Speaker 1: Hello, and welcome back to another episode of The Mark
Speaker 1: Ma Show, where we talk about the decentralized revolution that
Speaker 1: we are seeing happened throughout the world. I've got live
Speaker 1: studio audience going on today cheering for me. Now I'm
Speaker 1: just kidding, just trying out my new app here. But
Speaker 1: we are talking about the decentralized revolution, talking about the
Speaker 1: way the world is changing by looking at it through
Speaker 1: the lens of politics, finance, and technology. Of course, bitcoin
Speaker 1: is this technological revolution that is changing the world. And
Speaker 1: so we're looking at this, um it's like watching paint dry.
Speaker 1: You don't see it happening, but it's happening. And I'm
Speaker 1: trying to narrate this for you so you can understand
Speaker 1: why the world is just so crazy today and how
Speaker 1: you can understand it, and of course how we can
Speaker 1: navigate ourselves through this. And so probably the biggest story,
Speaker 1: that the biggest never ending story, seems to be inflation,
Speaker 1: and I want to talk about that. I know I've
Speaker 1: been talking about it quite a bit, and I'm talking
Speaker 1: about a bit for a couple of reasons, and I'll
Speaker 1: break them down real quickly. Uh, First of all, it's
Speaker 1: a massive, massive problem with massive implications that affects every
Speaker 1: single one of us. I know for myself, Um, I
Speaker 1: drive a truck and uh, it's gone up more than
Speaker 1: double to fill up my gas tank, which is not
Speaker 1: too good now. Luckily for me, my commute is very short,
Speaker 1: just a couple of miles, but I know that here
Speaker 1: in California some people commute an hour each day or
Speaker 1: more and that's a big thing. But it's not just gas.
Speaker 1: I mean it's it's food and so food and energy
Speaker 1: are the two things that we're really being affected by
Speaker 1: the motion. So it's just has massive implications. Now for
Speaker 1: those that make less money, it affects them even more
Speaker 1: because the more you make, the less percentage of your
Speaker 1: total income is taken up by your food and energy.
Speaker 1: But if you're living kind of paycheck to paycheck, it's
Speaker 1: mostly just food and energy that you're buying, and it
Speaker 1: has an enormous effect on there. The other reason why
Speaker 1: I want to talk about it is, uh, because it's
Speaker 1: very misunderstood, and I think intentionally, I think it's intentionally
Speaker 1: um or I think you're being intentionally misled so you
Speaker 1: don't understand what the situation is, so you don't place
Speaker 1: your anger into the right place. But as misunderstood as
Speaker 1: it might be, the leaders, the powers that be, the
Speaker 1: ones that are supposed to be driving the bus, they
Speaker 1: seem to not know anything about what's going on either.
Speaker 1: I got some clips I'm gonna play from you about that.
Speaker 1: So we're gonna look at look at this. I want
Speaker 1: to explain, really what are the two main drivers of this.
Speaker 1: So we'll talk about that. Like I said, we'll talk
Speaker 1: about what's happened in the last couple of years that's
Speaker 1: really pushed us into this level. Um, that's just unsustainable. Um,
Speaker 1: talk about what this catalyst is. It's really gonna get
Speaker 1: the market to drop. Like I said, have some clips
Speaker 1: I'm gonna play from some of our elected leaders and
Speaker 1: non elected leaders what they're saying directly from their mouth. Um,
Speaker 1: we'll look at ways that you can protect yourself from this.
Speaker 1: And then I have something that isn't too good, something
Speaker 1: that the head of the Federal Reserve is saying, and
Speaker 1: I think if you read through the words of what
Speaker 1: he's saying, it looks like it could get even worse.
Speaker 1: So I'm gonna break all that down for you and more.
Speaker 1: Here as we're listening to the markma Show talking about
Speaker 1: the decentralized Revolution, talking about bitcoin, talking about politics, finance
Speaker 1: and technology, and again talking about inflation but giving you
Speaker 1: a whole different perspective on it. So the first thing
Speaker 1: is inflation is very difficult to understand for a bunch
Speaker 1: of different reasons. I'll make this pretty simple for you.
Speaker 1: I like to take these complex subjects and make them
Speaker 1: easy to understand. So um it's it's difficult to understand
Speaker 1: because um there's different definitions for it. So um per.
Speaker 1: The Austrian economics view, inflation is when the money supply increases,
Speaker 1: so you inflate the money supply and then like prices
Speaker 1: going up, supply chains breaking down. That's the result of
Speaker 1: the money supply going up. In today's day and age,
Speaker 1: typically what we call inflation is prices going up, so
Speaker 1: asset price inflation or consumer price inflation. So the government
Speaker 1: reports this inflation or to us it's over eight percent.
Speaker 1: That's the CPI Consumer Price Index. So I take a
Speaker 1: basket of goods, they measure that basket of goods and
Speaker 1: they see how much those prices go up. The reason
Speaker 1: why that's a horrible way to look at it is because, um,
Speaker 1: my basket of goods is different than your basket of goods.
