1 00:00:00,160 --> 00:00:03,080 Speaker 1: The Bank of Japan versus the Federal Reserve and how 2 00:00:03,120 --> 00:00:05,800 Speaker 1: their battle crashed the market, and of course what this 3 00:00:05,920 --> 00:00:09,240 Speaker 1: means for you now in today's over financialized world, the 4 00:00:09,280 --> 00:00:12,840 Speaker 1: battle between major central banks can change the asset prices 5 00:00:13,080 --> 00:00:15,240 Speaker 1: in the blink of an eye, and today the stakes 6 00:00:15,240 --> 00:00:18,600 Speaker 1: have never been higher. Japan and the Federal Reserve are 7 00:00:18,600 --> 00:00:21,599 Speaker 1: locked in a battle that sent shockwaves through the entire 8 00:00:21,680 --> 00:00:22,920 Speaker 1: global markets, and the. 9 00:00:22,920 --> 00:00:25,000 Speaker 2: Aftermath could change everything. 10 00:00:25,079 --> 00:00:27,680 Speaker 1: Now what happened, Well, just a few days ago, Japan 11 00:00:27,720 --> 00:00:31,920 Speaker 1: took an unexpected and very bold step that nobody thought 12 00:00:31,960 --> 00:00:34,360 Speaker 1: that they could or that they would do this, and 13 00:00:34,400 --> 00:00:37,479 Speaker 1: basically they raise interest rates against all odds. Now, this 14 00:00:37,600 --> 00:00:40,760 Speaker 1: was a direct challenge to the Federal Reserves dominance and 15 00:00:40,800 --> 00:00:44,960 Speaker 1: has thrown markets into complete chaos. But why did they 16 00:00:45,000 --> 00:00:47,400 Speaker 1: do it and how does this impact you? 17 00:00:47,680 --> 00:00:47,880 Speaker 2: Now? 18 00:00:47,880 --> 00:00:49,600 Speaker 1: In this video, we're going to dive deep into the 19 00:00:49,680 --> 00:00:52,960 Speaker 1: economic chess game that's being played on a global scale. 20 00:00:53,120 --> 00:00:54,000 Speaker 2: We're going to look at. 21 00:00:53,920 --> 00:00:57,400 Speaker 1: How Japan's strategic move against the Fed isn't just about 22 00:00:57,440 --> 00:01:01,560 Speaker 1: saving their currency, it's about redefining global financial power. We're 23 00:01:01,560 --> 00:01:04,200 Speaker 1: going to look at the hidden strategies that traders around 24 00:01:04,200 --> 00:01:07,680 Speaker 1: the world were using and how they're all now unraveling, 25 00:01:07,880 --> 00:01:10,919 Speaker 1: and of course what all this means for your investments 26 00:01:11,040 --> 00:01:14,880 Speaker 1: and your financial future. Now, having this information is going 27 00:01:14,959 --> 00:01:16,840 Speaker 1: to make sure that you're ready to capitalize on the 28 00:01:16,920 --> 00:01:20,479 Speaker 1: risks and the opportunities at play, and if you want 29 00:01:20,480 --> 00:01:21,800 Speaker 1: to protect and grow your wealth. 30 00:01:21,600 --> 00:01:24,000 Speaker 2: The two doesn't. So let's go real quick. 31 00:01:24,040 --> 00:01:25,720 Speaker 1: If you're new the general, my name is Mark Moss, 32 00:01:25,720 --> 00:01:28,160 Speaker 1: and I've been investing my own money in these turbulent 33 00:01:28,160 --> 00:01:31,120 Speaker 1: markets for decades. Now, you know the same smooth sea's 34 00:01:31,160 --> 00:01:32,240 Speaker 1: never made a skilled sailor. 35 00:01:32,319 --> 00:01:34,679 Speaker 2: Well, I've swim in the most turbulent waters. 36 00:01:34,720 --> 00:01:38,320 Speaker 1: Now today, on top of making these investing educational videos 37 00:01:38,440 --> 00:01:41,800 Speaker 1: and coaching thousands of investors on navigating these markets, I'm 38 00:01:41,800 --> 00:01:44,880 Speaker 1: also a partner in a global hedge fund. In this morning, 39 00:01:45,160 --> 00:01:47,920 Speaker 1: we are really busy understanding all of this and of 40 00:01:47,960 --> 00:01:51,480 Speaker 1: course making the corresponding moves. So you're going to get 41 00:01:51,480 --> 00:01:53,920 Speaker 1: the research fresh right now so you can go make 42 00:01:53,960 --> 00:01:56,160 Speaker 1: the same moves that you need to make as well. 43 00:01:56,240 --> 00:01:57,480 Speaker 2: All right, let's get into this. 44 00:01:59,320 --> 00:02:04,240 Speaker 1: All right, we are talking about Japan's desperation, Japan's unexpected move. 45 00:02:04,280 --> 00:02:07,280 Speaker 2: Now, we talked about sort of this global supremacy over 46 00:02:07,400 --> 00:02:08,239 Speaker 2: monetary order. 47 00:02:08,360 --> 00:02:10,079 Speaker 1: And really when we think about this, we have to 48 00:02:10,160 --> 00:02:12,880 Speaker 1: understand that there are just well there's central banks and 49 00:02:12,919 --> 00:02:15,519 Speaker 1: then there's major central banks. So there's I don't know, 50 00:02:15,560 --> 00:02:17,919 Speaker 1: one hundred and sixty one hundred and seventy central banks, 51 00:02:17,960 --> 00:02:20,800 Speaker 1: but there's four major central banks, and they are, of 52 00:02:20,800 --> 00:02:22,840 Speaker 1: course the Federal Reserve the United States the top of 53 00:02:22,840 --> 00:02:25,400 Speaker 1: the heap, right, the reserve currency of the world. 54 00:02:25,400 --> 00:02:28,000 Speaker 2: Then below that we have the Bank of Japan, which 55 00:02:28,040 --> 00:02:29,000 Speaker 2: we're talking about here. 56 00:02:29,160 --> 00:02:31,440 Speaker 1: We have the ECB, the European Central Bank, and we 57 00:02:31,480 --> 00:02:33,960 Speaker 1: have the PBOC, we have China. So those are the 58 00:02:34,000 --> 00:02:36,640 Speaker 1: major central banks. Now, the dollar is a reserve crency 59 00:02:36,639 --> 00:02:39,760 Speaker 1: the world, so the FED sort of drives the market, 60 00:02:40,000 --> 00:02:42,360 Speaker 1: but not every country likes that, and so there's this 61 00:02:42,440 --> 00:02:43,359 Speaker 1: battle for supremacy. 