Speaker 1: Hello, and welcome back to another episode of the Markmas Show,
Speaker 1: where we talk about the decentralized revolution that the world
Speaker 1: is going through right now, and we talk about it
Speaker 1: through the lens of technology that's always changed the course
Speaker 1: of humanity. Of course, we're talking about the bitcoin technology,
Speaker 1: the decentralized technologies changing the world, and we're looking at
Speaker 1: through the lens of politics, finance, and technology to try
Speaker 1: to bring context to what is going on. And there's
Speaker 1: a lot of stuff going on, that is for sure.
Speaker 1: You know. We're seeing at a time where we have
Speaker 1: inflation raging to all newtime highs UM. At the same
Speaker 1: time we have like record amount of job quits going on,
Speaker 1: which is just crazy. Um. And then for the kind
Speaker 1: of the first time in my life or like potentially
Speaker 1: dealing with like a threat of nuclear war, we have
Speaker 1: food food shortages and famine being forecast um, which is
Speaker 1: just insane to me. Energy christ is going on, I mean,
Speaker 1: you name it. And as wild and crazy as this
Speaker 1: all sounds and it is, um, it's all part of
Speaker 1: these uh decentralized revolutions that happened right now and right here,
Speaker 1: and and as as big and as bad and as
Speaker 1: dangerous and as scary as as this all is, and
Speaker 1: it is as much uncertainty as we have about the future. Um,
Speaker 1: we need to try to bring back some certainty back, right.
Speaker 1: And we know when we go back and we look
Speaker 1: through history, which if you're tune into me on a
Speaker 1: regular basis, you know I love history. If we go
Speaker 1: back and we look at this from mystical standpoint, I mean,
Speaker 1: we hit these periods of volatility of uncertainty when the
Speaker 1: world changes. So as we go through these revolutionary periods,
Speaker 1: the world changes. Um. The good part, well, the good
Speaker 1: the good part is that it doesn't last a long time.
Speaker 1: It doesn't last forever, right, So the world gets volatile
Speaker 1: and the world changes, and then we find whatever is
Speaker 1: a new normal. Um. I for one believe that this
Speaker 1: technological revolution that we're facing right now with bick Woine
Speaker 1: is here to stay. And men go into that. And
Speaker 1: that's in deep detail. But I think it's one of
Speaker 1: the best risk adjusted investments I've ever seen in my career.
Speaker 1: And I can tell you that I believe that buying
Speaker 1: it now today at about approximates is a better entry
Speaker 1: then when I started buying it in at three hundred
Speaker 1: dollars and you might say, how is that possible? Mark,
Speaker 1: you were buying a three hundred that was obviously way
Speaker 1: better than buying it thirty. And if you look at
Speaker 1: just the sheer numbers, that's true. However, you should never
Speaker 1: be looking at any type of investment from the sheer numbers, right.
Speaker 1: You're trying to look at a bunch of different information
Speaker 1: to make a good decision. And what most people get wrong,
Speaker 1: and this is why most people lose money. Well most
Speaker 1: people get wrong is they look at how much can
Speaker 1: I make? I want that next hot tip, I want
Speaker 1: this next options trade, what's the next cryptocurrency, what's the
Speaker 1: next thing that can make me a bunch of money?
Speaker 1: And they focus on how much they can make, what
Speaker 1: the profit potential is. Real investors, professional investors, they don't
Speaker 1: look at that. They do, they look at that, but
Speaker 1: they also look at how much can I lose? What's
Speaker 1: my risk? Warren Buffets that the most important rule investing
Speaker 1: is to never lose money. The second most important rule
Speaker 1: is to don't forget number one. Don't lose money. Now,
Speaker 1: it's not that's not to say that's everybody loses money.
Speaker 1: Warm Buffets lost a lot of money, but you never
Speaker 1: want to lose money, and so you're always focused on
Speaker 1: that first, not how much you're making money. You have
Speaker 1: to understand that your life is a long should be,
Speaker 1: hopefully will be a long term game. Right. It's like
Speaker 1: a marathon. It's not I have twelve hours in the casino.
Speaker 1: I'm in Vegas on a on a plane. I'm gonna
Speaker 1: layover on my plan. I'm gonna go play the casinos
Speaker 1: for twelve hours, make as much as I can. Know
Speaker 1: it's your whole life, and so instead of trying to
Speaker 1: retire off of every single trade, it's about making money
Speaker 1: consistently over time out losing big um. Being an entrepreneur
Speaker 1: and being an investor or sort of like being a gladiator.
Speaker 1: What does that mean? That means the more you do it,
Speaker 1: the more likely you are to die, right, And so
Speaker 1: the goal is to not die. You don't want to die.
Speaker 1: And so you could be the best investor in the world.
Speaker 1: I mean you could win and win and win and
Speaker 1: win and win and win and win for decades and
Speaker 1: then one or two bad decisions and you could be
Speaker 1: wiped out. You could die. You could be the best
Speaker 1: gladiator forever. And then you meet one opponent and they
Speaker 1: kill you, and so you want to be careful about that.
Speaker 1: And so back to this risk adjusted trade. So the bitcoin,
Speaker 1: I believe it's a better entry today than it was then.
Speaker 1: And the reason why it's because of the risk. So
Speaker 1: there was so much risk. So on a risk adjusted basis,
Speaker 1: I mean bitcoin had had this rise, nobody knew it was.
