WEBVTT - The Everything Bubble Explained: Origins, Timeline, and Key Indicators to Watch 0:00:00.280 --> 0:00:03.040 Hello, and welcome to another episode of The Mark Moss Show, where, 0:00:03.040 --> 0:00:06.600 of course we're always talking about the decentralized revolution, talking 0:00:06.600 --> 0:00:09.920 about the way the world is changing. Yes, it is, 0:00:10.160 --> 0:00:12.680 have you noticed? And it's changing right before our eyes. Now, 0:00:12.680 --> 0:00:16.440 it's always technology that changes the world, but it changes 0:00:16.480 --> 0:00:20.000 it through three spheres. There's the political, the social sphere, 0:00:20.040 --> 0:00:24.400 there's the financial sphere, and then there's the technology. Technology 0:00:24.400 --> 0:00:26.239 is the driver and we look at it from all 0:00:26.320 --> 0:00:28.479 three of those angles. Of course, we talk about bitcoin 0:00:28.560 --> 0:00:32.320 being this decentralized technology that's changing the world. And today 0:00:32.360 --> 0:00:34.560 we have a big show. I want to talk about 0:00:35.120 --> 0:00:38.760 the everything bubble. You've been hearing it all over. What 0:00:38.960 --> 0:00:41.360 is the everything bubble? Where did it come from, what's 0:00:41.400 --> 0:00:44.040 the timelines, what are the key indicators that we should 0:00:44.040 --> 0:00:46.919 be watching, what's the danger because of this? And what 0:00:47.000 --> 0:00:51.000 should we be doing to protect ourselves from the everything bubble. 0:00:51.120 --> 0:00:52.920 We're going to dig into all of that. How to 0:00:52.960 --> 0:00:56.320 protect your wealth, how to protect your family, what the 0:00:56.360 --> 0:00:59.520 experts are saying, and so much more. Now, I just 0:00:59.520 --> 0:01:01.840 want to do a shout out. I don't typically do this, 0:01:02.200 --> 0:01:05.479 but just shout out to a company called Don't Tread 0:01:05.560 --> 0:01:07.560 on Me. You can find them on Don't tread on 0:01:07.640 --> 0:01:09.680 Me dot com and they were nice enough to send 0:01:09.760 --> 0:01:12.280 me a couple of shirts. You can see it right here. 0:01:12.520 --> 0:01:15.000 They see that I use this coffee mug all the time, 0:01:15.040 --> 0:01:17.240 says don't tread on Me. And I bought this at 0:01:17.319 --> 0:01:20.080 BUCkies in Texas. Shout out to BUCkies. But they see 0:01:20.080 --> 0:01:21.840 that I use this, and so they sent me a 0:01:21.880 --> 0:01:24.400 whole box full of gear. So I didn't want to 0:01:24.400 --> 0:01:26.600 shout out to them, and I just want to talk 0:01:26.600 --> 0:01:28.800 about it for a second. You know, the reason why 0:01:28.840 --> 0:01:33.080 I like this mug is to me, this symbol could 0:01:33.080 --> 0:01:36.240 mean lots of things to lots of different people. And 0:01:36.560 --> 0:01:39.000 some people might tell you it's I don't know, racist, 0:01:39.240 --> 0:01:42.400 or supports slavery. I don't know what they want to say. 0:01:42.400 --> 0:01:44.520 I don't care about any of that. What I want 0:01:44.560 --> 0:01:46.760 to say is what it means to me. Now, this 0:01:46.840 --> 0:01:52.720 goes back to the American the original colonial war, and 0:01:52.760 --> 0:01:55.160 it's been used many, many times as a symbol. Benjamin 0:01:55.200 --> 0:01:58.760 Franklin used it, and basically it means. 0:01:58.880 --> 0:01:59.600 It's like a warning. 