WEBVTT - Government Default: A Catalyst for Change? 0:00:00.200 --> 0:00:02.600 Hello, and welcome to another episode of the Mark Moss Show, 0:00:02.640 --> 0:00:05.640 where we talk about, of course, the decentralized revolution, how 0:00:05.680 --> 0:00:08.640 the world is changing right before our eyes as we 0:00:08.640 --> 0:00:12.280 look at it through the lens of politics, finance, and technology. 0:00:12.320 --> 0:00:15.360 And we have a big show coming up. The government 0:00:15.560 --> 0:00:19.080 admits money comes from thin air. The US Treasury has 0:00:19.120 --> 0:00:22.720 only two weeks of money left. Why a government default 0:00:22.800 --> 0:00:27.440 seems more likely than ever. And big problems equal big solutions, 0:00:27.600 --> 0:00:30.600 and we have one right now. So that's what we're 0:00:30.600 --> 0:00:32.800 going to cover. Let's go ahead and dig right into this, 0:00:32.840 --> 0:00:37.360 and let's just start right off by stating the obvious. 0:00:37.920 --> 0:00:41.239 We are at the point now where the government, the 0:00:41.280 --> 0:00:46.120 government officials are saying the quiet part out loud. What 0:00:46.120 --> 0:00:48.680 do I mean? Well, there's lots of things that we 0:00:48.760 --> 0:00:52.200 talk about kind of behind the scenes. People might consider 0:00:52.240 --> 0:00:57.520 them sometimes conspiracies, maybe their lies, maybe we don't understand, 0:00:57.840 --> 0:01:00.000 but we're at the point now where they're coming out 0:01:00.240 --> 0:01:04.680 and telling us that specifically. Now. One of our government 0:01:04.720 --> 0:01:09.440 officials I'm talking about, Brad Sherman from California, obviously is 0:01:09.480 --> 0:01:12.039 not one of my favorite lawmakers. For sure, he has 0:01:12.120 --> 0:01:18.280 been let's say, a big time foe an enemy of progress, 0:01:18.319 --> 0:01:22.560 an enemy of innovation, an enemy of bitcoin and cryptocurrencies. 0:01:22.600 --> 0:01:25.880 And of course his major donors are credit card companies 0:01:25.959 --> 0:01:28.280 and banks, so of course no wonder he's against that. 0:01:28.640 --> 0:01:32.000 And he's constantly come out with bad take after bad 0:01:32.080 --> 0:01:35.760 take after bad take, and he has another one this week. 0:01:36.000 --> 0:01:38.920 That man really still got to sit out to me. 0:01:39.080 --> 0:01:42.360 I'm gonna let you hear it directly from his mouth. 0:01:42.440 --> 0:01:44.120 Let's go ahead and play this clip from Brad Sherman 0:01:44.200 --> 0:01:47.080 so you can hear what we're talking about. Crypto bros 0:01:47.160 --> 0:01:49.640 make money, literally by making money, and they've made over 0:01:49.680 --> 0:01:54.600 a trillion dollars out of thin air. They'll accuse the 0:01:54.680 --> 0:01:57.680 US government of making money out of thin air. Maybe 0:01:57.720 --> 0:02:04.440 we do, but we're the US government. Uh, Crypto bros 0:02:04.480 --> 0:02:06.800 accused the US government of making money out of thin air. 0:02:07.560 --> 0:02:12.680 Maybe we do, but were the US government. That's his rationale. 0:02:13.680 --> 0:02:16.320 When I was a kid, I remember seeing these bumper stickers. 0:02:16.520 --> 0:02:20.240 They might still be around today, but they say, don't steal. 0:02:20.639 --> 0:02:23.320 The government hates competition. I don't know if you've ever 0:02:23.320 --> 0:02:25.360 seen one of those bumper stickers before, but that's basically 0:02:25.440 --> 0:02:29.120 what they're saying. You're not allowed to counterfeit money. That's 0:02:29.240 --> 0:02:32.680 the government's job. You're not allowed to steal, that's the 0:02:32.720 --> 0:02:35.400 government's job. You're not allowed to create money out of 0:02:35.440 --> 0:02:38.760 thin air. That's the government's job. So there's a lot 0:02:38.800 --> 0:02:41.519 to unpack with this. And as I said, one, they're 0:02:41.520 --> 0:02:45.120 saying the quiet part out loud. Yes, the government literally 0:02:45.680 --> 0:02:50.560 creates money out of thin air. Although if you don't 0:02:50.600 --> 0:02:52.600 understand what money is, maybe you don't really understand it. 0:02:52.639 --> 0:02:54.280 But let me unpack this just a little bit. So 0:02:54.720 --> 0:02:56.760 does the government print money out of thin air? And 0:02:56.840 --> 0:03:00.120 do crypto bros create money out of thin air? Well, 0:03:00.760 --> 0:03:03.079 first of all, money is a meaning of exchange, is 0:03:03.120 --> 0:03:04.520 a store of value, and I don't want to get 0:03:04.560 --> 0:03:06.880 into all that, but let's think about this for a minute. 