WEBVTT - The US Debt Can’t be Repaid - So What Will Happen Instead? 0:00:00.400 --> 0:00:03.800 What happens when the government's debt can't be repaid, Well, 0:00:04.120 --> 0:00:06.840 it's different than when it's your personal credit card versus, 0:00:06.880 --> 0:00:09.399 of course, the government's debt, but it's also sort of 0:00:09.480 --> 0:00:12.000 the same thing, meaning if the debt can't be repaid, 0:00:12.280 --> 0:00:14.320 then there has to be some sort of an agreement, 0:00:14.480 --> 0:00:16.960 like it's a for example, on personal debt, you might 0:00:17.000 --> 0:00:19.720 negotiate with the lender for smaller payments spread over a 0:00:19.760 --> 0:00:22.919 long timeframe, maybe some sort of like a debt restructuring, 0:00:23.000 --> 0:00:25.160 or sometimes it's just like sorry, I just can't pay. 0:00:25.160 --> 0:00:27.760 It's not great default, or sometimes it's something in between. 0:00:27.840 --> 0:00:30.360 But what happens when you look at all the debt 0:00:30.600 --> 0:00:32.800 and you look at the ability to pay it back 0:00:32.920 --> 0:00:35.519 and you realize there's just no way, and you realize 0:00:35.640 --> 0:00:38.080 it can't even be paid back. And with about thirty 0:00:38.120 --> 0:00:40.879 four trillion dollars of debt for the US government about 0:00:40.920 --> 0:00:43.800 three hundred trillion dollars a debt for governments around the world, 0:00:44.080 --> 0:00:46.599 that's the realization that many are starting to have. So 0:00:46.640 --> 0:00:48.320 in this video, I'm going to go over how the 0:00:48.440 --> 0:00:51.360 US got into this debt mess, the speed at which 0:00:51.360 --> 0:00:54.120 it's growing, what the government projects it to get to 0:00:54.560 --> 0:00:57.720 and the only four ways out of this mess. Now, 0:00:57.760 --> 0:00:59.480 for those of you that don't know me, my name 0:00:59.520 --> 0:01:01.440 is Mark mas. I've been an entrepreneur for over twenty 0:01:01.480 --> 0:01:04.759 five years. I've invested and made millions in tech, real estate, bitcoin, 0:01:04.880 --> 0:01:07.040 and a whole range of other sectors. Over the years. 0:01:07.200 --> 0:01:09.440 I speak at some of the largest financial conferences in 0:01:09.480 --> 0:01:12.120 the world, but through this channel, I've been able to 0:01:12.160 --> 0:01:14.600 reach more people than I ever could in any of 0:01:14.600 --> 0:01:16.800 those rooms, and I'm thrilled. And on this channel we 0:01:16.840 --> 0:01:19.640 just hit five hundred thousand subscribers. So if you're new here, 0:01:20.120 --> 0:01:22.800 click that subscribe button and let's just get into the video. 0:01:24.680 --> 0:01:27.080 All right, So talking about the debt that can never 0:01:27.120 --> 0:01:29.000 be paid back, the first thing is we have to 0:01:29.080 --> 0:01:32.600 understand first of all, what is the debt and how 0:01:32.640 --> 0:01:34.760 does it get paid back. Then we'll get into like 0:01:34.880 --> 0:01:36.520 what does that mean for our portfolios and all that, 0:01:36.560 --> 0:01:39.119 But first thing, let's just talk about the debt and 0:01:39.200 --> 0:01:40.720 how do we pay it back. So the first thing 0:01:40.840 --> 0:01:43.360 is if we want to understand the debt, let's first 0:01:43.440 --> 0:01:45.679 understand the ability to pay it back. And we want 0:01:45.680 --> 0:01:47.520 to look at the money supply. Now this is the 0:01:47.600 --> 0:01:49.960 United States. We'll look at the global money supply as well. 0:01:50.000 --> 0:01:53.200 But if I borrow money, if I have debt, I 0:01:53.280 --> 0:01:55.720 have to pay it back with money, right, So the 0:01:55.720 --> 0:01:57.080 first thing is let's take a look at the money. 