WEBVTT - How The System Dies and How To Prepare | Lynette Zang 0:00:13.640 --> 0:00:16.400 Hey, everyone, welcome to another episode of the Market Disruptor Show, 0:00:16.400 --> 0:00:18.880 and today I am sitting down with Lynnette Zang. She 0:00:19.040 --> 0:00:23.080 is a very big requested guest one I've been excited 0:00:23.079 --> 0:00:24.880 to sit down with for a while. So we have 0:00:24.920 --> 0:00:26.600 a lot to dig into day. I'm excited to thank 0:00:26.600 --> 0:00:29.120 so much for joining us today's I'm really happy to 0:00:29.160 --> 0:00:33.479 be here, Mark, thank you for having me. Yeah. So, um, 0:00:33.520 --> 0:00:35.239 I'm a fan. I've been watching a bunch of your 0:00:35.280 --> 0:00:38.279 content and uh a lot of good stuff, which just 0:00:38.320 --> 0:00:40.880 brings up more questions. I'm excited to dig through those today. 0:00:41.360 --> 0:00:43.440 But not everybody is probably familiar with your work, so 0:00:43.479 --> 0:00:45.360 I'll just give us a little bit of background on 0:00:45.360 --> 0:00:47.360 on what you've been working on or what you're working 0:00:47.400 --> 0:00:52.159 on now. Okay, Well, I've been working on understanding the 0:00:52.200 --> 0:00:56.400 markets basically my entire life. But in the past, I've 0:00:56.440 --> 0:00:59.560 been a banker, I've been a stockbroker and as chief 0:00:59.600 --> 0:01:03.640 market analysts. I started studying actually before that, I started 0:01:03.640 --> 0:01:08.800 studying currencies in and so I'm really all about currency 0:01:08.920 --> 0:01:13.560 life cycles. I started seeing the repeatable patterns and I 0:01:13.600 --> 0:01:16.360 went to I t M in two thousand and two 0:01:16.640 --> 0:01:20.480 after my formulas, well not I mean, the general formulas 0:01:20.520 --> 0:01:23.440 confirm that we were at the end of this currency's 0:01:23.520 --> 0:01:27.679 life cycle. So you know, that's really what I focus on, 0:01:28.040 --> 0:01:32.000 is UM reset. You know, I've been watching the reset 0:01:32.000 --> 0:01:35.119 occur and the system died in two thousand and eight, 0:01:35.520 --> 0:01:37.880 so that's what I've been working on ever since then, 0:01:38.040 --> 0:01:42.960 really paying attention as we transition into a new really 0:01:43.160 --> 0:01:48.320 social economic and financial system. You know latest changes. Of course, 0:01:48.640 --> 0:01:52.680 they don't change behavior, they change the rules. So you 0:01:52.720 --> 0:01:54.800 know that's what I really focus on and what I'm 0:01:54.800 --> 0:01:57.320 focusing on right now as well, is all the rule 0:01:57.400 --> 0:02:00.800 changes that are happening. Yeah, that's eight and and uh 0:02:00.960 --> 0:02:02.600 for people watching my channel, they know that's what I 0:02:02.680 --> 0:02:04.760 kind of focused on too. Um. Yeah, I forgot to 0:02:04.840 --> 0:02:07.920 say that you are. You are the chief market announced 0:02:07.920 --> 0:02:09.400 at I t M, so I forgot to plug that, 0:02:09.480 --> 0:02:11.680 so make sure you go follower there will make sure 0:02:11.680 --> 0:02:13.600 to link that down below. But UM, you know, you 0:02:13.639 --> 0:02:16.520 said that you've been studying currencies much longer than me. Um, 0:02:16.639 --> 0:02:19.480 that's interesting, and you said you, um, you know, following 0:02:19.520 --> 0:02:22.400 these currency life cycles cycles is something that I'm pretty 0:02:22.400 --> 0:02:23.920 big in and I have some questions to ask you 0:02:23.960 --> 0:02:26.800 about that. But you talked about um, the day the 0:02:26.880 --> 0:02:30.720 currency died was two thousand and eight. Now, um, there's 0:02:30.760 --> 0:02:33.560 a lot of days that it died, right, Like, I mean, 0:02:35.680 --> 0:02:37.960 so yes, but but I mean like maybe maybe the 0:02:38.000 --> 0:02:41.160 dollar died in thirteen when the Federal Reserve was born, 0:02:41.240 --> 0:02:43.919 or maybe it died in nineteen four when the Breton 0:02:43.919 --> 0:02:46.040 Woods agreement, or maybe it died in seventy one when 0:02:46.120 --> 0:02:48.960 Nixon took it off the standard, or or oh wait, 0:02:49.000 --> 0:02:51.720 so why do you say? Oh eight, Hey, guys, let 0:02:51.720 --> 0:02:54.200 me just interrupt this interview real quick, just to plug 0:02:54.280 --> 0:02:57.440 the show sponsor, and that is Block five. Now. Block 0:02:57.480 --> 0:03:01.000 five is doing amazing things in the bitcoin and finance space. 