WEBVTT - Central Banking, Warnings & Inflation 0:00:00.080 --> 0:00:02.600 Welcome to another episode of the Mark Moas Show, where 0:00:02.640 --> 0:00:05.520 we talk about bitcoin, we talk about cryptocurrencies, we talk 0:00:05.600 --> 0:00:10.240 about the decentralized revolution, and we're trying to make sense 0:00:10.280 --> 0:00:14.080 of this out of control world as these central bankers 0:00:14.080 --> 0:00:17.720 continue to destroy um any and all relationship to money, 0:00:18.000 --> 0:00:22.040 and we're basically narrating the path of destruction that is 0:00:22.120 --> 0:00:23.520 left in their way. We've got a lot of stuff 0:00:23.520 --> 0:00:26.320 to cover today. Um as we look at the decentralized 0:00:26.360 --> 0:00:28.560 revolution that's happening in the world. Of course, that's why 0:00:28.600 --> 0:00:31.280 the world is so crazy, and we really try to 0:00:31.320 --> 0:00:33.720 look at it from the lens of three perspectives, and 0:00:33.720 --> 0:00:38.519 that's uh, politics, finance, and technology. Of course, bitcoin is 0:00:38.600 --> 0:00:41.239 leading that charge with a decentralized revolution. And if you 0:00:41.360 --> 0:00:44.120 understand the politics, finance, and technology and how the three 0:00:44.159 --> 0:00:46.720 of those things come together, it helps us understand where 0:00:46.720 --> 0:00:49.599 we're at today and of course more importantly, where we 0:00:49.680 --> 0:00:52.760 are going. That's what everyone's trying to figure out, Uh, 0:00:53.280 --> 0:00:58.040 myself included. We're at a very uncertain time the world. 0:00:58.160 --> 0:01:01.760 Probably it seems to be more uncertain than any time 0:01:02.360 --> 0:01:05.600 in history at least that I can think of. Now. 0:01:05.760 --> 0:01:09.160 The way that we beat uncertainty is with optionality. So 0:01:09.240 --> 0:01:11.240 the more options we have, the more prepared we are 0:01:11.280 --> 0:01:14.039 for whatever may come. That makes sense, obviously, And one 0:01:14.040 --> 0:01:16.680 of the best ways that we get that optionality is 0:01:16.800 --> 0:01:21.119 with money. Money helps us have that optionality. So um, 0:01:21.120 --> 0:01:22.479 that's one of the reasons why I like to focus 0:01:22.480 --> 0:01:24.240 on it, so I can make sure that I'm I 0:01:24.319 --> 0:01:27.119 have options to protect myself, my family, and so much more. 0:01:27.360 --> 0:01:29.600 And if you tune in each and every week with me, 0:01:29.959 --> 0:01:31.920 I'll make sure that you are up to date and 0:01:32.000 --> 0:01:35.639 equipped to handle the uncertainty that is facing us that's ahead. 0:01:35.640 --> 0:01:38.640 So if you haven't already, make sure to put a 0:01:38.680 --> 0:01:41.039 calendar on your phone to join me each and every 0:01:41.080 --> 0:01:43.880 week on this same time, this same channel, so we 0:01:43.959 --> 0:01:46.920 can keep you update on what is going on. Now. 0:01:46.920 --> 0:01:49.760 There's a lot going on each and every week, so 0:01:49.800 --> 0:01:52.040 I love to get together and kind of explain to 0:01:52.160 --> 0:01:55.640 what I'm seeing and there's there's big news that happens, 0:01:55.680 --> 0:01:58.560 although it seems to be the same stories kind of 0:01:58.600 --> 0:02:01.400 continuing to roll over. For example, one of the things 0:02:01.400 --> 0:02:03.200 I've been talking about for like the last you know, 0:02:03.360 --> 0:02:07.200 eight months or so, is the big the big word, 0:02:07.240 --> 0:02:10.320 the hottest word being used today, and that is inflation. 0:02:11.360 --> 0:02:13.400 And of course we talk about inflation, but but the 0:02:13.440 --> 0:02:15.520 way that we talk about it has changed a lot 0:02:15.600 --> 0:02:18.720 over time. It went from a matter of fact, I 0:02:18.720 --> 0:02:21.760 was just looking at this yesterday, the Fed was saying 0:02:21.800 --> 0:02:24.440 they can't get enough inflation. They can't get it no 0:02:24.480 --> 0:02:27.640 matter what they do. Twelves since two thousand twelve, they 0:02:27.680 --> 0:02:30.600 haven't been able to get their inflation target of two percent. 