1 00:00:00,120 --> 00:00:03,040 Speaker 1: Hey, everyone, welcome to another episode of the Mark Moss Show. 2 00:00:03,120 --> 00:00:06,800 Speaker 1: Of course we're talking about bitcoin, we're talking about cryptocurrencies. 3 00:00:06,840 --> 00:00:10,520 Speaker 1: We're talking about the decentralized revolution that is here in 4 00:00:10,600 --> 00:00:13,480 Speaker 1: front of us. It's happening as we speak each and 5 00:00:13,520 --> 00:00:16,160 Speaker 1: every week. Now I'm joined in the studio with one 6 00:00:16,160 --> 00:00:18,840 Speaker 1: of my friends, Jason Buack. You can find him on 7 00:00:18,840 --> 00:00:22,640 Speaker 1: Twitter at Jason E. Burrock. That's bu r A c 8 00:00:22,960 --> 00:00:27,120 Speaker 1: K and uh. He is a He's an amazing financial analyst, 9 00:00:27,160 --> 00:00:29,440 Speaker 1: really someone that I bounced a lot of ideas off 10 00:00:29,440 --> 00:00:31,080 Speaker 1: on a macro level and I wanted to bring him 11 00:00:31,120 --> 00:00:33,000 Speaker 1: on the radio. So Jason, thanks so much. We are 12 00:00:33,120 --> 00:00:35,199 Speaker 1: joining me today. It's great to be on Mark. You're 13 00:00:35,200 --> 00:00:37,400 Speaker 1: doing a really good job on here. Congratulations on your 14 00:00:37,400 --> 00:00:40,519 Speaker 1: new show. Thanks man, thank you. I know, you know 15 00:00:40,600 --> 00:00:43,560 Speaker 1: sometimes you've you've been been nice enough to start to 16 00:00:43,600 --> 00:00:45,559 Speaker 1: send me a lot of information and and some d 17 00:00:45,680 --> 00:00:47,160 Speaker 1: m s, and we've kind of gone back and forth, 18 00:00:47,200 --> 00:00:50,479 Speaker 1: and you know, there was something that we were talking about. Um, 19 00:00:50,520 --> 00:00:51,680 Speaker 1: it might have been a week or two ago, a 20 00:00:51,720 --> 00:00:53,120 Speaker 1: couple of weeks ago when we start talking about get 21 00:00:53,159 --> 00:00:56,520 Speaker 1: you on the show, and you were talking about how um, 22 00:00:56,560 --> 00:00:59,040 Speaker 1: the government the Central Bank, and the government is in 23 00:00:59,040 --> 00:01:02,560 Speaker 1: this situation to a where a large percentage of their 24 00:01:02,600 --> 00:01:05,800 Speaker 1: tax revenue now has started to come increasingly more from 25 00:01:05,880 --> 00:01:09,440 Speaker 1: capital gains, and there's a reason why they need to 26 00:01:09,480 --> 00:01:12,400 Speaker 1: continue to get asset prices to go up, including they 27 00:01:12,480 --> 00:01:14,440 Speaker 1: might even want to see bitcoin going up to a 28 00:01:14,480 --> 00:01:17,120 Speaker 1: million dollars because they need that revenue. I think, is that? 29 00:01:17,200 --> 00:01:19,959 Speaker 1: Is that right what you were saying. Yes, there's a 30 00:01:20,000 --> 00:01:24,479 Speaker 1: lot of reasons for this. So there's been enormous structural 31 00:01:24,600 --> 00:01:29,080 Speaker 1: changes in the annual US federal government tax or seats 32 00:01:29,080 --> 00:01:31,760 Speaker 1: of the last couple of decades. So a couple of 33 00:01:31,760 --> 00:01:36,120 Speaker 1: decades ago, capital gains, taxes on stock spawns, real estate, 34 00:01:36,480 --> 00:01:39,039 Speaker 1: it was barely ten percent. Most years, it wasn't ten 35 00:01:39,120 --> 00:01:43,000 Speaker 1: percent of annual tax revenues. So the real economy, corporation, 36 00:01:43,160 --> 00:01:46,520 Speaker 1: small businesses, that was what was paying the tax revenues. 37 00:01:46,959 --> 00:01:51,720 Speaker 1: Now what has changed is, depending upon how you measure GDP, 38 00:01:52,000 --> 00:01:56,200 Speaker 1: government spending now accounts for around fifty of g d P, 39 00:01:56,720 --> 00:01:59,240 Speaker 1: and the government's not going to tax itself. A lot 40 00:01:59,240 --> 00:02:02,480 Speaker 1: of corporation and don't pay taxes, especially the ones that 41 00:02:02,520 --> 00:02:05,880 Speaker 1: are politically connected like General Electric or Tesla Motors that 42 00:02:05,920 --> 00:02:08,320 Speaker 1: are relying on a lot of government subsidies to survive 43 00:02:08,360 --> 00:02:12,080 Speaker 1: and are not consistently profitable. So you have a situation 44 00:02:12,560 --> 00:02:16,800 Speaker 1: where the government realized this, the Futtal Reserve Bank realized this, 45 00:02:17,120 --> 00:02:21,320 Speaker 1: the large banks in the US realized this. The large 46 00:02:21,360 --> 00:02:25,680 Speaker 1: banks decided a couple of decades ago that it was 47 00:02:25,760 --> 00:02:29,520 Speaker 1: a lot more profitable for them. There's no caps on 48 00:02:29,919 --> 00:02:33,280 Speaker 1: lending the amount of percentage interest rates that they could charge, 49 00:02:33,560 --> 00:02:38,040 Speaker 1: so the large banks have basically they take depositor money 50 00:02:38,080 --> 00:02:40,839 Speaker 1: and they take the reserves that the Futtle Reserve gives them, 51 00:02:41,000 --> 00:02:43,440 Speaker 1: and they could use that as collateral. They can pledge it, 52 00:02:43,520 --> 00:02:47,520 Speaker 1: they can um put it as hypothecated and rehypothecated, all 53 00:02:47,520 --> 00:02:50,639 Speaker 1: this stuff, and they put on hedge fund trades, so 54 00:02:50,760 --> 00:02:57,000 Speaker 1: on stocks, bawns, real estate, currencies, commodities, over the counter derivatives. 55 00:02:57,360 --> 00:03:00,519 Speaker 1: The majority of annual bank profits now is not from 56 00:03:00,560 --> 00:03:04,120 Speaker 1: normal lending. It's from like leveraged hedge fund trades on 57 00:03:04,200 --> 00:03:08,840 Speaker 1: bonds and currencies and over the counter derivatives. So the 58 00:03:09,320 --> 00:03:11,320 Speaker 1: this is what a lot of people have called the 59 00:03:11,440 --> 00:03:16,280 Speaker 1: financialization of the economy, where the real economy um where 60 00:03:16,320 --> 00:03:19,560 Speaker 1: there's investments by the follow government investments by the private sector. 61 00:03:19,639 --> 00:03:22,399 Speaker 1: The government releases press releases. You know, it's I've lived 62 00:03:22,440 --> 00:03:24,840 Speaker 1: here in d C for over twenty years now, and 63 00:03:25,120 --> 00:03:30,679 Speaker 1: there's always infrastructure plans announced, and these infrastructure plans, the 64 00:03:30,760 --> 00:03:34,720 Speaker 1: return on investment on these things, the actual infrastructure never 65 00:03:34,760 --> 00:03:38,280 Speaker 1: seems to get done correctly. It so basically, when the 66 00:03:38,280 --> 00:03:42,360 Speaker 1: government spends money, it's not helping the regular people. It's 67 00:03:42,360 --> 00:03:45,440 Speaker 1: going for corporate welfare, it's going for bailouts, it's helping 68 00:03:45,440 --> 00:03:49,080 Speaker 1: out large corporations and special interest groups. And that's where 69 00:03:49,160 --> 00:03:51,840 Speaker 1: the capital gains on stocks, bonds, royal estate and now 70 00:03:51,880 --> 00:03:56,400 Speaker 1: crypto comes in. Because the official FED policy mark for 71 00:03:56,440 --> 00:03:59,120 Speaker 1: the last two decades, and the FED doesn't even want 72 00:03:59,120 --> 00:04:01,480 Speaker 1: to talk about this in more publicly because the wealth 73 00:04:01,520 --> 00:04:05,440 Speaker 1: disparity that they've created intentionally, by the way, because you 74 00:04:05,520 --> 00:04:08,600 Speaker 1: had the Alan Greenspan FED, you have the Ben Bernanke FED, 75 00:04:08,800 --> 00:04:11,360 Speaker 1: you had the Janet yelling FED all talking about the 76 00:04:11,400 --> 00:04:15,520 Speaker 1: wealth effect, and the wealth effect basically means asset price 77 00:04:15,560 --> 00:04:20,200 Speaker 1: inflation and what Austrian School economists call the canceil Wan effect, 78 00:04:20,760 --> 00:04:25,200 Speaker 1: which is enormous amounts of currency and credit being misallocated. 79 00:04:25,200 --> 00:04:28,080 Speaker 1: It's not going to the right places. It's being subsidized, 80 00:04:28,520 --> 00:04:32,680 Speaker 1: given to large corporations for bailouts, UM, people on Wall 81 00:04:32,720 --> 00:04:35,920 Speaker 1: Street to put hedge fund bets, or for bailouts, covert bailouts, 82 00:04:36,120 --> 00:04:39,800 Speaker 1: and political insiders here in d C. And that's how 83 00:04:39,839 --> 00:04:42,680 Speaker 1: the tax base has changed. Now here we are a 84 00:04:42,680 --> 00:04:45,880 Speaker 1: couple of decades later. And I said at the beginning 85 00:04:45,880 --> 00:04:49,520 Speaker 1: of the segment that the annual tax revenues for stocks, bonds, 86 00:04:49,520 --> 00:04:52,400 Speaker 1: in real estate were ten percent or less for capital 87 00:04:52,400 --> 00:04:57,040 Speaker 1: gains taxes. Now we're here, we are, we're approaching, so 88 00:04:57,080 --> 00:05:00,600 Speaker 1: we've had a three x move now in capital game taxes. 