The Charlie Kirk Show - China Should Have Read "The Art of the Deal"

00:00:00.000 Okay, everybody, today on the Charlie Kirk Show, what is the bond market?

00:00:03.000 What if I told you there is something that has taken down more governments than howitzers, nuclear weapons, or war?

00:00:08.000 And that is the bond market.

00:00:09.000 We explain the bond market to you.

00:00:12.000 And then we have Grant Cardone to go through an amazing analysis of how negotiation occurs and how we should approach the Chinese issue.

00:00:20.000 Grant Cardone with some great analysis.

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00:00:36.000 Buckle up, everybody.

00:00:37.000 Here we go.

00:00:38.000 Charlie, what you've done is incredible here.

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00:01:36.000 Okay, there's a lot going on.

00:01:37.000 As you know, President Trump came out while we were live on air yesterday and pressed pause and said pause on the tariff implementation.

00:01:46.000 Now, mind you, there is still a baseline 10% tariff.

00:01:50.000 So there are still 10% tariffs across the board.

00:01:53.000 China is still going to have a massive amount of tariffs on them.

00:01:58.000 But for Vietnam and South Korea and Madagascar and Japan, we are seeing a pause.

00:02:03.000 The volatility is not going away anytime soon.

00:02:05.000 I'm not even going to do a play-by-play on the market right now because the market is so up and so down and so all over the place.

00:02:13.000 It's up and it's down.

00:02:14.000 If I say one thing, it's going to be outdated five minutes from now.

00:02:17.000 It is so volatile.

00:02:18.000 Instead, I want to bring you into the room based on some public reporting and stuff that I've known privately, but I wasn't going to talk about publicly until, of course, it was publicly reported.

00:02:28.000 And it has been publicly reported by Jonathan Swan and the New York Times and many people, which is the element of who else got a vote.

00:02:35.000 Now, typically, when situations like this occur, the Treasury Secretary gets a vote, the Vice President gets a vote, the President gets a vote, but something else got a vote of whether or not to pause the 90-day tariffs, and that is the bond market.

00:02:48.000 You hear a lot about stocks.

00:02:49.000 We talk a lot about whether Nvidia is up or Apple is up, and you hear that all the time on CNBC.

00:02:55.000 You hear a lot about gold.

00:02:56.000 We have some great gold partners on this program.

00:02:59.000 or cryptocurrency.

00:03:01.000 But a massive part of the market you don't hear about are bonds.

00:03:05.000 What is a bond?

00:03:07.000 A bond is a type of a long-term security.

00:03:10.000 You loan somebody or something money, and they pay you back over a period of several years.

00:03:17.000 companies issue bonds.

00:03:19.000 Cities famously issue bonds, municipal bonds.

00:03:22.000 In fact, they're tax-free.

00:03:23.000 And most importantly, our own government, the United States government, issues trillions and trillions and trillions of dollars in bonds.

00:03:34.000 Why? Well, because it's backed by the full faith and credit of the United States.

00:03:40.000 There are four types of bonds.

00:03:43.000 There are treasury bills, otherwise known as T-bills.

00:03:47.000 They're very short-term, and you do not get what is called a coupon.

00:03:51.000 A coupon is basically money back on your investment in the bond.

00:03:57.000 Then there's something called treasury notes, which are two to ten years.

00:04:01.000 They do pay interest about every six months.

00:04:04.000 They're very popular with individual investors and institutions.

00:04:08.000 Then we have something called treasury bonds, which mature over 20 to 30 years.

00:04:13.000 They pay interest, or a coupon, every six months, and they're often used by pension funds or long-term investors.

00:04:20.000 And then we have tips, treasury inflated inflation protection securities.

00:04:29.000 Okay. So typically, bonds are a safe refuge during turmoil.

00:04:42.000 If all of a sudden the markets get a little jittery, you go to the bond market.

00:04:47.000 When you hear about the federal government running a deficit, the way we finance that deficit is through bonds.

00:04:54.000 The U.S. government sells a treasury bond, which takes in money, and now in return for a promise to pay interest over some period of time.

00:05:02.000 There are, again, as I mentioned, short-term and long-term treasury bonds.

00:05:06.000 The interest you earn on these bonds fluctuate according to the market.

00:05:11.000 Well, U.S. treasury bonds are hugely influential on the entire global market.

00:05:16.000 The United States government has never defaulted on its debt.