0:02:31.280 --> 0:02:32.960 And so if we were talking about inflation back then, 0:02:33.040 --> 0:02:34.920 it was in a sense that they couldn't get the 0:02:34.960 --> 0:02:38.240 inflation that they wanted. Now, Um, if any of you 0:02:38.320 --> 0:02:42.680 are gold bugs or sound money advocates or bitcoin crypto advocates, 0:02:42.680 --> 0:02:46.040 then you might be asking yourself, um, why is there 0:02:46.080 --> 0:02:49.079 a target for inflation? Anyway, which is a pretty good 0:02:49.160 --> 0:02:53.400 question to have. The Fed targets a two percent inflation, 0:02:53.480 --> 0:02:57.519 which basically means their target is for you to lose 0:02:57.600 --> 0:03:01.960 two percent of your wealth every single year. Now, why 0:03:02.000 --> 0:03:04.760 would they have a target to steal two percent of 0:03:04.800 --> 0:03:06.880 your wealth every year? That doesn't really sound like a 0:03:06.880 --> 0:03:10.400 good target to me. Nevertheless, that is their target. And 0:03:10.440 --> 0:03:13.480 so like I said, uh, there's some headlines saying we 0:03:13.600 --> 0:03:15.600 can't get it, we can't get the inflation up into 0:03:16.480 --> 0:03:18.720 we can't get the inflation that we want, and so 0:03:18.840 --> 0:03:22.480 the FED said that we're gonna, quote, let it run hot. 0:03:22.840 --> 0:03:25.480 What does that mean? That means that, uh, well, we 0:03:25.520 --> 0:03:28.240 can't get to the two percent that we want. So 0:03:28.280 --> 0:03:30.359 we're just gonna go in guns blazing and we're gonna 0:03:30.400 --> 0:03:32.839 throw everything, everything in the kitchen sink against the wall. 0:03:32.880 --> 0:03:35.880 See what sticks. And we're probably gonna way overshoot the 0:03:35.880 --> 0:03:39.360 two percent number, um, because we have to do everything 0:03:39.400 --> 0:03:41.600 that we can think of, and so we'll probably overstood 0:03:41.720 --> 0:03:43.360 the two percent number. But that's fine. We're gonna let 0:03:43.360 --> 0:03:45.120 it run hot. We're gonna go higher. We don't care, 0:03:45.200 --> 0:03:50.720 three four whatever. And they started talking about a blended number. Well, 0:03:50.760 --> 0:03:53.240 you know, since we've been below two percent for so long, 0:03:53.400 --> 0:03:55.839 if we get above two percent, that's find it averages out. 0:03:55.920 --> 0:03:58.640 And so that's what they did. They let it run 0:03:58.840 --> 0:04:02.160 hot in their own words, And here we are hot. 0:04:02.240 --> 0:04:04.760 We're at a high I haven't seen since the about 0:04:04.920 --> 0:04:07.960 four decades ago, since the eighties, running eight point six 0:04:08.000 --> 0:04:10.440 per cp I inflation, which is of course is a 0:04:10.440 --> 0:04:12.240 manipulated number. I talked about that all the time. I'm 0:04:12.240 --> 0:04:15.920 not going to dig into that but again, we're talking 0:04:15.920 --> 0:04:17.520 a lot about inflation. Now, why do we talk about 0:04:17.520 --> 0:04:20.200 inflation when we're talking about the decentralized revolution, we talked 0:04:20.200 --> 0:04:23.719 about bitcoin of cryptocurrencies. Well, the big reason why is 0:04:23.760 --> 0:04:27.320 because all of this, all of these problems that we have. 0:04:27.400 --> 0:04:29.400 Are we going into recession? Are we going to see 0:04:29.440 --> 0:04:32.440 stagflation where the markets crash, where the markets go back up? 0:04:32.920 --> 0:04:37.760 All of that revolves around the central banks, the Federal 0:04:37.839 --> 0:04:43.840 Reserve controlling the money. If they increase the money supply 0:04:44.040 --> 0:04:47.760 by lower and interest rates, then we have boom times. 0:04:48.120 --> 0:04:51.120 Things are great, businesses booming, your buying equipment, you're expanding 0:04:51.120 --> 0:04:53.679 your business, you're buying bigger houses, you're getting new cars. 0:04:53.800 --> 0:04:56.479 Everything's happy, everyone everyone's happy. Everything is good. And when 0:04:56.480 --> 0:05:01.520 they decide to then restrict or decrease money supply, things 0:05:01.560 --> 0:05:04.320 go very badly and everything crashes and you lose everything. 