Speaker 1: Hello, and welcome to another episode of The Mark Ma Show,
Speaker 1: where we talk about each and every week. Of course,
Speaker 1: we talked about the decentralized Revolution, talking about the way
Speaker 1: the world is changing right before our very eyes. We're
Speaker 1: living through a period of history that's going to be
Speaker 1: talked about for millennia to come, mostly probably people scratching
Speaker 1: their heads saying what the heck were they thinking? But
Speaker 1: here we are living through it as the world is
Speaker 1: swinging from a world of centralization and we'll go back
Speaker 1: to a world of decentralization. We look at it through
Speaker 1: the lens of politics, finance, and technology, and of course
Speaker 1: those technologies are bitcoin and cryptocurrencies that are helping to
Speaker 1: decentralize the world. But the world is decentralizing politically and
Speaker 1: financially as well. So we look at it through those
Speaker 1: three lenses, and I try to bring to you each
Speaker 1: and every week. I try to bring you, um some
Speaker 1: education to help you see the world a little bit differently. Um.
Speaker 1: If you don't understand at a deeper level really what's
Speaker 1: going on, then you're just missing this whole thing and
Speaker 1: you don't know what to do. I started to bring
Speaker 1: to you some of the latest breaking news each every
Speaker 1: weeks here up to date on what's going on, and
Speaker 1: some interesting guests each end every week. And so we
Speaker 1: have all of that, but right now I want to
Speaker 1: dig into some education. And I want to dig into
Speaker 1: some education so you can understand exactly what's going on
Speaker 1: when you watch the news, when you hear what, you
Speaker 1: know what what read any of your financial publications, news publications,
Speaker 1: and I want you to understand what's really going on.
Speaker 1: And so we have to dig a little bit deeper
Speaker 1: and something that we would probably call like a first
Speaker 1: principle's level. Most people don't really think through like a
Speaker 1: first or second order. We have to kind of you've
Speaker 1: you've probably heard before where people say, um, if you
Speaker 1: really want to get to like what it is you're
Speaker 1: trying to do or why you're trying to do it,
Speaker 1: you just keep asking yourself why seven times? Well why
Speaker 1: is that? Well? Why is that? Well? Why is that?
Speaker 1: And so you want to kind of keep getting down
Speaker 1: deeper and deeper. Most people don't think through the first order.
Speaker 1: So for example, um, hey, uh, you know, prices of
Speaker 1: prices of living have gone up, but really high, and uh,
Speaker 1: that's really dis proportionately affecting the poor people, and so
Speaker 1: why don't we give them a little bit of stimulus
Speaker 1: to help That sounds pretty good on the surface, like
Speaker 1: let's all help out, Like I like that, It sounds good.
Speaker 1: But let's think through the second order of that, and
Speaker 1: the third order, in the fourth order, fifth or so,
Speaker 1: if we do that, then what happens. Well, one, we
Speaker 1: have to print a bunch of money we don't have
Speaker 1: because that increases the debt. If we do that, then
Speaker 1: what happens, right, So, and you can keep playing that.
Speaker 1: I'm not going to dig down that rabbit hole for now,
Speaker 1: but I want to dig in on something that's going
Speaker 1: to hopefully help you understand what's going on and um,
Speaker 1: more importantly, help you navigate what's gonna go on, so
Speaker 1: you know what to do with your money and so
Speaker 1: you don't get wiped out. Put instead, you keep your
Speaker 1: head above water. And I think once you understand this,
Speaker 1: it's all gonna become very clear. And um, we're gonna
Speaker 1: title this the and that inflation is state sponsored terrorism.
Speaker 1: M hmm, that's a big word. Now. I'm borrowing this
Speaker 1: from Jeff Dice. He's the head of the MESAS Institute.
Speaker 1: UM check out MESAS dot org for more info on them. Basically,
Speaker 1: it's about the Austrian school of economics. So there's really
Speaker 1: two schools of economic theory, and you have the Austrian
Speaker 1: school of economics and you have the Kinsian um school
Speaker 1: of economics. In all of traditional education, all um colleges,
Speaker 1: et cetera. Universities that teach economics teach Kinsian economics, they
Speaker 1: don't teach Austrian. Most likely, from dozens and dozens and
Speaker 1: dozens of people that I know who have majored in
Speaker 1: economics at all different universities around the United States, they've
Speaker 1: all told me that they never even heard of Austrian
Speaker 1: economics going through university UM. But these are two um again,
Speaker 1: Austrian and Kinsian. Our whole system is built on Kinsian
Speaker 1: Why of course it comes after John Maynard Keynes, which
Speaker 1: it comes after after. And uh, everyone teaches that and
Speaker 1: tells us that's the right way to do it, and
Speaker 1: why it's so important because it justifies the government printing
Speaker 1: themselves unlimited amounts of money. Whereas Austrian school of economics
Speaker 1: is different, whereas they believe in sound money and savings
Speaker 1: and deploying capital and being efficient, etcetera. So that's the
Speaker 1: right way in my opinion, but the government doesn't like
Speaker 1: that because it would make them have restraint, which they
Speaker 1: don't want. So anyway, check out Mesas dot org if
Speaker 1: you want to learn more about Austrian economics. UM and
Speaker 1: it's really based off of Leadwiguan Mesas wrote the book
Speaker 1: called Human Action, and it's all about human action. Like
Speaker 1: humans act, we act like humans want more order in
Speaker 1: our lives. I want things to be better. Those things
Speaker 1: that I want build into my motivations that then cause
Speaker 1: me to act. It's very simple, right, it sounds simple.
