were taking their money, and they were going and buying anything they could learn it sure, yeah, for washing machine, like they were buying that type of stuff. Because they’re like this, this army might not be worth anything. But the Washington machine is still going the washing machine of all thing is still going to be worth worth something they were also interested in the return of their capital, just like we were talking earlier. Yeah, that’s funny. Yeah, I don’t know, maybe we’re going to run around in the streets looking to buy washing machines and furniture to save save our capital. There’s, there’s one other point I want to share in all this kind of situation and what these banking policies have created. Nick, you remember this chart where we’re talking about, like how much the share of the middle class has, of the total US kind of wealth, there’s this awesome chart that we dug up. And it’s from the data is coming from the Federal Reserve in the US, and it is us data, but I think it applies kind of to all of us here in North America, but in 1989, so back in 1989, the top 10% controlled about let me add this up about 60% of all the wealth in the US. So top 10% controlled 60% in 2018. The top 10% can 70%. So all these banking policy, so they controlled 70% of all the wealth in the US. So what these banking policies are doing is that people who to me own assets, whether its properties, businesses, things like that your own home would be thrown in there, I guess we can all argue whether your own homes and asset or not, and all that kind of stuff. We don’t want to get Robert Kiyosaki on here. Oh, just like us for even saying that. But but basically all these policies are just pushing more and more of the wealth in the world, to the people who own things like to Nick to your point about, like, what these policies if you own it’s going to make assets worth more. So like all these weird, crazy policies are just making the people who have things worth more. And I think sometimes that’s why we talk about real estate so much not because even worth the you know, we always say we’re not like the biggest real estate fans, it just happens to be that real estate is one of those vehicles that protects you against all of these financial, that are going on? Well, the example that we’ve used in the past, I know I’ve used temperature you’ve used as well, yes, you’ve used it for sure. It’s, you know, think about, you know, whatever, your 10 or 20 closest friends. And you know, if you divide them into and think about 10. And this could be true, or just kind of make it fictitious, but think about the 10. If they owned any hard assets over the last 10 years and think well, the 10 that didn’t own any assets, doesn’t have to be hard assets will see any assets over the last 10 years, which one is further ahead drastically further at compared to the other, right. And it doesn’t have to be real estate because of what’s happened with this kind of artificial monetary policy where they’ve printed all this money and flushed it into the economy. And then it’s just raced to any asset classes to try to protect its its value. Its its stock markets, its real estate markets, it’s, you know, and there’s been fluctuations in individual pockets of real estate and stocks. But globally, there’s never been a time when so many different asset classes have had such increases over the same period of time. It’s never ever happened before, because of the monetary policy. So anyone that’s in that game and owns assets has finished further ahead. And anyone that doesn’t own the assets is falling further and further behind. Like it’s it’s kind of it does. It’s kind of sad. But it’s true. And that’s kind of what happened at no other time in history. Was there such coordinated money printing globally, as there was after the 2000 right around the 2008 financial crisis afterwards. No other time in history in the past, it was like, one central bank needs to stimulate something. So they would print some money, you know, but that wasn’t the case. This time it was everyone got together and said How the hell are we going to do this. And that’s when the IMF going to SD ours got involved even and then all these banks, Lord rates are printing money. And you know, they’ve, they’ve really dug ourselves a hole because they refuse to let any kind of shrinkage current economy and it’s wrong, like in the way the economy structured, if there’s going to be kind of like, ups and downs, but they refuse to let it come back down and then start a new foundation and grow from there. And they just create kind of a artificial base off an artificial base. And I just, you know, when when when things don’t end up that way, you know, for those of the people that that just have nothing, you know, you know, if you have absolutely nothing, it’s actually not your backs, you’re going to lose nothing. If you’re living hand to mouth, you have nothing to lose, you make money, you spend it for what you need to lose. Its vital. Yeah, people in the middle or not, because because any little bit of savings that you have that they are wiped out, if it’s dollar denominated, or $1, denominated whatever it is,