0:01:59.640 --> 0:02:01.160 It was you used when it was created as a 0:02:01.200 --> 0:02:05.360 warning to Britain not to violate the liberties of its 0:02:05.400 --> 0:02:07.800 American subjects. That's what it was created for and that's 0:02:07.800 --> 0:02:11.600 how it was used originally warning to Britain not to 0:02:12.320 --> 0:02:14.799 violate the liberties of American subjects. And the reason why 0:02:14.800 --> 0:02:17.639 I like this is it's to me, it's a symbol 0:02:17.760 --> 0:02:19.040 of live and let live. 0:02:19.760 --> 0:02:22.240 Look, I'm gonna do meet. You're going to do you. 0:02:22.680 --> 0:02:24.000 Good job, you go do you. 0:02:24.320 --> 0:02:26.200 And the way that I think the world should work 0:02:26.280 --> 0:02:29.360 is that we should lead by example. I want to 0:02:29.360 --> 0:02:32.080 be a good example for my kids. I want to 0:02:32.080 --> 0:02:34.960 be a good example for my audience. My social media 0:02:34.960 --> 0:02:36.960 and stuff, you'll see me talking about things I do 0:02:37.040 --> 0:02:39.280 for business or coaching clients that I work with, helping 0:02:39.320 --> 0:02:41.519 their businesses grow, and I always do it from a 0:02:41.560 --> 0:02:44.639 place of this is what I am doing in my business. 0:02:45.000 --> 0:02:46.959 And then I might talk about these are things I've 0:02:47.000 --> 0:02:50.640 helped other businesses achieve, and it's always from a place 0:02:50.680 --> 0:02:54.799 of leading by example. I'm not going online. You won't 0:02:54.800 --> 0:02:56.600 see by my social media saying this is what. 0:02:56.560 --> 0:02:59.440 You should do. You need to do this, you see. 0:02:59.480 --> 0:03:02.280 And that's what I see is this big discrepancy between 0:03:02.360 --> 0:03:07.480 these two politically ideology separated sides that we see in 0:03:07.520 --> 0:03:09.920 the United States and really in the world today. You 0:03:09.919 --> 0:03:11.960 have one group of people who just want to be 0:03:12.040 --> 0:03:14.400 left alone, let me take care of myself and my 0:03:14.480 --> 0:03:17.080 family and just live my life, and then you have 0:03:17.080 --> 0:03:19.320 another group of people that constantly want to tell you 0:03:19.400 --> 0:03:22.720 how you should be living. And that's a problem. I 0:03:23.720 --> 0:03:25.480 was at an event I don't know about a year 0:03:25.480 --> 0:03:28.120 ago and somebody asked me, how do you know that 0:03:28.160 --> 0:03:30.919 you're on the right side, And I said, I had 0:03:30.919 --> 0:03:32.320 to think about that for a while, and I said, 0:03:32.520 --> 0:03:34.120 the reason why I think that I'm on the right 0:03:34.160 --> 0:03:37.440 side is because I'm on the side of freedom. I'm 0:03:37.480 --> 0:03:40.080 gonna do me, and you're going to do you. I'm 0:03:40.120 --> 0:03:43.440 not telling you what to do. I'm right because I'm 0:03:43.520 --> 0:03:46.040 only gonna I'm only going to discipline. I'm only going 0:03:46.080 --> 0:03:49.040 to manage myself. You do you. And so that's why 0:03:49.040 --> 0:03:52.080 I love this flag, the Gads. It's called the gads 0:03:52.080 --> 0:03:54.440 and flag. It says, don't tread on me, don't step 0:03:54.440 --> 0:03:57.080 on me. It's a rattlesnake, which means the rattlesnake is like, hey, 0:03:57.440 --> 0:03:59.480 let me go do my thing and I won't bother you. 0:04:00.080 --> 0:04:04.440 But here's the butt. But if you do come after me. 0:04:04.600 --> 0:04:08.240 If you do step on me, watch out. The rattlesnake 0:04:08.280 --> 0:04:10.280 has its tongue and its fangs out, and. 0:04:10.200 --> 0:04:12.560 So it's like, hey, live and let live. You do you, 0:04:12.760 --> 0:04:13.240 I'll do me. 0:04:13.400 --> 0:04:15.720 But if you want to come and harass me, back 0:04:15.760 --> 0:04:18.320 to its original attention to Britain, if you want to 0:04:18.320 --> 0:04:21.760 come and violate the liberties of American subjects and today, 0:04:22.080 --> 0:04:24.320 if you want to come and violate me, well then 0:04:24.960 --> 0:04:28.640 watch out. So I don't want to be violent. 