Speaker 1: But for some reason, the Kinsians don't understand that. They
Speaker 1: don't believe in human action. So they think that everybody
Speaker 1: is just a number on a spreadsheet and everybody could
Speaker 1: be managed very simply like that. And so for example, well,
Speaker 1: let's just, uh, let's just tax these people at seventy
Speaker 1: percent of their wealth and let's give that money to
Speaker 1: these people and that will work out, right, it'll just
Speaker 1: even out. But they don't take into a consideration human action,
Speaker 1: whereas like we'll shoot, if you're going to take seventy
Speaker 1: of my wealth, then I'm probably not gonna work that hard, right,
Speaker 1: that's the motivation piece. That's what they're missing. So anyway,
Speaker 1: let's dig into this a little bit here. So Americans,
Speaker 1: not just Americans, the entire world, no matter where you're
Speaker 1: listening from, we are suffering from a massive inflation. That's
Speaker 1: what we're being told. R C p I CPI, CPI
Speaker 1: is on a new record forty year high, forty year high,
Speaker 1: forty high. Well, it came down a little bit. You've
Speaker 1: got all the way to nine point one. Now it's
Speaker 1: back down to eight point five. Hoay, hooray. That doesn't
Speaker 1: mean prices are coming back down to where they were.
Speaker 1: That just means they're still going up just a little
Speaker 1: bit of a less rate. So we have this massive
Speaker 1: inflation we've been feeling. We've been feeling the pain the
Speaker 1: gas pump, the grocery store, all these things. And of
Speaker 1: course the leaders that be, the politicians, the federals, are
Speaker 1: of the central bankers. They tell us that it's not
Speaker 1: a problem, it's not a problem. Oh, it's transitory, it's
Speaker 1: it's your temper that's going to go away. But once
Speaker 1: it became impossible to sell that narratve anymore, once it
Speaker 1: didn't go away, once people started crying out, because the
Speaker 1: pain of gas pump and the grocery store is way
Speaker 1: too high. Then the Federal Reserve had to do something
Speaker 1: about it. The Biden administration, the president, and again if
Speaker 1: you're another country, whatever political party you have, they all
Speaker 1: have to do something about this inflation. And so they will.
Speaker 1: And so the Federal Reserve wants to start raising rates
Speaker 1: because if they start raising rates, then maybe they could
Speaker 1: bring down prices. Now, there's a bunch of ways we
Speaker 1: can talk about this, but I'm gonna try to stay
Speaker 1: focused a little bit for you guys and not wander
Speaker 1: around too much. And so basically we have this um
Speaker 1: this monetary policy or this monetary regime of inflationism. Okay, Now,
Speaker 1: under the Austrian school of economics, inflation, as roth Part said,
Speaker 1: is always a monetary phenomenon. So inflation is when you
Speaker 1: increase the money supply. When you increase the money supply
Speaker 1: causes all types of things to happen. Um, the prices
Speaker 1: of all types of gooden services change, and supply change change,
Speaker 1: and all these things happen when you increase the money supply.
Speaker 1: But in today's terms, they consider inflation the cost of
Speaker 1: goods and services going up CPI right, But I I
Speaker 1: put out a tweet a while ago, I said, the
Speaker 1: two greatest tricks that the Central Bank ever played on
Speaker 1: us is one convincing us that the money supply should
Speaker 1: always increase. And a lot of people you hear that
Speaker 1: right now, and you go, but market has to uh.
Speaker 1: As the population increases, the money supply has to increase. Right,
Speaker 1: that's the greatest trick. The second greatest trick is that
Speaker 1: your asset prices going up is a good thing. We're
Speaker 1: gonna break those down. But what I want to tell
Speaker 1: you is that this is even way more profound than
Speaker 1: just the price of your groceries or your gas. It's
Speaker 1: way more profound than your asset prices, your retirement accounts
Speaker 1: and your box or a real estate. Alright, this has
Speaker 1: profound social, moral, and even lasting civilizational effects. Pretty big.
Speaker 1: All right, let's dig into this a little bit. Now.
Speaker 1: I don't want to go super deep, in super far
Speaker 1: back into history. We're gonna dig We're gonna take a
Speaker 1: little bit into history and a little bit um, but
Speaker 1: I want to kind of frame this up a little
Speaker 1: bit into something in modern day terms. Um. Then we'll
Speaker 1: dig back and we're gonna look at a couple of
Speaker 1: examples through history not too far we'll go back into
Speaker 1: the nineties and the two thousand's not too far away,
Speaker 1: and then we're gonna explain exactly what these policies are,
Speaker 1: what that actually means for you and for your life,
Speaker 1: for your offpring, and I'm gonna dig into, like I said,
Speaker 1: even what this is doing in a society level. Now,
Speaker 1: if you can understand this at this first principle's level,
Speaker 1: everything you see on the news from the White House
Speaker 1: Press Secretary to Biden, read enough the teleprompter, to the
Speaker 1: Federal Reserve talking or the E c B or whatever country,
Speaker 1: and it's all going to make sense. You don't want
Speaker 1: to miss this. You're listening to the Mark mo Show.