Speaker 1: Certain things like if if you're trying to buy a
Speaker 1: house in Austin, Texas, or on the beach in Miami
Speaker 1: or in southern California, inflation on your home purchase is
Speaker 1: gonna be way different than your home inflation would be
Speaker 1: in Indianapolis or in Kansas City. So it affects us
Speaker 1: all differently. Also, you may not be trying to buy
Speaker 1: a home, maybe I am. You may not be trying
Speaker 1: to go to college or pay for medical care, maybe
Speaker 1: I am. So certain things like Netflix and uh, you know,
Speaker 1: Netflix and pizza, those things haven't gone up very much.
Speaker 1: And if you're not paying for rent, living with your parents,
Speaker 1: watching Netflix, eating pizza, inflation doesn't really bother you. But
Speaker 1: if you're buying home in on the beach in Miami,
Speaker 1: and you're trying to send your daughter to college, um,
Speaker 1: then and you and you have medical bills, than inflations
Speaker 1: hit and you really hard. So you understand, um, Inflation
Speaker 1: is different all over the place, and it affects us
Speaker 1: all differently. So that's why it's a horrible way to
Speaker 1: look at it. UM. And then why do prices go up? Well,
Speaker 1: there's a trillion reasons why prices would go up, and
Speaker 1: so that's why we look at the increase of the money.
Speaker 1: Supply causes all types of distortions that cause prices to
Speaker 1: go up. Now, the powers that be again want to
Speaker 1: intentionally mislead you, and they talk about them in really
Speaker 1: two main ways. And and and really there's four main drivers,
Speaker 1: and so you might hear about these so um one
Speaker 1: of them is called cost push cost push. So cost
Speaker 1: push inflation is the decrease in the aggregate supply of
Speaker 1: goods and services stemming from an increase in the cost
Speaker 1: of production. All right, So first of all, I'm gonna
Speaker 1: I'm gonna give you these four drivers, but put just
Speaker 1: put this in your head. First, all prices drive off
Speaker 1: of supply and demand. If there's more supply, then there
Speaker 1: is demand. Prices come down. If there's more demand and
Speaker 1: there are supply, prices go up. So there are reasons
Speaker 1: why supply and demand would be affected. So cost I'm
Speaker 1: sorry yet, cost push. So when the price of goods
Speaker 1: go up, when commodities go up, when shipping prices go up,
Speaker 1: when less people are working, and companies raise their prices,
Speaker 1: when costs go up, then those those high prices get
Speaker 1: passed onto you, which you know, the cost of production
Speaker 1: going up increases the price you're gonna pay. Cost push. Okay,
Speaker 1: makes sense, It's kind of stupid to explain it, maybe, um.
Speaker 1: And the second one is called demand poll, and the
Speaker 1: demand pulls the increase in accurate demand category categorized by
Speaker 1: four sections of the macroeconomy, households, business, governments, and foreign buyers.
Speaker 1: I think it's ridiculous to break it down like this,
Speaker 1: but demand pull, so when there's extra demand, when there's
Speaker 1: more demand, there is supply, prices go up. I mean,
Speaker 1: it's ridiculous to have to break this down, but this
Speaker 1: is how the government breaks it down, and I think
Speaker 1: it's intentionally meant to um confuse you. Now, there's two
Speaker 1: other contributing factors to inflation that include one an increase
Speaker 1: in the money supply of an economy and to a
Speaker 1: decrease in the demand for the money. So an increase
Speaker 1: in the money supply of the economy. So when you
Speaker 1: increase the money supply, now you have more money chasing
Speaker 1: the same amount of goods. So that's demand pull. So
Speaker 1: they increase the money. All that money creates more demand
Speaker 1: and it pulls the prices higher. So what we've seen
Speaker 1: is kind of two things. So they want to blame
Speaker 1: it on the supply chains breaking down, for example, So
Speaker 1: the supply chains breakdown. Less people are working today, for example,
Speaker 1: they have to pay people more to get them become
Speaker 1: to work. So that's cost push. That's pushing the expenses up.
Speaker 1: It's cost pushing the prices up. But it also why
Speaker 1: is supply chains breaking down? Well, because in the United States,
Speaker 1: we're ordering about products than we were before. Why why
Speaker 1: are we ordering more products because there's so much money,
Speaker 1: which is increased the demand, So the demand is pulling
Speaker 1: the prices up, and the cost is also pushing prices
Speaker 1: up at the same time. Again, just understand supply and demand.
Speaker 1: So we have a food uh you know, massive food inflation,
Speaker 1: not just in the States, all over the world. So
Speaker 1: why are food prices going up because we don't have
Speaker 1: enough food? Energy prices are going up? Why, Well, we
Speaker 1: don't have enough energy. But there's also other reasons. I'm
Speaker 1: not gonna dig super deep into them, and it's probably
Speaker 1: for my my next show, but there's also reasons why
Speaker 1: energy prices are going up, and that's cost push. So
Speaker 1: regulations that are being imposed on farmers growing food, or
Speaker 1: on energy companies getting that food out or I'm sorry,
Speaker 1: the energy out pushes the prices up plus the demand,
Speaker 1: so there's there's different factors. But the reason why I
Speaker 1: wanted to break this down to you first is because
Speaker 1: this demand pull peace. I'm going to circle back to
Speaker 1: it at the end, and once I tell you what
Speaker 1: these people are saying, it's gonna make sense. That's why
Speaker 1: I want to set that up for you. Um, before
Speaker 1: we get into that. You're listening to the Markmas Show
Speaker 1: talking about Bitcoin of the Decentralized Revolution. I got a
Speaker 1: lot more about inflation. Want to come back in a minute,
Speaker 1: so do not go away, all right, welcome back. You
Speaker 1: are listening to them Arkamas Show. We are talking about
Speaker 1: the Decentralized Revolution each and every week, talking about bitcoin, cryptocurrencies,
Speaker 1: of course, politics, finance, and technology as they all merge
Speaker 1: and they all change around. What is happening right now?
