1 00:00:00,360 --> 00:00:02,320 Speaker 1: A reverse market crash. 2 00:00:02,520 --> 00:00:05,800 Speaker 2: This is the worst possible economic outcome that we could 3 00:00:05,840 --> 00:00:10,039 Speaker 2: potentially have, now, a reverse market crash. What does that mean? 4 00:00:10,520 --> 00:00:13,720 Speaker 2: Why is it the worst possible outcome? You see, markets 5 00:00:13,720 --> 00:00:17,360 Speaker 2: can crash two ways. Well, everyone's expecting for a deflationary 6 00:00:17,400 --> 00:00:21,000 Speaker 2: a bust. There's also an inflationary crash. One of them 7 00:00:21,239 --> 00:00:23,880 Speaker 2: resets the markets, making it easier for people to eventually 8 00:00:23,920 --> 00:00:27,520 Speaker 2: jump back in the other just leaves the majority further behind. 9 00:00:27,800 --> 00:00:30,200 Speaker 1: But don't worry. I got you. So let's look at both. 10 00:00:30,480 --> 00:00:32,320 Speaker 2: If you're just tuning in, you're listening to the Mark 11 00:00:32,400 --> 00:00:37,159 Speaker 2: Mass show breaking down complex economic and freedom topics so 12 00:00:37,240 --> 00:00:39,800 Speaker 2: you can understand them and more importantly, you can take 13 00:00:39,920 --> 00:00:42,720 Speaker 2: action to prepare for yourself for what's coming. 14 00:00:42,760 --> 00:00:43,559 Speaker 1: All right, so we're going to. 15 00:00:43,600 --> 00:00:47,520 Speaker 2: Talk about this, the two types of crashes that can happen, 16 00:00:47,720 --> 00:00:50,000 Speaker 2: what they look like, how you can understand them. We're 17 00:00:50,000 --> 00:00:52,680 Speaker 2: going to use historical examples of both so you can 18 00:00:52,760 --> 00:00:56,440 Speaker 2: understand from history exactly what they look like, what to expect. 19 00:00:56,520 --> 00:00:59,440 Speaker 2: We're going to look at the numbers, the charts, the data, etc. 20 00:01:00,040 --> 00:01:00,760 Speaker 1: We're gonna give. 21 00:01:00,600 --> 00:01:03,840 Speaker 2: You, like I said, examples of both types of crashes, 22 00:01:03,880 --> 00:01:06,720 Speaker 2: and then I'm gonna give you practical tips of what 23 00:01:06,920 --> 00:01:10,240 Speaker 2: you can do to prepare yourself, and not just prepare yourself, 24 00:01:10,640 --> 00:01:15,120 Speaker 2: not defensively, but prepare to take advantage of what's coming. 25 00:01:15,160 --> 00:01:15,360 Speaker 1: Now. 26 00:01:16,000 --> 00:01:19,080 Speaker 2: I'm going to compare this against common information that you 27 00:01:19,160 --> 00:01:22,279 Speaker 2: might find in chat, GPT or by watching your favorite 28 00:01:22,280 --> 00:01:25,960 Speaker 2: person on the internet, like Dave Ramsey or something like that. 29 00:01:26,160 --> 00:01:28,440 Speaker 2: But I'm gonna give you a completely different way to 30 00:01:28,440 --> 00:01:30,960 Speaker 2: think about this. So you can not just be prepared 31 00:01:31,000 --> 00:01:33,120 Speaker 2: as in going to living in a bunker on a hill, 32 00:01:33,280 --> 00:01:36,080 Speaker 2: but actually getting ahead like Warren Buffett talks about, or 33 00:01:36,200 --> 00:01:39,720 Speaker 2: Rothschild talks about, by buying when there's blood in the streets. 34 00:01:39,760 --> 00:01:41,480 Speaker 2: All right, So we're going to cover all of this. 35 00:01:42,280 --> 00:01:43,000 Speaker 1: It's a big show. 36 00:01:43,040 --> 00:01:44,840 Speaker 2: I got a lot to cover. You do not want 37 00:01:44,840 --> 00:01:46,840 Speaker 2: to miss this. If you do, if you have to 38 00:01:46,880 --> 00:01:49,800 Speaker 2: tune away, make sure to check me out on the podcast. 39 00:01:49,880 --> 00:01:52,280 Speaker 2: Just search Mark Mass Show on any of your favorite 40 00:01:52,280 --> 00:01:54,440 Speaker 2: podcast players. And while you're at it, would you. 41 00:01:54,480 --> 00:01:55,600 Speaker 1: Leave me a review. 42 00:01:55,800 --> 00:01:57,600 Speaker 2: If you could leave me a review, I would greatly 43 00:01:57,640 --> 00:02:00,880 Speaker 2: appreciate it. Mean the world help by the people find it. Also, 44 00:02:00,960 --> 00:02:03,040 Speaker 2: you can watch me and listen to me on YouTube. 45 00:02:03,120 --> 00:02:05,720 Speaker 2: Just search market disruptors over there, all right, So let's 46 00:02:05,720 --> 00:02:08,320 Speaker 2: talk about first of all, sort of to set this stage. 47 00:02:09,040 --> 00:02:12,120 Speaker 2: There's a saying that says generals always fight the last war, 48 00:02:12,600 --> 00:02:14,920 Speaker 2: and so what that means is that, hey, last time, 49 00:02:15,040 --> 00:02:17,200 Speaker 2: this is what happens. So let's make sure that that 50 00:02:17,240 --> 00:02:19,280 Speaker 2: doesn't happen again, which, of course is good. 51 00:02:19,480 --> 00:02:20,520 Speaker 1: We should certainly do that. 52 00:02:20,919 --> 00:02:22,560 Speaker 2: When I was a kid growing up, my dad told 53 00:02:22,600 --> 00:02:25,440 Speaker 2: me many times over and over that once is an accident, 54 00:02:25,919 --> 00:02:28,720 Speaker 2: twice is stupid. So that means that we don't want 55 00:02:28,800 --> 00:02:31,160 Speaker 2: to make this same mistake twice. Now, making the same 56 00:02:31,160 --> 00:02:35,040 Speaker 2: mistake twice is stupid. And actually, the sign of intelligence 57 00:02:35,160 --> 00:02:38,960 Speaker 2: isn't how much information or knowledge you have. The sign 58 00:02:38,960 --> 00:02:41,880 Speaker 2: of intelligence is how fast you can learn. I don't 59 00:02:41,880 --> 00:02:43,440 Speaker 2: think my dad realized that when he told me that 60 00:02:43,560 --> 00:02:46,359 Speaker 2: quote over and over, but he's right. If you make 61 00:02:46,400 --> 00:02:48,799 Speaker 2: the same mistake over and over, it's stupid. Because intelligence 62 00:02:48,840 --> 00:02:52,640 Speaker 2: people learn. So we want to learn from every situation. 63 00:02:52,880 --> 00:02:55,880 Speaker 2: There's the quote that says, I never lose, I either 64 00:02:55,960 --> 00:02:58,560 Speaker 2: win or I learn. Well, we want to learn from everything. 65 00:02:58,639 --> 00:03:00,680 Speaker 2: We want to win or learn from our wins. We 66 00:03:00,720 --> 00:03:04,040 Speaker 2: want to obviously learn from our losses as a matter 67 00:03:04,080 --> 00:03:07,000 Speaker 2: of fact, whenever I have losses, I make sure that 68 00:03:07,080 --> 00:03:09,120 Speaker 2: I learned because I don't want that loss to be 69 00:03:09,200 --> 00:03:12,000 Speaker 2: for nothing. So certainly, whatever happened last time, we want 70 00:03:12,000 --> 00:03:13,720 Speaker 2: to be prepared for that so it doesn't happen again. 71 00:03:13,800 --> 00:03:17,040 Speaker 2: But generals fight in the last war doesn't mean that 72 00:03:17,120 --> 00:03:20,240 Speaker 2: the same attack vector will be there. And so let 73 00:03:20,280 --> 00:03:22,800 Speaker 2: me give you some practical examples. There's a story of 74 00:03:22,840 --> 00:03:26,640 Speaker 2: World War two and one of the engineers in the 75 00:03:26,639 --> 00:03:29,400 Speaker 2: military wanted to make the planes better so they weren't 76 00:03:29,400 --> 00:03:31,800 Speaker 2: shot down. And what they did is they looked at 77 00:03:31,840 --> 00:03:34,040 Speaker 2: all the planes that went into war and went through 78 00:03:34,080 --> 00:03:36,040 Speaker 2: dogfights and drop bombs and whatever, and they looked at 79 00:03:36,080 --> 00:03:38,040 Speaker 2: them and they looked where all the bullet holes were 80 00:03:38,080 --> 00:03:39,320 Speaker 2: on the plane. 81 00:03:39,520 --> 00:03:41,480 Speaker 1: And so he said, okay, here's what we need to do. 82 00:03:41,680 --> 00:03:43,880 Speaker 2: See where all these bullet holes are on the plane. 83 00:03:43,960 --> 00:03:47,240 Speaker 2: We need to reinforce these areas right here. That way, 84 00:03:47,560 --> 00:03:49,240 Speaker 2: when they go to war next time. 85 00:03:49,280 --> 00:03:50,440 Speaker 1: Were prepared. 86 00:03:50,920 --> 00:03:53,280 Speaker 2: Right these areas that seem to get hit a lot 87 00:03:53,320 --> 00:03:57,640 Speaker 2: in dogfights or whatever are now reinforced. Well, that's I 88 00:03:57,640 --> 00:04:01,160 Speaker 2: guess somewhat smart thinking, you would think. But then someone said, 89 00:04:01,200 --> 00:04:04,040 Speaker 2: wait a minute, that's actually the wrong approach. You see 90 00:04:04,320 --> 00:04:06,760 Speaker 2: these planes that got bullet holes in them came back. 91 00:04:07,320 --> 00:04:09,520 Speaker 2: These planes did not go down. What we need to 92 00:04:09,520 --> 00:04:11,520 Speaker 2: do is we need to find the planes that went 93 00:04:11,720 --> 00:04:14,360 Speaker 2: down because of the bullet holes. That's the areas we 94 00:04:14,360 --> 00:04:16,440 Speaker 2: need to protect. And so that's sort of an illustration, 95 00:04:16,520 --> 00:04:20,400 Speaker 2: but a better illustration back to money, is like two 96 00:04:20,400 --> 00:04:22,240 Speaker 2: thousand and eight. So in two thousand and eight, it 97 00:04:22,279 --> 00:04:26,159 Speaker 2: was a housing crash, right, It was the housing market, 98 00:04:26,240 --> 00:04:28,880 Speaker 2: the mortgage market that brought the banks down and then 99 00:04:28,920 --> 00:04:32,680 Speaker 2: brought the economy down. And so now today everybody's expecting 100 00:04:32,760 --> 00:04:36,240 Speaker 2: a housing crash. They're expecting the same thing to happen. 