WEBVTT - It's All About The Money 0:00:00.200 --> 0:00:03.160 Hello, and welcome to another episode of the Mark Mos Show, 0:00:03.160 --> 0:00:06.520 where we talk about the decentralized revolution. Of course, we 0:00:06.519 --> 0:00:09.160 talk about the way the world is changing right before 0:00:09.280 --> 0:00:11.560 our very eyes. As I say, the world we're going 0:00:11.560 --> 0:00:14.120 into is not the same as the one that we're 0:00:14.200 --> 0:00:15.880 leaving behind, and we like to look at it through 0:00:15.920 --> 0:00:20.759 the lens of of course politics, finance and technology, and 0:00:20.880 --> 0:00:23.840 the technology that is changing the world is of course 0:00:23.880 --> 0:00:26.960 bitcoin and the decentralized technology. And you know, I like 0:00:27.000 --> 0:00:30.280 to bring to you some of the some different ways 0:00:30.320 --> 0:00:32.200 to look at the world, and I try to expand 0:00:32.440 --> 0:00:35.640 your thinking so you can really understand these complex subjects 0:00:35.640 --> 0:00:37.640 that we're dealing with, some of the latest breaking news, 0:00:37.640 --> 0:00:41.040 and some interesting people to listen to as well, so 0:00:41.080 --> 0:00:42.600 you don't have to hear me talk all the time. 0:00:42.640 --> 0:00:46.080 But today I want to start off talking about something 0:00:46.120 --> 0:00:51.280 that's basically dominating most conversations today and I want to 0:00:51.320 --> 0:00:53.159 explain it to you in a way that you probably 0:00:53.240 --> 0:00:56.000 haven't yet heard. And so we're going to talk about 0:00:56.000 --> 0:00:59.480 this because this is actually what's changing the world, and 0:00:59.520 --> 0:01:03.520 it's really all about the money. So we said, I 0:01:03.560 --> 0:01:06.520 talked about it from politics of finance and technology and 0:01:06.600 --> 0:01:10.120 really this financial piece on about an eighty year timeframe, 0:01:10.440 --> 0:01:13.400 we have these financial revolutions, and that's exactly what we're 0:01:13.440 --> 0:01:15.600 facing right now. We can see where at the end 0:01:15.680 --> 0:01:20.039 of a long term debt credit cycle, potentially a hundred 0:01:20.160 --> 0:01:23.959 year sovereign debt bubble that's blowing up. And of course 0:01:24.000 --> 0:01:26.920 you see all over the news everything you know. You 0:01:26.959 --> 0:01:31.440 see inflation, and you see debt sealing limits increase, and 0:01:32.280 --> 0:01:35.960 money being printed and sent around the world to people, etc. 0:01:37.600 --> 0:01:40.760 And it's hard to really understand what's going on, especially 0:01:40.840 --> 0:01:45.280 when you have some intellectual mouthpieces like Paul Krugman talking 0:01:45.319 --> 0:01:48.600 about this and trying to explain to you. But it's 0:01:48.680 --> 0:01:51.760 all wrong. Now, if you watch my main YouTube channel, 0:01:51.760 --> 0:01:53.600 just the Mark Moss YouTube channel, like to start off 0:01:53.600 --> 0:01:56.000 the videos by saying, I'm trying to change the way 0:01:56.200 --> 0:01:59.320 you think about money because almost everything you've learned is wrong. 0:01:59.560 --> 0:02:03.240 And when you listen to people like Paul Krugman, they're 0:02:03.320 --> 0:02:06.280 lying to you. So of course everything you've learned is 0:02:06.320 --> 0:02:10.040 wrong because they're telling you the wrong information. We're going 0:02:10.080 --> 0:02:13.360 to talk about that specifically, but also what we learn 0:02:13.480 --> 0:02:16.400 in school is wrong. They don't teach you about the 0:02:16.440 --> 0:02:19.000 way money works. They don't teach you about the way 0:02:19.040 --> 0:02:22.520 the financial system works or the banking system works. And 0:02:22.600 --> 0:02:26.400 of course they don't tell you how to get wealthy. 