0:04:28.640 --> 0:04:28.920 I don't. 0:04:29.000 --> 0:04:32.640 I don't advocate for it for any means. I believe 0:04:32.680 --> 0:04:35.400 in liberty for all live and let live. But if 0:04:35.440 --> 0:04:38.120 you come after me, then you better be prepared. And 0:04:38.160 --> 0:04:40.080 that's why I like this. And anyway, so shout out 0:04:40.120 --> 0:04:42.960 to this company. Don't tread on me dot com check 0:04:43.000 --> 0:04:44.960 them out. They were nice enough to send me, like 0:04:45.040 --> 0:04:47.400 I said, a whole box of goods. I don't typically 0:04:47.400 --> 0:04:49.080 wear anything other than a black shirt, but I wore 0:04:49.120 --> 0:04:51.480 this because it had like a light black print on it. 0:04:51.920 --> 0:04:55.520 Anyway, let's jump in too. We're talking about the everything bubble. 0:04:56.800 --> 0:04:58.320 You might have heard of that before. Now. 0:04:58.400 --> 0:05:01.400 Bubbles are when financial mark kids get frothy and they 0:05:01.440 --> 0:05:04.839 start rising, rising, rising, rising, rising, And like most bubbles, 0:05:04.839 --> 0:05:08.640 they eventually pop or they deflate. Right, a balloon deflates 0:05:08.720 --> 0:05:11.400 or it blows up, And so we can see that 0:05:11.440 --> 0:05:13.960 in financial markets, we have bubbles that are bubbling up 0:05:14.000 --> 0:05:16.359 as well, and they get very frothy, and at some 0:05:16.520 --> 0:05:19.440 point the bubble deflates. You have like a balloon with 0:05:19.480 --> 0:05:24.279 like a pinprick, and the whole thing deflates. Now I'm 0:05:24.279 --> 0:05:27.160 gonna we're gonna dig into, like I said, what they are, 0:05:27.279 --> 0:05:29.400 what are the causes of them, what the experts are 0:05:29.440 --> 0:05:31.359 saying about, and what the alarm bells are we should 0:05:31.360 --> 0:05:32.760 be watching. And then, of course, like I said, how 0:05:32.760 --> 0:05:34.960 you can protect yourself. But I also want to let 0:05:35.040 --> 0:05:40.599 you know that we're always in a bubble. We're always 0:05:40.600 --> 0:05:41.080 in a bubble. 0:05:41.400 --> 0:05:43.520 It's just at what stage of the bubble. 0:05:43.600 --> 0:05:47.000 Is the bubble just barely forming or are we all 0:05:47.040 --> 0:05:47.640 the way at the peak? 0:05:47.680 --> 0:05:47.840 Now? 0:05:47.880 --> 0:05:50.160 The problem with are we all the way at the 0:05:50.160 --> 0:05:53.720 peak is that we don't know. It's easy to see 0:05:53.760 --> 0:05:58.479 when reality is starting to separate from perception. That's what 0:05:58.520 --> 0:06:00.920 I call volatility, the difference of perception of reality. 0:06:00.920 --> 0:06:03.200 It's different. It's easy. 0:06:03.560 --> 0:06:07.040 We can see when prices are over their historical norms 0:06:07.160 --> 0:06:09.400 or below. If they're expensive or cheap. We can see that. 0:06:09.800 --> 0:06:13.000 What we don't know is when things will return back 0:06:13.040 --> 0:06:15.160 to their means or revert past their means. 0:06:15.160 --> 0:06:18.039 We don't know that. And so while it's easy to 0:06:18.040 --> 0:06:18.479 say we're in. 0:06:18.440 --> 0:06:19.480 A bubble, and I'm going to read from you, have 0:06:19.480 --> 0:06:22.360 a lot of people say we are in a bubble. Sure, 0:06:22.520 --> 0:06:23.719 I'll say that we're in a bubble too. 0:06:23.760 --> 0:06:26.240 I put my hat in the ring. We're in a bubble. 0:06:26.279 --> 0:06:27.960 But like I said, it doesn't mean that the bubble's 0:06:27.960 --> 0:06:30.200 going to pop today, tomorrow, next week, or next year, 0:06:30.720 --> 0:06:32.880 because these people have been calling for the bubble to 0:06:32.880 --> 0:06:35.520 pop for a long time. After the two thousand and 0:06:35.560 --> 0:06:37.960 eight financial crash, I've told my story many times. I 0:06:37.960 --> 0:06:40.080 had made a lot of money. I had an eight 0:06:40.080 --> 0:06:42.840 figure portfolio. I was young, I just had my first kid. 0:06:42.920 --> 0:06:45.440 I was done in life, and then out of nowhere, 0:06:45.520 --> 0:06:49.560 the great financial crash came and just knocked me on 0:06:49.600 --> 0:06:49.960 my rear. 0:06:50.040 --> 0:06:50.760 Let's just say that. 0:06:51.400 --> 0:06:54.280 And it was part because I didn't understand this financial system. 