WEBVTT - Neverending Story: Inflation 0:00:00.040 --> 0:00:03.120 Hello, and welcome back to another episode of The Mark 0:00:03.240 --> 0:00:08.119 Ma Show, where we talk about the decentralized revolution that 0:00:08.200 --> 0:00:11.559 we are seeing happened throughout the world. I've got live 0:00:11.640 --> 0:00:14.320 studio audience going on today cheering for me. Now I'm 0:00:14.360 --> 0:00:17.119 just kidding, just trying out my new app here. But 0:00:17.680 --> 0:00:20.360 we are talking about the decentralized revolution, talking about the 0:00:20.360 --> 0:00:22.720 way the world is changing by looking at it through 0:00:22.760 --> 0:00:26.400 the lens of politics, finance, and technology. Of course, bitcoin 0:00:26.920 --> 0:00:29.960 is this technological revolution that is changing the world. And 0:00:30.000 --> 0:00:33.800 so we're looking at this, um it's like watching paint dry. 0:00:34.120 --> 0:00:36.680 You don't see it happening, but it's happening. And I'm 0:00:36.720 --> 0:00:38.840 trying to narrate this for you so you can understand 0:00:39.240 --> 0:00:44.040 why the world is just so crazy today and how 0:00:44.080 --> 0:00:45.800 you can understand it, and of course how we can 0:00:45.880 --> 0:00:49.800 navigate ourselves through this. And so probably the biggest story, 0:00:49.920 --> 0:00:55.800 that the biggest never ending story, seems to be inflation, 0:00:56.800 --> 0:00:58.080 and I want to talk about that. I know I've 0:00:58.080 --> 0:00:59.560 been talking about it quite a bit, and I'm talking 0:00:59.560 --> 0:01:01.920 about a bit for a couple of reasons, and I'll 0:01:01.920 --> 0:01:05.200 break them down real quickly. Uh, First of all, it's 0:01:05.200 --> 0:01:10.319 a massive, massive problem with massive implications that affects every 0:01:10.319 --> 0:01:14.319 single one of us. I know for myself, Um, I 0:01:14.400 --> 0:01:17.399 drive a truck and uh, it's gone up more than 0:01:17.440 --> 0:01:20.080 double to fill up my gas tank, which is not 0:01:20.200 --> 0:01:23.280 too good now. Luckily for me, my commute is very short, 0:01:23.360 --> 0:01:26.160 just a couple of miles, but I know that here 0:01:26.160 --> 0:01:29.280 in California some people commute an hour each day or 0:01:29.400 --> 0:01:31.800 more and that's a big thing. But it's not just gas. 0:01:31.800 --> 0:01:34.240 I mean it's it's food and so food and energy 0:01:34.240 --> 0:01:36.080 are the two things that we're really being affected by 0:01:36.080 --> 0:01:38.600 the motion. So it's just has massive implications. Now for 0:01:38.640 --> 0:01:41.920 those that make less money, it affects them even more 0:01:42.000 --> 0:01:45.360 because the more you make, the less percentage of your 0:01:45.360 --> 0:01:48.000 total income is taken up by your food and energy. 0:01:48.280 --> 0:01:50.640 But if you're living kind of paycheck to paycheck, it's 0:01:50.640 --> 0:01:52.320 mostly just food and energy that you're buying, and it 0:01:52.320 --> 0:01:55.360 has an enormous effect on there. The other reason why 0:01:55.360 --> 0:01:58.160 I want to talk about it is, uh, because it's 0:01:58.320 --> 0:02:02.200 very misunderstood, and I think intentionally, I think it's intentionally 0:02:02.560 --> 0:02:05.440 um or I think you're being intentionally misled so you 0:02:05.440 --> 0:02:07.680 don't understand what the situation is, so you don't place 0:02:07.760 --> 0:02:11.080 your anger into the right place. But as misunderstood as 0:02:11.120 --> 0:02:15.400 it might be, the leaders, the powers that be, the 0:02:15.400 --> 0:02:18.320 ones that are supposed to be driving the bus, they 0:02:18.360 --> 0:02:22.280 seem to not know anything about what's going on either. 