0:03:07.360 --> 0:03:10.320 How is money made? How do you make money out 0:03:10.320 --> 0:03:13.480 of thin air? Well, I mean you can't, right, So, 0:03:13.520 --> 0:03:16.799 if I'm a crypto bro that Brad Sherman's talking about, 0:03:17.000 --> 0:03:20.520 let's see, I had to probably learn how to code. 0:03:20.520 --> 0:03:23.640 I've probably spent hundreds or thousands of hours potentially schooling 0:03:24.520 --> 0:03:27.160 learning how to code. And then I had to learn 0:03:27.200 --> 0:03:31.000 how to get a blockchain and fork it and then 0:03:31.080 --> 0:03:33.360 you know, change it, modify it to my own liking. 0:03:34.120 --> 0:03:36.120 Well one, I had to have the idea. I had 0:03:36.120 --> 0:03:39.360 to have the creativity to even see a potential use case. 0:03:39.360 --> 0:03:41.440 So I had to see a problem and a potential solution. 0:03:41.720 --> 0:03:43.040 I had to come up with a new you know, 0:03:43.080 --> 0:03:47.520 crypto bro blockchain to potentially solve that problem. I had 0:03:47.520 --> 0:03:48.839 to learn how to code or I had to hire 0:03:48.920 --> 0:03:50.880 coders to come in and write the code, fork it, 0:03:50.960 --> 0:03:53.400 modify it, et cetera. Then I had to you know, 0:03:53.480 --> 0:03:56.480 build a website and put all the marketing together. I 0:03:56.520 --> 0:03:58.840 had to you know, figure out how to raise money, 0:03:58.880 --> 0:04:01.600 set up off score corporation, bank accounts, whatever. I had 0:04:01.600 --> 0:04:03.200 to go on the show, you know, the road show, 0:04:03.240 --> 0:04:05.120 and I had to collect money, raise money. Then I 0:04:05.160 --> 0:04:07.320 had to get exchanges to list the token. I had 0:04:07.320 --> 0:04:11.360 to sell a token, etc. Sort of sounds like setting 0:04:11.440 --> 0:04:15.400 up a business. So for Brad Sherman to say that 0:04:15.480 --> 0:04:18.680 they were creating money out of thin air, I don't 0:04:18.920 --> 0:04:21.720 see what he's talking about. If you follow that line 0:04:21.720 --> 0:04:25.440 of thinking, then Mark Zuckerberg created money out of thin air. 0:04:26.640 --> 0:04:30.200 Jeff Bezos created money out of thin air. If you 0:04:30.360 --> 0:04:32.599 create So what Brad Sherman is saying is, if you 0:04:33.360 --> 0:04:36.480 learn how to use your mental capital. If you learn 0:04:36.520 --> 0:04:39.800 how to use your ideas to solve problems, you learn 0:04:39.839 --> 0:04:43.560 how to use your skills you developed to write code, 0:04:43.800 --> 0:04:47.960 you've learned marketing skills and organizational skills, and your business 0:04:48.000 --> 0:04:51.320 creates revenue. You've created it out of thin air. Is 0:04:51.320 --> 0:04:55.760 that what they're saying. That's what he's trying to say. Now, 0:04:56.560 --> 0:04:58.120 if you listen to the show on a regular basis, 0:04:58.120 --> 0:05:00.320 you know, I'm not a big fan of crypto he 0:05:00.400 --> 0:05:03.560 as a category because most of it is vaporware. Most 0:05:03.600 --> 0:05:04.960 of it is a scam, and I don't use the 0:05:04.960 --> 0:05:07.400 word scam lightly. What I mean is that people think 0:05:07.440 --> 0:05:11.960 they're buying one thing, a decentralized secure asset, and they're 0:05:12.000 --> 0:05:16.280 being sold something else that's neither decentralized nor secure, And 0:05:16.320 --> 0:05:18.600 many times there's rug poles and things like that. So 0:05:18.640 --> 0:05:20.320 I'm not a big fan of it as a category. 