January 10, 2024 • 24 mins
Porter Stansberry is an American financial publisher and author.
Follow Clay & Buck on YouTube: https://www.youtube.com/c/clayandbuck
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:11):
You're listening to the Buck Sexton Show podcast, make sure
you subscribe to the podcast on the iHeartRadio app or
wherever you get your podcasts.
Speaker 2 (00:20):
Hi, everybody, Welcome to the Buck Brief. Special guest on
this episode, our friend Porter Stansbury is here. He is
the founder, chairman and CEO of market Wise, which is
the biggest independent publisher of financial research anywhere out there.
Speaker 1 (00:36):
Also very pleased to tell you that.
Speaker 2 (00:37):
I am doing a launching a newsletter with market Wise
in twenty twenty four, so a partner as well as
an advisor on all these things. Porter.
Speaker 1 (00:47):
Great to see you, Hey, Buck, It's always great to
see you. I just want to congratulate you on an
incredible career. Thank you. I think I saw you in
sitting out of conference maybe a decade ago. Yep.
Speaker 2 (01:00):
Yeah, I didn't have a job in radio and he's like,
I think this guy might be good at radio, and
now with Clay we're co hosting the biggest radio show
in the country. So thank you very much for.
Speaker 1 (01:09):
Being a laby. I told the audience, I said, this
guy is going to be an absolute star.
Speaker 2 (01:13):
Watch his career, and he was right, and this is
why I have him on the podcast, by the way,
so he could tell you all very nice things, which
I appreciate greatly. So Porter, I mean, you're you're a
guy who has made incredible calls over your career in
the market and that's obviously what folks over at market
wise do. I wanted to dive in because you wrote
something this is in my inbox, uh from from you
(01:34):
about not only what's going on now with Boeing, one
of the most well known American probably best known American
engineering related company. Maybe gees up there, but you saw
this coming. Tell me what you saw a year ago,
and then we can get into what's happening now.
Speaker 1 (01:52):
I think it's a fascinating situation because Boeing, among other
large American corporations, has been one of the folks who
has most fervently embraced the whole DEI mythology if you will,
the idea that that you can have a better corporation
of better business if you give opportunities that on a
(02:17):
pure metocracy would have belonged to someone else. You give
those opportunities to someone of color, or someone who's a woman,
or someone who has confused sexuality issues that somehow the
DEI theory is that that'll make your products better, that'll
make your customers happier, that'll make your profits bigger. But
what we see as investment analysts time and time again
(02:39):
that firms that embrace this kind of DEI I think,
or the general ESG. They call it mindset, actually perform
poor going forward, in part because their cultures get wrecked
and buck I'm sure you can understand this. If you're
working with a group of people and suddenly promotions and
raises and bonuses start getting doled out because of factors
(03:03):
other than performance, it has a really shockingly bad impact
on the culture. It leads to all kinds of bad
things happening. But the most notable thing is that the
truly talented people are going to leave and go work
for SpaceX, which is what they've done, and the people
you get left with are the people who are really
good at corporate infighting and corporate politics, but not necessarily
(03:25):
good at all at engineering. And as a as a
part of all that, I'd like to I'd like to
call your attention to the woman who is currently the
the chief operating officer at Boeing and UH. Her name
is Stephanie, and she has a thirty year career as
(03:46):
an accountant. So she was the you know, the top
accountant at Boeing Airplanes and and she has a degree
from Southwestern Missouri State and she has an NBA hold on.
I got to reference my notes for this because I'd
never heard of this school. Oh, this intellectual powerhouse, Lyndon
(04:07):
Wood University. So so what you've got here as a
as a as a female with no engineering background, And
I'll go public with this. I'll bet one thousand dollars
that Stephanie cannot change the oil in her car. But
she is the director of operations for Boeing, which is
the most important engineering firm in the United States by
(04:30):
a mile, and one of the most important companies in
the world. The whole global transportation infrastructure requires Boeing aircraft
and they need to be well made and safe.
Speaker 2 (04:41):
Well, this is this is in the headlines obviously porter
because a piece of register bring everyone up to speed
for this week, A piece of a Boeing seven thirty
seven to nine Max fuselage tore off and people can
see it. I mean, there's video of this from the
plane from the inside tore off mid flight during an
Alaska Airlines flight and.
Speaker 1 (05:00):
This is this is this is not this actually is
not new. They've had They've had consistent problems with their
aircraft for at least the last six years, including too
fatal crashes, and they've had an engineering culture that was
gutted after the merger with McDonald Douglas in ninety seven.
But Buck, I want to get to a really important
point about this, would why on earth would you have
(05:24):
someone with no engineering background whatsoever with degrees from Southwest
Missouri State and Lindenberg sorry Lyndon Wood University. I don't
think that is the sharpest engineer or tool and drawer.
So why would Stephanie get one of the most important
jobs in engineering. Well maybe because she is the executive
(05:44):
sponsor of Boeing's Women Inspiring Leadership. What's that, Buck, It's
a group that's dedicated to increasing gender diversity awareness and that,
by the way, is right off of Boeing's website. So
what is going on at Boeing is you have a
whole bunch of people who are being promoted and getting
(06:05):
opportunities because of their political orientation or because of the
buy in that they have made into ESG and DEI.
But that is not the way to make safe airplanes.