101 00:04:36,279 --> 00:04:39,000 Speaker 2: They're expecting a banking crash. They're expecting the banks, and 102 00:04:39,040 --> 00:04:41,440 Speaker 2: they're expecting the real estate. Which is why if you 103 00:04:41,560 --> 00:04:44,560 Speaker 2: watch mainstream media, legacy media, or you watch other talking 104 00:04:44,600 --> 00:04:46,760 Speaker 2: heads like me, you'll see people constantly talking about the 105 00:04:46,800 --> 00:04:49,719 Speaker 2: housing market and the banking crisis, which both of them 106 00:04:49,800 --> 00:04:51,880 Speaker 2: are having their struggles. Don't get me wrong, we saw 107 00:04:51,920 --> 00:04:54,240 Speaker 2: banks collapse, all right. Last year I covered this extensively, 108 00:04:54,360 --> 00:04:57,880 Speaker 2: or earlier this year I covered that extensively. But it's 109 00:04:57,920 --> 00:04:59,000 Speaker 2: not the same war. 110 00:04:59,040 --> 00:04:59,920 Speaker 1: So let's talk about this. 111 00:05:00,279 --> 00:05:04,880 Speaker 2: What most people are expecting now is a market crash 112 00:05:05,200 --> 00:05:08,040 Speaker 2: a recession. So market's crash that's asset prices went down 113 00:05:08,080 --> 00:05:10,360 Speaker 2: as well as a recession, which is economic activity dropping, 114 00:05:10,839 --> 00:05:11,279 Speaker 2: and they. 115 00:05:11,160 --> 00:05:12,600 Speaker 1: Expect this to go down. 116 00:05:12,880 --> 00:05:14,600 Speaker 2: And in like two thousand and eight, you might have 117 00:05:14,680 --> 00:05:16,840 Speaker 2: lost your job, you maybe had to get a new 118 00:05:16,920 --> 00:05:20,040 Speaker 2: job that was lower paying. Your asset prices plummeted, your 119 00:05:20,040 --> 00:05:22,400 Speaker 2: house went down, et cetera, Your stocks went down, and 120 00:05:22,480 --> 00:05:26,239 Speaker 2: so you felt poor. My assets went down, my income 121 00:05:26,279 --> 00:05:30,480 Speaker 2: went down, and so I couldn't afford to keep the 122 00:05:30,480 --> 00:05:33,359 Speaker 2: same standard of living. And this is the key piece. 123 00:05:33,800 --> 00:05:36,520 Speaker 2: How do we define a crash? But more importantly, what 124 00:05:36,560 --> 00:05:39,000 Speaker 2: are we worried about in a crash? So in a crash, 125 00:05:39,160 --> 00:05:42,239 Speaker 2: if my asset prices come down and my income goes down, 126 00:05:42,560 --> 00:05:46,320 Speaker 2: then I can't afford to continue to have the same 127 00:05:46,400 --> 00:05:48,520 Speaker 2: standard of living, the same quality of life. That is 128 00:05:48,560 --> 00:05:51,440 Speaker 2: the crash. Okay, so if asset prices in income goes down, 129 00:05:51,680 --> 00:05:55,400 Speaker 2: that happens. But that's the deflationary market crash. That's what 130 00:05:55,440 --> 00:05:57,160 Speaker 2: most people are afraid of. That's what happened in two 131 00:05:57,160 --> 00:05:59,000 Speaker 2: thousand and eight, That's what happened in the two thousand 132 00:05:59,000 --> 00:05:59,840 Speaker 2: dot com crash. 133 00:06:00,040 --> 00:06:00,479 Speaker 1: Et cetera. 134 00:06:00,600 --> 00:06:04,880 Speaker 2: Okay, but while that happens, while we have that deflation 135 00:06:05,320 --> 00:06:08,200 Speaker 2: the value of while the nominal value of those things 136 00:06:08,240 --> 00:06:11,440 Speaker 2: go down, it's bad. But there's another type of crash, 137 00:06:11,520 --> 00:06:13,200 Speaker 2: And the other type of crash that most people aren't 138 00:06:13,200 --> 00:06:17,359 Speaker 2: aware of is an inflationary market crash, and this is 139 00:06:17,880 --> 00:06:20,720 Speaker 2: it achieves the same thing. Remember, a crash being that 140 00:06:20,800 --> 00:06:24,640 Speaker 2: I can no longer afford to keep my same quality 141 00:06:24,680 --> 00:06:27,520 Speaker 2: or standard of living. Now, if my income has to 142 00:06:27,520 --> 00:06:30,479 Speaker 2: go down, that happens. But what if what if my 143 00:06:30,520 --> 00:06:34,480 Speaker 2: asset prices actually go sky high? What if home prices 144 00:06:34,520 --> 00:06:37,640 Speaker 2: shoot higher? What if stock prices shoot higher, gold, gas, oil, 145 00:06:37,760 --> 00:06:41,480 Speaker 2: all those things go higher, and even my pay goes higher. 146 00:06:42,200 --> 00:06:46,000 Speaker 2: But the problem is that all of these asset prices, 147 00:06:46,000 --> 00:06:48,920 Speaker 2: the price of goods and services goes up way faster 148 00:06:49,480 --> 00:06:52,520 Speaker 2: than my rate of pay does. Now, the outcome is 149 00:06:52,560 --> 00:06:56,799 Speaker 2: still exactly the same. Either way, I still can't afford 150 00:06:57,200 --> 00:06:59,719 Speaker 2: to maintain my standard of living. 151 00:07:00,040 --> 00:07:00,880 Speaker 1: You see the effect. 152 00:07:01,320 --> 00:07:03,520 Speaker 2: What happens to us, what we need to be worried about, 153 00:07:03,520 --> 00:07:07,200 Speaker 2: we need to protect ourselves from, is exactly the same. Ultimately, 154 00:07:07,240 --> 00:07:08,880 Speaker 2: what you and I want. You have to realize this. 155 00:07:08,960 --> 00:07:11,520 Speaker 2: I make this point quite often it sounds a little 156 00:07:11,560 --> 00:07:15,560 Speaker 2: bit odd in the beginning, But the point is is 157 00:07:15,600 --> 00:07:20,000 Speaker 2: that you don't want money. I'm gonna pausively think about that. 158 00:07:20,000 --> 00:07:23,560 Speaker 2: You don't want money sounds stupid. Of course I want money, Mark, No, 159 00:07:23,680 --> 00:07:26,880 Speaker 2: you don't. What you want is the things you want, 160 00:07:26,920 --> 00:07:30,440 Speaker 2: the goods and services that money buys you. Money is 161 00:07:30,440 --> 00:07:34,160 Speaker 2: a place that you store your value until you're ready 162 00:07:34,240 --> 00:07:37,040 Speaker 2: to get the goods and services that you want. A house, 163 00:07:37,080 --> 00:07:40,880 Speaker 2: a car, close, a trip, whatever it may be. Money 164 00:07:40,960 --> 00:07:43,360 Speaker 2: is just a temporary hold until you want to get 165 00:07:43,400 --> 00:07:46,239 Speaker 2: the goods and services. And so if you think about 166 00:07:46,240 --> 00:07:50,040 Speaker 2: it from that perspective, it's really for us, it's always 167 00:07:50,040 --> 00:07:53,280 Speaker 2: about our standard of living. If my cost of living 168 00:07:53,320 --> 00:07:57,440 Speaker 2: goes up, if my food and my gas goes up 169 00:07:57,480 --> 00:08:00,559 Speaker 2: in value, then I now have to work long didn't 170 00:08:00,600 --> 00:08:03,240 Speaker 2: go up, then I have to work more hours to 171 00:08:03,360 --> 00:08:05,880 Speaker 2: buy the same amount of gallons of gasoline, the same 172 00:08:05,880 --> 00:08:08,480 Speaker 2: amount of pounds of steak, et cetera. And so really 173 00:08:08,520 --> 00:08:10,760 Speaker 2: what we want to think about is our standard of living, 174 00:08:11,000 --> 00:08:15,000 Speaker 2: and that's what the crash affects both now in a 175 00:08:15,080 --> 00:08:19,840 Speaker 2: period of inflationary of high inflation, it also leads to 176 00:08:19,920 --> 00:08:22,960 Speaker 2: economic and stability because let's say that you're a restaurant 177 00:08:23,080 --> 00:08:25,040 Speaker 2: or a store. One of my buddies owns a couple 178 00:08:25,080 --> 00:08:28,600 Speaker 2: of restaurants here nearby me, and even in this inflationary environment, 179 00:08:28,720 --> 00:08:31,280 Speaker 2: his restaurant is about to go out of business because 180 00:08:31,320 --> 00:08:35,120 Speaker 2: the cost of his goods, his electricity bill, his gas 181 00:08:35,160 --> 00:08:38,439 Speaker 2: bill went up by several hundred times or one hundred percent. 182 00:08:38,960 --> 00:08:41,960 Speaker 2: His pork he has to pay a thirty percent tax 183 00:08:42,200 --> 00:08:45,160 Speaker 2: on the pork, His labor went up. All of these 184 00:08:45,200 --> 00:08:47,760 Speaker 2: costs went up, but he can't pass on those costs 185 00:08:47,840 --> 00:08:50,640 Speaker 2: to the consumer. So yes, he did increase his prices 186 00:08:50,679 --> 00:08:53,400 Speaker 2: a little bit. So it looks on paper like he's 187 00:08:53,400 --> 00:08:57,800 Speaker 2: making more revenue. His revenue went up, but his profitability went. 188 00:08:57,920 --> 00:08:59,920 Speaker 1: Way, way, way down. 189 00:09:00,360 --> 00:09:04,000 Speaker 2: And so either way, whether as revenue went down or up, 190 00:09:04,280 --> 00:09:07,080 Speaker 2: he's making less profit. It's a crash for him. And 191 00:09:07,120 --> 00:09:08,760 Speaker 2: the same thing could happen to you. If you're just 192 00:09:08,800 --> 00:09:10,679 Speaker 2: tune in, you're listening to the Mark Mass Show. We're 193 00:09:10,720 --> 00:09:14,360 Speaker 2: talking about the reverse crash. What that means, the tube 194 00:09:14,360 --> 00:09:16,240 Speaker 2: types of crash. I'm going to go back through history 195 00:09:16,240 --> 00:09:17,680 Speaker 2: and show you what each one of them look like. 196 00:09:17,720 --> 00:09:19,560 Speaker 2: And of course I'm not going to leave you hanging. 