Speaker 1: Um it ran up to about a thousand dollars, which
Speaker 1: was amazing. It caught my attention, maybe I should buy it,
Speaker 1: and then it crashed all the down right, and it
Speaker 1: was three bucks. It was way down off of where
Speaker 1: it's high was. Um. It was so new, we didn't
Speaker 1: know what it was, and what is this thing? And
Speaker 1: will it work well? Won't What about all these other cryptocurrencies,
Speaker 1: what about the blockchain, whether when the government's make it legal?
Speaker 1: There's all these risks And so even though I can
Speaker 1: buy it for three dollars, I couldn't put that much
Speaker 1: money into it because it was too risky. Whereas today
Speaker 1: we're at a point where I think almost all the
Speaker 1: risk is out. It's we don't know the future, nothing
Speaker 1: is unson certain, but almost all the risk is out
Speaker 1: and it's more inevitable, it's more certain today, way more
Speaker 1: certain today than it was in which means I can
Speaker 1: put way more money in today. However, even though it's
Speaker 1: at three thousand, we still have an amazing risk return profile.
Speaker 1: So very quickly I could run through the math and
Speaker 1: we could see bitcoin rise to a million dollars or coin.
Speaker 1: That's a twenty x upside we have. I mean, it
Speaker 1: could go to zero. The chance of the happening is
Speaker 1: barely above zero, but it could. So I have a
Speaker 1: one time's downside with a twenty times upside. That's pretty
Speaker 1: damn good odds odds. I'll take those odds. But it
Speaker 1: gets even better than that. So really, if we look
Speaker 1: at bitcoin, um, it's risen and fallen, risen and fall
Speaker 1: and talked about it falling from a thousand to three. Um,
Speaker 1: if you look at it, really bitcoin that hasn't really
Speaker 1: fallen more than about eight percent from its high, and
Speaker 1: so we're down. If we look at from its high
Speaker 1: in November of last year to where it's at now,
Speaker 1: we don't have a d percent to that level. To
Speaker 1: get to the decline, I think it would get to
Speaker 1: about eighteen thousand. Half off the top of my head,
Speaker 1: but about eighteen thousand, So really you could buy it
Speaker 1: at thirty thousand and say maybe lose half. So maybe
Speaker 1: you lose half of it now could go to zero,
Speaker 1: but this is not likely. So let's say you have
Speaker 1: a zero point zero five downside with a twenty two
Speaker 1: times upside. We'll shoot that's pretty attractive. So it's a
Speaker 1: better risk adjested entry. So because of the risk and
Speaker 1: return profile, I can put way more money into it
Speaker 1: today than I could have before. The other thing that
Speaker 1: we know through time is that bitcoin has been the
Speaker 1: best performing asset in history. Now, history is now never
Speaker 1: a guarantee of return, but it's been averaging about two
Speaker 1: annual compounding growth rate. If you zoom out, it's up
Speaker 1: about two in the last twenty four months alone. And
Speaker 1: so because of that, it's one of those assets you
Speaker 1: want to buy and you want to hold. And it's
Speaker 1: also why more people in the United States than ever
Speaker 1: are turning into bitcoin and cryptocurrencies to help fund their retirement.
Speaker 1: Even in light of this recent market crash that we have,
Speaker 1: and I talked about Fidelity, they are now allowing people
Speaker 1: to take their four O one case and put it
Speaker 1: into bitcoin. Uh, and it's happening in fast We can
Speaker 1: see some twenty percent of Americans aged eighteen to sixty.
Speaker 1: Around fifty million people have owned or traded crypto in
Speaker 1: the past six months, according to a poll published by
Speaker 1: the crypto exchange coo cooin Um. Yet older folks are
Speaker 1: more devoted to the young asset class than the general population,
Speaker 1: according to the survey carried out at the end of March,
Speaker 1: with of those age fifty and above but no crypto
Speaker 1: as part of the early retirement plans. So even of
Speaker 1: the people over fifty years old, twenty of them are
Speaker 1: still putting bitcoin into the retirement plans. It's that important. Now.
Speaker 1: There's a couple ways to do that. Of course, obviously
Speaker 1: you can uh just go out and buy it all
Speaker 1: at once. If you have money you have a hundred
Speaker 1: thousands to put it in there, or you could put
Speaker 1: it in over time. It's called dollar cost averaging. Two
Speaker 1: different strategies. And it depends on where you see the future.
Speaker 1: If if you're one of those people who think, should
Speaker 1: I buy it all now or should I wait because
Speaker 1: I'm afraid the price will drop even more, well where
Speaker 1: would the price drop to. Well, historically it probably wouldn't
Speaker 1: drop below about eighteen thousand, Uh even better, Probably twenty
Speaker 1: two thousand might be the low for the cycle. Now,
Speaker 1: anything can happen, right, anything could happen. Um, so could
Speaker 1: it dropped there? It could? And so if you're one
Speaker 1: of those people who want to wait for maybe that
Speaker 1: to happen, well, then maybe what you want to do
Speaker 1: is dollar cost average and maybe put a little bit
Speaker 1: of your money in now in case. Uh, But then
Speaker 1: in case it keeps going down, you can keep buying
Speaker 1: more and you can average in as it goes down.
Speaker 1: But if it turns around and just goes up from here,
Speaker 1: at least you bought some at the lower price. You
Speaker 1: listen to the Mark Ma Show talking about the Decentralized Revolution,
Speaker 1: talking about the way the world is changing with bitcoin
Speaker 1: and crypto. I'll be right back, all right, welcome back.
