WEBVTT - Banking Crisis: Unveiling the Centralization of the Banking System 0:00:00.360 --> 0:00:02.880 Hello, and welcome to another episode of The Mark Moss Show, 0:00:02.920 --> 0:00:06.360 of course, where we're talking about the decentralized revolution, the 0:00:06.400 --> 0:00:08.160 way the world's changing, of course, as we look at 0:00:08.200 --> 0:00:10.440 it through the lens of politics, finance, and technology, and 0:00:10.480 --> 0:00:14.440 you know, trying to change the way you think about money, 0:00:14.440 --> 0:00:16.439 trying to change the way you think about the world. 0:00:16.440 --> 0:00:18.040 So I try to bring you some education to kind 0:00:18.040 --> 0:00:20.720 of help change the way you see things and think 0:00:20.720 --> 0:00:23.160 about things. Of course, some of the latest breaking news 0:00:23.200 --> 0:00:25.360 headlines you can stay on top of the world as 0:00:25.360 --> 0:00:28.400 it's changing, and some interesting guests. But right now I 0:00:28.440 --> 0:00:31.040 want to talk about what has been going on this week, 0:00:31.120 --> 0:00:35.320 because it has been wild. There's been some big stories 0:00:35.360 --> 0:00:37.360 that are really cementing my. 0:00:37.440 --> 0:00:39.440 Thesis of this decentralized revolution. 0:00:39.840 --> 0:00:41.680 A lot of times people ask me, Mark, when is 0:00:41.720 --> 0:00:44.280 the pendulum going to swing back? When all I see 0:00:44.320 --> 0:00:48.720 is still centralization, I don't see your thesis playing out. Well, one, 0:00:48.920 --> 0:00:51.680 you're zoom didn't wait too close, but two, holy cow, 0:00:51.760 --> 0:00:54.480 it's happening right now. And so this week has been 0:00:54.480 --> 0:00:58.880 big news, of course, dominated by the banking crisis in 0:00:58.920 --> 0:01:00.600 the United States, and it's been going on for a 0:01:00.600 --> 0:01:03.400 couple of weeks. And it is really picking up steam. 0:01:03.640 --> 0:01:06.479 As a matter of fact, we just saw another bank 0:01:06.520 --> 0:01:09.760 go down this week, and that is First Republic Bank. 0:01:10.400 --> 0:01:14.240 Now it's important to understand what is going on here 0:01:14.400 --> 0:01:18.440 for a couple of reasons. It's not just like, well, 0:01:18.480 --> 0:01:20.720 another bank go down. A lot of people still have 0:01:20.840 --> 0:01:26.320 sort of this PTSD, if you will, This PTSD from 0:01:28.480 --> 0:01:31.399 the two thousand and eight banking crisis that led to 0:01:31.440 --> 0:01:35.080 the Great Financial Crisis. And during that time in two 0:01:35.120 --> 0:01:38.560 thousand and eight, we had a lot of banks fail obviously, right, 0:01:39.080 --> 0:01:44.560 but can you believe that since then we've seen an 0:01:44.600 --> 0:01:48.520 even worse banking crisis. Now, what is worse, well, not 0:01:48.640 --> 0:01:51.840 worse in the terms of numbers of banks, but in 0:01:51.920 --> 0:01:55.720 the size of the banks. The largest banking failure in 0:01:55.960 --> 0:01:58.680 US history happened in two thousand and eight. 0:01:58.800 --> 0:02:00.200 That was Washington Mutual. 0:02:00.120 --> 0:02:06.440 Bank and it had three hundred billion in assets. First 0:02:06.480 --> 0:02:10.840 Republic Bank is the second largest bank failure in history. 0:02:11.400 --> 0:02:13.640 It had two hundred and twenty nine billion. But we 0:02:13.680 --> 0:02:16.640 also saw the failure of Silicon Valley Bank. We also 0:02:16.680 --> 0:02:20.000 saw the failure of Signature Bank. We also saw the 0:02:20.080 --> 0:02:24.560 failure of Silvergate Bank before that, But Silicon Valley Bank 0:02:24.560 --> 0:02:28.720 and Signature Bank, where the third and fourth largest banking 0:02:28.760 --> 0:02:34.800 crisis collapses in US history. So collectively, the three banks 0:02:34.840 --> 0:02:36.880 that have gone down in just the last couple of 0:02:36.919 --> 0:02:40.680 weeks dwarf what happened, I don't want to say dwarf, 0:02:40.880 --> 0:02:45.760 but are bigger than what happened in two thousand and eight. 