197 00:09:19,679 --> 00:09:22,440 Speaker 2: I'm going to let you know what it looks like 198 00:09:22,679 --> 00:09:24,960 Speaker 2: and how you can protect yourself. If you're just tune in, 199 00:09:24,960 --> 00:09:27,000 Speaker 2: you're listening to the Mark mass Show talking about the 200 00:09:27,120 --> 00:09:29,880 Speaker 2: reverse crash and how to prepare and protect yourself. I'll 201 00:09:29,880 --> 00:09:30,800 Speaker 2: be back with more in a minute. 202 00:09:30,840 --> 00:09:32,120 Speaker 1: Don't go away, all right. 203 00:09:32,080 --> 00:09:33,760 Speaker 2: Welcome back. If you just tune in, you're listening to 204 00:09:33,800 --> 00:09:36,040 Speaker 2: the Mark Maas Show and we are talking about the 205 00:09:36,080 --> 00:09:39,160 Speaker 2: reverse market crash. You hear all these headlines all over 206 00:09:39,160 --> 00:09:41,800 Speaker 2: the news, A recession is coming, the markets are going 207 00:09:41,840 --> 00:09:42,560 Speaker 2: to crash. 208 00:09:43,520 --> 00:09:45,480 Speaker 1: Well maybe not all right. 209 00:09:45,559 --> 00:09:47,800 Speaker 2: So, like I said, there's two types of crashes. The 210 00:09:47,840 --> 00:09:50,840 Speaker 2: crash bean that our standard of living goes down. We 211 00:09:50,920 --> 00:09:53,560 Speaker 2: can no longer afford the same standard of living. But 212 00:09:53,559 --> 00:09:56,439 Speaker 2: there's two ways to get there. If the recession in 213 00:09:56,480 --> 00:09:59,400 Speaker 2: the market's crash, that's one way. But even if things 214 00:09:59,480 --> 00:10:02,160 Speaker 2: go up, we can also suffer from the same things 215 00:10:02,840 --> 00:10:05,800 Speaker 2: of not being able to afford our same standardive living. 216 00:10:05,920 --> 00:10:08,240 Speaker 2: All right, So let's first start by looking at that 217 00:10:08,280 --> 00:10:10,920 Speaker 2: because most people don't really understand that. So that's an 218 00:10:11,040 --> 00:10:14,200 Speaker 2: inflationary crash. So there's an inflationary crash and there's a 219 00:10:14,480 --> 00:10:17,680 Speaker 2: deflationary crash. Remember, well, if you're just tuning in, you miss, 220 00:10:17,720 --> 00:10:22,000 Speaker 2: but deflationary crash is what most people are expecting, because 221 00:10:22,080 --> 00:10:24,760 Speaker 2: that's what happened in two thousand and eight, That's what 222 00:10:24,920 --> 00:10:28,560 Speaker 2: happened in two thousand, That's what happened in nineteen seventy, 223 00:10:28,559 --> 00:10:30,560 Speaker 2: that's what happened nine between nine. We'll go through those, 224 00:10:30,600 --> 00:10:33,800 Speaker 2: but let's first start talking about an inflationary crash. 225 00:10:34,120 --> 00:10:34,520 Speaker 1: All right. 226 00:10:34,559 --> 00:10:37,320 Speaker 2: Now, let's go back to the nineteen twenties, about one 227 00:10:37,360 --> 00:10:41,840 Speaker 2: hundred years ago. After World War One, Germany was forced 228 00:10:42,000 --> 00:10:45,200 Speaker 2: to pay war reparations, so they had to go pay 229 00:10:45,200 --> 00:10:48,160 Speaker 2: for all the damage that happened, and by doing that, 230 00:10:48,280 --> 00:10:50,199 Speaker 2: it caused them to go into a massive period of 231 00:10:50,280 --> 00:10:51,840 Speaker 2: hyper inflation. As a matter of fact, it is one 232 00:10:51,880 --> 00:10:55,720 Speaker 2: of the most commonly cited textbook examples of hyper inflation. 233 00:10:56,360 --> 00:10:58,959 Speaker 2: So this is the Wymar Republic in Ymar, Germany in 234 00:10:59,040 --> 00:11:02,040 Speaker 2: nineteen twenties, and it was It's a textbook example because 235 00:11:02,040 --> 00:11:04,120 Speaker 2: it was one of the most extreme cases of hyperinflation 236 00:11:04,320 --> 00:11:07,520 Speaker 2: in history, although I would argue Zimbabwe is actually worse, 237 00:11:07,559 --> 00:11:09,599 Speaker 2: which we'll cover in a minute. But what happened is, 238 00:11:09,640 --> 00:11:11,559 Speaker 2: like I said, after World War One, they had to 239 00:11:11,600 --> 00:11:13,760 Speaker 2: go pay for all these war reparations. They didn't have 240 00:11:13,800 --> 00:11:16,480 Speaker 2: the money obviously. It was known as the Treaty of 241 00:11:16,720 --> 00:11:20,480 Speaker 2: Versize and imposed reparations initially set at one hundred and 242 00:11:20,480 --> 00:11:25,160 Speaker 2: thirty two billion gold marks. So back in those days, 243 00:11:25,200 --> 00:11:28,880 Speaker 2: gold was still money. Gold was actually money. Paper was 244 00:11:28,920 --> 00:11:31,480 Speaker 2: backed by gold. It was a paper certificate that marked gold, 245 00:11:31,960 --> 00:11:36,000 Speaker 2: and so the US dollar thirty two US dollars equaled well, 246 00:11:36,040 --> 00:11:39,040 Speaker 2: in nineteen twenty it was a twenty US dollars equaled 247 00:11:39,280 --> 00:11:41,640 Speaker 2: one ounce of gold. Germany, it was the same way. 248 00:11:41,640 --> 00:11:43,559 Speaker 2: One hundred and thirty two billion gold marks was what 249 00:11:43,600 --> 00:11:46,880 Speaker 2: was owed. It was equivalent to about thirty three billion 250 00:11:47,040 --> 00:11:50,360 Speaker 2: at the time. Now, of course, because our money continued 251 00:11:50,400 --> 00:11:52,440 Speaker 2: to be debased, it was thirty three billion at the time. 252 00:11:52,840 --> 00:11:59,200 Speaker 2: Today it's five hundred and fifty three billion. Over half 253 00:11:59,200 --> 00:12:02,280 Speaker 2: a trillion dollar dollar is what Germany owed, which is 254 00:12:02,280 --> 00:12:06,120 Speaker 2: an enormous amount for any country, but especially Germany back 255 00:12:06,160 --> 00:12:09,840 Speaker 2: in that time. So it was an enormous amount, massive 256 00:12:09,880 --> 00:12:14,600 Speaker 2: economic burden, and they didn't have the money obviously, and 257 00:12:14,679 --> 00:12:16,760 Speaker 2: so they had to print the money. Now, just to 258 00:12:16,840 --> 00:12:20,080 Speaker 2: kind of put this into perspective again today, in today's dollars, 259 00:12:20,520 --> 00:12:25,160 Speaker 2: the largest debtor nation to the IMF International Monitary Fund 260 00:12:25,240 --> 00:12:31,280 Speaker 2: is Argentina, and Argentina owes about thirty one billion dollars 261 00:12:31,440 --> 00:12:36,560 Speaker 2: thirty one okay, so back then Germany owed five hundred 262 00:12:36,920 --> 00:12:41,240 Speaker 2: over ten times more, okay, just to put that into comparison. Now, 263 00:12:41,360 --> 00:12:44,560 Speaker 2: let's look at this hyperinflation. So before this started happening, 264 00:12:44,800 --> 00:12:46,440 Speaker 2: we have to look. You have to remember, like we 265 00:12:46,440 --> 00:12:48,600 Speaker 2: don't want money, we want things that we can exchange 266 00:12:48,640 --> 00:12:50,280 Speaker 2: the money force. We just have to look at exchange 267 00:12:50,320 --> 00:12:53,240 Speaker 2: rates of different things. And remember gold was still money 268 00:12:53,280 --> 00:12:56,000 Speaker 2: at that time. So if we go back to nineteen fourteen, 269 00:12:56,200 --> 00:12:58,760 Speaker 2: which was before all this started happening, we could see 270 00:12:58,760 --> 00:13:02,080 Speaker 2: that the exchange rate for German marks to gold was 271 00:13:02,240 --> 00:13:07,400 Speaker 2: four point two marks to one US dollar, or it 272 00:13:07,440 --> 00:13:11,040 Speaker 2: was two thousand, seven hundred and ninety marks per ounce 273 00:13:11,040 --> 00:13:14,320 Speaker 2: of gold, because remember it's exchangeable for everything, so four 274 00:13:14,360 --> 00:13:17,000 Speaker 2: point two marks for the dollar or twenty seven hundred 275 00:13:17,000 --> 00:13:19,840 Speaker 2: marks per ounce of gold. But if we fast forward 276 00:13:20,080 --> 00:13:22,880 Speaker 2: nine years, this happened over a nine year period. After 277 00:13:22,960 --> 00:13:26,280 Speaker 2: hyperinflation happened, by late nineteen twenty three, we saw those 278 00:13:26,320 --> 00:13:28,920 Speaker 2: exchange rates just take off. As a matter of fact, 279 00:13:30,000 --> 00:13:33,640 Speaker 2: nine years later, it took trillions of marks to buy 280 00:13:33,679 --> 00:13:36,400 Speaker 2: an ounce of gold. Instead of two thousand, it now 281 00:13:36,440 --> 00:13:41,760 Speaker 2: took four point two trillion marks, sorry, trillions of marks 282 00:13:41,760 --> 00:13:44,400 Speaker 2: to buy an ounce gold. And the exchange rate, which 283 00:13:44,559 --> 00:13:47,360 Speaker 2: was four point two marks for US dollar, was now 284 00:13:47,480 --> 00:13:51,320 Speaker 2: four point two trillion marks to one ounce of gold. 285 00:13:51,920 --> 00:13:54,880 Speaker 2: Trillions from from four to four trillion. It's a pretty 286 00:13:54,920 --> 00:13:58,080 Speaker 2: big deal. Now. Of course, that was devastating for everybody 287 00:13:58,080 --> 00:14:01,120 Speaker 2: in Germany. And what happened is this is a very 288 00:14:01,120 --> 00:14:03,880 Speaker 2: important piece I talk about often. There's a book titled 289 00:14:03,880 --> 00:14:05,960 Speaker 2: When Money Dies. It's highly worth reading the book to 290 00:14:05,960 --> 00:14:08,040 Speaker 2: get some of these lessons. They talked about what it 291 00:14:08,080 --> 00:14:10,079 Speaker 2: was like to leaving through that period, and one thing 292 00:14:10,160 --> 00:14:13,800 Speaker 2: is that people saw their asset prices shoot higher. They 293 00:14:13,800 --> 00:14:16,959 Speaker 2: saw their homes, gold, hire, all these things, and they said, oh, 294 00:14:16,960 --> 00:14:18,760 Speaker 2: we better sell our house, we better sell our gold, 295 00:14:18,800 --> 00:14:21,600 Speaker 2: we better sell our assets before they crashed back down. 296 00:14:21,640 --> 00:14:23,240 Speaker 2: So they all did, and they ended up holding a 297 00:14:23,240 --> 00:14:25,520 Speaker 2: bunch of worthless paper that they ended up burning in 298 00:14:25,560 --> 00:14:29,360 Speaker 2: their fireplaces because it was worth less than would But 299 00:14:29,400 --> 00:14:31,040 Speaker 2: the point that I want to talk about here is 300 00:14:31,040 --> 00:14:35,640 Speaker 2: that home prices shot higher, and food prices are higher, 301 00:14:35,680 --> 00:14:39,239 Speaker 2: and all these assets shot higher. But the problem is 302 00:14:39,240 --> 00:14:43,040 Speaker 2: is that the workers pays didn't shoot higher, and so 303 00:14:43,280 --> 00:14:45,440 Speaker 2: even though asset prices went up, which seemed to be 304 00:14:45,440 --> 00:14:49,080 Speaker 2: a good thing, they couldn't afford them. That led to 305 00:14:49,360 --> 00:14:53,840 Speaker 2: massive political instability. It led to extremist groups and eventually 306 00:14:54,280 --> 00:14:56,920 Speaker 2: is what led to the Nazi Party coming in and 307 00:14:57,040 --> 00:15:00,560 Speaker 2: Hitler taking over and capitalizing on this take it over. 308 00:15:00,880 --> 00:15:04,760 Speaker 2: So in this environment we saw the asset prices shoot higher, 309 00:15:05,320 --> 00:15:08,200 Speaker 2: but because the pay didn't keep up, even though prices 310 00:15:08,200 --> 00:15:11,120 Speaker 2: went up, not down, people lost their quality of life. 311 00:15:11,120 --> 00:15:16,280 Speaker 2: We can look at Zimbabwe. Zimbabwe is even a better example. 312 00:15:17,000 --> 00:15:17,840 Speaker 1: In the two. 313 00:15:17,760 --> 00:15:21,600 Speaker 2: Thousands, not that long ago. In the last decade or 314 00:15:21,600 --> 00:15:25,040 Speaker 2: two decades, we saw massive hyper inflation, we saw currency collapse, 315 00:15:25,040 --> 00:15:25,920 Speaker 2: economic breakdown. 316 00:15:26,120 --> 00:15:27,080 Speaker 1: Let me give you an example. 317 00:15:27,160 --> 00:15:31,520 Speaker 2: In nineteen eighty three, the exchange rate was one Zimbabwe 318 00:15:31,640 --> 00:15:35,720 Speaker 2: dollar for one US dollar one to one nineteen eighty three. 319 00:15:35,840 --> 00:15:39,400 Speaker 2: By nineteen ninety seven it was ten to one. So 320 00:15:39,480 --> 00:15:41,560 Speaker 2: it took from eighty three to ninety seven, what is 321 00:15:41,600 --> 00:15:44,800 Speaker 2: that fourteen years to go from one to ten. But 322 00:15:44,880 --> 00:15:48,320 Speaker 2: then from ninety seven to two thousand, so now that's. 323 00:15:49,680 --> 00:15:50,320 Speaker 1: Three years. 324 00:15:50,440 --> 00:15:52,920 Speaker 2: It went from ten to one to one hundred to one. 325 00:15:53,000 --> 00:15:55,120 Speaker 2: By two thousand and two, two years later, went from 326 00:15:55,120 --> 00:15:57,520 Speaker 2: one hundred and one to one thousand to one. By 327 00:15:57,720 --> 00:16:00,000 Speaker 2: two thousand and five, three years later, it went from 328 00:16:00,000 --> 00:16:02,720 Speaker 2: one thousand to one to ten thousand to one, and 329 00:16:02,760 --> 00:16:06,160 Speaker 2: by two thousand and six, one year later, it went 330 00:16:06,160 --> 00:16:09,720 Speaker 2: from ten thousand to one to five hundred thousand to one. 331 00:16:09,960 --> 00:16:12,320 Speaker 2: At that point they're like, Okay, throw this away. 332 00:16:12,360 --> 00:16:13,640 Speaker 1: That ain't working. Let's try again. 333 00:16:15,080 --> 00:16:17,400 Speaker 2: By August two sixth they came out with a new dollar, 334 00:16:17,520 --> 00:16:20,480 Speaker 2: a new Zimbabwe Dollar, the second Zimbabwe Dollar, an exchange 335 00:16:20,560 --> 00:16:22,880 Speaker 2: rate of six hundred and fifty to one US dollars. 336 00:16:23,280 --> 00:16:26,720 Speaker 2: By two thousand and eight, two years later, it went 337 00:16:26,720 --> 00:16:33,400 Speaker 2: from six hundred and fifty to seven hundred trillion. Okay, 338 00:16:33,440 --> 00:16:35,720 Speaker 2: throw that away, scrap that, Let's try a third time. 339 00:16:35,920 --> 00:16:38,080 Speaker 2: August two thousand and eight, it was a one thousand, 340 00:16:38,120 --> 00:16:41,360 Speaker 2: seven hundred and eighty and by November of two thousand 341 00:16:41,400 --> 00:16:44,480 Speaker 2: and eight, just a few months later, it went to 342 00:16:44,680 --> 00:16:46,640 Speaker 2: thirteen quadrillion. 343 00:16:48,000 --> 00:16:48,920 Speaker 1: I'm not making this up. 344 00:16:48,920 --> 00:16:52,040 Speaker 2: From one thousand, seven hundred eight seventeen hundred eighty Zimbabwe 345 00:16:52,040 --> 00:16:54,680 Speaker 2: dollars for one US dollar, it went to thirteen quadrillion. 346 00:16:54,680 --> 00:16:58,520 Speaker 2: Now what happened, Well, everybody became a billionaire. Everybody in 347 00:16:58,600 --> 00:17:02,160 Speaker 2: Zimbabwe was a billionaire. Amazing, right, wouldn't you love to 348 00:17:02,160 --> 00:17:05,000 Speaker 2: be a billionaire. But the problem is it was three 349 00:17:05,080 --> 00:17:09,040 Speaker 2: hundred and fifty billion dollars for one egg. So while 350 00:17:09,119 --> 00:17:12,159 Speaker 2: everybody became billionaires, you need three hundred three billion to 351 00:17:12,160 --> 00:17:14,600 Speaker 2: get an egg. And so the point is is that 352 00:17:14,680 --> 00:17:17,760 Speaker 2: markets don't have to crash. We could see home prices 353 00:17:17,800 --> 00:17:21,040 Speaker 2: double triple quadruple. We could see gold and oil and 354 00:17:21,080 --> 00:17:23,439 Speaker 2: all those things double triple quadruple. We could see your 355 00:17:23,440 --> 00:17:26,960 Speaker 2: retirement accounts go up by double, you could even see 356 00:17:27,000 --> 00:17:31,000 Speaker 2: your pay go up. But if the cost of your 357 00:17:31,040 --> 00:17:34,960 Speaker 2: goods and services goes up even more, you still end 358 00:17:35,040 --> 00:17:37,919 Speaker 2: up in a crash environment where you can't afford the 359 00:17:37,960 --> 00:17:39,119 Speaker 2: same quality of living. 360 00:17:39,720 --> 00:17:40,480 Speaker 1: Does that make sense? 361 00:17:40,720 --> 00:17:43,720 Speaker 2: Okay, we've seen this over and over and over again. 362 00:17:44,920 --> 00:17:47,919 Speaker 2: Argentina right now is seeing the same thing. Now if 363 00:17:47,920 --> 00:17:49,640 Speaker 2: you're just tuning in listening to the Mark Mass show, 364 00:17:49,640 --> 00:17:53,600 Speaker 2: we're talking about the reverse crash. There's two types of crashes. 365 00:17:53,640 --> 00:17:57,160 Speaker 2: The outcome is the same. Your quality of life goes down, 366 00:17:57,240 --> 00:18:00,800 Speaker 2: you can't afford your same standard of living. The outcome 367 00:18:00,880 --> 00:18:03,000 Speaker 2: is the same but there's two paths to get there, 368 00:18:03,040 --> 00:18:06,639 Speaker 2: and I believe everybody's expecting the wrong path. And if 369 00:18:06,640 --> 00:18:09,760 Speaker 2: you're expecting the wrong path, you're preparing the wrong way. 370 00:18:09,880 --> 00:18:12,640 Speaker 2: I'll be back with more examples of the other type 371 00:18:12,640 --> 00:18:13,359 Speaker 2: of crash in a minute. 