Speaker 1: You're listening to the Markma Show. We're talking about the
Speaker 1: decentralized Revolution each and every week, talking about the way
Speaker 1: bitcoin and cryptocurrencies are changing the world looking at through
Speaker 1: the lens of politics, technology, and finance. And we were
Speaker 1: talking a lot about obviously, we talking a lot about
Speaker 1: bitcoin and some of the cryptocurrency overall. And I've been
Speaker 1: talking a lot about this big blow up in the
Speaker 1: stable coin market with Tera Luna UM we talked about
Speaker 1: how unfortunately people are losing their life savings and things
Speaker 1: like this UM other stable coins that are trying to
Speaker 1: do some other algorithmic thing and their peg to this
Speaker 1: asset or this asset or whatever. Calm plex things, complex
Speaker 1: things that are untried, untested, likely to fail, and no
Speaker 1: one should ever be put in their life savings into
Speaker 1: these things. And of course people are. They're losing their
Speaker 1: money unfortunately. I've even heard of people committing suicide. Lots
Speaker 1: of lawsuits piling up over this, and we talked about
Speaker 1: these lawsuits before and and uh, I think people want
Speaker 1: the freedom, but they don't want the responsibility, and you
Speaker 1: have to take both. But at the same time, I
Speaker 1: don't like to throw the word around, you know, scam
Speaker 1: or fraud. I don't like to throw that word around lightly.
Speaker 1: I like to I like to use the word for
Speaker 1: what it's intended for. You know, if I buy something
Speaker 1: and you give me something other than what you promised,
Speaker 1: that would be a scam or that would be a fraud.
Speaker 1: And I've talked about before UM. A lot of these
Speaker 1: other cryptocurrencies are a scam and they are a fraud.
Speaker 1: And the reason why I can say that and I
Speaker 1: can back that up is because they are delivering you
Speaker 1: something other than what they've promised to be. A good
Speaker 1: example of this is the newest, the hottest going cryptocurrency
Speaker 1: blockchain out there, and that's Salana. Salana is the venture
Speaker 1: capital Darling. Right, It's raised all this money every VC
Speaker 1: wants to. Any project that's been built on Salona gets,
Speaker 1: you know, hundreds of millions of dollars of funding. You know,
Speaker 1: billions of dollars collectively been raised to invest in this
Speaker 1: ecosystem into what? Into what ecosystem? Oh? Onto its decentralized blockchain. Okay,
Speaker 1: but what if it's not decentralized? Oh? I know, Mark, Mark,
Speaker 1: You're you're, you're you're starting fund right, you don't know
Speaker 1: what you're talking about. Well, let's look at this. Uh
Speaker 1: if we if we will have broken this down deeper before,
Speaker 1: but I want to look at this this new story.
Speaker 1: So this week we see Salana was halted again by
Speaker 1: a bug this time. Alright, so it was halted? What
Speaker 1: does this mean? The salat of network suffered its latest
Speaker 1: outage Wednesday. It failed for over four hours by a
Speaker 1: bug in how the blockchain process is a niche type
Speaker 1: of transactions designed for offline use cases. So Salana Labs,
Speaker 1: the communication chief, Austin Federa, told Coin Desk that those
Speaker 1: transactions remain mixed until developers identified and patch the exact
Speaker 1: culprit that through Salona's consensus mechanism off. So they had
Speaker 1: to pause. They had they had one stop the transactions
Speaker 1: and to shut down the entire blockchain. But wait a minute,
Speaker 1: I thought it was decentralized. What does decentralized mean. Doesn't
Speaker 1: decentralized mean that nobody controls it? Well, if nobody controls it,
Speaker 1: then how does Salona Labs chief Austin get the developers
Speaker 1: to stop processing transactions and shut down the whole network?
Speaker 1: See how that works? Let me let me let me
Speaker 1: let me back up a little bit. Here. We have databases.
Speaker 1: We have lots of databases. The Internet has changed the
Speaker 1: world and we have these computer databases and these the Internet,
Speaker 1: uh can pullug in these databases. So Facebook has a
Speaker 1: database and it's in their you know server farm, probably
Speaker 1: in Menlo Park or whatever. Um and you have, you know,
Speaker 1: Experience has this database and it's in their server. And
Speaker 1: there's an I I T team that tries to secure
Speaker 1: it and keep it secure, cybersecurity team, etcetera. And they
Speaker 1: get hacked all the time, right, and so the cybersecurity
Speaker 1: teams they can't keep it safe. Now, um, we have
Speaker 1: a brand new technological revolution different than the technology. A
Speaker 1: technology is something cool, like an iPhone. That's a new technology.
Speaker 1: We took a computer, we took a phone, we put
Speaker 1: them together. Cool. A technological revolution is something that changes
Speaker 1: the course of humanity and drives financial markets. So there's
Speaker 1: been five industrial revolution uh, steel, steam, steam engines, the railway,
Speaker 1: steel electricity, oil, automobiles, mass production, and microprocessors. Each one
Speaker 1: of those has driven financial markets. And here we are.
Speaker 1: The new technology revolution is decentralization. So instead of having
Speaker 1: centralized databases like Facebook or Experience that could hack all
Speaker 1: the time, we have decentralized which means instead of one database,
Speaker 1: there's thousands or millions of databases. And so instead of
Speaker 1: one person or one company or one group controlling the
Speaker 1: database the ledger, now nobody controls it because everybody controls it.