0:06:54.279 --> 0:06:57.360 I was focused on making money and I had done 0:06:57.360 --> 0:06:57.800 really well. 0:06:57.839 --> 0:06:58.920 I had multiple. 0:06:58.520 --> 0:07:02.359 Businesses, big big exits. I had developed a bunch of 0:07:02.360 --> 0:07:05.159 real estate, and I was sitting on an eight figure portfolio, 0:07:05.240 --> 0:07:06.919 and like I said, I was pretty much done. I 0:07:06.920 --> 0:07:10.520 had sold the businesses, etc. But the financial system that 0:07:10.560 --> 0:07:12.960 the Federal Reserve manipulates and other central banks around the 0:07:12.960 --> 0:07:15.840 world had control over my life. I wasn't paying attention 0:07:15.880 --> 0:07:17.560 to it. So I had to go figure that out. 0:07:18.000 --> 0:07:20.640 And so part of me rebuilding was figuring out the 0:07:20.680 --> 0:07:23.480 game of money. Who were the players, what's the objective 0:07:24.280 --> 0:07:26.560 and so forth. And the players are the government obviously 0:07:26.560 --> 0:07:28.560 the policy makers, but also the central banks, and there's 0:07:28.600 --> 0:07:31.120 other players as well, and I had to go figure 0:07:31.120 --> 0:07:34.320 that out. And once I figured that out, I quickly 0:07:34.560 --> 0:07:38.040 became a goldbug and I'm like, oh, shoot, the problem 0:07:38.080 --> 0:07:40.520 is this central bank policy and they're printing endless amounts 0:07:40.520 --> 0:07:42.520 of money, and every time they print money, that means 0:07:42.520 --> 0:07:44.119 asset prices go up, and then all of a sudden 0:07:44.120 --> 0:07:46.320 they take the money supply away and then asset prices 0:07:46.360 --> 0:07:46.800 come down. 0:07:46.920 --> 0:07:47.600 This is horrible. 0:07:47.640 --> 0:07:50.080 They're the ones costing this. It's their fault that the 0:07:50.080 --> 0:07:52.520 market's crashed and I lost all my money. The way 0:07:52.560 --> 0:07:54.880 to fix this is to go back to a sound 0:07:55.000 --> 0:07:57.800 money standard. And once I started to understand this, and 0:07:57.800 --> 0:08:00.720 I really started paying attention to the financial system. I 0:08:00.880 --> 0:08:04.000 kept thinking that it was going to crash again and 0:08:04.080 --> 0:08:06.800 again and again. Now being a real estate guy in 0:08:06.840 --> 0:08:10.400 twenty nine, ten, eleven, twelve, twenty twelve kind of mark 0:08:10.480 --> 0:08:11.360 the bottom of the market. 0:08:11.480 --> 0:08:14.760 How was the time to get back in thirteen and fourteen. 0:08:14.800 --> 0:08:16.520 But I kept thinking, no, no, no, no, it's going 0:08:16.520 --> 0:08:19.160 to crash again. The banks are insolvent. There's no way 0:08:19.160 --> 0:08:21.240 that can continue. Two thousand and eight didn't fix the banks. 0:08:21.280 --> 0:08:23.080 The banks are only worse off than they were before. 0:08:23.800 --> 0:08:26.120 I want to start buying real estate. And I was developing, 0:08:26.160 --> 0:08:28.280 I was building houses, as building commercial projects. I want 0:08:28.280 --> 0:08:29.600 to start doing it again. I enjoyed it, I had 0:08:29.680 --> 0:08:32.400 fun with it. I saw opportunity it. And I remember thirteen, 0:08:32.440 --> 0:08:35.200 twenty fourteen, twenty fifteen looking at these deals and like, oh, 0:08:35.280 --> 0:08:37.360 I want to pull the trigger. But the market's going 0:08:37.440 --> 0:08:39.199 to crash again at any moment, because. 0:08:38.960 --> 0:08:41.120 Look, we're clearly in a bubble. 0:08:41.640 --> 0:08:44.840 Clearly this banking system doesn't work. Clearly this Fiat money 0:08:44.880 --> 0:08:46.880 system doesn't work. It's going to crash again, and of 0:08:46.880 --> 0:08:49.760 course it still hasn't. And so the point that I'm 0:08:49.920 --> 0:08:51.880 going to make as we go through this is that yes, 0:08:51.920 --> 0:08:53.280 we are in a bubble. We've been in a bubble 0:08:53.280 --> 0:08:56.120 for a long time. A lot of these economists have 0:08:56.160 --> 0:08:58.040 been calling for these asset prices to crash, these bubbles 0:08:58.040 --> 0:09:00.880 to crash for a long time, and it will eventually. 