0:03:01.120 --> 0:03:02.880 As a matter of fact, they've cracked some really big 0:03:02.919 --> 0:03:05.760 news by bringing on the x c f TC UM 0:03:05.840 --> 0:03:08.680 chair Chris gian Carlo Um. And they are one of 0:03:08.720 --> 0:03:12.760 the most transparent, most heavily regulated UM companies inside the 0:03:12.840 --> 0:03:15.320 United States, which gives me a lot of trust into 0:03:15.320 --> 0:03:17.480 what their services are. Now, I've recently did a video 0:03:17.600 --> 0:03:21.000 talking about how to retire off bitcoin, and you can 0:03:21.040 --> 0:03:24.440 do that by leveraging debt and interest against bitcoin. 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Now 0:03:54.560 --> 0:03:56.920 as that bitcoin price has risen, I'm able to borrow 0:03:56.920 --> 0:03:58.960 against it and go back and buy the same real 0:03:59.040 --> 0:04:01.680 estate or something similar, and I still own the bitcoin, 0:04:01.920 --> 0:04:04.880 and I also owned the new asset as well. Lots 0:04:04.880 --> 0:04:07.000 of ways you can do this UM and Block five 0:04:07.200 --> 0:04:09.960 is the company that I recommend. Down in the description, 0:04:10.000 --> 0:04:11.600 I have a link that you can click on. If 0:04:11.600 --> 0:04:13.000 you choose to use that link, you can earn up 0:04:13.000 --> 0:04:15.880 the two fifty dollars in bitcoin just for using that link. 0:04:16.000 --> 0:04:18.960 So check out block fine Now. Well, I say oh eight, 0:04:19.080 --> 0:04:22.960 because that's when they really ran out of tools and 0:04:23.000 --> 0:04:25.520 the only thing that they had left our interest rates 0:04:25.600 --> 0:04:31.000 and just creating more money, and and you're absolutely right, 0:04:31.120 --> 0:04:34.479 because it's been dying in slow deaths since they brought 0:04:34.520 --> 0:04:38.120 in the Federal Reserve and started to remove you know, gold, 0:04:38.720 --> 0:04:43.719 something real from backing our currency. But yeah, two thousand 0:04:43.760 --> 0:04:46.760 and eight is when they dropped interest rates to zero, 0:04:46.839 --> 0:04:49.479 which is their biggest tool, and they've not been and 0:04:49.520 --> 0:04:51.800 I'm talking about global central banks, so it's not just 0:04:51.960 --> 0:04:55.280 the FED, but it's globally. Uh, And they've not been 0:04:55.320 --> 0:04:58.160 able to raise them. Of course they can't. So really 0:04:58.200 --> 0:05:02.440 all they have left is printing money, de valuing the currency, 0:05:02.520 --> 0:05:05.000 and getting set up to take us into a new system. 0:05:05.080 --> 0:05:08.640 So that's why. And also Christine Lagard in two thousand 0:05:08.720 --> 0:05:11.600 and nine in a Bloomberg interview which has gone now, 0:05:12.120 --> 0:05:16.120 but use the word reset about twenty seven times in 0:05:16.200 --> 0:05:20.719 that half an hour interview, which you caught my attention. Yeah, 0:05:20.760 --> 0:05:23.760 that's interesting. You know, I think about it in terms 0:05:23.800 --> 0:05:27.159 of playing a board game, right, where like we're playing 0:05:27.200 --> 0:05:30.440 scrabble or whatever, and at some point you're out of moves, 0:05:31.200 --> 0:05:33.120 and when you're out of moves, what do you do? 0:05:33.279 --> 0:05:35.279 Like you reset the game kind of a thing, And 0:05:35.320 --> 0:05:37.240 so that kind of comes to mind when you talk 0:05:37.279 --> 0:05:40.240 about that, Um, you know, one thing, going back to 0:05:40.279 --> 0:05:42.520 that currency a little bit further. Uh, I kind of 