Epic Real Estate Investing - The U.S. Is Failing. Trump’s Response? Gasoline. (And it's not over yet) | 1491

Episode Date: May 26, 2025

The episode discusses Moody's recent downgrade of the US credit rating from AAA to AA1, outlining the potential impacts on rent, savings, and jobs. Matt explores the reasons behind the downgrade, previous downgrades by Standard & Poor's and Fitch, and the broader economic implications. It criticizes the US government's handling of its debt and highlights contrasting views from President Trump and major financial entities. The episode also provides a 'five-step exploit and escape strategy' to protect oneself, focusing on hedging with gold and Bitcoin, leveraging debt, securing cheap loans, investing in income-producing real estate, and using inflation to one's advantage. BUT BEFORE THAT, hear why Costco is acting like a central bank! About the "EXPLOIT & ESCAPE" strategy: https://drive.google.com/file/d/16EZMfOM_JYXbqs7t3OZ_fGXDqrWo0sdQ/view?pli=1 Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-aise.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. First, it was toilet paper, then it was baby formula, then eggs. Now, Costco is limiting the purchase of gold bars. If that doesn't make you stop and think, it should. Wait, Costco sells gold bars? Yes, over $100 million worth of gold, just from their website. And when they limit gold, like they have toilet paper, formula, and eggs, it's time to pay attention.

Something is broken. or at the very least, it's breaking. And this isn't just about shiny metal. It's a warning sign, and it's bigger than gold. It's a signal. So here's what just happened. Costco, the place where you buy cereal, detergent, and chicken wings in bulk, is now limiting how much gold a customer can buy.

Because, at the moment, gold bars, they can't keep them on the shelves. And the limit just got stricter. So what's really going on here? Costco is now limiting members to just, just two gold bars per day. These are one ounce, 24-carat bars priced at over $3,000 each. People are buying them up like candy. Now here's the thing.

This isn't just rich people showing off. These are regular people. I mean, school teachers, small business owners, retirees, buying gold in bulk from a warehouse store. But why? Well, I can think of 10 reasons. Number 10, the national debt just blew past $36 trillion. dollars. People don't think the dollar can keep up. Nine, banks are failing. First Republic, Silicon Valley Bank, signature.

People don't feel safe keeping money in the system. Number eight, global conflicts are stacking up. There's Ukraine and Israel and Taiwan. War makes the world nervous. And gold looks safe. Number seven, inflation isn't slowing down. Well, barely, if you believe the numbers, grocery, gas, rent, They're all up, and your paycheck, not so much. Number six, America's credit just got downgraded. That's the financial world's version of, we don't trust you anymore.

Number five, China and bricks are ditching the U.S. dollar for trade. If the world stops using dollars, where does that leave us? Number four, the election, it was a powder keg. No matter who won, chaos we were going to have. Number three, everyone's whispering the word Recession again. We're only one quarter away from that happening. But no one knows exactly when it's going to hit if it does. But the uncertainty, pure fear fuel. Number two, social media panic is spreading like wildfire. I mean, influencers are screaming, buy gold now. And people, they follow the herd.

And number one, nobody trusts the system anymore. Not the banks, not the government, not Wall Street. People are afraid their dollars won't stretch tomorrow the way that they do today. Inflation, instability, and no real answers from the people in charge. The media says this is about investment enthusiasm. No, this isn't excitement, it's fear. And here's what they won't tell you. Gold might hold value, but it doesn't cash flow. It doesn't pay the bills.

It just sits there. It's not a financial freedom play. It's survival mode. This is the middle class opting out. They're not buying gold because they want to. They're buying because they don't know what else to do. When Costco shoppers start acting like central banks, that's not a financial trend. That's a trust collapse.

