WEBVTT - The Mark Moss Show Nov 25, 2022 0:00:00.040 --> 0:00:02.320 Hello, and welcome to another episode of the Mark Mos Show, 0:00:02.360 --> 0:00:05.200 where we talk about the decentralized revolution, the way the 0:00:05.200 --> 0:00:07.360 world is changing, and of course we look at it 0:00:07.360 --> 0:00:11.399 through the lens of politics, finance, and technology, and boy 0:00:11.440 --> 0:00:13.000 has it been a busy week. Now, I try to 0:00:13.039 --> 0:00:15.240 bring to you, you know, some educations you can really 0:00:15.320 --> 0:00:17.760 understand these things that are going on and look at 0:00:17.760 --> 0:00:20.880 them from different perspectives, some of the latest breaking news 0:00:20.880 --> 0:00:22.400 to keep you up to data on what's going on, 0:00:22.600 --> 0:00:25.080 and of course some interesting guests so you can hear 0:00:25.079 --> 0:00:28.280 different perspectives than just mine, although you know mine is 0:00:28.280 --> 0:00:30.280 the only perspective you need, but you know, bring some 0:00:30.320 --> 0:00:33.240 other perspectives for you here and there. I want to 0:00:33.280 --> 0:00:36.000 break down some of the latest breaking news that's been 0:00:36.040 --> 0:00:38.280 going on this week, because, like I said, there is 0:00:38.320 --> 0:00:41.600 a lot going on in this world and when we 0:00:41.640 --> 0:00:43.279 look at it, like I said, I'd like to look 0:00:43.280 --> 0:00:45.959 at the intersection of politics, finance and technology where those 0:00:45.960 --> 0:00:49.320 three come together, and we can see that there is 0:00:49.800 --> 0:00:51.720 a lot of things coming together. As a matter of fact, 0:00:51.760 --> 0:00:56.480 we can see um this week, we are getting closer 0:00:56.680 --> 0:01:00.840 to the c B d C. As we've been talking 0:01:00.880 --> 0:01:02.640 about for a long time of course, I'm talking about 0:01:02.720 --> 0:01:08.360 central bank digital currencies, which they're not really what they 0:01:08.400 --> 0:01:12.480 seem like at first glance. Um they are. You know, 0:01:12.560 --> 0:01:15.679 we already do digital transactions right about of all transactions 0:01:15.720 --> 0:01:18.679 are digital. But central bank digital currencies are much much 0:01:18.880 --> 0:01:22.759 different form for any number of reasons, one of which 0:01:22.840 --> 0:01:26.559 is of course that it's programmable money, So not only 0:01:26.760 --> 0:01:28.920 can they see what you do or freezerr bank counts, 0:01:28.959 --> 0:01:31.720 they can actually program it in advance what you're able 0:01:31.720 --> 0:01:33.959 to do with your money. So you eat too much 0:01:34.000 --> 0:01:35.720 red meat, you can't buy red meat. You don't save 0:01:35.800 --> 0:01:38.600 enough money will pay you good interest rates. You save 0:01:38.680 --> 0:01:43.280 too much money will hit you with a negative interest rate. Um, you, 0:01:43.440 --> 0:01:45.320 nothing good happens after midnight, so you can't spend your 0:01:45.319 --> 0:01:47.320 money after midnight. You know all those types of things. 0:01:47.560 --> 0:01:49.880 Oh you said mean things on the internet will hit 0:01:49.960 --> 0:01:51.800 you know, well, you can't spend your money either, things 0:01:51.840 --> 0:01:54.560 like that. And around the world we see that we're 0:01:54.560 --> 0:01:58.400 getting increasingly closer to central bank digital currencies, and in 0:01:58.520 --> 0:02:00.920 the United States is a very key issue for any 0:02:01.000 --> 0:02:05.000 number of reasons, one of which is that central banks, 0:02:05.040 --> 0:02:08.639 the Federal Reserve of the United States doesn't actually create money. 