1 00:00:00,120 --> 00:00:02,760 Speaker 1: Hello, and welcome to another episode of The Mark Moss Show, 2 00:00:02,759 --> 00:00:06,600 Speaker 1: where we talk about the decentralized revolution each and every week, 3 00:00:06,640 --> 00:00:08,600 Speaker 1: of course, talking about the way the world is changing 4 00:00:09,039 --> 00:00:11,520 Speaker 1: as we look at it through the lens of politics, finance, 5 00:00:11,640 --> 00:00:16,400 Speaker 1: and technology. I'm in the studio today with Max Gigliardi 6 00:00:16,920 --> 00:00:19,759 Speaker 1: and we are going to talk about how this world 7 00:00:19,840 --> 00:00:23,440 Speaker 1: is changing. Some hot topics today, specifically around the death 8 00:00:23,480 --> 00:00:25,960 Speaker 1: of the dollar that's been exaggerated, as well as the 9 00:00:26,079 --> 00:00:30,520 Speaker 1: changing shift backing the dollar in energy markets and so 10 00:00:30,520 --> 00:00:32,720 Speaker 1: so much other stuff I want to talk to you about. Max. Anyway, Thanks, 11 00:00:32,800 --> 00:00:36,160 Speaker 1: thanks for taking the time to join me today. Yeah, Mark, 12 00:00:36,159 --> 00:00:39,040 Speaker 1: thanks for having me on. Excited to be here, man, 13 00:00:39,080 --> 00:00:41,320 Speaker 1: I want to get into some of these pressing issues 14 00:00:41,360 --> 00:00:44,000 Speaker 1: that are on everybody's mind. Of course, like I said, 15 00:00:44,040 --> 00:00:46,760 Speaker 1: we see all these headlines about the attack on the dollar, 16 00:00:47,240 --> 00:00:50,800 Speaker 1: d dollarization, trading, and you want all these things. But 17 00:00:50,880 --> 00:00:53,960 Speaker 1: then the big hammer dropped this week, which is like, 18 00:00:54,000 --> 00:00:56,840 Speaker 1: what's really been backing the dollar has been this oil, 19 00:00:56,920 --> 00:01:01,240 Speaker 1: this petro dollar, and then we got big announcements out 20 00:01:01,280 --> 00:01:04,000 Speaker 1: of OPEC and what's happening with the petro dollar. I 21 00:01:04,000 --> 00:01:05,480 Speaker 1: want to get your take on that as well as 22 00:01:05,560 --> 00:01:09,080 Speaker 1: kind of this energy crisis and what's preventing us from 23 00:01:09,120 --> 00:01:13,440 Speaker 1: transitioning back. Before we get into that, though, I want 24 00:01:13,440 --> 00:01:15,560 Speaker 1: to jump into this one thing. I know you host 25 00:01:15,640 --> 00:01:21,200 Speaker 1: your own show called Always Be Building. I think that's right, Yep, 26 00:01:21,319 --> 00:01:25,640 Speaker 1: that's it. Yeah, always be Building. And so let's talk 27 00:01:25,680 --> 00:01:28,399 Speaker 1: about that just for a second, because you know, for 28 00:01:28,480 --> 00:01:33,039 Speaker 1: a lot of people, they're scared, and they rightfully so, right, 29 00:01:33,080 --> 00:01:36,680 Speaker 1: I mean, we're going through massive uncertainty right now. To me, 30 00:01:36,800 --> 00:01:39,000 Speaker 1: the world never has never seemed more uncertain, at least 31 00:01:39,000 --> 00:01:40,440 Speaker 1: from a US standpoint. I get it if you're in 32 00:01:40,520 --> 00:01:42,880 Speaker 1: other countries or whatever, and so a lot of people 33 00:01:42,880 --> 00:01:46,040 Speaker 1: are really paralyzed by this fear and they get you know, 34 00:01:46,319 --> 00:01:49,200 Speaker 1: not even this is announced Prouse, but literally, like I said, 35 00:01:49,360 --> 00:01:51,960 Speaker 1: analyze paralyzed by fear. I don't know what to do. 36 00:01:52,200 --> 00:01:54,360 Speaker 1: You know, what's the point? I hear it all the time. 37 00:01:54,400 --> 00:01:57,160 Speaker 1: These people are defeated. So anyway, let's talk about that. 38 00:01:57,200 --> 00:02:01,360 Speaker 1: Always be building. You know, I've believed in because of experiences, 39 00:02:01,400 --> 00:02:04,320 Speaker 1: but like bear markets are the time to be building? 40 00:02:04,600 --> 00:02:09,000 Speaker 1: What's your view on that? Absolutely? I think the best 41 00:02:09,040 --> 00:02:11,679 Speaker 1: heads you can make is a bet on yourself, right, 42 00:02:11,720 --> 00:02:13,560 Speaker 1: I mean if you're whether you know, I learn a 43 00:02:13,600 --> 00:02:14,960 Speaker 1: lot of people get caught up in the corporate world. 44 00:02:15,000 --> 00:02:17,600 Speaker 1: I'm not saying there's anything wrong with that. I've tended 45 00:02:17,680 --> 00:02:20,440 Speaker 1: to lean more in my career towards the entrepreneurship side. 46 00:02:20,440 --> 00:02:22,520 Speaker 1: I've been kind of forced to do that. But what 47 00:02:22,600 --> 00:02:24,880 Speaker 1: I found is that you know, whenever you bet on 48 00:02:24,919 --> 00:02:27,440 Speaker 1: yourself and you find out ways to create income from 49 00:02:27,440 --> 00:02:29,640 Speaker 1: yourself through different businesses that you can create, it may 50 00:02:29,680 --> 00:02:32,680 Speaker 1: seem more perceivably risky from the outside looking in, and 51 00:02:32,720 --> 00:02:34,600 Speaker 1: there are certainly risks there. I think there are different 52 00:02:34,600 --> 00:02:36,880 Speaker 1: types of risks, but I think that bet on yourself 53 00:02:36,919 --> 00:02:39,840 Speaker 1: and leaning into the skills that you have, you know, 54 00:02:39,960 --> 00:02:42,960 Speaker 1: really finding what you do best and doing you know, 55 00:02:43,040 --> 00:02:45,160 Speaker 1: the most you can in life to foster that and 56 00:02:45,200 --> 00:02:47,720 Speaker 1: to grow it. That's an incredible headge Because the world 57 00:02:47,800 --> 00:02:50,040 Speaker 1: is going to change, industry is going to change, the 58 00:02:50,160 --> 00:02:52,680 Speaker 1: markets are going to change. But as long as you 59 00:02:52,680 --> 00:02:55,840 Speaker 1: know your strengths and you you know, like I keep saying, 60 00:02:55,919 --> 00:02:58,480 Speaker 1: put the bet there on what you're good at, I 61 00:02:58,520 --> 00:03:00,840 Speaker 1: think that is the best heads to the ups and downs. 62 00:03:02,000 --> 00:03:04,960 Speaker 1: So you're saying, rather than like having this job, where 63 00:03:04,960 --> 00:03:07,720 Speaker 1: most people think that job is their security, and that 64 00:03:07,840 --> 00:03:09,720 Speaker 1: you know, as long as I have this job, I'm okay. 65 00:03:10,000 --> 00:03:12,360 Speaker 1: The reality is maybe that job isn't security because if 66 00:03:12,400 --> 00:03:14,120 Speaker 1: you get fired now, you don't have any skills. And 67 00:03:14,160 --> 00:03:15,920 Speaker 1: so I think what you're saying is that you're better 68 00:03:15,919 --> 00:03:20,000 Speaker 1: off building your own skills so that as the tide changes, 69 00:03:20,040 --> 00:03:22,840 Speaker 1: as the world changes, you have your own skills to 70 00:03:22,919 --> 00:03:26,119 Speaker 1: kind of build off of, and that's what gives you security. Absolutely. 71 00:03:26,160 --> 00:03:27,880 Speaker 1: I mean, think about it. If you're a job, you know, 72 00:03:28,000 --> 00:03:29,959 Speaker 1: you could have a boss that you worked for for years. 73 00:03:30,480 --> 00:03:32,120 Speaker 1: You're getting really tight with that boss. You're trying to 74 00:03:32,120 --> 00:03:34,920 Speaker 1: climb the ladder. Let's say that person leaves one day. Now, 75 00:03:34,920 --> 00:03:36,440 Speaker 1: all of a sudden, you got a new boss, or 76 00:03:36,480 --> 00:03:38,839 Speaker 1: the management changes for the company, or the company goes 77 00:03:38,880 --> 00:03:40,800 Speaker 1: through a hard time. You know, you can put in 78 00:03:40,840 --> 00:03:42,240 Speaker 1: all this work. And I had this happened to me 79 00:03:42,360 --> 00:03:44,720 Speaker 1: early in my career, where it was like nights and weekends, 80 00:03:44,800 --> 00:03:47,840 Speaker 1: you know, sixty hour weeks, and you know, things happen 81 00:03:47,880 --> 00:03:49,800 Speaker 1: at the corporate level and you look up and it's 82 00:03:49,800 --> 00:03:51,480 Speaker 1: a new regime and you feel like all that you 83 00:03:51,560 --> 00:03:54,640 Speaker 1: worked for was kind of gone. Whereas with being an entrepreneur, 84 00:03:54,760 --> 00:03:56,480 Speaker 1: you know, with our clients or with our companies. Now 85 00:03:56,520 --> 00:03:58,520 Speaker 1: we may have dozens of clients. If I get fired 86 00:03:58,520 --> 00:04:00,440 Speaker 1: by a client or something doesn't work out, that's okay 87 00:04:00,480 --> 00:04:03,800 Speaker 1: because I've spread that risk across multiple things. We've created 88 00:04:03,840 --> 00:04:06,680 Speaker 1: multiple income streams rather it be through real estate, through 89 00:04:06,680 --> 00:04:09,160 Speaker 1: the energy side, with our businesses, through the bitcoin mining 90 00:04:09,400 --> 00:04:11,800 Speaker 1: venture that we have. So we've got these different things 91 00:04:11,840 --> 00:04:13,960 Speaker 1: now that you know. Some will argue, well, you spread 92 00:04:14,000 --> 00:04:16,400 Speaker 1: yourself then, but I think the key is having good partners, 93 00:04:16,400 --> 00:04:20,080 Speaker 1: good employees, building up you know, specific knowledge, and then 94 00:04:20,120 --> 00:04:23,440 Speaker 1: figuring out ways to leverage that knowledge and turn that 95 00:04:23,480 --> 00:04:27,000 Speaker 1: into a more stable foundation. And I think, again, that's 96 00:04:27,040 --> 00:04:28,800 Speaker 1: just the way I view things. I'm not saying it's 97 00:04:28,800 --> 00:04:30,680 Speaker 1: the only way to do it, but I've found for 98 00:04:30,720 --> 00:04:36,240 Speaker 1: me and my skills, that's what's fit me best. Basically, Yeah, 99 00:04:35,480 --> 00:04:38,080 Speaker 1: I want to jump into the oil and the energy 100 00:04:38,120 --> 00:04:40,160 Speaker 1: stuff and the OPEC stuff, but just one more thing 101 00:04:40,200 --> 00:04:42,240 Speaker 1: that I want to kind of hit on here. You 102 00:04:42,279 --> 00:04:44,160 Speaker 1: know something I've been kind of thinking about, which is 103 00:04:44,839 --> 00:04:47,279 Speaker 1: the new oil. And you might have heard that term before. 