62 00:02:43,360 --> 00:02:45,160 Speaker 2: We're going to talk about that. And they did a 63 00:02:45,200 --> 00:02:45,799 Speaker 2: desperate move. 64 00:02:45,840 --> 00:02:48,359 Speaker 1: Now when I say desperate, they did something that nobody 65 00:02:48,360 --> 00:02:51,919 Speaker 1: thought was possible. Basically, Japan has been the last couple 66 00:02:52,040 --> 00:02:55,120 Speaker 1: decades of what we call stagflation, the lost decades as 67 00:02:55,160 --> 00:02:57,919 Speaker 1: they call it in Japan, where basically the markets crashed, 68 00:02:57,919 --> 00:02:59,919 Speaker 1: everything crashed, and they haven't been able to get any grow. 69 00:03:00,160 --> 00:03:03,400 Speaker 1: They've had no inflation in the market. So Japan had 70 00:03:03,600 --> 00:03:05,400 Speaker 1: rates basically at zero. As matter of fact, they had 71 00:03:05,480 --> 00:03:08,600 Speaker 1: rates negative for a really long period of time. Just 72 00:03:08,760 --> 00:03:10,760 Speaker 1: recently we're going to go through this, but just recently 73 00:03:10,800 --> 00:03:13,080 Speaker 1: they were ady to get them back up to zero 74 00:03:13,440 --> 00:03:15,799 Speaker 1: and a little bit above zero. Nobody's out they could 75 00:03:15,840 --> 00:03:19,760 Speaker 1: actually raise them, and they did. They caught everybody off guard, 76 00:03:20,000 --> 00:03:23,400 Speaker 1: and that's what's causing the whole world to panic right now. 77 00:03:23,760 --> 00:03:25,360 Speaker 1: And what we can see here, we can see it 78 00:03:25,360 --> 00:03:27,399 Speaker 1: in this chart right here. You can see how big 79 00:03:27,440 --> 00:03:29,440 Speaker 1: of a panic, how big of an abrupt move this is. 80 00:03:29,639 --> 00:03:32,919 Speaker 1: So the Japanese gen priced in the US dollar have 81 00:03:33,040 --> 00:03:35,720 Speaker 1: been going down, down, down, down, down, down down for 82 00:03:35,760 --> 00:03:38,880 Speaker 1: a long period of time, and out of nowhere, look at. 83 00:03:38,840 --> 00:03:41,640 Speaker 2: This, it just took off. It top fifteen percent. 84 00:03:41,640 --> 00:03:44,480 Speaker 1: When you're looking at currencies, that is a massive move. 85 00:03:44,480 --> 00:03:46,800 Speaker 1: I know, if you're still looking at bitcoin fourteen percent nothing. 86 00:03:47,000 --> 00:03:49,000 Speaker 1: That is a big deal for the Japanese inen. And 87 00:03:49,040 --> 00:03:50,680 Speaker 1: we can really see how big of a move this 88 00:03:50,840 --> 00:03:54,240 Speaker 1: was made specifically by Japan obviously not just from this 89 00:03:54,360 --> 00:03:56,680 Speaker 1: chart right here, but if we look at the Dixie chart, 90 00:03:56,840 --> 00:04:00,240 Speaker 1: So the Dixie the Dollar index is basically measure the 91 00:04:00,280 --> 00:04:02,880 Speaker 1: dollar against a basket of currencies. So when we look 92 00:04:02,920 --> 00:04:05,320 Speaker 1: at the dollar overall, of course the dollar goes up 93 00:04:05,320 --> 00:04:07,960 Speaker 1: and down. Everything's traded against each other. And we can 94 00:04:08,080 --> 00:04:11,800 Speaker 1: see that the dollar, the Dollar index that Dixie has dropped, 95 00:04:11,960 --> 00:04:14,400 Speaker 1: but it's down two percent. Now that's a pretty big candle, 96 00:04:14,680 --> 00:04:16,839 Speaker 1: two big candles in a row right here, but you 97 00:04:16,839 --> 00:04:19,560 Speaker 1: could see it sort of within this range. So it 98 00:04:19,680 --> 00:04:22,960 Speaker 1: all came from Japan. Like I said, in this very 99 00:04:23,000 --> 00:04:26,040 Speaker 1: desperate attempt that they have all right now, understanding the 100 00:04:26,080 --> 00:04:29,120 Speaker 1: impossible situation that Japan is in means that you have 101 00:04:29,120 --> 00:04:32,960 Speaker 1: to understand the impossible trilemma. Now trilemma is different than 102 00:04:33,000 --> 00:04:36,039 Speaker 1: a dilemma. Dilemma means that you have, you know, to 103 00:04:36,120 --> 00:04:38,440 Speaker 1: choose between one or the other. Trilema it means you 104 00:04:38,480 --> 00:04:41,200 Speaker 1: have to choose two over one. And so the impossible 105 00:04:41,200 --> 00:04:43,800 Speaker 1: dilemma that not just Bank of Japan has, but every 106 00:04:43,960 --> 00:04:46,880 Speaker 1: country with a central bank and policy has, is these 107 00:04:46,880 --> 00:04:49,920 Speaker 1: three things. Number one, free flow of capital. So now 108 00:04:50,040 --> 00:04:52,840 Speaker 1: a country wants to have capital counts, capital markets, they 109 00:04:52,880 --> 00:04:55,960 Speaker 1: want to attract capital, investment, capital businesses to be there, 110 00:04:55,960 --> 00:04:58,839 Speaker 1: people to invest in the country. But then people also 111 00:04:58,880 --> 00:05:00,440 Speaker 1: need to get money out of the country. It is 112 00:05:00,440 --> 00:05:01,880 Speaker 1: one of the problems with China. China is like a 113 00:05:01,920 --> 00:05:04,479 Speaker 1: black hole where money can come in after to come in, 114 00:05:04,520 --> 00:05:06,719 Speaker 1: but it can never leave, which is why people don't 115 00:05:06,760 --> 00:05:08,680 Speaker 1: want to invest there. So you need to have a 116 00:05:08,800 --> 00:05:11,520 Speaker 1: free flow of capital in and out. But you also 117 00:05:11,920 --> 00:05:15,120 Speaker 1: want to have a fixed exchange rate. And then third 118 00:05:15,240 --> 00:05:17,160 Speaker 1: you need you want a country would want to have 119 00:05:17,200 --> 00:05:20,599 Speaker 1: an independent monetary policy. You mean they can adjust their 120 00:05:20,640 --> 00:05:23,320 Speaker 1: monetary policy, they can tighten an ease whenever they want. 121 00:05:23,480 --> 00:05:25,920 Speaker 1: The problem is that if you get two of these, 122 00:05:25,960 --> 00:05:28,320 Speaker 1: you're going to get less of another. So, for example, 123 00:05:28,520 --> 00:05:30,680 Speaker 1: if you want to fix your exchange rate like what 124 00:05:30,760 --> 00:05:33,560 Speaker 1: China does, and you want to have independent monetary policy 125 00:05:33,680 --> 00:05:36,240 Speaker 1: like China, then you can't have an open capital account. 126 00:05:36,960 --> 00:05:38,839 Speaker 1: If you want to have an open capital account and 127 00:05:38,960 --> 00:05:41,480 Speaker 1: monetary policy, then you can't have a fixed exchange rate. 128 00:05:41,520 --> 00:05:43,080 Speaker 2: The market will dictate what that is. 129 00:05:43,279 --> 00:05:46,880 Speaker 1: And so that's sort of the situation that of Japan 130 00:05:46,920 --> 00:05:51,000 Speaker 1: has found themselves in. Now why is that, Well, Well, 131 00:05:51,320 --> 00:05:53,279 Speaker 1: first I want to say is that they want to 132 00:05:53,320 --> 00:05:55,560 Speaker 1: have an independent policy. That's one of the legs of 133 00:05:55,560 --> 00:05:59,520 Speaker 1: the trilemma. But independent from who would be a question 134 00:05:59,520 --> 00:06:02,480 Speaker 1: that I'd want to ask, well, independent from. 135 00:06:02,279 --> 00:06:04,360 Speaker 2: Of course, the reserve currency of the world. 