Speaker 1: And in order for the network to change or proven
Speaker 1: upgrade whatever, it has to achieve consensus. And that means
Speaker 1: over half of the network has to agree. Now, if
Speaker 1: we have three of these databases and I control all three,
Speaker 1: is it really decentralized. If we have three and I
Speaker 1: control one, my wife controls one, of my daughter controls one,
Speaker 1: is that really decentralized, right? And so really it's it's
Speaker 1: decentralized when there's enough spread, when there's enough databases and
Speaker 1: there's no more control, when no one person or entity
Speaker 1: can control that network like bitcoin. So Bitcoin doesn't have
Speaker 1: a chief, there's no chief, there's no group, um, there's
Speaker 1: none of that. There's no CEO to get brought up
Speaker 1: on charges or bring in for questioning. And so because
Speaker 1: of that, there's no one that can shut down the network.
Speaker 1: There's no company, there's no chief, there's no labs um,
Speaker 1: there's no government that can shut it down. Why because
Speaker 1: there's so many databases that are controlled by all these
Speaker 1: individual people like myself running my own note in my
Speaker 1: own database. But you can't do that, you can't run
Speaker 1: a note in a database with Salana. And so because
Speaker 1: of that, Salona Labs is able to stop transactions and
Speaker 1: is able to shut down. Now, this has happened multiple times.
Speaker 1: This is not the first time that's happened, and we
Speaker 1: can see this really in the price pretty well. So
Speaker 1: we can see at the beginning of the year if
Speaker 1: we look here today here, at the beginning of the year,
Speaker 1: the price of Salona the token was a hundred and
Speaker 1: seventy five. Today it's forty and so people are starting
Speaker 1: to wake up to this. Wait a minute, what is
Speaker 1: this thing? It's not decentralized. If it's decentralized, how do
Speaker 1: they keep shutting it down over and over and over.
Speaker 1: How can you build a financial network that keeps having
Speaker 1: bugs and keeps getting shut down over and over and over.
Speaker 1: What if you need to run transactions? Now, I'll let
Speaker 1: you know that the Bitcoin network has achieved like a
Speaker 1: ninety nine uptime, meaning when it first launched, in the
Speaker 1: very first days, there was a little blood bug they
Speaker 1: found and they fixed, and since that time it has
Speaker 1: never never gone down, never had a bug. And there's
Speaker 1: no other network in the world I believe that can
Speaker 1: make that claim, and definitely not Salana. It could shut
Speaker 1: down all the time. And my point going back to,
Speaker 1: is is it a scam? If they tell you it's
Speaker 1: a decentralized network and it's not, is that a fraud?
Speaker 1: I don't know. Let me hear what you have to say.
Speaker 1: You can hit me up on Twitter at one Mark
Speaker 1: Moss or on Instagram at one Mark Moss. I'd love
Speaker 1: to hear from more of you guys, so feel free
Speaker 1: to let me know on that specifically. Is it a
Speaker 1: scam if they tell you it's decentralized and it's not. Now,
Speaker 1: what we know is that the world values decentralized networks
Speaker 1: like Bitcoin right it was, it's a five six billion
Speaker 1: dollar valuation. And we also know the world values centralized
Speaker 1: databases experience Facebook, They're worth a lot of money. So
Speaker 1: we know there's a value for centralized databases, and we
Speaker 1: know there's value for decentralized databases. Is their value in
Speaker 1: a decentralized ISH database? And what will be the point
Speaker 1: of a decentralized ish You can think of it quickly.
Speaker 1: Anytime you hear the word block changes, substitute in your
Speaker 1: mind the word slow inefficient database. So we want fast databases.
Speaker 1: The only reason that we willing to have a very
Speaker 1: slow and efficient one is if it's the most secure
Speaker 1: and most decentralized. But if it's not, what's the point
Speaker 1: then we'll find out. But i'd love to hear your perspective.
Speaker 1: Like I said, hit me up on Twitter, Instagram at
Speaker 1: one Mark Moss and let me know what you think.
Speaker 1: You're listening to the markmas Show talking about the decentralized Revolution,
Speaker 1: talking about the way bitcoin and cryptocurrencies are changing the
Speaker 1: world as we see it in every area. And we
Speaker 1: talked about a lot different subjects because it is changing
Speaker 1: the world. We talk about fixed the money, fix the
Speaker 1: world is that big. Let me know what you think
Speaker 1: about this. I got a lot more to cover when
Speaker 1: I come back in a second, so do not go away.
Speaker 1: I'll be right back, all right, Welcome back. You are
Speaker 1: listening to the Mark mo Show talking about the de
Speaker 1: centralized revolution, talking about it, talking you through it, because
Speaker 1: the world is going through it. That's why the world
Speaker 1: is so crazy right now. And if you understand this,
Speaker 1: everything just starts getting more clear. We look at it
Speaker 1: through the lens of politics, finance, and technology, all converging,
Speaker 1: the three revolutionary cycles converging we talked about all the time,
Speaker 1: and so we want to look at it from all
Speaker 1: those different angles, all those different perspectives, to get this dynamic,
Speaker 1: holistic view so we can understand it, so we can
Speaker 1: of course be better prepared for what's happening. One thing
Speaker 1: we saw this week was maybe one of the most
Speaker 1: powerful people in the world. Um, non elected. I'm not
Speaker 1: talking about the president, UM, I am talking about Jamie Diamond. Now,
Speaker 1: Jamie Diamond is the head of JP Morgan, arguably the
Speaker 1: most powerful banking institution United States, which, of course the
Speaker 1: dollars reserve currency of the world. So Jamie Diamond has
Speaker 1: massive or over the banking system, of course, the federal
Speaker 1: reserve system, which of course is the economy and the
Speaker 1: world as well. And so when Jamie Diamond talks, a
Speaker 1: lot of people listen and uh, I listen. UM, I
Speaker 1: don't always agree. For example, in Jamie Diamond said that
Speaker 1: bitcoin is a scam, it's a fraud. He said that
Speaker 1: if anybody at JP Morgan traded bitcoin, they would be fired.