we’ll look at what’s happened in pensioners in the last 10 years. Right? Because you have fixed pension 10 years ago, what did you buy? or What did it afford? You? What kind of lifestyle what could you buy properties? Gas car, like, what could what could you afford with that versus now, right is drastically changed like any asset class, let’s say you want to buy a little bit of stock to kind of further your investment with that? Well, I mean, you can buy a lot less than you could buy that little bit of property, well, you can buy a lot less now than you could buy then. So anyone in the fixed income is falling further and further behind unless the own assets. It’s funny happens kind of like it’s like this slow process that seems to be speeding up. But it’s this little process. So it’s hard for most people to kind of detect it because most people to be fair, are worried about their career, getting a good job, getting a promotion, dealing with the politics at work, fighting through all that stuff. Yeah, you guys are basically a ship for us to deal with. Yes, you don’t want to think about this stuff. Someone like me, and you come along talking about holy shit watch about this. Because a lot of people are like, well, I don’t care. It’s out of my control anyways, which you know what? They’re kind of Right. Yeah. And they’re not like, we have control if we band together as all this stuff, right? So it’s not completely so I understand where they’re coming from. But, you know, that’s, that’s, you know, fairly accurate. But, you know, if you understand these rules, and you understand the game, then it’s like, Hey, you know, what steps can I take to win within those rules? And that, that in that game, because sometimes I find when some people will say, Man, how our property prices going up, I don’t even understand, like, who can pay these prices for these properties. And I’m like, Hey, listen, it’s it’s more that interest rates have come down so low that it’s afforded people the ability to carry these mortgages and push the property prices up. And then when you have this population growth that like nobody is talking about, I find in Ontario, and you mix that into it, it’s just naturally going to push property prices even further. Now we’re starting to see some talk of population and a housing crisis in this area, it’s starting to come out a little bit. The data point that always blows me away is, is that one data point that discusses how to run the GTA in 2016 census was 6.7 million people. And by 2041, so we’re on on our path there is going to be 9.7 It’s a 43% increase, it’s 3 million more people. And Toronto today is only 2.7 million. So basically, another Toronto is on its way here. So you mix in low interest rates, with the jobs height, what do we have in Ontario, we have high tech jobs, we still have some manufacturing jobs, even though those seem to be getting less and less. If I see the headlines, I don’t actually track manufacturing job numbers, that’d be an interesting thing to start tracking, but high tech jobs, manufacturing jobs, we have all the universe a chunk of universities here in, in Ontario. So we gotta have this like pretty diverse economic base, mixing cheap money and population, and you just have these property prices that go up automatically. And people will look around 10 years from today. And think, Oh my gosh, I really want I don’t understand property prices in 2019. Were so low compared to 2029. I just don’t get it. And then I feel like screaming from the top of the hills like saying, Oh my gosh, we’re all getting screwed.
Yeah. But it’s not just I mean, the property prices. It’s the every last read, ya know, when you get Halloween candy, you know, you’re the the size of the Halloween candy because not just price, right? You’re getting less for your dollar. I’m convinced toilet
paper. I convinced the product manufacturers putting
less toilet paper on the table I believe I don’t know, but I believe it but it but it’s happening everywhere. It’s like if you you know look at the Halloween candy like soon enough, you’re gonna there’s no candy. Or the kid can isn’t going to have two sticks from before. It used to be like almost a full size bar, but like two sticks, then those got smaller and smaller. Now it’s now the
one stacking still stays a little bit big. Oh yeah. side.
Well, potato chips. I mean, the size of the bag has changed, but there’s less in it. I mean, that’s inflation. Is that
one winner? We should get m&ms but it’ll just be one. So it’ll be m&m, yeah, package with one.
But I mean, it’s not like it’s you know, we joke about it. But it’s it’s not what’s it’s what’s what’s happening.
