Speaker 1: Hello, and welcome to another episode of the Mark Moss Show,
Speaker 1: where we talk about, of course, the decentralized revolution, how
Speaker 1: the world is changing right before our eyes as we
Speaker 1: look at it through the lens of politics, finance, and technology.
Speaker 1: And we have a big show coming up. The government
Speaker 1: admits money comes from thin air. The US Treasury has
Speaker 1: only two weeks of money left. Why a government default
Speaker 1: seems more likely than ever. And big problems equal big solutions,
Speaker 1: and we have one right now. So that's what we're
Speaker 1: going to cover. Let's go ahead and dig right into this,
Speaker 1: and let's just start right off by stating the obvious.
Speaker 1: We are at the point now where the government, the
Speaker 1: government officials are saying the quiet part out loud. What
Speaker 1: do I mean? Well, there's lots of things that we
Speaker 1: talk about kind of behind the scenes. People might consider
Speaker 1: them sometimes conspiracies, maybe their lies, maybe we don't understand,
Speaker 1: but we're at the point now where they're coming out
Speaker 1: and telling us that specifically. Now. One of our government
Speaker 1: officials I'm talking about, Brad Sherman from California, obviously is
Speaker 1: not one of my favorite lawmakers. For sure, he has
Speaker 1: been let's say, a big time foe an enemy of progress,
Speaker 1: an enemy of innovation, an enemy of bitcoin and cryptocurrencies.
Speaker 1: And of course his major donors are credit card companies
Speaker 1: and banks, so of course no wonder he's against that.
Speaker 1: And he's constantly come out with bad take after bad
Speaker 1: take after bad take, and he has another one this week.
Speaker 1: That man really still got to sit out to me.
Speaker 1: I'm gonna let you hear it directly from his mouth.
Speaker 1: Let's go ahead and play this clip from Brad Sherman
Speaker 1: so you can hear what we're talking about. Crypto bros
Speaker 1: make money, literally by making money, and they've made over
Speaker 1: a trillion dollars out of thin air. They'll accuse the
Speaker 1: US government of making money out of thin air. Maybe
Speaker 1: we do, but we're the US government. Uh, Crypto bros
Speaker 1: accused the US government of making money out of thin air.
Speaker 1: Maybe we do, but were the US government. That's his rationale.
Speaker 1: When I was a kid, I remember seeing these bumper stickers.
Speaker 1: They might still be around today, but they say, don't steal.
Speaker 1: The government hates competition. I don't know if you've ever
Speaker 1: seen one of those bumper stickers before, but that's basically
Speaker 1: what they're saying. You're not allowed to counterfeit money. That's
Speaker 1: the government's job. You're not allowed to steal, that's the
Speaker 1: government's job. You're not allowed to create money out of
Speaker 1: thin air. That's the government's job. So there's a lot
Speaker 1: to unpack with this. And as I said, one, they're
Speaker 1: saying the quiet part out loud. Yes, the government literally
Speaker 1: creates money out of thin air. Although if you don't
Speaker 1: understand what money is, maybe you don't really understand it.
Speaker 1: But let me unpack this just a little bit. So
Speaker 1: does the government print money out of thin air? And
Speaker 1: do crypto bros create money out of thin air? Well,
Speaker 1: first of all, money is a meaning of exchange, is
Speaker 1: a store of value, and I don't want to get
Speaker 1: into all that, but let's think about this for a minute.
Speaker 1: How is money made? How do you make money out
Speaker 1: of thin air? Well, I mean you can't, right, So,
Speaker 1: if I'm a crypto bro that Brad Sherman's talking about,
Speaker 1: let's see, I had to probably learn how to code.
Speaker 1: I've probably spent hundreds or thousands of hours potentially schooling
Speaker 1: learning how to code. And then I had to learn
Speaker 1: how to get a blockchain and fork it and then
Speaker 1: you know, change it, modify it to my own liking.
Speaker 1: Well one, I had to have the idea. I had
Speaker 1: to have the creativity to even see a potential use case.
Speaker 1: So I had to see a problem and a potential solution.
Speaker 1: I had to come up with a new you know,
Speaker 1: crypto bro blockchain to potentially solve that problem. I had
Speaker 1: to learn how to code or I had to hire
Speaker 1: coders to come in and write the code, fork it,
Speaker 1: modify it, et cetera. Then I had to you know,
Speaker 1: build a website and put all the marketing together. I
Speaker 1: had to you know, figure out how to raise money,
Speaker 1: set up off score corporation, bank accounts, whatever. I had
Speaker 1: to go on the show, you know, the road show,
Speaker 1: and I had to collect money, raise money. Then I
Speaker 1: had to get exchanges to list the token. I had
Speaker 1: to sell a token, etc. Sort of sounds like setting
Speaker 1: up a business. So for Brad Sherman to say that
Speaker 1: they were creating money out of thin air, I don't
Speaker 1: see what he's talking about. If you follow that line
Speaker 1: of thinking, then Mark Zuckerberg created money out of thin air.
