Transcription
If I had to start investing today from scratch, knowing what I know about the $37 trillion debt crisis, the crypto reset, and what's coming in the next few years, I would do everything differently. Most people think investing is about picking the right stock or somehow timing the market. But that's not what this is about anymore. We're living through the biggest wealth transfer in modern history. America's debts has reached a point where it can no longer be paid back. Not through taxes, not through cuts, not through growth. And history shows us what exactly happens next. The currency gets devalued. Inflation runs hot. And wealth transfers from the people holding cash to the people holding assets. If you position yourself correctly, you can protect your wealth and even come out ahead. But if you don't, you'll watch your purchasing power disappear while everyone else around you seems to be getting rich.
So, in this video, Winston and I, and Winston does all the hard thinking and research around here, as you can tell, which is why he's so exhausted. We're going to walk you through exactly what we would do if I was starting my investment journey right now. Not in a normal economy, but in this environment where the rules have changed, with the traditional playbook, it doesn't work anymore. So, this is the the debt reset investment strategy, and by the end of this video, you know exactly how to use it. So, let's get started.
Now, we're going to cover a lot of ground here today. So, I'm also going to give you for free a workbook that'll walk you through all these steps so you can download that and walk through that on your own afterwards and for this really to sink in and for you to make your plan for 2026. We all know the system is rigged. We know it isn't fair. We know it's designed to help the wealthy protect themselves while the regular people get left behind. And while that is true, once you see through that, you can actually participate on the winning side of it, no matter what your income level is. And this is really what this is about.
So most of us know the US owns some crazy $37 trillion in debt. It almost doesn't matter anymore what the number is. That's $280,000 per households, you know, six times annual national income. It's just impossible to ever pay this back. [snorts] And in the last few months of 2025, the mask has come off. The government has stopped pretending they're going to fix it through being responsible because politicians are incentivized to do the popular thing, not to do the right thing. They're now executing the plan that I've been warning you about. They're cutting interest rates. So, we are getting lower rates. And that's even though inflation is still pretty high. And they're basically saying GDP growth has to come in at something like 20%. That's not going to be real GDP growth. That's going to be inflation. And they're going to use crypto and stable coins to fund their debt. It's not theory anymore. This is actually happening right now. And it changes, I believe, how you should invest.
Now, I want to be very clear. I'm not a financial adviser. I'm not telling you what to do. I'm just giving you my insight, my perspective, and it can be perhaps part of your research. But the old rules, you know, just buy and hold a random index fund, keep 6 months of money aside as a emergency fund and have some cash savings lying around. Well, that doesn't really I don't think that's really working anymore. I think that was written for a different world. A world where the dollar was stable, where inflation was low, where the debt was manageable. That world isn't coming back anytime. So, if you keep playing by those rules, I think you're going to lose. Not because you are unlucky or something, just because the game has changed and you haven't been told. So, let me tell you what the new rules are. But first, quickly, you need to understand the framework. What's the plan of the mighty?
Now, if you're new here, I'm Felix P. I'm a former investment banker. That's Winston back there. And I've spent years studying how the system actually operates. I'm also the founder of the goat academy where we've taught over 20,000 students how to build and protect their wealth. I'm also the co-founder of trade vision which gives regular investors like you and me access to the same news and the same data that the institutional players use.
The first plan is to fund the ever-increasing debt. How are they going to do that? Not through taxes, not through any of that. Through crypto. How does that work? Well, you may have heard of stable coins, USDT and USDC particularly. They're the secret weapon. So, what happens is you buy a stable coin. So, you put a dollar into one of these stable coins. What does the stable coin do with your dollar? They are going to go and they're going to buy US debt with it. Why? Pays them an interest rate and has zero risk. And they're permitted to do that by law. The Genius Act makes this the rule essentially. So people give real dollars to these companies. The companies give a digital token back to you and they take the dollar and they buy US government debt with it. And it creates a massive demand for government debt. Now why is that important? Because the traditional buyers of US government debt, China, think Japan, think Saudi, you know, those guys, well, they're backing away. They saw what happened to Russia's $300 billion dollar in reserves that just got fugazied away, got frozen. But the crypto people, they're happy to hold stable coins, backed by government bonds. They think they're just holding digital dollars, but really they're funding America's debt. So that's step one. That's where the money comes from.
