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Speaker 1: Hello, Welcome to another episode of the Mark Mass Show,

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Speaker 1: where we're always talking about the decentralized revolution, how the

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Speaker 1: world is changing through the lens of politics, finance, and technology.

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Speaker 1: And that technology that we're talking about is bitcoin, which

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Speaker 1: is a decentralized technology. And there was a lot going

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Speaker 1: on in the bitcoin world today and I have a

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Speaker 1: lot to cover we're going to talk about in this segment.

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Speaker 1: We're going to talk about what happened in the bitcoin space,

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Speaker 1: something crazy, weren't talk about the economy, what the Fed

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Speaker 1: is doing, and even more news coming out of China.

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Speaker 1: So lots to talk about in this segment. But jumping

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Speaker 1: into bitcoin for a minute, the big news is that

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Speaker 1: the price of bitcoin shot up, jumped up on fake news,

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Speaker 1: on fake rumors. And what happened is we've been talking

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Speaker 1: about on this show for a long time, is that

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Speaker 1: there is an ETF coming out that would well hopefully

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Speaker 1: there's an ETF coming out for bitcoins. We have ETFs

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Speaker 1: for all types of things, and we've been trying to

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Speaker 1: get one through for bitcoin for a long time, and

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Speaker 1: I believe there's eight ETF applications that are stuck at

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Speaker 1: the SEC trying to get through. Now one of the

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Speaker 1: larger sort of cryptocurrency bitcoin related news sites, a site

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Speaker 1: called coin Telegraph, put out a tweet on Twitter fake news,

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Speaker 1: saying that breaking Sec approves a bitcoin spot etf And

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Speaker 1: when that happened, within about thirty minutes, we saw the

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Speaker 1: price of bitcoin shoot up before coin telegraph could come

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Speaker 1: out and say reportedly, and then they went ahead and

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Speaker 1: they deleted that tweet altogether. Now, during that time, we

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Speaker 1: saw the price job dump about seven to eight percent

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Speaker 1: during that time before it was disproven. Now, what's in this?

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Speaker 1: There's something in this. There's a couple of things. First

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Speaker 1: of all, when that happened, we saw the price shoot up.

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Speaker 1: Why did it shoot up so much? I think there's

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Speaker 1: two reasons why. So, first of all, the frenzy triggered

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Speaker 1: a short squeeze. There were seventy eight million dollars in

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Speaker 1: short positions and there was thirty four million in longs,

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Speaker 1: and they got liquidated faster than.

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Speaker 2: You can say fake news.

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Speaker 1: They took off really really fast, and so there were

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Speaker 1: so many shorts. As soon as it started moving, they

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Speaker 1: started getting liquidated, which caused the price to move up faster, faster, faster, faster, faster.

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Speaker 2: Bester fa faster, all right.

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Speaker 1: The other thing that I think is interesting in the

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Speaker 1: story is isn't just on the price action. It's really

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Speaker 1: about what will happen. I guess if I think it's

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Speaker 1: more when and the ETF actually does get approved. And

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Speaker 1: so even though the news was fake, the reaction from

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Speaker 1: the market wasn't. And so what we saw is that

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Speaker 1: the market responded positively. We saw that the market moved up.

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Speaker 1: We saw the price jump up almost ten percent in

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Speaker 1: just a thirty minute time frame. Now could it have

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Speaker 1: jumped out more or less, I don't know, but I

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Speaker 1: think what it means is that happened within thirty minutes.

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Speaker 1: And so I guess the question that most of us

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Speaker 1: want to understand is do we think this news is

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Speaker 1: already priced in? Do we think that the bitcoin ETF

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Speaker 1: getting approved is already priced in? I believe Bloomberg has

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Speaker 1: it at like a ninety percent chance of it becoming approved.

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Speaker 1: We've seen Gary Ginsler's language around this starting to change,

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Speaker 1: and so is it already priced in? And based off

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Speaker 1: of this price action, it looks.

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Speaker 2: Like maybe it wasn't.

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Speaker 1: If this wasn't taken down within thirty minutes, if it

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Speaker 1: was allowed to stay up for long or for hours,

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Speaker 1: for days, for weeks. What could happen? How much could

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Speaker 1: the price move up? Now? It's a little bit priced

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Speaker 1: in in my opinion, because it didn't jump up that much.

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Speaker 1: I mean, sure, seven, eight, nine, ten percent sounds like

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Speaker 1: a lot.

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Speaker 2: It would be a lot for this.

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Speaker 1: S in P. Five hundred, it's not a lot for bitcoin.

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Speaker 1: We've seen bitcoin move way more than that in a

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Speaker 1: single day, in a single candle. And so while that

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Speaker 1: certainly is positive price action, it's not as big as

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Speaker 1: you might think it would be. And so to me,

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Speaker 1: I think that most of it has been priced in,

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Speaker 1: not one hundred percent of it, but most of it

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Speaker 1: has been priced in. Of course, this doesn't account for

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Speaker 1: the amount of funds that will flow into bitcoin at

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Speaker 1: some point.

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Speaker 2: Now.

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Speaker 1: One of the biggest ETFs that's trying to get through

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Speaker 1: right now is from the largest asset manager in the world, Blackrock.

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Speaker 1: I'm no fan of Blackrock. I've been very vocal about that,

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Speaker 1: but Blackrock is one of the I believe eight ETFs

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Speaker 1: trying to get through. And if anybody's going to get

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Speaker 1: an ETF through, it's probably going to be Blackrock. There's

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Speaker 1: sort of like a quasi semi arm of the government.

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Speaker 1: They work on the Fed's behalf, they work with the

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Speaker 1: FDIC bank bailouts, all of those things. So if anybody

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Speaker 1: could get one through, it would be them. And it's

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Speaker 1: pretty interesting this week to see the CEO of Blackrock,

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Speaker 1: Larry Fink, come out and say that he's seeing client

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Speaker 1: demand for bitcoin all around the world. He said that

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Speaker 1: clients across the globe are talking about the need for crypto.

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Speaker 1: He said that I think the rally today is about

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Speaker 1: a flight to quality. With all the issues around the

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Speaker 1: Israeli war now global terrorism, etc. People want to flight

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Speaker 1: to quality, and he thinks that's why people are going

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Speaker 1: to bigcoin, which is very interesting. You have arguably the

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Speaker 1: most powerful man in the financial world, which makes him

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Speaker 1: arguably one of the most powerful men in the entire world,

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Speaker 1: who you wouldn't think would want something like bitcoin to

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Speaker 1: be approved, and also would always be trying to talk

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Speaker 1: down fears of financial problems in the markets, financial markets,

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Speaker 1: and here he is talking about bitcoin being used as

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Speaker 1: a flight to safety.

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Speaker 2: So think about that for a minute.

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Speaker 1: Bitcoin went from being a scam to being a Ponzi scheme.

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Speaker 2: To being ridiculous.

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Speaker 1: Jamie Diamond of JP Morgan said that if anybody even

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Speaker 1: used it, he would fire them, and if anybody at

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Speaker 1: JP Morgan used it trade that he would fire them.

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Speaker 1: To now we have arguably one of the most powerful

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Speaker 1: men in the world think saying that they're using it

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Speaker 1: as a flight to quality.

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Speaker 2: Boy, how far we've come.

