WEBVTT - Best of The Mark Moss Show - Government Default: A Catalyst for Change? 0:00:00.240 --> 0:00:02.680 Hello, and welcome to another episode of the Mark Moss Show, 0:00:02.680 --> 0:00:05.680 where we talk about, of course, the decentralized revolution, how 0:00:05.720 --> 0:00:08.680 the world is changing right before our eyes as we 0:00:08.720 --> 0:00:12.320 look at it through the lens of politics, finance, and technology. 0:00:12.400 --> 0:00:15.440 And we have a big show coming up. The government 0:00:15.640 --> 0:00:19.160 admits money comes from thin air. The US Treasury has 0:00:19.200 --> 0:00:22.759 only two weeks of money left. Why a government default 0:00:22.880 --> 0:00:27.520 seems more likely than ever. And big problems equal big solutions, 0:00:27.680 --> 0:00:30.680 and we have one right now. So that's what we're 0:00:30.680 --> 0:00:32.879 going to cover. Let's go ahead and dig right into this, 0:00:32.920 --> 0:00:37.440 and let's just start right off by stating the obvious. 0:00:37.960 --> 0:00:41.320 We are at the point now where the government, the 0:00:41.360 --> 0:00:46.159 government officials are saying the quiet part out loud. What 0:00:46.200 --> 0:00:48.760 do I mean? Well, there's lots of things that we 0:00:48.800 --> 0:00:52.280 talk about kind of behind the scenes. People might consider 0:00:52.320 --> 0:00:57.600 them sometimes conspiracies, maybe their lies, maybe we don't understand, 0:00:57.880 --> 0:01:00.200 but we're at the point now where they're coming out 0:01:00.280 --> 0:01:04.760 and telling us that specifically. Now. One of our government 0:01:04.760 --> 0:01:09.520 officials I'm talking about, Brad Sherman from California, obviously is 0:01:09.560 --> 0:01:12.119 not one of my favorite lawmakers. For sure, he has 0:01:12.160 --> 0:01:18.319 been let's say, a big time foe an enemy of progress, 0:01:18.360 --> 0:01:22.640 an enemy of innovation, an enemy of bitcoin and cryptocurrencies. 0:01:22.680 --> 0:01:25.920 And of course his major donors are credit card companies 0:01:26.040 --> 0:01:28.360 and banks, so of course no wonder he's against that. 0:01:28.720 --> 0:01:32.080 And he's constantly come out with bad take after bad 0:01:32.120 --> 0:01:35.360 take after bad take. And he has another one this 0:01:35.440 --> 0:01:39.000 week that Matt really still got to sit out to me. 0:01:39.120 --> 0:01:42.440 I'm gonna let you hear it directly from his mouth. 0:01:42.520 --> 0:01:44.199 Let's go ahead and play this clip from Brad Sherman 0:01:44.280 --> 0:01:47.120 so you can hear what we're talking about. Crypto bros 0:01:47.240 --> 0:01:49.720 make money, literally by making money, and they've made over 0:01:49.760 --> 0:01:54.680 a trillion dollars out of thin air. They'll accuse the 0:01:54.760 --> 0:01:57.760 US government of making money out of thin air. Maybe 0:01:57.800 --> 0:02:04.480 we do, but we're the US government. Uh, Crypto bros 0:02:04.560 --> 0:02:06.880 accused the US government of making money out of thin air. 0:02:07.600 --> 0:02:12.760 Maybe we do, but were the US government. That's his rationale. 0:02:13.760 --> 0:02:16.400 When I was a kid, I remember seeing these bumper stickers. 0:02:16.600 --> 0:02:20.320 They might still be around today, but they say, don't steal. 0:02:20.680 --> 0:02:23.400 The government hates competition. I don't know if you've ever 0:02:23.400 --> 0:02:25.440 seen one of those bumper stickers before, but that's basically 0:02:25.480 --> 0:02:29.200 what they're saying. You're not allowed to counterfeit money. That's 0:02:29.280 --> 0:02:32.760 the government's job. You're not allowed to steal, that's the 0:02:32.800 --> 0:02:35.480 government's job. You're not allowed to create money out of 0:02:35.480 --> 0:02:38.799 thin air. That's the government's job. So there's a lot 0:02:38.880 --> 0:02:41.560 to unpack with this. And as I said, one, they're 0:02:41.600 --> 0:02:45.200 saying the quiet part out loud. Yes, the government literally 0:02:45.760 --> 0:02:50.600 creates money out of thin air. Although if you don't 0:02:50.680 --> 0:02:52.679 understand what money is, maybe you don't really understand it. 0:02:52.720 --> 0:02:54.360 But let me unpack this just a little bit. So 0:02:54.800 --> 0:02:56.840 does the government print money out of thin air? And 0:02:56.919 --> 0:03:00.120 do crypto bros create money out of thin air? Well, 0:03:00.800 --> 0:03:03.160 first of all, money is a meaning of exchange, is 0:03:03.160 --> 0:03:04.600 a store of value, and I don't want to get 0:03:04.600 --> 0:03:06.959 into all that, but let's think about this for a minute. 