We've already seen this happen. There is an Atlas Air
flight in twenty nineteen that crashed near Houston, where both
pilots were, in my opinion, most likely there because of
(06:25):
the role they played in meeting diversity targets, not because
of their flight awareness or their success in training. And
both have failed out of training. So this is a
real issue. And it's not just for companies like Disney,
which you're performing miserably. I mean, at least a theme
part can't fall out of the sky. But I'm not
so sure you'd want to go ride those roller coasters
right now, because you're going to have a whole bunch
(06:46):
of people who are not qualified in jobs that are
very demanding and very technical. And this is not just
going to impact Boeing, It's going to impact our whole country.
Speaker 2 (06:53):
I want to ask you about how the shareholders you
think of some of the companies out there have every
at you know, whether we're talking about Budweiser or Disney
or you know what's going on with Boeing. We'll get
to this though in one second. You know, is there
a change coming to the US dollar this year? Well,
According to former Walls insider Tikachuwari, he very much thinks
it could happen as soon as this year. He thinks
(07:15):
the biggest risk to Americans is not the war in
Ukraine spreading even further out of control, or some kind
of a conflagration in the Middle East, but the security
instability of the US dollar. And he's so adamant on
this point that he's published a video with all the details,
including how you might prepare go to move your cash
now dot com to learn the three steps you need
to partake to protect and grow your wealth in the
(07:36):
coming months. In a year that's moved your cash now
dot com, or you could end up holding a bunch
of dollars that are worth a lot less than they
are now paid for by Palm Beach Research Group. All right, Porter,
the it feels like in the last year or so,
I mean you wrote this piece. I saw the piece,
and you know we revisited it today. I mean I
saw you saw it when it came out. You visited
today about Boeing and what's going on there as a
(07:58):
corporate culture. But we've had a number of very high
profile instances, whether it's the backlash at Budweiser a lot
of pressure on Disney. When does corporate America you think,
start to listen to the voices out there that are
shouting stop doing things that aren't about good business but
you think are about good social justice.
Speaker 1 (08:21):
Well, I think that there's a lot of reasons for
investors to have made that decision already, and I think
that's happening. But I think you're going to see something further,
which is when planes start crashing, When when Disney theme
starts fall apart. You know, there's there's worse things that
can happen than a failed movie. There's worse things that
can happen. Then, you know, changing the the snow White
(08:44):
film to become a you know, a play on diversity,
and those things are going to impact our entire economy.
It's it's it's I think when when this stuff, when
this rot gets into health and safety, that's when you're
going to see a really big political shift. And the
chieft is already underway when it comes to Boeing, though
buck let me tell you how I found the problem,
(09:07):
because you might you might not remember, but I first
started writing about this a year ago in January of
twenty twenty three. And what I said back then was
that Boeing stock was going to collapse. And I said
that not because I suspected that the planes to start
falling out of the sky necessarily, but that I saw
(09:27):
that the entire engineering culture had been gutted and it
had been replaced, first of all, with accountants from GE.
And what they know how to do is wreck corporate
balance sheets. That's what they did to GE and that's
why I recommended shorting the stock for so many years.
They did exactly the same thing. The two people who
are running Boeing now, both the CEO and the CFO,
are veterans of G's finance group, and they do the
(09:50):
exact same playbook. What did they do. They took Boeing
from a company that had net cash on its balance
sheet to a company that now has fifty two billion
dollars in debt, and that's including net debt of over
forty billion dollars. They've got to refinance about twenty five
billion of that in the next two years. And because
(10:10):
of the safety issues of their planes, they're also facing
the potential downgrade into junct bond status if that happens,
their interest expenses are going to soar, and there's a
real risk that the company could go bankrupt. Nobody sees that,
but that's what we were talking about a year ago,
and we updated that short call in December on the
(10:31):
twenty second, about three weeks ago. So I just want
you to realize that my work on Boeing is not
about this latest news thing. It's about the fact that
for the last five or six years they've been building
shoddy aircraft and their balance sheet has been destroyed by
their leadership. And that's why I started focusing on it,
because the bad choices I could see looking at the
(10:51):
finances of the company have also flowed through now to
the engineering of the company. It's a very serious matter,
not just for Boeing shareholders, but also for the bond
markets and for our country's transportation networks.
Speaker 2 (11:03):
What do you think the future then holds for not
just Boeing, but the US aerospace industry in general if
this has happened. I mean, I know, for example, you're
talking about the people that make the planes. Well, I
know a bit about people who go into the planes.
I have friends and colleagues who you know, got a
lot of people former military. They become the airline pilots
are the ones flying these things, and they say the
(11:25):
DEI wokeness problem. I mean, look, United is bragging about
how they have changed, you know, the incoming class of
pilots to be more diverse. But I also know that
the training programs that pilots are going through so they
can meet the standards necessary for training are being lowered.
That is happening. So the people that are moving the plane,
you're telling me that the people making the planes are
(11:47):
losing a step or ten. And the people piloting the
planes right now are also not the same caliber than
what people have been used to for a long time.
Speaker 1 (11:58):
Yeah, that's a very serious matter. And again, if you
look at the kind of people that United has been
using to fill their new pilot academy, right they have
intentionally partnered with some of the lowest performing schools in
the country in terms of SAT scores and academic achievement
because they're the right color. That's just racism. And you
(12:21):
know when you combine racism and Marxism, you're not going
to improve the Marxist track record.
Speaker 2 (12:28):
Well, also, you know, we can, finally, I think, have
a discussion about merit and standards and hiring in a
more direct way than in a long time porter because
the Supreme Court came out and said, Okay, you guys
at Harvard, which is a whole other conversation, what's going
on there, But you guys at Harvard have been just
straight up discriminating against Asian kids. That was what got
this whole thing started. That's unconstitutional, that's illegal. You can't
(12:52):
actually do that, and you can't continue this system of
pretending you're not discriminating by race when you are. Well,
that's in college admissions. But it's starting now to filter
I think through the broader American political and an economic landscape,
which is a good thing. But I think we're just
in the early early stages this.