00:05:20.000 Traditionally, U.S. bonds are considered the most ultra-safe investment there is.

00:05:24.000 They are the floor of the market.

00:05:26.000 A common idea is this.

00:05:27.000 Never invest in something that is likely to underperform treasury bonds.

00:05:32.000 One of the reasons why Scott Besant was selected as treasury secretary is he is a bond expert.

00:05:39.000 He understands the bond market better than anybody else.

00:05:43.000 Scott Besson understands what moves bond prices.

00:05:47.000 And what was happening...

00:05:48.000 From late Tuesday night to early Wednesday morning was a very good 10-year auction, but a disturbing spike in bond prices and a disturbing spike in bond activity, which China was playing their nuclear card,

00:06:07.000 which is what set President Trump off so much.

00:06:09.000 One of the reasons why President Trump said China is not exempt and we're going to unite the entire world against China. 0.75

00:06:16.000 China was intentionally trying to create a run on American bonds.

00:06:20.000 China was intentionally, dare I say, playing with the idea of collapsing the American bond market. 0.91

00:06:26.000 Bonds have collapsed.

00:06:28.000 The bond market has collapsed more government than howitzers, missiles, or bullets.

00:06:35.000 Famously, of course, the Russian default, 1998. 0.92

00:06:39.000 The Russian government collapsed and they defaulted on $40 billion of domestic debt and devalued the ruble.

00:06:46.000 The yields on short-term Russian treasury bills, otherwise known as GKOs, skyrocketed as investors fled the market.

00:06:54.000 Argentina in 2001 had a sovereign default.

00:06:57.000 Argentina defaulted on over $100 billion in sovereign debt, the largest default in history at that time.

00:07:03.000 The bond collapse resulted in Argentinian bond prices plummeting and yield spikes over 30%.

00:07:11.000 Capital fled the country and, of course, the payback.

00:07:18.000 Greece revealed that it has been under-reporting its deficit, causing investors to panic and dump Greek government bonds.

00:07:25.000 Greek 10-year bond yields soared past 35%, make it impossible for Greece to borrow on the open market.

00:07:33.000 Greece had to be bailed out by the EU and the IMF under strict austerity terms.

00:07:38.000 There's examples after examples of countries that are collapsing because of the mismanagement of their bond market.

00:07:45.000 When countries can't sell bonds, they have to resort to other means of paying their bills, like devaluing their currency and hyperinflation.

00:07:53.000 And what we were seeing and what we were afraid of on the horizon was a run on the bond market, was potentially the American economic established order very well could have had a

00:08:09.000 crisis similar to that of 2020 or 2008.

00:08:14.000 President Trump made a very prudent move and China played their strongest card. 1.00

00:08:20.000 Now understand, Scott Besant said that the 10-year auction was actually very good, which is interesting, which means that people are betting on the long-term viability and the long-term prosperity of this country.

00:08:34.000 They're happy to say, okay, I'll do a 10-year bet

00:08:40.000 Basically, people are long on America when it comes through over a decade.

00:08:45.000 But in the next three to six months, I'm not so sure because of all these tariffs.

00:08:51.000 And tariffs were the forcing function to actually get people to go away from Treasury bonds, which is incredibly complicated and somewhat contradictory because typically when the economy is during a moment of jitters, people go to Treasury bonds.

00:09:06.000 bonds. So it makes it even more complicated.

00:09:09.000 All that to say is that the bond market has a vote.

00:09:16.000 Let's play cut 235.

00:09:19.000 Secretary, how much of this decision was driven by the bond market cratering overnight?

00:09:23.000 What is happening?

00:09:24.000 Is China selling their bonds?

00:09:27.000 I have nothing that says that.

00:09:29.000 And we actually had quite a good 10-year auction today.

00:09:32.000 And all this was, again, this was driven by the president's strategy.

00:09:37.000 He and I had a long talk on Sunday, and this was his strategy all along.

00:09:43.000 And you might even say that he goaded China into a bad position.

00:09:49.000 They responded.

00:09:51.000 They have shown themselves to the world to be the bad actors.

00:09:55.000 This is incredibly complicated stuff.

00:09:57.000 All this to say, the way we finance our government is through a bond.

00:10:02.000 A bond note is like an IOU note.

00:10:06.000 It's an IOU.

00:10:08.000 That the government can then give to people where it needs to pay back.

