1 00:00:00,280 --> 00:00:03,040 Speaker 1: Hello, and welcome to another episode of The Mark Moss Show, where, 2 00:00:03,040 --> 00:00:06,600 Speaker 1: of course we're always talking about the decentralized revolution, talking 3 00:00:06,600 --> 00:00:09,920 Speaker 1: about the way the world is changing. Yes, it is, 4 00:00:10,160 --> 00:00:12,680 Speaker 1: have you noticed? And it's changing right before our eyes. Now, 5 00:00:12,680 --> 00:00:16,440 Speaker 1: it's always technology that changes the world, but it changes 6 00:00:16,480 --> 00:00:20,000 Speaker 1: it through three spheres. There's the political, the social sphere, 7 00:00:20,040 --> 00:00:24,400 Speaker 1: there's the financial sphere, and then there's the technology. Technology 8 00:00:24,400 --> 00:00:26,239 Speaker 1: is the driver and we look at it from all 9 00:00:26,320 --> 00:00:28,479 Speaker 1: three of those angles. Of course, we talk about bitcoin 10 00:00:28,560 --> 00:00:32,320 Speaker 1: being this decentralized technology that's changing the world. And today 11 00:00:32,360 --> 00:00:34,560 Speaker 1: we have a big show. I want to talk about 12 00:00:35,120 --> 00:00:38,760 Speaker 1: the everything bubble. You've been hearing it all over. What 13 00:00:38,960 --> 00:00:41,360 Speaker 1: is the everything bubble? Where did it come from, what's 14 00:00:41,400 --> 00:00:44,040 Speaker 1: the timelines, what are the key indicators that we should 15 00:00:44,040 --> 00:00:46,919 Speaker 1: be watching, what's the danger because of this? And what 16 00:00:47,000 --> 00:00:51,000 Speaker 1: should we be doing to protect ourselves from the everything bubble. 17 00:00:51,120 --> 00:00:52,920 Speaker 1: We're going to dig into all of that. How to 18 00:00:52,960 --> 00:00:56,320 Speaker 1: protect your wealth, how to protect your family, what the 19 00:00:56,360 --> 00:00:59,520 Speaker 1: experts are saying, and so much more. Now, I just 20 00:00:59,520 --> 00:01:01,840 Speaker 1: want to do a shout out. I don't typically do this, 21 00:01:02,200 --> 00:01:05,479 Speaker 1: but just shout out to a company called Don't Tread 22 00:01:05,560 --> 00:01:07,560 Speaker 1: on Me. You can find them on Don't tread on 23 00:01:07,640 --> 00:01:09,680 Speaker 1: Me dot com and they were nice enough to send 24 00:01:09,760 --> 00:01:12,280 Speaker 1: me a couple of shirts. You can see it right here. 25 00:01:12,520 --> 00:01:15,000 Speaker 1: They see that I use this coffee mug all the time, 26 00:01:15,040 --> 00:01:17,240 Speaker 1: says don't tread on Me. And I bought this at 27 00:01:17,319 --> 00:01:20,080 Speaker 1: BUCkies in Texas. Shout out to BUCkies. But they see 28 00:01:20,080 --> 00:01:21,840 Speaker 1: that I use this, and so they sent me a 29 00:01:21,880 --> 00:01:24,400 Speaker 1: whole box full of gear. So I didn't want to 30 00:01:24,400 --> 00:01:26,600 Speaker 1: shout out to them, and I just want to talk 31 00:01:26,600 --> 00:01:28,800 Speaker 1: about it for a second. You know, the reason why 32 00:01:28,840 --> 00:01:33,080 Speaker 1: I like this mug is to me, this symbol could 33 00:01:33,080 --> 00:01:36,240 Speaker 1: mean lots of things to lots of different people. And 34 00:01:36,560 --> 00:01:39,000 Speaker 1: some people might tell you it's I don't know, racist, 35 00:01:39,240 --> 00:01:42,400 Speaker 1: or supports slavery. I don't know what they want to say. 36 00:01:42,400 --> 00:01:44,520 Speaker 1: I don't care about any of that. What I want 37 00:01:44,560 --> 00:01:46,760 Speaker 1: to say is what it means to me. Now, this 38 00:01:46,840 --> 00:01:52,720 Speaker 1: goes back to the American the original colonial war, and 39 00:01:52,760 --> 00:01:55,160 Speaker 1: it's been used many, many times as a symbol. Benjamin 40 00:01:55,200 --> 00:01:58,760 Speaker 1: Franklin used it, and basically it means. 41 00:01:58,880 --> 00:01:59,600 Speaker 2: It's like a warning. 42 00:01:59,640 --> 00:02:01,160 Speaker 1: It was you used when it was created as a 43 00:02:01,200 --> 00:02:05,360 Speaker 1: warning to Britain not to violate the liberties of its 44 00:02:05,400 --> 00:02:07,800 Speaker 1: American subjects. That's what it was created for and that's 45 00:02:07,800 --> 00:02:11,600 Speaker 1: how it was used originally warning to Britain not to 46 00:02:12,320 --> 00:02:14,799 Speaker 1: violate the liberties of American subjects. And the reason why 47 00:02:14,800 --> 00:02:17,639 Speaker 1: I like this is it's to me, it's a symbol 48 00:02:17,760 --> 00:02:19,040 Speaker 1: of live and let live. 49 00:02:19,760 --> 00:02:22,240 Speaker 2: Look, I'm gonna do meet. You're going to do you. 50 00:02:22,680 --> 00:02:24,000 Speaker 2: Good job, you go do you. 51 00:02:24,320 --> 00:02:26,200 Speaker 1: And the way that I think the world should work 52 00:02:26,280 --> 00:02:29,360 Speaker 1: is that we should lead by example. I want to 53 00:02:29,360 --> 00:02:32,080 Speaker 1: be a good example for my kids. I want to 54 00:02:32,080 --> 00:02:34,960 Speaker 1: be a good example for my audience. My social media 55 00:02:34,960 --> 00:02:36,960 Speaker 1: and stuff, you'll see me talking about things I do 56 00:02:37,040 --> 00:02:39,280 Speaker 1: for business or coaching clients that I work with, helping 57 00:02:39,320 --> 00:02:41,519 Speaker 1: their businesses grow, and I always do it from a 58 00:02:41,560 --> 00:02:44,639 Speaker 1: place of this is what I am doing in my business. 59 00:02:45,000 --> 00:02:46,959 Speaker 1: And then I might talk about these are things I've 60 00:02:47,000 --> 00:02:50,640 Speaker 1: helped other businesses achieve, and it's always from a place 61 00:02:50,680 --> 00:02:54,799 Speaker 1: of leading by example. I'm not going online. You won't 62 00:02:54,800 --> 00:02:56,600 Speaker 1: see by my social media saying this is what. 63 00:02:56,560 --> 00:02:59,440 Speaker 2: You should do. You need to do this, you see. 64 00:02:59,480 --> 00:03:02,280 Speaker 1: And that's what I see is this big discrepancy between 65 00:03:02,360 --> 00:03:07,480 Speaker 1: these two politically ideology separated sides that we see in 66 00:03:07,520 --> 00:03:09,920 Speaker 1: the United States and really in the world today. You 67 00:03:09,919 --> 00:03:11,960 Speaker 1: have one group of people who just want to be 68 00:03:12,040 --> 00:03:14,400 Speaker 1: left alone, let me take care of myself and my 69 00:03:14,480 --> 00:03:17,080 Speaker 1: family and just live my life, and then you have 70 00:03:17,080 --> 00:03:19,320 Speaker 1: another group of people that constantly want to tell you 71 00:03:19,400 --> 00:03:22,720 Speaker 1: how you should be living. And that's a problem. I 72 00:03:23,720 --> 00:03:25,480 Speaker 1: was at an event I don't know about a year 73 00:03:25,480 --> 00:03:28,120 Speaker 1: ago and somebody asked me, how do you know that 74 00:03:28,160 --> 00:03:30,919 Speaker 1: you're on the right side, And I said, I had 75 00:03:30,919 --> 00:03:32,320 Speaker 1: to think about that for a while, and I said, 76 00:03:32,520 --> 00:03:34,120 Speaker 1: the reason why I think that I'm on the right 77 00:03:34,160 --> 00:03:37,440 Speaker 1: side is because I'm on the side of freedom. I'm 78 00:03:37,480 --> 00:03:40,080 Speaker 1: gonna do me, and you're going to do you. I'm 79 00:03:40,120 --> 00:03:43,440 Speaker 1: not telling you what to do. I'm right because I'm 80 00:03:43,520 --> 00:03:46,040 Speaker 1: only gonna I'm only going to discipline. I'm only going 81 00:03:46,080 --> 00:03:49,040 Speaker 1: to manage myself. You do you. And so that's why 82 00:03:49,040 --> 00:03:52,080 Speaker 1: I love this flag, the Gads. It's called the gads 83 00:03:52,080 --> 00:03:54,440 Speaker 1: and flag. It says, don't tread on me, don't step 84 00:03:54,440 --> 00:03:57,080 Speaker 1: on me. It's a rattlesnake, which means the rattlesnake is like, hey, 85 00:03:57,440 --> 00:03:59,480 Speaker 1: let me go do my thing and I won't bother you. 86 00:04:00,080 --> 00:04:04,440 Speaker 1: But here's the butt. But if you do come after me. 87 00:04:04,600 --> 00:04:08,240 Speaker 1: If you do step on me, watch out. The rattlesnake 88 00:04:08,280 --> 00:04:10,280 Speaker 1: has its tongue and its fangs out, and. 89 00:04:10,200 --> 00:04:12,560 Speaker 2: So it's like, hey, live and let live. You do you, 90 00:04:12,760 --> 00:04:13,240 Speaker 2: I'll do me. 91 00:04:13,400 --> 00:04:15,720 Speaker 1: But if you want to come and harass me, back 92 00:04:15,760 --> 00:04:18,320 Speaker 1: to its original attention to Britain, if you want to 93 00:04:18,320 --> 00:04:21,760 Speaker 1: come and violate the liberties of American subjects and today, 94 00:04:22,080 --> 00:04:24,320 Speaker 1: if you want to come and violate me, well then 95 00:04:24,960 --> 00:04:28,640 Speaker 1: watch out. So I don't want to be violent. 96 00:04:28,640 --> 00:04:28,920 Speaker 2: I don't. 97 00:04:29,000 --> 00:04:32,640 Speaker 1: I don't advocate for it for any means. I believe 98 00:04:32,680 --> 00:04:35,400 Speaker 1: in liberty for all live and let live. But if 99 00:04:35,440 --> 00:04:38,120 Speaker 1: you come after me, then you better be prepared. And 100 00:04:38,160 --> 00:04:40,080 Speaker 1: that's why I like this. And anyway, so shout out 101 00:04:40,120 --> 00:04:42,960 Speaker 1: to this company. Don't tread on me dot com check 102 00:04:43,000 --> 00:04:44,960 Speaker 1: them out. They were nice enough to send me, like 103 00:04:45,040 --> 00:04:47,400 Speaker 1: I said, a whole box of goods. I don't typically 104 00:04:47,400 --> 00:04:49,080 Speaker 1: wear anything other than a black shirt, but I wore 105 00:04:49,120 --> 00:04:51,480 Speaker 1: this because it had like a light black print on it. 106 00:04:51,920 --> 00:04:55,520 Speaker 2: Anyway, let's jump in too. We're talking about the everything bubble. 