89 00:05:00,680 --> 00:05:04,360 Speaker 1: This is all part of my stagflate tax life thesis 90 00:05:04,400 --> 00:05:06,440 Speaker 1: that I've been talking about for years. And it's just 91 00:05:06,440 --> 00:05:09,880 Speaker 1: gonna get worse the government, the federal government and all 92 00:05:10,000 --> 00:05:13,279 Speaker 1: levels of government because in a lot of states and 93 00:05:13,320 --> 00:05:16,640 Speaker 1: a lot of counties they're going there increasing property taxes 94 00:05:16,720 --> 00:05:19,880 Speaker 1: a lot too. So this is all part of inflating 95 00:05:19,960 --> 00:05:23,320 Speaker 1: royal state as well. So I mean it makes perfect sense. 96 00:05:23,320 --> 00:05:25,720 Speaker 1: I mean, asset prices have gone sky high. Obviously, we've 97 00:05:25,720 --> 00:05:28,400 Speaker 1: seen cryptocurrencies going high. Real estate price has never been higher, 98 00:05:28,440 --> 00:05:31,160 Speaker 1: stock market has never been higher, etcetera. Um. And so 99 00:05:31,200 --> 00:05:33,599 Speaker 1: then it makes sense that they're making more on capital gains, 100 00:05:33,600 --> 00:05:35,960 Speaker 1: and so it also makes sense that the revenue that 101 00:05:36,000 --> 00:05:38,320 Speaker 1: the government's collected off cap gains has gone from ten 102 00:05:38,680 --> 00:05:42,719 Speaker 1: to thirty or whatever. But what happens if asset prices 103 00:05:42,720 --> 00:05:45,320 Speaker 1: were to drop and then that revenue from cap gains 104 00:05:45,400 --> 00:05:48,159 Speaker 1: drops down? Are they that dependent on that increase in 105 00:05:48,240 --> 00:05:52,640 Speaker 1: cap gains taxes? Yes? Yes. And the other problem here, Mark, 106 00:05:52,839 --> 00:05:56,440 Speaker 1: is you're creating a country of speculators. So instead of 107 00:05:56,440 --> 00:05:59,599 Speaker 1: a business owner, an entrepreneur or a small business owner, 108 00:05:59,839 --> 00:06:02,120 Speaker 1: the citing that I want to invest in new property, 109 00:06:02,120 --> 00:06:04,200 Speaker 1: plan and equipment, I want to expand my business, I 110 00:06:04,200 --> 00:06:07,000 Speaker 1: want to hire employees. Instead, you have people that have 111 00:06:07,160 --> 00:06:10,040 Speaker 1: some savings or capital or their retirement account. They want 112 00:06:10,040 --> 00:06:12,240 Speaker 1: to go gamble on n f T s, they want 113 00:06:12,240 --> 00:06:15,200 Speaker 1: to go gamble on crypto. They're not creating jobs, so 114 00:06:15,240 --> 00:06:18,880 Speaker 1: they're they're the real economy, human beings who actually want 115 00:06:18,880 --> 00:06:22,200 Speaker 1: to work, who actually want to grow their income. It's 116 00:06:22,200 --> 00:06:26,840 Speaker 1: not happening the conventional way. It's happening like it basically 117 00:06:26,880 --> 00:06:28,960 Speaker 1: created a nation of speculators. And if you go back 118 00:06:29,000 --> 00:06:32,839 Speaker 1: through financial history, this is actually looking now. Obviously things 119 00:06:32,880 --> 00:06:35,240 Speaker 1: are more modern and more digital people are trading on 120 00:06:35,279 --> 00:06:38,640 Speaker 1: their smartphones. But the speculative behavior is actually reminding me 121 00:06:38,680 --> 00:06:42,520 Speaker 1: a lot of studying prior to the Weimar Republic hyperinflation, 122 00:06:43,040 --> 00:06:46,880 Speaker 1: the crazy amounts of speculation on stocks and currencies. Yeah, 123 00:06:46,960 --> 00:06:49,359 Speaker 1: it's interesting you say that, because just this week I 124 00:06:49,400 --> 00:06:52,000 Speaker 1: put out a video um I'm calling I called it 125 00:06:52,120 --> 00:06:55,040 Speaker 1: Generation Gamble, which is actually from a little documentary that 126 00:06:55,080 --> 00:06:58,280 Speaker 1: CNBC did, and basically it's exactly what you're what you 127 00:06:58,360 --> 00:07:01,440 Speaker 1: just said there, which is we've created this generation of gamblers. 128 00:07:01,440 --> 00:07:04,240 Speaker 1: And I saw that um on robin hood or or 129 00:07:04,320 --> 00:07:07,520 Speaker 1: not just robbing it, but everywhere options trading has surpassed 130 00:07:07,520 --> 00:07:10,200 Speaker 1: stock trading for the first time in history. And so 131 00:07:10,680 --> 00:07:12,920 Speaker 1: between options trading and what that shows is, you know, 132 00:07:12,960 --> 00:07:15,280 Speaker 1: buying stocks, you're kind of buying equity, and a company, 133 00:07:15,280 --> 00:07:17,240 Speaker 1: you're like buying a business. You're kind of investing in 134 00:07:17,280 --> 00:07:20,000 Speaker 1: a business. Maybe there's some money going to I mean 135 00:07:20,200 --> 00:07:21,960 Speaker 1: kind of supposed to be going towards a business for 136 00:07:22,000 --> 00:07:25,360 Speaker 1: capital expenditure, But when you're doing options, it's just pure gambling. 137 00:07:25,640 --> 00:07:27,400 Speaker 1: And we've seen obviously, you know the rise of the 138 00:07:27,440 --> 00:07:30,360 Speaker 1: cryptocurrency investing, as you said, n f T S etcetera. 139 00:07:30,480 --> 00:07:32,720 Speaker 1: And and we're even seeing reports now people quitting their 140 00:07:32,800 --> 00:07:36,440 Speaker 1: jobs to just be full time traders. And when you're 141 00:07:36,440 --> 00:07:40,160 Speaker 1: trading options or you're trading crypto assets, you're not providing 142 00:07:40,280 --> 00:07:42,720 Speaker 1: any value to the point that you're making, right, So 143 00:07:42,840 --> 00:07:46,440 Speaker 1: like you're trading these assets, you're not providing any value 144 00:07:46,560 --> 00:07:49,640 Speaker 1: to anything. But what you're doing is you're increasing your 145 00:07:49,720 --> 00:07:53,000 Speaker 1: dollars without providing value. But then you take those dollars 146 00:07:53,880 --> 00:07:57,520 Speaker 1: and then you go buy goods and services from productive people. 147 00:07:57,560 --> 00:08:01,200 Speaker 1: And so really it's this net drags drain onto the 148 00:08:01,360 --> 00:08:04,280 Speaker 1: entire economy. And I was explaining this video how how 149 00:08:04,320 --> 00:08:06,920 Speaker 1: this is happening and how bad it is for the society. 150 00:08:07,240 --> 00:08:09,800 Speaker 1: The problem is is that I mean to explain to 151 00:08:09,840 --> 00:08:12,800 Speaker 1: somebody why they should go slave over a job making 152 00:08:12,800 --> 00:08:14,400 Speaker 1: twenty bucks an hour and then go flip n F 153 00:08:14,440 --> 00:08:16,240 Speaker 1: T s and make, you know, fifty bucks a pop. 154 00:08:16,240 --> 00:08:19,200 Speaker 1: It is very difficult. But it's it's not you know, 155 00:08:19,240 --> 00:08:21,240 Speaker 1: it's it's just a sign of the times as a 156 00:08:21,320 --> 00:08:23,400 Speaker 1: sign of of where we're at, and it's a sign 157 00:08:23,440 --> 00:08:27,160 Speaker 1: of what has happened with the Fiat money system. Now, 158 00:08:27,160 --> 00:08:28,880 Speaker 1: by the way, you're listening to the Mark Moa show. 159 00:08:28,880 --> 00:08:31,600 Speaker 1: We're talking about bitcoin. We're talking about cryptocurrencies, We're talking 160 00:08:31,640 --> 00:08:35,680 Speaker 1: about the decentralized Revolution. I'm in the studio with Jason Barack. 161 00:08:36,080 --> 00:08:38,559 Speaker 1: You can find them on Twitter at Jason e Berrock. 162 00:08:39,160 --> 00:08:41,839 Speaker 1: Of course I'm on Twitter at one. Mark Moss and 163 00:08:41,920 --> 00:08:44,800 Speaker 1: I have him on and we're talking specifically about the 164 00:08:44,840 --> 00:08:47,360 Speaker 1: problems that are happening in the financial system with the 165 00:08:47,360 --> 00:08:50,640 Speaker 1: Federal Reserve and some of the dangers that are going 166 00:08:50,720 --> 00:08:54,559 Speaker 1: on inside the government that I think proves the use 167 00:08:54,640 --> 00:08:56,920 Speaker 1: case and the need for something like bitcoin. When we 168 00:08:56,960 --> 00:09:00,240 Speaker 1: come back, we're I want to talk about how you 169 00:09:00,280 --> 00:09:02,360 Speaker 1: said that the g d P, or the gross Domestic 170 00:09:02,400 --> 00:09:05,439 Speaker 1: Product of the government, is fake, and how the federal 171 00:09:05,520 --> 00:09:09,600 Speaker 1: government spending is now accounting for a majority of what's 172 00:09:09,920 --> 00:09:13,640 Speaker 1: put into that g DP. It's like, uh, I made 173 00:09:13,679 --> 00:09:15,360 Speaker 1: another video. I said, it's like a ponzi, and you 174 00:09:15,360 --> 00:09:17,679 Speaker 1: can't taper a ponzi. So we're gonna talk about those 175 00:09:17,679 --> 00:09:19,880 Speaker 1: things when we get back again. You're listening to the 176 00:09:19,880 --> 00:09:23,720 Speaker 1: Mark ma Show talking about bitcoin, talking about cryptocurrencies, talking 177 00:09:23,720 --> 00:09:27,200 Speaker 1: about the decentralized Revolution, and we're talking about what's happening 178 00:09:27,400 --> 00:09:29,520 Speaker 1: in the government and the Federal Reserve, we're gonna be 179 00:09:29,640 --> 00:09:32,200 Speaker 1: right back. Hey, everybody, welcome back. You're listening to the 180 00:09:32,200 --> 00:09:35,760 Speaker 1: Mark Moa Show. We're talking about bitcoin, we're talking about cryptocurrencies. 