00:10:12.000 When you buy a bond, you're lending them money, and they promise to pay you back later with interest.

00:10:21.000 When the bond market gets disrupted, the entire funding of our government can get put into jeopardy.

00:10:28.000 Hey everybody, Charlie Kirk here.

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00:11:32.000 I want to play more pieces of tape here.

00:11:34.000 There is a fair amount of volatility and uncertainty that's happening in the international capital markets.

00:11:41.000 The old way of thinking, though, was that we do not question or challenge the offshoring of American labor, of labor internationally.

00:11:54.000 That it's a good thing that China gets wealthier and that we are financing it and we are funding it. 0.52

00:11:59.000 And all the right people are speaking out against the Chinese aspect. 1.00

00:12:04.000 Here's John Bolton, who is dreaming of a ground war against Iran.

00:12:11.000 Saying the following, play cut 174.

00:12:13.000 What Trump is doing is a huge opportunity for China worldwide.

00:12:17.000 These tariffs are a form of economic illiteracy.

00:12:21.000 Trump has no idea, really, what he's talking about.

00:12:25.000 He doesn't understand how tariffs work.

00:12:27.000 So what he's doing has put us in a very vulnerable position and probably in the worst position possible.

00:12:35.000 And it's just sad and depressing that more Republicans haven't stood up and said that.

00:12:40.000 This is illiteracy.

00:12:42.000 You know what was illiteracy, John Bolton?

00:12:44.000 The fact that you designed probably one of the most immoral wars in American history, if not the most, when you designed the invasion of a sovereign country of Iraq.

00:12:53.000 That was illiteracy, and that was outright immorality.

00:12:57.000 John Bolton and the neoconservatives don't like this because President Trump is getting more without war.

00:13:01.000 he's getting more through economic means than mobilizing aircraft carriers or spending unnecessary trillion dollars on needless wars.

00:13:09.000 But understand what President Trump is doing is so, so brilliant.

00:13:13.000 So we got China on defense.

00:13:15.000 We got the entire free world that is coming to negotiate deals.

00:13:19.000 And meanwhile,

00:13:19.000 Where is Pete Hegseth?

00:13:21.000 This is my favorite wrinkle of the entire story.

00:13:26.000 Where is Pete Hegseth?

00:13:28.000 When you are trying to challenge a rising global power and a rising empire, a rule is that the empire will not care as much about their colonies as they do the homeland.

00:13:44.000 So you go right after the colony to liberate it and bring it back under our hemisphere. 0.99

00:13:49.000 What are we talking about?

00:13:50.000 We're talking about the Panama Canal.

00:13:52.000 It is perfect timing.

00:13:55.000 It is 10 out of 10 timing what Pete Hegseth is doing.

00:13:58.000 Pete Hegseth goes down to the Panama Canal and says, this is not China's.

00:14:04.000 We are going to liberate it.

00:14:06.000 Play cut 179.

00:14:08.000 I want to be very clear.

00:14:10.000 China did not build this canal.

00:14:14.000 China does not operate this canal.

00:14:16.000 And China will not weaponize this canal.

00:14:21.000 Together with Panama in the lead.

00:14:25.000 We will keep the canal secure and available for all nations through the deterrent power of the strongest, most effective, and most lethal fighting force in the world.

00:14:37.000 We will do this in partnership with Panama.

00:14:41.000 Together, we will take back the Panama Canal from China's influence. 0.99

00:14:47.000 And we will do this along with other capable Like-minded allies and partners.

00:14:52.000 This is what peace through strength looks like.

00:14:55.000 Look, we know that the Panama Canal connects the Atlantic and the Pacific Ocean.

00:15:00.000 It's an incredible engineering feat and accomplishment.

00:15:02.000 That which thousands of Americans died to actually make possible.

00:15:06.000 5% of all global maritime trade goes to the Panama Canal.

00:15:11.000 Not having control of the Panama Canal is a major security risk to the Western Hemisphere.

00:15:16.000 China's growing influence in Panama.

00:15:18.000 Through all of their state-owned companies means that they could choke point necessary trade and commerce in our hemisphere.

00:15:26.000 And we know what China does. 0.92

00:15:27.000 They operate through economic coercion and dependence.

00:15:32.000 So they take control of the Panama Canal.

00:15:34.000 They then have leverage in our hemisphere.