0:02:22.639 --> 0:02:24.680 I got some clips I'm gonna play from you about that. 0:02:24.720 --> 0:02:26.400 So we're gonna look at look at this. I want 0:02:26.400 --> 0:02:30.200 to explain, really what are the two main drivers of this. 0:02:31.400 --> 0:02:33.360 So we'll talk about that. Like I said, we'll talk 0:02:33.400 --> 0:02:35.000 about what's happened in the last couple of years that's 0:02:35.000 --> 0:02:39.160 really pushed us into this level. Um, that's just unsustainable. Um, 0:02:39.200 --> 0:02:41.160 talk about what this catalyst is. It's really gonna get 0:02:41.160 --> 0:02:42.560 the market to drop. Like I said, have some clips 0:02:42.600 --> 0:02:45.600 I'm gonna play from some of our elected leaders and 0:02:45.639 --> 0:02:49.240 non elected leaders what they're saying directly from their mouth. Um, 0:02:49.320 --> 0:02:53.720 we'll look at ways that you can protect yourself from this. 0:02:53.919 --> 0:02:59.960 And then I have something that isn't too good, something 0:03:00.080 --> 0:03:03.320 that the head of the Federal Reserve is saying, and 0:03:03.360 --> 0:03:06.000 I think if you read through the words of what 0:03:06.080 --> 0:03:09.440 he's saying, it looks like it could get even worse. 0:03:09.440 --> 0:03:11.760 So I'm gonna break all that down for you and more. 0:03:11.880 --> 0:03:14.000 Here as we're listening to the markma Show talking about 0:03:14.000 --> 0:03:17.680 the decentralized Revolution, talking about bitcoin, talking about politics, finance 0:03:17.720 --> 0:03:22.560 and technology, and again talking about inflation but giving you 0:03:22.600 --> 0:03:25.079 a whole different perspective on it. So the first thing 0:03:25.400 --> 0:03:27.720 is inflation is very difficult to understand for a bunch 0:03:27.720 --> 0:03:29.919 of different reasons. I'll make this pretty simple for you. 0:03:30.240 --> 0:03:31.920 I like to take these complex subjects and make them 0:03:31.919 --> 0:03:34.320 easy to understand. So um it's it's difficult to understand 0:03:34.360 --> 0:03:38.440 because um there's different definitions for it. So um per. 0:03:38.480 --> 0:03:42.840 The Austrian economics view, inflation is when the money supply increases, 0:03:43.000 --> 0:03:45.840 so you inflate the money supply and then like prices 0:03:45.880 --> 0:03:49.640 going up, supply chains breaking down. That's the result of 0:03:49.680 --> 0:03:52.360 the money supply going up. In today's day and age, 0:03:52.360 --> 0:03:55.240 typically what we call inflation is prices going up, so 0:03:55.360 --> 0:03:58.840 asset price inflation or consumer price inflation. So the government 0:03:58.880 --> 0:04:01.920 reports this inflation or to us it's over eight percent. 0:04:02.080 --> 0:04:04.640 That's the CPI Consumer Price Index. So I take a 0:04:04.640 --> 0:04:06.920 basket of goods, they measure that basket of goods and 0:04:06.960 --> 0:04:09.320 they see how much those prices go up. The reason 0:04:09.320 --> 0:04:13.240 why that's a horrible way to look at it is because, um, 0:04:13.240 --> 0:04:17.560 my basket of goods is different than your basket of goods. 0:04:17.560 --> 0:04:19.359 Certain things like if if you're trying to buy a 0:04:19.400 --> 0:04:23.599 house in Austin, Texas, or on the beach in Miami 0:04:23.720 --> 0:04:27.360 or in southern California, inflation on your home purchase is 0:04:27.360 --> 0:04:30.200 gonna be way different than your home inflation would be 0:04:30.240 --> 0:04:33.919 in Indianapolis or in Kansas City. So it affects us 0:04:33.920 --> 0:04:36.160 all differently. Also, you may not be trying to buy 0:04:36.160 --> 0:04:38.760 a home, maybe I am. You may not be trying 0:04:38.800 --> 0:04:40.520 to go to college or pay for medical care, maybe 0:04:40.520 --> 0:04:44.680 I am. So certain things like Netflix and uh, you know, 0:04:45.200 --> 0:04:47.600 Netflix and pizza, those things haven't gone up very much. 0:04:47.600 --> 0:04:49.279 And if you're not paying for rent, living with your parents, 0:04:49.520 --> 0:04:52.120 watching Netflix, eating pizza, inflation doesn't really bother you. But 0:04:52.160 --> 0:04:54.720 if you're buying home in on the beach in Miami, 0:04:54.760 --> 0:04:57.400 and you're trying to send your daughter to college, um, 0:04:57.520 --> 0:04:59.520 then and you and you have medical bills, than inflations 0:04:59.560 --> 0:05:02.080 hit and you really hard. So you understand, um, Inflation 0:05:02.160 --> 0:05:04.479 is different all over the place, and it affects us 0:05:04.480 --> 0:05:05.880 all differently. So that's why it's a horrible way to 0:05:05.880 --> 0:05:10.520 look at it. UM. And then why do prices go up? Well, 0:05:10.520 --> 0:05:13.560 there's a trillion reasons why prices would go up, and 0:05:13.560 --> 0:05:15.560 so that's why we look at the increase of the money. 