0:01:57.160 --> 0:01:59.919 So what we see here is the FED, the Central 0:02:00.040 --> 0:02:02.240 Bank of the United States, the Federal Reserve, and the 0:02:02.240 --> 0:02:03.840 money supply. And what you can see I put some 0:02:03.880 --> 0:02:06.240 trend lines here. It had been going at this trend 0:02:06.320 --> 0:02:09.280 right here, at this even pace. Then it started it 0:02:09.360 --> 0:02:11.280 sort of picked up to the next trend line, and 0:02:11.320 --> 0:02:14.240 then it started getting steeper, and then it started getting steeper, 0:02:14.280 --> 0:02:17.760 and now the money supply is growing at this insane 0:02:18.000 --> 0:02:21.480 alarming rate right almost going parabolic. You can see that 0:02:21.600 --> 0:02:25.920 right here. However, as parabolical as that is, that's about 0:02:25.960 --> 0:02:29.160 twenty trillion dollars, which it sounds like a lot, but 0:02:29.240 --> 0:02:32.000 not in comparison to the debt. So that's what we're 0:02:32.000 --> 0:02:34.679 looking at. Now. If I take out debt in US dollars, 0:02:34.919 --> 0:02:36.560 what do we have to pay the debt back with 0:02:36.960 --> 0:02:40.880 US dollars? So we have about twenty trillion of US dollars. Okay, 0:02:40.919 --> 0:02:43.240 Now this is the debt clock, and this kind of 0:02:43.320 --> 0:02:45.440 keeps track of how the debt's been going up. You 0:02:45.480 --> 0:02:47.680 might have seen this before. There's a whole lot of 0:02:47.760 --> 0:02:49.360 data on here. I'm not going to go through all 0:02:49.400 --> 0:02:50.480 of that, but the main thing I want to look 0:02:50.520 --> 0:02:52.520 at right here is this. You can see this in 0:02:52.560 --> 0:02:55.480 real time, like ticking higher, higher, higher, or over thirty 0:02:55.520 --> 0:02:59.360 four almost thirty five trillion dollars in debt. So right 0:02:59.400 --> 0:03:02.880 off the bat, like we owe thirty five trillion dollars, 0:03:02.880 --> 0:03:05.960 but we only have twenty trillion dollars to pay it back. 0:03:06.400 --> 0:03:08.880 That sounds like a problem, and you would be right, 0:03:09.000 --> 0:03:11.600 it certainly is. Now if we look at the government debt, 0:03:11.639 --> 0:03:13.800 we looked at the money supply is growing, we can 0:03:13.840 --> 0:03:16.480 also look very similar and the debt. The debt had 0:03:16.480 --> 0:03:20.520 been on this trend line barely even moving forever, and 0:03:20.560 --> 0:03:23.560 then the debt started going higher, and then the debt 0:03:23.560 --> 0:03:26.280 started going higher. Look at these trend lines changing, and 0:03:26.360 --> 0:03:29.239 now the debt is almost going straight up. As a 0:03:29.320 --> 0:03:31.720 matter of fact, we're adding about the United States adding 0:03:31.760 --> 0:03:36.120 about one trillion dollars every quarter every ninety days. To 0:03:36.120 --> 0:03:39.080 put this into perspective, the US government added about a 0:03:39.120 --> 0:03:42.120 trillion dollars from the inception of the country all the 0:03:42.120 --> 0:03:44.040 way to like the eighties and now we're doing that 0:03:44.360 --> 0:03:48.480 every single quarter. Now, this is government debt again, this 0:03:48.600 --> 0:03:51.680 is government debt, thirty five trillion dollars. But then we 0:03:51.720 --> 0:03:54.800 also have all the people, me and you, all the 0:03:54.800 --> 0:03:57.880 individuals that owe debt as well. And we can see 0:03:57.880 --> 0:03:59.720 this is what we call household debt, not public debt, 0:03:59.720 --> 0:04:03.040 but househ debt. And we're at about almost eighteen trillion 0:04:03.080 --> 0:04:08.240 dollars there, thirty five trillion plus eighteen trillion, and we 0:04:08.280 --> 0:04:11.280 only have twenty trillion dollars of all the money to 0:04:11.320 --> 0:04:13.400 pay it back. It sounds like a problem, and it is, 0:04:13.440 --> 0:04:16.600 but it even gets worse because that's just the United States. 0:04:16.640 --> 0:04:19.080 But of course there's a whole world out there. So 0:04:19.080 --> 0:04:21.320 if we look at the whole world, what we see 0:04:21.440 --> 0:04:26.560 is that the entire global debt is three hundred trillion. 0:04:26.680 --> 0:04:28.360 As a matter of fact, it's even higher than that. 0:04:28.760 --> 0:04:32.520 So over three hundred trillion dollars in debt. But do 0:04:32.560 --> 0:04:34.400 we have enough money to pay it back? Now, if 0:04:34.440 --> 0:04:37.640 we look globally, there's a problem. Part of the problem 0:04:37.720 --> 0:04:40.880 is that how much money is there even in the world, 0:04:41.000 --> 0:04:43.760 And that's a question that we really can't even answer. 