Speaker 1: Jeff Bezos created money out of thin air. If you
Speaker 1: create So what Brad Sherman is saying is, if you
Speaker 1: learn how to use your mental capital. If you learn
Speaker 1: how to use your ideas to solve problems, you learn
Speaker 1: how to use your skills you developed to write code,
Speaker 1: you've learned marketing skills and organizational skills, and your business
Speaker 1: creates revenue. You've created it out of thin air. Is
Speaker 1: that what they're saying. That's what he's trying to say. Now,
Speaker 1: if you listen to the show on a regular basis,
Speaker 1: you know, I'm not a big fan of crypto he
Speaker 1: as a category because most of it is vaporware. Most
Speaker 1: of it is a scam, and I don't use the
Speaker 1: word scam lightly. What I mean is that people think
Speaker 1: they're buying one thing, a decentralized secure asset, and they're
Speaker 1: being sold something else that's neither decentralized nor secure, And
Speaker 1: many times there's rug poles and things like that. So
Speaker 1: I'm not a big fan of it as a category.
Speaker 1: But to say that they're printing money from thin air
Speaker 1: just shows how little Brad Sherman knows about what he's
Speaker 1: even talking about. He has no idea, of course he doesn't.
Speaker 1: He's a government bureaucrap. He's never created value in his
Speaker 1: entire life, so he has no idea what would say
Speaker 1: is how the sausage is made. He has no idea
Speaker 1: how businesses actually create value. He has no idea how
Speaker 1: people get paid by creating value. If he did, he
Speaker 1: would understand that what the crypto bros Have done is
Speaker 1: no different. I mean, it's different in many ways, but
Speaker 1: it is very similar to what Mark Zuckerberg did by
Speaker 1: creating a line of code in his college dorm room.
Speaker 1: And what the guys that started Airbnb from an Airbnb
Speaker 1: from a cow did. They wrote a line of code,
Speaker 1: they organized people, they created marketing, They went and raised
Speaker 1: money that created value for those people, and they made money.
Speaker 1: So the crypto ros did not create money out of
Speaker 1: thin air. They created something that enticed people to give
Speaker 1: them money US dollars. Now back to the government, the
Speaker 1: government is making money out of thin air. That's according
Speaker 1: to Brad Sherman's own words. Yes, the government is printing
Speaker 1: money out of thin air. So what are they doing
Speaker 1: to provide value? What is the government doing to provide
Speaker 1: any value to us? They're not. They didn't learn a skill.
Speaker 1: They didn't provide that skill to the marketplace. They didn't
Speaker 1: go build out marketing and go raise money. People willingly
Speaker 1: giving them money. No, that's not what the government does.
Speaker 1: The government hits a button on a keyboard to create
Speaker 1: more dollar units, not for us, not in exchange for value.
Speaker 1: They just inject those into the system. None of us
Speaker 1: get any say out of them. And what it does,
Speaker 1: instead of providing value to us, it steals our value away.
Speaker 1: Every time they create create one more currency unit, it
Speaker 1: makes the existing crypto, the existing currency units worth less, worthless.
Speaker 1: And so when you see prices going up steak, gas, milk, cheese, homes, travel,
Speaker 1: et cetera, when those prices are going up, what's really
Speaker 1: happening is the dollars are buying less and less. They're debasing.
Speaker 1: They're devaluing the dollar by creating more of them. And
Speaker 1: so it's not that prices are going up. They are,
Speaker 1: but the reason why prices are going up is because
Speaker 1: the value of that money is going down. That money
Speaker 1: buys you less, it takes more of those currency units
Speaker 1: to buy those same goods and services in the future.
Speaker 1: Now that's being done because, as Brad Truman said, the
Speaker 1: quiet part out loud, they're creating money from thin air. Now,
Speaker 1: this takes us to the big topic at hand, which
Speaker 1: is all over the news, which is the debt limit.
Speaker 1: The United States government, the global the number one global superpower,
Speaker 1: the homogeny, the reserve currency of the world. The United
Speaker 1: States government is broke. The United States Treasury, the treasury
Speaker 1: runs the government. It's like if you had a business,
Speaker 1: you had an accounting department. The treasury is like the
Speaker 1: accounting department. They're broke. They don't have enough income to
Speaker 1: cover their expenses, and they've taken on more debt and
Speaker 1: more debt and more debt, and now they don't have
Speaker 1: any more. So, for example, if you had a business
Speaker 1: and your expenses exceeded your income, and so you took
Speaker 1: a credit line from your bank, and then you went
Speaker 1: through that entire credit line, and you still didn't have
Speaker 1: enough revenue to cover your expenses. So then you went
Speaker 1: and got a credit card, and then you still couldn't
Speaker 1: get your business profitable, and so you took out another
Speaker 1: credit card, and then finally the bank and the credit
Speaker 1: cards are like hang on, hang on, hang on, no
Speaker 1: more credit for you. That's where the government's at five trillion,
Speaker 1: ten trillion, trillion, thirty trillion, thirty two trillion, and the
Speaker 1: government still can't be profitable. And now the credit lines
Speaker 1: are cut off. If you're just tune in, you're listening
Speaker 1: to the Mark mass Show talking about the decentralized Revolution.
Speaker 1: We're running through some big stuff. We're gonna talk about
Speaker 1: the treasury has only two weeks of money left, why
Speaker 1: the government default is more likely than ever, and the
Speaker 1: big problem. I'll be back with that in a more
Speaker 1: in a minute. Don't go away, all right, welcome back.
Speaker 1: If you're just tune in, you were listening to the
Speaker 1: Mark Moss Show, of course, always talking about the decentralized Revolution.
Speaker 1: We're talking about how our lawmakers are now saying the
Speaker 1: quiet part out loud. Brad Sherman says, Hey, you crypto bros.
