1 00:00:00,120 --> 00:00:02,759 Speaker 1: All right, welcome back to another episode of The Markmas Show, 2 00:00:02,759 --> 00:00:06,000 Speaker 1: where we are talking about bitcoin, We're talking about cryptocurrencies, 3 00:00:06,040 --> 00:00:09,479 Speaker 1: We're talking about the decentralized revolution, and I'm trying to 4 00:00:09,520 --> 00:00:12,000 Speaker 1: give you the play by play to help bring context 5 00:00:12,000 --> 00:00:15,280 Speaker 1: to what is going on in the world today. We 6 00:00:15,320 --> 00:00:19,000 Speaker 1: talk about politics, we talked about finance, We talked about technology, 7 00:00:19,040 --> 00:00:21,080 Speaker 1: because if you look at any one of these on 8 00:00:21,120 --> 00:00:24,160 Speaker 1: their own, it's hard to understand the bigger picture of 9 00:00:24,200 --> 00:00:26,040 Speaker 1: what's going on. You have to look at all three 10 00:00:26,079 --> 00:00:28,880 Speaker 1: of them together. And so each week we'll jump into 11 00:00:28,920 --> 00:00:33,080 Speaker 1: those different topics um sometimes more finance, sometimes more politics, 12 00:00:33,080 --> 00:00:37,720 Speaker 1: sometimes more tech, but always about the monetary revolution, the 13 00:00:37,760 --> 00:00:41,440 Speaker 1: technological revolution that we are going through right now. And 14 00:00:41,479 --> 00:00:46,479 Speaker 1: speaking of that, we have almost I say, I hate 15 00:00:46,520 --> 00:00:49,360 Speaker 1: to use these types of hyper hyperbole, but we've almost 16 00:00:49,360 --> 00:00:51,400 Speaker 1: never needed it as bad as we need it right now, 17 00:00:52,159 --> 00:00:54,480 Speaker 1: almost never needed as bad as we need it right 18 00:00:54,520 --> 00:00:56,840 Speaker 1: now for a number of reasons. I've talked extensively about 19 00:00:56,840 --> 00:01:00,760 Speaker 1: what's going on with Russia, Ukraine, how the awesome trust 20 00:01:00,840 --> 00:01:03,560 Speaker 1: and how we're changing the financial system is changing. We 21 00:01:03,680 --> 00:01:05,800 Speaker 1: talked about Canada, how all those people got kicked out 22 00:01:05,800 --> 00:01:08,080 Speaker 1: of the financial system for doing something that was you know, 23 00:01:08,720 --> 00:01:14,200 Speaker 1: legal whatever. But when I say that, when I say that, 24 00:01:14,760 --> 00:01:17,119 Speaker 1: it has never been more real as to why we 25 00:01:17,160 --> 00:01:21,160 Speaker 1: need it. And the reason why is because this week 26 00:01:22,160 --> 00:01:26,120 Speaker 1: the whole world sat and watched and waited like literally 27 00:01:26,160 --> 00:01:29,440 Speaker 1: like held their breath, sat on their fingers, waited patiently 28 00:01:29,520 --> 00:01:34,560 Speaker 1: to hear what Jerome Pal, the head of the Federal Reserve, 29 00:01:34,720 --> 00:01:36,480 Speaker 1: which is the central bank of the United States, had 30 00:01:36,520 --> 00:01:39,759 Speaker 1: to say. Kind of like Groundhog Day, where everybody watches 31 00:01:39,840 --> 00:01:42,119 Speaker 1: for the groundhog to come out. What's his name, Punkstani 32 00:01:42,440 --> 00:01:45,600 Speaker 1: Bill or whatever. So it's kind of like that, everybody's 33 00:01:45,760 --> 00:01:47,760 Speaker 1: watching and wait and see what happens with that. And 34 00:01:47,800 --> 00:01:49,760 Speaker 1: here we have everybody watching and wait and see what 35 00:01:49,800 --> 00:01:54,280 Speaker 1: the Federal Reserve, what Jerome Pal is gonna do? Think 36 00:01:54,320 --> 00:01:59,000 Speaker 1: about that, the entire world fixated on the words of 37 00:01:59,080 --> 00:02:04,000 Speaker 1: one man to find out what the fate, what their 38 00:02:04,120 --> 00:02:09,520 Speaker 1: fate is like literally, is he going to increase the 39 00:02:09,520 --> 00:02:13,480 Speaker 1: money supply and put us all back into this inflationary bust? 40 00:02:13,480 --> 00:02:15,600 Speaker 1: Will prices go up more? Will my business do better 41 00:02:15,639 --> 00:02:18,440 Speaker 1: when my assets continue to rise? Or will he cut 42 00:02:18,560 --> 00:02:21,679 Speaker 1: rates and cut money injection? And will we see things 43 00:02:21,720 --> 00:02:23,880 Speaker 1: get more expensive? Will my real estate crash, when my 44 00:02:23,919 --> 00:02:30,120 Speaker 1: business fail, live or die all off one guy, the 45 00:02:30,160 --> 00:02:32,320 Speaker 1: words of one man. I mean, that's that's literally where 46 00:02:32,320 --> 00:02:36,560 Speaker 1: we're at, which is just insane. It's like, what happens 47 00:02:36,639 --> 00:02:41,840 Speaker 1: if the FED does quantitative tightening QT, what happens if 48 00:02:41,880 --> 00:02:46,919 Speaker 1: the FED starts quantitative easy and again? Will they will 49 00:02:46,919 --> 00:02:49,679 Speaker 1: they raise rates? Will they raise them fifty basis points 50 00:02:49,840 --> 00:02:52,519 Speaker 1: or basis points or only will they only go five? 51 00:02:52,520 --> 00:02:55,200 Speaker 1: Will they reverse course? I mean, it's just like the 52 00:02:55,280 --> 00:02:59,160 Speaker 1: whole our fate, my fate, your faith, the fate of 53 00:02:59,160 --> 00:03:01,720 Speaker 1: the world lies in the hands of what he's gonna do. Now, 54 00:03:01,720 --> 00:03:04,120 Speaker 1: it's the words of one man. He's the he's the face, 55 00:03:04,200 --> 00:03:07,320 Speaker 1: he's the name, he's the voice. Obviously there's a committee there, 56 00:03:07,440 --> 00:03:11,239 Speaker 1: there's twelve, So our our world's in the fate of 57 00:03:11,280 --> 00:03:14,680 Speaker 1: twelve people. So that's better, right, And when I say that, 58 00:03:14,760 --> 00:03:16,600 Speaker 1: it's never been more important than now is because it 59 00:03:16,760 --> 00:03:20,600 Speaker 1: just highlights the insanity of where we're at. I mean, literally, 60 00:03:21,440 --> 00:03:25,040 Speaker 1: one guy or twelve guys could like literally change the fate. 61 00:03:25,120 --> 00:03:28,280 Speaker 1: And there's there's girls too, but could change the direction 62 00:03:29,320 --> 00:03:32,799 Speaker 1: of the world, could change whether I go bankrupt or 63 00:03:32,840 --> 00:03:35,680 Speaker 1: I get rich. I mean, it's it's literally that crazy. 64 00:03:35,760 --> 00:03:39,160 Speaker 1: So anyway, he came out and talked, and uh, the 65 00:03:39,200 --> 00:03:43,080 Speaker 1: markets reacted favorably. As a matter of fact, it says 66 00:03:43,120 --> 00:03:47,800 Speaker 1: markets cheer after Jerome Pial downplays even larger rate hikes. 67 00:03:47,840 --> 00:03:52,800 Speaker 1: So um, because inflation is raging so high. Now I've 68 00:03:52,840 --> 00:03:55,840 Speaker 1: gone many times into the education piece of this. Typically 69 00:03:56,400 --> 00:03:59,600 Speaker 1: we think of inflation as prices going up. I like 70 00:03:59,680 --> 00:04:02,840 Speaker 1: to make the distinction the definition that, uh, the prices 71 00:04:02,880 --> 00:04:05,680 Speaker 1: going up are the result of inflation. They are not 72 00:04:05,720 --> 00:04:09,240 Speaker 1: inflation on their own. The result of inflation. Inflation is 73 00:04:09,240 --> 00:04:12,120 Speaker 1: caused by increasing the money supply. So the Federal Reserve 74 00:04:12,240 --> 00:04:16,880 Speaker 1: the United States, UH increase the money supply by over 75 00:04:17,120 --> 00:04:21,320 Speaker 1: forty in the last two years. When you have more 76 00:04:21,360 --> 00:04:24,320 Speaker 1: money chasing the same amount of goods and services or 77 00:04:24,320 --> 00:04:27,039 Speaker 1: in this case less goods and services because supply chains 78 00:04:27,040 --> 00:04:30,000 Speaker 1: and people not working, etcetera. So you have more money 79 00:04:30,080 --> 00:04:32,720 Speaker 1: chasing less good So what happens The price of those 80 00:04:32,760 --> 00:04:36,320 Speaker 1: goods go up. It's always divisible. You take all the 81 00:04:36,360 --> 00:04:38,080 Speaker 1: goods and services of the world divided by all the 82 00:04:38,120 --> 00:04:41,760 Speaker 1: money of the world. If you increase the money supply 83 00:04:42,640 --> 00:04:44,760 Speaker 1: and you decrease the amount of goods, but you keep 84 00:04:44,800 --> 00:04:47,000 Speaker 1: and you still divide it. The price of those goods 85 00:04:47,000 --> 00:04:49,840 Speaker 1: goes up. That's how it works. So the price of 86 00:04:49,960 --> 00:04:54,640 Speaker 1: the money supply, the press, your home on average, rents 87 00:04:54,640 --> 00:04:58,840 Speaker 1: went up on average over two years. Use cars are 88 00:04:58,920 --> 00:05:03,480 Speaker 1: up on average. Right, So that's how it works. So 89 00:05:03,800 --> 00:05:06,920 Speaker 1: he wants to combat inflation. We must stop prices from 90 00:05:06,920 --> 00:05:10,120 Speaker 1: going up. Oil or gas is too expensive. People are mad. 91 00:05:10,160 --> 00:05:13,480 Speaker 1: Foods too expensive. I have to do something. So what 92 00:05:13,520 --> 00:05:17,440 Speaker 1: do I do? Well? Will decrease the money supply? We 93 00:05:17,520 --> 00:05:21,120 Speaker 1: increased it, right, we increased it. We created all this 94 00:05:21,160 --> 00:05:23,480 Speaker 1: new money, which then created all this new business and 95 00:05:23,520 --> 00:05:25,760 Speaker 1: all this new buying. And consumers are buying all these things, 96 00:05:25,800 --> 00:05:28,120 Speaker 1: are buying all these cars. So prices go up. So 97 00:05:28,160 --> 00:05:31,159 Speaker 1: what's the solution. Well, let's just let's just take the 98 00:05:31,200 --> 00:05:34,200 Speaker 1: money back out. Sounds fair right? Where they do that 99 00:05:34,240 --> 00:05:38,960 Speaker 1: through two ways. What they're talking about here was raising 100 00:05:39,400 --> 00:05:42,800 Speaker 1: interest rates. So interest rates are the cost of money. 