How to Survive the Coming Collapse — No Fear, Just Facts

If you have a 401k, a savings account, stocks, bonds, or even just cash sitting in the bank, what I'm about to reveal about America's debt crisis could either protect your wealth, well, or leave you pretty devastated, potentially by 2026. According to U.S. Treasury data just released a few days ago, America's national debt just hit about $37.5 trillion. That's about $110,000 for every single American, man, woman, and baby. And the Fed is cutting interest rates while inflation sits at almost 3%. And the government is paying $3 billion just in interest every single day. This is not sustainable. And the wealth transfer is already happening now. My name is Felix Prehn. I'm a former investor and banker who spent years investing and studying how Wall Street actually operates. I'm also the founder of the Goat Academy, where we taught over 20,000 students. I'm also the co-founder of Trade Vision, where we provide news and data that's better than what most retail investors get. Well, everybody gets, really. And I'm dedicating my retirement to teaching regular investors, which is what I used to be, how to protect their wealth from the schemes and the financial engineering out there. And for this video, I've analyzed Fed reserves policy statements, Treasury debt data, all the way through this week. I've studied every major debt crisis from the Nixon shock to 2008. And we have fact-checked every number you're about to see. No fear-mongering, just facts. Today, I'm going to break down three critical things for you. America's $37 trillion debt trap. And why we are past the point of no return. The secret mechanism Wall Street is using to transfer wealth from cash holders to asset owners. And exactly how you can position yourself to be on the winning side of this very transfer. And by the end of this video, you'll understand exactly how to protect and potentially grow your wealth, no matter what happens next. So let's dive in. Let me put this in perspective. America's national debt is $110,000 for every American. So the average household has $283,000 in debt. It's like owing more than five times the median household income. But here is what makes it worse. The U.S. debt to GDP ratio is 118%, which means the U.S. owes more than the entire economy produces in a year. The last time the U.S. was at these levels? World War II. But back then, the U.S. was the world's manufacturer and creditor. Now the U.S. is the world's biggest debtor. And the $3 billion in interest every day? Well, that's like $80 billion a month, trillion dollars a year. That's money that could rebuild every bridge in America, fund education, financial education, even healthcare. Instead, it's going to bondholders. And it's about to get a heck of a lot worse. Imagine if your personal credit card bill was 118% of your annual income. Say you make $60,000 a year, but you owe $71,000. So say you earn $60,000 a year, but you owe $71,000 on your credit card. And you're only making minimum payments, which are eating up 18% of your paycheck. You can't cut expenses enough to fix this problem. You can't earn your way out of it fast enough. So what do you do? Well, you either default, bankrupt, or you inflate your way out of it by devaluing the currency. Now you're going to have your country. Guess which one the government is. Guess which one governments choose every time. And this isn't the first time. This isn't some new thing the U.S. has just invented. Let me show you the pattern. In 1971, Nixon faced a very similar problem. The U.S. had promised to back every dollar with gold, but they printed way more dollars than they had gold. So in 1971, Nixon ended the gold standard. What happened? The dollar lost value. And within decades, gold went from $35 to $800 to now $5,000, or wherever it's sitting as you're watching this. Inflation hit 13% in the 80s. If you held cash, you got destroyed. If you held real assets, gold, real estate, stocks, you didn't just preserve your wealth, you actually grew it. Let's jump forward a little bit in time. 1989. I was nine years old at the time. It was the Latin American debt crisis. Countries owed hundreds of billions they couldn't repay. The solution is called the Bravey Plan. Debt restructuring. Basically, it inflated away the debt by making the currency worth less. Who won? Asset holders. Who lost? People holding cash. What about the 2008 financial crisis? What did the Fed do? The Fed printed trillions of dollars through quantitative easing. So if you held stocks after that happened, 2009 just to 2020, how much would you have made? You made 400% in your stocks. But if you kept cash in your savings account, you lost purchasing power every single year to inflation. So you see the pattern. Every time government faces unsustainable debt because they were given money away and wanted to be popular, they choose inflation, not default. They devalue the currency and there is a massive wealth transfer from the people who hold cash, the savers, to the people who own assets like stocks and real estate and so on. And we're at that point again. Except this time, the US dollar is the world's reserve currency. So what are they going to do? They're going to create massive inflation. Your savings will become worthless, which we've seen many, many times in history. Look at the Weimar Republic, Zimbabwe, Venezuela, and so on. It destroys the middle class. Now you could, of course, say, okay, why don't we just have austerity slash spending, cut government programs? But it's never going to happen because no one's ever going to vote for that, right? People are selfish. Try cutting social security. See what happens. You're out of the office as soon as faster than you can say. Plus it leads to recessions, which makes the whole thing possibly worse because your economy shrinks. Can you default on the debt? No, but just