Speaker 1: Created money out of thin air. You can't do that,
Speaker 1: but we're the government. We do. I explained that I'm
Speaker 1: not gonna go through that again, but the government needs
Speaker 1: to create more money out of thin air because the government,
Speaker 1: the US Treasury is broke literally meaning broke. As a
Speaker 1: matter of fact, let's hear directly from the head of
Speaker 1: the US Treasury again, kind of in a business analogy,
Speaker 1: this would be like your CFO telling you, let's hear
Speaker 1: exactly what Janet Yellen, the head of US Treasury is
Speaker 1: saying about this debt default that's looming here.
Speaker 2: Well, you know, I would say that if Congress doesn't
Speaker 2: raise the debt ceiling, the president will have to make
Speaker 2: some decisions about what to do with the resources that.
Speaker 1: We do have.
Speaker 2: And there are a variety of different options, but there
Speaker 2: are no good options. Every option is a bad option.
Speaker 1: First of all, that wasn't a bad signal. That's just
Speaker 1: how she talks. She has to labor over every single word,
Speaker 1: So that's how she talks about. There's no good options. Yeah,
Speaker 1: who would want to cut back on their spending? Who
Speaker 1: would want to live within a budget? Those are not
Speaker 1: good options. She says that the president will have to
Speaker 1: make some very difficult decisions. Yeah, not increasing the spending
Speaker 1: when you don't have the money. Those are very difficult decisions. Now,
Speaker 1: if you tune in regularly, you kind of already know
Speaker 1: this I talk about this has already been framed up.
Speaker 1: But look, this isn't a partisan thing. I don't want
Speaker 1: to turn this into a Republican Democrat. We happen to
Speaker 1: have a Democrat Biden in the office. Now, we had
Speaker 1: a Republican with Trump in before Trump spent more money
Speaker 1: than any president before him, and Biden wants to spend
Speaker 1: even more. Every president wants to spend more. And the
Speaker 1: reason why it's because we are in a debt based
Speaker 1: monetary system, which means the debt has to constantly expand
Speaker 1: or the whole thing falls apart. So it's not red
Speaker 1: or blue. Trump spent more than before him, and Biden
Speaker 1: wants to spend even more. But Biden has come out
Speaker 1: like swinging like crazy, passing like all types of bills
Speaker 1: like the Inflation Reduction Act, and they want to spend
Speaker 1: one point seven trillion dollars on all these new programs
Speaker 1: like eighty billion to bring on a whole bunch of
Speaker 1: new IRS, agents, types of things like that, and you know, millions,
Speaker 1: hundreds of millions dollars to give to other countries to
Speaker 1: study gender studies and things like that. Money that probably
Speaker 1: doesn't need to be spent. Money that might be good
Speaker 1: to be spent if you wanted to and you had
Speaker 1: some extra money and you thought it was worthwhile, but
Speaker 1: certainly not when you're broke and your income is exping
Speaker 1: your income is your expenses are exceeding your income, so
Speaker 1: no good options left. Now, let's talk about some of
Speaker 1: these options. So option one is the Republican said, look,
Speaker 1: here's what we'll do. Will allow you to increase the
Speaker 1: debt ceiling another one point five trillion dollars, but you're
Speaker 1: going to have to cut a couple of things because
Speaker 1: that's not going to be enough money. So a couple
Speaker 1: of things you have to cut would be like cut
Speaker 1: some of this the irs agents for example. Also, you're
Speaker 1: going to need to cancel that student loan forgiveness that
Speaker 1: you put through because we don't really have the money
Speaker 1: to do that. And also, what we want to do
Speaker 1: is we want to start getting energy out of the
Speaker 1: United States against we can become energy independent because that
Speaker 1: will really unleash the economy and allow us to grow
Speaker 1: out of this. And Biden says, no deal. So when
Speaker 1: Jane yone's saying that he has to make some tough decisions,
Speaker 1: one of the tough decisions would be, am I willing
Speaker 1: to spend less money in the future? Still increase it
Speaker 1: still go up by one point five trillion, but less
Speaker 1: than I want? And that's where the stealmate is. I
Speaker 1: want you to understand that the stealmate is the one
Speaker 1: point five trillion more isn't good enough, and that's what
Speaker 1: they're fighting over. Now there's talks of a government default
Speaker 1: and that is really running hot. As a matter of fact,
Speaker 1: that seems to be the base case that's going on here.
Speaker 1: Let's play this clip from Janet Yellen and hear directly
Speaker 1: from her on what she's saying about this is.
Speaker 2: If re Treasury secretary has known the only option that
Speaker 2: really loves our economy in good shape is and our
Speaker 2: financial system is raising the dead ceiling and making clear
Speaker 2: that Congress stands behind the basic principle that America pays
Speaker 2: its bills. We're not beat country.
Speaker 1: So every economist knows, right, every economist knows that the
Speaker 1: only way forward is for the US government to continue
Speaker 1: to raise the debt ceiling, otherwise it leaves our economy
Speaker 1: in bad shape. Like what like, hang on, did you
Speaker 1: know that? Let me know? If you know that, hit
Speaker 1: me up on social media. I want to hear from
Speaker 1: you guys. Hit me up on social media at one
Speaker 1: Mark Moss on Instagram or Twitter. I'm pretty active on
Speaker 1: both those platforms, And let me know, did you know that?