Speaker 1: Of course, we talk about the decentralized revolution, the way
Speaker 1: the world is changing, moving from centralization to decentralization. We
Speaker 1: look at it through the lens of politics, finance, and technology,
Speaker 1: and we're really digging into the finance piece today because
Speaker 1: that's on everyone's minds. And again, if you understand this
Speaker 1: at the level i'm gonna break it down for you,
Speaker 1: then you're gonna understand everything that's going on and how
Speaker 1: you should survive on it give you the game plan
Speaker 1: and what you should do to navigate this. So don't
Speaker 1: go away. I want to be back with that and
Speaker 1: more in a minute. It's a big show. I'll be back,
Speaker 1: all right, Welcome back. You are still listening, or if
Speaker 1: you're just joining and you're listening to the Mark Moa Show.
Speaker 1: We talk about the decentralized revolution, the way the world
Speaker 1: is changing right before our very eyes, and we look
Speaker 1: at it through the lens of politics, finance, and technology
Speaker 1: and today uh, and I look at through those lenses
Speaker 1: because all three of those rapidly changes. Today we're talking
Speaker 1: about the finance side of things, and it's something that's
Speaker 1: near and dear to everybody's heart, but most people have
Speaker 1: no idea, uh, what it even is. And so the
Speaker 1: thing that I'm talking about is inflation as defined in
Speaker 1: today's terms of the price of goods and services going up.
Speaker 1: Everybody's feeling that, all right, But let's just go back
Speaker 1: a couple of years ago. So remember like two thousand nineteen,
Speaker 1: before the pandemic broke out, before all that stuff happened, Um,
Speaker 1: seemed like everything was going great, right, Like the U. S.
Speaker 1: Economy was booming, the stock markets were making all time
Speaker 1: highs Um, everybody was happy, Well not everybody, right, You
Speaker 1: remember there was a whole group of people they were
Speaker 1: like the never Trumpers, and they're going to move out
Speaker 1: of the country, and so there was all this angst
Speaker 1: built up in the system. But it was kind of
Speaker 1: going okay, right, I mean, the economy is kind of good.
Speaker 1: We're we're all making money. But we were already getting
Speaker 1: to the point where people were kind of at each
Speaker 1: other's throats. Now, Um, if you think that America was divided,
Speaker 1: then uh, Dr Bob Murphy he's also with the me
Speaker 1: since too. He said in two if you think America's divided, now,
Speaker 1: what do you think would happen if the economy was terrible,
Speaker 1: like we had another crash in two thoight? Well we're
Speaker 1: finding out right now. We're about to find out right now.
Speaker 1: Imagine living in some of these countries and emerging markets. Today.
Speaker 1: We saw Sri Loca blow up, Lebanon blow up, we
Speaker 1: saw Turkey blow up, Venezuela, Argentina, Peru ecuator tapping all
Speaker 1: around the world. Imagine living there. We see if you
Speaker 1: don't see what mainstream media, but if you jump onto Twitter,
Speaker 1: you'll see each of these countries are just named have
Speaker 1: hundreds of thousands, of not millions of people in the
Speaker 1: streets protesting because it is bad news today. And so UM,
Speaker 1: that's an extreme case, and sometimes you need that extreme
Speaker 1: case to understand this. But we're talking about this inflation
Speaker 1: is um as a policy all right. Now, in today's terms, UM,
Speaker 1: the government has to continue to create this inflationism, this expansion,
Speaker 1: the money spy because we have to. We don't bring
Speaker 1: in enough tax revenue to to meet or exceed the
Speaker 1: spending of the government. So now we have deficit spending.
Speaker 1: So every year they have to borrow money or print
Speaker 1: money just to continue spending. We of this deliberate credit
Speaker 1: expansion on a national scale. Uh, you know, we've we
Speaker 1: have As they create all this extra money, it's created
Speaker 1: more money chasing the same amount of limited goods and services,
Speaker 1: which brings the price up. Right. But let's just talk
Speaker 1: about this inflation as a policy. Okay, So the first
Speaker 1: thing is that, um, the goal of the Federal Reserve,
Speaker 1: the goal of the United States is to have inflation.
Speaker 1: That's their that's their main policy, and they want to
Speaker 1: have two percent inflation. Now, what does that mean, so
Speaker 1: they want to increase the amount of money every year
Speaker 1: by two They want prices to go up by two percent.
Speaker 1: What that means is that your dollars are buying less
Speaker 1: goods and services every single year. What it means is
Speaker 1: that you have to work harder and harder and harder.
Speaker 1: You have to work more hours just to have the
Speaker 1: same level of living that you had before. All right,
Speaker 1: now that is their target, right, and they should own that,
Speaker 1: all right? And now Mysa has made a quote the
Speaker 1: crack of boom. He says, suddenly when people realize that
Speaker 1: inflation is both deliberate and never ending, it's deliberate. This
Speaker 1: is their policy, all right, They set out to do that. Now,
Speaker 1: the policy of inflation, it's engineered. Like I said that,
Speaker 1: their policy is two. But let's say that we get
Speaker 1: to nine, which is where we got. Now, that's just
Speaker 1: barely a little bit difference. That's like saying, um, you know,
Speaker 1: a little bit of poison is good for us, but
Speaker 1: a lot of poisons not. It's basically what that's saying.
Speaker 1: But let's let's think about what that actually means. All right,
Speaker 1: So at ten percent inflation, in seven years, you'll have
Speaker 1: lost half of your purchasing power. So if you had
Speaker 1: a hundred thousand dollars, let's say let's say that you
Speaker 1: want to buy a house and you're gonna pay cash,
Speaker 1: and you had a hundred thousand dollars and I was
Speaker 1: gonna pay cash, but you know what, I'm probably gonna
Speaker 1: travel for a couple of years, so I'm gonna put
Speaker 1: that money in the bank, and then I'm gonna come
Speaker 1: back and buy the house in a couple of years.