0:03:07.440 --> 0:03:10.359 How is money made? How do you make money out 0:03:10.400 --> 0:03:13.560 of thin air? Well, I mean you can't, right, So, 0:03:13.600 --> 0:03:16.840 if I'm a crypto bro that Brad Sherman's talking about, 0:03:17.080 --> 0:03:20.560 let's see, I had to probably learn how to code. 0:03:20.600 --> 0:03:23.679 I've probably spent hundreds or thousands of hours potentially schooling 0:03:24.600 --> 0:03:27.240 learning how to code. And then I had to learn 0:03:27.280 --> 0:03:31.040 how to get a blockchain and fork it and then 0:03:31.160 --> 0:03:33.440 you know, change it, modify it to my own liking. 0:03:34.200 --> 0:03:36.160 Well one, I had to have the idea. I had 0:03:36.200 --> 0:03:39.400 to have the creativity to even see a potential use case. 0:03:39.440 --> 0:03:41.440 So I had to see a problem and a potential solution. 0:03:41.800 --> 0:03:43.080 I had to come up with a new you know, 0:03:43.160 --> 0:03:47.600 crypto bro blockchain to potentially solve that problem. I had 0:03:47.600 --> 0:03:48.960 to learn how to code or I had to hire 0:03:49.000 --> 0:03:50.920 coders to come in and write the code, fork it, 0:03:51.000 --> 0:03:53.480 modify it, et cetera. Then I had to you know, 0:03:53.560 --> 0:03:56.560 build a website and put all the marketing together. I 0:03:56.600 --> 0:03:58.920 had to you know, figure out how to raise money, 0:03:58.920 --> 0:04:01.680 set up off score corporations, bank accounts, whatever. I had 0:04:01.680 --> 0:04:03.280 to go on the show, you know, the road show, 0:04:03.280 --> 0:04:05.200 and I had to collect money, raise money. Then I 0:04:05.240 --> 0:04:07.400 had to get exchanges to list the token. I had 0:04:07.400 --> 0:04:11.440 to sell a token, etc. Sort of sounds like setting 0:04:11.480 --> 0:04:15.480 up a business. So for Brad Sherman to say that 0:04:15.520 --> 0:04:18.760 they were creating money out of thin air, I don't 0:04:19.000 --> 0:04:21.760 see what he's talking about. If you follow that line 0:04:21.800 --> 0:04:25.520 of thinking, then Mark Zuckerberg created money out of thin air. 0:04:26.720 --> 0:04:30.320 Jeff Bezos created money out of thin air. If you 0:04:30.400 --> 0:04:32.680 create So what Brad Sherman is saying is, if you 0:04:33.440 --> 0:04:36.560 learn how to use your mental capital. If you learn 0:04:36.600 --> 0:04:39.800 how to use your ideas to solve problems, you learn 0:04:39.880 --> 0:04:43.600 how to use your skills you developed to write code, 0:04:43.839 --> 0:04:47.960 you've learned marketing skills and organizational skills, and your business 0:04:48.040 --> 0:04:51.400 creates revenue. You've created it out of thin air. Is 0:04:51.400 --> 0:04:55.839 that what they're saying. That's what he's trying to say. Now, 0:04:56.640 --> 0:04:58.159 if you listen to the show on a regular basis, 0:04:58.200 --> 0:05:00.440 you know, I'm not a big fan of crypto currency 0:05:00.480 --> 0:05:03.640 as a category because most of it is vaporware. Most 0:05:03.640 --> 0:05:05.000 of it is a scam, and I don't use the 0:05:05.040 --> 0:05:07.480 word scam lightly. What I mean is that people think 0:05:07.480 --> 0:05:12.039 they're buying one thing, a decentralized, secure asset, and they're 0:05:12.080 --> 0:05:16.360 being sold something else that's neither decentralized nor secure, And 0:05:16.400 --> 0:05:18.680 many times there's rug poles and things like that. So 0:05:18.720 --> 0:05:20.359 I'm not a big fan of it as a category. 