0:05:20.320 --> 0:05:22.760 But to say that they're printing money from thin air 0:05:23.120 --> 0:05:26.440 just shows how little Brad Sherman knows about what he's 0:05:26.480 --> 0:05:28.640 even talking about. He has no idea, of course he doesn't. 0:05:28.720 --> 0:05:32.080 He's a government bureaucrap. He's never created value in his 0:05:32.360 --> 0:05:35.280 entire life, so he has no idea what would say 0:05:35.320 --> 0:05:38.160 is how the sausage is made. He has no idea 0:05:38.240 --> 0:05:41.600 how businesses actually create value. He has no idea how 0:05:41.600 --> 0:05:43.800 people get paid by creating value. If he did, he 0:05:43.800 --> 0:05:47.320 would understand that what the crypto bros Have done is 0:05:47.400 --> 0:05:49.800 no different. I mean, it's different in many ways, but 0:05:49.960 --> 0:05:52.840 it is very similar to what Mark Zuckerberg did by 0:05:52.839 --> 0:05:55.160 creating a line of code in his college dorm room. 0:05:55.440 --> 0:05:59.320 And what the guys that started Airbnb from an Airbnb 0:05:59.480 --> 0:06:02.080 from a cow did. They wrote a line of code, 0:06:02.200 --> 0:06:05.320 they organized people, they created marketing, They went and raised 0:06:05.400 --> 0:06:10.640 money that created value for those people, and they made money. 0:06:11.000 --> 0:06:13.200 So the crypto ros did not create money out of 0:06:13.240 --> 0:06:16.839 thin air. They created something that enticed people to give 0:06:16.920 --> 0:06:20.640 them money US dollars. Now back to the government, the 0:06:20.720 --> 0:06:23.160 government is making money out of thin air. That's according 0:06:23.200 --> 0:06:26.560 to Brad Sherman's own words. Yes, the government is printing 0:06:26.600 --> 0:06:28.440 money out of thin air. So what are they doing 0:06:28.480 --> 0:06:32.359 to provide value? What is the government doing to provide 0:06:32.400 --> 0:06:36.880 any value to us? They're not. They didn't learn a skill. 0:06:36.960 --> 0:06:39.880 They didn't provide that skill to the marketplace. They didn't 0:06:39.920 --> 0:06:43.680 go build out marketing and go raise money. People willingly 0:06:43.839 --> 0:06:46.160 giving them money. No, that's not what the government does. 0:06:46.520 --> 0:06:50.640 The government hits a button on a keyboard to create 0:06:50.680 --> 0:06:56.280 more dollar units, not for us, not in exchange for value. 0:06:56.400 --> 0:06:58.880 They just inject those into the system. None of us 0:06:58.960 --> 0:07:01.120 get any say out of them. And what it does, 0:07:01.200 --> 0:07:04.920 instead of providing value to us, it steals our value away. 0:07:05.400 --> 0:07:07.960 Every time they create create one more currency unit, it 0:07:08.000 --> 0:07:12.960 makes the existing crypto, the existing currency units worth less, worthless. 0:07:13.280 --> 0:07:18.880 And so when you see prices going up steak, gas, milk, cheese, homes, travel, 0:07:18.920 --> 0:07:21.520 et cetera, when those prices are going up, what's really 0:07:21.560 --> 0:07:25.040 happening is the dollars are buying less and less. They're debasing. 0:07:25.080 --> 0:07:27.760 They're devaluing the dollar by creating more of them. And 0:07:27.800 --> 0:07:30.080 so it's not that prices are going up. They are, 0:07:30.400 --> 0:07:32.520 but the reason why prices are going up is because 0:07:32.560 --> 0:07:36.120 the value of that money is going down. That money 0:07:36.160 --> 0:07:38.640 buys you less, it takes more of those currency units 0:07:38.680 --> 0:07:40.800 to buy those same goods and services in the future. 0:07:41.160 --> 0:07:44.920 Now that's being done because, as Brad Truman said, the 0:07:44.960 --> 0:07:49.320 quiet part out loud, they're creating money from thin air. Now, 0:07:49.400 --> 0:07:51.600 this takes us to the big topic at hand, which 0:07:51.640 --> 0:07:54.680 is all over the news, which is the debt limit. 