0:05:15.600 --> 0:05:19.440 Supply causes all types of distortions that cause prices to 0:05:19.440 --> 0:05:22.680 go up. Now, the powers that be again want to 0:05:23.000 --> 0:05:25.760 intentionally mislead you, and they talk about them in really 0:05:25.839 --> 0:05:28.440 two main ways. And and and really there's four main drivers, 0:05:28.839 --> 0:05:31.479 and so you might hear about these so um one 0:05:31.520 --> 0:05:35.599 of them is called cost push cost push. So cost 0:05:35.600 --> 0:05:38.800 push inflation is the decrease in the aggregate supply of 0:05:38.839 --> 0:05:42.240 goods and services stemming from an increase in the cost 0:05:42.320 --> 0:05:45.960 of production. All right, So first of all, I'm gonna 0:05:45.960 --> 0:05:48.480 I'm gonna give you these four drivers, but put just 0:05:48.520 --> 0:05:51.560 put this in your head. First, all prices drive off 0:05:51.600 --> 0:05:55.960 of supply and demand. If there's more supply, then there 0:05:56.040 --> 0:05:57.960 is demand. Prices come down. If there's more demand and 0:05:57.960 --> 0:06:00.560 there are supply, prices go up. So there are reasons 0:06:00.600 --> 0:06:03.680 why supply and demand would be affected. So cost I'm 0:06:03.720 --> 0:06:07.120 sorry yet, cost push. So when the price of goods 0:06:07.200 --> 0:06:11.919 go up, when commodities go up, when shipping prices go up, 0:06:12.000 --> 0:06:14.760 when less people are working, and companies raise their prices, 0:06:14.760 --> 0:06:18.160 when costs go up, then those those high prices get 0:06:18.160 --> 0:06:22.200 passed onto you, which you know, the cost of production 0:06:22.240 --> 0:06:26.440 going up increases the price you're gonna pay. Cost push. Okay, 0:06:26.680 --> 0:06:29.200 makes sense, It's kind of stupid to explain it, maybe, um. 0:06:29.200 --> 0:06:32.279 And the second one is called demand poll, and the 0:06:32.320 --> 0:06:36.400 demand pulls the increase in accurate demand category categorized by 0:06:36.400 --> 0:06:40.680 four sections of the macroeconomy, households, business, governments, and foreign buyers. 0:06:40.880 --> 0:06:42.560 I think it's ridiculous to break it down like this, 0:06:42.800 --> 0:06:47.160 but demand pull, so when there's extra demand, when there's 0:06:47.160 --> 0:06:51.040 more demand, there is supply, prices go up. I mean, 0:06:51.080 --> 0:06:52.440 it's ridiculous to have to break this down, but this 0:06:52.480 --> 0:06:54.160 is how the government breaks it down, and I think 0:06:54.160 --> 0:06:57.080 it's intentionally meant to um confuse you. Now, there's two 0:06:57.120 --> 0:07:00.960 other contributing factors to inflation that include one an increase 0:07:01.040 --> 0:07:04.479 in the money supply of an economy and to a 0:07:04.720 --> 0:07:08.000 decrease in the demand for the money. So an increase 0:07:08.000 --> 0:07:09.760 in the money supply of the economy. So when you 0:07:09.960 --> 0:07:13.600 increase the money supply, now you have more money chasing 0:07:13.960 --> 0:07:18.000 the same amount of goods. So that's demand pull. So 0:07:18.040 --> 0:07:21.239 they increase the money. All that money creates more demand 0:07:21.360 --> 0:07:23.720 and it pulls the prices higher. So what we've seen 0:07:23.800 --> 0:07:25.600 is kind of two things. So they want to blame 0:07:25.600 --> 0:07:27.880 it on the supply chains breaking down, for example, So 0:07:27.920 --> 0:07:32.000 the supply chains breakdown. Less people are working today, for example, 0:07:32.240 --> 0:07:34.480 they have to pay people more to get them become 0:07:34.520 --> 0:07:38.000 to work. So that's cost push. That's pushing the expenses up. 0:07:38.160 --> 0:07:40.640 It's cost pushing the prices up. But it also why 0:07:40.720 --> 0:07:43.480 is supply chains breaking down? Well, because in the United States, 0:07:43.480 --> 0:07:46.680 we're ordering about products than we were before. Why why 0:07:46.680 --> 0:07:49.520 are we ordering more products because there's so much money, 0:07:49.520 --> 0:07:52.840 which is increased the demand, So the demand is pulling 0:07:52.880 --> 0:07:55.640 the prices up, and the cost is also pushing prices 0:07:55.680 --> 0:07:59.520 up at the same time. Again, just understand supply and demand. 