Speaker 1: So in seven years from now, you decided to buy
Speaker 1: the house. But the problem is that hundred thousands. You
Speaker 1: still have the hundred thousand in the bank, but today
Speaker 1: it only buys you fifty thousand dollars worth of a
Speaker 1: house because of the inflation pushing the price of things
Speaker 1: up so much. Inflation, that's why he's making the case
Speaker 1: of inflation is nothing less than sanctioned state terror. Terror,
Speaker 1: and we should treat it as such. It's criminal. It
Speaker 1: makes us live in fear, think about terrorism. It makes
Speaker 1: us live in fear. And it's not just economic issue.
Speaker 1: In fact, it produces deep cultural and social sickness in
Speaker 1: any society. It touches. It makes planning ahead, it makes
Speaker 1: planning for your business, your own personal expenses, your entrepreneurship.
Speaker 1: It makes all that planning, which would of course rely
Speaker 1: on profits and lost calculations money prices, way more difficult.
Speaker 1: It makes it way more risky. And when it's more
Speaker 1: difficult and risky, we get less of it, So we
Speaker 1: get less investments, we get less business booming, but also
Speaker 1: inflation prices going up, where your dollars buying you less
Speaker 1: and less, destroys both existing wealth and future wealth. So
Speaker 1: that hundred thousand dollars that put in my bank, it
Speaker 1: destroys that, and it now only buys me half as
Speaker 1: much goods, but it also destroys future wealth. All right.
Speaker 1: It diminishes the world that our children, our grandchildren habit,
Speaker 1: and it makes us poor and vulnerable in our senior years. Now, um,
Speaker 1: just not that long ago. Twenty years ago. With a
Speaker 1: million dollars, most people could probably retire on that because
Speaker 1: you could put that million dollars, you could earn your
Speaker 1: seven eight percent on that pretty consistently seventy dollars a year.
Speaker 1: Most people could live on that. Today, that million dollars
Speaker 1: doesn't get you anything. Now you need ten million dollars
Speaker 1: to have the same quality of life. That you could
Speaker 1: have had on one million dollars. So it makes us
Speaker 1: poor and vulnerable in our seniors. It it steals and
Speaker 1: destroys our future. An unspoken truth, inflation also makes us
Speaker 1: worse people. It degrades us morally. It forces us to
Speaker 1: choose current consumption over thrift. It makes us live in
Speaker 1: the present at the expense of the future, which is
Speaker 1: the exact opposite of what healthy societies do. We should
Speaker 1: be thinking ahead. Think back to the United States in
Speaker 1: its founding, you had people coming to the United States
Speaker 1: sacrificing their future. I'm sorry, sacrificing their current reality and
Speaker 1: I guess their future in exchange to hopefully have a
Speaker 1: better life for their future generations. Even not that long ago.
Speaker 1: You know, immigrants come to the country, work eight hours
Speaker 1: week hopefully that they will have something better. So that's
Speaker 1: a long term thinking. They're making decisions today that would
Speaker 1: be worse today, but long term they hope it will
Speaker 1: be better. My goal, my renewed goal, is I want
Speaker 1: to be as healthy as I can, and I want
Speaker 1: to make sure that I have a sound mind when
Speaker 1: I'm old. That's like my main concern right now. And
Speaker 1: so now I'm rethinking all the things I'm doing today
Speaker 1: because I've set that as my goal. We I'm gonna
Speaker 1: eat differently, I'm gonna put different things in my body,
Speaker 1: on my body, all those things, and so I need
Speaker 1: to have that long term perspective. My relationships, how I
Speaker 1: treat people today will change based on those long term perspectives.
Speaker 1: You hear about, like don't burn bridges. Why not burn
Speaker 1: bridges well, because at some point in the future you
Speaker 1: might need that person again. Right, that's long term thinking.
Speaker 1: If we have short term thinking, we're eating junk, we're
Speaker 1: doing all kinds of things of our body, we're having
Speaker 1: horrible relationships, we're not saving, we're not building, we're not
Speaker 1: doing anything. And that's why it's bad. Right. It's the
Speaker 1: very human impulse of saving for a rainy day and
Speaker 1: maybe hopefully leaving something for your children is ruined because
Speaker 1: of inflation. Now you're listening to the Markmas Show, we're
Speaker 1: talking a little bit of education so you can better
Speaker 1: understand what is going on in the world today because
Speaker 1: you hear all these things about this Inflation Reduction Act
Speaker 1: that the Biden administration just passed through, and you don't
Speaker 1: really understand. And so I'm breaking all this down for you.
Speaker 1: I got a lot more to cover when I go through,
Speaker 1: and I want to give you the playbook of how
Speaker 1: we're going to survive, what we're gonna do through this.
Speaker 1: Don't go away, I got a lot to cover. I'll
Speaker 1: be right back, all right, Welcome back. You are listening
Speaker 1: to the Markma Show. We talked about the decentralized revolution,
Speaker 1: the way the world is changing right before our very eyes,
Speaker 1: through the lens of politics, finance, and technology. Of course,
Speaker 1: the technology is bitcoin cryptocurrencies. But today we're talking right now,
Speaker 1: specifically about the financial system. And I'm taking something that
Speaker 1: you hear about all the time, inflation, and I'm breaking
Speaker 1: it down so you can understand it a little bit better. Um,
Speaker 1: and then we're gonna I want to give you a
Speaker 1: couple of examples and what we're gonna do about here.