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Speaker 1: It reminds me of the quote that I think it's

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Speaker 1: first they laugh at you, then they fight you, and

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Speaker 1: then they finally accept you. And so that's sort of

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Speaker 1: where we're at now. I wouldn't say that it's a

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Speaker 1: flight to quality necessarily. I think it's something a little

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Speaker 1: bit different. So typically we have a flight to quality.

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Speaker 1: And you think about treasury. The treasury market like the

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Speaker 1: bond market, and bonds are what's considered a risk free asset.

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Speaker 1: It's a risk free asset because the government's always going

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Speaker 1: to pay. Now, it's not totally risk free.

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Speaker 2: It's only risk.

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Speaker 1: Free if you hold it to maturation. However, even that's

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Speaker 1: not risk free because they're going to pay you back,

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Speaker 1: but they're going to pay you back.

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Speaker 2: With heavily devalued dollars.

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Speaker 1: So you may get one hundred dollars put one hundred

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Speaker 1: dollars in you get a hundred dollars back, but the one

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Speaker 1: hundred dollars may only buy you twenty or thirty dollars

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Speaker 1: worth of stuff. So there is risk there, inflation risk. However,

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Speaker 1: what I'm seeing isn't a flight to safety, because it's

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Speaker 1: no one's flut rushing into the treasury or bond market.

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Speaker 1: What they're doing is they're buying assets instead. So we're

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Speaker 1: seeing gold at one of the largest deviations from the

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Speaker 1: treasury market that we've seen in recent history. Bitcoins holding up,

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Speaker 1: even stocks are holding up, which is against everybody on

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Speaker 1: Wall Street. They're telling you that no, once rates go up,

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Speaker 1: the stocks have to come down because when the risk

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Speaker 1: free rate moves up, stock the evaluations, the pe ratios

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Speaker 1: have to come down. Really do they have to, because

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Speaker 1: they haven't. Rates have been going up for a year.

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Speaker 1: How come the ratios haven't come down? And I think

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Speaker 1: the reason why is the same reason why Larry thinks

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Speaker 1: that people are rushing to safety. What they're rushing to

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Speaker 1: safety in isn't the safety asset of the bond. What

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Speaker 1: they're rushing to is anything other than fiat currency. But

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Speaker 1: they're rushing to is anything other than government inside paper

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Speaker 1: money bond market money. What they're rushing to is real assets.

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Speaker 1: That's why gold is going up, That's why real estate

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Speaker 1: is holding up, that's why equities are holding up, and

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Speaker 1: that's why bitcoin is holding up. Now do I think

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Speaker 1: something could change? Of course, something can always change. There

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Speaker 1: is so so much danger sitting out in this world

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Speaker 1: right now that something could certainly change. But it's sort

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Speaker 1: of like this crackup boom right level. Go On Misis,

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Speaker 1: the godfather of the Austrian school of economics, called it

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Speaker 1: the crackup boom, he said. And then suddenly people realize

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Speaker 1: that inflation is both intentional and ongoing, and they will

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Speaker 1: no longer want to hold the currency and they'll quickly

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Speaker 1: trade it for anything else that they can get their

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Speaker 1: hands on. And so you see this happening in other

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Speaker 1: countries all around the world, where Venezuela, Lebanon, Turkey, et cetera,

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Speaker 1: where the currency is dropping so fast they'll literally take

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Speaker 1: anything other than hanging onto the currency. Now, we may

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Speaker 1: not be at that point saying the United States is

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Speaker 1: at the Lebanon, Turkey, Argentina, Venezuela level yet, but we're

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Speaker 1: certainly on that path. And I think this is why

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Speaker 1: people aren't rushing to the safety of the treasuries in

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Speaker 1: the bonds, but rather holding onto assets such as equities

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Speaker 1: which aren't super safe in my opinion, but gold, real

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Speaker 1: estate and bitcoin.

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Speaker 2: But we'll see. If you're just tuning in listening.

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Speaker 1: To the markmas Show, we're talking through some of the

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Speaker 1: latest breaking news headlines this week. We just went through

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Speaker 1: what happened in the bitcoin crypto markets and with the

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Speaker 1: largest asset manager in the world. But I have a

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Speaker 1: whole lot more to cover when I come back after

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Speaker 1: this very short break. Don't go away, I'll be here

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Speaker 1: back all right, Welcome back. If you're just tune in

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Speaker 1: your listening to the Mark Maas Show, we're talking through

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Speaker 1: some of the latest breaking news headlines this week. Of course,

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Speaker 1: always looking through the lens of politics, finance and technologies,

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Speaker 1: you can have a better understanding, better context to what's

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Speaker 1: going on in the world now. Right before the break,

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Speaker 1: I was talking about this Ludwig von Misus's theory called

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Speaker 1: the crackup boom and how people don't want to hold

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Speaker 1: on to the money anymore, they'd rather buy assets. And

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Speaker 1: so we've seen these assets going higher and higher and higher,

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Speaker 1: partly because of this inflation where the currency's being destroyed

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Speaker 1: and partly because of this rush to own those types

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Speaker 1: of assets.

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Speaker 2: And I've been very vocal.

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Speaker 1: I've been on record many times on my main YouTube channel,

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Speaker 1: Mark Moss, which, by the way, if you're not watching

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Speaker 1: on YouTube, you should just search Mark Moss on YouTube

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Speaker 1: and you can watch and listen to all these shows

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Speaker 1: on the podcast just search the Mark Moss Show, or

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Speaker 1: you can watch these episodes also on the Market Disruptors

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Speaker 1: YouTube channel. But I've been very vocal, even back when

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Speaker 1: inflation was at seven eight nine percent, saying that this

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Speaker 1: I think this would still even be some of the

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Speaker 1: lowest inflation that we'll see for the rest of the decade.

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Speaker 1: And so while a lot of people think that inflation

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Speaker 1: is over the FED has won, I don't think they're

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Speaker 1: even close. And what do I mean by that, I

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Speaker 1: mean inflation has come down reportedly from this nine percent

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Speaker 1: down to this three percent range, right, Mark, So they

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Speaker 1: did win. They got it down, right, well, not really.

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Speaker 1: First of all, that number is so heavily.

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Speaker 2: Manipulated you can't believe that number.

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Speaker 1: Second of all, inflation comes in waves, all right, So yes,

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Speaker 1: they got it down temporarily get ready for the next

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Speaker 1: move up. Now, we can see this in any number

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Speaker 1: of ways. For example, I saw this report come out

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Speaker 1: this week that home buyers in the United States now

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Speaker 1: home buyers must earn one hundred and fifteen thousand dollars

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Speaker 1: to afford the typical US home. The median home price

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Speaker 1: in the United States, you now have to earn one

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Speaker 1: hundred and fifteen thousand dollars to afford that meeting home.

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Speaker 1: The problem is that's about forty thousand more than the

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Speaker 1: median US income, So the median income can't afford the

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Speaker 1: median house.

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Speaker 2: That's a problem.

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Speaker 1: The bigger problem is that this has gone up by

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Speaker 1: more than fifty percent since the start of the pandemic.

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Speaker 1: So now you need fifty percent more income today then

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Speaker 1: you needed a few years ago to buy the median

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Speaker 1: home price. The problem is your pay didn't go up

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Speaker 1: by fifty percent, which is why we're continue to see

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Speaker 1: it being harder and harder and harder and harder for

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Speaker 1: people to live, which is why in the United States

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Speaker 1: we continue to see strikes.