0:02:08.760 --> 0:02:10.959 The Federal Reserve when we talked about all the time 0:02:11.000 --> 0:02:13.240 like printing money, and you know, it's it's it's a 0:02:13.240 --> 0:02:15.519 good way to talk about it, but it's not really true. 0:02:15.840 --> 0:02:18.160 And so central banks create reserves and they give them 0:02:18.160 --> 0:02:22.040 to commercial banks think JP, Morgan City Bank, Bank of America, Wells, Fargo, 0:02:22.120 --> 0:02:24.840 et cetera. And so they give these reserves to the banks, 0:02:24.840 --> 0:02:27.679 and the banks create money. So actually the banks, the 0:02:27.680 --> 0:02:29.320 commercial banks, are the ones that create the money, and 0:02:29.320 --> 0:02:31.320 they do that through loans. So when they give you 0:02:31.360 --> 0:02:33.520 a loan for a house, of car, boat, whatever, that 0:02:33.600 --> 0:02:37.640 money is created into existence. And the other thing is 0:02:37.680 --> 0:02:42.960 that only the government has the ability to make money, 0:02:43.840 --> 0:02:45.880 not the federal reserve. Remember the Federal Reserve doesn't do it. 0:02:45.880 --> 0:02:48.200 The Federal Reserve gives it to the banks. And so 0:02:48.320 --> 0:02:51.799 if we had a central bank digital currency, and that 0:02:51.840 --> 0:02:56.519 would mean the central bank would be the one issuing money, 0:02:56.560 --> 0:02:58.640 but that's not the way our system works, and so 0:02:58.680 --> 0:03:02.080 there's all types of legal problems around this. Of course, 0:03:02.120 --> 0:03:04.560 you might understand that a lot of people don't like it. 0:03:04.639 --> 0:03:06.600 I don't like it. You certainly shouldn't like it. So 0:03:06.600 --> 0:03:09.760 we should definitely push back and fight against that There's 0:03:09.880 --> 0:03:13.040 also lots of lawmakers who don't like it because again, 0:03:13.080 --> 0:03:15.320 the government is the one supposed to have the rules 0:03:15.360 --> 0:03:17.400 over creating money, not the central bank, so it takes 0:03:17.440 --> 0:03:20.519 power away from the government. Also, the commercial banks don't 0:03:20.520 --> 0:03:23.160 like it because the commercial banks are the ones that 0:03:23.160 --> 0:03:26.040 are supposed to create the money, not the Federal Reserve. So, 0:03:26.080 --> 0:03:28.280 as you can see, this is a big change the 0:03:28.280 --> 0:03:31.280 way things work in the United States. Now. China has 0:03:31.280 --> 0:03:33.400 already rolled out their central bank digital currency, which of 0:03:33.400 --> 0:03:38.280 course makes sense because it's communist China, right. President ge 0:03:38.520 --> 0:03:41.080 basically runs the country by iron fist. But this is 0:03:41.080 --> 0:03:46.760 America supposed to work a different way. However, doesn't seem 0:03:46.840 --> 0:03:48.640 like it's going to be stopping what they're trying to do. 0:03:48.680 --> 0:03:50.200 As a matter of fact, we can see this week 0:03:50.240 --> 0:03:56.320 it says banking heavyweights commence wholesale digital dollar pilot with 0:03:56.400 --> 0:03:58.680 the New York Fed. So the way the Federals works 0:03:58.760 --> 0:04:02.080 is it's a it's a group of banks. The New 0:04:02.160 --> 0:04:05.800 York Fed is arguably the most important bank of all 0:04:05.840 --> 0:04:08.720 the banks in the FOTEOL Reserve, and it says here 0:04:08.720 --> 0:04:11.280 that a group of major major banks have commenced a 0:04:11.320 --> 0:04:14.160 pilot project alongside the FOTOL Reserve Bank of New York 0:04:14.520 --> 0:04:20.200 to test the feasibility of using tokens representing digital dollars 0:04:20.200 --> 0:04:25.320 to improve how central bank money is settled between institutions. Now, 0:04:25.760 --> 0:04:27.600 you know, there's such a thing as you know, the 0:04:27.800 --> 0:04:32.479 um slippery slope, right, I get the boiling pot that 0:04:32.720 --> 0:04:35.200 the frog that boiled in the pot or whatever where like, 0:04:35.360 --> 0:04:37.640 you know, let's just ease into it a little bit, 0:04:37.800 --> 0:04:39.719 and you know, let's just a little bit of a test, 0:04:39.839 --> 0:04:42.320 and nobody's really gonna object to this. And then before 0:04:42.360 --> 0:04:44.840 you know it, like you're a frog and you're literally 0:04:44.839 --> 0:04:47.000 in a boiling pot of water and you're dying, right, 0:04:47.279 --> 0:04:50.880 and so that's kind of what this is. Let's just 0:04:51.120 --> 0:04:53.880 test it right now. And right now it's just gonna 0:04:53.920 --> 0:04:57.040 be between banks. So