101 00:05:43,000 --> 00:05:46,880 Speaker 1: What does that mean? Well, you may not think about this, 102 00:05:47,000 --> 00:05:49,160 Speaker 1: but money doesn't mean to be exchange. It helps you 103 00:05:49,200 --> 00:05:52,560 Speaker 1: buy things. I can take my money, I can take 104 00:05:52,560 --> 00:05:54,760 Speaker 1: a thousand dollars and I can go buy an iPhone. 105 00:05:56,200 --> 00:05:59,440 Speaker 1: I could also buy money. Though with that same iPhone, 106 00:05:59,480 --> 00:06:03,479 Speaker 1: I could buy a thousand dollars. See how that works. Now, 107 00:06:03,560 --> 00:06:05,440 Speaker 1: let's say that I was a business owner and I 108 00:06:05,480 --> 00:06:08,880 Speaker 1: wanted to go create a new product. I wanted to uh, 109 00:06:08,920 --> 00:06:10,520 Speaker 1: I wanted to expand my business. I want to buy 110 00:06:10,560 --> 00:06:12,400 Speaker 1: some new trucks, some new delivery trucks, or some new 111 00:06:12,400 --> 00:06:15,279 Speaker 1: equipment for my business. Right. Um, but you know what, 112 00:06:16,160 --> 00:06:18,480 Speaker 1: I can't really afford to finance it because the rates 113 00:06:18,480 --> 00:06:22,000 Speaker 1: are too high. But if they lower the interest rates, 114 00:06:22,200 --> 00:06:24,200 Speaker 1: my payment goes down. Now I can afford to do it. 115 00:06:24,880 --> 00:06:27,800 Speaker 1: So by lowering the interest rates, more people buy stuff, 116 00:06:28,160 --> 00:06:30,240 Speaker 1: You buy more equipment, you buy that new building, you 117 00:06:30,279 --> 00:06:33,080 Speaker 1: buy that new house, and so all that money. We 118 00:06:33,120 --> 00:06:34,960 Speaker 1: live in a debt based system, so our money is 119 00:06:35,000 --> 00:06:38,240 Speaker 1: created through debt issuance. So the fact doesn't just print money. 120 00:06:38,680 --> 00:06:41,279 Speaker 1: The banks actually create the money by loaning it into existence. 121 00:06:41,320 --> 00:06:44,400 Speaker 1: And so when we take loans out, that money is created. 122 00:06:45,680 --> 00:06:48,360 Speaker 1: The bank doesn't have that half a million or one 123 00:06:48,400 --> 00:06:51,200 Speaker 1: million dollars to give me for the house, but when 124 00:06:51,240 --> 00:06:53,359 Speaker 1: they give me the loan for the house, that million 125 00:06:53,400 --> 00:06:57,360 Speaker 1: dollars is created. That's how that works. And so if 126 00:06:57,400 --> 00:07:01,120 Speaker 1: they raise the rates, then less people borrow, right, and 127 00:07:01,160 --> 00:07:04,280 Speaker 1: so if less people borrow, there's less money being created. 128 00:07:04,839 --> 00:07:08,600 Speaker 1: Less money created, there's less people buying goods and services, 129 00:07:08,680 --> 00:07:12,400 Speaker 1: and so then the idea is that you have less 130 00:07:12,440 --> 00:07:14,640 Speaker 1: people buying the same amount of goods and services and 131 00:07:14,680 --> 00:07:16,920 Speaker 1: the price goes down. A few weeks ago, I had 132 00:07:16,920 --> 00:07:20,200 Speaker 1: my thirteen year old daughter on here. We kind of 133 00:07:20,240 --> 00:07:23,240 Speaker 1: played a game and I said, if there was if 134 00:07:23,280 --> 00:07:25,680 Speaker 1: there was ten houses or I said, first, if there 135 00:07:25,720 --> 00:07:28,040 Speaker 1: was one house for sale but there was ten buyers, 136 00:07:28,040 --> 00:07:30,080 Speaker 1: what do you think would happen? Said? The price would 137 00:07:30,080 --> 00:07:31,840 Speaker 1: go up? Yeah, because those ten people are gonna bid 138 00:07:31,840 --> 00:07:34,040 Speaker 1: for that house. If there was ten houses for sale 139 00:07:34,080 --> 00:07:36,160 Speaker 1: but only one buyer, what happens when the price of 140 00:07:36,200 --> 00:07:38,520 Speaker 1: the home goes down. And so that's exactly what they're 141 00:07:38,520 --> 00:07:41,880 Speaker 1: trying to do here. And so we've known this. They've 142 00:07:41,880 --> 00:07:44,240 Speaker 1: already raised the rates once um and the market was 143 00:07:44,280 --> 00:07:48,240 Speaker 1: expecting them to raise the rates pretty high. But as 144 00:07:48,320 --> 00:07:50,679 Speaker 1: I said, the headline here says that the markets cheer 145 00:07:51,040 --> 00:07:54,760 Speaker 1: because they downplay even larger rate hikes. So they did 146 00:07:54,880 --> 00:07:58,560 Speaker 1: raise rates, but they raised them less than what many 147 00:07:58,600 --> 00:08:01,520 Speaker 1: people were expecting. The markets are what we call discounting 148 00:08:01,560 --> 00:08:03,680 Speaker 1: mechanisms are always trying to guess what's going to happen 149 00:08:03,720 --> 00:08:05,880 Speaker 1: in the future. So they're trying to guess that the 150 00:08:05,920 --> 00:08:08,160 Speaker 1: stock will be higher in the future or lower in 151 00:08:08,200 --> 00:08:11,080 Speaker 1: the future, whatever. And so they were already pricing these 152 00:08:11,360 --> 00:08:13,760 Speaker 1: rate increases in and so when they came in less 153 00:08:13,760 --> 00:08:17,600 Speaker 1: than what we expected, that was good. The market cheered. 154 00:08:18,080 --> 00:08:20,440 Speaker 1: We saw the stocks going up, we saw a bitcoin 155 00:08:20,480 --> 00:08:25,320 Speaker 1: cryptocurrencies rallying. Uh And it says that fed JEROMEE. Powe 156 00:08:25,480 --> 00:08:28,920 Speaker 1: downplayed the likelihood of an even larger rate hike after 157 00:08:29,000 --> 00:08:34,200 Speaker 1: announcing the sharpest rate crease since two thousand. Good news, 158 00:08:35,800 --> 00:08:39,480 Speaker 1: it delayed, it's it's it delayed. How fast it's gonna 159 00:08:39,520 --> 00:08:41,320 Speaker 1: suck the money back out of the system for us? 160 00:08:41,679 --> 00:08:45,960 Speaker 1: The SMP climb three percent, the best day since May um. 161 00:08:46,040 --> 00:08:49,200 Speaker 1: We saw the Dow jump two percent and the NASDA 162 00:08:49,320 --> 00:08:53,199 Speaker 1: climbed three point two percent. As I said, bitcoin cryptocurrencies 163 00:08:53,240 --> 00:08:57,319 Speaker 1: went up on the news as well. Hooray they've saved it, 164 00:08:57,440 --> 00:09:00,000 Speaker 1: right or have they? But like I said, this highlight 165 00:09:00,000 --> 00:09:03,600 Speaker 1: it's the the insanity that we hang on one guy's word. 166 00:09:05,040 --> 00:09:06,240 Speaker 1: I want to talk about that. I want to talk 167 00:09:06,240 --> 00:09:09,360 Speaker 1: about what Pow really said. I'm gonna summarize what he 168 00:09:09,440 --> 00:09:11,560 Speaker 1: said and what it really means for you and for 169 00:09:11,640 --> 00:09:13,800 Speaker 1: your business and for your money. I'm gonna go in 170 00:09:13,840 --> 00:09:16,720 Speaker 1: and talk about something called the Austrian business cycle, which 171 00:09:17,040 --> 00:09:20,360 Speaker 1: warned us about this type of thing happening. Um. And 172 00:09:20,400 --> 00:09:23,080 Speaker 1: then I want to talk about what Warren Buffett had 173 00:09:23,120 --> 00:09:24,839 Speaker 1: to say about all of this. When I come back. 174 00:09:24,880 --> 00:09:28,000 Speaker 1: You're listening to the markma Show talking about bitcoin, cryptocurrencies, 175 00:09:28,040 --> 00:09:31,000 Speaker 1: the financial system. UM, I'll be back with all of 176 00:09:31,040 --> 00:09:33,079 Speaker 1: that and more. Don't go away, all right, Welcome back. 177 00:09:33,120 --> 00:09:36,800 Speaker 1: You're listening to the Markmas Show. We're talking about bitcoin, cryptocurrencies, 178 00:09:36,800 --> 00:09:42,160 Speaker 1: the decentralized revolution, trying to explain the world that's unfolding 179 00:09:42,200 --> 00:09:45,040 Speaker 1: before our very eyes. And we're talking about today right 180 00:09:45,080 --> 00:09:48,720 Speaker 1: now about the Federal Reserve, the US Central Bank came out. 181 00:09:49,720 --> 00:09:52,480 Speaker 1: The whole world was waiting to hear what Jerome Powell 182 00:09:52,480 --> 00:09:55,640 Speaker 1: had to say. Um, and the market liked what he 183 00:09:55,679 --> 00:09:58,480 Speaker 1: had to say. I started talking about the insanity that 184 00:09:58,559 --> 00:10:01,720 Speaker 1: the entire world is fixated the words of one man, 185 00:10:02,520 --> 00:10:05,720 Speaker 1: the faith. Our faith literally lies in the hands of 186 00:10:05,800 --> 00:10:08,880 Speaker 1: one person. It's insane, but the market was expecting it 187 00:10:08,960 --> 00:10:11,000 Speaker 1: to be much worse. They thought they were going to 188 00:10:11,600 --> 00:10:14,319 Speaker 1: increase rates, which would then decrease the money supply a 189 00:10:14,400 --> 00:10:17,800 Speaker 1: lot faster. And if I summarize what he said, so 190 00:10:17,840 --> 00:10:21,959 Speaker 1: by increasing the rates, as I said, then people borrow less. 191 00:10:22,360 --> 00:10:25,160 Speaker 1: When people borrow less, they will buy less equipment for 192 00:10:25,200 --> 00:10:30,040 Speaker 1: their business, less trucks, less buildings, less houses, they'll buy 193 00:10:30,120 --> 00:10:33,600 Speaker 1: less things. So basically, he says that demand for your 194 00:10:33,679 --> 00:10:37,600 Speaker 1: labor is too high, so we have to reduce the demand. 195 00:10:38,800 --> 00:10:41,920 Speaker 1: Reduce the demand. So therefore we can reduce your wages 196 00:10:42,240 --> 00:10:45,760 Speaker 1: because we don't want inflation to keep going higher. So 197 00:10:46,040 --> 00:10:47,600 Speaker 1: in order for price to go high, we need to 198 00:10:47,640 --> 00:10:51,440 Speaker 1: control the demand. And how do we control the demand. 199 00:10:51,440 --> 00:10:54,679 Speaker 1: We control the demand by taking the money out. If 200 00:10:54,679 --> 00:10:56,640 Speaker 1: you don't have as much money, you won't buy as 201 00:10:56,679 --> 00:10:59,080 Speaker 1: many things. If you don't buy many things, the prices 202 00:10:59,120 --> 00:11:02,120 Speaker 1: don't go up as my much. That's effectively what he's saying. 203 00:11:03,120 --> 00:11:05,600 Speaker 1: It's just insanity. But digging back into this some more, 204 00:11:06,320 --> 00:11:08,320 Speaker 1: uh like I said, it says the Federals have delivered 205 00:11:08,320 --> 00:11:12,040 Speaker 1: the biggest interest rate increase since two thousand and signal 206 00:11:12,120 --> 00:11:13,960 Speaker 1: that would keep hiking at that pace over the next 207 00:11:13,960 --> 00:11:18,040 Speaker 1: couple of meetings. Unleash in the most aggressive policy action 208 00:11:18,920 --> 00:11:23,000 Speaker 1: in decades to combat soaring inflation. I mean, they're they're 209 00:11:23,040 --> 00:11:25,800 Speaker 1: on it. They're on it, he wanted to say. It 210 00:11:25,840 --> 00:11:28,400 Speaker 1: says that it will begin allowing its holdings of treasuries 211 00:11:28,400 --> 00:11:31,520 Speaker 1: and mortgage backed securities to decline in June at an 212 00:11:31,520 --> 00:11:34,880 Speaker 1: initial combined monthly pace of forty seven point five billion, 213 00:11:35,240 --> 00:11:38,080 Speaker 1: stepping up over three months to nine billions. So in 214 00:11:38,120 --> 00:11:41,560 Speaker 1: addition to lowering the interest rates so you would borrow more. 215 00:11:41,600 --> 00:11:44,319 Speaker 1: When you borrow more, it creates more money, they were 216 00:11:44,400 --> 00:11:49,480 Speaker 1: also buying treasuries and buying mortgage backed securities, which of 217 00:11:49,520 --> 00:11:52,000 Speaker 1: course props up the market. And they say they're going 218 00:11:52,040 --> 00:11:54,840 Speaker 1: to start letting them roll off. They're gonna start that's 219 00:11:54,920 --> 00:11:58,440 Speaker 1: quantitative tightening. They're gonna start tightening their balance sheet. It says, 220 00:11:58,679 --> 00:12:00,960 Speaker 1: quote from Jerome Powell, Inflation is much too high, and 221 00:12:00,960 --> 00:12:05,400 Speaker 1: we understand the hardship it's causing, and we're moving expediously 222 00:12:05,640 --> 00:12:10,400 Speaker 1: to bring it back down, he says. And as I said, 223 00:12:10,480 --> 00:12:14,720 Speaker 1: this ignited the strongest stock market rally um that that 224 00:12:14,760 --> 00:12:18,439 Speaker 1: they've seen in over twenty years. It's insane when they 225 00:12:18,520 --> 00:12:21,080 Speaker 1: raised rates, and like I said, it's just because people 226 00:12:21,200 --> 00:12:23,400 Speaker 1: thought they were going to raise them more than they did. 227 00:12:24,600 --> 00:12:27,600 Speaker 1: But like I said, this just highlights the insanity of 228 00:12:27,640 --> 00:12:34,120 Speaker 1: the entire world waiting and hanging and on every single 229 00:12:34,200 --> 00:12:39,840 Speaker 1: word that, like Jerome Pale says. They increase the money supply, 230 00:12:40,000 --> 00:12:43,160 Speaker 1: the economy blows up. Everything's good. You buy a new trucks, 231 00:12:43,200 --> 00:12:45,199 Speaker 1: you buy new equipment, you expand your business, you get 232 00:12:45,200 --> 00:12:47,680 Speaker 1: that new building, you buy that new house, you send 233 00:12:47,679 --> 00:12:50,600 Speaker 1: your kids to college, you you get a new credit card. 234 00:12:50,880 --> 00:12:53,440 Speaker 1: Everything's good. And then all of a sudden, oh, let's 235 00:12:53,480 --> 00:12:56,000 Speaker 1: just suck the money right back out. Well, and then 236 00:12:56,040 --> 00:12:58,559 Speaker 1: all the money's gone and then everything falls apart again. 237 00:12:59,840 --> 00:13:01,440 Speaker 1: That that's why we're waiting on this guy's word. But 238 00:13:01,440 --> 00:13:03,760 Speaker 1: how insane is that? Now? This is uh, this was 239 00:13:03,760 --> 00:13:09,560 Speaker 1: talked about and something called the Austrian business cycle theory. Now, 240 00:13:09,600 --> 00:13:12,240 Speaker 1: if you're not familiar with what that means, Austrian business cycle, 241 00:13:12,400 --> 00:13:15,000 Speaker 1: you should be, but many people aren't. If you have 242 00:13:15,120 --> 00:13:18,200 Speaker 1: gone to college and you've gotten a degree in economics, 243 00:13:18,559 --> 00:13:22,200 Speaker 1: you most likely haven't even heard of the Austrian school 244 00:13:22,320 --> 00:13:27,880 Speaker 1: of of economics, so most most colleges. I mean, basically, 245 00:13:27,880 --> 00:13:31,120 Speaker 1: the way the Western world, Europe and America work, Really 246 00:13:31,160 --> 00:13:34,880 Speaker 1: the world works on something more called that Kinsian economics. 247 00:13:35,120 --> 00:13:37,960 Speaker 1: Kinsian believes that the government should spend, the government should 248 00:13:38,000 --> 00:13:40,679 Speaker 1: print money, should create money out of thin air, to 249 00:13:40,920 --> 00:13:45,160 Speaker 1: stimulate the economies, to get to get the economy through 250 00:13:45,200 --> 00:13:47,480 Speaker 1: the markets through these boom and bust cycle, to prevent 251 00:13:47,880 --> 00:13:51,840 Speaker 1: the boom and bust cycle. The problem is is we 252 00:13:51,880 --> 00:13:55,400 Speaker 1: have now a hundred years of data doing this. John 253 00:13:55,400 --> 00:13:57,720 Speaker 1: Maynard Keynes is the father of the kins In school 254 00:13:57,720 --> 00:14:01,480 Speaker 1: of economics, and that came out around World War one 255 00:14:03,360 --> 00:14:05,480 Speaker 1: creation of the FED. World War two is really where 256 00:14:05,480 --> 00:14:07,200 Speaker 1: it went into place, but right around there. Soay, about 257 00:14:07,200 --> 00:14:09,600 Speaker 1: a hundred years of this policy. And if I could 258 00:14:09,600 --> 00:14:11,400 Speaker 1: show you a chart right now, which I can't. If 259 00:14:11,400 --> 00:14:12,840 Speaker 1: I could show you a chart right now, you would 260 00:14:12,880 --> 00:14:15,760 Speaker 1: see going back for a couple hundred years, the boom 261 00:14:15,760 --> 00:14:19,600 Speaker 1: and bust cycle. And what you'd see very clearly, like 262 00:14:19,640 --> 00:14:22,920 Speaker 1: that like day and night, is that from the time 263 00:14:23,040 --> 00:14:27,680 Speaker 1: the Federal Reserve was created in the boom and bus 264 00:14:27,680 --> 00:14:32,600 Speaker 1: cycles have only gotten bigger and bigger and bigger. They've 265 00:14:32,600 --> 00:14:35,560 Speaker 1: created the boom and bust cycles. Their goal is to 266 00:14:35,760 --> 00:14:38,920 Speaker 1: prevent them. But if you look at a chart, there's 267 00:14:38,960 --> 00:14:41,800 Speaker 1: no dispute in the data they've only gotten bigger and 268 00:14:41,840 --> 00:14:45,000 Speaker 1: bigger and bigger. And we would have known this if 269 00:14:45,040 --> 00:14:48,560 Speaker 1: we would have followed the Austrian business cycle theory, which 270 00:14:48,560 --> 00:14:52,000 Speaker 1: would have told us this. The Austrian business the Austrian 271 00:14:52,000 --> 00:14:54,400 Speaker 1: economics was kind of headed up by A. Ludwig von 272 00:14:54,480 --> 00:14:57,720 Speaker 1: mesis one of my favorite authors f a high Ek. 273 00:14:57,840 --> 00:15:02,240 Speaker 1: He wrote won the Nobel Prize in Economic four But 274 00:15:02,360 --> 00:15:05,360 Speaker 1: yet most people who get a degree that economics have 275 00:15:05,440 --> 00:15:07,120 Speaker 1: never heard of him. They don't know anything about him. 276 00:15:07,920 --> 00:15:10,560 Speaker 1: So the Austrian business cycle was an economic theory developed 277 00:15:10,560 --> 00:15:14,800 Speaker 1: by the Austrian school of economics on how business cycles occur. 278 00:15:15,280 --> 00:15:17,680 Speaker 1: The theory of views business cycles as the consequence of 279 00:15:17,760 --> 00:15:22,560 Speaker 1: excessive growth in bank credit due to artificially low interest 280 00:15:22,680 --> 00:15:26,800 Speaker 1: rates set by a central bank. Sound familiar, So this 281 00:15:26,880 --> 00:15:29,520 Speaker 1: is Austrian economics when most of this has written over 282 00:15:29,520 --> 00:15:33,280 Speaker 1: a hundred years ago. They warned us about this specifically, 283 00:15:33,400 --> 00:15:36,280 Speaker 1: does that sound familiar? That business cycles the consequences of 284 00:15:36,280 --> 00:15:40,160 Speaker 1: excessive growth the economy group too fast because bank credit 285 00:15:40,640 --> 00:15:44,800 Speaker 1: was artificially low. Interest rates were artificially set by the 286 00:15:44,880 --> 00:15:49,200 Speaker 1: bank to be low. The Austrian business cycle theory originated 287 00:15:49,200 --> 00:15:51,880 Speaker 1: in the work of Austrian School economist Lego on Mesis 288 00:15:52,000 --> 00:15:55,680 Speaker 1: Frederick Hyak hot Hyak won the Nobel Prize in Economics 289 00:15:55,760 --> 00:15:58,960 Speaker 1: nine seventy four. These are not crack pot people. This 290 00:15:59,000 --> 00:16:01,960 Speaker 1: is not some crackpot theory. He literally won the Nobel 291 00:16:02,080 --> 00:16:05,160 Speaker 1: Prize in Economics in ninety four for this um, in 292 00:16:05,600 --> 00:16:10,480 Speaker 1: part for his work on this theory. In fact, proponents 293 00:16:10,520 --> 00:16:12,680 Speaker 1: believe that a sustained period of low interest rates and 294 00:16:12,800 --> 00:16:16,720 Speaker 1: excessive credit creation from fractional reserve banks result in a 295 00:16:16,880 --> 00:16:23,080 Speaker 1: volatile an unstable imbalance between saving and investments. So proponents 296 00:16:23,080 --> 00:16:25,160 Speaker 1: believe that sustained period of low interest rates. So what 297 00:16:25,160 --> 00:16:26,840 Speaker 1: do we just say that Jerome Powell and the Federal 298 00:16:26,840 --> 00:16:30,960 Speaker 1: Reserve did they They raised rates, They kept rates too 299 00:16:31,040 --> 00:16:35,080 Speaker 1: low for too long. Everyone everyone says that they should 300 00:16:35,120 --> 00:16:37,160 Speaker 1: have raised the rates sooner. They've kept him too low 301 00:16:37,200 --> 00:16:39,960 Speaker 1: for too long. What does this Austrian school say. It 302 00:16:40,040 --> 00:16:44,000 Speaker 1: says that period of low ingustrates and excessive credit creation 303 00:16:44,040 --> 00:16:48,040 Speaker 1: from resulting a volatile and unstable imbalance between saving and investments. 304 00:16:48,040 --> 00:16:51,040 Speaker 1: So that's exactly what we have right now. According to 305 00:16:51,080 --> 00:16:54,080 Speaker 1: the theory, the business cycle unfolds in the following way. 306 00:16:56,240 --> 00:16:59,240 Speaker 1: Low interest rates from from the banks tend to stimulate 307 00:16:59,280 --> 00:17:01,960 Speaker 1: borrowing of That's what I've just been saying, right, which 308 00:17:02,040 --> 00:17:05,119 Speaker 1: lead to an increase in capital spending. So now you 309 00:17:05,160 --> 00:17:07,200 Speaker 1: take that money, you buy that new equipment, that new truck, 310 00:17:07,240 --> 00:17:11,320 Speaker 1: that new building, um funded by newly issued bank credit. 311 00:17:11,400 --> 00:17:13,000 Speaker 1: So the bank gives you that credit, they create that 312 00:17:13,000 --> 00:17:16,720 Speaker 1: money to an existence. Proponents hold that a credit sourced 313 00:17:16,760 --> 00:17:22,880 Speaker 1: boom results in widespread malinvestment, malinvestment, bad investment, meaning you're 314 00:17:22,880 --> 00:17:25,840 Speaker 1: taking this money and you're just putting it everywhere. Easy money, Right, 315 00:17:26,119 --> 00:17:29,040 Speaker 1: You probably didn't need that new truck or that new car, 316 00:17:29,160 --> 00:17:30,920 Speaker 1: that new piece equipment, that new house, but you did 317 00:17:30,920 --> 00:17:33,640 Speaker 1: anyway because the money was so easy, there was so 318 00:17:33,720 --> 00:17:36,400 Speaker 1: much of it, it just you just start putting it anywhere. 319 00:17:36,480 --> 00:17:40,520 Speaker 1: It creates malinvestment. I want to break down more of this, 320 00:17:40,560 --> 00:17:44,600 Speaker 1: what the credit crunches, what leads to the recession, and 321 00:17:44,640 --> 00:17:47,400 Speaker 1: what the cure for this is, don't worry, there's hope, 322 00:17:47,440 --> 00:17:49,520 Speaker 1: there's a cure. Talking about that, and then I want 323 00:17:49,520 --> 00:17:52,199 Speaker 1: to get into a Warren Buffett and they had their 324 00:17:52,200 --> 00:17:54,000 Speaker 1: big Berkshire Hathaway meeting this week. I want to talk 325 00:17:54,000 --> 00:17:56,639 Speaker 1: about what he said as well that and more. You 326 00:17:56,720 --> 00:17:59,800 Speaker 1: listen to the Mark Ball Show talking about bitcoin, cryptocurrencies 327 00:17:59,840 --> 00:18:02,480 Speaker 1: in a course, the economy right now. I got a 328 00:18:02,520 --> 00:18:04,600 Speaker 1: lot more to go, so do not go away. I'm 329 00:18:04,600 --> 00:18:07,639 Speaker 1: gonna be right back. All right, Welcome back. You are 330 00:18:07,640 --> 00:18:11,679 Speaker 1: listening to the Markmas Show. We're talking about bitcoin, decentralized revolution. 331 00:18:12,240 --> 00:18:15,920 Speaker 1: We're talking about finance, politics, technology, all of those three 332 00:18:15,960 --> 00:18:18,600 Speaker 1: converging right now to help help make sense of what 333 00:18:18,680 --> 00:18:21,080 Speaker 1: we're going through in the world today. And we're talking 334 00:18:21,080 --> 00:18:23,960 Speaker 1: about the whole world. This week was hanging on the 335 00:18:24,040 --> 00:18:27,080 Speaker 1: word of Jerome Powell from the Federal Reserve, the United 336 00:18:27,080 --> 00:18:31,119 Speaker 1: States Central Bank, wanting to know what would happen. Would 337 00:18:31,160 --> 00:18:35,480 Speaker 1: he increase rates? Would he decrease rates? Why does everybody 338 00:18:35,480 --> 00:18:40,200 Speaker 1: care about that? Because your fate literally hangs in the balance. 339 00:18:40,720 --> 00:18:44,080 Speaker 1: Will your business succeed, will it fail? Will you go bankrupt? 