104 00:04:47,800 --> 00:04:50,200 Speaker 1: I saw you post something on your Twitter the other 105 00:04:50,279 --> 00:04:54,320 Speaker 1: day and it said something about, you know, hey, new 106 00:04:54,360 --> 00:04:56,400 Speaker 1: students or whatever before you move into your career. You 107 00:04:56,440 --> 00:04:59,480 Speaker 1: should build your audience in that career before you jump 108 00:04:59,520 --> 00:05:01,840 Speaker 1: into that something to that effect, And you know, kind 109 00:05:01,839 --> 00:05:03,840 Speaker 1: of made me think about how, you know, one hundred 110 00:05:03,960 --> 00:05:05,760 Speaker 1: years ago you needed to have capital. You know, I 111 00:05:06,040 --> 00:05:08,520 Speaker 1: wrote a book called the Uncommunist Manifesto, and one of 112 00:05:08,560 --> 00:05:10,560 Speaker 1: the things Carl Marx was so mad about was that 113 00:05:10,680 --> 00:05:12,800 Speaker 1: if if you didn't have capital, you couldn't get ahead. 114 00:05:12,800 --> 00:05:14,200 Speaker 1: And so you need a capital, get a factory, you 115 00:05:14,200 --> 00:05:17,679 Speaker 1: can get a higher get equipment and workers and so forth. 116 00:05:17,800 --> 00:05:19,800 Speaker 1: But then then then a guy in a dorm room 117 00:05:19,839 --> 00:05:21,720 Speaker 1: could write a line of code and could become a billionaire. 118 00:05:21,720 --> 00:05:23,200 Speaker 1: And so now is it the leverage of being able 119 00:05:23,240 --> 00:05:25,960 Speaker 1: to write code or programming. But it seems like today 120 00:05:26,040 --> 00:05:30,320 Speaker 1: the new oil is this attention, is this audience. And 121 00:05:30,360 --> 00:05:33,120 Speaker 1: it seems like once you've managed, once you figured out 122 00:05:33,160 --> 00:05:38,599 Speaker 1: how to gather attention speak to a group, that might 123 00:05:38,640 --> 00:05:41,600 Speaker 1: be one of the highest leverage skills you could have 124 00:05:41,760 --> 00:05:45,320 Speaker 1: as well as one of the highest leverage things that 125 00:05:45,360 --> 00:05:47,400 Speaker 1: you could do to build that audience. You could always 126 00:05:47,640 --> 00:05:49,720 Speaker 1: scale things into And I know you're you also host 127 00:05:49,720 --> 00:05:51,400 Speaker 1: your own show. You know, what's your take on that? 128 00:05:51,560 --> 00:05:54,280 Speaker 1: For young people or anybody. I guess it's huge. It's 129 00:05:54,279 --> 00:05:57,800 Speaker 1: probably the biggest mistake I made in my career. I sorry, 130 00:05:57,880 --> 00:06:00,520 Speaker 1: Siri just kicked on there. I don't want her. They're 131 00:06:00,600 --> 00:06:04,320 Speaker 1: listening to us all the time, mark they I think 132 00:06:04,320 --> 00:06:06,040 Speaker 1: it's one of the biggest mistakes I'm in my career. 133 00:06:06,080 --> 00:06:08,839 Speaker 1: I basically, you know, had become an entrepreneur. I did 134 00:06:08,880 --> 00:06:11,520 Speaker 1: a lot of things right, but I was very cynical 135 00:06:11,520 --> 00:06:13,960 Speaker 1: on social media. I was very cynical about, you know, 136 00:06:14,080 --> 00:06:16,800 Speaker 1: leveraging media as a technology that could be used as 137 00:06:16,800 --> 00:06:18,440 Speaker 1: a tool. I you know, kind of viewed it as 138 00:06:18,480 --> 00:06:20,840 Speaker 1: a waste of time and something that I just didn't 139 00:06:20,880 --> 00:06:22,440 Speaker 1: put a lot of attention in. And I think when 140 00:06:22,480 --> 00:06:25,440 Speaker 1: COVID hit myself and a lot of people, this is 141 00:06:25,440 --> 00:06:28,040 Speaker 1: a very common story that you hear realize that a 142 00:06:28,040 --> 00:06:30,520 Speaker 1: lot of my you know, traditional means of distribution, and 143 00:06:30,640 --> 00:06:32,560 Speaker 1: by that I mean networking in some ways, which is 144 00:06:32,600 --> 00:06:36,159 Speaker 1: basically getting ideas out there, meeting with people, getting in 145 00:06:36,160 --> 00:06:38,080 Speaker 1: front of people. Those avenues were closed off for a 146 00:06:38,080 --> 00:06:41,200 Speaker 1: period of time, and just started to see the benefits 147 00:06:41,200 --> 00:06:44,120 Speaker 1: of what having an audience could could do. And then 148 00:06:44,160 --> 00:06:45,760 Speaker 1: the other thing is it's like that saying if a 149 00:06:45,800 --> 00:06:47,640 Speaker 1: tree falls in the woods and there's nobody there to hear, 150 00:06:47,680 --> 00:06:49,200 Speaker 1: it doesn't really make a sound like you could be 151 00:06:49,240 --> 00:06:52,320 Speaker 1: the best whatever. Pick your profession, you could be the 152 00:06:52,320 --> 00:06:54,880 Speaker 1: best at that profession. But you know, the limit of 153 00:06:54,920 --> 00:06:56,680 Speaker 1: that is how many people know that you're good at 154 00:06:56,680 --> 00:06:58,320 Speaker 1: what you do, how many people know the value that 155 00:06:58,360 --> 00:07:00,200 Speaker 1: you can create and that you can bring. And so 156 00:07:00,279 --> 00:07:03,360 Speaker 1: unless you have a means of distribution for those thoughts 157 00:07:03,360 --> 00:07:05,599 Speaker 1: and ideas to get that out into the world, it's 158 00:07:05,680 --> 00:07:08,479 Speaker 1: very hard to maximize that value and use leverage. And 159 00:07:08,520 --> 00:07:11,520 Speaker 1: so leverage could be debt, leverage could be your network, 160 00:07:11,600 --> 00:07:14,480 Speaker 1: leverage could be employees, but it's also media. I think 161 00:07:14,600 --> 00:07:17,560 Speaker 1: having this ability to get those ideas out there is huge, 162 00:07:18,000 --> 00:07:20,040 Speaker 1: and for people that are young and looking to get 163 00:07:20,080 --> 00:07:23,320 Speaker 1: into a career, there's really nothing stopping you from learning 164 00:07:23,320 --> 00:07:26,200 Speaker 1: about that career, certainly given the amount of information that's 165 00:07:26,240 --> 00:07:28,640 Speaker 1: out there and the educational front, but also not just 166 00:07:28,760 --> 00:07:31,000 Speaker 1: learning about it, but connecting with the people in that 167 00:07:31,680 --> 00:07:33,760 Speaker 1: industry or whatever it may be. And then as you 168 00:07:33,800 --> 00:07:36,000 Speaker 1: start to learn, you can create content, you can make 169 00:07:36,040 --> 00:07:39,240 Speaker 1: those connections, you can start to give value to a community, 170 00:07:39,480 --> 00:07:41,600 Speaker 1: and then that will grow and you can build those 171 00:07:41,600 --> 00:07:44,520 Speaker 1: distribution channels. Again, I don't care how good your podcast is, 172 00:07:44,560 --> 00:07:47,000 Speaker 1: how good you are at sales, or you are at 173 00:07:47,080 --> 00:07:49,560 Speaker 1: whatever your profession is. If you know, if nobody's there, 174 00:07:49,600 --> 00:07:52,120 Speaker 1: if your distribution channels aren't there, then it's to be 175 00:07:52,200 --> 00:07:55,360 Speaker 1: very hard to leverage that skill into creating value for 176 00:07:55,400 --> 00:07:57,960 Speaker 1: yourself and others. Yeah, A couple good things that you 177 00:07:57,960 --> 00:07:59,880 Speaker 1: said there. I mean distribution if you think about it 178 00:07:59,880 --> 00:08:01,520 Speaker 1: like that. So if you think about like a brand 179 00:08:01,520 --> 00:08:04,600 Speaker 1: like Coca Cola, like really, I mean they have they 180 00:08:04,640 --> 00:08:06,720 Speaker 1: have the syrup. The bottlers are the ones that make 181 00:08:06,760 --> 00:08:08,960 Speaker 1: the product, but what they really have is they have 182 00:08:09,040 --> 00:08:11,200 Speaker 1: the distribution. They can get any product into any store 183 00:08:11,240 --> 00:08:13,320 Speaker 1: anywhere in the world boom, right. They can launch a 184 00:08:13,320 --> 00:08:15,080 Speaker 1: new water product or whatever it is in boom. They 185 00:08:15,120 --> 00:08:16,880 Speaker 1: have that distribution. So when you think about it that, 186 00:08:16,920 --> 00:08:19,120 Speaker 1: it's like you have your list. I would also say, 187 00:08:19,200 --> 00:08:20,680 Speaker 1: just to kind of add on to that a couple 188 00:08:20,720 --> 00:08:24,800 Speaker 1: other things is that, you know, I think, as you've 189 00:08:24,800 --> 00:08:27,720 Speaker 1: probably found, like you think you grasp an idea, You 190 00:08:27,720 --> 00:08:31,560 Speaker 1: think you grasp a concept, and you think you understand it, 191 00:08:31,600 --> 00:08:34,599 Speaker 1: but once you try to actually repeat that, articulate it, 192 00:08:34,640 --> 00:08:37,040 Speaker 1: write it down whatever you find yourself. Shoot, I'm not 193 00:08:37,080 --> 00:08:39,960 Speaker 1: actually that clear on this. And so you know there's 194 00:08:40,000 --> 00:08:42,120 Speaker 1: three levels of learning. One is to read it, you know, 195 00:08:42,240 --> 00:08:44,120 Speaker 1: learn it, to do it, and then three to teach it. 196 00:08:44,160 --> 00:08:47,960 Speaker 1: And so by creating content, you're always kind of reinforcing 197 00:08:47,960 --> 00:08:50,440 Speaker 1: those ideas, getting yourself to think more critically about it. 198 00:08:50,679 --> 00:08:52,120 Speaker 1: Of course, then you put it out into the world 199 00:08:52,160 --> 00:08:54,600 Speaker 1: and then you get real world feedback, which then makes 200 00:08:54,600 --> 00:08:57,240 Speaker 1: you really sharpen your pencil as well. But I wanted 201 00:08:57,280 --> 00:08:58,920 Speaker 1: to start with that. If you're just tune in, you're 202 00:08:58,960 --> 00:09:01,240 Speaker 1: listening to the Markma Show. Of course we talk about 203 00:09:01,280 --> 00:09:03,960 Speaker 1: the decentralized revolution. I'm in the studio with Max Garigliardi. 