0:07:55.000 --> 0:07:59.880 The United States government, the global the number one global superpower, 0:08:00.080 --> 0:08:06.480 the homogeny, the reserve currency of the world. The United 0:08:06.480 --> 0:08:12.720 States government is broke. The United States Treasury, the treasury 0:08:12.800 --> 0:08:14.440 runs the government. It's like if you had a business, 0:08:14.480 --> 0:08:16.600 you had an accounting department. The treasury is like the 0:08:16.600 --> 0:08:20.480 accounting department. They're broke. They don't have enough income to 0:08:20.640 --> 0:08:25.040 cover their expenses, and they've taken on more debt and 0:08:25.120 --> 0:08:28.680 more debt and more debt, and now they don't have 0:08:28.760 --> 0:08:32.559 any more. So, for example, if you had a business 0:08:32.880 --> 0:08:36.680 and your expenses exceeded your income, and so you took 0:08:36.679 --> 0:08:39.880 a credit line from your bank, and then you went 0:08:39.920 --> 0:08:41.960 through that entire credit line, and you still didn't have 0:08:42.040 --> 0:08:43.679 enough revenue to cover your expenses. So then you went 0:08:43.720 --> 0:08:46.640 and got a credit card, and then you still couldn't 0:08:46.679 --> 0:08:48.920 get your business profitable, and so you took out another 0:08:48.960 --> 0:08:52.160 credit card, and then finally the bank and the credit 0:08:52.160 --> 0:08:54.600 cards are like hang on, hang on, hang on, no 0:08:54.679 --> 0:08:59.040 more credit for you. That's where the government's at five trillion, 0:08:59.120 --> 0:09:02.600 ten trillion, trillion, thirty trillion, thirty two trillion, and the 0:09:02.640 --> 0:09:05.880 government still can't be profitable. And now the credit lines 0:09:05.920 --> 0:09:08.280 are cut off. If you're just tune in, you're listening 0:09:08.280 --> 0:09:10.959 to the Mark mass Show talking about the decentralized Revolution. 0:09:11.240 --> 0:09:13.640 We're running through some big stuff. We're gonna talk about 0:09:13.640 --> 0:09:16.560 the treasury has only two weeks of money left, why 0:09:16.559 --> 0:09:19.280 the government default is more likely than ever, and the 0:09:19.320 --> 0:09:20.760 big problem. I'll be back with that in a more 0:09:20.880 --> 0:09:22.679 in a minute. Don't go away, all right, welcome back. 0:09:22.720 --> 0:09:24.200 If you're just tune in, you were listening to the 0:09:24.240 --> 0:09:28.079 Mark Moss Show, of course, always talking about the decentralized Revolution. 0:09:28.400 --> 0:09:32.400 We're talking about how our lawmakers are now saying the 0:09:32.440 --> 0:09:34.920 quiet part out loud. Brad Sherman says, Hey, you crypto bros. 0:09:34.960 --> 0:09:36.560 Created money out of thin air. You can't do that, 0:09:36.640 --> 0:09:40.079 but we're the government. We do. I explained that I'm 0:09:40.080 --> 0:09:43.000 not gonna go through that again, but the government needs 0:09:43.040 --> 0:09:45.240 to create more money out of thin air because the government, 0:09:45.280 --> 0:09:49.520 the US Treasury is broke literally meaning broke. As a 0:09:49.559 --> 0:09:52.800 matter of fact, let's hear directly from the head of 0:09:52.880 --> 0:09:56.680 the US Treasury again, kind of in a business analogy, 0:09:56.720 --> 0:10:00.559 this would be like your CFO telling you, let's hear 0:10:00.600 --> 0:10:03.600 exactly what Janet Yellen, the head of US Treasury is 0:10:03.640 --> 0:10:06.440 saying about this debt default that's looming here. 0:10:06.720 --> 0:10:12.120 Well, you know, I would say that if Congress doesn't 0:10:12.360 --> 0:10:16.520 raise the debt ceiling, the president will have to make 0:10:16.600 --> 0:10:21.720 some decisions about what to do with the resources that. 0:10:21.679 --> 0:10:22.480 We do have. 0:10:23.080 --> 0:10:26.439 And there are a variety of different options, but there 0:10:26.440 --> 0:10:30.400 are no good options. Every option is a bad option. 