181 00:09:35,760 --> 00:09:38,560 Speaker 1: We're talking about the decentralized revolution. Each and every week. 182 00:09:38,800 --> 00:09:41,360 Speaker 1: I'm in the studio right now with Jason Barack is uh. 183 00:09:41,559 --> 00:09:43,840 Speaker 1: You can find him on Twitter at Jason e back 184 00:09:43,960 --> 00:09:46,679 Speaker 1: and he's uh, somebody that I spent a lot of 185 00:09:46,679 --> 00:09:50,040 Speaker 1: time talking about, UM. Talking to I should say about 186 00:09:50,080 --> 00:09:52,600 Speaker 1: what is going on with the FED and the debt 187 00:09:52,960 --> 00:09:56,480 Speaker 1: and all these things, and so UM we're talking about 188 00:09:56,520 --> 00:09:59,080 Speaker 1: before the break, we're talking about how the FED needs 189 00:09:59,120 --> 00:10:02,000 Speaker 1: these asset price is to continue going up because they 190 00:10:02,080 --> 00:10:05,800 Speaker 1: depend on that much tax revenue. UM. But Jason, something 191 00:10:05,800 --> 00:10:07,720 Speaker 1: else that you had told me is that the GDP, 192 00:10:08,040 --> 00:10:10,880 Speaker 1: the gross domestic product that the government uses, UM, is 193 00:10:10,920 --> 00:10:14,240 Speaker 1: all fake. Tell me about that. Well. Murray Rothbard, the 194 00:10:14,240 --> 00:10:17,080 Speaker 1: Austrian School economist, He used to say that government spending 195 00:10:17,120 --> 00:10:21,040 Speaker 1: should be subtracted from GDP. But as of as of 196 00:10:21,120 --> 00:10:23,600 Speaker 1: right now, government spending, depending upon how you measure it, 197 00:10:23,640 --> 00:10:27,959 Speaker 1: is about fifty GDP. Now, there is a lot of waste, fraud, 198 00:10:27,960 --> 00:10:30,880 Speaker 1: corruption and abuse here in the DC metro area. There's 199 00:10:30,960 --> 00:10:35,360 Speaker 1: a lot of bribes, there's a lot of unbidded contracts, 200 00:10:35,480 --> 00:10:37,920 Speaker 1: lobbying as part of it. There's also an enormous amount 201 00:10:37,960 --> 00:10:41,319 Speaker 1: of revolving door corruption between Wall Street in d C. 202 00:10:41,520 --> 00:10:44,480 Speaker 1: Between the regulators who want to go work at in 203 00:10:44,520 --> 00:10:47,920 Speaker 1: the regulatory department of hedge funds and investment banks, big pharma, 204 00:10:48,000 --> 00:10:51,120 Speaker 1: military industrial complex. So a lot of that government spending 205 00:10:51,160 --> 00:10:56,320 Speaker 1: mark is actually corporate welfare, is actually secret bailouts, covert 206 00:10:56,320 --> 00:11:01,280 Speaker 1: bailouts with based on bribes and unbidded contract so large corporations. 207 00:11:01,760 --> 00:11:04,160 Speaker 1: And this is common in a lot of other countries, 208 00:11:04,679 --> 00:11:07,040 Speaker 1: but um here in the United States. You know the 209 00:11:07,120 --> 00:11:10,000 Speaker 1: corruption levels. In the past, it was looked at as 210 00:11:10,080 --> 00:11:12,520 Speaker 1: not as corrupt as other countries, but now like the 211 00:11:12,600 --> 00:11:17,120 Speaker 1: United States has emerging market corruption levels. So the the 212 00:11:17,120 --> 00:11:19,200 Speaker 1: amount of government spent and the government is not going 213 00:11:19,240 --> 00:11:22,400 Speaker 1: to tax itself. So if the government is spending this much, 214 00:11:22,440 --> 00:11:25,800 Speaker 1: and the government is handing out enormous amounts of welfare payments, 215 00:11:25,880 --> 00:11:29,920 Speaker 1: all these different social transfer payments for healthcare payments and 216 00:11:30,000 --> 00:11:33,800 Speaker 1: welfare checks and ebt cards to the states, it's not 217 00:11:33,840 --> 00:11:35,600 Speaker 1: gonna that stuff is not gonna get taxed. Now the 218 00:11:35,600 --> 00:11:38,320 Speaker 1: individuals who are receiving some of these things. If they 219 00:11:38,800 --> 00:11:40,680 Speaker 1: based on income, they might get taxed on some of 220 00:11:40,720 --> 00:11:43,000 Speaker 1: these things depending upon how much like subsidies and stuff 221 00:11:43,040 --> 00:11:45,160 Speaker 1: they get. But that over the government's not paying taxes 222 00:11:45,200 --> 00:11:47,480 Speaker 1: that people here in d C. I mean, I've had 223 00:11:47,480 --> 00:11:50,360 Speaker 1: off the record conversations with people I've been at parties 224 00:11:50,400 --> 00:11:52,600 Speaker 1: and charity events. I mean, there's lots of people here 225 00:11:52,600 --> 00:11:54,000 Speaker 1: in DC that are making a lot of money and 226 00:11:54,000 --> 00:11:56,680 Speaker 1: not paying taxes or figuring out ways around it. There's 227 00:11:56,800 --> 00:11:59,920 Speaker 1: that type of level of corruption here in the DC 228 00:12:00,080 --> 00:12:03,520 Speaker 1: mat area. Yeah, you know, um, I I was. You know, 229 00:12:03,640 --> 00:12:05,720 Speaker 1: there's something I've I was told a long time ago, 230 00:12:05,760 --> 00:12:08,080 Speaker 1: and I'd always recite over and over is that the 231 00:12:08,160 --> 00:12:12,120 Speaker 1: government cannot give something that has not taken um. And 232 00:12:12,160 --> 00:12:14,240 Speaker 1: so in order for them to spend money, they have 233 00:12:14,320 --> 00:12:16,960 Speaker 1: to take it from somebody else. Um. Which is why 234 00:12:17,040 --> 00:12:19,800 Speaker 1: you said, you know, like GDP or should be removed 235 00:12:19,920 --> 00:12:22,600 Speaker 1: or government spending should be removed from GDP because it's 236 00:12:22,600 --> 00:12:26,400 Speaker 1: not real GDP. They've they're basically just redistributing that money. 237 00:12:26,440 --> 00:12:29,000 Speaker 1: So something that I've been kind of paying attention to 238 00:12:29,080 --> 00:12:31,839 Speaker 1: is this debt to GDP level and per like the 239 00:12:31,920 --> 00:12:36,680 Speaker 1: Kinsey and multiplier um Like, once you get over to GDP, UM, 240 00:12:36,720 --> 00:12:39,400 Speaker 1: the more debt you have, the less growth you're getting. 241 00:12:39,400 --> 00:12:41,200 Speaker 1: And eventually you don't get enough growth out of that 242 00:12:41,240 --> 00:12:43,360 Speaker 1: debt and you dig yourself deeper and deeper in a hole. 243 00:12:43,720 --> 00:12:46,200 Speaker 1: And then like, um, you know, once you get over 244 00:12:46,200 --> 00:12:49,319 Speaker 1: a hundred debt to GDP, then it's basically game over 245 00:12:49,360 --> 00:12:53,480 Speaker 1: at that point. Now we're at over a hundred debt 246 00:12:53,480 --> 00:12:56,480 Speaker 1: to GDP. But if what you're saying is fifty percent 247 00:12:56,520 --> 00:12:59,440 Speaker 1: of it is phony, then we might even be way higher. 248 00:12:59,720 --> 00:13:03,400 Speaker 1: Is something that you're thinking about. Well, the and this 249 00:13:03,440 --> 00:13:06,320 Speaker 1: is why the dollar hasn't crashed. You the entire global 250 00:13:06,360 --> 00:13:10,480 Speaker 1: financial system, all these emerging market governments, these foreign governments, 251 00:13:10,520 --> 00:13:13,760 Speaker 1: a lot of foreign corporations, they're using dollars still, they're 252 00:13:13,760 --> 00:13:16,920 Speaker 1: borrowing dollar denominated debt. When the dollar index gets weak, 253 00:13:16,960 --> 00:13:19,920 Speaker 1: and it got week in twenty, they borrowed even more dollars. 254 00:13:19,960 --> 00:13:22,400 Speaker 1: So as long as that continues, as long as dollar 255 00:13:22,480 --> 00:13:25,080 Speaker 1: denominated debt grows, the US is going to be able 256 00:13:25,080 --> 00:13:27,080 Speaker 1: to get away with this, get away with stag flee 257 00:13:27,120 --> 00:13:29,280 Speaker 1: tax life for a while. Plus you have all these 258 00:13:29,320 --> 00:13:32,160 Speaker 1: other governments and this is a global macro analysis. Here 259 00:13:32,400 --> 00:13:34,360 Speaker 1: you have all these other governments trying to do the 260 00:13:34,400 --> 00:13:37,800 Speaker 1: same thing. Um in and I've talked about this example. 261 00:13:37,840 --> 00:13:40,360 Speaker 1: I've done YouTube videos on this. There's almost two thousand 262 00:13:40,400 --> 00:13:42,559 Speaker 1: free YouTube videos on my channel if your listeners want 263 00:13:42,559 --> 00:13:45,640 Speaker 1: to check it out. But in the Indian government last 264 00:13:45,720 --> 00:13:49,360 Speaker 1: year in two run a record trades or plus. What 265 00:13:49,400 --> 00:13:52,000 Speaker 1: did they do? Their central bank printed a bunch of 266 00:13:52,040 --> 00:13:55,120 Speaker 1: their own currency, Indian routpees and bought US dollars. They 267 00:13:55,160 --> 00:13:57,800 Speaker 1: propped up, They helped prop up the dollar so they 268 00:13:57,840 --> 00:14:00,760 Speaker 1: could run an enormous trades or plus. Now India is 269 00:14:00,800 --> 00:14:02,760 Speaker 1: paying for it with a weaker currency and they're having 270 00:14:02,800 --> 00:14:06,839 Speaker 1: inflation problems and um you know, the normal problems from 271 00:14:06,880 --> 00:14:09,040 Speaker 1: creating a lot of currency and emerging market. But the 272 00:14:09,120 --> 00:14:12,720 Speaker 1: US has benefited heavily from this dollar standard system, the 273 00:14:12,720 --> 00:14:16,120 Speaker 1: world reserve currency. Plus you have with the current system, 274 00:14:16,160 --> 00:14:19,120 Speaker 1: all these other foreign governments for incorporations. If the dollar 275 00:14:19,200 --> 00:14:21,920 Speaker 1: gets weak, they borrow in dollars, so it creates like 276 00:14:22,160 --> 00:14:24,280 Speaker 1: this is why the dollar is basically in a trading range. 