it's not for the public. It doesn't, 0:04:57.040 --> 0:04:59.960 it doesn't, it doesn't really um, you know, it doesn't 0:05:00.040 --> 0:05:02.040 they violate any of those issues like I talked about, 0:05:02.040 --> 0:05:03.760 where you know, the government can make the money and 0:05:03.760 --> 0:05:07.400 it doesn't doesn't really take away the commercial banks ability 0:05:07.400 --> 0:05:08.760 to create money, because this is just for the Federal 0:05:08.760 --> 0:05:12.800 Reserve and this is between banks. Let's start there. Let's 0:05:12.800 --> 0:05:15.320 get them using that let's test it out, Let's see 0:05:15.320 --> 0:05:17.320 how it works. Let's let's get the let's get the 0:05:17.320 --> 0:05:20.960 public used to this idea. Let's warm them up in 0:05:21.000 --> 0:05:23.159 the pot. That's what it seems like it's going on. 0:05:23.200 --> 0:05:25.880 So we can see your city Bank, HSBC B and 0:05:26.000 --> 0:05:29.040 y Melon and Wells Fargo were among the banks taking part. 0:05:30.120 --> 0:05:34.040 But here's the crazy part. Along with so the banks City, 0:05:34.160 --> 0:05:38.039 HSBC B and y Melon and Wells Fargo, along with 0:05:38.240 --> 0:05:43.520 payments Giant master Card. But that's interesting because MasterCard is 0:05:43.560 --> 0:05:47.920 not a bank. MasterCard doesn't send money back and forth 0:05:47.960 --> 0:05:52.600 between banks, so that's pretty interesting. Um. It says here 0:05:52.600 --> 0:05:55.680 that it's a twelve week proof of concept pilot that 0:05:55.720 --> 0:05:59.200 will explore the use of an interoperable platform known as 0:05:59.240 --> 0:06:03.200 the Regulated Ability Network or r l N, where banks 0:06:03.200 --> 0:06:05.960 can issue tokens which are settled through simulated Central Bank 0:06:06.040 --> 0:06:09.920 money on a distributed ledger. The project will be conducted 0:06:09.960 --> 0:06:13.560 in a test environment using only simulated data. So it's 0:06:13.560 --> 0:06:16.600 a twelve week project and right now it's just a test, 0:06:17.040 --> 0:06:20.960 it's just simulated data. But why would they be testing 0:06:21.000 --> 0:06:24.920 it if they didn't want to roll it out? I mean, 0:06:24.960 --> 0:06:27.960 there was just no reason to create it or test 0:06:28.000 --> 0:06:30.760 it if you didn't want to use it. So, look, 0:06:30.800 --> 0:06:33.200 we know where this is going, right, We know this 0:06:33.279 --> 0:06:34.920 was going and says well, the majority of central banks 0:06:34.920 --> 0:06:37.920 are exploring the development of retail central bank digital currencies 0:06:38.000 --> 0:06:41.760 or CBDCs, forms of digital money for use by the public. 0:06:42.680 --> 0:06:45.360 Many are also engaged in pilots around wholesale CBDCs fee 0:06:45.480 --> 0:06:48.280 money in token form for exchange among financial institutions to 0:06:48.320 --> 0:06:52.560 improve existing clearing and settlement processes. So now we're just 0:06:52.800 --> 0:06:56.640 testing it and we'll see where it goes. But we 0:06:56.920 --> 0:06:59.560 know where that goes, and you need to be aware 0:06:59.640 --> 0:07:03.760 of the US. Now, in bigger news, we've been talking 0:07:03.839 --> 0:07:06.919 about the collapse of f t X melting down and 0:07:06.960 --> 0:07:10.920 it looks like it's have massive contagion. We see coin Base, 0:07:11.000 --> 0:07:14.560 which is a publicly traded company a cryptocurrency exchange, is 0:07:14.600 --> 0:07:16.760 taking a massive hit. Looks like Wall Street is going 0:07:16.840 --> 0:07:21.640 sour on it. The stock is down about forty below 0:07:21.680 --> 0:07:25.080 it's capitalized price, which is looking pretty far at the 0:07:25.080 --> 0:07:27.240 bond so if you look at the debt market, we 0:07:27.320 --> 0:07:29.240 can see that the price of coin based three point 0:07:29.240 --> 0:07:34.040 three seven five bond due is crashing down. And part 0:07:34.040 --> 0:07:35.400 of that reason is because if we look at the 0:07:35.440 --> 0:07:37.320 forward guidance of what we think coin Base can do 0:07:37.400 --> 0:07:40.680 as a company. So I've been talking about some of 0:07:40.680 --> 0:07:42.720 these regulations that could be coming in the crypto industry. 