00:15:36.000 And we are kicking the Chinese Communist Party out of the Panama Canal.

00:15:41.000 But it's a perfect time to do it because China's on defense. 0.74

00:15:44.000 China is seeing a domestic stock market collapse.

00:15:48.000 China is seeing all of a sudden their number one export partner, the United States of America, is saying, time out, we're actually not going to do this anymore.

00:15:56.000 104% tariff and it's only going to go up.

00:15:58.000 So China has to prioritize which fight they are going to pick.

00:16:01.000 And at that moment, you strike for the Panama Canal.

00:16:04.000 You strike for the choke point, which is exactly what Pete Hegseth is doing.

00:16:08.000 Saying, we're not going to put up with the Chinese Communist Party hegemony over the choke point of trade between the Pacific and the Atlantic. 0.73

00:16:16.000 That is not going to happen under President Trump's watch.

00:16:19.000 And the Chinese are probably like, look, we got nine different fights on here. 1.00

00:16:22.000 Fine, let them head to Panama Canal.

00:16:24.000 They're not going to give it up that easily.

00:16:25.000 But the Chinese Communist Party has to triage which of the many problems they're going to fight on right now.

00:16:31.000 And the one that the CCP is most worried about is Lao Bai Jing, the people of China, might be rising up because of a domestic economic collapse brought to you by Trump's tariffs.

00:16:44.000 Hey everybody, Charlie Kirk here.

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00:17:47.000 Joining us now is Grant Cardone, equity fund manager, real estate investor, Cardone Capital, author of The 10X Rule, and GrantCardone.com.

00:17:55.000 Grant just recently hosted me at a pretty amazing event in Las Vegas.

00:17:58.000 Grant, it's great to see you.

00:18:01.000 Grant, welcome to the program.

00:18:02.000 Grant, what is your take on President Trump's negotiation and leverage that

00:18:07.000 Well, I understand, Charlie.

00:18:12.000 First of all, always great to be with you.

00:18:13.000 Enjoyed our time together in Las Vegas and love everything you're doing.

00:18:17.000 I understand that the art of the deal is a bestseller across China this morning because...

00:18:24.000 The government is reading how to negotiate with probably the master, best, most genius, most calculated negotiator on planet Earth.

00:18:33.000 Your comments earlier about the Panama Canal, this is called stacking.

00:18:37.000 When you negotiate transactions, and I've negotiated very large transactions, not $100 trillion negotiations like are taking place right now across the world, but you want to stack your ask, meaning that you want... 0.85

00:18:53.000 To overwhelm the other party with the number of things that you want, almost to the point where you sound ridiculous.

00:19:01.000 And then you start settling or removing things that maybe aren't so necessary.

00:19:08.000 So I think your analysis of what Trump did with the Panama Canal is absolutely spot on.

00:19:17.000 things like bringing, you know, majority of the countries to the table was not to bring them to the table, but to let China know, hey, they're coming.

00:19:26.000 And sooner or later, you're going to come

00:19:29.000 So Grant, I love that stack the asks.

00:19:31.000 Let's talk more about that in practice.

00:19:33.000 What does that do to the party that is on defense?

00:19:36.000 So how does the Chinese respond to that?

00:19:40.000 Let me ask this differently.

00:19:41.000 What happens, Grant, when you're on the other side of the table and someone is stacking the asks against you?

00:19:47.000 How do you then prudently respond to somebody that is using that sort of strategy and that kind of expertise?

00:19:53.000 Yeah, that's a great question.

00:19:55.000 Okay, so if it's me being on the other end of the stack, the question always is who has the leverage?

00:20:03.000 Like four things have to happen in negotiations.

00:20:05.000 You have to have decision makers at the table.

00:20:07.000 We don't yet, by the way, with the tariffs.

00:20:10.000 Two, you have to have a desire and a willingness to come to an agreement.

00:20:14.000 We don't have that.

00:20:15.000 Three, you have to have urgency.

00:20:16.000 Trump does not have that yet.

00:20:18.000 So the only thing he has is the fourth weapon, which is leverage.

00:20:23.000 So in the beginning, if somebody's stacking against me, I have to calculate how much leverage do I have here.

00:20:29.000 If I don't have leverage, Charlie, then what happens is I get overwhelmed.

00:20:35.000 And then I start, whether I say it or not, I mentally start unpacking.