0:02:26.680 --> 0:02:29.720 They tell you how to basically live within this system 0:02:29.960 --> 0:02:33.399 without disrupting it, without changing the way the system works, 0:02:33.400 --> 0:02:35.520 and without really getting ahead. Which is why, of course, 0:02:35.760 --> 0:02:40.520 today over about half of all people retiring today, that 0:02:40.560 --> 0:02:45.320 baby boomers, are broke. They have no money. About half 0:02:45.360 --> 0:02:47.960 of the people today couldn't come up with a thousand 0:02:48.080 --> 0:02:53.560 dollars for an emergency. And so how is that financial 0:02:53.720 --> 0:02:57.160 education you've been getting working for you? If half the 0:02:57.160 --> 0:02:59.840 people retiring have no money, and of the people that 0:03:00.240 --> 0:03:03.160 of the half that do, half of them have less 0:03:03.160 --> 0:03:05.400 than one hundred thousand dollars, which is not enough to 0:03:05.560 --> 0:03:09.280 retire off of. So how's that financial education been working? 0:03:10.400 --> 0:03:14.080 I saw I think sixty percent fifty or sixty percent 0:03:14.080 --> 0:03:17.360 of people making over one hundred thousand dollars per year, 0:03:17.680 --> 0:03:20.239 which most of you might consider that being rich or 0:03:20.919 --> 0:03:25.400 well off or something like that, about half of those 0:03:25.440 --> 0:03:29.639 people report living paycheck to paycheck. So how's that financial 0:03:29.720 --> 0:03:33.120 education coming for you? It's obviously not working very well. 0:03:33.120 --> 0:03:34.839 We saw, I've talked about it on the radio last 0:03:34.840 --> 0:03:41.520 week in Baltimore and then in Chicago. In Baltimore was 0:03:41.560 --> 0:03:44.240 more about reading. In Chicago, fifty five school districts, not 0:03:44.360 --> 0:03:50.040 one single student, not one could pass math or reading. 0:03:50.560 --> 0:03:52.880 So how's that education going for you? So let's talk 0:03:52.880 --> 0:03:56.000 about this a little bit and let's explain what's going on. Now. 0:03:56.280 --> 0:03:59.600 The Treasury, which is the United States government. So we 0:03:59.640 --> 0:04:03.480 have the Reserve and we have the Treasury. The Treasury 0:04:03.520 --> 0:04:06.480 is the United States government. The Federal Reserve is a bank. 0:04:06.720 --> 0:04:10.480 It's a collection of banks, and it's a private bank. Now, 0:04:11.080 --> 0:04:12.920 for some of you listen to this, you doubt that 0:04:13.480 --> 0:04:15.680 it was set up as a private group of banks. 0:04:16.080 --> 0:04:22.440 It is recognized and allowed by Congress. So it's semi 0:04:22.560 --> 0:04:26.200 quasi private, if you will. It's really private. It does 0:04:26.279 --> 0:04:29.800 maintain its autonomy, and they control monetary policy, so they 0:04:29.839 --> 0:04:34.839 control the banks. The United States government and the Treasury 0:04:34.839 --> 0:04:38.240 control the fiscal all right, so that's the money being 0:04:38.320 --> 0:04:42.720 spent in the government. The Fed just controls the monetary policy, 0:04:42.720 --> 0:04:45.440 which is interest rates, in the amount of the banks reserves, etc. 0:04:46.000 --> 0:04:49.880 So the United States government, the Treasury put out a 0:04:49.920 --> 0:04:54.039 report this last week. It's called the Financial Report of 0:04:54.080 --> 0:04:58.479 the United States Government. Fiscal year two twenty two. It's 0:04:58.520 --> 0:05:01.719 at Fiscal Treasury dot gov. If you want to go 0:05:01.800 --> 0:05:04.839 read this report. Now that's two hundred and fifty eight pages, 0:05:05.279 --> 0:05:08.040 so you probably don't want to read all that, but 0:05:08.480 --> 0:05:12.760 it's worth a read. So this is directly from the Treasury. 0:05:12.839 --> 0:05:15.479 This is their own report, and it starts out on 0:05:15.680 --> 0:05:20.440 the first page with a letter written by Janet Yellen, 0:05:20.720 --> 0:05:23.400 which of course is the head. She's the Secretary of 0:05:23.440 --> 0:05:26.080 the Treasury, the Department of the Treasury, which of course 0:05:26.200 --> 0:05:33.920 is the United States government. Basically in this document, surprising 0:05:33.960 --> 0:05:36.320 that they would actually put this document out because in 0:05:36.360 --> 0:05:40.640 this document they basically make the case that the government 0:05:41.360 --> 0:05:46.400 is bankrupt, insolvent, what we'd call a zombie company, and 0:05:47.720 --> 0:05:51.960 they make the statement that says the path that we're 0:05:52.080 --> 0:05:57.920 on is not sustainable. That's