136 00:06:04,600 --> 00:06:07,680 Speaker 1: So we can see in this chart right here, the 137 00:06:07,720 --> 00:06:12,040 Speaker 1: reserve currency, the US dollar, makes up sixty two percent 138 00:06:12,560 --> 00:06:14,920 Speaker 1: of foreign reserves, so of course it's going to dictate 139 00:06:15,160 --> 00:06:17,480 Speaker 1: what the world does. And so Japan has been stuck 140 00:06:17,520 --> 00:06:20,320 Speaker 1: in this situation where they've been again sort of at 141 00:06:20,360 --> 00:06:24,040 Speaker 1: the whims of the United States the dollar, and they 142 00:06:24,080 --> 00:06:26,880 Speaker 1: want to change this. That's the trilimit that they've been in. 143 00:06:27,200 --> 00:06:29,960 Speaker 1: But how can they try to get all three? Get 144 00:06:29,960 --> 00:06:33,080 Speaker 1: that proverbial free lunch. And that brings us to the 145 00:06:33,120 --> 00:06:35,920 Speaker 1: next part, and that is that the FED has been 146 00:06:36,000 --> 00:06:38,919 Speaker 1: fighting back. Now, the FED isn't really so much fighting 147 00:06:38,960 --> 00:06:42,520 Speaker 1: back against Japan or China. Maybe they are a little bit, 148 00:06:42,560 --> 00:06:45,119 Speaker 1: but really the FED just wants to control its own 149 00:06:45,279 --> 00:06:48,960 Speaker 1: independent monetary policy. So the FED can set the interest rates, 150 00:06:49,080 --> 00:06:50,599 Speaker 1: although that's a whole other topic. 151 00:06:50,600 --> 00:06:51,680 Speaker 2: If you want me to make a video on that, 152 00:06:51,760 --> 00:06:52,200 Speaker 2: let me know. 153 00:06:52,240 --> 00:06:54,440 Speaker 1: But really the FED is sort of adjusting to what 154 00:06:54,480 --> 00:06:56,279 Speaker 1: the market wants the rates to be. 155 00:06:56,400 --> 00:06:57,279 Speaker 2: That's a whole different topic. 156 00:06:57,720 --> 00:07:00,479 Speaker 1: But the FED does or is independent and in force 157 00:07:00,520 --> 00:07:02,919 Speaker 1: of the United States has open capital accounts. But the 158 00:07:02,960 --> 00:07:05,479 Speaker 1: problem is that again, because the FED has the dollar, 159 00:07:05,520 --> 00:07:07,680 Speaker 1: which is sixty two percent of the world's reserve currency, 160 00:07:07,880 --> 00:07:11,160 Speaker 1: it's dictating the rest of the market. So what happened is, 161 00:07:11,240 --> 00:07:15,640 Speaker 1: if you remember, the FED started hiking rates. Remember that 162 00:07:16,360 --> 00:07:18,920 Speaker 1: we were on this monetary easing cycle for so long. 163 00:07:19,000 --> 00:07:21,240 Speaker 1: Rates had been basically at zero since like two thousand 164 00:07:21,240 --> 00:07:23,240 Speaker 1: and eight. They went up a little bit, came back down, 165 00:07:23,480 --> 00:07:26,480 Speaker 1: and was it November October of twenty twenty one, the 166 00:07:26,480 --> 00:07:29,360 Speaker 1: FED announced they're going to start raising rates. Then about 167 00:07:29,440 --> 00:07:31,760 Speaker 1: March of twenty twenty two, they went on the fastest 168 00:07:31,880 --> 00:07:35,720 Speaker 1: most aggressive rate hiking cycle in history. Now what does 169 00:07:35,760 --> 00:07:37,760 Speaker 1: that mean for us? Well, if we look at this 170 00:07:37,840 --> 00:07:38,960 Speaker 1: chart right here. 171 00:07:38,760 --> 00:07:39,760 Speaker 2: We can look at Japan. 172 00:07:40,040 --> 00:07:41,640 Speaker 1: We can see in this chart right here, this is 173 00:07:41,680 --> 00:07:45,200 Speaker 1: the Japanese yen again priced in the US dollars. And 174 00:07:45,240 --> 00:07:47,600 Speaker 1: what I'm showing you in this box right here is 175 00:07:47,640 --> 00:07:51,120 Speaker 1: at the price the stability between the yen and the 176 00:07:51,320 --> 00:07:54,640 Speaker 1: dollar had been pretty stable. This is about I think 177 00:07:54,680 --> 00:07:58,400 Speaker 1: about twenty fifteen right here to twenty twenty two. Yeah, 178 00:07:58,400 --> 00:08:01,360 Speaker 1: twenty fifteen to twenty twenty two, it had remained very 179 00:08:01,400 --> 00:08:04,280 Speaker 1: stable in this box. But right here where I put 180 00:08:04,320 --> 00:08:08,560 Speaker 1: this red arrow is drum roll please, it's March of 181 00:08:08,600 --> 00:08:11,200 Speaker 1: twenty twenty two. It's when the FED started going on 182 00:08:11,200 --> 00:08:12,840 Speaker 1: that aggressive rate hiking cycle. 183 00:08:12,960 --> 00:08:15,000 Speaker 2: And so as they started raising rates in the US, 184 00:08:15,120 --> 00:08:16,360 Speaker 2: it started making the dollar. 185 00:08:16,240 --> 00:08:20,440 Speaker 1: Much stronger, and it plunged the Japanese uo all the 186 00:08:20,480 --> 00:08:25,120 Speaker 1: way down, and it plunged the Japanese yen all the 187 00:08:25,120 --> 00:08:27,800 Speaker 1: way down. Now, this blip right here is where we're 188 00:08:27,800 --> 00:08:29,760 Speaker 1: at today. This is what we're talking about. But what's 189 00:08:29,760 --> 00:08:33,600 Speaker 1: important to understand is that this had been a very 190 00:08:33,640 --> 00:08:38,520 Speaker 1: stable monetary policy for Japan during this whole period. And 191 00:08:38,640 --> 00:08:42,040 Speaker 1: during this period about seven year period, people got. 192 00:08:42,160 --> 00:08:43,160 Speaker 2: Lulled to sleep. 193 00:08:43,440 --> 00:08:46,680 Speaker 1: They thought that Japan would never change, Japan would just 194 00:08:46,679 --> 00:08:49,320 Speaker 1: stay in the zone. But of course, as the yen 195 00:08:49,440 --> 00:08:53,800 Speaker 1: started to plunge, then it opened up another trade, a 196 00:08:53,840 --> 00:08:55,520 Speaker 1: trade that we're going to talk about right Now'm gonna 197 00:08:55,520 --> 00:08:56,920 Speaker 1: break it down and then you can see this. 198 00:08:57,000 --> 00:08:57,680 Speaker 2: Pop right here. 199 00:08:58,559 --> 00:09:02,040 Speaker 1: But what happened during that time the yen was plunging. 