Speaker 1 (13:11):
Sorry I didn't mean interrupt, but I just want you to say,
hasn't this been the kind of thing that for many
years people smiled in grandad and said, yes, you know, yes, yes,
we're all in favor of equal opportunity, and we are right.
But no one took it. No one took the idea
seriously that you would get a guy who couldn't even
legitimately gain admission to a competitive university and tell him
(13:35):
with a couple of months of pilot training. He's now
going to be captive captaining you know, a United aircraft
with two hundred people on board like that. There is
there is such an absolute, utter lack of judgment. There
is such a disparity between the theory of DEI or
ESG and the reality of engineering and flight, and those
(13:56):
two things are on a conclusion conclusion course. But let
me just give you a couple of data points to
make this a little bit more objective. If you were
in charge of Boeing and you knew that your your
cumulative net income over the past three years is minus
twenty billion dollars, and that your twelve month interest expense
currently is two and a half billion dollars a year,
(14:18):
and you knew that your credit rating was one notch
above junk status at Fitch and SMP is, the last
thing that you would do is to let a door
fly off of your plane in mid flight. My point
about all this is the people running the company have
such poor judgment they can't even run the company. And
(14:40):
by the way, Bones one of only two major aircraft
manufacturers in the world, and it is a dominant defense contractor.
There's plenty of margin to be made in all those
defense contracts. So how do these guys lose twenty billion
dollars in the last three years alone, and how did
they run their balance sheet just in the last five
years from net cash positive to forty two billion roughly
(15:05):
and net debt. This is I mean, it's almost is
if somebody was deliberately trying to destroy this company, because
you can't make decisions this bad if you weren't trying.
Speaker 2 (15:17):
To port I want to ask you about a different
kind of landing, the overall landing that people are saying
might be soft or not for the economy in twenty
twenty four, which is going to affect the political landscape.
I just wanted to get your broad thoughts on that
in a moment. But first up, you know, a lot
of us are trying to get our finances in order,
and there's some great news for homeowners. Interest rates have
dropped and are now in the fives, a lot lower
(15:38):
than they were last year. So if you've been buried
in high interest credit card debt, now is the time
to break free. American Financing can help you access the
cash in your home to pay off your high interest debt.
Last year, their salary based mortgage consultants help customers save
an average of eight hundred and fifty four dollars a month.
That's like giving yourself a ten thousand dollars raise. That's
quite a way to start the new year. You know,
I rely on American Financing for my home mortgage. I
(16:00):
bought it last year, so I know that they're the
best at customer service and you can trust them to
come through for you. Call American Financing today eight six
six eight nine zero nine three nine two. That's eight
six six eight nine zero nine three nine two. Or
go to American Financing dot net. That's American Financing dot net,
NMLS one eight two three three four animals consumer access
(16:23):
dot org Porter.
Speaker 1 (16:25):
What are you seeing?
Speaker 2 (16:26):
I mean, I just want to give you the floor
for for a couple of minutes. Here, what are you
seeing for next year? Because it feels like the Fed's
telling us here, Jerome Pal everybody, we win, rates coming down, inflation,
beaten markets, fine, nothing to see here, no problem?
Speaker 1 (16:42):
What are you seeing? I think that inflation is going
to be intractable and very difficult to beat because of
the size of the fiscal deficits the United States. If
the federal government was able to snap its fingers and
double double the amount of income tax it collects, it'd
still be running a deficit. And you've got deficits at
(17:04):
that size. I just don't believe they can be financed
through to legitimate means, which means you're gonna have eventually
more interest rate manipulation, more bond market manipulation, and more
money printing. It's just a matter of time. And all
they've done so far really is just change the name
of what they're calling the MOUNTI printing. You know, they
used to call it. What do they call it? Easing? Yes, easying? Yeah, sorry,
(17:30):
there's so much jargon now I can't keep up with
it all. But the new way that they're doing it
is they've just been printing money and handing to banks
that have underwater bond portfolios. So there's something right now
in the order of seven hundred billion dollars plus worth
of losses and the banks on their bond portfolios, and
(17:50):
rather than accept any of those losses and have a
run on the banking system, the Federal Reserve is just
printing up money and then giving it to those banks
as collateral at par so that they don't have to
suffer the losses that they have.
Speaker 2 (18:03):
Actually, so the banks are effectively hiding losses because they
got on the wrong side. So what we saw with
Silicon Valk, for example, people say, hold on a second,
is this a problem elsewhere? You're telling me you think
it absolutely is a problem elsewhere.
Speaker 1 (18:17):
Yeah. Absolutely. I mean, if you look at Bank of America,
just as one example, Bank of America is the largest pository,
it's the United States. Its entire tangible equity capital be
wiped out if it had to, if it had to
write to market where its bond portfolio is. And the
reason why is because it made enormous investments in bonds
during the COVID bubble when interest rates are very, very low,
(18:38):
and then of course the FED had to raise rates
to stop the resulting inflation from all the money printing
that they did. So you know, the whole banking system
is just inside out and there is no way that
the FED is going to be able to By the way,
the FED doesn't even want to actually stop inflation. The
FED wants inflation to be three to four percent a
(18:58):
year so that they can print print their way out
of all these government obligations that they can't meet and
so that they can keep the banking system liquid. And
so I think that all the talk you're hearing about
the possibility of deflation or the possibility of a recession
in terms of nominal GDP as mallarchy, you're not going
to see any kind of actual recession because they're going
(19:21):
to print so much money and there is so much
deficit spending that in nominal terms, the GDP growth is
going to be probably between four and six percent over
the next three or four years at least. And how
will they do that, Well, they just deal with government
spending and they print the money to do it. So
that's going to have a really big impact on people's wages.