340 00:18:44,160 --> 00:18:46,679 Speaker 1: With your housecop and value? With your housecood down and value? Uh? 341 00:18:46,760 --> 00:18:49,320 Speaker 1: And so much more? All depends on him. And I 342 00:18:49,359 --> 00:18:54,199 Speaker 1: was explaining how the Austrian business cycle theory explained this 343 00:18:54,280 --> 00:18:56,760 Speaker 1: to us a year ago, I'm sorry, a hundred years ago, 344 00:18:57,840 --> 00:18:59,560 Speaker 1: saying that a sustained period of low interest rates and 345 00:18:59,600 --> 00:19:02,439 Speaker 1: excessive credit creation from the banks would result in a 346 00:19:02,520 --> 00:19:06,240 Speaker 1: volatile and unstable imbalance between saving and investment. And of course, 347 00:19:06,280 --> 00:19:07,879 Speaker 1: if you look back over the last hundred years since 348 00:19:07,920 --> 00:19:12,000 Speaker 1: the Federal Reserve is created, that's what we have. Each 349 00:19:12,000 --> 00:19:16,200 Speaker 1: boom and bust gets bigger and bigger and bigger, not smaller, 350 00:19:16,600 --> 00:19:20,000 Speaker 1: and then all that money that credit sourced boom results 351 00:19:20,000 --> 00:19:22,680 Speaker 1: in widespread malinvestment, meaning they just buy a bunch of 352 00:19:22,720 --> 00:19:24,720 Speaker 1: stuff they don't need. They invest into bad stuff that 353 00:19:24,720 --> 00:19:28,760 Speaker 1: nobody wants. Some of it's not their fault. Um. A 354 00:19:28,800 --> 00:19:32,719 Speaker 1: correction or credit crunch, commonly called a recession or a bust, 355 00:19:32,720 --> 00:19:36,959 Speaker 1: occurs when the credit creation has run its course. All right. 356 00:19:37,400 --> 00:19:39,720 Speaker 1: A correction or a credit crunch, called a recession or 357 00:19:39,760 --> 00:19:42,280 Speaker 1: a bust occurs when the credit creation has run its course. 358 00:19:42,600 --> 00:19:46,040 Speaker 1: So credit creates leverage. It allows us to lever up 359 00:19:46,080 --> 00:19:48,400 Speaker 1: really fast. It allows me instead of buying one house, 360 00:19:48,440 --> 00:19:49,800 Speaker 1: because I had to say for a long time to 361 00:19:49,840 --> 00:19:52,560 Speaker 1: buy one house, I can go buy five houses, and 362 00:19:52,600 --> 00:19:55,080 Speaker 1: now five houses have to be built, and all those 363 00:19:55,080 --> 00:19:58,080 Speaker 1: people have to work, all those supplies, etcetera. Instead of 364 00:19:58,080 --> 00:20:00,520 Speaker 1: one truck, I can go buy five trucks. Right. Credit 365 00:20:00,560 --> 00:20:02,480 Speaker 1: allows me to do that. The problem is just as 366 00:20:02,480 --> 00:20:05,399 Speaker 1: fast as it levers up, it also levers back down, 367 00:20:05,720 --> 00:20:07,600 Speaker 1: and so that's what they're saying. When it runs its course, 368 00:20:08,520 --> 00:20:11,000 Speaker 1: you get this recession of the bust. The money supply 369 00:20:11,200 --> 00:20:16,240 Speaker 1: then contracts or its growth slows, causing a curative curative 370 00:20:16,280 --> 00:20:20,800 Speaker 1: recession and eventually allowing resources to be real locally reallocated 371 00:20:20,840 --> 00:20:26,639 Speaker 1: back towards their formal uses. So as the money supply 372 00:20:26,800 --> 00:20:32,720 Speaker 1: contracts or shrinks, then you know the credit, the credit 373 00:20:32,800 --> 00:20:37,760 Speaker 1: that has been created disappears, and eventually it allows resources 374 00:20:37,880 --> 00:20:41,360 Speaker 1: to go back to where it should go. Right now, 375 00:20:41,400 --> 00:20:44,479 Speaker 1: The Austrian explanation of the business cycle differs significantly from 376 00:20:44,520 --> 00:20:48,400 Speaker 1: the mainstream understanding of business cycles, and its generally rejected 377 00:20:48,800 --> 00:20:53,840 Speaker 1: by mainstream economists on both theoretical and empirical grounds, which 378 00:20:53,840 --> 00:20:57,600 Speaker 1: is interesting. I reading this from Wikipedia, of course, you 379 00:20:57,640 --> 00:21:02,320 Speaker 1: know which way Wikipedia leans on this um. However, they 380 00:21:02,359 --> 00:21:05,359 Speaker 1: can say that they can be generally rejected by mainstream economists. 381 00:21:05,359 --> 00:21:08,520 Speaker 1: That's fine. Let them reject it. As I said, most 382 00:21:08,560 --> 00:21:10,959 Speaker 1: people who got degrees in economics from college don't even 383 00:21:11,000 --> 00:21:14,399 Speaker 1: know about Austrian school of economics. They've rejected it, but 384 00:21:14,520 --> 00:21:18,200 Speaker 1: it doesn't change it from being true. If you look 385 00:21:18,240 --> 00:21:19,639 Speaker 1: at it. Like I said, you could look back at 386 00:21:19,680 --> 00:21:23,080 Speaker 1: the data, you'll see right at nineteen thirteen is when 387 00:21:23,119 --> 00:21:25,439 Speaker 1: the booms and bust started getting bigger and bigger and bigger. 388 00:21:26,400 --> 00:21:28,680 Speaker 1: Why nineteen thirteen, that's when the Central Bank, the Federal 389 00:21:28,680 --> 00:21:33,040 Speaker 1: Reserve was created. That's when they started creating money. So 390 00:21:33,080 --> 00:21:35,960 Speaker 1: it led to the Great Depression. They want to tell 391 00:21:36,000 --> 00:21:40,040 Speaker 1: you that the gold standards what caused the Great Depression 392 00:21:40,119 --> 00:21:43,280 Speaker 1: because we couldn't expand the money supply. No, that's not true. 393 00:21:43,560 --> 00:21:46,800 Speaker 1: They printed way too much money. It's always about printing 394 00:21:46,800 --> 00:21:49,840 Speaker 1: money and then pulling it back out, which is a 395 00:21:49,880 --> 00:21:52,600 Speaker 1: big problem, which is why the whole world hangs on 396 00:21:52,640 --> 00:21:56,720 Speaker 1: every word from Jerome Powell because is he going to 397 00:21:56,840 --> 00:22:00,800 Speaker 1: increase the money supply or decrease it? And insane and 398 00:22:00,880 --> 00:22:04,240 Speaker 1: that's why we I like to talk about bitcoin. Bitcoin 399 00:22:04,320 --> 00:22:07,960 Speaker 1: is a system that nobody can control. It's not about 400 00:22:07,960 --> 00:22:10,760 Speaker 1: taking it from one set of people who are bad 401 00:22:11,040 --> 00:22:13,520 Speaker 1: and giving it to another set of people that are good. No, 402 00:22:14,720 --> 00:22:17,639 Speaker 1: it's about creating a system that nobody can control. How 403 00:22:17,680 --> 00:22:21,479 Speaker 1: about nobody increases the money supply or decreases the money supply. 404 00:22:21,720 --> 00:22:24,520 Speaker 1: Why do we increase and decrease the money supply, so 405 00:22:24,560 --> 00:22:27,600 Speaker 1: we can just constantly have booms and bus Now, if 406 00:22:27,600 --> 00:22:30,199 Speaker 1: you're in on it, it's very good for you. It's 407 00:22:30,240 --> 00:22:33,399 Speaker 1: what we call the cant the cantile on effect. The 408 00:22:33,440 --> 00:22:35,760 Speaker 1: cantile on effects states that whoever is closest to the 409 00:22:35,800 --> 00:22:41,800 Speaker 1: money supply has the advantage. So it probably come as 410 00:22:41,840 --> 00:22:46,880 Speaker 1: no surprise to you that the Federal Reserve was trading. 411 00:22:46,960 --> 00:22:50,640 Speaker 1: They got busted for insider trading, and in November they 412 00:22:50,680 --> 00:22:53,520 Speaker 1: decided to sell all their stocks so there wouldn't be 413 00:22:54,080 --> 00:22:58,240 Speaker 1: any conflict of interest. That's what they said, what We're 414 00:22:58,240 --> 00:23:00,600 Speaker 1: gonna sell all our stocks so there's not a conf deventures. Well, 415 00:23:00,600 --> 00:23:02,919 Speaker 1: it just so happened that that was the peak of 416 00:23:02,920 --> 00:23:07,800 Speaker 1: the cycle. Booms and bus are really good. Volatile is 417 00:23:07,880 --> 00:23:11,960 Speaker 1: really good if you know how to play it. If 418 00:23:12,000 --> 00:23:14,119 Speaker 1: I can sell at the top, buy back in at 419 00:23:14,160 --> 00:23:17,159 Speaker 1: the bottom, sell at the top, buy back in the bottom, 420 00:23:17,200 --> 00:23:20,280 Speaker 1: it works really good for me because I know if 421 00:23:20,280 --> 00:23:23,199 Speaker 1: if I know what's going on, But if I'm like you, 422 00:23:23,520 --> 00:23:25,399 Speaker 1: me and you were the average person, we don't know. 423 00:23:26,080 --> 00:23:27,959 Speaker 1: We're just stuck at the whims. Our life lives are 424 00:23:28,000 --> 00:23:31,560 Speaker 1: literally in the balance of this. Now, speaking of bitcoin, 425 00:23:31,640 --> 00:23:34,760 Speaker 1: Warren Buffett one of the most well known investors in 426 00:23:34,800 --> 00:23:38,919 Speaker 1: the world, had his annual meeting, Berkshire Hathaway Meeting, and 427 00:23:39,000 --> 00:23:41,320 Speaker 1: he had a lot to say about bitcoin. As a 428 00:23:41,359 --> 00:23:44,520 Speaker 1: matter of fact, Warren Buffett and his partner Charlie Munger, 429 00:23:45,080 --> 00:23:47,119 Speaker 1: they both set up there. Now, I'm just gonna start 430 00:23:47,119 --> 00:23:49,560 Speaker 1: off by saying that I really respect these two. I 431 00:23:49,680 --> 00:23:51,520 Speaker 1: quote Charlie Munger a lot. He has a lot of 432 00:23:51,520 --> 00:23:53,920 Speaker 1: good quotes. I learned a lot from Warren Buffett as well. 433 00:23:55,480 --> 00:23:58,000 Speaker 1: But that doesn't mean that they can't say some pretty 434 00:23:58,760 --> 00:24:04,280 Speaker 1: pretty wacky stuff. Uh So he said that, he said, quote, 435 00:24:04,320 --> 00:24:07,600 Speaker 1: it's not a productive asset and it doesn't produce anything 436 00:24:07,600 --> 00:24:10,080 Speaker 1: tangible talking about bitcoin, and he's he's right, And he 437 00:24:10,119 --> 00:24:13,080 Speaker 1: said the same thing about gold to gold doesn't produce anything. 