200 00:09:02,080 --> 00:09:04,400 Speaker 1: It was getting weaker and weaker and weaker. Now, I 201 00:09:04,520 --> 00:09:07,599 Speaker 1: like to use if you remember when FTX, the cryptocurrency 202 00:09:07,600 --> 00:09:10,880 Speaker 1: exchange collapsed, I did several videos on that and I 203 00:09:11,000 --> 00:09:13,960 Speaker 1: used the fall of FTX sort of as a proxy 204 00:09:14,000 --> 00:09:16,760 Speaker 1: to understand what's going on in Japan. Something revived that 205 00:09:16,840 --> 00:09:18,760 Speaker 1: story here real quick so you can understand this. So 206 00:09:18,800 --> 00:09:22,600 Speaker 1: you remember FTX was a cryptocurrency exchange, and if you 207 00:09:22,640 --> 00:09:24,760 Speaker 1: remember what happened during that time, I made a video 208 00:09:24,760 --> 00:09:28,200 Speaker 1: about it where they had their own token and the 209 00:09:28,240 --> 00:09:31,680 Speaker 1: problem is that they used that token for collateral, for 210 00:09:31,800 --> 00:09:34,160 Speaker 1: a lot more debt and to buy other things. But 211 00:09:34,200 --> 00:09:37,400 Speaker 1: the problem is that their token started to drop in value, 212 00:09:37,720 --> 00:09:39,880 Speaker 1: and so what FTX was doing is selling all their 213 00:09:39,920 --> 00:09:43,200 Speaker 1: other assets and buying their token in the market to 214 00:09:43,360 --> 00:09:47,319 Speaker 1: try to prop up that token. Eventually, CZ the head 215 00:09:47,360 --> 00:09:50,160 Speaker 1: of buyinand said, hey, that token's not worth it. We're 216 00:09:50,200 --> 00:09:52,280 Speaker 1: going to sell that token. We don't want it anymore, 217 00:09:52,559 --> 00:09:56,320 Speaker 1: and then it started plunging rapidly. FTX was selling everything 218 00:09:56,360 --> 00:09:58,640 Speaker 1: they couldn't try to buy it at market to keep 219 00:09:58,679 --> 00:10:02,559 Speaker 1: it from following, but they couldn't. Nobody wanted the token, 220 00:10:02,920 --> 00:10:05,680 Speaker 1: and this is exactly what's going on with Japan. The 221 00:10:06,040 --> 00:10:09,880 Speaker 1: japan token stayed relatively stable, but once the FED started 222 00:10:09,880 --> 00:10:13,720 Speaker 1: to raise raids, the Japanese token started plunging. Now Japan 223 00:10:13,800 --> 00:10:17,880 Speaker 1: has been aggressively selling anything they can to buy their token. 224 00:10:18,280 --> 00:10:20,880 Speaker 1: The Japanese en to prop it up, and that's where 225 00:10:20,880 --> 00:10:23,280 Speaker 1: we're at now. We can see this happening in real time. 226 00:10:23,559 --> 00:10:29,400 Speaker 1: The yen weakness persists despite Tokyo's sixty two billion dollar intervention. 227 00:10:29,679 --> 00:10:34,160 Speaker 1: So the Japanese government is selling the US treasury, selling 228 00:10:34,200 --> 00:10:37,719 Speaker 1: whatever they can and buying billions, tens of billions of 229 00:10:37,760 --> 00:10:41,120 Speaker 1: dollars of their own currency at market, trying to prop 230 00:10:41,160 --> 00:10:43,360 Speaker 1: it up. But the problem is, just like with the 231 00:10:43,360 --> 00:10:46,640 Speaker 1: fall of FTX, nobody really wants it, and so we 232 00:10:46,679 --> 00:10:48,800 Speaker 1: can see it plunging, plunging, plunge as a matter of 233 00:10:48,840 --> 00:10:51,720 Speaker 1: fact right here. So it went up and came down. 234 00:10:51,840 --> 00:10:55,160 Speaker 1: This is the first intervention shortly after Yueida is the 235 00:10:55,200 --> 00:10:57,600 Speaker 1: press conference that saw Japanese rip to one sixty. So 236 00:10:57,960 --> 00:10:59,400 Speaker 1: they did an an an intervention. 237 00:10:59,520 --> 00:11:01,120 Speaker 2: It went up up temporarily. 238 00:11:01,200 --> 00:11:04,240 Speaker 1: It worked for a minute, and then it plunged down again, 239 00:11:05,120 --> 00:11:07,160 Speaker 1: and then they did another intervention. They got it back 240 00:11:07,240 --> 00:11:09,880 Speaker 1: up again, but it plunged again. So no matter how 241 00:11:09,960 --> 00:11:12,760 Speaker 1: much they intervene, it has like a sugar rush. It 242 00:11:13,040 --> 00:11:15,760 Speaker 1: gets up really quickly and then it just falls back down, 243 00:11:15,880 --> 00:11:19,600 Speaker 1: sort of like where FTX found themselves. But here's the problem. 244 00:11:19,960 --> 00:11:22,360 Speaker 1: They realizes the problem, and they realize that they're going 245 00:11:22,400 --> 00:11:25,400 Speaker 1: to have to do something drastic in order to get 246 00:11:25,400 --> 00:11:27,679 Speaker 1: this to be fixed. So the end is under pressure 247 00:11:27,920 --> 00:11:30,920 Speaker 1: even as Japan steps up its verbal warning. So then 248 00:11:31,000 --> 00:11:33,480 Speaker 1: Japan's like, well, we're dumping tens of billions of dollars. 249 00:11:33,520 --> 00:11:36,079 Speaker 1: We can get it temporarily. The problem is is all 250 00:11:36,120 --> 00:11:38,760 Speaker 1: these short sellers, these short sellers are piling in and 251 00:11:38,800 --> 00:11:39,800 Speaker 1: pushing the price down. 252 00:11:40,040 --> 00:11:40,880 Speaker 2: So what we're gonna do? 253 00:11:41,000 --> 00:11:43,840 Speaker 1: Japan said they're ready now verbal warning, they're ready to 254 00:11:43,880 --> 00:11:48,120 Speaker 1: take action on currency if needed. So this is after 255 00:11:48,160 --> 00:11:50,960 Speaker 1: this was in June twenty thirds, about a month ago, month, 256 00:11:51,000 --> 00:11:52,880 Speaker 1: a little over a month ago. They're ready to take 257 00:11:52,920 --> 00:11:55,760 Speaker 1: action on currency if needed. What does that mean, Well, 258 00:11:56,280 --> 00:11:58,960 Speaker 1: any action that they have to take. They've been trying 259 00:11:59,000 --> 00:12:00,880 Speaker 1: to buy it back up, and they have about one 260 00:12:00,960 --> 00:12:03,920 Speaker 1: point two trillion dollars of assets they could sell to 261 00:12:03,920 --> 00:12:06,360 Speaker 1: continue to prop up their currency. But they could also 262 00:12:06,480 --> 00:12:09,400 Speaker 1: just try to shake out all the people that were 263 00:12:09,440 --> 00:12:10,720 Speaker 1: shorting the market. 