0:02:46.160 --> 0:02:48.240 So while a lot of people say, well, we're not 0:02:48.240 --> 0:02:50.680 going to see another banking crisis, what we already are 0:02:51.480 --> 0:02:53.400 The banks that have collapped in just the last three 0:02:53.520 --> 0:02:57.040 or four weeks are already worse than what happened in 0:02:57.120 --> 0:03:00.239 two thousand and eight. So we're there now. I don't 0:03:00.240 --> 0:03:01.680 want to go through all the mechanics of that. I'm 0:03:01.680 --> 0:03:04.840 sure you've probably already seen enough of that in a 0:03:04.880 --> 0:03:07.399 number of other news sources. But what happened I think 0:03:07.480 --> 0:03:10.520 is more important here. But even more important than that, 0:03:10.639 --> 0:03:11.600 is what does this mean? 0:03:11.760 --> 0:03:13.360 Where? Where are we going with this? 0:03:13.800 --> 0:03:17.320 Well? You know one thing that I talk about quite 0:03:17.360 --> 0:03:20.760 often here is I talk about central bank digital currencies, 0:03:20.800 --> 0:03:25.320 which is of course more centralization. It's the central banks 0:03:25.440 --> 0:03:28.960 taking over control over the money. And so rather than 0:03:29.000 --> 0:03:32.480 having a decentralized banking system where we have all these 0:03:32.520 --> 0:03:35.560 regional banks, local banks credit unions, et cetera that are 0:03:35.560 --> 0:03:39.760 making local regional decisions knowing me personally and knowing what 0:03:39.960 --> 0:03:42.520 I need in my local area. Personally, we're moving to 0:03:42.560 --> 0:03:45.920 an area all we have is these big banks, and 0:03:46.000 --> 0:03:49.560 these big banks basically take over everything, and then instead 0:03:49.560 --> 0:03:51.240 of a local banker that knows me and what my 0:03:51.280 --> 0:03:53.160 local area needs, have to deal with some banker in 0:03:53.200 --> 0:03:55.840 New York who doesn't know me and doesn't know what 0:03:55.960 --> 0:03:57.880 I need. And that's sort of where we're going, and 0:03:57.920 --> 0:04:00.680 we're seeing it happening in rapid time. As a matter 0:04:00.720 --> 0:04:07.080 of fact, what happened with First Republic Bank, Well, it's 0:04:07.240 --> 0:04:10.200 good for the depositors in the short run. What do 0:04:10.240 --> 0:04:12.520 I mean, Well, the depositors didn't lose any money. So 0:04:12.800 --> 0:04:16.160 here we are again finding FDI and C insurance only 0:04:16.160 --> 0:04:19.240 covers up to two hundred fifty thousand dollars. However, lots 0:04:19.240 --> 0:04:23.680 of depositors had funds well over two hund fifty thousand dollars. 0:04:23.920 --> 0:04:26.200 So the good news is for the depositors they didn't 0:04:26.240 --> 0:04:29.640 lose any money, that all got covered. The bad news 0:04:29.720 --> 0:04:32.400 is is that we're continuing to see this centralization of 0:04:32.400 --> 0:04:34.360 the banks. As a matter of fact, thirty years ago 0:04:35.000 --> 0:04:38.520 in the United States, we had almost eleven thousand banks. 0:04:39.160 --> 0:04:44.000 Today we have about four thousand banks, so we have 0:04:44.040 --> 0:04:46.120 about thirty five percent of the banks that we had 0:04:46.120 --> 0:04:49.600 thirty years ago. So we're seeing this massive centralization. Now, 0:04:49.920 --> 0:04:51.839 what sort of centralization? Who dok it over? Well, of 0:04:51.839 --> 0:04:52.320 course it. 0:04:52.279 --> 0:04:53.760 Was JP Morgan. 0:04:54.920 --> 0:04:59.880 JP Morgan seems to always be there to help o 0:05:00.200 --> 0:05:02.000 whatever they need be. As a matter of fact, JP 0:05:02.080 --> 0:05:05.560 Morgan has a long history of this. We saw them 0:05:05.839 --> 0:05:08.600 way back in the day helping out. As a matter 0:05:08.640 --> 0:05:12.560 of fact, before we had the Federal Reserve, JP Morgan 0:05:12.640 --> 0:05:14.800 was there in the Panic of nineteen oh seven in 0:05:14.800 --> 0:05:18.839 the banking crisis, JP Morgan stepped up to save the day. 0:05:20.080 --> 0:05:23.520 Then JP Morgan was the one that led to the 0:05:23.640 --> 0:05:28.840 creation of the Federal Reserve. And now JP Morgan is 