0:10:33.520 --> 0:10:36.120 First of all, that wasn't a bad signal. That's just 0:10:36.200 --> 0:10:40.520 how she talks. She has to labor over every single word, 0:10:41.080 --> 0:10:45.880 So that's how she talks about. There's no good options. Yeah, 0:10:45.960 --> 0:10:49.439 who would want to cut back on their spending? Who 0:10:49.480 --> 0:10:52.280 would want to live within a budget? Those are not 0:10:52.440 --> 0:10:55.320 good options. She says that the president will have to 0:10:55.360 --> 0:11:02.800 make some very difficult decisions. Yeah, not increasing the spending 0:11:02.840 --> 0:11:06.120 when you don't have the money. Those are very difficult decisions. Now, 0:11:06.440 --> 0:11:08.120 if you tune in regularly, you kind of already know 0:11:08.160 --> 0:11:09.800 this I talk about this has already been framed up. 0:11:09.800 --> 0:11:13.319 But look, this isn't a partisan thing. I don't want 0:11:13.320 --> 0:11:16.319 to turn this into a Republican Democrat. We happen to 0:11:16.360 --> 0:11:18.439 have a Democrat Biden in the office. Now, we had 0:11:19.000 --> 0:11:21.760 a Republican with Trump in before Trump spent more money 0:11:21.760 --> 0:11:23.800 than any president before him, and Biden wants to spend 0:11:23.840 --> 0:11:25.680 even more. Every president wants to spend more. And the 0:11:25.679 --> 0:11:27.920 reason why it's because we are in a debt based 0:11:27.960 --> 0:11:30.800 monetary system, which means the debt has to constantly expand 0:11:31.240 --> 0:11:33.800 or the whole thing falls apart. So it's not red 0:11:33.880 --> 0:11:37.600 or blue. Trump spent more than before him, and Biden 0:11:37.640 --> 0:11:39.800 wants to spend even more. But Biden has come out 0:11:40.080 --> 0:11:44.600 like swinging like crazy, passing like all types of bills 0:11:44.600 --> 0:11:47.440 like the Inflation Reduction Act, and they want to spend 0:11:47.520 --> 0:11:51.800 one point seven trillion dollars on all these new programs 0:11:51.840 --> 0:11:53.679 like eighty billion to bring on a whole bunch of 0:11:53.760 --> 0:11:59.200 new IRS, agents, types of things like that, and you know, millions, 0:11:59.360 --> 0:12:01.200 hundreds of millions dollars to give to other countries to 0:12:01.320 --> 0:12:04.320 study gender studies and things like that. Money that probably 0:12:04.320 --> 0:12:07.640 doesn't need to be spent. Money that might be good 0:12:07.720 --> 0:12:09.760 to be spent if you wanted to and you had 0:12:09.800 --> 0:12:11.800 some extra money and you thought it was worthwhile, but 0:12:11.880 --> 0:12:15.240 certainly not when you're broke and your income is exping 0:12:15.280 --> 0:12:18.600 your income is your expenses are exceeding your income, so 0:12:19.280 --> 0:12:21.599 no good options left. Now, let's talk about some of 0:12:21.640 --> 0:12:25.040 these options. So option one is the Republican said, look, 0:12:25.080 --> 0:12:27.520 here's what we'll do. Will allow you to increase the 0:12:27.559 --> 0:12:32.800 debt ceiling another one point five trillion dollars, but you're 0:12:32.800 --> 0:12:34.240 going to have to cut a couple of things because 0:12:34.240 --> 0:12:35.760 that's not going to be enough money. So a couple 0:12:35.760 --> 0:12:37.280 of things you have to cut would be like cut 0:12:37.280 --> 0:12:41.319 some of this the irs agents for example. Also, you're 0:12:41.360 --> 0:12:44.280 going to need to cancel that student loan forgiveness that 0:12:44.320 --> 0:12:45.800 you put through because we don't really have the money 0:12:45.840 --> 0:12:48.960 to do that. And also, what we want to do 0:12:49.000 --> 0:12:50.679 is we want to start getting energy out of the 0:12:50.760 --> 0:12:52.960 United States against we can become energy independent because that 0:12:52.960 --> 0:12:55.120 will really unleash the economy and allow us to grow 0:12:55.120 --> 0:12:58.000 out of this. And Biden says, no deal. So when 0:12:58.080 --> 0:13:01.200 Jane yone's saying that he has to make some tough decisions, 0:13:01.200 --> 0:13:03.480 one of the tough decisions would be, am I willing 0:13:03.520 --> 0:13:07.000 to spend less money in the future? Still increase it 0:13:07.040 --> 0:13:09.960 still go up by one point five trillion, but less 0:13:10.000 --> 0:13:12.200 than I want? And that's where the stealmate is. I 0:13:12.200 --> 0:13:15.280 want you to understand that the stealmate is the one 0:13:15.360 --> 0:13:19.400 point five trillion more isn't good enough, and that's what 0:13:19.400 --> 0:13:24.280 they're fighting over. Now there's talks of a government default 0:13:24.360 --> 0:13:27.079 and that is really running hot. As a