Speaker 1: And we've been talking about inflation and I'm trying to
Speaker 1: break down some of the definitions because you're being misled,
Speaker 1: and then we're gonna circle back to that. But it's
Speaker 1: no surprise, right Inflation is the high. It's been highest
Speaker 1: it's been in forty years, no surprise. Homes are high,
Speaker 1: gas is high, food is high. Of course, the two
Speaker 1: main things we need, energy and food are going higher.
Speaker 1: The one thing to keep in mind is the highest
Speaker 1: been in forty years? So what's been this high before? Right?
Speaker 1: No big deal? Yes, But when it was this high before,
Speaker 1: it was in the eighties, and we had to take
Speaker 1: massively drastic actions in order to get the price of
Speaker 1: inflation to come back down under Reagan. Under President Reagan,
Speaker 1: the Fed Secretary Fed Treasuries UH Paul Volker raised interest
Speaker 1: rates drastically to get inflation to come back down. But
Speaker 1: this time we're in a much different place than we
Speaker 1: were were before because now we have massive amounts of debt,
Speaker 1: particularly we have over thirty trillion dollars of federal debt.
Speaker 1: And the problem is if they raise the rates, the
Speaker 1: interest on that debt becomes unsustainable. I mean, it's already
Speaker 1: usustainable as it is, but it becomes um It could
Speaker 1: if if we get you know, interest rates over three percent,
Speaker 1: we could see the interest on that debt becoming more
Speaker 1: than the tax revenue, the income tax revenue the government
Speaker 1: receives that would be drastic, that'd be really, really bad,
Speaker 1: And so we're in a much different place. We didn't
Speaker 1: have that problem in the eighties, and so those tools
Speaker 1: that we used to come back back then we don't
Speaker 1: have today. But how did we get here? Let's walk
Speaker 1: through that real quickly. Um, how did we get here? Well? Easy,
Speaker 1: spending more than you make and living off of credit.
Speaker 1: If you've ever tried it in your household, it doesn't
Speaker 1: last very long. You can live off your whole equity line,
Speaker 1: you can live off your credit cards, but eventually you
Speaker 1: can't pay those bills and that credit runs out. And
Speaker 1: that's exactly how we got here. Like I said before,
Speaker 1: we've been seeing about a ten pc inflation for the
Speaker 1: last hundred years, but it's really accelerated over the last
Speaker 1: two years because of course, the war, the War on COVID,
Speaker 1: and in order to fight that war, in order to
Speaker 1: combat the economic and financial effects of the war, the
Speaker 1: FED did extraordinary measures. And I call it the war
Speaker 1: because obviously it was a war on COVID, but it wasn't.
Speaker 1: It wasn't COVID that was the problem. It was the
Speaker 1: response to it that was the problem. And so the
Speaker 1: entire United States economy and global economies were forced to
Speaker 1: shut down. You had all the small businesses, all the
Speaker 1: mom pop businesses here in Los Angeles, businesses that have
Speaker 1: been around families, you know for multiple generations. Um icons,
Speaker 1: marquee spots in Hollywood gone just out of business. Everyone's
Speaker 1: just shut down. And so in order to combat that war,
Speaker 1: then they introduced a couple of things. One, they brought
Speaker 1: interest rates to zero ZERP as we call it zero
Speaker 1: interest rate policies ZIRP. Did that, did that again. They
Speaker 1: started unlimited que quantitative easing UM. And then they used
Speaker 1: that quantitative easy and that that money that monitor that
Speaker 1: new monetary money that they've created to buy mortgage backed securities,
Speaker 1: nbs U S treasuries, corporate debt um issued by corporations,
Speaker 1: corporate debt, e t fs, municipal debts, so that states, counties,
Speaker 1: things like that, see the certificate of deposits, student loans,
Speaker 1: and auto loans. So they started all used all this money,
Speaker 1: start buying all that up. And the total bill for
Speaker 1: the FEDS interventions of this were five trillion dollars. Now,
Speaker 1: if we put that another way, the FED was printing
Speaker 1: an amount of money equal to Spain's economy every twelve months,
Speaker 1: and the entire output of their economy we were creating
Speaker 1: in a thin air every twelve months. Now to put
Speaker 1: this into uh into something you can understand, because I
Speaker 1: this is difficult. We throw these numbers around million, billion,
Speaker 1: trillion whatever. A trillion, five trillion is five thousand billions
Speaker 1: or five million millions. It's a lot. And if you
Speaker 1: laid out five trillion dollars in one bills lengthwise, back
Speaker 1: to back to back to back, it would go from
Speaker 1: the Earth to the moon ten times. It's a lot.