Now, step two, debt, right? We all know that there is debt. It's about 37 trillion of it. Stop hopping on about it. And then you have the real debt. So the government is never going to pay back the 37 trillion. They just make it worth less. How do they do that? Inflation. Think about it. If you owe somebody $100, but then inflation makes the dollar lose half its value. You really now only owe them $50. So the numbers stay the same, but the burden dropped by half. And this is how every empire in history has dealt with unpayable debt, right? Rome debased their currency. That is took the silver out of the coin. Britain afflated away their war debts and lost their reserve currency status. And now it's America's turn.
So what is the outcome of this? The outcome of this is step three. You get a big transfer of wealth from the savers. Their dollars are going to flow to asset owners. And when I say savers, I also mean salary men, which is a lovely Japanese phrase for people who have 9 to 5 jobs. I think it's very appropriate.
Now, here's where it gets personal. When inflation runs hot, cash loses value. Your savings account, say you're getting a 1% interest in your savings account, but inflation is at 5%. What do you think happens to your money? You are losing 4% per year. But when you buy assets, stock, real estate, gold, Bitcoin, they increase in value with the currency. You know, say you live in a $300,000 house, that just becomes a $400,000 house, not because it's a better house. That process is called inflation. So you [snorts] feel richer, but you probably aren't because you can't just go and buy a better house for 400,000. All the houses are now 400,000. So your dollars become worth less. But if you own assets, inflation can help you. Your stocks go up, your real estate appreciate, your Bitcoin moons, right? You feel rich. But if you're a salary slave, sorry, worker with cash savings, you get destroyed. your paycheck buys less every year. So yeah, you might be getting a 5% pay rise, but if inflation is 7% or 10%, I mean, talking about real inflation, not the number the government feeds you, then you're working harder, but you keep falling further behind. That sound familiar? That is the wealth transfer and it's happening. And the evidence is absolutely everywhere.
Trump is calling for 20% GDP growth. Now that just doesn't happen in a developed economy, but what you can get is 3% growth and 17% inflation, which makes the economy look 20% bigger. So you hit your target, you can tell everybody how marvelous you are, but it does actually make people poorer. You get the US government, the commerce secretary publicly attacking the Federal Reserve, demanding they cut interest rates. Again, that is normal. The Fed is supposed to be independent. Now, Trump's going to appoint a Fed chair who will do as he's told, who will cut interest rates. That's the requirement to get that job. So, the Fed is going to comply. They just cut interest rates again already. They're going to cut them a lot more next year despite inflation risks. And how does that work? Well, you get lower rates. Lower rates make debt cheaper. Think about your car loans, your store cards. I hope you paid them off, but you know what I'm talking about. All your interest drops. It's cheaper to do that. So, what are you going to do? You're going to spend more, right? The same applies to companies. It's cheaper to build the new factory, to buy the new machine, and finance it. And that all creates what? Well, it creates more profits along the way, more turnover. And that profit then means that stock prices go up. So the rich get richer. And part of this spending also means inflation goes up. And that's the plan. And that's because we have a disconnect. We have two economies. We have the Wall Street economy and we have the real economy. They are two different worlds. Wall Street is booming. Main Street is struggling. And the gap is going to get wider and wider and wider. That is actually polus. So this is the environment you're investing in. That's the 2026 reality. There's not a political statement, right? It's weird, but I benefit from it. But I also see the unfairness of it. And now you understand the game. So let me tell you how to win in this game in my humble opinion.