And you've already seen that happening, and that's a giant problem.
Speaker 2 (19:41):
And what's your take, border, I mean, you've been watching
this stuff for a long time. So CPI they measure
inflation and they tell us that you know, it's not
bad if you take what food and energy out of it,
right like so if you need to eat or heat
your home or put gas in your car or whatever.
I mean, it's the middle of the winter in a
lot of places. Other than that, they say inflation is
not that bad.
Speaker 1 (20:01):
Yeah, well, you know, I like to use real world
things for for pricing. And if you go and look,
for example, at how many how many minimum wage hours
you have to work to purchase a Ford F one fifty,
which is the most popular, you know, vehicle in the
United States and has been for most of my lifetime.
You know, the hours worked has has doubled or tripled,
(20:25):
and the price of the S one fifty that you
can buy at the dealer, I would guess it's up
fifty percent in the last ten years at least. So,
you know, we can argue about CPI we want, but
it has nothing to do with the impact of these
policies on real people's wages and buck. The saddest part
for me is the people who are suffering the most
(20:46):
from these kinds of policies and from DEI and from
ESG and all this stuff to defund the police, all
this stuff. The people who suffer the most are the
people who keep voting for it. It's not hard for
people like me and you to protect ourselves from inflation.
We go buy a property, We go buy gold, which
you can now buy at Costco, which I think is great.
(21:07):
You know, we go buy bitcoin, we go invest in
high quality stocks, which we have the training to do,
and inflation just keeps us floating along. But for the
people that we employ to you know, to take care
of our houses and our kids, and to teach school
and to do the plumbing and the electrical work. All
the people who actually work in this economy, they're getting
(21:28):
destroyed there. They're real wages keep going down at three
to four percent a year, and that doesn't take long
before you can't afford any kind of standal living. And
so when societies do that, what happens. You see a
huge uptick in gambling. You see that in America, the
enormous rise of online gambling is startling. You see a
big increase in prostitution because people can't make a living
(21:50):
in a you know, in a reputable way, so they
go into that Look at the what's it called the
Only Fans site where you have every college girl America
taken off for clothes to make some bitcoin. And the
other things that you see, of course, are just a
general breakdown of law and order. You can't even go
in a drug store anymore and buy deodor, and it's
all locked up. When or if ever are Americans going
(22:13):
to say enough of this. We need to have sound
money and have a return to a real legitimate free
market system. You know, I don't know the answer to
that question, but it didn't get me any time soon.
Not nless people are willing to default on government debt.
Speaker 2 (22:26):
Got to tell you it's classic because you're talking about
the cost of energy and people being able to forward
their bills. All the lights in the room where I'm
recording right now just went off. The TV screen went
off behid. So I'm not saying it's like word from
the Almighty or something, but I mean something did just
happen here where you know, it is tough to keep
the lights on. As you can see, it is tough
(22:46):
to keep the lights on. Something else I want to
tell everybody about. You know, if you feel like you
need a form of financial protection and diversification, gold has
been used for well centuries to protect people against inflation.
Gold is a global reserve asset. Countries are buying massive
amounts of gold as a hedge against financial collapse. It's
time to help protect yourselfs and invest in gold. Yeah, big,
(23:08):
big sovereign sovereign nation purchases of gold, right, my friends
at the Oxford Gold Group will help you understand why
you need gold in your four oh one k or
why you should have gold on hand. It's simple, it's easy.
The Oxford Gold Group is there to help. Go to
Oxford Gooldgroup dot com slash free and order the investment
god or make a purchase of precious metals and earn
up the twenty five one hundred dollars in free gold
(23:30):
Oxford Gold Group slash free. That's Oxford Goldgroup slash free.
So Porter, Actually, I want to know where can people
go to follow your research more closely? Again, I'm launching
a newsletter with market Wise this year, but you've already
got so many great phyticals. But they want to see
what Porter's thinking.
Speaker 1 (23:49):
Where do they go? Well, that's a great that's a
great question. And I asked my marketing team where we
should send people from information on this stuff, and they
said the best link to use is porters prediction dot com.
And that's of course my name, Porter, p O R
t E er porters with an S prediction dot com
(24:09):
and hopefully all the listeners can spell prediction. But it's
b R E d I C t i o N
dot com. Porters Prediction dot com or thanks for letting
me out. Absolutely, We certainly love to have your listeners stuff. Come,
come see what we're doing in our in our financial
news letter.
Speaker 2 (24:25):
Absolutely absolutely, and I'm excited to launch it in the
new year as well. Thank you so much.
Speaker 1 (24:29):
Porter. We'll talk to you again soon, okay, but thanks
for having me
You're listening to the Buck Sexton Show podcast, make sure
you subscribe to the podcast on the iHeartRadio app or
wherever you get your podcasts.
Speaker 2 (00:20):
Hi, everybody, Welcome to the Buck Brief. Special guest on
this episode, our friend Porter Stansbury is here. He is
the founder, chairman and CEO of market Wise, which is
the biggest independent publisher of financial research anywhere out there.
Speaker 1 (00:36):
Also very pleased to tell you that.