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Speaker 2: Right, we have strikes happening all over the place.

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Speaker 1: The auto workers in Hollywood, I saw the railways today,

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Speaker 1: everywhere we're having strikes because people can't afford to live anymore.

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Speaker 1: It's gotten way too expensive. Home prices went up fifty percent,

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Speaker 1: but your pay didn't. And so while the FED wants

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Speaker 1: to tell you they've got inflation under control, they haven't. Also,

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Speaker 1: as I've mentioned many times, even if they did get

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Speaker 1: inflation from their nine percent down to three percent, it

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Speaker 1: doesn't mean that prices came back down. What it means

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Speaker 1: is that prices continue to go up, just at a

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Speaker 1: little bit of a slower rate. But that's compounding because

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Speaker 1: we're still adding on to the already high rate. And

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Speaker 1: like I said, I've been very vocal saying that I

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Speaker 1: think inflation is still going higher. And I think the

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Speaker 1: market is actually telling us the same thing, not the FED.

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Speaker 1: The Fed's patting themselves on the back saying they got

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Speaker 1: a job well done, but the market is telling us

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Speaker 1: something different. Now, the market is us. The market is

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Speaker 1: me and you. The market is the people, the businesses,

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Speaker 1: it's Wall Street, it's the bankers, the people we make

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Speaker 1: up the market. And the markets are what it's called

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Speaker 1: discounting mechanisms. They're really the betting markets. Every day, if

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Speaker 1: you put money into the market, whether into the economy,

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Speaker 1: or more specifically, into the Wall Street kind of investment market.

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Speaker 2: You are betting.

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Speaker 1: You're placing your bet as to what you think that

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Speaker 1: could happen. So if you go to Las Vegas, for example,

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Speaker 1: you're gonna go into the sportsbook.

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Speaker 2: You're gonna bet on a football game.

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Speaker 1: So you're gonna say, I'm going to put down this

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Speaker 1: hundred dollars that I think the Dallas Cowboys are going

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Speaker 1: to win this game, and they either do or they don't,

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Speaker 1: and I win money I don't. Now I'm sort of

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Speaker 1: doing the same thing. If I'm buying Tesla or Apple

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Speaker 1: or Facebook or or whatever stock i'm buying, I'm betting

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Speaker 1: that the price of that stock will go up, or

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Speaker 1: I'm short and I'm betting the price we will down.

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Speaker 1: So we're all betting at the same time. The market

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Speaker 1: is is billions of pieces of data all aggregating together

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Speaker 1: to tell us what people think is going to happen,

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Speaker 1: what the future will hold. And so we can see

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Speaker 1: this I've talked a lot about if you look at

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Speaker 1: the treasury market, the bond market, we have the inversion

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Speaker 1: of the yield curve. You've heard about this extensively, so

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Speaker 1: what this means the yield curve is supposed to go

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Speaker 1: from lower rates in the short term, so three months,

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Speaker 1: six months, et cetera should be very should be low rates,

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Speaker 1: and the long term, the thirty year bond should be

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Speaker 1: a higher rate because I want to get paid a

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Speaker 1: higher amount to loan to you for a longer period

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Speaker 1: of time. Makes sense, right, So we should have this

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Speaker 1: yield curve where the long rates are higher than the

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Speaker 1: short term rates. The problem is it's been inverted, meaning

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Speaker 1: that the short term rates are higher than long term rates.

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Speaker 1: Whenever that happens, spens, it's guaranteed it. It's told us

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Speaker 1: that there's a recession coming. I believe it's one hundred

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Speaker 1: percent accurate, and it's told us that typically that recession

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Speaker 1: comes in about twelve to eighteen months. And now we're

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Speaker 1: starting to see that yield curve the inverted. Your career

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Speaker 1: is starting to reinvert or what we call resteeping. But

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Speaker 1: what's happening is it's happening the wrong way. So typically,

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Speaker 1: the way it's supposed to work is that the front end,

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Speaker 1: which is higher than it should be, should come down.

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Speaker 1: But what we're seeing is the back end that's higher

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Speaker 1: I'm sorry, is lower is actually starting to go up.

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Speaker 1: So what this means is that the market is actually

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Speaker 1: calling the fed's bluff on maintaining a long term inflation

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Speaker 1: target of two percent. The market doesn't believe that the

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Speaker 1: FED has control over inflation. The market believes. Millions of people,

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Speaker 1: billions of people and data points believe that the FED

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Speaker 1: has completely lost control of over inflation, just like I'm saying.

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Speaker 1: And the reason we can see this in this yield curve.

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Speaker 1: If the market believe the Fed's two percent target, then

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Speaker 1: they would happily be buying notes on the on the

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Speaker 1: back end at four point eight percent. Right, if I

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Speaker 1: believe that we'd have two percent inflation, I'll gladly buy

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Speaker 1: a note at four point eight percent. That means that

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Speaker 1: I'm guaranteed a almost three percent return over ten years.

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Speaker 1: The markets, but the markets don't believe that. The markets

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Speaker 1: don't believe the fed's narrative. The markets don't believe that

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Speaker 1: they're going to continue to see this two percent target.

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Speaker 1: They think inflation is going to be higher. That's what

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Speaker 1: we're witnessing. We're witnessing the free market signal that it

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Speaker 1: no longer believes the Fed's two percent target is realistic.

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Speaker 1: They don't believe it's attainable, and all the data supporting

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Speaker 1: this is there. It includes the average inflation rate since

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Speaker 1: nineteen seventy one being three point nine seven four percent.

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Speaker 1: Since nineteen seventy one, the average inflation rate has been

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Speaker 1: four percent, not two percent like the Fed wants to

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Speaker 1: get to. And again, if the market did believe the Fed,

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Speaker 1: then they would be buying the ten year note to

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Speaker 1: lock in those real rates of return, not selling it.

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Speaker 2: But they're not. They're selling it.

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Speaker 1: The selling the rising rates signals the market fields it's

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Speaker 1: not being properly compensated for the real inflation risk, which

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Speaker 1: is greater than the previous consensus of two percent. So

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Speaker 1: the yield curve resteepening, specifically at the long end, is

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Speaker 1: telling us the Fed's lost control of the yield curve.

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Speaker 1: It's a big deal, amah and the Fed. The Fed

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Speaker 1: is trying to regain confidence in the market. They're trying

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Speaker 1: to tell us. We've seen several I think seven Fed

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Speaker 1: boat board governors came out in the last week trying

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Speaker 1: to what we call jab owe the market talk it

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Speaker 1: back down, saying we think enough has been done. We

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Speaker 1: think the market is taking care of itself. We think

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Speaker 1: that we don't need to raise rates anymore. We think

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Speaker 1: we've we've saw the inflation problem. Congratulations. Let me pat

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Speaker 1: ourselves on the back here real quick. So this is

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Speaker 1: what the Fed is trying to tell us, but the

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Speaker 1: markets don't believe it. If you're just tuning in, you're

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Speaker 1: listening to the Mark mash Show breaking down some of

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Speaker 1: the latest breaking news headlines this week so you can

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Speaker 1: understand it. I have a lot more to cover when

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Speaker 1: we come back. I'm gonna dig deeper into the bonds

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Speaker 1: so you can understand exactly what's going on, what you

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Speaker 1: need to do, and more.