destroy the dollar, but destroy the US economy overnight. So it would literally tank global markets. It's just mutually assured destruction because every country in the world holds dollar assets. So therefore, it's not going to happen. Never going to happen. Could you tax your way out of it? Well, you'd need to tax 100% of income from the top 1% for years just to make a dent. And they would all be gone by day two. So it really wouldn't happen either. Well, how about the Trump plan? Well, he says you can just grow your way out of it. Well, you need about 10% GDP growth for decades. Also never going to happen. So the reality is there's no traditional way out of this debt trap. There is only one path that actually makes sense. It is controlled monetary reset using inflation. They let inflation run higher than their 2% target. We're already at, what is it, 2.9%. And that inflates away the real value of the debt. But here's what Maltzu doesn't want you to know. The crucial skill isn't picking what to buy. It's knowing when to sell. That's what separates the resale investors from the pros. And I'm going to show you the exact rule book. Now, before I show you exactly how this wealth transfer works and the specific assets to own, I want to invite you to a masterclass that I recorded for you. It's only 15 minutes, but it gives you completely for free the exact strategies, the rule book that Wall Street uses to select stocks that Wall Street uses, but retail investors never see and show you how to position yourself for what's coming. I'll provide all the rules, all the strategies, and I'll put you into a much, much better position to protect and grow your wealth through this transition. With access to that, it's the first link down below at felixfriends.org slash getfree. The hint is in the name of it, felixfriends.org slash getfree. So let me pull up my little slides here for you. So you're going to see exactly how this plays out in terms of strategy. Who wins, who loses, and most importantly, how you can position yourself to be on the winning side, more likely. So this is the part where we get really into education. Grab a pen, grab a piece of paper, because you're going to want to take notes. And I can't promise that these videos are always available. You might've noticed that on the last week, we got banned from YouTube. Couldn't upload a thing. Couldn't reach out to you, couldn't message you. So let me draw this out to you. At the top, you have the government with their 37 trillion in debt. What do they do? Well, they issue bonds so they can borrow, right? Who buys them? Well, the Fed, foreign governments, pension funds, regular investors. So Fed and investors, they buy these bonds. Now, the government can't actually repay these. Now, the government can't repay this debt with traditional means. We've established that. So what's the mechanism? The Fed keeps interest rates relatively low and allows inflation to run above target. I mean, they've just cut interest rates. Inflation's at 2.9%. Real rates are barely positive. And think through the math here. If you've got inflation and it's at 3% and your savings account is paying you, what, 0.5%, what are you losing? Well, you're losing 2.5% purchasing power every year. Now, it might not seem like a lot, but do this for 10 years and you've lost 25% of the value. It's just gone. Your wealth, gone. And that same inflation also erodes the real value of the government's debt. So they're going to be paying back with cheaper dollars. Meanwhile, asset prices, stocks, real estate, and so on, they inflate because there's no more money around. More dollars chasing the same assets equals higher prices. Stocks go up. Real estate goes up. Gold goes up. Not because they're worth more, but because the dollar is worth less. That's the wealth transfer. So you have stocks, they go up. You have real estate, that goes up. You have gold, that goes up. And then you have cash, which goes down. So you have two groups. You have the cash holders, who are also the salaried people, the full-time job. Put FT in the chat because this is going to affect you. You lose value every time. You get poorer every year. And then over here, you have the asset holders, who are in real estate and stocks and commodities and so on. They don't really preserve their wealth. They grow their wealth because the government inflates away its debt and the wealth flows from the cash guys to the asset holders. Now, go figure who's already wealthier. Is it group number one or is it group number two? It is, of course, group number two. And this isn't theory, by the way. This is exactly what happened after 2008, after the pandemic, after every major money printing event. And it's happening right now. The question is just, which side of this transilver will you be on? And you don't have to go back far to see what's going on. In 2008, the Fed, their balance sheet was $800 billion. By 2014, it was $4.8 trillion. They printed $3.7 trillion of money. What happened to asset prices? Well, from that crisis to COVID, the S&P made you 400%. So this is like a hidden tax, basically. It hits the poor and the middle classes hardest because they hold most of their wealth in cash and they get paid by salaries. They don't make their money from investments. Let me make this a little bit clearer for you. Say we just have the current 3% inflation and say you have $100,000. What do you lose? Well, you lose $3,000 a year. Now, it doesn't sound so bad, but over 10 years, that $100,000 becomes just $74,000. Now, that's the sting, doesn't it? So you've lost over $25,000, which is 25% of your wealth. It's just gone. Now, what about the investor? Well, the investor also has $100,000. And say you just stick it all into the S&P 500, some index fund, and say you only make 7% a year, which is sort of the really, really, really low kind of annual return. We're being conservative