1
00:00:00,400 --> 00:00:03,880
Speaker 1: China just fired a financial bazuka, a move so bold

2
00:00:04,000 --> 00:00:07,320
Speaker 1: it could send shockwaves through the global markets. But here's

3
00:00:07,360 --> 00:00:10,040
Speaker 1: the real question. Will it be enough to save their

4
00:00:10,039 --> 00:00:13,560
Speaker 1: crumbling economy? And more importantly, what impact will this have

5
00:00:13,640 --> 00:00:16,640
Speaker 1: on assets around the world? What happens to US stocks,

6
00:00:16,640 --> 00:00:19,120
Speaker 1: what happens to real estate, what happens to bitcoin. Now

7
00:00:19,280 --> 00:00:21,640
Speaker 1: we know that in the past, what's happened when China's

8
00:00:21,640 --> 00:00:24,640
Speaker 1: economy has seen similar crashes, and what's happened to asset

9
00:00:24,640 --> 00:00:27,560
Speaker 1: prices around the world. And right now China's central bank

10
00:00:27,680 --> 00:00:30,640
Speaker 1: is pulling out all the stops and literally pumping in

11
00:00:30,760 --> 00:00:34,840
Speaker 1: trillions of dollars into their financial system. The monetary bazuka

12
00:00:35,040 --> 00:00:37,400
Speaker 1: was loaded and it's been fired. So in this video,

13
00:00:37,400 --> 00:00:40,320
Speaker 1: we're gonna dig into what does China's latest move mean

14
00:00:40,400 --> 00:00:42,760
Speaker 1: for you as an investor. We're going to dive into

15
00:00:42,840 --> 00:00:45,320
Speaker 1: the data to see how similar moves in the past

16
00:00:45,360 --> 00:00:48,800
Speaker 1: affected stocks, real estate, and bitcoin, and of course, what

17
00:00:49,000 --> 00:00:52,000
Speaker 1: you can do to position yourself to benefit from this.

18
00:00:52,240 --> 00:00:53,680
Speaker 1: And by the end of this video, you're gonna have

19
00:00:53,720 --> 00:00:56,640
Speaker 1: a clear understanding of whether this monetary bazuka could be

20
00:00:56,680 --> 00:00:59,960
Speaker 1: your next big opportunity or a warning sign to state

21
00:01:00,120 --> 00:01:03,240
Speaker 1: casts either way, Knowing how China's actions could impact your

22
00:01:03,240 --> 00:01:05,080
Speaker 1: assets is going to give you a serious edge and

23
00:01:05,160 --> 00:01:08,279
Speaker 1: navigating the market ahead and real quick. For do the Channel.

24
00:01:08,360 --> 00:01:10,280
Speaker 1: My name is Mark Moss. I've been investing in my

25
00:01:10,360 --> 00:01:13,080
Speaker 1: own money, and I've been building companies now through four

26
00:01:13,160 --> 00:01:16,200
Speaker 1: economic crisises. I've been writing a financial newsletter and coaching

27
00:01:16,240 --> 00:01:18,720
Speaker 1: thousands of investors for almost nine years, and I'm a

28
00:01:18,760 --> 00:01:22,240
Speaker 1: partner in a leading bitcoin focused VC hedge fund, and

29
00:01:22,319 --> 00:01:24,479
Speaker 1: a lot of the research that we use is going

30
00:01:24,560 --> 00:01:29,480
Speaker 1: into this video. So let's go all right, So we're

31
00:01:29,480 --> 00:01:31,600
Speaker 1: going to just jump right into this because this is

32
00:01:31,880 --> 00:01:35,840
Speaker 1: hot news, and this is massive, it's drastic, It's something

33
00:01:35,840 --> 00:01:38,640
Speaker 1: I've been talking about for a long time and it's here, okay,

34
00:01:38,640 --> 00:01:40,160
Speaker 1: So hopefully you've been ready for this, and if you're not,

35
00:01:40,160 --> 00:01:42,319
Speaker 1: don't worry. We're going to catch you up. So why

36
00:01:42,840 --> 00:01:45,280
Speaker 1: why do we have a monetary bozuka in the first place?

37
00:01:45,319 --> 00:01:49,200
Speaker 1: And of course it's because China is struggling. China's in trouble,

38
00:01:49,360 --> 00:01:51,880
Speaker 1: and of course when China's in trouble, the rest of

39
00:01:51,920 --> 00:01:54,880
Speaker 1: the world's in trouble. Maybe that's why the Federal Reserve

40
00:01:55,120 --> 00:01:57,120
Speaker 1: is acting we'll come back to that in a minute.

41
00:01:57,200 --> 00:02:00,520
Speaker 1: But basically, China has been in big, big trouble for

42
00:02:00,560 --> 00:02:04,960
Speaker 1: a long time. It's nothing new. China has been goosing,

43
00:02:05,640 --> 00:02:09,320
Speaker 1: faking stimulating their economy for a long time, which of

44
00:02:09,360 --> 00:02:13,560
Speaker 1: course has adverse effects, and lately it's finally been catching up.

45
00:02:13,760 --> 00:02:18,000
Speaker 1: So here is China's ten year yield that they pay

46
00:02:18,000 --> 00:02:20,359
Speaker 1: out on their treasure. And look at that is what

47
00:02:20,400 --> 00:02:22,840
Speaker 1: we call deflation. Now, if you follow my channel or

48
00:02:22,880 --> 00:02:26,640
Speaker 1: you're paying attention to macroeconomics, you know that's central banks

49
00:02:26,760 --> 00:02:28,800
Speaker 1: around the world. The entire system, because we're in a

50
00:02:28,800 --> 00:02:32,720
Speaker 1: debt based monetary system, needs inflation to survive. It'sa ponzi.