0:04:44.080 --> 0:04:45.880 But we can get a couple of measurements and take 0:04:45.880 --> 0:04:47.520 a look at it, and we can see that it's 0:04:48.440 --> 0:04:51.400 difficult to give a specific answer, so we'll see different 0:04:51.440 --> 0:04:53.560 numbers if you look at it. We'll take the high number. 0:04:54.040 --> 0:04:56.080 We can see that the value of notes and coins 0:04:56.120 --> 0:04:58.679 in circulation, so the money that we have is about 0:04:58.680 --> 0:05:02.600 eight point two trillion. That's just the dollar bills, the coins, 0:05:02.640 --> 0:05:06.520 et cetera. Eight point two trillion across twenty major countries 0:05:06.640 --> 0:05:10.040 plus the Euro Area, so not just the United States, 0:05:10.080 --> 0:05:14.160 but globally. That's about the money supply. Now we can 0:05:14.200 --> 0:05:15.760 go a little bit higher. Like I said, let's go 0:05:15.800 --> 0:05:17.240 on the high ends. We can get the benefit of 0:05:17.279 --> 0:05:20.040 the doubt. Here. We can see the global M one supply, 0:05:20.160 --> 0:05:22.159 not just US dollars, but the global IN one supply, 0:05:22.360 --> 0:05:27.160 which includes all the money in circulation plus travelers checks 0:05:27.520 --> 0:05:31.320 plus deposits like checking and savings accounts, was about forty 0:05:31.360 --> 0:05:34.840 eight trillion, So let's call it fifty trillion dollars against 0:05:34.880 --> 0:05:37.200 remember three hundred trillion debt. But if we want to 0:05:37.240 --> 0:05:39.040 go even higher, we could say that the M two 0:05:39.160 --> 0:05:42.480 supply is about eighty two trillion. Let's take that number, 0:05:42.720 --> 0:05:46.080 so we have about eighty two trillion dollars. Some estimates 0:05:46.080 --> 0:05:48.719 are maybe even as high as one hundred trillion. Whatever, 0:05:49.120 --> 0:05:52.200 we have one hundred trillion dollars in money to pay 0:05:52.360 --> 0:05:56.080 back three hundred trillion dollars in debt, and you start 0:05:56.120 --> 0:05:58.919 to understand the magnitude of the problem that we have. 0:05:59.040 --> 0:06:01.560 Here's a graphical four format so you can understand a 0:06:01.560 --> 0:06:04.520 little bit better. This giant section of the pie chart 0:06:04.600 --> 0:06:09.000 right here, that's the global debt, and this little sliver 0:06:09.120 --> 0:06:11.840 area right here that's the amount of money that we have. 0:06:12.440 --> 0:06:14.680 So we don't have near enough money to pay off 0:06:14.760 --> 0:06:16.880 near the debt. So that's the problem. So how does 0:06:16.920 --> 0:06:19.160 that get paid back? We're going to dig into that. 0:06:19.400 --> 0:06:21.880 So the first before we get into how does that 0:06:21.920 --> 0:06:24.440 get paid back? And what does all this mean? First 0:06:24.560 --> 0:06:27.080 we have to kind of project, well, how much more 0:06:27.160 --> 0:06:29.360 will the debt even grow? And of course we can 0:06:29.440 --> 0:06:31.800 just look right at the government for these answers. The 0:06:31.839 --> 0:06:34.120 first thing you have to understand is that we are 0:06:34.120 --> 0:06:36.640 in a debt based monetary system. So you know, we 0:06:36.720 --> 0:06:38.560 talk about the Federal Reserve and the printer go burgh 0:06:38.600 --> 0:06:40.480 those types of things, which is a funny meme, it's 0:06:40.520 --> 0:06:43.520 not actually how it works. Right. Money is created through 0:06:43.520 --> 0:06:45.360 debt expansion. When you get a loan for a house, 0:06:45.400 --> 0:06:47.720 of car, boat, et cetera. That money is created out 0:06:47.720 --> 0:06:51.360 of thin air. Corporations get money from debt, Governments get 0:06:51.360 --> 0:06:54.200 money from debt, and so in this debt based monetary system, 0:06:54.200 --> 0:06:57.240 it has to always be growing or the whole whole 0:06:57.240 --> 0:07:01.159 thing falls apart. So it has