Speaker 1: That's what he said. So you know, I listened, I
Speaker 1: didn't agree. Um. Sometimes I listen, sometimes I don't agree.
Speaker 1: Sometimes I listen and I do agree. And he said
Speaker 1: this week that, um. J He said that JP Morgan
Speaker 1: is bracing itself get ready, brace for the impact of
Speaker 1: an economic hurricane. He says that the FEDS actions are
Speaker 1: creating an unprecedented challenge, but it's still too soon to
Speaker 1: say how intense the storm will be. But he warned
Speaker 1: investors to prepare for an economic quote hurricane as the
Speaker 1: economy struggles on against an unprecedented combination of challenges, including
Speaker 1: tightening monetary policies and the Russia invasion of Ukraine. So
Speaker 1: two of those. Um, the economy struggles against unpresident combination
Speaker 1: of challenges. So the tightening monetary policy. Okay, so without
Speaker 1: going super deep into this guy to talk about all
Speaker 1: the time, but that's like a self inflicted problem, the
Speaker 1: struggling against um monterary tightening. But why are we tightening
Speaker 1: monetary policy? Oh, well because of inflation, mark right, Um,
Speaker 1: but what caused the inflation? Oh the loose monetary policy.
Speaker 1: And see how all these booms and bus are because
Speaker 1: we have a loose monetary policy to stimulate the economy
Speaker 1: and then it gets overly stimulated and so then we
Speaker 1: have to then tighten it back up. It's like, uh,
Speaker 1: I don't know if it's like this, but like you know,
Speaker 1: taking taking stimulants in the morning to wake up and
Speaker 1: then taking sleeping bills at night. I think that's how
Speaker 1: Elvis Presley died. Taking uppers and downers. Uppers and downers,
Speaker 1: and that's kind of what happens with the market. And
Speaker 1: the problem is those uppers and downers they work less
Speaker 1: and less and less, so you need more and more
Speaker 1: and more of them, and so then it creates a
Speaker 1: real problem. And Elvis Presley died and so correct me
Speaker 1: if I'm wrong, by the way, I think that's the story.
Speaker 1: I'm not old enough to really remember. Hit me up
Speaker 1: on social media at one, Mark Moss and let me know.
Speaker 1: But let's let's just let's just go with that, right,
Speaker 1: And so that's kind of what we're up against, right.
Speaker 1: The Federal Reserve, they ease monetary policies, quantitative easing, and
Speaker 1: now this week we started qt quantitative tightening, because that
Speaker 1: means they're tightening things back up. But again, they wouldn't
Speaker 1: have to tighten things if they didn't loosen things, but
Speaker 1: they just leave things alone. As a matter of fact, Um,
Speaker 1: we don't human beings. The government doesn't have to work
Speaker 1: to create prosperity. Humans already create prosperity. I used to
Speaker 1: carry one rock by hand, and uh, I got tired
Speaker 1: of that, so I created a wheelbarrow, and now I
Speaker 1: can carry a whole bunch of rocks. Way easier. Humans
Speaker 1: trade From the very first time I went and killed
Speaker 1: a rabbit and I came across the guy who had
Speaker 1: a fire, and I said, hey, I have an idea.
Speaker 1: How about I I cook my rabbit on your fire
Speaker 1: and we share it. And that's capitalism. Capitalism is not
Speaker 1: a political, uh system. It's not something that's been invented.
Speaker 1: It's not something that has to be ordered to follow
Speaker 1: this capitalism. No, capitalism is just organic. It's emergent. You
Speaker 1: had a fire, I had a rabbit. Let's work together. Um,
Speaker 1: you in my early now and you have talked about
Speaker 1: beyond this deserted island proverbial desert island. You have the coconuts.
Speaker 1: I found a fish. Let's trade, right. It's emergent, it's natural,
Speaker 1: it's organic. Human beings strive for prosperity. We strive to
Speaker 1: make things easier and better. Only through the government can
Speaker 1: they force us to be poor. And that's exactly where
Speaker 1: we're at here. And so back to this, they're tightening policies.
Speaker 1: How abould if they just left us alone and we
Speaker 1: were just left to be first on our own. But
Speaker 1: he says here quote, we don't know if it's a
Speaker 1: minor one or a superstorm sandy, but you better brace yourself,
Speaker 1: he says. And he said that they're preparing. Um. He
Speaker 1: said that JP Morgan is preparing for that turbulence by
Speaker 1: being conservative with its balance sheet. And so I like that.
Speaker 1: He says. They want to shed non operating, non operating
Speaker 1: deposits again, which we can do in size to protect
Speaker 1: ourselves so we can serve clients in bad times. And so, UM,
Speaker 1: they're being conservative with your balance sheet and you should too.