0:05:20.400 --> 0:05:22.840 But to say that they're printing money from thin air 0:05:23.200 --> 0:05:26.520 just shows how little Brad Sherman knows about what he's 0:05:26.560 --> 0:05:28.679 even talking about. He has no idea, of course he doesn't. 0:05:28.800 --> 0:05:32.159 He's a government bureaucrap. He's never created value in his 0:05:32.440 --> 0:05:35.360 entire life, so he has no idea what we'd say 0:05:35.360 --> 0:05:38.160 is how the sausage is made. He has no idea 0:05:38.320 --> 0:05:41.640 how businesses actually create value. He has no idea how 0:05:41.680 --> 0:05:43.840 people get paid by creating value. If he did, he 0:05:43.880 --> 0:05:47.400 would understand that what the crypto bros Have done is 0:05:47.440 --> 0:05:49.839 no different. I mean, it's different in many ways, but 0:05:50.000 --> 0:05:52.880 it is very similar to what Mark Zuckerberg did by 0:05:52.920 --> 0:05:55.240 creating a line of code in his college dorm room. 0:05:55.520 --> 0:05:59.360 And what the guys that started Airbnb from an Airbnb 0:05:59.520 --> 0:06:02.119 from a cow did. They wrote a line of code, 0:06:02.279 --> 0:06:05.440 They organized people, they created marketing, They went and raised 0:06:05.440 --> 0:06:10.719 money that created value for those people, and they made money. 0:06:11.080 --> 0:06:13.240 So the crypto ros did not create money out of 0:06:13.279 --> 0:06:16.880 thin air. They created something that enticed people to give 0:06:17.000 --> 0:06:20.719 them money US dollars. Now back to the government, the 0:06:20.800 --> 0:06:23.239 government is making money out of thin air. That's according 0:06:23.279 --> 0:06:26.640 to Brad Sherman's own words. Yes, the government is printing 0:06:26.640 --> 0:06:28.520 money out of thin air. So what are they doing 0:06:28.560 --> 0:06:32.440 to provide value? What is the government doing to provide 0:06:32.440 --> 0:06:36.920 any value to us? They're not. They didn't learn a skill. 0:06:37.040 --> 0:06:39.960 They didn't provide that skill to the marketplace. They didn't 0:06:40.000 --> 0:06:43.720 go build out marketing and go raise money. People willingly 0:06:43.920 --> 0:06:46.160 giving them money. No, that's not what the government does. 0:06:46.600 --> 0:06:50.679 The government hits a button on a keyboard to create 0:06:50.760 --> 0:06:56.320 more dollar units, not for us, not in exchange for value. 0:06:56.480 --> 0:06:59.000 They just inject those into the system. None of us 0:06:59.040 --> 0:07:00.960 get any say out of it. This and what it 0:07:01.000 --> 0:07:04.200 does instead of providing value to us, it steals our 0:07:04.279 --> 0:07:07.800 value away. Every time they create create one more currency unit, 0:07:07.920 --> 0:07:13.040 it makes the existing crypto, the existing currency units worth less, worthless. 0:07:13.360 --> 0:07:18.920 And so when you see prices going up steak, gas, milk, cheese, homes, travel, 0:07:19.000 --> 0:07:21.560 et cetera, when those prices are going up, what's really 0:07:21.600 --> 0:07:25.080 happening is the dollars are buying less and less. They're debasing. 0:07:25.160 --> 0:07:27.840 They're devaluing the dollar by creating more of them. And 0:07:27.880 --> 0:07:30.160 so it's not that prices are going up. They are, 0:07:30.480 --> 0:07:32.600 but the reason why prices are going up is because 0:07:32.640 --> 0:07:36.160 the value of that money is going down. The money 0:07:36.240 --> 0:07:38.720 buys you less, it takes more of those currency units 0:07:38.760 --> 0:07:40.840 to buy those same goods and services in the future. 0:07:41.240 --> 0:07:44.960 Now that's being done because, as Brad Truman said, the 0:07:45.040 --> 0:07:49.360 quiet part out loud, they're creating money from thin air. Now, 0:07:49.480 --> 0:07:51.680 this takes us to the big topic at hand, which 0:07:51.720 --> 0:07:54.720 is all over the news, which is the debt limit. 