51
00:02:32,919 --> 00:02:36,760
Speaker 1: If it doesn't continue to expand, it crashes. And deflation

52
00:02:37,200 --> 00:02:40,639
Speaker 1: is the number one fear that all central bankers stay

53
00:02:40,720 --> 00:02:43,080
Speaker 1: up at night worrying about. And this is what China

54
00:02:43,120 --> 00:02:46,600
Speaker 1: has been seeing. Now. That is their bond, that's their yield,

55
00:02:46,680 --> 00:02:50,560
Speaker 1: their ten year bond. Here we have this is their

56
00:02:50,600 --> 00:02:55,000
Speaker 1: stock market going down compared to the S and P

57
00:02:55,200 --> 00:02:58,960
Speaker 1: five hundred, the US market going up. This is a

58
00:02:59,240 --> 00:03:02,360
Speaker 1: bad sign, and again not just for China before the

59
00:03:02,400 --> 00:03:05,240
Speaker 1: rest of the world. Why, well, turns out the US

60
00:03:05,400 --> 00:03:09,000
Speaker 1: needs the Chinese economy. Just like the Chinese economy economy

61
00:03:09,040 --> 00:03:10,960
Speaker 1: needs the rest of the world. We can see this

62
00:03:12,080 --> 00:03:14,359
Speaker 1: really in the real estate sector. You've probably been hearing

63
00:03:14,360 --> 00:03:16,160
Speaker 1: about it. I've done videos on it. The real estate

64
00:03:16,560 --> 00:03:19,760
Speaker 1: sector has been getting completely hammered. Here's real estate sales,

65
00:03:19,919 --> 00:03:24,200
Speaker 1: here's real estate starts again, massive deflation again. This is

66
00:03:24,200 --> 00:03:27,080
Speaker 1: what keeps central bankers up at night, and we can

67
00:03:27,160 --> 00:03:29,840
Speaker 1: kind of keep going in. This is another big problem

68
00:03:29,880 --> 00:03:32,480
Speaker 1: that China has. China's got a lot of problems. So

69
00:03:32,520 --> 00:03:35,160
Speaker 1: while they're apparently to people that are not paying attention

70
00:03:35,440 --> 00:03:37,640
Speaker 1: taking over the world, when you just kind of peak

71
00:03:37,720 --> 00:03:40,520
Speaker 1: under the hood, you see they've got serious problems. This

72
00:03:40,600 --> 00:03:43,800
Speaker 1: is the unemployment rate, China's youth unemployment rate. As a

73
00:03:43,840 --> 00:03:49,560
Speaker 1: matter of fact, we're at greater than twenty percent. Twenty percent,

74
00:03:49,680 --> 00:03:52,040
Speaker 1: I'm going to pause on that. The US, you hear

75
00:03:52,040 --> 00:03:54,800
Speaker 1: about all these jobs being lost, unemployments going up, but

76
00:03:54,880 --> 00:03:58,760
Speaker 1: we're like at four percent for twenty percent. It's a

77
00:03:58,800 --> 00:04:01,560
Speaker 1: big deal, especially when it comes down to the youth,

78
00:04:01,760 --> 00:04:04,640
Speaker 1: especially when it comes down to the men. So China

79
00:04:04,640 --> 00:04:06,640
Speaker 1: has lots of men. They had a one child policy

80
00:04:06,720 --> 00:04:09,920
Speaker 1: for about three decades where they didn't have girls. All

81
00:04:09,960 --> 00:04:11,760
Speaker 1: they had was men, and now they have hundreds of

82
00:04:11,760 --> 00:04:14,840
Speaker 1: millions of men, but no girls, and they have no jobs.

83
00:04:14,880 --> 00:04:17,480
Speaker 1: It's a big problem for China, as you might imagine.

84
00:04:17,480 --> 00:04:19,200
Speaker 1: So this is sort of the place that they've gotten

85
00:04:19,240 --> 00:04:21,520
Speaker 1: the men. One more chart to show you the deflation.

86
00:04:21,880 --> 00:04:25,159
Speaker 1: This is the money supply. This is M one and

87
00:04:25,279 --> 00:04:29,120
Speaker 1: again look at that trend. It's big, big news. So

88
00:04:29,360 --> 00:04:32,120
Speaker 1: China's been in a bad place for a really long time,

89
00:04:32,440 --> 00:04:36,719
Speaker 1: which has caused drastic times, can for drastic measures. Okay,

90
00:04:36,760 --> 00:04:39,799
Speaker 1: so now they've got the monetary bazuka boom. They shot

91
00:04:39,839 --> 00:04:42,719
Speaker 1: this out into their economy, but of course it's the

92
00:04:42,720 --> 00:04:47,320
Speaker 1: global economy now, the bazuka, it's massive. Before we get

93
00:04:47,360 --> 00:04:50,520
Speaker 1: into the specifics of the bazuka, we also want to

94
00:04:50,600 --> 00:04:54,760
Speaker 1: understand what happens as all of this goes through, and

95
00:04:54,800 --> 00:04:58,200
Speaker 1: more specifically, what's happened in the past when we've seen

96
00:04:58,279 --> 00:04:59,480
Speaker 1: China do This is not the first time, as a

97
00:04:59,480 --> 00:05:02,919
Speaker 1: matter of fact, this is the fourth time in just

98
00:05:02,960 --> 00:05:06,280
Speaker 1: the last several years. Okay, so what happened? So first

99
00:05:06,279 --> 00:05:08,839
Speaker 1: of all, let's just break this down. Basically, they're doing

100
00:05:08,920 --> 00:05:11,160
Speaker 1: every kind of monetary students they can basically trying to

101
00:05:11,200 --> 00:05:15,360
Speaker 1: expand the money supply, how well. They've cut bank reserve requirements.

102
00:05:15,480 --> 00:05:18,480
Speaker 1: So basically, they're cutting rates and cutting the reserve requirements

103
00:05:18,480 --> 00:05:21,400
Speaker 1: so the banks are able to lend out more money. Actually,

104
00:05:21,480 --> 00:05:24,560
Speaker 1: I have a whole breakdown right here. Let's run through this.

105
00:05:24,839 --> 00:05:26,640
Speaker 1: Before we run through that, let's just take a look

106
00:05:26,640 --> 00:05:29,400
Speaker 1: at some of the things that we see in China. So,

107
00:05:29,480 --> 00:05:33,800
Speaker 1: for example, this rollout shows this is a very big piece.