00:20:42.000 How much I'm willing to give up.

00:20:44.000 Imagine I came to the table believing I would give you this, and then you start stacking on me.

00:20:51.000 Like, I start basically un-mocking or compromising with my own self what I'm willing to give up, okay?

00:21:00.000 It could be in a divorce settlement. 0.77

00:21:02.000 Let's say the wife comes at me and says, I want half, and I want the house, and I want the boat, and I want the plane, and I want the kids. 0.90

00:21:09.000 She might not want any of that stuff, but she starts overwhelming me, and then if I don't have leverage, she's going to win, probably more than she actually thought she could or would. 0.97

00:21:20.000 I hope my wife never hears this, by the way.

00:21:24.000 Well, no, I pray no one gets into a divorce, I pray.

00:21:29.000 It's a terrible, awful thing.

00:21:30.000 In some ways, though, metaphorically, we are looking at...

00:21:34.000 It's a great comparison, though, because what U.S. and China are brokering is a little bit of a divorce or a decoupling of the way that the two powers have been interacting over the last 20 or 30 years, and we're going to have to renegotiate those terms.

00:21:48.000 Just looking at this objectively, Grant, as a businessman who's done billions and billions of dollars of transactions and has done tens of billions of dollars of value through everything you're doing, who has the cards here?

00:22:00.000 Who is the one that you would say is the shrewd operator that acting as if they have leverage?

00:22:06.000 Kind of stake it out here as an objective third party.

00:22:09.000 What cards does the United States have?

00:22:12.000 What cards does the China have? 0.81

00:22:14.000 And then kind of give us a little bit of analysis there.

00:22:16.000 Well, look, I mean, you know, a lot of people have leverage in a situation and they never use it.

00:22:21.000 In the case of the United States and China. 0.68

00:22:24.000 We have leverage that cannot be duplicated anywhere and has not been duplicated anywhere on planet Earth, which is a consumer economy.

00:22:32.000 I was asked once, what's easier to create, a manufacturing economy or a consumer economy?

00:22:38.000 No one has created a consumer economy.

00:22:40.000 Many countries have created a manufacturing economy.

00:22:44.000 I would rather have a blend of both, but...

00:22:47.000 America has the greatest consumer economy on planet Earth.

00:22:50.000 Every country needs us.

00:22:51.000 We have maximum leverage.

00:22:53.000 Now, what leverage does China have?

00:22:55.000 Well, they make products and services cheaper than we can.

00:22:58.000 They have 1.4 billion people.

00:23:01.000 But they lose that, Charlie, because their economy's terrible.

00:23:05.000 They've tried 26 different stimulus to fix their economy.

00:23:08.000 None of them worked.

00:23:10.000 They have an aging population, as you know, and they're in trouble right now.

00:23:14.000 For all the troubles that we have, China has 10x more. 0.95

00:23:18.000 And any leverage point they did have, they're going to lose because ultimately their economy is so weak.

00:23:29.000 That being said, we lose some leverage because of the way our political system is set up.

00:23:37.000 If enough people turned on Trump, particularly internally, that would flip the leverage back to China.

00:23:43.000 And that's why we need people to consolidate, particularly an American citizen needs to pray for, affirm, and send best wishes to President Trump.

00:23:53.000 Because he's attempting to do something that has not been done by any president in my lifetime and should have been done by all of them.

00:24:00.000 So then how do we, going back to that sequence of your analysis of how big deals happen, how do we make sure that this does not get heightened to a kinetic war or...

00:24:11.000 Tensions blow up and just get boiling into levels that we don't want to see them happen.

00:24:15.000 How do we make sure this is within guardrails?

00:24:18.000 Explain the balance, Grant, because I'm sure you've had deals that have blown up.

00:24:23.000 Please, explain.

00:24:25.000 You can back a dog with rabies into a corner and then he's going to bite you, so you don't want to do that.

00:24:31.000 You have to be very careful.

00:24:33.000 President Trump yesterday telling everybody, look, it's just 10%, everything's cool.

00:24:38.000 What he did was he relieved all the tension.

00:24:42.000 I think the media was saying, oh, he caved in.

00:24:46.000 He didn't cave in.

00:24:47.000 You want to relieve pressure in a negotiation so no one feels cornered and just wants to, in this case, nuke, which would never happen, by the way, in my mind.

00:24:58.000 But you do need to bring...