0:05:28.920 --> 0:05:31.440 still there saving the day. Now, don't think that there's 0:05:31.480 --> 0:05:34.400 some hero here. As Jamie Diamond, the CEO of JP 0:05:34.520 --> 0:05:38.160 Morgan said, quote, our government invited us to step up, 0:05:38.880 --> 0:05:41.680 so we did end quote. That's what Jamie Diamond said. 0:05:41.760 --> 0:05:46.400 So thank you, Jamie Diamond for thanklessly for serving the 0:05:46.440 --> 0:05:50.360 American people in a way to save the day. Never 0:05:50.400 --> 0:05:54.120 mind the fact that they generated a one time gain 0:05:54.640 --> 0:05:56.680 of two point six billion dollars. 0:05:56.760 --> 0:05:59.120 Yes, with a B billion, they. 0:05:58.960 --> 0:06:05.640 Expect an ongoing five hundred million dollars of profit per 0:06:05.760 --> 0:06:10.760 year now in doing so. The reason why they stepped 0:06:10.839 --> 0:06:14.200 up is because the government took over all the losses 0:06:14.240 --> 0:06:17.800 of the banks and gave them all the profits two 0:06:17.839 --> 0:06:20.760 point six billion dollars plus five hundred million dollars per 0:06:20.800 --> 0:06:27.320 year moving forward, the FDIC insurance covered thirteen billion dollars 0:06:27.320 --> 0:06:31.120 in losses. This is another example of socializing the losses 0:06:31.160 --> 0:06:34.000 and privatizing the gains. We all get to pay for 0:06:34.040 --> 0:06:36.640 the losses and Jamie Diamond gets to keep all of 0:06:36.680 --> 0:06:41.640 the profits. And the FDIC insurance also covered fifty billion 0:06:41.680 --> 0:06:47.480 dollars in financing for them. So we're seeing the centralization 0:06:47.680 --> 0:06:51.040 of the banking system, the consolidation of the banking system, 0:06:51.400 --> 0:06:55.400 and it's it's doing a couple things. One, in the 0:06:55.440 --> 0:06:59.040 short term, it's helping the Federal Reserve to continue to 0:06:59.160 --> 0:07:01.880 tighten the screws on economy, to continue quantitative tightening where 0:07:01.880 --> 0:07:03.920 they're raising interest rates at the fastest rate in history. 0:07:04.240 --> 0:07:07.120 And of course it's causing the banks to collapse, but 0:07:08.240 --> 0:07:11.440 it's pushing them right into the lapse of the big 0:07:11.480 --> 0:07:16.560 banks like JP Morgan. Now, if you don't know, the 0:07:16.600 --> 0:07:20.160 Central Bank, the Federal Reserve is not federal and they 0:07:20.160 --> 0:07:22.480 have no reserves. They're not federal, they're not part of 0:07:22.480 --> 0:07:26.520 the government. They're made up of member banks. And who's 0:07:26.520 --> 0:07:29.240 the most important member bank. Oh, that would be the 0:07:29.280 --> 0:07:29.880 New York. 0:07:29.760 --> 0:07:31.480 Bank, and that would be Jamie Diamond. 0:07:31.520 --> 0:07:35.160 Of course, of course it's Jamie Diamond who controls app 0:07:35.920 --> 0:07:39.000 And what we're seeing through this consolidation is basically all 0:07:39.040 --> 0:07:40.800 of the banks that we have, all the smaller banks 0:07:40.840 --> 0:07:45.400 are consolidating into the big four, which are City Group, City, 0:07:45.680 --> 0:07:50.080 JP Morgan, Chase, Bank of America, and Wells Fargo. And 0:07:50.120 --> 0:07:54.240 they're becoming these two big to fail institutions. We're seeing 0:07:54.280 --> 0:07:58.320 the end of capitalism as we know it. And really 0:07:58.360 --> 0:08:02.080 what we're seeing is the nationalization of the banking sector. 0:08:02.880 --> 0:08:06.600 And it's not over. We see this week more banks 0:08:06.600 --> 0:08:10.600 are crashing. Pack West Bank in California, it's stock crashed 0:08:10.760 --> 0:08:14.200 sixty percent. As a matter of fact, there's an index 0:08:14.440 --> 0:08:17.280 you can look at, the kr It's a bank index 0:08:17.320 --> 0:08:20.400 of regional banks, and it is plummeting like a rock. 0:08:21.840 --> 0:08:24.840 And so all of these small regional banks are collapsing, 0:08:25.360 --> 0:08:28.400 and what the Fed do? They raise their rates even more, 0:08:28.600 --> 0:08:32.640 so what should you expect? Unfortunately, more banking collapses. What else? 0:08:33.200 --> 0:08:37.760 More socialization of losses and privatizing the gains, more banking consolidation. 