108
00:05:34,960 --> 00:05:36,480
Speaker 1: But it's so big I want to come back to it.

109
00:05:36,760 --> 00:05:38,880
Speaker 1: Let's look at this. Let's look at the specifics real quick.

110
00:05:39,200 --> 00:05:42,720
Speaker 1: What we can see is that PBOC lowered reserve requirements

111
00:05:42,800 --> 00:05:46,039
Speaker 1: by half a point, which doesn't sound like a lot,

112
00:05:46,160 --> 00:05:48,120
Speaker 1: but it is. And the reason why is because by

113
00:05:48,160 --> 00:05:52,440
Speaker 1: doing that they unfreeze, or they unleash about a trillion yuan,

114
00:05:52,760 --> 00:05:55,679
Speaker 1: which is about one hundred and forty two billion dollars

115
00:05:55,680 --> 00:05:58,039
Speaker 1: for the banks. That's massive. They did a seven day

116
00:05:58,279 --> 00:06:03,000
Speaker 1: repurchase rate reduction from one point seven to one point five,

117
00:06:03,080 --> 00:06:07,559
Speaker 1: again another massive drop. They changed or lowered the loan

118
00:06:07,640 --> 00:06:11,000
Speaker 1: prime rates by twenty to thirty basis points, so basically

119
00:06:11,000 --> 00:06:14,040
Speaker 1: they're making money cheaper. And again, right when money's cheaper,

120
00:06:14,440 --> 00:06:17,719
Speaker 1: the goal hopefully people buy more of it right, increased

121
00:06:17,720 --> 00:06:20,440
Speaker 1: loan amounts of in a debt based monetary system. They

122
00:06:20,480 --> 00:06:23,520
Speaker 1: cut interest rates on existing mortgages by an average of

123
00:06:23,640 --> 00:06:26,720
Speaker 1: fifty basis points. Imagine in the United States or whatever

124
00:06:26,760 --> 00:06:28,960
Speaker 1: country you're in, if they just said, oh, everybody's rates,

125
00:06:28,960 --> 00:06:32,120
Speaker 1: mortgage rates is half a point cheaper, or imagine what

126
00:06:32,160 --> 00:06:34,719
Speaker 1: that would do. They lowered the minimum down payment for

127
00:06:34,800 --> 00:06:37,880
Speaker 1: second homes from twenty five percent to fifteen percent. Imagine

128
00:06:37,880 --> 00:06:39,800
Speaker 1: if they did that. Imagine how many more people would

129
00:06:39,800 --> 00:06:42,560
Speaker 1: get those investment properties they always wanted. That's exactly what

130
00:06:42,560 --> 00:06:46,039
Speaker 1: they're trying to do. The Central Bank introduced cheap loans

131
00:06:46,080 --> 00:06:51,120
Speaker 1: to local governments for buying up unsold properties, covering one

132
00:06:51,200 --> 00:06:56,080
Speaker 1: hundred percent of the loans. So China has this massive

133
00:06:56,080 --> 00:06:58,039
Speaker 1: problem with all this real estate they built and hasn't

134
00:06:58,040 --> 00:07:01,800
Speaker 1: been purchased, and they're basically saying, hey, local governments will

135
00:07:01,800 --> 00:07:03,280
Speaker 1: just give you as much moneys you want to go

136
00:07:03,279 --> 00:07:04,680
Speaker 1: buy all the properties, and we're going to give you

137
00:07:04,680 --> 00:07:07,040
Speaker 1: a hundred percent of the money. If the government gave

138
00:07:07,040 --> 00:07:08,120
Speaker 1: you a hundred percent of money to go buy a

139
00:07:08,120 --> 00:07:10,240
Speaker 1: bunch of properties, do you think you do that? And

140
00:07:10,320 --> 00:07:13,440
Speaker 1: you understand exactly what's going on. Liquidity for the stock market,

141
00:07:13,440 --> 00:07:15,720
Speaker 1: This is a pretty big one. The PBOC has launched

142
00:07:15,880 --> 00:07:20,400
Speaker 1: two new tools to boost liquidity for equity markets, one

143
00:07:20,480 --> 00:07:26,120
Speaker 1: hundred and thirteen billion dollars swap program and to fund

144
00:07:26,320 --> 00:07:31,239
Speaker 1: and access liquidity for purchasing stocks. The PBOC the Central

145
00:07:31,280 --> 00:07:34,760
Speaker 1: Bank is literally giving hundreds of billions of dollars for

146
00:07:34,840 --> 00:07:37,960
Speaker 1: them to buy stocks and prop up the market forty

147
00:07:38,040 --> 00:07:40,480
Speaker 1: two point five billion in loans to commercial banks for

148
00:07:40,680 --> 00:07:45,200
Speaker 1: stock market interventions or maybe we'd call them manipulations, whatever

149
00:07:45,200 --> 00:07:46,720
Speaker 1: you want to call it. So this is sort of

150
00:07:46,720 --> 00:07:48,880
Speaker 1: the specific is what's going on. You can understand it's

151
00:07:48,880 --> 00:07:52,200
Speaker 1: a big deal, a really big deal. Why is this

152
00:07:52,360 --> 00:07:56,360
Speaker 1: even a bigger deal. It's a bigger deal because it

153
00:07:56,520 --> 00:07:58,840
Speaker 1: shows intent. If you've been following me for a while,

154
00:07:58,920 --> 00:08:01,120
Speaker 1: you know that I say that since two thousand and eight,

155
00:08:01,200 --> 00:08:04,200
Speaker 1: the market's changed, and you can't look previous to that

156
00:08:04,440 --> 00:08:06,960
Speaker 1: to extrapolate a lot of information. One of the big

157
00:08:07,000 --> 00:08:09,600
Speaker 1: things that's changed was the introduction of quantitative easying, but

158
00:08:09,640 --> 00:08:12,760
Speaker 1: more importantly, it was a psychological shift. You can't really

159
00:08:12,800 --> 00:08:14,320
Speaker 1: measure this. I mean you can, and we can go