277 00:14:24,320 --> 00:14:27,320 Speaker 1: And these other governments and central banks are doing very 278 00:14:27,360 --> 00:14:31,080 Speaker 1: similar policies. I call it Japanification. Similar to Japan and 279 00:14:31,120 --> 00:14:36,240 Speaker 1: the United States. M hmm, yeah. And you know, I know, uh, 280 00:14:36,360 --> 00:14:38,400 Speaker 1: you know, another one of my friends, Brent Johnson, he 281 00:14:38,400 --> 00:14:40,600 Speaker 1: always talks about the you know, dollar milkshake theory and 282 00:14:40,600 --> 00:14:42,440 Speaker 1: how the dollar is going to continue to suck all 283 00:14:42,440 --> 00:14:45,360 Speaker 1: the liquidity out of all the other currencies, and um, 284 00:14:45,400 --> 00:14:47,480 Speaker 1: you know, we're we're seeing that to some extent. But 285 00:14:47,920 --> 00:14:50,240 Speaker 1: the one thing that I always think about is like, Okay, 286 00:14:50,280 --> 00:14:52,800 Speaker 1: that's great if the dollar is getting stronger against all 287 00:14:52,840 --> 00:14:56,160 Speaker 1: the other currencies, Like that's cool, but like it's still 288 00:14:56,160 --> 00:14:59,320 Speaker 1: losing ground in terms of purchasing power. Right, So it 289 00:14:59,320 --> 00:15:01,080 Speaker 1: may be stronger than the currencies, but it's still buying 290 00:15:01,120 --> 00:15:04,240 Speaker 1: me less houses and less stake at the grocery store. Right. Well, 291 00:15:04,280 --> 00:15:06,920 Speaker 1: the asset prices are being inflated, you have foreigners who 292 00:15:06,960 --> 00:15:09,800 Speaker 1: want to buy US assets because as bad as a 293 00:15:09,880 --> 00:15:12,280 Speaker 1: lot of Americans think things are here in the United States, 294 00:15:12,320 --> 00:15:14,760 Speaker 1: the US on a relative basis, still has better private 295 00:15:14,800 --> 00:15:17,240 Speaker 1: property rights and a lot of other countries. So there 296 00:15:17,240 --> 00:15:19,240 Speaker 1: are a lot of foreigners that want to invest in 297 00:15:19,320 --> 00:15:21,320 Speaker 1: royal state here in the United States. Even though property 298 00:15:21,360 --> 00:15:23,480 Speaker 1: taxes are going up, there are a lot of foreigners 299 00:15:23,480 --> 00:15:25,840 Speaker 1: who want to buy U s stocks at the right valuation. 300 00:15:26,160 --> 00:15:27,600 Speaker 1: There are a lot of foreigners is still want to 301 00:15:27,600 --> 00:15:30,320 Speaker 1: move to the United States, so Americans have to think 302 00:15:30,360 --> 00:15:33,520 Speaker 1: of things on a relative term that the US is 303 00:15:33,520 --> 00:15:36,440 Speaker 1: still attractive for an investment. UM. I don't agree with 304 00:15:36,480 --> 00:15:38,840 Speaker 1: a lot of what Brent I'm friends with Brent to 305 00:15:39,600 --> 00:15:42,520 Speaker 1: um the dollar. He's calling for a big dollar rally. 306 00:15:42,640 --> 00:15:45,040 Speaker 1: But they Fed and the Treasury want to try to 307 00:15:45,120 --> 00:15:47,400 Speaker 1: keep the dollar like in a trading range. So every 308 00:15:47,400 --> 00:15:51,560 Speaker 1: time the dollar gets too strong, that basically gives the politicians, 309 00:15:51,560 --> 00:15:54,680 Speaker 1: the bureaucrats, and the PhD economists here in d C 310 00:15:55,360 --> 00:15:57,760 Speaker 1: an excuse to spend more to try to weaken the dollar. 311 00:15:58,680 --> 00:16:00,520 Speaker 1: So that's gonna it's gonna be. I call it the 312 00:16:00,520 --> 00:16:03,240 Speaker 1: dollar tug of war. So the dollar index has been 313 00:16:03,240 --> 00:16:06,400 Speaker 1: a trading range for seven years. I expect that to 314 00:16:06,440 --> 00:16:08,720 Speaker 1: continue for the most part because of the way the 315 00:16:08,760 --> 00:16:11,280 Speaker 1: system is designed and what all these other governments and 316 00:16:11,280 --> 00:16:14,400 Speaker 1: central banks are doing. But Mark, the U S imports 317 00:16:14,520 --> 00:16:17,200 Speaker 1: so many things, and that's really where a lot of 318 00:16:17,240 --> 00:16:19,760 Speaker 1: this stagflation and shrink flation is coming. And I've been 319 00:16:19,800 --> 00:16:22,720 Speaker 1: talking about stagg flee tax lie and stagflation and shrink 320 00:16:22,720 --> 00:16:26,080 Speaker 1: flation for years. So a lot of people are talking 321 00:16:26,120 --> 00:16:29,240 Speaker 1: about stagflation right now, and yeah, it's bad right now. 322 00:16:29,240 --> 00:16:31,600 Speaker 1: It's double digits right now, and taxes are going up. 323 00:16:31,640 --> 00:16:33,640 Speaker 1: But I mean it's been going on for years. It's 324 00:16:33,680 --> 00:16:36,720 Speaker 1: been getting bad for years. It wasn't quite at these levels. 325 00:16:36,960 --> 00:16:39,320 Speaker 1: I was noticing it, but the majority of people weren't. 326 00:16:39,760 --> 00:16:43,160 Speaker 1: I think what has happened, though, is that the government statistics, 327 00:16:43,200 --> 00:16:46,040 Speaker 1: so like the c p I, which is a consumer 328 00:16:46,400 --> 00:16:49,440 Speaker 1: consumer price index but I call it the Changing Propaganda Index, 329 00:16:50,120 --> 00:16:52,920 Speaker 1: they can't hide the inflation as much as they used to, 330 00:16:53,560 --> 00:16:56,960 Speaker 1: so the average person. I'm seeing articles on mainstream financial 331 00:16:57,320 --> 00:17:00,200 Speaker 1: media talking about how the CPI is totally wrong. And 332 00:17:00,560 --> 00:17:02,360 Speaker 1: you know, ten years ago, we never would have seen 333 00:17:02,360 --> 00:17:08,880 Speaker 1: anything like this, calling government statistics basically total Yeah. Yeah, So, UM, 334 00:17:08,920 --> 00:17:11,240 Speaker 1: I want to talk more about the cp I. I 335 00:17:11,280 --> 00:17:13,600 Speaker 1: know we're expecting some numbers to come out tomorrow. I 336 00:17:13,600 --> 00:17:15,600 Speaker 1: want to dig into that, and UM, I have I 337 00:17:15,600 --> 00:17:17,040 Speaker 1: have a couple of questions that I want to ask 338 00:17:17,080 --> 00:17:19,520 Speaker 1: about that. Of course, UM, you know we need to 339 00:17:19,560 --> 00:17:22,119 Speaker 1: dig in. Uh, you're listening to the Marketma show. We're 340 00:17:22,119 --> 00:17:24,920 Speaker 1: talking about, of course, bitcoin and cryptocurrencies and the technological 341 00:17:24,960 --> 00:17:27,720 Speaker 1: revolution that we're witnessing. UM. Right now we're talking with 342 00:17:27,800 --> 00:17:31,760 Speaker 1: Jason Barack. We're talking about the Federal Reserve, the Central Bank, 343 00:17:31,800 --> 00:17:34,000 Speaker 1: we're talking about you know, the government spending and whatnot. 344 00:17:34,119 --> 00:17:36,080 Speaker 1: And the reason why is because, um, if you really 345 00:17:36,080 --> 00:17:38,280 Speaker 1: want to understand bitcoin and what's happening there, you kind 346 00:17:38,280 --> 00:17:42,240 Speaker 1: of have to understand what's happening on the global macroeconomic scale. 347 00:17:42,240 --> 00:17:44,120 Speaker 1: I think that kind of it's one of the big 348 00:17:44,160 --> 00:17:47,520 Speaker 1: reasons why this all matters. UM. So I'm in the 349 00:17:47,560 --> 00:17:49,440 Speaker 1: studio with Jason Barrack. You can find him on Twitter 350 00:17:49,560 --> 00:17:53,080 Speaker 1: at Jason E. Barack. UM. I think you can find 351 00:17:53,160 --> 00:17:55,720 Speaker 1: him on YouTube at Wall Street for Main Street as 352 00:17:56,080 --> 00:17:57,960 Speaker 1: as well. So we're gonna come back. We're gonna talk 353 00:17:58,000 --> 00:18:00,920 Speaker 1: about this new CPI number it's expected to come out, 354 00:18:00,960 --> 00:18:03,720 Speaker 1: these inflation numbers, what's happening with that so we can 355 00:18:04,200 --> 00:18:06,600 Speaker 1: make sure we're focused on our money and hopefully making 356 00:18:06,640 --> 00:18:08,280 Speaker 1: more of it. So we're gonna be right back with 357 00:18:08,359 --> 00:18:11,080 Speaker 1: Jason in a second. Don't go away, Hey, everyone, welcome back. 358 00:18:11,119 --> 00:18:13,040 Speaker 1: You are listening to the Mark Moa Show, and we're 359 00:18:13,040 --> 00:18:15,920 Speaker 1: talking about bitcoin, and we're talking about cryptocurrencies, and we're 360 00:18:15,960 --> 00:18:21,159 Speaker 1: talking about the decentralized revolution, each and every week, and 361 00:18:21,200 --> 00:18:23,080 Speaker 1: that's what we talked about each over week, over and 362 00:18:23,119 --> 00:18:25,840 Speaker 1: over and over. But we want to understand what's going on, 363 00:18:26,240 --> 00:18:28,840 Speaker 1: not just from a technical perspective or you know, what's 364 00:18:28,840 --> 00:18:30,720 Speaker 1: trending or whatever. We want to understand it from a 365 00:18:30,800 --> 00:18:35,440 Speaker 1: deep fundamental level, like what is really uh what what's 366 00:18:35,440 --> 00:18:38,200 Speaker 1: really working behind the scenes. And in my opinion, the 367 00:18:38,240 --> 00:18:42,680 Speaker 1: financial system is facing a reset about every eighty years, 368 00:18:42,680 --> 00:18:44,600 Speaker 1: we see this financial revolution, the end of this long 369 00:18:44,680 --> 00:18:46,680 Speaker 1: term credit cycle kind of come to an end. We're 370 00:18:46,680 --> 00:18:49,359 Speaker 1: seeing the Federal Reserve running out of tools. I mean, 371 00:18:49,400 --> 00:18:51,440 Speaker 1: they basically have two tools. They have interest rates, and 372 00:18:51,440 --> 00:18:53,560 Speaker 1: they have money supply. Interest rates are at zero or 373 00:18:53,560 --> 00:18:55,600 Speaker 1: negative in most parts of the world, and we have 374 00:18:55,680 --> 00:18:58,440 Speaker 1: too much debt and their backs up against the wall. 375 00:18:58,720 --> 00:19:00,760 Speaker 1: And so I'm in the studio with Jason iraq Um. 376 00:19:00,760 --> 00:19:02,560 Speaker 1: He's kind of an expert in this type of stuff, 377 00:19:02,600 --> 00:19:04,560 Speaker 1: and so we're kind of talking about that to help 378 00:19:04,600 --> 00:19:07,040 Speaker 1: you understand what's going on a little bit better. Um 379 00:19:07,040 --> 00:19:09,680 Speaker 1: not Jason, you you had mentioned right before the break 380 00:19:09,720 --> 00:19:13,359 Speaker 1: about the c p I, which is the consumer price index, 381 00:19:13,400 --> 00:19:17,000 Speaker 1: which is what the government uses to measure inflation, which 382 00:19:17,040 --> 00:19:19,000 Speaker 1: is um you know, it's fine for them, But I 383 00:19:19,000 --> 00:19:20,960 Speaker 1: think most of us measure inflation when we fill up 384 00:19:21,000 --> 00:19:23,600 Speaker 1: our gas in our car, or we have to go 385 00:19:23,640 --> 00:19:25,840 Speaker 1: to the grocery store and buy some food, UM, or 386 00:19:25,880 --> 00:19:27,480 Speaker 1: buy a house. I think we've measured it that way. 387 00:19:27,520 --> 00:19:30,679 Speaker 1: But um, rumors are that there's a cd P I 388 00:19:30,960 --> 00:19:33,440 Speaker 1: that is probably gonna be very bad, meaning it is 389 00:19:33,440 --> 00:19:36,159 Speaker 1: going to be very high, and they're already starting to 390 00:19:36,160 --> 00:19:39,480 Speaker 1: put out some warnings. I saw some headlines today saying, um, hey, 391 00:19:39,560 --> 00:19:42,120 Speaker 1: it may come out and be really bad, but it's 392 00:19:42,119 --> 00:19:44,320 Speaker 1: not as bad as it looks like. Have you seen 393 00:19:44,359 --> 00:19:47,720 Speaker 1: some stuff like that. Yeah, I've seen a political spin 394 00:19:47,880 --> 00:19:51,120 Speaker 1: from the Biden administration already talking about that. I mean, 395 00:19:51,280 --> 00:19:54,280 Speaker 1: whatever the headline number is, the the honest truth is, 396 00:19:54,320 --> 00:19:57,240 Speaker 1: it doesn't matter. And I'll give you some concrete examples 397 00:19:57,240 --> 00:20:00,560 Speaker 1: of that. So I didn't interview on George gam channel 398 00:20:00,560 --> 00:20:04,840 Speaker 1: a couple of months ago talking about the difference in rents. 399 00:20:04,960 --> 00:20:09,159 Speaker 1: So any normal consumer price index, they wait rent, but 400 00:20:09,240 --> 00:20:12,720 Speaker 1: they don't accurately measure what people are paying for rents. 401 00:20:12,720 --> 00:20:15,520 Speaker 1: So they don't go to the National Realtors Association, they 402 00:20:15,520 --> 00:20:19,560 Speaker 1: don't go to Zillo, they don't survey a respected group 403 00:20:19,640 --> 00:20:21,560 Speaker 1: of real estate agents. They don't do any of that. 404 00:20:22,000 --> 00:20:23,560 Speaker 1: And by the way, there was an article that came 405 00:20:23,600 --> 00:20:25,840 Speaker 1: out a couple of weeks ago in the USA today. 406 00:20:25,840 --> 00:20:27,720 Speaker 1: It was a headline. It was one of their main 407 00:20:27,800 --> 00:20:31,480 Speaker 1: stories that in small cities across the United States, this 408 00:20:31,560 --> 00:20:34,320 Speaker 1: is a record, first time in history, rents are up 409 00:20:34,400 --> 00:20:38,000 Speaker 1: in a year. On that yeah, over thirty percent, over 410 00:20:38,119 --> 00:20:41,760 Speaker 1: thirty percent. But in the consumer Price Index, the current 411 00:20:41,800 --> 00:20:45,160 Speaker 1: Consumer Price Index, they use something and this is a 412 00:20:45,200 --> 00:20:48,960 Speaker 1: fictional This is a fictional formula called owners equivalent rent. 413 00:20:49,280 --> 00:20:51,880 Speaker 1: It was only up i think earlier this year two 414 00:20:51,880 --> 00:20:55,720 Speaker 1: point four percent, so it is off over fifteen over 415 00:20:56,240 --> 00:21:01,280 Speaker 1: fourteen x. So aren't those two different measurements? Though they 416 00:21:01,320 --> 00:21:03,879 Speaker 1: have the owner's equivalent right and they have rent. Aren't 417 00:21:03,880 --> 00:21:08,800 Speaker 1: they two measurements? No, it's they do not accurately. So 418 00:21:09,320 --> 00:21:13,920 Speaker 1: the CPI also measures for healthcare insurance. Instead of like 419 00:21:14,480 --> 00:21:18,160 Speaker 1: serving people saying, my premiums are up, I'm getting less coverage, 420 00:21:18,200 --> 00:21:20,760 Speaker 1: my co pays are up. You know, going through the 421 00:21:20,800 --> 00:21:25,119 Speaker 1: actual on line item expenses of people's health care insurance monthly, 422 00:21:25,359 --> 00:21:27,760 Speaker 1: all the different expenses are up um, their co pays 423 00:21:27,760 --> 00:21:30,320 Speaker 1: are more money, their premiums or more money, paying more 424 00:21:30,359 --> 00:21:33,400 Speaker 1: for prescription medications, all these doctors business, all these things 425 00:21:33,480 --> 00:21:36,639 Speaker 1: right or are up Instead. What the consumer's price Index 426 00:21:36,720 --> 00:21:40,520 Speaker 1: does is it just measures Medicare and Medicaid reimbursements that 427 00:21:40,560 --> 00:21:43,640 Speaker 1: are sent over from the government. So these are intentionally 428 00:21:43,760 --> 00:21:46,439 Speaker 1: made to under report inflation. This has been going on 429 00:21:46,520 --> 00:21:49,400 Speaker 1: since the nineteen seventies and eighties. George Gammon did it, 430 00:21:49,520 --> 00:21:51,879 Speaker 1: did a video on this, I want to say, like 431 00:21:51,960 --> 00:21:54,520 Speaker 1: June or July of this year, talking about how the 432 00:21:54,560 --> 00:21:57,760 Speaker 1: Federal Reserve chairman in the seventies when the stagflation started, 433 00:21:57,800 --> 00:22:01,280 Speaker 1: before Paul Vulker, it was Arthur Burns. He started drastically 434 00:22:01,359 --> 00:22:05,480 Speaker 1: changing the consumer Price Index, and it's only gotten worse 435 00:22:05,920 --> 00:22:09,200 Speaker 1: every five or ten years. They keep on changing the formulas. 436 00:22:09,520 --> 00:22:12,120 Speaker 1: You've had people in Congress talk about it. The cost 437 00:22:12,160 --> 00:22:15,600 Speaker 1: of living adjustments mark hit the highest amount I think 438 00:22:15,640 --> 00:22:19,560 Speaker 1: in forty years they hit five points something five. I 439 00:22:19,640 --> 00:22:21,840 Speaker 1: did a video on this about four or five months ago. 440 00:22:22,240 --> 00:22:25,600 Speaker 1: But that's tens of billions of dollars more in payouts 441 00:22:25,600 --> 00:22:28,040 Speaker 1: the funeral government's going to have to pay because the 442 00:22:28,080 --> 00:22:31,080 Speaker 1: cost of living adjustments said that the real inflation was 443 00:22:31,160 --> 00:22:34,320 Speaker 1: much higher than the consumer price index. So it's in 444 00:22:34,359 --> 00:22:40,800 Speaker 1: the government's incentive to cheat, to lie for It's in 445 00:22:40,800 --> 00:22:43,199 Speaker 1: their incentive for two reasons. So one obviously is what 446 00:22:43,240 --> 00:22:44,840 Speaker 1: you just said, which a lot of people probably don't 447 00:22:44,880 --> 00:22:47,359 Speaker 1: catch on too. But um, if they keep that cost 448 00:22:47,440 --> 00:22:50,359 Speaker 1: of living low by manipulating that number, they don't have 449 00:22:50,440 --> 00:22:52,640 Speaker 1: to they don't have to increase the amount of payouts 450 00:22:52,640 --> 00:22:55,120 Speaker 1: like for Social Security. So if the cost of living 451 00:22:55,119 --> 00:22:56,320 Speaker 1: goes up, they have to pay out more money. So 452 00:22:56,359 --> 00:22:57,640 Speaker 1: if they can keep that are officially low, they don't 453 00:22:57,640 --> 00:22:59,320 Speaker 1: pay out as much. I think that's one, and then 454 00:22:59,320 --> 00:23:01,080 Speaker 1: I think the other reason, and you can tell me 455 00:23:01,119 --> 00:23:02,880 Speaker 1: if I'm right here, But you know, the other reason 456 00:23:03,000 --> 00:23:04,480 Speaker 1: is just if they can say that they don't have 457 00:23:04,560 --> 00:23:06,919 Speaker 1: enough inflation, they can keep printing more money. Right if 458 00:23:06,960 --> 00:23:08,879 Speaker 1: inflations running out, hi, they have to pull back, so 459 00:23:08,880 --> 00:23:11,320 Speaker 1: it kind of gives them those to two levers. That 460 00:23:11,320 --> 00:23:13,600 Speaker 1: that is definitely part of Well, they said they wanted 461 00:23:13,600 --> 00:23:17,000 Speaker 1: a minimum the official FED stance a couple of years ago, 462 00:23:17,080 --> 00:23:20,280 Speaker 1: before stagflation became really obvious to everyone. In the last 463 00:23:20,359 --> 00:23:23,840 Speaker 1: like twelve months or so, the FED was officially saying 464 00:23:23,840 --> 00:23:26,000 Speaker 1: that they had to have around two percent inflation, and 465 00:23:26,000 --> 00:23:28,879 Speaker 1: the official numbers weren't there. But again, and I'll go 466 00:23:28,920 --> 00:23:31,679 Speaker 1: back to what I said earlier in past segments, it's 467 00:23:31,720 --> 00:23:33,800 Speaker 1: all about the wealth effect. The FED doesn't want to 468 00:23:33,800 --> 00:23:37,399 Speaker 1: talk about this publicly anymore because they created a nation 469 00:23:37,440 --> 00:23:41,479 Speaker 1: of speculators and large wealth disparity. They've made the rich richer, 470 00:23:41,880 --> 00:23:44,560 Speaker 1: they've made the poor, the working class, the middle class. 