0:09:01.600 --> 0:09:03.200 And when you understand this better, you'll be able to 0:09:03.240 --> 0:09:05.560 understand what I mean by that. If you're just tuned in, 0:09:05.559 --> 0:09:08.080 you're listening to the Mark Maas Show. Of course, we're 0:09:08.080 --> 0:09:11.400 always talking about the decentralized revolution, and asset bubbles are 0:09:11.440 --> 0:09:14.040 part of this because as the world is decentralizing and 0:09:14.080 --> 0:09:16.520 breaking apart, it's putting massive pressure. 0:09:16.200 --> 0:09:16.840 On this bubble. 0:09:16.840 --> 0:09:18.559 These are some of the things we'll talk about, so 0:09:18.559 --> 0:09:20.559 we're going to cover a whole lot of ground. What 0:09:20.640 --> 0:09:23.400 they are, what are the causes, what are the alarm 0:09:23.440 --> 0:09:25.960 bells you should be watching, and of course, ultimately, what 0:09:26.160 --> 0:09:28.120 do you do to protect yourself and your family. I'll 0:09:28.120 --> 0:09:30.800 be back with all of that and more. I'm gonna 0:09:30.800 --> 0:09:32.400 take a quick break, I'm gonna come back. We're going 0:09:32.440 --> 0:09:36.079 to talk about these bubbles potentially crashing and deflating and 0:09:36.120 --> 0:09:36.880 we should do about it. 0:09:36.920 --> 0:09:40.400 Don't go away, were back, Hi, Welcome back. 0:09:40.400 --> 0:09:41.959 If you're just tune in, you're listening to the Mark 0:09:42.080 --> 0:09:44.520 Maas show. Of course we're always talking about the decentralized 0:09:44.520 --> 0:09:49.920 revolution today talking about this everything bubble, what it is, 0:09:49.960 --> 0:09:52.400 the cause the alarm bells you should be watching, and 0:09:52.440 --> 0:09:54.360 of course what you should be doing about it now, 0:09:54.600 --> 0:09:57.480 the asset price bubble. As like I said, we're always 0:09:57.480 --> 0:09:59.520 in a bubble, it's just at what stage are we in. 0:10:00.040 --> 0:10:03.600 And really it refers to the impact of monetary easing 0:10:03.640 --> 0:10:06.800 by the Federal Reserve and the central banks. So the 0:10:06.840 --> 0:10:10.400 central banks all around the world have been easying monetary policy. 0:10:10.440 --> 0:10:12.000 And this is going again, went back to my two 0:10:12.000 --> 0:10:14.560 thousand and eight example. This is what I first discovered. 0:10:14.600 --> 0:10:19.559 That's the problem. When the central banks create more money. 0:10:20.240 --> 0:10:21.360 Asset prices go up. 0:10:22.320 --> 0:10:25.600 When they reduced the supply of money, asset prices go down. 0:10:25.640 --> 0:10:28.800 Pretty simple, and we can see this throughout history. Now, 0:10:28.840 --> 0:10:31.720 before central bankers were able to print themselves money, what 0:10:31.760 --> 0:10:34.480 we would see is we would see new discoveries or 0:10:34.520 --> 0:10:36.880 pockets of what was money at the time, which would 0:10:36.880 --> 0:10:39.560 be gold or silver. So for example, you had you know, 0:10:39.640 --> 0:10:43.640 Spain or Portugal going out on expeditions to find more 0:10:43.679 --> 0:10:45.560 gold and silver. It's how they found the new world 0:10:45.679 --> 0:10:49.200 right the North American continent, and they went to was it, 0:10:49.480 --> 0:10:52.560 I believe, Peru, which has like the greatest silver deposits 0:10:52.559 --> 0:10:55.600 in the world, and they started extracting all that silver 0:10:55.800 --> 0:10:59.480 and bringing it back to Spain and to Europe, and 0:10:59.840 --> 0:11:02.920 all of that new money supply comeing into the markets 0:11:02.920 --> 0:11:08.640 created massive inflation because you remember, we don't want money. 