here. It's done 10% over the last 30 years, 12% over the last 10 years. What happens? That $100,000 becomes $198,000 just through the power of being invested. Now, you still have inflation. I get that. You still have inflation, so that's going to eat away some of that. But even adjusting for that 3% inflation, you still have $146,000. So you're basically 50% better off because you're invested. So that's the transfer from the cash holders who lost 25% to the asset holders who gain almost 50%. So the question is, what should you own? And what should you avoid? So let me break this down for you by asset class. And remember, this isn't financial advice. I'm not your financial advisor. This is education on how these mechanisms work. You've got to go away to your own research and talk to your own people. Well, first of all, I wrote here commodities. I actually would start off with just, you just want to own businesses, so stocks or ETFs that benefit from inflation. Tech companies, they have pricing power. Microsoft, Apple, Nvidia, they can just raise their prices, maintain their margins. Think energy companies, right? They're just going to raise their bills. What about banks? Well, they're going to benefit on the high interest rates on the loans. Commodities tend to do well. We're pretty significantly into, you know, gold and silver and other metals right now. And again, if you want to learn the rules for that, phoenixfunds.org.getfree, learn the rules on that. Energy, yup, tends to do well. Agriculture goods tend to do well. What else is doing well? Well, guess what? Defense contractors, right? They can just charge more. No one's like, oh, I'm fighting a war. Your ammunition's too expensive. No one's going to pay. Cybersecurity, that's a big boom zone. The whole space tech area. And then just think through again, like who has pricing power? Healthcare. You're sick, you're going to pay whatever it takes. What about utilities? You're going to keep the electricity on, aren't you? You're going to keep that aircon running. So they have pricing power. And then consumer staples, stuff that people need. They're always going to buy. Powerful brands, powerful brands. During COVID, companies like Pepsi, they raised their prices. People sucked it up. Why? Because they're addicted. But ultimately, what other strategy I can give you, it really depends on the quality of your investing skills. And that's kind of what this community is all about. But you're going to have to dig a little bit deeper here. Understand position sizing. Understand your timelines. Understand how much liquidity you need in case something bad happens. You don't have to sell. And you might want to do some rebalancing so you don't end up just with a pure, you know, semiconductor portfolio. Now, what should you avoid? Look, there's a lot of speculation out there. The mean stocks, some of the crypto gambles and so on. Some of the tech stocks have valuations that seem very stretched depending on what your risk profile is. It doesn't mean you shouldn't be in tech, but there are other opportunities. Like for me right now, what I'll be buying, it's metals mostly. Some of the crypto plays have done very well. Some of the solar plays have done very well and looked like they might continue. But I'm not really loading up on Magnificent Seven stocks right now. I'm not really loading up on semiconductor stocks right now. Not because I think they've got bad businesses. I just feel like they've run ahead. I say feel, that's the wrong word. My rules tell me they've run ahead and therefore I'm waiting for them to pull back a bit. But the key thing here is get rid of all leverage. Margin calls are the ultimate disaster. Understand your tax planning. A lot of people are going to be doing exactly what they're doing right now. If you were doing it and say a Roth IRA, again, I'm not a tax advisor, you might have a much better outcome. Whereas everybody else is just following the herd, buying whatever the latest thing is, which means Wall Street's probably already bought it. Now they're telling you about this so they can sell while you're buying it. But if I can just summarize this, and I'm hoping that this is sinking in for you, you have a choice. You can either get poorer by not being invested, being fearful and holding onto your cash, or you can get richer potentially by being invested. So really there is no choice. The whole thing about panic and fear is often to scare you out of investing. My goal is the opposite. I want you to be invested responsibly, guided, educated, skilled. But really, you know, what's the choice? You've got to be in assets. That's the only way that's going to happen because you are not going to get the pay rises, the salary increases that you want, and your cash is going to lose tremendous amounts of value. The dollar already has lost a lot of value this year, and that's intentional. They're going to keep doing that. It's the only way to deal with the debt. If you've got some value out of this, share it with a friend. A lot of people don't understand this yet, and it's a shame. So my hope is that we can educate everybody out there so everybody becomes part of the richer people. Because if you're richer, you can do better things. You can look after the people who don't understand how this works. It can make a positive impact. So please, please, please share this with people and spend the next 15 minutes investing in your skills by watching my free 15-minute masterclass at phoenixfunds.org slash getfree. I love you watching. I love you for tuning in. I wish you all the best. Ray Dalio, the founder of Bridgewater Associates, the largest hedge fund in America, has been warning about a potential debt death spiral. And this isn't just another market correction we're talking about. This isn't a doom and gloom video. No, we could be approaching an enormous wealth transfer.