Speaker 2 (00:37):
I am doing a launching a newsletter with market Wise
in twenty twenty four, so a partner as well as
an advisor on all these things. Porter.
Speaker 1 (00:47):
Great to see you, Hey, Buck, It's always great to
see you. I just want to congratulate you on an
incredible career. Thank you. I think I saw you in
sitting out of conference maybe a decade ago. Yep.
Speaker 2 (01:00):
Yeah, I didn't have a job in radio and he's like,
I think this guy might be good at radio, and
now with Clay we're co hosting the biggest radio show
in the country. So thank you very much for.
Speaker 1 (01:09):
Being a laby. I told the audience, I said, this
guy is going to be an absolute star.
Speaker 2 (01:13):
Watch his career, and he was right, and this is
why I have him on the podcast, by the way,
so he could tell you all very nice things, which
I appreciate greatly. So Porter, I mean, you're you're a
guy who has made incredible calls over your career in
the market and that's obviously what folks over at market
wise do. I wanted to dive in because you wrote
something this is in my inbox, uh from from you
(01:34):
about not only what's going on now with Boeing, one
of the most well known American probably best known American
engineering related company. Maybe gees up there, but you saw
this coming. Tell me what you saw a year ago,
and then we can get into what's happening now.
Speaker 1 (01:52):
I think it's a fascinating situation because Boeing, among other
large American corporations, has been one of the folks who
has most fervently embraced the whole DEI mythology if you will,
the idea that that you can have a better corporation
of better business if you give opportunities that on a
(02:17):
pure metocracy would have belonged to someone else. You give
those opportunities to someone of color, or someone who's a woman,
or someone who has confused sexuality issues that somehow the
DEI theory is that that'll make your products better, that'll
make your customers happier, that'll make your profits bigger. But
what we see as investment analysts time and time again
(02:39):
that firms that embrace this kind of DEI I think,
or the general ESG. They call it mindset, actually perform
poor going forward, in part because their cultures get wrecked
and buck I'm sure you can understand this. If you're
working with a group of people and suddenly promotions and
raises and bonuses start getting doled out because of factors
(03:03):
other than performance, it has a really shockingly bad impact
on the culture. It leads to all kinds of bad
things happening. But the most notable thing is that the
truly talented people are going to leave and go work
for SpaceX, which is what they've done, and the people
you get left with are the people who are really
good at corporate infighting and corporate politics, but not necessarily
(03:25):
good at all at engineering. And as a as a
part of all that, I'd like to I'd like to
call your attention to the woman who is currently the
the chief operating officer at Boeing and UH. Her name
is Stephanie, and she has a thirty year career as
(03:46):
an accountant. So she was the you know, the top
accountant at Boeing Airplanes and and she has a degree
from Southwestern Missouri State and she has an NBA hold on.
I got to reference my notes for this because I'd
never heard of this school. Oh, this intellectual powerhouse, Lyndon
(04:07):
Wood University. So so what you've got here as a
as a as a female with no engineering background, And
I'll go public with this. I'll bet one thousand dollars
that Stephanie cannot change the oil in her car. But
she is the director of operations for Boeing, which is
the most important engineering firm in the United States by
(04:30):
a mile, and one of the most important companies in
the world. The whole global transportation infrastructure requires Boeing aircraft
and they need to be well made and safe.
Speaker 2 (04:41):
Well, this is this is in the headlines obviously porter
because a piece of register bring everyone up to speed
for this week, A piece of a Boeing seven thirty
seven to nine Max fuselage tore off and people can
see it. I mean, there's video of this from the
plane from the inside tore off mid flight during an
Alaska Airlines flight and.
Speaker 1 (05:00):
This is this is this is not this actually is
not new. They've had They've had consistent problems with their
aircraft for at least the last six years, including too
fatal crashes, and they've had an engineering culture that was
gutted after the merger with McDonald Douglas in ninety seven.
But Buck, I want to get to a really important
point about this, would why on earth would you have
(05:24):
someone with no engineering background whatsoever with degrees from Southwest
Missouri State and Lindenberg sorry Lyndon Wood University. I don't
think that is the sharpest engineer or tool and drawer.
So why would Stephanie get one of the most important
jobs in engineering. Well maybe because she is the executive
(05:44):
sponsor of Boeing's Women Inspiring Leadership. What's that, Buck, It's
a group that's dedicated to increasing gender diversity awareness and that,
by the way, is right off of Boeing's website. So
what is going on at Boeing is you have a
whole bunch of people who are being promoted and getting
(06:05):
opportunities because of their political orientation or because of the
buy in that they have made into ESG and DEI.
But that is not the way to make safe airplanes.
We've already seen this happen. There is an Atlas Air
flight in twenty nineteen that crashed near Houston, where both
pilots were, in my opinion, most likely there because of
(06:25):
the role they played in meeting diversity targets, not because
of their flight awareness or their success in training. And
both have failed out of training. So this is a
real issue. And it's not just for companies like Disney,
which you're performing miserably. I mean, at least a theme
part can't fall out of the sky. But I'm not
so sure you'd want to go ride those roller coasters
right now, because you're going to have a whole bunch
(06:46):
of people who are not qualified in jobs that are
very demanding and very technical. And this is not just
going to impact Boeing, It's going to impact our whole country.