107 00:04:56,800 --> 00:04:58,320 Speaker 2: You might have heard of that before. Now. 108 00:04:58,400 --> 00:05:01,400 Speaker 1: Bubbles are when financial mark kids get frothy and they 109 00:05:01,440 --> 00:05:04,839 Speaker 1: start rising, rising, rising, rising, rising, And like most bubbles, 110 00:05:04,839 --> 00:05:08,640 Speaker 1: they eventually pop or they deflate. Right, a balloon deflates 111 00:05:08,720 --> 00:05:11,400 Speaker 1: or it blows up, And so we can see that 112 00:05:11,440 --> 00:05:13,960 Speaker 1: in financial markets, we have bubbles that are bubbling up 113 00:05:14,000 --> 00:05:16,359 Speaker 1: as well, and they get very frothy, and at some 114 00:05:16,520 --> 00:05:19,440 Speaker 1: point the bubble deflates. You have like a balloon with 115 00:05:19,480 --> 00:05:24,279 Speaker 1: like a pinprick, and the whole thing deflates. Now I'm 116 00:05:24,279 --> 00:05:27,160 Speaker 1: gonna we're gonna dig into, like I said, what they are, 117 00:05:27,279 --> 00:05:29,400 Speaker 1: what are the causes of them, what the experts are 118 00:05:29,440 --> 00:05:31,359 Speaker 1: saying about, and what the alarm bells are we should 119 00:05:31,360 --> 00:05:32,760 Speaker 1: be watching. And then, of course, like I said, how 120 00:05:32,760 --> 00:05:34,960 Speaker 1: you can protect yourself. But I also want to let 121 00:05:35,040 --> 00:05:40,599 Speaker 1: you know that we're always in a bubble. We're always 122 00:05:40,600 --> 00:05:41,080 Speaker 1: in a bubble. 123 00:05:41,400 --> 00:05:43,520 Speaker 2: It's just at what stage of the bubble. 124 00:05:43,600 --> 00:05:47,000 Speaker 1: Is the bubble just barely forming or are we all 125 00:05:47,040 --> 00:05:47,640 Speaker 1: the way at the peak? 126 00:05:47,680 --> 00:05:47,840 Speaker 2: Now? 127 00:05:47,880 --> 00:05:50,160 Speaker 1: The problem with are we all the way at the 128 00:05:50,160 --> 00:05:53,720 Speaker 1: peak is that we don't know. It's easy to see 129 00:05:53,760 --> 00:05:58,479 Speaker 1: when reality is starting to separate from perception. That's what 130 00:05:58,520 --> 00:06:00,920 Speaker 1: I call volatility, the difference of perception of reality. 131 00:06:00,920 --> 00:06:03,200 Speaker 2: It's different. It's easy. 132 00:06:03,560 --> 00:06:07,040 Speaker 1: We can see when prices are over their historical norms 133 00:06:07,160 --> 00:06:09,400 Speaker 1: or below. If they're expensive or cheap. We can see that. 134 00:06:09,800 --> 00:06:13,000 Speaker 1: What we don't know is when things will return back 135 00:06:13,040 --> 00:06:15,160 Speaker 1: to their means or revert past their means. 136 00:06:15,160 --> 00:06:18,039 Speaker 2: We don't know that. And so while it's easy to 137 00:06:18,040 --> 00:06:18,479 Speaker 2: say we're in. 138 00:06:18,440 --> 00:06:19,480 Speaker 1: A bubble, and I'm going to read from you, have 139 00:06:19,480 --> 00:06:22,360 Speaker 1: a lot of people say we are in a bubble. Sure, 140 00:06:22,520 --> 00:06:23,719 Speaker 1: I'll say that we're in a bubble too. 141 00:06:23,760 --> 00:06:26,240 Speaker 2: I put my hat in the ring. We're in a bubble. 142 00:06:26,279 --> 00:06:27,960 Speaker 1: But like I said, it doesn't mean that the bubble's 143 00:06:27,960 --> 00:06:30,200 Speaker 1: going to pop today, tomorrow, next week, or next year, 144 00:06:30,720 --> 00:06:32,880 Speaker 1: because these people have been calling for the bubble to 145 00:06:32,880 --> 00:06:35,520 Speaker 1: pop for a long time. After the two thousand and 146 00:06:35,560 --> 00:06:37,960 Speaker 1: eight financial crash, I've told my story many times. I 147 00:06:37,960 --> 00:06:40,080 Speaker 1: had made a lot of money. I had an eight 148 00:06:40,080 --> 00:06:42,840 Speaker 1: figure portfolio. I was young, I just had my first kid. 149 00:06:42,920 --> 00:06:45,440 Speaker 1: I was done in life, and then out of nowhere, 150 00:06:45,520 --> 00:06:49,560 Speaker 1: the great financial crash came and just knocked me on 151 00:06:49,600 --> 00:06:49,960 Speaker 1: my rear. 152 00:06:50,040 --> 00:06:50,760 Speaker 2: Let's just say that. 153 00:06:51,400 --> 00:06:54,280 Speaker 1: And it was part because I didn't understand this financial system. 154 00:06:54,279 --> 00:06:57,360 Speaker 1: I was focused on making money and I had done 155 00:06:57,360 --> 00:06:57,800 Speaker 1: really well. 156 00:06:57,839 --> 00:06:58,920 Speaker 2: I had multiple. 157 00:06:58,520 --> 00:07:02,359 Speaker 1: Businesses, big big exits. I had developed a bunch of 158 00:07:02,360 --> 00:07:05,159 Speaker 1: real estate, and I was sitting on an eight figure portfolio, 159 00:07:05,240 --> 00:07:06,919 Speaker 1: and like I said, I was pretty much done. I 160 00:07:06,920 --> 00:07:10,520 Speaker 1: had sold the businesses, etc. But the financial system that 161 00:07:10,560 --> 00:07:12,960 Speaker 1: the Federal Reserve manipulates and other central banks around the 162 00:07:12,960 --> 00:07:15,840 Speaker 1: world had control over my life. I wasn't paying attention 163 00:07:15,880 --> 00:07:17,560 Speaker 1: to it. So I had to go figure that out. 164 00:07:18,000 --> 00:07:20,640 Speaker 1: And so part of me rebuilding was figuring out the 165 00:07:20,680 --> 00:07:23,480 Speaker 1: game of money. Who were the players, what's the objective 166 00:07:24,280 --> 00:07:26,560 Speaker 1: and so forth. And the players are the government obviously 167 00:07:26,560 --> 00:07:28,560 Speaker 1: the policy makers, but also the central banks, and there's 168 00:07:28,600 --> 00:07:31,120 Speaker 1: other players as well, and I had to go figure 169 00:07:31,120 --> 00:07:34,320 Speaker 1: that out. And once I figured that out, I quickly 170 00:07:34,560 --> 00:07:38,040 Speaker 1: became a goldbug and I'm like, oh, shoot, the problem 171 00:07:38,080 --> 00:07:40,520 Speaker 1: is this central bank policy and they're printing endless amounts 172 00:07:40,520 --> 00:07:42,520 Speaker 1: of money, and every time they print money, that means 173 00:07:42,520 --> 00:07:44,119 Speaker 1: asset prices go up, and then all of a sudden 174 00:07:44,120 --> 00:07:46,320 Speaker 1: they take the money supply away and then asset prices 175 00:07:46,360 --> 00:07:46,800 Speaker 1: come down. 176 00:07:46,920 --> 00:07:47,600 Speaker 2: This is horrible. 177 00:07:47,640 --> 00:07:50,080 Speaker 1: They're the ones costing this. It's their fault that the 178 00:07:50,080 --> 00:07:52,520 Speaker 1: market's crashed and I lost all my money. The way 179 00:07:52,560 --> 00:07:54,880 Speaker 1: to fix this is to go back to a sound 180 00:07:55,000 --> 00:07:57,800 Speaker 1: money standard. And once I started to understand this, and 181 00:07:57,800 --> 00:08:00,720 Speaker 1: I really started paying attention to the financial system. I 182 00:08:00,880 --> 00:08:04,000 Speaker 1: kept thinking that it was going to crash again and 183 00:08:04,080 --> 00:08:06,800 Speaker 1: again and again. Now being a real estate guy in 184 00:08:06,840 --> 00:08:10,400 Speaker 1: twenty nine, ten, eleven, twelve, twenty twelve kind of mark 185 00:08:10,480 --> 00:08:11,360 Speaker 1: the bottom of the market. 186 00:08:11,480 --> 00:08:14,760 Speaker 2: How was the time to get back in thirteen and fourteen. 187 00:08:14,800 --> 00:08:16,520 Speaker 1: But I kept thinking, no, no, no, no, it's going 188 00:08:16,520 --> 00:08:19,160 Speaker 1: to crash again. The banks are insolvent. There's no way 189 00:08:19,160 --> 00:08:21,240 Speaker 1: that can continue. Two thousand and eight didn't fix the banks. 190 00:08:21,280 --> 00:08:23,080 Speaker 1: The banks are only worse off than they were before. 191 00:08:23,800 --> 00:08:26,120 Speaker 1: I want to start buying real estate. And I was developing, 192 00:08:26,160 --> 00:08:28,280 Speaker 1: I was building houses, as building commercial projects. I want 193 00:08:28,280 --> 00:08:29,600 Speaker 1: to start doing it again. I enjoyed it, I had 194 00:08:29,680 --> 00:08:32,400 Speaker 1: fun with it. I saw opportunity it. And I remember thirteen, 195 00:08:32,440 --> 00:08:35,200 Speaker 1: twenty fourteen, twenty fifteen looking at these deals and like, oh, 196 00:08:35,280 --> 00:08:37,360 Speaker 1: I want to pull the trigger. But the market's going 197 00:08:37,440 --> 00:08:39,199 Speaker 1: to crash again at any moment, because. 198 00:08:38,960 --> 00:08:41,120 Speaker 2: Look, we're clearly in a bubble. 199 00:08:41,640 --> 00:08:44,840 Speaker 1: Clearly this banking system doesn't work. Clearly this Fiat money 200 00:08:44,880 --> 00:08:46,880 Speaker 1: system doesn't work. It's going to crash again, and of 201 00:08:46,880 --> 00:08:49,760 Speaker 1: course it still hasn't. And so the point that I'm 202 00:08:49,920 --> 00:08:51,880 Speaker 1: going to make as we go through this is that yes, 203 00:08:51,920 --> 00:08:53,280 Speaker 1: we are in a bubble. We've been in a bubble 204 00:08:53,280 --> 00:08:56,120 Speaker 1: for a long time. A lot of these economists have 205 00:08:56,160 --> 00:08:58,040 Speaker 1: been calling for these asset prices to crash, these bubbles 206 00:08:58,040 --> 00:09:00,880 Speaker 1: to crash for a long time, and it will eventually. 207 00:09:01,600 --> 00:09:03,200 Speaker 1: And when you understand this better, you'll be able to 208 00:09:03,240 --> 00:09:05,560 Speaker 1: understand what I mean by that. If you're just tuned in, 209 00:09:05,559 --> 00:09:08,080 Speaker 1: you're listening to the Mark Maas Show. Of course, we're 210 00:09:08,080 --> 00:09:11,400 Speaker 1: always talking about the decentralized revolution, and asset bubbles are 211 00:09:11,440 --> 00:09:14,040 Speaker 1: part of this because as the world is decentralizing and 212 00:09:14,080 --> 00:09:16,520 Speaker 1: breaking apart, it's putting massive pressure. 