471 00:23:44,600 --> 00:23:48,000 Speaker 1: They made our standard of living much more difficult. So 472 00:23:48,119 --> 00:23:51,119 Speaker 1: our dollars are purchasing power is going less and less. 473 00:23:51,480 --> 00:23:53,760 Speaker 1: So now the Fed publicly, if you look at the 474 00:23:53,800 --> 00:23:56,439 Speaker 1: speeches and the stuff they say, they don't want to 475 00:23:56,440 --> 00:23:59,480 Speaker 1: talk about the wealth effect anymore. Even though that that 476 00:23:59,560 --> 00:24:02,880 Speaker 1: was a sheal FED policy, there was articles that op eds. 477 00:24:02,960 --> 00:24:05,879 Speaker 1: Ben Berniki wrote an op ed in the Washington Post 478 00:24:05,880 --> 00:24:09,320 Speaker 1: in November talking about the wealth effect. Your listeners can 479 00:24:09,359 --> 00:24:11,359 Speaker 1: go back and look it up and read. It's on 480 00:24:11,400 --> 00:24:14,439 Speaker 1: the Fed's website to talking about all the benefits of 481 00:24:14,480 --> 00:24:17,480 Speaker 1: the wealth effect and asset price inflation and how it 482 00:24:17,520 --> 00:24:20,720 Speaker 1: won't cause consumer price inflation. They won't have the money 483 00:24:20,720 --> 00:24:23,159 Speaker 1: supply which has gone bonkers here in the United States. 484 00:24:23,400 --> 00:24:25,720 Speaker 1: The Austrian true money supply, I think in the last 485 00:24:25,760 --> 00:24:27,720 Speaker 1: like two and a half years, is up six point 486 00:24:27,800 --> 00:24:30,800 Speaker 1: five trillion. Kyle bassett Um. The way the broad money 487 00:24:30,840 --> 00:24:34,760 Speaker 1: supply is measured is up in the last like eighteen months, 488 00:24:35,119 --> 00:24:38,080 Speaker 1: So the total money supplying credit available has gone up, 489 00:24:38,080 --> 00:24:40,680 Speaker 1: and that's lee and the real economy is not producing 490 00:24:40,960 --> 00:24:43,960 Speaker 1: nearly as many goods as it was prior to the pandemic. 491 00:24:44,080 --> 00:24:47,240 Speaker 1: So you have more currency and credit chasing the same 492 00:24:47,400 --> 00:24:50,159 Speaker 1: or fewer amounts of goods, and that's why we have 493 00:24:50,640 --> 00:24:55,200 Speaker 1: such bad stag stag inflation on many different items. It's 494 00:24:55,240 --> 00:24:58,359 Speaker 1: not the supply chach. It's there are supply chain problems, 495 00:24:58,600 --> 00:25:01,359 Speaker 1: but there's so much current seen credit and it's chasing 496 00:25:01,400 --> 00:25:06,119 Speaker 1: the same or fewer goods, right, which is in the past. 497 00:25:06,640 --> 00:25:09,400 Speaker 1: High prices where the solution for high prices. So when 498 00:25:09,400 --> 00:25:12,040 Speaker 1: prices go up, two things happen. One people buy less 499 00:25:12,080 --> 00:25:15,119 Speaker 1: of those goods, and two people make more of those goods. 500 00:25:15,280 --> 00:25:17,639 Speaker 1: But when you have massive amounts inflation and prices go up, 501 00:25:17,680 --> 00:25:19,960 Speaker 1: one the people just keep buying because they've been given 502 00:25:19,960 --> 00:25:22,800 Speaker 1: so much stimulus, and too because of the inflation, it's 503 00:25:22,840 --> 00:25:24,560 Speaker 1: harder for people to make more good so that it's 504 00:25:24,560 --> 00:25:27,040 Speaker 1: the opposite kind of going against you, and so high 505 00:25:27,080 --> 00:25:30,480 Speaker 1: prices don't here the high prices well Mark also to 506 00:25:30,480 --> 00:25:33,480 Speaker 1: out to your points there, you also have politicians, bureaucrats, 507 00:25:33,560 --> 00:25:38,480 Speaker 1: regulators telling business owners they can't produce, telling them they 508 00:25:38,520 --> 00:25:41,480 Speaker 1: can't hire employees, telling them they can't produce, giving them 509 00:25:41,520 --> 00:25:44,840 Speaker 1: all these extra rules, regulations, red tape to maintain their 510 00:25:44,880 --> 00:25:47,960 Speaker 1: business and try to meet consumer demand. So it's it's 511 00:25:48,000 --> 00:25:51,480 Speaker 1: an enormous headache trying to be a business owner right now. Yeah, 512 00:25:51,560 --> 00:25:55,359 Speaker 1: I mean and and and it only further exascerbates the problem, 513 00:25:55,359 --> 00:25:58,119 Speaker 1: which is people wanting to quit their jobs to become 514 00:25:58,160 --> 00:26:01,560 Speaker 1: full time traders and again stopped making goods and services 515 00:26:01,600 --> 00:26:04,800 Speaker 1: that would actually help the situation and instead continue to 516 00:26:05,359 --> 00:26:09,320 Speaker 1: um just trade and produce no value to the world. 517 00:26:10,000 --> 00:26:12,720 Speaker 1: I agree, But unfortunately for and if you have to 518 00:26:12,720 --> 00:26:15,080 Speaker 1: look at this from a US federal government tax perspective, 519 00:26:15,119 --> 00:26:17,400 Speaker 1: if you work in the Treasure Department, they don't care 520 00:26:17,440 --> 00:26:19,960 Speaker 1: how the tax revenues are produced. So if the government 521 00:26:20,000 --> 00:26:21,960 Speaker 1: in the past, if they have to invest trillions of 522 00:26:22,000 --> 00:26:24,640 Speaker 1: dollars in an infrastructure plan and they return on investment 523 00:26:24,680 --> 00:26:27,760 Speaker 1: for that spending might be very low. The government might 524 00:26:27,800 --> 00:26:30,480 Speaker 1: not collect how much tax revenues. If the government doesn't 525 00:26:30,520 --> 00:26:32,720 Speaker 1: have to spend trillions of dollars and all of a sudden, 526 00:26:32,760 --> 00:26:35,439 Speaker 1: bitcoin goes to a million dollars, two million dollars. You 527 00:26:35,480 --> 00:26:38,520 Speaker 1: have people trading cryptocurrencies and f t s, you have 528 00:26:38,600 --> 00:26:40,439 Speaker 1: tons and tons, and you talked about this on your 529 00:26:40,440 --> 00:26:44,000 Speaker 1: show earlier. Taxable events, right, every time people buy something 530 00:26:44,000 --> 00:26:46,840 Speaker 1: with crypto, every time people trade crypto, all these things 531 00:26:46,880 --> 00:26:50,439 Speaker 1: are taxable events and the i R S. This is 532 00:26:50,440 --> 00:26:53,120 Speaker 1: why on your tax forms if you're an American here, 533 00:26:53,359 --> 00:26:57,240 Speaker 1: this is why there's so many questions lately asking um, 534 00:26:57,280 --> 00:26:59,879 Speaker 1: are you being paid in cryptocurrency or bitcoin? Are you 535 00:27:00,000 --> 00:27:03,159 Speaker 1: trading cryptocurrency? And it's only going to get worse going forward, 536 00:27:03,400 --> 00:27:07,360 Speaker 1: the taxes on assets, the government going after crypto, trying 537 00:27:07,400 --> 00:27:09,760 Speaker 1: to monitor people. So it's going to be a very 538 00:27:09,840 --> 00:27:12,439 Speaker 1: dangerous time for people here in the United States if 539 00:27:12,480 --> 00:27:15,800 Speaker 1: you own assets and you own a business. Yeah, yeah, 540 00:27:15,840 --> 00:27:18,240 Speaker 1: that's true. They're they're trying to seal off all the whole, 541 00:27:18,359 --> 00:27:20,880 Speaker 1: all the holes, prevent any escape hatches, and they want 542 00:27:20,920 --> 00:27:23,360 Speaker 1: to try to collect every ounce of revenue they can. 543 00:27:23,640 --> 00:27:26,480 Speaker 1: You're listening to the Mark Mo Show. We're talking about bitcoin, cryptocurrencies, 544 00:27:26,480 --> 00:27:29,280 Speaker 1: the decentralized revolution. I'm in this studio with Jason Barack. 545 00:27:29,320 --> 00:27:31,800 Speaker 1: We're talking a bigger picture about the FED, the central 546 00:27:31,840 --> 00:27:33,600 Speaker 1: bank in the government and what that is going to 547 00:27:33,640 --> 00:27:37,080 Speaker 1: do to cryptocurrencies. Don't go away, We'll be right back. Everyone. 