204 00:09:04,040 --> 00:09:06,320 Speaker 1: We're talking. We're gonna we're gonna talk about the dollar, 205 00:09:06,360 --> 00:09:08,000 Speaker 1: We're gonna talk about energy. But I want to talk 206 00:09:08,000 --> 00:09:11,280 Speaker 1: about that for a minute because I think it's one 207 00:09:11,320 --> 00:09:14,280 Speaker 1: of the most important things no matter what what you 208 00:09:14,320 --> 00:09:16,960 Speaker 1: do for work or where you are in your career, 209 00:09:17,040 --> 00:09:19,240 Speaker 1: whether you're a student or you're about to retire, I 210 00:09:19,280 --> 00:09:22,880 Speaker 1: think it's important to control that narrative and have that 211 00:09:22,920 --> 00:09:25,160 Speaker 1: practice of building that audience and that attention. I'm gonna 212 00:09:25,160 --> 00:09:26,640 Speaker 1: take a quick break. We're gonna take a quick second. 213 00:09:26,679 --> 00:09:28,640 Speaker 1: We're gonna come back. We're gonna talk about the dollar, 214 00:09:28,800 --> 00:09:30,720 Speaker 1: talk about the death of the dollar by a thousand cuts, 215 00:09:30,720 --> 00:09:32,640 Speaker 1: what's happening with energy, and so much more. Don't go away, 216 00:09:32,720 --> 00:09:34,760 Speaker 1: We're gonna be right back. All right, welcome back. If 217 00:09:34,760 --> 00:09:37,400 Speaker 1: you're just jumping in, you're listening to the Mark Moss Show. 218 00:09:37,400 --> 00:09:39,640 Speaker 1: Of course, we talk about the decentralized revolution, the way 219 00:09:39,640 --> 00:09:41,680 Speaker 1: the world is changing. I'm in the studio with Max 220 00:09:41,720 --> 00:09:45,080 Speaker 1: Gigliardi and we're talking about well, a lot of things, 221 00:09:45,120 --> 00:09:46,560 Speaker 1: and I want to talk about Max, I want to 222 00:09:46,559 --> 00:09:49,040 Speaker 1: talk about the energy markets. But I think really to 223 00:09:49,120 --> 00:09:51,360 Speaker 1: understand the energy markets, we kind of have to start 224 00:09:51,400 --> 00:09:55,040 Speaker 1: maybe with the currency markets. You know, if you want 225 00:09:55,040 --> 00:09:58,960 Speaker 1: to take money from a philosophical level, it's really stored energy, 226 00:09:59,160 --> 00:10:02,120 Speaker 1: right I my energy. I get paid in money. I 227 00:10:02,120 --> 00:10:04,520 Speaker 1: don't want the money, but that's where I store that energy, 228 00:10:04,600 --> 00:10:06,360 Speaker 1: that labor until I want to spend it at some point. 229 00:10:06,400 --> 00:10:08,040 Speaker 1: So I think you kind of have to understand that. 230 00:10:08,400 --> 00:10:11,000 Speaker 1: And so I want to jump into the oil energy markets. 231 00:10:11,480 --> 00:10:14,360 Speaker 1: But before, let's just talk for a minute. Because a 232 00:10:14,440 --> 00:10:16,360 Speaker 1: lot of people will probably have been seeing the headlines 233 00:10:16,440 --> 00:10:19,199 Speaker 1: all over the news this last week even I saw 234 00:10:19,200 --> 00:10:21,600 Speaker 1: a Tucker Carlson on Fox News talking about the death 235 00:10:21,600 --> 00:10:24,520 Speaker 1: of the dollar, and so, you know, for a lot 236 00:10:24,520 --> 00:10:27,120 Speaker 1: of people that maybe don't know, in nineteen seventy one, 237 00:10:27,200 --> 00:10:30,199 Speaker 1: the dollar got off the gold standard, gold didn't back 238 00:10:30,240 --> 00:10:33,120 Speaker 1: it anymore, and then nineteen seventy four went onto an 239 00:10:33,120 --> 00:10:35,480 Speaker 1: oil standard where it was really backed by oil. And 240 00:10:35,480 --> 00:10:39,920 Speaker 1: what Saudi Arabia was doing since about twenty thirteen, it 241 00:10:39,960 --> 00:10:43,680 Speaker 1: seems like, is when China announced their d dollarization efforts 242 00:10:44,120 --> 00:10:49,480 Speaker 1: and Russia followed, and that's only been accelerating. And so Max, 243 00:10:49,520 --> 00:10:52,080 Speaker 1: I know, big news this week was all over the 244 00:10:52,080 --> 00:10:54,960 Speaker 1: news everyone Now all these bricks nations are starting to 245 00:10:55,040 --> 00:10:58,400 Speaker 1: trade outside of the dollar. I mean, what's your take 246 00:10:58,440 --> 00:11:01,560 Speaker 1: on that. Well, it's a seductive idea and it's something 247 00:11:01,559 --> 00:11:05,320 Speaker 1: that people have latched onto across the media. Like you've mentioned, 248 00:11:05,600 --> 00:11:08,400 Speaker 1: you've seen a ton of headlines and certainly, you know, 249 00:11:08,400 --> 00:11:10,840 Speaker 1: the dollar is the king right now across the world, 250 00:11:10,840 --> 00:11:12,760 Speaker 1: and we can exert a lot of power. I mean, 251 00:11:12,760 --> 00:11:15,320 Speaker 1: we hit the jackpot with Breton Woods and being able 252 00:11:15,320 --> 00:11:18,640 Speaker 1: to you know, control the reserve currency of the world, 253 00:11:18,760 --> 00:11:20,480 Speaker 1: and then the petro dollar and the deal that we've 254 00:11:20,480 --> 00:11:23,160 Speaker 1: made with the Saudis, and then the fact that ninety 255 00:11:23,240 --> 00:11:25,320 Speaker 1: percent currently to this day, I know people are saying 256 00:11:25,320 --> 00:11:27,079 Speaker 1: it's dying, but ninety percent of the world's oil is 257 00:11:27,080 --> 00:11:30,120 Speaker 1: still traded in dollars, and so it gives us a 258 00:11:30,200 --> 00:11:33,360 Speaker 1: tremendous amount of power. And you've seen a lot of 259 00:11:33,360 --> 00:11:36,240 Speaker 1: countries really you realize basically that this has put them 260 00:11:36,280 --> 00:11:38,320 Speaker 1: in a situation where they're at a disadvantage. I mean, 261 00:11:38,320 --> 00:11:39,800 Speaker 1: they've known this for a while, but you've got a 262 00:11:39,800 --> 00:11:42,439 Speaker 1: lot of countries like China that is this kind of 263 00:11:42,520 --> 00:11:45,600 Speaker 1: upstart superpower that has, you know, ambitions. I don't think 264 00:11:45,600 --> 00:11:48,120 Speaker 1: anybody would question that they have the ambition to be 265 00:11:48,120 --> 00:11:50,560 Speaker 1: the world's number one superpower. And so, like you mentioned, 266 00:11:50,760 --> 00:11:54,640 Speaker 1: is twenty thirteen, they've been pushing back and trying to dedollarize. 267 00:11:54,720 --> 00:11:57,040 Speaker 1: It's been more difficult, I think than they've thought. We're 268 00:11:57,160 --> 00:12:00,439 Speaker 1: very interconnected. It's not just the energy trade, it's around 269 00:12:00,480 --> 00:12:03,880 Speaker 1: the world. The amount of liquidity, the amount of interchangeability 270 00:12:04,040 --> 00:12:08,400 Speaker 1: using dollars across all the different financial systems is very entrenched. 271 00:12:08,840 --> 00:12:12,200 Speaker 1: But you're seeing the bricks nations get together and there's 272 00:12:12,280 --> 00:12:15,440 Speaker 1: rumblings of you know, Saudi Arabia joining in them, you know, 273 00:12:15,520 --> 00:12:17,439 Speaker 1: saying hey, can we trade in think, you know, in 274 00:12:17,480 --> 00:12:19,480 Speaker 1: a currency other than the dollar, And you look around 275 00:12:19,480 --> 00:12:21,040 Speaker 1: and it's like, well, what can you do in China 276 00:12:21,080 --> 00:12:23,560 Speaker 1: would obviously want it to be the UN the Russians 277 00:12:23,559 --> 00:12:26,120 Speaker 1: with the ruble, and then it becomes okay, if we're 278 00:12:26,120 --> 00:12:27,960 Speaker 1: going to get off the dollar, then what, you know, 279 00:12:27,960 --> 00:12:30,680 Speaker 1: what are we actually going to trade in? And I 280 00:12:30,800 --> 00:12:32,600 Speaker 1: made the common end of threat I did recently on Twitter. 281 00:12:32,640 --> 00:12:34,120 Speaker 1: It's kind of like the devil you know versus the 282 00:12:34,120 --> 00:12:36,800 Speaker 1: devil you don't know. I tend to believe that those 283 00:12:36,840 --> 00:12:39,600 Speaker 1: countries trust each other less. If you can believe it, 284 00:12:39,600 --> 00:12:41,959 Speaker 1: then they trust the US. That might sound shocking to some, 285 00:12:42,160 --> 00:12:44,760 Speaker 1: but although they don't like the US, they may have 286 00:12:44,800 --> 00:12:47,160 Speaker 1: a common foe in the US in terms of an 287 00:12:47,160 --> 00:12:50,520 Speaker 1: economic foe. And even with this kind of a cold 288 00:12:50,600 --> 00:12:53,080 Speaker 1: or warm more that the US and NATO is in 289 00:12:53,160 --> 00:12:57,280 Speaker 1: with Russia in the Ukraine situation, I still think that 290 00:12:57,520 --> 00:13:00,600 Speaker 1: there's a lot of reasons why many countries probably wouldn't 291 00:13:00,600 --> 00:13:02,880 Speaker 1: want to completely pull out of the dollar, at least today. 292 00:13:02,920 --> 00:13:05,280 Speaker 1: Now that doesn't mean where there's smoke, there's not fire. 293 00:13:05,679 --> 00:13:08,800 Speaker 1: I think that these talks are absolutely happening. Countries are 294 00:13:08,800 --> 00:13:11,520 Speaker 1: looking at different ways to either price other commodities or 295 00:13:11,559 --> 00:13:13,480 Speaker 1: trade in different currencies. And I want to make a 296 00:13:13,480 --> 00:13:17,640 Speaker 1: distinction between trading in a different currency swapping you know, 297 00:13:17,760 --> 00:13:21,120 Speaker 1: energy for that currency, versus pricing it in that currency. 