0:08:38.360 --> 0:08:41.520 And so while we're moving into a more centralized world, 0:08:41.840 --> 0:08:44.760 we also have a decentralized option. So if you're worried 0:08:44.760 --> 0:08:47.120 about the banking collapse and you're worried about your money 0:08:47.120 --> 0:08:50.120 in the bank, well you can opt out. We have bitcoin. 0:08:50.200 --> 0:08:51.920 You can easily just buy bitcoin. Of course, you can 0:08:52.000 --> 0:08:53.240 go buy gold, you can go buy real estate, you 0:08:53.240 --> 0:08:55.480 can go buy stocks, whatever you want. But bitcoin is 0:08:55.520 --> 0:08:58.600 the decentralized option that's set to counteract all of this 0:08:59.120 --> 0:09:02.760 and help us to beat the great bank nationalization of 0:09:02.840 --> 0:09:05.240 twenty twenty three. If you're just tuning in, you are 0:09:05.280 --> 0:09:07.839 listening to the Mark Mass Show. Of course, we're talking 0:09:07.920 --> 0:09:10.720 about the decentralized revolution, how the world is changing and 0:09:10.760 --> 0:09:12.920 we're witnessing and we're still at the precipice here, we're 0:09:12.920 --> 0:09:16.200 still watching the pendulum peeking out of centralization and decentralization. 0:09:16.360 --> 0:09:18.560 I'm running through some of the biggest news headlines of 0:09:18.600 --> 0:09:21.520 this week. I got more to go through because it 0:09:21.559 --> 0:09:23.640 has been a busy week. But anyway, you're listening to 0:09:23.679 --> 0:09:25.640 the Mark Mass Show, I got more headlines to cover 0:09:25.679 --> 0:09:28.240 when I come back in a second. Don't go away, I'll. 0:09:28.080 --> 0:09:28.680 Be right back. 0:09:28.960 --> 0:09:31.080 Hello, welcome back. If you're just tuning in, you're listening 0:09:31.120 --> 0:09:33.040 to the Mark Mass Show. Of course, we're talking about 0:09:33.080 --> 0:09:35.760 the decentralized revolution like we do each and every week, 0:09:36.120 --> 0:09:38.640 as we look at it through the lens of politics, finance, 0:09:38.679 --> 0:09:41.040 and technology, and really we're looking for the convergence of 0:09:41.080 --> 0:09:44.520 those three things because that's what brings us context and 0:09:44.559 --> 0:09:47.400 helps us understand what's going on in the world, particularly 0:09:47.440 --> 0:09:50.680 when it comes to our money, which is driving this 0:09:50.920 --> 0:09:54.360 whole world and this decentralization. Now, you know, like I said, 0:09:54.360 --> 0:09:57.319 there's been so many new stories coming as so fast. 0:09:57.360 --> 0:09:59.600 It's hard to stay on top of this, and more importantly, 0:09:59.640 --> 0:10:03.040 it's hard to understand what is going on. One of 0:10:03.040 --> 0:10:06.240 the big stories dominated news headlines as it should, is 0:10:06.280 --> 0:10:11.520 that the United States government has less than thirty days 0:10:11.559 --> 0:10:14.120 of cash left on hand. Now that's the big deal. 0:10:16.000 --> 0:10:19.920 I mean, it's more than a big deal. We're talking 0:10:19.960 --> 0:10:26.600 about what twenty six trillion dollar economy, the greatest economy 0:10:26.600 --> 0:10:28.800 in the history of the world, the greatest military in 0:10:28.800 --> 0:10:31.160 the history of the world, the greatest ingenuity in the 0:10:31.200 --> 0:10:34.200 history of the world. Twenty six trillion dollar economy. We're talking, 0:10:34.280 --> 0:10:37.000 you know, five to six trillion dollars of revenue coming 0:10:37.040 --> 0:10:41.480 in from taxes, and yet they have less than thirty days. 0:10:41.280 --> 0:10:42.240 Of cash on hand. 0:10:43.000 --> 0:10:45.160 Imagine if you ran your finances like that. Now, I've 0:10:45.160 --> 0:10:47.280 been talking about this for a while. It shouldn't come 0:10:47.320 --> 0:10:51.080 as a huge surprise to you. Part of it, well, 0:10:51.120 --> 0:10:54.400 it's two parts. How does anyone go broke? Well, it's 0:10:54.480 --> 0:10:58.480 usually two parts of the equation. One there's an incum problem, 0:10:58.559 --> 0:11:01.480 and two there's an expense problem. There's a spending problem. 