0:05:42.600 --> 0:05:44.000 rattled off a couple of days, so you know, the 0:05:44.040 --> 0:05:47.839 data Federal Reserve was created, they started printing more currency obviously, UM, 0:05:47.920 --> 0:05:51.440 the Brenton Woods Agreement maybe I don't know, kind of 0:05:51.480 --> 0:05:53.760 brought it back into a peg at least. And then 0:05:53.760 --> 0:05:55.560 a lot of people talk about like that seventy one 0:05:55.600 --> 0:05:59.480 when Nixon took us off of that gold standard. Um. 0:05:59.520 --> 0:06:01.320 But you know, another way that I've been thinking about 0:06:01.320 --> 0:06:03.520 this just recently, really maybe in the last month or two, 0:06:03.800 --> 0:06:06.040 is that we never actually came off of a gold standard. 0:06:06.560 --> 0:06:10.200 What he did is removed the peg. Right, the dollars still, 0:06:10.240 --> 0:06:12.000 I mean, gold still priced in dollars at the end 0:06:12.040 --> 0:06:15.080 of the day. The market has just repriced gold, uh, 0:06:15.120 --> 0:06:17.600 and the dollar exchange. Right. Maybe he just removed the peg. 0:06:17.680 --> 0:06:19.560 We never got off the gold standards. Is that a 0:06:19.560 --> 0:06:22.719 way to look at it? Um. I wouldn't really look 0:06:22.760 --> 0:06:25.680 at it quite like that, because while you are right, 0:06:25.839 --> 0:06:28.960 and I mean and gold is is valued in terms 0:06:28.960 --> 0:06:33.320 of any fiat currency anywhere in the world, what created 0:06:33.320 --> 0:06:36.560 the gold standard were the restrictions that having gold backing 0:06:36.600 --> 0:06:42.360 the currency created, So it really required fiscal responsibility. In 0:06:42.520 --> 0:06:46.640 seventy one, Nixon handed what what really what that really 0:06:46.720 --> 0:06:49.920 happened in in seventy one was that Nixon handed over 0:06:50.200 --> 0:06:54.320 full control of inflation to the central banks to the 0:06:54.400 --> 0:06:57.840 private banks. And what do banks know? They know debt 0:06:57.880 --> 0:07:02.000 and they know interest. But um, so you could say 0:07:02.000 --> 0:07:07.120 that it really it's been dying since nineteen thirteen. But no, 0:07:07.279 --> 0:07:10.600 we're not still on the gold standard as a government 0:07:10.960 --> 0:07:15.360 or as a country or around the world. But I 0:07:15.640 --> 0:07:24.200 personally am absolutely on the gold and silver standard. Yeah standard, 0:07:24.640 --> 0:07:26.320 you run your account on those, Yeah, I guess it's 0:07:26.360 --> 0:07:27.880 just like a little bit of a I love to 0:07:27.880 --> 0:07:30.360 look at things from different angles and different perspectives, and 0:07:30.400 --> 0:07:33.200 sometimes it gives me, you know, more clarity, um, you know. 0:07:33.760 --> 0:07:36.080 To to your point though, like you said, well, when 0:07:36.080 --> 0:07:38.040 we got off the gold stender, it took away the restraint, 0:07:38.280 --> 0:07:40.560 but like I could also say, we never had restraint. 0:07:40.720 --> 0:07:43.920 I made a video recently and I was refuting Ray 0:07:44.000 --> 0:07:47.200 Dalio's point. Um. He said that the government would make 0:07:47.240 --> 0:07:52.080 bitcoin illegal because they because the same reason they made 0:07:52.080 --> 0:07:54.560 gold illegal, which was they didn't want a competing form 0:07:54.600 --> 0:07:57.800 of money. That's what he said, And I refuted that, 0:07:57.840 --> 0:08:00.080 and I said, well, I don't think his understanding of 0:08:00.120 --> 0:08:04.440 the events in history are correct, because in thirteen the 0:08:04.480 --> 0:08:08.040 Federal Reserve was created, and they printed way too many dollars, 0:08:08.600 --> 0:08:12.280 and by nine thirty three, so back to that restraint, 0:08:12.560 --> 0:08:15.760 they didn't have restraint. They printed way too many dollars. 