0:07:42.720 --> 0:07:44.560 If you've missed any of that, go check out the 0:07:44.600 --> 0:07:47.200 previous segments of the Markmas Show on your favorite podcast 0:07:47.200 --> 0:07:50.280 player or catch me on YouTube. But if the government 0:07:50.480 --> 0:07:54.200 really cracks down on regulations, then a company like coin 0:07:54.240 --> 0:07:57.320 base might have a problem because a company like coin 0:07:57.360 --> 0:08:01.440 base makes its profits off of you trading these cryptocurrencies. 0:08:01.440 --> 0:08:05.560 But if these cryptoqurencies are regulated as securities and most 0:08:05.600 --> 0:08:08.560 of them go away, and then let's a coin Base 0:08:08.720 --> 0:08:12.400 has to file as a securities platform and then probably 0:08:12.440 --> 0:08:16.760 pay fines for all of the securities unregistered securities they've 0:08:16.760 --> 0:08:19.880 been pedaling so far. That could have a massive hit 0:08:19.920 --> 0:08:24.200 to coin basis books and then severely crimp the ability 0:08:24.200 --> 0:08:28.000 to make money moving forward. At least I think now. 0:08:28.120 --> 0:08:32.360 Right now it's at about discount to where the capitalization 0:08:32.360 --> 0:08:35.440 should be. But I don't know if that's enough. We 0:08:35.480 --> 0:08:38.320 don't know the impact of if the regulations will be 0:08:38.320 --> 0:08:40.839 passed through, and if the regulations are passed through, how 0:08:40.920 --> 0:08:43.839 much will that affect both their cash positions as well 0:08:43.840 --> 0:08:46.160 as their ability to make money in the moving forward. 0:08:46.920 --> 0:08:51.600 But the markets are responding at least in this assessment 0:08:51.600 --> 0:08:54.600 here where bonds traded with the yield of around four 0:08:56.720 --> 0:08:58.840 or more. If you're just tuning and you're listening to 0:08:58.880 --> 0:09:01.360 the markma Show, we're talking kind about the decentralized revolution, 0:09:01.400 --> 0:09:04.040 breaking some of the latest breaking news of the week, 0:09:04.080 --> 0:09:06.120 so you can stay up to date, so you can 0:09:06.160 --> 0:09:08.839 sound like you know the smartest part, smartest person. That's 0:09:08.920 --> 0:09:11.959 your cocktail party this weekend. Um, just by tuning in 0:09:12.040 --> 0:09:13.600 and listening to me as I catch you up on 0:09:13.640 --> 0:09:15.200 all the big news. I got a lot more to 0:09:15.280 --> 0:09:18.960 discover to discuss when I come back, including with the economy, 0:09:19.000 --> 0:09:22.200 the education system, the political realm and more. I'll be 0:09:22.280 --> 0:09:24.080 back with all that and more in a minute. You 0:09:24.120 --> 0:09:25.840 do not want to miss what I have coming up next, 0:09:25.920 --> 0:09:28.120 so don't go away, all right, Welcome back. If you 0:09:28.200 --> 0:09:30.480 just tune in you're listening to the Mark Moss Show, 0:09:30.520 --> 0:09:33.160 we're talking about some of the biggest breaking news in 0:09:33.240 --> 0:09:37.199 the world in the realm of politics, finance, and technology 0:09:37.240 --> 0:09:40.720 are really the intersection of those things. As we witness 0:09:41.080 --> 0:09:45.880 the world swinging from centralization to decentralization, and I spent 0:09:46.480 --> 0:09:48.640 quite a bit of time on my other podcast segments 0:09:48.679 --> 0:09:52.640 talking about the crash of f t X and what 0:09:52.760 --> 0:09:57.440 that means for the greater um cryptocurrency market and financial 0:09:57.640 --> 0:10:00.800 market overall. I'm not gonna re act everything that I've 0:10:00.840 --> 0:10:03.120 been through, but I do want to rehash some of it, 0:10:03.160 --> 0:10:06.240 which is that a couple of things. Is one, you 0:10:06.280 --> 0:10:09.440 need to be aware that there is still probably quite 0:10:09.480 --> 0:10:12.439 a bit of contagion that could spread from here. So 0:10:13.160 --> 0:10:17.080 if you're in the cryptocurrency space at all, don't think 0:10:17.120 --> 0:10:20.719 