to expand, and all 0:07:01.240 --> 0:07:04.400 money comes from debt. And so understanding that key fact, 0:07:04.640 --> 0:07:06.440 let's take a look at some of these projections. So 0:07:06.480 --> 0:07:08.279 here's for the United States, which of course is the 0:07:08.360 --> 0:07:10.320 US dollar, and it doesn't matter where you live in 0:07:10.320 --> 0:07:12.320 the world. US dollars the reserve currency the world's with. 0:07:12.360 --> 0:07:14.040 This matters. Now, what we can see is this is 0:07:14.160 --> 0:07:19.080 US public debt and as it's projected to increase. So 0:07:19.080 --> 0:07:21.240 we can see here in the year two thousand, here 0:07:21.240 --> 0:07:23.800 we are about twenty twenty three, and here we are 0:07:23.840 --> 0:07:26.360 twenty fifty, and what we can see is the payments 0:07:26.440 --> 0:07:29.880 on the debt going up from one percent to five percent. 0:07:30.520 --> 0:07:33.720 We can see the deficit going higher and higher higher, 0:07:33.920 --> 0:07:36.280 no deficit in two thousand. We actually had a surplus, 0:07:36.320 --> 0:07:41.040 surprise surprise to five percent of deficit in twenty fifty, 0:07:41.160 --> 0:07:43.360 and we can see the percentage of debt. This is 0:07:43.360 --> 0:07:47.280 the alarming one, going from thirty eight percent debt to 0:07:47.360 --> 0:07:52.280 GDP up to one hundred and seventy five percent projected. 0:07:52.320 --> 0:07:54.440 And so basically what we're looking at is the debt 0:07:54.480 --> 0:07:57.960 will continue to go higher at an ever, ever faster rate. 0:07:58.560 --> 0:08:01.120 The CBO again put out this chart that shows this 0:08:01.560 --> 0:08:05.320 in another format. So here we are right here with 0:08:05.360 --> 0:08:08.880 a record amounts of debts, as a matter of fact, 0:08:09.040 --> 0:08:11.240 more than or about where we were in World War 0:08:11.240 --> 0:08:14.560 one world War two, and this is what it's projected 0:08:14.600 --> 0:08:16.880 to do. That's from the government's own admission. This is 0:08:16.920 --> 0:08:19.480 not me making this up. Now. If we want to 0:08:19.480 --> 0:08:22.320 look at this globally again, that's the United States. If 0:08:22.320 --> 0:08:24.480 we look at this globally, what we can see is 0:08:24.680 --> 0:08:29.000 something similar. And we are right about here right now, 0:08:29.320 --> 0:08:32.680 and that is where it's expected to go. We'd already 0:08:32.679 --> 0:08:35.320 don't have near enough dollars to pay back the debt 0:08:35.320 --> 0:08:38.160 that we owe in the first place, and the debt 0:08:38.200 --> 0:08:41.640 is expected to go a whole lot higher. So where 0:08:41.679 --> 0:08:44.719 do we go from here, Well, there's four ways out. 0:08:44.760 --> 0:08:47.200 Radialio broke this down very well in his book talking 0:08:47.200 --> 0:08:49.760 about this sovereign debt crisis, which is basically what we're in. 0:08:49.880 --> 0:08:51.760 And they said, there's four ways that we can get 0:08:51.760 --> 0:08:54.840 out of this. Number one, we can have austerity, and 0:08:54.840 --> 0:08:57.719 that basically means the government goes on a budget. I mean, 0:08:57.760 --> 0:09:01.120 so let's cut spending by whatever, far fifty percent, let's 0:09:01.200 --> 0:09:03.440 increase the taxes. So we cut spending, we bring in 0:09:03.480 --> 0:09:06.280 more revenue, and we'll save our way out of it. 0:09:06.440 --> 0:09:09.400 Of course that doesn't work. The people that are on 0:09:09.440 --> 0:09:11.400 the doll the people that get benefits from the government, 0:09:11.400 --> 0:09:15.560 they certainly don't want that to happen. Sometimes you might hear, well, 0:09:15.559 --> 0:09:17.400 we owe the debt to ourselves, right, we could just 0:09:17.760 --> 0:09:20.200 not pay it back. Well, not really. So we obviously 0:09:20.240 --> 0:09:23.880 owe a lot of other government's money China, etc. Probably 0:09:23.880 --> 0:09:25.600 won't like that if we decide not to pay them back. 0:09:25.720 --> 0:09:28.000 But we owe it not to ourselves. We owe it 0:09:28.080 --> 0:09:30.280 