298 00:13:21,200 --> 00:13:24,200 Speaker 1: Like I think the dollar is still the dominant you 299 00:13:24,240 --> 00:13:26,120 Speaker 1: know thing that oil is being priced in, but there 300 00:13:26,200 --> 00:13:28,880 Speaker 1: are now instances where you know, the uand is being 301 00:13:28,880 --> 00:13:31,400 Speaker 1: traded for it, or the ruble. Russia is forcing people 302 00:13:31,400 --> 00:13:34,920 Speaker 1: to use the ruble. Ultimately, the uan isn't a very 303 00:13:34,960 --> 00:13:38,920 Speaker 1: liquid currency. They don't have the same you know, capital 304 00:13:38,920 --> 00:13:40,880 Speaker 1: markets in China like we do in the US. Now 305 00:13:40,920 --> 00:13:43,400 Speaker 1: I'm not saying that the FED doesn't mess with things 306 00:13:43,400 --> 00:13:47,160 Speaker 1: and control things, but it is at least more you 307 00:13:47,200 --> 00:13:51,640 Speaker 1: know of a capitalism system somewhat given the central uh 308 00:13:51,800 --> 00:13:54,840 Speaker 1: you know, central powers that control it than China would have. 309 00:13:54,920 --> 00:13:57,400 Speaker 1: And so it's something that is seems to be moving 310 00:13:57,400 --> 00:13:59,520 Speaker 1: in that direction. The bricks countries are about forty percent 311 00:13:59,520 --> 00:14:01,840 Speaker 1: of the world's population, so it's a huge block of 312 00:14:01,880 --> 00:14:04,560 Speaker 1: people and they're about you know, roughly fifteen twenty percent 313 00:14:04,559 --> 00:14:07,680 Speaker 1: of the world's GDP or economies, and so it's something 314 00:14:07,720 --> 00:14:09,640 Speaker 1: that the US is paying attention to. I think in 315 00:14:09,720 --> 00:14:13,280 Speaker 1: the in the near term, it's probably it's not likely 316 00:14:13,280 --> 00:14:17,600 Speaker 1: to happen barring some just massive, you know, geopolitical shift 317 00:14:17,640 --> 00:14:20,400 Speaker 1: like a you know, some kind of crazy war or 318 00:14:20,440 --> 00:14:23,200 Speaker 1: you know, hyperinflation or something along those lines. So it's 319 00:14:23,200 --> 00:14:25,200 Speaker 1: a really fun topic to talk about. In summary, I 320 00:14:25,200 --> 00:14:27,680 Speaker 1: think where there's smoke, there's fire. These trends are going on. 321 00:14:28,160 --> 00:14:31,680 Speaker 1: It may be premature to say that this is happening today, 322 00:14:31,720 --> 00:14:35,160 Speaker 1: but certainly there's many countries that wish that it would. Yeah, 323 00:14:35,240 --> 00:14:39,280 Speaker 1: I think the nuance is that it's not that it's 324 00:14:39,320 --> 00:14:41,960 Speaker 1: happening and it's not imminent, but it's the direction that 325 00:14:42,000 --> 00:14:44,720 Speaker 1: we're going. And I think that's the distinction. And so, 326 00:14:45,040 --> 00:14:46,800 Speaker 1: you know, I think to the point that you made, 327 00:14:46,800 --> 00:14:48,720 Speaker 1: I mean, the dollar is still probably the cleanest shirt 328 00:14:48,760 --> 00:14:51,040 Speaker 1: and the dirty laundry or whatever, as people like to say, 329 00:14:51,240 --> 00:14:52,960 Speaker 1: you know, it's still probably the most trusted. As much 330 00:14:52,960 --> 00:14:54,760 Speaker 1: as they don't trust the dollar, they don't trust China 331 00:14:54,800 --> 00:14:57,560 Speaker 1: even more, or each other more. So, there's there's a 332 00:14:57,560 --> 00:15:00,320 Speaker 1: lot of that. But and so this is certainly not imminent. Now. 333 00:15:00,520 --> 00:15:03,120 Speaker 1: I'm certainly one that loves to stoke the fire of 334 00:15:03,120 --> 00:15:05,160 Speaker 1: the death of the dollar. I've made plenty of videos 335 00:15:05,200 --> 00:15:08,320 Speaker 1: and tweets about it and so forth. But to your point, 336 00:15:08,400 --> 00:15:11,440 Speaker 1: it's not imminent. It's not like it's happening tomorrow. But 337 00:15:11,560 --> 00:15:14,680 Speaker 1: it's the direction. I put something on Twitter this week 338 00:15:14,720 --> 00:15:17,960 Speaker 1: and I said, the dollar's dead. Everyone's trading in yuan. 339 00:15:18,480 --> 00:15:21,120 Speaker 1: And I said, but only one point three percent of 340 00:15:21,160 --> 00:15:24,200 Speaker 1: global payments where in yuan in January, compared to forty 341 00:15:24,240 --> 00:15:28,040 Speaker 1: percent dollars, thirty eight percent, euros, seven percent, pounds, three 342 00:15:28,120 --> 00:15:31,440 Speaker 1: percent yen. And then we have one point three percent 343 00:15:31,520 --> 00:15:35,120 Speaker 1: in nuan. So while it's certainly happening, while it's certainly 344 00:15:35,120 --> 00:15:37,760 Speaker 1: a trend, it's not imminent. It's not like it's happening 345 00:15:37,840 --> 00:15:41,560 Speaker 1: right away. And I think this trend will continue and 346 00:15:41,720 --> 00:15:44,880 Speaker 1: maybe you start to see that diversification happen. But at 347 00:15:44,880 --> 00:15:47,000 Speaker 1: the same time, to your point, you know, do they 348 00:15:47,040 --> 00:15:49,720 Speaker 1: trust the US more than they trust other nations? And 349 00:15:50,000 --> 00:15:51,560 Speaker 1: the fact that is they probably do. There's you know, 350 00:15:51,600 --> 00:15:54,080 Speaker 1: the Lindy effect. The longer something's been a long around, 351 00:15:54,080 --> 00:15:56,280 Speaker 1: the longer the more likely it is to be around. 352 00:15:56,280 --> 00:15:58,760 Speaker 1: The problem is, you know what I see is that 353 00:15:58,840 --> 00:16:01,520 Speaker 1: you know it see was like the US really crossed 354 00:16:01,520 --> 00:16:06,320 Speaker 1: the rubicon, so to speak, when they seized Russia's bank accounts. Yeah, 355 00:16:06,360 --> 00:16:09,080 Speaker 1: and I think now it's like, well, we don't trust China, 356 00:16:09,200 --> 00:16:11,000 Speaker 1: we don't trust any of these other countries, but I 357 00:16:11,000 --> 00:16:13,080 Speaker 1: guess we trust the US. But now if it's like 358 00:16:13,080 --> 00:16:16,320 Speaker 1: a point where we don't trust the US either, And 359 00:16:16,360 --> 00:16:20,120 Speaker 1: so we have seen central banks have added more gold 360 00:16:20,160 --> 00:16:24,240 Speaker 1: than any time in history, So there's certainly I put 361 00:16:24,240 --> 00:16:26,040 Speaker 1: a chart up last week. I got it from blue 362 00:16:26,120 --> 00:16:29,479 Speaker 1: gramin where we see central bank holdings of US treasuries 363 00:16:29,640 --> 00:16:33,160 Speaker 1: trending down and US cl or central bank holdings of 364 00:16:33,200 --> 00:16:35,760 Speaker 1: gold trending up. So there is a trend like that 365 00:16:37,120 --> 00:16:39,960 Speaker 1: absolutely well. And I think that like people are trying 366 00:16:39,960 --> 00:16:43,680 Speaker 1: to diverse away, diversify away somewhat, especially countries like Russia. 367 00:16:43,680 --> 00:16:45,160 Speaker 1: I mean, it's a no brainer for them. They've been 368 00:16:45,200 --> 00:16:46,760 Speaker 1: planning this for a while, and you can look at 369 00:16:46,760 --> 00:16:49,200 Speaker 1: their reserves and see them kind of prepping for this. 370 00:16:49,240 --> 00:16:52,000 Speaker 1: There's a lot of warning signs for this Ukraine thing, 371 00:16:52,000 --> 00:16:54,000 Speaker 1: and it was surprising to cause many people off guard. 372 00:16:54,240 --> 00:16:56,560 Speaker 1: One thing that the US does have going for it 373 00:16:56,920 --> 00:16:59,080 Speaker 1: that will be hard to break when it comes to 374 00:16:59,200 --> 00:17:01,920 Speaker 1: reserve currencies to is that we still have the largest military. 375 00:17:02,280 --> 00:17:04,159 Speaker 1: I think we spend as much as the rest of 376 00:17:04,200 --> 00:17:06,800 Speaker 1: the world combined on our military. China's catching up, but 377 00:17:06,840 --> 00:17:08,960 Speaker 1: we still have the largest. We are the largest energy 378 00:17:09,000 --> 00:17:12,080 Speaker 1: producer for oil and gas in the world, and we 379 00:17:12,119 --> 00:17:15,680 Speaker 1: are one of the largest agriculture producers. I think we're third. 380 00:17:16,080 --> 00:17:19,760 Speaker 1: We are also probably number one in the world with technology. Again, 381 00:17:19,960 --> 00:17:23,320 Speaker 1: China wants to take Taiwan and they want to you know, 382 00:17:23,400 --> 00:17:25,960 Speaker 1: strangle that industry as well. We're doing some things to 383 00:17:26,000 --> 00:17:27,560 Speaker 1: onshore some of that, but we're still you know, you 384 00:17:27,600 --> 00:17:30,240 Speaker 1: got to say California and Silicon Valley still you know, 385 00:17:30,400 --> 00:17:33,199 Speaker 1: number one in tech. So we've got like the number 386 00:17:33,240 --> 00:17:36,680 Speaker 1: one or the top across a bunch of categories and 387 00:17:36,720 --> 00:17:39,200 Speaker 1: so and it's just like I don't know if you're 388 00:17:39,240 --> 00:17:42,000 Speaker 1: already Zehn's work about like the accidental superpower, Like the 389 00:17:42,119 --> 00:17:45,480 Speaker 1: US is just set up in a great position geographically. 390 00:17:45,720 --> 00:17:48,720 Speaker 1: Our population demographics are a lot better. They're not great, 391 00:17:48,760 --> 00:17:50,440 Speaker 1: but they're better than a lot of these other countries. 392 00:17:50,600 --> 00:17:52,600 Speaker 1: We've got a ton of stuff going for us, and 393 00:17:52,680 --> 00:17:57,879 Speaker 1: so it's like it's certain it's our salutes were like 394 00:17:57,880 --> 00:18:00,280 Speaker 1: I think you said, it's like we're the clean of 395 00:18:00,320 --> 00:18:03,120 Speaker 1: the dirtiest or wherever you put in. Yeah, it certainly 396 00:18:03,119 --> 00:18:06,240 Speaker 1: ours to lose. Unfortunately, I see the leaders doing everything 397 00:18:06,280 --> 00:18:07,960 Speaker 1: they can to lose it. I want to come back 398 00:18:08,000 --> 00:18:09,960 Speaker 1: and we're gonna talk about the shift in oil. We're 399 00:18:09,960 --> 00:18:12,840 Speaker 1: gonna talk about the shifting energy. If you're just tuning 400 00:18:12,880 --> 00:18:14,640 Speaker 1: in to listen to the Mark Moss Show, sitting down 401 00:18:14,640 --> 00:18:16,600 Speaker 1: with Max Gagley, already gonna take a quick break. I'll 402 00:18:16,600 --> 00:18:18,439 Speaker 1: be back in a minute. Don't go away, all right, 403 00:18:18,440 --> 00:18:20,199 Speaker 1: Welcome back. If you're just tuning in you're listening to 404 00:18:20,200 --> 00:18:23,040 Speaker 1: the Mark Moss Show. I'm talking with Max gagle already. 