Speaker 1: And I am to write and so think about this,
Speaker 1: think about your balance she, think about your investments. People
Speaker 1: ask me a lot about real estate. They have been
Speaker 1: a real estate investor for my whole career. Should I
Speaker 1: buy a house now? Should I sell my house now?
Speaker 1: Should I sell this that? Whatever? Um? And what I
Speaker 1: would say is again, UM, look at your balance sheet,
Speaker 1: look at the investments you have. And if you have
Speaker 1: a house that typically I don't include my home as
Speaker 1: part of my investments. Um. And so if you're in
Speaker 1: a home that's your family's home, you probably don't want
Speaker 1: to sell that. However, if it's just an investment for you, UM,
Speaker 1: of you should UM when it comes to my real
Speaker 1: estate investments. If it's a home that I love and
Speaker 1: I want to keep, it's a trophy asset, it's on
Speaker 1: a lake, it's on a ski resort, I'm always gonna
Speaker 1: want to own this thing, no matter what, I'm going
Speaker 1: to keep it. However, if it's in a place like
Speaker 1: I sold some properties up in the um Northern Midwest,
Speaker 1: and I'm like, you know what, I don't think these
Speaker 1: areas have good long term potential, I'm selling them. So
Speaker 1: I sold some properties there, and I've bought properties in
Speaker 1: other areas that I think will continue to do good.
Speaker 1: So now would be the time to get rid of
Speaker 1: assets that you don't like. It's also the time to
Speaker 1: think about holding more cash. I think holding of your
Speaker 1: investment portfolio and cash is probably a good idea right now, UM,
Speaker 1: and UM thinking very carefully about putting more money out
Speaker 1: because what he's saying right here, JP Morgan is preparing
Speaker 1: for that turbulence by being conservative with its balance sheet,
Speaker 1: and he says that there's power quote, powerful forces threatening
Speaker 1: the US economy. Powerful forces. UM Like, what what are
Speaker 1: these powerful forces? Uh? Back to inflation and the Russia's
Speaker 1: invasion of Ukraine. Now, Uh. First of all, it's not uh,
Speaker 1: it's not the COVID crisis, and it's not the Russia
Speaker 1: Ukraine crisis. It's the response to those things that are
Speaker 1: the problem. So Russia's invasion of Ukraine, well, now the
Speaker 1: whole world has slapped crazy sanctions on them. It's the
Speaker 1: sanctions that are causing the problem. Now Russia is doing
Speaker 1: better than they've ever done. Their currency, the ruble, is
Speaker 1: at all time highs. They're making more money than they've
Speaker 1: ever made because they have gold, they have oil, they
Speaker 1: have natural gas. Those things have shot through the roof.
Speaker 1: They're making more money. All of the sanctions are hurting
Speaker 1: you and me in the United States. We pay more
Speaker 1: for gas, we pay more for food. So the problem
Speaker 1: is not the Russia Ukraine war. The problem is the
Speaker 1: response to it, so that the sanctions have made richer Russia,
Speaker 1: Russia richer, and made us in Western Europe and the
Speaker 1: United States poor. Um through the COVID epidemic. It isn't
Speaker 1: COVID necessarily direct the economy, it was the response to it.
Speaker 1: So Jamie Diamonds talking about these um, these unprecedented things,
Speaker 1: these powerful forces, as he said, but it's the powerful
Speaker 1: people that are creating these policies that are creating these problems.
Speaker 1: He says that. He says, he said, are we facing
Speaker 1: a recession? He said, It's possible, Absolutely possible. He said,
Speaker 1: UM And he says, uh in the nation's biggest bank,
Speaker 1: having an unparalleled view of the US economy, has a
Speaker 1: window into the finances of American households, businesses, and small
Speaker 1: and they have approximately six to nine months of spending
Speaker 1: power left. Six to nine months of spending power left.
Speaker 1: So UM, if inflation continues going up. We've talked, We've
Speaker 1: seen reports showing that Americans now have to postpone retirement
Speaker 1: because of this. UM, we have about six months of
Speaker 1: runway left before things get ready. He says. He's bracing
Speaker 1: for an economic storm, and I am too, and you
Speaker 1: should too. You're listening to the Mark mo Show talking
Speaker 1: about the decentralized revolution, which of course, these economic storms,
Speaker 1: its volatility happens during these revolutionary times. I'm bringing it
Speaker 1: to you in context of politics, finance, and technologies so
Speaker 1: you can understand all of these forces so you can
Speaker 1: be better prepared. I'm being better prepared by moving more
Speaker 1: towards cash, getting rid of investments that I don't want
Speaker 1: to keep for the long term and only deploying new
Speaker 1: money and stuff that I really believe. I'm preparing for
Speaker 1: the storm, Jimmy Diamonds, preparing for the storm as JP
Speaker 1: Morgan is, and you should as well. Of course, I'm
Speaker 1: not selling my bitcoin and you shouldn't either. Um, that's
Speaker 1: not financial advice, that's just what I'm doing. I'll be
Speaker 1: back with more in a minute, so don't go away,
Speaker 1: all right, welcome back. You are listening to the Markmas Show.