Speaker 1: It's a lot of bills. So they stimulated all the
Speaker 1: way through the crash, and it wasn't so much even
Speaker 1: that they stimulated through the crash. The problem was that
Speaker 1: they continued to stimulate for way too long. So as
Speaker 1: the market started to recover, as um unemployment continue to drop,
Speaker 1: the economy started recover, business started opening back up again,
Speaker 1: they didn't get their foot off the gas pedal. They
Speaker 1: kept it going. Now, if you look at a chart
Speaker 1: of CPI consumer price Index, which is the number the
Speaker 1: government gives us to measure inflation, you can see that
Speaker 1: it was going along, going along, and then just started
Speaker 1: spiking almost straight up vertical. A chart that would be
Speaker 1: so simple that a third grader could look at that
Speaker 1: chart and could go, wait a minute, that's the problem.
Speaker 1: Look at this number going straight up. You could see that.
Speaker 1: And what's what's astonishing is that if a third grader
Speaker 1: could see it, how did the FED nancy it? So?
Speaker 1: The FED has over four hundred economists pH d s
Speaker 1: on their payroll, a hundred and fifty research assistance on payroll,
Speaker 1: have access to the best real time economic data, the
Speaker 1: best and the brightest that we can produce. And yet
Speaker 1: Janet Yelling from the Treasury and j Powe from the Fed,
Speaker 1: we're both blindsided. They're both blindsided by this. As a
Speaker 1: matter of fact, let's hear it directly from them. I
Speaker 1: got a clip here, let's go ahead and play this
Speaker 1: of Janet Yell and talking about her and Jerome Powell,
Speaker 1: and I said that inflation would be transitory. What I
Speaker 1: was not anticipating was a scenario in which we would
Speaker 1: end up contending with multiple variants of COVID. It would
Speaker 1: be scrambling our economy and global supply chains. And I
Speaker 1: was not envisioning um impacts on food and energy prices.
Speaker 1: We've seen mm hmm. So they were blindsided. They didn't
Speaker 1: envision the impacts on food and energy. They didn't think
Speaker 1: through what would happen if you create five trillion more
Speaker 1: currency chasing limited goods and services. Again, this is elementary.
Speaker 1: If you increase the demand and you don't increase the supplier.
Speaker 1: In this case, you reduced the supply and increase the
Speaker 1: demand at the same time. What's going to happen you
Speaker 1: already know. But of course Jerome Power and Jenny Yellen said,
Speaker 1: we didn't think through this. We didn't think through what
Speaker 1: would happen to food. We didn't think through what would
Speaker 1: happen to energy. And they kept saying, first, it's not
Speaker 1: a problem, is not a problems, not a problem. It
Speaker 1: wasn't a problem. We can't we can't get the inflation
Speaker 1: we want now. Like I said, if you look at
Speaker 1: the chart, or you just think through it for a minute,
Speaker 1: if we increased this money and we decreased the goods
Speaker 1: and services price go up, anyone could tell you that.
Speaker 1: An elementary person could tell you this. I had played
Speaker 1: a clip before on the radio show before We're It
Speaker 1: was a clip from Oh Christinian and Georgina from the
Speaker 1: I M. F and it was with her and Jerome
Speaker 1: Powell and yelling I believe and they were laughing, and
Speaker 1: Krystellina from the I M S said, UM, I guess
Speaker 1: we didn't think through the unintended consequences of this. And
Speaker 1: then she said, I guess we're sort of like a
Speaker 1: bunch of eight year olds playing soccer. Instead of covering
Speaker 1: the field, we just chased the ball around. So she said,
Speaker 1: we're like eight year olds. But to my point, eight
Speaker 1: year olds or third graders could have spotted the problem
Speaker 1: and yet they didn't. UM. I have some more clips
Speaker 1: that I want to UM play when I get back,
Speaker 1: because the story is changing now. It went from not
Speaker 1: a problem to uh, we have it under control too.
Speaker 1: It's it's just transitory, and now the whole art of
Speaker 1: completely change. I'm gonna play these clips. You can hear
Speaker 1: it directly from their mouth, and then I'll come back
Speaker 1: to the point we talked about about. Unfortunately, UM the
Speaker 1: solutions that they have and and they're not good. You're
Speaker 1: listening to the Mark ma Show. We're talking about the
Speaker 1: decentralized revolution. The world is changing because bitcoin and decentralized
Speaker 1: technology is changing it. We're looking at through the lens
Speaker 1: of politics, finance, and technology. I'm gonna play these clips,
Speaker 1: keep digging into inflation so you can understand what comes next.