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Speaker 2: Don't go away, I'll be here back all right, Welcome back.

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Speaker 1: If you're just tune in your listening to the Mark

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Speaker 1: Maas Show, we're talking through some of the latest breaking

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Speaker 1: news headlines this week so you can understand what the

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Speaker 1: heck is going on out.

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Speaker 2: There in the world.

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Speaker 1: Of course, always looking at through the lens of politics, finance,

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Speaker 1: and technology, you're really looking at the convergence of those

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Speaker 1: three things to bring greater context into what's going on

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Speaker 1: into the world. Now, we were talking about inflation, we were

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Speaker 1: talking about the bonds, and specifically how the bonds are

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Speaker 1: calling the Fed's bluff.

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Speaker 2: They don't believe.

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Speaker 1: The market doesn't believe, as evidence through the yield curve

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Speaker 1: that inflation is coming back down to two percent, and

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Speaker 1: we're seeing all types of problems.

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Speaker 2: In the bond market.

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Speaker 1: Nobody wants to buy it, wants to buy it, and

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Speaker 1: the reason why is because they know the government is

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Speaker 1: going to continue to print money. The amount of money

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Speaker 1: printing is I don't even know the word. I'm speechless.

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Speaker 1: I've never seen this before. No one's ever seen this before.

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Speaker 1: As a matter of fact, there is so much debt.

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Speaker 1: The government is spending so much money at an unprecedented

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Speaker 1: level that it just boggles the mind. Let me let

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Speaker 1: me break it down for you. It took the US

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Speaker 1: government just eighteen days to add more than five hundred

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Speaker 1: billion dollars in debt after passing the thirty three trillion

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Speaker 1: dollar debt run. Now, to put this into sort of

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Speaker 1: some context, it took from the founding of the United

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Speaker 1: States all the way until nineteen eighty one to get

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Speaker 1: to one trillion.

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Speaker 2: Dollars of debt.

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Speaker 1: Okay, from beginning to nineteen eighty one, and now we

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Speaker 1: hit that run rate in less than two months.

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Speaker 2: I don't even know what to say about that.

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Speaker 1: It took the US until March of nineteen seventy five

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Speaker 1: do you get to its first five hundred billion, and

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Speaker 1: now it did that in eighteen days.

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Speaker 2: It's insane.

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Speaker 1: And so now we're starting to witness that the market

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Speaker 1: is starting to wake up to the fact that sure,

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Speaker 1: sure it's risk free because sure the government's going to

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Speaker 1: pay me back, but they're going to be paying me

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Speaker 1: back with heavily devalue dollars. I don't want that. And

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Speaker 1: not to mention, the demand is still mostly there. There's

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Speaker 1: still people in the market other nations, governments, etc. Banks,

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Speaker 1: pension funds that still want to buy the US debt.

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Speaker 1: So there still is demand for the supply of the

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Speaker 1: US debt. The problem isn't the demand. The problem is

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Speaker 1: the supply. The problem is they've pushed the supply up

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Speaker 1: so much that the demand is just.

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Speaker 2: Not high enough.

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Speaker 1: That's where we're at, and we can see that really

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Speaker 1: a lot of this has changed sort of in this

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Speaker 1: in two thousand is really when we saw this massive change,

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Speaker 1: when we really entered in this quantitative easy era, and

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Speaker 1: really in twenty fourteen we saw it shift even more

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Speaker 1: in twenty fourteen. What shifted is we started to see

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Speaker 1: that central banks around the world wanted to stop growing

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Speaker 1: their holdings of US treasuries, and so that started to

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Speaker 1: put a limit onto well, not so how much debt

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Speaker 1: that could be issued, but really the function of the

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Speaker 1: US treasury market overall. In order the US treasury market

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Speaker 1: cannot have dysfunction, we need to have liquidity in the system.

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Speaker 1: If the dysfunction gets too high, if the financial system

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Speaker 1: doesn't work properly, if the liquidity dries up, the whole

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Speaker 1: thing can seize and freeze, and the whole system melts down.

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Speaker 2: Nobody wants that.

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Speaker 1: As much as I want to see the entire system

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Speaker 1: rebuilt on a sound money system, a Bitcoin standard, if

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Speaker 1: you will, I don't want that to happen tomorrow. We

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Speaker 1: don't want a disorderly breakdown of the market. And so

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Speaker 1: the FED certainly does not want this dysfunction to be high.

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Speaker 1: But because of the fact that we don't have as

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Speaker 1: many buyers in the market and because of the increased demand,

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Speaker 1: something has to give. The FED has been holding this

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Speaker 1: position of being hawkish. They want to continue to shrink

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Speaker 1: their bounds. They want to continue to tighten the market.

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Speaker 1: But how can they shrink their bounds. How can they

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Speaker 1: tighten the market when the government needs to continue to

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00:22:27,880 --> 00:22:30,240
Speaker 1: put more debt out and nobody else will buy it.

437
00:22:31,680 --> 00:22:35,000
Speaker 1: They certainly can't. They're going to have to do something.

438
00:22:35,480 --> 00:22:39,600
Speaker 1: They're going to have to Well, really, it's only one.

439
00:22:39,640 --> 00:22:41,800
Speaker 1: I guess they have two options. Either one they have

440
00:22:41,880 --> 00:22:45,960
Speaker 1: to inject more US dollar liquidity into the system, or

441
00:22:46,040 --> 00:22:49,399
Speaker 1: two they have to face the US recession. But a

442
00:22:49,480 --> 00:22:52,640
Speaker 1: US recession isn't as in a policy choice they can make,

443
00:22:53,000 --> 00:22:55,480
Speaker 1: because if they did, if they chose the recession, the

444
00:22:55,560 --> 00:23:00,679
Speaker 1: resulting increase in unemployment would drive a complete blowout in deficits,

445
00:23:00,920 --> 00:23:04,280
Speaker 1: which would likely drive a rise in US treasury yields

446
00:23:04,320 --> 00:23:07,760
Speaker 1: in a recession, again, sending the US into a debt

447
00:23:07,800 --> 00:23:11,119
Speaker 1: spiral that discredits the FED and the Treasury and ultimately

448
00:23:11,160 --> 00:23:15,480
Speaker 1: forces a system systematic, systemic reset.

449
00:23:15,760 --> 00:23:16,679
Speaker 2: So what do I mean by that?

450
00:23:18,480 --> 00:23:21,600
Speaker 1: So, Yeah, the government is sort of like you and I,

451
00:23:21,760 --> 00:23:23,639
Speaker 1: sort of like a business. They have income and they

452
00:23:23,680 --> 00:23:27,720
Speaker 1: have expenses. The government has tax revenue that comes in

453
00:23:28,200 --> 00:23:30,560
Speaker 1: and then they spend that tax revenue on lots of

454
00:23:30,560 --> 00:23:31,240
Speaker 1: different things.

455
00:23:32,160 --> 00:23:34,240
Speaker 2: In pre pandemic times.

456
00:23:33,960 --> 00:23:37,399
Speaker 1: The US government was spending about four and a half

457
00:23:37,560 --> 00:23:39,959
Speaker 1: trillion I think it was about four point eight trillion

458
00:23:40,040 --> 00:23:43,640
Speaker 1: dollars per year. That was the annual budget after the pandemic.