Speaker 2 (06:53):
I want to ask you about how the shareholders you
think of some of the companies out there have every
at you know, whether we're talking about Budweiser or Disney
or you know what's going on with Boeing. We'll get
to this though in one second. You know, is there
a change coming to the US dollar this year? Well,
According to former Walls insider Tikachuwari, he very much thinks
it could happen as soon as this year. He thinks
(07:15):
the biggest risk to Americans is not the war in
Ukraine spreading even further out of control, or some kind
of a conflagration in the Middle East, but the security
instability of the US dollar. And he's so adamant on
this point that he's published a video with all the details,
including how you might prepare go to move your cash
now dot com to learn the three steps you need
to partake to protect and grow your wealth in the
(07:36):
coming months. In a year that's moved your cash now
dot com, or you could end up holding a bunch
of dollars that are worth a lot less than they
are now paid for by Palm Beach Research Group. All right, Porter,
the it feels like in the last year or so,
I mean you wrote this piece. I saw the piece,
and you know we revisited it today. I mean I
saw you saw it when it came out. You visited
today about Boeing and what's going on there as a
(07:58):
corporate culture. But we've had a number of very high
profile instances, whether it's the backlash at Budweiser a lot
of pressure on Disney. When does corporate America you think,
start to listen to the voices out there that are
shouting stop doing things that aren't about good business but
you think are about good social justice.
Speaker 1 (08:21):
Well, I think that there's a lot of reasons for
investors to have made that decision already, and I think
that's happening. But I think you're going to see something further,
which is when planes start crashing, When when Disney theme
starts fall apart. You know, there's there's worse things that
can happen than a failed movie. There's worse things that
can happen. Then, you know, changing the the snow White
(08:44):
film to become a you know, a play on diversity,
and those things are going to impact our entire economy.
It's it's it's I think when when this stuff, when
this rot gets into health and safety, that's when you're
going to see a really big political shift. And the
chieft is already underway when it comes to Boeing, though
buck let me tell you how I found the problem,
(09:07):
because you might you might not remember, but I first
started writing about this a year ago in January of
twenty twenty three. And what I said back then was
that Boeing stock was going to collapse. And I said
that not because I suspected that the planes to start
falling out of the sky necessarily, but that I saw
(09:27):
that the entire engineering culture had been gutted and it
had been replaced, first of all, with accountants from GE.
And what they know how to do is wreck corporate
balance sheets. That's what they did to GE and that's
why I recommended shorting the stock for so many years.
They did exactly the same thing. The two people who
are running Boeing now, both the CEO and the CFO,
are veterans of G's finance group, and they do the
(09:50):
exact same playbook. What did they do. They took Boeing
from a company that had net cash on its balance
sheet to a company that now has fifty two billion
dollars in debt, and that's including net debt of over
forty billion dollars. They've got to refinance about twenty five
billion of that in the next two years. And because
(10:10):
of the safety issues of their planes, they're also facing
the potential downgrade into junct bond status if that happens,
their interest expenses are going to soar, and there's a
real risk that the company could go bankrupt. Nobody sees that,
but that's what we were talking about a year ago,
and we updated that short call in December on the
(10:31):
twenty second, about three weeks ago. So I just want
you to realize that my work on Boeing is not
about this latest news thing. It's about the fact that
for the last five or six years they've been building
shoddy aircraft and their balance sheet has been destroyed by
their leadership. And that's why I started focusing on it,
because the bad choices I could see looking at the
(10:51):
finances of the company have also flowed through now to
the engineering of the company. It's a very serious matter,
not just for Boeing shareholders, but also for the bond
markets and for our country's transportation networks.
Speaker 2 (11:03):
What do you think the future then holds for not
just Boeing, but the US aerospace industry in general if
this has happened. I mean, I know, for example, you're
talking about the people that make the planes. Well, I
know a bit about people who go into the planes.
I have friends and colleagues who you know, got a
lot of people former military. They become the airline pilots
are the ones flying these things, and they say the
(11:25):
DEI wokeness problem. I mean, look, United is bragging about
how they have changed, you know, the incoming class of
pilots to be more diverse. But I also know that
the training programs that pilots are going through so they
can meet the standards necessary for training are being lowered.
That is happening. So the people that are moving the plane,
you're telling me that the people making the planes are
(11:47):
losing a step or ten. And the people piloting the
planes right now are also not the same caliber than
what people have been used to for a long time.
Speaker 1 (11:58):
Yeah, that's a very serious matter. And again, if you
look at the kind of people that United has been
using to fill their new pilot academy, right they have
intentionally partnered with some of the lowest performing schools in
the country in terms of SAT scores and academic achievement
because they're the right color. That's just racism. And you
(12:21):
know when you combine racism and Marxism, you're not going
to improve the Marxist track record.
Speaker 2 (12:28):
Well, also, you know, we can, finally, I think, have
a discussion about merit and standards and hiring in a
more direct way than in a long time porter because
the Supreme Court came out and said, Okay, you guys
at Harvard, which is a whole other conversation, what's going
on there, But you guys at Harvard have been just
straight up discriminating against Asian kids. That was what got
this whole thing started. That's unconstitutional, that's illegal. You can't
(12:52):
actually do that, and you can't continue this system of
pretending you're not discriminating by race when you are. Well,
that's in college admissions. But it's starting now to filter
I think through the broader American political and an economic landscape,
which is a good thing. But I think we're just
in the early early stages this.
Speaker 1 (13:11):
Sorry I didn't mean interrupt, but I just want you to say,
hasn't this been the kind of thing that for many
years people smiled in grandad and said, yes, you know, yes, yes,
we're all in favor of equal opportunity, and we are right.