And it's happening quietly in plain sight. Let's zoom out. If gold is the bunker, what's the weapon? Fixed rate debt and income producing real estate. Together, they also protect you from inflation. but they do something gold never will. They pay you month after month. When you finance your real estate with fixed rate debt,

inflation doesn't just stop hurting you. It starts working for you. The rent checks go up while your payment stays the same. Your value goes up while your debt goes down. Team up all three together and one man's collapse is your lottery ticket. And I'll give you the bulletproof plan I'm following in just a minute, But ask yourself, what do you own that can't be printed, taxed, or frozen? If your wealth is tied to paper, politics, or promises, you're exposed.

Real wealth lives in things that last, like land, cash flowing real estate, gold, businesses that solve real problems. It's not about panic. It's about positioning. Because when the next crisis hits and it will, you won't have time to reposition. The smart money is preparing now. dumb money will wish it had. And while they tell you, don't worry, everything's fine,

just look at what they're doing. They're buying gold. They're buying dirt. They're buying time. So the question isn't whether gold is rare. The question is, what will you own when trust collapses? Deep down, you don't trust the system either. And I think you're right not to.

So what is your next move then? I mean, that is entirely up to you. But let me show you what I'm doing, as well as the actions, the wealthiest people I know are taking. I call it the exploit and escape strategy, also known as how to win when the dollar is dying. Step one, don't pick aside. Stack the hard stuff. When confidence in the dollar slips, don't gamble. Hedge. That means spreading your bets across proven hard assets. Gold is the ancient shield, Bitcoin the modern rebellion. Split five to 10% of your net worth

across physical gold bars, physical gold bars and coins, not paper promises, cold-stored Bitcoin, get it all off the exchanges, get it under your control. And an option here would be to invest in gold ETFs or asset-backed crypto if convenience is greater than custody for you. You're not betting, you're preparing, and gold becomes crucial here in step five. Let me cover next step two. We program your brain about debt. You see, debt isn't dangerous, bad debt is. So stop thinking of it as something to avoid. Start seeing it as a lever. I mean, this is how the smart money stays ahead. They borrow to buy cash flow, not crap. Step three, load up on smart credit before they close the door. You see, as America's credit score drops, lending, it gets tighter. And right now, there's a window

open. Use it. Bukin long-term fixed rate debt. Stack up zero percent credit lines and business cards. Use seller financing and subject to deals. Apply with fintechs before the banks start saying no. If you need a source, loophole lending.com has a few doors open for now. Step four, turn that debt into cash flow. Buy real estate, not for flips, not for trophies, for survival-proof income. Because when the dollar loses strength, assets that pay you win. When the target here, look at duplexes and triplexes and fourplexes, single family rentals in red states with strong rent laws, and deals with creative terms like wraps, deferrals, seller holds. And watch one number.

If your rent covers all expenses and still cash flows, that's a winner. Step five, let inflation do the dirty work for you. And here's the part the system doesn't teach. Inflation is your employee if your debt is fixed. You see, while others are crushed by rising prices, you're paying off. old debt with weaker dollars, collecting more rent from the same property, watching values climb while your mortgage stays put. Eventually, your loan will feel small. Your income, it rises, but your payment stays frozen. That's the silent wealth transfer. And if the dollar collapses

faster than expected, the debt you owe, it gets devalued too. It collapses also. And the assets you own, though, they stay strong or even spike. What once took a A pound of gold to pay off could cost you now ounces. That's how and where the game really flips in your favor. And let's say the dollar pulls through and Trump's plan pays off and does exactly as advertised. And now you're stuck with all of this gold and cash flowing real estate. You're still winning. Do nothing and a loss is guaranteed.

You don't need to fight the system head on. Just use its rules against it. Hore what holds value. borrow what loses it, and cash flow while the rest panic. Hope is not a financial strategy. Let's get back to work. Moody's just dropped a bomb on the U.S., a credit downgrade that could increase your rent, decrease your savings, even cost you your job.

And almost no one's talking about it. But the real question isn't what they did. It's why now and what happens next? Because this is the third time in history, the U.S. has been slapped with a downgrade by a major credit agency. And the real fallout wasn't what people expected. Now, to most, this sounds like some boring Wall Street news. But when your livelihood and very well-being can be crushed overnight, it matters. Here's the deal. Moody's.