459
00:23:43,680 --> 00:23:47,240
Speaker 1: And now today they're spending about I think six point

460
00:23:47,280 --> 00:23:50,960
Speaker 1: eight about a fifty percent increase in annual spending of

461
00:23:51,000 --> 00:23:53,919
Speaker 1: the government. The problem is that they didn't have a

462
00:23:53,960 --> 00:23:57,639
Speaker 1: fifty percent increase in income. As a matter of fact,

463
00:23:57,760 --> 00:24:01,720
Speaker 1: the income went down. So the government is now living

464
00:24:01,760 --> 00:24:04,520
Speaker 1: off of credit cards, if you will. Now, why did

465
00:24:04,560 --> 00:24:08,040
Speaker 1: the income go down? Well, because as we're moving more

466
00:24:08,080 --> 00:24:13,280
Speaker 1: towards the recession, people are spending less money. A majority

467
00:24:13,480 --> 00:24:16,600
Speaker 1: of that tax revenue comes from capital gains. So when

468
00:24:16,640 --> 00:24:18,960
Speaker 1: your stocks are going up and your house is going up,

469
00:24:19,040 --> 00:24:21,400
Speaker 1: and you're selling your stocks, you're selling your bitcoin, you're

470
00:24:21,400 --> 00:24:24,399
Speaker 1: selling your real estate, you have capital gains tax you

471
00:24:24,480 --> 00:24:28,119
Speaker 1: have to pay. But when asset prices aren't going up anymore,

472
00:24:28,160 --> 00:24:30,280
Speaker 1: there's no capital gains, and so they lose a lot

473
00:24:30,440 --> 00:24:30,919
Speaker 1: a lot.

474
00:24:30,800 --> 00:24:33,720
Speaker 2: Of their revenue any other number of things.

475
00:24:33,760 --> 00:24:38,280
Speaker 1: And so what happens is if this has already happened now,

476
00:24:38,320 --> 00:24:41,600
Speaker 1: if the FED doesn't inject liquidity, and we go into

477
00:24:41,640 --> 00:24:44,840
Speaker 1: a massive recession or any recession for that matter, then

478
00:24:44,840 --> 00:24:48,000
Speaker 1: that's even less income for the government, which means their

479
00:24:48,000 --> 00:24:50,800
Speaker 1: deficit goes from two trillion a year to three trillion

480
00:24:51,320 --> 00:24:53,560
Speaker 1: or four trillion or whatever it is. Now, what do

481
00:24:53,600 --> 00:24:55,960
Speaker 1: they do Well, they need more credit cards, so they

482
00:24:56,000 --> 00:24:59,640
Speaker 1: need to issue more treasuries. But there's not enough buyers

483
00:24:59,640 --> 00:25:01,959
Speaker 1: for the tr treasuries. And what does that do. Well,

484
00:25:02,000 --> 00:25:04,679
Speaker 1: If there's not enough buyers, then that pushes the price up.

485
00:25:04,760 --> 00:25:06,480
Speaker 1: The price has to continue to go up to attract

486
00:25:06,560 --> 00:25:11,760
Speaker 1: more buyers, and if that happens, the US goes into

487
00:25:11,800 --> 00:25:15,600
Speaker 1: a debt spiral. Now, as I said, I think in

488
00:25:15,640 --> 00:25:17,560
Speaker 1: the last segment, I said that the market is already

489
00:25:17,600 --> 00:25:21,399
Speaker 1: telling us this yield curve resteepening uninverting, is already telling

490
00:25:21,480 --> 00:25:24,040
Speaker 1: us that the market doesn't believe the Fed's narrative anymore.

491
00:25:24,640 --> 00:25:26,960
Speaker 1: They the market is saying, we don't believe the FED

492
00:25:27,000 --> 00:25:29,560
Speaker 1: can get inflation back down, and so the FED is

493
00:25:29,640 --> 00:25:33,840
Speaker 1: already discredited. If this continues to get worse, they're only

494
00:25:33,880 --> 00:25:36,840
Speaker 1: going to be discredited even more. Now, this isn't the

495
00:25:36,840 --> 00:25:38,640
Speaker 1: first time we've seen this, all right, So we've seen

496
00:25:38,680 --> 00:25:40,680
Speaker 1: this many times since about twenty fourteen. Like I said,

497
00:25:40,720 --> 00:25:41,719
Speaker 1: when things really changed.

498
00:25:42,160 --> 00:25:43,960
Speaker 2: So since since since.

499
00:25:43,800 --> 00:25:45,560
Speaker 1: This has happened, we've seen this cycle play out I

500
00:25:45,600 --> 00:25:50,040
Speaker 1: think five times. In twenty fourteen, the US dollar was

501
00:25:50,080 --> 00:25:54,440
Speaker 1: weakened at something called the Shanghai Accords, So the dollar

502
00:25:54,440 --> 00:25:57,359
Speaker 1: had gotten too strong. It created all this treasury dysfunction,

503
00:25:57,600 --> 00:26:00,879
Speaker 1: and so they had this meeting and they agreed that

504
00:26:00,920 --> 00:26:03,200
Speaker 1: the doll or the usl would be weakened in order

505
00:26:03,240 --> 00:26:09,480
Speaker 1: for this degree resolved, and they did. In twenty eighteen

506
00:26:09,560 --> 00:26:12,399
Speaker 1: twenty eight nineteen, the FED was raising rates. Drone Palate

507
00:26:12,440 --> 00:26:14,639
Speaker 1: just come into office. He was full of fire and

508
00:26:14,720 --> 00:26:16,560
Speaker 1: vinegar and he was going to fix things. He started

509
00:26:16,640 --> 00:26:19,920
Speaker 1: raising rates and caused a lot of treasury market dysfunction.

510
00:26:20,000 --> 00:26:22,560
Speaker 1: The FED had to pause rates, and then the FED

511
00:26:22,640 --> 00:26:26,000
Speaker 1: was forced into quantitata easy and they didn't call it

512
00:26:26,040 --> 00:26:29,000
Speaker 1: that to address the repol rate spike in September of

513
00:26:29,000 --> 00:26:30,800
Speaker 1: twenty nineteen, A lot of people don't know this, but

514
00:26:30,840 --> 00:26:34,040
Speaker 1: the market had actually the yield curve had actually inverted

515
00:26:34,040 --> 00:26:36,480
Speaker 1: and the market actually locked up in September twenty nineteen.