213 00:09:16,200 --> 00:09:16,840 Speaker 2: On this bubble. 214 00:09:16,840 --> 00:09:18,559 Speaker 1: These are some of the things we'll talk about, so 215 00:09:18,559 --> 00:09:20,559 Speaker 1: we're going to cover a whole lot of ground. What 216 00:09:20,640 --> 00:09:23,400 Speaker 1: they are, what are the causes, what are the alarm 217 00:09:23,440 --> 00:09:25,960 Speaker 1: bells you should be watching, and of course, ultimately, what 218 00:09:26,160 --> 00:09:28,120 Speaker 1: do you do to protect yourself and your family. I'll 219 00:09:28,120 --> 00:09:30,800 Speaker 1: be back with all of that and more. I'm gonna 220 00:09:30,800 --> 00:09:32,400 Speaker 1: take a quick break, I'm gonna come back. We're going 221 00:09:32,440 --> 00:09:36,079 Speaker 1: to talk about these bubbles potentially crashing and deflating and 222 00:09:36,120 --> 00:09:36,880 Speaker 1: we should do about it. 223 00:09:36,920 --> 00:09:40,400 Speaker 2: Don't go away, were back, Hi, Welcome back. 224 00:09:40,400 --> 00:09:41,959 Speaker 1: If you're just tune in, you're listening to the Mark 225 00:09:42,080 --> 00:09:44,520 Speaker 1: Maas show. Of course we're always talking about the decentralized 226 00:09:44,520 --> 00:09:49,920 Speaker 1: revolution today talking about this everything bubble, what it is, 227 00:09:49,960 --> 00:09:52,400 Speaker 1: the cause the alarm bells you should be watching, and 228 00:09:52,440 --> 00:09:54,360 Speaker 1: of course what you should be doing about it now, 229 00:09:54,600 --> 00:09:57,480 Speaker 1: the asset price bubble. As like I said, we're always 230 00:09:57,480 --> 00:09:59,520 Speaker 1: in a bubble, it's just at what stage are we in. 231 00:10:00,040 --> 00:10:03,600 Speaker 1: And really it refers to the impact of monetary easing 232 00:10:03,640 --> 00:10:06,800 Speaker 1: by the Federal Reserve and the central banks. So the 233 00:10:06,840 --> 00:10:10,400 Speaker 1: central banks all around the world have been easying monetary policy. 234 00:10:10,440 --> 00:10:12,000 Speaker 1: And this is going again, went back to my two 235 00:10:12,000 --> 00:10:14,560 Speaker 1: thousand and eight example. This is what I first discovered. 236 00:10:14,600 --> 00:10:19,559 Speaker 1: That's the problem. When the central banks create more money. 237 00:10:20,240 --> 00:10:21,360 Speaker 2: Asset prices go up. 238 00:10:22,320 --> 00:10:25,600 Speaker 1: When they reduced the supply of money, asset prices go down. 239 00:10:25,640 --> 00:10:28,800 Speaker 1: Pretty simple, and we can see this throughout history. Now, 240 00:10:28,840 --> 00:10:31,720 Speaker 1: before central bankers were able to print themselves money, what 241 00:10:31,760 --> 00:10:34,480 Speaker 1: we would see is we would see new discoveries or 242 00:10:34,520 --> 00:10:36,880 Speaker 1: pockets of what was money at the time, which would 243 00:10:36,880 --> 00:10:39,560 Speaker 1: be gold or silver. So for example, you had you know, 244 00:10:39,640 --> 00:10:43,640 Speaker 1: Spain or Portugal going out on expeditions to find more 245 00:10:43,679 --> 00:10:45,560 Speaker 1: gold and silver. It's how they found the new world 246 00:10:45,679 --> 00:10:49,200 Speaker 1: right the North American continent, and they went to was it, 247 00:10:49,480 --> 00:10:52,560 Speaker 1: I believe, Peru, which has like the greatest silver deposits 248 00:10:52,559 --> 00:10:55,600 Speaker 1: in the world, and they started extracting all that silver 249 00:10:55,800 --> 00:10:59,480 Speaker 1: and bringing it back to Spain and to Europe, and 250 00:10:59,840 --> 00:11:02,920 Speaker 1: all of that new money supply comeing into the markets 251 00:11:02,920 --> 00:11:08,640 Speaker 1: created massive inflation because you remember, we don't want money. 252 00:11:09,559 --> 00:11:11,440 Speaker 1: What we do is we want the things that money 253 00:11:11,480 --> 00:11:13,520 Speaker 1: buys us. We want the goods and services. So what 254 00:11:13,559 --> 00:11:15,760 Speaker 1: we really want is goods and services. Money is just 255 00:11:15,760 --> 00:11:17,880 Speaker 1: the means to get that, and so we'll hold money 256 00:11:18,000 --> 00:11:20,200 Speaker 1: until we've decided what it is that we want with 257 00:11:20,280 --> 00:11:23,600 Speaker 1: it or at that time. And so basically what we 258 00:11:23,640 --> 00:11:26,600 Speaker 1: really want is goods and services. So you divide all 259 00:11:26,640 --> 00:11:28,600 Speaker 1: the goods and services in the world by all the 260 00:11:28,720 --> 00:11:31,880 Speaker 1: money in the world, and so when you increase the 261 00:11:31,960 --> 00:11:35,440 Speaker 1: money supply, then the price of those goods. 262 00:11:35,280 --> 00:11:37,559 Speaker 2: And services goes up. That's the way it works. 263 00:11:38,120 --> 00:11:40,720 Speaker 1: If you decrease the supply of money, then the price 264 00:11:40,720 --> 00:11:43,360 Speaker 1: of the goods and services go down, because it's always 265 00:11:43,400 --> 00:11:46,760 Speaker 1: a ratio because money is just a placeholder for those 266 00:11:46,800 --> 00:11:49,400 Speaker 1: goods and services. So when the FED, the FED and 267 00:11:49,520 --> 00:11:53,520 Speaker 1: otherston's banks around the world increase the money supply as 268 00:11:53,520 --> 00:11:56,280 Speaker 1: the prices go up, and then lots of activity go 269 00:11:56,400 --> 00:11:59,440 Speaker 1: around trying to tap into that. So, for example, home 270 00:11:59,480 --> 00:12:01,959 Speaker 1: prices go up, well, that means that people want to 271 00:12:02,000 --> 00:12:03,760 Speaker 1: go buy homes because I want to speculate on the 272 00:12:03,760 --> 00:12:05,040 Speaker 1: price of home, So I'm going to go what we 273 00:12:05,080 --> 00:12:07,160 Speaker 1: saw through two thousand and eight, or really you know 274 00:12:07,160 --> 00:12:09,760 Speaker 1: two thousand and five sixty seven leading into that, was 275 00:12:09,800 --> 00:12:12,760 Speaker 1: people going and standing in line at track homes and 276 00:12:12,840 --> 00:12:15,600 Speaker 1: they're going to buy two three homes because in a 277 00:12:15,679 --> 00:12:18,400 Speaker 1: year from now they can sell those for more. And 278 00:12:18,520 --> 00:12:21,439 Speaker 1: because now people are buying three homes, then we need 279 00:12:21,480 --> 00:12:23,600 Speaker 1: more people to buy homes. And now we need more contractors, 280 00:12:23,640 --> 00:12:26,160 Speaker 1: more framers, more roofers, and those roofers need to work 281 00:12:26,160 --> 00:12:28,120 Speaker 1: on more houses. So those roofers are trying to expand 282 00:12:28,120 --> 00:12:30,719 Speaker 1: their operations. They're buying more trucks and they're hiring more 283 00:12:30,720 --> 00:12:33,360 Speaker 1: people because there's more trucks than Ford is building more trucks, 284 00:12:33,400 --> 00:12:34,840 Speaker 1: so then they have to order more supplies and they're 285 00:12:34,840 --> 00:12:38,120 Speaker 1: building new manufacturing hubs. And so just that one little 286 00:12:38,120 --> 00:12:41,000 Speaker 1: increase in money supply, which increased the supply of the 287 00:12:41,040 --> 00:12:44,280 Speaker 1: price of houses, has this trickle down effect that caused 288 00:12:44,480 --> 00:12:48,480 Speaker 1: everybody to overbuild on false demand. The demand was only 289 00:12:48,480 --> 00:12:50,240 Speaker 1: there because they increased the supply of the money, which 290 00:12:50,280 --> 00:12:53,200 Speaker 1: I guess would be okay, because what's happening is the 291 00:12:53,200 --> 00:12:55,800 Speaker 1: goods and services are trying to catch up. But just 292 00:12:55,880 --> 00:12:58,040 Speaker 1: as the goods and services are catching up to the 293 00:12:58,040 --> 00:13:01,320 Speaker 1: supply of money, then reduced the supply money, and all 294 00:13:01,320 --> 00:13:04,800 Speaker 1: of a sudden, we have too many goods and services. 295 00:13:05,320 --> 00:13:09,280 Speaker 1: So they these contractors in this hypothetical example, well it's 296 00:13:09,280 --> 00:13:12,160 Speaker 1: not really hypothetical, it's exactly what happened. But in this example, 297 00:13:13,120 --> 00:13:15,520 Speaker 1: as he's as the money supply increased, as as asset 298 00:13:15,559 --> 00:13:20,400 Speaker 1: prices went up, then everybody's rushing to increase the supply 299 00:13:20,720 --> 00:13:24,480 Speaker 1: of those assets. Remember prices are the equilibrium of supply 300 00:13:25,520 --> 00:13:28,520 Speaker 1: and demand. So because when the money supply went up, 301 00:13:28,520 --> 00:13:32,000 Speaker 1: the demand went up. So everybody in this home building 302 00:13:32,080 --> 00:13:33,720 Speaker 1: niche all the way down to Ford making trucks for 303 00:13:33,800 --> 00:13:37,040 Speaker 1: these home builders. As the as the demand went up, 304 00:13:37,040 --> 00:13:39,160 Speaker 1: because the money spy went up, then everyone tried to 305 00:13:39,160 --> 00:13:40,280 Speaker 1: increase the supply. 306 00:13:41,200 --> 00:13:43,160 Speaker 2: But then as as supplies. 