what it says. So it's 0:05:57.960 --> 0:06:00.920 pretty interesting they would put out this information. Now, like 0:06:00.960 --> 0:06:03.400 I said, everything you've learned is wrong. So typically they're 0:06:03.400 --> 0:06:07.200 trying to change the story, change the narrave show you 0:06:07.279 --> 0:06:11.239 information that maybe misleads you. But in this information, they've 0:06:11.240 --> 0:06:13.760 basically come out and told you, and like I said, 0:06:13.839 --> 0:06:19.239 even made the statement that it's not a sustainable path. 0:06:19.839 --> 0:06:22.240 I want to see the source of the information. I 0:06:22.279 --> 0:06:25.080 want to see what they have to say first before 0:06:25.160 --> 0:06:28.279 I start listening to other people's opinions of that data. 0:06:28.360 --> 0:06:32.479 Now back to Paul Kruegman. Paul Kruegman is, like I said, 0:06:32.560 --> 0:06:37.880 kind of the mouthpiece of the Fed, the Treasury. He's 0:06:37.880 --> 0:06:40.240 the cheerleader that basically says everything they do is correct. 0:06:40.520 --> 0:06:44.120 And of course Paul Krugman is not correct. He's never 0:06:44.160 --> 0:06:47.760 been correct. Paul Kruegman is the one who famously said 0:06:48.760 --> 0:06:51.480 the Internet's impact on the economy has been no greater 0:06:51.560 --> 0:06:56.520 than the fax machines. That's what he said. Ten years 0:06:56.560 --> 0:07:01.760 from now. The phrase quote information economy will sound silly. 0:07:02.640 --> 0:07:08.240 So look, when somebody, when we have economists, we have forecasters, 0:07:08.520 --> 0:07:12.160 when they give us their information, we should take that 0:07:12.480 --> 0:07:14.800 and pay attention to it, and then we should then, 0:07:14.880 --> 0:07:18.160 of course, see if that information comes true. So if 0:07:18.240 --> 0:07:20.800 this is somebody we want to continue to listen to. So, 0:07:20.920 --> 0:07:24.440 for example, al Gore said in two thousand and nine 0:07:24.480 --> 0:07:27.560 that the North Pole will be ice free by the 0:07:27.640 --> 0:07:31.800 summer of two thirteen because of man made global warming. 0:07:32.120 --> 0:07:36.040 The polar bears would be gone by twenty thirteen. So 0:07:36.120 --> 0:07:38.840 he said this in two thousand and nine, so we 0:07:38.920 --> 0:07:39.920 have to take a look at that. We're to look 0:07:39.960 --> 0:07:41.800 at what Paul Krugman says, I want to come back. 0:07:41.800 --> 0:07:43.440 I'm gonna explain that even more, and then we're gonna 0:07:43.480 --> 0:07:45.920 dig into this Treasury report. I'm going to show you 0:07:45.960 --> 0:07:48.360 what they said, what the data shows, and then we're 0:07:48.360 --> 0:07:51.440 gonna look at some data points actually in the economy, 0:07:51.800 --> 0:07:54.200 in the markets, in real estate to see if this 0:07:54.320 --> 0:07:56.840 is true, so you can understand exactly what's going on 0:07:56.960 --> 0:07:59.360 how to better navigate this. If you're just tune in 0:07:59.480 --> 0:08:01.720 right now, you're listen to the Mark Moish show, we're 0:08:01.760 --> 0:08:05.480 talking about, of course, the decentralized Revolution, really kind of 0:08:05.480 --> 0:08:08.760 focusing right now on this eighty year financial revolution cycle 0:08:08.800 --> 0:08:11.160 that's being reset right now. I got a whole lot 0:08:11.240 --> 0:08:13.160 to cover at this show. You don't want to miss this. 0:08:13.360 --> 0:08:15.440 We're gonna break it down and it's gonna make sense 0:08:15.480 --> 0:08:17.600 to you. All right, So I gotta take a quick break. 0:08:17.640 --> 0:08:19.000 I'm gonna be back in a minute. You don't want 0:08:19.040 --> 0:08:21.520 to miss this, don't go away. I'm gonna be right back, 0:08:23.040 --> 0:08:24.600 all right, Welcome back. If you just tune in, you're 0:08:24.600 --> 0:08:26.520 listening to the Mark Mos show, we talk about the 0:08:26.680 --> 0:08:30.520 decentralized revolution, how the world is changing as we look 0:08:30.520 --> 0:08:33.000 at it through the lens of politics, finance, and technology. 