It's a major credit rating agency that assesses the financial health of governments, companies, and financial products. Think of it as a financial report card that indicate how. how risky it is to lend money to a particular entity. Well, they just downgraded America from AAA to A.A.1. That's one notch. But it's not about the letter or how much. It's about the Y. They basically said, hey, your debt, it's out of control.

And y'all in D.C.? You've been arguing for a decade with no real fix. And this isn't even the first warning the U.S. has had. Standard and Poor's pulled the plug first back in 2011. Then Fitch followed in 2003. And Moody's, they've had enough. But if all three are saying the U.S. is risky, why is no one panicking? Because it's like this.

Imagine maxing out your credit cards, then asking for more. And your bank finally says, yeah, we're going to have to pass. We don't trust you like we used to. That's what just happened to the U.S. government. That's why rents are on the rise. Why grocery prices feel insane. why everything feels a little bit more expensive. It's all connected.

And every time Congress kicks the can down the road, this debt monster, we call the national deficit, it gets a little bit bigger. So what does this downgrade really mean? Well, it's a warning shot. The U.S., they haven't defaulted yet. But the cracks are there. And when you ignore three fire alarms in a row,

you typically don't get a fourth. You get a fire. And it's not about just whether or not Wall Street will burn. It's about what you can do before the flames reach your paycheck. So what does this fire look like? I mean, how will you know when it's getting close to your home? It starts with a missed payment. Treasury bonds get questioned. And suddenly, the thing the entire world treats as risk-free isn't. But here's where it gets weird. Instead of trying to put out the fire, it seems as if Washington is just throwing more gasoline on it. President Trump is pushing his

one big, beautiful bill, a massive tax cut package that, according to independent analysts, could add over $3 trillion to the national debt in the next decade. Moody cited these fiscal concerns when downgrading the U.S. credit rating, warning that the government's ability to manage its debt, its weakening. Yet, the Trump administration dismissed the downgrade as a lagging indicator, attributing it to previous fiscal policies. Trump and his advisors argue that bold tax relief, combined with spending restraint will invigorate the economy and ultimately keep the nation's finances healthy. They tout the plan's unprecedented cost savings and project that a surging economy

aided by low taxes, regulatory rollback, and even tariff revenues will prevent debt from spiraling. And while Trump and his critics go back and forth, the markets are reacting. But the real blowback, it's happening quietly in the bond markets, in currency shifts, and in how foreign investors are repositioning their trust in America. Some investors, many of them, are nervous, but not all of them. Big players like Morgan Stanley and Goldman Sachs are still very bullish on the U.S., betting that the economy's strength, innovation, and deep capital markets will carry us through. Something you won't hear on CNN for a thousand, Alex. Even global investors like Kuwait's sovereign funds say, there's nowhere safer than the U.S. flaws and all. So yeah,

Moody's fired a warning shot, but to many on Wall Street, America is still the least ugly house on the block. So while the flames may calm for now, the next spark, it's coming. And the real question is, how do you protect yourself? Let's break down the five-step strategy to not just survive the collapse, but profit from it. So here's what happens if the fire reignites, and this time it's not extinguished. Confidence evaporates. Investors, they stop trusting the U.S. bonds. They dump them, or just demand higher interest just to keep buying them. Interest rates explode. Not just for the government, but for everyone.

Mortgages, car loans, credit cards all get more expensive instantly. Markets crash. Stocks nosedive. Retirement accounts bleed. Banks tighten up and borrowing dries up. Prices skyrocket. The dollar weakens fast. Anything imported, fuel, food, electronics becomes more expensive overnight.

Bank runs start. If people think the dollar's collapsing, they try to get out of it fast. That means chaos at ATMs, credit limits slashed, and panic setting in. Global dominoes fall. Since the U.S. dollar backs global trade, default triggers a chain reaction, shaking banks, economies, and currencies all over the planet. That's the fire. And if you don't have a plan, you burn with it. So here's a plan, and it happens to be my plan, as well as the plans of the wealthiest people I know.