Here’s the thing that sometimes frustrates me. And I don’t know if this is fair or not. But I feel like as in Canadian society, right now, we still talk about like, high schools obby. We are pro education. before I say anything further, I want to explain that we’re pro it. Both Nick and I are pro education. We spend more money in our education, actually, after formal education than we did during that formal education. So we’re pro education. But I feel like in society, we have all these things like high school prep courses, and colleges and university and post graduate degrees and certificate programs and specialty certifications, and tutors and awards and all that kind stuff. So we’re encouraging people to kind of like get careers. And I find that very valuable. We’re training people, we’re educating people, the training might be somewhat off and not completely applicable into today’s economy. But we are doing our best in the education system to train people, what I find is missing is that message of take whatever income you begin earning, and quickly by assets as soon as possible, because it’s the assets that are going to carry you through and allow you to live life on your terms the way you want to live it because until To this day, I have literally met no one that through income alone is truly living the life financially that they want to live. Usually, if they are in a high paying career, it is some form of equity sharing through stock options or something that they’ve been able to do that everyone else I know who’s living life on their terms has created a business to build their equity or real estate portfolio to build their equity. So my message would be to the education system. Yeah, let’s educate people. Absolutely. But when they get those incomes, turn that income into assets, assuming as soon as humanly possible, you don’t have to go into real estate, you could start a side hustle a little business on the side and grow it. But that’s kind of the missing component of all of this. And there’s something else that I think I initially when we started studying this stuff, Nick, I felt like it was almost like a conspiracy theory trying to figure some of this stuff out. But then when you read enough history and economic history, specifically, you realize that every period of hundred hundred and 50 years, there is a currency kind of change over like, Portugal was the reserve currency in the world, from about the late 1400s to like 1500, then it was Spain than it was in Netherlands then it was France, Britain was fairly recent. So some people will understand that the British Pound was the reserve currency in the world. And then it became the American dollar specific, less sort of transitioning kind of, from the end of the Great Depression to the Bretton Woods act 1944, end of the year, the World War Two, and we’ve been in this us system since then. So it’s pretty natural for there to be changes in the monetary policy. Like this isn’t like something that is abnormal. It’s just when you look at small pieces of time, like 10 or 20 years, you think that things are going a little haywire, when really this is normal every, every chunk of time hundred hundred and 50 years, there’s a bit of a big change over maybe our next one’s he dollars, maybe that’s going to be
this email or thing someone’s got to control
it. Can you imagine me and you’re going to the bank with 100 bucks and someone at the bank saying yeah, great, Nick, for your hundred dollars, I’m going to give you $95 I think I feel like you would throw a punch. That now they a few of them there know me, there’s always like, I think they’re always like, uptight when I get there because they don’t know what I’m going to be upset about now. Not upset, but just like, like, I’m just flabbergasted now with some of their policies. They tell me something I’m like, Really? Are you kidding me? Is that really the way it works?
Hey, I looked at these manufacturing numbers. So it looks like Canada lost about five. This graph here, they lost about 500,000 manufacturing jobs from about 2.3 to just over 1.2 under 1.8. So just over 500,000 manufacturing jobs from about 2000 just looking at this graph from 2005 to 2008, or nine or 10. And it hasn’t really recovered it dropped a little bit further and then it kind of just kind of inched up, but it looks like that that sector got hammered at that time of its are what what
what
period of time is that? So for a few years, some about four or five years. But that’s from again about 2005 2010 I mean it I’m just looking at the graph, so I can’t tell the exact years. But if you look at that, I don’t know why I got hammered so bad had a large run up before that. But then it’s kind of just hovered, you know, hasn’t really grown since then this trucks going to 2017. So there might have been some growth since then. It says come down there and not
really got to take it with a grain of salt. Right. The source here is stats can and Turner investments. And if you know, Garth Turner, he’s been calling for the end of the world economically in Canada. Yeah, so he’s gonna be right. I mean, he’s been on attention years engines of
his intention is actually is accurate. I get where he’s coming from. Yeah, so do we. Yeah, totally. Yeah, I don’t actually disagree with some of the stuff he says. But I think some of the things in my opinion is are being said in a vacuum without looking at some a greater kind of trends that are kind of setting some of that. So that’s the biggest thing. When I hear people talk about demographics and stuff like that, I’m like some, sometimes you have to marry a change in demographics that might affect an economy with things like massive monetary policy changes, like quantitative easing and interest rates. And now the next phase might be negative interest rates, if we can even get our head around that that might actually ever happen. Part of me thinks that can actually never happen, like I can’t ever really feel like I can see that happening. But when you have to make some of your predictions based off global monetary policy, because the global monetary policy, can Trump a smaller trend? Yeah, like that’s the big. I agree. It’s funny, I was just writing about that. And in the front, something that an article that was writing and, you know, the government kept making all these policy changes, it’s really funny, right with what they did in the housing market, because they wanted to spur the housing market. So that, okay, let’s kind of get this thing going. So what they did is they made the change the mortgage programs available, they will they lower down payment requirements, they increased amortization, they did all these things. And then they’re like, oh, Dan, we kind of overshot. Let’s, let’s kind of remove that, because we got to slow the housing market down. So let’s shorten amortization will increase down payments will will will remove some of the programs that are available alter other ones. But by that