0:08:33.040 --> 0:08:36.920 Today we're looking at the financial revolution piece, and I 0:08:37.000 --> 0:08:40.640 was explaining how when we have experts and they make predictions, 0:08:40.960 --> 0:08:42.760 we should listen to those and then we should see 0:08:42.760 --> 0:08:44.840 if they got them right, to see if it's somebody 0:08:44.840 --> 0:08:47.360 that we want to continue listening to. So as I 0:08:47.480 --> 0:08:51.040 was saying with al Gore in two thousand and nine, 0:08:51.120 --> 0:08:54.840 he told us that the ice would be gone, the 0:08:54.880 --> 0:08:59.080 polar bears would be extinct by summer of twenty thirteen. 0:08:59.280 --> 0:09:02.000 Here we are a decade later, and the ice caps 0:09:02.000 --> 0:09:04.720 are even bigger than they were before. Polar bears are 0:09:04.880 --> 0:09:08.040 flourishing more than they ever have. So Al Gore is 0:09:08.040 --> 0:09:11.880 someone we should not be listening to in regards to climate. 0:09:12.120 --> 0:09:14.600 And back to Paul Kruegman telling us about the economy, 0:09:15.160 --> 0:09:17.600 it's the exact same thing. He said that the internet's 0:09:17.600 --> 0:09:19.559 impact in the economy has been no greater than the 0:09:19.600 --> 0:09:22.720 fax machine, and that ten years from now the information 0:09:22.720 --> 0:09:24.960 economy would sound silly, but yet here we are in 0:09:25.000 --> 0:09:30.120 the information economy. The information economy, you're listening to me 0:09:30.240 --> 0:09:32.839 right now making my living in the information economy, and 0:09:32.920 --> 0:09:35.319 of course that doesn't sound silly. And so again, is 0:09:35.360 --> 0:09:37.520 Paul Krugman someone we should be listening to And I 0:09:37.559 --> 0:09:41.040 would say absolutely not. But of course the government needs 0:09:41.120 --> 0:09:45.080 someone to be out there shilling their data points, and 0:09:45.160 --> 0:09:47.720 that's exactly what Paul Krugman does. Now, there's an article 0:09:47.760 --> 0:09:49.640 that came out this week that thought was pretty interesting, 0:09:51.000 --> 0:09:55.280 and of course he's a Nobel Prize winning economist, but 0:09:55.320 --> 0:09:58.640 he recently wrote some articles in the New York Times, which, 0:09:58.679 --> 0:10:01.679 of course The New York Times is also a mouthpiece 0:10:01.720 --> 0:10:04.920 for the government. It's important to listen to the information 0:10:04.960 --> 0:10:09.080 and know where it came from, what their interests are, 0:10:09.240 --> 0:10:11.600 what their biases might be, and then you have to 0:10:11.640 --> 0:10:15.880 start to learn to separate the facts from opinion. And 0:10:15.920 --> 0:10:19.559 so we know that, for example, if I was reading 0:10:19.720 --> 0:10:22.559 RT Times, I would know, well, that's a Russian news 0:10:22.559 --> 0:10:26.640 outlet and it's probably biased towards Russia. If I listened 0:10:26.679 --> 0:10:29.720 to the New York Times or the Washington Post, well, 0:10:29.760 --> 0:10:31.840 I know that's like a CIA mouthpiece, and I have 0:10:31.880 --> 0:10:36.200 to know that it's biased from that potentially, at this point, 0:10:36.240 --> 0:10:40.120 maybe some of the most neutral news might be Al Jazeera. 0:10:40.280 --> 0:10:42.920 I'd like to get some news from there. I tried 0:10:43.000 --> 0:10:45.040 to look at it from both sides, so I'm going 0:10:45.080 --> 0:10:47.520 to be equally critical of both sides that are trying 0:10:47.559 --> 0:10:50.440 to spin this bias, but still fact check me as well. 0:10:50.480 --> 0:10:52.800 It starts to try to separate what I tell you 0:10:52.840 --> 0:10:55.080 as fact from what I tell you as opinion, so 0:10:55.120 --> 0:10:57.320 you can start to formulate your own ideas anyway. So 0:10:57.360 --> 0:10:59.560 he wrote this in The New York Times, and he 0:10:59.600 --> 0:11:03.320 claimed that the debt of the government is quote over 0:11:03.559 --> 0:11:11.520 hyped issue and isn't all that unusual from a historical perspective. Now, 0:11:11.679 --> 0:11:13.840 this article that came out said that his attempts to 0:11:13.880 --> 0:11:19.079 support these employ the kind of fraudulent accounting that would 0:11:19.240 --> 0:11:24.200 land a corporate executive in jail. So what he's doing 0:11:24.320 --> 0:11:27.400 is he's taking this data and trying to spin it 0:11:27.440 --> 0:11:31.800 to support his point. But it's such it's such a 0:11:32.360 --> 0:11:34.679 it's so much of a speculator, so much of a 0:11:34.760 --> 0:11:37.720 spin that it would literally land a corporate executive in 0:11:37.880 --> 0:11:41.920 prison if they try to do this. He says that, 0:11:42.160 --> 0:11:45.920 of course he's trying to say that taming quote the 0:11:46.000 --> 0:11:48.840 federal debt should be well down on the list of 0:11:48.880 --> 0:11:51.760 government priorities. So he's saying that it's not a problem. 