Video Closed Captioning:
this meeting is being recorded good
morning good afternoon good evening
folks michael zuber one rental at a time
talking with a 10 year veteran of wall
street how you doing taylor
doing great thanks for always having me
this is so much fun oh dude i have i
have a blast every time i have no idea
if anybody watches our videos but at
least i have a good time
and we have no idea what each other
going to say we just go back and forth
and rave and it seems to work out there
you go there you go well hey something i
wanted to talk to you about because uh
you know you’ve you’ve traded money ran
money before is
i guess i’ll ask it this way first how
important is following at least at some
level what is going on in china uh you
know the second largest economy
out there um historically speaking has
been something you watched you don’t
really care you know tell me about how
you consider china
oh i mean economics at the end of the
day are what drives markets and you know
stocks et cetera being very small pieces
of those markets but nonetheless
economics are what drive it from a
top-down perspective and to your point
the second largest economy in the world
is china and they are this blossoming or
has been throughout the past decade or
so two decades have been this blossoming
middle cap middle class that’s driven
so much in the way of demand et cetera
they’re obviously a huge labor supply to
the world um they are hugely hugely
impactful and a piece of the supply
chain to the entire globe hugely
important yeah i think that i agree
right it’s it’s
especially as i’ve always looked at them
casually is kind of the
right or wrong to me they’ve always been
kind of that manufacturing engine right
as i was coming up they were like the
cheap labor now obviously it’s gone
elsewhere as middle classes come up but
now let’s fast forward to 2022
and china
i
i got to tell you i look at some of the
and again their command and control
central you know central planning all of
that stuff president xi jinping
yes xi jinping he has made some
very interesting decisions that i think
has crushed the middle class crushed the
economy and frankly he’s up for his
10-year leadership later this year
i mean he whether it’s covid or or what
he’s done to the real estate market or
what he’s done in the stock market i
don’t know where you want to go first
we’re going to talk about all three
but
i don’t think we the rest of the world
have fully felt the impact of china
going backwards i think they’re
retreating from what you said the
blasting i think they’re going backwards
man
no doubt no doubt his predecessor and
his name is escaping me but his
predecessor was much more of an open
economy thinker um xi jinping is much
more of a nationalist and so he is a
let’s close the doors let’s focus in
internally internally on how we’re going
to run the economy and he does not like
capitalism so think about old cold war
days like things are playing out in the
same function where you see china taking
a step massively in one direction
obviously russia is along their side and
then the western world is shifting the
other way and diabolically different
views of the world i mean look at jack
ma
jack ma
so he he steps up and makes some
comments against the government more in
a capitalistic tone and he goes missing
for six months what happened to jack ma
where is he he’s gone and he resurfaces
six months later and so i mean their
tone is obviously very much so
towards the government-centric
rant economy than that of everything
that we’re used to seeing yeah i think
is it called the greater society
or
again yeah
something like that yeah yeah i think i
think i think it i think that is their
moniker basically basically everybody
everybody goes up there’s not the
you know the one percent as we would
call it here in the state so correct
yeah it’s um it’s pretty interesting to
watch and again i they’ve gone backwards
in so many so i think they’re a
punishing entrepreneurship
i think that is happening would you
agree with that statement
oh i i i mean case in point look at jack
ma again yeah he speaks out and it talks
about the the efficiencies of capitalism
and the ability for people to fight for
a better life for themselves
we have to go back to the adam smith
conversations et cetera but at the end
of the day you know everything comes
from the
person in a capitalistic society ability
to make their own way and make outsized
growth based upon that
is really what spurs on innovation and
growth and that’s why our country has
been the economic leader that it has
been whereas others have taken another
approach we want to share wealth and um
i hate to say it and
this is i’m not hugely political one way
the other but you cannot point to an
economy and say here is a really good
case in point for socialism or
you know communism whatever it might be
fascism whatever extreme you want to
look at here’s a great point as to how
this works you can’t find one well again
in the moment the decision is made to
punish entrepreneurship it may feel good
it’s kind of like rent control yeah it
feels good the first couple of years but
there’s all these other impacts so what
does this mean for china it means all of
the entrepreneurs the future innovators
are going to leave
they’re going to flee
some legally some will just get out any
way they can so you’re going to see
china not be the innovation engine