Speaker 1: I have that and more when I come back, So
Speaker 1: don't go away, all right, welcome back. You were listening
Speaker 1: to the Mark Ma Show. I'm narrating you through this
Speaker 1: decentralized revolution, is the world changes from global centrally controlled
Speaker 1: powers into a decentralized world, which of course is being
Speaker 1: spearheaded by bitcoin and decentralized technology. And looking at through
Speaker 1: the lens of politics, finance, and technology. We're talking specifically
Speaker 1: about inflation and the central planners, the central planners of
Speaker 1: the Central Bank, and how bad they have screwed this
Speaker 1: up in their own words. We just played a clip
Speaker 1: of Janet Allen talking about herself and Jerome pal and
Speaker 1: they didn't think through that increasing all this money supply
Speaker 1: would cause these problems, because nobody understands that if you
Speaker 1: increase the money supply and you decrease the amount of
Speaker 1: goods that you get inflation. I guess they don't understand that,
Speaker 1: which is crazy. But they went from like I said,
Speaker 1: from it's not a problem too, it's manageable too. It's
Speaker 1: just transitory is going to go away too. Oh crap,
Speaker 1: we have a big problem on our hands. And let's
Speaker 1: play this other clip here. We have check this out. Um,
Speaker 1: it's true, Powell indicated himself. Um, both of us probably
Speaker 1: could have used a better term than transitory. I do
Speaker 1: expect inflation to remain high, although I very much hoped
Speaker 1: that it will be coming down now mm hmm. So
Speaker 1: they should have used a word better than transitory, like persistent,
Speaker 1: maybe out of control potentially, or how about our fault
Speaker 1: me any of one of those words could have could
Speaker 1: have worked. Um, but no, they just said well it's
Speaker 1: transitory to like, well, I guess we could have used
Speaker 1: the better word, and they went from we can manage this,
Speaker 1: and so this is what you have to pay attention
Speaker 1: when these people talk. You need to really dissect every word.
Speaker 1: It went from we can manage this too, now we hope,
Speaker 1: now we hope. But it's even worse than that. All right,
Speaker 1: So now they've they've gone from we can manage it
Speaker 1: to um, basically lied to you or we didn't know better.
Speaker 1: So is it a lie or are they really incompetent?
Speaker 1: In my opinion, either way, there's a problem if my
Speaker 1: You know, if if if one of your friends, one
Speaker 1: of your business associates, your employees, your wife, if they
Speaker 1: lied to you or they are incompetent, you would probably
Speaker 1: remove them either way, either way, whether they're incompetent or
Speaker 1: whether it's a lie. But now they're changing this narrative,
Speaker 1: so we should hope. But Secretary Yelling came out and said, um,
Speaker 1: now in a report about a third of US inflation
Speaker 1: is as a rule, is a result of new and
Speaker 1: used cars, all due to the shortage of semiconductors. Really,
Speaker 1: see now they're trying to shift the blame. They're trying
Speaker 1: to shift them, and they're trying to change that anybody else.
Speaker 1: So now a third of the problem with inflation as
Speaker 1: a result of new news cars. Does the shortage of
Speaker 1: semiconductors explain the twent you're over your house price increases?
Speaker 1: Does it? Does it? Does it explain that? Does it
Speaker 1: explain the food going up? Right? Does it explain the
Speaker 1: gas going up? With the food and energy? Of the
Speaker 1: two big things? Does use cars or semiconductors? Well, first
Speaker 1: of all, used cars have already been built. Sem semiconductors
Speaker 1: don't put as many new cars. If there's not many
Speaker 1: new cars. I guess they buy used cars. That makes sense.
Speaker 1: But why does food go up? Why does gas go up?
Speaker 1: Why do homes go up? And the point is it doesn't.
Speaker 1: The point is it doesn't. So but but my point
Speaker 1: is of trying to shift the narrative and then the
Speaker 1: narrative change to senator Senator Elizabeth Warren, who really cares
Speaker 1: for little guys. We saw her last Thanksgiving, last November saying,
Speaker 1: the problem with inflation is these greedy corporations. That's always
Speaker 1: her line. It's always these greedy corporations trying to take
Speaker 1: it to you. And of course we need the government
Speaker 1: to protect us from these greedy corporations. In the last
Speaker 1: November she said it was the turkey manufacturers. It was
Speaker 1: their fault. They're gouging you on the price of turkeys,
Speaker 1: and somebody, you know, me and the government, we should
Speaker 1: tell them how to run their business, so they don't.
Speaker 1: They don't gouge you on turkey. So it went from um,
Speaker 1: all this money we printed caused the problem. We didn't.
Speaker 1: We didn't. We didn't think about it. We didn't understand
Speaker 1: that it would do this. We just didn't think through
Speaker 1: that too. But don't worry we have it under control,
Speaker 1: to oh it's transitory, to oh, shoot, it's a problem,
Speaker 1: to now blaming it, Oh, it's on semi conductors. And
Speaker 1: then we have Elizabeth Warren saying it's big corporations. We're
Speaker 1: reading this quote. Big corporations have been price gouging consumers
Speaker 1: and using inflation as cover to pump up their profits
Speaker 1: while Americans struggle with rising costs. How dare they? How
Speaker 1: dare they pump up profits? Um using inflation is covered.
Speaker 1: We need to enforce our antitrust laws and crack down
Speaker 1: on corporate price gouging to bring costs down. She has
Speaker 1: she knows absolutely zero. She knows less than zero about economics.
Speaker 1: One o one, all right, in a free market, you
Speaker 1: don't have price gouging. If I decide that I want
Speaker 1: to sell my gas for twenty bucks a gallon and
Speaker 1: everybody else is selling it for six bucks a gallon,
Speaker 1: how much business am I going to get? I can't gouge. Right,
Speaker 1: If if a business wants to gouge you on the
Speaker 1: price of their turkeys, someone else is gonna sell you
Speaker 1: turkeys for cheaper. Right, that creates an opportunity. So in
Speaker 1: a free market, economics one oh one. We're always looking
Speaker 1: for that. If someone's charging more, I can charge less.