0:07:59.720 --> 0:08:03.320 So we have a food uh you know, massive food inflation, 0:08:03.360 --> 0:08:05.520 not just in the States, all over the world. So 0:08:05.800 --> 0:08:08.320 why are food prices going up because we don't have 0:08:08.640 --> 0:08:11.800 enough food? Energy prices are going up? Why, Well, we 0:08:11.840 --> 0:08:14.360 don't have enough energy. But there's also other reasons. I'm 0:08:14.400 --> 0:08:16.360 not gonna dig super deep into them, and it's probably 0:08:16.520 --> 0:08:19.520 for my my next show, but there's also reasons why 0:08:19.640 --> 0:08:22.120 energy prices are going up, and that's cost push. So 0:08:22.240 --> 0:08:26.000 regulations that are being imposed on farmers growing food, or 0:08:26.080 --> 0:08:28.800 on energy companies getting that food out or I'm sorry, 0:08:28.800 --> 0:08:31.680 the energy out pushes the prices up plus the demand, 0:08:31.720 --> 0:08:34.200 so there's there's different factors. But the reason why I 0:08:34.200 --> 0:08:36.760 wanted to break this down to you first is because 0:08:36.840 --> 0:08:39.599 this demand pull peace. I'm going to circle back to 0:08:39.679 --> 0:08:42.160 it at the end, and once I tell you what 0:08:42.200 --> 0:08:45.400 these people are saying, it's gonna make sense. That's why 0:08:45.440 --> 0:08:48.240 I want to set that up for you. Um, before 0:08:48.240 --> 0:08:50.360 we get into that. You're listening to the Markmas Show 0:08:50.400 --> 0:08:53.319 talking about Bitcoin of the Decentralized Revolution. I got a 0:08:53.360 --> 0:08:56.040 lot more about inflation. Want to come back in a minute, 0:08:56.280 --> 0:08:59.120 so do not go away, all right, welcome back. You 0:08:59.160 --> 0:09:01.480 are listening to them Arkamas Show. We are talking about 0:09:01.480 --> 0:09:05.520 the Decentralized Revolution each and every week, talking about bitcoin, cryptocurrencies, 0:09:05.800 --> 0:09:09.160 of course, politics, finance, and technology as they all merge 0:09:09.200 --> 0:09:12.080 and they all change around. What is happening right now? 0:09:12.280 --> 0:09:14.720 And we've been talking about inflation and I'm trying to 0:09:14.800 --> 0:09:17.880 break down some of the definitions because you're being misled, 0:09:17.960 --> 0:09:21.199 and then we're gonna circle back to that. But it's 0:09:21.240 --> 0:09:23.800 no surprise, right Inflation is the high. It's been highest 0:09:23.840 --> 0:09:28.680 it's been in forty years, no surprise. Homes are high, 0:09:28.800 --> 0:09:31.000 gas is high, food is high. Of course, the two 0:09:31.000 --> 0:09:33.040 main things we need, energy and food are going higher. 0:09:33.840 --> 0:09:35.559 The one thing to keep in mind is the highest 0:09:35.640 --> 0:09:38.000 been in forty years? So what's been this high before? Right? 0:09:38.040 --> 0:09:42.400 No big deal? Yes, But when it was this high before, 0:09:42.480 --> 0:09:44.440 it was in the eighties, and we had to take 0:09:44.960 --> 0:09:48.520 massively drastic actions in order to get the price of 0:09:48.559 --> 0:09:51.320 inflation to come back down under Reagan. Under President Reagan, 0:09:51.800 --> 0:09:57.640 the Fed Secretary Fed Treasuries UH Paul Volker raised interest 0:09:57.760 --> 0:10:02.360 rates drastically to get inflation to come back down. But 0:10:02.600 --> 0:10:05.120 this time we're in a much different place than we 0:10:05.120 --> 0:10:09.240 were were before because now we have massive amounts of debt, 0:10:09.240 --> 0:10:13.280 particularly we have over thirty trillion dollars of federal debt. 0:10:13.559 --> 0:10:16.120 And the problem is if they raise the rates, the 0:10:16.280 --> 0:10:19.920 interest on that debt becomes unsustainable. I mean, it's already 0:10:19.960 --> 0:10:22.880 usustainable as it is, but it becomes um It could 0:10:22.960 --> 0:10:25.360 if if we get you know, interest rates over three percent, 0:10:25.480 --> 0:10:28.920 we could see the interest on that debt becoming more 0:10:29.200 --> 0:10:32.400 than the tax revenue, the income tax revenue the government 0:10:32.400 --> 0:10:35.760 receives that would be drastic, that'd be really, really bad, 0:10:36.000 --> 0:10:37.520 And so we're in a much different place. We didn't 0:10:37.559 --> 0:10:39.680 have that problem in the eighties, and so those tools 0:10:39.679 --> 0:10:41.760 that we used to come back back then we don't 0:10:41.840 --> 0:10:44.280 have today. But how did we get here? Let's walk 0:10:44.280 --> 0:10:49.480 through that real quickly. Um, how did we get here? Well? Easy, 0:10:50.080 --> 0:10:53.080 spending more than you make and living off of credit. 0:10:53.520 --> 0:10:55.400 If you've ever tried it in your household, it doesn't 0:10:55.480 --> 0:10:57.920 last very long. You can live off your whole equity line, 0:10:57.960 --> 0:11:00.079 you can live off your credit cards, but eventually you 0:11:00.120 --> 0:11:02.560 can't pay those bills and that credit runs out. And 0:11:02.559 --> 0:11:04.760 that's exactly how we got here. Like I said before, 0:11:04.760 --> 0:11:07.240 we've been seeing about a ten pc inflation for the 0:11:07.280 --> 0:11:10.360 last hundred years, but it's really accelerated over the last 0:11:10.400 --> 0:11:14.199 two years because of course, the war, the War on COVID, 0:11:14.520 --> 0:11:16.320 and in order to fight that war, in order to 0:11:16.360 --> 0:11:21.520 combat the economic and financial effects of the war, the 0:11:21.559 --> 0:11:24.040 FED did extraordinary measures. And I call it the war 0:11:24.080 --> 0:11:27.199 because obviously it was a war on COVID, but it wasn't. 0:11:27.280 --> 0:11:30.439 It wasn't COVID that was the problem. It was the 0:11:30.640 --> 0:11:34.960 response to it that was the problem. And so the 0:11:35.200 --> 0:11:39.520 entire United States economy and global economies were forced to 0:11:39.640 --> 0:11:42.840 shut down. You had all the small businesses, all the 0:11:42.840 --> 0:11:45.839 mom pop businesses here in Los Angeles, businesses that have 0:11:45.920 --> 0:11:49.560 been around families, you know for multiple generations. Um icons, 0:11:49.640 --> 0:11:53.720 marquee spots in Hollywood gone just out of business. Everyone's 0:11:53.720 --> 0:11:57.320 just shut down. And so in order to combat that war, 0:11:57.800 --> 0:12:01.120 then they introduced a couple of things. One, they brought 0:12:01.200 --> 0:12:04.640 interest rates to zero ZERP as we call it zero 0:12:04.760 --> 0:12:08.720 interest rate policies ZIRP. Did that, did that again. They 0:12:08.760 --> 0:12:14.040 started unlimited que quantitative easing UM. And then they used 0:12:14.040 --> 0:12:16.680 that quantitative easy and that that money that monitor that 0:12:16.679 --> 0:12:19.880 new monetary money that they've created to buy mortgage backed securities, 0:12:19.960 --> 0:12:24.840 nbs U S treasuries, corporate debt um issued by corporations, 0:12:24.880 --> 0:12:29.160 corporate debt, e t fs, municipal debts, so that states, counties, 0:12:29.200 --> 0:12:33.160 things like that, see the certificate of deposits, student loans, 0:12:33.880 --> 0:12:36.600 and auto loans. So they started all used all this money, 0:12:36.640 --> 0:12:40.560 start buying all that up. And the total bill for 0:12:40.600 --> 0:12:44.600 the FEDS interventions of this were five trillion dollars. Now, 0:12:44.640 --> 0:12:46.640 if we put that another way, the FED was printing 0:12:46.640 --> 0:12:51.600 an amount of money equal to Spain's economy every twelve months, 0:12:52.280 --> 0:12:55.880 and the entire output of their economy we were creating 0:12:55.920 --> 0:12:57.880 in a thin air every twelve months. Now to put 0:12:57.880 --> 0:13:01.240 this into uh into something you can understand, because I 0:13:01.400 --> 0:13:04.640 this is difficult. We throw these numbers around million, billion, 0:13:04.679 --> 0:13:11.119 trillion whatever. A trillion, five trillion is five thousand billions 0:13:12.559 --> 0:13:17.320 or five