0:11:52.000 --> 0:11:54.360 The debt's not a problem. We shouldn't even be worried about. 0:11:54.360 --> 0:11:56.720 A matter of fact, it should be way down the 0:11:56.880 --> 0:12:00.200 list of all the things that we worried about before. 0:12:00.000 --> 0:12:06.560 After we worry about things like climate change and child poverty. 0:12:07.320 --> 0:12:11.680 Because the debt projections have become quote much less dire 0:12:11.840 --> 0:12:14.480 over the past decade or so. In reality, the debt 0:12:14.600 --> 0:12:19.320 is far higher than projected, and Krugman's own words prove it. Now, 0:12:19.559 --> 0:12:21.600 let's again, let's see what these numbers are. I'm gonna 0:12:21.640 --> 0:12:25.240 give you the numbers directly from the Treasury's own report, 0:12:25.760 --> 0:12:28.440 not from Paul Kruegman, and not opinion based. We're going 0:12:28.480 --> 0:12:30.120 to look at what the Treasury put out now. I 0:12:30.160 --> 0:12:32.040 do want to just say, going back to Paul Kruegman, 0:12:32.520 --> 0:12:36.520 in two thousand and nine, under President Obama, they started 0:12:36.600 --> 0:12:41.960 racking up debt and they projected nine trillion dollars in 0:12:42.120 --> 0:12:44.760 deficits over the coming decades. Over that wou'd be from 0:12:44.760 --> 0:12:49.600 two thousand nine nineteen, Krugman wrote back then, quote, even 0:12:49.679 --> 0:12:52.800 if we do run these deficits, federal debt would be 0:12:52.920 --> 0:12:56.719 ninety percent of GDP in twenty nineteen, or substantially less 0:12:56.720 --> 0:12:58.040 than it was at the end of World War Two. 0:12:58.280 --> 0:13:02.800 So again the Noel Prize winning economist is telling us 0:13:02.800 --> 0:13:06.320 that no problem, no problem running these deficits. Even if 0:13:06.320 --> 0:13:08.120 we do, even if we do run a nine trillion 0:13:08.120 --> 0:13:10.560 dollars in deficits, it's gonna be way less than it 0:13:10.559 --> 0:13:13.480 would in World War Two. However, he said it would 0:13:13.480 --> 0:13:16.319 be ninety percent. However, it turned out to be twenty 0:13:16.320 --> 0:13:19.400 one percent higher than that one hundred and ten percent. 0:13:20.440 --> 0:13:23.800 So again he's wrong. He's wrong, he's wrong, he's wrong. 0:13:23.800 --> 0:13:25.160 I don't know why we continue to look at him 0:13:25.280 --> 0:13:27.160 or listen to him, But let's take a look at 0:13:27.200 --> 0:13:30.320 some of these things that the Treasury put out in 0:13:30.400 --> 0:13:33.640 their own data. Now, what we can see is that 0:13:34.679 --> 0:13:38.360 the US has a massive spending problem. So if we 0:13:38.480 --> 0:13:41.000 go back, Unfortunately I can't show you the chart because 0:13:41.000 --> 0:13:43.800 we're here on the radio. But if I showed you 0:13:43.840 --> 0:13:47.800 a chart, you can go onto the thread. So the 0:13:47.880 --> 0:13:51.360 FED puts out its own data, and you can go 0:13:51.400 --> 0:13:55.079 to Fred dot st. Louis, fed dot org and you 0:13:55.080 --> 0:13:58.400 can get all this data that the FED actually puts out. 0:13:58.400 --> 0:14:00.080 I like to go to the source. And so if 0:14:00.120 --> 0:14:02.439 we look at this, we can see basically a chart 0:14:02.480 --> 0:14:05.480 of lines which shows the debt, the amount of debt 0:14:05.520 --> 0:14:08.440 that we're building, and the amount of gross domestic product 0:14:08.520 --> 0:14:12.040 that we're producing. So remember wealth is not money, wealth 0:14:12.160 --> 0:14:14.040 is goods and services. So we want to look at 0:14:14.040 --> 0:14:17.280 