307 00:13:42,800 --> 00:13:44,760 Speaker 1: Catching up, catching up, catching up, catching up, more builders, 308 00:13:44,760 --> 00:13:47,920 Speaker 1: more builders, more trucks, more homes. As the supplies catching up, 309 00:13:48,200 --> 00:13:51,160 Speaker 1: they rug pull everybody and pulled the demand away. And 310 00:13:51,240 --> 00:13:55,200 Speaker 1: now that poor home builder bought all these trucks on credit, 311 00:13:55,640 --> 00:13:57,480 Speaker 1: and now he's got no jobs to go work on, 312 00:13:57,840 --> 00:13:59,640 Speaker 1: and how does he keep making his payment on all 313 00:13:59,679 --> 00:14:04,360 Speaker 1: those trucks. This window manufacturer for homes just open up 314 00:14:04,360 --> 00:14:08,400 Speaker 1: this whole new facility, this whole new warehouse facility to 315 00:14:08,480 --> 00:14:11,120 Speaker 1: get windows out faster for all these new homes. And 316 00:14:11,160 --> 00:14:12,840 Speaker 1: now all the demand's gone, And now how do they 317 00:14:12,840 --> 00:14:15,360 Speaker 1: employ all those people, and how do they pay for 318 00:14:15,400 --> 00:14:19,120 Speaker 1: those facilities? And so when you constantly change the supply 319 00:14:19,160 --> 00:14:22,440 Speaker 1: of money, the market's trying to react. But the problem 320 00:14:22,520 --> 00:14:26,720 Speaker 1: is when someone's artificially manipulating it and they're not telling 321 00:14:26,760 --> 00:14:29,480 Speaker 1: you what's happening, there's no way for you to plan 322 00:14:29,520 --> 00:14:31,920 Speaker 1: on that. So either asset price continue to just go 323 00:14:32,000 --> 00:14:34,680 Speaker 1: through the roof because we don't bring a new supply on, 324 00:14:35,840 --> 00:14:37,360 Speaker 1: or we try to bring supply on, but then we 325 00:14:37,400 --> 00:14:39,400 Speaker 1: have to watch out for the rug pull. And this 326 00:14:39,600 --> 00:14:43,640 Speaker 1: makes me so mad. This is one of the things 327 00:14:43,680 --> 00:14:45,840 Speaker 1: that gives me the motivation to continue what I do, 328 00:14:46,280 --> 00:14:49,680 Speaker 1: because the FED is purposely trying to bankrupt you in 329 00:14:49,720 --> 00:14:52,960 Speaker 1: your family. If you don't want to play this game, 330 00:14:53,080 --> 00:14:54,960 Speaker 1: you can choose not to. Look, I'm not going to 331 00:14:55,000 --> 00:14:58,120 Speaker 1: expand my business to keep up with to keep up 332 00:14:58,120 --> 00:14:59,240 Speaker 1: with this supply and demand. 333 00:14:59,400 --> 00:15:00,720 Speaker 2: I won't. I'm not going to play the game. 334 00:15:00,760 --> 00:15:03,200 Speaker 1: Well, the problem is you're going to fall behind because 335 00:15:03,240 --> 00:15:06,160 Speaker 1: prices are going up so fast. If you're not growing 336 00:15:06,200 --> 00:15:08,400 Speaker 1: your business and your revenue to go with it, then 337 00:15:08,440 --> 00:15:11,440 Speaker 1: you get left behind. Inflation eats into your cost of 338 00:15:11,480 --> 00:15:14,160 Speaker 1: living and in your quality of life. So you're forced 339 00:15:14,160 --> 00:15:14,720 Speaker 1: to play the game. 340 00:15:14,760 --> 00:15:15,160 Speaker 2: You have to. 341 00:15:15,360 --> 00:15:17,040 Speaker 1: You can either get left behind and that's not good 342 00:15:17,040 --> 00:15:19,320 Speaker 1: for you, or you can play the game. And so 343 00:15:19,400 --> 00:15:21,160 Speaker 1: then you do try to grow your business, and you 344 00:15:21,160 --> 00:15:23,600 Speaker 1: do try to grow your employees and your equipment and things. 345 00:15:23,400 --> 00:15:24,680 Speaker 2: Like that to keep up with it. 346 00:15:25,000 --> 00:15:27,080 Speaker 1: So now you're taking on debt and you're trying to 347 00:15:27,080 --> 00:15:28,920 Speaker 1: build your business, and you're doing all these things to 348 00:15:29,000 --> 00:15:31,200 Speaker 1: keep up with it. And then they just rug pull 349 00:15:31,200 --> 00:15:33,080 Speaker 1: you and they pull it out, and now you're bankrupt. 350 00:15:34,080 --> 00:15:36,440 Speaker 1: As I drive down my downtown street and I see 351 00:15:36,480 --> 00:15:38,800 Speaker 1: all of these businesses, I just feel bad for them 352 00:15:38,840 --> 00:15:41,760 Speaker 1: because I know most of them aren't paying attention, just 353 00:15:41,760 --> 00:15:45,480 Speaker 1: like I wasn't paying attention. All they know is there's 354 00:15:45,520 --> 00:15:47,680 Speaker 1: more demand for their goods and services than there ever 355 00:15:47,720 --> 00:15:51,000 Speaker 1: has been, and so they're rapidly trying to scale to 356 00:15:51,120 --> 00:15:53,080 Speaker 1: fulfill that demand. But the problem is, like I said, 357 00:15:53,080 --> 00:15:56,120 Speaker 1: they're not paying attention like I wasn't paying attention, and. 358 00:15:55,960 --> 00:15:57,800 Speaker 2: They don't know that the rug pull is. 359 00:15:57,760 --> 00:15:59,760 Speaker 1: Coming and it's going to wipe them all out. That's 360 00:16:00,120 --> 00:16:02,480 Speaker 1: what the everything bubble is. So the bubble is coming. 361 00:16:02,520 --> 00:16:02,680 Speaker 2: Now. 362 00:16:02,680 --> 00:16:05,160 Speaker 1: We saw the term of the everything bubble really kind 363 00:16:05,160 --> 00:16:07,400 Speaker 1: of come out. In two thousand and five. There was 364 00:16:07,440 --> 00:16:10,560 Speaker 1: an article written by Michael J. Burry and he used 365 00:16:10,560 --> 00:16:12,440 Speaker 1: it to describe the housing bubble. You know, you might 366 00:16:12,480 --> 00:16:13,120 Speaker 1: know who Michael J. 367 00:16:13,240 --> 00:16:15,360 Speaker 2: Burry is. He was the author. 368 00:16:16,520 --> 00:16:18,840 Speaker 1: Of the book that went on to create the movie 369 00:16:20,000 --> 00:16:21,520 Speaker 1: that basically depicted this. 370 00:16:21,560 --> 00:16:23,240 Speaker 2: Whole housing bubble collapse. 371 00:16:23,280 --> 00:16:26,520 Speaker 1: It's called The Big Short And Michael Burry got famous 372 00:16:26,560 --> 00:16:28,320 Speaker 1: because you know, he was the guy featured of the 373 00:16:28,320 --> 00:16:29,960 Speaker 1: movie and he was the one that put this big 374 00:16:30,120 --> 00:16:32,560 Speaker 1: short bet saying that the housing market was. 375 00:16:32,520 --> 00:16:34,600 Speaker 2: Going to crash at the time. 376 00:16:34,640 --> 00:16:38,000 Speaker 1: In two thousand and five, he wrote this article for 377 00:16:38,040 --> 00:16:41,560 Speaker 1: the San Francisco Federal Reserve Banks Economic Letter titled quote 378 00:16:41,840 --> 00:16:44,480 Speaker 1: the Everything Bubble and he argued that the United States 379 00:16:44,600 --> 00:16:46,840 Speaker 1: was in the midst of a housing bubble that was 380 00:16:46,880 --> 00:16:50,280 Speaker 1: being driven by low interest rates, easy credit, and speculation. 381 00:16:50,880 --> 00:16:52,160 Speaker 1: Exactly what I said, right. 382 00:16:52,320 --> 00:16:54,760 Speaker 2: When credit is easy and cheap. 383 00:16:54,640 --> 00:16:56,960 Speaker 1: People take more of it, and so because we're in 384 00:16:56,960 --> 00:16:58,840 Speaker 1: a debase montey system, more money's out there. 385 00:16:59,080 --> 00:17:00,560 Speaker 2: So he warned that was that was happening. 386 00:17:00,640 --> 00:17:02,480 Speaker 1: He said that it was unsustainable and that it would 387 00:17:02,480 --> 00:17:05,560 Speaker 1: eventually burst lead into a financial crisis, and he was right. 388 00:17:06,040 --> 00:17:08,000 Speaker 1: Now I want to point out that he was right, 389 00:17:08,040 --> 00:17:10,439 Speaker 1: and so of course he's now famous because of the 390 00:17:10,480 --> 00:17:12,600 Speaker 1: movie in the book that was written and made about him, 391 00:17:12,920 --> 00:17:16,240 Speaker 1: But I do want to say that he was He 392 00:17:16,400 --> 00:17:19,320 Speaker 1: ended up being proven right, but he was wrong for 393 00:17:19,359 --> 00:17:22,119 Speaker 1: a long time. And the reason why that matters is 394 00:17:22,160 --> 00:17:26,840 Speaker 1: that throughout this process, he was buying these credit default swaps, 395 00:17:26,880 --> 00:17:29,679 Speaker 1: and he had his investment funding all these investors' money. 396 00:17:29,760 --> 00:17:32,400 Speaker 1: But he was wrong for so long. He was losing 397 00:17:32,720 --> 00:17:35,399 Speaker 1: all kinds of money, and he is investors one of 398 00:17:35,440 --> 00:17:39,199 Speaker 1: their money back, and they even started suing him like 399 00:17:39,320 --> 00:17:42,840 Speaker 1: he was so wrong for so long, and most people 400 00:17:42,880 --> 00:17:45,480 Speaker 1: that were like him weren't able to withstand that, and 401 00:17:45,520 --> 00:17:47,520 Speaker 1: they all had to pull out and just they took 402 00:17:47,520 --> 00:17:52,000 Speaker 1: the loss, he managed to push through and stay long 403 00:17:52,119 --> 00:17:54,360 Speaker 1: enough for it to eventually come true. And of course 404 00:17:54,400 --> 00:17:57,600 Speaker 1: now he's famous for doing that. So that's about the bubble, right. 405 00:17:57,640 --> 00:17:59,800 Speaker 1: The bubble can last for way longer than we think 406 00:17:59,800 --> 00:18:03,720 Speaker 1: it can hand and Michael Burry is living proof of that. Now, 407 00:18:03,760 --> 00:18:05,160 Speaker 1: if you're just tuning in, you're listening to the Mark 408 00:18:05,200 --> 00:18:07,959 Speaker 1: Mass Show, we're talking about the everything bubble, what it is, 409 00:18:08,240 --> 00:18:10,760 Speaker 1: the causes, the alarm bells we should be watching, and 410 00:18:10,800 --> 00:18:11,480 Speaker 1: of course. 411 00:18:11,520 --> 00:18:13,040 Speaker 2: What you should be doing to protect yourself. 