Speaker 1: Did you know that? Every economist knows that we have
Speaker 1: to increase the debt ceiling in order to continue to
Speaker 1: pay our bills. Now more people are waking up to
Speaker 1: this than ever before. So this is a good thing
Speaker 1: in a long term perspective because people are starting to
Speaker 1: wake up to this. But listen to the sheer insanity
Speaker 1: of that. Everyone knows we have to increase the debt
Speaker 1: ceiling in order to pay our bills. So that's going
Speaker 1: back to your business analogy. Your bank won't give you
Speaker 1: another credit line, you can't get any more credit cards,
Speaker 1: and you go back to the bank and say, look,
Speaker 1: everyone knows if you don't give me another credit line,
Speaker 1: my business goes under. What's the bank going to tell you?
Speaker 1: They can tell you to pound sand I mean, that's
Speaker 1: the most ridiculous thing ever. But then the final part
Speaker 1: that she said so that other nations don't think we're
Speaker 1: a deadbeat nation. So imagine again, going back to your bank.
Speaker 1: I know you said you won't give me to our
Speaker 1: credit lines, and I know I've maxed out fifteen credit cards,
Speaker 1: but look, if you don't give me, if you don't
Speaker 1: give me another credit line, you know my business is
Speaker 1: going to go under and people will think I'm a
Speaker 1: deadbeat company. Think about that, Well, if you can't pay
Speaker 1: your bills. You're not profitable, You've taken on more and
Speaker 1: more debt that you have no way of ever repaying.
Speaker 1: Aren't you a deadbeat company? You're not going to pay
Speaker 1: those people their money back. Why would anyone loan you
Speaker 1: are deadbeat? So what she's saying is wrong. I put
Speaker 1: out a tweet. I believe it was yesterday earlier this week.
Speaker 1: I forget exactly what day, and I showed a chart
Speaker 1: and I like to I like to post a lot
Speaker 1: of charts on my main YouTube channel, Mark Moss, as
Speaker 1: well as on Twitter as well. Again follow me on
Speaker 1: those platforms if you're not. And I like to show
Speaker 1: the charts because I want to show you the size
Speaker 1: and the speed of these moves. And the chart comes
Speaker 1: from FRED, which is the Federal Reserve's data board, and
Speaker 1: it showed that the interest on the debt, So again
Speaker 1: they want to raise the debt selling from thirty one
Speaker 1: trillion to know almost thirty two to another one and
Speaker 1: a half. The interest that's owed on that debt is
Speaker 1: now equal to the amount of money that we spend
Speaker 1: just on defense spending for the military. So we're paying
Speaker 1: just as much on debt as we are on defense.
Speaker 1: Now we spend We spend more on defense than the
Speaker 1: next ten countries combined combined. So everyone from number two China, Russia, everybody,
Speaker 1: the next ten people, we spend more than that combined. Now,
Speaker 1: so the debt, the interest on the debt is more.
Speaker 1: Now does that sound bad? Did you know that the
Speaker 1: Federal Reserve has raised rates at the highest and fastest
Speaker 1: rate in history. And when the debt was taken on,
Speaker 1: we were in the zero zero point five range. Today
Speaker 1: we're at five percent. About thirty percent of that debt,
Speaker 1: the thirty two trillion dollars has to be refinanced in
Speaker 1: the next twelve months at these new five percent rates.
Speaker 1: What do you think happens when you refinance thirty percent
Speaker 1: of your thirty two trillion from zero percent to five percent?
Speaker 1: Like if you took on thirty percent of your debt
Speaker 1: for your business, you had got like on a zero
Speaker 1: rate transfer credit card, and then all of a sudden
Speaker 1: it resets at five percent. What is that going to
Speaker 1: do to you in a time when the interest is
Speaker 1: already meeting or exceeding defense spending, in a time when
Speaker 1: you can't already make those obligations. It's insanity. If you're
Speaker 1: just tune in. You're listening to the Mark Maus Show.
Speaker 1: We're talking about the insanity of the debt crisis that's happening,
Speaker 1: the unsustainable debt. I got a lot more to cover
Speaker 1: when I come back on the potential for a government default,
Speaker 1: which is I'm thinking is probably the base case. It
Speaker 1: looks like that's where we're headed. What does that mean
Speaker 1: and what are the possible solutions to protect yourself and
Speaker 1: profit from all this. We'll talk about all that in
Speaker 1: a minute when I come back. Don't go away, I'll
Speaker 1: be right back. All right, Welcome back. If you just
Speaker 1: tune in, you're listening to the Mark mass Show. Taking
Speaker 1: it through this debt crisis that we're in. We've been
Speaker 1: covering how the government admitted that they're printing money from
Speaker 1: thin air and now this debt crisis that's looming now.
Speaker 1: I talked about the government having only less than two
Speaker 1: weeks of money left. Now, of course they show us this.
Speaker 1: They show us how much money they have in their
Speaker 1: reserve account, and so we can see their checking account.
Speaker 1: We can also see how fast it's been drawing down.
Speaker 1: So we basically just extrapolate what the current burn rate
Speaker 1: is and then based off this current burn rate, how
Speaker 1: much do you have left? And then how long will
Speaker 1: that last? It's not hard to do, simple elementary math,
Speaker 1: almost right, And so all we can see is that
Speaker 1: based off of those numbers, we see that we have
Speaker 1: about two weeks left. The treasury account is down to
Speaker 1: one hundred and eighty five billion, which is a lot
Speaker 1: of money, but not when you're talking about trillions of dollars.