Speaker 1: So we're talking about what inflation is, and I was
Speaker 1: just talking about how it's a deliberate policy. Right. The
Speaker 1: goal is two percent, they have to nine percent. What
Speaker 1: does that mean, Well, the goal is that they want
Speaker 1: to kill you slowly instead of kill you a lot.
Speaker 1: Now to put this into two actual numbers, inflation is
Speaker 1: now back down to eight point. Okay, in the United States,
Speaker 1: that's the cost of goods and services going up by eight.
Speaker 1: What does that mean to you the average person? That
Speaker 1: means for the average person, so we have like the
Speaker 1: median income, the median expenses. For the average person, it
Speaker 1: increases their monthly expenses. What does that mean. Well, that
Speaker 1: means that this month, it costs you three more per
Speaker 1: month to have the exact same quality of life that
Speaker 1: you had the month before. So what does that mean, Well,
Speaker 1: that means if you make thirty two dollars an hour,
Speaker 1: thirty two bucks an hour, which I think is a
Speaker 1: pretty decent wage in across the United States right now,
Speaker 1: if you make thirty two bucks an hour, then you
Speaker 1: have to work ten extra hours this month to have
Speaker 1: the exact same quality of life that you had the
Speaker 1: month before. Now, that's ten hours of your life that
Speaker 1: could be spent with your wife building a better relationship.
Speaker 1: That could be ten hours a it's been with my
Speaker 1: kids teaching them good life lessons. That could be ten
Speaker 1: hours I put into my health, my personal change, ten
Speaker 1: hours I put into my education. Ten hours I could
Speaker 1: spend building a side business or a new business. That's
Speaker 1: ten hours I could do whatever want. That's my life,
Speaker 1: and now I have to take those ten hours and
Speaker 1: take them away from my kids, or take them away
Speaker 1: from my personal health so I can work more, so
Speaker 1: I can have the exact same quality of life I
Speaker 1: had the month before. Now that's a that's an eight
Speaker 1: and a half percent. Now the goal is two percent.
Speaker 1: So instead of stealing ten hours a month, they only
Speaker 1: want to steal two or three. Of course, that adds
Speaker 1: up over time, as I said before, So you can
Speaker 1: kind of see where this goes. Now. As this happens,
Speaker 1: as inflation happens, as you continue to still the wealth
Speaker 1: from people, everything starts to break down. It gets harder
Speaker 1: and harder to live. A perfect example, I got coffee
Speaker 1: right here in front of me. A cup of coffee
Speaker 1: was fifteen cents today a couple of coffee. Depend on
Speaker 1: where you go, it could be four dollars, five dollars.
Speaker 1: Don't you think with all the technology we had in
Speaker 1: the world, with our supply chains and our transportation and
Speaker 1: all those things agriculture, shouldn't it be cheaper to get
Speaker 1: a coffee bean from Colombia to my cup of coffee today?
Speaker 1: And the answer is, of course, a couple of coffee
Speaker 1: should have gone from fifteen cents to two or three cents.
Speaker 1: My living should be got should have gotten easier. I
Speaker 1: should be working less hours today to have the same
Speaker 1: quality of life, not more. I should have more goods
Speaker 1: and services. I should have more time for myself and
Speaker 1: my friends and my family and have the same quality
Speaker 1: and even a better quality vie. Because everything should be
Speaker 1: getting cheaper, but because of inflation, we don't. Because of inflation,
Speaker 1: it's like running on a treadmill and you're going nowhere.
Speaker 1: And that's the policy. That is their goal too. They
Speaker 1: want to have that. What happens after that is war. Now,
Speaker 1: war always happens in actually inflation. The ability to print
Speaker 1: this money and causes inflation is actually what leads to
Speaker 1: war and ultimately makes wars bigger and last long longer.
Speaker 1: So um. The central bank, the first central bank, the
Speaker 1: Bank of England in late was actually started because England
Speaker 1: was in the war with France and they needed more money.
Speaker 1: But let's go back to a more recent time. Let's
Speaker 1: go to like Hitler's Germany World War two. Now, inflation,
Speaker 1: like I said, in war are linked. It's like it's
Speaker 1: the finance that leads nations to that and its sets
Speaker 1: the stage. So before Hitler took power, the German reichs
Speaker 1: Bank suspended it's one third gold reserve requirement in nine fourteen,
Speaker 1: so the bank had to keep of all the money
Speaker 1: they had, they had to keep a third of that
Speaker 1: value in gold, and so that that that put a limit,
Speaker 1: a cap on how much money they could artificially create,
Speaker 1: how much inflation they could create, because they had that
Speaker 1: one third goal requirement that that anchor. But when they
Speaker 1: suspended that, then Germany was able to inflate a lot,
Speaker 1: and they started it started getting very diffic gold for
Speaker 1: people to live. As a matter of fact, it got
Speaker 1: so difficult for people to live that a lot of
Speaker 1: people didn't live. And because of that, people wanted something
Speaker 1: so bad someone to come in and fix this so
Speaker 1: bad that Hitler was able to rise up and say, hey,
Speaker 1: I got you. I'm the pie piper. I'll lead you
Speaker 1: to the Promised Land. If it wasn't for the suspension
Speaker 1: of that golden requirement, if it wasn't for that massive
Speaker 1: inflation that that the central banks went and did, maybe
Speaker 1: maybe Germany and Hitler never would have been anything. Maybe
Speaker 1: it would never been a military power. Maybe Hitler never
Speaker 1: would have risen up because there would have never been
Speaker 1: that in that environment that led to him doing that.