time, what had happened is there’s these big trends that were these immigration trends. And then there was this easy monetary policy trend that they couldn’t fight like. So the policies they were doing to try to change some things that kind of really impacted local markets, even though they were across the board. The impact is more locally, there’s these big global trends that were like trumping that. So like, we can’t beat you know, your little changes Kant’s kind of overcome these big global trends that are just kind of, they’re like, well, we don’t care, like, it’ll slow it down or adjusted for a little period of time, but then the old kind of tsunami wave just takes over again, and you can’t do anything about it. And you know, to the point where they’ve now they can’t do it, then they went with more, they’re like, Oh, damn, we got to do something. So it’s like more they first they made some changes some orgs qualification, then they did the more distressed us now see, image sees, is trying to be like, Okay, well, these people can afford things that we’re trying to make certain people afford things. So we’re just going to do we’re going to own part of their home. So they’re trying to like, battle these global trends. It’s just not working. Like they can’t do things that way. You know, and they’re, they’re, they’re, they’re trying and just a little bit timid for us guidance here to because I feel like you’ll get votes that way. Like, if you’re a politician saying, Yes, we should help the first time homebuyer. Really, yeah, that the all the problems exist, because the government can’t not keep spending. What does it look like? They’re just addressing the symptom, not the source of any of them. Yeah. So the last the last provincial election, right, a few months before Kathleen Wynne came out, and she had to put in the right controls. Again, she had the biggest house, right? Yeah, we’re into all this for renters. And looking at it like so it sounded great. So if you didn’t look kind of like a little bit further details, like, Okay, this sounds kind of crazy and all the renters but if you looked at it a little bit further, deeper, and you thought about the repercussions beyond the immediate change, like, Okay, what, how is this going to impact things, three, five years down the line, and we’re already seeing it today. And a lot of people are calling for it then. And, you know, we were talking about it, as well as like, you know, what, this is kind of messing things up, because it’s pretty limiting supply. And then now you’re gonna have these huge, you know, these these run ups and rents. And because of that, because there’s a lot of supply was taken off the market, and it’s what happens, what’s happened. And since then, rents have gone on, like, almost an all time tear, like, I don’t have the numbers in front of me, but like they’ve increased I think, last year rents and in Toronto, these were like 11% increase, like these huge rental amount. So that whole rent control thing really backfired in a big way because it took so much supply off the market that that was there, there was just couldn’t serve the the demand. So yeah, the it’s all about the the impression on the outside in the short term with not often it seems like there’s not that much thought put into like, hey, houses really seriously can impact things five years down the road, because five years down the road won’t get them the votes today. And I just think that’s why sometimes they don’t, or at least I got to give them like, there’s got to be some reason, so I give them. No, I gotta give them credit for thinking that they’re awesome. Yes, you’re right. They just want to get voted today. And you can’t really blame anyone for that. Like you want to get voted today. Yeah,
because it’s them. Yeah. And if they do the things, if they do the right things for the long term, there’s the short term, their short term pain,
more than five years of short term. Yeah,
sometimes you will. So normally, so someone, no one will do. And then the next question comes in, and they’re just gonna reverse it anyways, because that’s how they got elected making those other promises. But like, you know, sit to make long term changes in anything, there’s some short term pain, and it doesn’t matter what you’re trying to do, like, if you’re just trying to quit smoking, while you’re going to go through some withdrawal symptoms. If you’re trying to lose weight, while you’re going to either have to change your diet, which can sometimes be hard depending on what you’re eating, and the habits you’ve developed, or go to the gym, which lot of people don’t like say there’s like short term pain for the long term game, like that’s why that thing exists. But when it comes to politics, and this type of thing, it’s just like, no one’s willing to kind of do it. But I think it’s kind of the right thing. The interest rate one is so interesting, because to cool the housing market, it’s pretty simple, you raise interest rates, but because to Nick to your earlier point that like they don’t want to the banking industry doesn’t want higher interest rates. So they don’t raise the interest rates. And in exchange for not raising the interest rates, then you have a real estate market that is out of control. So you have to start putting all these patchwork solutions like this first time homebuyer incentive program that’s coming up this fall that you were just kind of alluding to. So because you don’t take this met, you know, the proper fix, you get all these Band Aid solution. So now this fall, we’re going to spend $1.2 billion that Canada does not have to increase our debt further, make all the problems worse. But it but the money is going to be used to help people that couldn’t afford to buy problem, the properties because of the debt problem that existed the pushed up the the property prices, like the whole thing is a circular joke. Well, the debt problem that existed and also their monitor there, there’s more distressed tests that that remove these people from the market to now they’re trying to change something
they can qualify go away, maybe we removed too many people. So now
let’s get help this little segment, which I’m glad they’re helping, like, I want the people that are trying to market like I want them to help. So it’s not that but it’s just, it’s just the way that it’s being done. It’s just like, Man, it’s just either, you know, there’s it’s a, it’s a loser without addressing the underlying causes. It’s a losing battle. Yeah. And I find that like, what is it a 2% inflation a year, we you the value of or the price of a property would double in 3536 years? if inflation goes up at 14%? What is that like? 18? Sorry, 4%. So not 2% 4%, the property is double, every 18 years. So that means that if we have 4% inflation, if you just think that’s possible, over the next 18 years, expect all properties in all of Toronto, to double my rate on that to double in 18 years. Hold on a second.