0:08:16.240 --> 0:08:19.560 And so by nineteen thirty three the government owed gold. 0:08:19.760 --> 0:08:23.640 They owed gold to creditors, and so they didn't owe dollars, 0:08:24.080 --> 0:08:26.360 they owed gold, and so they took the gold to 0:08:26.400 --> 0:08:30.280 pay the creditors. And it wasn't, at least in my understanding, 0:08:30.320 --> 0:08:31.800 it wasn't that they didn't want to compete in for 0:08:31.880 --> 0:08:33.640 the money. They owed the gold and they needed the gold, 0:08:34.000 --> 0:08:36.760 um and so. And then then of course they will 0:08:36.800 --> 0:08:38.320 go ahead and talk about it. Can I kind of 0:08:38.400 --> 0:08:42.600 jump in there, because you know, really what happened during 0:08:42.640 --> 0:08:44.840 this I love that period of time, and I feel 0:08:44.880 --> 0:08:47.479 like we're living through that again with the Roaring twenties. 0:08:48.000 --> 0:08:51.240 But when we were on the gold standard, and you're right, 0:08:51.280 --> 0:08:54.560 they owed the gold, so if an individual did not 0:08:54.800 --> 0:08:57.640 like what the government was doing, then they had the 0:08:57.679 --> 0:09:00.600 ability to walk into a bank and convert their dollars 0:09:00.600 --> 0:09:03.839 into gold, hold the gold out of the system and 0:09:03.920 --> 0:09:10.200 create greater restrictions. So um a competing currency or just 0:09:10.320 --> 0:09:15.000 taking away the public's power, because that was a public 0:09:15.040 --> 0:09:17.280 power that if you had enough people that did it, 0:09:17.800 --> 0:09:20.719 you know, then you have a run on the banks, etcetera. 0:09:21.240 --> 0:09:25.440 So they did own the gold. You're absolutely right about that, 0:09:25.720 --> 0:09:29.560 but it was too more to the citizens. In seventy 0:09:29.600 --> 0:09:33.120 one it was to the other government's global governments. But 0:09:33.800 --> 0:09:37.520 thirty three they had to take that control away from 0:09:37.559 --> 0:09:40.120 the citizens. So you think it was more about taking 0:09:40.160 --> 0:09:42.360 away control than it was paying the creditors because they 0:09:42.400 --> 0:09:45.720 didn't want to default on the creditors. Okay, interesting. I 0:09:45.800 --> 0:09:50.199 value your opinions, and I want to say I love too. 0:09:50.480 --> 0:09:53.720 I love what you said earlier about looking at things 0:09:53.800 --> 0:09:56.600 from a different point of view, because when you do that, 0:09:56.920 --> 0:10:01.080 it is amazing what you see. So I definitely love 0:10:01.120 --> 0:10:05.720 to debate because it opens everybody's eyes. Years ago I 0:10:05.760 --> 0:10:08.000 worked with I had a company I was running, and 0:10:08.000 --> 0:10:09.960 I brought in like this fortune one hundred consultant, one 0:10:10.000 --> 0:10:11.880 of the smartest guys ever, and he would look at 0:10:11.880 --> 0:10:13.760 a problem and he taught me this, and he's like, 0:10:14.440 --> 0:10:16.800 you can't do that, Like there's nothing in the world 0:10:16.840 --> 0:10:18.560 like if I had a magic wand like I couldn't 0:10:18.559 --> 0:10:20.800 create a solution, Well, of course you could, okay, so 0:10:20.800 --> 0:10:22.760 then we can write and it just opens up your 0:10:22.800 --> 0:10:25.200 mind to things you wouldn't think so anyway. Um So 0:10:25.240 --> 0:10:27.760 then if I was chasing that conclusion, so let's see 0:10:27.760 --> 0:10:29.520 where this goes. So then I was chasing that conclusion 0:10:29.559 --> 0:10:32.839 to like why the government wouldn't make gold illegal today 0:10:32.960 --> 0:10:36.520 or bitcoin illegal? And and well either right and uh, 0:10:36.559 --> 0:10:38.880 and I was saying, well, the differences. They don't owe 0:10:39.000 --> 0:10:41.520 anyone gold today, they don't own any one bitcoin today. 0:10:41.679 --> 0:10:43.959 What they owe people are dollars, and they could just 0:10:44.000 --> 0:10:46.120 print more of those. Um So that was kind of 0:10:46.160 --> 0:10:50.680 my conclusion. I guess what's your thought there, Well, you know, 0:10:51.200 --> 0:10:54.800 both gold and the new digital currencies. I think it's 0:10:54.840 --> 0:10:57.200 going to be really interesting to see what happens when 0:10:57.200 --> 0:10:59.920 the central banks really come out with their digital currency. 