0:07:55.080 --> 0:07:59.880 The United States government global the number one global superpower, 0:08:00.080 --> 0:08:06.520 the homogeny, the reserve currency of the world. The United 0:08:06.520 --> 0:08:12.800 States government is broke. The United States Treasury, the treasury 0:08:12.880 --> 0:08:14.560 runs the government. It's like if you had a business, 0:08:14.560 --> 0:08:16.640 you had an accounting department. The treasury is like the 0:08:16.680 --> 0:08:20.560 accounting department. They're broke. They don't have enough income to 0:08:20.720 --> 0:08:25.120 cover their expenses, and they've taken on more debt and 0:08:25.200 --> 0:08:28.760 more debt and more debt, and now they don't have 0:08:28.840 --> 0:08:32.640 any more. So, for example, if you had a business 0:08:32.960 --> 0:08:36.720 and your expenses exceeded your income, and so you took 0:08:36.760 --> 0:08:39.959 a credit line from your bank, and then you went 0:08:40.000 --> 0:08:42.000 through that entire credit line, and you still didn't have 0:08:42.120 --> 0:08:43.760 enough revenue to cover your expenses. So then you went 0:08:43.800 --> 0:08:46.720 and got a credit card, and then you still couldn't 0:08:46.760 --> 0:08:49.000 get your business profitable, and so you took out another 0:08:49.040 --> 0:08:52.160 credit card, and then finally the bank and the credit 0:08:52.240 --> 0:08:54.680 cards are like, hang on, hang on, hang on, no 0:08:54.760 --> 0:08:59.120 more credit for you. That's where the government's at five trillion, 0:08:59.160 --> 0:09:02.640 ten trillion, trillion, thirty trillion, thirty two trillion, and the 0:09:02.679 --> 0:09:05.960 government still can't be profitable. And now the credit lines 0:09:06.000 --> 0:09:08.280 are cut off. If you're just tune in, you're listening 0:09:08.360 --> 0:09:11.000 to the Mark Maas Show talking about the decentralized Revolution. 0:09:11.320 --> 0:09:13.720 We're running through some big stuff. We're gonna talk about 0:09:13.720 --> 0:09:16.600 the treasury has only two weeks of money left, why 0:09:16.640 --> 0:09:19.360 the government default is more likely than ever, and the 0:09:19.360 --> 0:09:20.839 big problem. I'll be back with that in a more 0:09:20.920 --> 0:09:22.760 in a minute. Don't go away, all right, welcome back. 0:09:22.760 --> 0:09:24.160 If you're just tune in and you were listening to 0:09:24.200 --> 0:09:26.840 the Mark mass Show, of course, always talking about the 0:09:26.920 --> 0:09:32.080 decentralized Revolution. We're talking about how our lawmakers are now 0:09:32.160 --> 0:09:34.200 saying the quiet part out loud. Brad Sherman says, Hey, 0:09:34.240 --> 0:09:36.120 you crypto bros. Created money out of thin air. You 0:09:36.120 --> 0:09:39.440 can't do that, but we're the government. We do. I 0:09:39.480 --> 0:09:41.160 explained that I'm not gonna go through that again, but 0:09:42.160 --> 0:09:44.160 the government needs to create more money out of thin 0:09:44.200 --> 0:09:48.520 air because the government, the US Treasury is broke literally 0:09:48.800 --> 0:09:51.400 meaning broke. As a matter of fact, let's hear directly 0:09:51.840 --> 0:09:55.480 from the head of the US Treasury again, kind of 0:09:55.679 --> 0:09:59.559 in a business analogy, this would be like your CFO 0:09:59.679 --> 0:10:02.839 telling you, let's hear exactly what Janet Yellen, the head 0:10:02.840 --> 0:10:05.920 of US Treasury is saying about this debt default that's 0:10:05.960 --> 0:10:06.679 looming here. 0:10:06.800 --> 0:10:12.200 Well, you know, I would say that if Congress doesn't 0:10:12.440 --> 0:10:16.600 raise the debt ceiling, the president will have to make 0:10:16.640 --> 0:10:21.640 some decisions about what to do with the resources that 0:10:21.760 --> 0:10:25.720 we do have. And there are a variety of different options, 0:10:26.160 --> 0:10:29.760 but there are no good options. Every option is a 0:10:29.800 --> 0:10:30.520 bad option. 