516
00:26:36,680 --> 00:26:39,040
Speaker 1: So while most people think that the entire market was

517
00:26:39,080 --> 00:26:41,280
Speaker 1: crashed because of the pandemic, it actually had started in

518
00:26:41,280 --> 00:26:43,679
Speaker 1: September of twenty nineteen. Then we saw it again in

519
00:26:43,720 --> 00:26:48,600
Speaker 1: March of twenty twenty, the Fed pause, they're not QE

520
00:26:48,600 --> 00:26:51,960
Speaker 1: into the first quarter of twenty twenty and then they

521
00:26:52,040 --> 00:26:55,600
Speaker 1: watched the market crash into the pandemic, and then they

522
00:26:55,680 --> 00:26:59,720
Speaker 1: jumped in. Did anything that was net necessary, super quantity

523
00:26:59,720 --> 00:27:02,480
Speaker 1: of easy and if you will. Then September twenty twenty two,

524
00:27:02,480 --> 00:27:05,200
Speaker 1: the Fed started to tighten. The Treasury started to run

525
00:27:05,200 --> 00:27:07,879
Speaker 1: down its treasury this TGA account as we call it,

526
00:27:07,880 --> 00:27:10,399
Speaker 1: the Treasury General Account, and this was in response to

527
00:27:10,440 --> 00:27:13,520
Speaker 1: the UK guilt crisis. We covered that back then. So

528
00:27:13,800 --> 00:27:17,760
Speaker 1: each time this market start starts to get dysfunctional, they

529
00:27:17,840 --> 00:27:20,119
Speaker 1: have to move in. And we can see right now

530
00:27:20,200 --> 00:27:23,840
Speaker 1: there's an index called the Move Index MOVE and it

531
00:27:23,920 --> 00:27:26,720
Speaker 1: shows the volatility in the bond market, and we can

532
00:27:26,720 --> 00:27:31,000
Speaker 1: see that this dysfunction is nearing another all time high.

533
00:27:31,400 --> 00:27:34,560
Speaker 1: We can see that this tells us that there's problems.

534
00:27:34,240 --> 00:27:35,680
Speaker 2: Coming around the horizon.

535
00:27:36,359 --> 00:27:39,359
Speaker 1: So hang on to your hats, be prepared to protect

536
00:27:39,359 --> 00:27:41,480
Speaker 1: yourself and there's a lot more to come. If you're

537
00:27:41,480 --> 00:27:43,160
Speaker 1: just tuning in you listening to the Mark Mass Show,

538
00:27:43,520 --> 00:27:45,880
Speaker 1: I'm talking through some of the latest breaking news headlines

539
00:27:45,920 --> 00:27:48,280
Speaker 1: of this week. Looking through the lens of politics, finance,

540
00:27:48,359 --> 00:27:50,320
Speaker 1: and technology. I got a lot more to cover when

541
00:27:50,359 --> 00:27:51,800
Speaker 1: I come back after this very short break.

542
00:27:51,800 --> 00:27:54,440
Speaker 2: Don't go away, I'll bear back, all.

543
00:27:54,400 --> 00:27:56,080
Speaker 1: Right, Welcome back. If you're just tune in, you're listening

544
00:27:56,080 --> 00:27:58,199
Speaker 1: to the Mark Mass Show. We're running through some of

545
00:27:58,200 --> 00:28:01,359
Speaker 1: the latest breaking news headlines, so you know what the

546
00:28:01,400 --> 00:28:04,000
Speaker 1: heck is going on now. One of the big themes,

547
00:28:04,680 --> 00:28:07,960
Speaker 1: unfortunately for this week and really for the last year,

548
00:28:08,400 --> 00:28:11,960
Speaker 1: is war. Now, there's all types of wars, and I'm

549
00:28:12,000 --> 00:28:14,320
Speaker 1: not talking about a physical, a hot war. What I'm

550
00:28:14,359 --> 00:28:15,840
Speaker 1: talking about right now.

551
00:28:15,680 --> 00:28:17,199
Speaker 2: Is trade wars.

552
00:28:17,520 --> 00:28:19,600
Speaker 1: You know, I've been saying for a long time that

553
00:28:19,680 --> 00:28:21,880
Speaker 1: I think the World War III is really a war

554
00:28:21,920 --> 00:28:27,600
Speaker 1: of information and money. I'm still hoping that's true. Unfortunately,

555
00:28:28,280 --> 00:28:31,359
Speaker 1: it's looking like it might be going more towards the

556
00:28:31,400 --> 00:28:31,760
Speaker 1: hot war.

557
00:28:31,880 --> 00:28:32,680
Speaker 2: Let's certainly hope not.

558
00:28:32,800 --> 00:28:35,479
Speaker 1: But if I'm looking at the financial war, we can

559
00:28:35,520 --> 00:28:38,000
Speaker 1: see things really seem to get kicked off into sort

560
00:28:38,000 --> 00:28:40,880
Speaker 1: of high gear. Maybe when Trump was in and we

561
00:28:41,000 --> 00:28:43,600
Speaker 1: sort of had these tariffs started to happen with China,

562
00:28:44,080 --> 00:28:47,280
Speaker 1: and that has just continued on a lot of it

563
00:28:47,280 --> 00:28:50,880
Speaker 1: has been seemingly a shift towards trying to kind of

564
00:28:50,960 --> 00:28:54,320
Speaker 1: keep China in their place, trying to keep them from

565
00:28:54,400 --> 00:28:57,320
Speaker 1: rising up and challenging the United States, which is interesting

566
00:28:57,400 --> 00:29:00,600
Speaker 1: because you might also argue there's people in the United

567
00:29:00,600 --> 00:29:05,880
Speaker 1: States crime family, you know, like that, that want to

568
00:29:05,880 --> 00:29:09,200
Speaker 1: see China rise up. But that's because there's lots of

569
00:29:09,240 --> 00:29:12,160
Speaker 1: warring factions in the United States and there's certainly some

570
00:29:12,240 --> 00:29:15,600
Speaker 1: specifically the military, that sees China as a threat. Now

571
00:29:15,760 --> 00:29:18,280
Speaker 1: I've covered this in the past. I made a whole

572
00:29:18,320 --> 00:29:20,640
Speaker 1: YouTube video about it as well my main YouTube channel,

573
00:29:20,680 --> 00:29:24,920
Speaker 1: just Mark on Mark Moss, talking about how basically the

574
00:29:25,000 --> 00:29:28,400
Speaker 1: United States sent China back to the dark ages and

575
00:29:28,440 --> 00:29:31,400
Speaker 1: what do I mean by that. Well, the Biden administration

576
00:29:31,480 --> 00:29:35,440
Speaker 1: had continued to escalate things and had cut China off

577
00:29:35,680 --> 00:29:39,440
Speaker 1: from receiving microchips, specifically level two and level three. There's

578
00:29:39,760 --> 00:29:43,840
Speaker 1: basically three levels of microchips. Level one being just like

579
00:29:43,880 --> 00:29:46,400
Speaker 1: the supermost basic that go in like an old school

580
00:29:46,560 --> 00:29:49,560
Speaker 1: alarm clock, and then level two level three being the

581
00:29:49,680 --> 00:29:52,959
Speaker 1: very most advanced chips that you would need for AI

582
00:29:53,560 --> 00:29:57,000
Speaker 1: iPhones things like that. And so the Biden administration had

583
00:29:57,040 --> 00:30:00,440
Speaker 1: decided to basically take those more advanced chips away from

584
00:30:00,520 --> 00:30:03,200
Speaker 1: China and not just the chips, but everything that they

585
00:30:03,280 --> 00:30:09,080
Speaker 1: need around manufacturing and servicing around those chips, and so

586
00:30:09,240 --> 00:30:12,440
Speaker 1: there were sanctions placed on all the manufacturers, even other

587
00:30:12,560 --> 00:30:15,959
Speaker 1: nations that supply those parts of machines to China. And

588
00:30:16,000 --> 00:30:17,880
Speaker 1: so I kind of made the case that this literally

589
00:30:17,920 --> 00:30:22,960
Speaker 1: sends them back to the dark ages because without advanced microchips,

590
00:30:24,080 --> 00:30:26,840
Speaker 1: you basically don't have technology. I mean again, you don't

591
00:30:26,880 --> 00:30:29,800
Speaker 1: have iPhones, like, you don't have AI, you don't have

592
00:30:29,800 --> 00:30:31,880
Speaker 1: any of these things. And so this was going to.