While you’re thinking about that,
I’ll talk about another text. Wait, that’s the crazy part. So go ahead. Yeah,
so that my other calculation is very important, because it’s patio season, and it’s the summer. So if you end up,
I’m going to come back to your accounting. So I’m not right. No, it’s right. It’s right. It’s right. 18 years
is compounded. That’s what
Yes. So 18 years from now, all properties here at 4%. If it’s if it’s 4%, consistent, yeah.
Which is never going to happen instantly. And
there’s a negative 6%. here that makes a big change and everything. Yeah, so I’m just saying if it was 4%, that means all property prices are going to double here. In the next 18 years. Well, we’ve just seen percentage nine, but we’ve just seen in most areas property prices, double or more in the last 11. Right. In our area, let’s say in the GT Golden Horseshoe greater Golden Horseshoe, right, you already have prices of like an almost all areas it’s been 11 or less years where property prices have doubled. Is that right? No, you’re right. It’s pretty safe. Yeah, I know, on my slides, some renovations was accountable, my property price doubled and way less than that. But I’m talking
because it never happens, like evenly and perfectly. I
mean, like in the last day, so like, you know, as a rough as a kind of rough estimate, we can say in the last decade. So not 18 years. It’s been it’s because of this monetary policy or because of whatever you want to say it’s because of but let’s just say that that might have been some sort of contributing cause it’s not 18 it’s been 10. Yeah. And we’ve had a lot of demand increase because of population, right. But But yeah, right. But so look, we got to go by this important to my patio story. Because I was thinking about the other day, this food inflation thing goes away because I had someone tell me what’s it like? Well, I don’t see this inflation when I go to the grocery store. I don’t know like, tomatoes are still roughly like my little country, Taner of cherry tomatoes that are imported from Mexico. They’re still you know, mad there might not be whatever they were before and every 20 cents higher or something like yeah, I don’t know though. Like how many tomatoes are in that like so because so even when you go so on patio season now if you go to like the large majority of establishments, I’m a patio junkie, I love seeing the patio. When you order a beer, which I don’t need much anymore, but if you order a pint is no longer a pint in the large majority of places. Like they give you less beer in the glass. It still looks like a pies, but it’s actually not really yeah, they don’t have just like, just like, and so but but it’s sold
as a pint.
Well, it’s not No, it’s not actually listed as a pint anymore. Most of time. It’s all this is pie, but everyone is used to calling it a pie. So just like I’ll give you the pint to this and they just bring you the glass of beer. Right? Just like glasses of wine.
five ounces. Now for almost all of them. That’s crazy. Yeah,
six and nine is now the exception. five and eight is the norm for so like the small glasses, five ounces, the big glass I know. So like if you’re moving it was six ounces, you remove an ounce What’s that? That’s 15%, right? Something like that. So it’s a 15% difference. The actual cost is going up to plus the cost is going up and you’re getting 15% less like these are these are I know it’s like relatively insignificant stuff like
this stuff kills you.