matter of fact, 0:13:27.320 --> 0:13:31.880 that seems to be the base case that's going on here. 0:13:32.440 --> 0:13:35.440 Let's play this clip from Janet Yellen and hear directly 0:13:35.440 --> 0:13:38.480 from her on what she's saying about this is. 0:13:38.440 --> 0:13:43.320 If re Treasury secretary has known the only option that 0:13:43.520 --> 0:13:47.520 really loves our economy in good shape is and our 0:13:47.600 --> 0:13:52.360 financial system is raising the dead ceiling and making clear 0:13:52.480 --> 0:13:58.480 that Congress stands behind the basic principle that America pays 0:13:58.520 --> 0:14:01.400 its bills. We're not beat country. 0:14:03.520 --> 0:14:08.680 So every economist knows, right, every economist knows that the 0:14:08.920 --> 0:14:12.640 only way forward is for the US government to continue 0:14:12.640 --> 0:14:16.440 to raise the debt ceiling, otherwise it leaves our economy 0:14:16.440 --> 0:14:19.320 in bad shape. Like what like, hang on, did you 0:14:19.440 --> 0:14:21.680 know that? Let me know? If you know that, hit 0:14:21.720 --> 0:14:23.160 me up on social media. I want to hear from 0:14:23.160 --> 0:14:24.840 you guys. Hit me up on social media at one 0:14:24.880 --> 0:14:27.200 Mark Moss on Instagram or Twitter. I'm pretty active on 0:14:27.200 --> 0:14:29.480 both those platforms, And let me know, did you know that? 0:14:29.640 --> 0:14:32.440 Did you know that? Every economist knows that we have 0:14:32.600 --> 0:14:34.960 to increase the debt ceiling in order to continue to 0:14:35.000 --> 0:14:38.600 pay our bills. Now more people are waking up to 0:14:38.640 --> 0:14:40.560 this than ever before. So this is a good thing 0:14:40.720 --> 0:14:42.720 in a long term perspective because people are starting to 0:14:42.720 --> 0:14:45.360 wake up to this. But listen to the sheer insanity 0:14:45.440 --> 0:14:48.120 of that. Everyone knows we have to increase the debt 0:14:48.160 --> 0:14:50.560 ceiling in order to pay our bills. So that's going 0:14:50.600 --> 0:14:52.760 back to your business analogy. Your bank won't give you 0:14:52.760 --> 0:14:55.080 another credit line, you can't get any more credit cards, 0:14:55.160 --> 0:14:56.680 and you go back to the bank and say, look, 0:14:56.920 --> 0:14:59.360 everyone knows if you don't give me another credit line, 0:14:59.480 --> 0:15:03.000 my business goes under. What's the bank going to tell you? 0:15:04.080 --> 0:15:06.120 They can tell you to pound sand I mean, that's 0:15:06.120 --> 0:15:09.280 the most ridiculous thing ever. But then the final part 0:15:09.320 --> 0:15:12.240 that she said so that other nations don't think we're 0:15:12.280 --> 0:15:15.680 a deadbeat nation. So imagine again, going back to your bank. 0:15:16.040 --> 0:15:17.320 I know you said you won't give me to our 0:15:17.320 --> 0:15:19.520 credit lines, and I know I've maxed out fifteen credit cards, 0:15:20.280 --> 0:15:22.280 but look, if you don't give me, if you don't 0:15:22.280 --> 0:15:24.320 give me another credit line, you know my business is 0:15:24.320 --> 0:15:26.160 going to go under and people will think I'm a 0:15:26.200 --> 0:15:31.320 deadbeat company. Think about that, Well, if you can't pay 0:15:31.360 --> 0:15:33.640 your bills. You're not profitable, You've taken on more and 0:15:33.680 --> 0:15:35.800 more debt that you have no way of ever repaying. 0:15:37.160 --> 0:15:40.040 Aren't you a deadbeat company? You're not going to pay 0:15:40.040 --> 0:15:43.880 those people their money back. Why would anyone loan you 0:15:44.360 --> 0:15:47.360 are deadbeat? So what she's saying is wrong. I put 0:15:47.400 --> 0:15:50.640 out a tweet. I believe it was yesterday earlier this week. 0:15:50.680 --> 0:15:54.360 I forget exactly what day, and I showed a chart 0:15:54.960 --> 0:15:56.560 and I like to I like to post a lot 0:15:56.560 --> 0:15:59.080 of charts on my main YouTube channel, Mark Moss, as 0:15:59.120 --> 0:16:01.280 well as on Twitter as well. Again follow me on 0:16:01.320 --> 0:16:03.160 those platforms if you're not. And I like to show 0:16:03.160 --> 0:16:05.240 