438 00:24:13,920 --> 00:24:15,880 Speaker 1: And he said that the same thing here. He said, 439 00:24:15,960 --> 00:24:17,480 Speaker 1: quote whether it goes up or down in the next 440 00:24:17,560 --> 00:24:19,960 Speaker 1: year or five or ten years, I don't know. But 441 00:24:20,080 --> 00:24:22,400 Speaker 1: one thing I'm pretty sure of is that it doesn't 442 00:24:22,480 --> 00:24:27,640 Speaker 1: produce anything. And it doesn't gold doesn't produce anything. Dollars 443 00:24:27,640 --> 00:24:31,800 Speaker 1: don't produce anything. Bitcoin doesn't produce anything. It's a place 444 00:24:31,840 --> 00:24:34,359 Speaker 1: that you can save your money more in. Buffett likes 445 00:24:34,400 --> 00:24:37,399 Speaker 1: to buy businesses. He's famous for buying Coca Cola. He 446 00:24:37,440 --> 00:24:40,720 Speaker 1: likes Coca Cola because it's a capital efficient business. All 447 00:24:40,760 --> 00:24:43,879 Speaker 1: they do is sell syrup. They sell the syrup to 448 00:24:43,960 --> 00:24:47,160 Speaker 1: the distributors who don't have to make the soda, so 449 00:24:47,200 --> 00:24:48,960 Speaker 1: they don't have to put any money into R and D. 450 00:24:49,560 --> 00:24:52,560 Speaker 1: They just have their brand. They sell the syrup. That's it. 451 00:24:52,760 --> 00:24:55,840 Speaker 1: They create soda. He likes sees candy he bought sees candy, 452 00:24:55,920 --> 00:24:59,840 Speaker 1: same thing. Sees candy produces candy. They produce a product. 453 00:25:00,080 --> 00:25:02,760 Speaker 1: Likes those things. Um, And that's what he says. I'm 454 00:25:02,800 --> 00:25:04,920 Speaker 1: pretty sure is that it doesn't produce anything. So Warm 455 00:25:04,920 --> 00:25:08,840 Speaker 1: Buffet doesn't like gold because gold doesn't produce anything. And 456 00:25:08,880 --> 00:25:11,600 Speaker 1: I say that because that's part of you have to 457 00:25:11,680 --> 00:25:14,840 Speaker 1: understand that nuance. Warren Buffett doesn't like to save money. 458 00:25:14,920 --> 00:25:16,800 Speaker 1: He doesn't like to hold cash, he doesn't like to 459 00:25:16,800 --> 00:25:18,840 Speaker 1: hold gold, and of course he doesn't like the hold 460 00:25:18,840 --> 00:25:22,080 Speaker 1: bitcoin for the same way. However, he goes even deeper 461 00:25:22,119 --> 00:25:23,640 Speaker 1: than that. And this is where I have a little 462 00:25:23,640 --> 00:25:25,160 Speaker 1: bit of a bone to pick with him. He said, 463 00:25:25,160 --> 00:25:27,960 Speaker 1: if you said, for a one percent interest in all 464 00:25:28,000 --> 00:25:31,040 Speaker 1: the farmland of the United States, pay a group. He said, 465 00:25:31,040 --> 00:25:34,439 Speaker 1: I'll write you a check this afternoon. He said, I 466 00:25:34,440 --> 00:25:36,159 Speaker 1: know own one percent of the farm land. If you 467 00:25:36,200 --> 00:25:38,240 Speaker 1: offer me one percent of all the apartment houses in 468 00:25:38,280 --> 00:25:40,399 Speaker 1: the country and you want it, and you want I'll 469 00:25:40,400 --> 00:25:43,520 Speaker 1: write your check for that too. It's simple. But if 470 00:25:43,520 --> 00:25:46,600 Speaker 1: you told me I could own all the bitcoin in 471 00:25:46,640 --> 00:25:49,879 Speaker 1: the world for twenty five dollars, so right now it's 472 00:25:49,880 --> 00:25:52,560 Speaker 1: about eight hundred billion, he said. If I get it 473 00:25:52,600 --> 00:25:55,639 Speaker 1: for twenty five dollars, I wouldn't take it because what 474 00:25:55,680 --> 00:25:57,439 Speaker 1: would I do with it. I'd have to sell it 475 00:25:57,480 --> 00:25:59,399 Speaker 1: back to you one way or another. It isn't gonna 476 00:25:59,440 --> 00:26:01,680 Speaker 1: do anything. The apartments are going to produce rent, the 477 00:26:01,680 --> 00:26:03,840 Speaker 1: farms are going to produce food, so he's right, But 478 00:26:04,119 --> 00:26:06,040 Speaker 1: you're not gonna take eight hundred billion dollars worth of 479 00:26:06,080 --> 00:26:11,480 Speaker 1: goods for twenty dollars. It's pretty crazy. Um, he said, Uh, 480 00:26:11,560 --> 00:26:13,560 Speaker 1: in my life, I try and avoid things that are 481 00:26:14,320 --> 00:26:16,119 Speaker 1: or Before I read that part, I want to read 482 00:26:16,119 --> 00:26:19,520 Speaker 1: you another quote. He said. Assets to have value have 483 00:26:19,680 --> 00:26:24,320 Speaker 1: to deliver something to somebody, and there's only one currency 484 00:26:24,400 --> 00:26:27,280 Speaker 1: that accepted, so assets to have value have to deliver 485 00:26:27,440 --> 00:26:30,879 Speaker 1: something to somebody. I don't know about that. I mean gold. 486 00:26:30,920 --> 00:26:33,120 Speaker 1: If I if I hold if out gold, that's an asset. 487 00:26:33,680 --> 00:26:38,080 Speaker 1: Commodities are assets, wheat, uh palladium, platinum, those are assets. 488 00:26:38,560 --> 00:26:42,080 Speaker 1: I can store my wealth there. Um. But then he 489 00:26:42,119 --> 00:26:46,960 Speaker 1: goes on to say that there's only one currency that accepted, 490 00:26:47,240 --> 00:26:48,920 Speaker 1: and you can come up with all kinds of things. 491 00:26:49,080 --> 00:26:50,919 Speaker 1: So first of all, there's only one currency that accepted. 492 00:26:51,119 --> 00:26:53,600 Speaker 1: There's like hundreds of currencies. There's like almost two hundred 493 00:26:53,600 --> 00:26:55,439 Speaker 1: currencies in the world, So I don't know where he's 494 00:26:55,440 --> 00:26:58,920 Speaker 1: getting there's only one currency. That's pretty crazy. Again, he's old, 495 00:26:58,960 --> 00:27:00,800 Speaker 1: he's over ninety, I believe, so give him a break. 496 00:27:01,520 --> 00:27:05,080 Speaker 1: Um uh man, you won't even believe the best he said. 497 00:27:05,119 --> 00:27:07,640 Speaker 1: And then and then what him and Munger said, I mean, 498 00:27:07,680 --> 00:27:09,840 Speaker 1: it's just shocking. I want to tell you about that 499 00:27:10,560 --> 00:27:12,680 Speaker 1: and more in a minute. You're listening to the Mark 500 00:27:12,760 --> 00:27:14,800 Speaker 1: ma Show. We're talking about bitcoin, We're talking about the 501 00:27:14,840 --> 00:27:18,320 Speaker 1: decentralized revolution, We're talking about what the Federal Reserve just said, 502 00:27:18,760 --> 00:27:20,960 Speaker 1: what that meant. And I'm telling you what one of 503 00:27:20,960 --> 00:27:22,919 Speaker 1: the most well known investors in the world had to 504 00:27:22,960 --> 00:27:25,800 Speaker 1: say this week about bitcoin. I have that and more 505 00:27:26,240 --> 00:27:28,440 Speaker 1: when I come back in a minute. So do not 506 00:27:28,520 --> 00:27:31,040 Speaker 1: go away. I'll be right back. All right, welcome back. 507 00:27:31,040 --> 00:27:34,200 Speaker 1: You are listening to the Markma Show. We're talking about bitcoin, 508 00:27:34,280 --> 00:27:37,720 Speaker 1: We're talking about cryptocurrency, We're talking about the decentralized revolution 509 00:27:38,119 --> 00:27:41,520 Speaker 1: that we've been talking about. Um, the FED, the Central 510 00:27:41,560 --> 00:27:43,720 Speaker 1: Bank of the United States, got together, Jerome Pale. The 511 00:27:43,760 --> 00:27:46,280 Speaker 1: whole world was waiting to hear what he was gonna say. Um, 512 00:27:46,320 --> 00:27:49,720 Speaker 1: they decided to raise rates the most they've raised them 513 00:27:49,720 --> 00:27:52,840 Speaker 1: in over two decades. But the markets rallied because it 514 00:27:52,880 --> 00:27:55,040 Speaker 1: wasn't as bad as what people were expecting, so that 515 00:27:55,040 --> 00:27:57,120 Speaker 1: I was pretty good. I went on to explain how 516 00:27:57,160 --> 00:27:59,440 Speaker 1: insane that is that the whole world has to wait 517 00:27:59,480 --> 00:28:01,640 Speaker 1: for one guy to hear what the fate of their 518 00:28:01,960 --> 00:28:04,200 Speaker 1: what what their fate is? I want on to explain 519 00:28:04,240 --> 00:28:08,719 Speaker 1: the Austrian School um of Business business cycle theory, how 520 00:28:08,760 --> 00:28:10,600 Speaker 1: it predicted all of this. And now I was talking 521 00:28:10,600 --> 00:28:12,800 Speaker 1: about Warren Buffett and his meeting that he