264 00:12:10,880 --> 00:12:12,640 Speaker 2: Now what do we mean by shorting the market? 265 00:12:12,960 --> 00:12:15,360 Speaker 1: This is what you'vebably been hearing about, which is called. 266 00:12:15,160 --> 00:12:16,120 Speaker 2: The carry trade. 267 00:12:16,440 --> 00:12:19,360 Speaker 1: And so the carry trade was opened up because Japan 268 00:12:19,880 --> 00:12:23,400 Speaker 1: was stuck in this trilema situation, and so basically the 269 00:12:23,480 --> 00:12:26,120 Speaker 1: shorts had opened up a carry trade of. 270 00:12:26,080 --> 00:12:28,280 Speaker 2: About twenty trillion. 271 00:12:27,960 --> 00:12:32,360 Speaker 1: Dollars against the Japanese en. They were selling it short. 272 00:12:32,360 --> 00:12:35,000 Speaker 1: I'm gonna break down how this works for you, and 273 00:12:35,080 --> 00:12:38,520 Speaker 1: what we can see is that created a massive risk 274 00:12:38,559 --> 00:12:40,280 Speaker 1: for the market. As a matter of fact, it says 275 00:12:40,559 --> 00:12:43,680 Speaker 1: is the Japanese carry trade the next big risk in 276 00:12:43,720 --> 00:12:44,160 Speaker 1: the market. 277 00:12:44,360 --> 00:12:45,560 Speaker 2: This was in January. 278 00:12:46,080 --> 00:12:47,960 Speaker 1: People have been talking about this, We've been doing videos 279 00:12:48,000 --> 00:12:49,160 Speaker 1: on this for a long time. 280 00:12:49,200 --> 00:12:50,480 Speaker 2: This has been a big risk. 281 00:12:50,800 --> 00:12:56,160 Speaker 1: Japan's government is engaged in a massive twenty trillion dollar 282 00:12:56,280 --> 00:12:58,120 Speaker 1: carry trade. I mean, imagine how massive that is for 283 00:12:58,160 --> 00:13:01,880 Speaker 1: a small country like Japan. It says here that is 284 00:13:01,920 --> 00:13:07,640 Speaker 1: could bring unexpected risks if the central bank titans policy hmmm, 285 00:13:08,240 --> 00:13:08,600 Speaker 1: which is. 286 00:13:08,679 --> 00:13:10,440 Speaker 2: Exactly what just happened. 287 00:13:10,520 --> 00:13:13,200 Speaker 1: So the Japanese couldn't buy enough of their token to 288 00:13:13,240 --> 00:13:16,160 Speaker 1: prop it up. All these short sellers were selling and 289 00:13:16,200 --> 00:13:18,840 Speaker 1: short putting that downward pressure. Like when cz from Binance 290 00:13:18,840 --> 00:13:21,760 Speaker 1: they is gonna sell the FTX token and Japan is 291 00:13:21,800 --> 00:13:24,000 Speaker 1: trying to prop it up, and they're like, well, we 292 00:13:24,040 --> 00:13:26,719 Speaker 1: may have to do something unexpected unexpected like what well, 293 00:13:26,760 --> 00:13:29,600 Speaker 1: this in January says right here it could bring unexpected 294 00:13:29,679 --> 00:13:33,840 Speaker 1: risks if the central bank titans policies, and that's exactly 295 00:13:33,880 --> 00:13:37,680 Speaker 1: what happened. We can see right here that the Central 296 00:13:37,720 --> 00:13:40,360 Speaker 1: Bank of Japan started to do that. So this is 297 00:13:40,400 --> 00:13:42,800 Speaker 1: going back to two thousand and eight. Right here, the 298 00:13:42,840 --> 00:13:47,120 Speaker 1: red line is CPI, the yellow line is the Japanese 299 00:13:47,120 --> 00:13:50,120 Speaker 1: Central banks interest rate policy, and you can see that 300 00:13:50,240 --> 00:13:53,200 Speaker 1: it was basically flatlined from two thousand and eight. It 301 00:13:53,240 --> 00:13:58,120 Speaker 1: went down into negative territory right here around twenty sixteen, 302 00:13:58,440 --> 00:14:00,520 Speaker 1: and it's remained in negative territory. 303 00:14:01,040 --> 00:14:02,520 Speaker 2: Just here. In twenty twinty four it. 304 00:14:02,440 --> 00:14:06,080 Speaker 1: Got above positive territory and now they raised it just 305 00:14:06,360 --> 00:14:07,880 Speaker 1: zero point two five percent. 306 00:14:07,920 --> 00:14:10,280 Speaker 2: Now, to put this into perspective, the Federal Reserve. 307 00:14:10,080 --> 00:14:14,160 Speaker 1: Of the United States raise rates five points. This is 308 00:14:14,200 --> 00:14:17,719 Speaker 1: only a quarter of one point. And look how much 309 00:14:17,800 --> 00:14:20,760 Speaker 1: damage this is done. All right, So that's exactly what happened. 310 00:14:20,800 --> 00:14:23,920 Speaker 1: They raise rates and got unexpected results. Let me show 311 00:14:23,920 --> 00:14:25,760 Speaker 1: you how this carry trade works. 312 00:14:25,520 --> 00:14:26,440 Speaker 2: And why this matters. 313 00:14:26,640 --> 00:14:29,400 Speaker 1: So here's how the carry trade works. It's basically arbitrage. 314 00:14:29,640 --> 00:14:32,000 Speaker 1: What this means is that in the US market, US 315 00:14:32,120 --> 00:14:36,160 Speaker 1: treasuries let's say that we can earn five percent, okay, 316 00:14:36,400 --> 00:14:37,320 Speaker 1: over here in Japan. 317 00:14:38,520 --> 00:14:40,120 Speaker 2: As I just showed you rates were zero. 318 00:14:40,360 --> 00:14:42,960 Speaker 1: So let's say that in Japan I could borrow for 319 00:14:43,200 --> 00:14:47,680 Speaker 1: let's say zero point eight percent. So I go borrow 320 00:14:47,880 --> 00:14:51,280 Speaker 1: money in Japan for zero point eight percent. I bring 321 00:14:51,360 --> 00:14:53,280 Speaker 1: it over to the United States and I park it 322 00:14:53,320 --> 00:14:56,040 Speaker 1: in treasuries, and I make the difference five. 323 00:14:55,800 --> 00:14:57,760 Speaker 2: Percent minus is zero. 324 00:14:57,520 --> 00:15:01,880 Speaker 1: Point eight Or I put it into the US stock market, 325 00:15:02,520 --> 00:15:04,200 Speaker 1: and let's say I put in the SPFI fund, her, 326 00:15:04,280 --> 00:15:06,000 Speaker 1: I put in the mag sevens, I put it in Vidia, 327 00:15:06,280 --> 00:15:08,680 Speaker 1: and now I'm making twelve to fifteen to twenty percent 328 00:15:09,240 --> 00:15:10,240 Speaker 1: minus the eight. 329 00:15:10,600 --> 00:15:11,720 Speaker 2: And so more and. 330 00:15:11,640 --> 00:15:16,880 Speaker 1: More money kept getting borrowed. Selling the end short and 331 00:15:17,200 --> 00:15:19,960 Speaker 1: all that money was finding its way into stronger markets, 332 00:15:20,000 --> 00:15:22,880 Speaker 1: mostly into the United States and the stock market, into Nvidia, 333 00:15:22,960 --> 00:15:24,040 Speaker 1: into US treasuries. 