405 00:18:23,040 --> 00:18:25,600 Speaker 1: We're talking about energy, We're talking about currencies and so 406 00:18:25,640 --> 00:18:28,240 Speaker 1: many other things. You know, Um, we were talking about 407 00:18:28,240 --> 00:18:30,879 Speaker 1: before the break. You know, the trend and so the 408 00:18:32,119 --> 00:18:34,879 Speaker 1: death of the dollars seems to be greatly exaggerated, except 409 00:18:34,880 --> 00:18:37,439 Speaker 1: for that is the trend that we're going down. You know, 410 00:18:37,600 --> 00:18:40,679 Speaker 1: I want to talk for a minute just about energy 411 00:18:40,880 --> 00:18:44,760 Speaker 1: and really how this kind of relates into this energy transition. 412 00:18:45,320 --> 00:18:49,160 Speaker 1: And so you know, the United States and Europe basically 413 00:18:49,240 --> 00:18:53,880 Speaker 1: and Davos, it's like Obama Biden, euro Davos are like 414 00:18:54,119 --> 00:18:59,160 Speaker 1: completely bent on transitioning to this you know, green, renewable, 415 00:18:59,520 --> 00:19:03,200 Speaker 1: you know, stainable whatever they call it energy economy. And 416 00:19:03,320 --> 00:19:05,040 Speaker 1: you know, to the point that you were making before 417 00:19:05,040 --> 00:19:08,320 Speaker 1: the break and talking about the US, it's ours to lose, 418 00:19:08,359 --> 00:19:11,359 Speaker 1: so to speak, and that you know, we're God blessed 419 00:19:11,400 --> 00:19:13,080 Speaker 1: where we have the best arable land and we have 420 00:19:13,119 --> 00:19:16,720 Speaker 1: the best defenses, but we also have energy. Now China 421 00:19:16,760 --> 00:19:18,880 Speaker 1: doesn't have any energy. They have to import eighty five 422 00:19:18,880 --> 00:19:21,560 Speaker 1: percent of the energy, but the US has energy. Europe 423 00:19:21,560 --> 00:19:23,600 Speaker 1: also has energy. There's a lot of natural gas over 424 00:19:23,640 --> 00:19:28,560 Speaker 1: there as well, but the US and Europe don't want 425 00:19:28,560 --> 00:19:30,840 Speaker 1: to get it out of the ground. And it's sort 426 00:19:30,840 --> 00:19:33,159 Speaker 1: of interesting if you look at like, you know, so 427 00:19:33,200 --> 00:19:36,560 Speaker 1: we've depended on Saudi Arabia protecting the dollar with oil. 428 00:19:37,600 --> 00:19:39,880 Speaker 1: We could US could just get the oil. We were 429 00:19:39,920 --> 00:19:43,359 Speaker 1: the largest producing nation at one point. But now in 430 00:19:43,400 --> 00:19:45,880 Speaker 1: this green transition, it's almost like, well, let's just give 431 00:19:45,920 --> 00:19:49,840 Speaker 1: all the energy production to China, which doesn't have any energy, 432 00:19:50,200 --> 00:19:52,200 Speaker 1: but they produce like the solar panels, they produce the 433 00:19:52,200 --> 00:19:56,320 Speaker 1: windmills and things like that. So I'm curious about that. 434 00:19:56,320 --> 00:19:58,040 Speaker 1: That seems kind of interesting. And then the other thing 435 00:19:58,160 --> 00:20:00,879 Speaker 1: is so now we're kind of under attack from OPEC, 436 00:20:01,000 --> 00:20:05,440 Speaker 1: meaning the FED is trying to fight inflation, they're trying 437 00:20:05,440 --> 00:20:08,679 Speaker 1: to crush demand. But then OPEC, the oil producing nation, 438 00:20:08,840 --> 00:20:12,760 Speaker 1: said well, we'll just lower our production of oil, and 439 00:20:12,920 --> 00:20:16,760 Speaker 1: we can probably lower our production of oil faster than 440 00:20:16,800 --> 00:20:18,760 Speaker 1: you can crush demand. And let's let's see how that 441 00:20:18,800 --> 00:20:23,280 Speaker 1: works out. And what can the US do to protect 442 00:20:23,320 --> 00:20:26,000 Speaker 1: against that if we won't pump our own oil out 443 00:20:26,040 --> 00:20:29,520 Speaker 1: of the ground. Yeah. Well, the ESG stuff has been 444 00:20:29,520 --> 00:20:31,960 Speaker 1: fascinating something I've tracked a lot with a lot of 445 00:20:31,960 --> 00:20:34,679 Speaker 1: the podcast guests that I've had, and I think the 446 00:20:34,800 --> 00:20:37,280 Speaker 1: US is the number one energy producer in the world 447 00:20:37,440 --> 00:20:40,240 Speaker 1: and a lot of ways despite of ourselves. And I 448 00:20:40,280 --> 00:20:43,320 Speaker 1: think the key there is personal property rights and some 449 00:20:43,359 --> 00:20:45,840 Speaker 1: of the freedoms that we are guaranteed via our constitution 450 00:20:45,840 --> 00:20:47,280 Speaker 1: in the way this nation was set up. You know, 451 00:20:47,320 --> 00:20:49,359 Speaker 1: in the US, which is different from almost all the 452 00:20:49,359 --> 00:20:52,080 Speaker 1: rest of the world. Individual you know, people have the 453 00:20:52,160 --> 00:20:53,960 Speaker 1: rights to own the minerals in the ground, so it 454 00:20:53,960 --> 00:20:56,879 Speaker 1: can be owned by you know, landowners, farmers, people that 455 00:20:56,920 --> 00:21:00,239 Speaker 1: have had it in their family for generations, investor can 456 00:21:00,240 --> 00:21:02,560 Speaker 1: own the minerals. Companies things like that, and so we 457 00:21:02,680 --> 00:21:05,879 Speaker 1: have the ability to extract the resources and then the 458 00:21:06,480 --> 00:21:09,080 Speaker 1: royalty owner or mineral owner, whichever you want to call them, 459 00:21:09,200 --> 00:21:11,840 Speaker 1: they can then get the proceeds for that. Now, we 460 00:21:11,880 --> 00:21:13,960 Speaker 1: also have federal lands and we you know, we develop 461 00:21:14,040 --> 00:21:15,760 Speaker 1: oil and gas on that as well. But the rest 462 00:21:15,760 --> 00:21:17,920 Speaker 1: of the countries in the world, it's pretty much nationalized 463 00:21:17,920 --> 00:21:20,880 Speaker 1: and own by the government. And so in the US 464 00:21:20,920 --> 00:21:23,040 Speaker 1: we were able to foster an incredible amount of innovation 465 00:21:23,200 --> 00:21:25,280 Speaker 1: with the shale revolution. For those of you who don't know, 466 00:21:25,320 --> 00:21:27,879 Speaker 1: the last fifteen years we've unlocked just the tsunami of 467 00:21:27,920 --> 00:21:31,560 Speaker 1: new natural gas and oil, and we've really become the 468 00:21:31,600 --> 00:21:33,880 Speaker 1: dominant player in the world. And I think I would 469 00:21:33,880 --> 00:21:36,840 Speaker 1: attribute that mostly to these personal liberties and freedoms that 470 00:21:36,880 --> 00:21:39,200 Speaker 1: we have to own those minerals, which has then allowed 471 00:21:39,240 --> 00:21:42,879 Speaker 1: a lot of small entrepreneurial companies to create innovation and 472 00:21:42,920 --> 00:21:46,080 Speaker 1: to basically take the world by storm. Ope. And that's 473 00:21:46,960 --> 00:21:49,960 Speaker 1: that's despite our government not wanting it, or at least 474 00:21:49,960 --> 00:21:52,639 Speaker 1: half the government in terms of when the Democrats are 475 00:21:52,640 --> 00:21:55,200 Speaker 1: in power. And then you've got now this ESG movement, 476 00:21:55,240 --> 00:21:56,639 Speaker 1: which in a lot of ways has a lot of 477 00:21:56,640 --> 00:22:00,440 Speaker 1: collectivist undertones around Hey, you know, the world is ending. 478 00:22:00,760 --> 00:22:03,080 Speaker 1: I'm not sitting going to sit here in debate climate, 479 00:22:03,119 --> 00:22:05,560 Speaker 1: but I will say that the undertones are there's this 480 00:22:05,640 --> 00:22:08,680 Speaker 1: you know, catastrophic emergency coming and that you know, only 481 00:22:08,680 --> 00:22:11,760 Speaker 1: the government and these other technologies that wouldn't make sense 482 00:22:11,840 --> 00:22:15,600 Speaker 1: economically on their own, and I'm talking about renewables. They 483 00:22:15,640 --> 00:22:17,439 Speaker 1: would not make economic sense on their own. So now 484 00:22:17,480 --> 00:22:19,600 Speaker 1: they have to be subsidized, and we have to regulate 485 00:22:19,640 --> 00:22:22,560 Speaker 1: away oil and gas. And so back to what we're 486 00:22:22,560 --> 00:22:24,920 Speaker 1: talking about earlier with the bricks countries, these countries like 487 00:22:25,000 --> 00:22:28,000 Speaker 1: Opec or Russia, they're looking at this and they love it. 488 00:22:28,000 --> 00:22:30,919 Speaker 1: It's like, hey, yeah, stop this stop the US from 489 00:22:30,920 --> 00:22:32,720 Speaker 1: being the number one superpower. Well, a good way to 490 00:22:32,760 --> 00:22:34,800 Speaker 1: do that would be to stifle our energy production, our 491 00:22:34,920 --> 00:22:38,159 Speaker 1: energy innovation. And so Europe has done a great job 492 00:22:38,200 --> 00:22:41,119 Speaker 1: of killing that industry. For them, they do have oil 493 00:22:41,119 --> 00:22:43,400 Speaker 1: and gas, and outside of a few areas, they're really 494 00:22:43,440 --> 00:22:46,520 Speaker 1: not producing what they have. They've banned fracking, they've banned 495 00:22:46,560 --> 00:22:48,720 Speaker 1: a lot of the innovation that we've done, and they've 496 00:22:48,720 --> 00:22:50,960 Speaker 1: tried to lean in to these renewables and it's made 497 00:22:51,000 --> 00:22:53,560 Speaker 1: them less energy secure, which has made them depend on 498 00:22:53,600 --> 00:22:56,520 Speaker 1: countries like Russia, which has given Russia a ton of power. 