412 00:18:13,040 --> 00:18:14,680 Speaker 1: I'll be back with all that moren a minute, but 413 00:18:14,680 --> 00:18:16,919 Speaker 1: I gotta take a quick break, so don't go away. 414 00:18:17,200 --> 00:18:17,960 Speaker 1: I'll be back. 415 00:18:19,520 --> 00:18:20,199 Speaker 2: All right, Welcome back. 416 00:18:20,240 --> 00:18:21,720 Speaker 1: If you're just tuning in, you're listening to the Mark 417 00:18:21,720 --> 00:18:24,159 Speaker 1: Mass Show, we're talking, of course, every week about the 418 00:18:24,200 --> 00:18:28,359 Speaker 1: decentralized revolution, which is the big driving force. But today 419 00:18:28,359 --> 00:18:30,760 Speaker 1: we're talking about the everything bubble. You've probably heard about 420 00:18:30,800 --> 00:18:32,679 Speaker 1: that term. What it is, what are the causes, what 421 00:18:32,720 --> 00:18:34,960 Speaker 1: are the alarm bells you should be watching, and ultimately 422 00:18:34,960 --> 00:18:36,240 Speaker 1: what should you be doing about it? 423 00:18:36,320 --> 00:18:36,520 Speaker 2: Now? 424 00:18:36,680 --> 00:18:38,439 Speaker 1: I was talking about how we're always in a bubble, 425 00:18:39,160 --> 00:18:40,959 Speaker 1: but at what stage of the bubble? 426 00:18:41,000 --> 00:18:42,640 Speaker 2: Are we in all right? 427 00:18:42,720 --> 00:18:45,159 Speaker 1: And so Michael Burry said that the housing market was 428 00:18:45,200 --> 00:18:47,639 Speaker 1: in a bubble, and he bet against it, and he 429 00:18:47,800 --> 00:18:49,520 Speaker 1: was wrong for a long time and lost a lot 430 00:18:49,520 --> 00:18:52,160 Speaker 1: of money, but was eventually proven right. The broken clock 431 00:18:52,280 --> 00:18:53,640 Speaker 1: is right twice a day. 432 00:18:53,720 --> 00:18:53,920 Speaker 2: Right. 433 00:18:54,320 --> 00:18:56,159 Speaker 1: But we've seen other economists have been calling this for 434 00:18:56,200 --> 00:19:00,240 Speaker 1: a long time. Economist Robert Schiller, he popularized the phrase 435 00:19:00,280 --> 00:19:04,639 Speaker 1: in his twenty fourteen book called Irrational Exuberance. I think 436 00:19:04,720 --> 00:19:08,360 Speaker 1: Warren Buffett said that the markets can stay irrational longer 437 00:19:08,400 --> 00:19:10,600 Speaker 1: than you can stay solvent. And that's what happened to 438 00:19:11,000 --> 00:19:13,600 Speaker 1: almost everybody else that tried to do what Michael Burry did. 439 00:19:14,520 --> 00:19:16,359 Speaker 1: They all saw the markets were going to crash. They 440 00:19:16,400 --> 00:19:20,720 Speaker 1: all placed their shorts. The markets were irrational, but they 441 00:19:20,720 --> 00:19:23,440 Speaker 1: stayed irrational longer than most of them could stay solvent 442 00:19:23,440 --> 00:19:26,840 Speaker 1: because they were losing money on their bets. And so 443 00:19:27,280 --> 00:19:29,119 Speaker 1: in twenty fourteen, in this book, he argued that the 444 00:19:29,160 --> 00:19:32,720 Speaker 1: stock market was in a bubble twenty fourteen. 445 00:19:33,280 --> 00:19:34,720 Speaker 2: Well, since twenty. 446 00:19:34,520 --> 00:19:38,520 Speaker 1: Fourteen, the markets have continued going up, So sure they 447 00:19:38,560 --> 00:19:40,600 Speaker 1: were in a bubble, as he argued in twenty fourteen, 448 00:19:40,720 --> 00:19:44,000 Speaker 1: I agree, and I agree they're also in a bubble today. 449 00:19:44,400 --> 00:19:46,320 Speaker 1: But if you would have put a short on the 450 00:19:46,320 --> 00:19:49,960 Speaker 1: market in twenty fourteen, like he probably suggested after he read. 451 00:19:49,760 --> 00:19:51,760 Speaker 2: The book, he would have been wrong. 452 00:19:51,920 --> 00:19:53,480 Speaker 1: You would have been wrong over and over and over 453 00:19:53,520 --> 00:19:55,359 Speaker 1: to the tune of losing lots of money. Now we 454 00:19:55,400 --> 00:19:57,840 Speaker 1: can all say the markets are going to crash. As 455 00:19:57,880 --> 00:20:00,439 Speaker 1: a matter of fact, I'm willing to guarant he you 456 00:20:00,760 --> 00:20:05,040 Speaker 1: one hundred percent. The markets will crash. Now, I don't 457 00:20:05,080 --> 00:20:08,840 Speaker 1: know by how much or when, but they will crash, right, 458 00:20:08,880 --> 00:20:10,960 Speaker 1: And so you have to define that. And so in 459 00:20:11,440 --> 00:20:14,119 Speaker 1: this example he was wrong. We can see in twenty fourteen, 460 00:20:14,200 --> 00:20:17,840 Speaker 1: Janet Yellen gave a speech at the IMF International Monetary 461 00:20:17,840 --> 00:20:21,240 Speaker 1: Fund discussing the possibility of this everything bubble again back 462 00:20:21,240 --> 00:20:22,360 Speaker 1: in twenty fourteen. 463 00:20:22,280 --> 00:20:25,160 Speaker 2: And she said, yes, yes, you're right. Asset prices have. 464 00:20:25,119 --> 00:20:29,720 Speaker 1: Risen significantly in the years, but they're generally in line 465 00:20:29,760 --> 00:20:34,560 Speaker 1: with historical norms. Well, if you do mental gymnastics, and 466 00:20:34,600 --> 00:20:36,800 Speaker 1: then you account for what we call inflation, So if 467 00:20:36,840 --> 00:20:40,480 Speaker 1: you adjust for the increase in the money supply, I suppose, 468 00:20:40,520 --> 00:20:42,520 Speaker 1: But when the average home in nineteen seventy was like 469 00:20:42,840 --> 00:20:46,159 Speaker 1: thirty forty thousand dollars and today it's three hundred thousand dollars. 470 00:20:46,560 --> 00:20:50,119 Speaker 1: How is that in line with historical norms? Only if 471 00:20:50,119 --> 00:20:51,280 Speaker 1: you're a essential banker. 472 00:20:51,040 --> 00:20:51,920 Speaker 2: Like her, She said. 473 00:20:51,920 --> 00:20:55,480 Speaker 1: Prices of real estate equities, corporate bonds have risen appreciably 474 00:20:55,600 --> 00:20:59,600 Speaker 1: and valuation metrics had increased, but again they remind they 475 00:20:59,640 --> 00:21:03,400 Speaker 1: remain in line. So if you're looking at public equities, 476 00:21:03,400 --> 00:21:07,479 Speaker 1: we have what's called up price to earnings ratio. So 477 00:21:07,520 --> 00:21:10,720 Speaker 1: what is the ratio of the price of the stock 478 00:21:10,840 --> 00:21:13,639 Speaker 1: or the company to the earnings that they have. If 479 00:21:13,640 --> 00:21:17,680 Speaker 1: you're buying a business, Warren Buffett said, I don't buy 480 00:21:17,680 --> 00:21:18,440 Speaker 1: public equities. 481 00:21:18,480 --> 00:21:18,879 Speaker 2: I don't more. 482 00:21:18,880 --> 00:21:23,119 Speaker 1: Buffer said, I don't buy stocks. I buy businesses. The 483 00:21:23,160 --> 00:21:27,160 Speaker 1: businesses just happen to be publicly traded. And the reason 484 00:21:27,160 --> 00:21:29,120 Speaker 1: why it's important to understand that is because we should 485 00:21:29,160 --> 00:21:32,800 Speaker 1: be buying businesses that produce cash flow. If I'm buying 486 00:21:32,840 --> 00:21:35,439 Speaker 1: a business, or in my existing business, the point of 487 00:21:35,480 --> 00:21:37,720 Speaker 1: my business is to make money. How else am I 488 00:21:37,760 --> 00:21:39,960 Speaker 1: going to pay for my people that help and the 489 00:21:40,000 --> 00:21:41,439 Speaker 1: buildings and all these things that we have to do. 490 00:21:41,720 --> 00:21:43,400 Speaker 1: So the business needs to make money. So if I'm 491 00:21:43,400 --> 00:21:45,159 Speaker 1: going to invest into a business, if I'm going to 492 00:21:45,160 --> 00:21:46,840 Speaker 1: buy in a business, that business should be making money. 493 00:21:46,960 --> 00:21:49,679 Speaker 1: That's the earnings divided by the price. Now, what we 494 00:21:49,720 --> 00:21:52,280 Speaker 1: can see is that going back to two thousand, the 495 00:21:52,359 --> 00:21:55,800 Speaker 1: year two thousand, the S and P five hundred pe ratio, 496 00:21:55,960 --> 00:21:59,440 Speaker 1: the price earning ratio was under twenty with a couple spikes. 497 00:22:00,160 --> 00:22:02,520 Speaker 1: As a matter of fact, it was typically more fourteen fifteen. 498 00:22:03,400 --> 00:22:06,880 Speaker 1: What we're seeing now is that we're way over twenty. 499 00:22:07,640 --> 00:22:09,360 Speaker 1: As a matter of fact, some of these stalks are 500 00:22:09,400 --> 00:22:13,119 Speaker 1: twenty five, twenty eight, twenty eight times insane. So to 501 00:22:13,160 --> 00:22:18,720 Speaker 1: say that we're in line with historical averages is pretty much. 502 00:22:18,640 --> 00:22:19,720 Speaker 2: Wrong in my opinion. 503 00:22:19,920 --> 00:22:22,440 Speaker 1: Now, as the central banks, as I kind of started 504 00:22:22,440 --> 00:22:24,679 Speaker 1: out in the beginning talking about every time they increased 505 00:22:24,680 --> 00:22:27,480 Speaker 1: the money supply, we get these asset bubbles. 506 00:22:27,560 --> 00:22:29,399 Speaker 2: When Spain and Portugal brought back all. 507 00:22:29,320 --> 00:22:32,280 Speaker 1: The silver from Peru, it created inflation asset bubbles, and 508 00:22:32,320 --> 00:22:34,080 Speaker 1: so we can see that these asset bubbles have gone 509 00:22:34,119 --> 00:22:34,680 Speaker 1: throughout history. 510 00:22:34,720 --> 00:22:35,440 Speaker 2: One of the most. 511 00:22:35,240 --> 00:22:38,320 Speaker 1: Famous ones is in the sixteen thirties, and it's the 512 00:22:38,320 --> 00:22:40,960 Speaker 1: most ridiculous one in my opinion, But that's in the 513 00:22:40,960 --> 00:22:41,800 Speaker 1: benefit of hindsight. 