372 00:18:13,359 --> 00:18:14,480 Speaker 1: Don't go away, I'll be her back. 373 00:18:15,160 --> 00:18:16,640 Speaker 2: All right, Welcome back. If you just tune in, you're 374 00:18:16,640 --> 00:18:18,840 Speaker 2: listening to the Mark Maas Show. We're talking about the 375 00:18:18,920 --> 00:18:22,600 Speaker 2: reverse market crash, whatever that means. Right, Well, if you 376 00:18:22,640 --> 00:18:24,879 Speaker 2: missed it and you don't know, go back check out 377 00:18:24,880 --> 00:18:26,719 Speaker 2: the podcast. Just search the Mark mass Show on your 378 00:18:26,720 --> 00:18:30,639 Speaker 2: favorite podcast player, or watch this on YouTube. Just search 379 00:18:30,720 --> 00:18:33,719 Speaker 2: market Disruptors and you'll find it there. All right, So 380 00:18:34,080 --> 00:18:38,679 Speaker 2: we covered the inflationary crash right now. For some reason, 381 00:18:38,880 --> 00:18:41,760 Speaker 2: we have examples of this happening all throughout society. As 382 00:18:41,760 --> 00:18:46,119 Speaker 2: a matter of fact, what happened in twenty twenty, what 383 00:18:46,160 --> 00:18:48,400 Speaker 2: happened in two two the twenty, Well, the markets did 384 00:18:48,440 --> 00:18:50,760 Speaker 2: crash temporarily. We saw the stock market ticket dip for 385 00:18:50,800 --> 00:18:55,240 Speaker 2: a couple of months, but a couple of months then 386 00:18:55,280 --> 00:19:00,200 Speaker 2: what happened. Home prices shot to the moon, Steak gas 387 00:19:00,400 --> 00:19:04,480 Speaker 2: milk shot to the moon, but your pay didn't keep up, 388 00:19:04,880 --> 00:19:07,720 Speaker 2: and so today, just a couple of years later, you 389 00:19:07,920 --> 00:19:11,960 Speaker 2: have to work way harder today to try to even 390 00:19:12,000 --> 00:19:14,000 Speaker 2: come close to the same standard of living that you 391 00:19:14,040 --> 00:19:17,280 Speaker 2: had in twenty nineteen. It was an inflationary crash. So 392 00:19:17,520 --> 00:19:20,360 Speaker 2: while everybody keeps waiting for this two thousand and eight 393 00:19:20,400 --> 00:19:25,400 Speaker 2: style two thousand nineteen twenty nine style deflationary crash, all 394 00:19:25,480 --> 00:19:30,280 Speaker 2: this evidence Zimbabwe, Argentina twenty twenty show us that it's 395 00:19:30,440 --> 00:19:32,920 Speaker 2: been an inflationary crash, has been the problem. But let's 396 00:19:32,960 --> 00:19:35,280 Speaker 2: go back into this deflationary crash for a minute, and 397 00:19:35,320 --> 00:19:37,680 Speaker 2: let's look at some historical examples of this so you 398 00:19:37,680 --> 00:19:40,119 Speaker 2: can understand how they worked, what they look like, so 399 00:19:40,160 --> 00:19:42,840 Speaker 2: you can know them if you see them. So the 400 00:19:43,000 --> 00:19:45,640 Speaker 2: greatest example of this is, of course, the Great Depression, 401 00:19:45,640 --> 00:19:48,040 Speaker 2: that's why it's called it. The Great nineteen twenty nine 402 00:19:49,040 --> 00:19:52,520 Speaker 2: we saw asset prices crash, stock prices, stock market crashed, 403 00:19:53,200 --> 00:19:57,400 Speaker 2: bank failures happened, and we went into a deflationary spiral. 404 00:19:57,920 --> 00:20:01,159 Speaker 2: Now again this was a massive deal. We still hear 405 00:20:01,320 --> 00:20:06,200 Speaker 2: stories of this, but this was again a deflationary crash 406 00:20:06,240 --> 00:20:12,280 Speaker 2: where stock prices dropped by sixty seventy percent right the 407 00:20:12,359 --> 00:20:14,600 Speaker 2: banks went down when the banks went down. We didn't 408 00:20:14,640 --> 00:20:17,760 Speaker 2: have credit. When we didn't have credit, then business couldn't operate. 409 00:20:17,800 --> 00:20:22,359 Speaker 2: Then the economy crash. People didn't have jobs. But the 410 00:20:22,480 --> 00:20:25,840 Speaker 2: end result was those people living during that period couldn't 411 00:20:25,880 --> 00:20:31,040 Speaker 2: maintain their standard of living. Right now, most of the 412 00:20:31,080 --> 00:20:34,520 Speaker 2: declines happened pretty quickly. We saw them drop really really fast. 413 00:20:34,520 --> 00:20:37,920 Speaker 2: It was known as Black Thursday. It was October twenty fourth, 414 00:20:37,960 --> 00:20:41,879 Speaker 2: nineteen twenty nine. The Dow Jones fell eleven percent at 415 00:20:41,920 --> 00:20:46,520 Speaker 2: the bell. We saw Black Monday, October twenty eight. There 416 00:20:46,560 --> 00:20:48,680 Speaker 2: was there were several of these Black Tuesday, and it 417 00:20:48,760 --> 00:20:51,600 Speaker 2: just kept happening over and over and over. We saw 418 00:20:52,119 --> 00:20:55,520 Speaker 2: bank failures. Nine thousand banks in total failed, taking with 419 00:20:55,600 --> 00:21:00,639 Speaker 2: them seven billion dollars in depositors' assets. Now it's a 420 00:21:00,640 --> 00:21:03,920 Speaker 2: big number today it's a much bigger number. And then, 421 00:21:04,000 --> 00:21:07,440 Speaker 2: of course, like I said, as that happened, the economy contracted. 422 00:21:07,440 --> 00:21:09,720 Speaker 2: People didn't have enough money. Now, at the height of 423 00:21:09,720 --> 00:21:12,439 Speaker 2: the depression in nineteen thirty three, twenty four point nine 424 00:21:12,480 --> 00:21:16,920 Speaker 2: percent of the nation's total workforce, about twelve almost thirteen 425 00:21:16,960 --> 00:21:20,119 Speaker 2: million people were unemployed. So we saw a very high 426 00:21:20,280 --> 00:21:24,000 Speaker 2: unemployment rate. And so again we hear stories of food 427 00:21:24,040 --> 00:21:27,760 Speaker 2: lines and you know, people being homeless and all those things. 428 00:21:27,760 --> 00:21:29,760 Speaker 2: So all of those people that had previously been able 429 00:21:29,800 --> 00:21:31,840 Speaker 2: to afford their home and afford their food and have 430 00:21:31,880 --> 00:21:35,560 Speaker 2: a standard living now lost it. Just like in Zimbabwe 431 00:21:35,680 --> 00:21:37,800 Speaker 2: when they couldn't afford an egg even though they were 432 00:21:37,840 --> 00:21:42,240 Speaker 2: a billionaire. You see that, it's the exact same outcome. 433 00:21:42,320 --> 00:21:45,840 Speaker 2: You have to understand that. And we'll get to why. 434 00:21:45,920 --> 00:21:48,920 Speaker 2: Now we can look at Japan what's known as Japan's 435 00:21:48,960 --> 00:21:54,520 Speaker 2: Lost Decade. Nineteen ninety we saw another massive deflationary event 436 00:21:54,880 --> 00:21:59,760 Speaker 2: where we saw home prices and asset prices. Now, just 437 00:21:59,800 --> 00:22:01,560 Speaker 2: to let you know why, I talk about these differently 438 00:22:01,800 --> 00:22:06,080 Speaker 2: in economics, these macro economic people, not me. I try 439 00:22:06,080 --> 00:22:07,600 Speaker 2: to explain this, you can understand it. But if you 440 00:22:07,600 --> 00:22:10,480 Speaker 2: listen to some of these other people, they tell you 441 00:22:10,640 --> 00:22:16,520 Speaker 2: things that are technically factually they're correct. I believe they're 442 00:22:16,520 --> 00:22:19,200 Speaker 2: intellectually dishonest. And so what do I mean by that 443 00:22:19,840 --> 00:22:22,040 Speaker 2: they're going to tell you that. Well, look, in two 444 00:22:22,040 --> 00:22:24,399 Speaker 2: thousand and eight, the FED did quantitative easy and they 445 00:22:24,400 --> 00:22:27,200 Speaker 2: pumped all this money in their their balance sheet went up, 446 00:22:27,720 --> 00:22:32,040 Speaker 2: but it didn't cause any inflation. And I'll say, but 447 00:22:32,240 --> 00:22:35,280 Speaker 2: how can you say that when home price is shot 448 00:22:35,359 --> 00:22:38,040 Speaker 2: up and all these other prices shot up, stock market 449 00:22:38,080 --> 00:22:40,360 Speaker 2: went up, how can you say that? They say, well, 450 00:22:40,400 --> 00:22:46,200 Speaker 2: those are assets, you see, So what a legacy mainstream economist. 451 00:22:46,200 --> 00:22:51,040 Speaker 2: They get technical and they do not consider asset prices stocks, 452 00:22:51,280 --> 00:22:54,480 Speaker 2: your home, gold oil. They don't consider asset prices going 453 00:22:54,560 --> 00:23:01,919 Speaker 2: up as inflation. That's considered appreciation. Your home appreciates. Okay, well, 454 00:23:02,040 --> 00:23:04,760 Speaker 2: I say, well, so that they would only look at 455 00:23:04,800 --> 00:23:09,320 Speaker 2: consumer prices as measured by the CPI as inflationary. But 456 00:23:09,440 --> 00:23:14,760 Speaker 2: I would say that is factually technically correct, it's intellectually 457 00:23:14,760 --> 00:23:18,240 Speaker 2: dishonest because I am a consumer and as a consumer, 458 00:23:18,359 --> 00:23:21,200 Speaker 2: I want to buy a house, and if the price 459 00:23:21,200 --> 00:23:23,000 Speaker 2: of that house went up, it affects me just the same. 460 00:23:23,080 --> 00:23:25,400 Speaker 2: Just because you want to classify as something else doesn't matter. 461 00:23:25,440 --> 00:23:29,000 Speaker 2: So that's why we break apart assets and goods and services. 462 00:23:29,040 --> 00:23:31,320 Speaker 2: All right, just this technical definition. But back to Japan 463 00:23:31,600 --> 00:23:34,920 Speaker 2: nineteen nineties. They saw, you know, this massive deflationary bust 464 00:23:35,000 --> 00:23:37,760 Speaker 2: happened nineteen ninety one to two thousand and three, about 465 00:23:37,760 --> 00:23:41,280 Speaker 2: eleven years, twelve years. The Japanese economy, as measured by GDP, 466 00:23:41,480 --> 00:23:44,720 Speaker 2: grew by one point four percent annually, but it was 467 00:23:44,920 --> 00:23:49,520 Speaker 2: way below other industrialized nations. They had the asset bubble burst, 468 00:23:49,880 --> 00:23:52,520 Speaker 2: so they saw, you know, they had to see a 469 00:23:52,600 --> 00:23:57,240 Speaker 2: massive rise in asset prices, real estate stocks, et cetera. 