that the worst is over. I think the worst might 0:10:20.840 --> 0:10:22.880 still be to come. Now. I don't know this for sure, 0:10:22.960 --> 0:10:25.960 but what happens is the smaller players go down first, 0:10:26.679 --> 0:10:28.960 and then it takes the bigger players, the bigger players, 0:10:29.000 --> 0:10:31.400 the bigger players, and so forth. And f t X 0:10:32.400 --> 0:10:36.320 is the second largest cryptocurrency exchange, but there's even bigger 0:10:36.360 --> 0:10:41.080 players or other similarly big players that are not exchanges, 0:10:41.120 --> 0:10:44.520 but they're in the mix. And so one of those 0:10:45.000 --> 0:10:49.679 is cryptocurrency lender Genesis, and Genesis is a company that's 0:10:49.720 --> 0:10:51.600 kind of behind the scenes and they work with all 0:10:51.600 --> 0:10:55.000 these companies um taking custody of their funds, holding them 0:10:55.040 --> 0:10:58.040 for them and providing liquidity by doing loans and things 0:10:58.080 --> 0:11:00.480 like that. And what we saw this week is that 0:11:00.520 --> 0:11:04.760 crypto lender Genesis had to suspend with draws after the 0:11:04.800 --> 0:11:07.000 ft X collapse. Because what happens is all of these 0:11:07.040 --> 0:11:12.560 people have um contagion. Right, they're all interrelated. They all 0:11:12.600 --> 0:11:15.320 have money here, money there, and so when they lose 0:11:15.360 --> 0:11:17.200 a big chunk of money here, that creates a problem 0:11:17.200 --> 0:11:19.520 over there. And the demise of f t X created 0:11:19.559 --> 0:11:23.199 an unprecedented turmoil for Genesis, says this article in the 0:11:23.240 --> 0:11:26.719 Wall Street Journal, causing the company's lending arm to be 0:11:26.840 --> 0:11:31.080 unable to meet their withdrawal request. Because what happens is 0:11:32.679 --> 0:11:34.880 it's called a bank run because it typically happens with banks, 0:11:34.880 --> 0:11:36.680 and now we're seeing it happen in the cryptocurrency space. 0:11:36.720 --> 0:11:40.199 But if you have money at a bank and then 0:11:40.280 --> 0:11:42.920 all of a sudden you doubt their ability to pay 0:11:42.960 --> 0:11:46.400 you that money back, you might want to go get 0:11:46.440 --> 0:11:50.520 your money out before they run out, right. You want 0:11:50.520 --> 0:11:52.840 to go before everybody else shows up to get their money. 0:11:52.880 --> 0:11:54.240 You want to make sure you get your money before 0:11:54.240 --> 0:11:55.480 they go out. And the same thing happens with these 0:11:55.520 --> 0:11:59.440 cryptocurrency markets is that people all of a sudden lose trust, 0:11:59.800 --> 0:12:01.880 They lose faith in their ability to get their money out, 0:12:01.880 --> 0:12:03.280 and so they say, hey, I want to be the 0:12:03.280 --> 0:12:05.440 first one to get my money out. And that's exactly 0:12:05.440 --> 0:12:09.840 what started happening with Genesis, is that so many people 0:12:10.880 --> 0:12:12.520 I wanted to get money out that they weren't able 0:12:12.559 --> 0:12:17.320 to meet all their withdrawal requests because no bank, I 0:12:17.360 --> 0:12:19.720 hate to break it to you, JP, Borgan or Wells Fargo, 0:12:19.840 --> 0:12:21.880 they don't have all your money in the bank. As 0:12:21.880 --> 0:12:24.000 a matter of fact, Go to your bank and try 0:12:24.040 --> 0:12:26.720 to pull out five thousand dollars of cash and see 0:12:26.800 --> 0:12:29.719 what that's like. I've done it many times. My bank 0:12:29.800 --> 0:12:32.319 tells me that I need to request the cash in 0:12:32.440 --> 0:12:35.920 advance because they just don't keep that much. And so 0:12:36.280 --> 0:12:38.079 um same thing happens with Genesis. You know, they don't 0:12:38.120 --> 0:12:39.760 have all that money sitting in cash. They have it 0:12:39.840 --> 0:12:42.080 in other assets, and so when a lot of people 0:12:42.120 --> 0:12:44.120 come to request it at the same time, they just 0:12:44.160 --> 0:12:46.240 don't have that laying around. They have to liquidate other 0:12:46.280 --> 0:12:48.959 positions and it takes time. And so they said that 