0:11:09.559 --> 0:11:11.440 What we do is we want the things that money 0:11:11.480 --> 0:11:13.520 buys us. We want the goods and services. So what 0:11:13.559 --> 0:11:15.760 we really want is goods and services. Money is just 0:11:15.760 --> 0:11:17.880 the means to get that, and so we'll hold money 0:11:18.000 --> 0:11:20.200 until we've decided what it is that we want with 0:11:20.280 --> 0:11:23.600 it or at that time. And so basically what we 0:11:23.640 --> 0:11:26.600 really want is goods and services. So you divide all 0:11:26.640 --> 0:11:28.600 the goods and services in the world by all the 0:11:28.720 --> 0:11:31.880 money in the world, and so when you increase the 0:11:31.960 --> 0:11:35.440 money supply, then the price of those goods. 0:11:35.280 --> 0:11:37.559 And services goes up. That's the way it works. 0:11:38.120 --> 0:11:40.720 If you decrease the supply of money, then the price 0:11:40.720 --> 0:11:43.360 of the goods and services go down, because it's always 0:11:43.400 --> 0:11:46.760 a ratio because money is just a placeholder for those 0:11:46.800 --> 0:11:49.400 goods and services. So when the FED, the FED and 0:11:49.520 --> 0:11:53.520 otherston's banks around the world increase the money supply as 0:11:53.520 --> 0:11:56.280 the prices go up, and then lots of activity go 0:11:56.400 --> 0:11:59.440 around trying to tap into that. So, for example, home 0:11:59.480 --> 0:12:01.959 prices go up, well, that means that people want to 0:12:02.000 --> 0:12:03.760 go buy homes because I want to speculate on the 0:12:03.760 --> 0:12:05.040 price of home, So I'm going to go what we 0:12:05.080 --> 0:12:07.160 saw through two thousand and eight, or really you know 0:12:07.160 --> 0:12:09.760 two thousand and five sixty seven leading into that, was 0:12:09.800 --> 0:12:12.760 people going and standing in line at track homes and 0:12:12.840 --> 0:12:15.600 they're going to buy two three homes because in a 0:12:15.679 --> 0:12:18.400 year from now they can sell those for more. And 0:12:18.520 --> 0:12:21.439 because now people are buying three homes, then we need 0:12:21.480 --> 0:12:23.600 more people to buy homes. And now we need more contractors, 0:12:23.640 --> 0:12:26.160 more framers, more roofers, and those roofers need to work 0:12:26.160 --> 0:12:28.120 on more houses. So those roofers are trying to expand 0:12:28.120 --> 0:12:30.719 their operations. They're buying more trucks and they're hiring more 0:12:30.720 --> 0:12:33.360 people because there's more trucks than Ford is building more trucks, 0:12:33.400 --> 0:12:34.840 so then they have to order more supplies and they're 0:12:34.840 --> 0:12:38.120 building new manufacturing hubs. And so just that one little 0:12:38.120 --> 0:12:41.000 increase in money supply, which increased the supply of the 0:12:41.040 --> 0:12:44.280 price of houses, has this trickle down effect that caused 0:12:44.480 --> 0:12:48.480 everybody to overbuild on false demand. The demand was only 0:12:48.480 --> 0:12:50.240 there because they increased the supply of the money, which 0:12:50.280 --> 0:12:53.200 I guess would be okay, because what's happening is the 0:12:53.200 --> 0:12:55.800 goods and services are trying to catch up. But just 0:12:55.880 --> 0:12:58.040 as the goods and services are catching up to the 0:12:58.040 --> 0:13:01.320 supply of money, then reduced the supply money, and all 0:13:01.320 --> 0:13:04.800 of a sudden, we have too many goods and services. 