00:25:00.000 The players to the table.

00:25:02.000 Remember, the first three things are decision-maker, willingness, three, urgency.

00:25:07.000 You increased, Donald Trump increased the urgency yesterday.

00:25:11.000 You had many countries, I don't know what the exact number is, could have been as many as 70, that came to the table and said, okay, we're ready.

00:25:18.000 We have urgency.

00:25:19.000 And Donald Trump said, don't even worry about it.

00:25:21.000 It's just going to be 10% and we're cool.

00:25:24.000 That leaves China out by themselves kind of looking like, well, what did we miss here?

00:25:30.000 Again, President Trump knows there's egos involved.

00:25:33.000 Egos are very, very important when negotiating.

00:25:37.000 You don't want to trap a guy.

00:25:38.000 You don't want to make a guy look bad.

00:25:40.000 Yeah, so let me interrupt you there, Grant.

00:25:42.000 I'm so glad that you mentioned that.

00:25:44.000 I mean, there is no bigger ego than Xi Jinping.

00:25:46.000 He looks at himself as the king of the world, king of China. 0.94

00:25:49.000 He's in control of 1.4 billion people.

00:25:52.000 And then you have equal amounts of personas across the board.

00:25:57.000 How then do you navigate with the egos, with the pride of the Chinese culture?

00:26:02.000 How do you go through that thicket?

00:26:06.000 It's an enormous task.

00:26:09.000 Look, I imagine he's on the phone with him right now.

00:26:12.000 All these players at that level have egos.

00:26:14.000 Nobody wants to look bad, whether it's President of China or the President of the United States of America.

00:26:20.000 The high ego drive, by the way, is necessary in order to be a winner.

00:26:26.000 And there's nothing wrong with it.

00:26:28.000 I think it's highly recommended for people to actually develop some kind of ego that has humility and a balance mixed in.

00:26:35.000 And I could imagine Donald Trump or Howard Lutnick letting China know yesterday, hey, guys, we're going to come to a solution.

00:26:42.000 Everybody knows we're just negotiating here.

00:26:44.000 Like, this is a big boy game.

00:26:45.000 It's very transparent.

00:26:48.000 There's nothing wrong with telling the other side, we're trying to get the best deal for us.

00:26:52.000 I know you want the best deal for you.

00:26:54.000 Everybody knows exactly what's going on.

00:26:56.000 So I imagine he's softening the rhetoric that we're hearing here in America so that they can stay at the table and save face.

00:27:07.000 Why don't you plug some of the stuff you're working on?

00:27:09.000 You got books, you got all sorts of stuff.

00:27:11.000 Kind of give us an update on what Grant Cardone is up to.

00:27:13.000 Well, look, I'm an educator.

00:27:15.000 My whole life I've been an educator.

00:27:17.000 My dad died when I was 10 years old and my uncles didn't come to mentor me.

00:27:22.000 And I always promised if I ever got successful, I was going to help other people.

00:27:26.000 So we're an educational company that tries to, attempts to, you know, share financial literacy and competency.

00:27:34.000 And I wrote President Trump when he won the election, hey, I'd love to participate in making America.

00:27:42.000 Intelligent, again, around their finances.

00:27:45.000 So that's what I do.

00:27:46.000 My company educates people on, you can find me almost anywhere, just plug the name in, Grant Cardone on Google, and you'll see all the stuff I'm doing.

00:27:52.000 We've got a big real estate fund.

00:27:54.000 We're changing the way real estate is invested in right now by putting real estate and Bitcoin in one fund with no debt, by the way.

00:28:03.000 And we're going to take real estate from what it was doing, which was an 8% or 10% return to a 30% and 40% annualized return.

00:28:11.000 So I'm really, really excited about that.

00:28:12.000 We'll probably take that public toward the end of the year or the first of next year.

00:28:16.000 I'm actually having a meeting on it right now.

00:28:20.000 Why refi?

00:28:21.000 Why refi is great.

00:28:22.000 They have been phenomenal partners of this show.

00:28:24.000 Why refi refinances distressed and defaulted private student loans, which are different from federal loans.

00:28:28.000 If you have private student loan debt or know someone who does, go to whyrefi.com.

00:28:33.000 You can finally take control of your student loan situation with a plan that works for your monthly budget.

00:28:37.000 Go to whyrefi.com.