499 00:22:56,840 --> 00:22:58,720 Speaker 1: And really one of the main reasons why I feel 500 00:22:58,720 --> 00:23:00,679 Speaker 1: like Russia felt like they could launch into the war 501 00:23:00,720 --> 00:23:03,760 Speaker 1: in Ukraine was because they had that power over Europe 502 00:23:03,800 --> 00:23:05,439 Speaker 1: given that they were supplying them with a lot of 503 00:23:05,440 --> 00:23:09,160 Speaker 1: their energy. And so OPEC now sees that this ESG 504 00:23:09,320 --> 00:23:12,359 Speaker 1: movement is taking hold, and it's not just ESG. I 505 00:23:12,400 --> 00:23:13,920 Speaker 1: will put a little blame on the oil and gas 506 00:23:13,960 --> 00:23:15,679 Speaker 1: companies too. In the US, we got so good at 507 00:23:15,720 --> 00:23:17,600 Speaker 1: producing it. We crashed the prices of the last ten 508 00:23:17,680 --> 00:23:20,440 Speaker 1: years because we produced too much, so the returns weren't 509 00:23:20,640 --> 00:23:24,600 Speaker 1: stellar also, but that was another convenient reason for investors 510 00:23:24,600 --> 00:23:27,240 Speaker 1: to leave. And so OPEX sees US now is less 511 00:23:27,240 --> 00:23:29,160 Speaker 1: of a threat in terms of market share because we're 512 00:23:29,160 --> 00:23:31,880 Speaker 1: not growing production like we once were because of these 513 00:23:31,920 --> 00:23:33,960 Speaker 1: capital constraints that are being put on by the black 514 00:23:34,040 --> 00:23:36,320 Speaker 1: rocks of the world trying to stop us from getting funding, 515 00:23:36,880 --> 00:23:39,919 Speaker 1: suppressing the stock prices of these companies. And therefore now 516 00:23:39,960 --> 00:23:42,000 Speaker 1: OPEX says, you know what, we can cut back production 517 00:23:42,240 --> 00:23:43,840 Speaker 1: and we can raise the price of it because we're 518 00:23:43,840 --> 00:23:46,439 Speaker 1: not scared of the US continuing to grow at the 519 00:23:46,440 --> 00:23:48,119 Speaker 1: pace that we've gone on so there's a lot of 520 00:23:48,160 --> 00:23:51,679 Speaker 1: nuance in all these topics. But ESG and OPEC and 521 00:23:51,800 --> 00:23:54,320 Speaker 1: power and geopolitics, it all plays in and it's just 522 00:23:54,359 --> 00:23:56,840 Speaker 1: a really fascinating space that we could talk about for 523 00:23:56,840 --> 00:23:59,760 Speaker 1: a long time. Do you think I mean in addition 524 00:23:59,800 --> 00:24:02,760 Speaker 1: to our own attack like the ESG and policies, things 525 00:24:02,760 --> 00:24:05,360 Speaker 1: like that Biden administration shutting down oil and gas leases, etc. 526 00:24:05,760 --> 00:24:07,879 Speaker 1: But on top of that, as the Fed continues to 527 00:24:08,000 --> 00:24:12,040 Speaker 1: raise rates at this breakneck speed, they're also putting capital 528 00:24:12,080 --> 00:24:14,680 Speaker 1: constraints on the oil and gas industry, which is very 529 00:24:14,680 --> 00:24:18,720 Speaker 1: capital intensive. So even if the Biden administration said Okay, 530 00:24:18,760 --> 00:24:20,600 Speaker 1: let's let's turn the spickets back on, let's get the 531 00:24:20,640 --> 00:24:22,800 Speaker 1: oil and gas out of the ground, there's still capital 532 00:24:22,840 --> 00:24:25,960 Speaker 1: constraints because of interest rates being so high. This is 533 00:24:26,000 --> 00:24:28,320 Speaker 1: like the paradox of rising interest rates. Like they rise 534 00:24:28,359 --> 00:24:30,560 Speaker 1: interest rates because if you're a hammer, everything looks like 535 00:24:30,600 --> 00:24:33,480 Speaker 1: a nail. They're trying to kill demand. But the key 536 00:24:33,600 --> 00:24:35,000 Speaker 1: when it comes to a lot of the things that 537 00:24:35,040 --> 00:24:37,520 Speaker 1: we need right Like you mentioned Luke Growman earlier, he 538 00:24:37,640 --> 00:24:40,840 Speaker 1: said before you can print dollars, but you can't print oil. Well, 539 00:24:40,880 --> 00:24:43,399 Speaker 1: the problem is we also need supply, so It's not 540 00:24:43,440 --> 00:24:46,280 Speaker 1: just a demand problem with inflation, it's a supply problem. 541 00:24:46,920 --> 00:24:49,439 Speaker 1: And whenever you raise rates and it makes capital, the 542 00:24:49,480 --> 00:24:53,520 Speaker 1: credit contracts, credit cycle contracts, it makes it harder for 543 00:24:53,600 --> 00:24:55,960 Speaker 1: people to get access to capital. Barr and Coster Higher 544 00:24:56,280 --> 00:24:58,520 Speaker 1: Service Coster or Higher. A lot of these service companies 545 00:24:58,560 --> 00:25:01,399 Speaker 1: that for example, provide drilling rigs or provide crews that 546 00:25:01,520 --> 00:25:03,280 Speaker 1: go out there and you know, pump these wells and 547 00:25:03,320 --> 00:25:06,960 Speaker 1: get them online. These guys are very tight cash cash 548 00:25:07,080 --> 00:25:10,040 Speaker 1: cycle businesses where they need lines of credit, they need 549 00:25:10,080 --> 00:25:12,480 Speaker 1: to hire people, they need to advance money, they have 550 00:25:12,560 --> 00:25:15,240 Speaker 1: to buy equipment, they have to buy things. They require 551 00:25:15,240 --> 00:25:17,520 Speaker 1: them to have credit. And as races go up, it 552 00:25:17,560 --> 00:25:20,400 Speaker 1: makes it harder for companies in these capital intensive businesses 553 00:25:20,640 --> 00:25:23,359 Speaker 1: businesses to grow supply, and so in some ways, even 554 00:25:23,400 --> 00:25:25,320 Speaker 1: though they're trying to stifle demand, it will have a 555 00:25:25,400 --> 00:25:28,960 Speaker 1: ripple effect on the supply side as well. Yeah, for sure, Yeah, 556 00:25:29,000 --> 00:25:30,840 Speaker 1: it certainly makes them harder. And then and then you 557 00:25:30,840 --> 00:25:33,679 Speaker 1: have the changing supply or price of the money. So 558 00:25:33,720 --> 00:25:36,520 Speaker 1: then it's like one. It obviously going up makes it harder, 559 00:25:36,560 --> 00:25:39,119 Speaker 1: but to not knowing where it's going to go creates 560 00:25:39,119 --> 00:25:41,480 Speaker 1: a big problem as well. And it really limits our 561 00:25:41,520 --> 00:25:44,560 Speaker 1: ability to change that. Another thing that I'm seeing happening 562 00:25:45,000 --> 00:25:48,440 Speaker 1: is kind of off of Zoltan Posar's thesis about this 563 00:25:48,520 --> 00:25:51,240 Speaker 1: kind of Breton Woods three type of a situation where 564 00:25:51,280 --> 00:25:54,040 Speaker 1: we kind of basically had a commodity money which was 565 00:25:54,280 --> 00:25:57,280 Speaker 1: gold and then a gold back currency. He argues in 566 00:25:57,359 --> 00:25:59,240 Speaker 1: nineteen seventy one, we got off gold stander went to 567 00:25:59,280 --> 00:26:01,320 Speaker 1: this kind of free flow in fiat currency he calls 568 00:26:01,359 --> 00:26:04,040 Speaker 1: inside money, and now we're going back into this commodity 569 00:26:04,240 --> 00:26:06,280 Speaker 1: money type of world. And so we kind of see 570 00:26:06,320 --> 00:26:09,160 Speaker 1: that central banks are buying more gold and trending gold 571 00:26:09,200 --> 00:26:13,480 Speaker 1: buying up and trending US treasuries down. But also he 572 00:26:13,640 --> 00:26:16,320 Speaker 1: argues that nations would want to hold their commodities in 573 00:26:16,359 --> 00:26:19,640 Speaker 1: the ground, and so some of this might be like 574 00:26:20,160 --> 00:26:22,000 Speaker 1: sort of that, right, which is like, well, why would 575 00:26:22,040 --> 00:26:23,600 Speaker 1: we continue to pump all this oil out of the 576 00:26:23,680 --> 00:26:27,479 Speaker 1: ground and put it into whatever fiet that's all basically 577 00:26:27,520 --> 00:26:29,720 Speaker 1: at the same risk versus why don't we just hold 578 00:26:29,720 --> 00:26:33,000 Speaker 1: the commodity in the ground. Yeah, I mean, and there's 579 00:26:33,000 --> 00:26:35,359 Speaker 1: an argument I've seen, not that I love all of 580 00:26:35,359 --> 00:26:37,919 Speaker 1: his takes, but I think I saw Charlie Munger speech 581 00:26:37,920 --> 00:26:39,560 Speaker 1: that he gave where he was saying he didn't want 582 00:26:39,640 --> 00:26:42,199 Speaker 1: us to produce our oil because he knows that he 583 00:26:42,240 --> 00:26:43,879 Speaker 1: has the reality to know that we're gonna need it 584 00:26:43,920 --> 00:26:45,399 Speaker 1: for a lot longer than people think that we're going 585 00:26:45,480 --> 00:26:47,199 Speaker 1: to need it, and he's like to the extent that 586 00:26:47,760 --> 00:26:50,240 Speaker 1: we don't need it today, He's like, we're basically this 587 00:26:50,320 --> 00:26:52,080 Speaker 1: is a power base for the US. So the more 588 00:26:52,160 --> 00:26:54,000 Speaker 1: that we produce, the more that we drill our best 589 00:26:54,040 --> 00:26:56,880 Speaker 1: inventory and the best rock that we have, that's less 590 00:26:56,920 --> 00:26:59,240 Speaker 1: resource we have to produce into the future. And you 591 00:26:59,280 --> 00:27:01,719 Speaker 1: mentioned the death of the dollar might be exaggerated, Well, 592 00:27:01,720 --> 00:27:03,639 Speaker 1: the death of oil and gas is certainly exaggerated. I 593 00:27:03,640 --> 00:27:06,119 Speaker 1: think peak oil demand is way off into the future. 594 00:27:06,720 --> 00:27:08,480 Speaker 1: There are billions of people that wish that they had 595 00:27:08,520 --> 00:27:10,439 Speaker 1: the lifestyles that we have, and they're not there yet 596 00:27:10,480 --> 00:27:12,239 Speaker 1: in terms of these other third world countries, and they 597 00:27:12,280 --> 00:27:14,840 Speaker 1: want to be there, and there is no silver bullet 598 00:27:15,280 --> 00:27:17,200 Speaker 1: to power all their stuff on solar panels. It's just 599 00:27:17,240 --> 00:27:20,000 Speaker 1: not going to happen in the near future. Nuclear power 600 00:27:20,080 --> 00:27:22,760 Speaker 1: does provide some hope for a future where we could 601 00:27:22,800 --> 00:27:25,639 Speaker 1: have a lower carbon, more abundant energy, but that's not 602 00:27:25,720 --> 00:27:27,720 Speaker 1: taking off either. In fact that industry is shrinking in 603 00:27:27,720 --> 00:27:29,920 Speaker 1: a lot of ways, so we're gonna need these products. 