0:12:49.040 --> 0:12:52.439 it's they told clients that it was suspending redemptions and 0:12:53.040 --> 0:12:56.079 new loan originations following the collapse of Exchange f t 0:12:56.440 --> 0:13:01.079 x um. It says that the trauma for Genesis caused 0:13:01.080 --> 0:13:04.040 the company's lending arm to be unable to meet all 0:13:04.200 --> 0:13:07.200 withdrawal requests, the company told clients. On a Wednesday call, 0:13:07.280 --> 0:13:09.280 the company said it would delivery plan next week for 0:13:09.400 --> 0:13:11.439 its lending business. So we don't know what's going to 0:13:11.520 --> 0:13:15.080 happen with that, but it's a big problem. Genesis had 0:13:15.120 --> 0:13:18.520 two point eight billion in active loans outstanding at the 0:13:18.600 --> 0:13:22.559 end of September. And who did they have those loans with? 0:13:22.760 --> 0:13:25.440 And this is what I'm talking about, contagion. Who were 0:13:25.480 --> 0:13:28.600 those loans with? Are those loans good? Can they collect 0:13:28.679 --> 0:13:30.880 on that? If they can't get that money, then what 0:13:30.960 --> 0:13:32.760 about the money that they owe back to other people. 0:13:33.840 --> 0:13:38.040 It all starts getting very, very very dirty. Now, Genesis 0:13:38.720 --> 0:13:42.679 was the one providing yield to Gemini, So if you 0:13:42.760 --> 0:13:45.120 have money with Gemini and you were using their earned product, 0:13:45.240 --> 0:13:48.160 you might have a problem there. Gemini says it's partners 0:13:48.200 --> 0:13:50.800 with borrowers who are vetted through our risk management framework 0:13:50.800 --> 0:13:54.760 which review our partners collateralization management process. So Gemini says 0:13:54.800 --> 0:13:59.880 they do good due diligence. Everybody does. The problem is 0:14:00.000 --> 0:14:01.760 when you start seeing a run on the banks and 0:14:01.840 --> 0:14:06.640 you see asset prices uh falling. All that collateral that 0:14:06.760 --> 0:14:08.719 you thought you had that was good all of a 0:14:08.760 --> 0:14:13.599 sudden doesn't turn out to be good. Now Gemini is 0:14:13.679 --> 0:14:16.880 potentially going to be in trouble from from this, and 0:14:17.040 --> 0:14:20.120 we don't know who else is. We saw another crypto 0:14:20.200 --> 0:14:23.000 lender called Salt had to pause all their withdraws on Tuesday, 0:14:23.840 --> 0:14:26.600 saying that the collapse of FTX had impacted their business. 0:14:27.160 --> 0:14:29.000 So I would just go out on a limb and 0:14:29.040 --> 0:14:32.920 I would just tell you that any crypto company that 0:14:33.200 --> 0:14:37.440 has any type of lending or borrowing or yield products 0:14:38.120 --> 0:14:40.000 is probably going to be caught up in this mix, 0:14:40.080 --> 0:14:41.520 does it Now? Does that mean they're gonna go out 0:14:41.520 --> 0:14:43.720 of business and not return your funds? No, it doesn't. 0:14:44.720 --> 0:14:48.080 But it's definitely a risk. And I don't know how 0:14:48.120 --> 0:14:51.280 to quantify that risk and neither do you. And so 0:14:51.280 --> 0:14:54.000 I would think about that any time you give your 0:14:54.120 --> 0:14:57.000 money to somebody else, there's a chance you don't get 0:14:57.080 --> 0:14:59.920 that money back. Now, some it is more of a 0:15:00.000 --> 0:15:02.480 ski than others. If you go find a homeless person 0:15:02.520 --> 0:15:04.240 on the street and give them their money, there's probably 0:15:04.280 --> 0:15:05.960 a very good chance you don't get that money back. 0:15:06.000 --> 0:15:08.240 There's a very high risk of that. If you give 0:15:08.280 --> 0:15:10.680 it to a f d I C insured in bank, 0:15:11.320 --> 0:15:14.440 the risk is very low, but there's still a risk, 0:15:15.000 --> 0:15:16.760 all right, and you're gonna get compensated for that risk, 0:15:16.800 --> 0:15:18.800 or you should be compensated for that risk. The problem 0:15:18.840 --> 0:15:21.520 that I have with these cryptocurrency products is that there's 0:15:21.520 --> 0:15:23.760 no way to quantify that risk. And so if I 0:15:23.800 --> 0:15:25.400 can't quantify that