they’ve been the last couple of decades
and that will have ramifications without
question and unfortunately for them a
knock-on effect of that is they might
then become the low-cost labor supplier
for the world instead again right they
may go backwards second they have chosen
to punish uh so i’ve actually been to
china my wife is from taiwan we have
family over there so i’ve been there i
visited
uh they had a couple of decades of
building basically ghost cities i have
been there i have been in a 20 or 30
story building that looks finished from
the outside that is concrete on the
inside no wiring no plumbing
nothing
so they have chosen to
redline lenders and home builders
and they’ve essentially crushed real
estate i believe their real estate
prices are falling now that’s not being
reported transactions are certainly
following
chinese don’t have 401ks they don’t have
pensions per se
except in the government
for most families it was a lifetime of
savings and they bought a home
if they were lucky enough they bought
two that second home was not a rental
it was a savings account they didn’t
rent them out they didn’t they didn’t
finish them
it was their
asset that that would take care of them
in retirement and they’ve just destroyed
them they just destroyed the middle
class and we saw this six months ago in
a very early starbucks report where they
stopped buying starbucks coffee followed
on by a nike report where they stopped
followed on by quarters later the same
thing so their consumers
uh are retrenching like never before i
believe the chinese economy will have a
negative not four percent growth which
is unheard of low for them i think it
might go negative but they won’t report
it because again i was going to say you
aren’t going to see it no you’re not
going to see it it won’t be reported but
it’s happening
uh over there what do you think yeah
yeah that’s that’s the thing with with
chinese economic data is that you’ve
always had to find tooth comb it because
you can’t just take it at face value
they say they grow about eight nine
percent et cetera and when you start to
back things out and look at things from
the accounting perspective that we do
it’s like
a lot like five and a half percent to us
yeah
yeah that’s a very that’s a very
interesting interpretation of the
general ledger yeah so do they just out
of curiosity when you were there and you
were in these buildings or or one of the
buildings whatever it may be do they try
to keep people out of them is this
something oh for sure yeah
yeah i mean i mean so again my wife
speaks the language we have friends and
family there right so we we were given
i don’t know i don’t know if it was
behind the scenes look but we were taken
where we should have gone we were
foreigners we probably shouldn’t have
been there
and it was it was it was
it i mean i’ve never been to chernobyl
but i’ve seen the pictures where it’s
like it’s like like there’s a park and
there’s like toys laying it’s kind of
felt like that it’s like i’m
it’s this is this is it was really
really weird and it doesn’t look like
mario pole in russia right now because
it’s not bombed now no it’s actually
relatively nice it’s just a ghost town
it looks i mean from the outside it
could have been new york city
as soon as you got past the skin it was
like
they’re like 40 done there’s a lot left
to do
that’s got to be an eerie eerie feel it
was bananas it was weird it was weird so
again i think i think china again i
think we’re going to see a worldwide
recession
uh meaning worldwide negative gdp growth
as we sock out
uh dollars right because again the uh
the central banks from around the world
pumped about two trillion dollars into
the market in 2021
this year it’s estimated that world
banks will extract half a billion
however that’s a 2.5 bill trillion
dollar swing
right that’s got to come out of
somewhere i don’t see
we just got to get through the pain is
my opinion and i don’t think china will
be spared
yeah yeah and and it’ll be interesting
to see this and we talked about this for
a second but like they’re entrenching
themselves right now with russia and
they haven’t made a a full-on play to
move towards russian thinking or
supporting them in the war which if they
do that from a monetary standpoint or a
troop standpoint that will be economic
disaster is an understatement as to what
that will be for the chinese economy
what’s the the difference between what’s
going on with russia and china is that
china is a massive export economy
correct whereas russia is not as much of
an exporter county yes they export
energy so when we cut the ties to them
that’s an energy problem for them which
is 10 percent of their economy or
something like that but when you look at
it from china’s perspective if we were
to start to cut ties with them
and sanction them that would be a
massive massive massive hit because they
are so reliant upon their export economy
yeah it uh
that’s exactly why she won’t do it she
will not yeah
it would be economic suicide suicide
yeah it would be it would be a problem
well this has been a lot of fun i love
love speaking with you and see what’s
going on again where can people find you
yep follow us at life goal investments
on instagram we’re on all the platforms
but we’re most constant on instagram so
again it’s at life goal investments
awesome thanks taylor
you’re the man michael thank you