So here's the strategy and it's simple, right? Because um Winston likes simple. So I'm going to give you some rules. Rule number one is own assets, not cash. Not cash. Repeat that please. In an inflationary environment, cash is trash. It's the fuel that burns to transfer wealth. So, your number one priority is to convert your cash into assets as quickly as reasonably possible. Do that and you're going to do better. Now, I'm not saying zero dollars to your checking account, right? You're going to still have some emergency fund, keep what you need to pay bills, and so on, but everything else, put it to work. I do it every Monday. I put my money to work every single Monday.
And then the second part is we want to be in multiple places. So we want to be in different assets classes. We're going to dive into those a little bit more deeply because this is important. Don't put everything in one place. Don't be all 100% in AI or drones or Tesla or Palunteer or whatever because that's going to be risky because nobody ever knows which assets will perform best. So you want to spread this out a little bit. This is your life's the foundation of your life, right? So if I was starting today, this is what I would do.
Asset one, my favorite asset. I would put about 50 to 60% of my money into this. I'm not saying you need to, you should. It's not advice. I'm just saying some guidance, some thoughts to start your thought process. And what's the first asset? Stocks. Good old simple stocks. ownership of companies because when inflation hits, companies can raise their prices. Their revenue goes up, their profits go up, their stock prices go up, and they're printing money, and the money is going to flow into the stock market. It's all going to keep going up. Now, not every stock in this environment is going to work. So, you want companies with pricing power, companies that can pass inflation onto consumers. So, who have we got here? Big tech can pass on price increases. We have energy companies. they can just pass on the price increases. We have consumer staples, stuff you have to buy. We have healthcare, basically the stuff people need no matter what. Now, how do you invest in this? Look, if you want simplicity, you go for an index fund, something like VU. Again, I'm not advertising Vanguard. This is never a sponsor. We don't do any sponsorships or endorsements or anything that nonsense. We just keep it clean and simple here. But an ETF, basically a simple ETF that has low fees will do the trick. You could also be a little bit individual stocks if you're a bit more advanced, right? You can pick them. But the key is owning stocks. So keep it simple or you want to go individual stocks. You know what to do.
Now the second asset class to me, and this might surprise you, is real estate. Real estate is probably only accessible to you if you have a little bit more money. Like if you have $5,000, you can't exactly buy a house. Um, but it is a classic inflation hedge. As the dollar loses value, property prices go up and then you can actually get fixed rate mortgages, which means inflation actually helps you. So, say you wait for inflation to come down a little bit next year and then you get a fixed rate mortgage that is say you're going to pay 4% or maybe it's 5% mortgage. Now, if inflation runs hot and say inflation is at 8%, are you upset that you're paying 4% for the mortgage? No. Because that value of everything is going to go up by 8% at least in nominal terms. So, your mortgage is going to be less and less and less and less and less. It's the same thing that the US government's doing with its debt, right? So debt becomes cheaper in real terms. While your asset appreciates as a proportion of your house, the mortgage is going to be less and less and less and less and less. So I'm not saying go out and buy three rental properties tomorrow. That's, you know, not what I'm saying. But I'm saying get some real estate exposure. Now, you could also do REITs. REITs are real estate investment trusts. They are traded. These are companies that own property. So you can buy shares in them just like with anything else. They typically pay dividends. They appreciate with inflation. Usually quite volatile, but can be a good way to get access to that if you can't or don't want to buy real estate. It's called real for a reason, by the way. [laughter]
Number three, gold. Maybe you want to throw silver into the mix as well. Gold's been for 5,000 years plus, and central banks around the world are buying more gold than at any time in the last 50 years. Why? [clears throat] They don't trust the dollar. [laughter] They see what's coming. they've watched this video. So if the people running this system don't trust the currency, why should you hold all your wealth in it? So how do you invest into it? The simplest way is maybe not the simplest way, but is buy physical gold. Buy this from the the big reputable dealers, not some random corner store. You want to get a good price. The bigger the piece you buy, the the lower their markup. You can also buy gold ETFs. There are gold ETFs like GLD. they will match the price essentially simpler but you don't have the benefit of having the physical thing. Um gold miners if you can handle more risk we made a lot of money on gold miners this year but that becomes a little bit more you know there's a little bit more to it. [snorts] That's number three.