0:11:00.559 --> 0:11:03.800 Because when you look at the Bank for International Settlements 0:11:03.920 --> 0:11:08.160 money Flower, there is a small space on there for 0:11:08.280 --> 0:11:14.960 private cryptocurrencies, but there's that actually larger space for commodity money, 0:11:15.000 --> 0:11:18.080 so gold and silver and then all the rest is 0:11:18.160 --> 0:11:23.400 under the central bank's control. But so I think that 0:11:23.440 --> 0:11:28.199 they are going to you know, allow a certain amount 0:11:28.280 --> 0:11:30.440 of it, but I think it will be very controlled 0:11:30.720 --> 0:11:34.280 and heavily taxed. And um, I don't think they're going 0:11:34.320 --> 0:11:38.679 to allow any competition to their money monopoly. But it 0:11:38.720 --> 0:11:41.760 will be interesting to say the battle has begun and 0:11:41.800 --> 0:11:44.280 it will be very interesting too. So I don't want 0:11:44.280 --> 0:11:45.560 to I don't want to dig in too much on 0:11:45.640 --> 0:11:47.640 that right there, because that's gonna be like the end game, 0:11:47.679 --> 0:11:49.160 which we're gonna get to at the end here. So 0:11:49.240 --> 0:11:51.040 let's kind of build this story up a little bit. 0:11:51.080 --> 0:11:54.200 So the currency died No. Eight. The FED has two tools, 0:11:54.320 --> 0:11:57.320 interest rates and money creation. Interest rates are basically gone, 0:11:57.360 --> 0:12:00.880 they're at zero, their negative whatever, um. But money creations 0:12:00.880 --> 0:12:03.079 almost kind of gone to we're kind of maxed out 0:12:03.240 --> 0:12:06.000 on how much money we can create. And really I've 0:12:06.000 --> 0:12:08.120 been talking about like the Feds really, you know, kind 0:12:08.120 --> 0:12:10.880 of stuck where like, um, if they keep printing the 0:12:10.880 --> 0:12:15.000 currencies dies, um if if they pull back like the 0:12:15.040 --> 0:12:16.800 bond they have to save the bonds with the currency. 0:12:16.880 --> 0:12:18.840 Right now, like it seems like one or the other. Right, 0:12:18.880 --> 0:12:20.400 they're trying to keep bond rates from going up too 0:12:20.480 --> 0:12:22.520 high so they could do the yield curve control. But 0:12:22.600 --> 0:12:24.800 by printing more currency, they're going to ruin the currency, 0:12:25.120 --> 0:12:27.520 so like do they streak like? And so they're kind 0:12:27.520 --> 0:12:31.280 of stuck here. Um, but I heard you say something 0:12:31.320 --> 0:12:33.160 in an interview that really stuck with me, and I 0:12:33.200 --> 0:12:35.400 want to get your opinion on this. So it seems 0:12:35.440 --> 0:12:38.520 like we've heard this since oh eight, kicking the can 0:12:38.640 --> 0:12:41.760 down the road, right, instead of doing the hard thing, 0:12:41.840 --> 0:12:44.440 peeling the band aid off or making the hard decisions, today, 0:12:44.480 --> 0:12:46.400 they keep kicking the can down the road. But you 0:12:46.440 --> 0:12:50.120 said at one point that maybe they're not trying to 0:12:50.240 --> 0:12:53.720 save the system, maybe they're just trying to keep the 0:12:53.800 --> 0:12:57.280 system alive until they're ready to go in a new system. 0:12:57.440 --> 0:12:59.839 Tell tell us about that. Well, first of all, I 0:13:00.040 --> 0:13:05.320 just got goose bumps, so it's absolutely accurate. But look, 0:13:05.440 --> 0:13:10.120 the very foundation of the Fiat system, the government based 0:13:10.160 --> 0:13:15.040 money system, is inflation, which guarantees loss of value over time. 0:13:15.320 --> 0:13:17.720 Even though nominally, you know, you had a twenty dollar 0:13:17.800 --> 0:13:20.720 built ten years ago, you got a twenty dollar built today, 0:13:20.720 --> 0:13:24.200 it's still a twenty dollar built, so nominally exact, but 0:13:24.880 --> 0:13:28.560 what it buys you. So, I