514 00:22:41,840 --> 00:22:43,520 Speaker 2: I guess if you lived through it, you didn't see it. 515 00:22:43,560 --> 00:22:48,480 Speaker 1: But it's the Dutch tulip bubble, and basically tulips. Yes, 516 00:22:48,520 --> 00:22:51,640 Speaker 1: the flower went into a big bubble and the prices 517 00:22:51,760 --> 00:22:56,800 Speaker 1: soared twenty times on flowers, they're just scarce. Everybody won 518 00:22:56,840 --> 00:22:58,959 Speaker 1: the tulip and then went up twenty times and then 519 00:22:59,000 --> 00:23:01,080 Speaker 1: it crashed all the way back down nine nine percent 520 00:23:01,119 --> 00:23:03,119 Speaker 1: of its value, lost it all. Now, one of the 521 00:23:03,119 --> 00:23:05,000 Speaker 1: things that defined that to the bubble. People might can 522 00:23:05,280 --> 00:23:08,440 Speaker 1: compare that to the bitcoin bubble is that bitcoin has 523 00:23:08,520 --> 00:23:12,320 Speaker 1: crashed ninety you know, eighty percent, eighty percent, seventy percent 524 00:23:12,359 --> 00:23:15,439 Speaker 1: many times, but it always comes back. The tula bubble 525 00:23:15,800 --> 00:23:18,320 Speaker 1: never did it crash, never came back. Seventeen twenty we 526 00:23:18,359 --> 00:23:20,879 Speaker 1: had the South Sea bubble. Shares of the company served 527 00:23:20,920 --> 00:23:25,359 Speaker 1: more than eight times before collapsing. But more specifically, and 528 00:23:25,400 --> 00:23:27,760 Speaker 1: this is really more about central bank policy, in the 529 00:23:27,840 --> 00:23:30,960 Speaker 1: nineteen eighties, we saw Japan's real estate and stock market 530 00:23:30,960 --> 00:23:35,199 Speaker 1: bubble crash. Values tripled after the stimulus that they put in, 531 00:23:35,240 --> 00:23:37,560 Speaker 1: and then the bubble burst in nineteen ninety one. So 532 00:23:37,760 --> 00:23:41,080 Speaker 1: nineteen eighty all the stimulus values of land in real 533 00:23:41,160 --> 00:23:43,080 Speaker 1: estate tripled, and then nineteen ninety one it crashed. 534 00:23:43,080 --> 00:23:43,840 Speaker 2: It's never come back. 535 00:23:44,440 --> 00:23:47,240 Speaker 1: We saw then all the money went to the US. 536 00:23:47,720 --> 00:23:49,720 Speaker 1: We saw in the nineteen nineties we had the dot 537 00:23:49,760 --> 00:23:52,720 Speaker 1: com bubble, So really from nineteen ninety five to two thousand, 538 00:23:53,160 --> 00:23:55,920 Speaker 1: dot com prices went to the moon and then crashed down, 539 00:23:56,920 --> 00:24:00,640 Speaker 1: and then the Fed changed interest rates to then try 540 00:24:00,680 --> 00:24:03,680 Speaker 1: to restimate the market, so then everybody plowed into real estate, 541 00:24:03,920 --> 00:24:06,840 Speaker 1: which then led to the two thousand and six housing 542 00:24:06,880 --> 00:24:10,600 Speaker 1: bubble crash. So every time the FED tries to save things, 543 00:24:10,920 --> 00:24:13,280 Speaker 1: they fix one problem, but they cause another problem somewhere. 544 00:24:13,280 --> 00:24:15,000 Speaker 1: Eld sort of like I plug my finger in the 545 00:24:15,080 --> 00:24:17,119 Speaker 1: damn hole here, and then we have a hole in 546 00:24:17,160 --> 00:24:18,840 Speaker 1: the dam over here, and then I put this finger 547 00:24:18,880 --> 00:24:20,359 Speaker 1: and then toes and you get the point. 548 00:24:21,080 --> 00:24:23,040 Speaker 2: And so that is how they're created. 549 00:24:23,400 --> 00:24:27,639 Speaker 1: Low interest rates because then people borrow more money easy credit. 550 00:24:27,760 --> 00:24:31,399 Speaker 1: The banks give credit to almost anybody speculation, so people 551 00:24:31,440 --> 00:24:33,399 Speaker 1: then start speculating, like I said, stand in line to 552 00:24:33,440 --> 00:24:38,439 Speaker 1: buy all these houses, and that leads to a mania. 553 00:24:39,200 --> 00:24:42,480 Speaker 1: Now these are sort of the causes of that, right, 554 00:24:43,280 --> 00:24:46,960 Speaker 1: Basically an expansion of the money supply because it was easy, 555 00:24:47,080 --> 00:24:49,680 Speaker 1: it was easy to get, they'd give it to basically anybody. 556 00:24:49,840 --> 00:24:52,439 Speaker 1: In that movie The Big Short, they I think some 557 00:24:52,520 --> 00:24:53,879 Speaker 1: of the team. They went out to Florida to go 558 00:24:53,880 --> 00:24:55,639 Speaker 1: look at some of the real estate in Florida, and 559 00:24:55,920 --> 00:24:58,439 Speaker 1: like they were talking to people like, what do you 560 00:24:58,520 --> 00:25:00,600 Speaker 1: own three houses? I mean, like they'd just give them 561 00:25:00,600 --> 00:25:04,040 Speaker 1: to anybody. I recently went back and watched that movie again. 562 00:25:04,080 --> 00:25:05,480 Speaker 2: It's a good movie. You should watch it if you 563 00:25:05,560 --> 00:25:06,320 Speaker 2: haven't already. 564 00:25:07,040 --> 00:25:09,479 Speaker 1: But the thing is is, like I said, everything Bubble 565 00:25:10,200 --> 00:25:12,880 Speaker 1: seems to be in a general consensus that we're in 566 00:25:12,920 --> 00:25:14,120 Speaker 1: that there's a few detractors. 567 00:25:14,119 --> 00:25:16,639 Speaker 2: I'm gonna talk about that in a second. But again, 568 00:25:16,920 --> 00:25:18,119 Speaker 2: when will it happen? 569 00:25:18,160 --> 00:25:19,919 Speaker 1: Now? Who are some of these naysayers? Well, some of 570 00:25:19,920 --> 00:25:23,280 Speaker 1: these naysayers are like Larry Summers. Summers is a former 571 00:25:23,480 --> 00:25:24,840 Speaker 1: US Treasury secretary. 572 00:25:24,840 --> 00:25:26,439 Speaker 2: So that's Janet Yellen's job today. 573 00:25:26,840 --> 00:25:29,600 Speaker 1: I would mention to you by the way that the 574 00:25:29,720 --> 00:25:33,320 Speaker 1: US Treasury, it runs the government's budget, the fiscal budget. 575 00:25:34,160 --> 00:25:38,160 Speaker 1: Janet Yellen is like a full on Kinsian, a full 576 00:25:38,200 --> 00:25:43,680 Speaker 1: on modern monetary theorist at MMT. She believes in just 577 00:25:43,760 --> 00:25:45,400 Speaker 1: printing money tel infinity. 578 00:25:45,640 --> 00:25:47,320 Speaker 2: That's what she believes. And so. 579 00:25:48,760 --> 00:25:50,639 Speaker 1: For her, of course this isn't a problem because we 580 00:25:50,640 --> 00:25:52,080 Speaker 1: can create as much money as we want and it's 581 00:25:52,160 --> 00:25:54,639 Speaker 1: never a problem to her. Larry Summers also feels the 582 00:25:54,680 --> 00:25:58,159 Speaker 1: same way. In twenty nineteen, he said that everything bubble 583 00:25:58,320 --> 00:26:01,040 Speaker 1: was a myth, That's what he called it. He said 584 00:26:01,040 --> 00:26:03,200 Speaker 1: the asset prices were not out of line with historical 585 00:26:03,240 --> 00:26:07,760 Speaker 1: norms and that there was no evidence of widespread speculation. 586 00:26:08,240 --> 00:26:10,040 Speaker 1: Let's break that down for a second. So he said 587 00:26:10,080 --> 00:26:12,280 Speaker 1: the same thing as Janet Yellen. No, they're not out 588 00:26:12,280 --> 00:26:14,399 Speaker 1: of line with historical norms. Well, I already told you 589 00:26:14,440 --> 00:26:17,480 Speaker 1: they are. Holmes went from thirty thousand to three hundred 590 00:26:17,480 --> 00:26:21,080 Speaker 1: thousand the pe ratio of stocks, So even if you 591 00:26:21,080 --> 00:26:23,320 Speaker 1: want to take a inflation out of the equation, the 592 00:26:23,320 --> 00:26:26,399 Speaker 1: pe ratio in stocks is out of alignment. But he 593 00:26:26,440 --> 00:26:30,000 Speaker 1: said there was no evidence of widespread speculation. Sort of 594 00:26:30,080 --> 00:26:32,440 Speaker 1: like paying I don't know, one hundred thousand dollars for 595 00:26:32,440 --> 00:26:37,600 Speaker 1: a digital jpeg. I think somebody paid sixty eight thousand. 596 00:26:37,840 --> 00:26:38,199 Speaker 2: I don't know. 597 00:26:38,240 --> 00:26:40,439 Speaker 1: I want to say it was like eighteen million for 598 00:26:40,480 --> 00:26:42,520 Speaker 1: a piece of invisible art. 599 00:26:43,840 --> 00:26:45,399 Speaker 2: Invisible art, how do you even know if you got it? 600 00:26:45,400 --> 00:26:46,439 Speaker 2: How do you know if they delivered it to you? 601 00:26:46,520 --> 00:26:47,960 Speaker 2: I don't know. I can't see. It's invisible. 602 00:26:49,400 --> 00:26:52,720 Speaker 1: I would call that widespread speculation. If you haven't seen 603 00:26:52,760 --> 00:26:56,000 Speaker 1: what's happening in the crypto space, the blockchain space, the 604 00:26:56,080 --> 00:26:58,720 Speaker 1: NFT space today, the AI space, I would say that's 605 00:26:58,760 --> 00:27:02,720 Speaker 1: widespread speculation. Paul Krugman, a Nobel Prize winning economists, argued 606 00:27:02,720 --> 00:27:05,240 Speaker 1: in twenty twenty that the everything bubble is just a 607 00:27:05,240 --> 00:27:08,280 Speaker 1: scary story and it was not supported by any data 608 00:27:08,320 --> 00:27:12,080 Speaker 1: at all. But he also said that asset prices were 609 00:27:12,080 --> 00:27:13,399 Speaker 1: not as high as they were in the run up 610 00:27:13,400 --> 00:27:15,280 Speaker 1: to two thousand and eight. There's no sign of wide 611 00:27:15,280 --> 00:27:16,040 Speaker 1: spread speculation. 612 00:27:16,640 --> 00:27:17,160 Speaker 2: So who to. 613 00:27:17,119 --> 00:27:20,159 Speaker 1: Believe, Well, don't worry. I'm going to bring back the 614 00:27:20,200 --> 00:27:21,920 Speaker 1: facts and the data, so you don't have. 615 00:27:21,840 --> 00:27:22,439 Speaker 2: To believe anybody. 616 00:27:22,520 --> 00:27:25,000 Speaker 1: Let's just look at the cold hard facts and see 617 00:27:25,040 --> 00:27:26,680 Speaker 1: what some other people had to say about. 618 00:27:26,440 --> 00:27:27,119 Speaker 2: This everything bubble. 619 00:27:27,119 --> 00:27:28,240 Speaker 1: And like I said, we're going to talk about what 620 00:27:28,240 --> 00:27:30,560 Speaker 1: are the alarm bells that you should be watching paying 621 00:27:30,560 --> 00:27:32,600 Speaker 1: attention to, because we don't know what's going to crash, 622 00:27:32,640 --> 00:27:34,680 Speaker 1: But if you're watching these signs, you'll know when we're 623 00:27:34,680 --> 00:27:37,000 Speaker 1: getting closer, and then ultimately what should be. 624 00:27:36,960 --> 00:27:38,159 Speaker 2: Doing and how to protect yourself. 625 00:27:38,240 --> 00:27:39,720 Speaker 1: If you're just tuning in your listening to the Mark 626 00:27:39,760 --> 00:27:41,720 Speaker 1: Mass show breaking all this down the everything bubble. 