0:11:01.520 --> 0:11:07.199 So easy math is, you're spending more than you're bringing in, obviously, 0:11:07.960 --> 0:11:09.840 and so that's what the federal government has. Of course, right, 0:11:09.880 --> 0:11:12.000 they continue to spend more and more money every single year, 0:11:12.960 --> 0:11:17.240 and they're they're spending more than they're making. Now they're 0:11:17.400 --> 0:11:22.400 spending more every year, and now we're seeing income plummeting. 0:11:22.559 --> 0:11:24.080 And I've been talking about this for a while. I 0:11:24.080 --> 0:11:26.840 told you this was coming six eight months ago. And 0:11:26.880 --> 0:11:29.040 the reason why is because the Fed going on the 0:11:29.040 --> 0:11:31.920 war path of raising rates at the fastest pace in history, 0:11:33.480 --> 0:11:35.840 and it's doing a couple things. Why are they doing that, 0:11:35.880 --> 0:11:38.839 of course, to fight inflation. Prices are going up too much, 0:11:38.840 --> 0:11:40.600 and so the Fed says, well, here's what we'll do. 0:11:40.840 --> 0:11:44.200 We'll make everybody broke. And if everybody's broke, then they 0:11:44.280 --> 0:11:46.360 will stop buying as much, they won't drive as much, 0:11:46.400 --> 0:11:48.280 they won't eat out as much, they won't travel as much, 0:11:48.280 --> 0:11:50.520 and that will bring prices down. They're going to crush 0:11:50.600 --> 0:11:54.200 demand quote unquote crush demand by making people broke. The 0:11:54.320 --> 0:11:58.880 problem is when people are broke and asset prices come down, 0:11:58.960 --> 0:12:00.240 or they don't have a much money to spend, and 0:12:00.280 --> 0:12:03.640 then they don't pay as much taxes. And if they 0:12:03.640 --> 0:12:06.760 don't pay as much taxes, then the government doesn't have 0:12:06.800 --> 0:12:09.920 any income. But unlike you and I, who if our 0:12:09.920 --> 0:12:12.520 income goes down, where our expenses go down. No, no, no, 0:12:12.559 --> 0:12:17.160 not the government. Even though income goes down, expenses are 0:12:17.200 --> 0:12:19.640 still going up. And here we are at the debt 0:12:19.720 --> 0:12:22.440 limit ceiling. Again. You've heard this before. We've been at 0:12:22.440 --> 0:12:25.000 this point several times in history. As a matter of fact, 0:12:25.400 --> 0:12:28.079 dozens of times in history, because every single time we 0:12:28.160 --> 0:12:31.520 hit the debt limit we have to raise it. And 0:12:31.559 --> 0:12:32.960 every time we get to this point where we hit 0:12:32.960 --> 0:12:36.400 the debt limit ceiling, a debate happens to how high 0:12:36.440 --> 0:12:38.199 should we raise it, what should we do about in 0:12:38.240 --> 0:12:41.439 all those things? And here we are at another debate, 0:12:41.679 --> 0:12:45.079 and you know, seemingly at a stalemate, and again we've 0:12:45.080 --> 0:12:48.920 been at a stillmate before. But is it okay? Is 0:12:49.000 --> 0:12:52.640 it okay if we get past the stealmate? In my opinion, 0:12:52.760 --> 0:12:56.280 even if and I would say the most probable outcome 0:12:56.360 --> 0:12:58.800 is we do come to a resolution on this. But 0:12:58.920 --> 0:13:01.800 even if we do, there's irreputable harm that's happening. So 0:13:01.880 --> 0:13:03.680 let's break down what's happening a little bit here. So 0:13:03.720 --> 0:13:06.600 first of all, we're at about thirty two trillion dollars 0:13:06.679 --> 0:13:07.400 of government debt. 0:13:07.400 --> 0:13:08.520 And when they say, well. 0:13:08.360 --> 0:13:10.280 We owe it to ourselves, well. 0:13:10.760 --> 0:13:11.320 Yes and no. 0:13:12.559 --> 0:13:16.840 If you have a pension, most likely you've bought government 0:13:16.840 --> 0:13:19.080 debt and they owe you money. If you're a foreign 0:13:19.120 --> 0:13:22.360 government or some sort of sovereign fund. 0:13:22.440 --> 0:13:23.440 You own government debt. 0:13:23.720 --> 0:13:26.400 So if the government defaults on that, that means your 0:13:26.440 --> 0:13:29.280 retirement probably takes a massive hit or goes away, right, 0:13:29.679 --> 0:13:32.200 But it also does irreparable harm to the country itself. 