But no one took it. No one took the idea
seriously that you would get a guy who couldn't even
legitimately gain admission to a competitive university and tell him
(13:35):
with a couple of months of pilot training. He's now
going to be captive captaining you know, a United aircraft
with two hundred people on board like that. There is
there is such an absolute, utter lack of judgment. There
is such a disparity between the theory of DEI or
ESG and the reality of engineering and flight, and those
(13:56):
two things are on a conclusion conclusion course. But let
me just give you a couple of data points to
make this a little bit more objective. If you were
in charge of Boeing and you knew that your your
cumulative net income over the past three years is minus
twenty billion dollars, and that your twelve month interest expense
currently is two and a half billion dollars a year,
(14:18):
and you knew that your credit rating was one notch
above junk status at Fitch and SMP is, the last
thing that you would do is to let a door
fly off of your plane in mid flight. My point
about all this is the people running the company have
such poor judgment they can't even run the company. And
(14:40):
by the way, Bones one of only two major aircraft
manufacturers in the world, and it is a dominant defense contractor.
There's plenty of margin to be made in all those
defense contracts. So how do these guys lose twenty billion
dollars in the last three years alone, and how did
they run their balance sheet just in the last five
years from net cash positive to forty two billion roughly
(15:05):
and net debt. This is I mean, it's almost is
if somebody was deliberately trying to destroy this company, because
you can't make decisions this bad if you weren't trying.
Speaker 2 (15:17):
To port I want to ask you about a different
kind of landing, the overall landing that people are saying
might be soft or not for the economy in twenty
twenty four, which is going to affect the political landscape.
I just wanted to get your broad thoughts on that
in a moment. But first up, you know, a lot
of us are trying to get our finances in order,
and there's some great news for homeowners. Interest rates have
dropped and are now in the fives, a lot lower
(15:38):
than they were last year. So if you've been buried
in high interest credit card debt, now is the time
to break free. American Financing can help you access the
cash in your home to pay off your high interest debt.
Last year, their salary based mortgage consultants help customers save
an average of eight hundred and fifty four dollars a month.
That's like giving yourself a ten thousand dollars raise. That's
quite a way to start the new year. You know,
I rely on American Financing for my home mortgage. I
(16:00):
bought it last year, so I know that they're the
best at customer service and you can trust them to
come through for you. Call American Financing today eight six
six eight nine zero nine three nine two. That's eight
six six eight nine zero nine three nine two. Or
go to American Financing dot net. That's American Financing dot net,
NMLS one eight two three three four animals consumer access
(16:23):
dot org Porter.
Speaker 1 (16:25):
What are you seeing?
Speaker 2 (16:26):
I mean, I just want to give you the floor
for for a couple of minutes. Here, what are you
seeing for next year? Because it feels like the Fed's
telling us here, Jerome Pal everybody, we win, rates coming down, inflation,
beaten markets, fine, nothing to see here, no problem?
Speaker 1 (16:42):
What are you seeing? I think that inflation is going
to be intractable and very difficult to beat because of
the size of the fiscal deficits the United States. If
the federal government was able to snap its fingers and
double double the amount of income tax it collects, it'd
still be running a deficit. And you've got deficits at
(17:04):
that size. I just don't believe they can be financed
through to legitimate means, which means you're gonna have eventually
more interest rate manipulation, more bond market manipulation, and more
money printing. It's just a matter of time. And all
they've done so far really is just change the name
of what they're calling the MOUNTI printing. You know, they
used to call it. What do they call it? Easing? Yes, easying? Yeah, sorry,
(17:30):
there's so much jargon now I can't keep up with
it all. But the new way that they're doing it
is they've just been printing money and handing to banks
that have underwater bond portfolios. So there's something right now
in the order of seven hundred billion dollars plus worth
of losses and the banks on their bond portfolios, and
(17:50):
rather than accept any of those losses and have a
run on the banking system, the Federal Reserve is just
printing up money and then giving it to those banks
as collateral at par so that they don't have to
suffer the losses that they have.
Speaker 2 (18:03):
Actually, so the banks are effectively hiding losses because they
got on the wrong side. So what we saw with
Silicon Valk, for example, people say, hold on a second,
is this a problem elsewhere? You're telling me you think
it absolutely is a problem elsewhere.
Speaker 1 (18:17):
Yeah. Absolutely. I mean, if you look at Bank of America,
just as one example, Bank of America is the largest pository,
it's the United States. Its entire tangible equity capital be
wiped out if it had to, if it had to
write to market where its bond portfolio is. And the
reason why is because it made enormous investments in bonds
during the COVID bubble when interest rates are very, very low,
(18:38):
and then of course the FED had to raise rates
to stop the resulting inflation from all the money printing
that they did. So you know, the whole banking system
is just inside out and there is no way that
the FED is going to be able to By the way,
the FED doesn't even want to actually stop inflation. The
FED wants inflation to be three to four percent a
(18:58):
year so that they can print print their way out
of all these government obligations that they can't meet and
so that they can keep the banking system liquid. And
so I think that all the talk you're hearing about
the possibility of deflation or the possibility of a recession
in terms of nominal GDP as mallarchy, you're not going
to see any kind of actual recession because they're going
(19:21):
to print so much money and there is so much
deficit spending that in nominal terms, the GDP growth is
going to be probably between four and six percent over
the next three or four years at least. And how
will they do that, Well, they just deal with government
spending and they print the money to do it. So
that's going to have a really big impact on people's wages.
And you've already seen that happening, and that's a giant problem.