548 00:27:37,119 --> 00:27:39,160 Speaker 1: Welcome back. You're listening to the Mark mo Show. We're 549 00:27:39,160 --> 00:27:41,840 Speaker 1: talking about bitcoin, We're talking about cryptocurrencies, We're talking about 550 00:27:41,840 --> 00:27:45,040 Speaker 1: the decentralized revolution. You know, there's so many angles to 551 00:27:45,080 --> 00:27:47,240 Speaker 1: talk about bitcoin from up and talking about it for 552 00:27:47,280 --> 00:27:49,480 Speaker 1: seven years, and I don't find a shortage of things 553 00:27:49,480 --> 00:27:52,760 Speaker 1: to talk about. Because there's the philosophical side, and there's 554 00:27:52,800 --> 00:27:56,520 Speaker 1: the technological side, there's the monetary history side, the game 555 00:27:56,560 --> 00:27:58,040 Speaker 1: theory side, and we can go on and on and on. 556 00:27:58,280 --> 00:27:59,520 Speaker 1: But one of the things I like to spend a 557 00:27:59,520 --> 00:28:02,320 Speaker 1: lot of time to talking about is why why doesn't 558 00:28:02,320 --> 00:28:05,800 Speaker 1: even matter? Um solutions are supposed to come to problems, 559 00:28:05,800 --> 00:28:07,800 Speaker 1: And we have a lot of problems in the financial 560 00:28:07,840 --> 00:28:09,919 Speaker 1: system today where at the end of a long term 561 00:28:09,960 --> 00:28:13,440 Speaker 1: credit cycle, the reserve system, the dollar system is starting 562 00:28:13,480 --> 00:28:16,000 Speaker 1: to crack um and and the ship is starting to 563 00:28:16,040 --> 00:28:18,920 Speaker 1: kind of sink, so to speak. Now, I'm so I'd 564 00:28:18,920 --> 00:28:20,600 Speaker 1: like to take a look at those the kind of 565 00:28:20,640 --> 00:28:23,760 Speaker 1: bigger macro side I'm in the studio with Jason Barack. 566 00:28:23,840 --> 00:28:25,840 Speaker 1: You can find them on Twitter at Jason ib iraq, 567 00:28:26,160 --> 00:28:27,760 Speaker 1: and we trade a lot of messages back and forth. 568 00:28:27,760 --> 00:28:29,200 Speaker 1: He's an expert in these things, and so I thought 569 00:28:29,240 --> 00:28:31,720 Speaker 1: i'd bring them on. And Um, Jason, you were making 570 00:28:31,720 --> 00:28:35,159 Speaker 1: the case before, how um, you know fift of the 571 00:28:35,200 --> 00:28:37,480 Speaker 1: g d P is kind of fake. Um, they're basically 572 00:28:37,560 --> 00:28:39,680 Speaker 1: taking money and spending money on themselves, but it doesn't 573 00:28:39,720 --> 00:28:41,680 Speaker 1: go back into being a productive piece of the economy. 574 00:28:42,000 --> 00:28:46,000 Speaker 1: But you're also talking about how they need asset prices 575 00:28:46,040 --> 00:28:49,400 Speaker 1: to continue going higher because of the capital gains taxes 576 00:28:49,400 --> 00:28:51,920 Speaker 1: that they're making and how much of a big piece 577 00:28:51,920 --> 00:28:54,560 Speaker 1: of the budget that is. And if asset prices go down, 578 00:28:54,840 --> 00:28:57,520 Speaker 1: cap gains taxes go down, and then their budget goes down, 579 00:28:57,520 --> 00:29:01,000 Speaker 1: that's a big problem. But what about, um, what about 580 00:29:01,040 --> 00:29:05,360 Speaker 1: all those asset prices staying high because they're collateral and 581 00:29:05,400 --> 00:29:08,800 Speaker 1: so the whole system is so levered up that you know, 582 00:29:09,080 --> 00:29:12,719 Speaker 1: the real estate and the stocks, etcetera makeup collateral. And 583 00:29:12,760 --> 00:29:15,840 Speaker 1: if the markets start dropping, collateral starts drying up, it 584 00:29:15,880 --> 00:29:19,080 Speaker 1: could turn into this entire cascading effect. What do you 585 00:29:19,080 --> 00:29:22,040 Speaker 1: think about that? Well, yeah, you start getting margin calls. 586 00:29:22,040 --> 00:29:25,320 Speaker 1: Look what happened in the last week with the VIX. 587 00:29:25,440 --> 00:29:29,800 Speaker 1: The VIX hit thirty early Monday morning, and then it 588 00:29:29,840 --> 00:29:32,800 Speaker 1: was monkey hammered back down with manipulation from one of 589 00:29:32,840 --> 00:29:35,440 Speaker 1: the four or five or six different plunge protection teams. 590 00:29:35,480 --> 00:29:39,120 Speaker 1: Within about forty hours, it was knocked back down to twenty. 591 00:29:39,760 --> 00:29:42,400 Speaker 1: And that's because of the leverage short volatility trade that's 592 00:29:42,400 --> 00:29:45,800 Speaker 1: over three trillion in size according to volatility hedge fund 593 00:29:45,800 --> 00:29:49,280 Speaker 1: manager Christopher Cole. That means that when the VIX starts 594 00:29:49,320 --> 00:29:53,480 Speaker 1: going up, all these portfolio managers at investment banks that 595 00:29:53,600 --> 00:29:58,000 Speaker 1: trade tons of bonds on leverage between seven x or more. 596 00:29:58,120 --> 00:30:00,200 Speaker 1: Some of them are ten x or more leverage. The 597 00:30:00,240 --> 00:30:03,360 Speaker 1: family offices like archegos, and there's a lot more family 598 00:30:03,400 --> 00:30:06,520 Speaker 1: offices that copycatted the same or similar traits to our 599 00:30:06,600 --> 00:30:09,440 Speaker 1: chegos and hedge funds that are over leveraged. So yeah, 600 00:30:09,560 --> 00:30:13,160 Speaker 1: that would cause temporary deflation. But Mark, I've been in 601 00:30:13,200 --> 00:30:16,960 Speaker 1: the financial industry now for my fifteenth year, will be 602 00:30:17,120 --> 00:30:20,760 Speaker 1: next year in two working different jobs in the financial industry, 603 00:30:20,800 --> 00:30:24,960 Speaker 1: and I could tell you that FED policy they will 604 00:30:25,000 --> 00:30:28,360 Speaker 1: not allow deflation for long periods of time anymore. There 605 00:30:28,400 --> 00:30:31,640 Speaker 1: will be rules changes, there will be bailouts, there will 606 00:30:31,680 --> 00:30:34,760 Speaker 1: be goal posts moving, there will be secret bailouts, there 607 00:30:34,760 --> 00:30:40,080 Speaker 1: will be press release manipulation, announcing as many liquidity programs 608 00:30:40,120 --> 00:30:44,560 Speaker 1: as possible to prevent these asset prices from staying too 609 00:30:44,600 --> 00:30:47,800 Speaker 1: low for too long. So in two thousand eight, two 610 00:30:47,800 --> 00:30:51,000 Speaker 1: thousand nine, we had low asset prices, we had UM 611 00:30:51,320 --> 00:30:54,200 Speaker 1: low asset prices and quote unquote deflation according to the 612 00:30:54,200 --> 00:30:57,600 Speaker 1: government statistics, with UM money and credit dropping for maybe 613 00:30:57,600 --> 00:31:01,400 Speaker 1: six to eight months. In February and Arch of we 614 00:31:01,440 --> 00:31:06,160 Speaker 1: had deflation for six to eight weeks. So perspective here, 615 00:31:06,480 --> 00:31:11,120 Speaker 1: we had deflation in an over leverage system, where in 616 00:31:11,160 --> 00:31:14,000 Speaker 1: my opinion, mark the entire system, now, the global financial system. 617 00:31:14,040 --> 00:31:17,480 Speaker 1: We're over three hundred trillion now in total government debt 618 00:31:17,600 --> 00:31:21,400 Speaker 1: and and UM corporate debt, and it's it's just keeps growing. 619 00:31:21,480 --> 00:31:24,760 Speaker 1: It seems to grow now by twenty trillion now every 620 00:31:24,880 --> 00:31:28,320 Speaker 1: twelve to eighteen months, twenty trillion or more globally, so 621 00:31:28,960 --> 00:31:32,760 Speaker 1: even more debt is added. And yet the current debt 622 00:31:32,960 --> 00:31:35,840 Speaker 1: can't be paid back, the current debt can barely be serviced. 623 00:31:36,120 --> 00:31:39,760 Speaker 1: So this system is a Ponzi scheme. But the government 624 00:31:39,800 --> 00:31:43,080 Speaker 1: can't tax deflation. So that's why the government one of 625 00:31:43,120 --> 00:31:46,800 Speaker 1: the main reasons why they won't allow deflation, even though um, 626 00:31:46,920 --> 00:31:48,880 Speaker 1: if you're an Austrian school economists, that might have been 627 00:31:48,880 --> 00:31:51,600 Speaker 1: the cure. But the current system, the people in power, 628 00:31:51,680 --> 00:31:54,440 Speaker 1: the policy makers at these central banks, they won't allow 629 00:31:54,600 --> 00:31:59,520 Speaker 1: deflation for a long period of time without changing the roles, bellouts, manipulation, 630 00:31:59,520 --> 00:32:04,360 Speaker 1: all these and things. So what does that mean? They 631 00:32:04,440 --> 00:32:09,640 Speaker 1: won't allow deflation. I mean they won't allow the markets 632 00:32:09,640 --> 00:32:11,560 Speaker 1: to ever drop again. Because I know a lot of people, 633 00:32:11,800 --> 00:32:14,800 Speaker 1: including myself, uh, we're expecting you know, this big, this 634 00:32:14,920 --> 00:32:17,000 Speaker 1: big market crash to come. I've started to kind of 635 00:32:17,080 --> 00:32:18,880 Speaker 1: change my mind on that, maybe to kind of what 636 00:32:18,920 --> 00:32:21,840 Speaker 1: you're what you're saying, But what what do you mean? 637 00:32:21,880 --> 00:32:25,239 Speaker 1: They won't allow asset deflation, so they won't allow it, Uh, 638 00:32:25,400 --> 00:32:28,640 Speaker 1: the caveatists for long periods of time. So look at 639 00:32:28,680 --> 00:32:32,440 Speaker 1: the desperation, all the crazy announcements the FED had to 640 00:32:32,520 --> 00:32:37,560 Speaker 1: make during the span of February and March to try 641 00:32:37,600 --> 00:32:40,320 Speaker 1: to restart bond markets all over the globe, to try 642 00:32:40,320 --> 00:32:42,320 Speaker 1: to restart credit markets in the US and all over 643 00:32:42,360 --> 00:32:46,120 Speaker 1: the globe. Wall Street banks wanted to restart selling junk bonds, 644 00:32:46,520 --> 00:32:51,160 Speaker 1: collateralized loan obligations, leverage loans, all these credit and derivatives products. 