the gross domestic product, the amount of goods and services 0:14:17.320 --> 0:14:19.600 that are being produced. Now it's a little bit of 0:14:19.600 --> 0:14:22.280 amis leading number because the amount of spending the government 0:14:22.600 --> 0:14:26.160 actually does that increases. The GDP has grown bigger and 0:14:26.160 --> 0:14:28.320 bigger and bigger. But that's a whole another topic for 0:14:28.360 --> 0:14:31.360 another time. But if we look at just the GDP growth, 0:14:31.960 --> 0:14:36.280 we can see that until about nineteen seventy, the GDP 0:14:36.480 --> 0:14:39.880 growth and debt we're growing at about the same pace. 0:14:40.600 --> 0:14:43.920 But since around nineteen seventy they really started getting off, 0:14:44.000 --> 0:14:48.360 really nineteen eighties where they just really took a drastic turn, 0:14:49.880 --> 0:14:52.440 and we can see that now the amount of debt 0:14:52.480 --> 0:14:57.640 we're growing is way outpacing the amount of growth. Now, 0:14:57.680 --> 0:15:01.000 the problem with this is that means it's not sustainable. Now. 0:15:01.040 --> 0:15:03.880 The scam is that they tell us that, hey, we 0:15:04.280 --> 0:15:06.760 took an economic hit, we're not going to get as 0:15:06.800 --> 0:15:09.560 much growth as we normally would because of whatever recession 0:15:09.720 --> 0:15:12.480 or whatever the pandemic or whatever it is, and so 0:15:12.560 --> 0:15:14.440 we should just take on a little bit of debt. 0:15:14.600 --> 0:15:16.840 Let's go ahead and spend more than we bring in, 0:15:17.160 --> 0:15:19.960 because we'll make it up later. It's sort of like 0:15:20.000 --> 0:15:22.560 if you lost your job and you're gonna live on 0:15:22.600 --> 0:15:24.440 a credit card for a little while. But it's okay 0:15:24.440 --> 0:15:26.640 because when you get another job, then you're gonna go 0:15:26.640 --> 0:15:29.600 ahead and pay that debt back off. Or you're going 0:15:29.640 --> 0:15:32.840 to go into debt to build a new product or 0:15:32.840 --> 0:15:35.440 a business line, or a new business, and then when 0:15:35.480 --> 0:15:37.680 the business grows, you wible to pay that off. The 0:15:37.680 --> 0:15:39.760 problem is that the business doesn't ever take off, it 0:15:39.760 --> 0:15:41.480 doesn't grow, but yet you keep spending more and more 0:15:41.480 --> 0:15:43.640 and more and more debt, and eventually, eventually it's going 0:15:43.680 --> 0:15:45.480 to hit. Eventually it's going to hit. But the problem 0:15:45.600 --> 0:15:48.680 is all that debt bogs you down and doesn't allow 0:15:48.720 --> 0:15:51.040 you to grow. All the money that should be going 0:15:51.080 --> 0:15:54.760 into productive investments gets spent just to cover the debt, 0:15:55.160 --> 0:15:58.160 or what we call the interest coverage. Now you might 0:15:58.160 --> 0:16:01.760 have heard the term of a zombie company before. We 0:16:01.840 --> 0:16:04.240 have lots of zombie companies in the US and around 0:16:04.240 --> 0:16:06.760 the world. And a zombie company would basically be a 0:16:06.760 --> 0:16:12.360 company that that doesn't make enough money enough profit to 0:16:12.400 --> 0:16:16.360 cover even the interest on their debt. That's a zombie company. 0:16:16.680 --> 0:16:20.000 So no matter how much they grow, they just can't 0:16:20.000 --> 0:16:22.160 pay off the debt because the just to cover that 0:16:22.280 --> 0:16:25.440 the interest is more than the money they make. Now, 0:16:27.480 --> 0:16:30.880 could the government be in that position? Could the government? 