160
00:08:14,360 --> 00:08:17,080
Speaker 1: through that, but it's a psychological shift, and it shows

161
00:08:17,120 --> 00:08:20,800
Speaker 1: the willingness that central banks and governments have to intervene

162
00:08:20,800 --> 00:08:23,320
Speaker 1: in markets, and with quantitative VIASA, they've levered up the

163
00:08:23,320 --> 00:08:25,880
Speaker 1: system so hard they can't allow it to unravel. Than

164
00:08:25,960 --> 00:08:28,320
Speaker 1: in twenty twenty, we've seen that escalade. Right in the

165
00:08:28,400 --> 00:08:31,240
Speaker 1: US it was about eleven trillion dollars of stimulus to

166
00:08:31,240 --> 00:08:34,079
Speaker 1: prop up the markets. China was even bigger. The question

167
00:08:34,200 --> 00:08:37,200
Speaker 1: you might ask yourself is if they did all that

168
00:08:37,240 --> 00:08:39,440
Speaker 1: in twenty twenty, in two thousand and eight, and then

169
00:08:39,480 --> 00:08:42,360
Speaker 1: did even more in twenty twenty, and then in twenty

170
00:08:42,400 --> 00:08:44,480
Speaker 1: twenty three in the US, right with three banks collapse,

171
00:08:44,720 --> 00:08:48,040
Speaker 1: hundreds of billions more to save the banks, why would

172
00:08:48,040 --> 00:08:52,680
Speaker 1: they stop? Now ask yourself that question. And this exactly

173
00:08:52,679 --> 00:08:56,920
Speaker 1: answers that. It says the publicistized roll out showed authorities

174
00:08:57,200 --> 00:09:00,880
Speaker 1: are taking seriously. Authorities are taking s say, the warnings

175
00:09:01,040 --> 00:09:04,640
Speaker 1: that China risks missing its growth target of around five percent,

176
00:09:04,840 --> 00:09:06,960
Speaker 1: so they want to grow by five percent a year.

177
00:09:07,160 --> 00:09:09,520
Speaker 1: That's their target, and they're afraid they're not going to

178
00:09:09,559 --> 00:09:12,360
Speaker 1: make that target, and they're taking that seriously. They're doing

179
00:09:12,400 --> 00:09:16,360
Speaker 1: everything they can to stay on track. The policy barrage

180
00:09:16,559 --> 00:09:19,480
Speaker 1: likely puts that goal back within reach. So they want

181
00:09:19,520 --> 00:09:23,360
Speaker 1: to maintain or sustain that growth rate at all costs,

182
00:09:23,559 --> 00:09:25,480
Speaker 1: no matter what. Do you see what I'm talking about.

183
00:09:25,480 --> 00:09:27,960
Speaker 1: This is a psychological thing. It's not just a data things.

184
00:09:27,960 --> 00:09:31,160
Speaker 1: What a lot of analysts miss. Okay, yet to unveil

185
00:09:31,360 --> 00:09:34,520
Speaker 1: more forceful measures to boost authorities have yet to unveil

186
00:09:34,559 --> 00:09:37,600
Speaker 1: more forceful measures to boost demand among consumers, so they

187
00:09:37,600 --> 00:09:41,000
Speaker 1: still have more in their back pocket, is basically what

188
00:09:41,040 --> 00:09:45,680
Speaker 1: it's saying here. It says right here, more needs to

189
00:09:45,720 --> 00:09:48,400
Speaker 1: be done in order to help solidify fourth quarter growth.

190
00:09:48,400 --> 00:09:51,480
Speaker 1: So they still need to do more to stay on

191
00:09:51,520 --> 00:09:53,720
Speaker 1: that five percent target by the end of the year.

192
00:09:53,840 --> 00:09:56,400
Speaker 1: So what they're saying is that they are going to

193
00:09:56,400 --> 00:09:59,720
Speaker 1: stay on target no matter what, whatever it takes. This

194
00:10:00,000 --> 00:10:03,800
Speaker 1: baraj this bazooka that they fired is only just the beginning.

195
00:10:04,120 --> 00:10:08,520
Speaker 1: They have more, more forceful measures and more needs to

196
00:10:08,520 --> 00:10:11,080
Speaker 1: be done, and they're willing to do whatever it takes. Now.

197
00:10:11,840 --> 00:10:15,000
Speaker 1: It's something called the sunken cost fallacy. Once you've gone

198
00:10:15,040 --> 00:10:19,040
Speaker 1: so far, it's harder and harder to quit, right. Once

199
00:10:19,120 --> 00:10:21,640
Speaker 1: they've pumped in hundreds of billions of dollars, why would

200
00:10:21,640 --> 00:10:25,000
Speaker 1: they stop now? And you're starting to understand where this

201
00:10:25,080 --> 00:10:27,640
Speaker 1: world is going, which direction we're heading. I want to

202
00:10:27,640 --> 00:10:29,640
Speaker 1: take a second, just real quick, to just give you

203
00:10:29,679 --> 00:10:34,360
Speaker 1: a reminder. The reminder is take control of your bitcoin. Look,

204
00:10:34,480 --> 00:10:35,920
Speaker 1: for the first time in history, we have a way

205
00:10:35,960 --> 00:10:39,200
Speaker 1: to preserve our property, take custody of our property and

206
00:10:39,200 --> 00:10:41,760
Speaker 1: protect it with no cost. You can't do that with gold,

207
00:10:41,800 --> 00:10:43,840
Speaker 1: you can't do it with your stocks, and so we

208
00:10:43,880 --> 00:10:46,120
Speaker 1: can do it with bitcoin, and you should. Now don't

209
00:10:46,160 --> 00:10:48,040
Speaker 1: store it on an app on your phone that can

210
00:10:48,080 --> 00:10:50,160
Speaker 1: get hacked. What you want to do is use a

211
00:10:50,240 --> 00:10:53,720
Speaker 1: hardware device something like this Treasle right here. So basically

212
00:10:53,760 --> 00:10:55,880
Speaker 1: your private key sits here. When you want to do

213
00:10:55,920 --> 00:10:58,840
Speaker 1: a transaction, you plug it into your computer, sign the transaction.