Speaker 1: There's a great book called Win Money Dies that really
Speaker 1: walks through this UM. Great book I recommended. It really
Speaker 1: documents UM people that were living through this and you
Speaker 1: can understand exactly what was going on. But what what
Speaker 1: are the lessons for today? Like, how do we apply
Speaker 1: these lessons for today? Well, the first thing is we
Speaker 1: have to we have to understand UM that inflationism, the
Speaker 1: central banks wanting to increase the money supply UM affects
Speaker 1: us as people, Okay, as they shift us from producers
Speaker 1: to consumers, as they increase the price of living, the
Speaker 1: cost of goods, they're stealing our life. It's we have
Speaker 1: to understand for what it is. It's criminal theft from
Speaker 1: future generations and from savers. I've saved a hundred thousand dollars,
Speaker 1: but now it only buys me fifty good. They stole
Speaker 1: my value of my savings and they stole the value
Speaker 1: of my money for my future generations, my kids. All Right,
Speaker 1: So we have to understand it for what we have
Speaker 1: to call him out. We have to understand that no
Speaker 1: amount of monetary or fiscal engineering. There's no jiggering of
Speaker 1: the economy the central banks, or the or the or
Speaker 1: the treasury can do that can take the place of
Speaker 1: capital accumulation and higher productivity. You have to know that
Speaker 1: we don't want money, and you're like, what do you mean, Mark,
Speaker 1: of course I want money. I want lots of money. No,
Speaker 1: you don't. What you want is you want the things
Speaker 1: that that money will buy you. Right. I want to
Speaker 1: take my wife out to dinner. I want to take
Speaker 1: my kids on a vacation. I want a steak tonight
Speaker 1: for dinner. I want a new car. You don't want
Speaker 1: the money. What you want is the things money buys you.
Speaker 1: Because wealth is not money. Wealth is the goods and services.
Speaker 1: We need a productive society to get those goods and services.
Speaker 1: So there's no amount of monetary expansion or financial jiggering
Speaker 1: that can create more wealth. What creates more wealth is
Speaker 1: when we save the money and use it to be
Speaker 1: more productive, to make more goods and services more efficiently
Speaker 1: at lower prices, so the quality of life goes up
Speaker 1: and not down. We need more money, uh, more money
Speaker 1: and credit is no substitute for better and cheaper goods
Speaker 1: and services. If my goods is ever to get cheaper
Speaker 1: and cheaper and cheaper. That makes my life easier and
Speaker 1: easier and easier. That's what I want. I want to
Speaker 1: my my my level of living. I wanted to go up,
Speaker 1: but that's what the central bankers want. The central bankers
Speaker 1: want it to go down. And this is their policy
Speaker 1: they want. In the Nited States, phero reserved targets two. Okay,
Speaker 1: it's deliberate, it's intentional. Now their goal is they got
Speaker 1: to nine um but um and and like I said,
Speaker 1: this has massive sidal impacts. Now, since nineteen seventy one
Speaker 1: when they got off the gold standard, we've seen this
Speaker 1: explode through society. So since ninety one, the obesity rate
Speaker 1: has gone through the roof because they have they had
Speaker 1: to figure out how to make food cheaper to offset
Speaker 1: that inflation. And so now our food quality has gone down. Um,
Speaker 1: we have, we've had. America has become a nation of
Speaker 1: dual working couples. One person in the family is to
Speaker 1: be able to work. Now two people have to work,
Speaker 1: and you still can't have the American dream. The divorce
Speaker 1: rate has skyrocketed. Why the number one cause of divorce
Speaker 1: is arguing over money and so you can see how
Speaker 1: it tears the very fabric of society. Now you're listening
Speaker 1: to the Markmas Show. We're talking about the decentralized Revolution. Today,
Speaker 1: we're talking about how the financial system is breaking down.
Speaker 1: And I was given to you at a first principle's level,
Speaker 1: so every time you hear this policy from the central
Speaker 1: bankers and the government about inflation, you can understand what's
Speaker 1: going on. I want to talk about the playbook of
Speaker 1: what I expect is gonna come next and what I'm
Speaker 1: doing about it, what I'm gonna do about it, what
Speaker 1: you should do about it if you want to keep
Speaker 1: your head above water and not fall behind. Is the
Speaker 1: government contents you steal your money through inflation. So I
Speaker 1: got a whole lot more to cover when I come back.
Speaker 1: You don't want to miss this part. I'll be right back.
Speaker 1: Don't go away, all right, Welcome back. You are listening
Speaker 1: to the markma Show. We're talking about the decentralized Revolution,
Speaker 1: talking about the way the world is changing and looking
Speaker 1: at through the lens of politics, finance, and technology. Today
Speaker 1: we're talking about the finance piece specifically, but I guess
Speaker 1: it's political as well. It's a politically Uh, motivated to
Speaker 1: increase the money supply, and then you increase the money supply,
Speaker 1: it affects the financial markets and then um that creates
Speaker 1: a massive problem, and then technology comes along to solve
Speaker 1: the problem. So they're all connected. But today we're talking
Speaker 1: about the finance side specifically, and we're talking about inflation,
Speaker 1: a word you hear all the time, but it's really misunderstood.