to the people of the United States. So if you 0:09:30.280 --> 0:09:32.199 have a retirement account for our one K mutual fund, 0:09:32.240 --> 0:09:34.640 a lot of your money is probably in the government's 0:09:34.640 --> 0:09:37.160 hand and they owe that money to you. And so 0:09:37.160 --> 0:09:39.319 if they decide not to pay that back, that's your 0:09:39.360 --> 0:09:42.200 retirement money that's gone. Even more. It's not that they 0:09:42.200 --> 0:09:45.160 can always just print the money, right, because they owe 0:09:45.200 --> 0:09:49.040 people medical services, right, and so this is a big problem. 0:09:49.120 --> 0:09:51.640 Number Two, they can do a debt restructuring. Hey, look, 0:09:51.679 --> 0:09:53.439 we're way over our skis on this. There's no way 0:09:53.440 --> 0:09:55.120 that we can pay this back. We'll pay you back 0:09:55.160 --> 0:09:57.080 fifty cents on the dollar, ten cents on the dollar, 0:09:57.320 --> 0:10:01.040 something like that, maybe extended out the way. And this is, 0:10:01.360 --> 0:10:04.080 of course, the most likely scenario is we'll just print 0:10:04.080 --> 0:10:06.360 the money. And of course this is what governments around 0:10:06.400 --> 0:10:08.839 the world are doing. They'll continuing to expand the money 0:10:08.840 --> 0:10:12.120 supply the debt because they're continuing to print money. Now, 0:10:12.160 --> 0:10:15.520 the reality is that it's not one of these, it's 0:10:15.600 --> 0:10:18.360 really probably all three. So for example, they're going to 0:10:18.440 --> 0:10:21.400 increase the taxes, they're going to restructure the debt for 0:10:21.480 --> 0:10:24.040 longer refinance it, and they're going to print money at 0:10:24.040 --> 0:10:26.320 the same time, and they're continue to use all three 0:10:26.320 --> 0:10:28.920 of these. But there's the fourth way, and it's sort 0:10:28.960 --> 0:10:31.480 of like betting on a miracle, and the miracle is 0:10:31.840 --> 0:10:34.439 we could have a productivity miracle. Now, a lot of 0:10:34.480 --> 0:10:36.360 times people talk about this, like if we could just 0:10:36.720 --> 0:10:39.880 come up with like free unlimited energy, for example, nuclear fission, 0:10:39.920 --> 0:10:41.360 if we could come up with that, then we'd have 0:10:41.440 --> 0:10:43.679 this productivity miracle and we could grow out of it. 0:10:43.800 --> 0:10:45.959 You have to understand that we have remembered the ratio 0:10:46.080 --> 0:10:51.680 is debt two GDP. It's a nominated denominator. So we 0:10:51.720 --> 0:10:54.400 could either bring the debt down or we could bring 0:10:54.440 --> 0:10:57.480 the GDP up. So if we have a productivity miracle, 0:10:57.520 --> 0:11:00.400 we could grow our way out of it. Hype ethically, 0:11:00.640 --> 0:11:03.720 but maybe we actually can. Are we on the verge 0:11:03.800 --> 0:11:07.280 of a productivity miracle that could potentially see us do this? 0:11:07.720 --> 0:11:10.679 And the answer is maybe we are. So what am 0:11:10.720 --> 0:11:14.640 I talking about specifically? Of course AI? We have an 0:11:14.679 --> 0:11:18.720 AI driven boom that is completely changing the landscape of 0:11:18.760 --> 0:11:21.520 the entire world from everything that we know, from how 0:11:21.520 --> 0:11:24.320 we get information to how we work, to whether we 0:11:24.360 --> 0:11:26.280 have a job or not, what type of job you'll have, 0:11:26.840 --> 0:11:30.959 which new businesses are growing, and even potentially saving governments 0:11:31.360 --> 0:11:35.080 from reckless spending by having a productivity miracle. So obviously 0:11:35.160 --> 0:11:36.839 I'm talking about, like I said, the growth of AI, 0:11:37.280 --> 0:11:40.120 and we've seen how fast this is growing. Some ways 0:11:40.120 --> 0:11:42.520 we can look at this just from a chart is 0:11:42.760 --> 0:11:45.520 look at VideA. If you haven't be paying attention in 0:11:45.559 --> 0:11:47.400 video you're not paying attention at all. And what we 0:11:47.440 --> 0:11:50.320 can see is that in Vidia has basically shot up 0:11:50.400 --> 