Speaker 1: We're talking about the decentralized revolution navigating the world as
Speaker 1: we see this revolution change, as the world is changed
Speaker 1: right before very eyes. Of course, Um, it's already going
Speaker 1: through this, and we have this technological revolution of bitcoin
Speaker 1: that is speeding up this adoption and it's caused all
Speaker 1: types of problems. Uh. Like I said, we say we
Speaker 1: talked about fixed the money, fixed the world because it
Speaker 1: really changes everything from society breaking down to our health
Speaker 1: to the way that we even get along with people.
Speaker 1: And you can see it right the people, the people
Speaker 1: around the world have never been more divided, and we're
Speaker 1: being divided on lots of different issues and a lot
Speaker 1: of those issues go back to the money. One of
Speaker 1: these big hot button issues that I've spent a lot
Speaker 1: of time this week talking about with with individual people,
Speaker 1: is this UH topic that just won't seem to go away,
Speaker 1: that continues to be recirculated over and over, and it's
Speaker 1: been hot this week, and I'm talking about what should
Speaker 1: we do with student loan debt? It's an interesting topic.
Speaker 1: Like most topics, there's no easy answer for any of
Speaker 1: these because you have to look at them from so
Speaker 1: many ways. And I think you know, one of the
Speaker 1: problems that we have with these types of issues and
Speaker 1: politics overall, a lot of times people think about themselves
Speaker 1: when they vote on these things or discuss them, as
Speaker 1: opposed to thinking about the greater good. A lot of
Speaker 1: that greater good has been ignored because of just the
Speaker 1: way society has gone gone. I think if you look back,
Speaker 1: like UH, in a business which ran many businesses, the
Speaker 1: most people have had working for me at one time
Speaker 1: was about sixty five people, which isn't super big, but
Speaker 1: but it's not small either. And when you run a company,
Speaker 1: you have to think about your company culture, and that's
Speaker 1: like the attitude that's in that company, and the company
Speaker 1: culture is set by the top in business there's a
Speaker 1: saying that says a fish stinks from the head down.
Speaker 1: And so if you think about that and the way
Speaker 1: businesses set culture, and so you've had companies like Zappos,
Speaker 1: like the online shoe company that have basically reimagined the
Speaker 1: way the company culture said, and they become case studies
Speaker 1: in businesses emulate what they've done. But if you look
Speaker 1: at the United States, for example, when it was founded,
Speaker 1: we had founding fathers who left their homes in Europe
Speaker 1: risk their lives to come to America in hopes of
Speaker 1: a better place for future generations. So they risk their happiness,
Speaker 1: they risked their life for future generations. Um, the you know,
Speaker 1: in the early days, the founding fathers, they went to war,
Speaker 1: the Revolutionary War, and they risked their life, they risked
Speaker 1: everything for future generations. Even not that long ago, even
Speaker 1: you know, eighty years ago, even still today, probably some
Speaker 1: but even eight years ago, we had we had immigrants
Speaker 1: come into this country sacrificing everything, leaving everything behind, working
Speaker 1: you know, two three jobs so their future generations could
Speaker 1: be better. But today we don't have that anymore. The
Speaker 1: leadership of this country today is only thinking about themselves.
Speaker 1: Nancy Pelosi is able to outtrade every single hedge fund
Speaker 1: and investor in the in the nation, and now the
Speaker 1: United States. The only thing we have left is our
Speaker 1: financial services are Wall Street right, and she's outperforming them
Speaker 1: and their full time professionals that have million dollars million
Speaker 1: dollars worth of staff and team to help them. We
Speaker 1: have leadership that's only thinking about themselves, and so what
Speaker 1: does that do? Back to the leadership and the culture,
Speaker 1: and so now we have everybody in the country thinking
Speaker 1: about themselves, no one thinking about the greater good, and
Speaker 1: so back to the student loaned At a lot of
Speaker 1: times people approach these situations thinking about what's good for
Speaker 1: me as opposed to thinking about the greater good. Now,
Speaker 1: it's not just as easy as ad There's some ways
Speaker 1: to look at this, but of course this is the
Speaker 1: raging debate. Um says US Americans collectively hold more than
Speaker 1: one point five trillion in federal student loans, making it
Speaker 1: the second largest category of consumer debt, behind only mortgage debt.
Speaker 1: Of course, more is that at least you have a
Speaker 1: house student loan debt, you have a piece of paper
Speaker 1: you can hang on your wall. Now it's the second
Speaker 1: largest category of consumer debt, but it's the largest, the
Speaker 1: number one asset on the government's books. Now, the government
Speaker 1: has a ton of debt obviously, about thirty trillion dollars
Speaker 1: worth of debt. And then they have assets, right as
Speaker 1: you have liabilities, what's your debt and you have your assets? Well,
Speaker 1: their assets, their biggest asset is this the debt, the
Speaker 1: student loan debt, approximately forty three million student loan borrowers
Speaker 1: in the US almost oh dollars or less, well forty
Speaker 1: or more um. And so is this the crisis that
Speaker 1: calls for a cancelation of all federal student debt, as
Speaker 1: championed by former Democratic presidential hopeful Bernie Sanders and Elizabeth Warren.
Speaker 1: There's a raging debate, debate and uh, there's pros and cons,
Speaker 1: there's winners and losers. And that's part of a problem.
Speaker 1: I've talked about this that capitalism is free an open market.
Speaker 1: So capitalism is always a win win. Capitalism is one
Speaker 1: it protects private property rights to it's free and voluntary exchange,
Speaker 1: and so it's always win win. If I like the deal,
Speaker 1: I take it. If I uh, and that's I take
Speaker 1: it because it's a win. And if I don't know,
Speaker 1: no harm off of me and I went either way, right, Um,
Speaker 1: But under these type of political systems, there's always a loser.