0:10:33.559 --> 0:10:36.199 First of all, that wasn't a bad signal. That's just 0:10:36.240 --> 0:10:40.600 how she talks. She has to labor over every single word, 0:10:41.120 --> 0:10:45.959 So that's how she talks about. There's no good options. Yeah, 0:10:46.000 --> 0:10:49.480 who would want to cut back on their spending? Who 0:10:49.559 --> 0:10:52.360 would want to live within a budget? Those are not 0:10:52.520 --> 0:10:55.400 good options. She says that the president will have to 0:10:55.400 --> 0:11:02.880 make some very difficult decisions. Yeah, not increasing the spending 0:11:02.920 --> 0:11:06.200 when you don't have the money. Those are very difficult decisions. Now, 0:11:06.520 --> 0:11:08.200 if you tune in regularly, you kind of already know 0:11:08.200 --> 0:11:09.840 this I talk about this has already been framed up. 0:11:09.880 --> 0:11:13.360 But look, this isn't a partisan thing. I don't want 0:11:13.400 --> 0:11:16.440 to turn this into a Republican Democrat. We happen to 0:11:16.440 --> 0:11:18.520 have a Democrat Biden in the office. Now we had 0:11:19.080 --> 0:11:21.840 a Republican with Trump in before Trump spent more money 0:11:21.840 --> 0:11:23.920 than any president before him, and Biden wants to spend 0:11:23.920 --> 0:11:25.719 even more. Every president wants to spend more, and the 0:11:25.760 --> 0:11:28.000 reason why is because we are in a debt based 0:11:28.040 --> 0:11:30.880 monetary system, which means the debt has to constantly expand 0:11:31.320 --> 0:11:33.880 or the whole thing falls apart. So it's not red 0:11:33.960 --> 0:11:37.680 or blue. Trump spent more than before him, and Biden 0:11:37.679 --> 0:11:39.880 wants to spend even more. But Biden has come out 0:11:40.160 --> 0:11:44.600 like swinging like crazy, passing like all types of bills 0:11:44.679 --> 0:11:47.520 like the Inflation Reduction Act, and they want to spend 0:11:47.600 --> 0:11:51.880 one point seven trillion dollars on all these new programs 0:11:51.920 --> 0:11:53.760 like eighty billion to bring on a whole bunch of 0:11:53.840 --> 0:11:58.760 new IRS, agents, types of things like that, and you know, 0:11:58.920 --> 0:12:01.160 millions hundreds of million dollars to give to other countries 0:12:01.200 --> 0:12:04.120 to study gender studies and things like that. Money that 0:12:04.160 --> 0:12:06.960 probably doesn't need to be spent. Money that might be 0:12:07.400 --> 0:12:09.680 good to be spent if you wanted to and you 0:12:09.679 --> 0:12:11.560 had some extra money and you thought it was worthwhile, 0:12:11.720 --> 0:12:14.960 but certainly not when you're broke and your income is 0:12:14.960 --> 0:12:18.520 expen your income is your expenses are exceeding your income, 0:12:18.600 --> 0:12:21.520 so no good options left. Now, let's talk about some 0:12:21.600 --> 0:12:25.120 of these options. So option one is the Republican said, look, 0:12:25.160 --> 0:12:27.600 here's what we'll do. Will allow you to increase the 0:12:27.640 --> 0:12:32.880 debt ceiling another one point five trillion dollars, but you're 0:12:32.880 --> 0:12:34.320 going to have to cut a couple of things because 0:12:34.320 --> 0:12:36.040 that's not gonna be enough money. So a couple things 0:12:36.080 --> 0:12:37.600 you have to cut would be like cut some of 0:12:37.600 --> 0:12:41.640 this these IRS agents for example. Also, you're going to 0:12:41.679 --> 0:12:44.640 need to cancel that student loan forgiveness that you put 0:12:44.679 --> 0:12:46.200 through because we don't really have the money to do that. 0:12:47.640 --> 0:12:49.400 And also, what we want to do is we want 0:12:49.440 --> 0:12:51.559 to start getting energy out of the United States against 0:12:51.559 --> 0:12:53.760 we can become energy independent because that will really unleash 0:12:53.800 --> 0:12:55.520 the economy and allow us to grow out of this. 0:12:55.840 --> 0:12:58.960 And Biden says no deal. So when jan yone's saying 0:12:59.200 --> 0:13:01.400 that he has to make some tough decisions, one of 0:13:01.440 --> 0:13:04.640 the tough decisions would be, am I willing to spend 0:13:04.720 --> 0:13:07.440 less money in the future? Still increase it? Still go 0:13:07.520 --> 0:13:10.640 up by one point five trillion, but less than I want? 0:13:10.679 --> 0:13:12.640 And that's where the stealmate is. I want you to 0:13:12.720 --> 0:13:16.560 understand that the stellmate is the one point five trillion 0:13:16.840 --> 0:13:20.240 more isn't good enough And that's what they're fighting over. 0:13:20.400 --> 0:13:24.920 Now there's talks of a government default, and