risk, if I don't know if it's 0:15:25.400 --> 0:15:28.200 four percent risk or eight percent risk or se risk, 0:15:28.680 --> 0:15:33.120 then I probably shouldn't be using those And so most 0:15:33.160 --> 0:15:35.160 people are starting to wake up to this, which is 0:15:35.200 --> 0:15:37.600 why they're going to get their money off of the exchanges, 0:15:37.680 --> 0:15:39.080 just like people would go and make a run on 0:15:39.120 --> 0:15:40.800 the bank and get their money of the bank. And 0:15:40.920 --> 0:15:43.160 so I would recommend to you, if you have any 0:15:43.200 --> 0:15:48.560 cryptocurrency on any exchange, pull it off. And why wouldn't you. 0:15:50.360 --> 0:15:53.960 The whole point of bitcoin or crypto is that I 0:15:54.120 --> 0:15:59.240 can custody those assets on my own. Now, if I 0:15:59.320 --> 0:16:01.440 wanted to store my money in cash, I have to 0:16:01.440 --> 0:16:02.840 put it under a mattress or put it in a 0:16:02.920 --> 0:16:04.680 safe fighting in gold, and have to go bury it 0:16:04.720 --> 0:16:07.120 in the dirt somewhere, build up a safe. If I 0:16:07.200 --> 0:16:08.640 had a lot of goal to have to build up 0:16:08.680 --> 0:16:10.960 a vault, and I'd have to hire security for it, 0:16:12.000 --> 0:16:16.680 but bitcoin doesn't require that. Bitcoin requires just a cryptographic 0:16:16.720 --> 0:16:21.040 security key. I recommend using something called cold storage, So 0:16:21.160 --> 0:16:23.320 you could use a hardware wallet like a treads or 0:16:23.440 --> 0:16:26.840 t R e z o R Treaser or a ledger. 0:16:27.480 --> 0:16:29.920 Those are hardware walls, like a little guess b drive. UM. 0:16:30.080 --> 0:16:31.960 I would recommend that you can also use like an 0:16:32.000 --> 0:16:33.640 app on your phone or in a computer. I don't 0:16:33.680 --> 0:16:35.760 recommend those as much, but you can do that for 0:16:35.880 --> 0:16:38.560 ease of use. But pull it off of the exchange. 0:16:38.560 --> 0:16:40.400 Why do you have it there to earn four percent? 0:16:40.880 --> 0:16:43.240 Is that four percent worth the risk of losing it all? 0:16:44.240 --> 0:16:47.480 I would say certainly not. Now this is going to 0:16:47.600 --> 0:16:49.360 cause even more run on the bank and more people 0:16:49.360 --> 0:16:50.720 are gonna go pull it out. It's gonna cause even 0:16:50.760 --> 0:16:52.520 more problems. But you don't want to be the last 0:16:52.560 --> 0:16:54.600 person trying to get your money off and find out 0:16:54.640 --> 0:16:56.720 that you can't get it off the exchange, so you 0:16:56.800 --> 0:17:00.280 go pull it off. With Genesis going down, this is 0:17:00.320 --> 0:17:02.720 going to cause a problem with all of these companies 0:17:02.760 --> 0:17:05.639 who didn't think they had problems. And like I said, specifically, 0:17:06.080 --> 0:17:11.320 if your exchange like Gemini, offers a yield product, a 0:17:11.480 --> 0:17:16.440 lending product or borrowing product, just consider they have exposure. 0:17:16.480 --> 0:17:18.600 Now again, it could be a little exposure like Gemini 0:17:18.640 --> 0:17:20.560 and they could eat it. No big deal, could be 0:17:20.560 --> 0:17:22.520 a lot of explosion, could take it down. We don't know. 0:17:23.080 --> 0:17:26.800 But why take the risk for four for six? I 0:17:26.800 --> 0:17:29.600 would say certainly not. If you're just tune in, you're 0:17:29.600 --> 0:17:32.720 listening to the Mark Moa show. We're talking about, you know, 0:17:32.920 --> 0:17:36.240 the decentralized revolution. We're talking about the financial industry being 0:17:36.320 --> 0:17:39.720 shaken up. It's crazy time right now. Now is the 0:17:39.800 --> 0:17:43.200 time to air on the side of caution, trying to 0:17:43.240 --> 0:17:46.720 alert to you the problems that are happening through the 0:17:46.880 --> 0:17:49.560 realm of politics, finance, and technology. I have a lot 0:17:49.560 --> 0:17:51.160 more to cover. I want to break into some stuff 0:17:51.240 --> 0:17:54.080 on the economy, what's gonna happen to you over Thanksgiving 0:17:54.600 --> 0:17:57.920 um and your