Speaker 1: The government is running a two point two trillion dollar
Speaker 1: deficit right now, so that means the deficit means that
Speaker 1: their expenses exceed their income by two point two trillion. Now,
Speaker 1: the treasury has one hundred and eighty five billion, the
Speaker 1: cash balance is down just down thirty billion just from yesterday,
Speaker 1: and only two point two billion in tax revenue came in,
Speaker 1: because right, we have tax revenue coming in and tax
Speaker 1: you know, taxes were doing April fifteenth last month, and
Speaker 1: so the tax revenue is coming in, but the most
Speaker 1: of that tax revenue is already in, like you should
Speaker 1: have already paid that that's already in, which had a
Speaker 1: little bit more trickle in two point two billion, but
Speaker 1: we withdrew thirty you know what I'm saying. The expenses
Speaker 1: are way exceeding the income, and so at this run rate,
Speaker 1: we have about two weeks left. Now, this is obviously unsustainable.
Speaker 1: I don't have to an elementary kid could figure that out.
Speaker 1: That's unsustainable. The US government debt has gone from one
Speaker 1: point two trillion to thirty one point four trillion just
Speaker 1: since nineteen eighty. Thirty times in thirty years, well, I
Speaker 1: guess without forty years, thirty times in forty years, one
Speaker 1: point two jollion to thirty one point four joian. That
Speaker 1: is not sustainable. In nineteen eighty, going back to the
Speaker 1: one point two trillion, the debt to GDP. So back
Speaker 1: to a business, you have your your revenue, your gross revenue,
Speaker 1: the amount of products that you produce, goods and service
Speaker 1: that you produce, and then you have your debt. In
Speaker 1: nineteen eighty, the debt in the United States government debt
Speaker 1: to the GDP was twenty six percent. This year it's
Speaker 1: one hundred and twenty three percent. So what does that mean, Well,
Speaker 1: that means that what they do is they take on debt.
Speaker 1: Just like your business. You would take on debt to
Speaker 1: buy a new piece of equipment, a new van, new
Speaker 1: truck hire, somebody and you hope that by buying that
Speaker 1: new piece of equipment, and you take on that little
Speaker 1: bit of debt. You know it's going to cost you
Speaker 1: a hundred bucks a month to add on this piece
Speaker 1: of equipment, but that piece equipment should make you five
Speaker 1: hundred a month. So you take on one dollar of
Speaker 1: debt to add five dollars of revenue. That'd be the goal.
Speaker 1: And so the United States government has done right. They're
Speaker 1: trying to take on debt to try to grow. The
Speaker 1: problem is is that at some point the debt becomes
Speaker 1: unsustainable and it actually starts holding you back. It's like
Speaker 1: trying to run up a hill with a backpack full
Speaker 1: of rocks. And so that number really starts heating up
Speaker 1: around ninety percent debt to GDP, and you're starting to
Speaker 1: get less growth than the dollar of debt. And so
Speaker 1: in the example I gave, so like in a nineteen
Speaker 1: eighty at twenty six percent debt to GDP, you know,
Speaker 1: I don't have the exact data in front of me,
Speaker 1: but potentially, you know, one dollar of debt would give
Speaker 1: you back the five dollars of growth. Once you get
Speaker 1: up to ninety percent, you're getting one dollar of growth
Speaker 1: for one dollar of debts, it's not really doing anything
Speaker 1: for you. Now when you get to one hundred and
Speaker 1: five ten percent twenty one hundred and twenty three percent
Speaker 1: were're at now, now you're getting like fifty cents of
Speaker 1: growth for the dollar of debt, which basically means that
Speaker 1: you're digging your hole faster than your filling out of it.
Speaker 1: If you've ever been to the beach, I live at
Speaker 1: the beach, some there all the time, but maybe I'm
Speaker 1: sure you've probably been there, and you see people like kids,
Speaker 1: they'll go down kind of by the water and they'll
Speaker 1: start digging a hole. A lot of kids like to
Speaker 1: do that, and if you're close by the water, you'll
Speaker 1: see it starts filling up with water. They're digging and
Speaker 1: digging and digging. But no matter how much they dig,
Speaker 1: they're never going to dig their way out of the
Speaker 1: water because the water is underground right here on the
Speaker 1: ocean there. And that's basically the same situation that we're in.
Speaker 1: No matter how much debt they take on at this point,
Speaker 1: they can't grow their way out of it. And of course,
Speaker 1: governments usually resort to fiscal stimulus during a recession, which
Speaker 1: is where we're going into right now, which means even
Speaker 1: more debt. But when a government's running two point two
Speaker 1: trillion dollars of deficits already, and then you know, and
Speaker 1: they're doing that during times of economic expansion, times when
Speaker 1: things are good, times, when the economy is growing. How
Speaker 1: the heck are they supposed to run that stimulus during
Speaker 1: a recession. That's not good. That's certainly good, which is
Speaker 1: why this default is looking more and more likely. As
Speaker 1: a matter of fact, like I said, there's this stellmate
Speaker 1: where the Republicans are like, look, okay, fine, we'll increase
Speaker 1: that limit. We'll give you the extra one point five
Speaker 1: trillion you want, but you are going to have to
Speaker 1: cut some of your potential spending bills like the IRS
Speaker 1: Bill for example. So we're going to give you more,
Speaker 1: but like we're not. We're going to limit the increases
Speaker 1: to one percent a year. So this future spending that
Speaker 1: you wanted, you're going to have to cut some of
Speaker 1: that out. And that's where the stellmate is. And so
Speaker 1: the Biden administration says, no deal, we won't do it,
Speaker 1: and the Republicans seem to be pretty steadfast on this number.