0:16:30.920 --> 0:16:34.320 Could the United States government be a zombie company. I'm 0:16:34.360 --> 0:16:36.840 going to answer that question with some data and some facts, 0:16:36.840 --> 0:16:38.640 and we're gonna show you exactly what the Treasury said 0:16:38.640 --> 0:16:42.520 about where we're going. And I gotta be honest, it's shocking, 0:16:42.920 --> 0:16:46.200 and you're gonna understand exactly why we're arguing over debtsillion limits, 0:16:46.240 --> 0:16:50.040 and you're gonna understand exactly what is going to happen 0:16:50.080 --> 0:16:53.280 because there's no other option once you hear the data 0:16:53.280 --> 0:16:55.280 directly from them. So let's take into that. I'm going 0:16:55.320 --> 0:16:56.960 to take a break. If you're just tune and you're 0:16:57.000 --> 0:16:59.880 listening to the Markma Show talking about the decentralized rever 0:17:00.480 --> 0:17:02.960 we're talking about this eighty year financial revolution that we're 0:17:02.960 --> 0:17:05.560 focusing on right now. I'm going to cover a lot 0:17:05.640 --> 0:17:07.040 you don't want to miss this, I'll be back. Don't 0:17:07.040 --> 0:17:10.080 go away, all right, welcome back. If you just tune in, 0:17:10.119 --> 0:17:13.160 you're listening to the Markama Show. We're talking about, of course, 0:17:13.200 --> 0:17:15.680 each and every week, the decents realized revolution, the politics, 0:17:15.720 --> 0:17:19.480 finance and technology. We're focusing on just the financial revolution 0:17:19.560 --> 0:17:21.840 aspect today and we're going over this report that the 0:17:21.960 --> 0:17:24.840 US Treasury just put out. Now, I explained to you 0:17:24.880 --> 0:17:27.640 what a zombie company was. A zombie company is someone 0:17:27.680 --> 0:17:32.840 that doesn't have enough income to cover the interest revenues, 0:17:32.920 --> 0:17:38.080 must cover expenses plus interest, or your zombie. Now, the 0:17:38.200 --> 0:17:41.440 US government has a problem, and that is that they're 0:17:41.640 --> 0:17:45.800 entitlement spending, which is the mandatory This is money they 0:17:45.840 --> 0:17:48.360 owe to people, you know, Medicare and Medicaid, so security, etc. 0:17:48.640 --> 0:17:53.400 They have to pay this mandatory expenses. So just that alone, 0:17:53.480 --> 0:17:56.880 not all the other expenses. Just that plus the interest 0:17:57.000 --> 0:18:00.760 on the debt is more than the revenue, the tax 0:18:00.800 --> 0:18:04.920 revenues they bring in. That means there a zombie company. 0:18:06.080 --> 0:18:10.320 Now that doesn't take into consideration all the other long 0:18:10.440 --> 0:18:13.560 term contracts they're committed to, like defense contracts. But let's 0:18:13.560 --> 0:18:16.800 go ahead and skip past that. So just per the Treasury, 0:18:17.119 --> 0:18:22.280 the CBO Congressional Budget Office. This is the government estimates 0:18:22.280 --> 0:18:24.240 that for this year twenty twenty three, there will be 0:18:24.240 --> 0:18:28.120 four point eight trillion in tax revenue. But the mandatory expenses, 0:18:28.160 --> 0:18:32.800 which are the entitlements, also the defense budget eight billion 0:18:32.840 --> 0:18:35.320 for defense and seven hundred billion, which is the net 0:18:35.359 --> 0:18:39.040 interest on federal debt equals five point three trillion. So 0:18:39.880 --> 0:18:41.680 you have to be super good at math. Five point 0:18:41.760 --> 0:18:45.040 three trillion of mandatory expenses is more than the four 0:18:45.119 --> 0:18:51.080 point eight trillion of income. So that's a zombie company. 0:18:51.119 --> 0:18:53.840 Now that doesn't include all the other spending. Well, I'm 0:18:53.880 --> 0:18:57.040 not talking about, you know, all the other money that 0:18:57.040 --> 0:18:59.200 we're sending into Ukraine and all the other money we're 0:18:59.200 --> 0:19:01.960 sending to other country for gender studies. I'm not krying 0:19:02.000 --> 0:19:04.200 all the money for welfare and UBI. I'm not talking 0:19:04.240 --> 0:19:07.080 about any of that. I'm just talking about the mandatory, 0:19:07.320 --> 0:19:10.200 the entitlements, the money we owe to other people, medicare, medicaids, 0:19:10.200 --> 0:19:12.320 so security. I'm talking about the defense, and I'm talking 0:19:12.359 --> 0:19:15.399 about the interest on the debt. That's it. Now. You 0:19:15.480 --> 0:19:17.800 also know that the FED is on a warpath to 0:19:17.960 --> 0:19:21.680 fight inflation. They are raising rates higher, higher, higher, higher, higher, 0:19:21.720 --> 0:19:24.920 to fight inflation. But there's a couple of problems that 0:19:25.080 --> 0:19:29.800 lead that really lead to the zombie company really going overboard. 