that is 0:13:25.000 --> 0:13:28.079 really running hot. As a matter of fact, that seems 0:13:28.120 --> 0:13:32.760 to be the base case that's going on here. Let's 0:13:32.800 --> 0:13:35.720 play this clip from Janet Yellen and hear directly from 0:13:35.720 --> 0:13:38.480 her on what she's saying about this is. 0:13:38.480 --> 0:13:43.360 If re Treasury secretary has known the only option that 0:13:43.600 --> 0:13:47.600 really leaves our economy in good shape is and our 0:13:47.679 --> 0:13:52.400 financial system is raising the dead ceiling and making clear 0:13:52.559 --> 0:13:58.560 that Congress stands behind the basic principle that America pays 0:13:58.600 --> 0:14:01.520 its bills. We're not beat contract. 0:14:03.600 --> 0:14:08.760 So every economist knows, right, every economist knows that the 0:14:08.960 --> 0:14:12.640 only way forward is for the US government to continue 0:14:12.720 --> 0:14:16.520 to raise the debt ceiling, otherwise it leaves our economy 0:14:16.520 --> 0:14:19.400 in bad shape. Like what like, hang on, did you 0:14:19.480 --> 0:14:21.760 know that? Let me know? If you know that, hit 0:14:21.760 --> 0:14:23.240 me up on social media. I want to hear from 0:14:23.240 --> 0:14:24.840 you guys. Hit me up on social media at one 0:14:24.920 --> 0:14:27.240 Mark Moss on Instagram or Twitter. I'm pretty active on 0:14:27.280 --> 0:14:29.560 both those platforms, And let me know, did you know that? 0:14:29.680 --> 0:14:32.480 Did you know that? Every economist knows that we have 0:14:32.680 --> 0:14:35.040 to increase the debt ceiling in order to continue to 0:14:35.080 --> 0:14:38.680 pay our bills. Now more people are waking up to 0:14:38.720 --> 0:14:40.640 this than ever before. So this is a good thing 0:14:40.800 --> 0:14:42.800 in a long term perspective because people are starting to 0:14:42.800 --> 0:14:45.440 wake up to this. But listen to the sheer insanity 0:14:45.520 --> 0:14:48.200 of that. Everyone knows we have to increase the debt 0:14:48.240 --> 0:14:50.640 ceiling in order to pay our bills. So that's going 0:14:50.640 --> 0:14:52.840 back to your business analogy. Your bank won't give you 0:14:52.840 --> 0:14:55.160 another credit line, you can't get any more credit cards, 0:14:55.200 --> 0:14:56.760 and you go back to the bank and say, look, 0:14:57.000 --> 0:14:59.440 everyone knows if you don't give me another credit line, 0:14:59.520 --> 0:15:03.200 my business goes under. What's the bank going to tell you? 0:15:04.520 --> 0:15:06.240 Can tell you to pound sand I mean, that's the 0:15:06.240 --> 0:15:09.480 most ridiculous thing ever. But then the final part that 0:15:09.520 --> 0:15:12.440 she said so that other nations don't think we're a 0:15:12.480 --> 0:15:15.760 deadbeat nation. So imagine again, going back to your bank. 0:15:16.120 --> 0:15:17.360 I know you said you won't give me to our 0:15:17.400 --> 0:15:19.600 credit lines, and I know I've maxed out fifteen credit cards, 0:15:20.360 --> 0:15:22.360 but look, if you don't give me, if you don't 0:15:22.360 --> 0:15:24.400 give me another credit line, you know my business is 0:15:24.400 --> 0:15:26.240 going to go under and people will think I'm a 0:15:26.280 --> 0:15:31.400 deadbeat company. Think about that, Well, if you can't pay 0:15:31.400 --> 0:15:33.720 your bills, you're not profitable, You've taken on more and 0:15:33.720 --> 0:15:35.880 more debt that you have no way of ever repaying. 0:15:37.240 --> 0:15:40.120 Aren't you a deadbeat company? You're not going to pay 0:15:40.120 --> 0:15:43.960 those people their money back. Why would anyone loan you 0:15:44.440 --> 0:15:47.440 are deadbeat? So what she's saying is wrong. I put 0:15:47.440 --> 0:15:50.720 out a tweet. I believe it was yesterday earlier this week, 0:15:50.760 --> 0:15:54.400 I forget exactly what day, and I showed a chart 0:15:55.040 --> 0:15:56.640 and I like to I like to post a lot 0:15:56.640 --> 0:15:59.160 of charts on my main YouTube channel, Mark Moss, as 0:15:59.200 --> 0:16:01.360 well as on Twitter as well. Again, follow me on 0:16:01.360 --> 0:16:03.240 those platforms