Speaker 1: It's always a win lose deal, and unfortunately that's where
Speaker 1: we're at. It's it's not a good situation, they say.
Speaker 1: Proponents of mass desk debt cancelation say it's appropriate because
Speaker 1: it's failed government policies, not recklessness on the students, because
Speaker 1: I guess the students were forced at gunpoint to take
Speaker 1: on the debt. I guess why, says uh. They hold
Speaker 1: at one point six joined in debt, and the effects
Speaker 1: of that debt on college graduates have been documented. Delays homebuying, delays, marriage, delays,
Speaker 1: wealth formation because those student loans are eating into their
Speaker 1: savings and it accounts um for about thirty five per
Speaker 1: cent of debt of these delinquent households. And it's it's
Speaker 1: not wrong, it's not wrong, right. I think about it like,
Speaker 1: these are young people, you know, starting out in life,
Speaker 1: starting families, etcetera. This is the future. So we have
Speaker 1: this aging population, the baby boomer generation is the largest
Speaker 1: segment of the population. They're all retiring. Now, you spend
Speaker 1: the most amount of your money at the end of
Speaker 1: your life, when you're dying, and now we need all
Speaker 1: these young people to come up and pay for all
Speaker 1: of that. But all these young people are stiddled with
Speaker 1: so much debt that they can't be productive. So it
Speaker 1: is a problem. I'm not gonna lie. It's a problem.
Speaker 1: But is it the problem of the government of to
Speaker 1: forgive that debt? Think about it now. A lot of
Speaker 1: people went and took on this debt to get the jobs,
Speaker 1: so they thought they could get better jobs, right, it,
Speaker 1: says uh. In the wake of the two financial crisis,
Speaker 1: states cut public funding to higher education, so individuals had
Speaker 1: to pick up the slack. So since the government stopped
Speaker 1: subsidizing it, people had to pay more. Tuition at public
Speaker 1: four year college is increased by thirty six percent between
Speaker 1: o eight and two thousand eighteen UM as many people
Speaker 1: turned to higher education to wait out weaker jobs, but
Speaker 1: because of the increased demand always back to the supply demand.
Speaker 1: Because of increased demand, it pushed the private pushed the
Speaker 1: tuition costs up. M hmm. Now this might have worked
Speaker 1: out if the returns on a college education had climbed
Speaker 1: to the similar rate. Instead, the recession ended wages for
Speaker 1: college graduates and they've stayed flat. So all these people
Speaker 1: went and borrowed money to get the college degrees, they
Speaker 1: couldn't get the jobs and not turned out to a
Speaker 1: bad deal. But whose fault is that? And now I'm
Speaker 1: sympathetic to those people? But what about the people who
Speaker 1: chose not to go to college because they didn't want
Speaker 1: to take on the debt and now they've been working
Speaker 1: a lower paid wage job. If you forgive the debt
Speaker 1: of the people who went to college because they got
Speaker 1: a better job, what about the people who have been
Speaker 1: working for a decade and a low paying job because
Speaker 1: they didn't want to take on the debt. What about
Speaker 1: the people who worked two jobs and sacrificed their family
Speaker 1: to pay that debt off. How do you subsidize that.
Speaker 1: It's a complex problem that again, these are these are
Speaker 1: these are difficult problems to get out of. They're much
Speaker 1: better if you never get into them in the first place.
Speaker 1: So back to central planning, the decentralized revolution. Central planning
Speaker 1: is the problem. Printing money and deciding to subsidize some
Speaker 1: people at the sacrifice of other people will create this
Speaker 1: wind loose scenario. Someone's gonna win, someone's gonna lose. All
Speaker 1: that's going to do is divide people even more. If
Speaker 1: I chose not to go to college, which I didn't,
Speaker 1: why should I have to pay for people who chose to.
Speaker 1: And all of this is put us against each other.
Speaker 1: Now there's no easy way of this. I'd love to
Speaker 1: hear what you think. Hit me up on social media
Speaker 1: at one Mark Moss, you hit me up on Twitter,
Speaker 1: on Instagram. I'd love to hear what you think about this.
Speaker 1: I'll talk more about it if I get enough feedback
Speaker 1: from you. But it's a it's a it's a difficult problem.
Speaker 1: All of these problems are difficult to get out of
Speaker 1: because we live in a complex system that needs to
Speaker 1: be made on a small local level, a d centralized level,
Speaker 1: which is why we talked about the decentralized revolution. Central
Speaker 1: planning fails because it can't take into account all of
Speaker 1: the variables that go into this. And now here we
Speaker 1: are stuck with an a possible decision where there's gonna
Speaker 1: be winners, there's gonna be losers, there's gonna be more
Speaker 1: civil discourse in the time when we can't afford that anymore.
Speaker 1: You're listening to the Mark Moms Show, talking about the
Speaker 1: decentralized revolution, talking about how the world is changing technology,
Speaker 1: being the driver Bitcoin, decentralized technology changing the world for
Speaker 1: the better. In my opinion, it's rough now, but there's
Speaker 1: massive hope and prosperity on the other side of this.
Speaker 1: But I'd love to hear what you think. Hit me
Speaker 1: up on social media at one Mark Moss at least
Speaker 1: let me know that you listen to me. And that's
Speaker 1: what I got for you today. Thanks for listening.