mean, these guys are smart, 0:13:29.000 --> 0:13:33.839 they know the system is dying, and so yeah, I 0:13:33.840 --> 0:13:37.520 I definitely think that kicking the can has been going 0:13:37.600 --> 0:13:42.880 on since that's not actually something that's new. But I 0:13:42.920 --> 0:13:45.160 think they know that we're at the end game because 0:13:45.400 --> 0:13:51.920 every currency, actually everything has a life cycle. I'm definitely 0:13:51.960 --> 0:13:54.680 at a different point at sixty six than I am 0:13:54.760 --> 0:13:58.760 at my granddaughter at six years old, and currencies are 0:13:58.840 --> 0:14:02.760 no different. And really, you know, if you if you 0:14:02.880 --> 0:14:07.480 look at the monetary velocity chart, what you see is 0:14:07.520 --> 0:14:10.880 that in the M two, so a little bit broader 0:14:10.880 --> 0:14:15.080 base of money, it peaked in and so then they 0:14:15.200 --> 0:14:18.120 did financial engineering and they jury rigged this, and they 0:14:18.200 --> 0:14:21.920 jury rigged that to create more money in the system, 0:14:21.960 --> 0:14:26.160 but it still did not increase the speed at which 0:14:26.200 --> 0:14:31.440 money changes hands. And you know, really good point. All 0:14:31.480 --> 0:14:35.200 they have left is money printing. And you know, I've 0:14:35.200 --> 0:14:37.479 been I pay a lot of attention to the monetary 0:14:37.520 --> 0:14:42.720 velocity chart, and what I'm seeing is that it's declining again. 0:14:42.840 --> 0:14:44.640 We got a little teeny bump up. I said, we 0:14:44.680 --> 0:14:48.480 have to see, this has to be pervasive, and it's not. 0:14:48.720 --> 0:14:51.840 It has not been pervasive. It's the most current graph. 0:14:52.160 --> 0:14:55.840 I was just looking at it earlier. Today it's declining again. 0:14:56.480 --> 0:15:01.120 So all of the rule changes. Um, you changing reg D, 0:15:01.440 --> 0:15:05.760 which they did in again to create that velocity by 0:15:05.800 --> 0:15:08.600 allowing banks you make a deposit into your account, and 0:15:08.680 --> 0:15:11.320 I think this is critical for people really to understand. 0:15:11.760 --> 0:15:14.400 You make a deposit into your account at a bank, 0:15:14.760 --> 0:15:18.720 they sweep those funds into sub accounts for the bank. 0:15:19.200 --> 0:15:22.880 They can then use that equity to borrow for their 0:15:22.920 --> 0:15:25.720 benefit and do anything they want to with it. But 0:15:26.960 --> 0:15:30.400 really importantly that means they don't have to hold as 0:15:30.480 --> 0:15:36.400 much in reserve. Okay. Now, currently there is another regime 0:15:36.440 --> 0:15:40.760 shift that just went to final on I think February 0:15:40.840 --> 0:15:43.520 one of this year, but they put it in place 0:15:43.600 --> 0:15:47.480 in March of last year. A change in reg D 0:15:48.240 --> 0:15:54.720 where savings deposits and money markets, which are considered sticky 0:15:54.880 --> 0:15:56.720 in other words, you put the money in there and 0:15:56.720 --> 0:15:58.560 you're going to keep it in there for a long time, 0:15:59.200 --> 0:16:05.320 have been shift did into the same area as checkable deposits, 0:16:05.360 --> 0:16:10.720 so you're right to check. So that again reduces the 0:16:10.760 --> 0:16:15.360 bank's requirement to hold reserves. But what does that really 0:16:15.520 --> 0:16:18.560 do to the money that you are holding in the 0:16:18.600 --> 0:16:25.080 bank thinking that it's safe. It makes it less safe. 0:16:25.760 --> 0:16:29.440 It's more leveraged out for sure. Yeah, especially with everything 0:16:29.480 --> 0:16:33.880 that's happening with the banks with derivatives, you know, and 0:16:33.920 --> 0:16:36.160 the and the tools that they've used to hide the 0:16:36.280 --> 0:16:41.040 value at risk, but your deposits aren't safe. Yeah, yeah, 0:16:41.120 --> 0:16:46.080 that's interesting. Um, it seems like this whole system, I mean, 0:16:46.360 --> 0:16:49.360 we're built, as you