Speaker 2 (19:41):
And what's your take, border, I mean, you've been watching
this stuff for a long time. So CPI they measure
inflation and they tell us that you know, it's not
bad if you take what food and energy out of it,
right like so if you need to eat or heat
your home or put gas in your car or whatever.
I mean, it's the middle of the winter in a
lot of places. Other than that, they say inflation is
not that bad.
Speaker 1 (20:01):
Yeah, well, you know, I like to use real world
things for for pricing. And if you go and look,
for example, at how many how many minimum wage hours
you have to work to purchase a Ford F one fifty,
which is the most popular, you know, vehicle in the
United States and has been for most of my lifetime.
You know, the hours worked has has doubled or tripled,
(20:25):
and the price of the S one fifty that you
can buy at the dealer, I would guess it's up
fifty percent in the last ten years at least. So,
you know, we can argue about CPI we want, but
it has nothing to do with the impact of these
policies on real people's wages and buck. The saddest part
for me is the people who are suffering the most
(20:46):
from these kinds of policies and from DEI and from
ESG and all this stuff to defund the police, all
this stuff. The people who suffer the most are the
people who keep voting for it. It's not hard for
people like me and you to protect ourselves from inflation.
We go buy a property, We go buy gold, which
you can now buy at Costco, which I think is great.
(21:07):
You know, we go buy bitcoin, we go invest in
high quality stocks, which we have the training to do,
and inflation just keeps us floating along. But for the
people that we employ to you know, to take care
of our houses and our kids, and to teach school
and to do the plumbing and the electrical work. All
the people who actually work in this economy, they're getting
(21:28):
destroyed there. They're real wages keep going down at three
to four percent a year, and that doesn't take long
before you can't afford any kind of standal living. And
so when societies do that, what happens. You see a
huge uptick in gambling. You see that in America, the
enormous rise of online gambling is startling. You see a
big increase in prostitution because people can't make a living
(21:50):
in a you know, in a reputable way, so they
go into that Look at the what's it called the
Only Fans site where you have every college girl America
taken off for clothes to make some bitcoin. And the
other things that you see, of course, are just a
general breakdown of law and order. You can't even go
in a drug store anymore and buy deodor, and it's
all locked up. When or if ever are Americans going
(22:13):
to say enough of this. We need to have sound
money and have a return to a real legitimate free
market system. You know, I don't know the answer to
that question, but it didn't get me any time soon.
Not nless people are willing to default on government debt.
Speaker 2 (22:26):
Got to tell you it's classic because you're talking about
the cost of energy and people being able to forward
their bills. All the lights in the room where I'm
recording right now just went off. The TV screen went
off behid. So I'm not saying it's like word from
the Almighty or something, but I mean something did just
happen here where you know, it is tough to keep
the lights on. As you can see, it is tough
(22:46):
to keep the lights on. Something else I want to
tell everybody about. You know, if you feel like you
need a form of financial protection and diversification, gold has
been used for well centuries to protect people against inflation.
Gold is a global reserve asset. Countries are buying massive
amounts of gold as a hedge against financial collapse. It's
time to help protect yourselfs and invest in gold. Yeah, big,
(23:08):
big sovereign sovereign nation purchases of gold, right, my friends
at the Oxford Gold Group will help you understand why
you need gold in your four oh one k or
why you should have gold on hand. It's simple, it's easy.
The Oxford Gold Group is there to help. Go to
Oxford Gooldgroup dot com slash free and order the investment
god or make a purchase of precious metals and earn
up the twenty five one hundred dollars in free gold
(23:30):
Oxford Gold Group slash free. That's Oxford Goldgroup slash free.
So Porter, Actually, I want to know where can people
go to follow your research more closely? Again, I'm launching
a newsletter with market Wise this year, but you've already
got so many great phyticals. But they want to see
what Porter's thinking.
Speaker 1 (23:49):
Where do they go? Well, that's a great that's a
great question. And I asked my marketing team where we
should send people from information on this stuff, and they
said the best link to use is porters prediction dot com.
And that's of course my name, Porter, p O R
t E er porters with an S prediction dot com
(24:09):
and hopefully all the listeners can spell prediction. But it's
b R E d I C t i o N
dot com. Porters Prediction dot com or thanks for letting
me out. Absolutely, We certainly love to have your listeners stuff. Come,
come see what we're doing in our in our financial
news letter.
Speaker 2 (24:25):
Absolutely absolutely, and I'm excited to launch it in the
new year as well. Thank you so much.
Speaker 1 (24:29):
Porter. We'll talk to you again soon, okay, but thanks
for having me
The Clay Travis and Buck Sexton Show News
Hosts And Creators
Clay Travis
Buck Sexton
Show Links
WebsiteNewsletterPopular Podcasts
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy And Charlamagne Tha God!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Decisions, Decisions
Welcome to "Decisions, Decisions," the podcast where boundaries are pushed, and conversations get candid! Join your favorite hosts, Mandii B and WeezyWTF, as they dive deep into the world of non-traditional relationships and explore the often-taboo topics surrounding dating, sex, and love. Every Monday, Mandii and Weezy invite you to unlearn the outdated narratives dictated by traditional patriarchal norms. With a blend of humor, vulnerability, and authenticity, they share their personal journeys navigating their 30s, tackling the complexities of modern relationships, and engaging in thought-provoking discussions that challenge societal expectations. From groundbreaking interviews with diverse guests to relatable stories that resonate with your experiences, "Decisions, Decisions" is your go-to source for open dialogue about what it truly means to love and connect in today's world. Get ready to reshape your understanding of relationships and embrace the freedom of authentic connections—tune in and join the conversation!