had this 522 00:28:12,880 --> 00:28:15,639 Speaker 1: week at Berkshire Hathaway and what do he had to 523 00:28:15,640 --> 00:28:18,919 Speaker 1: say about bitcoin? And he said, going on to what 524 00:28:18,920 --> 00:28:21,120 Speaker 1: he said, he said, there's only there's only one currency 525 00:28:21,200 --> 00:28:23,600 Speaker 1: that's accepted, which, as I said, this is ridiculous because 526 00:28:23,600 --> 00:28:26,320 Speaker 1: there's almost two currencies around the world. He said, you 527 00:28:26,320 --> 00:28:28,199 Speaker 1: can come up with all all kinds of things. We 528 00:28:28,240 --> 00:28:31,360 Speaker 1: can put up a Berkshire coin, but in the end, 529 00:28:32,000 --> 00:28:33,720 Speaker 1: this is money. He said. He was holding up a 530 00:28:33,720 --> 00:28:35,679 Speaker 1: twenty dollar bill, so he said, we can make a 531 00:28:35,680 --> 00:28:40,440 Speaker 1: Berkshire coin, but in the end, this is money. Well, okay, uh, 532 00:28:40,520 --> 00:28:43,440 Speaker 1: he says, uh, there's no reason in the world why 533 00:28:43,440 --> 00:28:45,760 Speaker 1: the United States government is going to let Berkshire money 534 00:28:45,800 --> 00:28:48,680 Speaker 1: replace thirs. Well, okay, part of the reason why he 535 00:28:48,680 --> 00:28:52,400 Speaker 1: has his very US centric view. So, the world's a 536 00:28:52,400 --> 00:28:58,560 Speaker 1: big place, eight billion people. The United States makes up 537 00:28:58,560 --> 00:29:03,000 Speaker 1: about three and fifty million of the eight billion people. 538 00:29:04,000 --> 00:29:07,360 Speaker 1: The United States is a small percentage of by population 539 00:29:07,560 --> 00:29:10,480 Speaker 1: of the world, not a majority. Now the world, the 540 00:29:10,760 --> 00:29:13,400 Speaker 1: dollar is the reserve currency of the world. I'll get that, um, 541 00:29:13,480 --> 00:29:15,080 Speaker 1: and you know, it's the financial center of the world, 542 00:29:15,080 --> 00:29:17,720 Speaker 1: and and on and on and on. But as I said, 543 00:29:17,760 --> 00:29:19,760 Speaker 1: there's over two currencies. So for him to say he 544 00:29:19,800 --> 00:29:21,880 Speaker 1: holds up a twenty dollar bill and says only this 545 00:29:21,920 --> 00:29:25,360 Speaker 1: is money, the United States isn't gonna let anyone replace theirs. Well, 546 00:29:25,880 --> 00:29:29,320 Speaker 1: what about the other two hundred currencies that the United 547 00:29:29,360 --> 00:29:32,360 Speaker 1: States government allows to be out there. So the reasoning 548 00:29:32,360 --> 00:29:36,080 Speaker 1: there is just insane in my opinion. I mean, it's 549 00:29:36,080 --> 00:29:38,560 Speaker 1: just completely wrong. Like I said, maybe it's us centric. Um. 550 00:29:38,600 --> 00:29:40,600 Speaker 1: What he what he could maybe say is that the 551 00:29:40,640 --> 00:29:43,959 Speaker 1: United States government would never allow anyone to use it, 552 00:29:44,760 --> 00:29:46,760 Speaker 1: and the United States could certainly make it illegal. They 553 00:29:46,760 --> 00:29:48,440 Speaker 1: could say, if we catch anybody with it, will kill 554 00:29:48,480 --> 00:29:52,120 Speaker 1: him on site. Um, But that wouldn't stop other people 555 00:29:52,160 --> 00:29:54,800 Speaker 1: from using it in other parts of the world, right, 556 00:29:55,760 --> 00:29:57,360 Speaker 1: why would they care. They let other people use other 557 00:29:57,400 --> 00:29:59,720 Speaker 1: currencies in the world. They don't kill everybody. They can't 558 00:29:59,760 --> 00:30:01,720 Speaker 1: do that. And of course then we can get into 559 00:30:01,800 --> 00:30:03,760 Speaker 1: like is it even is it even feasible? Of course, 560 00:30:03,920 --> 00:30:05,800 Speaker 1: we can talk about the war on drugs. They've made 561 00:30:05,800 --> 00:30:08,600 Speaker 1: the war on drugs for the last fifty years. They 562 00:30:08,640 --> 00:30:10,640 Speaker 1: spent trillions of dollars on this war on drugs, and 563 00:30:10,680 --> 00:30:13,000 Speaker 1: drugs are a bigger problem today. They're bigger business today 564 00:30:13,000 --> 00:30:16,880 Speaker 1: than they ever were. Drugs have to be grown and 565 00:30:16,920 --> 00:30:20,959 Speaker 1: cultivated and process and package and shipped and smuggled and distributed. 566 00:30:21,480 --> 00:30:24,080 Speaker 1: And they can't stop that. Aw they're gonna stop something 567 00:30:24,120 --> 00:30:28,280 Speaker 1: anonymous and digital. So there's that, And then we could 568 00:30:28,320 --> 00:30:30,920 Speaker 1: get into where I the government doesn't want to. There's 569 00:30:31,000 --> 00:30:32,640 Speaker 1: there's I could I could go on for another hour 570 00:30:32,720 --> 00:30:34,680 Speaker 1: telling you why the government doesn't want to. As a 571 00:30:34,680 --> 00:30:37,880 Speaker 1: matter of fact, lots of uh, lots of politicians are 572 00:30:37,960 --> 00:30:40,160 Speaker 1: running on pro bitcoin platforms. A matter of fact, one 573 00:30:40,160 --> 00:30:42,560 Speaker 1: in Ohio, I believe, just got elected in the mid terms, 574 00:30:42,800 --> 00:30:45,120 Speaker 1: not the mid terms, in the primaries. Um. Just this 575 00:30:45,160 --> 00:30:48,719 Speaker 1: week Texas is running on it. Uh. Several states are 576 00:30:48,720 --> 00:30:51,640 Speaker 1: now accepting payments in in the bitcoin. Um So, I 577 00:30:51,640 --> 00:30:53,600 Speaker 1: don't I don't think they want to. Um So, I 578 00:30:53,640 --> 00:30:55,480 Speaker 1: think that's a little bit wrong. But this last part 579 00:30:55,520 --> 00:30:57,960 Speaker 1: is where where it really got me. Um. Of course, 580 00:30:58,000 --> 00:31:01,120 Speaker 1: like I said, uh, warm Buffet and Charlie mangers partner, 581 00:31:01,200 --> 00:31:03,480 Speaker 1: Charlie Monger, both of them sat up on the stage 582 00:31:03,480 --> 00:31:08,160 Speaker 1: taking these questions, and um, you know, famously in the 583 00:31:08,200 --> 00:31:14,040 Speaker 1: past Buffet said bitcoin is probably rat poison squared, which, okay, 584 00:31:14,120 --> 00:31:17,800 Speaker 1: whatever that means. Monger doubled down on that sentiment. So 585 00:31:17,840 --> 00:31:20,080 Speaker 1: what did he say? He said, quote in my life, 586 00:31:20,440 --> 00:31:22,920 Speaker 1: I try and avoid things that are stupid and evil 587 00:31:23,440 --> 00:31:26,560 Speaker 1: and make me look bad in comparison to somebody else. Okay, 588 00:31:26,600 --> 00:31:28,160 Speaker 1: it's not bad. I don't want to do things that 589 00:31:28,200 --> 00:31:29,680 Speaker 1: are stupid I don't want do things that are evil. 590 00:31:30,960 --> 00:31:33,120 Speaker 1: I don't want to look bad either, right, he says, 591 00:31:33,160 --> 00:31:36,880 Speaker 1: bitcoin does all three. Huh, all right, that's weird, he says. Quote. 592 00:31:37,120 --> 00:31:39,960 Speaker 1: In the first place, it's stupid because it's still likely 593 00:31:40,000 --> 00:31:43,600 Speaker 1: to go to zero. Okay, so it's been the best 594 00:31:43,600 --> 00:31:49,080 Speaker 1: performing asset in the world for the last twelve years. Um, 595 00:31:49,240 --> 00:31:52,680 Speaker 1: could it go to zero? Sure it could. Uh, what's 596 00:31:52,720 --> 00:31:56,240 Speaker 1: the probability that that happens is probably very small? Um, 597 00:31:56,320 --> 00:31:58,880 Speaker 1: but it could. But he says it would make me 598 00:31:58,920 --> 00:32:01,840 Speaker 1: look stupid because it's probably gonna go to zero anyway. Well, 599 00:32:01,840 --> 00:32:04,120 Speaker 1: probably not in his lifetime, because he's probably not gonna 600 00:32:04,120 --> 00:32:06,440 Speaker 1: be alive that much longer. He's pretty old. He says 601 00:32:06,480 --> 00:32:10,400 Speaker 1: it's evil because it undermines the federal reserve system. So 602 00:32:10,480 --> 00:32:13,280 Speaker 1: there is part of where he's coming from. The third 603 00:32:13,280 --> 00:32:15,080 Speaker 1: part is what I'm really gonna talk about, but we'll 604 00:32:15,080 --> 00:32:17,520 Speaker 1: talk about this one for a minute. It undermines the 605 00:32:17,520 --> 00:32:20,600 Speaker 1: federal reserve system. So as we were talking about, the 606 00:32:20,600 --> 00:32:23,880 Speaker 1: federal reserve system creates the booms and bus the federal 607 00:32:23,920 --> 00:32:27,280 Speaker 1: reserve increases the money supply, creates these massive booms, and 608 00:32:27,320 --> 00:32:29,440 Speaker 1: if you play it right, you get filthy rich. But 609 00:32:29,480 --> 00:32:31,800 Speaker 1: then they suck the money back out, they raise the rates, 610 00:32:31,800 --> 00:32:34,000 Speaker 1: et cetera, which crashes the market, and then you lose 611 00:32:34,040 --> 00:32:37,000 Speaker 1: everything unless you know how to sell at the top 612 00:32:37,120 --> 00:32:39,440 Speaker 1: and buy back in at the bottom. Now, as I said, 613 00:32:39,760 --> 00:32:43,040 Speaker 1: the insiders, the cantile on effect, the people close to 614 00:32:43,080 --> 00:32:45,640 Speaker 1: the money supply have that advantage. They know, and that's 615 00:32:45,680 --> 00:32:49,920 Speaker 1: going to happen. That's why you know Nancy Pelosi is 616 00:32:49,960 --> 00:32:52,880 Speaker 1: worth you know, I don't know if she's a billionaire. 