0:05:04.800 --> 0:05:07.360 And so the reason why we're talking about this specifically 0:05:07.480 --> 0:05:12.039 is more in the reason as to why why UM 0:05:12.160 --> 0:05:14.520 is the finance system that we have completely corrupted to 0:05:14.560 --> 0:05:16.839 the core, not just corrupted from the people that run it, 0:05:16.880 --> 0:05:19.880 but it's inherently flawed the fact that anybody runs it. 0:05:20.480 --> 0:05:24.440 UM Why and why A new system that nobody can 0:05:24.480 --> 0:05:28.719 control would be such a better system. Now, a lot 0:05:28.760 --> 0:05:31.640 of people don't understand this because they don't understand how 0:05:31.680 --> 0:05:35.280 the financial system works. They don't understand how these problems 0:05:35.279 --> 0:05:39.400 that the central bankers caused by arbitrarily changing the monetary 0:05:39.400 --> 0:05:42.160 supply whenever they feel like it, UM, they don't understand 0:05:42.160 --> 0:05:44.760 how that impacts them. And so a lot of times 0:05:44.800 --> 0:05:47.840 when you present people with a better solution, how maybe 0:05:47.880 --> 0:05:50.000 going back to a gold back currency might be a 0:05:50.000 --> 0:05:52.839 better option, going something to like a decentralized ledger like 0:05:52.880 --> 0:05:55.159 bitcoin that nobody can control, how that might be a 0:05:55.160 --> 0:05:58.440 better option, they can't understand that because they don't understand 0:05:58.480 --> 0:06:01.880 the problems that the existing system is causing in their 0:06:01.880 --> 0:06:03.080 own lives. And so we spent a lot of time 0:06:03.120 --> 0:06:05.320 talking about that, and so I want to dig through that. 0:06:05.520 --> 0:06:07.640 We want to talk about what's going on with the 0:06:07.640 --> 0:06:10.200 financial system with inflation. We're gonna talk about what the 0:06:10.240 --> 0:06:13.000 central bank, what the Federal Reserve UM is saying. I 0:06:13.480 --> 0:06:15.280 got some audio clips that I'm gonna play for you. 0:06:15.560 --> 0:06:18.320 M Jerome Pale, head of the Faroer Reserve, was UM 0:06:18.360 --> 0:06:22.039 testifying before Congress today. I pulled some clips for that. UM. 0:06:22.080 --> 0:06:25.159 I want to go into somebody that we should be 0:06:25.200 --> 0:06:28.800 listening to. UM. He is a former head of the 0:06:28.800 --> 0:06:32.760 New York Federal Reserve, head of the FMOC Federal Open 0:06:32.760 --> 0:06:36.479 Market Committee Board, UM previously with Goldman Sachs. I mean, 0:06:36.480 --> 0:06:38.760 this guy is connected and that we should listen to 0:06:38.760 --> 0:06:40.440 what he has to say. And I'm going to tell 0:06:40.440 --> 0:06:41.680 you what he has to say because you should be 0:06:41.680 --> 0:06:44.080 listening to it. We're gonna talk about some warnings that 0:06:44.200 --> 0:06:47.560 Ray Dalio has been giving us. Now, Raydalio is one 0:06:47.600 --> 0:06:49.440 of the one of the richest men in the world, 0:06:49.600 --> 0:06:51.680 head of one of the head of the largest hedge 0:06:51.720 --> 0:06:55.000 fund in the world, Bridgewater Capital, and when he talks, 0:06:55.560 --> 0:06:57.520 people tend to listen. I tend to listen. So I'm 0:06:57.520 --> 0:07:00.120 gonna talk about some things that he said. I had 0:07:00.160 --> 0:07:03.000 some more clips that we're gonna play for you. UM. 0:07:03.040 --> 0:07:05.720 And then we're gonna talk about the state of the 0:07:05.720 --> 0:07:08.359 markets that we're in today. UM, what the Fed is, 0:07:09.200 --> 0:07:12.280 canon can't do, what they will and won't do. UM, 0:07:12.360 --> 0:07:14.560 talk about the danger in the liquid markets, talk about 0:07:14.560 --> 0:07:19.680 how that affects the cryptocurrency markets and general markets overall, UM, 0:07:19.720 --> 0:07:21.480 and so much more. Man I got a lot to cover. 0:07:21.480 --> 0:07:23.040 Hopefully we can get through all that today. By the way, 0:07:23.040 --> 0:07:25.760 you're listening to the Mark Masha, we're talking about the 0:07:25.920 --> 0:07:29.680 decentralized revolution, talking about how the world is swinging. The 0:07:29.720 --> 0:07:32.760 pendulum of the world is swinging from centralization to decentralization, 0:07:33.200 --> 0:07:35.480 and that is leading to this world being so crazy. 