0:11:52.160 like a what is this like a meme stock, a 0:11:52.160 --> 0:11:54.560 crypto stock. I mean, it's basically gone straight up for 0:11:54.640 --> 0:11:58.360 no reason. There's no fundamental reason if we try to 0:11:58.360 --> 0:12:00.679 analyze it like a typical stock, why it's gone up 0:12:00.679 --> 0:12:02.679 like this. But it's gone up like this because of 0:12:02.760 --> 0:12:07.360 the AI boom that's going on. So is business has 0:12:07.400 --> 0:12:10.439 become more productive, meaning I can get more work done 0:12:10.480 --> 0:12:13.880 in my business without hiring additional people. That means my 0:12:14.040 --> 0:12:17.720 profitability goes up. Right, doesn't mean you have to have 0:12:17.760 --> 0:12:20.560 mass layoffs. But let's say that now there's a lot 0:12:20.600 --> 0:12:23.440 more higher level jobs from coders and things like that. 0:12:23.559 --> 0:12:26.240 So now maybe people are making more money again, that 0:12:26.280 --> 0:12:30.160 pushes the GDP up and maybe, just maybe we could 0:12:30.200 --> 0:12:33.800 grow faster to move the GDP up faster than the 0:12:33.840 --> 0:12:38.520 debt's growing. The question is this actually realistic? Well, I've 0:12:38.520 --> 0:12:41.920 studied the data, I've studied the math, and maybe, but 0:12:42.000 --> 0:12:45.679 there's also a big danger as we transition into that. 0:12:45.920 --> 0:12:47.680 I want to break all of that down for you, 0:12:47.720 --> 0:12:49.560 but real quick, before I get into that data, I 0:12:49.640 --> 0:12:51.040 just want to let you know, I got a sponsor 0:12:51.120 --> 0:12:53.800 for this week's show. I want to let you let 0:12:53.880 --> 0:12:56.800 you know about them real quick. I'm talking about iber America. 0:12:56.920 --> 0:12:59.800 Here's their stock ticker right here. And the reason why 0:12:59.800 --> 0:13:02.400 this company is probably a good one sponsor for this 0:13:02.480 --> 0:13:04.800 video is because they are at the forefront of the 0:13:04.840 --> 0:13:08.680 AI boom. I've talked about before, the different commodities, whether 0:13:08.720 --> 0:13:11.760 that's lithium or cobalt. We talked about copper, how copper's 0:13:11.800 --> 0:13:14.240 being used in the AA boom. One thing that's being 0:13:14.320 --> 0:13:15.760 used in the air boom, and you can see from 0:13:15.800 --> 0:13:19.160 this chart right here is ten, Yes, the old metal tin. 0:13:19.520 --> 0:13:22.480 And you probably don't realize how much ten goes into 0:13:22.520 --> 0:13:25.559 the data centers and more specifically the microchips like Nvidia 0:13:25.679 --> 0:13:27.800 uses when they put them onto a circuit board, they 0:13:27.800 --> 0:13:30.840 have to solder them and that all requires ten. And 0:13:30.880 --> 0:13:33.200 so you can see ten is also going up like 0:13:33.200 --> 0:13:35.880 in Vidia like a meme stock as well, and that's 0:13:35.960 --> 0:13:38.760 because of the demand now we have at this iber 0:13:38.840 --> 0:13:43.400 America basically is going to be Europe's largest ten mine 0:13:43.520 --> 0:13:45.760 in the world. Now why does this matter, Well, it 0:13:45.840 --> 0:13:49.280 matters because the majority of ten around the world right 0:13:49.320 --> 0:13:52.520 now is coming from countries that we would say are 0:13:52.559 --> 0:13:55.560 non friendly. As a matter of fact, China, Indonesia, and 0:13:55.640 --> 0:13:58.800 Peru make up seventy five percent of the supply of ten. 0:13:59.120 --> 0:14:01.040 You already know we're trying to de couple from China. 0:14:01.360 --> 0:14:04.280 We can't depend on them anymore. Indonesia we can't. We 0:14:04.360 --> 0:14:09.239 have such heavy sanctions on them because of their environmental policies. 