said, on an inflationary system. It's 0:16:49.360 --> 0:16:52.520 all artificially. It's a debt based system. And so it 0:16:52.680 --> 0:16:54.760 seems like I like to I always like to take 0:16:54.800 --> 0:16:57.120 these very complex subjects and like try to break them 0:16:57.160 --> 0:17:00.360 down super simple, like first principles. I feel like if 0:17:00.360 --> 0:17:02.000 I can understand them there, then I can understand at 0:17:02.000 --> 0:17:05.560 a higher level. And I look at things like natural law, 0:17:06.040 --> 0:17:09.200 like gravity. I don't care, you know, as I get 0:17:09.240 --> 0:17:11.879 more money and more technology, I can defy gravity a 0:17:11.880 --> 0:17:14.320 little bit, but I'm always going to have to, um, 0:17:14.359 --> 0:17:16.720 you know, be bound by that law. And we have 0:17:16.760 --> 0:17:20.160 another law that's like um sewing and reaping. We must 0:17:20.160 --> 0:17:24.639 produce before we consume things like that, and so like um, 0:17:24.680 --> 0:17:28.040 another natural law I believe is that human ingenuity always 0:17:28.119 --> 0:17:31.680 leads to deflation. We create a room bus so it 0:17:31.760 --> 0:17:33.400 sweeps the floor. I don't have to sweep it. Now 0:17:34.119 --> 0:17:35.600 I wanted a robot so I don't have to clean 0:17:35.600 --> 0:17:37.760 in the house, like you know what I mean. We 0:17:38.119 --> 0:17:40.600 I used to buy DVD s and now I stream 0:17:40.600 --> 0:17:42.840 all my music for my my movies from five bucks 0:17:42.880 --> 0:17:45.080 a month. So it's like natural deflation. So that's like 0:17:45.240 --> 0:17:48.359 natural law is like deflationary, but like we live in 0:17:48.359 --> 0:17:53.080 an inflationary monetary system. That's like fighting against natural laws. 0:17:53.119 --> 0:17:56.080 And it almost seems like the world or I should say, 0:17:56.080 --> 0:17:58.360 the markets know this, and they're always trying to de leverage, 0:17:58.560 --> 0:18:03.000 and then the FED keeps trying to pump it back up. Well, 0:18:03.040 --> 0:18:06.480 I would say that that's really, um, really a good 0:18:06.520 --> 0:18:11.359 and accurate assessment, because inflation and deflation. You know, people 0:18:11.440 --> 0:18:14.200 think they're two different things, but they're really not. They're 0:18:14.240 --> 0:18:16.679 just the flip side of the same coin. And the 0:18:16.760 --> 0:18:21.680 only way that you can fight deflation is with inflation. 0:18:22.320 --> 0:18:24.160 And at the end of the day, when you look 0:18:24.160 --> 0:18:27.119 at what they're doing, whether we go to negative rates, 0:18:27.560 --> 0:18:32.280 which would really be hyper deflationary, right, you're gonna go 0:18:32.320 --> 0:18:35.480 out and spend if it's visible to you that the 0:18:35.560 --> 0:18:38.399 balance in your bank account is going down and you 0:18:38.400 --> 0:18:40.840 know you're not spending any money just because of the 0:18:40.880 --> 0:18:43.880 negative rates, So that will encourage you to go out 0:18:43.920 --> 0:18:46.879 and buy anything that you think is going to hold 0:18:46.920 --> 0:18:51.159 its value better. And the same thing happens in hyperinflation, 0:18:51.600 --> 0:18:57.280 where you see the value declining because the price in 0:18:57.560 --> 0:19:01.840 nominal terms is going up so rapidly. So you're gonna 0:19:01.880 --> 0:19:05.919 push again that consumption forward. So you know when I 0:19:05.960 --> 0:19:08.280 get that question, I get that question a lot. Well, 0:19:08.280 --> 0:19:13.280 what about deflation versus it's really at the end of 0:19:13.320 --> 0:19:15.960 the day, it's going to both of them are going 0:19:16.000 --> 0:19:20.320 to push the consumers to consume, to just attempt to 0:19:20.520 --> 0:19:24.399 maintain value because the dollars don't or the euros, or 0:19:24.440 --> 0:19:28.120 the end or any government money by design, it does not, 0:19:29.119 --> 0:19:33.919 but it does enable that massive amount of income and 0:19:34.040 --> 0:19:38.639 wealth and equality, which is something else that has become 0:19:38.960 --> 0:19:43.440 very very visible to most people. And I don't know, 0:19:43.640 --> 0:19:47.920 maybe create a revolution, maybe there's a revolution that's already started. 