604 00:27:29,960 --> 00:27:32,840 Speaker 1: And if you're OPEC, it's the same dynamic. You've got 605 00:27:32,880 --> 00:27:35,199 Speaker 1: a lot of power. Saudi Arabian knows that their reserves 606 00:27:35,240 --> 00:27:38,960 Speaker 1: aren't unlimited. Opex had issues raising their production to meet 607 00:27:38,960 --> 00:27:42,280 Speaker 1: the quotas. Yeah, man, so much did they get into. 608 00:27:42,520 --> 00:27:44,199 Speaker 1: If you're just tune in, you're listening to the markmas 609 00:27:44,240 --> 00:27:47,600 Speaker 1: Show and joined with Max Gagliardi. Hopefully this is enough 610 00:27:47,640 --> 00:27:51,879 Speaker 1: information to spur your further curiosity and go do some 611 00:27:51,920 --> 00:27:54,440 Speaker 1: research on these topics. They're super important. I want to 612 00:27:54,440 --> 00:27:55,639 Speaker 1: take a quick break. I'll be back with more in 613 00:27:55,680 --> 00:28:00,239 Speaker 1: a minute. Don't go away, I'll be right back. All right, 614 00:28:00,240 --> 00:28:01,639 Speaker 1: Welcome back. If you're just tuned in, you're listening to 615 00:28:01,720 --> 00:28:04,800 Speaker 1: the Mark Moss Show. Boy, what a conversation we just had. 616 00:28:04,800 --> 00:28:06,400 Speaker 1: If you're just tuned in, we were just talking with 617 00:28:06,520 --> 00:28:09,439 Speaker 1: Max Gagliardi, kind of framing up the way that the 618 00:28:09,480 --> 00:28:12,679 Speaker 1: world is changing, the death of the dollar, what's happening 619 00:28:12,680 --> 00:28:14,399 Speaker 1: with OPEC, and so many other things. You know. But 620 00:28:14,440 --> 00:28:17,040 Speaker 1: I want to just kind of bring it back and 621 00:28:17,119 --> 00:28:20,440 Speaker 1: kind of think about it, like what does it mean? 622 00:28:21,240 --> 00:28:23,320 Speaker 1: Like you see this all over the news. Like I said, 623 00:28:23,320 --> 00:28:26,479 Speaker 1: it got, CNN's talking about it, Tucker Carlson's talking about it, 624 00:28:28,000 --> 00:28:29,639 Speaker 1: the death of the dollar? Is it? Is it happening? 625 00:28:29,720 --> 00:28:32,960 Speaker 1: Is it exaggerated? You know? OPEC now Saudi Arabia doesn't 626 00:28:32,960 --> 00:28:34,720 Speaker 1: want to work with the United States anymore. What does 627 00:28:34,880 --> 00:28:38,240 Speaker 1: all of this mean? Why do you care? What's going 628 00:28:38,240 --> 00:28:42,000 Speaker 1: to happen? Well, let's talk about that so ultimately. As 629 00:28:42,040 --> 00:28:43,600 Speaker 1: I kind of was alluding to, if you, if you 630 00:28:43,600 --> 00:28:45,680 Speaker 1: were in the beginning of the conversation I have with Max, 631 00:28:45,800 --> 00:28:48,200 Speaker 1: if you kind of understand the way that history works 632 00:28:48,400 --> 00:28:51,440 Speaker 1: is that money is just a medium of exchange. It 633 00:28:51,440 --> 00:28:54,240 Speaker 1: doesn't really mean anything. And I know this might sounds 634 00:28:54,320 --> 00:28:58,360 Speaker 1: shocking to you, but none of us actually want money. 635 00:29:00,240 --> 00:29:01,720 Speaker 1: What are you talking about, Mark, I want of money, 636 00:29:01,760 --> 00:29:03,760 Speaker 1: as I can get you don't actually want money. What 637 00:29:03,920 --> 00:29:06,920 Speaker 1: you want is the things that money will buy you. 638 00:29:07,280 --> 00:29:09,480 Speaker 1: So you want the bigger house, you want the new car, 639 00:29:09,760 --> 00:29:11,320 Speaker 1: you want to take your family on a vacation, you 640 00:29:11,320 --> 00:29:13,200 Speaker 1: want to retire one day. Well, those are the things 641 00:29:13,240 --> 00:29:16,040 Speaker 1: that money will buy you, right, And the reason why 642 00:29:16,040 --> 00:29:18,600 Speaker 1: it's important to understand that distinction is because money is 643 00:29:18,600 --> 00:29:22,760 Speaker 1: a medium of exchange. It just allows us to get 644 00:29:22,840 --> 00:29:26,200 Speaker 1: those things the house, to car, etc. And it's important 645 00:29:26,200 --> 00:29:29,479 Speaker 1: to understand the distinction because since we don't want money, 646 00:29:29,960 --> 00:29:34,280 Speaker 1: we don't care what we use as money. Well, the 647 00:29:34,280 --> 00:29:37,280 Speaker 1: only reason we care about what we use as money 648 00:29:37,600 --> 00:29:41,640 Speaker 1: is because we wanted to reliably store that value. We 649 00:29:41,680 --> 00:29:44,120 Speaker 1: want to be able to take my labor from today 650 00:29:44,120 --> 00:29:46,719 Speaker 1: and park it in money and then go buy the 651 00:29:46,800 --> 00:29:49,680 Speaker 1: things I want later. And so I wouldn't want to 652 00:29:49,680 --> 00:29:52,000 Speaker 1: put it in whatever form of money, and then it 653 00:29:52,040 --> 00:29:55,320 Speaker 1: wouldn't hold its value, wouldn't buy stuff later. So like 654 00:29:55,680 --> 00:29:58,920 Speaker 1: famous examples of Wimar Republic Germany, they were going through 655 00:29:59,000 --> 00:30:03,960 Speaker 1: hyper inflation and people employees were literally getting paid multiple 656 00:30:04,040 --> 00:30:07,880 Speaker 1: times per day because their money, which was the German 657 00:30:07,920 --> 00:30:10,400 Speaker 1: marker at the time, their money, the German mark, was 658 00:30:10,440 --> 00:30:13,200 Speaker 1: losing value so fast that if they didn't go buy 659 00:30:13,240 --> 00:30:17,040 Speaker 1: the supplies they needed at that time, then they would 660 00:30:17,080 --> 00:30:20,160 Speaker 1: not get as many supplies, and so eventually they got 661 00:30:20,160 --> 00:30:22,080 Speaker 1: off of that. People would move to gold, etc. And 662 00:30:22,120 --> 00:30:24,840 Speaker 1: so you don't really care if you're using a German mark, 663 00:30:24,880 --> 00:30:26,800 Speaker 1: you don't care. If you're using gold, you don't care. 664 00:30:26,800 --> 00:30:29,120 Speaker 1: If you're using a euro, yen a dollar, what you 665 00:30:29,160 --> 00:30:34,000 Speaker 1: do care about is will it reliably hold my money? Now, 666 00:30:34,480 --> 00:30:37,360 Speaker 1: what's made the dollar to be such a strong currency, 667 00:30:37,360 --> 00:30:40,520 Speaker 1: as Max was alluding to, is that it was backed 668 00:30:40,520 --> 00:30:43,360 Speaker 1: by gold, and so we knew that any given time 669 00:30:43,600 --> 00:30:46,840 Speaker 1: you could always go redeem thirty five dollars for one 670 00:30:46,920 --> 00:30:49,400 Speaker 1: ounce of gold. So it was always redeemable thirty five 671 00:30:49,440 --> 00:30:52,040 Speaker 1: ounces of gold. The problem is is when we got 672 00:30:52,040 --> 00:30:53,719 Speaker 1: off the gold there in the nineteen seventy one, there 673 00:30:53,760 --> 00:30:55,160 Speaker 1: was nothing back in it, and so we went into 674 00:30:55,160 --> 00:30:58,840 Speaker 1: the petro dollar, and then all the dollars demand were 675 00:30:58,920 --> 00:31:02,200 Speaker 1: around the fact at all oil was priced in dollars, 676 00:31:02,200 --> 00:31:05,040 Speaker 1: and so if you want an energy, which without energy 677 00:31:05,080 --> 00:31:07,160 Speaker 1: you die, so of course you want energy, you had 678 00:31:07,200 --> 00:31:10,080 Speaker 1: to pay with dollars. There was this demand. The problem 679 00:31:10,200 --> 00:31:13,240 Speaker 1: is now is if that demand goes away, which Saudi 680 00:31:13,240 --> 00:31:15,280 Speaker 1: Arabia says it's going to sell oil outside of the 681 00:31:15,360 --> 00:31:17,920 Speaker 1: US dollar, Saudi Arabia doesn't care what the United States 682 00:31:17,920 --> 00:31:20,920 Speaker 1: thinks anymore, which is a big shift. So then what happens. 683 00:31:21,240 --> 00:31:24,400 Speaker 1: Why do you care about this, Well, ultimately you care 684 00:31:24,560 --> 00:31:27,000 Speaker 1: because if you live in the United States, if you're 685 00:31:27,000 --> 00:31:28,640 Speaker 1: listening to this on radio right now, and you live 686 00:31:28,640 --> 00:31:31,720 Speaker 1: in the United States, or if you use the dollar, 687 00:31:32,120 --> 00:31:35,600 Speaker 1: the dollar has managed to maintains. It's a place in 688 00:31:35,640 --> 00:31:38,640 Speaker 1: the world which gives the dollar holders or the dollar 689 00:31:38,840 --> 00:31:45,040 Speaker 1: users massive, massive advantages. It's why the United States has 690 00:31:45,040 --> 00:31:48,080 Speaker 1: grown so prospers. It's why life in the United States 691 00:31:48,200 --> 00:31:52,480 Speaker 1: is so good compared to most third world countries. It's 692 00:31:52,560 --> 00:31:55,960 Speaker 1: because we can produce the dollar very cheap. It's something 693 00:31:56,000 --> 00:31:59,440 Speaker 1: known as the Cantillion effect Cantilon effect. Basically, the Cantilon 694 00:31:59,440 --> 00:32:02,520 Speaker 1: effect says whoever is closest to the money supply gets 695 00:32:02,520 --> 00:32:05,360 Speaker 1: the biggest benefit. And so it costs the United States 696 00:32:05,360 --> 00:32:10,160 Speaker 1: government about seventeen cents to produce a dollar, but another 697 00:32:10,240 --> 00:32:14,720 Speaker 1: nation has to produce a hundred dollars worth of goods 698 00:32:15,240 --> 00:32:18,080 Speaker 1: in order to get the one hundred dollar pill, and 699 00:32:18,120 --> 00:32:21,840 Speaker 1: so it has a massive, enormous benefits to people in 700 00:32:21,880 --> 00:32:24,920 Speaker 1: the United States were closest to the money spigot, closest 701 00:32:24,960 --> 00:32:28,400 Speaker 1: to the money supply, and then those