470 00:23:58,080 --> 00:24:00,400 Speaker 1: But all of that crashed In. 471 00:24:00,320 --> 00:24:03,879 Speaker 2: Tokyo's commercial district, land prices had gone up, home prices 472 00:24:03,880 --> 00:24:06,120 Speaker 2: had gone up, but then it all came crashing down. 473 00:24:06,160 --> 00:24:08,280 Speaker 2: So everyone had felt rich, rich rich, sort of like 474 00:24:08,320 --> 00:24:11,280 Speaker 2: going in two thousand and eight using their homes for checkbooks. 475 00:24:11,640 --> 00:24:15,359 Speaker 2: But when the market crashed, the asset prices, the homes, 476 00:24:15,359 --> 00:24:19,320 Speaker 2: the stocks, everything crashed with it, making everybody feel poor again, 477 00:24:20,600 --> 00:24:24,160 Speaker 2: all right, And so in that the same thing happened. 478 00:24:24,240 --> 00:24:26,600 Speaker 2: They didn't have their homes of checking accounts, they didn't 479 00:24:26,640 --> 00:24:30,679 Speaker 2: have a still act to liquidity, etc. This deflationary everything 480 00:24:30,720 --> 00:24:33,040 Speaker 2: came down in value, but everybody was broke, and so 481 00:24:33,280 --> 00:24:36,879 Speaker 2: again they couldn't afford to keep up their same standard 482 00:24:36,920 --> 00:24:40,240 Speaker 2: of living. All right. Now, this leads to this mindset 483 00:24:40,280 --> 00:24:44,440 Speaker 2: of deflationary. Maybe some of you might have a grandparent 484 00:24:44,520 --> 00:24:48,199 Speaker 2: that might still remember the Great Depression or stories of that, 485 00:24:48,520 --> 00:24:51,640 Speaker 2: and they get this. I guess PTSD if you will. 486 00:24:52,320 --> 00:24:54,640 Speaker 2: I mean, I talk about PTSD from two thousand and eight. 487 00:24:54,640 --> 00:24:56,159 Speaker 2: Most of you know my story. I had built up 488 00:24:56,200 --> 00:24:59,600 Speaker 2: multiple businesses, had multiple exits, had a huge portfolio of 489 00:24:59,600 --> 00:25:02,200 Speaker 2: assets figure portfolio, and I got wiped out in two 490 00:25:02,200 --> 00:25:05,320 Speaker 2: thousand and eight, and so I suffered from PTSD. That's 491 00:25:05,359 --> 00:25:09,399 Speaker 2: why I jumped into this macro economic rabbit hole and 492 00:25:09,440 --> 00:25:11,840 Speaker 2: I constantly talk about it. It's because that really affected 493 00:25:11,880 --> 00:25:14,240 Speaker 2: my life. And so I'm fighting the last war. I 494 00:25:14,280 --> 00:25:15,840 Speaker 2: want to make sure that never happens to me again. 495 00:25:16,400 --> 00:25:19,159 Speaker 2: Although I see the war coming different which is what 496 00:25:19,200 --> 00:25:20,840 Speaker 2: I'm trying to explain to you. Now, don't worry. We'll 497 00:25:20,840 --> 00:25:23,280 Speaker 2: get to how to prepare how to see that differently. 498 00:25:23,160 --> 00:25:23,639 Speaker 1: In a minute. 499 00:25:23,640 --> 00:25:26,960 Speaker 2: But everyone has this PTSD in Japan had it the 500 00:25:26,960 --> 00:25:29,320 Speaker 2: same way. There's a lot of valuable lessons from that. 501 00:25:30,680 --> 00:25:34,159 Speaker 2: But you can't be expecting the same thing. 502 00:25:34,160 --> 00:25:34,840 Speaker 1: And I'll tell you why. 503 00:25:35,400 --> 00:25:37,119 Speaker 2: Let's just jump fast forward, real quick, and let's just 504 00:25:37,119 --> 00:25:38,560 Speaker 2: talk about two thousand and eight, since I just talked 505 00:25:38,560 --> 00:25:40,280 Speaker 2: about it for a minute. And so again, that was 506 00:25:40,280 --> 00:25:43,080 Speaker 2: a banking crisis. It was a housing collapse. Now I 507 00:25:43,200 --> 00:25:45,520 Speaker 2: was in Southern California. Southern California became one of the 508 00:25:45,560 --> 00:25:48,040 Speaker 2: worst real estate markets in the country. As a matter 509 00:25:48,080 --> 00:25:50,880 Speaker 2: of fact, this building that I'm using. 510 00:25:50,680 --> 00:25:51,320 Speaker 1: As my studio. 511 00:25:51,720 --> 00:25:54,040 Speaker 2: If you're watching on YouTube under the Market Disruptor's channel, 512 00:25:54,080 --> 00:25:55,159 Speaker 2: you can see me in this studio. 513 00:25:55,720 --> 00:25:58,040 Speaker 1: I built this building. I own this building. 514 00:25:58,080 --> 00:26:00,760 Speaker 2: At one point, I had it for sill for twelve 515 00:26:00,760 --> 00:26:02,679 Speaker 2: million dollars. I built it from the ground up. I 516 00:26:02,720 --> 00:26:04,119 Speaker 2: had it for sale as a brand new building, a 517 00:26:04,160 --> 00:26:07,199 Speaker 2: spec build. It's a mixed use commercial residential. I had 518 00:26:07,200 --> 00:26:10,480 Speaker 2: it for self for twelve million dollars. I turned down 519 00:26:10,520 --> 00:26:13,600 Speaker 2: an offer for eleven million. In hindsight, I should have 520 00:26:13,600 --> 00:26:16,720 Speaker 2: taken it. I thought I would get the twelve, and 521 00:26:17,040 --> 00:26:20,240 Speaker 2: just six or eight months later it went back to 522 00:26:20,280 --> 00:26:23,679 Speaker 2: the bank and the bank sold it for four Okay, 523 00:26:24,040 --> 00:26:26,840 Speaker 2: from twelve million to four million. Now, I've had people 524 00:26:26,880 --> 00:26:29,080 Speaker 2: try to argue with me on social media. Oh, Mark, 525 00:26:29,119 --> 00:26:32,919 Speaker 2: real estate in California didn't drop by sixty percent. Okay, 526 00:26:33,119 --> 00:26:35,240 Speaker 2: maybe not where you're at all right. I have the 527 00:26:35,280 --> 00:26:37,639 Speaker 2: battle wounds and the scars to prove it. This building 528 00:26:37,760 --> 00:26:39,800 Speaker 2: right here I had for sale for twelve I had 529 00:26:39,800 --> 00:26:41,680 Speaker 2: to offer for eleven. It's sold for four. 530 00:26:42,080 --> 00:26:43,080 Speaker 1: Do the math, Okay. 531 00:26:43,359 --> 00:26:46,160 Speaker 2: I had multiple other houses in this area southern California 532 00:26:46,240 --> 00:26:48,879 Speaker 2: on the beach that I had one house that I 533 00:26:48,960 --> 00:26:53,159 Speaker 2: had built another spec house, built it, refinanced it, the 534 00:26:53,200 --> 00:26:55,600 Speaker 2: bank approved the loan. I think it was about two 535 00:26:55,640 --> 00:26:57,960 Speaker 2: point two million at the time. Ended up the bank 536 00:26:58,040 --> 00:27:00,800 Speaker 2: ended up selling that house for about eight hundreds, which 537 00:27:00,920 --> 00:27:05,160 Speaker 2: was less than the costs of the materials I put 538 00:27:05,200 --> 00:27:05,840 Speaker 2: into the house. 539 00:27:06,359 --> 00:27:09,560 Speaker 1: Okay, so you can argue, oh, California, blah blah blah, Well. 540 00:27:10,000 --> 00:27:11,760 Speaker 2: You don't know my zip code. You don't know what happened. 541 00:27:11,760 --> 00:27:16,080 Speaker 2: It dropped really fast, and Orange County, California, Southern California 542 00:27:16,359 --> 00:27:19,639 Speaker 2: is sort of like the epicenter of the mortgage market. 543 00:27:20,440 --> 00:27:23,320 Speaker 2: So it was abnormally hit hard. And so in this area, 544 00:27:23,600 --> 00:27:25,520 Speaker 2: we couldn't afford our standard of living. We didn't have 545 00:27:25,560 --> 00:27:28,240 Speaker 2: our income, we didn't have our asset prices, and we 546 00:27:28,280 --> 00:27:30,080 Speaker 2: couldn't afford our standard of living. 547 00:27:30,240 --> 00:27:31,040 Speaker 1: The same thing. 548 00:27:31,400 --> 00:27:34,399 Speaker 2: It was another crash that happened. Okay, Now, if you're 549 00:27:34,400 --> 00:27:36,160 Speaker 2: just tune in near listening to the Mark Mass Show, we're 550 00:27:36,160 --> 00:27:39,960 Speaker 2: talking about the two types of crashes, the inflationary crash 551 00:27:40,000 --> 00:27:41,560 Speaker 2: and the deflationary crash. 552 00:27:41,640 --> 00:27:42,199 Speaker 1: And I want to. 553 00:27:42,200 --> 00:27:45,920 Speaker 2: Talk about next how you can prepare to not just survive, 554 00:27:46,000 --> 00:27:48,680 Speaker 2: but to thrive in what's coming next. I'll be back 555 00:27:48,680 --> 00:27:50,840 Speaker 2: with more a minute. Don't go away, We're back, all right, 556 00:27:50,880 --> 00:27:52,440 Speaker 2: Welcome back. If you're just too near listening to the 557 00:27:52,480 --> 00:27:56,040 Speaker 2: Mark Mass show. We're talking about the reverse crash, the 558 00:27:56,080 --> 00:27:59,879 Speaker 2: reverse market crash, and why I think everybody's expecting the 559 00:28:00,240 --> 00:28:02,720 Speaker 2: wrong thing and what we're really going to get is 560 00:28:02,800 --> 00:28:05,440 Speaker 2: something completely different. So we talked about the two types 561 00:28:05,480 --> 00:28:09,000 Speaker 2: of crashes, inflation ay crash and a deflation air crash, 562 00:28:09,160 --> 00:28:12,080 Speaker 2: all right, and most people are expecting a deflationary crash. 