0:19:30.000 --> 0:19:32.920 And so as they continue to raise, as the FED 0:19:32.960 --> 0:19:36.480 continues to raise interest rates, the net interest on the 0:19:36.560 --> 0:19:41.080 debt goes up. So per the CBO Congressional Budget's Office 0:19:41.200 --> 0:19:45.400 estimates for this year, they estimated seven hundred billion in 0:19:45.400 --> 0:19:49.200 interest on the federal debt. However, you keep hearing about, well, 0:19:49.200 --> 0:19:51.240 the economy is still pretty good, the jobs markets so 0:19:51.280 --> 0:19:53.119 pretty good. The FED is going to keep hiking rates. 0:19:53.560 --> 0:19:56.240 Now they're talking about the FED getting to potentially a 0:19:56.440 --> 0:20:00.880 six percent rate, six per What does that mean, Well, 0:20:00.880 --> 0:20:04.240 that means at six percent, the interest of the government 0:20:04.320 --> 0:20:07.840 is now not seven hundred billion, it's about one point 0:20:07.960 --> 0:20:12.040 eight trillion, one point eight tit Now that's on the 0:20:12.160 --> 0:20:14.200 thirty one and a half trillion dollars a debt we 0:20:14.240 --> 0:20:17.239 have today. That's not including where it might be by 0:20:17.280 --> 0:20:19.760 the end of the year. So that's not seven hundred billion, 0:20:19.800 --> 0:20:23.400 it's one point eight one. That's that's an extra trillion dollars, 0:20:23.440 --> 0:20:28.280 an extra trillion dollars a year. Now, the CBO Congressional 0:20:28.240 --> 0:20:31.560 Budget Office, again they have these projections where they show, 0:20:31.840 --> 0:20:35.240 just like any business would, what their revenues are expected 0:20:35.280 --> 0:20:38.239 to be moving forward twenty twenty four, twenty five, six, 0:20:38.359 --> 0:20:40.879 twenty seven, all the way till twenty thirty three. So 0:20:40.880 --> 0:20:42.840 they show the revenues, how much they expect to get 0:20:42.840 --> 0:20:45.280 from income tax, perill tax, etc. And then they show 0:20:45.280 --> 0:20:48.080 their outlays and they break it down by mandatory, what's 0:20:48.119 --> 0:20:51.080 the mandatory expense they have to spend, and then what's discretionary. 0:20:51.200 --> 0:20:53.840 So mandatory for you personally would be like your house payment, 0:20:53.920 --> 0:20:56.239 your electricity bill, or your car payment. You have to 0:20:56.240 --> 0:20:57.960 pay those things or you get put on the street 0:20:58.000 --> 0:21:01.119 and you have no car. Discretionary would be like you know, 0:21:01.240 --> 0:21:03.399 going clothes shopping, going out to dinner, and things like that, 0:21:03.480 --> 0:21:06.240 going on a vacation, so you have the mandatory and discretion. 0:21:06.320 --> 0:21:08.360 They break that out and then they show the total deficits, 0:21:08.359 --> 0:21:10.760 so the shortcoming. So in twenty twenty three they're showing 0:21:10.760 --> 0:21:14.520 a deficit of one point four trillion. By the end 0:21:14.560 --> 0:21:17.879 of the decade, they're showing it to have a By 0:21:17.920 --> 0:21:21.560 twenty thirty, you have a deficit of two point one trillion, 0:21:22.480 --> 0:21:27.440 So basically adding in two trillion dollars of debt every 0:21:27.440 --> 0:21:31.720 single year, two trillion dollars of debt every single year. Now, 0:21:32.440 --> 0:21:36.200 first of all, this is based off of tax revenues 0:21:36.400 --> 0:21:39.000 staying the same, which they're not. As a matter of fact, 0:21:39.200 --> 0:21:44.040 tax revenues are down nine percent year over year, Wire 0:21:44.080 --> 0:21:46.879 tax revenues down. Well, turns out the FED is on 0:21:46.880 --> 0:21:49.720 a warpath. The Fed is on a warpath to stop inflation. 0:21:49.840 --> 0:21:52.399 They want prices to stop going up. They want prices 0:21:52.440 --> 0:21:55.000 to stay stable. They don't really want prices to come 0:21:55.000 --> 0:21:57.880 back down, but they want prices to stop going up. 0:21:57.920 --> 0:22:01.320 So what they're doing is they're crushing demand. And if 0:22:01.320 --> 0:22:05.120 we raise rates higher, that will bring asset prices down, 0:22:05.160 --> 0:22:07.760 your stocks, bonds, your retirement account, that will bring your 0:22:07.800 --> 0:22:10.520 real estate, your house value down. And if we can 0:22:10.640 --> 0:22:13.320