Flip the script and use the system against itself. Pull a full reversal, a counter strategy to legally exploit inflation, weaponize debt, and protect yourself with hard assets while the system quietly crumbles. I'm calling it the exploit and escape strategy, also known as how to win when the dollar is dying. Step one, hedge with gold and Bitcoin, because you don't go all in on one basket. If the dollar takes a hit from inflation, policy, or panic, hard assets shine. Gold is stability, proven for 5,000 years. Bitcoin is volatility with a moonshot upside, the anti-dollar for digital age savers.

Allocate 5 to 10% of your portfolio into a mix of physical gold, specifically coins and bars. Cold-stored Bitcoin, not on exchanges. An option would be gold-backed crypto or ETS if you prefer Kemp. convenience. And you'll see how gold becomes the hero of this plan after step five. But first, step two. Flip your thinking about debt. Because most people fear debt, because they associate it with consumption, like on cars and shopping and vacations. But the rich use debt to buy control, to buy cash flow, assets that pay them monthly. Bad debt, that's short term, high interest loans on depreciating stuff. Good debt is fixed rates, long term, low interest loans on

income-producing assets. Step three now. Secure cheap debt before it gets rationed because as credit ratings fall, interest rates rise and banks tighten lending. Right now, you can still get long-term fixed debt at today's rates before the full downgrade effects hit. Apply for personal and business lines of credit. Loophole lending.com is a good source for this. Use seller financing, subject to or wrap mortgages whenever possible with your asset purchases. Secure credit. Secure credit. from fintech lenders and 0% business cards. Lock it in now. Lock all of them in now before the rules change. Step four, buy income producing real estate because real estate gives you three key advantages. One, cash flow, rents rise with inflation, leverage, use other people's money so you can

acquire more, tax breaks, depreciation, and interest deductions. And focus on small multifamily properties, in single family rentals, in landlord-friendly markets. and creative financing opportunities. The rule of thumb here is 60% of gross rent should cover all expenses before debt. If the cash flows with today's rate, it'll explode when you refinance later, or flat out disappear.

More on that in just a second. Step 5. Inflate your way to wealth, because inflation makes your debt cheaper and your assets more valuable. So if you bought real estate today with a fixed loan and inflation keeps going up, you're paying that loan back with weaker dollars, while your rent and property value are rising.

That's how the wealthy use inflation to win. It's like when you bought your first house or even a car, at first, that monthly payment might have felt like a stretch, but a year or two later, it felt normal, it felt smaller. Your income went up, that's why, but the payment stayed the same. That's inflation in action. Here's the key to use in the system against itself. If you can handle the debt early on, inflation will start working for you. Over time, your income rises, but your fixed payment doesn't.

The trick is staying afloat long enough for that flip to happen. Now, here's the wildcard most people miss. If the dollar collapses hard and fast, like it could should the U.S. miss a debt payment, your debt, priced in dollars, collapses with it. But your assets, like real estate or gold or maybe even Bitcoin, they hold their value or even spike. That means a loan that once cost a pound of gold to pay off could cost you just a few ounces after the crash.

That's the kind of wealth shift people don't see coming unless they're already holding the right assets. That's the five-step exploit-and-escape strategy. I put it in a document for you below. Hey, quick thing before you go, I'm running this weird experiment where I basically pay people to do real estate deals for them. And then I split the profits with them 50-50. And you can watch this right here to get all the details.

And yeah, I know it's probably the most ridiculous offer that I've ever made, but it's working like crazy. And if you're thinking there's a catch, you would be right. I can only work with two to three people per city. So if you're curious, check out to see if your market's still open or don't. It's not for everyone. I'll see you next time. Take care. And that wraps up the epic show.

If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings and success to you. I'm Matt Terrio. Living the dream.

Yeah, yeah, we got the cash flow. You didn't know home world, we got cash low. This podcast is a part of the C-suite race. Network. For more top business podcasts, visit c-sweetradio.com.