214
00:10:58,840 --> 00:11:00,760
Speaker 1: When you're done, you unplug it and put it back

215
00:11:00,760 --> 00:11:02,880
Speaker 1: into your safe. I've used treasure for now, I don't know,

216
00:11:02,920 --> 00:11:05,079
Speaker 1: six seven years, because I think it's the easiest one

217
00:11:05,120 --> 00:11:07,160
Speaker 1: to use I've tried I think pretty much all of them.

218
00:11:07,520 --> 00:11:10,360
Speaker 1: And it's also open source, so you can trust the code.

219
00:11:10,679 --> 00:11:14,359
Speaker 1: And again it's easy. Why easy because if it's too complex,

220
00:11:14,520 --> 00:11:16,520
Speaker 1: it makes me think of how many potential holes and

221
00:11:16,600 --> 00:11:19,080
Speaker 1: risk there could be, not just in the device, itself,

222
00:11:19,080 --> 00:11:21,080
Speaker 1: but even in my own ability to secure it. So

223
00:11:21,160 --> 00:11:23,599
Speaker 1: I want something fast, I want something easy, and I

224
00:11:23,600 --> 00:11:25,840
Speaker 1: don't want something safe. That's why I use Treasure. And

225
00:11:26,240 --> 00:11:28,719
Speaker 1: if you don't use Treasure, use something. Please get your

226
00:11:28,720 --> 00:11:32,480
Speaker 1: bitcoin off the exchange, use a hardware device to secure

227
00:11:32,520 --> 00:11:34,679
Speaker 1: your private key. And if you like Treasure, check out

228
00:11:34,679 --> 00:11:38,160
Speaker 1: the link down below. Okay, now I want to just

229
00:11:38,240 --> 00:11:40,520
Speaker 1: jump back in time, not that far. We're going to

230
00:11:40,559 --> 00:11:42,679
Speaker 1: jump back in time too, about six weeks ago, and

231
00:11:42,720 --> 00:11:45,240
Speaker 1: I made this video right here talking about a meltdown

232
00:11:45,360 --> 00:11:48,200
Speaker 1: or magic setup. And I was talking specifically at this

233
00:11:48,280 --> 00:11:50,560
Speaker 1: time about what was going on with the jap the

234
00:11:50,640 --> 00:11:53,920
Speaker 1: Japanese markets and the carry trade was blowing up. If

235
00:11:53,960 --> 00:11:55,800
Speaker 1: I remember that video, where let's go ahead and put

236
00:11:55,840 --> 00:11:57,320
Speaker 1: it right here. We'll link to it in the show

237
00:11:57,320 --> 00:11:59,520
Speaker 1: notes down below as well. You should probably go watch

238
00:11:59,559 --> 00:12:02,200
Speaker 1: it now. I remember at that time, the whole world

239
00:12:02,720 --> 00:12:05,760
Speaker 1: was calling for this is it, This is the final

240
00:12:05,800 --> 00:12:08,440
Speaker 1: prick in the liquidity bubble. The whole world's going to crash.

241
00:12:08,679 --> 00:12:11,120
Speaker 1: Of course, I made a video calming you down, and

242
00:12:11,200 --> 00:12:14,560
Speaker 1: I talked about global liquidity and again how this always

243
00:12:14,559 --> 00:12:18,480
Speaker 1: continues to expand. Now, at that time, I showed you

244
00:12:18,520 --> 00:12:20,040
Speaker 1: this chart. I've used it many times. If you watch

245
00:12:20,080 --> 00:12:22,320
Speaker 1: my channel, you're familiar with this chart. And this basically

246
00:12:22,360 --> 00:12:25,680
Speaker 1: shows that all the debt in the world, about seventy

247
00:12:25,720 --> 00:12:28,240
Speaker 1: five percent of it, seventy five percent of the world,

248
00:12:28,480 --> 00:12:31,520
Speaker 1: has a maturity rate of about one to five years.

249
00:12:31,520 --> 00:12:33,840
Speaker 1: So let's call it a four year average. So about

250
00:12:33,880 --> 00:12:35,480
Speaker 1: seventy five percent of the debt in the world has

251
00:12:35,480 --> 00:12:37,559
Speaker 1: about a four year average. And remember, the debt can't

252
00:12:37,559 --> 00:12:40,840
Speaker 1: get repaid, it can't get destroyed, it gets rolled over.

253
00:12:40,920 --> 00:12:43,440
Speaker 1: We need more debt to pay the existing debt, so

254
00:12:43,480 --> 00:12:45,680
Speaker 1: you might remember this. So every four years we have

255
00:12:45,760 --> 00:12:48,200
Speaker 1: to create more debt to continue to roll it over,

256
00:12:48,480 --> 00:12:51,120
Speaker 1: which is why we end up on these four year

257
00:12:51,280 --> 00:12:54,440
Speaker 1: cycles that look like this. This is what it's supposed

258
00:12:54,480 --> 00:12:57,120
Speaker 1: to look like. Of course it doesn't match perfectly, but

259
00:12:57,160 --> 00:12:59,960
Speaker 1: it pretty much does. Now you can see that right now,

260
00:13:00,320 --> 00:13:04,640
Speaker 1: the global equity is turning up right on pace. Now again,

261
00:13:04,800 --> 00:13:07,800
Speaker 1: these four year cycles started in two thousand and eight,

262
00:13:07,880 --> 00:13:09,560
Speaker 1: because that's when the whole world went to zero rates,

263
00:13:09,760 --> 00:13:13,560
Speaker 1: and they just so happened to coincide with the four

264
00:13:13,640 --> 00:13:18,880
Speaker 1: year business ism cycle and the four year election cycle.