And then you got number four crypto. Now I'm going to put Bitcoin here because that would be the one that most people would go for. Um and I'm not a crypto maximalist. I I but I you can't ignore the numbers. Bitcoin has outperformed every asset class for the last decade. And there is a reason that I'm not a crypto maximalist. And I think it's something most people miss. Crypto isn't fighting the system anymore. It is the system. Stable coins are funding government debt. Politicians are now pro- crypto. This is not a rebellion. This is an integration. Now, my humble opinion is that Bitcoin was made by certain threeletter agencies to just mop up all the dodgy money out there and get complete transparency. And then we're going to move to the beautiful shiny new world of central bank digital currencies where they can track and trace every payment across the world and they can tax it, they can freeze it. So, how do you invest in Bitcoin? Um, I still think it's probably the safest bet in crypto. It's still pretty volatile. Ethereum could be something you could add to it. I'd keep it simple. Don't invest more than you can afford to lose. That's generally the rule in trading.
So, that is basically the framework. If you did drew a pie chart here, and everybody's pie chart looks different. Mine looks like a real pie. Uh, for me, it's mostly stocks. Then you have some real estate. And then you have up here some basically metals and crypto. All four asset classes have one thing in common. They inflate with the currency. We've covered this. We haven't covered what not to do because avoiding mistakes is actually even more important than making good decisions.
So what's the mistake number one? I see this with lots of people. They're sitting on the sidelines. They're saying, "I'm waiting for the crash. I'M GOING TO INVEST LATER." So cash is your enemy. Too much cash, it's a guaranteed to lose money. If you look at history, I don't know the exact number was, but the last, I don't know, 80 years, the dollar has lost something like 90% of its value. That's happening now and it's happening at an accelerated rate. So you are definitely going to lose money on the cash. I'm still saying, you have some emergency fund around. You're going to need to be able to pay the pay the bills and so on.
The second mistake that I see is longterm bonds. Bonds are supposed to be the safe investment, right? But if you get lots of inflation, they actually get destroyed. Why? Because bonds pay fixed interest. Most of them do. So say you buy a bond that pays a fixed, you know, 4% interest right now, which would not be so bad. I think 4% 4% is okay, right? Guaranteed no no downside. But what if inflation and I'm talking about real inflation here goes up to say 6%. You are actually losing 2% per year in real terms. So what do you think is going to happen to the value of that bond? You think people are going to buy that off you? No, they're not. So long-term bonds don't make a lot of sense for most people. Um, now if you're in retirement can be a part of it, right? Just don't lock up everything in these long-term treasuries with fixed interest rates. There are floating [snorts] rates that can be better. There are some corporate bonds that actually can makes a lot of sense, but the long-term treasuries seem like a mad thing to do.
And then number three, this is for the timers. The market timers. You want to wait for the perfect moment, don't you? I'll invest when the market pulls back. I'll wait until things settle down. Here's the problem. The plan's in motion. The Fed is cutting rates. The government's printing money. The government spending two trillion more per year than it has. Asset prices are rising. Every month you wait is a month of devaluation. Every week in cash is a week you lose. Don't try to time it perfectly. There isn't a perfect timing. Dollar cost average if that makes you feel better. So take your lump sum and spread it into the market over 6 months. Right? Psychologically that can often make things easier. It's the same thing.
And then number four, people ignore the world. Especially you Americans. You don't realize there is a world west of California and east of New York. [laughter] Um but no, in all honesty, this is happening everywhere. Europe is doing the same thing. They have the same debt crisis. They want to ease policy. Japan's been doing this for 30 years. Most of Asia is dealing with the same problem. The whole world is coordinated in this. Every major central bank is going to print money. All currencies are going to devalue together. Even if you think, oh, I can move to euros or yen or something, it doesn't solve the problem. They are all losing value together. That's why you need assets. Assets are the escape hatch. It's your it's your life vest from all the currencies simultaneously losing value.