0:13:05.320 --> 0:13:09.280 So they these contractors in this hypothetical example, well it's 0:13:09.280 --> 0:13:12.160 not really hypothetical, it's exactly what happened. But in this example, 0:13:13.120 --> 0:13:15.520 as he's as the money supply increased, as as asset 0:13:15.559 --> 0:13:20.400 prices went up, then everybody's rushing to increase the supply 0:13:20.720 --> 0:13:24.480 of those assets. Remember prices are the equilibrium of supply 0:13:25.520 --> 0:13:28.520 and demand. So because when the money supply went up, 0:13:28.520 --> 0:13:32.000 the demand went up. So everybody in this home building 0:13:32.080 --> 0:13:33.720 niche all the way down to Ford making trucks for 0:13:33.800 --> 0:13:37.040 these home builders. As the as the demand went up, 0:13:37.040 --> 0:13:39.160 because the money spy went up, then everyone tried to 0:13:39.160 --> 0:13:40.280 increase the supply. 0:13:41.200 --> 0:13:43.160 But then as as supplies. 0:13:42.800 --> 0:13:44.760 Catching up, catching up, catching up, catching up, more builders, 0:13:44.760 --> 0:13:47.920 more builders, more trucks, more homes. As the supplies catching up, 0:13:48.200 --> 0:13:51.160 they rug pull everybody and pulled the demand away. And 0:13:51.240 --> 0:13:55.200 now that poor home builder bought all these trucks on credit, 0:13:55.640 --> 0:13:57.480 and now he's got no jobs to go work on, 0:13:57.840 --> 0:13:59.640 and how does he keep making his payment on all 0:13:59.679 --> 0:14:04.360 those trucks. This window manufacturer for homes just open up 0:14:04.360 --> 0:14:08.400 this whole new facility, this whole new warehouse facility to 0:14:08.480 --> 0:14:11.120 get windows out faster for all these new homes. And 0:14:11.160 --> 0:14:12.840 now all the demand's gone, And now how do they 0:14:12.840 --> 0:14:15.360 employ all those people, and how do they pay for 0:14:15.400 --> 0:14:19.120 those facilities? And so when you constantly change the supply 0:14:19.160 --> 0:14:22.440 of money, the market's trying to react. But the problem 0:14:22.520 --> 0:14:26.720 is when someone's artificially manipulating it and they're not telling 0:14:26.760 --> 0:14:29.480 you what's happening, there's no way for you to plan 0:14:29.520 --> 0:14:31.920 on that. So either asset price continue to just go 0:14:32.000 --> 0:14:34.680 through the roof because we don't bring a new supply on, 0:14:35.840 --> 0:14:37.360 or we try to bring supply on, but then we 0:14:37.400 --> 0:14:39.400 have to watch out for the rug pull. And this 0:14:39.600 --> 0:14:43.640 makes me so mad. This is one of the things 0:14:43.680 --> 0:14:45.840 that gives me the motivation to continue what I do, 0:14:46.280 --> 0:14:49.680 because the FED is purposely trying to bankrupt you in 0:14:49.720 --> 0:14:52.960 your family. If you don't want to play this game, 0:14:53.080 --> 0:14:54.960 you can choose not to. Look, I'm not going to 0:14:55.000 --> 0:14:58.120 expand my business to keep up with to keep up 0:14:58.120 --> 0:14:59.240 with this supply and demand. 0:14:59.400 --> 0:15:00.720 I won't. I'm not going to play the game. 0:15:00.760 --> 0:15:03.200 Well, the problem is you're going to fall behind because 0:15:03.240 --> 0:15:06.160 prices are going up so fast. If you're not growing 0:15:06.200 --> 0:15:08.400 your business and your revenue to go with it, then 0:15:08.440 --> 0:15:11.440 you get left behind. Inflation eats into your cost of 0:15:11.480 --> 0:15:14.160 living and in your quality of life. So you're forced 0:15:14.160 --> 0:15:14.720 to play the game. 0:15:14.760 --> 0:15:15.160 You have to. 0:15:15.360 --> 0:15:17.040 You can either get left behind and that's not good 0:15:17.040 --> 0:15:19.320 for you, or you can play the game. And so 0:15:19.400 --> 0:15:21.160 then you do try to grow your business, and you 0:15:21.160 --> 0:15:23.600 do try to grow your employees and your equipment and things. 0:15:23.400 --> 0:15:24.680 Like that to keep up with it. 0:15:25.000 --> 0:15:27.080 So now you're taking on debt and you're trying to 0:15:27.080 --> 0:15:28.920 build your business, and you're doing all these things to 0:15:29.000 --> 0:15:31.200 keep up with it. And then they just rug pull 0:15:31.200 --> 0:15:33.080 you and they pull it out, and now you're bankrupt. 