if you're not. And I like to show 0:16:03.240 --> 0:16:05.280 the charts because I want to show you the size 0:16:05.360 --> 0:16:07.600 and the speed of these moves. And the chart comes 0:16:07.600 --> 0:16:10.280 from FRED, which is the Federal Reserves Data Board, and 0:16:10.320 --> 0:16:13.680 it showed that the interest on the debt, So again 0:16:13.680 --> 0:16:15.400 they want to raise the debts in from thirty one 0:16:15.480 --> 0:16:17.320 trillion to you know, almost thirty two to another one 0:16:17.360 --> 0:16:20.360 and a half. The interest that's owed on that debt 0:16:20.480 --> 0:16:23.720 is now equal to the amount of money that we 0:16:23.760 --> 0:16:28.120 spend just on defense spending for the military. So we're 0:16:28.120 --> 0:16:30.800 paying just as much on debt as we are on defense. 0:16:30.920 --> 0:16:34.960 Now we spend. We spend more on defense than the 0:16:35.000 --> 0:16:41.440 next ten countries combined combined. So everyone from number two China, Russia, everybody, 0:16:41.840 --> 0:16:44.600 the next ten people, we spend more than that combined. Now, 0:16:44.800 --> 0:16:47.240 so the debt, the interest on the debt is more. 0:16:47.280 --> 0:16:50.120 Now does that sound bad? Did you know that the 0:16:50.120 --> 0:16:52.760 Federal Reserve has raised rates at the highest and fastest 0:16:52.840 --> 0:16:56.040 rate in history. And when the debt was taken on, 0:16:56.360 --> 0:17:00.119 we were in the zero zero point five range. Today 0:17:00.160 --> 0:17:05.440 we're at five percent. About thirty percent of that debt, 0:17:05.720 --> 0:17:08.960 the thirty two trillion dollars has to be refinanced in 0:17:09.040 --> 0:17:13.600 the next twelve months at these new five percent rates. 0:17:14.000 --> 0:17:16.720 What do you think happens when you refinance thirty percent 0:17:16.840 --> 0:17:21.320 of your thirty two trillion from zero percent to five percent? 0:17:21.480 --> 0:17:23.560 Like if you took on thirty percent of your debt 0:17:23.600 --> 0:17:25.400 for your business, you had got like on a zero 0:17:25.680 --> 0:17:27.920 rate transfer credit card, and then all of a sudden 0:17:27.920 --> 0:17:29.680 it resets at five percent. What is that going to 0:17:29.720 --> 0:17:31.919 do to you in a time when the interest is 0:17:32.000 --> 0:17:35.080 already meeting or exceeding defense spending, in a time when 0:17:35.119 --> 0:17:39.159 you can't already make those obligations. It's insanity. If you're 0:17:39.160 --> 0:17:40.960 just tuning in, you're listening to the Mark Mas Show. 0:17:40.960 --> 0:17:44.399 We're talking about the insanity of the debt crisis that's happening, 0:17:44.400 --> 0:17:46.200 the unsustainable debt. I got a lot more to cover 0:17:46.240 --> 0:17:49.680 when I come back on the potential for a government default, 0:17:49.680 --> 0:17:52.439 which is I'm thinking is probably the base case. It 0:17:52.480 --> 0:17:54.480 looks like that's where we're headed. What does that mean 0:17:54.480 --> 0:17:57.479 and what are the possible solutions to protect yourself and 0:17:57.520 --> 0:17:59.119 profit from all this. We'll talk about all that in 0:17:59.160 --> 0:18:01.320 a minute when I come back. Don't go away, I'll 0:18:01.359 --> 0:18:04.159 be right back. All right, Welcome back. If you just 0:18:04.160 --> 0:18:06.479 tune in, you're listening to the Mark mass Show. Taking 0:18:06.520 --> 0:18:09.400 it through this debt crisis that we're in. We've been 0:18:09.400 --> 0:18:12.200 covering how the government admitted that they're printing money from 0:18:12.240 --> 0:18:15.840 thin air and now this debt crisis that's looming now. 0:18:15.880 --> 0:18:19.720 I talked about the government having only less than two 0:18:19.840 --> 0:18:22.919 weeks of money left. Now, of course they show us this. 0:18:22.960 --> 0:18:24.359 They show us how much money they have in their 0:18:24.359 --> 0:18:26.760 reserve account and so we can see their checking account. 