the charts because I want to show you the size 0:16:05.280 --> 0:16:07.520 and the speed of these moves. And the chart comes 0:16:07.520 --> 0:16:10.200 from FRED, which is the Federal Reserve's data board, and 0:16:10.240 --> 0:16:13.600 it showed that the interest on the debt, So again 0:16:13.600 --> 0:16:15.360 they want to raise the debt selling from thirty one 0:16:15.400 --> 0:16:17.320 trillion to know almost thirty two to another one and 0:16:17.320 --> 0:16:20.480 a half. The interest that's owed on that debt is 0:16:20.560 --> 0:16:24.040 now equal to the amount of money that we spend 0:16:24.400 --> 0:16:28.360 just on defense spending for the military. So we're paying 0:16:28.400 --> 0:16:30.760 just as much on debt as we are on defense. 0:16:30.840 --> 0:16:34.880 Now we spend We spend more on defense than the 0:16:34.920 --> 0:16:41.360 next ten countries combined combined. So everyone from number two China, Russia, everybody, 0:16:41.800 --> 0:16:44.520 the next ten people, we spend more than that combined. Now, 0:16:44.760 --> 0:16:47.160 so the debt, the interest on the debt is more. 0:16:47.200 --> 0:16:50.040 Now does that sound bad? Did you know that the 0:16:50.040 --> 0:16:52.680 Federal Reserve has raised rates at the highest and fastest 0:16:52.760 --> 0:16:55.960 rate in history. And when the debt was taken on, 0:16:56.280 --> 0:16:59.880 we were in the zero zero point five range. Today 0:17:00.120 --> 0:17:05.359 we're at five percent. About thirty percent of that debt, 0:17:05.640 --> 0:17:08.919 the thirty two trillion dollars has to be refinanced in 0:17:08.960 --> 0:17:13.560 the next twelve months at these new five percent rates. 0:17:13.920 --> 0:17:16.640 What do you think happens when you refinance thirty percent 0:17:16.760 --> 0:17:21.280 of your thirty two trillion from zero percent to five percent? 0:17:21.400 --> 0:17:23.520 Like if you took on thirty percent of your debt 0:17:23.520 --> 0:17:25.399 for your business, you had got like on a zero 0:17:25.600 --> 0:17:27.840 rate transfer credit card, and then all of a sudden 0:17:27.840 --> 0:17:29.639 it resets at five percent. What is that going to 0:17:29.680 --> 0:17:31.840 do to you in a time when the interest is 0:17:31.920 --> 0:17:35.040 already meeting or exceeding defense spending, in a time when 0:17:35.040 --> 0:17:39.080 you can't already make those obligations. It's insanity. If you're 0:17:39.119 --> 0:17:40.880 just tune in. You're listening to the Mark Maus Show. 0:17:40.920 --> 0:17:44.280 We're talking about the insanity of the debt crisis that's happening, 0:17:44.320 --> 0:17:46.120 the unsustainable debt. I got a lot more to cover 0:17:46.160 --> 0:17:49.640 when I come back on the potential for a government default, 0:17:49.640 --> 0:17:52.399 which is I'm thinking is probably the base case. It 0:17:52.400 --> 0:17:54.400 looks like that's where we're headed. What does that mean 0:17:54.400 --> 0:17:57.399 and what are the possible solutions to protect yourself and 0:17:57.480 --> 0:17:59.040 profit from all this. We'll talk about all that in 0:17:59.080 --> 0:18:01.240 a minute when I come back. Don't go away, I'll 0:18:01.280 --> 0:18:04.080 be right back. All right, Welcome back. If you just 0:18:04.119 --> 0:18:06.399 tune in, you're listening to the Mark mass Show. Taking 0:18:06.440 --> 0:18:09.320 it through this debt crisis that we're in. We've been 0:18:09.320 --> 0:18:12.119 covering how the government admitted that they're printing money from 0:18:12.160 --> 0:18:15.800 thin air and now this debt crisis that's looming now. 0:18:15.800 --> 0:18:19.680 I talked about the government having only less than two 0:18:19.760 --> 0:18:22.840 weeks of money left. Now, of course they show us this. 0:18:22.880 --> 0:18:24.280 They show us how much money they have in their 0:18:24.280 --> 0:18:26.679 reserve account, and so we can see their checking account. 