Speaker 1: I'm gonna do that. Through competition, prices always come down.
Speaker 1: We get better products, we get better service, we get
Speaker 1: better prices. Only through their cracking down does it give
Speaker 1: the businesses the ability to charge more. So what do
Speaker 1: I mean by that? Through their cracking down and passing
Speaker 1: more laws and regulations, what it does is it protects
Speaker 1: these big businesses by putting all these barriers, all these gateways,
Speaker 1: so new competition isn't able to come into the market
Speaker 1: and compete. It's through their cracking down. They want to
Speaker 1: spin this narrative that it's the it's the reason why
Speaker 1: we have inflation. Isn't isn't our policies. Isn't because we
Speaker 1: didn't think through all the problems. Isn't because we didn't
Speaker 1: print five show due. It's because of these corporations. And
Speaker 1: if you let us as the government have complete control
Speaker 1: over the economy, then we could magically make the prices
Speaker 1: better for you. That's what she's saying. So just notice
Speaker 1: this narrative shifting, and it's shifted even more. And this
Speaker 1: is one that I just can't get over. If you're
Speaker 1: not aware. If you're not aware of the White House
Speaker 1: Press secretary, UM got we had to change over there.
Speaker 1: I don't I don't know all the reasons Jen Zaki
Speaker 1: is not with us. I believe what I've looked into
Speaker 1: a little bit. We needed more equitable, we need more diversity.
Speaker 1: So we needed a UM black immigrant, UM lesbian, I
Speaker 1: believe because we couldn't have a white person in there.
Speaker 1: So never the case, we hired off of those demographics
Speaker 1: instead of just trying to find the best person for
Speaker 1: the job. And so now we have the new White
Speaker 1: House Press Dietary, Karine Jean Pierre, and now she's trying
Speaker 1: to tell us a completely different narrative about inflation. Let's
Speaker 1: play that. I want to play it directly from her mouth,
Speaker 1: because you wouldn't believe it if I said it. What
Speaker 1: we're trying to say, what I'm trying to say to
Speaker 1: you is that the economy is in a better place
Speaker 1: than it has been historically. And so we feel here
Speaker 1: at this administration and other experts as well, is that
Speaker 1: we feel that we are in a good position to
Speaker 1: take on inflation. We are in a good position to
Speaker 1: really start really working on Wait, um did she say
Speaker 1: that we're in a better position than we have been historically.
Speaker 1: Is that what she said? She said, we're in a
Speaker 1: really good position historically. So remember when inflation was this
Speaker 1: high and tooth in in UH in the eighties, we
Speaker 1: didn't have very any debt and we could just raise
Speaker 1: the interest rates. But today we have thirty one trillion
Speaker 1: dollars worth of debt with over two hundred trillion dollars
Speaker 1: in unfunded liabilities. That's a way better position. That's a
Speaker 1: way better position. This quarter, the first quarter of two
Speaker 1: thousand twenty two, we saw growth g d P growth,
Speaker 1: economic growth go negative. We went from five percent growth
Speaker 1: to minus one point four percent. That's great historically. I
Speaker 1: got more stats. If she says that we're in a
Speaker 1: much better place historically and our economy is in a
Speaker 1: very good place to take on this inflation, well I
Speaker 1: got some stats that are going to tell you otherwise.
Speaker 1: And we're gonna get back to um what they're really
Speaker 1: trying to do here, the sinister plan that they have
Speaker 1: for us, and it goes back to where we started
Speaker 1: with this demand push m demand pull and cost push.
Speaker 1: If you understand those two things. When I get to
Speaker 1: the end, of this, you are going to know what
Speaker 1: is coming next. And like I said, it's not good,
Speaker 1: but we just have to pay attention. What are they saying?
Speaker 1: Each word has been meticulously picked to try to tell
Speaker 1: us this narrative, this spin, this narrative. Their their gas
Speaker 1: lighting you is what they are, their gas lighting them.
Speaker 1: You're listening to the Markmas Show. We're talking about the
Speaker 1: Decentralized Revolution, talking about how the world is changing through
Speaker 1: bitcoin and decentralized technologies, focusing on politics, finance, and technology.
Speaker 1: I got a lot more to cover when I get
Speaker 1: back in a minute, so do not go away, all right,
Speaker 1: Welcome back. You are listening to the Markma Show walking
Speaker 1: you through the Decentralized Revolution as this world shifts, as
Speaker 1: the pendulum swings from speak centralization and back into a
Speaker 1: much fair, much more organic, and much more decentralized world
Speaker 1: being spirit headed by bitcoin and decentralized technologies, looking at
Speaker 1: through the lens of politics, finance, and technology. And we're
Speaker 1: talking specifically about inflation and how your leaders who are
Speaker 1: running supposed to be driving the bus have no clue
Speaker 1: on what they're doing, per per their own words, that's
Speaker 1: what they said and their actions prove that as well.
Speaker 1: So their actions prove it. And they said it out loud.
Speaker 1: I played you the clips. You heard it directly out
Speaker 1: of their own mouth. You wouldn't believe it for me, um,
Speaker 1: And they said it. And and as I said, either
Speaker 1: they're completely incompetent, which their actions show and they admit,
Speaker 1: or they really know what they're doing and they're purposely
Speaker 1: doing a really bad job. Either way, in my opinion,
Speaker 1: is grounds for dismissal. Grounds for dismissal. How do they
Speaker 1: even have a job left? That's what I'd like to know.