0:07:35.520 --> 0:07:37.640 Of course, is being led by bitcoin and the decentralized 0:07:37.680 --> 0:07:42.480 technology boom that we have. So um, yeah, let's get 0:07:42.480 --> 0:07:45.120 back to it. We're talking about inflation again for the 0:07:45.200 --> 0:07:47.560 eighth month in a row, but talking about it in 0:07:47.680 --> 0:07:50.440 a different light, in a different way. And so like 0:07:50.480 --> 0:07:54.960 I said, first of all, um, the FED, the Federal Reserve, 0:07:55.000 --> 0:07:58.120 the Central Bank, they're tasked with two main things. It's 0:07:58.120 --> 0:08:04.040 called a dual mandate. So mandate number one is stable prices. 0:08:04.720 --> 0:08:09.360 So like when gas doubled, that's not very stable. When 0:08:09.480 --> 0:08:13.400 price of real estate doubled, that's not very stable. Um, 0:08:13.920 --> 0:08:15.480 When every time you go to the grocery store to 0:08:15.480 --> 0:08:18.760 buy milk and cheese and bread, um, and meat, your 0:08:19.000 --> 0:08:21.320 bills are more expensive. Every time you go to fill 0:08:21.360 --> 0:08:23.360 up your gas tank you get less gas in your car, 0:08:23.920 --> 0:08:27.120 that's not what I would consider stable prices. So if 0:08:27.160 --> 0:08:29.240 I had to give them a score of, you know, 0:08:30.080 --> 0:08:32.920 like school. I'd probably give them an F a failing 0:08:32.960 --> 0:08:35.320 grade on that because the prices are anything but stable. Now. 0:08:35.760 --> 0:08:37.079 I guess if you want to look at it on 0:08:37.120 --> 0:08:40.240 a sliding scale, it's a little bit more stable than Venezuela, 0:08:40.559 --> 0:08:43.000 but that's a pretty low bar to meat. Um, we're 0:08:43.000 --> 0:08:44.800 gonna talk about that. We're gonna talk about, Like I said, 0:08:44.800 --> 0:08:46.520 I have these clips that I want to play directly 0:08:46.559 --> 0:08:48.840 so you can hear directly from their mouth. Um, some 0:08:48.920 --> 0:08:50.280 of the some of the questions they were asked from 0:08:50.280 --> 0:08:51.679 the committee, and we're gonna look at some of the 0:08:51.679 --> 0:08:55.840 FED insiders what they told us that's coming. I take 0:08:55.880 --> 0:08:57.920 them at their word. I listened to what they say 0:08:57.960 --> 0:08:59.240 and I prepare for it. And I'm gonna tell you 0:08:59.240 --> 0:09:01.600 what they said, and you better be prepared. I'm gonna 0:09:01.600 --> 0:09:04.120 listening to the Mark Moa show talking about the decentralized revolution, 0:09:04.160 --> 0:09:08.040 talking about bitcoin, talking about politics, finance, and technology and 0:09:08.080 --> 0:09:12.000 how the convergence of those three is changing the world 0:09:12.200 --> 0:09:15.320 as we know it. And like I said, I got 0:09:15.360 --> 0:09:18.720 a lot to cover today, including warnings from Radalio. UM, 0:09:18.760 --> 0:09:22.319 including warnings from the traditional markets to the crypto markets. 0:09:23.240 --> 0:09:27.000 And so much more. So good actuable information for you today. 0:09:27.080 --> 0:09:29.280 I got a lot to cover when I come back 0:09:29.280 --> 0:09:31.880 in a minute. And don't go away, all right, welcome back. 0:09:31.880 --> 0:09:34.720 You are listening to the Mark Moa Show talking about bitcoin, 0:09:35.080 --> 0:09:40.360 the decentralized revolution, and navigating the craziness of this out 0:09:40.360 --> 0:09:43.800 of control world because of what these bankers have done. 0:09:44.040 --> 0:09:47.000 Now we're talking about inflation again for the eighth month 0:09:47.040 --> 0:09:49.439 in a row, because it's such a hot topic. We're 0:09:49.440 --> 0:09:52.400 talking about the way that is changing over time. And 0:09:52.640 --> 0:09:55.040 so I was talking about the narratives that we couldn't 0:09:55.040 --> 0:09:57.880 get the inflation even in we couldn't get the inflation, 0:09:58.880 --> 0:10:00.520 let's let it run hot. Let's see what we can do. 0:10:00.679 --> 0:10:02.800 And here we are way too much inflation. And so 0:10:02.880 --> 0:10:05.280 now they're like, oh, shoot, it's