million millions. It's a lot. And if you 0:13:17.400 --> 0:13:22.880 laid out five trillion dollars in one bills lengthwise, back 0:13:22.880 --> 0:13:24.480 to back to back to back, it would go from 0:13:24.480 --> 0:13:27.160 the Earth to the moon ten times. It's a lot. 0:13:27.200 --> 0:13:30.360 It's a lot of bills. So they stimulated all the 0:13:30.400 --> 0:13:32.280 way through the crash, and it wasn't so much even 0:13:32.320 --> 0:13:35.080 that they stimulated through the crash. The problem was that 0:13:35.160 --> 0:13:39.240 they continued to stimulate for way too long. So as 0:13:39.280 --> 0:13:43.560 the market started to recover, as um unemployment continue to drop, 0:13:43.600 --> 0:13:45.800 the economy started recover, business started opening back up again, 0:13:46.720 --> 0:13:49.200 they didn't get their foot off the gas pedal. They 0:13:49.320 --> 0:13:51.720 kept it going. Now, if you look at a chart 0:13:51.760 --> 0:13:54.120 of CPI consumer price Index, which is the number the 0:13:54.160 --> 0:13:57.000 government gives us to measure inflation, you can see that 0:13:57.080 --> 0:13:58.960 it was going along, going along, and then just started 0:13:59.000 --> 0:14:02.600 spiking almost straight up vertical. A chart that would be 0:14:02.600 --> 0:14:04.840 so simple that a third grader could look at that 0:14:04.960 --> 0:14:07.920 chart and could go, wait a minute, that's the problem. 0:14:07.920 --> 0:14:10.360 Look at this number going straight up. You could see that. 0:14:11.200 --> 0:14:14.480 And what's what's astonishing is that if a third grader 0:14:14.480 --> 0:14:17.880 could see it, how did the FED nancy it? So? 0:14:17.960 --> 0:14:20.800 The FED has over four hundred economists pH d s 0:14:20.840 --> 0:14:24.600 on their payroll, a hundred and fifty research assistance on payroll, 0:14:24.880 --> 0:14:28.400 have access to the best real time economic data, the 0:14:28.440 --> 0:14:31.680 best and the brightest that we can produce. And yet 0:14:31.840 --> 0:14:34.240 Janet Yelling from the Treasury and j Powe from the Fed, 0:14:34.720 --> 0:14:38.960 we're both blindsided. They're both blindsided by this. As a 0:14:38.960 --> 0:14:42.400 matter of fact, let's hear it directly from them. I 0:14:42.400 --> 0:14:44.080 got a clip here, let's go ahead and play this 0:14:44.160 --> 0:14:46.760 of Janet Yell and talking about her and Jerome Powell, 0:14:47.760 --> 0:14:50.920 and I said that inflation would be transitory. What I 0:14:51.040 --> 0:14:55.640 was not anticipating was a scenario in which we would 0:14:56.080 --> 0:15:01.480 end up contending with multiple variants of COVID. It would 0:15:01.560 --> 0:15:06.400 be scrambling our economy and global supply chains. And I 0:15:06.520 --> 0:15:13.040 was not envisioning um impacts on food and energy prices. 0:15:13.200 --> 0:15:18.960 We've seen mm hmm. So they were blindsided. They didn't 0:15:19.080 --> 0:15:23.120 envision the impacts on food and energy. They didn't think 0:15:23.160 --> 0:15:27.520 through what would happen if you create five trillion more 0:15:28.080 --> 0:15:34.680 currency chasing limited goods and services. Again, this is elementary. 0:15:35.280 --> 0:15:38.000 If you increase the demand and you don't increase the supplier. 0:15:38.040 --> 0:15:41.040 In this case, you reduced the supply and increase the 0:15:41.080 --> 0:15:43.680 demand at the same time. What's going to happen you 0:15:43.760 --> 0:15:46.880 already know. But of course Jerome Power and Jenny Yellen said, 0:15:46.880 --> 0:15:49.080 we didn't think through this. We didn't think through what 0:15:49.120 --> 0:15:51.800 would happen to food. We didn't think through what would 0:15:51.840 --> 0:15:54.200 happen to energy. And they kept saying, first, it's not 0:15:54.200 --> 0:15:57.400 a problem, is not a problems, not a problem. It 0:15:57.480 --> 0:15:59.240 wasn't a problem. We can't we can't get the inflation 0:15:59.280 --> 0:16:00.400 we want now. Like I said, if you look at 0:16:00.440 --> 0:16:03.400 the chart, or you just think through it for a minute, 0:16:03.400 --> 0:16:05.680 if we increased this money and we decreased the goods 