Speaker 1: So hopefully you understand that a little bit better. Now.
Speaker 1: If you missed out on that, I'm not going to
Speaker 1: recap it, but don't worry. You can catch it on
Speaker 1: the podcast. Just search Market Moss podcast on any of
Speaker 1: your favorite players, or I also put them on YouTube.
Speaker 1: You can find them on YouTube. Um just search Market
Speaker 1: Disruptors on YouTube and you'll find all these and you
Speaker 1: can watch me on video at the same time as
Speaker 1: I'm talking. Now, UM, look, now that we've kind of
Speaker 1: set up inflation and what causes it, let's talk about
Speaker 1: where this could go, where I think it's most likely
Speaker 1: to go, and what I'm doing to survive this. So
Speaker 1: the first thing you have to understand, as we've made
Speaker 1: the case, is that inflation is deliberate the government, that
Speaker 1: the central banks want inflation they want to increase the
Speaker 1: money supply UM, but also it there's no other way.
Speaker 1: So there's no other option at this point. At some point,
Speaker 1: you know, fifty years ago, maybe even twenty years ago,
Speaker 1: they could have reversed course. But we're at the point
Speaker 1: of no return anymore. There's no leader that will ever
Speaker 1: become elected by saying, hey, we need to cut a
Speaker 1: bunch of spending programs and get back into living within
Speaker 1: our means. No one will ever win that race, and
Speaker 1: so it's never gonna happen. We're gonna have to continue
Speaker 1: to print more money. But it's also worse than that
Speaker 1: because right now, because of this, the prices inflation going up,
Speaker 1: and UH inflation going up, UM, and the Federal Reserve
Speaker 1: and the and the Biden administration, everybody, and not just
Speaker 1: in the United States, even in Europe, the ECB UM,
Speaker 1: they're all worried, China, they're all worried about inflation. We
Speaker 1: have to get prices under control. Well, there's two ways
Speaker 1: to get prices under control. To lower prices, One you
Speaker 1: could add supply, or two you could lower demand. And
Speaker 1: the central banks can't add supply. Of course, as I
Speaker 1: said earlier, we don't need more money. We need more productive,
Speaker 1: we need more goods and services. So they can't they
Speaker 1: can't add more good services. What they can do is
Speaker 1: they can crush the demand. And that's exactly what they're doing.
Speaker 1: They've said so many many times, UM, just search fed
Speaker 1: destroying demand and you'll find a bunch of articles on that.
Speaker 1: And so they do that by making you feel poor.
Speaker 1: If you feel poor, then you don't buy as many things.
Speaker 1: The problem with making you feel poor because your stock,
Speaker 1: your retirement accounts went down, your house went down, is
Speaker 1: that you don't buy as many things. And when you
Speaker 1: don't buy as many things, then there's not as much
Speaker 1: tax receipts. So right now, the government spends more money
Speaker 1: than they bring in. But as they bring in less money,
Speaker 1: they're going to have to spend more money. So they're
Speaker 1: gonna be spending more money. To help you offset your
Speaker 1: rising gas prices, help you offset your solar panels on
Speaker 1: your house, How help you offset all these different things?
Speaker 1: And as prices, as as your cost of living goes
Speaker 1: up and your income and your assets go down, they're
Speaker 1: gonna have to offset that even more. Right now, UH
Speaker 1: a hundred percent of tax receipts government brings in go
Speaker 1: to cover just the very most basic expenses. The government
Speaker 1: has entitlements and treasury spending. The rest they have to borrow,
Speaker 1: So the government already has to borrow or print more
Speaker 1: money every year. Just down on and float. Now, the
Speaker 1: problem is is that as they crush demand, seventy percent
Speaker 1: of the gross domestic PROBA of the United States comes
Speaker 1: from consumer spending. But if they bring asset prices down,
Speaker 1: you don't have any money, so then you don't spend,
Speaker 1: so then GDP goes down. The other problem is that
Speaker 1: this is a big problem, is that the top ten
Speaker 1: pent of earners, the top ten percent earners in the
Speaker 1: United States, pay seventy percent of the taxes. How's that
Speaker 1: for paying your fair share? Biden and AOC They say
Speaker 1: the rich don't pay their fair share. Well, the top
Speaker 1: ten percent of earners pay seventy six nine four to
Speaker 1: be exact, of the taxes come from the top ten percent.
Speaker 1: Now why does that matter, Well, because the top ten percent,
Speaker 1: they don't make their money from a W two getting taxed.
Speaker 1: They make most of that money through capital gains, um,
Speaker 1: you know, stock options, things like that. So if the
Speaker 1: asset prices come down, they are not getting that money,
Speaker 1: and then they're not paying the taxes. Well, that's a problem.
Speaker 1: A seventy of the tax receipts come from them, So
Speaker 1: if the tax seats go down, then the government has
Speaker 1: to print even more. And on top of that, um,
Speaker 1: where do they get the money will? They have two options.
Speaker 1: One they could borrow it from other nations, and they
Speaker 1: used to. As a matter of fact, from two thousand
Speaker 1: two to two thou fourteen, fifty of federal debt was
Speaker 1: purchased by other nations. But since two thou fourteen only five.