way too high. What 0:10:05.280 --> 0:10:07.560 are we gonna do about it? And um, you know, 0:10:07.600 --> 0:10:09.920 instead of operating with the precision of a surgeon with 0:10:09.960 --> 0:10:13.880 a scalpel, they're operating with a hatchet. And so they 0:10:13.920 --> 0:10:17.080 couldn't get to the two percent number they wanted, and 0:10:17.120 --> 0:10:19.240 so they said, screw it, let's just throw everything against 0:10:19.280 --> 0:10:21.200 the wall. Let's just let it run hot, right, and 0:10:21.240 --> 0:10:22.880 they did. And now we're at eight point six. So 0:10:22.920 --> 0:10:26.120 they weigh overshot the goal. As a matter of fact, Uh, 0:10:26.200 --> 0:10:30.120 they overshot the goal by hundreds of percent um, not 0:10:30.120 --> 0:10:32.040 not just a little bit, they overshot it by a 0:10:32.080 --> 0:10:33.720 lot of The goal is to percent. Here we are 0:10:34.920 --> 0:10:39.520 almost a nine. Yeah, not much precision. So now another 0:10:39.600 --> 0:10:43.520 knee jerk reaction. Um, shoot, Now it's a problem. Before, 0:10:43.559 --> 0:10:45.240 the problems before we couldn't get it. Now the problems 0:10:45.240 --> 0:10:47.440 we have too much and we can't get it back 0:10:47.480 --> 0:10:49.480 to two percent. So let's just smash it as low 0:10:49.480 --> 0:10:51.960 as we can again, and who cares what happens with 0:10:52.000 --> 0:10:55.440 everybody else in the economy. And unfortunately that's where we're 0:10:55.440 --> 0:10:58.160 at now. A lot of a lot of people are waiting, 0:10:59.640 --> 0:11:04.280 hope being that, Um, you know, the feed is gonna 0:11:04.360 --> 0:11:07.120 pivot the pet, The feed is going to go back 0:11:07.120 --> 0:11:08.960 into their feed. Put the FETE is going to say, oh, 0:11:09.040 --> 0:11:11.280 forget the inflation, let's just pump the market back up. 0:11:11.600 --> 0:11:13.800 But I'm not so sure about this now. I got 0:11:13.840 --> 0:11:15.400 a couple of clips that I want to play that 0:11:15.440 --> 0:11:18.040 I think helps illustrate this. If you want to understand 0:11:18.080 --> 0:11:20.199 what's going on with inflation, and if you understand what's 0:11:20.200 --> 0:11:22.600 going on with inflation, then you might understand what the 0:11:22.600 --> 0:11:24.920 Fete is gonna do. So the first thing, like I said, 0:11:25.000 --> 0:11:29.280 Jerome Powe was sitting down with the with the committee today, 0:11:29.600 --> 0:11:31.680 let's play one clip that I have right here, so 0:11:31.720 --> 0:11:34.600 we can start to understand what they're dealing with, what 0:11:34.640 --> 0:11:36.960 they're looking at, and what this means to us. Here 0:11:36.960 --> 0:11:44.520 we go, inflation is it's just an imbalance of supply 0:11:44.640 --> 0:11:49.880 and demand. Can we agree on Matt, Yes, generally alright. 0:11:49.920 --> 0:11:54.679 So that Senator John Kennedy and he is questioning Jerome Powell, 0:11:55.400 --> 0:11:58.080 and he says, okay, look, you're trying to fight inflation, um, 0:11:58.120 --> 0:12:00.720 so let's let's let's talk about this. He says that um, 0:12:00.800 --> 0:12:04.720 inflation meaning prices going up. It's not really a real definition. 0:12:04.720 --> 0:12:07.040 I'm not gonna geto that right now. But he says, inflation, 0:12:07.080 --> 0:12:11.440 prices going up is really imbalance of supply and demand. 0:12:11.520 --> 0:12:14.760 So look, man, these PhDs at the Fed, they want 0:12:14.760 --> 0:12:17.720 to make this super complicated. It's not. It's super easy. 0:12:18.080 --> 0:12:21.240 All prices are derived from supply and demand. Now, there's 0:12:21.480 --> 0:12:24.200 trillions of reasons why supply and demand could change, but 0:12:24.320 --> 0:12:26.920 ultimately comes down to supply and demand. So he asked 0:12:26.960 --> 0:12:30.920 that question, he says, so, all inflation is an imbalance 0:12:31.080 --> 0:12:35.400 of supplying demand. So if there's more supply then there 0:12:35.480 --> 0:12:39.040 is demand, prices come down. That's the imbalance or the 0:12:39.040 --> 0:12:41.719 imbalance works together way. If there's more demand than there 0:12:41.800 --> 0:12:45.520 