Speaker 1: As a matter of fact number forty five. President Donald
Speaker 1: Trump came out and urged the Republicans to get the
Speaker 1: spending cuts from the Democrats before they concede. So he's
Speaker 1: basically said, look, don't don't don't cave, get those concessions
Speaker 1: from the Biden administration, reduce spending, or if it won't happen,
Speaker 1: then he says, to push the US into its first
Speaker 1: ever default. That was an interview that he did with CNN. Quote.
Speaker 1: I say to the Republicans out there, congressman, senators, if
Speaker 1: they don't give you massive cuts, you're going to have
Speaker 1: to do a default. In quote, Trump said. He went
Speaker 1: on to say, quote, I don't believe they're going to
Speaker 1: do a default because I think the Democrats will absolutely cave,
Speaker 1: will absolutely cave because you don't have to have that happen.
Speaker 1: But it's better than what we're doing right now, because
Speaker 1: we're spending money like drunken sailors. End quote. So he says, look,
Speaker 1: hold strong, what do you think do you think the
Speaker 1: government should just continue to spend like drunken sailors? Do
Speaker 1: you think the debt doesn't matter? Do you think it
Speaker 1: do you think it matters if these people won't get
Speaker 1: paid back. No, you've heard we owe the money to ourselves, right,
Speaker 1: well do we? If you have a retirement account, mutual funds,
Speaker 1: four oh one k's pensions, it's probably in government debt.
Speaker 1: You are probably the one loaning the money. Your money
Speaker 1: is loan to your bank. I'm sure you've heard me
Speaker 1: say that before. The money in the bank is not
Speaker 1: your money. The bank owes you money legally. That's a
Speaker 1: big deal. And the bank owns the government debt. So
Speaker 1: if the government defaults on the debt, they're not paying
Speaker 1: you your pension or retirement. They're not paying the bank back,
Speaker 1: and then the bank can't pay you back. That's how
Speaker 1: that works. So it's a big deal. Should they continue
Speaker 1: spending when they can't already pay? Now? Again, what the
Speaker 1: Republicans are doing is saying we need to take the
Speaker 1: spending all the way back to twenty twenty two. Last year, now,
Speaker 1: if I remember correctly, last year was pretty dang good.
Speaker 1: Like the world didn't end. We had social programs, like
Speaker 1: the roads were there. Like if we just held spending
Speaker 1: to where we were last year, does the world end?
Speaker 1: Is it that bad? Again? I'd love to hear from you.
Speaker 1: Hit me up on social media and let me know
Speaker 1: at one Mark Moss. But it's looking like most Americans
Speaker 1: are starting to say they don't agree. As a matter
Speaker 1: of fact, they don't want to see the debt ceiling
Speaker 1: increased anymore. White House officials hint at possible short term
Speaker 1: debt deal to advert default. Potentially they might save the deal.
Speaker 1: New York Times say that meet the House Republicans who
Speaker 1: Democrats hope will defect on the debt limits. So now
Speaker 1: what the Democrats are doing is they're trying to get
Speaker 1: a couple of Republicans to switch sides and vote with them.
Speaker 1: A long shot Democratic effort to force a debt limit
Speaker 1: increase to the floor hinges on at least five GOP defections.
Speaker 1: These House Republicans are considered likeliest. So now they're trying
Speaker 1: to literally get people to switch sides so they can
Speaker 1: ram this through. But like I said, I think it's
Speaker 1: fifty eight percent of Americans do not support a debt increase.
Speaker 1: But again, I'd love to hear what you have to say.
Speaker 1: Hit upon social media out one Mark Moss and let
Speaker 1: me know if you're just tune in you're listening to
Speaker 1: the Mark Moss Show. Of course we talk about the
Speaker 1: decentralized revolution, the way the world is breaking apart from
Speaker 1: a centralized world to a decentralized world. A centralized world
Speaker 1: that's controlled by the US government, homogeny of the US
Speaker 1: dollar reserve system that is obviously falling apart right now,
Speaker 1: what comes next? A very decentralized world. I got a
Speaker 1: whole lot more to cover. Still, we're not done yet.
Speaker 1: We're going to talk about the chances the betting markets
Speaker 1: are giving of a debt default. And we're going to
Speaker 1: talk about the big problem and the big solutions that
Speaker 1: we have to protect ourselves and our nation and the world.
Speaker 1: So we're gonna talk about all that in a minute.
Speaker 1: When I come back. You're listening to the Mark Maas
Speaker 1: Show talking about the decentralized Revolution. I'll be back with
Speaker 1: all that and more in a minute. Don't go away,
Speaker 1: I'll be he back. All right, Welcome back. If you're
Speaker 1: just tuning in, you're listening to the Mark Maas Show.
Speaker 1: We're talking about each and every week, the decentralized revolution.
Speaker 1: Of course, the way the world changes through the lens
Speaker 1: of politics, finance, and technology. We look at it through
Speaker 1: those three lenses because it helps us to bring context
Speaker 1: and clarity understand to what's going on now. We're talking
Speaker 1: about the insanity of Brad Sherman's comments of the crypto
Speaker 1: bros printing money from thin air, and how he clearly
Speaker 1: doesn't understand what money is, or how it's made, or
Speaker 1: what value is. But then the highlight of that the
Speaker 1: government can print money from the air and what that means.