0:15:34.080 --> 0:15:36.440 As I drive down my downtown street and I see 0:15:36.480 --> 0:15:38.800 all of these businesses, I just feel bad for them 0:15:38.840 --> 0:15:41.760 because I know most of them aren't paying attention, just 0:15:41.760 --> 0:15:45.480 like I wasn't paying attention. All they know is there's 0:15:45.520 --> 0:15:47.680 more demand for their goods and services than there ever 0:15:47.720 --> 0:15:51.000 has been, and so they're rapidly trying to scale to 0:15:51.120 --> 0:15:53.080 fulfill that demand. But the problem is, like I said, 0:15:53.080 --> 0:15:56.120 they're not paying attention like I wasn't paying attention, and. 0:15:55.960 --> 0:15:57.800 They don't know that the rug pull is. 0:15:57.760 --> 0:15:59.760 Coming and it's going to wipe them all out. That's 0:16:00.120 --> 0:16:02.480 what the everything bubble is. So the bubble is coming. 0:16:02.520 --> 0:16:02.680 Now. 0:16:02.680 --> 0:16:05.160 We saw the term of the everything bubble really kind 0:16:05.160 --> 0:16:07.400 of come out. In two thousand and five. There was 0:16:07.440 --> 0:16:10.560 an article written by Michael J. Burry and he used 0:16:10.560 --> 0:16:12.440 it to describe the housing bubble. You know, you might 0:16:12.480 --> 0:16:13.120 know who Michael J. 0:16:13.240 --> 0:16:15.360 Burry is. He was the author. 0:16:16.520 --> 0:16:18.840 Of the book that went on to create the movie 0:16:20.000 --> 0:16:21.520 that basically depicted this. 0:16:21.560 --> 0:16:23.240 Whole housing bubble collapse. 0:16:23.280 --> 0:16:26.520 It's called The Big Short And Michael Burry got famous 0:16:26.560 --> 0:16:28.320 because you know, he was the guy featured of the 0:16:28.320 --> 0:16:29.960 movie and he was the one that put this big 0:16:30.120 --> 0:16:32.560 short bet saying that the housing market was. 0:16:32.520 --> 0:16:34.600 Going to crash at the time. 0:16:34.640 --> 0:16:38.000 In two thousand and five, he wrote this article for 0:16:38.040 --> 0:16:41.560 the San Francisco Federal Reserve Banks Economic Letter titled quote 0:16:41.840 --> 0:16:44.480 the Everything Bubble and he argued that the United States 0:16:44.600 --> 0:16:46.840 was in the midst of a housing bubble that was 0:16:46.880 --> 0:16:50.280 being driven by low interest rates, easy credit, and speculation. 0:16:50.880 --> 0:16:52.160 Exactly what I said, right. 0:16:52.320 --> 0:16:54.760 When credit is easy and cheap. 0:16:54.640 --> 0:16:56.960 People take more of it, and so because we're in 0:16:56.960 --> 0:16:58.840 a debase montey system, more money's out there. 0:16:59.080 --> 0:17:00.560 So he warned that was that was happening. 0:17:00.640 --> 0:17:02.480 He said that it was unsustainable and that it would 0:17:02.480 --> 0:17:05.560 eventually burst lead into a financial crisis, and he was right. 0:17:06.040 --> 0:17:08.000 Now I want to point out that he was right, 0:17:08.040 --> 0:17:10.439 and so of course he's now famous because of the 0:17:10.480 --> 0:17:12.600 movie in the book that was written and made about him, 0:17:12.920 --> 0:17:16.240 But I do want to say that he was He 0:17:16.400 --> 0:17:19.320 ended up being proven right, but he was wrong for 0:17:19.359 --> 0:17:22.119 a long time. And the reason why that matters is 0:17:22.160 --> 0:17:26.840 that throughout this process, he was buying these credit default swaps, 0:17:26.880 --> 0:17:29.679 and he had his investment funding all these investors' money. 0:17:29.760 --> 0:17:32.400 But he was wrong for so long. He was losing 0:17:32.720 --> 0:17:35.399 all kinds of money, and he is investors one of 0:17:35.440 --> 0:17:39.199 their money back, and they even started suing him like 0:17:39.320 --> 0:17:42.840 he was so wrong for so long, and most people 0:17:42.880 --> 0:17:45.480 that were like him weren't able to withstand that, and 0:17:45.520 --> 0:17:47.520