is supply, then prices go up. If there's ten people 0:12:45.600 --> 0:12:48.360 trying to buy a house, but only one house for sale, 0:12:48.800 --> 0:12:51.960 ten times the demand one house, the price is gonna 0:12:51.960 --> 0:12:54.000 go up. It's gonna get bit up. If the opposite 0:12:54.080 --> 0:12:57.079 was true, the imbalance, to his word, was the other way. 0:12:57.120 --> 0:12:59.040 There was ten houses for sale but only one buyer, 0:12:59.520 --> 0:13:02.200 the price would come down, all right. So that's what 0:13:02.200 --> 0:13:05.160 he's saying. And Jerome Powell, you heard he says, yes, 0:13:05.520 --> 0:13:09.679 that's right, all right. So now, um, let's play this 0:13:09.880 --> 0:13:13.360 next clip here, which I think is pretty talent. So 0:13:13.480 --> 0:13:18.240 here's what the FED is doing to get their prices stable. Again. 0:13:18.880 --> 0:13:22.040 Let's check it out here. I got a situation where 0:13:22.080 --> 0:13:25.800 demands up here, supplies down here. You're trying to mower demand. 0:13:26.800 --> 0:13:30.320 M hm. So if the if the imbalance is off 0:13:30.360 --> 0:13:35.000 causing the prices to go higher, then you have two levers. 0:13:35.720 --> 0:13:39.000 You can either increase you can you can try to 0:13:39.000 --> 0:13:41.080 solve the imbalance, right, So in this case, you could 0:13:41.200 --> 0:13:44.440 increase the supplies, but of course the FED can't do that. 0:13:45.200 --> 0:13:48.400 So if energy and food are too high, which of 0:13:48.480 --> 0:13:51.160 course they are, then they could increase the supply of 0:13:51.160 --> 0:13:53.400 those things. But the FED can't print food and they 0:13:53.400 --> 0:13:58.360 can't print energy. Um, And so they have the other option, 0:13:58.400 --> 0:14:01.800 which is to lower the demand, or what's actually called 0:14:02.160 --> 0:14:07.199 demand destruction. So if they can't add more supply, let's 0:14:07.240 --> 0:14:10.000 just take away. Let's just make you broke so that 0:14:10.080 --> 0:14:12.439 you can't even afford it. Now, I know that sounds 0:14:12.679 --> 0:14:16.880 pretty drastic, but that's exactly what he just said. As 0:14:16.920 --> 0:14:18.640 a matter of fact, I got some more clips before 0:14:18.640 --> 0:14:20.400 we get into that, though, Let's hear from somebody that 0:14:20.440 --> 0:14:23.200 you should probably be listening to. And so, um, we 0:14:23.240 --> 0:14:26.320 saw Bill Dudley. Now, Bill Dudley might not be a 0:14:26.400 --> 0:14:29.320 name that you know, but you probably should because you 0:14:29.360 --> 0:14:33.280 want to listen to people who are very influential. So, 0:14:33.360 --> 0:14:36.800 for example, I've talked in the past about Mark Arney. 0:14:36.880 --> 0:14:38.760 Most people don't know who Mark Karney is, but you should. 0:14:38.960 --> 0:14:41.640 He's one of the most influential people in the whole world. 0:14:42.160 --> 0:14:43.840 I'm not gonna get into Mark Arney right now. But 0:14:44.120 --> 0:14:46.840 Bill Dudley is also pretty influential. So, like I said, 0:14:46.840 --> 0:14:50.160 he was former Federal Reserve Bank of New York president. 0:14:50.840 --> 0:14:53.880 So all the federal reserve banks, I believe, the New 0:14:53.960 --> 0:14:56.880 York Bank is probably the most important and most powerful, 0:14:57.160 --> 0:14:59.440 most influential. So he used to be the president of 0:14:59.480 --> 0:15:03.440 the ed Reserve Bank of New York. UM. He also 0:15:03.640 --> 0:15:05.720 was the head of the f O M c UM 0:15:05.800 --> 0:15:09.880 Committee the Meetings, which sets the policies on this that's 0:15:09.920 --> 0:15:14.080 also a pretty important position. And he worked at Goldman Sachs. 0:15:14.840 --> 0:15:17.520 So if you worked at the government and Goldman Sachs, 0:15:17.920 --> 0:15:22.880 that means you are pretty dang connected. And he says that. 0:15:23.680 --> 0:15:27.960 Let's see here. He says, uh, the Fed quote hasn't 0:15:28.120 --> 0:15:33.160 really accomplished much yet with its efforts to control inflation, 0:15:33.960 --> 0:15:36.880 and we'll need to tighten financial conditions to push bonnields 0:15:36.960 --> 0:15:41.440 higher and stock prices lower. This is where it gets good. 0:15:41.680 --> 0:15:45.880 Quote if financial conditions don't cooperate with the Fed, the 0:15:45.920 --> 0:15:49.240 Fed's going to have to do more until financial markets 0:15:49.440 --> 0:15:53.800 do cooperate end quote. So what is he saying there. 