0:16:05.680 --> 0:16:09.000 and services price go up, anyone could tell you that. 0:16:09.000 --> 0:16:11.000 An elementary person could tell you this. I had played 0:16:11.000 --> 0:16:13.120 a clip before on the radio show before We're It 0:16:13.240 --> 0:16:16.200 was a clip from Oh Christinian and Georgina from the 0:16:16.200 --> 0:16:18.160 I M. F and it was with her and Jerome 0:16:18.200 --> 0:16:21.400 Powell and yelling I believe and they were laughing, and 0:16:21.480 --> 0:16:24.080 Krystellina from the I M S said, UM, I guess 0:16:24.120 --> 0:16:28.960 we didn't think through the unintended consequences of this. And 0:16:29.000 --> 0:16:31.800 then she said, I guess we're sort of like a 0:16:31.840 --> 0:16:35.120 bunch of eight year olds playing soccer. Instead of covering 0:16:35.120 --> 0:16:37.200 the field, we just chased the ball around. So she said, 0:16:37.200 --> 0:16:41.000 we're like eight year olds. But to my point, eight 0:16:41.080 --> 0:16:44.400 year olds or third graders could have spotted the problem 0:16:44.480 --> 0:16:47.280 and yet they didn't. UM. I have some more clips 0:16:47.280 --> 0:16:49.760 that I want to UM play when I get back, 0:16:49.840 --> 0:16:53.600 because the story is changing now. It went from not 0:16:53.680 --> 0:16:56.760 a problem to uh, we have it under control too. 0:16:57.040 --> 0:17:00.200 It's it's just transitory, and now the whole art of 0:17:00.240 --> 0:17:01.880 completely change. I'm gonna play these clips. You can hear 0:17:01.920 --> 0:17:04.119 it directly from their mouth, and then I'll come back 0:17:04.160 --> 0:17:08.320 to the point we talked about about. Unfortunately, UM the 0:17:09.119 --> 0:17:11.760 solutions that they have and and they're not good. You're 0:17:11.760 --> 0:17:13.919 listening to the Mark ma Show. We're talking about the 0:17:14.040 --> 0:17:18.399 decentralized revolution. The world is changing because bitcoin and decentralized 0:17:18.440 --> 0:17:20.680 technology is changing it. We're looking at through the lens 0:17:20.720 --> 0:17:23.280 of politics, finance, and technology. I'm gonna play these clips, 0:17:24.000 --> 0:17:27.639 keep digging into inflation so you can understand what comes next. 0:17:27.960 --> 0:17:29.439 I have that and more when I come back, So 0:17:29.520 --> 0:17:31.680 don't go away, all right, welcome back. You were listening 0:17:31.720 --> 0:17:35.440 to the Mark Ma Show. I'm narrating you through this 0:17:35.600 --> 0:17:40.280 decentralized revolution, is the world changes from global centrally controlled 0:17:40.280 --> 0:17:43.000 powers into a decentralized world, which of course is being 0:17:43.040 --> 0:17:46.359 spearheaded by bitcoin and decentralized technology. And looking at through 0:17:46.400 --> 0:17:48.800 the lens of politics, finance, and technology. We're talking specifically 0:17:48.840 --> 0:17:52.760 about inflation and the central planners, the central planners of 0:17:52.800 --> 0:17:55.800 the Central Bank, and how bad they have screwed this 0:17:55.920 --> 0:17:57.680 up in their own words. We just played a clip 0:17:57.720 --> 0:17:59.879 of Janet Allen talking about herself and Jerome pal and 0:18:00.600 --> 0:18:03.840 they didn't think through that increasing all this money supply 0:18:04.119 --> 0:18:08.480 would cause these problems, because nobody understands that if you 0:18:08.520 --> 0:18:10.560 increase the money supply and you decrease the amount of 0:18:10.600 --> 0:18:13.680 goods that you get inflation. I guess they don't understand that, 0:18:13.960 --> 0:18:16.359 which is crazy. But they went from like I said, 0:18:16.480 --> 0:18:19.000 from it's not a problem too, it's manageable too. It's 0:18:19.000 --> 0:18:22.400 just transitory is going to go away too. Oh crap, 0:18:22.600 --> 0:18:26.520 we have a big problem on our hands. And let's 0:18:26.520 --> 0:18:30.960 play this other clip here. We have check this out. Um, 0:18:31.000 --> 0:18:36.080 it's true, Powell indicated himself. Um, both of us probably 0:18:36.119 --> 0:18:40.040 could have used a better term than transitory. I do 0:18:40.200 --> 0:18:45.560 expect inflation to remain high, although