627 00:27:41,760 --> 00:27:43,800 Speaker 2: But I gotta take a quick break back with more 628 00:27:43,840 --> 00:27:46,720 Speaker 2: in a minute, so don't go away. I'll bear back. 629 00:27:48,640 --> 00:27:49,360 Speaker 2: All right, welcome back. 630 00:27:49,359 --> 00:27:50,800 Speaker 1: If you're just tuning in, you're listening to the Mark 631 00:27:50,840 --> 00:27:54,040 Speaker 1: mass Show. We're talking about the everything bubble. You've heard 632 00:27:54,040 --> 00:27:56,439 Speaker 1: that term, and we're covering what it is, what are 633 00:27:56,480 --> 00:27:58,399 Speaker 1: the causes, what are the alarm bells, and how to 634 00:27:58,520 --> 00:28:01,480 Speaker 1: protect yourself. Now, if you've missed any man, you've missed 635 00:28:01,480 --> 00:28:02,320 Speaker 1: a lot, but don't worry. 636 00:28:02,359 --> 00:28:02,880 Speaker 2: I got your back. 637 00:28:03,040 --> 00:28:05,280 Speaker 1: Check it out on the podcast. Just search the Mark 638 00:28:05,359 --> 00:28:08,520 Speaker 1: Moss Show on your favorite podcast player, or go to 639 00:28:08,600 --> 00:28:12,840 Speaker 1: YouTube and search Market Disruptors and you can find all 640 00:28:12,880 --> 00:28:15,000 Speaker 1: of my past episodes and you can watch me and 641 00:28:15,080 --> 00:28:15,560 Speaker 1: listen to me. 642 00:28:15,560 --> 00:28:16,240 Speaker 2: At the same time. 643 00:28:16,480 --> 00:28:18,800 Speaker 1: Now we're talking about this everything bubble, and like I said, 644 00:28:18,960 --> 00:28:22,560 Speaker 1: we are in a bubble, because we're always in a bubble. 645 00:28:22,600 --> 00:28:24,200 Speaker 1: So for people to say that we're not, it's sort 646 00:28:24,200 --> 00:28:26,960 Speaker 1: of ridiculous. It's just at what stage are we in? 647 00:28:27,040 --> 00:28:29,119 Speaker 1: That's really I think what is open for debate. So 648 00:28:29,800 --> 00:28:32,280 Speaker 1: what are the alarm bells that we should be watching 649 00:28:32,359 --> 00:28:37,320 Speaker 1: for and what eventually happens? And then of course, yes, 650 00:28:37,320 --> 00:28:39,520 Speaker 1: what should we do about it? So, you know, some 651 00:28:39,600 --> 00:28:43,400 Speaker 1: of the alarm bells are when we see that the 652 00:28:43,480 --> 00:28:46,560 Speaker 1: abundance of the abundance of money, the money supply is 653 00:28:46,640 --> 00:28:49,240 Speaker 1: going up way too fast, sort of like what we 654 00:28:49,240 --> 00:28:51,160 Speaker 1: saw from twenty twenty to twenty twenty two. 655 00:28:52,400 --> 00:28:53,080 Speaker 2: Sort of like that. 656 00:28:53,520 --> 00:28:55,920 Speaker 1: Now, one of my friends, Jeff Booth, I've had him 657 00:28:55,960 --> 00:28:57,520 Speaker 1: on my show, We've done a couple of interviews. Check 658 00:28:57,560 --> 00:28:59,880 Speaker 1: him out on my Mark Moss channel. Jeff Booth, and 659 00:29:00,080 --> 00:29:02,479 Speaker 1: it says that when we have an abundance of money, 660 00:29:03,520 --> 00:29:08,080 Speaker 1: we have scarcity and everything else. When we have scarcity 661 00:29:08,080 --> 00:29:11,240 Speaker 1: of money, we have abundance of everything else. 662 00:29:11,520 --> 00:29:12,240 Speaker 2: So think about that. 663 00:29:12,480 --> 00:29:14,640 Speaker 1: Remember, because we don't want money, what we want is 664 00:29:14,680 --> 00:29:15,920 Speaker 1: the goods and services. 665 00:29:15,560 --> 00:29:16,520 Speaker 2: That money buys us. 666 00:29:17,080 --> 00:29:18,840 Speaker 1: And so as I said, we have to divide the 667 00:29:18,840 --> 00:29:21,000 Speaker 1: money buy the goods and services. Now, if I increase 668 00:29:21,080 --> 00:29:25,840 Speaker 1: the money supply, then I've increased the demand. So now 669 00:29:25,840 --> 00:29:29,560 Speaker 1: there's more demand, there's more money chasing the same limited 670 00:29:29,600 --> 00:29:32,840 Speaker 1: goods and services. So if I create more money, abundance 671 00:29:32,840 --> 00:29:35,760 Speaker 1: and money, then all that money tries to go out 672 00:29:35,760 --> 00:29:37,200 Speaker 1: and buy all the goods and services. 673 00:29:37,280 --> 00:29:38,400 Speaker 2: So then there's scarcity. 674 00:29:39,240 --> 00:29:42,840 Speaker 1: Right, That's what happened in twenty twenty between the Fed 675 00:29:43,040 --> 00:29:45,880 Speaker 1: monetary and fiscal stimulus that went out all that stemmi money, 676 00:29:46,360 --> 00:29:48,800 Speaker 1: trillions of dollars. Everybody started going to buy things. You 677 00:29:48,800 --> 00:29:51,200 Speaker 1: couldn't get a bicycle or a kayak or a surfboard 678 00:29:51,280 --> 00:29:54,680 Speaker 1: or a dirt bike or anything. Supply chains were broken down, 679 00:29:54,800 --> 00:29:58,000 Speaker 1: and so there was scarcity of everything because there's too 680 00:29:58,080 --> 00:30:02,560 Speaker 1: much demand, too much buying. There's scarcity of money. Then 681 00:30:02,560 --> 00:30:07,120 Speaker 1: there's abundance everywhere else. Now you lower the demand scarcity 682 00:30:07,120 --> 00:30:09,840 Speaker 1: of money, and no one's going out to buy all 683 00:30:09,880 --> 00:30:13,400 Speaker 1: that supply. So now we have abundance. So which sounds better? 684 00:30:14,000 --> 00:30:16,400 Speaker 1: Do you want abundance of Do you want scarcity of 685 00:30:16,680 --> 00:30:18,640 Speaker 1: goods and services that you can buy? Or do you 686 00:30:18,680 --> 00:30:20,880 Speaker 1: want abundance? Well, of course we want abundance, right, we 687 00:30:20,920 --> 00:30:24,000 Speaker 1: want more goods and services. I want more options, more selections. 688 00:30:24,040 --> 00:30:25,640 Speaker 1: I want it on the shelf when I want I 689 00:30:25,680 --> 00:30:27,920 Speaker 1: don't want to pre order it six months or twelve 690 00:30:27,960 --> 00:30:29,880 Speaker 1: months in advance. When I want that new car, I 691 00:30:29,920 --> 00:30:31,240 Speaker 1: want the new car now. I don't want to have 692 00:30:31,240 --> 00:30:32,960 Speaker 1: to worry that it's waiting on a microchip set on 693 00:30:32,960 --> 00:30:36,160 Speaker 1: some lots somewhere. Some of the things that have caused 694 00:30:36,280 --> 00:30:39,720 Speaker 1: is is when we start to see that to the 695 00:30:39,800 --> 00:30:41,320 Speaker 1: kind of point that Paul Kru was saying that we 696 00:30:41,360 --> 00:30:44,840 Speaker 1: haven't seen the speculation, but the speculation happens when commodities 697 00:30:45,400 --> 00:30:49,640 Speaker 1: turn into financial assets. So for example, your house should 698 00:30:49,640 --> 00:30:52,320 Speaker 1: be your home, that's where you live with your family, 699 00:30:52,320 --> 00:30:53,480 Speaker 1: with your kids, so they can grow up in the 700 00:30:53,480 --> 00:30:55,880 Speaker 1: same neighborhood with their friends. But houses have become a 701 00:30:55,920 --> 00:31:00,120 Speaker 1: financial asset. So now since I can't keep money in 702 00:31:00,160 --> 00:31:02,320 Speaker 1: the bank, I got to go put it somewhere. 703 00:31:02,440 --> 00:31:03,400 Speaker 2: Where should I put it? 704 00:31:03,560 --> 00:31:05,200 Speaker 1: Well, I guess I'll put it into gold. So the 705 00:31:05,200 --> 00:31:06,719 Speaker 1: price of gold goes up. I guess I'll put it 706 00:31:06,720 --> 00:31:08,800 Speaker 1: into these stocks. Of the price of the stocks with 707 00:31:08,920 --> 00:31:10,959 Speaker 1: I guess I'll buy real estate with it, and the 708 00:31:11,000 --> 00:31:13,360 Speaker 1: price of real estate goes up. But the problem is 709 00:31:13,360 --> 00:31:16,520 Speaker 1: is real estate is no longer affordable anymore because you 710 00:31:16,520 --> 00:31:19,760 Speaker 1: have so many people buying real estate as a financial 711 00:31:19,840 --> 00:31:22,520 Speaker 1: asset instead of just the utility value that the home 712 00:31:22,560 --> 00:31:26,000 Speaker 1: provides or should provide. Gold has utility value. We can 713 00:31:26,120 --> 00:31:29,320 Speaker 1: use it for connectivity. It can transmit you know, audio 714 00:31:29,360 --> 00:31:32,760 Speaker 1: video very very well. But the price of gold is 715 00:31:32,840 --> 00:31:34,840 Speaker 1: up too high to really be used in that way 716 00:31:35,160 --> 00:31:38,880 Speaker 1: because of the financial speculation. Because I can't save in 717 00:31:39,120 --> 00:31:41,600 Speaker 1: money and in currency, so I'll put it into gold. 718 00:31:42,080 --> 00:31:44,880 Speaker 1: I can't save in money, so I'll put it into housing. 719 00:31:45,600 --> 00:31:50,200 Speaker 1: The commodities themselves turn into financial assets. And when we 720 00:31:50,320 --> 00:31:53,840 Speaker 1: have when we combine this low debt, the cheap debt 721 00:31:54,040 --> 00:31:57,720 Speaker 1: meaning interest rates are low, and credit easy credit policies, 722 00:31:58,080 --> 00:32:00,360 Speaker 1: so we have low cost of debt, but we have 723 00:32:00,520 --> 00:32:01,360 Speaker 1: high inflation. 724 00:32:01,960 --> 00:32:03,840 Speaker 2: That leads to what's called a speculative attack. 725 00:32:03,960 --> 00:32:07,040 Speaker 1: So then we have periods where inflation is raging like 726 00:32:07,040 --> 00:32:09,719 Speaker 1: we saw in twenty twenty one twenty twenty two. Inflation's 727 00:32:09,920 --> 00:32:13,000 Speaker 1: seven eight percent, But I can borrow at three percent, 728 00:32:13,920 --> 00:32:15,440 Speaker 1: So what's going to happen. Well, then I'm going to 729 00:32:15,480 --> 00:32:18,000 Speaker 1: go borrow as much money as I possibly can at 730 00:32:18,000 --> 00:32:21,640 Speaker 1: the three percent and invest it because of the inflation 731 00:32:21,720 --> 00:32:22,400 Speaker 1: is at eight percent. 