334 00:15:24,120 --> 00:15:24,840 Speaker 2: It's been great. 335 00:15:25,600 --> 00:15:27,840 Speaker 1: But here's the problem. A lot of this money was 336 00:15:27,880 --> 00:15:30,360 Speaker 1: put in there on margin. So that means that they 337 00:15:30,360 --> 00:15:34,360 Speaker 1: would borrow one thousand dollars from here, and they would 338 00:15:34,400 --> 00:15:36,560 Speaker 1: take it over here and they would buy let's say 339 00:15:36,640 --> 00:15:40,520 Speaker 1: five thousand dollars worth of stuff, or maybe maybe more, 340 00:15:40,560 --> 00:15:42,400 Speaker 1: it depends on what their credit is maybe ten thousand 341 00:15:42,480 --> 00:15:44,840 Speaker 1: dollars worth of stuff. But the problem is is this 342 00:15:44,920 --> 00:15:48,200 Speaker 1: unwinds very quickly for two reasons. As long as this 343 00:15:48,360 --> 00:15:51,720 Speaker 1: Japanese rate kept getting lower lower, lower, lower, lower. 344 00:15:51,520 --> 00:15:53,760 Speaker 2: Lower, everything was great, right. 345 00:15:53,840 --> 00:15:56,880 Speaker 1: This debt kept getting cheaper, cheaper, cheaper, more money kept 346 00:15:56,880 --> 00:15:59,800 Speaker 1: coming over, and these assets went higher higher higher. The 347 00:16:00,080 --> 00:16:04,520 Speaker 1: problem is the unexpected results. When Japan raised the rates, 348 00:16:04,800 --> 00:16:08,200 Speaker 1: and only by raising him only zero point two five percent, 349 00:16:08,720 --> 00:16:12,440 Speaker 1: this whole thing started to unwind. When these rates went up, 350 00:16:13,120 --> 00:16:15,840 Speaker 1: all of a sudden, the interest that was owed went up. 351 00:16:16,520 --> 00:16:19,000 Speaker 1: And when that happened, some of this had to start 352 00:16:19,080 --> 00:16:21,520 Speaker 1: selling off to now pay for this. 353 00:16:22,240 --> 00:16:22,840 Speaker 2: And as this. 354 00:16:22,880 --> 00:16:26,120 Speaker 1: Started to sell off, the asset prices started to go down. 355 00:16:26,440 --> 00:16:28,800 Speaker 1: As the asset prices to go down started to go 356 00:16:28,840 --> 00:16:33,040 Speaker 1: down on stuff that was on margin, then the margins 357 00:16:33,120 --> 00:16:35,160 Speaker 1: were called and they had to post more collateral to 358 00:16:35,160 --> 00:16:37,000 Speaker 1: post more colladal, they had to sell more. When they 359 00:16:37,000 --> 00:16:38,920 Speaker 1: sold more, prices went down even more, which then mean 360 00:16:38,960 --> 00:16:40,680 Speaker 1: more margin calls. It means they had to sell more 361 00:16:40,760 --> 00:16:43,160 Speaker 1: to post more collateral. And all the while they were 362 00:16:43,240 --> 00:16:47,200 Speaker 1: selling this creating this downward pressure, this was getting more 363 00:16:47,240 --> 00:16:50,440 Speaker 1: and more expensive, and this whole thing started to wind down. Now, 364 00:16:50,440 --> 00:16:53,400 Speaker 1: this was great for so long because for twenty years 365 00:16:53,720 --> 00:16:56,520 Speaker 1: they kept rates at zero and they just continued to 366 00:16:56,520 --> 00:16:59,160 Speaker 1: stay low and get lower lower lower. But again the 367 00:16:59,360 --> 00:17:02,120 Speaker 1: unexpected did shift to try to shake off these short 368 00:17:02,160 --> 00:17:05,640 Speaker 1: sellers put the entire market into a tailspins. That's where 369 00:17:05,640 --> 00:17:08,720 Speaker 1: we wrap now, confronting Godzilla. 370 00:17:08,840 --> 00:17:10,080 Speaker 2: Where do we go from here? 371 00:17:10,400 --> 00:17:12,520 Speaker 1: All right, the elephant in the room, if you will, 372 00:17:12,560 --> 00:17:14,040 Speaker 1: we'll call it Godzilla because it's Japan. 373 00:17:14,320 --> 00:17:16,720 Speaker 2: So where do we go from here? What happens? 374 00:17:16,760 --> 00:17:20,680 Speaker 1: Can Japan really continue to raise their rates? What happens 375 00:17:20,720 --> 00:17:23,439 Speaker 1: to the US markets? What happens to the four central 376 00:17:23,440 --> 00:17:27,000 Speaker 1: banks that are now fighting against each other. Well, what 377 00:17:27,080 --> 00:17:31,399 Speaker 1: Japan is doing is somewhat necessary, but it comes with 378 00:17:31,440 --> 00:17:34,240 Speaker 1: a very steep cost. So they have all these short 379 00:17:34,320 --> 00:17:38,640 Speaker 1: sellers that have piled in pushing the currency down and 380 00:17:38,680 --> 00:17:41,840 Speaker 1: doing this carry trade over into the United States. They 381 00:17:41,880 --> 00:17:44,399 Speaker 1: need to shake them off. They need to get rates 382 00:17:44,400 --> 00:17:45,800 Speaker 1: back into positive territory. 383 00:17:45,840 --> 00:17:47,360 Speaker 2: But the problem is it comes at a steep cost. 384 00:17:47,440 --> 00:17:50,640 Speaker 1: It comes at the cost of wrecking the global markets. 385 00:17:51,160 --> 00:17:53,800 Speaker 1: The bigger problem is that Japan is one of the 386 00:17:53,800 --> 00:17:56,719 Speaker 1: most indebted nations in the world, with a two hundred 387 00:17:56,760 --> 00:18:00,879 Speaker 1: and sixty three percent debt to GENP. Now, put that 388 00:18:00,880 --> 00:18:03,440 Speaker 1: into comparison, the US is about somewhere in one hundred 389 00:18:03,440 --> 00:18:06,200 Speaker 1: and twenty percent range. They're at two hundred and sixty 390 00:18:06,200 --> 00:18:09,240 Speaker 1: three percent, and not just the government, the private debt 391 00:18:09,359 --> 00:18:12,040 Speaker 1: is one hundred and twenty percent of debt to GDP. 392 00:18:12,680 --> 00:18:14,800 Speaker 1: So the problem is is that they want to sort 393 00:18:14,840 --> 00:18:19,320 Speaker 1: of normalize their policy with the Federal Reserve. But the 394 00:18:19,359 --> 00:18:21,640 Speaker 1: problem is is that the FED is that's, you know, 395 00:18:21,840 --> 00:18:25,240 Speaker 1: five percent, and they're at zero point two five. They 396 00:18:25,280 --> 00:18:28,159 Speaker 1: may have to hike another thirteen forty It depends on 397 00:18:28,160 --> 00:18:31,440 Speaker 1: how fast they hike, but thirteen more times to even 398 00:18:31,480 --> 00:18:33,919 Speaker 1: get anywhere normalized with the FED. And if it the 399 00:18:33,960 --> 00:18:36,760 Speaker 1: whole world is melting down over a quarter point hike. 400 00:18:37,040 --> 00:18:39,280 Speaker 1: What do think happens if they go with a three 401 00:18:39,440 --> 00:18:43,520 Speaker 1: four five percent hike? Now, the bigger problem is this 402 00:18:44,000 --> 00:18:48,240 Speaker 1: right now currently, if they were to normalize the policy 403 00:18:48,240 --> 00:18:51,440 Speaker 1: with the FED, that means they would be paying thirteen 404 00:18:51,600 --> 00:18:55,560 Speaker 1: percent of their gross domestic product of their GDP just 405 00:18:55,920 --> 00:18:58,360 Speaker 1: for interest on the debt. Now, to put this into 406 00:18:58,440 --> 00:19:01,000 Speaker 1: perspective of the United States, you've seen I have done 407 00:19:01,040 --> 00:19:03,560 Speaker 1: many videos on this, the interest on the debt has 408 00:19:03,600 --> 00:19:05,280 Speaker 1: gone up parabolic, and as a matter of fact, in 409 00:19:05,320 --> 00:19:08,360 Speaker 1: the United States, we're now spending a trillion dollars, more 410 00:19:08,359 --> 00:19:11,000 Speaker 1: than a trillion dollars just on the interest on the debt, 411 00:19:11,400 --> 00:19:13,480 Speaker 1: and the interest on the debt has now exceeded the 412 00:19:13,560 --> 00:19:15,880 Speaker 1: cost that the US spends on the US military, which, 413 00:19:15,920 --> 00:19:17,879 Speaker 1: of course, the US military spends more than the next 414 00:19:17,920 --> 00:19:22,360 Speaker 1: ten nations combined. But even as crazy as that number. 415 00:19:22,160 --> 00:19:26,719 Speaker 2: Is, it's about three percent of GDP. So for Japan 416 00:19:27,240 --> 00:19:28,640 Speaker 2: to try to do. 417 00:19:28,560 --> 00:19:32,760 Speaker 1: What's necessary and try to normalize policy, they'd be spending 418 00:19:32,840 --> 00:19:36,280 Speaker 1: thirteen percent. The problem is they can't do that, and 419 00:19:36,359 --> 00:19:40,119 Speaker 1: so they want to confront Godzilla. But Godzilla might just 420 00:19:40,240 --> 00:19:43,040 Speaker 1: be too big for them. So which path are they 421 00:19:43,040 --> 00:19:45,560 Speaker 1: going to take? Are they going to fight Godzilla or 422 00:19:45,560 --> 00:19:47,200 Speaker 1: are they just going to go back into their hole? 423 00:19:47,480 --> 00:19:51,280 Speaker 1: And really we can see that the entire system is 424 00:19:51,359 --> 00:19:52,600 Speaker 1: buckling as they. 425 00:19:52,480 --> 00:19:53,840 Speaker 2: Weigh these two decisions. 426 00:19:54,200 --> 00:19:58,000 Speaker 1: So their choices are one, do we have a currency crisis, 427 00:19:58,080 --> 00:20:00,800 Speaker 1: do we continue to let the end just fall plunge plunge, plunge, 428 00:20:00,800 --> 00:20:03,840 Speaker 1: plunch plunge, or do we try to save the currency, 429 00:20:04,160 --> 00:20:07,600 Speaker 1: fight off the short sellers and have a deflationary crisis. 430 00:20:07,760 --> 00:20:10,760 Speaker 1: Those are choices, those the sides of the coin heads 431 00:20:10,840 --> 00:20:14,800 Speaker 1: or tails. They can choose what they want, not unlike 432 00:20:14,920 --> 00:20:17,560 Speaker 1: what FTX had to choose, and not unlike which. 433 00:20:17,400 --> 00:20:18,720 Speaker 2: The US is going to have to choose. 434 00:20:18,720 --> 00:20:21,320 Speaker 1: At some point, the US is going to have to choose. 435 00:20:21,359 --> 00:20:24,800 Speaker 1: Right now, would we rather have another great depression, a 436 00:20:25,000 --> 00:20:29,200 Speaker 1: deflationary crash where jobs are wiped out, people are homeless 437 00:20:29,200 --> 00:20:31,760 Speaker 1: and on food lines, that the stock markets wiped out, 438 00:20:31,800 --> 00:20:34,000 Speaker 1: the real estate markets wiped out, we go into another 439 00:20:34,480 --> 00:20:38,080 Speaker 1: twenty year great depression period? Or do we have a 440 00:20:38,119 --> 00:20:41,720 Speaker 1: great debasement where let's just go pren trillions more dollars. Now, 441 00:20:41,800 --> 00:20:45,960 Speaker 1: let's just put assets assets sky high. This is the 442 00:20:46,000 --> 00:20:48,560 Speaker 1: same decision the US is in, which is the same 443 00:20:48,640 --> 00:20:49,400 Speaker 1: decision that. 444 00:20:49,880 --> 00:20:50,600 Speaker 2: Japan is in. 445 00:20:51,720 --> 00:20:55,679 Speaker 1: Do the markets crash or do taxes crash? You see, 446 00:20:55,760 --> 00:20:58,080 Speaker 1: if the markets crash, if we choose option one, a 447 00:20:58,119 --> 00:21:01,959 Speaker 1: great depression, then what happens, Well, nobody's working, and so 448 00:21:02,040 --> 00:21:04,760 Speaker 1: with nobody working, then there's no taxes being paid. If 449 00:21:04,800 --> 00:21:07,159 Speaker 1: the stock market crashes, if the real estate market crashes, 450 00:21:07,200 --> 00:21:10,480 Speaker 1: then there's no capital gains taxes, and then there's no taxes. 451 00:21:10,040 --> 00:21:10,560 Speaker 2: To the government. 452 00:21:10,600 --> 00:21:16,359 Speaker 1: Now, the government's already running multi trillion dollar deficits today. 453 00:21:16,440 --> 00:21:19,560 Speaker 1: If we go into just even a garden variety recession, 454 00:21:19,800 --> 00:21:22,800 Speaker 1: we'd expect to see tax receipts plunged somewhere between twelve 455 00:21:22,880 --> 00:21:26,320 Speaker 1: to fifteen percent. Now, the Treasury just announced a couple 456 00:21:26,359 --> 00:21:28,600 Speaker 1: weeks ago that just the borrowing for the rest of 457 00:21:28,640 --> 00:21:30,960 Speaker 1: this year, which is not even half left. They need 458 00:21:31,000 --> 00:21:35,560 Speaker 1: another one point seven trillion just for this year. So 459 00:21:36,040 --> 00:21:39,960 Speaker 1: if taxes garden variety recession crashed by fifteen percent, they have. 460 00:21:39,920 --> 00:21:40,680 Speaker 2: To borrow it more. 461 00:21:40,840 --> 00:21:43,760 Speaker 1: If we have a great depression style, how will the 462 00:21:43,800 --> 00:21:46,520 Speaker 1: government survived? Now, what's going to happen, obviously would be 463 00:21:46,600 --> 00:21:48,679 Speaker 1: that they would have to continue printing money for the 464 00:21:48,680 --> 00:21:53,080 Speaker 1: government and more stimulus, more welfare, and more importantly, to 465 00:21:53,080 --> 00:21:56,880 Speaker 1: continue to run those deficits. All of that money printing 466 00:21:57,119 --> 00:22:01,320 Speaker 1: will be highly inflationary. So you know, I think about 467 00:22:01,560 --> 00:22:02,200 Speaker 1: twenty twenty. 