Speaker 1: We talked about the debt ceiling, We talked about the
Speaker 1: potential debt default, which it looks like it's starting to
Speaker 1: really come to fruition. As a matter of fact, all
Speaker 1: markets are betting markets, and so what does that mean.
Speaker 1: That means when I buy an asset in the market,
Speaker 1: whether it's a house, well, maybe not a house, because
Speaker 1: you might buy it for different reasons. But in the market,
Speaker 1: like the stock market, for example, if I buy an asset,
Speaker 1: I'm betting basically that the price of that stock will
Speaker 1: go up or I'm betting it will go down if
Speaker 1: I'm short selling it. Either way, I'm betting on a
Speaker 1: future valuation of that asset. So all markets are betting markets. Now.
Speaker 1: The stock markets, where most people focus on aren't really
Speaker 1: the best markets to look at, not where professional investors look,
Speaker 1: those are trailing indicators that tell you kind of what happened.
Speaker 1: So then the next best place to look would be
Speaker 1: the bond market, and that's where professional investors look the
Speaker 1: debt of these companies and then the real market to
Speaker 1: look at. According to one of my good friends, my
Speaker 1: as brother, I'm talking about Greg Foss. He's been a
Speaker 1: thirty year debt trader bond. He talks about the credit
Speaker 1: default swaps, the CDs market. Now, the CDs market is
Speaker 1: basically where investors will hedge their bets. They'll buy insurance
Speaker 1: against their position. In case the position crashes, they have
Speaker 1: money for that. It got kind of popularized, we'll say,
Speaker 1: in the two thousand and eight Great financial Crash, and
Speaker 1: it was really popularized by the book and then the
Speaker 1: movie called The Big Short. And if you haven't read
Speaker 1: the book or watched the movie, I would highly recommend it.
Speaker 1: As a matter of fact, I'm probably due for watching
Speaker 1: it again. I read the book when it first came out.
Speaker 1: It was amazing. The book's always better the video. The
Speaker 1: movie's good. We had some big name actors, Christian Bale
Speaker 1: and forget all the actors in it anymore. But anyway,
Speaker 1: it's a good movie, probably worth watching again for myself,
Speaker 1: but they really highlight what happened. And so an investor
Speaker 1: who is named in real life Kyle Bass, basically made
Speaker 1: these bets against the housing crisis, knowing that the housing
Speaker 1: crisis was going to fail, knowing that the banks owned
Speaker 1: all these mortgage backed securities, these nbs, and it was
Speaker 1: a big mess go through all that. But basically he
Speaker 1: went and started buying insurance against that using the CDs,
Speaker 1: the credit default swaps. Now, one thing about a CDs
Speaker 1: is that you don't have to own the asset to
Speaker 1: buy insurance on it. So it'd be like if you
Speaker 1: owned a house on a flood zone. For example, I
Speaker 1: saw like a dam was about to break, I could
Speaker 1: go buy insurance on your house and if it got flooded,
Speaker 1: I would win. But you can't do that unless you
Speaker 1: own the asset. You can't buy car insurance or house
Speaker 1: insurance for somebody else. But with credit default swaps you can,
Speaker 1: and so that's really the best market. It's sort of
Speaker 1: like when they run like presidential election polls, the polls
Speaker 1: aren't very accurate. The betting markets on who's going to
Speaker 1: win the pole is very accurate, and the reason why
Speaker 1: is because people are putting their money where their mouth is.
Speaker 1: They're putting putting skin in the game, so to speak.
Speaker 1: And so the CDs market, credit default swap market is
Speaker 1: that market. It tells us what's going on there. And
Speaker 1: the credit default swap market, the price of the CDs
Speaker 1: swaps are going through the roof, and it's pricing in
Speaker 1: that we're likely most likely to have and a default. Now,
Speaker 1: when we default, there's two types of default. There's a
Speaker 1: hard default and there's a soft or a technical default. Okay,
Speaker 1: So a hard default would be where the government just
Speaker 1: doesn't pay any debt. Hey, sorry, we owe thirty two jrillion,
Speaker 1: forget it, we ain't paying. That'd be a hard default.
Speaker 1: That's not gonna happen. That will that will most likely
Speaker 1: never happen. The reason why is because no, no government
Speaker 1: with a money printer will do a hard default. They're
Speaker 1: gonna print the money. As Jenny Ellen said, we'll have
Speaker 1: to print the money. We'll take on the debt right now.
Speaker 1: A soft or a technical default is different. If this
Speaker 1: gets delayed by one day and they squabble over it
Speaker 1: and it goes a day long, that's a technical default, okay.
Speaker 1: So it's pricing in a technical or a soft default,
Speaker 1: not a hard default. So don't don't get alarmed over this.
Speaker 1: That's not gonna happen. But like I said, this is
Speaker 1: this is this is what's happening now. We're starting to
Speaker 1: see really a changing of the guard with this, and
Speaker 1: we're seeing a lot of distrust happening in the government
Speaker 1: regardless of what happens, regardless of the outcome of this
Speaker 1: whole debacle. Either way, it's eroded the trust and the
Speaker 1: confidence in the government, and it's exposed that the government
Speaker 1: the empire wears no clothes. It's exposed that your business
Speaker 1: campaign its bills. It's exposed that unless they continue this
Speaker 1: Ponzi scheme, they can't succeed. And people are really starting
Speaker 1: to turn their back against the Biden administration because they're
Speaker 1: the ones running the show right now, and we're starting
Speaker 1: to see them, mainstream media even turning its back against Biden.