0:14:09.440 --> 0:14:13.960 And Peru has massive disruption in their mining sector. You 0:14:13.960 --> 0:14:16.960 can see. Foreign investments need to understand that there's massive 0:14:16.960 --> 0:14:20.000 political risk in Peru. And so most of the supply 0:14:20.080 --> 0:14:23.280 of ten comes from non friendly countries, and here we 0:14:23.400 --> 0:14:26.000 have one in Europe. Now. The key to understand this 0:14:26.120 --> 0:14:28.400 also is that the only way to get access to 0:14:28.480 --> 0:14:31.480 ten is different than most commodities. You can't just buy 0:14:31.480 --> 0:14:33.600 it through an ETF. The only way you can get 0:14:33.640 --> 0:14:36.560 exposure to ten is by buying one of the producers. 0:14:36.960 --> 0:14:38.720 And you don't want to buy a producer in Peru 0:14:38.880 --> 0:14:42.760 or China or Indonesia, and so maybe in a European 0:14:42.840 --> 0:14:45.040 company might be a better way. Now, real quickly, just 0:14:45.080 --> 0:14:47.160 got to get back to the video, but real quickly. 0:14:47.360 --> 0:14:49.640 The team is stellar. David Young, he's been head of 0:14:49.720 --> 0:14:53.080 natural resources at Carlisle Group, which is the fifth largest 0:14:53.080 --> 0:14:56.200 private equity firm. He managed over four billion dollars of 0:14:56.200 --> 0:14:59.560 resources at there we have Gene McBurnie. He was the 0:14:59.600 --> 0:15:03.880 CEO of can Accordingenuity, which is the second largest Canadian 0:15:03.920 --> 0:15:07.200 investment bank, co founder of GMP Securities which is an 0:15:07.240 --> 0:15:11.000 investment dealer, massive, massive talent. Here, we also have Hatch 0:15:11.080 --> 0:15:14.960 Consulting which is is on board to get the production 0:15:15.200 --> 0:15:18.080 back on track. We'll talk about that production in a second. 0:15:18.880 --> 0:15:20.600 And lastly, real quick before we get back to the 0:15:20.640 --> 0:15:23.600 AI boom, we know that Iber America, while at the 0:15:23.640 --> 0:15:26.480 forefront of this AI boom supplying the ten that we need, 0:15:27.080 --> 0:15:30.800 they basically have done something by going and acquiring this 0:15:30.960 --> 0:15:34.560 mine in Spain in Europe, and they bought it. And 0:15:34.600 --> 0:15:35.960 the reason why they bought it is the company that 0:15:36.000 --> 0:15:38.720 had it before mismanaged it. And part of the mismanagement 0:15:38.760 --> 0:15:41.480 was also just the cycle of it. The AI boom 0:15:41.520 --> 0:15:43.720 wasn't there, neither was ten and they were able to 0:15:43.720 --> 0:15:47.400 buy a mine here that was worth seventy eight million 0:15:47.440 --> 0:15:50.720 dollars and they bought it for only six million. So 0:15:50.760 --> 0:15:53.560 what happens in the siicylity of commodities, So they bought 0:15:53.560 --> 0:15:55.960 a seventy eight million dollar asset for only six million dollars, 0:15:56.440 --> 0:16:00.440 and the buyer, iber America, is only an eighty million 0:16:00.520 --> 0:16:03.120 dollar market cap. So an eighteen million dollar market cap 0:16:03.200 --> 0:16:06.760 is buying an asset for seventy eight million dollars. What 0:16:06.800 --> 0:16:10.000 do you think potentially happens with this company as ten 0:16:10.120 --> 0:16:12.720 continues to take off? Now, the good thing too, is 0:16:12.760 --> 0:16:14.680 this is all happening right now at the time of 0:16:14.680 --> 0:16:16.520 this video. As a matter of fact, they're closing on 0:16:16.560 --> 0:16:18.760 this deal in the next two weeks. And their goal 0:16:18.960 --> 0:16:21.400 is they have the time, they have the money, and 0:16:21.480 --> 0:16:23.920 they have the know how to put this back into 0:16:23.960 --> 0:16:26.760 production right right now, right at the time that AI 0:16:27.000 --> 0:16:30.480 is completely blowing up and they have the ten. Okay, now, 0:16:30.720 --> 0:16:32.560 enough with that sponsor check them out if you want. 0:16:32.760 --> 0:16:36.360 But let's get back to can this AI productivity miracle 0:16:36.640 --> 0:16:39.280 help us grow out of this? Okay? So let's look 0:16:39.280 --> 0:16:41.440 at this from a couple areas. So the first thing 0:16:41.480 --> 0:16:44.440 that we can see is when we've looked at something 0:16:44.520 --> 0:16:46.640 like this in the past, it gives us an idea. 0:16:46.800 --> 0:16:49.480 I always use history. History is our guide to the future. So, 0:16:49.600 --> 0:16:52.520 