0:15:54.520 --> 0:15:58.720 He's basically saying that the Fed will need to force 0:15:59.280 --> 0:16:01.880 stocks lower. We'll have to force it, which is what 0:16:02.480 --> 0:16:06.200 Senator John Kinney was saying. You can't increase the supply, right, 0:16:06.240 --> 0:16:09.560 so you're just focusing on the demand side, and Jerome 0:16:09.600 --> 0:16:12.760 Power replied yes, which is what Bill Dudley says, which 0:16:12.800 --> 0:16:16.440 is we might need to force stocks to fall. Why 0:16:16.520 --> 0:16:22.120 would forcing stocks to fall um lower demand? Well, it's 0:16:22.200 --> 0:16:25.560 demand destruction is something known as the wealth effect. And 0:16:25.600 --> 0:16:28.400 so when your stock account goes up, when your retirement 0:16:28.440 --> 0:16:30.720 account goes up, when your home goes up in value, 0:16:30.840 --> 0:16:34.120 even though you weren't planning on selling your home most likely, right, 0:16:34.200 --> 0:16:35.680 it's just your house. You weren't planning on selling it, 0:16:35.720 --> 0:16:38.760 but it went up in value. You feel wealthy. You 0:16:38.800 --> 0:16:41.080 see your retirement account go up. You're not planning on 0:16:41.160 --> 0:16:44.240 cashing that in, not until you retire, but you feel wealthy. 0:16:44.280 --> 0:16:47.120 That's the wealth effect. And when I feel more wealthy, 0:16:48.120 --> 0:16:52.640 I spend more money um, and that creates more demand. 0:16:53.200 --> 0:16:57.200 When I feel broke, when my house is upside down, underwater, 0:16:57.280 --> 0:16:59.280 when my retirement account drops to a level that I 0:16:59.320 --> 0:17:02.440 can't retire in anymore, then I feel broke. Even though 0:17:02.440 --> 0:17:04.880 I wasn't playing on selling those assets, I still feel broke. 0:17:05.000 --> 0:17:07.160 And now I'm not spending the money. So now I'm 0:17:07.200 --> 0:17:09.320 not putting as much gas in my car, I'm not 0:17:09.359 --> 0:17:11.840 taking those vacations, I'm not going out to dinner multiple 0:17:11.920 --> 0:17:17.439 times a week, etcetera. Demand destruction through the wealth effect. Now, 0:17:17.480 --> 0:17:19.560 like I said, I'm playing to the clips because I 0:17:19.600 --> 0:17:21.280 want you to hear it from their mouth, not from mine. 0:17:21.440 --> 0:17:24.520 That's exactly what sends. Senator John Kennedy asked Jerome Powell 0:17:24.640 --> 0:17:27.280 that he replied to, Now, I got some more warnings 0:17:27.320 --> 0:17:29.159 coming up from other people you need to listen to, 0:17:29.200 --> 0:17:30.920 and I got some more clips so you can hear 0:17:30.960 --> 0:17:33.439 it directly from their mouth. We're gonna walk through this 0:17:33.720 --> 0:17:36.800 so you can understand exactly what's going on. I'm gonna 0:17:36.800 --> 0:17:40.280 listening to the MARKETMA show. We're talking about the decentralized revolution. 0:17:40.320 --> 0:17:42.640 We're talking about the way the financial system and really 0:17:42.680 --> 0:17:46.159 the world is changing through politics, finance, and technology, and 0:17:46.240 --> 0:17:50.840 its being driven by sound money and bitcoin driving this change. 0:17:51.600 --> 0:17:54.760 And we're looking at it from I guess a microscopic level. Um, 0:17:54.800 --> 0:17:56.320 I got a whole bunch to cover when I get back, 0:17:56.359 --> 0:17:58.840 including some more sound clips. You can hear what they're saying. UM, 0:17:58.960 --> 0:18:02.080 So don't go way I'll be right back. All right, 0:18:02.119 --> 0:18:04.240 welcome back. You are listening to the Markma Show. We're 0:18:04.240 --> 0:18:07.439 talking about the decentralized Revolution. We're talking about how the 0:18:07.520 --> 0:18:11.480 world is changing driven by the financial markets. The financial 0:18:11.520 --> 0:18:14.040 markets are changing, and your life is changing. The whole 0:18:14.080 --> 0:18:18.000 world is changing because of this. And we're talking about 0:18:18.160 --> 0:18:22.080 how the Federal Reserve is basically stuck and they're trying 0:18:22.080 --> 0:18:24.600 to bring inflation down because of course of their dual mandate, 0:18:24.640 --> 0:18:27.000 one of which is stable prices, and prices aren't stable. 