0:19:48.520 --> 0:19:50.600 You know, I don't think they understood what they were 0:19:50.600 --> 0:19:55.040 fighting for and occupy Wall Street after acial crisis that 0:19:55.080 --> 0:19:57.680 happened in two thousand and seven and eight. They don't 0:19:57.720 --> 0:20:00.600 understand it. Yeah, they don't know. They didn't understand it, 0:20:00.640 --> 0:20:03.800 so they didn't really have a foundation. I don't know 0:20:03.840 --> 0:20:07.560 that people really fully understand it now. But I think 0:20:08.680 --> 0:20:12.320 I think more do going back to your bitcoin. Yeah. 0:20:12.480 --> 0:20:14.399 Well A good point of this is I just I 0:20:14.440 --> 0:20:16.399 just did a video on YouTube, I think yesterday, and 0:20:16.440 --> 0:20:19.720 I talked about UM. I was talking about how Wall 0:20:19.760 --> 0:20:23.280 Street and institutions have started taking over rental real estate 0:20:23.359 --> 0:20:25.800 across the company. And then I turned it into a 0:20:25.840 --> 0:20:29.680 Twitter thread, and um, I got all these comments and 0:20:29.920 --> 0:20:32.200 some people were like, we need to make this illegal. 0:20:32.240 --> 0:20:34.679 We need to make it where institutions can't buy no, no, 0:20:34.760 --> 0:20:36.800 investors should build to buy single family homes and all 0:20:36.840 --> 0:20:39.080 those things. And I'm like, look, that's not the problem. 0:20:39.760 --> 0:20:42.240 The problem is there's a money printer, and the money 0:20:42.280 --> 0:20:44.200 printer is giving it to the banks and they're getting 0:20:44.240 --> 0:20:46.960 free money and buying this up. Shut the money printer off. 0:20:47.240 --> 0:20:50.200 And so I think that's exactly what we're saying here, 0:20:50.240 --> 0:20:53.240 Like people see the problem like, wow, the American dream, 0:20:53.280 --> 0:20:55.119 it's the great American real estate heights. That's what I 0:20:55.160 --> 0:20:58.280 called it. Um. But I watched that video. It was excellent, 0:20:58.320 --> 0:21:00.840 by the way, Okay, thank you, UM. But but it's 0:21:00.920 --> 0:21:06.400 it's not about making new laws turn the money printer off, right, right, 0:21:07.040 --> 0:21:09.000 you know That's what I said, that they don't change 0:21:09.080 --> 0:21:15.720 behavior they just change the rules that make that okay 0:21:15.960 --> 0:21:21.400 legal hidden what have you. The financial engineering. Yeah, the problem. 0:21:21.520 --> 0:21:25.359 The problem are the people at the top that created 0:21:25.400 --> 0:21:30.720 this system that is specifically designed to have just a few. 0:21:31.119 --> 0:21:33.000 I mean, it's kind of like we're going back to 0:21:33.040 --> 0:21:35.480 the feudal system. Just have a few at the top 0:21:35.520 --> 0:21:38.879 that own everything. Hey, you will own you will own nothing, 0:21:38.960 --> 0:21:43.160 and you will be happy. Yeah, so happy, so happy, 0:21:43.480 --> 0:21:46.280 and gets who gets to dictate everything? But yes, and 0:21:46.600 --> 0:21:50.240 we saw that right after two and eight. Yeah, and 0:21:50.240 --> 0:21:56.640 that's some corporations, Blackstone Estate, and that's exactly that's exactly right. 0:21:56.640 --> 0:21:59.080 It goes back to a feudal system where the surf 0:21:59.240 --> 0:22:01.959 just rent the l end right from from those. So 0:22:02.160 --> 0:22:04.000 that's that's that's a that's a good segue. So let's 0:22:04.040 --> 0:22:07.560 go ahead and transition into that. Obviously, the own nothing, 0:22:07.640 --> 0:22:10.920 be happy, great, reset, currency, reset, you know, whatever we 0:22:10.960 --> 0:22:16.119 want to call those things. Um, it seems that the NGOs, 0:22:16.240 --> 0:22:19.280