for example, when we had the Internet boom, what'd the 0:16:52.520 --> 0:16:55.920 Internet do? The Internet increased our efficiency. Now instead of 0:16:55.920 --> 0:16:58.400 having to drive somewhere for a meeting, I just go 0:16:58.440 --> 0:17:01.360 on zoom right, instead of having to drive to a 0:17:01.400 --> 0:17:03.160 store pickup stuff, and I can click a button and 0:17:03.240 --> 0:17:05.960 have it shipped to me. So internet was also something 0:17:06.000 --> 0:17:08.520 that really created this productivity boom. And what we can 0:17:08.560 --> 0:17:10.720 see here in two thousand, this is a chart here 0:17:11.040 --> 0:17:14.600 of corporate profits, I meaning corporations making more money. When 0:17:14.600 --> 0:17:17.879 corporations make more money, that increases the GDP. Right, So 0:17:18.080 --> 0:17:20.159 right here is when the tech boom happened. This is 0:17:20.200 --> 0:17:22.880 the year two thousand, the dot com boom. And look 0:17:22.880 --> 0:17:25.720 at this trend line. So this is the corporate profits. 0:17:25.920 --> 0:17:29.679 We're on this trend line right here. Then it started 0:17:29.720 --> 0:17:32.439 ticking up a little bit because in the eighties we 0:17:32.480 --> 0:17:35.000 started getting you know, computers and some of the businesses 0:17:35.000 --> 0:17:37.640 and things like that. So productivity started picking up here. 0:17:37.920 --> 0:17:41.480 But right here where the two thousand dot com happened. 0:17:41.760 --> 0:17:44.320 Look at the new trend line that started up. See 0:17:44.320 --> 0:17:48.160 how much faster corporate profits went up, how much faster 0:17:48.359 --> 0:17:51.440 GDP started going up. And now you can see since 0:17:51.520 --> 0:17:54.320 twenty twenty we are on a straight line. So the 0:17:54.320 --> 0:17:59.360 precedent shows that technology does increase efficiency, which boost corporate profits, 0:17:59.359 --> 0:18:03.239 which then brings up GDP. Okay. Another way, we can 0:18:03.280 --> 0:18:06.320 take a look at this specifically that's historically, but we 0:18:06.359 --> 0:18:08.480 can also look at this from AI. So this is 0:18:08.480 --> 0:18:10.760 some of the projections. What we can see is that 0:18:10.880 --> 0:18:13.760 the AI market cap we're right here right now, it's 0:18:13.800 --> 0:18:16.080 been growing pretty slowly. But you have to remember this 0:18:16.160 --> 0:18:18.879 is all still pretty new. What do we less than 0:18:18.920 --> 0:18:20.640 two years or a year and a half into sort 0:18:20.640 --> 0:18:23.720 of since open ai was introduced, But it's projected to 0:18:23.920 --> 0:18:28.320 grow at a three or thirty three percent compounded annual 0:18:28.359 --> 0:18:31.280 growth rate. That's amazing. It's enormous and if you're not 0:18:31.359 --> 0:18:33.800 using in your business, you totally should. In our business, 0:18:33.800 --> 0:18:36.080 we use it all over the place already a thirty 0:18:36.119 --> 0:18:39.200 three percent compound and annual growth rate. And so that's 0:18:39.240 --> 0:18:42.040 how fast the aiboom is going to continue to grow, 0:18:42.280 --> 0:18:44.800 and it's going to continue to cause all other things 0:18:44.880 --> 0:18:46.760 to happen, and a lot of it is in the 0:18:46.760 --> 0:18:49.280 demand of the commodities and things like that. Now, there 0:18:49.359 --> 0:18:51.399 is some downsides to this, and I don't want to 0:18:51.440 --> 0:18:52.840 go deep into this right now. I can make another 0:18:52.920 --> 0:18:55.320 video if you want, But typically when we have this 0:18:55.480 --> 0:18:58.520 pulse of productivity, maybe some people lose their jobs. Now 0:18:58.520 --> 0:19:01.199 those people can go find higher pain, but there is 0:19:01.280 --> 0:19:03.359 some danger in the short term. And again we have 0:19:03.480 --> 0:19:05.400 historical precedence for this. If you want me to break 0:19:05.400 --> 0:19:06.920 that down on a video, let me know. In the 0:19:06.920 --> 0:19:08.680 commons down below, we can make a whole separate video 0:19:08.720 --> 0:19:11.119