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00:28:45.000 Go to whyrefi.com.

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00:28:48.000 Bad credit is accepted.

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00:28:52.000 Grant, I know you've got to be careful about giving individualized investment advice, but tell us about how you are thinking about this volatility and some of the principles that you think people should employ during economic uncertainty.

00:29:13.000 Okay, what people should be doing.

00:29:14.000 By the way, this is financial advice.

00:29:16.000 I am not a financial advisor, but I will give financial advice.

00:29:20.000 If you're invested in the stock market, you should not panic right now.

00:29:24.000 I would tell you and suggest that you should reassess what you're invested in.

00:29:29.000 Depending on your age, if you're in a 401k IRA or a Roth, I think people need to reconsider what that really is today.

00:29:36.000 These are old vehicles that have been created that look like tax advantages to the public that, Charlie, you and I have talked about before.

00:29:44.000 I really believe these will not be great mechanisms for people in the future.

00:29:48.000 They have been great for Wall Street.

00:29:50.000 You know, these are $38 trillion has been invested in retirement funds that I am very concerned in the future, 10, 15, 20 years from now, are going to be taxed not at the 19% they are now, but at, you know,

00:30:05.000 50 and 60 and 70%, particularly if we had the wrong politicians, you know, at the table.

00:30:13.000 But I would tell everybody, reassess what's in there.

00:30:16.000 What companies are you really invested in?

00:30:18.000 Do those companies that you're invested in actually match up with your moral compass?

00:30:24.000 Because I think you'll find that many of those companies do not.

00:30:27.000 And then reevaluate what your returns are.

00:30:30.000 Second thing I would say is, you know, you should be invested in real estate.

00:30:34.000 Everyone, every American should have money invested in real estate that cash flows.

00:30:39.000 There's a tremendous correction going on in the housing.

00:30:42.000 Apartment marketplace.

00:30:44.000 Charlie, you and I have talked about this.

00:30:45.000 It's happening from Scottsdale to Sedona, all the way to New York City, to Miami.

00:30:52.000 It's a massive correction going on.

00:30:54.000 I have made my family and our investors hundreds of millions of dollars just in the last year because we're buying real estate that no one's looking at at very corrected prices, below replacement value.

00:31:11.000 Because the debt market's problematic right now.

00:31:13.000 So there's tremendous opportunity, particularly in the apartment space, for individuals and middle-class people to create wealth using real estate.

00:31:24.000 Very good.

00:31:25.000 So Grant, super quick, just what are you hoping to see as an investor from tax cuts?

00:31:32.000 As we mentioned, it's not breaking news, but the House has passed the budget resolution package, which is great, which will pave the way.

00:31:39.000 What do you want to see more than anything else as a deliverable to full depreciation?

00:31:45.000 What do you think is really going to supercharge this economy?

00:31:47.000 One minute remaining, Grant.

00:31:48.000 Yeah, that's one of them.

00:31:49.000 You know, any investments in any manufacturing, any new buildings, any new housing, 100% bonus depreciation.

00:31:57.000 I like that.

00:31:58.000 What I like better than that, and I would be willing to give that up, is basically gut the IRS, go to a fair tax, zero federal income tax nationwide.

00:32:09.000 I think that's actually doable in this term.

00:32:12.000 I don't think most people believe that, but I believe it is.

00:32:15.000 And I believe it would be a great thing for Americans not to pay federal withholding tax.

00:32:21.000 Learn how to invest your own money.

00:32:23.000 The IRS is never going to do it better for you than you can do it for you.

00:32:28.000 Short of that, states are going to start looking at reducing their property taxes.

00:32:32.000 Florida is doing it right now.

00:32:34.000 Texas is looking at it.

00:32:35.000 And I think those states that do that, Charlie, Thanks, Grant.

00:32:49.000 We really appreciate it.

00:32:53.000 Yeah, appreciate you, man.

00:32:54.000 And I'm still working on California.

00:32:56.000 I'm going to do my best to flip California red this year.

00:32:59.000 You're the best.

00:32:59.000 Thanks, Grant.

00:33:00.000 Talk to you soon.

00:33:01.000 Thank you.

00:33:01.000 Thanks. Thanks so much for listening, everybody.

00:33:03.000 Email us, as always, freedom at charliekirk.com.

The Charlie Kirk Show - April 10, 2025

China Should Have Read "The Art of the Deal"

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