593
00:30:31,920 --> 00:30:33,520
Speaker 2: Be a very very big deal.

594
00:30:33,600 --> 00:30:37,840
Speaker 1: Now, of course, China's not happy about that. They've retaliated.

595
00:30:37,880 --> 00:30:39,920
Speaker 1: I've covered this I think on my main YouTube channel

596
00:30:39,920 --> 00:30:43,120
Speaker 1: as well, where they said, okay, aha, then we'll ban

597
00:30:43,360 --> 00:30:46,400
Speaker 1: exports to you, and so the then China banned the

598
00:30:46,480 --> 00:30:49,520
Speaker 1: United States from getting a couple key commodities that we

599
00:30:49,560 --> 00:30:53,680
Speaker 1: really need gallium and geranium. Those are commodities that are

600
00:30:53,800 --> 00:30:58,080
Speaker 1: used for in the EV space, for renewable energy things

601
00:30:58,080 --> 00:30:59,760
Speaker 1: like that, and so of course the United States has

602
00:30:59,800 --> 00:31:04,880
Speaker 1: this policy to transition everything into renewables, unreliables, if you will,

603
00:31:05,080 --> 00:31:08,560
Speaker 1: and it can be very difficult without those exports. China

604
00:31:08,600 --> 00:31:12,800
Speaker 1: said that why would we continue to export our finite

605
00:31:12,880 --> 00:31:16,520
Speaker 1: materials to a nation that we're not friendly with, right,

606
00:31:16,560 --> 00:31:20,720
Speaker 1: and so they're escalating this war, and it took another

607
00:31:20,800 --> 00:31:23,480
Speaker 1: turn for the worst, well the worst if you're China,

608
00:31:23,520 --> 00:31:26,760
Speaker 1: I suppose. And basically we saw this week the US

609
00:31:26,800 --> 00:31:31,320
Speaker 1: Commerce Department set new rules on semiconductor exports, limiting the

610
00:31:31,360 --> 00:31:35,320
Speaker 1: ability of American chip making companies like Nvidia and Intel

611
00:31:35,640 --> 00:31:39,480
Speaker 1: to sell AI chips to China. So basically what we're

612
00:31:39,480 --> 00:31:42,360
Speaker 1: seeing as the Biden administration is continuing to tighten the

613
00:31:42,400 --> 00:31:46,640
Speaker 1: restrictions on China's ability to buy these advanced semiconductors, and

614
00:31:46,800 --> 00:31:50,920
Speaker 1: this of course fuels the friction with US businesses that

615
00:31:51,120 --> 00:31:55,000
Speaker 1: sell to China, to the Chinese market. So if you're

616
00:31:55,080 --> 00:31:58,800
Speaker 1: in Vidia and if you're in Intel, and now you

617
00:31:58,880 --> 00:32:01,080
Speaker 1: can't sell your to China.

618
00:32:00,840 --> 00:32:04,400
Speaker 2: Anymore, that's a pretty big deal. That's a pretty big deal.

619
00:32:04,440 --> 00:32:06,800
Speaker 1: Now, the Commerce Department said Tuesday that it would significantly

620
00:32:06,840 --> 00:32:10,640
Speaker 1: constrict exports of artificial intelligence chips, making it tougher for

621
00:32:10,800 --> 00:32:15,120
Speaker 1: US companies to sell their chips or to introduce new

622
00:32:15,200 --> 00:32:17,200
Speaker 1: chips to circumvent the rules.

623
00:32:17,240 --> 00:32:18,240
Speaker 2: And so that's part of this.

624
00:32:18,360 --> 00:32:22,280
Speaker 1: So capitalism for what it is, everyone's trying to figure

625
00:32:22,280 --> 00:32:24,280
Speaker 1: out ways to get around this instead of trying to

626
00:32:24,320 --> 00:32:27,440
Speaker 1: tighten that noose, circumvent the rules to do that. Now,

627
00:32:27,480 --> 00:32:31,320
Speaker 1: the goal, according to Commerce Secretary Gina Ramando, is to

628
00:32:31,480 --> 00:32:35,640
Speaker 1: limit China's access to advanced semiconductors that could fuel breakthroughs

629
00:32:35,920 --> 00:32:41,640
Speaker 1: in artificial intelligence and sophisticated computers. Of course they are

630
00:32:41,800 --> 00:32:44,200
Speaker 1: they want to keep them in the dark ages now,

631
00:32:44,200 --> 00:32:48,800
Speaker 1: these chips, the US doesn't want China to have them,

632
00:32:49,320 --> 00:32:52,720
Speaker 1: and at the same time, they're critical for China for

633
00:32:53,160 --> 00:32:55,680
Speaker 1: the Chinese, right obviously, that's why they're trying to cut

634
00:32:55,680 --> 00:32:58,920
Speaker 1: them off. They're not just critical for the Chinese, they're

635
00:32:59,040 --> 00:33:03,800
Speaker 1: critical for Chinese these military applications, she said, And this

636
00:33:03,880 --> 00:33:06,200
Speaker 1: is a nod to the concerns that the US could

637
00:33:06,200 --> 00:33:10,840
Speaker 1: fall behind China in key defense technologies. Now, the updated

638
00:33:10,880 --> 00:33:14,040
Speaker 1: rules significantly expand the US government's authority to determine what

639
00:33:14,160 --> 00:33:17,800
Speaker 1: products US companies can and can't sell in the name

640
00:33:17,840 --> 00:33:21,400
Speaker 1: of national security. Of course, everything's a matter of national

641
00:33:21,440 --> 00:33:24,720
Speaker 1: security today everything and of course in times of war

642
00:33:25,480 --> 00:33:29,720
Speaker 1: then we just continue to expand those rules of national security,

643
00:33:31,280 --> 00:33:33,560
Speaker 1: and pretty much everything's a war today.

644
00:33:33,560 --> 00:33:35,040
Speaker 2: As a matter of fact, I was thinking about this

645
00:33:35,080 --> 00:33:35,600
Speaker 2: the other day.

646
00:33:37,080 --> 00:33:41,880
Speaker 1: Pretty much everything the government declares as a war gets worse,

647
00:33:42,200 --> 00:33:46,120
Speaker 1: not better. So I was just thinking that, like, since

648
00:33:46,880 --> 00:33:52,960
Speaker 1: nineteen seventy one, I believe the DEA, the Drug Enforcement Agency,

649
00:33:53,080 --> 00:33:57,120
Speaker 1: was formed, and since then the US has spent trillions

650
00:33:57,160 --> 00:34:00,520
Speaker 1: of dollars fighting the war on drugs. But yet drugs

651
00:34:00,520 --> 00:34:03,680
Speaker 1: are bigger, and they're a bigger problem today than they

652
00:34:03,720 --> 00:34:08,080
Speaker 1: ever have been. So when they put the war on drugs,

653
00:34:08,120 --> 00:34:09,919
Speaker 1: drugs weren't really a problem. And as a matter of fact,

654
00:34:09,920 --> 00:34:11,000
Speaker 1: most drugs were just legal.