Well, yeah 15% here plus the members of plus the price increases so so in the last five years because that’s probably the trend there if it’s gone up 10% in price and you’ve lost 15% you’re talking like a 25% difference in your food costs when you’re going out there like it’s a big difference right? Like you said if there’s a few little less cherry tomatoes in the thing, like everything matters gonna have to start counting cherry tomatoes out of cans. No inflation well blew my mind when I looked at the glass of with waitress I’m like what this is is this apply to me She’s like, Oh, no, we kind of stopped doing that like that. A lot of places didn’t want the line on the glass to mark the pint anymore. They just it’s just a fill line even sometimes now it’s different. Yeah, got it. I don’t drink beer haven’t drank had beer in so long. I don’t even know that’s I’m surprised. But the wines that I totally see it
yeah, it always happens doesn’t just happen without always
look at it like five ounces,
or five ounces. Like, we like to win the way you drink your white wine when you
like to sit two shots done. I want to explain one thing, because a lot of times, people will come up and say, well, you you think interest rates will never go up. And they’re always going to be low. And I just want to be very clear on something. To Nick’s point earlier when he said another word I forget the word you use. But if there’s a black swan event, you said if there is some kind of bond market panic. And what I mean by that is that the way interest rates are formed our there’s two scenarios, there’s the central bank’s decide the overnight lending rate. And that kind of dictates the variable rate that banks use to get your variable rate mortgages. But then if you have a fixed rate mortgage, it’s not really the central bank’s deciding what are influencing with the prime rate would be at the bank that dictates your variable rate mortgage, if you a fixed rate mortgage, it’s the bond market that is dictating interest rates. So if the bond market is really active and strong, and so for example, if there’s a lot of demand for bonds in the US and Canada and government and bonds and that kind of stuff in the bond market, it’s really strong. The interest rates are the returns on those bonds can be less because there’s so much activity in so much demand and it drives down the five year fixed rate. But if for whatever reason, and US Treasuries are some of the you know, most sought after type bond in the world, because the US taxpayer stands behind those and us taxpayer, there are millions of them. And they’re really trusted. It’s the biggest economy in the world. So everybody thinks I’ll ultimately get my money back, because it’s the US taxpayer standing behind this stuff. But if for whatever reason, there is a loss of faith in the bond market, where people are like, you know, what, I don’t think I’m gonna get my money back or inflation is going to be so high that it’s not going to be my Nick, Nick your example earlier, but the negative interest rate over the 10 years isn’t going to be like a little bit, it’s going to be a lot, forget it. And if people kind of rush out of the bond market, that would be a situation where even though I think the central banks would want low interest rates, there could be a period of time before they’re able to act, that interest rates might go like sky high, like a really high. And that would be definitely a massive, massive problem in the financial world. So there are situations where interest rates can go sky high, it’s not that we’re saying they can’t we were just saying that the central banking system and the financial system, the way it’s set up right now doesn’t want them to go up. And when you have the heads of the International Monetary Fund like Christine Lagarde coming out and publicly saying that she wants lower rates and saying things like we understand, there are some side effects that warrant vigilance, but their overall net positives, they’re saying they want low interest rates, they’re even saying that they want negative interest rates, this stuff is going to be around for a long time. And it’s why property prices might not take 18 years to double again, maybe it even happens to Nick to in your example, in the last 10 years or last decade. Maybe it happened sooner. Again, who knows. But I think the good news and all of this is that, in in Canada, We are so fortunate where we live, it’s a great country where we live, if you happen to live in the Golden Horseshoe area of Canada, it’s actually an economic powerhouse. As an example, New York, Los Angeles and Chicago together make up 17.6% of the GDP of the United States, Toronto on its own, makes up 18.6 of Canada’s. So I’m just trying to share that like how much of the economic engine is driven strictly straight out of Toronto. And if we live in the Golden Horseshoe, where we’re all benefiting, that even if you’re living in southern Ontario, if basically almost all of Ontario is benefiting from that. But basically, the Golden Horseshoe is for sure. And then if you know some of these policies and some of this stuff that’s happening, you know, the way we always talk to everyone is that like, if you know this stuff’s happening, even if you don’t like real estate, you can create equity for yourself in other ways you can start a business on the side, even if you have a beautiful career that you love, you can start a side hustle on the side and create equity out of a business that you create. We know Nick we know multiple people with side build