So how do we implement this in in in actual steps? First step is you do an audit. You sit down, you write down what you got, where you what you own. I do this every week. Seriously, every Sunday I do this and I share it with my family so that we all are on the same page. Cash and checking accounts, retirement accounts, 401ks, IRA, your taxable accounts, any real estate you have, any crypto, any gold. You want to track that stuff so you know what you've got. Look at what percentage is in each asset class. What percentage is in cash versus assets?
And then in number two, set your target allocation. Don't follow what I'm doing blindly. Come up with what works for you, right? Talk to a financial adviser about it. Find someone who's smart. Pay him by the hour. Don't give him a commission. He's going to recommend stuff that you don't want. And if you don't already have them, you're going to need the right kind of accounts. If you're in the US, you definitely want a Roth IRA, right? you want to max out your 401ks up to the contribution from your company, your employer if you've got one. Um, if you want to own crypto, well, you're going to need an account. Someone like Coinbase is probably a safe place to have an account. Your gold ETFs, your REITs, all that stuff will come from your from your brokerage. You probably already have that. Now, if you want to buy physical gold, any major dealer is fine, right? Just set that up. Again, you're probably going to have to do some KYC there. That's going to take a few days.
And then every week or every month, depending on how you get paid, you're going to want to automate, you want to auto invest. And that can be done manually, but it's still it's a process you'll always do. So maybe that'll be, you know, $500 into VU. Maybe that'll be $200 into some REIT, right? Maybe it's $100 into gold. Again, these are just random numbers. I'm not saying that's what you should do. Everybody, it'll depend on, you know, where you are. And you could obviously add some crypto to that. Adjust the amounts of your situation. You're going to want to make it automatic.
And then probably the most important step, if you only learned one thing today, it is ignore the noise. They [snorts] try to shake you out of your plan because it what is what makes you wealthy. And um you just got to stick with it. The market's going to have bad days. Stuff's going to crash. It's going to recover. Real estate will do this and that. Gold will be boring for a year. None of that really matters. What matters is the long-term trend. And the long-term trend is clear. Currencies will lose value. Assets will inflate. Wealth will move from the cash people, that's the salaried people, and the people who are saving to the asset owners. There's only one way to win. It is to be an asset owner. Everything else is secondary. Set up the system, automate it, live your life. Don't check your portfolio every day. It makes no bloody difference. Don't panic sell when things drop. Don't chase the latest hot stock. Don't feel like you're going to miss out on stuff. People always say to me, "Oh, Felix, are you in on this thing?" I'm like, "No." And they look at me like, "But why not? Why not opinion?" I'm like, "I'm perfectly happy missing out on most things." And once you realize that you'll always miss out on most things and you can still be financially free and live a beautiful life and have tremendous returns. The pressure kind of gets taken away. You don't need to watch and read everything.
The power brokers, the politicians, the bankers, the Wall Street guys, they know everything I've just told you. They own stocks, they own real estate, they own gold, they own businesses, they are positioned perfectly for inflation. So when they cut interest rates, they pump inflation, they make more money, their real estate appreciates, their wealth compounds faster. The normal people, the nurses, the teachers, the truck drivers, the small business owners, they just see higher bills, higher rent, higher gas. their money seems to be not going as far. Inequality is going to accelerate. I don't think this is some evil conspiracy. I think this is just the decision. This is what happens when you spend too much money for too long. The debt's too big. System is now entrenched. The incentives are aligned. They're going to do this. Most people won't understand this. So, most people won't notice that it's happening. They won't blame anyone for it. But you now understand it. you can cha choose to be on the right side of the wealth transfer, right? You and your children and and generations to come. So benefit from the policies no matter what you think of them and use them to understand your wealth wealth building plan and and just sit down and write that out. Do it with your family. That's what I always say to people. Bring your better half. And I want you guys to be empowered. And if you feel like we achieved some of that here today, then share it with a friend, post it on your social media. That's the one thing that will actually help people. And I wish you a beautiful, happy, and successful 2026.