0:13:32.760 --> 0:13:36.040 The very fact that we're even debating this weakens the 0:13:36.040 --> 0:13:38.280 confidence and the trust in the United States government and 0:13:38.320 --> 0:13:41.200 the currency and all those things. We know that in 0:13:41.240 --> 0:13:44.840 two previous debt ceialing debates in twenty eleven and twenty 0:13:44.920 --> 0:13:48.040 thirteen that went for quite a long time, that were 0:13:48.600 --> 0:13:52.240 two of the most extreme debt debates that we had. 0:13:52.640 --> 0:13:56.040 We saw the credit rating of the United States government 0:13:56.120 --> 0:14:00.680 get lowered. What does that mean, Well, when they lowered 0:14:00.679 --> 0:14:02.920 the when they lowered the credit rating, and that means 0:14:02.960 --> 0:14:05.560 that the government has to pay a higher interest rate 0:14:05.760 --> 0:14:09.080 for the debt. So that happened in twenty eleven during 0:14:09.120 --> 0:14:15.160 that showdown. Now, Alan Greenspan famously went on TV you know, 0:14:15.160 --> 0:14:16.640 when he was still heead of the Federal Reserve, and 0:14:16.679 --> 0:14:19.560 said that the United States can never default on its 0:14:19.600 --> 0:14:21.520 debt because it has a money printer. And I've made 0:14:21.520 --> 0:14:23.200 that case many times. I don't believe any country with 0:14:23.280 --> 0:14:26.440 a money printer will ever default. However, it's not totally true, 0:14:26.600 --> 0:14:29.760 because there's actually two types of defaults. One is a 0:14:29.760 --> 0:14:31.880 deflationary default where we don't pay the money, and the 0:14:31.880 --> 0:14:35.120 second is an inflationary default where we print the money. 0:14:35.200 --> 0:14:39.560 They're both defaults. So, for example, if I owed you 0:14:39.920 --> 0:14:44.080 a Mona Lisa painting, I borrowed it from you. I 0:14:44.160 --> 0:14:45.880 owed it to you, but instead of giving you the 0:14:45.880 --> 0:14:48.000 Mona Lisa print painting, I just printed one off my 0:14:48.040 --> 0:14:51.160 ink jet printer and I gave it to you. That's inflationary. 0:14:51.400 --> 0:14:54.360 I printed a counterfeit and I gave you the counterfeit 0:14:54.400 --> 0:14:57.640 instead of back what you owed. That's a default as well. 0:14:58.120 --> 0:14:59.880 Default one, I don't give you the Mona Lisa back. 0:15:00.000 --> 0:15:01.560 Fault number two. I printed on mainjet and I give 0:15:01.560 --> 0:15:03.080 it to you. And that's basically with the government don 0:15:03.160 --> 0:15:06.240 So we know in nineteen thirty three, the government owed 0:15:06.320 --> 0:15:08.720 gold and so they just stole it from all the people. 0:15:09.560 --> 0:15:11.240 Nineteen thirty three, they made it illegal for Americans to 0:15:11.280 --> 0:15:13.440 own gold, and then they devalue. They changed the price 0:15:13.440 --> 0:15:15.280 from twenty dollars nouns to thirty five dollars ounce. 0:15:15.360 --> 0:15:16.040 That's a default. 0:15:16.360 --> 0:15:19.000 Nineteen seventy one, the nations around the world one of 0:15:19.000 --> 0:15:22.080 the all their gold back from the United States. France 0:15:22.080 --> 0:15:25.360 sent over warships to collect the gold, and Richard Nixon said, Nope, 0:15:25.360 --> 0:15:27.400 the gold windows closed. We're not giving gold back anymore. 0:15:27.480 --> 0:15:30.720 That was a default, so it does happen. But here 0:15:30.760 --> 0:15:33.920 we are back at another debate here, and I want 0:15:33.920 --> 0:15:35.600 to break this down for you a little bit, just 0:15:35.640 --> 0:15:37.200 you can understand what they're fighting over. 0:15:37.240 --> 0:15:38.640 So you understand where we're going here. 0:15:38.680 --> 0:15:42.240 So check it out. So the Biden administration wants unlimited 0:15:42.240 --> 0:15:45.440 spending power, so just get rid of the debt ceiling limit. 