468 00:22:02,320 --> 00:22:03,520 Speaker 2: Remember twenty twenty. 469 00:22:03,640 --> 00:22:07,320 Speaker 1: And what happened in twenty twenty, Well, the whole country 470 00:22:07,400 --> 00:22:09,600 Speaker 1: was shut down, not because the recession, but because the 471 00:22:09,600 --> 00:22:12,720 Speaker 1: government forced to shut down. The government then was forced 472 00:22:12,760 --> 00:22:16,040 Speaker 1: to inject money, print stimulus money and inject. 473 00:22:15,720 --> 00:22:18,920 Speaker 2: It directly in the economy. Trillions of dollars. And what happened. 474 00:22:19,280 --> 00:22:21,840 Speaker 1: Homes went up by fifty percent, Stocks went up by 475 00:22:21,880 --> 00:22:22,480 Speaker 1: fifty percent. 476 00:22:22,680 --> 00:22:23,880 Speaker 2: Bitcoin went to the moon. 477 00:22:24,720 --> 00:22:26,560 Speaker 1: So did your gasoline, and so did your steak, and 478 00:22:26,600 --> 00:22:28,560 Speaker 1: so did your houses as well. And so I think 479 00:22:28,560 --> 00:22:30,520 Speaker 1: about twenty twenty, and I think this is where we're 480 00:22:30,560 --> 00:22:33,199 Speaker 1: going now in my opinion, Well, it's not my opinion 481 00:22:33,280 --> 00:22:35,880 Speaker 1: based off of factual observation. If we look at every 482 00:22:35,880 --> 00:22:39,360 Speaker 1: government in the world today and sort of every experiment 483 00:22:39,359 --> 00:22:41,560 Speaker 1: in the past, every government in the past, there hasn't 484 00:22:41,560 --> 00:22:45,080 Speaker 1: been an experiment that I've seen where a nation decided, well, boys, 485 00:22:45,200 --> 00:22:47,280 Speaker 1: pack it in. It was a good run while we 486 00:22:47,320 --> 00:22:50,000 Speaker 1: had it. Let's just shut her down. Not when there's 487 00:22:50,040 --> 00:22:51,200 Speaker 1: still inking. 488 00:22:50,960 --> 00:22:51,639 Speaker 2: The money printer. 489 00:22:51,800 --> 00:22:53,879 Speaker 1: And so I believe that they'll turn that money printer 490 00:22:53,960 --> 00:22:56,320 Speaker 1: back on and we'll print it sky high. They will 491 00:22:56,400 --> 00:23:00,280 Speaker 1: always choose a currency crisis and a great debasement over 492 00:23:00,400 --> 00:23:03,680 Speaker 1: the alternative, and that is inflation. Now, the thing about 493 00:23:03,680 --> 00:23:06,760 Speaker 1: when this inflation shoots sky high is that doesn't push 494 00:23:06,840 --> 00:23:10,760 Speaker 1: all asset prices up evenly. For example, the Nasdaq went 495 00:23:10,800 --> 00:23:13,040 Speaker 1: up by about double what the S and P five 496 00:23:13,119 --> 00:23:17,000 Speaker 1: hundred did. Bitcoin went up about five six hundred percent 497 00:23:17,359 --> 00:23:19,920 Speaker 1: on top of that, right, and so there's different ways 498 00:23:19,920 --> 00:23:22,240 Speaker 1: of these different assets to interact. Now, if you'd like 499 00:23:22,280 --> 00:23:24,600 Speaker 1: to see the playbook for this. We're in the middle 500 00:23:24,600 --> 00:23:27,359 Speaker 1: of what I'm calling a Q wave, a quantum wave 501 00:23:27,480 --> 00:23:31,040 Speaker 1: leap in technology, and this inflation that we're about to 502 00:23:31,080 --> 00:23:33,320 Speaker 1: see thrust into the market is going to make twenty 503 00:23:33,359 --> 00:23:36,040 Speaker 1: twenty look like chump change, and it's going to drive 504 00:23:36,119 --> 00:23:37,280 Speaker 1: asset prices too. 505 00:23:37,160 --> 00:23:38,399 Speaker 2: High as we've never imagined. 506 00:23:38,680 --> 00:23:40,600 Speaker 1: Come hang out with me live. I got about twenty 507 00:23:40,680 --> 00:23:42,359 Speaker 1: or thirty short charts that I want to show you 508 00:23:42,480 --> 00:23:44,920 Speaker 1: so you can understand how each one of these cycles 509 00:23:44,960 --> 00:23:48,639 Speaker 1: is very predictable and it lays out exactly what assets 510 00:23:48,640 --> 00:23:50,160 Speaker 1: we should invest do. I call it the investing black 511 00:23:50,200 --> 00:23:52,000 Speaker 1: hole because there's really no other place you put your money. 512 00:23:52,080 --> 00:23:53,840 Speaker 1: And I'm gonna give you the top five assets I'm 513 00:23:53,920 --> 00:23:54,400 Speaker 1: checking out. 514 00:23:54,480 --> 00:23:54,920 Speaker 2: It's free. 515 00:23:55,000 --> 00:23:56,280 Speaker 1: There's a link down below if you want to come 516 00:23:56,280 --> 00:23:58,399 Speaker 1: hang out and hang out with me. I'll answer all 517 00:23:58,400 --> 00:24:00,320 Speaker 1: your questions live to make sure you have it. But 518 00:24:00,400 --> 00:24:03,240 Speaker 1: either way, this is what's going on in Japan. It's 519 00:24:03,480 --> 00:24:06,320 Speaker 1: just like FTX was an example of Japan. Japan is 520 00:24:06,359 --> 00:24:08,720 Speaker 1: an example of the rest of the world. We're really 521 00:24:08,800 --> 00:24:11,880 Speaker 1: witnessing this in real time, and the entire world, one 522 00:24:11,960 --> 00:24:14,640 Speaker 1: by one. The Great Milkshake Theory is going to see 523 00:24:14,680 --> 00:24:17,600 Speaker 1: each nation forced to choose one of these three things. 524 00:24:17,840 --> 00:24:21,000 Speaker 1: And as I said, every example in current and past 525 00:24:21,080 --> 00:24:23,720 Speaker 1: history shows which path they take. All right, let me 526 00:24:23,720 --> 00:24:25,680 Speaker 1: know what you think in the comments down below. 527 00:24:25,680 --> 00:24:26,720 Speaker 2: Thumbs up. I feel like this video. 528 00:24:26,720 --> 00:24:27,760 Speaker 1: If you don't, you can give me a thumbs down. 529 00:24:27,840 --> 00:24:29,159 Speaker 1: That's okay, but at least tell me why in the 530 00:24:29,160 --> 00:24:31,639 Speaker 1: comments down below. Subscribe if you're not already subscribed, and 531 00:24:31,640 --> 00:24:31,960 Speaker 1: that's what. 532 00:24:31,880 --> 00:24:34,120 Speaker 2: I got, a right to your success. I'm out