0:18:27.359 --> 0:18:29.879 They're going through the roof, and so they're trying to 0:18:29.880 --> 0:18:32.280 bring prices down. But they can only bring prices up 0:18:32.640 --> 0:18:36.399 down through one of two ways, increasing this supply or 0:18:36.440 --> 0:18:38.400 taking away the demand. Of course, they're choosing to take 0:18:38.400 --> 0:18:40.160 away the demand. I played you a clip of Drome 0:18:40.200 --> 0:18:43.720 Palette manting so much, and Bill Dudley, former Pedo Reserve 0:18:43.760 --> 0:18:45.840 Bank of New York president, said the same thing, that 0:18:45.880 --> 0:18:50.000 they would have to force stocks down, which is exactly 0:18:50.160 --> 0:18:55.639 what's happening now. Um, we have another warning from somebody 0:18:55.640 --> 0:18:57.520 that we should all probably be listening to, and that's 0:18:57.600 --> 0:18:59.760 Ray Dalio, one of the richest been in the world. 0:19:00.000 --> 0:19:03.200 Out of the largest hedge funds in the world, Bridgewater Capital, 0:19:03.600 --> 0:19:06.399 and when he talks, I listen. I just finished reading 0:19:06.480 --> 0:19:08.600 his book, which was he has a new book out 0:19:08.600 --> 0:19:11.640 which is amazing, um packed full of charts and graphs. 0:19:11.680 --> 0:19:14.640 Definitely good, good read. But he says that Radio says, 0:19:14.680 --> 0:19:20.040 reducing inflation will come at a great cost. So if 0:19:20.040 --> 0:19:23.240 you want prices to come back down, we can do it. 0:19:24.080 --> 0:19:25.600 But it's going to come at a great cost. Now 0:19:25.640 --> 0:19:27.960 what's that great cost? Well, what did Bill Dudley say? 0:19:28.200 --> 0:19:32.240 The Fed will need to smash stocks lower? So what 0:19:32.280 --> 0:19:34.440 does that mean. What's this great cost? Well, that means 0:19:34.800 --> 0:19:38.720 wiping out your net worth, wiping out your ability to 0:19:39.000 --> 0:19:46.359 what potentially travel or potentially retire, potentially send your kids 0:19:46.359 --> 0:19:48.240 to college, or buy your you know, pay for your 0:19:48.320 --> 0:19:50.520 daughter's wedding. I mean, who knows, right, Um, let's take 0:19:50.520 --> 0:19:51.760 a look at what he says. He says that the 0:19:51.760 --> 0:19:57.199 FED is likely to chart a course that leads to stagflation. Now, stagflation, 0:19:58.040 --> 0:19:59.440 I don't know what you think about that word when 0:19:59.440 --> 0:20:00.840 you hear, but it is not a good thing. Now, 0:20:00.840 --> 0:20:03.680 we haven't seen stagflation in the United States since the seventies, 0:20:04.760 --> 0:20:06.679 but of course Japan has been dealing with this for 0:20:06.760 --> 0:20:12.080 quite a while. What is stagflation. It's stagnant economy with inflation, 0:20:12.280 --> 0:20:15.800 so that means prices continue to go up while economic 0:20:15.840 --> 0:20:18.840 growth goes down. It's the worst combination. What you would 0:20:18.880 --> 0:20:21.480 want is economic growth to get better and prices to 0:20:21.560 --> 0:20:24.760 come down, and that would lead to massive human flourishment. 0:20:25.000 --> 0:20:26.600 That would mean that you would have have to work 0:20:26.920 --> 0:20:30.359 less hours to improve your quality of life. That means 0:20:30.400 --> 0:20:33.320 that your life gets better over time and not worse. 0:20:33.720 --> 0:20:37.000 But no, the opposite of that is economic growth goes down. 0:20:38.160 --> 0:20:41.639 You make less money and things get more expensive at 0:20:41.640 --> 0:20:44.480 the same time. That has a horrible combination. That's where 0:20:44.520 --> 0:20:46.840 Japan has been. The United States was there in the seventies, 0:20:46.880 --> 0:20:49.199 and he says Dahio says, the FED is likely to chart. 0:20:49.240 --> 0:20:52.200