732 00:32:22,600 --> 00:32:23,680 Speaker 2: And what does that do, Well, that. 733 00:32:23,760 --> 00:32:26,480 Speaker 1: Only speeds up the doom loop. So now I'm doing 734 00:32:26,480 --> 00:32:28,360 Speaker 1: that with real estate, which pushes the price of real 735 00:32:28,440 --> 00:32:31,880 Speaker 1: estate up up even more because it's a financial asset 736 00:32:31,960 --> 00:32:33,840 Speaker 1: and not for the utility value of being a home. 737 00:32:34,040 --> 00:32:36,720 Speaker 1: And then unfortunately for the majority of people, they get 738 00:32:36,720 --> 00:32:38,920 Speaker 1: priced out of the market. They can no longer afford 739 00:32:39,040 --> 00:32:39,480 Speaker 1: that home. 740 00:32:39,600 --> 00:32:41,960 Speaker 2: Now, where does this go? Well? 741 00:32:42,520 --> 00:32:45,440 Speaker 1: One of the godfathers of the Austrian school of economics, 742 00:32:45,920 --> 00:32:49,840 Speaker 1: Ludwig von Misis, which you should definitely read his work. 743 00:32:50,160 --> 00:32:51,080 Speaker 2: I'll warn you in advance. 744 00:32:51,120 --> 00:32:54,440 Speaker 1: It's not an easy read. These guys were so smart. 745 00:32:54,800 --> 00:32:57,280 Speaker 1: It's a very academic read. But you can go on 746 00:32:57,320 --> 00:33:01,680 Speaker 1: to Mesis dot org, sees dot orgg mes dot org 747 00:33:01,720 --> 00:33:04,000 Speaker 1: and they have like all kinds of his work and 748 00:33:04,040 --> 00:33:06,880 Speaker 1: other Austrian economists work, and most of it's all for free. 749 00:33:06,960 --> 00:33:09,280 Speaker 1: You can download these books in like PDIA format for free. 750 00:33:09,360 --> 00:33:11,760 Speaker 1: You could buy the books from them as well. There's 751 00:33:12,000 --> 00:33:15,280 Speaker 1: tons and tons, thousands and thousands of articles. Highly highly 752 00:33:15,320 --> 00:33:18,840 Speaker 1: highly recommend you to go check that out. But a 753 00:33:18,880 --> 00:33:22,920 Speaker 1: little Glamisis wrote something called the crack Up Boom, and 754 00:33:22,960 --> 00:33:27,840 Speaker 1: he says, but then finally the masses wake up. Suddenly, 755 00:33:28,120 --> 00:33:31,280 Speaker 1: the masses wake up. People wake up. They become suddenly 756 00:33:31,320 --> 00:33:35,440 Speaker 1: aware of the fact that inflation is a deliberate policy 757 00:33:35,760 --> 00:33:40,800 Speaker 1: that will go on endlessly. So you hear about the 758 00:33:40,840 --> 00:33:43,120 Speaker 1: FED and the government talking about inflation all the time. 759 00:33:43,880 --> 00:33:46,760 Speaker 1: The FED has a target of two percent inflation. Now 760 00:33:46,920 --> 00:33:50,880 Speaker 1: we overshot that to nine percent, but we're committed, Jerome palaceys, 761 00:33:50,880 --> 00:33:52,840 Speaker 1: we're committed to bringing it back down to two percent. 762 00:33:53,440 --> 00:33:53,960 Speaker 2: So great, So you. 763 00:33:54,000 --> 00:33:55,320 Speaker 1: Only want to steal two percent of my wealth per 764 00:33:55,400 --> 00:33:58,840 Speaker 1: year over five years, you want to take ten percent 765 00:33:58,880 --> 00:34:02,880 Speaker 1: of my life, my life savings. You want my standard 766 00:34:02,920 --> 00:34:06,400 Speaker 1: of living to drop by ten percent in the next 767 00:34:06,400 --> 00:34:09,520 Speaker 1: five years. That's what That's what they're saying, that's the goal. 768 00:34:09,640 --> 00:34:11,359 Speaker 1: So he says, sudden people will become aware that it's 769 00:34:11,400 --> 00:34:14,560 Speaker 1: deliver a deliberate policy. Now right now, they're starting to 770 00:34:14,600 --> 00:34:18,800 Speaker 1: be talk about changing the inflation rate up from two percent, 771 00:34:18,840 --> 00:34:21,440 Speaker 1: the target inflation rate from two percent to actually three percent, 772 00:34:22,560 --> 00:34:26,480 Speaker 1: so he says, Mysa says, then suddenly people wake up 773 00:34:26,480 --> 00:34:29,520 Speaker 1: that inflation is a deliberate policy. Yes, a deliberate policy. 774 00:34:29,560 --> 00:34:32,399 Speaker 1: They want to now make it three percent now where 775 00:34:32,400 --> 00:34:33,759 Speaker 1: they want to steal three percent of your life per 776 00:34:33,880 --> 00:34:36,719 Speaker 1: year and it will go on endlessly. Is the second part, 777 00:34:36,760 --> 00:34:38,960 Speaker 1: deliberate and endlessly? So yes, people are starting to be 778 00:34:39,000 --> 00:34:41,719 Speaker 1: pretty aware of that. And then he says a breakdown 779 00:34:41,800 --> 00:34:46,800 Speaker 1: starts to occur, and then the crackup boom begins to appear. 780 00:34:47,120 --> 00:34:52,360 Speaker 1: Everybody is anxious to swap his money against real goods. 781 00:34:53,239 --> 00:34:54,720 Speaker 2: So again, I don't. 782 00:34:54,520 --> 00:34:56,480 Speaker 1: Want to hold the money in the bank the money. 783 00:34:56,719 --> 00:34:58,279 Speaker 1: What I want is the real goods. I'm going to 784 00:34:58,320 --> 00:35:01,319 Speaker 1: go buy houses, shoot two or three houses. I talk 785 00:35:01,360 --> 00:35:02,840 Speaker 1: about this all the time. I don't look at my 786 00:35:02,840 --> 00:35:05,440 Speaker 1: investments as investments. I like to think of them as savings. 787 00:35:05,640 --> 00:35:07,640 Speaker 1: So I make my money in my business and then 788 00:35:07,680 --> 00:35:08,279 Speaker 1: I save it. 789 00:35:08,320 --> 00:35:09,120 Speaker 2: Where do I save it? 790 00:35:09,160 --> 00:35:10,800 Speaker 1: I save it in gold, I save it in bitcoin. 791 00:35:10,880 --> 00:35:13,439 Speaker 1: I save it in real estate. Everybody's anxious to swap 792 00:35:13,480 --> 00:35:16,319 Speaker 1: his money against real goods, no matter how much money 793 00:35:16,320 --> 00:35:18,480 Speaker 1: he has to pay for them. So it doesn't matter 794 00:35:18,480 --> 00:35:19,359 Speaker 1: how high the prices of. 795 00:35:19,280 --> 00:35:19,960 Speaker 2: The homes go up. 796 00:35:20,120 --> 00:35:22,880 Speaker 1: He's going to buy him anyway, because they don't. 797 00:35:22,640 --> 00:35:24,600 Speaker 2: Want the money. They want real goods. 798 00:35:24,600 --> 00:35:27,319 Speaker 1: And he says it here, no matter how much he 799 00:35:27,440 --> 00:35:29,600 Speaker 1: has to pay for them. And it says within a 800 00:35:29,680 --> 00:35:31,760 Speaker 1: very short time, within a few weeks or even days, 801 00:35:32,080 --> 00:35:34,640 Speaker 1: the things which were used as money are no longer 802 00:35:34,760 --> 00:35:38,440 Speaker 1: used as a medium of exchange. They become a scrap 803 00:35:38,719 --> 00:35:42,919 Speaker 1: of paper that nobody wants to give away anything against them. 804 00:35:42,960 --> 00:35:46,719 Speaker 1: So if you look at like you know Venezuela, Zimbabwe 805 00:35:46,880 --> 00:35:49,440 Speaker 1: two of the best examples of this massive inflation that. 806 00:35:49,360 --> 00:35:49,879 Speaker 2: We can see. 807 00:35:49,960 --> 00:35:52,120 Speaker 1: And it's good sometimes to take things to their extremes 808 00:35:52,200 --> 00:35:56,239 Speaker 1: you can understand them better. So in Venezuelan, Venezuela, well, 809 00:35:56,320 --> 00:35:59,800 Speaker 1: Argentina too today. But Venezuelan and Zimbabwe had massive inflation. 810 00:36:00,880 --> 00:36:04,640 Speaker 1: Why am I republican? Germany as well? Nobody wanted the 811 00:36:04,640 --> 00:36:07,279 Speaker 1: paper money, so you can see pictures in Venezuela of 812 00:36:07,320 --> 00:36:09,680 Speaker 1: literally the money is just laying in the streets. 813 00:36:10,040 --> 00:36:11,319 Speaker 2: No one's even going to pick it up. 814 00:36:11,440 --> 00:36:15,799 Speaker 1: No merchant would exchange their goods and services against them. 815 00:36:16,040 --> 00:36:16,680 Speaker 2: So what do you do? 816 00:36:16,840 --> 00:36:20,160 Speaker 1: Well, what you do is that you do that you 817 00:36:20,200 --> 00:36:23,960 Speaker 1: don't hold onto the paper currency. You buy assets. You 818 00:36:24,000 --> 00:36:30,160 Speaker 1: buy real things, land, houses, gold, bitcoin, You buy real 819 00:36:30,280 --> 00:36:34,600 Speaker 1: things that aren't affected. If all my money gets inflated away, 820 00:36:34,640 --> 00:36:36,080 Speaker 1: but I have a ranch with a one hundred and fifty 821 00:36:36,120 --> 00:36:38,480 Speaker 1: head of cattle, I still have one hundred and fifty 822 00:36:38,480 --> 00:36:42,399 Speaker 1: head of cattle. That doesn't change. That's the real thing. 823 00:36:42,800 --> 00:36:43,480 Speaker 2: And you should just know. 824 00:36:43,600 --> 00:36:48,040 Speaker 1: As this continues to evolve, unfortunately social social unrest picks 825 00:36:48,120 --> 00:36:50,000 Speaker 1: up and things like that, and so we want to 826 00:36:50,000 --> 00:36:52,160 Speaker 1: make sure that we have money that gives us more 827 00:36:52,280 --> 00:36:56,120 Speaker 1: options to work around the uncertainty that this creates. But 828 00:36:56,320 --> 00:37:01,160 Speaker 1: back to Mesus's point, when people realize it's intentional and permanent, 829 00:37:01,480 --> 00:37:03,399 Speaker 1: and I think you can see that inflation is both 830 00:37:03,400 --> 00:37:06,120 Speaker 1: of that, and so the everything boom continues. If you're 831 00:37:06,120 --> 00:37:07,879 Speaker 1: just tune in, you're listening to the Mark Mashaw, we've 832 00:37:07,880 --> 00:37:11,279 Speaker 1: been talking about the everything bubble today. Hopefully this makes 833 00:37:11,280 --> 00:37:13,240 Speaker 1: some sense of what's going on, what you should be paying. 834 00:37:13,120 --> 00:37:14,440 Speaker 2: Attention to, and what you should do. 835 00:37:14,800 --> 00:37:16,080 Speaker 1: Hit me up on social media, let me know what 836 00:37:16,120 --> 00:37:18,680 Speaker 1: you think, as always, and that's what I got. Thanks 837 00:37:18,719 --> 00:37:19,440 Speaker 1: so much for listening.