Speaker 1: No one wants to buy us debt anymore, so they
Speaker 1: have to print even more. So you see very quickly
Speaker 1: where this is going more inflation, higher inflation. Now we
Speaker 1: have plenty of examples of how this works out. Zimbabwe
Speaker 1: is of a good example because it happened very recently
Speaker 1: in the two thousands, and we understand it's very volatile,
Speaker 1: but we understand that while we could see things come
Speaker 1: down in the short term, the governments of the world
Speaker 1: have no choice but to continue to inflate. They have
Speaker 1: no choice. So, um, what they're going to do is
Speaker 1: they're going to try to offset that. So they're going
Speaker 1: to have to continue to inflate the currency, increase the
Speaker 1: amount of currency, which is going to push prices higher.
Speaker 1: What they're going to try to do, they're already doing.
Speaker 1: They already talked about. Elizabeth Warren the United States has
Speaker 1: been talking about, Biden has been talking about it. In
Speaker 1: Europe they're talking about is price fixing? Well, shoot, prices
Speaker 1: are going up so fast, but we have to keep
Speaker 1: printing money, which pushes the price to be more. So
Speaker 1: here's what we'll do. We'll cap the prices of those goods.
Speaker 1: The problem is businesses are in business to make money,
Speaker 1: and so if they cap the price of goods to
Speaker 1: where the business can't make money anymore, then the business
Speaker 1: shuts down, which so price fixing always leads to shortages,
Speaker 1: and shortages lead to more prices going higher. That's where
Speaker 1: we're going Zimbabwe. From the markets dropped fifty percent, we
Speaker 1: could see another fifty percent drop in the SMP. We
Speaker 1: could um and and actually there's probably a pretty good
Speaker 1: chance we will. So for two years it grinded lower,
Speaker 1: then it's shot up eighty seven per cent. I'm sorry,
Speaker 1: not eighty seven times, eight seven times. Because the governments
Speaker 1: were forced to capitulate and print that money, and that's
Speaker 1: what I expect to happen here. I think you know,
Speaker 1: over the next three to twelve months, we could see
Speaker 1: the markets, the real estate markets, the stock markets continued
Speaker 1: to grind lower. But then they're going to shoot higher.
Speaker 1: Now the problem is when they shoot higher, what are
Speaker 1: you gonna do. If I had a time machine, I
Speaker 1: can go back in time, and I went to Turkey
Speaker 1: five years ago. Um in the last five years Turk,
Speaker 1: the Turkish lera has lost eighty two sent to the U. S. Dollar.
Speaker 1: So if I was in Turkey five years ago, I
Speaker 1: would have wanted to sell all my Turkish lira and
Speaker 1: buy dollars and I would have done really well. Or
Speaker 1: I could have borrowed a bunch of Turkish liraor to
Speaker 1: buy real estate and I would have done even better
Speaker 1: with that leverage. Because just just because your house is
Speaker 1: going up in value doesn't mean you're making money. You
Speaker 1: could just barely be keeping your head above water. If
Speaker 1: you bought a hundred thousand dollar home and now it's
Speaker 1: a million dollar home, and you sell that million dollar home,
Speaker 1: where you can just go buy another million dollar home
Speaker 1: the exact same way. You didn't actually get ahead all
Speaker 1: you did was keep up. So you have to figure
Speaker 1: out not only how can you keep your head above
Speaker 1: water as this inflation continues to rage on, but how
Speaker 1: can you stay ahead of this? Now? Um? I have
Speaker 1: I have a playbook that I'm following, and I'm actually
Speaker 1: gonna have a live event, um and we're gonna I'm
Speaker 1: gonna cover this. I got a whole bunch of charts
Speaker 1: that I'm gonna do live Q and A. If you'd
Speaker 1: like to join that, you can just check out go
Speaker 1: dot one, Mark Moss dot com, Dot one Mark Moss
Speaker 1: dot com slash plan. If you want to find out
Speaker 1: what my plan, go dot one Mark Moss dot com
Speaker 1: slash plan and come hang out with me live on
Speaker 1: video see all the slides I have and hear what
Speaker 1: the plan is. But we need to have a plan
Speaker 1: because we know we don't really know what's going to
Speaker 1: happen over the next three to twelve months. Probably the
Speaker 1: market's going to crash. We don't know how hard they're
Speaker 1: gonna crash, but we know that in the next three
Speaker 1: to five years, the government has no choice but to
Speaker 1: continue to inflate the currency. It's their plan two. But
Speaker 1: of course they're gonna be forced to do even more
Speaker 1: because of the problems that I've broken down for you.
Speaker 1: It's inevitable in my opinion, and we have plenty of
Speaker 1: historical narratives to back that up. You've been listening to
Speaker 1: the Markma Show talking about the decentralized revolution, the way
Speaker 1: the world is breaking apart and from a centralized place,
Speaker 1: and we'll swing back to a more of a decentralized
Speaker 1: world and we look at it through the lens of politics, finance,
Speaker 1: and technology. Now, this as we talked about today, was
Speaker 1: mostly about finance, the governments of the round the world,
Speaker 1: the central banks of the world. We're talking about the
Speaker 1: b o j in Japan, Bank of China, and we're
Speaker 1: talking about the ECB, European Central Bank. We're talking about
Speaker 1: the Federal Reserve of the United States. All of these
Speaker 1: banks are in the same situation. They have no choice
Speaker 1: but to do this, and you better be prepared or
Speaker 1: you gonna get left behind. That's what I got for
Speaker 1: you today. Hopefully you enjoyed this show. Let me know,
Speaker 1: hit me up on Twitter, let me know, and thanks
Speaker 1: for listening.