645 00:32:51,320 --> 00:32:55,560 Speaker 1: Wall Street love selling this crop. The bond salesman on 646 00:32:55,600 --> 00:32:57,640 Speaker 1: Wall Street, the hedge fund guys that go on Real 647 00:32:57,720 --> 00:33:00,520 Speaker 1: Vision TV and and talk about their ball on trades 648 00:33:00,520 --> 00:33:03,520 Speaker 1: blah blah blah, their leverage bond trades and out which 649 00:33:03,560 --> 00:33:07,400 Speaker 1: they are. They love selling this stuff. And during a 650 00:33:07,440 --> 00:33:12,440 Speaker 1: deflationary period they can't sell the stuff. So there's a 651 00:33:12,480 --> 00:33:16,520 Speaker 1: bunch of different reasons why the federal government, the Federal Reserve, 652 00:33:16,560 --> 00:33:19,200 Speaker 1: the US Treasury does not want to allow deflation for 653 00:33:19,240 --> 00:33:21,080 Speaker 1: long periods of time, and they're going to change. They'll 654 00:33:21,120 --> 00:33:23,400 Speaker 1: change the rules a whole bunch of times. Unfortunately, the 655 00:33:23,480 --> 00:33:26,640 Speaker 1: average person, mark the retail investor, the average person does 656 00:33:26,680 --> 00:33:31,240 Speaker 1: not want to hear that the rules could change next week, 657 00:33:31,600 --> 00:33:33,520 Speaker 1: a couple of weeks from now. After that they can 658 00:33:33,600 --> 00:33:35,800 Speaker 1: change a month from they could keep changing. The average 659 00:33:35,800 --> 00:33:37,959 Speaker 1: person does not want to hear the goalpost move. They 660 00:33:38,000 --> 00:33:40,360 Speaker 1: moved again. The average person does not want to hear this. 661 00:33:40,960 --> 00:33:43,240 Speaker 1: When I talk to investors and other people, they want 662 00:33:43,320 --> 00:33:48,320 Speaker 1: a easy solution to a very difficult problem that unfortunately, 663 00:33:48,400 --> 00:33:51,320 Speaker 1: right now does not have a solution. And the problem 664 00:33:51,520 --> 00:33:57,760 Speaker 1: is the policymakers, these politicians, bureaucrats, regulators, central banksters, they 665 00:33:57,800 --> 00:34:02,040 Speaker 1: are doing really stupid things and it's continuing. And that's 666 00:34:02,040 --> 00:34:05,360 Speaker 1: why you have all these traders. They're gambling that they're 667 00:34:05,360 --> 00:34:07,320 Speaker 1: going to get a bail up. They're gambling that the 668 00:34:07,320 --> 00:34:09,759 Speaker 1: FED is going to change the rules, and they're not 669 00:34:09,800 --> 00:34:11,520 Speaker 1: going to go to prison. They're not gonna lose their 670 00:34:11,600 --> 00:34:14,080 Speaker 1: jobs if they have a margin call and their hedge 671 00:34:14,120 --> 00:34:17,200 Speaker 1: fund gets shut down. Okay, twelve months, eighteen months from now, 672 00:34:17,239 --> 00:34:20,520 Speaker 1: they're going to restart. It's gonna go right back to 673 00:34:20,840 --> 00:34:25,200 Speaker 1: selling junk bonds. And that's why corporate debt has doubled 674 00:34:25,560 --> 00:34:28,600 Speaker 1: since two thousand nine. Corporate debt has doubled, cash flows 675 00:34:28,600 --> 00:34:33,120 Speaker 1: haven't doubled. The money hasn't been um invested properly by corporations, 676 00:34:33,120 --> 00:34:35,960 Speaker 1: has been used share by backs on debt and increasing dividends. 677 00:34:36,000 --> 00:34:38,960 Speaker 1: And by the way, dividends marker um. The average retail 678 00:34:38,960 --> 00:34:42,120 Speaker 1: investor doesn't think about this. Dividends for an American investor 679 00:34:42,160 --> 00:34:47,160 Speaker 1: are triple taxed, so corporations pay their corporate profit. Corporations 680 00:34:47,200 --> 00:34:50,120 Speaker 1: pay taxes on their dividends before they pay them to shareholders, 681 00:34:50,160 --> 00:34:53,040 Speaker 1: and the shareholders pay their dividends, so the average person 682 00:34:53,120 --> 00:34:56,560 Speaker 1: does not think about any of this. The government loves 683 00:34:56,840 --> 00:34:59,839 Speaker 1: asset price inflation and that's why the policies like this. 684 00:35:02,120 --> 00:35:05,279 Speaker 1: So so we can have we can have deflation, we 685 00:35:05,280 --> 00:35:08,400 Speaker 1: can have deflation, but it will not last at this point. 686 00:35:08,440 --> 00:35:11,879 Speaker 1: I'd be shocked if it lasts for more than three 687 00:35:11,960 --> 00:35:14,919 Speaker 1: or four months at this point, because that's how ridiculous 688 00:35:15,120 --> 00:35:17,640 Speaker 1: the system is. The system is a currency and credit 689 00:35:17,680 --> 00:35:20,920 Speaker 1: Ponzi scheme with government debt in corporate debt. So you're 690 00:35:20,920 --> 00:35:23,560 Speaker 1: basically saying, if we see a dip in the markets, 691 00:35:23,960 --> 00:35:25,880 Speaker 1: um it would be very short lived, which would then 692 00:35:25,920 --> 00:35:29,520 Speaker 1: be met with an enormous amount of central bank manipulation 693 00:35:29,560 --> 00:35:31,440 Speaker 1: to push the markets back up to new all time highs. 694 00:35:31,840 --> 00:35:34,239 Speaker 1: So if the FED does not want to do that, 695 00:35:34,600 --> 00:35:36,920 Speaker 1: then the FED. If the FED does not want to 696 00:35:36,960 --> 00:35:38,600 Speaker 1: do that to help the U. S. Treasury with capital 697 00:35:38,640 --> 00:35:40,920 Speaker 1: gains taxes, then what the Fed's gonna have to do 698 00:35:41,000 --> 00:35:42,880 Speaker 1: is they're gonna have to buy either They're gonna have 699 00:35:42,920 --> 00:35:46,040 Speaker 1: to cover all those lost capital gains taxes that the 700 00:35:46,080 --> 00:35:48,919 Speaker 1: Treasury was bringing in. The FED would have to mount 701 00:35:49,000 --> 00:35:51,160 Speaker 1: the FEDS trapped. They don't want to make this the 702 00:35:51,160 --> 00:35:53,719 Speaker 1: fedest trapped. The balance sheet is not going to go 703 00:35:53,760 --> 00:35:57,880 Speaker 1: down significantly really ever again unless the US government drastically 704 00:35:57,880 --> 00:36:01,080 Speaker 1: cut spending or the US loses world reserve currency status 705 00:36:01,080 --> 00:36:04,239 Speaker 1: in the near future. Yeah, got it. So the FED 706 00:36:04,239 --> 00:36:07,080 Speaker 1: would have to cover the losses all these capital gains 707 00:36:07,120 --> 00:36:10,160 Speaker 1: taxes that the and and trust me the Treasury now 708 00:36:10,480 --> 00:36:12,480 Speaker 1: and i've and I've seen President. Have you been to 709 00:36:12,560 --> 00:36:15,120 Speaker 1: the DC Blockchain something yet here in d C? You 710 00:36:15,120 --> 00:36:16,759 Speaker 1: should come if they have an in person one at 711 00:36:16,760 --> 00:36:20,760 Speaker 1: Georgetown and listen to people from the U. S. Treasury, 712 00:36:20,800 --> 00:36:23,160 Speaker 1: listened to people from the Fellow Reserve, listen to people 713 00:36:23,200 --> 00:36:26,440 Speaker 1: from the Securities and Exchange Commission and seef TC speak 714 00:36:26,480 --> 00:36:30,000 Speaker 1: at the event. They've owned bitcoin for years. They love bitcoin. 715 00:36:30,200 --> 00:36:33,360 Speaker 1: They buy bitcoin for family members, but they want to 716 00:36:33,440 --> 00:36:35,799 Speaker 1: tax the crap out of it too. They want to 717 00:36:35,880 --> 00:36:38,480 Speaker 1: tax and regulated, which is which is fine. They can 718 00:36:38,480 --> 00:36:41,359 Speaker 1: tax it, just pump it to the moon. Hey, that's that, 719 00:36:41,480 --> 00:36:43,680 Speaker 1: thanks so much man. So uh you heard it from 720 00:36:43,800 --> 00:36:46,400 Speaker 1: from Jason Jason Barack. Find them on Twitter at Jason E. 721 00:36:46,600 --> 00:36:49,319 Speaker 1: Barack UM. If you like this kind of content from him, 722 00:36:49,360 --> 00:36:50,960 Speaker 1: you can follow him on Wall Street from main Street 723 00:36:51,239 --> 00:36:55,480 Speaker 1: on YouTube as well, And uh, that's it. I don't know, 724 00:36:55,600 --> 00:36:58,040 Speaker 1: the markets aren't. The Fed can't let the markets crash. 725 00:36:58,160 --> 00:37:00,200 Speaker 1: That means more stimulus. That means your dollar is going 726 00:37:00,239 --> 00:37:02,960 Speaker 1: to continue to lose purchasing power. That means you need 727 00:37:03,000 --> 00:37:05,799 Speaker 1: to continue to find ways to maintain or increase your 728 00:37:05,800 --> 00:37:08,840 Speaker 1: purchasing power, which, of course bitcoin is my favorite option. 729 00:37:09,080 --> 00:37:10,760 Speaker 1: And that's it for today. Thanks for listening.