multiple people with little businesses a huge business we know people who have sold one business and might sell another bit like we know lots of people who’ve done this that you are we’re all capable of doing that kind of stuff. We just believe that that’s the best way to protect ourselves to have some equity some sort of leverage so if it’s real estate and might be creating a business, you’ve likely heard Nick and I talked about like gold and silver as well because we believe that’s an insurance policy against this some of this stuff that we’re discussing, but there’s We are fortunate to be living where we’re living because you can get good properties in a great economy and it can automatically protect you from some of these banking policies. So anyway, if you’re if you’ve heard all this stuffing like holy crap, but what the heck are these guys talking about? They’re definitely positives. Oh my gosh, like to know the rule we just like to know what’s going on. And we’re fascinated fascinated by this negative interest rates of also you know, what I just want to read off is International Monetary Fund document. It’s called enabling deep negative rates to fight recessions a guide if you want this what we’ll do is after we get off this podcast here, I’ll put this on my Twitter. I’m just at Tom kharadze. And we’ll just put a link out to this IMF paper so if you want to read it for yourself and have your jaw dropped to the floor as I did that’s that or put you if you can’t sleep you can print this off and it’ll definitely put you to sleep there’s also that as well yeah for sure. Yeah, that’s it Nick anything else to add or you want it I mean, there’s so much stuff with this stuff. There’s all realistic stats and things like that we’ll leave that for another day but don’t you think over I think that’s around this this stuff? I think it’s kind of good with with the recent things that are happening just so you know, there’s enough there’s that one economist we were talking about the said the Can’t he feels now can is going to be cutting rates in the fall with multiple cuts there’s actually a couple more little followed oh really like later this year they expect because they The Canadian Dollar starting to get too strong. They feel like they’re and because the US it looks like might go into into like a weakening mode. Like Canada can’t keep it it’s too strong for too long so they’re gonna have to do the same thing. It’s a weird part because these banks come out basically say we need interest rate cuts of three to 6% to fight off a recession. So if the if a five year fixed mortgage right now is that 3% basically it is right under you. And we need a three to 6% cut to fight off any next recession that comes our way. Well, that’s
negative three
we need you got to talk about the overnight rate we don’t know which is below three already. Right. So
yeah, Agreed. Agreed. I just means it’s just crazy. And one other thing we do need you to write that particular that I’ve been bugging you about because Nick is an expert on patios. And then one of my personal favorite patios is this one patio in an area of but Ella Croatia, and it’s called the restaurants called put that out there, right? Yeah, put that out. And it’s the best patio that I’ve ever sat at. Just because it has you know, I’m talking no yeah,
it’s very nice, but you’re missing
one No, no. Personal number one
No, no, I know you have more experience with it. I will might not be top 10 I will be really Oh yeah. Really? Yeah, it’s great. It’s phenomenal. I love it but like
there’s only one place and the reason I like that patio is because you’re on the beach and literally what Nick maybe 100 feet not even Yeah, there’s some like stunning ones.
Puerto Vallarta one sticking out on the cliff
Dr. Dahlia
one sticking out over the cliff on the water like astonishing Santorini one of the I can maybe believe yeah there’s Oh yeah, this one is free I think it was like called like Lyft or something right? It’s astonishing because it’s right where the sunset is like going from my beach spot to this patio is that you can’t do that a book that was professional waiter serving wine that you can’t do that you can so there’s different ones it depends if it’s like daytime for lunch for that and then if we have a different category for like you know dinner ones that are like different level yeah I might have to category nominate pointed out
the number one okay I know many number one for be for that is pretty good. Oh
yeah for the for that is pretty good. There’s not much to be done is that is right up there. But some of those other ones in like the right time of day is like stunning. Got it?
Yeah. So if you see Nick, tell him to write the book. We want the audiobook. Enjoy the summer, everyone. Hey, everyone. It’s Tom crowds against hopefully enjoyed that chat. I really want Nick to create this patios of the World Book. So if you see Nick, make sure you let him know. And I will put out on Twitter that I am a link to that IMF report that I was discussing on this episode of the podcast my Twitter handle is just at Tom creds on Twitter. And if you want access to some of the reports and some of the data points that we were discussing on this, you can always get those on this podcast. You can get those at rock star inner circle, calm forward slash reports. That’s rock our inner circle.com forward slash reports. Hopefully you’re enjoying the weather. I think I almost passed away today because I was running in the middle of the day doing a CrossFit style workout. And that was a little too hot to actually do the workout. But somehow I survived and I’m here so hopefully you’re enjoying the weather we are and that’s it. Please be living life on your terms. It’s one life we might as well live it on on your terms. I stumbled through that I’ll end off with your life, your terms.