travel. We'll talk about the education system, 0:17:58.000 --> 0:17:59.760 politics and more. You don't want to miss what I 0:17:59.760 --> 0:18:02.520 have mean up next. Don't go away. I'm gonna be 0:18:02.680 --> 0:18:05.639 right back after a short break. All right, welcome back. 0:18:05.680 --> 0:18:07.680 If you're just tune in, you're listening to the Mark 0:18:07.800 --> 0:18:11.159 Ma Show. We're talking about the decentralized revolution, the way 0:18:11.200 --> 0:18:14.400 the world is changing right now, rapidly before our very eyes. 0:18:15.160 --> 0:18:17.359 We've been talking about the financial system overall. I want 0:18:17.400 --> 0:18:19.600 to jump to a broader subject right now, and that 0:18:19.800 --> 0:18:22.560 is just the economy. Now, we have to understand the 0:18:22.680 --> 0:18:24.639 markets and the economy are not the same. So the 0:18:24.680 --> 0:18:27.440 economy is made up of businesses and that's your job, 0:18:27.560 --> 0:18:31.119 and that's your business, and that's goods and services. And 0:18:31.160 --> 0:18:33.680 then we have the market, which is you know, stock market, 0:18:33.720 --> 0:18:37.680 bond market, etcetera. Now they are not the same. Now, 0:18:38.200 --> 0:18:41.040 they kind of should be the same because typically you're 0:18:41.080 --> 0:18:45.520 investing your stocks, are buying companies, and the companies make 0:18:45.600 --> 0:18:49.040 up the markets, so they should I'm sorry, the companies 0:18:49.080 --> 0:18:53.560 that you're buying. The markets should represent the economy. That's 0:18:53.560 --> 0:18:55.639 the way it should work. However, now we're in this 0:18:55.840 --> 0:18:59.080 highly financialized economy where basically everything has become financialized, and 0:18:59.119 --> 0:19:02.200 we can see the disc connect. There's no greater illustration 0:19:02.240 --> 0:19:07.880 than just looking back till in March, the entire economy 0:19:08.119 --> 0:19:11.720 was shut down. Businesses that have been in business for 0:19:12.400 --> 0:19:17.720 decades were forced to shut down. Um, all the goods 0:19:17.760 --> 0:19:19.359 and service that were being made, the supply chains, they 0:19:19.440 --> 0:19:24.800 all broke. People were at home not working. However, when 0:19:24.840 --> 0:19:28.959 the economy shut down, the markets went on to make 0:19:29.040 --> 0:19:33.760 new highs. So how are markets? How are stock markets 0:19:33.840 --> 0:19:36.480 making new all time highs when the economy sets down? 0:19:36.520 --> 0:19:41.119 And that's because, of course there's a disconnect, right, so 0:19:41.320 --> 0:19:42.879 you have to understand that now. But let's take a 0:19:42.920 --> 0:19:45.240 look at the economy for a second so we can see. 0:19:45.280 --> 0:19:47.440 Here's a article that broke UM on the Wall Street 0:19:47.480 --> 0:19:51.400 Journal says that the this Thanksgiving, what prices to expect 0:19:51.520 --> 0:19:53.960 at the grocery store. And what we can see is 0:19:54.040 --> 0:19:57.280 that unfortunately, the cost of everything has been going up 0:19:57.320 --> 0:19:59.639 through the roof. Food has been going up, energy has 0:19:59.640 --> 0:20:03.000 been going up, and unfortunately your holiday meal is going 0:20:03.119 --> 0:20:08.159 up as well. Maybe this will change you wanted to 0:20:08.240 --> 0:20:10.840 go um or or how many people you host for 0:20:11.000 --> 0:20:13.639 for Thanksgiving. And it says the holiday meals costing American 0:20:13.640 --> 0:20:16.960 families about fourteen percent more this year due to higher 0:20:17.040 --> 0:20:20.800 prices of turkey, flower, eggs, and other staples. So you're 0:20:20.840 --> 0:20:23.680 gonna have to spend more money. Spent about fourteen percent 0:20:23.840 --> 0:20:28.160 more this year due to those higher prices. Now, there's 0:20:28.160 --> 0:20:30.880 a million reasons why they want to say this is happening. 0:20:31.320 --> 0:20:34.360 It says turkey prices have increased about thirty percent from 0:20:34.400 --> 0:20:37.560 a year ago, So turkey is up thirty So I 0:20:37.600 --> 0:20:39.680