265
00:13:19,080 --> 00:13:21,840
Speaker 1: Oh yeah, and the four year bitcoin having cycle at

266
00:13:21,880 --> 00:13:24,600
Speaker 1: the same time. Pretty interesting, isn't it. But you might

267
00:13:24,760 --> 00:13:26,880
Speaker 1: remember this video if you saw it. Let me just

268
00:13:26,920 --> 00:13:30,160
Speaker 1: play you this clip from this video from six weeks ago. Now,

269
00:13:30,240 --> 00:13:32,280
Speaker 1: the problem is that and what we've seen going on

270
00:13:32,559 --> 00:13:34,040
Speaker 1: is that we're in this what we call like a

271
00:13:34,120 --> 00:13:37,240
Speaker 1: liquidity pocket. There's debt that needs to get rolled over.

272
00:13:37,559 --> 00:13:39,840
Speaker 1: The world needs the FED, the central banks, the FED

273
00:13:39,880 --> 00:13:42,120
Speaker 1: in the United States, but other major central banks. Other

274
00:13:42,120 --> 00:13:44,960
Speaker 1: major central banks are the ECB European Central Bank, the

275
00:13:44,960 --> 00:13:48,240
Speaker 1: boj Bank of Japan, and the PBOC, the Chinese Central Bank.

276
00:13:48,240 --> 00:13:50,080
Speaker 1: Those are sort of the major ones. And what we

277
00:13:50,080 --> 00:13:53,360
Speaker 1: can see is that they need liquidity because they need

278
00:13:53,400 --> 00:13:55,800
Speaker 1: to keep their markets or their debt rolling over to

279
00:13:55,840 --> 00:13:58,920
Speaker 1: keep their markets going. But the problem is that we

280
00:13:59,200 --> 00:14:01,240
Speaker 1: have been the world world has been The FED has

281
00:14:01,280 --> 00:14:04,120
Speaker 1: been in a tightening cycle, so they wanted to tighten

282
00:14:04,200 --> 00:14:06,560
Speaker 1: up the monetary supply, but right now the other nations

283
00:14:06,559 --> 00:14:08,280
Speaker 1: of the world needed to start easing so they can

284
00:14:08,360 --> 00:14:11,080
Speaker 1: get that liquidity they can roll that debt over. Now

285
00:14:11,080 --> 00:14:14,520
Speaker 1: what's happening is China desk really needs this, but they

286
00:14:14,559 --> 00:14:17,400
Speaker 1: can't go into an easing right now while the FED

287
00:14:17,480 --> 00:14:19,920
Speaker 1: is still in the tightening. All right, So what did

288
00:14:19,960 --> 00:14:22,320
Speaker 1: I say there that was so prophetic? I said that

289
00:14:22,440 --> 00:14:26,000
Speaker 1: all the central banks need to ease in sync. And

290
00:14:26,040 --> 00:14:28,360
Speaker 1: what happened is that two of the most important central

291
00:14:28,400 --> 00:14:31,880
Speaker 1: banks in the world, Japan and China, they really needed

292
00:14:31,920 --> 00:14:35,880
Speaker 1: to ease, like really really bad. Japan couldn't wait anymore,

293
00:14:35,960 --> 00:14:38,480
Speaker 1: so they moved without the FED and it almost crashed

294
00:14:38,480 --> 00:14:40,760
Speaker 1: the entire globe. So the Japan said, well, whoa, Okay,

295
00:14:41,040 --> 00:14:43,680
Speaker 1: we'll wait for the FED. So we needed the FED

296
00:14:43,880 --> 00:14:47,240
Speaker 1: to announce easing, which they just did. And just like

297
00:14:47,280 --> 00:14:49,720
Speaker 1: we talked about six weeks ago, the FED announced they

298
00:14:49,720 --> 00:14:53,560
Speaker 1: would ease, and now the PBOC is doing it because

299
00:14:53,600 --> 00:14:56,560
Speaker 1: all this needs to be done in sync. They were waiting,

300
00:14:56,760 --> 00:14:58,560
Speaker 1: and so we have all the major central banks of

301
00:14:58,560 --> 00:15:01,480
Speaker 1: the world easing. We also have Switch easy, Canada easying

302
00:15:01,560 --> 00:15:05,360
Speaker 1: Sweden easying the Eurozone easy. UK is easy, and again

303
00:15:06,080 --> 00:15:07,680
Speaker 1: the US is easy, and that means the rest of

304
00:15:07,680 --> 00:15:11,840
Speaker 1: the world is okay. Now let's jump back in history

305
00:15:11,960 --> 00:15:14,480
Speaker 1: because or again, we don't invest in the markets as

306
00:15:14,480 --> 00:15:16,200
Speaker 1: we want them to be, or as we think we can,

307
00:15:16,360 --> 00:15:18,400
Speaker 1: as they as they should be, or what our gut

308
00:15:18,480 --> 00:15:20,280
Speaker 1: or emotion tells us we need to get the emotion

309
00:15:20,360 --> 00:15:22,040
Speaker 1: out of it. Let's look at the data, all right,

310
00:15:22,080 --> 00:15:24,240
Speaker 1: So let's go back in history to see when this

311
00:15:24,280 --> 00:15:27,160
Speaker 1: happened before. Now, we know in twenty fifteen to twenty

312
00:15:27,200 --> 00:15:31,480
Speaker 1: sixteen the Chinese stock market crashed really really hard. Right.

313
00:15:31,600 --> 00:15:34,720
Speaker 1: We know that in twenty eighteen to twenty twenty it

314
00:15:34,920 --> 00:15:37,880
Speaker 1: also crashed as well. There was this trade war going on.

315
00:15:37,960 --> 00:15:40,000
Speaker 1: You might remember Trump and the tariffs and all of

316
00:15:40,000 --> 00:15:43,720
Speaker 1: those things happening, which again crashed the market. And again

317
00:15:44,080 --> 00:15:46,960
Speaker 1: the Chinese market has been trying to de leverage for

318
00:15:47,000 --> 00:15:48,920
Speaker 1: a long time. That's what crashers are. They're trying to

319
00:15:49,000 --> 00:15:51,520
Speaker 1: de lever the system, which of course we can't have.