0:15:45.480 --> 0:15:48.200 Let's just spend as much as we want. The Republicans 0:15:48.400 --> 0:15:50.280 want to spend a bunch of money as well. They 0:15:50.320 --> 0:15:52.960 just want to spend a little bit less. So I'm 0:15:52.960 --> 0:15:55.240 not right or left here. Both sides want to continue 0:15:55.280 --> 0:15:57.560 to print more money once Ide just wants to spend 0:15:57.640 --> 0:16:00.400 even more. The Republicans have a plan. McCarthy put together 0:16:00.400 --> 0:16:02.680 a plant called Limits, Save Grow Act, and they said, look, 0:16:02.720 --> 0:16:05.360 we'll raise the debt limit by one point five trillion. 0:16:05.480 --> 0:16:07.600 It's not a small number. We'll raise it by one 0:16:07.600 --> 0:16:10.400 point five trillion. And then what we want to do 0:16:10.480 --> 0:16:13.280 is we want to limit the future budget increases to 0:16:13.440 --> 0:16:16.880 just one percent a year. Now, Biden administration says, oh, 0:16:16.920 --> 0:16:19.240 they're going to cut social Security, You're going to cut Medicare. No, 0:16:19.720 --> 0:16:22.400 they're going to The Republicans said, no caps on soci 0:16:22.400 --> 0:16:24.880 security or Medicare. But what they do want is they 0:16:24.920 --> 0:16:29.800 want stricter welfare rules. Welfare has gotten out of hand. 0:16:29.800 --> 0:16:32.360 As a matter of fact, it's increased by two hundred 0:16:32.520 --> 0:16:35.640 and forty percent over the last forty years. It's got 0:16:35.680 --> 0:16:37.800 out of control, rife with fraud. They want to strict, 0:16:37.800 --> 0:16:39.040 They want to they want to tighten that up a 0:16:39.040 --> 0:16:42.080 little bit. They also want to cut the eighty million 0:16:42.160 --> 0:16:44.560 dollars that the Biden administration wants to give to the 0:16:44.600 --> 0:16:48.040 IRS to arm a bunch of IRS officers to come 0:16:48.080 --> 0:16:50.520 shine flashlights into your accounts of six hundred dollars or more. 0:16:51.240 --> 0:16:54.160 They also want to cancel the student loan forgiveness because 0:16:54.200 --> 0:16:56.440 that's the largest asset on the government's books. They want 0:16:56.480 --> 0:16:58.840 to repeal some pieces of the IRA Act, the Inflation 0:16:58.920 --> 0:17:02.080 Production Act, and they want to add legislation to bring 0:17:02.200 --> 0:17:06.000 US energy back to the United States, meaning, you know, 0:17:06.840 --> 0:17:08.359 get more oil and actric gas out of the ground 0:17:08.400 --> 0:17:11.760 and make the United States energy and dependent again. All 0:17:11.800 --> 0:17:14.280 sound like good things to me. Still increases the budget 0:17:14.280 --> 0:17:16.119 by one point five trillion dollars, But of course the 0:17:16.119 --> 0:17:20.119 bid administration says, no deal, no deal, You're going to 0:17:20.200 --> 0:17:24.400 shut it down. So we'll see how this plays out? Now, 0:17:24.480 --> 0:17:26.280 what does this tell us? It tells us that there 0:17:26.359 --> 0:17:29.520 is massive amounts of money printing ahead. Either way Republican 0:17:29.640 --> 0:17:35.800 or Democrat, doesn't matter, which means more inflation ahead. And 0:17:35.880 --> 0:17:36.840 so we know the directionality. 0:17:36.880 --> 0:17:37.480 We don't know the timing. 0:17:37.560 --> 0:17:40.160 We know the directionality. If you just tune in, you're 0:17:40.160 --> 0:17:41.760 listening to the Mark Maas Show. Of course, we're talking 0:17:41.800 --> 0:17:44.040 about the decentralized Revolution. I'm running through some of the 0:17:44.040 --> 0:17:47.360 biggest news headlines and articles this week so you can 0:17:47.560 --> 0:17:50.120 understand what's going on in the world and more importantly, 0:17:50.160 --> 0:17:52.840 the direction that we're heading in the timeframe. These are 0:17:52.880 --> 0:17:55.760 the signposts that show you where we're going. I got 0:17:55.800 --> 0:17:57.680 a whole lot more to cover. There are some even 0:17:57.680 --> 0:18:00.560 bigger news that I haven't talked about yet this week. 0:18:00.680 --> 0:18:02.320 I might take a quick break. You don't want to 0:18:02.320 --> 