I very much hoped 0:18:45.600 --> 0:18:49.880 that it will be coming down now mm hmm. So 0:18:49.920 --> 0:18:55.840 they should have used a word better than transitory, like persistent, 0:18:56.040 --> 0:18:59.679 maybe out of control potentially, or how about our fault 0:19:00.040 --> 0:19:02.359 me any of one of those words could have could 0:19:02.359 --> 0:19:05.480 have worked. Um, but no, they just said well it's 0:19:05.480 --> 0:19:08.200 transitory to like, well, I guess we could have used 0:19:08.200 --> 0:19:12.360 the better word, and they went from we can manage this, 0:19:12.440 --> 0:19:13.800 and so this is what you have to pay attention 0:19:13.800 --> 0:19:16.160 when these people talk. You need to really dissect every word. 0:19:16.359 --> 0:19:20.439 It went from we can manage this too, now we hope, 0:19:21.680 --> 0:19:25.280 now we hope. But it's even worse than that. All right, 0:19:25.320 --> 0:19:27.280 So now they've they've gone from we can manage it 0:19:27.320 --> 0:19:30.480 to um, basically lied to you or we didn't know better. 0:19:30.640 --> 0:19:33.800 So is it a lie or are they really incompetent? 0:19:34.680 --> 0:19:40.120 In my opinion, either way, there's a problem if my 0:19:40.840 --> 0:19:43.040 You know, if if if one of your friends, one 0:19:43.040 --> 0:19:46.880 of your business associates, your employees, your wife, if they 0:19:47.000 --> 0:19:49.240 lied to you or they are incompetent, you would probably 0:19:49.240 --> 0:19:53.199 remove them either way, either way, whether they're incompetent or 0:19:53.200 --> 0:19:55.159 whether it's a lie. But now they're changing this narrative, 0:19:55.400 --> 0:20:00.000 so we should hope. But Secretary Yelling came out and said, um, 0:20:00.000 --> 0:20:02.680 now in a report about a third of US inflation 0:20:02.760 --> 0:20:05.080 is as a rule, is a result of new and 0:20:05.320 --> 0:20:11.520 used cars, all due to the shortage of semiconductors. Really, 0:20:11.880 --> 0:20:14.480 see now they're trying to shift the blame. They're trying 0:20:14.480 --> 0:20:16.280 to shift them, and they're trying to change that anybody else. 0:20:16.359 --> 0:20:19.040 So now a third of the problem with inflation as 0:20:19.040 --> 0:20:22.199 a result of new news cars. Does the shortage of 0:20:22.240 --> 0:20:28.160 semiconductors explain the twent you're over your house price increases? 0:20:28.359 --> 0:20:31.200 Does it? Does it? Does it explain that? Does it 0:20:31.320 --> 0:20:34.000 explain the food going up? Right? Does it explain the 0:20:34.000 --> 0:20:35.399 gas going up? With the food and energy? Of the 0:20:35.440 --> 0:20:38.960 two big things? Does use cars or semiconductors? Well, first 0:20:38.960 --> 0:20:43.520 of all, used cars have already been built. Sem semiconductors 0:20:43.560 --> 0:20:45.320 don't put as many new cars. If there's not many 0:20:45.320 --> 0:20:47.320 new cars. I guess they buy used cars. That makes sense. 0:20:47.359 --> 0:20:49.880 But why does food go up? Why does gas go up? 0:20:49.920 --> 0:20:53.439 Why do homes go up? And the point is it doesn't. 0:20:53.800 --> 0:20:55.480 The point is it doesn't. So but but my point 0:20:55.520 --> 0:20:57.879 is of trying to shift the narrative and then the 0:20:57.960 --> 0:21:02.560 narrative change to senator Senator Elizabeth Warren, who really cares 0:21:02.600 --> 0:21:06.359 for little guys. We saw her last Thanksgiving, last November saying, 0:21:07.280 --> 0:21:10.480 the problem with inflation is these greedy corporations. That's always 0:21:10.520 --> 0:21:13.240 her line. It's always these greedy corporations trying to take 0:21:13.280 --> 0:21:15.200 it to you. And of course we need the government 0:21:15.200 --> 0:21:16.920 to protect us from these greedy corporations. In the last 0:21:16.960 --> 0:21:19.639 November she said it was the turkey manufacturers. It was 0:21:19.680 --> 0:21:23.400 their fault. They're gouging you on the price of turkeys, 0:21:23.720 --> 0:21:26.840 and somebody, you know, me and the government, we should 0:21:26.880 --> 0:21:28.760 tell them how to run their business, so they don't. 0:21:28.840 --> 0:21:33.520