617 00:32:53,000 --> 00:32:54,640 Speaker 1: I have to look it up. She's worth a hunter 618 00:32:54,680 --> 00:32:56,600 Speaker 1: a couple hundred million, I believe, and she's been making 619 00:32:56,600 --> 00:32:59,480 Speaker 1: a couple hundred thousand dollars as a salary. It's why 620 00:32:59,560 --> 00:33:01,560 Speaker 1: these Paul atticitions, why the Thrower Reserve sold at the top, 621 00:33:01,560 --> 00:33:03,560 Speaker 1: and they said, oh, it's a conflict of interest. Warren 622 00:33:03,600 --> 00:33:07,240 Speaker 1: Buffett is that guy. Warren Buffett works with the government 623 00:33:07,280 --> 00:33:10,560 Speaker 1: to loan them money to buy companies out that are 624 00:33:10,720 --> 00:33:13,520 Speaker 1: deemed too big to fail to buy them out. So 625 00:33:13,760 --> 00:33:16,760 Speaker 1: it undermines the federal reserve system. That's his quote. It 626 00:33:17,240 --> 00:33:20,480 Speaker 1: it's evil because it undermines the system that's made us rich. 627 00:33:20,880 --> 00:33:23,920 Speaker 1: It's evil because it undermines the system that allows us 628 00:33:23,960 --> 00:33:28,640 Speaker 1: to get filthy rich. And haha, you peasants, how dare 629 00:33:28,680 --> 00:33:31,200 Speaker 1: you take away a system that allows to get filthy rich. 630 00:33:31,240 --> 00:33:34,400 Speaker 1: That's that's what he said. It's evil because it undermines 631 00:33:34,400 --> 00:33:36,240 Speaker 1: the federal reserve system. That's why I left this part 632 00:33:36,240 --> 00:33:39,040 Speaker 1: for last, because I wanted to explain to you how 633 00:33:39,080 --> 00:33:42,320 Speaker 1: insane this funeral reserve system is. And then he said, third, 634 00:33:42,960 --> 00:33:45,960 Speaker 1: this is the part that really gets me. It makes 635 00:33:46,040 --> 00:33:52,280 Speaker 1: us look foolish compared to the communist leader in China. 636 00:33:52,560 --> 00:33:57,360 Speaker 1: He was smart enough to ban bitcoin in China. Wow. 637 00:33:59,240 --> 00:34:02,720 Speaker 1: So here we have one of the richest guys in 638 00:34:02,720 --> 00:34:04,720 Speaker 1: in the world, one of the rich guys in the 639 00:34:04,760 --> 00:34:07,320 Speaker 1: United States got rich in in in America from the 640 00:34:07,360 --> 00:34:10,759 Speaker 1: from the American system, the America that stands for freedom, 641 00:34:10,800 --> 00:34:14,160 Speaker 1: you know, the country that allows you to have freedom 642 00:34:14,200 --> 00:34:18,800 Speaker 1: to do whatever you wanna do, allows capitalism for businesses 643 00:34:18,840 --> 00:34:21,800 Speaker 1: to make a bunch of money. That that country, that 644 00:34:21,840 --> 00:34:26,600 Speaker 1: country that gave freedom. And here he is praising communism, 645 00:34:26,719 --> 00:34:32,359 Speaker 1: a communism that doesn't allow anyone to get rich. He 646 00:34:32,440 --> 00:34:35,680 Speaker 1: was smart enough to ban bitcoin in China, so so 647 00:34:35,719 --> 00:34:37,719 Speaker 1: we should be a communist country. We should just tell 648 00:34:37,760 --> 00:34:39,640 Speaker 1: people that they can't do stuff that we don't like, 649 00:34:40,760 --> 00:34:43,080 Speaker 1: because in a free country, you're able to do whatever 650 00:34:43,120 --> 00:34:45,600 Speaker 1: you want to do as long as it doesn't hurt 651 00:34:45,640 --> 00:34:48,320 Speaker 1: somebody else, obviously, as long as there's not laws that 652 00:34:48,360 --> 00:34:50,040 Speaker 1: have been put against it. Of course, we have more 653 00:34:50,040 --> 00:34:52,759 Speaker 1: and more laws happening all the time, which I'm not 654 00:34:52,840 --> 00:34:55,440 Speaker 1: for um for small government. Let the government get out 655 00:34:55,440 --> 00:34:58,359 Speaker 1: of the way. Let us do our thing. And if 656 00:34:58,360 --> 00:35:00,279 Speaker 1: we want to have if I want to use, if 657 00:35:00,280 --> 00:35:01,840 Speaker 1: I want to store all my wealth and a in 658 00:35:01,920 --> 00:35:05,719 Speaker 1: seashells or in rice, or in palm leaves, or bananas 659 00:35:05,800 --> 00:35:09,080 Speaker 1: or bitcoin, what difference does it make. I live in 660 00:35:09,080 --> 00:35:12,200 Speaker 1: a free country. Can't I put my money into whatever 661 00:35:12,280 --> 00:35:16,440 Speaker 1: I want. It's not hurting anybody if I store all 662 00:35:16,440 --> 00:35:19,360 Speaker 1: my money in rice or bananas, if I buy old cars, 663 00:35:19,480 --> 00:35:22,319 Speaker 1: or or or or fancy paintings, what difference does it make? 664 00:35:22,360 --> 00:35:24,840 Speaker 1: I want to buy bitcoin? So what? Oh, No, we 665 00:35:24,840 --> 00:35:27,040 Speaker 1: should ban it. We should tell the people what they 666 00:35:27,080 --> 00:35:30,640 Speaker 1: can and can't do, because back to the point number two, 667 00:35:30,840 --> 00:35:33,719 Speaker 1: it undermines the federal reserve system, which has allowed us 668 00:35:33,760 --> 00:35:38,239 Speaker 1: to get filthy rich. So you know, I'll kind of 669 00:35:38,320 --> 00:35:40,920 Speaker 1: end this with just saying a little bit of critical thinking, 670 00:35:40,960 --> 00:35:43,239 Speaker 1: and this is where most people lack today. They lack 671 00:35:43,280 --> 00:35:45,920 Speaker 1: critical thinking. Whenever you get a piece of information. It 672 00:35:45,960 --> 00:35:47,480 Speaker 1: was hard to get information before. Now we have too 673 00:35:47,520 --> 00:35:49,440 Speaker 1: much information. You wanna you want to understand a couple 674 00:35:49,480 --> 00:35:53,799 Speaker 1: of things. One, who is telling me this information? What 675 00:35:53,960 --> 00:35:57,120 Speaker 1: motives might they have in telling me this information? And 676 00:35:57,160 --> 00:36:01,360 Speaker 1: what are the facts versus what is the nearer tiv Okay, 677 00:36:01,640 --> 00:36:04,160 Speaker 1: So who's telling me? Charlie Munger one of the richest 678 00:36:04,200 --> 00:36:07,960 Speaker 1: people in the world, a person that's benefited from this 679 00:36:08,040 --> 00:36:10,799 Speaker 1: system that's made him extremely rich and made us extremely poor. 680 00:36:11,360 --> 00:36:14,279 Speaker 1: It's benefited is a system that creates uh, continues to 681 00:36:14,320 --> 00:36:16,520 Speaker 1: make the rich richer and the poor poor. He benefits 682 00:36:16,520 --> 00:36:19,080 Speaker 1: from that because he's an insider. So that's who he is. 683 00:36:20,040 --> 00:36:23,840 Speaker 1: That's what his motivations are. That's where he's coming from. 684 00:36:23,880 --> 00:36:26,200 Speaker 1: Now what facts has he given me? He's given me none. 685 00:36:26,760 --> 00:36:29,680 Speaker 1: I guess the fact is Uh. The fact is that 686 00:36:29,840 --> 00:36:32,480 Speaker 1: China did ban it. Okay, well, they banned the mining. 687 00:36:34,000 --> 00:36:35,640 Speaker 1: That that might be a little bit of fact. The 688 00:36:35,680 --> 00:36:39,759 Speaker 1: rest is all narrative. Uh. And it's gonna make me 689 00:36:39,800 --> 00:36:42,359 Speaker 1: look foolish because it's gonna go to zero. Um. It's 690 00:36:42,400 --> 00:36:44,680 Speaker 1: evil because it undermines the system that's made me rich, 691 00:36:45,080 --> 00:36:47,239 Speaker 1: and uh, we should be more like communism and we 692 00:36:47,239 --> 00:36:50,960 Speaker 1: should enchant China. We should just ban everything anyway. Hopefully 693 00:36:50,960 --> 00:36:53,399 Speaker 1: that gives some context. You've been listening to the Markmas Show. 694 00:36:53,400 --> 00:36:55,880 Speaker 1: We're talking about bitcoin, we're talking about the decentralifed revolution. 695 00:36:55,920 --> 00:36:58,879 Speaker 1: We're talking about why we need a new monetary system 696 00:36:59,000 --> 00:37:00,920 Speaker 1: to get away from the dollar system that we have today. 697 00:37:01,840 --> 00:37:04,240 Speaker 1: Hopefully that makes sense. Thanks so much for listening.