Speaker 1: Janet Yellen and her husband have a combined a net
Speaker 1: worth over ten million dollars, despite every single one of
Speaker 1: her public predictions being completely wrong, since he worked at
Speaker 1: the San Francisco Federal Reserve Bank and was head of
Speaker 1: the Federal Reserve and is now head of the Treasury.
Speaker 1: She's been wrong every single time. And she's a public
Speaker 1: servant and she's worth over ten million dollars, and she
Speaker 1: continues to do a horrible job and she still has
Speaker 1: her job. Why she's either completely inept or she's evil.
Speaker 1: Either way, it's a nonstarter for me. Grounds for dismissal.
Speaker 1: But back to this, last clip that I played of
Speaker 1: the new White House Press Secretary Kareem Jean Pierre. She
Speaker 1: came at it from a totally different angle, and this
Speaker 1: is the important piece. They're starting to pivot, and you
Speaker 1: need to pay attention to what they're telling you. So
Speaker 1: she said in the clip that historically, the economy is
Speaker 1: in a really good place, and we think that we
Speaker 1: can just take on the inflation. We're good. We have
Speaker 1: our economy so strong, we have so much money saved up.
Speaker 1: Everybody's so rich they can just afford to pay ten
Speaker 1: dollars a gallon for gas. It's not even gonna matter.
Speaker 1: That's what she said. That was her words. I played
Speaker 1: the clip so as I was looking at that, some
Speaker 1: of the stats so really So let's say historically, so
Speaker 1: UM and I talked about in the eighties, how Um,
Speaker 1: we were able to raise rates to fight inflation. We
Speaker 1: can't do the day because they we have thirty one
Speaker 1: trillion dollars of debt. So historically that's really bad, really
Speaker 1: really bad. Historically, UM, we have GDP Gross Economic Grocery
Speaker 1: measure the health of the economy by how much it's growing. Remember,
Speaker 1: money is not wealth. Goods and services are wealth. Right,
Speaker 1: if we had money on a deserted island, that money
Speaker 1: is no good to us unless we have goods and
Speaker 1: services to buy. And so we want to look at
Speaker 1: the GDP gross domestic product of a nation? Are they
Speaker 1: producing goods and services? And then instead of the five
Speaker 1: percent we were hoping for, it was only negative one
Speaker 1: point four percent? Negative one point four percent. That doesn't
Speaker 1: sound very good, does it? Does that sound historically healthy?
Speaker 1: Histor work in a great way historically in a place
Speaker 1: that we can take on. Uh, these crazy prices. Let's
Speaker 1: see exports declined by five point nine exports. Remember, the
Speaker 1: wealth is in goods and services. China has been able
Speaker 1: to grow so wealthy because they manufacture most of the goods,
Speaker 1: goods and services. Russia, despite all the sanctions that are
Speaker 1: being done on it, are still is still doing amazingly
Speaker 1: well because they export the export things that the world
Speaker 1: actually wants and needs, things like energy, gas and oil,
Speaker 1: things like food. What does the US have? We have services?
Speaker 1: We have Facebook, we have Netflix, we have Google. Those
Speaker 1: are good services. We have financial services, we export dollars.
Speaker 1: What else do we manufacture? Now? In all fairness, the
Speaker 1: United States does does does export a lot of oil
Speaker 1: and energy as well, but our exports declined by five
Speaker 1: Does that mean historically that we're doing great well because
Speaker 1: we're down from where we were, so that that can't
Speaker 1: be um the economy shrinking and inflation is running hot.
Speaker 1: What that means when the inflict when the economy is
Speaker 1: king producing less good than services, less wealth um and
Speaker 1: inflation is running at the same time. So economy is
Speaker 1: going down but prices are going at the same time.
Speaker 1: That's a very bad predicament to be in. It's something
Speaker 1: called stagflation. You might have been hearing about this quite
Speaker 1: a bit lately, and it is not a good situation
Speaker 1: to be in. And as I've been talking about inflation,
Speaker 1: stagflation taking hold in the first time since the seventies.
Speaker 1: Now why seventies is at well, not why that's what happened,
Speaker 1: but there's some other similarities that happened in the seventies.
Speaker 1: So UM energy analysts are predicting that we could have
Speaker 1: fuel rationing in the United States this year and and
Speaker 1: even worse, specifically diesel fuel rationing. Now, if diesel trucks
Speaker 1: are ration on fuel and they don't have fuel to
Speaker 1: drive around, that's a big problem. But that can't happen
Speaker 1: in the United States, right, I mean, we're one of
Speaker 1: the largest energy producers in the world. How could we
Speaker 1: run out of gas. That's ridiculous. It could never happen. Well,
Speaker 1: it did. It happened in the seventies. You'd only be
Speaker 1: able to fill up your car on certain days of
Speaker 1: the week. It did happen in the seventies. Now can
Speaker 1: this be fixed? Oh, I mean it could. Um, you know,
Speaker 1: we could see them try to pivot back. I mean,
Speaker 1: basically they do the opposite of what they're doing. Right.