320
00:15:52,440 --> 00:15:54,400
Speaker 1: We saw it happen in twenty twenty one, if you remember,

321
00:15:54,400 --> 00:15:57,960
Speaker 1: in twenty twenty one, they cracked down hard on technology

322
00:15:57,960 --> 00:15:59,880
Speaker 1: and real estate as well. They're trying to kind of

323
00:16:00,160 --> 00:16:02,400
Speaker 1: low the bubble in real estate down and they crack

324
00:16:02,480 --> 00:16:05,800
Speaker 1: down too hard. You might remember that. Now. What's interesting

325
00:16:05,840 --> 00:16:09,120
Speaker 1: about this is you might remember I made this other

326
00:16:09,200 --> 00:16:12,040
Speaker 1: video about six months ago, and I talked about this

327
00:16:12,320 --> 00:16:17,360
Speaker 1: phenomena called the Imperial circle. Now it's the George Soros

328
00:16:17,360 --> 00:16:19,720
Speaker 1: Imperial Circle. A lot of you guys might not like

329
00:16:19,840 --> 00:16:23,320
Speaker 1: George Soros. I certainly don't. Just forget about his name

330
00:16:23,320 --> 00:16:26,120
Speaker 1: for a minute. It's about the secret circle, the imperial circle.

331
00:16:26,120 --> 00:16:29,880
Speaker 1: And basically what this tells us is that money moves globally.

332
00:16:30,440 --> 00:16:33,280
Speaker 1: And the irony of what happens is when the United

333
00:16:33,320 --> 00:16:36,040
Speaker 1: States goes into a rate hiking cycle where they're trying

334
00:16:36,040 --> 00:16:39,320
Speaker 1: to slow or tighten the economy down by raising rates,

335
00:16:39,600 --> 00:16:42,320
Speaker 1: it pulls liquidity from the rest of the world, and

336
00:16:42,360 --> 00:16:44,760
Speaker 1: so it sort of negates what they're trying to do, right,

337
00:16:44,800 --> 00:16:47,120
Speaker 1: So they raise rates and then it makes it more

338
00:16:47,160 --> 00:16:49,640
Speaker 1: attractive for money from other countries to come in. And

339
00:16:49,680 --> 00:16:52,040
Speaker 1: so what we're seeing. You have to remember that money

340
00:16:52,080 --> 00:16:56,120
Speaker 1: moves globally. So when the Chinese market becomes restrictive or

341
00:16:56,120 --> 00:17:00,640
Speaker 1: money starts leaving, where do you think it goes? If

342
00:17:00,640 --> 00:17:04,640
Speaker 1: you guess the US markets, global commodities, yes, you might

343
00:17:04,680 --> 00:17:06,560
Speaker 1: be right. So we can see this. Let's take a

344
00:17:06,560 --> 00:17:09,680
Speaker 1: look at these three data points in time. Let's take

345
00:17:09,680 --> 00:17:12,240
Speaker 1: a look at this is the Let's look at this

346
00:17:12,320 --> 00:17:15,000
Speaker 1: chart here. First, this is the S and P five hundred,

347
00:17:15,160 --> 00:17:17,320
Speaker 1: all right, so this is the US stock market. It's

348
00:17:17,359 --> 00:17:19,440
Speaker 1: like the main index, the benchmark that we look at

349
00:17:19,480 --> 00:17:22,600
Speaker 1: so during the first period that China had the same

350
00:17:22,600 --> 00:17:25,760
Speaker 1: situation happening. During the same period, we saw the S

351
00:17:25,760 --> 00:17:28,240
Speaker 1: and P five hundred up about nine percent, not major,

352
00:17:28,400 --> 00:17:30,240
Speaker 1: but it didn't lose money. It went up. That was

353
00:17:30,280 --> 00:17:32,920
Speaker 1: actually pretty good for US stocks. The second time, twenty

354
00:17:32,960 --> 00:17:34,919
Speaker 1: eighteen to twenty twenty, we saw the S and P

355
00:17:34,960 --> 00:17:38,000
Speaker 1: five hundred go up by almost twenty percent. That's pretty

356
00:17:38,000 --> 00:17:40,240
Speaker 1: good in a short period of time. We averaged what

357
00:17:40,320 --> 00:17:42,840
Speaker 1: eight percent over a fifty sixty year period, it's pretty good.

358
00:17:43,080 --> 00:17:45,560
Speaker 1: The third time it happened, the S and P five

359
00:17:45,600 --> 00:17:49,960
Speaker 1: hundred went up over twenty percent. Again. So as China

360
00:17:50,040 --> 00:17:52,399
Speaker 1: is restricting the market, so the markets are stumbling, the

361
00:17:52,480 --> 00:17:54,760
Speaker 1: money's come into the US. Now that's the US market,

362
00:17:54,840 --> 00:17:57,119
Speaker 1: that's S and P five hundred. What about a global

363
00:17:57,160 --> 00:18:00,600
Speaker 1: asset like commodity like bitcoin. We can see in the

364
00:18:00,600 --> 00:18:03,560
Speaker 1: same period the first time, bitcoin went up by three

365
00:18:03,680 --> 00:18:06,760
Speaker 1: hundred and sixty five percent, pretty good, better than the

366
00:18:06,760 --> 00:18:08,800
Speaker 1: eight percent the S and P five hundred did. The

367
00:18:08,840 --> 00:18:12,280
Speaker 1: second time it happened, bitcoin went up by ninety two percent,

368
00:18:12,560 --> 00:18:15,760
Speaker 1: again almost double your money. Not bad. And the last

369
00:18:15,760 --> 00:18:19,040
Speaker 1: time it happened, bitcoin went up another ninety percent. So

370
00:18:19,080 --> 00:18:23,600
Speaker 1: you see what happens is as they're easing, they're bringing

371
00:18:23,640 --> 00:18:26,000
Speaker 1: out the monetary bozuka so to speak. Right, they're going

372
00:18:26,040 --> 00:18:29,400
Speaker 1: to be putting billions trillions of dollars in an economy.