563 00:28:12,480 --> 00:28:15,440 Speaker 2: Plenty of people online, I won't even drop their names, 564 00:28:15,440 --> 00:28:17,119 Speaker 2: but a lot of people online saying that the stock 565 00:28:17,160 --> 00:28:19,720 Speaker 2: market is going to drop by eighty percent, the home 566 00:28:19,800 --> 00:28:23,040 Speaker 2: market's going to crash by whatever, fifty percent, and. 567 00:28:23,000 --> 00:28:23,760 Speaker 1: On and on and on. 568 00:28:24,800 --> 00:28:27,080 Speaker 2: That has happened in history, all right, it has happened 569 00:28:27,119 --> 00:28:30,400 Speaker 2: in history. But I think they're expecting the wrong war. 570 00:28:30,440 --> 00:28:31,760 Speaker 2: And why do I mean this. I mean, I've made 571 00:28:31,760 --> 00:28:32,639 Speaker 2: a lot of video. I don't want to go to 572 00:28:32,680 --> 00:28:35,640 Speaker 2: dive deep into this, but we're in a situation now 573 00:28:35,760 --> 00:28:38,400 Speaker 2: in the United States and really developed world where we 574 00:28:38,480 --> 00:28:42,280 Speaker 2: have so much debt. We're in a debt based monetary system, 575 00:28:42,280 --> 00:28:43,920 Speaker 2: so that means that when you go and get a 576 00:28:43,960 --> 00:28:46,080 Speaker 2: loan a house, a car, a boat, motorcycle loan, that 577 00:28:46,200 --> 00:28:49,640 Speaker 2: money is created into existence by the issuance of that debt. 578 00:28:49,840 --> 00:28:51,720 Speaker 2: And so they are going to give you a loan 579 00:28:51,760 --> 00:28:54,000 Speaker 2: for the eight thousand dollars to buy a motorcycle, and 580 00:28:54,040 --> 00:28:55,880 Speaker 2: you're going to take that eight thousand and go give 581 00:28:55,880 --> 00:28:59,800 Speaker 2: it to somebody. So those dollars were created out of 582 00:29:00,400 --> 00:29:04,400 Speaker 2: and the dollars are a liability. The debt is the asset. 583 00:29:04,960 --> 00:29:09,080 Speaker 2: The debt is the asset. The boat, the motorcycle, that's 584 00:29:09,120 --> 00:29:10,360 Speaker 2: the asset. Okay. 585 00:29:11,240 --> 00:29:12,160 Speaker 1: But here's the problem. 586 00:29:12,200 --> 00:29:15,680 Speaker 2: If this becomes a deflationary crash and the asset prices 587 00:29:15,720 --> 00:29:19,080 Speaker 2: start to fall, then those assets that are being used 588 00:29:19,120 --> 00:29:22,400 Speaker 2: as collateral are no longer good and so then they 589 00:29:22,680 --> 00:29:25,680 Speaker 2: whoever has these loans have to post up more collateral 590 00:29:26,240 --> 00:29:27,520 Speaker 2: and this becomes what's known as the. 591 00:29:27,560 --> 00:29:28,720 Speaker 1: Death debt spiral. 592 00:29:28,920 --> 00:29:30,800 Speaker 2: And we're there I talk about this all the time, 593 00:29:30,840 --> 00:29:34,120 Speaker 2: and we're witnessing basically a showdown between the FED, the 594 00:29:34,160 --> 00:29:35,880 Speaker 2: Federal Reserve, the Central Bank of the United States, and 595 00:29:35,920 --> 00:29:40,120 Speaker 2: the US Treasury, the government and the government. The treasury 596 00:29:40,240 --> 00:29:43,200 Speaker 2: is spending so much money, issuing so much debt. 597 00:29:43,360 --> 00:29:44,560 Speaker 1: There's not enough appetite for that. 598 00:29:45,200 --> 00:29:48,520 Speaker 2: And unless somehow miraculously the US government cuts through budget 599 00:29:48,520 --> 00:29:52,920 Speaker 2: by fifty percent, which probably has pretty much a zero chance, 600 00:29:52,960 --> 00:29:55,640 Speaker 2: a zero zero zero, zero point zero zero one percent 601 00:29:55,680 --> 00:29:59,480 Speaker 2: chance of happening, then the Fed is going to have 602 00:29:59,560 --> 00:30:02,480 Speaker 2: to stock tightening. They're gonna have to stop letting selling 603 00:30:02,480 --> 00:30:04,240 Speaker 2: these treasures into the market, and they're going to have 604 00:30:04,400 --> 00:30:07,280 Speaker 2: to start to do quantitative easying. They'll probably call it 605 00:30:07,280 --> 00:30:10,200 Speaker 2: something different. They have to buy these treasuries and they're gonna 606 00:30:10,160 --> 00:30:12,240 Speaker 2: have to lower rates. I've talked to us about this extensively. 607 00:30:12,360 --> 00:30:15,440 Speaker 2: Why this has to happen. Janet Yellen, the head of 608 00:30:15,440 --> 00:30:19,640 Speaker 2: the US Treasury, the government, she said that Kableska. I 609 00:30:19,680 --> 00:30:21,480 Speaker 2: did a YouTube video on this on my main YouTube channel, 610 00:30:21,480 --> 00:30:24,240 Speaker 2: Mark Moss, and I talked about how she said that 611 00:30:26,560 --> 00:30:30,600 Speaker 2: rates would average one one percent of GDP for the 612 00:30:30,600 --> 00:30:32,800 Speaker 2: rest of the decade, and I broke down the math 613 00:30:32,880 --> 00:30:34,520 Speaker 2: of how you get to that, and that means that 614 00:30:34,560 --> 00:30:36,800 Speaker 2: the FED funds rate would be less than one percent 615 00:30:37,080 --> 00:30:39,400 Speaker 2: on average for the rest of the decade. All right, 616 00:30:39,560 --> 00:30:41,960 Speaker 2: rates are coming down. The Fed's going to print That's 617 00:30:41,960 --> 00:30:44,760 Speaker 2: what's going to happen. If they don't. If they choose 618 00:30:44,880 --> 00:30:48,520 Speaker 2: not to, then the whole thing falls apart, and the 619 00:30:49,360 --> 00:30:52,920 Speaker 2: you know, the corporatetocracy, if you will, the corporations and 620 00:30:52,920 --> 00:30:54,800 Speaker 2: the bankers that sort of control and run the world 621 00:30:54,920 --> 00:30:56,640 Speaker 2: will all get wiped out and they'll lose everything. And 622 00:30:56,680 --> 00:30:58,760 Speaker 2: they don't want that to happen. No nation with the 623 00:30:58,800 --> 00:31:01,640 Speaker 2: ability to print money would allow that to happen. They 624 00:31:01,680 --> 00:31:05,560 Speaker 2: go into hyperinflation. And I've done videos to show how 625 00:31:05,600 --> 00:31:07,600 Speaker 2: this has changed since two thousand and eight and into 626 00:31:07,600 --> 00:31:10,120 Speaker 2: twenty nineteen, into twenty twenty, and what I expect now, 627 00:31:10,120 --> 00:31:13,200 Speaker 2: and so what I expect is massive amounts of money 628 00:31:13,200 --> 00:31:15,880 Speaker 2: printing and more inflation. I've said it over and over 629 00:31:15,880 --> 00:31:18,280 Speaker 2: and over for the last year. I believe that inflation 630 00:31:18,440 --> 00:31:20,320 Speaker 2: will continue to rage and get worse through the end 631 00:31:20,320 --> 00:31:21,920 Speaker 2: of the decade, and we'll probably see in the United 632 00:31:21,960 --> 00:31:25,160 Speaker 2: States double digit inflation to maybe even higher for a 633 00:31:25,200 --> 00:31:29,240 Speaker 2: couple of years. But here's the thing that will lead 634 00:31:29,280 --> 00:31:32,239 Speaker 2: to an inflationary bust sort of the same thing as 635 00:31:32,240 --> 00:31:33,840 Speaker 2: a deflation. I bust, you're not gonna be able to 636 00:31:33,840 --> 00:31:37,040 Speaker 2: form your stand of living. But here's where it's different, 637 00:31:37,280 --> 00:31:40,080 Speaker 2: all right, Inflation is a double edged sword. You hear 638 00:31:40,160 --> 00:31:42,920 Speaker 2: that the rich get richer, right, and the poor get poor. 639 00:31:43,240 --> 00:31:44,360 Speaker 2: Why do the rich get richer. 640 00:31:44,400 --> 00:31:45,960 Speaker 1: The rich get richer for two reasons. 641 00:31:46,440 --> 00:31:51,520 Speaker 2: One, they own assets. Assets benefit from inflation. The poor 642 00:31:51,560 --> 00:31:55,160 Speaker 2: get poor because they don't own assets. All right, So 643 00:31:55,240 --> 00:31:57,800 Speaker 2: if I own assets, I own a lot of real estate. 644 00:31:58,440 --> 00:32:02,360 Speaker 2: For example, I own bitcoin, and I own inflation versus assets, 645 00:32:02,360 --> 00:32:05,840 Speaker 2: we'll talk about those. Those will do very good in 646 00:32:05,880 --> 00:32:08,840 Speaker 2: times of high inflation. If you own no assets, it's 647 00:32:08,880 --> 00:32:11,280 Speaker 2: not good for you. The other thing is that the 648 00:32:11,400 --> 00:32:14,440 Speaker 2: rich get richer because they can control their income. They 649 00:32:14,480 --> 00:32:18,000 Speaker 2: own businesses and they can the businesses can raise their 650 00:32:18,160 --> 00:32:22,240 Speaker 2: prices as inflation eats into that, or their contractors or whatever, 651 00:32:22,280 --> 00:32:25,520 Speaker 2: and they can. They can keep their income up with 652 00:32:25,600 --> 00:32:28,480 Speaker 2: the rate of inflation. That's why the rich get richer. Now, 653 00:32:28,760 --> 00:32:30,120 Speaker 2: if you want to capitalize, if you want to be 654 00:32:30,120 --> 00:32:31,560 Speaker 2: part of the rich, then you do the same things. 