0:18:26.760 --> 0:18:29.280 We can also see how fast it's been drawing down. 0:18:29.400 --> 0:18:33.280 So we basically just extrapolate what the current burn rate 0:18:33.359 --> 0:18:35.639 is and then based off this current burn rate, how 0:18:35.760 --> 0:18:38.160 much do you have left? And then how long will 0:18:38.160 --> 0:18:42.160 that last? It's not hard to do, simple elementary math, 0:18:42.240 --> 0:18:44.760 almost right, And so all we can see is that 0:18:45.040 --> 0:18:48.600 based off of those numbers, we see that we have 0:18:48.960 --> 0:18:52.960 about two weeks left. The treasury account is down to 0:18:53.560 --> 0:18:56.840 one hundred and eighty five billion, which is a lot 0:18:56.880 --> 0:19:00.760 of money, but not when you're talking about trillillions of dollars. 0:19:00.800 --> 0:19:04.399 The government is running a two point two trillion dollar 0:19:04.640 --> 0:19:07.680 deficit right now, so that means the deficit means that 0:19:07.720 --> 0:19:12.480 their expenses exceed their income by two point two trillion. Now, 0:19:13.280 --> 0:19:16.440 the treasury has one hundred and eighty five billion, The 0:19:16.480 --> 0:19:23.120 cash balance is down just down thirty billion just from yesterday, 0:19:23.160 --> 0:19:26.560 and only two point two billion in tax revenue came in, 0:19:26.920 --> 0:19:29.359 because right, we have tax revenue coming in and tax 0:19:29.359 --> 0:19:31.280 you know, taxes were doing April fifteenth last month, and 0:19:31.320 --> 0:19:33.520 so the tax revenue is coming in, but they most 0:19:33.520 --> 0:19:35.920 of that tax revenue is already in, like you should 0:19:35.920 --> 0:19:38.639 have already paid that that's already in, which had a 0:19:38.680 --> 0:19:40.280 little bit more trickle in two point two billion, but 0:19:40.320 --> 0:19:43.760 we withdrew thirty you know what I'm saying. The expenses 0:19:43.760 --> 0:19:46.760 are way exceeding the income. And so at this runway 0:19:46.800 --> 0:19:50.920 we have about two weeks left. Now, this is obviously unsustainable. 0:19:51.760 --> 0:19:54.959 I don't have to an elementary kid could figure that out. 0:19:54.960 --> 0:19:58.400 That's unsustainable. The US government debt has gone from one 0:19:58.480 --> 0:20:04.199 point two trillion to thirty one point four trillion just 0:20:04.240 --> 0:20:11.399 since nineteen eighty. Thirty times in thirty years, well I 0:20:11.400 --> 0:20:15.600 guess without forty years, thirty times in forty years one 0:20:15.640 --> 0:20:17.439 point two jollion to thirty one point four jollion. That 0:20:17.480 --> 0:20:20.520 is not sustainable. In nineteen eighty, going back to the 0:20:20.520 --> 0:20:24.120 one point two trillion, the debt to GDP. So back 0:20:24.160 --> 0:20:27.639 to a business, you have your your revenue, your gross revenue, 0:20:27.680 --> 0:20:29.639 the amount of products that you produce, goods and service 0:20:29.640 --> 0:20:31.679 that you produce, and then you have your debt. In 0:20:31.800 --> 0:20:34.720 nineteen eighty, the debt in the United States government debt 0:20:34.800 --> 0:20:38.920 to the GDP was twenty six percent. This year it's 0:20:38.960 --> 0:20:43.640 one hundred and twenty three percent. So what does that mean, Well, 0:20:43.680 --> 0:20:45.480 that means that what they do is they take on debt. 0:20:45.560 --> 0:20:47.040 Just like your business. You would take on debt to 0:20:47.040 --> 0:20:48.639 buy a new piece of equipment, a new van, new 0:20:48.680 --> 0:20:51.080 truck hire somebody, and you hope that by buying that 0:20:51.119 --> 0:20:53.320 new piece of equipment, and you take on that little 0:20:53.320 --> 0:20:55.600 bit of debt, you know it's going to cost you 0:20:55.600 --> 0:20:56.880 one hundred bucks a month to add on this piece 0:20:56.880 --> 0:20:58.680 of equipment, but that piece equipment should make you five 0:20:58.760 --> 0:21:01.800 hundred a month. So you take on one dollar of 0:21:01.840 --> 0:21:04.960 debt to add five dollars of revenue. That'd be the goal. 0:21:05.320 --> 0:21:06.959 And that's what the United States government has done, right. 0:21:06.960 --> 0:21:09.200 They're trying to take on debt to try to grow. 0:21:09.440 --> 0:21:11.840