373
00:18:29,560 --> 00:18:32,400
Speaker 1: How much of that goes into other assets like bitcoin,

374
00:18:32,600 --> 00:18:34,639
Speaker 1: other commodities, as well as how much comes to the

375
00:18:34,760 --> 00:18:38,600
Speaker 1: US market, And now you have an idea all right, Now,

376
00:18:38,680 --> 00:18:41,240
Speaker 1: the important thing to understand is that a rising tide

377
00:18:41,240 --> 00:18:44,159
Speaker 1: lifts all boats, so to speak. And so we're not

378
00:18:44,200 --> 00:18:47,159
Speaker 1: seeing the asset in the bubble in assets. What we're

379
00:18:47,200 --> 00:18:49,639
Speaker 1: seeing is the bubble in the denominator or in the

380
00:18:49,720 --> 00:18:51,679
Speaker 1: US dollars. So really what we want to do is

381
00:18:51,680 --> 00:18:54,840
Speaker 1: we want to follow the money. Right, so just because

382
00:18:55,040 --> 00:18:57,880
Speaker 1: the Bank of Japan or the Bank of China or

383
00:18:58,000 --> 00:19:01,560
Speaker 1: the ECB European Center Bank they're printing money, doesn't mean

384
00:19:01,600 --> 00:19:03,679
Speaker 1: that it's going to stay in that region or in

385
00:19:03,680 --> 00:19:05,560
Speaker 1: those banks, right, It's going to go around the world's

386
00:19:05,600 --> 00:19:08,200
Speaker 1: we want to follow the money. We want to understand

387
00:19:08,240 --> 00:19:14,760
Speaker 1: that easing, these easing policies, lowering rates, lowering reserve requirements,

388
00:19:15,200 --> 00:19:20,240
Speaker 1: lowering down payments, things like that, it's increasing the money supply.

389
00:19:20,320 --> 00:19:22,919
Speaker 1: When money gets cheaper, people buy more of it. Just

390
00:19:22,920 --> 00:19:25,359
Speaker 1: like if Apple announced that the new iPhone sixteen was

391
00:19:25,400 --> 00:19:29,399
Speaker 1: on sell for ten dollars, would they sell more of them? Yes,

392
00:19:29,440 --> 00:19:33,840
Speaker 1: of course. We want to understand that different assets have

393
00:19:33,960 --> 00:19:39,000
Speaker 1: different sensitivity to the rates and the increasing liquidity, right.

394
00:19:39,040 --> 00:19:40,840
Speaker 1: I go over this all the time. So we know

395
00:19:40,880 --> 00:19:43,000
Speaker 1: that the S and P five hundred and the US

396
00:19:43,040 --> 00:19:46,280
Speaker 1: real estate goes up at about the rate of monetary increase.

397
00:19:46,720 --> 00:19:49,880
Speaker 1: We know that gold goes up about one point five

398
00:19:50,040 --> 00:19:52,840
Speaker 1: times that. We know bigcoin goes up at a nine

399
00:19:52,880 --> 00:19:56,560
Speaker 1: times sensitivity, So not all boats go up at the

400
00:19:56,560 --> 00:19:59,320
Speaker 1: same speed. We want to understand that different assets have

401
00:19:59,359 --> 00:20:02,720
Speaker 1: differences to rates. Now, as for bitcoin itself, we also

402
00:20:02,720 --> 00:20:05,040
Speaker 1: want to understand that there's a lag, all right. I just

403
00:20:05,080 --> 00:20:07,719
Speaker 1: did a video on this showing how when global equidity

404
00:20:07,760 --> 00:20:10,479
Speaker 1: breaks out, bitcoin has a lag. We'll link to that

405
00:20:10,600 --> 00:20:13,359
Speaker 1: video down below. If you want to understand the timeframe

406
00:20:13,400 --> 00:20:15,080
Speaker 1: of when you can expect bitcoin to take off, go

407
00:20:15,160 --> 00:20:18,840
Speaker 1: watch that video. And then overall, the assets that I

408
00:20:18,880 --> 00:20:21,800
Speaker 1: think are the best to invest into during this period

409
00:20:22,040 --> 00:20:25,080
Speaker 1: follow what I call the quantum wave cycle, which is

410
00:20:25,119 --> 00:20:28,119
Speaker 1: a fifty year technology cycle, and you want to be

411
00:20:28,200 --> 00:20:31,399
Speaker 1: investing right there, I'm gonna have a life presentation I

412
00:20:31,400 --> 00:20:33,040
Speaker 1: think next week where we're going to break down all

413
00:20:33,040 --> 00:20:34,639
Speaker 1: those assets. Is free. If you want to come hang

414
00:20:34,680 --> 00:20:36,480
Speaker 1: out and ask me questions. We'll put a link to

415
00:20:36,520 --> 00:20:40,439
Speaker 1: it down below. But just know that as this money

416
00:20:40,640 --> 00:20:43,920
Speaker 1: is being printed and we have just started to see it,

417
00:20:44,160 --> 00:20:46,800
Speaker 1: as I said, China said that a lot more will

418
00:20:46,840 --> 00:20:50,000
Speaker 1: be needed just to get them through Q four. The

419
00:20:50,040 --> 00:20:53,239
Speaker 1: FED hasn't even started yet, and so if you're not

420
00:20:53,240 --> 00:20:55,320
Speaker 1: prepared for what's about to happen over the next twelve

421
00:20:55,320 --> 00:20:58,000
Speaker 1: to fifteen months, you better get ready right now, and

422
00:20:58,040 --> 00:21:00,920
Speaker 1: you can start by joining me week Live. It's a

423
00:21:01,040 --> 00:21:03,199
Speaker 1: there's a link down below, or you may want to

424
00:21:03,240 --> 00:21:06,040
Speaker 1: just watch this video about the investing black hole right

425
00:21:06,080 --> 00:21:08,320
Speaker 1: here and that'll help you. That's what I got, all right,

426
00:21:08,520 --> 00:21:09,880
Speaker 1: Give me a like if you liked it. If you don't,

427
00:21:09,920 --> 00:21:11,520
Speaker 1: you can give me thumbs down. That's okay either way.

428
00:21:11,560 --> 00:21:13,199
Speaker 1: Tell me why in the comm's down below. That's what

429
00:21:13,240 --> 00:21:14,920
Speaker 1: I got to your success. I'm out