0:18:03.600 miss it, so don't go away. 0:18:03.720 --> 0:18:04.480 I'll be right back. 0:18:04.640 --> 0:18:06.240 All right, Welcome back. If you're just tuned in, youwhere 0:18:06.320 --> 0:18:08.480 listening to the Mark mass Show. Of course, we're talking 0:18:08.520 --> 0:18:11.560 about the decentralized revolution each and every week. How to 0:18:11.640 --> 0:18:14.600 run through some of the biggest breaking news headlines. Of course, 0:18:14.640 --> 0:18:16.680 I like to look at them through lens of politics, finance, 0:18:16.720 --> 0:18:19.640 and technology, and the technology is what changes the world 0:18:19.680 --> 0:18:22.280 more than anything. And of course that technology has changed 0:18:22.320 --> 0:18:25.840 the world right now. Is bitcoin the decentralized protocol, the 0:18:25.880 --> 0:18:29.760 decentralized network now, you know? Talking about bitcoin, I went 0:18:29.880 --> 0:18:31.680 on record. I made a couple videos on my main 0:18:31.680 --> 0:18:34.480 YouTube channel, Mark Moss. I do a couple teaching videos 0:18:34.480 --> 0:18:36.280 there per week. So if you want to check those 0:18:36.280 --> 0:18:39.040 out where I have slides and graphs and presentations, just 0:18:39.080 --> 0:18:41.920 go to Mark Moss check out my main YouTube channel there. Also, 0:18:41.960 --> 0:18:43.399 by the way, if you miss any of these shows, 0:18:43.400 --> 0:18:45.480 you can watch me and listen to me on the 0:18:45.480 --> 0:18:49.359 Market Disruptors YouTube channel. But on my main YouTube channel, 0:18:49.400 --> 0:18:51.960 I made some videos and I went on Fox Business 0:18:52.040 --> 0:18:54.080 and Stansbury Radio and all the big shows, and I 0:18:54.119 --> 0:18:57.119 made a statement that I believe that bitcoin, I'm sorry, 0:18:57.119 --> 0:19:01.920 an cryptocurrency as a category wouldn't have another bull run. 0:19:03.119 --> 0:19:07.720 Bitcoin will, but cryptocurrency wouldn't as a category. And the 0:19:07.800 --> 0:19:09.959 reason why I said that is because after the collapse 0:19:10.000 --> 0:19:12.600 of FTX, I knew that the financial regulators were going 0:19:12.640 --> 0:19:16.120 to come after it so hard that it would drive 0:19:16.160 --> 0:19:20.520 a lot of that venture capital money away. And people say, Mark, 0:19:20.560 --> 0:19:23.240 you don't understand it's going to go offshore. Yes it will, 0:19:23.280 --> 0:19:26.120 I agree, Mark, you don't understand, like we'll still trade 0:19:26.119 --> 0:19:27.440 it on decentralized protocols. 0:19:27.520 --> 0:19:28.800 Yes you will. I get that. 0:19:29.240 --> 0:19:32.679 But the big money, the venture capitalists that were putting 0:19:32.720 --> 0:19:36.040 the hundreds of millions of dollars in and putting the 0:19:36.080 --> 0:19:39.080 money into advertising and talking it on TV, that would 0:19:39.119 --> 0:19:42.800 go away. And so would there be little assets that 0:19:42.840 --> 0:19:45.440 will still blow up like what just happened this week 0:19:45.440 --> 0:19:47.440 with that peppy coin and went up to two thousand percent. 0:19:47.480 --> 0:19:50.600 Sure that still will happen. But as a category, the 0:19:50.680 --> 0:19:52.200 days of just you know, closing your eyes, throwing a 0:19:52.240 --> 0:19:54.080 dart and having everything go up, I think that's over. 0:19:54.640 --> 0:20:00.960 I saw this week. Long time crypto advocate, not a 0:20:00.960 --> 0:20:05.440 big fan, not a big friend of bitcoin. I've used 0:20:05.520 --> 0:20:08.840 us some clips of I'm talking about Chamath Pella Petea. 0:20:08.960 --> 0:20:11.080 If I said that right, Chimoth is what they call him, 0:20:11.440 --> 0:20:15.400 and I think he's he's like early early Facebook. He's 0:20:15.440 --> 0:20:18.080 an early bitcoin adopter. He's also been involved in a 0:20:18.080 --> 0:20:21.480 lot of cryptocurrencies. He was a big, big adopter of Solana. 0:20:22.840 --> 0:20:24.679 There's a video that I've used before. Other people have 0:20:24.720 --> 0:20:27.639 posted around where you hear him and like David Zach's 0:20:27.720 --> 0:20:31.159