Speaker 1: The problem is the Federal Reserve is designed for one thing,
Speaker 1: and that's too create money. That's the whole purpose of
Speaker 1: what they created for. Before the Federal Reserve, we had
Speaker 1: the era of free banking and people could just stand
Speaker 1: up their own banks and create their own currencies, and
Speaker 1: they went they went bust all the time, and so
Speaker 1: the Filer Reserve said, hey, we need to be let's
Speaker 1: create the fire Reserve and will backstop all those banks
Speaker 1: and if they go bankrupt, will create money so they
Speaker 1: don't go bankrupt. So that was their whole purpose. And
Speaker 1: as they create this money, they create these distortions in
Speaker 1: the market, This demand poll situation. Um, and it creates
Speaker 1: these distortions in the market. So how can they solve
Speaker 1: this when all they have as a tool is a
Speaker 1: money printer. It's kind of a problem. So um, right,
Speaker 1: all they can do is expand the money supply. That's
Speaker 1: all they can do now, and they want they want
Speaker 1: us to believe that that's a good thing. Right, Like
Speaker 1: a lot of people want to debate this all the time,
Speaker 1: and you may want to debate this, like, we need
Speaker 1: the money supply to expand, right, Something like bitcoin could
Speaker 1: never work because it's a fixed supply. But we can't
Speaker 1: have a growing economy unless the money supply expans. We
Speaker 1: have to have the money spy explaining right, well, that's
Speaker 1: what your textbooks have been telling you first a long time.
Speaker 1: Why because that's the policy of the Federal Reserve. Once
Speaker 1: they want to create money, they can't teach you that
Speaker 1: creating money is bad. Of course, they got to teach
Speaker 1: you that you got to expand the money supply. It's
Speaker 1: not the way it works. We can do a whole
Speaker 1: another show on that. But basically, think about this. Money
Speaker 1: is not wealth. Wealth is goods and services. So you
Speaker 1: take all the wealth, all the goods and services of
Speaker 1: the world and divided by the money. That's that's how
Speaker 1: it works. The money buys the wealth. If you increase
Speaker 1: the money supply, that's going to push the costs of
Speaker 1: the supplies up. So either the value accruising the money
Speaker 1: or the value accruising the wealth. So what does that
Speaker 1: mean if the if if the money, if I value
Speaker 1: accrued in the money, that means that money buys you
Speaker 1: more goods in service in the future. Life would be
Speaker 1: getting easier for you, all right, But they lie to you,
Speaker 1: right We need the money spy the experience. And doesn't
Speaker 1: they feel good when your asset prices go up? Don't
Speaker 1: you want your homegoing up? Don't you want your your
Speaker 1: stocks going up? And so we all cheer for inflation
Speaker 1: because we want those things to happen. All right, But
Speaker 1: here's back to the end of FED. FED Reserve Chairman
Speaker 1: Jerome Powell Warren Thursday that getting inflation under control could
Speaker 1: cause some economic pain. Quote. So a soft landing is
Speaker 1: really just getting back to two percent inflation while keeping
Speaker 1: the labor market strong, and it's quite challenging to accomplish
Speaker 1: that right now. End quote. So what he's saying is
Speaker 1: that to get inflation under control, it was gonna cause
Speaker 1: economic pain. So let's come back all the way full
Speaker 1: circle to where we started. Demand push. So, um, there's
Speaker 1: two ways to solve this energy and food inflation. If
Speaker 1: we need to bring energy prices down, in food prices down,
Speaker 1: what do we need? We need more supply, simple right
Speaker 1: or or the scary, darker, sinister side. As we could
Speaker 1: lower demand, we could lower demand. So if we can't
Speaker 1: bring on the Federal reserve, obviously can't create more energy
Speaker 1: or food, but they could lower the demand by taking
Speaker 1: the money away. If they take the money away, if
Speaker 1: we push gas up to twenty five bucks a gallon,
Speaker 1: how many gallons of gas are you gonna be buying
Speaker 1: every day? Not very many. And so that's the demand
Speaker 1: push the cost poll. They can't affect the cost the
Speaker 1: cost poll. I'm sorry, the cost push because energy is
Speaker 1: what it is. They can't print that, they can't print food.
Speaker 1: But they can affect the demand side by taking the
Speaker 1: money out and crashing the economy, which is exactly what's happening.
Speaker 1: He says right here. It could cause some economic pain.
Speaker 1: End quote. So hopefully you understand what is going on
Speaker 1: the way that we protect ourselves by getting out of
Speaker 1: that financial system altogether and putting our money into things
Speaker 1: that can hold up against this inflation that we're facing.
Speaker 1: You're listening to the markmas Show. We're talking about um
Speaker 1: the decentralized Revolution, talking about as the pendulum swinging from
Speaker 1: a centralized system to a decentralized system, of course, being
Speaker 1: spirit headed by bitcoin and decentralized technology, looking at through
Speaker 1: the lens of politics, finance, and technology. If you're not
Speaker 1: following me on Twitter, you should at one Mark moss
Speaker 1: I post a lot of this as I'm digging through
Speaker 1: this on a regular basis, So send me a message there,
Speaker 1: let me know you hear me. And that's what I
Speaker 1: got for you today. All right, thanks for listening.