Speaker 1: We saw a poll that was run just this week
Speaker 1: and it shows fifty four percent of pose raising the
Speaker 1: dead ceiling, and interesting enough, Tidbit says that the opposition
Speaker 1: was stronger from those without a college degree. I thought
Speaker 1: that was pretty interesting. You we think it would be
Speaker 1: the opposite. The college degree would be smarter, they'd know
Speaker 1: what's more going on. But I think the smarter people
Speaker 1: who went to college got indoctrinated and they think that
Speaker 1: it's just okay, we can spend forever. And that just
Speaker 1: kind of goes to show you how much college is
Speaker 1: act we teach you. Now, it's no doubt, No, it's
Speaker 1: not a mystery why the mainstream media and why people
Speaker 1: are starting to turn their back on this. We can
Speaker 1: see in just two years of the Biden administration, a
Speaker 1: typical American family has lost over seven thousand dollars in
Speaker 1: purchasing power. Seven thousand dollars. What does that mean. Well,
Speaker 1: that means that let's say that you make let's just
Speaker 1: use easy numbers. Let's say that you make fifty bucks
Speaker 1: an hour. You may not make that much, let's just
Speaker 1: say you make that. That's one hundred and forty hours
Speaker 1: that you have to work extra just to have the
Speaker 1: exact same quality of life that you had before. Now,
Speaker 1: if we divide that by twelve months, that's eleven and
Speaker 1: a half hours per month of your life that they
Speaker 1: have stolen just for you to maintain. So, if you
Speaker 1: had you know, a house, a car, you ate steak
Speaker 1: twice a week, You had, you know, one vacation a year,
Speaker 1: a bunch of kids, new shoes, you know, twice a year, whatever,
Speaker 1: whatever your standard of living was. Now, in order to
Speaker 1: have that exact same standard of living, you now have
Speaker 1: to work almost twelve hours more per month. Now that's
Speaker 1: if you make fifty bucks an hour, if you make
Speaker 1: ten bucks an hour, Just do the math. That's still
Speaker 1: in your life. That's twelve hours that you could have
Speaker 1: put into the gym so you were healthy. That's twelve
Speaker 1: hours you could have put into your relationship with your
Speaker 1: wife or your kids so you could be a better husband, father, mother,
Speaker 1: or whatever. That's twelve hours you could have started a
Speaker 1: new business, you could become financially free. Twelve hours you
Speaker 1: could have gone to school to learn your skill. Whatever
Speaker 1: it's your life. You do however you want, go sit
Speaker 1: on the beach. I don't care. The point is the
Speaker 1: government has taken that away by printing money, which is
Speaker 1: no wonder why home ownership affordabilities at an all time low.
Speaker 1: Of course, government spending, national debt as at all time high.
Speaker 1: Now we do have a solution to this, and of
Speaker 1: course that's bitcoin. Bitcoin is a finite amount, no more
Speaker 1: than twenty one million bitcoin, whatever it be mine. Now
Speaker 1: there it is. You can break down. Just like a
Speaker 1: dollar breaks down into one hundred cents, a bitcoin breaks
Speaker 1: down into a hundred million SATs. So there's plenty to
Speaker 1: go around. But the fact is that nobody controls it,
Speaker 1: and nobody can create more of it, like the Federal
Speaker 1: Reserve does with the dollar. In addition to that, if
Speaker 1: I want to hold it, not only can they not
Speaker 1: print more of it to steal my value a way
Speaker 1: that way, they also can't take it from my bank.
Speaker 1: And if I want to send it to you, nobody
Speaker 1: can censor that. Nobody can stop it, blocking or prevent it.
Speaker 1: And so while this is bad for America, While this
Speaker 1: is bad for Americans, and it's bad for the whole
Speaker 1: world holding dollars, it's bad for the whole hold everyone
Speaker 1: gets caught up in this. It's not it's not something
Speaker 1: to cheer. It is bringing attention to the insanity of
Speaker 1: the Ponzi scheme that's the United States. It's bringing attention
Speaker 1: to the insanity of Jenny Yellen of the US Treasury
Speaker 1: and the Fed roome pal and it's highlighting that we
Speaker 1: have a solution. It's sitting there right in front of us,
Speaker 1: the Bitcoin network. And as the trust, as the confidence
Speaker 1: continues to become eroded, people will be looking for solutions. Now.
Speaker 1: This happens a lot faster in other countries like Lebanon,
Speaker 1: or Turkey or Argentina Venezuela, where they're having double triple
Speaker 1: digit inflation. But it's coming, it's coming. That's what this
Speaker 1: debt ceiling is showing us. That's what Janet Yellen just said.
Speaker 1: We have to continue to take on more debt if
Speaker 1: we want to continue to paying our bills, So that
Speaker 1: means more money printing ahead. That means more loss of
Speaker 1: your purchasing power, That means higher prices, and it only
Speaker 1: accelerates the law of diminishing returns. And so we have bitcoin.
Speaker 1: Thank god for bitcoin. You're listening to the Mark Mass Show.
Speaker 1: We've been talking about the insanity and the unsustainability of
Speaker 1: the debt crisis and the solutions that we have. That's
Speaker 1: what I got. Thanks so much for listening.