655
00:34:10,880 --> 00:34:11,479
Speaker 2: In the United States.

656
00:34:11,560 --> 00:34:13,680
Speaker 1: I think cocaine and ecstasy and things like that that

657
00:34:13,760 --> 00:34:16,920
Speaker 1: were fine. There wasn't a big problem. Now, after making

658
00:34:16,960 --> 00:34:19,560
Speaker 1: it a war and spending trillions of dollars, drugs are

659
00:34:19,560 --> 00:34:21,160
Speaker 1: the biggest problem. As a matter of fact, it's the

660
00:34:21,280 --> 00:34:23,719
Speaker 1: number one cause of death for eighteen to thirty five

661
00:34:23,760 --> 00:34:27,360
Speaker 1: year olds. We've emboldened the drug cartels down in Mexico.

662
00:34:27,680 --> 00:34:31,320
Speaker 1: Now they're a billion dollars potentially trillion dollar businesses because

663
00:34:31,360 --> 00:34:31,920
Speaker 1: we fought.

664
00:34:31,760 --> 00:34:33,439
Speaker 2: A war on drugs, just making it worse.

665
00:34:33,680 --> 00:34:36,840
Speaker 1: We have a war on obesity, but yet obesity is

666
00:34:36,880 --> 00:34:39,479
Speaker 1: worse than it's ever been. It's like the main cause

667
00:34:39,520 --> 00:34:42,040
Speaker 1: of death in the United States. We have a war

668
00:34:42,120 --> 00:34:45,080
Speaker 1: on poverty. Weet today we have more poor people than.

669
00:34:44,960 --> 00:34:48,160
Speaker 2: Any time in history. Well, I don't want to say

670
00:34:48,200 --> 00:34:49,560
Speaker 2: any time in history. That's maybe a little bit of

671
00:34:49,560 --> 00:34:50,759
Speaker 2: an exaggeration.

672
00:34:50,800 --> 00:34:54,560
Speaker 1: But there's a reason why we have people striking all

673
00:34:54,600 --> 00:34:59,440
Speaker 1: throughout the United States. I reported earlier that home prices

674
00:34:59,440 --> 00:35:02,680
Speaker 1: are up now fifty percent, not home prices, but the

675
00:35:02,840 --> 00:35:04,399
Speaker 1: but the home payments are at fifty percent in last

676
00:35:04,400 --> 00:35:05,880
Speaker 1: three years. But waits haven't kept up with it. So

677
00:35:06,160 --> 00:35:09,719
Speaker 1: this war on poverty isn't really helping. And so we

678
00:35:09,760 --> 00:35:13,440
Speaker 1: have a war on terrorism. Right, they've signaled this war

679
00:35:13,480 --> 00:35:16,920
Speaker 1: on terrorism spent. I don't even know if we added

680
00:35:17,000 --> 00:35:20,920
Speaker 1: up probably twenty thirty trillion dollars on terrorism. And yet

681
00:35:21,000 --> 00:35:23,720
Speaker 1: terrorism is a bigger, worse problem today than it was before.

682
00:35:24,000 --> 00:35:26,920
Speaker 1: And so every war that the government declares just seems

683
00:35:26,960 --> 00:35:28,839
Speaker 1: to get bigger, just seems to get worse. And now

684
00:35:29,040 --> 00:35:32,920
Speaker 1: here we have a war with China, and if history

685
00:35:33,000 --> 00:35:36,440
Speaker 1: is our guide, unfortunately it's probably only gonna get bigger

686
00:35:36,560 --> 00:35:38,680
Speaker 1: and worse, which of course it does. Right, that's what

687
00:35:38,719 --> 00:35:42,279
Speaker 1: happens with wars. That happened with the fights. You get escalation, right,

688
00:35:42,520 --> 00:35:45,560
Speaker 1: I call you a name. You threaten me, I push you,

689
00:35:45,560 --> 00:35:47,880
Speaker 1: You punch me. I get a knife, you get a gun,

690
00:35:48,160 --> 00:35:52,520
Speaker 1: and we just escalate from there until cooler heads prevail,

691
00:35:53,160 --> 00:35:57,080
Speaker 1: until people are able to sit down think about this

692
00:35:57,200 --> 00:36:00,600
Speaker 1: clearly and come up with some sort of residence. Now,

693
00:36:00,800 --> 00:36:03,720
Speaker 1: in a situation like this where the US is afraid

694
00:36:03,800 --> 00:36:07,279
Speaker 1: that China will overtake us, that's a legitimate concern, something

695
00:36:07,320 --> 00:36:09,920
Speaker 1: they probably should have thought about twenty years ago before

696
00:36:09,920 --> 00:36:12,960
Speaker 1: they shipped all our manufacturing off to China. Today it's

697
00:36:13,000 --> 00:36:15,759
Speaker 1: sort of like what we say, closing the barn door

698
00:36:15,800 --> 00:36:17,120
Speaker 1: after the cows were already.

699
00:36:16,880 --> 00:36:17,720
Speaker 2: Gone, so to speak.

700
00:36:18,440 --> 00:36:21,319
Speaker 1: And so now it's a much bigger problem that I'm

701
00:36:21,320 --> 00:36:24,279
Speaker 1: not really sure where this goes, but I can tell

702
00:36:24,280 --> 00:36:26,680
Speaker 1: you it's going to be a rocky road, not just

703
00:36:26,800 --> 00:36:29,880
Speaker 1: for the relationship between China, what potentially China may do

704
00:36:30,040 --> 00:36:33,799
Speaker 1: with Taiwan, which I was looking today before the show

705
00:36:33,840 --> 00:36:35,440
Speaker 1: to see if I could find like some sort of

706
00:36:35,480 --> 00:36:38,520
Speaker 1: betting markets. So typically there's betting markets where you can

707
00:36:38,600 --> 00:36:40,520
Speaker 1: like place wagers on who will be the next president

708
00:36:40,560 --> 00:36:41,080
Speaker 1: things like that.

709
00:36:41,960 --> 00:36:42,680
Speaker 2: I wasn't able to.

710
00:36:42,680 --> 00:36:45,240
Speaker 1: Find one, but if I had to guess, I'm guessing

711
00:36:45,320 --> 00:36:47,839
Speaker 1: there's at least a seventy five percent chance that China

712
00:36:47,880 --> 00:36:48,760
Speaker 1: goes after Taiwan.

713
00:36:49,160 --> 00:36:50,520
Speaker 2: There's not a lot we can do with it.

714
00:36:51,040 --> 00:36:55,320
Speaker 1: So it certainly continues to add towards that. It continues

715
00:36:55,360 --> 00:36:59,200
Speaker 1: to be a drag on US businesses like in video

716
00:36:59,320 --> 00:37:01,520
Speaker 1: and Intel, and so we'll keep you up to date

717
00:37:01,560 --> 00:37:03,840
Speaker 1: on what's going on with this. If you're just tuning in,

718
00:37:03,960 --> 00:37:06,960
Speaker 1: you've been listening to The Mark Ma Show talking about

719
00:37:07,160 --> 00:37:09,640
Speaker 1: the latest breaking news headlines this week as we chart

720
00:37:09,680 --> 00:37:11,960
Speaker 1: the decentralized revolution. That's what I got.

721
00:37:12,000 --> 00:37:13,640
Speaker 2: Thanks so much for listening. Until next time,