0:18:26.680 --> 0:18:29.240 We can also see how fast it's been drawing down. 0:18:29.359 --> 0:18:33.200 So we basically just extrapolate what the current burn rate 0:18:33.280 --> 0:18:35.600 is and then based off this current burn rate, how 0:18:35.680 --> 0:18:38.080 much do you have left? And then how long will 0:18:38.080 --> 0:18:42.080 that last? It's not hard to do, simple elementary math, 0:18:42.160 --> 0:18:44.680 almost right, And so all we can see is that 0:18:44.960 --> 0:18:48.520 based off of those numbers, we see that we have 0:18:48.880 --> 0:18:52.919 about two weeks left. The treasury account is down to 0:18:53.480 --> 0:18:56.800 one hundred and eighty five billion, which is a lot 0:18:56.800 --> 0:19:00.719 of money, but not when you're talking about trillions of dollars. 0:19:00.760 --> 0:19:04.320 The government is running a two point two trillion dollar 0:19:04.600 --> 0:19:07.600 deficit right now, so that means the deficit means that 0:19:07.640 --> 0:19:12.400 their expenses exceed their income by two point two trillion. Now, 0:19:13.200 --> 0:19:16.360 the treasury has one hundred and eighty five billion, the 0:19:16.400 --> 0:19:23.040 cash balance is down just down thirty billion just from yesterday, 0:19:23.080 --> 0:19:26.480 and only two point two billion in tax revenue came in, 0:19:26.880 --> 0:19:29.280 because right, we have tax revenue coming in and tax 0:19:29.320 --> 0:19:31.240 you know, taxes were doing April fifteenth last month, and 0:19:31.240 --> 0:19:33.440 so the tax revenue is coming in, but the most 0:19:33.440 --> 0:19:35.840 of that tax revenue is already in, like you should 0:19:35.840 --> 0:19:38.600 have already paid that that's already in, which had a 0:19:38.600 --> 0:19:40.200 little bit more trickle in two point two billion, but 0:19:40.240 --> 0:19:43.680 we withdrew thirty you know what I'm saying. The expenses 0:19:43.720 --> 0:19:46.679 are way exceeding the income, and so at this run rate, 0:19:46.720 --> 0:19:50.840 we have about two weeks left. Now, this is obviously unsustainable. 0:19:51.680 --> 0:19:54.879 I don't have to an elementary kid could figure that out. 0:19:54.880 --> 0:19:58.400 That's unsustainable. The US government debt has gone from one 0:19:58.400 --> 0:20:04.119 point two trillion to thirty one point four trillion just 0:20:04.160 --> 0:20:11.280 since nineteen eighty. Thirty times in thirty years, well, I 0:20:11.320 --> 0:20:15.560 guess without forty years, thirty times in forty years, one 0:20:15.560 --> 0:20:17.359 point two jollion to thirty one point four joian. That 0:20:17.400 --> 0:20:20.439 is not sustainable. In nineteen eighty, going back to the 0:20:20.440 --> 0:20:24.080 one point two trillion, the debt to GDP. So back 0:20:24.080 --> 0:20:27.600 to a business, you have your your revenue, your gross revenue, 0:20:27.600 --> 0:20:29.560 the amount of products that you produce, goods and service 0:20:29.600 --> 0:20:31.639 that you produce, and then you have your debt. In 0:20:31.720 --> 0:20:34.680 nineteen eighty, the debt in the United States government debt 0:20:34.720 --> 0:20:38.880 to the GDP was twenty six percent. This year it's 0:20:38.880 --> 0:20:43.600 one hundred and twenty three percent. So what does that mean, Well, 0:20:43.600 --> 0:20:45.440 that means that what they do is they take on debt. 0:20:45.480 --> 0:20:46.960 Just like your business. You would take on debt to 0:20:46.960 --> 0:20:48.560 buy a new piece of equipment, a new van, new 0:20:48.600 --> 0:20:51.000 truck hire, somebody and you hope that by buying that 0:20:51.040 --> 0:20:53.240 new piece of equipment, and you take on that little 0:20:53.280 --> 0:20:55.520 bit of debt. You know it's going to cost you 0:20:55.560 --> 0:20:56.800 a hundred bucks a month to add on this piece 0:20:56.800 --> 0:20:58.600 of equipment, but that piece equipment should make you five 0:20:58.680 --> 0:21:01.760 hundred a month. So you take on one dollar of 0:21:01.800 --> 0:21:04.920 debt to add five dollars of revenue. That'd be the goal. 0:21:05.280 --> 0:21:07.080 And so the United States government has done right. They're 0:21:07.080 --> 0:21:09.480 trying to take on debt to try to grow. The 0:21:09.520 --> 0:21:12.080 problem is is that at some point the debt becomes 0:21:12.160 --> 0:21:14.600