higher prices that 702 00:32:28,480 --> 00:32:31,000 Speaker 1: get created by creating some of the extra dollars get 703 00:32:31,080 --> 00:32:33,480 Speaker 1: pushed down to these third world countries, which is why 704 00:32:33,520 --> 00:32:36,720 Speaker 1: you see Turkey and Lebanon and Argentina and Venezuela all 705 00:32:36,800 --> 00:32:41,080 Speaker 1: seen record amounts of inflation, we push that inflation down. 706 00:32:41,240 --> 00:32:44,440 Speaker 1: So if the United States were to lose that position 707 00:32:44,760 --> 00:32:48,280 Speaker 1: of power over creating money, over the cancel on effect, 708 00:32:48,640 --> 00:32:51,520 Speaker 1: then the United States and all of us, including myself, 709 00:32:51,520 --> 00:32:54,240 Speaker 1: who live on a US dollar, would lose those benefits 710 00:32:55,400 --> 00:32:58,400 Speaker 1: and we'd be back to maybe something like living in 711 00:32:58,400 --> 00:33:02,000 Speaker 1: a thord world country. The dollar would see massive inflation, 712 00:33:02,320 --> 00:33:06,200 Speaker 1: meaning prices would spiral out of control. Now. I had 713 00:33:06,200 --> 00:33:08,320 Speaker 1: a friend reach out to me this last week and said, Mark, 714 00:33:08,360 --> 00:33:10,880 Speaker 1: I'm seeing these headlines all over the news saying that 715 00:33:10,920 --> 00:33:15,280 Speaker 1: the dollars, you know, beating the dollars, losing its status, 716 00:33:15,640 --> 00:33:17,680 Speaker 1: nations are starting to trade outside of the dollar, all 717 00:33:17,720 --> 00:33:21,600 Speaker 1: these things, And I said, okay, He's like, but I'm worried. 718 00:33:21,640 --> 00:33:23,160 Speaker 1: What am I going to do? I said, what are 719 00:33:23,200 --> 00:33:25,720 Speaker 1: you worried about? He said, well, I'm worried that I'm 720 00:33:25,760 --> 00:33:27,360 Speaker 1: gonna wake up one day and all the money in 721 00:33:27,360 --> 00:33:30,120 Speaker 1: my bank account's gonna buy me half as many goods 722 00:33:30,120 --> 00:33:32,959 Speaker 1: and services as it does right now. And I said, well, 723 00:33:33,440 --> 00:33:36,720 Speaker 1: that's a valid concern, but I said that's already happened. 724 00:33:38,040 --> 00:33:39,640 Speaker 1: It's like, what do you mean and that's already happened. 725 00:33:39,680 --> 00:33:42,880 Speaker 1: I said, well, how much is your house worth right now? 726 00:33:43,000 --> 00:33:45,320 Speaker 1: He said about four million dollars. I said, how much 727 00:33:45,400 --> 00:33:48,600 Speaker 1: was it worth five years ago? He said one point seven. 728 00:33:49,400 --> 00:33:52,160 Speaker 1: I said, so your dollar buys you less than half 729 00:33:52,320 --> 00:33:54,520 Speaker 1: as meant as many houses as it would have five 730 00:33:54,600 --> 00:33:56,920 Speaker 1: years ago. As a matter of fact, since January of 731 00:33:56,960 --> 00:34:02,160 Speaker 1: twenty nineteen, four years ago, basically a little over four 732 00:34:02,240 --> 00:34:05,920 Speaker 1: years ago January twenty nineteen, the dollar has lost sixty 733 00:34:06,000 --> 00:34:09,440 Speaker 1: percent of its value purchasing power to the S and 734 00:34:09,480 --> 00:34:13,160 Speaker 1: P five hundred. It's lost seventy seven percent of its 735 00:34:13,160 --> 00:34:17,520 Speaker 1: purchasing power to bitcoin. It's lost fifty one percent of 736 00:34:17,560 --> 00:34:22,560 Speaker 1: its purchasing power to the median US real estate. It's 737 00:34:22,600 --> 00:34:26,400 Speaker 1: lost about sixty percent of its purchasing power to gasoline. 738 00:34:27,160 --> 00:34:29,640 Speaker 1: So his greatest fear is that he'd wake up one 739 00:34:29,680 --> 00:34:31,680 Speaker 1: day and his dollars would buy him half as many 740 00:34:31,760 --> 00:34:34,480 Speaker 1: goods as they do today. I said, it's already realized. 741 00:34:34,520 --> 00:34:37,520 Speaker 1: The dollar already buys you half as many goods today 742 00:34:37,520 --> 00:34:41,160 Speaker 1: as it did just four years ago. And so this 743 00:34:41,239 --> 00:34:45,360 Speaker 1: will only continue. But the problem is if we continue 744 00:34:45,400 --> 00:34:48,640 Speaker 1: to see the dollar lose its grip on the reserve 745 00:34:48,680 --> 00:34:52,280 Speaker 1: currency status, meaning Saudi Arabic continues to sell oil outside 746 00:34:52,280 --> 00:34:56,160 Speaker 1: the dollar nations start de dollarizing as they've already been doing, 747 00:34:56,440 --> 00:34:59,520 Speaker 1: then that inflation will only get worse, and it will 748 00:34:59,520 --> 00:35:02,359 Speaker 1: get worse at a faster rate. Now, like I said, 749 00:35:02,400 --> 00:35:05,480 Speaker 1: he didn't understand and most people listening maybe don't understand this, 750 00:35:05,640 --> 00:35:08,440 Speaker 1: that the Todler's already lost fifty percent of its purchasing 751 00:35:08,480 --> 00:35:10,399 Speaker 1: power just in the last four years or more. Depend 752 00:35:10,440 --> 00:35:12,759 Speaker 1: on what asset you're comparing it to. Now, not all 753 00:35:12,840 --> 00:35:16,480 Speaker 1: assets are evenly distributed. The more scarce the asset, the 754 00:35:16,600 --> 00:35:19,239 Speaker 1: more in demand the asset, the more it goes up. 755 00:35:19,280 --> 00:35:21,759 Speaker 1: So for example, his house went from one point seven 756 00:35:21,800 --> 00:35:24,000 Speaker 1: million to four million in a couple of years because 757 00:35:24,000 --> 00:35:27,359 Speaker 1: he lives by the beach, so beach waterfront property are 758 00:35:27,480 --> 00:35:29,839 Speaker 1: very scarce. Those are what we'd call trophy assets. They 759 00:35:29,880 --> 00:35:32,319 Speaker 1: go up more than a house in the Midwest, like 760 00:35:32,400 --> 00:35:36,759 Speaker 1: in Kansas or Missouri would go up. Homes across the 761 00:35:36,880 --> 00:35:39,400 Speaker 1: lake front are going to go up faster than homes 762 00:35:39,400 --> 00:35:41,479 Speaker 1: an hour from the lake, because there's only so many 763 00:35:41,520 --> 00:35:43,400 Speaker 1: homes in a lake. It's also why we see it 764 00:35:43,440 --> 00:35:46,839 Speaker 1: a scarce asset like bitcoin going up faster. Bitcoins up 765 00:35:46,840 --> 00:35:50,080 Speaker 1: seventy seven percent in the last four years, while real 766 00:35:50,200 --> 00:35:54,919 Speaker 1: estates only up fifty percent, for example. But anyway, if 767 00:35:54,960 --> 00:35:57,080 Speaker 1: we continue to see this trend, which I believe we will, 768 00:35:57,440 --> 00:36:00,160 Speaker 1: we're going to continue to see inflation raging on. It's 769 00:36:00,160 --> 00:36:01,880 Speaker 1: one of the reasons why, as I said, bitcoins up 770 00:36:01,920 --> 00:36:05,360 Speaker 1: seventy seven percent, and gold has also broken out to 771 00:36:05,880 --> 00:36:07,840 Speaker 1: almost a new all time I broke that two thousand 772 00:36:07,840 --> 00:36:10,720 Speaker 1: dollars level. It's pretty much there. A couple more dollars 773 00:36:10,760 --> 00:36:12,440 Speaker 1: and we're going to be off to the races with gold. 774 00:36:12,440 --> 00:36:14,960 Speaker 1: And the reason why is because it sees all of 775 00:36:14,960 --> 00:36:20,200 Speaker 1: this happening. And as I said before, I believe success 776 00:36:20,280 --> 00:36:22,400 Speaker 1: these clues. You find the most successful people. What you 777 00:36:22,400 --> 00:36:23,880 Speaker 1: do about the same things that they're doing, and you 778 00:36:23,920 --> 00:36:25,440 Speaker 1: should have about the same results. So who are the 779 00:36:25,440 --> 00:36:29,000 Speaker 1: most successful people. Well, the central bankers certainly know what's 780 00:36:29,040 --> 00:36:32,920 Speaker 1: going on. They're the ones that set the policy, so 781 00:36:33,400 --> 00:36:36,840 Speaker 1: I look to them. If they're starting to hold less 782 00:36:36,960 --> 00:36:41,520 Speaker 1: dollars and hold more hard assets, then I want to 783 00:36:41,520 --> 00:36:46,440 Speaker 1: hold less dollars and I want to hold more hard assets. Particularly, 784 00:36:46,520 --> 00:36:48,680 Speaker 1: I want to hold hard assets that are outside the 785 00:36:48,719 --> 00:36:52,120 Speaker 1: control of the government and the central banks. That would 786 00:36:52,120 --> 00:36:54,600 Speaker 1: be bitcoin, that would be gold, it would be those 787 00:36:54,600 --> 00:36:59,880 Speaker 1: types of assets. Hopefully that makes sense. Hopefully this brings 788 00:37:00,040 --> 00:37:02,399 Speaker 1: some perspective as to what's going on. Like I said, 789 00:37:02,400 --> 00:37:03,960 Speaker 1: it's one thing to be scared and concerned, which you 790 00:37:03,960 --> 00:37:06,160 Speaker 1: should be, you should be paying attention, But more importantly, 791 00:37:06,160 --> 00:37:07,759 Speaker 1: what does it mean to you? And that's what it means. 792 00:37:07,840 --> 00:37:09,319 Speaker 1: If you're just tuning in you're listening to the Mark 793 00:37:09,400 --> 00:37:11,680 Speaker 1: Moss Show. Of course, we talk about the decentralized revolution. 794 00:37:11,760 --> 00:37:13,880 Speaker 1: We talk about the way the world is breaking up 795 00:37:13,920 --> 00:37:18,880 Speaker 1: from a centrally planned, a globally coordinated economy to a 796 00:37:18,960 --> 00:37:21,879 Speaker 1: decentralized world, which is exactly what's happening. And going from 797 00:37:21,880 --> 00:37:24,440 Speaker 1: a centralized money where the dollars the reserve currency status 798 00:37:24,480 --> 00:37:27,440 Speaker 1: of the world, to a decentralized money standard where everybody 799 00:37:27,520 --> 00:37:29,879 Speaker 1: kind of uses different things. Anyway, that's what we got 800 00:37:29,920 --> 00:37:32,280 Speaker 1: for today. Hopefully enjoyed it. Thanks for listening.