655 00:32:32,000 --> 00:32:35,800 Speaker 2: You own assets and you make sure that your income 656 00:32:35,920 --> 00:32:38,040 Speaker 2: can go up with the rate of inflation. You can 657 00:32:38,080 --> 00:32:40,320 Speaker 2: capitalize on it. You don't have to be a victim 658 00:32:40,360 --> 00:32:43,800 Speaker 2: to inflation. You can actually profit from this. Now, let's 659 00:32:43,840 --> 00:32:49,360 Speaker 2: just use an example. So in Turkey, for example, the 660 00:32:49,360 --> 00:32:52,280 Speaker 2: Turkish leer has lost nine about ninety five percent to 661 00:32:52,320 --> 00:32:55,280 Speaker 2: the US dollar in five years. So if you lived 662 00:32:55,320 --> 00:32:56,720 Speaker 2: in Turkey and you had a time machine, what would 663 00:32:56,720 --> 00:32:58,720 Speaker 2: you do well to go back five years and I 664 00:32:58,720 --> 00:33:01,240 Speaker 2: would get rid of all my Tish lira and I'd buy. 665 00:33:01,120 --> 00:33:03,480 Speaker 1: US dollars instead. Okay, that's one way. 666 00:33:03,760 --> 00:33:05,400 Speaker 2: Now, A better way to do it would by I 667 00:33:05,400 --> 00:33:08,120 Speaker 2: would take on as much debt in Turkish lira as 668 00:33:08,160 --> 00:33:11,960 Speaker 2: I could, and that way my debt gets inflated away. 669 00:33:12,000 --> 00:33:13,520 Speaker 2: Then I can pay it back with dollars and it's 670 00:33:13,600 --> 00:33:16,120 Speaker 2: last ninety five percent of its value. 671 00:33:17,600 --> 00:33:18,360 Speaker 1: That's what's happening. 672 00:33:18,440 --> 00:33:21,240 Speaker 2: That's how you win in an inflationary environment that we're 673 00:33:21,240 --> 00:33:24,520 Speaker 2: witnessing right now, which is why I have debt and 674 00:33:24,560 --> 00:33:27,840 Speaker 2: I have assets that will go up. Now, if you're 675 00:33:27,880 --> 00:33:32,000 Speaker 2: preparing for a deflationary crash, what's happening is you're in 676 00:33:32,040 --> 00:33:35,480 Speaker 2: cash and you're sitting on the sidelines. You've seen Michael Berry, 677 00:33:35,600 --> 00:33:41,360 Speaker 2: famous from The Big Short, last November tweet sell January, 678 00:33:41,480 --> 00:33:44,040 Speaker 2: he tweeted, sell, sell everything. 679 00:33:43,800 --> 00:33:45,400 Speaker 1: And he deleted his Twitter account. 680 00:33:45,680 --> 00:33:47,280 Speaker 2: You have all these people telling you the crash is coming, 681 00:33:47,320 --> 00:33:49,440 Speaker 2: the crash is coming. Sell your assets, go to cash, 682 00:33:49,480 --> 00:33:53,400 Speaker 2: Go to cash, and you've been sitting in cash and 683 00:33:53,440 --> 00:33:56,480 Speaker 2: the stock market's up twenty five percent on what market 684 00:33:56,520 --> 00:34:00,320 Speaker 2: you're looking at, you've lost money by sitting in cash. 685 00:34:01,000 --> 00:34:04,040 Speaker 2: All right, So if you're preparing for a deflationary crash 686 00:34:04,120 --> 00:34:07,360 Speaker 2: like two thousand and eight, like two thousand, et cetera, 687 00:34:07,640 --> 00:34:10,200 Speaker 2: then you should you should sit in cash. That way, 688 00:34:10,360 --> 00:34:13,360 Speaker 2: when asset prices drop, home prices go down by fifty percent, 689 00:34:13,480 --> 00:34:16,640 Speaker 2: et cetera, you can go buy more houses. But what 690 00:34:16,800 --> 00:34:20,120 Speaker 2: if they if the asset prices don't go down, you're 691 00:34:20,160 --> 00:34:22,400 Speaker 2: sitting in cash and the asset prices. 692 00:34:22,080 --> 00:34:24,080 Speaker 1: Go up, then what happens? 693 00:34:25,040 --> 00:34:27,240 Speaker 2: What happens if you sell your bitcoin today? What happens 694 00:34:27,239 --> 00:34:29,799 Speaker 2: if you sell your house today hoping for a better 695 00:34:29,840 --> 00:34:32,880 Speaker 2: price in three years, but you don't get a better price. 696 00:34:32,719 --> 00:34:33,520 Speaker 1: Instead it goes up. 697 00:34:34,160 --> 00:34:36,160 Speaker 2: What happens if you don't own any assets. Let's say 698 00:34:36,160 --> 00:34:38,600 Speaker 2: that you're a millennium and you want to buy your 699 00:34:38,600 --> 00:34:42,680 Speaker 2: first home. Well, I'm not going to buy now because 700 00:34:42,840 --> 00:34:45,239 Speaker 2: you know it's too expensive. Rates are too high, and 701 00:34:45,280 --> 00:34:47,640 Speaker 2: my down payment doesn't buy me enough. So if I 702 00:34:47,680 --> 00:34:50,239 Speaker 2: wait two or three years from now, I could buy 703 00:34:50,280 --> 00:34:53,719 Speaker 2: a bigger house for the same amount of money. 704 00:34:53,760 --> 00:34:54,760 Speaker 1: But what if home. 705 00:34:54,600 --> 00:34:57,000 Speaker 2: Prices go up by fifty percent like they just did 706 00:34:57,040 --> 00:35:00,000 Speaker 2: over the last thirty six months, don't think it can happen. 707 00:35:00,200 --> 00:35:02,839 Speaker 2: Well it did, then what happens, Well, now you're buying 708 00:35:02,840 --> 00:35:05,440 Speaker 2: an even smaller house. You see a lot of the 709 00:35:05,440 --> 00:35:07,239 Speaker 2: reasons I broke. I broke the whole real estate market 710 00:35:07,280 --> 00:35:08,600 Speaker 2: down in like a week or two ago. Go check 711 00:35:08,640 --> 00:35:10,520 Speaker 2: that out on the podcast Mark Maushow if you want 712 00:35:10,560 --> 00:35:13,200 Speaker 2: to get that math. But I showed why the real 713 00:35:13,280 --> 00:35:15,719 Speaker 2: estate market isn't crashing, and I explained how. One of 714 00:35:15,760 --> 00:35:18,040 Speaker 2: the reasons why is a lot of most of the 715 00:35:18,040 --> 00:35:20,799 Speaker 2: existing homeowners have equity, so when they sell their home, 716 00:35:20,840 --> 00:35:22,840 Speaker 2: they can go buy another home because they have hundreds 717 00:35:22,840 --> 00:35:25,120 Speaker 2: of thousand dollars equity they can just put down. But 718 00:35:25,200 --> 00:35:28,360 Speaker 2: if you don't own a home, you don't have hundreds 719 00:35:28,360 --> 00:35:30,879 Speaker 2: of thousand dollars equity, it's very difficult and all you'll 720 00:35:30,920 --> 00:35:34,680 Speaker 2: do is fall further and further behind, missing the proverbial boat, 721 00:35:34,800 --> 00:35:39,840 Speaker 2: so to speak. All Right, so a deflationary bust would 722 00:35:39,840 --> 00:35:42,520 Speaker 2: be better for most people. If all the asset price 723 00:35:42,560 --> 00:35:45,399 Speaker 2: is dropped by sixty eighty percent, then it gives all 724 00:35:45,400 --> 00:35:48,759 Speaker 2: the millennials and everyone a chance to get in at 725 00:35:48,800 --> 00:35:51,160 Speaker 2: a better price. But if they don't, if they just 726 00:35:51,280 --> 00:35:54,120 Speaker 2: keep going up, there is no better price. And unfortunately, 727 00:35:54,239 --> 00:35:57,000 Speaker 2: that's what I believe is coming ahead. Now. You can 728 00:35:57,040 --> 00:36:01,439 Speaker 2: prepare yourself for this in multiple ways. One, you want 729 00:36:01,440 --> 00:36:04,880 Speaker 2: to buy assets that are scarce. Okay, this is a 730 00:36:04,960 --> 00:36:08,920 Speaker 2: Vang painting, this is bitcoin, This is lakefront or beachfront property, 731 00:36:09,120 --> 00:36:14,920 Speaker 2: scarce assets. Two, you want to buy energy intensive assets. 732 00:36:15,280 --> 00:36:19,080 Speaker 2: These are commodities, gold, oil, wheat, things like that. They 733 00:36:19,080 --> 00:36:22,000 Speaker 2: take a lot of energy to produce. You do not 734 00:36:22,280 --> 00:36:26,680 Speaker 2: want to hold non scarce and non energy intensive assets. 735 00:36:26,719 --> 00:36:30,400 Speaker 2: These could just be equity specuative plays. It could be 736 00:36:30,520 --> 00:36:33,400 Speaker 2: just random rural real estate. And two, most importantly, you 737 00:36:33,400 --> 00:36:35,840 Speaker 2: want to make sure you're protecting your income. As a 738 00:36:35,840 --> 00:36:37,720 Speaker 2: matter of fact, I just launched a brand new product 739 00:36:37,760 --> 00:36:40,879 Speaker 2: called Capital Creators Playbooks. For every single month, I give 740 00:36:40,880 --> 00:36:44,480 Speaker 2: you a million dollar opportunity, a business, a way to 741 00:36:44,520 --> 00:36:47,319 Speaker 2: make cashule that you can start with right now that 742 00:36:47,400 --> 00:36:49,800 Speaker 2: you don't need money to start. If you want to 743 00:36:49,840 --> 00:36:51,600 Speaker 2: learn about the Capital Creators Playbooks and how you get 744 00:36:51,640 --> 00:36:54,320 Speaker 2: that for free, just go to my website one Markmoss 745 00:36:54,360 --> 00:36:56,920 Speaker 2: dot com. Again, that's one Markmoss dot com. Check out 746 00:36:56,920 --> 00:36:59,759 Speaker 2: the Capital Creators playbooks. But you need to increase your 747 00:36:59,800 --> 00:37:01,520 Speaker 2: income and be able to increase your income and buy 748 00:37:01,560 --> 00:37:05,080 Speaker 2: the right assets, and you're going to get through this, Okay, 749 00:37:05,160 --> 00:37:07,640 Speaker 2: all right. I believe it's an inflation and crass is coming, 750 00:37:07,680 --> 00:37:09,879 Speaker 2: but you can be prepared either way. Now, if you're 751 00:37:09,880 --> 00:37:11,560 Speaker 2: just tune in, you're listening to the Mark Moss Show, 752 00:37:12,000 --> 00:37:13,920 Speaker 2: we talked about the reverse crash. 753 00:37:13,960 --> 00:37:14,680 Speaker 1: Hopefully enjoyed that. 754 00:37:14,760 --> 00:37:16,000 Speaker 2: Let me know, leave me a comment, hit me up 755 00:37:16,000 --> 00:37:18,080 Speaker 2: on social media at one Mark Moss and that's what 756 00:37:18,120 --> 00:37:18,399 Speaker 2: I got. 757 00:37:18,440 --> 00:37:19,120 Speaker 1: Thanks for listening.